With the budget revision, the Croatian Government has not cut any major expense, but instead succumbed to the pressure from the public sector and the Croatian Peasants Party (HSS), which opposed cuts in agricultural incentives, Dun&Bradstreet states in the latest issue of its Risk & Payment Review.

Once again, it put Croatia in the group of countries with a mild business risk, saying that the economic situation in the country is still uncertain. In the budget revision, the Government adjusted to deficit to 4.2 percent of GDP, which is above the planned 2.5 percent.

The Government has missed out on a chance to create a better investment climate and chances of making a pension reform prior to the elections are slim.

The budget deficit brings Croatia in a very unpleasant situation with regards to investment climate, while public debt is expected to increase as well, D&B reports.