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Croatian Times: HDZ and SDP's different take on helping economy

14. November 2011. | 12:25

Source: Croatian Times

Croatian Democratic Union (HDZ) suggests focusing on tourism, energy and infrastructural development, while opposition Social Democratic Party (SDP) says investments in industry and manufacturing are key to a stronger economy.

Croatian Democratic Union (HDZ) suggests focusing on tourism, energy and infrastructural development, while opposition Social Democratic Party (SDP) says investments in industry and manufacturing are key to a stronger economy.

Minister for Investments and HDZ member Domagoj Milosevic says Croatia’s entrance onto the European markets of some 500 million consumers is a big opportunity. "But we must be ready for that opportunity."

The party’s economic programme is based on tourism, the energy sector and infrastructure. "We will continue with cutting the parafiscal taxes," Milosevic said, "and it is also very important to efficiently manage the state's property."

The opposition's economic strategies would focus on sharp tax reforms.

"First of all, we would eliminate or cut taxes on reinvested profits in combination with certain direct or indirect compensation, including tax on dividends," says Branko Grcic, SDP.

They agree that EU membership is important, but the domestic economy must be strengthened.

"In first place should be private investments, but the state must also make its contribution and give an impulse. The investments should go toward manufacturing and industry," Grcic says.

This, some say however, is hard at the moment. Goran Butorac from Zagreb Institute of Economics says that one hears little about factories these days, unless their workers are protesting.

Economists do not foresee huge changes for the Croatian economy in the next few years.
They agree that EU membership could speed up the recovery, but it would require reforms in both the public and the private sectors, news portal Dnevnik writes.


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14. November - 20. November 2011.