Croatian PM-designate: Main goal is to improve economy and living standardsZagreb, 22 January 2015 (MIA) - Croatia's Prime Minister-designate Tihomir Oreskovic presented his programme in parliament on Friday, saying that the main goal of his government would be to improve the economic and social situation in the country and increase living standards, Hina news agency reports.
Quoting a statement by US General George Patton, "Accept the challenges so that you can feel the exhilaration of victory," Oreskovic said that his government would work on transforming the country in three key areas -- economic growth, competitiveness and the quality of life.
He also mentioned the goal of ensuring GDP growth by more than 3 per cent, reducing public debt to less than 80 per cent of GDP by 2020, reducing the budget deficit to less than 3 per cent of GDP by 2017, increasing exports by 30 per cent, reducing unemployment to below 14 per cent, and increasing per-capita GDP by 2,000 euros.
"Reducing public debt to below 80 per cent of GDP by 2020 and the deficit to below 3 per cent by 2017 is a goal that has been set by the European Commission and we need to fulfil it. If we are not ready to fulfil it, it will not be good. This government will be ready to do its best to reduce the debt and deficit to the necessary levels and with these win combinations we will get closer to the Maastricht criteria, which is a positive message for Croatia," Oreskovic said.
He called for encouraging foreign investment and creating a positive investment environment, adding that the aim was to ensure an investment of one billion euros over the next four years and make the most of EU funds by absorbing at least a billion euros annually from the 10.8 billion euros available to Croatia.
Increasing exports by 30 per cent is a key factor for GDP growth and better competitiveness, the prime minister-designate said, adding that Croatia should strive to move up in the World Bank Doing Business ranking from 64th to at least 50th place among 189 countries included in the ranking.
Further goals are to cut red tape in the public sector, increase the number of small and medium enterprises, reduce parafiscal charges and make it possible for Croatia to become an energy leader. It will also be necessary to further improve the performance of the health system, increase the work force by focusing on education and labour market demand and connecting academia and the market sector.
Oreskovic said that his government was ready to make tough decisions. "I have confidence in our potential. ... One should always be curious. Steve Jobs said 'Stay hungry'. It is important that we are always ready to learn something new, because that will be to Croatia's benefit."
Oreskovic mentioned five key transformers, or areas with the greatest potential for growth and higher productivity, which would help improve living standards, reduce unemployment and ensure a socially responsible and productive society. Those are: an efficient public sector, business competitiveness, EU funding, reduction of the public debt and deficit, and education and health reforms, which will require responsible governance, transparency, an efficient judiciary, computerisation, an effective tax and monetary policy, and readiness to cooperate.
Croatia has huge potential that needs to be activated for the benefit of its citizens, he said, stressing the need to increase the efficiency of the public sector and strengthen competitiveness in relation to comparable countries such as Slovenia, Hungary, Bulgaria, the Czech Republic and Slovakia.
Oreskovic said that the focus would be on strategic investments, privatisation of non-strategic companies and other property, and improving the investment climate.
He said that 2016 was crucial for reducing the debt and deficit. "We will secure 500 million euros in order to reduce the debt and send a strong message to the European Commission, investors and rating agencies that this country is ready to make tough decisions," he said, announcing a reduction of the deficit through reallocation of assets, effective incentives and cost control.
Speaking of the time frame for the transformation of Croatia, Oreskovic announced projects for this year that could bring about quick results, namely strategic investments in infrastructure and energy, activation of dormant capital and debt reduction.
"Last year 300 million euros was absorbed from EU funds and our goal is to absorb 500 million in 2016 to invest in agriculture and regional development. We will also reduce parafiscal charges and ensure more efficient management of public companies," the prime minister-designate said.
In 2017 the new government plans to introduce a tax on property that is not in use. "That property should be put in use so that we can strengthen the GDP. My main goal in 2017 is to increase the credit rating because we are too close to the junk grade, which we cannot allow," Oreskovic said.
For the second year of his term he announced creation of a 500 million euro fund to support small and medium companies, absorption of a billion euros from EU funds and measures to streamline the health system.
In 2018 the focus would be on reforming the science and education sector, absorbing a billion euros from EU funds, flexibilisation of labour and an efficient judiciary. Oreskovic said that he had asked each minister to specify what could be done in the first year in office and define their medium- and long-term goals.
Speaking of the current refugee crisis, Oreskovic said that Croatia would consult with its partners in the EU on this issue while at the same time protecting its own interests.
"Twenty-five years ago we fulfilled our dream of a free Croatia. Our next dream is to create a modern Croatia that will keep its traditions and ensure a better life for us and our children. In the end, let me ask you: if not now, when, if not us, meaning all of us, then who?" Oreskovic concluded. lk/16:08
###
Hungary's Orban urges fence between Greece and Macedonia, Bulgaria
Ljubljana, 22 January 2016 (MIA) - Hungary's Prime Minister Viktor Orban said that a fence should be erected on the Macedonian and Bulgarian borders with Greece to curb the inflow of migrants into Europe, Reuters reported.
"If we cannot secure the outer border (of the EU), regardless of how costly or demanding that is, we will destroy the Schengen regime by ourselves," Orban said, referring to Europe's free-travel area.
He was speaking during a one-day visit to Slovenia.
Slovenian Prime Minister Miro Cerar told the same news conference the European Union needed a joint solution within weeks to the migrant crisis to avoid possible conflicts between countries.
"We do not have time until spring to find a solution. We need a solution within weeks ... if not, we can expect conflicts between countries," Cerar said.
"The (migrant) situation is entirely out of control and has nothing to do with humanitarianism, integration and help," Cerar added.
Over 411,000 migrants have entered Slovenia since Hungary fenced off its borders in October and pushed the migrant flow to the west through Slovenia. Almost all of them continued on their way to Austria and further north to Germany and other EU states.
Slovenia on Thursday followed Austria with an announcement that it will reject all migrants apart from the ones seeking asylum in Austria or Germany.
Over the past months Slovenia, too, has erected about 156 kilometers of fence on its southern border with Croatia to ensure that migrants can only enter the country through official border crossings.
Cerar said Slovenia would pull the fence down as soon as a joint EU solution to the migrant crisis is found.
Orban said Bulgaria, which lies north of Greece, should also join the Schengen area as it has shown that it is ready to secure its borders. ba/17:37
###
Turkey alarmed by 'Russian build-up' on Syria border
Istanbul, 22 January 2016 (MIA) - Turkish President Recep Tayyip Erdogan on Friday expressed alarm over reports of a build-up of Russian troops in northern Syria near the Turkish border, saying such movements would not be tolerated, AFP reports.
"We have said this from the beginning: we won't tolerate such formations (in northern Syria) along the area stretching from the Iraqi border up to the Mediterranean," Erdogan told reporters after Friday prayers in Istanbul.
Britain-based monitor the Syrian Observatory for Human Rights had said that Russia had sent a number of engineers to the Syrian border town of Qamishli to strengthen the runway and increase the capacity of an airport there.
Russia's reported move into Qamishli comes as Ankara and Moscow are experiencing their biggest crisis in years over the shooting down of a Russian war plane by Turkey on November 24.
"We maintain our sensitivities on this issue," added Erdogan, citing reports that Russia had deployed some 200 soldiers and stating that he would raise the issue Saturday in talks with visiting US Vice President Joe Biden.
Observers have said that Russia, which has for years been at loggerheads with Turkey over the Syrian conflict, may want to refit the airport as a Russian base, as happened in Hmeimim in Latakia province.
Qamishli lies just south of the Turkish border town of Nusaybin.
"I can say that Turkey is closely watching every military movement on its borders and especially the border with Syria," the government source told AFP, asking not to be named.
The Turkish army has already reinforced security by digging trenches in the border zone, the Hurriyet daily said.
It quoted Turkish security sources as saying that a Russian military delegation, headed by a general and including members of the Russian military intelligence service GRU, had flown into Qamishli on January 16 to inspect the airport.
The Kremlin and Iran are the chief remaining allies of President Bashar al-Assad who Turkey wants to see ousted as the key to ending Syria's almost five year civil war.
Turkey has repeatedly expressed alarm about Russia's deployment of troops to Syria which Moscow says is aimed at fighting jihadists but is widely seen as buttressing the Assad regime.
Education Minister Nabi Avci, speaking in parliament, claimed Russia's forces in Qamishli were working with both the regime as well as Kurdish militia of the Democratic Union Party (PYD).
The People's Protection Units (YPG) have established control over much over the northern Syrian border region in the past months after pushing out Islamic State (IS) jihadists.
But Ankara accuses the PYD and YPG of being the Syrian branch of the outlawed Kurdistan Workers Party (PKK) and has been alarmed by an apparent tightening of ties between Moscow and the Kurds after the plane downing.
"For us, there is no difference between PYD, YPG, PKK or Daesh (IS)," said Erdogan.
"We will discuss this with Biden tomorrow... I hope that this joint stance will be aimed at preventing this wrong Russian formation in northern Syria," he added.
Hurriyet also claimed a delegation from Russia's Federal Security Service (FSB), the PYD and the Assad regime was now in Qamishli. lk/20:38
###
S&P raises Greece rating after bank recapitalization, reforms
Athens, 22 January 2016 (MIA) - Standard and Poor's raised Greece's rating to "B minus" from "CCC plus", saying the country is broadly in compliance with the terms of its 86 billion euro financial support program after recapitalizing its banks and taking budgetary steps, Reuters reports.
Despite various shocks, Greece's economy had proved to be more resilient than expected, the ratings agency said on Friday.
"By the end of March, we expect a compromise to be reached on pension reform that will balance the government's preference to raise social security contributions and consolidate the separate pension funds into a single system," S&P said.
In November, Greece reached an agreement with its lenders on financial reforms to secure further bailout funds.
S&P said it expected "one more year of essentially flat growth" for the Greek economy, "followed by a more robust recovery."
The ratings agency also raised Greece's short-term foreign and local currency sovereign credit ratings to "B" from "C".
The outlook is stable, S&P said. lk/21:00
###
Croatian parliament approves new government
Zagreb, 23 January 2016 (MIA) - Croatia’s parliament has approved a new center-right government led by Canada-educated financial expert Tihomir Oreskovic, ending more than two months of political deadlock after an inconclusive general election, AP reported.
Lawmakers endorsed the government Friday with 83 votes for and 61 against after a heated debate over some of the proposed ministers whom the opposition accused of being political extremists.
Outlining his program, Oreskovic pledged much-needed reforms in one of the EU’s poorest performing economies.
The country’s Nov. 8 election was inconclusive. The small Most party, which emerged a kingmaker after the vote, decided to form the new government with the conservatives, ending a four-year rule of the center-left coalition.
Hundreds of human rights activists have gathered outside the parliament to protest against the new culture minister whom they accused of spreading far-right ideology.
|