Croatia to rebalance 2014 budget by end-March to meet EC recommendations

By bne IntelliNews December 13, 2013

Croatian finance minister Slavko Linic said on Dec 12 the government will by end-2013 send the European Commission the set of measures for reducing the 2014 fiscal deficit and will revise by end-March the 2014 budget bill - as a response to the excessive deficit procedure (EDP) the EC is launching against the country, business portal SEEbiz reported.

Linic told a press conference after the cabinet meeting that by adopting its investment plan of 2014 on Thursday, Dec 12, Croatia already sent a message to the EC about its intention to reduce the deficit. Under the plan, the country hopes to attract HRK 73.1bn (EUR 9.6bn) of investments next year, up from planned HRK 66.6bn in 2013, which will lead to mild growth of consumption.

Linic also said that one of the measures to reduce the budget deficit would be rationalising the health and education sectors, which however will not be related with wages and pensions cuts in that systems.

Earlier in December, the parliament endorsed next year's budget bill with planned deficit of HRK 17.5bn, or 5.0% of the projected GDP. The EC, however, recommended as part of the excessive deficit procedure that Croatia should target reducing next year's gap to 4.6% of GDP, which is an annual improvement of the structural balance of 0.5% of GDP in 2014.

Related Articles

Raiffeisen to file lawsuit against new Croatian banking law

Austria's Raiffeisen Bank is preparing to file a complaint at the Croatian constitutional court later in July against a recent law that aims to declare thousands of its loans to Croatians void, ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Croatian central bank intervenes again to alleviate kuna’s appreciation

Croatia's central bank (HNB) purchased €101.5mn on the foreign exchange market on July 14 at an average kuna/euro rate of 7.4210 from local banks in order to alleviate the appreciation of the local ... more

Dismiss