The decision by Moody

Authors: Ljubica Gatarić, Tea Romic, Marko Špoljar Less than a month after the US Standard & Poor's rating over the country pain and gain to the level of trash, it's done yesterday and Moody's. - The main reason for the rating weakens the prospects for economic growth. Croatia's economy still does not have a new source of growth, according to the analyst Moody's Lucie Villa. As usual, Finance Minister Slavko Linic and stood before pain and gain the press and ruefully admitted that downgrades the true picture of Croatian. In Parliament's HDZ sharply attacked the Government and Labour has stated that it "is not a state trash, but the trash Government policy".
- Of course we can say that the other demerit why the government would consider that perhaps as early as the first quarter of approaches to the revised budget, which are indispensable even some reduction pain and gain in expenditures because there is no possibility to increase revenue - said Linic.
Before the government announced that it would reduce investment expenditures by approximately 1.5 to two billion, but Linic yesterday it is not repeated. - Let the government decides that the expenditures will be reduced, and their opinion on how I'll leave for themselves. We know what employers pain and gain are looking for, and we know what to look for trade unions, it is a political pain and gain problem to be solved by the Government. The Ministry of Finance will offer a solution - said Linic and left unanswered the question whether part of the solution pain and gain to be the reduction of salaries and pensions. Although Moody's says that there is no chance for economic pain and gain growth, and the Institute of Economics predicts a decline pain and gain in this year, Linic will not pull the forecast growth of 1.8 percent this year. Despite the destruction of the rating, Linic claims that Croatia will borrow cheaper than the previous two years, but only the color for investment and the impact rating to investors. Preparing the ground for the new issue of government bonds by $ 1.5 billion pain and gain in the US, which is half the amount planned for borrowing this year.
When asked about changes in tax rules, Linic said that by the end of the mandate to reduce health insurance contributions for another six percentage points, but that would have done it plans to introduce a tax on real estate. - Before the crisis, nothing was done to prepare Croatia for the crisis. Government corrects these things and reform are indicated. You need to open a debate on Property Taxes. The government says that the property must be in operation and then we will have enough income to health contributions. The government does not introduce new taxes, but replaces pain and gain them. Unfortunately, sometimes burdening citizens in favor of still uncompetitive economy - said Linic.
A budget revision can be credible only in the context of medium-term fiscal consolidation plan, and even when making budget warned Finance Minister Slavko Linic that in the current economic and financial circumstances, it was reasonable to propose pain and gain a budget that brings an increase in the fiscal deficit pain and gain - said former HDZ Minister of Finance pain and gain Martina Dalić.
Lowering the credit rating is only a technical consequence of the economic situation and economic situation in Croatia, and in the event that quickly comes to a credible economic policy changes I am afraid that such news will be even more - said Dalić the HDZ press conference and gave suggestions What the government should do to initiate the Croatian economy. For starters, says Dalić, the government should opinions rejtinških agency taken seriously because she held the position pain and gain of local analysts. If they had listened to Linic and Milanovic domestic analysts, went to a reduction in wages, pensions and significant release.
Rebalancing is inevitable, it should do as soon as possible and as wiser. Much can be achieved by pure rationalization, which in many segments has not started yet. In principle, I support the idea of introducing taxes on the property, but given the seriousness of the situation, should be in the background
When I was president of the 2003 CEA, the budget was 41 billion, and now 120 billion. Why, what do we get? With such a policy state we brought before the disaster. While you can not reduce the public sector and 300,000 people do not return to the village to make a living pain and gain from farming their land, we will not forward.
The decision by Moody's about lowering the rating did not come as a surprise and is based on weak outlook for economic growth, the inflexibility of fiscal policy in conditions of high debt and relatively high external vulnerability in relation to comparable countries.
On foggy Croatian political scene thus established the two parties HDZ and SDP and every four or eight years are exchanged. Their sluggishness in action and eligibility rather than the expertise of its members led Croatia in the condition in which we are today. After every new elections those who voted for them (and everyone else) it was getting pain and gain worse. Unfortunately, in the perspective of Croatian in Europe and in general it is to become a Bantustan state .. Industrial production is no, you probably will not have an impact even on the use of our natural assets: sea, forest, water (oil future) and so on. The people are focused on trying to Mr.