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The new reform-minded government approved


20.10.2016 11:10:00 | Autor/Izvor RBA analitičari, Croatia

On yesterday's parliament session, Mr. Plenkovic was approved as a new PM and he presented candidates for ministries and the programme of the new Government for the next four years. The main goals by 2020 are set as the following: sustainable economic growth, creation of new jobs, stopping emigration and demographic renewal and social justice and solidarity. As it is stipulated in the Programme the set goals will be achieved through the comprehensive tax reform and institutional improvement, more sustainable public finances (greater fiscal responsibility with focus on the exit from the EDP as well as on credit rating return to investment grade) and better absorption of EU funds and reform of huge public sectors (education, health system ect.).

The new Croatian Government with stable majority (91 out of 151 MPs) implies that Croatia has finally entered more stable political environment. It is also encouraging that, already established and competent experts will be the members of the new Government but also we expect to see more constructive dialogue and cooperation between parties in power (HDZ and MOST) in order to implement (at least some of) promised reforms needed for sustainable growth.

Therefore, a positive response from investment community and markets might be expected. However, it is worth to stress that in order to gain investors' confidence the Government will need to execute its ambitious plans.




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