President of the Croatian Chamber of Economy Luka Burilović Comments on the First 100 Days of the New Croatian Government

Luka Burilović, predsjednik HGK

“During its first hundred days, this Government’s focus was on the definition and the implementation of the tax reform, as well as on the creation of the action plan for the economy disburdening. The fact that the stated activities are transparent and clearly directed towards the economy is immensely encouraging, given the fact that the tendency is to facilitate business processes for our companies and to create a more stimulating business and investment climate. Still, since our country lags behind the average Middle and Eastern European countries, according to all indicators, it is crucial to implement many structural reforms, such as reforms in pension, health and education systems, or as the public administration and companies’ reform. Some preconditions have been made, such as the foundation of State Property Ministry and Ministry of Demography, Family, Youth and Social Policy, thus emphasizing the importance of issues, which have not been in the focus of our economy politics so far, but still – some more dynamic and decisive moves were not made during the first 100 days.

Tax reform implementation shall result in moderate tax disburdening, which shall not jeopardize the necessary fiscal consolidation of the public finances, and it shall create a more stable and more predictable tax system. It is positive that the reform is directed both at the companies, especially small and medium ones, as well as at the citizens, which should positively affect further consumption growth and further investment growth, through the salaries increment and the disposable income increment.

I am personally very grateful that the Government has used its first 100 day for the implementation of measurements and activities whose function is to create a more convenient business and investment climate, with the intention to decrease general expenses. Nevertheless, I expect more strengthening activities in the implementation of deeper structural reforms, reaching the goal of improved competitiveness and more dynamic and sustainable economic growth.”