16 September 2008 Zagreb _ Croatia is spending too much and producing too little, and expected EU membership will not overhaul its
economy without serious government efforts, President Stjepan Mesic argues.
"I am not talking about the current government or any particular party, our whole society is built on very irrational behaviour," Mesic said at the opening of a traditional Zagreb autumn fair.
"We cherish a society in which (industrial) production is neglected in favour of speculative business and get-rich-quick schemes, and competence in favour of cronyism. We haven't built a single big industrial production facility in the last 20 years and who is to blame? Politics," he said.
Croatia's foreign debt amounts to almost 90 percent of the country's gross domestic product, while its current account deficit is at around 9 percent of GDP.
Croatia hopes to wrap up the EU accession talks in the autumn of 2009 and become a member in 2010 or 2011. However, Mesic said it would not solve Croatia's economic difficulties.
"We should drop the illusion that EU entry will solve all our problems. We must make our economy competitive to be successful," Mesic said.
Croatia must undertake serious structural reforms, including the overhaul of its ailing industries like shipbuilding, to complete EU accession talks on schedule. It also needs to step up fight against corruption and reform oversized public administration.
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In a strong critique of Croatia's macroeconomic problems - stagnant exports, high foreign debt and public expenditure - Mesic, a reformist president nearing the end of his second mandate, said the economy had been going downhill almost since the country became independent in 1991.
"I am not talking about the current government or any particular party, our whole society is built on very irrational behaviour," Mesic said at the opening of a traditional Zagreb autumn fair.
"We cherish a society in which (industrial) production is neglected in favour of speculative business and get-rich-quick schemes, and competence in favour of cronyism. We haven't built a single big industrial production facility in the last 20 years and who is to blame? Politics," he said.
Croatia's foreign debt amounts to almost 90 percent of the country's gross domestic product, while its current account deficit is at around 9 percent of GDP.
Croatia hopes to wrap up the EU accession talks in the autumn of 2009 and become a member in 2010 or 2011. However, Mesic said it would not solve Croatia's economic difficulties.
"We should drop the illusion that EU entry will solve all our problems. We must make our economy competitive to be successful," Mesic said.
Croatia must undertake serious structural reforms, including the overhaul of its ailing industries like shipbuilding, to complete EU accession talks on schedule. It also needs to step up fight against corruption and reform oversized public administration.
Main News Page
