Croatia had its credit rating affirmed at BBB- by Standard & Poor’s with a negative outlook over concern that an overhaul of its labor market and public sector will fall short and hamper economic growth.
The Croatian government will slash the budget below its target and attract more investment to pull the nation out of a recession as it enters the final phase of joining the European Union , Prime Minister Jadranka Kosor said.
Croatian prosecutors are investigating the ruling Croatian Democratic Union on suspicion of corruption and the illegal use of funds during previous election campaigns, Prime Minister Jadranka Kosor said.
Croatian Premier Jadranka Kosor rejected tax increases as part of her plan to slash the budget deficit, keep family benefits intact and create new jobs should her Croatian Democratic Union party win December elections.
Croatia should resist rushing to adopt the euro after it joins the European Union as a feud over bailouts dims the currency’s appeal, said the head of the party that leads opinion polls before the December elections.