Croatia took a “significant step” toward fiscal consolidation and further efforts should spur confidence and maximize gains from European Union membership, an International Monetary Fund official said.
Croatian Premier Zoran Milanovic and Finance Minister Slavko Linic are locked in a dispute over a year-old land-for-tax deal that threatens to stall the government’s effort to avert a sixth year of recession.
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.
Europe’s sovereign-debt crisis has shown that blindly following austerity prescriptions leads to failure, said the premier of Croatia, the former Yugoslav republic that joins the European Union on July 1.
Croatia is selling its first euro- denominated bonds in three years, betting investors will back government pledges to curb the budget deficit, while prospects for European Central Bank easing lift sentiment in the region.
Following is a roundup of how countries around the world have reacted to Russia’s military intervention in Ukraine’s Crimea region. The responses are grouped under the headings “Pro-Russia,” “Anti-Putin” and “On the Fence.”
Croatia’s top political leaders need to work together to bring the former Yugoslav republic out of its longest economic recession on record and avoid “serious” social unrest, President Ivo Josipovic said.