Croatia: Austerity Policy Faces Difficulties

Politics ♦ Published: January 22, 2013; 19:48 ♦ (Vindobona)

Croatia´s Minister of Finance Slavko Linic thinks that the austerity policy cannot be continued.

Croatia: Austerity Policy Faces Difficulties / Picture: © Vindobona.org

Retaining the current fiscal policy would cause more problems for Croatia than it solves, Linic argues. “If there is no economic growth, the austerity policy does not make sense.” As a result, the country wants to reach an agreement with IMF. Linic wants the fiscal rule to be changed. Due to the economic crisis, Croatia is unable to reduce the budget deficit by 1.0% of GDP per…