S&P Downgrades Croatia

Politics ♦ Published: December 17, 2012; 18:25 ♦ (Vindobona)

Croatia´s Minister of Finance Slavko Linic does not exclude that Croatia needs support from the IMF next year.

S&P Downgrades Croatia / Picture: © Vindobona.org

According to the U.S. rating agency, Croatia´s reform progress is not sufficient. S&P criticizes that Croatia´s labor market conditions are not flexible enough. Croatia´s employment quota is declining steadily for years. Moreover, structural reforms were not implemented the rating agency said and assumed that Croatian interest groups are offering resistance against reforms. As a…