October 27 (SeeNews) - Croatia's prime minister Andrej Plenkovic said on Thursday that the four fundamental objectives of the new government are to achieve stable and lasting economic growth, create new and better jobs, halt emigration and advance social justice and solidarity.
"Achieving sustainable economic growth will be a key priority of the 14th Croatian government. Therefore, we will pay special attention to defining measures aimed at economic development. They will be centered on raising the living standards, stimulating production and creating new jobs", Plenkovic said, according to a government press release issued after the caninet's first sitting.
Plenkovic noted that a reform of the tax system will be another main focus of his term, adding that once the reform is completed Croatia will have a stable, sustainable and predictable tax system.
Tax reform is to include all segments of the tax system, and will be particularly aimed at simplifying the structure of the system, broadening the tax base and introducing tax reliefs for individuals and businesses, Plenkovic said.
In terms of the privatisation of government assets, Plenkovic noted that he intends to transform the privatisation office into a ministry.
"Croatia has a significant collection of assets that are underutilized or abandoned, and such ineffective or insufficient use of assets is one of the main obstacles to economic growth", he said.
Plenkovic asserted that he will not let oil and gas company INA turn into a subsidiary of its Hungarian peer and majority owner MOL. He recalled that INA, which employs 11,000, is the biggest company in Croatia and stated that his cabinet will make sure that the company continues growing.
Plenkovic announced that a meeting between representatives of INA and the Croatian government will be held soon to discuss their relations and Croatia's strategic interests in INA. He also added that Croatia is set to draft a clear strategy of its plans for INA.
Local media have recently speculated that MOL may close down INA's Sisak Refinery which would cost Croatia hundreds of jobs. MOL holds a 49% stake in INA, while the Croatian state, as the second biggest stakeholder, has an interest of around 44%.
Plenkovic, also HDZ party leader, took office last Wednesday after his government received the parliament's approval.
HDZ reached an agreement with centre-right MOST to form a coalition government following last month's early elections. HDZ won 61 of the 151 seats in parliament in the elections. MOST won 13 seats. Plenkovic has also been backed in parliament by deputies representing ethnic minorities and some smaller parties.