Zagreb, 20 July 2009 – UATUC President Ana Knežević sent a letter to the Prime Minister Jadranka Kosor containing the conclusions of the UATUC Council regarding the situation in Croatian economy, the scope of the crisis and the effects of the adopted measures. The conclusions are the following:

1. In order to protect the real purchasing power in the country, especially workers and pensioners` standard, the Government should prevent the increase of the prices which are under direct or indirect influence of the state and local self-government.

2. We are against the increase of the VAT, local taxes, contributions, all forms of utility rates and other expenses which would burden households and enterprises.

3. We are against the increase of interest rates what represents a serious danger for citizens and enterprises and endangers their existence. Laws which would protect all those families, which have taken loans to solve their housing problems, from the increase of interest rates should be adopted immediately.   

4. We demand the introduction of new taxes what would help in balancing the burden of the crisis:

- fairer tax on luxury properties – yachts, cars, villas, airplanes, etc.

- taxation of the use of company property for personal purposes

- taxation of capital gain above 75,000 kn (cca 10,000 EUR)

- taxation of real estates.

Croatian society is now disintegrated – there are a few rich and an increasing number of the poor.

5. UATUC demands the quick solution of insolvency problem by adopting a law which would stipulate that all payments must be carried out within 60 days. After the expiry of this deadline the Croatian Financial Agency (FINA) should be able to take the money from the account by distraint.

6. We demand that the system of public procurement prefers domestic production to the maximum possible degree and that this system becomes clear and effective.

7. We propose the establishment of antirecession clusters so that public work would be financed through concessions or public-private ownership. Large infrastructure projects should be financed by EU funds.

Budgetary investments should be directed towards regional and local projects which employ a large number of companies from different economic activities (reconstruction of regional roads, schools, building of child-care centres and nursing homes, projects in the area of renewable energy sources, building the infrastructure for agriculture and water management – draining/irrigation). Those measures would keep the level of employment and production dynamics in sectors which are hit by the recession the most.

8. We demand the subsidizing of wages for those workers whose working week is reduced due to the decrease of orders or cancelled work in their companies.

We are against the reduction of wages in the public sector which already contributed to stabilisation by accepting the non-payment of 6-percent wage increase as well as by reducing pensions for those with full years of service.

Budget revision should be done by:

- cancelling privileged pensions not earned by working,

- cancelling all privileges,

- revising social expenditure,

- cutting unnecessary expenditure (purchasing furniture and cars),

- reducing subsidies and incentives to the necessary level.

9. We demand the implementation of land and local self-government reform as a necessary prerequisite for recovery and new economic development of the Republic of Croatia and strong fight against corruption, grey economy, undeclared work and tax evasion.

Based on all the above-stated we demand the solving of all problems through tripartite dialogue and solving of problems of certain economic activities through sectoral dialogue (ministries, employers, trade unions) in order to see the first results already in autumn.

If the economic situation continues to worsen, the UATUC will organize a public protest, demand extraordinary elections and establishment of the government of national salvation consisting of those who are willing to contribute, by their knowledge, work and honesty, to economic recovery of the Republic of Croatia and prosperity of all its citizens.