Croatia News - CroatiaPress.com

Zagreb, February 12 (CP) — The central bank governor Zeljko Rohatinski has stated that inflation needs to be curbed and a combination of monetary, fiscal and other policies’ measures should be introduced.

After meeting with PM Ivo Sanader he called on the government to support the curbing of inflation with measures that are not popular, but are necessary if inflation is to be brought below three percent in line with the Maastricht criteria.

The five measures are firm control of prices in the public sector and the expenditures of the state budget, the cutting of deficit or tax obligations from the increase in budget revenue, the restricted increase of wages’ movements and the re-financing of the foreign debt of the state on the foreign market.

Rohatinski also demanded the limiting of the nominal exchange rate of 7.35 kuna per euro.

The spiralling inflation has endangered the economic success Croatia has enjoyed as of late, the main focus of the country’s financial bodies being to restore it to previous levels of about 3 percent.