Economist Ivan Lovrinovic of the 'Only Option' coalition on Thursday presented the coalition's platform of monetary and tax policies and said that Croatia needs a strong turnabout in its economic policy based on new foundations because the Croatian Democratic Union (HDZ) and the Social Democratic Party (SDP) had implemented the same model since 1993 which is not giving any results.

The Only Option will differ from its contenders because it will combine fiscal and monetary policies with active employment measures, subsidies and restructuring of the real economy.

Lovrinovic said that enterprises and employees would be unburdened and that interest rates that are several times higher than in competitive countries would be decreased significantly.

The non-taxable level of income will be raised to HRK 5,000, while entrepreneurs will be guaranteed that reinvested money will not be taxed. At the end of the term, the coalition plans to increase the minimum wage which is lower only in Romania.

The Only Option also intends to charge Value Added Tax upon payment as well as introducing a 5% VAT rate for agriculture.

The budget deficit due to the lower VAT rate would be covered by re-scheduling the public debt which would also then finance subsidised employment programmes, development of science and the economy, and debt reduction.

Lovrinovic said that by re-scheduling public debt through interest rates, the country could save HRK 5.1 billion annually.

Apart from that, Lovrinovic said, there is currently HRK 17 billion in the Croatian National Bank's capital account, HRK 7 billion of which should be transferred to the Ministry of Finance.

Ivan Vilibor Sincic, the leader of the Human Shield, a partner in the Only Option coalition, said that political stability is the main precondition to realise the coalition's platform and that is something that Croatia has not had over the past few years.

The Only Option coalition consists of the Human Shield, the Franak association of debtors with mortgages pegged to the Swiss franc, the Let's Change Croatia party and the Youth Action group.

Related stories

Minister talks proposal to raise VAT rate in tourism

Ministry says nominal cost of tax reform HRK 3.6 bn

New tax reform-related laws to go into force in 2017

Latest news

Syrian opposition rules out future role for President al-Assad

The Syrian opposition said Friday it would not accept any role for President Bashar al-Assad in the future of the war-torn country, reacting to a recent US shift saying that removing al-Assad is no longer a priority for Washington.

Russian Army integrates breakaway forces of Georgian province

Parts of the small fighting forces of the Georgian breakaway province of South Ossetia have been placed under Russian military control, Russian Defence Minister Sergei Shoigu said on Friday.

Czech Republic's Pilsner Urquell beer is now Japanese

Japanese brewing company Asahi completed its takeover of the Czech brewery Pilsner Urquell on Friday, Asahi said in a statement.

Judge approves 25-million-dollar settlement of Trump University case

A US district judge on Friday approved a 25-million-dollar settlement of lawsuits and state fraud allegations against Trump University, the US president's now-defunct business venture.

Former Thai premier Thaksin to junta on reconciliation: 'Cut me out'

Former Thai prime minister Thaksin Shinawatra on Friday announced that he is not interested in the junta-led reconciliation process, three days after the junta handed him a half-a-billion-dollar tax bill for his past business deal.

Dalic: We welcome possible deal between Agrokor and banks

The government welcomes the possibility of an agreement being concluded between the Agrokor food company and creditor banks, and the bill on vitally important companies is not a fallback plan but the result of the government's care for the overall economic and financial stability of Croatia, Deputy Prime Minister and Minister of Economy Martina Dalic told a press conference in Zagreb on Friday.

Croatia, China sign action plan for cooperation in agriculture

The Croatian and Chinese ministries of agriculture on Friday signed an action plan for cooperation in the field of agriculture for the period 2017-2018, the Croatian ministry said in a statement.

ZSE indices up, Agrokor shares in focus of investor interest

The Zagreb Stock Exchange (ZSE) indices on Friday rose by more than 1.8%, with stocks of the Agrokor food and retail concern being in the focus of investor interest again.

Berlin police defend handling of Berlin market attacker

Berlin police defended themselves on Friday against accusations that they stopped surveillance on Berlin Christmas market attacker despite knowing in June 2016 he was dangerous.

Croatia, creditors tailor emergency measures to save tottering giant

Croatia's tottering retail and food giant Agrokor reached an agreement with its creditors, putting its debts standby and allowing it to continue working during emergency restructuring, the Croatian branch of Austria's Erste Bank said Friday.

Agrokor's creditors say standstill agreement to go into force today

A standstill agreement regarding the Agrokor concern's existing financial obligations to banks will take effect on Friday, additional capital will be injected into the concern in the coming days and the concern will be actively restructured, which includes a change of its management, it was said on Friday after a meeting between Agrokor's suppliers and creditor banks.

Palestinians, UN slam Israel's new settlement plan

Palestinians, Israeli activists and the UN lambasted the government of Israeli Prime Minister Benjamin Netanyahu on Friday, a day after it gave the go-ahead for the first new West Bank settlement in a quarter of a century.

South Sudan rebels release three abducted foreign oil workers

South Sudanese rebels have released three foreign engineers they abducted in early March in the oil-rich Upper Nile region, Foreign Affairs Ministry official Mawein Makol Arik said on Friday.

Turkish opposition: Imprisoned party chief has gone on hunger strike

The head of Turkey's pro-Kurdish opposition party has launched a hunger strike from prison.

European leagues threaten Champions League schedule clashes

The European Professional Football Leagues (EPFL) on Friday threatened schedule clashes on Champions League matchdays in an ongoing dispute with the governing body UEFA.

Danish court revokes citizenship of IS volunteer

A Danish appellate court on Friday stripped a man of his Danish citizenship for volunteering to fight for the extremist Islamic State in Syria.

Banks and Agrokor agree on key elements of standstill agreement

Member banks of the coordinating committee of financial creditors and representatives of the Agrokor food company have in principle agreed on key elements of a standstill agreement, which is expected to be signed later today, announcing changes in the company's management team, Erste Bank said in a statement on Friday afternoon.

Syrian man on trial in Sweden; mosque attack labelled terrorism

A Syrian man went on trial Friday in the southern Swedish city of Malmo, charged with terrorism and arson after an attack last year on a building used as an assembly hall by Shiite Muslims.