andrej plenkovic.jpg
Photograph: HINA/ Dario GRZELJ/ ua

Croatian Democratic Union (HDZ) leader Andrej Plenkovic, poised to become the next Prime Minister, said on Tuesday morning that the next cabinet would likely have four Deputy Prime Ministers.

Plenkovic told reporters outside the HDZ headquarters that the talks of expers groups on the new government's agenda and make-up were ongoing.

As for the composition of his cabinet, Plenkovic said that "some departments will be divided and some merged."

Regarding the issue of the conversion of Swiss franc-pegged loans into euro-denominated loans and the dispute with commercial banks over this matter, which seems to be a bone of contention between the HDZ and the Bridge party in their negotiations on the new cabinet, Plenkovic said:" I think that people with converted loans have been addressed by the conversion law, and now it is important to protect the Croatian state and budget. I expect a clear position from the Finance Ministry that will be in charge of the process."

He reiterated that the HDZ would embark on a comprehensive tax reform.

"Profit tax and income tax will be dealt with first. Our idea is to reduce the general Value Added Tax rate (of 25%) in the second year of our term, first to 24% and then to 23%. I am sure that we will reach an agreement with Bridge on this matter," the HDZ chief said.

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