Prime Minister Tihomir Oreskovic said on Thursday that the government would not sell all the companies that had been removed from the list of strategic enterprises.

The government plans to sell its 25% stake in Koncar Electrical Industries for EUR 46 million, its stake in the Suncani Hvar hotel company for about EUR 17 million and its 30% stake in the Croatia Osiguranje insurance company.

"That's the 200 million euros I have mentioned before. We have no intention of selling the other companies," Oreskovic told a press conference before a Cabinet meeting.

He said he could see positive signals from the European Commission regarding the government's reform agenda. "It will be better for all Croatian citizens. Public debt and deficit will fall below three percent, and that will send positive signals to investors and Croatian entrepreneurs."

The prime minister noted that Croatia had the highest increase in industrial production in March among the EU countries, adding that he expected GDP to grow and the budget deficit to be reduced to below three percent as required by the EU.

Commenting on a controversial contract between Ana Karamarko, the wife of First Deputy Prime Minister Tomislav Karamarko, and Josip Petrovic, a lobbyist for the Hungarian MOL oil and gas group, Oreskovic said he would wait for the Conflict of Interest Prevention Commission to decide on the matter, stressing that he personally believed that Mr Karamarko had not done anything against the interests of Croatia.

Speaking of the INA oil and gas company, the prime minister said that he would form a team of negotiators. "INA is a strategic company for Croatia and I will get much more involved in this entire process," he said, adding that the arbitration with MOL would continue.

Oreskovic also noted that his government continued to have a majority in Parliament.

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