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TOP INTERVIEWS: EUROPE  
M. Philippe LecourtierCroatian Coat of Arms
Interview with Dr. Miomir Žužul
Minister of Foreign Affairs
Republic of Croatia
( Interview conducted at the Crans Montana Forum )

Crans Montana, Saturday June 26th 2004 - Following the positive opinion (Avis) of the European Commission, the EU has requested additional efforts for issues such as the return of refugees, minority rights, legal reform, regional cooperation and the fight against corruption. What are the measures you are going to adopt on these issues?

Thankfully, some of these issues are not as problematic in Croatia as in other states that are entering the EU, due to the fact that Yugoslavia was historically closer to a free market economy and western legal system. Therefore our legislation has a strong base on which to build on.

In regards to the issue of corruption, we believe that Croatia’s old-fashioned bureaucracy must be streamlined in order to increase transparency, yet I do not foresee any major difficulties with this issue.

As far as the return of refugees, is concerned, this is related to war in the 1990s when Croatia was hosting up to 800,000 displaced persons. We are taking into account the need for property rights and the return of wealth, and now we only have a relatively small amount of people who are still seeking further support on this issue.


Dr. Miomir Žužul

The reform process is also a key element for EU accession. What are the key elements of this program?

We have already introduced a number of key reforms dealing with economic development – which includes significant tax rewards in order to attract foreign investment, create employment and facilitate the development of the economy.

At the same time, will the reduction of the foreign debt be an important issue?

Yes. This is an important issue which is inter-related with EU accession.

Croatia has strong macro-economic indicators, especially compared with other EU countries. Yet we have some problems such as foreign debt and unemployment (particularly in some rural parts of Croatia), so we are introducing a number of measures to solve these issues.

On the other hand, we are well positioned with a very stable macro-economic situation, a stable currency and an annual growth that matches the levels of other strong economies in transition.

Do you really believe that Croatian companies will be able to compete with EU multinationals, and do you think that labour unions and small Croatian companies will oppose the reforms needed for EU accession?

I believe that Croatia will be in a position to compete with the EU market. At least 50% of our labour force is already working in Western Europe, which illustrates our adaptability and level of education.

Most of the companies in Croatia are already privatised, so they already function under free-market principles. We still manage some state-owned companies that were created during socialism in Yugoslavia, yet they will soon undergo reforms and they have realised that change is necessary in order for us to compete internationally. Meanwhile, the core of Croatia’s economy is built around tourism and private business, so I believe that our small businesses will also appreciate the benefits of joining the EU and participating in a larger, more profitable market.

(continues)
Export development is important as well, especially to show the benefits of EU accession. What is Croatia’s export strategy in this context?

The majority of our exports is already directed to the EU, and we already benefit from a lack of agricultural quotas. Croatia is a country with a strong potential for the production of ecologically preserved foods, and we also have one of the largest mineral water reserves on the continent.

When Croatia joins NATO in 2007, what will be its role in the region?

We believe that Croatia’s entry in NATO and the EU will contribute to stability of the region. We were lending our support and facilities for NATO operations for certain conflicts in Bosnia and Kosovo, and once we are in the alliance we hope to offer greater assistance. In the future, we might also become directly involved in peace operations in the region, if it ever becomes necessary.

Croatia is providing the model for other countries in the region, by implementing international standards and achieving concrete results. This is the message we are sending: if Croatia can do it, we can all do it.

June 16th was the date of the adoption of the cultural, education and international cooperation agreement with France. Is this not a strategic way for Croatia to adopt current EU standards, while getting closer to France?

Absolutely. I am particularly pleased to say that our bilateral relations have never been better. We have developed very good political relations, and there are many opportunities to discuss with French companies in order to improve economic relations. I had a very successful visit to France where I met [French Foreign Minister] Michel Barnier, who will be coming to Croatia this summer, and President Chirac has also recently met with President Stjepan Mesic in Paris.

We appreciate the support we have received from France. We also hope to change the view that, for historical reasons, Croats are closer to the Germans while Serbians are closer to the French… This is not true; we have strong relations with all EU members.

You have said that “we will also work on improving the image of Croatia by emphasizing that we are a nation with a long and proud tradition and culture” How do you plan to achieve this goal?

On a personal level, Croats are probably the most adjusted immigrants in the world. We are a small country, yet there are thousands of people who have emigrated – university professors, doctors, researchers and many other professionals who have helped develop a good international image of Croatia.

The image of Croatia as a destination is different since it was affected by the image of war in the region. Yet most tourists who come to our country are pleasantly surprised, which shows that their expectations were not as good before they left as their impressions were when they arrived. This means that we need to actively promote the real image of Croatia, which we are currently developing, focusing on tourism and image-building in general. In fact, this year the travel guidebook Lonely Planet ranked Croatia as the 4th top tourism destination in the world, so I believe that the change is really taking place.

When you were Ambassador in Geneva in 1993, did you really think that, ten years later, Croatia would be in the situation it is in today?

I was always optimistic. I constantly believed in the future of my country and advocated our role in NATO and the EU. Yet it is especially in the past 6 years, since 1998, that we achieved the most impressive changes in Croatian society.

Half of the Members of Parliament of the Croatian Government are between the ages of 40 and 50 years old, like yourself. Do you feel that they represent the new generation of Croatia?

Yes. For example, Prime Minister Sanader has a PhD from Austria in French Literature and he speaks four languages fluently. Five of the other government Ministers also hold PhDs with experience teaching in universities, which suggests that we are open to new ideas and that we are oriented towards new policies that aim to integrate Croatia within the international community.

 

Copyright © 2004 World Investment News
Interview by Nicholas Bruneau

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