Moody’s Have No Faith In Croatia Benefiting From EU
- by croatiaweek
- in Business
Analysts from bond credit rating house Moody’s are not optimistic about Croatia’s recovery from the current economic crisis.
“Croatia will be one country that will not have a positive effect by entering the European Union,” said the commentary from the organisation that fixes Croatia’s credit rating.
Analysts say that Croatia has not made enough reforms, and has made no attempt to reduce public sector expenditure and it warns that without labour law reforms, public sector reductions and an improvement in the business climate, then there is no chance of GDP growth in the near future.
Croatia in the eyes of Moody’s is a country that above all must change its labour laws. “To ease the burden on employers, it is not enough to lower health contributions by 2 percent, but what is needed is big pension and health reforms,” warned Moody’s, adding that they were not confident Croatia was competent enough to access EU funds when they join the Union.
