| dc.description.abstract | he framework and objectives of the economic policy of the Republic of Croatia are defined in a series of strategic documents of the Government of the Republic of Croatia, namely: the Strategic Development Framework for 2006-2013, the Economic and Fiscal Policy Guidelines and the Pre-accession Economic Programmes (PEP). Those documents provide the basis for the implementation of the economic policy in the medium-term period. The main objective of the economic policy, arising, among other things, from the aforementioned documents, is to maintain macroeconomic stability and ensure sustainable economic growth, along with increasing employment and strengthening competitiveness of the Croatian economy based on knowledge in the context of accession to the EU. The 2008 PEP reflects the set economic policy objective and, in that regard, it sets out in detail macroeconomic developments and projections, further direction of fiscal policy, as well as the key structural reforms in the 2009-2011 period. This year's PEP was prepared in the conditions of an unfavourable macroeconomic environment and spreading of the world financial crisis, which Croatia is facing relatively well prepared, but adverse effects of which will contribute to a slowing down of the Croatian economic growth in the forthcoming year as a result of external demand weakening and tighter lending conditions. In these unfavourable macroeconomic conditions, fiscal policy remains in the focus of the overall economic policy of the Government of the Republic of Croatia. Accordingly, continued fiscal consolidation and realisation of the balanced budget by 2011 will be the main determinants of the fiscal policy in the forthcoming period |
