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Croatia parliament adopts welfare cuts
  
ZAGREB, Sept 21 (Reuters) - The Croatian parliament approved a set of laws on 
Friday to cut welfare spending, designed to save to two billion kuna ($243.7 
million) a year and help the government close a gaping state budget hole. 

Government and parliament adopted the package to prevent the budget gap from 
overshooting an already high 5.3 percent of gross domestic product for 2001 
agreed under a standby programme with the International Monetary Fund. 

Most of the new laws come into force on October 1. 

The laws cut child and maternity payments as well as the income of war 
veterans and invalids, and set the maximum possible pension income, including 
that of top state officials and the head of state, at 9,343 kuna a month. 

"It is a difficult social message to pass on, but it is important that they 
bite the bullet now," a Zagreb-based Western diplomat said. 

The reformist pro-European cabinet has faced growing public discontent due to 
rising unemployment and falling living standards.But the package of new laws 
sailed through parliament although the opposition fiercely criticised the 
government for perceived "social insensitivity." 

The government, which hopes to bring Croatia closer to the European Union, 
has vowed to pursue reforms and enforce further cuts, possibly in state 
administration, in the next two years. 

06:52 09-21-01

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