18:07 / 24.05.2022.

Author: Nikola Badovinac

EU Finance ministers discuss ways to combat inflation

Finance Minister Zdravko Marić

Finance Minister Zdravko Marić

Foto: Srecko Niketic / Pixsell

Finance Minister Zdravko Marić said following a meeting of EU ministers in Brussels on Tuesday, that the most important thing in the current situation of high inflation was to maintain economic growth.

EU finance ministers met to discuss, among other things, the current economic situation and prospects in the context of high inflation and the Russian aggression on Ukraine.

Marić said that despite high inflation and attempts to mitigate its effects, nations must not, in any case, neglect economic growth.

"Inflation will continue to grow over the next few months. At the same time, further estimates show that inflation should then begin to stabilize. Meanwhile, due to the high level of uncertainty, it is very difficult to predict how the situation will develop. This being said, we must be prepared to react in a number of ways," said the minister.

Croatia's set of measures to mitigate the effects of inflation is among the bigger ones in the EU in relation to GDP, said the minister. "Croatia is in the upper half because the EU average is 0.6 percent of GDP, while the Croatian package is over 1 percent of GDP.

Croatia has cut VAT on energy and some food and it remains to be seen if the measures have resulted in lower prices for consumers, Marić said.

And in regards to the country's readiness to adopt the euro, the fact that Croatia is no longer experiencing macroeconomic imbalances is very good news ahead of the convergence report in which the European Commission is expected to make its final assessment of Croatia's readiness to adopt the euro.

The report will be debated by EU finance ministers and at an EU summit in June, while the adoption of legislative acts on Croatia's accession to the eurozone is expected in July.

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