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Sunday, December 4, 2011

Croatia to vote amid economic uncertainty

Croatians are due to go to the polls in parliamentary elections with the ruling conservative HDZ party beset by corruption scandals and a poor economy.
Zoran Milanovic has not ruled out asking
 for an IMF loan to help Croatia as a "last resort"

Opinion polls suggest the centre-left Kukuriku coalition will win enough votes to form a majority in the 151-seat parliament.

The main opposition leader, Zoran Milanovic, has vowed a "budgetary diet" to avoid a credit rating downgrade.

The next government is expected to lead Croatia into the EU in 2013.

Whoever does form the next government will have to push through a tough budget to avoid a downgrade in Croatia's credit rating, tackle rising unemployment and pursue the anti-corruption fight, says the BBC's Balkans correspondent Mark Lowen.

The opposition Kukuriku alliance, led by the Social Democrats of Mr Milanovic, have promised austerity measures and steps to revive industry and attract foreign investment.

Current Prime Minister Jadranka Kosor has refused to approach the IMF for a loan, but Mr Milanovic says he would not rule it out as a "last resort".

Opinion polls suggest Kukuriku will win an outright majority in Sunday's election.

The economy is struggling out of recession, with growth in 2011 estimated at 0.5%-1% as the European sovereign debt crisis undermines its recovery.

Although the HDZ government has instigated an anti-corruption drive that has put party leader and former Prime Minister Ivo Sanader in court, a number of other officials have been implicated.

Croatia is due to sign a European Union accession treaty next week that will allow it to formally join in 2013.

Source From BBC News

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