New Croatian cabinet takes office, vows to reduce debt

Dec 23, 2011, 14:45 GMT

Zagreb - Croatia's new prime minister, Zoran Milanovic, and his cabinet were sworn in Friday after proposing to parliament to cut borrowing while at the same time stimulating economic growth.

'We have so far not really reformed, the job only begins now,' said Milanovic, presenting his program that is intended to deal with the stalled economy, inefficient state enterprises and massive debts.

But he also promised to 'defend social rights.'

The new, centre-left cabinet of 22 was approved by 89 legislators, with 28 opposed and 12 abstentions.

The coalition led by Milanovic's Social Democratic Party won elections on December 3, claiming 80 of the 151 seats in parliament.

The Croatian Democratic Union (HDZ), which had ruled for all but four years since Croatia's independence in 1991, was swept from power amid discontent over economic problems and widespread corruption.

Ivo Sanader, the former HDZ leader and prime minister from 2003-09, is on trial for corruption under charges that he pocketed tens of millions of dollars for himself and the party.

Croatia has completed accession negotiations with the European Union and will become the bloc's 28th member on July 1, 2013.

Milanovic stressed that he will continue an anti-corruption crackdown, which opened EU doors to the former Yugoslav republic.

'Anybody from the previous authorities can sleep in peace, if he broke no laws,' he said.