M. Continuo

Croatian PM-designate says seeking improved credit rating, investments

ZAGREB (Reuters) - Croatian Prime Minister-designate Tihomir Oreskovic said on Monday his priority was to convince the European Union and rating agencies of his new government's reform plans.

Oreskovic, 49, a technocrat, born in Zagreb but raised and educated in Canada, was put forward by the conservative HDZ party and the small reformist party Most after weeks of talks following the inconclusive Nov. 8 election.

He has until Jan. 22 to get his cabinet approved by parliament.

"It is very important to me that Europe and the rating agencies see the readiness of the next government to pursue reforms. Through reforms, we will draw investments that will strengthen Croatia's economy," Oreskovic told reporters in his first public comments after becoming prime minister-designate.

No concrete details have emerged about the make-up of the new government or its policy priorities.

Croatia, the newest member of the European Union, is rated at the highest speculative level with negative outlook by all three major rating agencies.

The new government must tackle high public debt, nearing 90 percent of gross domestic product, and weak growth.

Brussels wants Croatia to cut the budget gap below three percent of GDP by 2017 and remove bureaucratic obstacles to investment, notably in the private sector.

Oreskovic is a pharmaceutical expert and held the post of senior manager in Israel-based Teva Pharmaceuticals in Amsterdam.

Despite his business and financial experience, some analysts question his ability to pursue reforms due to a lack of political clout.

(Reporting by Igor Ilic; Editing by Janet Lawrence)

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