Fitch: Croatia view negative

Fitch Ratings said that E.U. accession should have tangible benefits for Croatia, but the government's fiscal policy remains the key short-term factor for the rating, and the prospect of accession increases rather than decreases the need for structural reforms to improve the business environment and support economic growth.

The Electoral Board in Zagreb said Monday that 66% of those who voted had voted to join the European Union. Croatia now looks set to join in 2013.

Fitch said its negative outlook on Croatia's BBB- rating reflects the risks posed by the country's large budget deficit, rising government debt ratio and weak growth.

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