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Croatian Prime Minister Ivo Sander has banned Christmas and New Year celebrations in the public sector.
Government organisations will not be allowed to spend cash on festive events because of the global financial crisis.
"We forbid buying of Christmas and New Year's gifts as well as organising of Christmas and New Year's receptions," he said.
"I believe that with the proposed measures... we can avoid a deeper crisis within the next year."
Sander said there was currently no need to panic, but argued that the country must take the financial difficulties seriously.
A freezing of public sector salaries has also been proposed for 2009.
