"This system has become totally rusty, all the blood vessels are clogged, no one wants to take any decisions, so we must break this system. This bill provides a good platform to change it," Cacic said.

Cacic said that after a defensive strategy, the government was now switching over to an offensive strategy to kickstart a development cycle, adding that preparations for that process had been made during the preparation of legislation in consultation with EU investors. He said that his ministry would come out with a strategy clearly defining time frames for particular investment projects and those in charge.

"If we don't move up in the competitiveness rankings, then you'll have every reason to criticise me because that's my job," Cacic told the Opposition.

The bill aims to encourage investment and job creation, simplify administrative procedures and facilitate decision-making processes. Cacic also stressed the importance of competence, determination and energy in preparing and implementing investment projects.

The bill provides for incentives to the manufacturing industry, development projects, business support activities, high added value services, and tourism.

Micro-businesses with investment projects exceeding 50,000 euros will be entitled to a 50% reduction of profit tax over the next five years provided they open at least three new jobs. For investment projects ranging from one million to three million euros a 75% cut in profit tax is envisaged over a period of 10 years provided that at least 10 people are hired, while companies investing more than 3 million euros will be fully exempt from profit tax if they open at least 15 new jobs. Incentives for job creation in technological and innovative infrastructure will be increased from 25% to 100%.

Investors will be offered grants to cover the costs of opening new jobs, namely up to 3,000 euros per job in counties where the unemployment rate is below 10%, up to 6,000 euros in counties where the unemployment rate ranges between 10% and 20%, and 9,000 euros in counties with unemployment between 20% and 30%.

Grants for investment in labour-intensive branches of the economy will be 25% higher for opening at least 100 new jobs, 50% higher for opening 300 jobs, and 100% higher for opening 500 jobs. The bill also provides benefits for first-job hiring and grants for on-the-job training.

If they fail to keep the new jobs for at least five years, businesses that used the incentives will have to pay the money back with interest.