We agreed that the EU must be a union of all citizens and that we must utilise all available instruments to solve the problem of unemployment, particularly among young people, President Higgins said at a joint press conference with his host President Josipovic.

President Higgins, who is on an official visit to Croatia, underscored that he was not criticising austerity measures which the Union was using to fight the economic crisis but that he supported the idea that "all available instruments should be used", including imagination and innovation.

President Josipovic too believes that that the EU, which Croatia is set to join on July 1, was not just a market but a vision of common prosperity, culture and human rights and that Croatia is ready to face the challenges awaiting it as well as being prepared to cooperate with partners in the Union in order to meet the expectations of its citizens.

"The economic crisis is such that even Nobel prize winners cannot agree how to solve it. The time has come for us to consider new policies that will lead to efficiency without threatening citizens' existence", the Croatian president said.

The two officials expressed their readiness for close cooperation and partnership between the two countries which are about the same size, have a similar history and ambitions that the community of European countries secures prosperity for its citizens and to be competitive globally.

We came out of the conflict with Northern Ireland and found our place in the EU. I'm certain that Croatia will recognise that there is room for it in the Union and the rest of the region, President Higgins said.

He pointed out that Ireland had from the very start supported Croatia on its European path and that with its entry into the Union, that project is not complete until it encompasses all European citizens. Ireland's support for Croatia is part of the enlargement policy, a project that is still underway. We will happily bid you welcome on July 1, he said.

Both presidents consider that it is important to maintain contact with the diaspora and to motivate expatriates to invest and to return to their home countries.

We consider that it is important that young people and in particular highly educated people do not break their contact with their homeland. They come to Ireland which then attracts foreign companies because of the qualified labour force, said Ireland's president, whose country has recorded a mild economic growth based on increased production and exports.

President Josipovic added that since the beginning of Croatia's statehood expectations on both sides were great, Croatian expatriates and other investors however are faced with a poor investment climate and inability of the government to ensure them a job.

"The government should come up with a new plan and without economic prospects it will be hard to expect a greater influx of people," Josipovic underscored, adding that it was time to once again consider how to attract expats to Croatia.