"Croatian citizens spend more on their mobile phones than they do on electricity. They should talk less so they can save 40 kuna for the electricity bill," Cacic told reporters during his visit to the northwestern city of Varazdin when asked for a comment on the government's decision to raise electricity and natural gas prices.

When asked how he expected people to cope with the latest price hikes given that their wages were 40 per cent of the EU average, Cacic said that "energy is a product that does not depend on us and we have to pay for it."

Cacic said that the 6% tax on the telecommunications operators would remain in force until the telecommunications companies presented their investment plan with precise amounts and time limits, which he expected next week.

"I have been expecting it for a couple of months now, but I haven't received it yet, so the tax remains and it will remain for as long as I don't get a detailed investment plan and guarantees that the telecommunications operators in Croatia will launch investment projects based on the profits they've made here," the minister said.

Cacic said that the Croatian state and independent bodies appointed by it often posed a wide range of obstacles to investment, so the Construction Ministry had removed such barriers so that the telephone network could be upgraded and expanded.

"Crucial progress needs to be made in fixed telephony, which is extremely obsolete. We don't have a good land-line network so investments should be made to improve it. Our regulations pose an obstacle. We must open the space for investment, and we're talking about 4.5 billion kuna," he said.