"This is a matter that is unpleasant for the ruling party, but it has entered the judicial system and it should not be a subject of political debates. We should let the judiciary establish what is the truth and what is not, and make a ruling," Josipovic said in an interview with Croatian Radio.

He stressed that members of the public would recognise on their own "this or that political dimension of the entire case", adding that the allegations should be investigated without any pressure from the public or politics.

Josipovic said the latest case provided an opportunity to consider further reforms of the Croatian political system, including the election system and the system of functioning of political parties, as well as the accountability of politicians.

Asked if he believed that all responsibility for the alleged unlawful financing of the HDZ could be shifted to the former Prime Minister and HDZ leader Ivo Sanader, freeing from any responsibility the current party leadership, Josipovic reiterated that responsibility should be established by the judiciary, but noted that if suspicions about slush funds proved true, one person alone could not be responsible for them.

Asked about his position on Chief State Prosecutor Mladen Bajic having opened the investigation into the case of slush funds only now, even though allegations about such funds had been made a while ago, Josipovic said now conditions had obviously been met and the necessary data collected.

He noted that under the law on the criminal responsibility of legal persons, a political party too can answer to criminal charges and, if the charges proved to be founded, compensate for the damage done.

Josipovic said he still had not arranged a meeting with PM Jadranka Kosor at which they would discuss current topics, however, not because there was a lack of willingness, but because of his and her busy schedules.

Josipovic said he believed the meeting could be held by the end of this week. He said the meeting would focus on the forthcoming parliamentary elections, the signing of the Croatia-EU Accession Treaty, as well as on issues which had been burdening their relations, "which have gone the wrong way due to electoral rhetoric, however, nothing is irreparable."

The president said that December 4 as the date of parliamentary elections set by the ruling coalition was acceptable to him on principle.

He said that he expected the election winner to make order in voter registers to prevent further manipulation of votes, notably in Bosnia and Herzegovina, which he said had caused unacceptable antagonism between Croats in Croatia and those in Bosnia and Herzegovina.

Josipovic said time had come for parties to use the election campaign more to explain how Croatia could overcome the crisis, how they saw Croatia as an EU member, and how they envisaged economic and other reforms as well as development of democracy.

An election rhetoric which warns of "the red danger" is counterproductive because Croatia is a country of many colours, with legitimate and legal political options from the left to the centre to the right, he said.

"Intimidating people with colours of this or that kind will only be counterproductive," he said.

He dismissed speculation that he had refused the government's list of nominations for new ambassadors at the request of Social Democratic Party leader Zoran Milanovic, saying that Milanovic had not known about that "quasi list".

He said that as far as the appointment of ambassadors was concerned, he would insist that members of political parties were not appointed to such posts, except in special cases, and that he would insist on professional competence as the main recruitment criterion.