"One option is to make radical cuts, as is often suggested, but I believe that the key issue is how to fill the budget. Cutting salaries and pensions would seriously affect the country's stability and I am glad it didn't happen, but on the other hand, objections regarding the developmental aspect of the budget are justified and I support them," Josipovic said when asked by reporters to comment on the World Bank's estimate that Croatia's revised budget was not in accordance with efforts made by other European countries to overcome the crisis.

"The budget is here, a new one will be made as well. I would like care to be taken also about the development of production and investments, because if we manage to open new plants and create new jobs in the country and abroad, it will be easier to fill the budget."

When asked if it was realistic to expect Croatia to overcome the crisis next year, Josipovic said that it would take a lot of effort, adding that Croatia would need more than a year to overcome the crisis.

He noted that responsibility towards work, notably in the state administration, was an important aspect of efforts to overcome the crisis.

When asked when he would strip of their military decorations generals Branimir Glavas, Mirko Norac and Vladimir Zagorec, Josipovic said that he would do it very soon.

Generals Glavas and Norac have been convicted for war crimes and General Zagorec for fraud.

"If the law says that a military rank is to be taken away from a person who has been sentenced to more than three years in prison, anyone sitting in the Office of the President must do so, not for the sake of the President's reputation, but for the sake of the rule of law," Josipovic said.

He added that it was not under his jurisdiction to decide if the three men would continue to receive their pensions and that that decision was up to the pension system.