"It indicates the economic situation is serious, it indicates that it's necessary to work very hard on the launching of new projects, new investments, new jobs. Because without that, it will be - let's sell this or let's sell that - while the fundamental problem, the poor economic situation, won't be solved," Josipovic told Croatian Television.

The government today invited expressions of interest and non-binding bids for a 99.13 per cent stake in the HPB.

Asked to comment on a European Commission request that Croatia inform the European Union by August 23 about the deadline by which it would align its law on the European Arrest Warrant with European legislation, the president said he saw no problem in amending the law. "If the EU thinks so, and a discussion on this has just begun, the law should be changed."

Commenting on arrests of people who booed the prime minister during a recent commemoration speech, Josipovic said they were political harmful and that a magistrate's court would find whether there had been grounds for the arrests. "I'm sorry there are those who haven't had enough of conflict, blood and war, but, fortunately, they are a minority."