"I see the Council as a way of helping myself to understand better economic problems in Croatia, and I want to be a partner to the government within my remit," Josipovic said in his first interview in the Croatian Radio programme "A Coffee with the President", commenting on reactions provoked by his setting up a team of advisors for economic affairs.

"The nervousness demonstrated was completely unnecessary," Josipovic said, adding that by forming his team of economic advisors he was not trying to establish a parallel government, and that therefore there was no need for anyone to call for "putting me to where I belong".

Josipovic thus answered to criticisms from the president of the Croatian Democratic Union (HDZ) parliamentary caucus, Andrija Hebrang, who said that by appointing his Economic Council, Josipovic was trying to assume executive powers in the economic sector, to which he had no right as President.

"I am firmly in my place," Josipovic said, adding that there was no reason for concern.

The President's Economic Council consists of a number of Croatian business people and several economists, including Damir Kustrak of the Croatian Employers' Association, Emil Tedeschi of Altantic Grupa, Ivica Mudrinic of Hrvatski Telekom, Zdenko Adrovic of Raiffeisen Bank, Sasa Pekec of Duke University, Katarina Ott of the Institute of Public Finances, Dragutin Drk of Vindija, and Zeljko Ivanovic of the Banka magazine.

Commenting on recent criticisms over his choice of advisors, Josipovic said that he was being criticised by "those who felt threatened by the concept of new justice".

"I can understand in a way that those who feel threatened by the concept of new justice and my intention to see Croatia finally start dealing with crime, corruption and the intelligence underworld, are sparing no effort. But in my inaugural address I said that I won't let anything discourage me and that I will be the first on the front line," he said.

"I also expect the government and PM Kosor to stay on the line of defence of justice which she claims to be advocating, and I expect us to continue fighting together the intelligence underworld," Josipovic said, declining to speak of concrete names.

Josipovic said his advisors were selected according to their expertise and work in the election campaign, adding that they could not have been vetted prior to their appointment.

He added that he was not sure if government ministers had undergone such background checks.

"By giving up on the people in my election team who have been found to be in conflict with the law, I showed that I live justice and that I won't cut anyone any slack," he said.

He added that he would like everyone to have the same criteria, including the government.

"If this were so, there would probably be no government ministers who have serious problems with the judiciary," Josipovic said.

When asked if he could be more specific, he replied: "We know who has been indicted, don't we?"

Commenting again on criticisms that he would be a remote controlled president, Josipovic said the composition of his team proved the contrary, because it lacked "any political affiliation".

Asked if he was satisfied with the government's economic policy, he said it was obvious that the situation in the economy was not good and that he was eagerly awaiting the government's economic measures which he said his Economic Council, too, would comment on.

Asked about the so-called crisis tax, an extra tax introduced last year on all incomes, Josipovic said that also at the time when he was a member of parliament he was critical about the tax, and that it seemed to have deepened the crisis. He cited the opinion given by a number of experts who said that the extra tax was a short-term measure for filling the budget, which had resulted in the stagnation of turnover and was harming the economy in the long run.

Josipovic did not say if the budget should be revised, saying that he agreed with PM Kosor to hold a meeting soon that would also be attended by Finance Minister Ivan Suker, at which he would be provided with relevant information and decide what should be done on the basis of that information.

Josipovic would not speculate on the possibility that an early election would have to be called.

He said that next week he would travel to Brussels to attend talks with "all relevant EU and NATO officials".