Milanovic dismissed criticisms that his government lacked determination and, responding to the call from HUP president Ivica Mudrinic for a social consensus on development issues, said it was the government in the end that made decisions.

Mudrinic said he believed that the government had failed to make the toughest reform moves in the first year of its term in office, which he said was why Croatia "is still in a roundabout rather than on a highway of development." He said that the government was relying too much on a strategy of state investments which didn't happen.

Mudrinic said that Croatia's accession to the European Union on July 1 was one of the watershed moments in the country's history and therefore it was necessary to achieve a social consensus on the further development of Croatia.

Milanovic said that the government had taken a series of important decisions, citing the reduction of health insurance contributions and Value Added Tax in tourism and the abolition of non-tax duties. He stressed that it was not true that the tax burden on businesses had been increased.

The government will continue putting public finances in order and improving the business climate, and is ready to discuss this with the social partners and political rivals, the prime minister said.

Milanovic said that the rhetoric used by the Opposition, which has said that the government should be "demolished", was unacceptable. He invited trade unions to continue dialogue, saying that the modifications the government had been forced to make were small compared to those made in the private sector.

President Ivo Josipovic called for promoting a stronger entrepreneurial spirit and social partnership. Most economic indicators are negative, but Croatia must find the strength to define goals through social dialogue and then implement them, he said.

Josipovic said he saw room for economic recovery in exports, particularly to eurozone countries. He said he believed that competitiveness should not be built on the cost of labour alone, and recommended to employers to develop products of high added value. It is time for dialogue on the prospects of development, he added.

"Monkey chanting at dark-skinned players, singing Ustasha songs, burning ethnic minorities' flags, rioting and hooliganism will disappear only if, along with ethical messages, we secure a future and jobs for young people," the President said.

Such an opportunity will be provided by Croatia's accession to the European Union, said the head of the EU Delegation in Zagreb, Paul Vandoren. Membership of the EU is not just a testimony of the transformation Croatia has gone through but also a unique opportunity, he said, highlighting benefits of the common market of 500 million consumers.

The conference brought together several hundred employers and entrepreneurs, several government ministers, and prominent figures from business and public life. In addition to Entrepreneurs Day, the HUP also marked 20 years of its existence during which it has become the unavoidable representative of employers in tripartite dialogue with the government and trade unions in shaping economic and social policies in Croatia.