He said this year's plan to promote enterprise was worth HRK 300 million and that tenders for the implementation of 18 measures would be called between March and June.

The measures of the operational plan envisage tax relief for business owners, including zero profit tax on re-investment, nonpayment of contributions for every new employee in the first two years of service, increasing the amount on which value added tax is paid to HRK 230,000, and a lower VAT rate on industries such as hospitality and tourism.

The minister would not reveal the amount of the lower VAT rate or when it would go into force.

The ministry plans a credit line for SMEs through the Croatian Bank for Reconstruction and Development (HBOR) with annual interest rates of up to three per cent. Early next month, the HBOR and the European Investment Bank will sign an agreement on EUR 250 million envisaged for that purpose.

The measures envisage stepping up investments, with the ministry providing a personal manager for every project exceeding HRK 20 million, and encouraging SMEs to participate in public procurement and public-private partnership.

This year's enterprise promotion plan envisages incentives for more than 1,000 business owners, investments worth HRK 500 million, and training for more than 3,000 business owners.

The minister highlighted the importance of helping business owners implement their projects and draw EU funds.

The ministry also plans to establish a regional enterprise development centre worth EUR 30 million whose construction will be financed from structural funds. The centre is expected be located at Zagreb's Bronogaj campus. The preparation of the tender documentation will be financed with EUR 1.6 million from the Western Balkans Investment Framework, and the project is expected to be ready on 1 January 2015.

Maras also announced the establishment of the Enterprise, Investment and Competition Agency in cooperation with the ministries of the economy, regional development and EU funds, and science and education.