"Reactions to that decision are a little exaggerated, I think. The process of salary adjustments means that several dozen officials will have their salaries reduced, while four officials' salaries will increase", he said, adding that the proposal was yet to be put to parliament.

A total of HRK 20 million will be saved on salaries for office-holders this year and these four had lower salaries last year than other officials who are conducting easier jobs, he explained.

Asked whether it was wise for the government to make such a decision considering the crisis, Bauk replied that the government would accept the consequences for the political implications of their decision, be they good or bad.

Minister Bauk commented on the current debate in public of whether it was necessary to introduce bilingual street signs in Vukovar saying that based on the results of the latest population census the portion of the Serb ethnic minority in that town was such that the constitutional legislation facilitating minority rights and official use of minority language and script should be applied within a reasonable time.

"I would dare to add that Vukovar is as Croatia as long as Croatian laws are respected and by adhering to that law it will be one step more Croatian than it is now", he said.

He recalled that based on the population census, in 24 municipalities or cities in Croatia ethnic minorities accounted for more than one-third of the local population which then should legally have the right to the use of the minority language. "These include 20 municipalities where the Serbian language is an official language one municipality where Hungarian, Italian, Slovak and Czech languages each are used officially. For most of these places, bilingualism was compulsory even before now", he said at a function organised by the Serb National Council in Zagreb on Friday for the celebration of Christmas according to the Julian calendar.