Addressing a news conference he convened on Friday after the President Ivo Josipovic announced that he had called the election for Croatia's members of European Parliament on 14 April, PM Milanovic of the Social Democratic Party (SDP) said that the relations among the partners in the ruling coalition were excellent and that he had excellent relations primarily with Deputy Prime Minister Vesna Pusic of the Croatian People's Party (NS) and other government members from the HNS.

"As for the difference in opinions, I guess they are normal," the premier said.

Commenting on the proposed legislation on introducing the tax on real estate, he said that discussions on the matter would go on.

Therefore this will not be something to endanger the coalition, he stressed.

As for the performance of his cabinet, the premier said he was not satisfied with Croatia's results but that his cabinet would do everything to ensure a positive growth.

"The growth is still absent, but we are changing things for the batter, we are easing the burden on the economy," Milanovic said.

In response to the threats about people taking to the streets to protest against the current situation, Milanovic said "those are old tricks seen many times".

Milanovic denied claims that his cabinet was in the service of the International Monetary Fund (IMF).

"The government is doing what it thinks is best," Milanovic said adding that the Croatian government was now over with austerity measures.

"We are done with stringent cost-cutting," he stressed.