In an interview with Media Servis, the PM said that the latest events were not about Rohatinski being replaced, but about "the adoption of a strategic decision on who will lead the HNB in the next six years, as a constitutional institution, very important and autonomous in its work and regulated by law."

"His job is responsible and in our opinion, he (Rohatinski) has been doing it well. But after 12 years, which is a long period, and after talks and consultations with people in that field, we have decided that the best solution would be to appoint a new governor, his deputy Boris Vujcic, a person with an outstanding biography," said Milanovic. He added that this was an important decision, just as it had been 12 years ago, when Rohatinski was appointed HNB Governor during the term of the coalition government led by the Social Democratic Party (SDP).

Milanovic said that he personally had nothing against Rohatinski remaining in his post for two more years, but that there were several problems regarding that option.

"Firstly, it is not a legally clear solution. The HNB Governor is appointed for a term of six years and the term is interrupted only in exceptional cases. Secondly, that solution was not acceptable to Rohatinski, so this seemed the best possible solution," said Milanovic, noting also that Rohatinski had told himself a few times that he would leave his position.

Commenting on Rohatinski's statement to the media that further cooperation between him and the government was not possible, Milanovic said that it had nothing to do with what he had told Rohatinski.

"I don't want to comment on details or justify myself to anyone. We are working in Croatia's best interests, making strategic personnel decisions. After 12 years we think that the time has come for the people of the same school, capable of independent work, to take over the position, notably in light of Governor Rohatinski's announcements that he would leave his position, which were a bit confusing for me as well."

He said that he government held nothing against Rohatinski in terms of his performance, but added that he believed that "we should all be a bit more moderate and clearer in our statements."

Asked if he was disappointed with the way Rohatinski yesterday announced his departure, Milanovic said that it should not be done the way Rohatinski had done it.

He added that he was to have met with the HNB governor this week for a lunch and additional talks. "I believe that he, just like the entire government, believes that the HNB is being left in the best possible hands."

Asked if he supported Rohatinski's policy of a strong kuna and price stability and if such policy should be changed in the current situation, Milanovic said that the HNB was an independent institution. "The stability of the Croatian banking system is the result of the good work of the HNB's governor, team and Council. It is a team with a leader, the leader was Rohatinski and I am satisfied with that."

Asked if the HNB's new leadership would continue the bank's current policy, he said that as far as he knew, it would.

"That was the plan when we opted for the deputy governor (as Rohatinski's successor). If we believed that the HNB's policy was bad, we would have ventured more radical cuts. This was the only possible policy, the HNB does not have a wide range of responsibilities like the government, but its responsibilities and decisions are very important and can have a stabilising as well as a destabilising effect. So maneuvering space is not too big. When we join the EU and introduce the euro, the remit of the central bank and its head will be even smaller."

Asked if the HNB Act should be changed, he said that it should not. "Price stability is and will remain a priority, while economic growth is a job for the government and all those involved in the business sector."

Asked if the new HNB governor should encourage commercial banks to invest more in the private sector, Milanovic said that the HNB could not do more than what it had done so far. The government can't either, and it is the most responsible for it, he added.

He said that the HNB would pursue on the same course. As for possible cooperation with Rohatinski, he said that Rohatinski was "a man with great experience who himself has said that he is going into the private sector to make money. Everyone would like to have such an associate, but I'm not sure if I could offer him any relevant post at the moment."