"Croatia Osiguranje is a market category and this company needs millions of euros in fresh capital," Milanovic said in parliament during Question Time when asked about strategic national interests.

"We know well what is of strategic national interest and what is the market," he said in response to a question from Branko Vuksic of the Labour Party about the fate of Croatian Forests, hydro-electric power plants, Croatian Motorways, and the Croatian Postal Bank.

"Forests and waters should be managed and not sold," Milanovic said. Regarding power production, he said "the system and the transmission should be kept" and that future power plants would be built according to different models.

As for JANAF, Milanovic said it should be "completely state-owned."

Stjepan Milinkovic of the opposition Croatian Democratic Union voiced concern about the government's plans to raise VAT and pension tax, while his party colleague Zeljko Rainer was interested in the imposition of property tax.

"Every country has property tax and Croatia has local rates," Milanovic said, adding that Croatia would have to switch to property tax and decentralisation.

"We are seeing to it that we don't impose any tax that would be prohibitive or lead to the sale of property."

Asked about the situation in Pozega-Slavonia County, the PM said no county would go bankrupt but noted that the present situation was the result of mismanagement.

"We must reform the state administration system and decentralise the country," Milanovic said, adding that he would work with county representatives on finding "a model solution."