Josipovic and Kosor agreed "communication channels" between the government and the President's Office and a meeting at which the government will inform the president of the state of the national budget. The meeting is expected to take place in the near future.

"This was a constructive meeting. We talked about communication channels and coordination in issues in which the president and the PM share powers, primarily defence and national security issues and the foreign policy," Josipovic told reporters after the talks with Kosor.

"We agreed concrete cooperation and, when necessary, direct communication, without go-betweens. We agreed, for example the finance minister and I, to inform President Josipovic of the state of the national budget relatively soon," Kosor told reporters.

We also talked about other strategic decisions, the co-creation of the foreign policy, Croatia's path to the EU and notably about measures aimed at strengthening the economy, Kosor said.

Josipovic stressed that because of the powers they had, the president and premier should cooperate and jointly consider certain issues.

Also agreed was a meeting of teams of experts to discuss the economic situation in the country.

The president and the prime minister declined to comment on media speculations that the president of the Croatia Osiguranje insurance company management board, Hrvoje Vojkovic, would be appointed ambassador to Morocco.

Both Josipovic and Kosor underlined that in appointing ambassadors, a decision jointly made by the president and the government, the expertise and morality of candidates would be taken into account. Kosor briefly said that media headlines were incorrect.

The Kosor-Josipovic meeting lasted an hour.