Deputy Prime Minister and Croatian People's Party (HNS) vice president Vesna Pusic said on Monday the HNS was at present against the adoption of a real estate tax law because it would be harmful for the investment climate in Croatia, but dismissed speculation about a government crisis and that the HNS might leave the ruling coalition.
At a time when it is important to create a positive investment climate, this law would deprive local self governments of direct revenue, Pusic told reporters.
She said she had discussed the matter extensively with PM Zoran Milanovic and they concluded that "it is necessary to talk more," as "he is not positive that (this tax) is the best idea."
Asked if HNS president Radimir Cacic was behind the disagreements over the real estate tax, although he resigned from the government, Pusic said this issue should not be turned into a drama.
"The HNS is the key coalition partner of (Milanovic's Social Democrats) SDP. That's very important, a strategic issue and this should be talked about... Everything else is much less important."
Asked if the HNS would leave the ruling coalition, Pusic said "it's absurd to even make that argument" and that "the coalition functions in such a way that its members must reach agreement."
"This is no drama or crisis but a matter of rational decision-making... Our suggestion is that this law should not be passed now," Pusic said
