Popijac underscored that if the work of administration did not improve the bill would not bring anything new and all it would achieve would be to add additional mechanisms leading to a new level of bureaucracy and decision-making.

He added that it was not good to distinguish strategic investments from investments not considered to be strategic or large or small investments as this was discriminatory.

Popijac said that Croatia needed investments at all levels and that it was necessary to do away with red tape for SMEs, as large investors always managed to find a way to get around red tape in any case.

The problem in Croatia is the lack of investments and the anti-business climate he said which will not be solved with the bill.

The Croatian Democratic Union (HDZ) had earlier this week severely criticised the latest bill on Croatia's strategic investment projects because, under the excuse of "cutting red tape", it will allow exploitation of Croatia's natural resources which are the last line of defence of Croatia's sovereignty.

The government's adoption of the bill for the 'privileged' will not solve the question of an inefficient and lethargic administration and will leave thousands of SMEs at the mercy of red tape. The bill is the result of an non-functioning system where nothing functions unless the minister intervenes, said the HDZ.