The formal transfer of power was held in the Croatian government's office on Friday afternoon after the parliament gave a vote of confidence to the new cabinet led by Zoran Milanovic of the Social Democratic Party (SDP) earlier in the day.
In the government's main building, his predecessor Jadranka Kosor of the Croatian Democratic Union (HDZ) welcomed Milanovic, and the transfer of power was also being held in all ministries.
Kosor delivered to Milanovic a report on the performance of her cabinet and on the situation in the public finances.
Congratulating Milanovic Kosor wished that Milanovic perform his duty with the same zeal as she had done.
Receiving the report Milanovic said that "it is the time to make a turnaround and increase fiscal responsibility in line with law on fiscal responsibility".
"We will have to cut budget spending. and try to retain or even increase revenues .. we will have to cut our coat according to our cloth," Milanovic said at the brief ceremony.
In order to achieve that we will need understanding of a great number of people and we hope that we will get it, Milanovic told reporters.
The new government has a total of 20 ministries. The Milanovic cabinet also has four deputy prime ministers.
On 19 December representatives of the Kukuriku coalition, consisting of the SDP, Croatian People's Party (HNS), the Istrian Democratic Party (IDS) and the Croatian Pensioners' Party (HSU), and HDZ officials agreed on details regarding the transfer of power.
The new government is likely to hold its first session towards the end of the next week, presumably next Thursday.
