He said those crimes were being prosecuted, although "not at the pace that would satisfy us".
"(Storm)... was carried out according to all rules of war and international conventions. But crimes occur in every war, and our side also committed crimes in that defensive war. Some claimed that, because we were defending ourselves, the Croatian side could not commit a crime, but people commit crimes in every war, and those who committed them should be prosecuted," said Mesic.
He added that a people could not be guilty of the crimes, "but individuals or groups which abused their positions".
Speaking of fugitive general Ante Gotovina, who is wanted by the Hague war crimes tribunal, President Mesic said all checks indicated that he was not in Croatia.
Regarding the opinion of some that the Croatian society is not ready to face the crimes that were committed, he said, "I think they are wrong. Croatia is ready to face the truth today, to face what happened in Croatia. Our judiciary will do its job regardless who is in question".
Mesic said the return of refugees was a national interest and that there were a number of reasons why some young refugees did not wish to return. He added that some were on the side of the Serb rebellion "one way or another" or they took part in crimes or saw others commit them. "Some are afraid because, although they didn't commit crimes, they wore uniforms."
"It's correct that there are many people who haven't returned. They should return because Croatia is rebuilding houses for everyone, regardless of their nationality. And I claim, and this is our state interest, that people are returning to their homeland, which proves that Croatia is a safe country... and a democratic country."
Mesic said refugees were "the victims of a scam" and that Serbia had not done enough to reach catharsis and realise that ex-president Slobodan "Milosevic was fooling the world because he claimed he was fighting for Yugoslavia, when in fact he was destroying it with all means".
"On the other hand, he fooled Serbs, claiming they would all live in one state and that they should just pick up weapons. He gave them the weapons though the JNA (former Yugoslav army). His message to Serbs in Croatia and Bosnia was, 'What is being held with weapons will tomorrow be Serbia'," said Mesic.
He added that no crimes would have been committed after Operation Storm if Croatian Serbs had not listened to the leaders of the Krajina self-styled statelet within Croatia.
"It had all been prepared to force the international community with that big mass to say, 'You see? All Serbs are withdrawing, so we'll intervene now and Krajina will stay.' That was another wrong estimate on Milosevic's part," said Mesic.
He added the Serbs who were returning to Croatia should be provided security, given their property back and make sure the system functioned, and not exaggerate the occasional excesses.
Mesic said there was no need to adopt a declaration on Operation Storm in Croatia, but prosecute and punish those who committed crimes. "That's the best declaration," he said.
"We must create the will, notably political will, which exists, that all be prosecuted, regardless of which office an individual held then or holds now."
The Mesic interview, which Radio B92 broadcast this morning, will be aired by Television B92 tonight as part of a special show dedicated to the tenth anniversary of Operation Storm.