"The number of pensioners and unemployed people is nearly the same as that of those employed, and such a situation does not exist in any socially sensitive EU country," Mesic said in a Croatian Radio programme on Monday.
"We must declare war on poverty and unemployment and create a framework for employment opportunities and invest in job creation. It is easy to sell a stake in (national oil company) INA," the president said.
Asked if he was satisfied with the amount of money to be allocated to his office, Mesic said that the amount was realistic.
Commenting on his reported agreement with Sanader on a new law on security services, Mesic said that they had discussed the work of the security services and concluded that it would be better if there existed a civil and a military intelligence service in order to avoid overlapping.
"I believe we do not need too large an intelligence service and we should keep it to a reasonable size," he said.
Asked to comment on a proposal to amend the Criminal Code, under which defamation in the media and some other occupations would no longer be treated as a criminal offence and subject to a prison sentence but only to a fine, Mesic said: "A fine can also be a heavy punishment for some newspapers and can force them into bankruptcy. I think it should be enough for an offended party to bring legal action and ask for one kuna in damages."