Kunst said at a news conference that Croatia could be declared a crisis area in terms of living standards and that the union had expected the new government to act faster in proposing concrete solutions to the economic situation in the country.
"Electoral promises are fading away, the standard of living is decreasing, living costs are high and the trust of social partners is slowly ebbing away," Kunst said, adding that the currently lowest salary of 1,550 kuna covered only 20 percent of living costs.
URSH leader believes that this situation had been generated by an increase in oil prices, which since the start of this year have risen 17 percent on average.
Commenting on the announced tax reform, Kunst said the URSH suggested that the government increase the untaxable amount of the monthly salary from 1,500 to 1,750 kuna and reduce the lower income tax limit from 15 to 5 percent.