Commenting on the inconclusive discussion of the parliamentary committee on the Constitution regarding whether the referendum should be called or not, President Josipovic said in an interview with the commercial Nova TV broadcaster on Monday evening that it was necessary to resume dialogue between the government and the trade union federations.
"As a result (of dialogue), a parliamentary declaration should be adopted unequivocally stating that there is no need now to organise the referendum; that the will of the people will be respected; and, that in the event that the issue of changing the status of duration of collective agreements is again raised, the referendum will be held," Josipovic said.
Assessing that the topic of the referendum has been for too long occupying media space and engaging creative forces in the politics, he said that it was high time the debate ceased.
Warning that it is also high time for reforms in Croatia, the president described the economic situation as "extremely unfavourable".
Salaries and pensions can be retained at this level only through development-oriented economic activities, while we have opposite trends with a considerable decline in foreign and domestic investments, he said adding that the situation would deteriorate if the planned reforms were not carried out.
Reforms can be carried out only under the conditions of the overall social and political stability, the president said.
He proposed non-taxation of reinvested profit, lower interest rates on investments, easing of tax burden etc.
He reiterated that he was not a priori against turning to the International Monetary Fund for help.