Addressing members of trade unions and citizens gathered in the park, Mesic said that some of the capital stolen in the process of privatisation could be returned by imposing taxes on capital gain and large inheritances.
"Those who claim that taxes should not be introduced for capital gain are people who got hold of other people's capital in different ways," said Mesic, who thus supported one of the proposals in the economic platform of Ljubo Jurcic, an economic expert of the Social Democratic Party (SDP).
Deputy PM Damir Polancec told reporters that introducing capital gain tax would not give any result.
Jurcic's economic platform lacks an answer to the question of how the platform will be financed, Polancec said, adding that capital gain tax was certainly not the answer to that question.
"We want to make Croatia's capital market the strongest capital market in this part of Europe. If the government manages to do it, it will encourage the expansion of Croatia's economy to the entire region," Polancec said.
Commenting on trade unions' request for a new pension reform, Polancec said the government was doing its best to find funds to harmonise the pensions of workers who were retired before 1990 and those sent into retirement after 1990.
The slogan of this year's May Day celebration was "We seek reform of the pension reform because we cannot accept poverty in the old age". Trade union leaders who addressed the gathering opposed privileged pensions and called for pension allowances ensuring dignified living.
The leader of the Federation of Independent Trade Unions of Croatia (SSSH), Ana Knezevic, recalled that more than 75 percent of pensioners were receiving pension allowances amounting to less than 1,800 kuna (approx. EUR 244).
Tens of thousands of people attended the May Day celebration. Around 20,000 beans meals were distributed during the event which was financed by the Zagreb city government.