The government's economic platform should include the necessary amount of social sensitiveness, Mesic said at a government session on Thursday.
This was the first time for Mesic to attend a government session since the Sanader cabinet started its term, although the head of state had announced this possibility several times.
Mesic called on the government to introduce transparent, well-prepared, responsible, concrete and long-term taxes, adding that the time of taxes with short-term effects was over.
Speaking of the situation in the economy, Mesic said that the number of the jobless was not being reduced, that there was a relatively small number of rich or extremely rich people, that production was still below the pre-war results and that the external debt's share in Gross Domestic Product was 83 percent. Therefore, there is no room for satisfaction, he added.
Prime Minister Ivo Sanader said that the government's economic strategy would be completed before spring, and added that his cabinet wanted to base its economic policy on true partnership between the state, employers and employees.
Sanader reiterated that the government would have to incorporate the grey economy in GDP, which he said would lead to a fall of the external debt's share in GDP from 83 percent to 70 percent.
Mesic reiterated that Croatia had made a great step forward on the road towards European Union membership. In this context, he suggested that during membership talks with the European bloc, Croatia should find ways to protect its crucial national interests, notably in the agriculture and the real estate market.
Prime Minister Sanader also emphasised the importance of the start of EU entry talks.
This was a clear and strong signal both to Croatian business people and foreign investors, proving that Croatia is a safe and stable country, Sanader said.
Mesic called on the government to improve its communication with citizens during the accession talks and pointed to the importance of the use of pre-accession funds, adding that the successful use of the funds meant the successful implementation of reforms.
Government members, President Mesic and Croatian National Bank Governor Zeljko Rohatinski, who also attended the session, agreed that the Sanader cabinet should commission from a respectable institution a scale of costs and advantages of Croatia's EU integration.
Mesic expressed satisfaction with Croatia's success in restoring its credibility in the international community.
In this context he said that political commitments must not be jeopardised by short-term internal political wrangling, referring to Croatia's relations with Serbia-Montenegro and with the International Criminal Tribunal for the former Yugoslavia (ICTY) in The Hague.
In The Hague neither Croats, nor Serbs nor Bosniaks are put on trial. Neither generals nor politicians are put on trial but war crimes suspects and indictees, Mesic said.
"Among them, and now I am talking about those from Croatia, there are those who undoubtedly should be given credit for defending the country and nobody will deny their rights. But if it is proved that they are accountable for war crimes, they will answer for that," Mesic said.