Josipovic and Milanovic were attending a celebration marking the 22nd anniversary of the Croatian Armed Forces, Croatian Armed Forces Day and Croatian Land Forces Day. In attendance were many commissioned and non-commissioned officers, soldiers, and social and political figures.
The event at Zagreb's Vatroslav Lisinski Concert Hall was hosted by Defence Minister Ante Kotromanovic and the Chief-Of-Staff, Lieutenant Colonel Drago Lovric.
A total of 172 commissioned and 87 non-commissioned officers were promoted.
The president and the prime minister underlined the importance and contribution of the Armed Forces to the development of Croatia and its reputation in the world.
President Josipovic said he was proud to be the commander-in-chief, stressing that when he met with other statesmen, all praised the Croatian army.
He congratulated the troops on everything they had done, not only in the 1991-95 Homeland War but also during transformation into a modern army of a democracy, and highlighted the army's role in emergencies such as fires and floods.
The heroism, courage and patriotism of Croatian soldiers are part of the foundations of present-day Croatia, said Josipovic.
The Homeland War was a crucial moment in Croatian history and without its participants, the heroes of the Homeland War, many of whom are here today, we would not have freedom, democracy, and independent Croatia, he added.
He said the cooperation between the government, parliament and himself as the commander-in-chief was exceptional when it came to the equipment of the Armed Forces.
Even in difficult economic times, the government ensures not only the continuity of equipment but also has plans for a higher level of equipment, and the ongoing education reform will further increase the readiness of the Armed Forces, said Josipovic.
The prime minister said that last year his government did not slash only the Defence Ministry budget. "That was my political decision and not everyone in the government was happy about it," he said, adding that Croatia needed more order and "perhaps it should learn from the army."
Milanovic said the government would continue to push for investment in the military, notably in the Navy. "We need new boats, preferably from our shipyards."
"One can't economise on defence. My government will invest in the military as much as it can, aware that (the military) is the state, aware that the military is the defender of freedom," Milanovic said, stressing that the military was also the defender of constitutional values such as libertarianism, openness and tolerance.
"No one's freedom must be protected in a way that restricts someone else's freedom," he stressed.
Recalling the Homeland War in which the Croatian military was created and today's NATO membership and participation in peace operations, the prime minister said Croatian soldiers had huge experience and that they were the military of a democracy that was joining the European Union, where strict rules applied "that we will have to get used to."
Milanovic said everyone must work together to make Croatia a state that would not go from crisis to crisis but a state in which people could live well.