Undeclared work is a big issue in Croatia and it is up to this government to reduce it as much as possible, after which things will be more transparent and the actual number of the jobless can be established, the minister told the press.

Asked if Croatian Employment Service (HZZ) records would be combed, Mrsic said there would be changes, including to statistics so as to establish who was really unemployed and who registered with the HZZ only for benefits.

Mrsic said the budget for this year would include funds for categories which were more difficult to employ, such as young people, and that legislative amendments were being drawn up regarding the employment of the disabled.

Asked to comment on announcements that pensions would be indexed to salary growth, the minister recalled that the previous government had frozen the indexing of pensions to the growth of salaries and costs of living.

He said the incumbent government would index pensions and that pensioners would receive the money due for January and February in March, but added that it was difficult to say how much pensions would grow before the relevant statistical data was published.

Mrsic reiterated that the second pension pillar would not be revoked but strengthened, saying it was the driving force of economic activity in Croatia.

Asked to comment on privileged pensions of MPs, he said a bill had been drawn up so that MPs retired under the general pension law, without privileges.