"I don't want to be unpleasant or ironic, but eight months ahead of the elections such a statement makes no sense. The incumbent government must know its priorities," Milanovic told reporters in parliament on Thursday when asked to comment on Kosor's address at a conference on a new model of economic growth in Croatia.

Milanovic said he had sent a similar message a year ago, but received no response. He said the government should have defined its priorities long ago, "but it obviously doesn't know how to do it."

Asked to comment on Kosor's criticism that the SDP was not dealing with concrete problems in the country, but only making promises, Milanovic asked, "Who is the Prime Minister, Mrs Kosor or I?"

He said that the government was responsible for and had at its disposal instruments of governing the country, shaping internal and foreign policies, and proposing and spending the budget.

Asked about yesterday's attack from the ranks of the ruling Croatian Democratic Union against Radimir Cacic, the leader of the SDP's closest partner, the Croatian People's Party (HNS), who was accused of privatisation fraud and against whom an investigation was announced, Milanovic said this was an attempt to divert the attention of the public from the HDZ's problems and corruption scandals.

Commenting on speculation that the government would grant concessions for the management of highways, forests and water resources, Milanovic said the SDP believed that Croatia's natural resources must not be sold, and that one could only discuss the sale of some companies operating according to market conditions or business partnerships.