The Opposition says the budget needs to be reduced, but they do not want to see that it has been reduced, that we made cuts from material expenses to intellectual services and expense accounts, that we made serious cuts in subsidies, Kosor said after the opening of a conference on electronic administration.

In the new draft budget, the government had to envisage more funds for pensions and maternity allowances, the PM said.

"Let the Opposition point the finger and clearly say by how much they want the pensions to be reduced and then we will discuss their proposal but we will not accept it," Kosor said.

She also said that employers did not harshly criticise the government at yesterday's session of the Economic and Social Council, but that the two were making joint efforts to lead the country out of the crisis, adding that new Economy Minister Djuro Popijac, who came to her cabinet from the Employers' Association, played an important role in that.

By the end of the year we will adopt several other austerity measures that will relieve the burden from the economy, Kosor said, stressing that her cabinet was also working on reducing parafiscal levies and other measures favourable for employers.

The PM voiced confidence there would be better news next year. "I am not saying and I cannot claim that we will overcome the crisis next year, because at this moment nobody can claim that, but we are doing everything we can for this to happen," Kosor said.