Croatia's problem is not centralisation, but bad centralisation and corruption, President Zoran Milanovic said on Saturday at a session of the Stari Mikanovci Municipal Council.

Congratulating the residents on their Municipality Day, the president reiterated that he is not for abolishing municipalities, saying that most towns and municipalities work well and to the benefit of their residents.

Milanovic said there was corruption, “but that’s no reason for abolishing them because the benefits outweigh the faults.”

The current system of municipalities is viable and not bad, he added.

The president also supported the current system of counties. As for the establishment of regions, he called for caution, saying that centralisation is necessary in many segments.

The system is such that one cannot spend more than 18% of the budget on salaries, Milanovic said, adding that this means “that you can’t hire as much as you’d like. Unfortunately, you’ll have to favour someone and someone will feel shortchanged and disgruntled, but the system works and I wouldn’t attribute it to any political group.”

The president urged the Mikanovci municipal authorities to utilise every euro from the EU funds.

“That’s the main point of EU membership, not the common foreign policy, the common wars and conflicts with third, fourth or fifth countries. Our interest is to use that to develop better and safeguard what is ours. Whoever thinks that in 20, 30 or 50 years we’ll have a united Europe as a federal state is not only wrong, but I don’t want that. I don’t want us all to be the same, just as I don’t want Slavonia to be the same as Dalmatia.”

The president said that last year he was criticised by some for attending a local festival in eastern Croatia region instead of meeting with a US foreign policy representative.

“I assessed that Becar Fest was more important to me. Perhaps tomorrow the American foreign policy will be more important, but I dread that moment because it will mean that things in the world are even worse. But until that moment comes, Becar Fest has precedence,” he added and received an applause.