Croatian Prime Minister Jadranka Kosor said on Thursday she hoped that at a meeting on Friday the agriculture minister and farmers' associations would agree on a model of helping farmers by giving them compensation in the form of production materials, adding that the budget would not be increased.

"We can't increase the budget, there is a limited amount of money, and we will look into ways of ensuring additional support (for farmers) by giving them compensation for one part (of the incentives), and I am certain we will agree on it tomorrow," Kosor said at the beginning of a government session at which she also commented on the ongoing farmers' protests.

The protesting farmers insist on the payment of HRK 205 million in late incentives and the rescinding of a 40-percent cut on subsidies.

Kosor was hopeful that the model of supporting farmers by giving them compensation in the form of production materials up to the amount of incentives they were speaking about would be determined at tomorrow's meeting between Agriculture Minister Petar Cobankovic and farmers' representatives.

She called for dialogue, adding that "only dialogue can lead to a solution", hopeful that farmers or at least most of them would accept the already discussed models.

"We will not increase the budget. If and when there is a budget revision, it will only mean additional cuts. Increasing the budget is definitely out of the question," she said.

The PM also commented on some members of "the political elite who are visiting the protesting farmers in the rain, promising them the sun and the moon", adding that they should not be telling untruths and misleading the protesters.

"Those who are offering to buy (the farmers) fuel so that they can travel to Zagreb, are misleading them, because there is no road leading to an additional 600-700 million or a billion kuna," she said.

Warning that the country was facing difficult decisions, the PM also called on employers and trade unions to join in "a true social dialogue".

"We won't overcome the crisis if the government is urged to make cuts, but to spare those who at that moment are in the focus of attention," Kosor said, adding that even though it bore the brunt of responsibility, the government could not be the only one responsible for the current situation in the country.

Recalling that the fight against corruption was one of the government's priorities, Kosor expressed full support for all state institutions involved in the anti-corruption drive.

"No one should be afraid of any threats," she said.