President Ivo Josipovic said in an interview with the national broadcaster HTV on Thursday evening that he was optimistic about 2011 in which he expected completion of Croatia's accession negotiations with the European Union and positive changes in the economy, including investment growth and a stronger social partnership.

Although he declined to assess the performance of the Jadranka Kosor cabinet in 2010, Josipovic said he was dissatisfied with the implementation of measures aimed at economic recovery this year.

He said that in the event of a worsening of the economic crisis he was ready to openly point out possible omissions of the government.

"The neutrality of the President has its boundaries, and of course, I will express my position when I find it necessary," Josipovic said.

He believes that Croatian companies should go anywhere where they can make a profit, including the neighbouring region, the European Union or any other part of the world.

Josipovic described 2010 as a year marked by a difficult economic situation.

He said he was surprised by the scope of corruption scandals that have been rocking the country this year.

He said he could not speculate on when former prime minister Ivo Sanader could be extradited from Austria to Croatia to face allegations of corruption.

Josipovic believes that the ongoing anti-corruption campaign will pave the way for new rules of behaviour of office-holders.

Commenting on Croatia's membership in NATO, the president said his country was well-positioned in the alliance.

Dismissing criticism about insufficient investment in the Croatian armed forces, Josipovic said that it was all about a sensible balance of costs.

He ruled out a possibility for a joint Croatian and Slovenian purchase of airplanes as an unrealistic option, and advocated modernisation of Croatia's Air Force fleet.