Posedi of the Pergam trade union association said the government insisted on a 5% cut in the public sector wage bill, a move that the unions oppose.

"That is why the public sector unions will begin activities to organise a general strike in the public sector," Posedi said, adding that more information would be known within a weeks time.

KSJS public sector union confederation boss Branimir Štrukelj added that the government's refusal to negotiate on the amount of cuts means that the government "decided to open a conflict with 161,000 public servants".

He stressed that there were "no more" social dialogue as of today, adding that the public sector would begin preparing for a general strike.