"We don't understand in whose interest yesterday's decision was taken," the GZS said in a press release on Thursday, adding that the extension would be an "own goal for the Slovenian economy".

The chamber noted that it had been presenting in the last few months to the government the need to lift the restrictions, as staff shortage is a serious problem for the economy.

The GZS believes that, if confirmed in parliament, the decision would further destabilise Slovenia's labour market in the next two years.

"We are and we will be increasingly dependent on employing foreigners is we want to maintain economic growth and development," the chamber says, adding that the measure especially affected companies along the border.

The GZS wants the government to withdraw the "disputable and detrimental" decision or the parliament to reject it. "The economy must not be a hostage of international frictions," it added.

Slovenia must notify the European Commission about the move by the end of June, which marks five years since Croatia's accession to the EU.

The government said that the objective was to limit the hiring of Croatian workers depending on the needs of the Slovenian labour market. This would ensure labour market stability for the next two years, it added.

The government noted that employers can already hire Croatian workers such as welders, lorry drivers, toolmakers and lathe operators, because there is shortage of these workers on the labour market.

Apart from Slovenia and Austria, restrictions have been in place in Malta, the Netherlands and the UK. The latter has announced that it would lift the ban on 1 July.