Croatia votes to form new parliament

Rival Croatian parties in battle both expressed confidence of being able to hammer out a coalition government after the narrowest elections in the young country's history.

The rival claims came after the electoral commission revealed inconclusive results showing the ruling Croatian Democratic Union (HDZ) having a wafer-thin lead over the opposition Social Democratic Party (SDP)in yesterday's poll.

According to partial results from the elections, the HDZ won at least 60 seats compared with 57 for the SDP. The parliament can have up to 160 deputies, meaning both sides would have to seek out coalition partners.

"Now the HDZ victory is certain, (but) I will not and I cannot proclaim it before final results are completed. Nothing major can change, the HDZ is winning," said prime minister and HDZ leader Ivo Sanader.

"We are moving to form a government in talks and agreement with all those who believe that Croatia needs a change, that it needs a new, more capable and more honest government," countered SDP party chief Zoran Milanovic.

The premier told HDZ loyalists that he had informed President Stipe Mesic he expected to receive a mandate to form a new government.

EU membership talks

Sunday's legislative elections, Croatia's fifth since it became independent from the former Yugoslavia in 1991, were seen as a contest for who would lead the country to EU membership.

Regardless of the outcome, Croatians are united in their strong belief that their country will soon become the 28th member of the European Union.

"I don't hate the Balkans. We are a part of (the region), but joining the EU will guarantee us stability, notably for our kids," said Marijan Gasparovic, 72, a former guest worker in the West, who voted for HDZ.

"It doesn't matter who leads us to Europe, but it is necessary for them to fulfill that goal. The quicker it's done, the better it will be for our country," said Tomislav Maric, a faithful SDP supporter.

The Adriatic country opened membership talks with the EU in 2005 and is hoping to join the bloc by the end of the decade. It also expects an invitation from NATO in April 2008.

The HDZ was founded by late nationalist president Franjo Tudjman, who led Croatia to independence but was blamed for years of isolation after the country's 1991-1995 war.

However, since 2000 it has reshaped its image as a more mainstream conservative party with a strong pro-European orientation under Mr Sanader's leadership.

The SDP has a fresh-faced leadership team headed by Mr Milanovic, an ambitious former diplomat who took over after the April death of former premier Ivica Racan.

Unburdened by the party's communist legacy, Mr Milanovic has been key to the SDP's rising support ahead of the elections.

But the former top law student -- whom supporters have compared to former British leader Tony Blair -- is not eligible for the post of prime minister, which has been set aside for former economic minister Ljubo Jurcic.