Slovenia still blocking Croatia's progress towards EU
Relations between Croatia and its EU neighbour Slovenia have been almost idyllic since last year's agreement on a mechanism to resolve a maritime border dispute.
The two countries even joined forces to initiate the so-called Brdo process to help the region progress towards EU integration through stepped-up cooperation and exchange. From being a notorious "bad example", Croatia and Slovenia turned into a model much praised by the EU on how to resolve bilateral disputes.
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But not all problems between the two neighbours are over yet, and they are still affecting Croatia's EU accession talks. After negotiating with the European Union for more than five years already, Croatia has entered the final stage of the process, hoping to conclude it in six months time.
All negotiating "chapters" have been opened and there are just ten remaining to be closed. According to EU sources, three could be concluded in an intergovernmental conference between both sides scheduled to take place at the beginning of November. Before the end of the year more could follow and Croatia should go into 2011 with just two or three chapters still open, including the most difficult ones concerning the judiciary and competition.
But Slovenia, according to sources from other members states, is preventing the the chapter on freedom of movement of capitals from being closed, although Croatia has fulfilled all the necessary criteria. The reason is Zagreb's refusal to allow the Slovenian Bank NLB (Nova Ljubljansa Banka) access to the Croatian market.
Croatia's Central Bank argues that NLB, as a successor of the old Ljubljanksa Banka, owes hundreds of millions of euros to Croatian citizens who had savings in this bank during the times of Yugoslavia, the federal state to which both Croatia and Slovenia belonged.
Slovenia, for its part, considers Croatia's position as a breach of the free movement of capitals rule. Other EU Member states believe this to be a purely bilateral issue that should not affect EU accession talks.
A second chapter that Slovenia might put on hold is fisheries. Ljubljana wants to ensure that a protected fishery zone declared by Croatia several years ago will not be implemented after the conclusion of Croatia's EU accession talks.
But this time, both sides seem more relaxed about their disagreements and deny they will grow into a serious burden for bilateral relations.
"The political agreement, reached between the two prime ministers (Jadranka Kosor from Croatia and Borut Pahor of Slovenia) is in place, there is good will by both sides, and we expect the remaining issues to be resolved on expert level," a Croatian government source said.