Croatian Prime Minister Sanader resigns, stuns nation (Roundup)

Jul 1, 2009, 15:00 GMT

Zagreb - Croatian Prime Minister Ivo Sanader resigned unexpectedly Wednesday, saying he wanted to withdraw from politics after setting his nation on course.

'I decided that I have done my share. It is time for others,' he told a hastily convened press conference. 'Croatia is now the leader in this part of Europe, with all conditions for development and growth.'

Sanader's announcement took not only the opposition, but many of his comrades in the Croatian Democratic Union (HDZ) by surprise.

Sanader, 56, who insisted he was in good health, said he was uninterested in European politics despite 'some offers'. He also dismissed the possibility of running for the president in 2010.

He became prime minister in late 2003 and won re-election in November 2007.

Sanader proposed deputy premier Jadranka Kosor as his successor, hinting that she already has the support of the ruling coalition. After President Stepan Mesic designates her, Kosor would have 30 days to secure the parliament's approval for her cabinet.

While the ruling coalition has the majority to push Kosor through, opposition criticized Sanader's move, pointing out that the country is facing rough times and calling for early elections. The polls are regularly due in late 2011.

Social Democrats leader Zoran Milanovic said his party, the largest in opposition, would ask for early elections as soon as Sanader's resignation is formalized.

The heavily indebted Croatia, owing 55 billion dollars, or some 90 per cent of its gross domestic product, appears headed for major financial problems, particularly since a sharp decline in tourism, its main source of revenue, is expected this summer.

Some analysts estimate that Croatia will within months be forced to ask for a standby credit from the International Monetary Fund to shore up its economy, but would need to cut its spending in order to qualify for it.

Sanader also left in the midst of a border dispute with Slovenia, which has stalled Croatia's accession negotiations with the European Union.

In Brussels, the European Commission praised Sanader's for bringing Croatia closer to the European Union, assuring Zagreb that it is 'well on track' to EU membership and calling for a quick succession to ensure that remaining reforms are implemented swiftly.