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Croatia is poised to be the next country to join the EU following the accession of Romania and Bulgaria in 2007 with the former Yougoslav republic scheduled to join as early as 2009.
19 Dec. 2007: Negotiations were opened on two more chapters - trans-European networks, and on financial and budgetary provisions.
17 June 2008: EU opens two new chapters with Croatia - free movement of workers and social policy and employment - bringing the total number of opened chapters to 20 of 35 that have to be closed before accession.
2009: Croatia's expected date of EU entry.
Croatia was part of federal Yugoslavia before and after World War Two. The country declared independence in June 1991. This led to war with the troops from the remainder of Serbian-dominated Yugoslavia and with members of the ethnic Serb community inside Croatia itself.
According to the Commission, Croatia has stable democratic institutions and there are no major problems as regards the rule of law and respect for fundamental rights.
The political preconditions set for Croatia's EU bid have included the return of ethnic Serbs who fled the country during and after the 1991-95 Serbo-Croatian war, reform of the judiciary and full co-operation with the UN war crimes court at The Hague.
In terms of economic issues, Croatia is already considered to have a functioning market economy as advanced and stable as some existing EU member states. The Commission has recognised the country's efforts to achieve "a considerable degree of macroeconomic stability with low inflation".
Pre-accession financial assistance amounted to around €140 million in 2006.
According to the 2007 Commission progress report
, further action is required in the areas of:
Having kept Zagreb in the bay for months over its lack of co-operation with the international war crimes tribunal in The Hague, Carla Del Ponte, the UN's chief prosecutor, delivered a positive report on the country's record and declared on 3 October 2005 that "yes, it is the first time we are saying it's full co-operation".
Enlargement Commissioner Olli Rehn said that Croatia should stay on the course of reform; should speed up the process of refugee returns; and should make every effort to improve the rights of the minorities. He warned that Zagreb could face a suspension of its accession negotiations if it falters in its reforms.