EU Enlargement Commissioner Olli Rehn welcomed the breakthrough in the dispute between Slovenia and Croatia that opened the door to Friday's announcement.

"I would say that this is not only a win-win situation for Slovenia and Croatia, it's a win-win-win, because it is also a victory for the European Union if we can unblock the negotiations with Croatia and see that the border dispute is settled," he told reporters.

The resumption of negotiations with Croatia coincides with a referendum in Ireland on the EU's Lisbon Treaty, which is considered essential to further EU enlargement.

The EU and Croatia opened six new chapters - or policy negotiating issues - at a ministerial accession conference in Brussels. All candidate countries must complete 35 chapters to join the EU and Croatia is aiming to conclude negotiations by next July, and finally becoming the 28th member of the EU.

Complex application

Currently the next in line for accession, Croatia is about one third of the way through its application process. The chapters opened on Friday included free movement of capital, agricultural development, justice, and freedom and security, and the EU was expected to rule that Croatia has completed five other chapters which have been held up by the border row.

But Slovenia could yet block progress on three other chapters. The member state is "keeping them tucked under its arm just in case the resolution of the border dispute doesn't go the right way," one senior diplomat said.

The row over a small piece of land and some territorial waters dates back to 1991, when the two proclaimed independence from the former Yugoslavia.

The Slovenian and Croatian foreign ministers, Samuel Zbogar and Gordan Jandrokovic, are set to discuss setting up an arbitration tribunal to oversee final settlement of the border dispute.

"I expect good talks and important steps forward to be made," Jandrokovic told reporters, "We are continuing talks in good faith and I am sure there will be important steps forward."

Cooperating with the war crimes tribunal

Croatia's accession to the EU also depends on agreeing to other conditions. Reports suggest the country still needs to step up its fight against corruption and make its courts and public administration more efficient, which would also help to bring foreign investment.

Another potential sticking point is Croatia's cooperation with the UN war crimes tribunal for former Yugoslavia.

Serge Brammertz, chief prosecutor of the tribunal, flew to Zagreb this week and a senior Croatian government official said he left with few signs of progress on this issue. This area remains the most uncertain as several EU members hold reservations about Zagreb's cooperation so far.

EU Commissioner Rehn said Croatia still faced important work to complete its EU entry, and outstanding issues would be addressed in a progress report to be issued on October 14.

bk/Reuters/AFP
Editor: Andreas Illmer