European Parliament congratulates Croatia on progress made towards EU accession

The European Parliament has congratulated Croatia on the progress it has made towards joining the European Union (EU) in a new report assessing the country's accession.

Although the current treaty arrangements mean that further enlargement of the EU is problematic, the parliament states that the legal framework allowing Croatia to enter the union should be in place by the end of 2008, at the latest.

In the meantime, MEPs have outlined a number of areas for Croatia to focus on, including the divestment of fully or partially-owned state companies and the reduction of state subsidies in certain industries to allow the free market to take hold.

The report from the European Parliament explained: "An open, competitive market economy is a fundamental requirement for EU membership."

And despite concern over the "flagging" levels of support for EU accession among the Croatian public, MEPs stated that they are heartened by the fact that the government and its opposition are working closely to extol the benefits of EU membership.

Croatia applied for accession in 2003 and some experts predict that the process should be complete by 2009.

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