Sasmatzoglou made the statement in an interview published in the Monday edition of the Mostar-based newspaper "Dnevni list", in which he explained the EPP's decision to freeze the observer status of the HDZ BiH in this strongest, centre-right group in the European Parliament.
The decision prompted contradictory reactions within the strongest Bosnian Croat party. Covic's followers insisted that the EPP's decision was not conditional on their leader's resignation, while opponents, gathered around Bozo Ljubic, a challenger for the post of party president, claimed the opposite.
Sasmatzoglou also said that the EPP might lift its embargo if the Bosnian Supreme Court acquitted Covic of charges of official wrongdoing.
Covic is charged with abuse of office for making it possible for Siroki Brijeg-based meat producer "Lijanovici" to evade paying taxes on meat imports.