"Croatia understands that the EU wants political stability and lasting peace in our Southeast European neighbourhood," the PM said after meeting NATO Secretary-General Jaap de Hoop Scheffer in Brussels.
"This is the actual proposal, and not the establishment of a new Yugoslavia, which nobody is considering nor would we allow it," Sanader said.
He went on to say that CEFTA should not cease to exist. The Central European Free Trade Agreement used to include the ten countries which in May 2004 joined the EU. After their admission, CEFTA was left with Bulgaria, Romania and Croatia as members. If Bulgaria and Romania join the European bloc in 2007, Croatia will remain the only CEFTA member.
Sanader said that in August last year he was aware that the European Commission was preparing a proposal on a free trade zone, which prompted him to suggest that CEFTA make its membership criteria less strict so that all Southeast European countries could join it.
Under his proposal, the enlarged CEFTA would cover all Southeast European countries plus Moldova, and CEFTA membership would no longer require membership of the World Trade Organisation, as is the case at present.