Addressing a conference called "Introduction to 2005 - Country of the Future," Sanader said Croatia was developing a free market economy, nurtured tolerance and openness to other countries while preserving its independence.
Sanader said Croatia was integrating all minorities into daily politics, was trying to strengthen ecumenism and especially the dialogue between the West and Islam. He added Croatia did and would continue to lead a positive policy towards Bosnia-Herzegovina and other neighbouring countries.
The PM sees Croatia as a bridge between Brussels and Southeast Europe because, he said, it understood the history, language and mentality of the latter better than others. He added that in this respect Croatia could make a great contribution to international peace and stability efforts.
Sanader said Croatia had lived in a multinational community and that its experience could be of great use in building united Europe.
He attended the Graz conference at the invitation of Austrian Chancellor Wolfgang Schuessel. The event, organised by the Austrian People's Party, pooled Austria's leading politicians, foreign guests, business people, representatives of Austria's Roman Catholic and Protestant communities, cultural figures and scientists.
Schuessel said Austria and Croatia shared a strong friendship and bilateral relations.
He said nobody could have imagined that Croatia would become in such a short time a serious candidate for the start of European Union membership talks and a country with European prospects which could create and make peace possible.
Addressing the conference, Schuessel said a clear commitment to "more of Europe" meant sometimes giving up some national aspects.
Sanader thanked Schuessel for Austria's constant and strong support for Croatia's EU integration and the obtaining of the membership talks date. He also thanked former vice chancellor and foreign minister Alois Mock for everything he had done for Croatia.
In his address at the conference, Sanader said small and big states should share equal rights, adding that with their cultures and languages they could only enrich united Europe.
The conference began with a minute of silence in tribute to the Asian tsunami victims and an appeal for solidarity and financial support for the reconstruction of the devastated areas.
After the conference, Sanander said it was important that Croatia's voice was heard during talks on Europe's future.
He said he expected Croatia's EU entry talks to begin on time, Croatia's credibility to be reaffirmed and there to be no obstacles to the start of the talks. He added nobody would question Croatia's awareness of its international commitments.
Asked to comment on President Stjepan Mesic's statement that he deserved the most credit for Croatia's pro-European orientation, Sanader said his cabinet had achieved three objectives -- the avis, candidate status and the entry talks date. He added this was a success of the entire Croatia, including the previous Government, and that everybody knew that he and not Mesic represented the executive authority.