"Our cooperation continues, but this doesn't mean there are no problems. There are problems on the ground but they are not such that they could cloud the good results," Sanader said at a Government session.
Pupovac recently said there were more cases in which the Government was purchasing property than there were of it returning property to returnees, which he labelled the resumption of the ethnic cleansing policy but by other means.
Sanader said Pupovac's statements represented an unnecessary politicisation of the return issue, announcing he would meet representatives of the Serb minority next week.
The PM reiterated ownership was a constitutional category and that all property would be returned to owners.