Mesic said after the meeting he and Tadic "have agreed the situation in the relations between the two countries has improved considerably in recent years, and that both countries have turned to strategic goals, namely European integration, which means also to European standards".
Both presidents agreed the southern border peninsula of Prevlaka was no longer an issue since the signing of a temporary agreement, and concluded the Prevlaka issue would be finally settled with the two countries' admission to the European Union.
Tadic said he and Mesic agreed to support every joint project, in the economy, culture as well as sports, and to launch joint projects involving Croatian and Serbian companies, thus improving political relations.
Tadic said "we must insist on the mutual restitution of property and the return of the displaced so that the minorities in the two countries could be a bridge of cooperation".
He added Serbia and Croatia should also cooperate in reviving the formerly common and compatible industry, including the military industry.
The Serbian President went on to say the two countries could also cooperate in defence given that both had committed to combating terror.
Commenting on a recent incident in the eastern Croatian town of Vukovar, where a Serb young man threw a hand grenade in front of the offices of the local Party of Rights branch, lightly injuring two persons, both Mesic and Tadic said such incidents should not be treated as inter-ethnic conflicts.
Mesic said effort should be invested in connecting and not separating people, adding that not every incident should be interpreted as ethnically motivated.
Tadic said that every inter-ethnic conflict was highly charged and that political structures in Croatia and Serbia were responsible for this.
"I think the time of such incidents is behind us, and if it isn't, then it's a sign that we don't understand the time we live in," said Tadic.