EUROPEAN COMMISSION HEAD PRODI MEETS CROATIA'S RACAN - EXTENDED

BRUSSELS, Feb 14 (Hina) - European Commission (EC) president Romano Prodi on Monday reiterated the European Union was supporting Croatia's newly-elected government in its endeavours to approach the Union. Following today's hour-long meeting with Croatian Premier Ivica Racan in Brussels, Prodi said talks tackled concrete forms of political and economic cooperation the EC would extend in support of the efforts of the Croatian government. The next steps in political cooperation will be the opening of a permanent EC office in Zagreb, and a visit EC commissioner Chris Patten will make to the Croatian capital in March, Prodi said. He added the talks also tackled forms of economic support, and mentioned the possibility of arrangements with the European Bank. Expressing great satisfaction with today's talks, Croatia's newly- elected Premier Racan told reporters he had acquainted Prodi with the programme of Croatia's new government. "We briefed Prodi on the programme, as well as on what we are already doing, its realisation over the past month," said Racan. The programme's starting point is clear, he emphasised. "We will do everything we can to win full membership in the (European) Union as soon as possible." "We know we have a big responsibility. We are willing to be judged by what we do," Croatia's prime minister told Croatian and foreign reporters in Brussels. Asked how Croatia was going to change its image in the world to attract foreign investment, Racan said the new government was aware of the changes it needed to do internally, as well as in view of improving its image abroad. "I think Croatia is no longer a dislikeable country. We will upgrade legal and financial security to become attractive for investment," he said. Racan asserted Croatia's political and financial credibility had increased following recent parliamentary and presidential elections. Interest for foreign investments has also increased, he said, adding, "We will continue doing what is necessary to guarantee stability, profitability, and security for investment." Reporters asked Prodi when the first agreement with Croatia, on stabilisation and association, could be expected. The EC president said his talks with Racan did not discuss dates or deadlines, but concrete forms and steps of constructive cooperation, and in that respect, possibilities of financial assistance and support to the realisation of the government programme. Prodi said he and Racan also discussed how to eliminate obstacles to Croatia's access to the World Trade Organisation. Asked what Zagreb would do in connection with Serb returns to pre- war homes in Croatia, Racan said his government had a very "precise and clear commitment" regarding the issue. We advocate the return of all Croatian citizens, regardless of nationality, he said, adding changes were being prepared for some discriminatory regulations in valid laws. This is happening at a time of financial and economic crisis, but we believe we will be assisted, Racan added. Croatia's premier told the press in Brussels he believes he could meet with Prodi again as early as next month, "to see what we have done in the meantime." "We don't want to stop with the good news from Zagreb. It is our obligation to our citizens," he said. Racan arrived in Brussels on Sunday evening for a two-day visit at the head of a delegation which also includes Croatia's Foreign Minister Tonino Picula and European Integration Minister Ivan Jakovcic. After meeting Prodi, Racan held talks with Guenther Verheugen, EC commissioner for European Union expansion. In the afternoon he is to meet EU's 15 foreign ministers who are attending a regular EU Council of Ministers conference. (hina) ha