The misinformation that Balenovic's application against Croatia was treated in her favour was published on 14 May by two dailies - Vecernji List and Novi List - and the national television network HTV, the Croatian Justice Ministry said in a press release on Monday.
The government representative said that the European Court had made no final ruling in this case, and that the case was just at an initial stage.
The court called on the government and Balenovic to notify it by 8 July this year whether they are interested in reaching a friendly settlement. Negotiations should be confidential at this stage of proceedings.
In case no party expresses an interest in a friendly settlement, the application will further be tackled in compliance with the rules of the court, according to the press release.
Balenovic lodged her application with the European Court of Human Rights asking for compensation for what she considers to be a violation of her human and labour rights during her long-standing court proceedings with INA.