During the German Presidency, Croatia is expected to open negotiations on several chapters of the EU acquis communautaire and develop a good pace of negotiating talks.
Germany took over the EU Presidency the moment when the Bulgaria and Romania celebrated their accession to the bloc at the stroke of midnight.
The accession of Romania and Bulgaria brings the number of EU nations to 27, with Croatia hoping to join in 2009 or 2010. The western Balkan countries - Serbia, Montenegro, Bosnia, Macedonia and Albania - are lagging behind on the path to EU membership.
A focal point of Germany's Presidency of the EU is to solve the constitutional crisis with a precise calander of measures that are to be takedn. It is expected that the process would be completed by the end of 2008, during France's presidency
A further priority is shaping EU foreign relations. This sphere includes preparing the EU contribution towards a possible status solution for Kosovo, work within the Middle East Quartet, renegotiating a Partnership and Cooperation Agreement with Russia, deepening transatlantic economic relations with the United States, further developing the European Neighbourhood Policy and drawing up a Central Asia Strategy.
On the first day of Germany's Presidency Slovenia adopted Europe's single currency on Monday, crowning its 15-year transition from a republic in socialist Yugoslavia to the continent's most advanced post-communist economy.
Slovenia thus became the euro zone's 13th member, in its first expansion since the currency was introduced in 2002.
None of nine other countries that joined the European Union with Slovenia in 2004 are likely to adopt the euro before 2009.