The source told Hina on Friday that there would be no early parliamentary elections, and the polls would be held in November 2007 just as Prime Minister Ivo Sanader had announced.
Government and HDZ officials see media speculations about a broad coalition as a manoeuvre of the SDP at a time when that party's partner - the People's Party (HNS) - is conducting a strong campaign against both the HDZ and the SDP.
The source also dismissed media speculations about plans for a government reshuffle, saying that no changes were in the offing.
The government source refuted allegations about the unlawful privatisation of the Suncani Hvar hotel company.
The agreement signed with the Orco Group, which provides for a possible injection of fresh capital in the company, has brought a lot of good to the island of Hvar and the national tourism industry. To corroborate this statement, the source said that two renovated hotels would be open before the start of the next summer season, and shares of the Suncani Hvar company would be listed in the first quotation of the Zagreb Stock Exchange.
The Government is willing to make the agreement public, if the Orco Group agrees to it.
Accusations against Prime Minister Sanader over his expensive wristwatch are groundless as he could not declare the possession of the wristwatch in his declaration of assets given that the law did not regulate the declaration of moveables such as watches, jewellery or fur in the declarations, the same source said.
The opposition Democratic Centre has asked the parliamentary commission dealing with conflict of interest cases whether Prime Minister Ivo Sanader should have reported in his declaration of assets that he possesses valuable wristwatches.