Members of the Croatian parliament suggested minor changes to the proposal and the bill is to be elaborated for second parliamentary reading.
During a parliamentary debate on the draft amendments, MPs agreed that the proposal was yet another step in the reform of the military.
Suspension of compulsory military service can be expected as of 2008.
In case of serious security threats, the President of the Republic can decide on reintroducing compulsory military service. Such a decision, countersigned by the Prime Minister, will be submitted to the parliament to okay it, according to the government-sponsored bill.
MPs wrapped up Wednesday's sitting with a debate on draft amendments to the law regulating the system of the state administration.
MPs also discussed a decision on the engagement of Croatian Army members in United Nations missions.
Speaking on behalf of the government, that moved the decision, Defence Minister Berislav Roncevic said the deployment of Croatians in UN missions was congruous with Croatia's strategic orientation to be treated as a responsible member of the international community that is willing to take over its part of the burden of general security.
Currently, 36 Croatian Army members are deployed in nine peace missions - Ethiopia and Eritrea (UNMEE), India and Pakistan (UNMOGIP), Western Sahara (MINURSO), Liberia (UNMIL), Haiti (MINUSTAH), Côte d"Ivoire (UNOCI), Cyprus (UNFICYP), Georgia (UNOMIG), and in Sudan (UNMIS).