The Ivo Sanader cabinet on Thursday decided to send the motion to parliament for adoption.
"This Government and this (Croatian Democratic Union) party are in favour of the direct election system enabling citizens to directly elect municipal heads, city mayors and county prefects," Prime Minister Ivo Sanader told a government session on Thursday.
The premier said that the bill was just one of the first elements with which his cabinet would like to start implementing decentralisation.
We are preparing amendments which will enable fiscal decentralisation, Sanader said, adding that the government would soon propose amendments to the Local Self-Government Law and other supporting laws.
The scope of activities and responsibilities of future heads of municipalities, towns, cities and counties will be adjusted to European Union standards, the State Secretary of te Central State Office, Antun Palaric, said on this occasion.
Under the bill, the heads of local units of government will be elected if a majority of voters who cast ballots vote for them. If none of the candidates succeeds in winning the required majority, the two top candidates will run in the second round of the elections.
Under the bill, the head of a local unit of authority, who will be elected for a four-year term, can be dismissed by the Croatian Government before the expiry of his or her mandate if the local assembly insists on his or her dismissal in line with planned amendments to the Local Self-Government Law.
According to Palaric, this matter is is being mulled with experts of the Venice Commission.
The government also moved into parliamentary procedure a bill providing for the establishment of a permanent seven-member State Election Commission (DIP). All members of the commission must be experienced jurists and cannot be members of any political party.