"Today we are opening the future of new relations between our two countries," Sanader said at the ceremony.
"We cannot forget the past, but we can learn and build a new future, he said.
"Serbian and Croatian governments will work to heal wounds from the past and build a new future for the two states in a united Europe," Kostunica said the opening of the border crossing. He added that both countries opted for joining the European family of countries and peopled and that Croatia and Serbia shared a belief in a united Europe.
The Serbian PM said the two governments had made great progress in promoting cooperation.
European Commission representative in Croatia Vincent Degert expressed satisfaction with the fact that a border-line which in the past represented a cause of disagreement now became a meeting place.
Reconstruction and upgrading of the Bajakovo border crossing is part of the project 'Integrated Border Management' (IBM) whose aim is modernisation of border crossings in order to improve movement of people, goods and services, the European Commission said in a statement.
Parts of the work has been financed by the European Union funds through the CARDS 2004 programme, namely five million euros have been ensured by Brussels for the main building, veterinary and phytosanitary facilities and for the inspection of trucks.
The rest of the works, including the reconstruction of traffic areas, infrastructure and other needed facilities was covered by the Croatian Government which gave 5.7 million euros of budgetary funds for this purpose.
At today's ceremony Degert announced a new project, worth EUR500,000, for the development of cooperation between Croatian and Serbian local bodies.
The ceremony was also attended by Vukovar Srijem County Prefect Bozo Galic, Serbian Minister for Economic Relations with Abroad Milan Tarivodic, Croatian Finance Minister Ivan Suker, Serbian Capital Investments Minister Velimir Ilic, representatives of the tho governments and the diplomatic corps in Zagreb and Belgrade.
By attending the opening ceremony, Sanader started his official one-day visit to Serbia, during which he is scheduled to hold talks with Kostunica and meet representatives of Croats from Vojvodina.