Earlier today, Sanader and Kostunica officially opened a renovated border crossing between the two countries from Bajakovo in easternmost Croatia to Batrovci, 120 kilometers west of Belgrade. After the opening ceremony, they headed to the Serbian government building for talks.
"We have a new chance for a new future, although the past most not be forgotten," the Croatian PM told a news conference, adding that the two countries would solve the remaining outstanding problems.
Sanader stressed that a united Europe did not stand a chance without the countries of this region.
Serbia absolutely has a European future, as does Croatia, which is several steps closer to Europe, Sanader said, expressing confidence that Serbia would soon resume its negotiations with the EU and sign a Stabilisation and Association Agreement by the year's end.
Sanader congratulated Kostunica on "the determination to meet European criteria" and on the adoption of an action plan for cooperation with the UN war crimes tribunal in The Hague. He expressed hope Serbia would soon draw closer to Partnership for Peace membership.
Sanader said that both governments made efforts to improve the position of minorities, in line with a signed agreement on minority protection in Croatia and Serbia. He stressed his cabinet wanted to see Serbs integrated with Croatian society.
The Croatian PM stressed some outstanding issues still existed, such as shedding light on the fate of missing people, the return of cultural heritage and the border issue. He added that the Interstate Border Commission would meet in the near future. Borders will not be changed, but border lines must be precisely defined, he said.
Sanader said he advocated the cancellation of the visa regime between the two countries.
Serbian PM Kostunica told the press the two countries had turned a new page in their relations and that this was important for stability in the region.
"Our objective is to have Serbia and Croatia, each country at its own pace, join the family of European countries and peoples," Kostunica said, adding that Serbia and Croatia supported one another on that path. "Each step forward for Croatia is good for Serbia and vice versa," he said.
In his statement for the press, Kostunica particularly focused on Serbia's action plan for cooperation with the ICTY. He stressed that Serbia used Croatia's experiences and that Sanader supported the plan at talks with European Union officials.
According to The Financial Times, Croatia believes experience gained by its security services in bringing fugitive war crimes suspects before the courts could help neighbouring Serbia resolve its dispute with the European Union.
Officials in Zagreb claim that Belgrade turned to them for help in drafting the six-point action plan it presented to the EU this week for catching Ratko Mladic, the Bosnian Serb general accused of organising genocide during the 1990's Yugoslav break-up, The Financial Times reported.
PM Sanader reiterated his government's firm position that there could be no solution for Kosovo without Belgrade and that a solution could not be unilaterally imposed.
Later today, Sanader is also scheduled to meet Serbian President Boris Tadic and representative of Croats in Vojvodina.