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1 1 (January 6, 2004)

handle is hein.crs/crsaijq0001 and id is 1 raw text is: Order Code RS21703
January 6, 2004

Croatia: 2003 Elections and New Government
Julie Kim
Specialist in International Relations
Foreign Affairs, Defense, and Trade Division

Summary

In parliamentary elections held on November 23, 2003, the Croatian Democratic
Union (HDZ), a right-wing party of the late former wartime President Franjo Tudjman,
won a plurality of the vote. The HDZ had dominated Croatia's political scene from 1990
until its defeat in the 2000 elections. Ivo Sanader, who succeeded Tudjman as HDZ
party leader and refashioned the party along more moderate, less nationalistic lines,
became Prime Minister of a minority government in December 2003. The Sanader
government will likely face significant domestic challenges as well as close international
scrutiny over its performance in a number of issue areas. This report analyzes the
elections and key issues facing the new government. It will not be updated. For
additional information, see also CRS Report RL32136, Future of the Balkans and U.S.
Policy Concerns.
Introduction
The November 2003 elections were Croatia's fourth parliamentary contest since the
country became independent in 1991. In the last vote of January 2000, a coalition of
center-left parties soundly defeated the incumbent Croatian Democratic Union (HDZ)
government, weeks after the death of Franjo Tudjman, the longstanding leader of the HDZ
and President of the country.
To supporters, Tudjman represented the father of Croatian independence. To critics,
however, Tudjman closely resembled nationalist Serb leader Slobodan Milosevic and
demonstrated similar territorial designs on neighboring Bosnia. In 1995, Croatia launched
two military operations, Flash and Storm, to regain control over the Krajina, Croat
territory held by rebel Serbs after 1991. The attacks drove out much of the local Serb
population from Croatia and tipped the balance of forces in Bosnia against Milosevic and
the Bosnian Serbs. Tudjman was a signatory to and guarantor of the 1995 Dayton peace
agreement that ended the war in Bosnia. However, he and other HDZ leaders came under
frequent international criticism for nationalist policies, authoritarian leadership, and overt
support for ethnic Croat separatists in Bosnia. Domestically, the HDZ's popularity
eventually declined as the economy deteriorated and as HDZ officials became tainted by
corruption scandals. The 2000 parliamentary and presidential votes brought in a new set

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