Croatian President Stjepan Mesic mandated former Deputy Prime Minister Jadranka Kosor today to form a new centre-right coalition government after Prime Minister Ivo Sanader unexpectedly stepped down this week, Reuters reported. If approved by parliament, Kosor's first task will be to enforce a set of deep budget cuts, needed to anchor the public finances at a time of a serious economic downturn, and revive the stalled European Union accession talks. Analysts said the budget revision will be a key test for the new government, but is not likely to differ much from Sanader's cabinet, which had planned it for mid-July or early September. "She has submitted proof that she has a parliamentary majority and, after consulting with all the parties, I have given her the mandate," Mesic said. Kosor, who now has 30 days to get parliamentary approval for her cabinet, has already secured support of the majority of deputies. If she should fail to win parliamentary backing, Mesic would have to call early elections. "I expect the new government to have clear and determined pro-European policies. It must continue implementing reforms, fight against corruption and organised crime, continue full cooperation with the (U.N. war crimes) tribunal, complete the process of returning all refugees," Mesic said. All junior centre-right allies of the ruling conservative Croatian Democratic Union (HDZ) have said they are determined to stay in the government. But they also said they wanted to discuss with Kosor the make-up of the future government, which may take some time. Kosor said her immediate task would be to tackle the budget. "I consider the new budget rebalance as the most important issue at the moment. If necessary, we will call an extraordinary parliamentary session to tackle it," Kosor said after becoming prime minister-designate. Luka Bebic, parliament speaker and one of the leading HDZ officials, said on Friday he expected parliament to approve the new government on Monday. Sanader resigned on Wednesday, without giving reasons, in the middle of his second term and proposed Kosor as his successor. Kosor, 56, has been his deputy ever since he took power in 2003. She was in charge of war veterans and family policy. Kosor, a former journalist, is also expected to be elected the new head of HDZ at a party convention over the weekend, while Sanader is expected to become honorary party president.
