. Croatian Democratic Union (HDZ) president and Prime Minister Jadranka Kosor on Friday received the secretary-general of the European People's Party (EPP), Antonio Lopez-Isturiz, and both said it would not be wise to hold early elections in Croatia.

I would recommend to socialist parties that it would not be smart to ask for early elections as the People's Party holds the majority in European institutions for the next five years, Lopez-Isturiz said, voicing confidence that Croatian citizens, too, would understand this equation.

He commended the Croatian government for the reforms and the fight against corruption, saying the EPP strongly supported Croatia's accession to the European Union and voicing confidence that this would occur under the HDZ's leadership.

Kosor dismissed interpretations that yesterday's announcement that a rate of the tax on all incomes would be rescinded meant that the HDZ was preparing for early polls.

"2011 is the election year and, as far as the HDZ and the (ruling) coalition are concerned, so it will be," she stressed.

Kosor reiterated that early elections would halt processes in the completion of EU entry negotiations, and that this was the main reason for the HDZ's objection to early elections.

"We don't understand those in Croatia who want that and are trying to push Croatia into that," Kosor said, reiterating that the completion of the accession negotiations at the end of this year and the signing of an accession treaty early in 2011 was "the goal of goals".

She recalled that she had announced on a number of occasions that one rate of the so-called crisis tax would be rescinded, which she said showed that the government had a programme and a plan to boost the economy and overcome the crisis.

Kosor dismissed claims from the opposition Social Democrats that this was a random reaction, saying "the reaction was planned and announced on several occasions".

She would not comment on claims that the European Commission had been promised that state-owned shipyards would go into receivership if the second round of their privatisation failed. "I can't and won't comment on that while consultations with the EC are under way."

She recalled that the government had invited bids for the ongoing privatisation. "Our people, primarily those from the Economy Ministry, are doing their utmost to explain to potential buyers worldwide what the possibilities are and we believe this process will success. If it doesn't, the government has to be ready for that as well," she said.