Peace and stability in southeast Europe are possible provided that all countries in the region have European prospects, and Croatia sets a model and serves as support to them, Croatian President Ivo Josipovic and the visiting German Chancellor Angela Merkel said after their meeting in Zagreb on Monday.

It is our strong belief that peace and stability in the Western Balkans will be maintained only if there are joint European prospects, Merkel said at a news conference she held together with Josipovic.

Congratulating Croatia on its success on the road towards EU membership, Merkel said that Croatia could be a model to its neighbours.

Croatia is soon to become an EU member, she said, adding that Germany is looking forward to welcoming Croatia as the 28th EU member.

The two officials described the integration of southeastern Europe into European institutions as a joint strategic project, and emphasised that each country must carry out reforms on its own.

"Good relations in the region and the region's European future are our strategic goals. Europe will not be complete without all countries of the region," Josipovic said.

He said that he and Merkel discussed how Croatia could contribute to the progress of its neighbours and pledged Croatia's support in that regard.

We want it to be a joint project of assistance to the countries in the region, the German chancellor said, thanking Josipovic for his engagement in promoting good neighbourly relations among countries in the region.

Josipovic described Croatian-German relations as excellent and Merkel described them as really good.

The German chancellor wraps up her day-long visit to Zagreb with a dinner which her host, Prime Minister Jadranka Kosor, is giving in her honour later in the evening.