Croatian President Ivo Josipovic and his Montenegrin counterpart Filip Vujanovic said after an hour-long meeting in Zagreb on Monday that relations between the two countries were very good and could serve as a model to other countries in the region.

"Relations between Montenegro and Croatia are very good, I would say exemplary, considering what they were like in the 1990s," Josipovic said. Vujanovic concurred, saying that their relations were "an example that should be followed by the region."

"We must continue to encourage mutual cooperation and stability," Vujanovic said.

The Montenegrin president again congratulated Croatia on completing accession negotiations with the European Union, adding that its forthcoming entry would benefit his country and the region.

"It's a success not just for Croatia but also for the region and for Montenegro as its neighbour, because it is certain that Croatia will strongly promote Montenegro's strategic interests," Vujanovic said.

Josipovic confirmed that Zagreb would provide strong support to Montenegro in the EU and NATO integration processes.

"It is in our interest that Montenegro and all other countries in the region enter the EU," Josipovic said, expressing hope that at NATO's next summit in Chicago Podgorica would be extended an invitation to join the alliance.

Vujanovic and Josipovic commented on a meeting of the Igman Initiative which is due to take place in Belgrade on Friday. Vujanovic said that he expected the conference to have "positive effects".

"It will be an opportunity for us to encourage the formation of government in Bosnia and Herzegovina, and to send out a message that Serbia, Croatia and Montenegro support a single Bosnia and Herzegovina and respect its three constituent peoples," Vujanovic said.

Josipovic said he saw the Belgrade meeting as an initiative for democratic development and that he did not expect talks on bilateral issues.

When asked about the currently strained relations between Croatia and Serbia, Josipovic said he expected the issue of jurisdiction and legal standards for war crimes prosecution to be resolved by an international treaty.

The two presidents also discussed closer economic ties and the status of the ethnic minorities in their respective countries.

On Tuesday, the second day of his official visit, Vujanovic is scheduled to meet Parliament Speaker Luka Bebic and Prime Minister Jadranka Kosor.

The Croatian government must reach a decision on VAT until the end of June 2012, daily 24 Sata writes.