"I doubt that Chancellor Merkel and her associates know what we are talking about. Elections are being held in Germany and enlargement in Germany is not that popular. To attend such a gathering three months prior to the election is not a plus but a minus and that's the only reason I see", Milanovic told reporters upon arriving in Brussels to attend a European Union summit, which began on Thursday.

"I think that she doesn't deal with this and that she doesn't even know of it. We like to see things from our perspective but I sincerely doubt that everything we talk about here even makes it to Berlin", Milanovic added in response to questions by reporters whether Merkel's cancellation was related to proposed amendments to the EAW aimed at introducing the provision that extraditions would not apply to crimes committed after 7 August 2002.

Milanovic reiterated that he would propose an amendment to the Constitution which would abolish a statute of limitations on politically motivated assassinations and that it depended only on the Croatian Democratic Union (HDZ) whether the amendment would be adopted.

He underscored that it was necessary to investigate why and whether indeed in the case of Josip Perkovic - a former Yugoslav secret intelligence agent whose extradition Germany has requested - a statute of limitations has entered into effect.

The report I received from the state prosecution is only partially satisfactory. All it says is that something had been done. Let's see what was done, he said.

Milanovic added that the time frame of 2002 was not that important in this case and extradition would not be possible for a number of other reasons and as a statute of limitations has already come about.

Members of the European parliamentary Civil Liberties, Justice and Home Affairs Committee from the European People's Party ranks on Thursday expressed their concern over the time frame that Croatia intended to introduce to the law on the EAW and asked that the PM secures that the law be aligned to European regulations.

"Attempts to secure immunity for Croatian citizens against criminal prosecution in EU member states only a few days before accession to the EU on July 1 is exceptionally important and must be stopped. Cooperation at a high level concerning criminal matters between member states is of huge importance to combat cross-border crime, EPP MEPs said in press release. They urged for full judicial cooperation with the German judiciary and the judiciaries of other member states for all crimes committed prior to and after 7 August 2002.

Earlier today, First Deputy Prime Minister and Foreign and European Affairs Minister Vesna Pusic said that the reason that Chancellor Merkel was not attending the celebrations marking Croatia's entry to the EU was not political and that the Minister for Europe was coming instead.

"Everyone we invited and everyone that is coming is welcome, we are pleased that they are coming but after all this is our celebration. This is Croatia's celebration, the celebration of Croatian citizens", she told reporters in Zagreb after meeting with her party colleagues who were voted in at the recent elections. We should celebrate the huge task achieved by our country.

Asked whether Chancellor Merkel's cancellation was a diplomatic scandal and a slap in the face for Croatia as reported in some media, she said that this was by no means the case.

"Chancellor Merkel's not coming is not related to any political reason and that situation is being compensated - the Minister for Europe is coming. That information has come directly via diplomatic canals and not media speculation. Imagine if other countries conclude what we think about them based on what some media report", she said.