"For Croatia (64th, +4), due to join the EU in July this year, and Serbia (63rd, +17) the picture is mixed. Legislative reforms have brought an improvement, but it should not be forgotten that there are still many obstacles to overcome and old habits that are harmful to independent journalism still linger," the organisation says in a report.

Of countries close to Croatia, Austria placed 12th, Slovenia 35th, Hungary 56th, Italy 57th, Serbia 63rd, Bosnia and Herzegovina 68th, Montenegro 113th and Macedonia 116th.

Compared to the countries of the former Yugoslavia, Croatia advanced four spots, Slovenia edged up one spot, while Serbia made the greatest progress moving up 17 spots.

In other countries the state of press freedom has deteriorated. The section of the report dealing with Europe and the former Soviet Union warns of a catastrophic state of the media in countries outside the European Union.

"Outside the European Union, freedom of information is in a state of collapse. Within its borders, Hungary and Greece have slumped. The Balkans remain rooted in the repressive practices of the past," the report says. Hungary dropped 16 spots and Greece 14, placing 84th.

The ranking is topped by Finland, the Netherlands and Norway, while China, Iran, Somalia, Syria, Turkmenistan, North Korea and Eritrea bring up the bottom of the list. The United States finished 32nd, Russia 148th and Japan 53rd.

Reporters Without Borders is a Paris-based international non-governmental organisation that promotes freedom of the press and information. Established in 1985, every year it publishes the World Press Freedom Index which is based partly on a questionnaire sent to partner organisations, 18 freedom of expression NGOs located in all five continents, a network of 150 correspondents, journalists, researchers, jurists and human rights activists.