"I believe there will be no sanctions, because what we are discussing is part relating to our legislation. I believe we have enough arguments to prove to the European commission that we will change things, but in the way we think is right," Mrsic said when asked about possible sanctions against Croatia over Lex Perkovic.

He said Lex Perkovic's was Croatia's business, recalling that two letters regarding this matter had already been sent to Justice Commissioner Viviane Reding.

Reuters reported yesterday that the European Commission was likely to punish Croatia next week in a row over extradition rules that has marred the first months of the EU newest member in in the Union and may endanger EU aid for border control improvements.

The agency recalled that Croatia, which joined the European Union on 1 July, had quickly fallen into disagreement with its new peers over amendments to its extradition laws, made just a few days before it joined the group, which effectively ensured protection of veterans from Croatia's 1991-95 independence war from facing inquiries elsewhere in the EU.