"I don't expect pedagogic measures and material punishment, and the government will know how to respond by protecting Croatian interests and agree with the European Union and I believe a solution will be found," he said on Croatian Radio.

Leko said the Commission was doing its job, voicing hope that the government would align Croatian interests with European bodies in the best way possible, that a solution would be found to prevent any sanctions, and that Croatia would meet its commitments in accordance with the EU accession treaty.

Leko said it was more important to him how the law on consumer loans would be defined than the law on cooperation in criminal matters with EU countries.

"Croatia should retain the principle that every crime should to be punished and the criminal be brought to court, so in this sense we can't look upon that law unilaterally," he said, adding that if Croatia immediately executed the EAW, the problem would remain of how to punish other perpetrators.

"This complex issue isn't just about one case that hasn't been cleared up, so the ruling majority is initiating the amendment of the constitution so as to lift the statute of limitations on serious crimes."

Leko expects those amendments to be on the agenda of the parliamentary Committee on the Constitution after parliament agreed on them and was sure that the procedure was guaranteed. "I hope next week, or the week after at the latest."

He dismissed media speculation that he became the leader of a resistance against the prime minister within the Social Democratic Party after describing as pointless PM Zoran Milanovic's announcement that a commission of inquiry would be set up for the murder of Croatian dissident Stjepan Djurekovic in Germany in 1983, for which Germany wants former Yugoslav intelligence chief Josip Perkovic. Leko said that was his personal opinion.

Asked about the calling of a referendum for constitutional amendments to define marriage as a heterosexual union, he said he expected the Committee on the Constitution to put it on its agenda at the next session.

Asked if parliament would discuss demands to proclaim the eastern town of Vukovar a place of special respect, Leko said that those who felt that this should be discussed again would probably initiate it in accordance with parliament's standing orders. "I think party policies are at stake in Vukovar, rather than Croatia's broader strategic interest."

He also said the prime minister would submit a report on the government's work to parliament next Tuesday.