"We are conducting talks on models for a solution. Milanovic and Jansa are finalising an agreement which should serve as a foundation for the ratification of Croatia's Treaty of Accession to the European Union in the Slovenian parliament," the Croatian minister said answering questions during a news conference she held to promote the foreign ministry's excellence centre in Zagreb.

Milanovic and Jansa are due to meet in Croatia on 10 March to reach a final agreement on the LB issue.

However, Slovenia's government is having hard times with a few junior partners leaving the ruling coalition.

In addition, the Positive Slovenia (PS) party which has the most seats in parliament, has decided to nominate Alenka Bratusek as the prime minister designate of an interim government. Bratusek's nomination was confirmed on Thursday night at a leadership meeting of the PS, which has 28 deputies in the 90-seat Slovenian parliament.

Bratusek said she would begin talks on Friday over the new government's programme with three parties that were willing to support her nomination, with the aim of giving a no-confidence vote in incumbent PM Jansa. These are the Civic List, the Democratic Party of Pensioners, and the Social Democrats. If the four parties manage to agree on the interim government's programme, Bratusek's nomination could be put forward in parliament next month. If she gets the majority vote, the Jansa cabinet would automatically become a caretaker government and Bratusek would have two weeks to nominate her ministers, which would require another vote.

"No matter what is happening there (in Slovenia), I believe that the process (regarding the LB issue) will go on as planned," Pusic said today.

The Croatian official holds that there is a high level of consent in the Slovenian parliament and also on the political scene that it is necessary to expedite the solution of the LB issue, and accordingly, to ratify the Croatia-EU treaty soon.