Asked by a reporter how much in compliance with EU regulations was Prime Minister Jadranka Kosor's announcement of a law under which no one but the Croatian state could hold more than 49 per cent in the oil company INA, Vandoren said regulations on such cases were very complex and that he still had to learn more about this case.

He added, however, that it was Croatia's obligation to respect the EU's common market and free movement of capital services and people.

Vandoren said that, depending on whether such an initiative was indeed being undertaken and what it would look like, Croatia could be in danger of clashing with those fundamental freedoms.

Responding to the same question, the deputy prime minister in charge of investments, Domagoj Ivan Milosevic, said special attention should be paid to the most important national energy company and that one should be especially careful given the circumstances and the protection of national interests.

He could not recall any European national company being taken over in such a fashion and atmosphere as INA, whose majority owner is Hungary's MOL.

Asked if he expected understanding from the European partners, he said: "Yes, of course."

The press also asked Vandoren if it was correct, as some Croatian media claim, that Brussels was rushing Croatia to call a referendum on EU accession.

He said he did not know about such pressures and underlined the importance of what the EU said before - that the referendum be held separately from the coming parliamentary election. Regarding the referendum, he said it was important to give citizens enough time and inform them in detail so that they could decide based on facts.

Vandoren and Milosevic were speaking to the press at an investment conference.