EC Steps up Effort to Solve Slovenia-Croatia Border Row

The European Commission has proposed the formation of a special commission to help solve the lengthy (and costly) dispute between Slovenia and Croatia over their land and sea borders. If the group goes ahead it is likely to be chaired by former Finnish president and Nobel Peace Prize winner Martti Ahtisaari.

The dispute is delaying Croatia's full accession into the European Union and all the benefits that go with it. The EC earlier this month announced its commitment to completing negotiations with Croatia over its accession this year, and this new proposal is to help with that aim.

Croatia's accession is widely expected to be a reality by 2010, hopefully this new committee can make site it is.

Croatia property prices had grown rapidly since EU accession came onto the horizon until last year. Since then foreign investment in the country has slowed despite the government's best efforts.

Most analysts predict another growth spurt in Croatia property prices when it becomes a full member of the EU and the economy is boosted by things like worker remittances as Croatian's go abroad to work, as well as cheaper exports as Croatia benefits from the EU's network of free trade agreements.

Therefore property investors will be watching the negotiations very closely, and the new committee if it goes ahead will likely increase the odds of EU accession when or possibly even before it is expected. When it becomes apparent that EU accession is definitely just around the corner, Croatia will likely see a rise in overseas property