Croatia's tightly contested national election gave no clear winner, with the ruling conservative HDZ taking most seats but without an outright majority, according to preliminary results today.
The results, based on 95 per cent of all votes, gave Prime Minister Ivo Sanader's Croatian Democratic Union (HDZ) 60 seats, while the Social Democrats (SDP) had 57 seats.
The HDZ can expect a few more seats from Croats abroad, mainly those living in Bosnia.
Both parties pledge more reforms and European Union membership by the end of the new government's four-year mandate.
"The HDZ's victory is certain... Croatian voters have shown that they trust the HDZ and the policies we've been implementing in the last four years," Mr Sanader said.
However, SDP leaders also believed they could form a government with several smaller parties. "We are immediately starting talks form the new government and I am sure we shall succeed," SDP leader Zoran Milanovic said.
Complete results are expected around midday toay.
Due to Croatia's complex electoral system, the party with the most votes is not automatically guaranteed four years in power.
President Stjepan Mesic, who nominates the prime minister designate, said: "I will give the mandate to whoever submits clear proof that they can have majority support in parliament".
That could mean the HDZ with one other partner, but also still leaves room for the SDP to form a new government in coalition with several smaller parties. Majority support will require at least 77 seats in the parliament.