DERMOT MURNAGHAN:  You'll no doubt be aware of the intense debate....  

ZORAN MILANOVIC: In the UK as well.  

DM:   ...... in the United Kingdom about whether we should remain in the European Union or not. But your country is very keen to get in and is joining tomorrow.  

ZM: That’s right. We’ve been in the pipeline for more than two decades so it’s long ago became just an academic question. So Croatian people, the citizens were decisive in joining and now it comes to pass. Eventually it comes to pass. And about the UK, I’m not sure you are going to leave actually.   

DM: Okay but you say the people were enthusiastic. Yes they were when they voted in that referendum but we look at this year’s European elections to elect the Croatian MEPs, you only had 21 per cent turnout.  

ZM:   No you’re wrong, we had less. But that’s not something we should boast ourselves with you know. It’s happening in some other new members as well and it’s about to be better next year. I expect it to be better but it’s not, when you said that people are not enthusiastic, I think people are sober because this accession has been long overdue and Croatian citizens have always retained a sort of a pinch of scepticism. So in relation to the EU as well, you would hardly ever in Croatia get a unanimous 100 per cent support for any grand idea. So I think it’s a rational and reasonable amount of scepticism that is always present in Croatian society.  

DM: Well just lay it out for me why in your view it is good for Croatia to join now. I know when you look across your northern border I know you see your former colleagues in the Yugoslav Federation, Slovenia, almost needing a bail out. You see the economic problems spreading up from Greece and beyond. Why is it good for Croatia to get into this club now?  

ZM: Well many reasons. We are not joining EU instantly so it will still take some years in the future to adjust and to comply with the criteria that should be set even higher than before in order to avoid situations like we have seen in Greece and the other countries of the southern periphery of the EU. There is a plethora of reasons, good reasons, why should we become members of the single market and I think that those benefits are shared among us all. Even by the UK. It’s good to be at the Common Market. Should I remind you that, I think this is a good occasion, well the more you integrate the less you fail seeing, especially if you are a small nation, the less you advocate and live the case of the free trade and the fair trade, you stand a better chance of being better off. Two hundred years ago, you know the first torpedo, it’s an attack weapon, the first torpedo ever made in the world was made in the port of Rijeka in Croatia and the factory launch was a joint enterprise and the subject of British Empire in Croat. It was a good start but it was interrupted.  

DM: And can you see Croatia joining the Euro, is that your ambition too?  

ZM: Actually that’s our obligation according to the Accession Treaty but as I said it will not be done abruptly, in a fortnight but in a course of years actually. So when we do it we will not be anymore or anybody would be anymore for that matter in position to endanger the whole system as we have seen happening lately.  

DM:   There’s not a lot of love coming from elements of the German population though about Croatia’s accession is there? Reading Bild, some of the comments in there, saying oh well why do we need another south European country like this which is only going to be a drain on the German taxpayer eventually. Angela Merkel not coming along for the accession ceremony?  

ZM: Well that argument is a kind of contradiction of DIETA. It’s a basic logical error and fallacy. How in the world could Germany bail out Croatia when we’re not a member of Europe yet? It couldn’t possibly happen. Even if we were real bad which I am sure we will not be. So Bild is less serious than Sky News.   

DM:   Well what I’m saying is that you will be tomorrow and the economy hasn’t been doing too well recently has it?  

ZM: Not at all. It hasn’t but in speaking of bail out, the bail out or the proportion that we have seen recently happened only in the Euro countries and we’ve been so harshly scrutinised over the last 10 years that such kind of failure actually is not likely to repeat. And it couldn’t because we are not a Euro member. But our economic data are mediocre as is basically throughout Europe these days with some marginal exceptions. Our banking sector is doing well which means that it has a high capital adequacy and it’s kind of robust but also inert at the same time. So they don’t lend and the people don’t borrow but that’s the problem we see throughout Europe don’t we?  

DM:   And let me talk to you more about other countries in the region, Slovenia of course already a member of the European Union. Do you think you’re leading the way for others, for Montenegro for Bosnia, Serbia, Kosovo, can you see them all becoming members of the European Union?  

ZM: Absolutely but not in a tutorial fashion or a kind of mentorship that we’ve been exposed to sometimes and we didn’t like it. So we’re here to assist to help and to build a better region and a mutual interest.   You know there has been very important, or there is about to happen a very important merger or acquisition if you wish, shortly between the biggest Croatian and Slovenian retailer that’s creating the biggest retailer in Central and Eastern Europe with an annual turnover of revenues of a about 7bn Euro. So that is a good first sign, it’s a good sign.  

DM:   Thank you very much for talking to us. I’m sorry we’re out of time.  

ZM: Take care.  

DM:   Thank you very much indeed. Welcome to the EU, Zoran Milanovic there, the Croatian Prime Minister 

ZM: No, I was pleased to be with you. Thank you.  

DM:   Thank you very much. 

End of Transcript