Balkans: July 5, 2002


Croatias Ivica Racan resigned as prime minister, causing the Croatian coalition government to collapse. The government had five parties in the coalition, and wrangling between Racan (Social Democratic Party) and the Social Liberals (second-largest coalition partner) had gotten intense. The big problem? A 23 percent unemployment rate, which is a big problem. Analysts expect Corat president Stipe Mesic to have Racan to form a new government within a month.




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