VZCZCXRO5861
PP RUEHIK
DE RUEHVB #0027 0121440
ZNR UUUUU ZZH
P 121440Z JAN 10
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 9807
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY

UNCLAS ZAGREB 000027 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON HR
SUBJECT: ZAGREB DAILY ACTIVITY REPORT: JANUARY 12, 2010 
 
¶1. (U) AMBASSADOR FOLEY MEETS WITH PM KOSOR:  Kosor said 
strengthening the economy, completing EU accession 
negotiations, establishing Croatia as a "model" NATO member, 
and tackling corruption will be the GoC's top priority this 
year. Ambassador Foley reaffirmed support for Kosor's 
objectives and Croatia's EU accession.  They discussed a 
range of domestic and regional issues, including the 
aftermath of former Prime Minister Sanader's recent failed 
effort to stage a political comeback. More details septel. 
 
¶2. (U) OSCE SAYS CROATIA'S PRESIDENTIAL RUNOFF MET 
INTERNATIONAL STANDARDS: The Limited Election Observation 
Mission (LEOM) to Croatia of the OSCE Office for Democratic 
Institutions and Human Rights presented its preliminary 
report and conclusions on the presidential runoff at a 
January 12 press conference.  "The positive developments we 
noted during the first round were confirmed by what we 
witnessed in the second round," said Ambassador Daan Everts, 
Head of the Mission.  The process of voting and ballot 
counting was very professional and efficient both in and 
outside the country. The Mission identified some problematic 
areas which require immediate attention, concluding primarily 
that there was a need for consolidation and harmonization of 
the legal framework for elections.  The LEOM will recommend 
that this be done already in 2010 so that those laws could be 
ready for the next elections, Everts said.  He also stressed 
the need for perfecting the complaints and appeals procedure 
to provide a comprehensive mechanism that could respond to 
all possible complaints and appeals.  As for election 
services, the make-up of the State Electoral Commission (DIP) 
should be revised, its capacities strengthened and its 
mandate defined in greater detail, added Everts.  All of this 
would make it possible for DIP to respond faster and more 
efficiently in different areas, including informing voters. 
Lastly, the mission's recommendations also emphasized the 
poorly designed campaign financing laws, and noted that 
Croatia currently does not have any mechanism to check the 
authenticity of reports on campaign financing.  Their 
accuracy depends solely on the candidates' conscience, Everts 
said. 
 
¶3. (U) SLOVENIANS INCREASINGLY SUPPORT THE CROATIAN-SLOVENIAN 
ARBITRATION DEAL:  Croatian media reported the results of a 
recent poll conducted in Slovenia that indicates nearly 
two-thirds of Slovenians would support the Croatian-Slovenian 
arbitration deal in a referendum.  The poll showed that 63.8 
percent supported the arbitration deal, while 28.1 percent 
opposed it and 8.1 percent were undecided. 
 
¶4. (U) UNEMPLOYMENT IN CROATIA GREATER THAN 2008: The 
Croatian Employment Office (HZZ) reported January 11 that 
there will be 300,000 unemployed Croatians in Spring 2010 
because of the economic crisis and GDP decline in 2009.  HZZ 
Director Ankica Paun Jarallah said 270,557 Croatians filed 
for unemployment benefits, which was 35%  more than in 2008. 
The manufacturing, construction, and retail sectors accounted 
for 52% of unemployment claims in 2009. 
FOLEY