The leading party HDZ (Croatian Democratic Union) of the current coalition that is governing Croatia for 5 months now together with Most (Bridge of Independent Lists) announced it would hold a no-confidence vote soon against the Prime Minister Tihomir Oreskovic. Just a week before, the Prime Minister had called upon his Deputy Prime Ministers from HDZ - Tomislav Karamarko - and Most - Bozo Petrov - to resign. This move by the Prime Minister was prompted by the infighting between the two, as Most wanted Karamarko to resign because of corruption allegations of his wife. The largest opposition party SDP (Social Democrats) have stated they would support to no-confidence vote in order to have snap elections. Recent polls indicate SDP would win new elections, although it could lead once again to an unstable coalition, especially as an anti-system and anti-globalization party called ''Human Shield'' (Zivi Zid) might enter the Parliament as well.

The Prime Minister himself is a businessman and not member of any party in Croatia. He was made Prime Minister 5 months ago when HDZ and Most could not agree on a candidate from either party. The outcome was the selection of an independent outsider - Tihomir Oreskovic who was to govern the two parties in harmony as a technocrat. HDZ has suggested it could form a new parliamentary majority after his ouster, although new elections would be most likely.

Croatia has been in political turmoil for months already since the formation of the new government. It has angered Serbian and Jewish minorities by installing a minister that has glorified former Croatian leaders who were close to the Nazi's and carried out massacres against Serbs and Jews at the time. Furthermore, the rule by the new government has been characterized by illiberal tendencies as well, since critical journalists have been fired and funds have been cut off to civil society. Additionally the government has attempted to block negotiations with Serbia over accession to the EU.

The worsening political crisis could mean bad news for the country, as Croatia is still recovering slowly from the financial crisis of 2009, having only experienced positive economic since 2015. Political uncertainties could further undermine Croatia's growth prospects. It also means bad news for the region, as Macedonia has a political crisis of its own and Serbia has recently seen ultranationalists entering the Parliament.

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For economic figures on Croatia, click here and here.

For more on Croatia's recent illiberal developments, click here.