Zagreb, July 05: Croatian Prime Minister Ivica Racan is to step down tomorrow following a rift with the second largest partner in his five-party coalition, the government's public relations office said today. Racan is to submit his resignation in todays’s government session and is to address the public at noon in a broadcast carried on national television and radio.
According to local media president Stipe Mesic will then probably designate Racan as interim prime minister, giving him a month to form a new government.
He could then form a minority government without the social liberals.
Relations among the coalition partners reached a crisis point yesterday when the HSLS opposed ratification of an agreement on sharing ownership of a nuclear power plant with neighbouring Slovenia.

Bureau Report