New Croatian cabinet approved

Racan, right, has split with his coalition partner

The Croatian parliament has voted to approve the new centre-left cabinet proposed by the Prime Minister, Ivica Racan.

The 151-strong assembly endorsed the new government by 84 to 47.

There is no sector that does not need thorough reform

Ivica Racan

The vote ushers a fresh administration into place after the 30-month-old coalition government Mr Racan headed finally collapsed a month ago after internal wrangling for most of this year.

Mr Racan was retained as prime minister on his pledges to transform the former Yugoslav republic into a stable European democracy.

It is still haunted by the 1991-95 conflict with Serb rebels and Belgrade's army.

High unemployment

Mr Racan said his new cabinet "can now tackle all the challenges facing it".

They include Croatia's high unemployment, inefficient public administration, large public debt and low competitiveness on the international market.

"There is no sector that does not need thorough reform," Mr Racan said.

Croatians want to leave the war behind

He resigned on 5 July after a dispute with the second-largest grouping in his five-party coalition, the Social Liberal Party (HSLS), over a Croatian-owned nuclear power plant in neighbouring Slovenia.

The HSLS left the coalition to join the opposition, and its leader, Drazen Budisa, was replaced as deputy prime minister by Ante Simonic, head of the Croatian Farmers' Party.

The new cabinet will have independent experts in charge of the economy and science ministries.

The new defence minister is a woman, Zeljka Antunovic, who will have the difficult task of laying off 13,000 soldiers as part of armed forces reform.

Uphill struggle

Roland Zuvanic will become minister of maritime affairs, transport and communications.

Gordana Sobol of the Social Democratic Party (SDP) will become minister without portfolio and chief of staff to the prime minister.

The BBC's Matthew Price, in Belgrade, says Mr Racan has an uphill struggle ahead of him.

He has only a year and a half left before fresh elections, and many Croatians are not convinced by his performance so far.

There are still bitter divisions among the administration.

The new opposition, composed partly of Mr Racan's old coalition partner, has already blocked important legislation on the rights of minorities.