The European Union's executive, the Commission, has said the recent change of government in Croatia could have far-reaching consequences for the entire Balkans region, including Serbia.

A spokesman said Serbia was now being encircled by democratic countries, which would change the entire outlook for the region.

He also said last week's talks between the Commission President, Romano Prodi, and the centre-left alliance which won Croatia's parliamentary elections in December, had opened up the possibility of a very fast rapprochement between Croatia and the EU. The spokesman also indicated the new Croatian leadership would be prepared to take steps towards the return of Croatian Serb refugees to the country.

From the newsroom of the BBC World Service