Croatia has elected Stipe Mesic to be the country's new president.

Mr Mesic is a prominent figure in the centre-left alliance, which in last month's parliamentary elections defeated the Democratic Union Party of the late head of state, Franjo Tudjman.

The new leader has pledged to push for Croatian membership of the European Union and Nato, to curb presidential powers and stamp out corruption.

The other presidential candidate, Drazen Budisa, conceded defeat after early results showed that Mr Mesic was leading by a margin of 10%.

Mr Budisa said: "I think the moment has come for me to congratulate Mr Mesic on his victory and to wish him a lot of success in carrying out the presidential duties."

Voting took place in more than 7,000 polling stations in the country and 48 in embassies abroad.

The election was called after President Tudjman's death last December.

Correspondents say that it marks a further stage in the current transformation of Croatia away from the autocratic and nationalist style of the Tudjman era.

Both candidates were both backed by centrist parties that share power in the new coalition government.

Climax of change

The vote is the climax of several months of political change in Croatia.

The illness, then death, of the President Tudjman last December was followed by the dramatic victory of the social democrats and liberals in the parliamentary elections in the New Year.

They have now formed a six-party coalition government and have begun to confront deep economic problems and widespread corruption.

But much power in the country remains in the hands of the president and the election for that post has been closely fought.

Opinion polls had put 65-year-old Stipe Mesic consistently ahead.

But Mr Budisa had appeared to be narrowing the gap in the run-up to Monday's election.

While their policies are similar - to weaken the presidential system and end Croatia's isolation from Western Europe - Mr Mesic has appealed slightly more to left-wing, and Mr Budisa to right-wing, voters.

During the campaign Mr Mesic was more outspoken about relations with Bosnia.

After voting, he said: "Before entry into Nato and the EU we will have to resolve relations with Bosnia-Herzegovina.

"For example, as long as we are financing an army in a foreign country we cannot enter the EU.