EU calls off talks with Croatia

The Slovenes and Croats argue over the Bay of Piran

The European Union has called off the next round of Croatia's EU membership talks, over its continuing border dispute with Slovenia.

The talks were set for Friday but have been cancelled until further notice.

The row over the Bay of Piran has held up talks on Croatia's accession - which is provisionally set for 2010 or 2011.

It also threatened to derail Croatia's membership of Nato, until Slovenia dropped its objections only days before this month's Nato summit.

The EU did not give a new date for talks with Croatia to resume, and said doing so would be "subject to positive development" in negotiations between Croatia and Slovenia.