Ivica Racan and Ivo Sanader

Croatians go to the polls on Sunday in what is likely to be a closely contested general election.

BBC correspondents in Zagreb Nick Hawton and Marko Kovac have interviewed the two leading candidates.

Prime Minister Ivica Racan

Q: Why are these elections important?

A: Croatia is on the doorstep of Europe and any delays caused by political instability in the coming months would endanger a great opportunity to join the EU by 2007-8.

Q: What do you say to those who criticise Croatia for not doing enough to co-operate with the UN War Crimes Tribunal in the Hague?

We have very good co-operation with the tribunal. At this moment, we have only one open issue. It is the case of General Gotovina (the Hague has issued an indictment against General Ante Gotovina - who is on the run). But we want to resolve this case and I am optimistic that it will be [resolved].

Q: Why hasn't he been arrested?

He isn't in Croatia at this moment. Where he is? Who knows? I am not sure. But we want to have good co-operation with other countries in Europe because we want to resolve this issue.

Q: Another issue which could effect Croatia's joining the EU is the return of Serb refugees. Have you been doing enough?

Many refugees have returned to Croatia but we will continue our efforts. In the next 15 months we will resolve the problem of refugees especially refugees from Serbia and Bosnia.

But, it must be said, a lot of refugees, Croats or Serbs, will stay in their new countries. We want to sort this out. That is our obligation. We want to resolve this issue by the end of next year. That was the promise of my government.

Q: There are perhaps 200,000 refugees who want to come back to Croatia. If they don't come back, Croatia may not be allowed to join the EU in 2007-8. What do you say to that?

A: I do not think that many people want to come back to Croatia. Just as I know there are, unfortunately, 200,000 Croat refugees from Bosnia who will not return to Bosnia. Such is life.

Q: How confident are you that Croatia is on the fast track to the EU?

A: I hope we will be in the EU in 2007-8. It is a good prospect for us.

Main opposition leader, President of the Croatian Democratic Union (HDZ), Ivo Sanader

Q: How has the HDZ changed since the 1990s when it was identified with the isolationist policies of the late President, Franjo Tudjman?

A: The HDZ has been reformed during the last four years under my leadership. For instance, there has been an acceptance of the HDZ among like-minded parties in Europe. We have become a full member of the European People's Party, the largest faction in the European parliament.

We are fully committed to democracy, the rule of law, to human rights, minority rights and the philosophy of the free market economy. Our intention and our highest priority in foreign policy is full membership of the European Union and Nato.

Q: Do you now believe in co-operation with the UN War Crimes tribunal?

A: The HDZ fully supports full co-operation with the Hague Tribunal.

Q: Why are these elections important?

A: First of all, because Croatian citizens, myself and my party think Croatia could do much better in the economy.

We are less interested in political issues... our citizens are interested in economic issues. Issues like standard of living, foreign debt, which is enormously high and the need for a clear pro-European perspective.

About 75% of all Croatian citizens fully support joining the EU. Those three issues are very important for all Croatian people. I think that the elections are important in order to change the government and to get a new government which would more decisively lead Croatia towards those goals.

Q: Are you confident for the election?