Croatia will likely shift further to the right

Significance

The HDZ has begun preliminary coalition talks with the far-right Homeland Movement, which finished in third place. The election has exacerbated deep tensions between Prime Minister Andrej Plenkovic and President Zoran Milanovic, who called the election and campaigned with the Social Democrats (SDP) to oust Plenkovic.

Impacts

• A third premiership would strengthen Plenkovic’s bid for a top job in EU institutions.
• A broad-church coalition by opposition parties might ease concerns over corruption among members of the HDZ.
• The economic outlook, heavily reliant on tourism, will remain relatively stable.