In a blow to Croatia’s European Union accession hopes, the Czech Republic – current holder of the rotating presidency of the EU – announced on June 24 2009 that it was cancelling an intergovernmntal accession conference with Croatia that had been scheduled for June 26.

"Despite substantial efforts to facilitate a solution to the country´s border dispute with Slovenia, Croatia´s accession talks remain blocked and no new chapters can be formally opened or closed," the Czech EU presidency said.

"The border dispute remains a bilateral issue only Slovenia and Croatia can resolve. The presidency deeply regrets the fact that despite numerous attempts by the presidency and the European Commission to help find a way forward the negotiations have not progressed."

Agreement on technical level has been reached during the Czech EU presidency on provisionally closing Chapter 6 (Company Law) and Chapter 18 (Statistics) and opening Chapter 4 (Free Movement of Capital) and Chapter 16 (Taxation).

"In these chapters the border issue remains the only obstacle. The lack of formal progress in the negotiations with Croatia therefore does not match the actual progress achieved on ground by Croatia," the Czech statement said.

On June 23, European Enlargement Commissioner Olli Rehn, who has been attempting to broker a solution, told the two countries to resolve the dispute between themselves.

"After six months of work and discussion, I believe it is up to Croatia and Slovenia to find a solution," Rehn said.

"If Croatia’s EU accession negotiations are unblocked soon, I believe Croatia will soon be able to enter the final phase of the negotiations. I am sure the new Swedish presidency will support Croatia on its way to EU membership," he said.

Sweden takes over the presidency of the EU from July 1.

The dispute dates from 1991 and the secession of the two countries from the former Yugoslavia.

Croatia had hoped to complete accession talks before the end of 2009, putting it on the way to join the bloc in 2010.

Slovenia wants direct access to waters in the northern Adriatic and has said that it wanted the dispute resolved through EU mediation, while Croatia has said the best way to answer the question would be to refer it to the International Court of Justice.