Croatia and Slovenia, in a move described by the European Union Presidency as "showing European leadership" announced on September 11 2009 that they had reached an agreement towards resolving their long-standing border dispute.
 
A crucial implication of the move is that it will open the way for Croatia’s European Union membership negotiations, which have been stalled by the standoff.
 
In a joint statement, Slovenian prime minister Borut Pahor and his Croatian counterpart Jadranka Kosor said "the Slovenian government will propose to parliament's foreign policy and EU affairs committee that Slovenia withdraw its blocking of Croatia's EU accession negotiations," Deutsche Welle said.
 
Kosor sent a letter to the current EU presidency, Sweden, indicating that his government would make no more assumptions about the two countries' 18-year border row.
 
Kosor said that a "new chapter" had been opened and that "friendly relations and respect can lead to a resolution of problems." Croatia hopes to become an EU member by 2011.
 
The dispute dates to the process of the disintegration of the former Yugoslavia in 1991.
 
In a statement, Sweden, current holder of the rotating presidency of the EU, said that it "warmly welcomes" the agreement.
 
"This agreement underlines the strength of the European integration process and the virtue of dialogue. It will promote regional stability and serves as a model for the Western Balkans as a whole," Swedish prime minister Fredrik Reinfeldt said.
 
"Croatia's accession is in the interest not only of Croatia itself and of Slovenia, but of the neighbouring region as well, and of the entire EU. I am fully convinced that Croatia will now put in even more efforts on reforms and other issues in order to meet all outstanding conditions for membership," Reinfeldt said.
 
Pahor said the negotiations on the settlement of the border dispute would resume within the EU from the point at which they were interrupted on June 15, when Enlargement Commissioner Olli Rehn's most recent proposal was on the table.
 
Before Sweden took over the EU presidency, EU leadership signalled its frustration at the two countries’ failure to come up with a solution and the bloc withdrew from trying to broker a deal, saying that this should be done bilaterally.