Croatia will become the European Union's 28th member in July 2013 after it signed an accession treaty on Friday, but EU leaders delayed granting fellow ex-Yugoslav neighbour Serbia the status of EU member candidate. EU officials hope Croatia's membership, a reward for deep democratic and economic reforms, will persuade other countries in the Balkans that reforms pay off and accelerate democratic transition in a region torn by wars in the 1990s.
Many states there are struggling to leave behind the legacy of ethnic conflict and Serbia has failed to persuade European governments of its goodwill towards Kosovo, a former province that broke away in 2008 in a move Belgrade refuses to recognise. "The achievement of Croatia proves to all in the region that through hard work, persistence, political courage and determination, EU membership is within reach," European Council President Herman Van Rompuy said at a signing ceremony on the sidelines of a summit of EU heads of state.
The summit was dominated by efforts to build a fiscal union to tackle the euro zone debt crisis. In the end, a majority of countries led by Germany and France agreed to move ahead with treaty changes, leaving Britain isolated. Under the terms of EU entry, Croatia must strive to join the euro. Croatia's prime minister-elect Zoran Milanovic said in Zagreb that was a "medium term" requirement.