Croatia has been given the go-ahead to become a member of the European Union, and is likely to join in 2013, the European Commission has said.
Commission President Jose Manuel Barroso said he would recommend EU nations wrap up talks and prepare to greet Croatia as the 28th member state.
Talks on reforming the Croatian judiciary, a very sensitive area, had been successful, Mr Barroso said.
Croatia will be the second ex-Yugoslav country after Slovenia to join. "The European Commission has just proposed... to close the last four chapters in the accession negotiations with Croatia," Mr Barroso said in a statement.
"Today is a historic day for Croatia and the European Union."