Tomislav Tolusic

Croatia's parliament on Friday confirmed the appointments of a new Vice-Prime Minister and Economy Minister - who will be in charge of handling the Agrokor crisis.

Following the resignation of Martina Dalic on May 14, her former positions are assigned to Agriculture Minister Tomislav Tolusic, as Deputy Prime Minister, and to Darko Horvat, as Economy Minister.

The dispute between Croatia and Slovenia over the Piran Gulf risks going up another notch after Croatian police offered to accompany Croatian fishermen in the waters of the Piran Gulf and ward off any Slovenian attempts to issue them with penalty notices.

The two former Yugoslav republics are locked in an unresolved dispute over the waters off the Istrian peninsula, which both claim.

The "customs war" between Croatia and regional countries is over, Serbian Minister of Trade, Tourism and Telecommunications Rasim Ljajic said on Monday.

The row was sparked when Croatia increased 22 times the cost of its import inspection fees for fruit and vegetables - facing accusations that it had introduced non-tariff barriers.

Serbia, Bosnia and Herzegovina, Macedonia and Montenegro issued an ultimatum to Croatia on Monday, demanding that it revokes its decision to raise fees on imports of fruit and vegetables in one week, or face counter-measures.