Croatia elections could bring new leaders

ZAGREB, Croatia, Dec. 4 (UPI) -- Social Democrats in Croatia should win enough votes Sunday to form a majority in the country's parliament, leaders of the party and opinion polls said.

"We expect victory, like anybody competing for the trust of the citizens," said Zoran Milanovic, leader of the Kukuriku party.

Croatia's leading party since independence in 1991, HDZ, has lost favor with the public for a string of slush fund scandals that saw the arrest of senior officials, Irish news agency RTE reported.

Meanwhile, unemployment in the country rose to 17.4 percent in October and foreign debt has surpassed 100 percent of gross domestic product.

"The two things we expect from the new government are to draft a budget that shows fiscal consolidation, otherwise we are threatened with a credit rating cut, and to make a resolute start to the necessary reforms," said Davor Majetic of the national employers' association.

Milanovic has promised to put Croatia on a "budgetary diet" and says he hasn't ruled out a loan from the International Monetary Fund, the BBC reported.

Croatia is expected to sign a treaty next week as a first step to formally joining the European Union.