Croatia's European Union (EU) accession talks are expected to be resumed by the end of the year, stated EU Enlargement Commissioner Olli Rehn, while Prime Minister Ivo Sanader foresees entry talks to be completed in 2009, reports news agency Ansamed.

“We've analyzed all the aspects of negotiations with the EU and we remain hopeful that they could be over by the end of the year,” added Sanader.

The two officials have discussed over the Slovenian blockade of Croatia's EU talks, as well as over the country’s border dispute with Slovenia. Rehn noted that he was pleased that “Croatia accepted his compromise solution” to the border dispute.

Slovenia has blocked Croatia's EU accession talks due to the unsolved border dispute. The country seeks direct access to international waters in the northern Adriatic, asking Croatian for a channel to the open sea. Croatia aims to enter the European Union in 2010 or 2011.

In April, Rehn proposed to create an arbitration body in order to unblock the Croatian EU entry negotiation talks and solve the country’s border dispute with Slovenia. The arbitration body would include five arbitrators. The European Commission would propose the main arbitrator, who would name two of its assistants, while Croatia and Slovenia would name one arbitrator each.

Croatia has accepted the proposal, while Slovenia has asked for amendments.