Plenkovic headed the outgoing HDZ-led coalition over the past eight years. The party, which has dominated Croatian politics since the 1991 break-up of socialist federal Yugoslavia, took credit for the country entering the EU's Schengen free travel area and the euro zone last year.

Croatia’s ruling conservatives have agreed to form a coalition with an extreme party, which would push the country further to the right ahead of next month’s European parliamentary election

Croatia’s prime minister was on course to steer the Adriatic nation to the political right as he agreed to form a coalition with an anti-immigration nationalist party three weeks after suffering an electoral setback.

Croatia's ruling HDZ party has agreed to form a coalition with a far-right party following the parliamentary election in April, Prime Minister Andrej Plenkovic, who also heads the HDZ, said on Wednesday.

The ruling HDZ party took a major decision on Wednesday to form a coalition with a far-right nationalist party, signalling a shift towards the right as the European elections approach next month.

The governing Croatian Democratic Union, or HDZ, and the far-right Homeland Movement reached the agreement weeks after an inconclusive parliamentary vote that has stirred political uncertainty.

Croatia’s prime minister was on course to steer the Adriatic nation to the political right as he agreed to form a coalition with an anti-immigration nationalist party, though he pledged to maintain his agenda.