With more than half of the ballots counted, Croatia's state election authorities said early today that the conservative Croatian Democratic Union, or HDZ, have won 62 seats in the 151-seat parliament, while rival left-leaning People's Coalition won 53. Third-placed are kingmakers Most, or Bridge, with 12 seats.
Although incomplete, the results are not expected to change dramatically until the full count later today.
"After such a victory, we are the party that will have a chance to form a stable, future Croatian government in the next four years," HDZ leader Andrej Plenkovic said. "We have shown that we have regained the trust of our voters."
The election outcome comes as a major blow for Croatia's left-leaning Social Democrats, the main party in the People's Coalition, who were leading the polls ahead of the elections, but apparently have failed to capitalize on the political crisis created by their opponents in order to win the election.
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"Unfortunately, this was not a happy day for Croatia," said Milanovic, adding "But Croatia needs a stable government now, whoever may be part of it."
The previous Croatian government was formed after an inconclusive election last November following weeks of negotiations between the HDZ and Most. It fell because of bickering within the ruling coalition.
HDZ and the Social Democrats, which is the largest party in the Peoples' Coalition, have been the two dominant parties in Croatia since the country split from former Yugoslavia in 1991.
Hours before the polls closed, the turnout among Croatia's 3.8 million voters was nearly 10 per cent less than in November. President Kolinda Grabar Kitarovic urged Croats to come out and vote, saying the country's future is in their hands.
"The following months and years are truly decisive for Croatia, and today we have to be serious," he said. "We can't complain later if the outcome of the election is not the way we want it to be.