Croatian PM Reshuffles Government amid Party Rift

Croatian Prime Minister Zoran Milanovic on Wednesday announced changes to his cabinet sacking the education and health ministers amid a deep split in his centre-left party.

Milanovic did not provide a clear explanation for the move, just saying that the two new ministers -- Sinisa Varga for health and Vedran Mornar for education -- were taking charge of "very difficult" sectors where "opposition to reforms are huge."

When asked by journalists to elaborate on removing Rajko Ostojic from the health ministry and Zeljko Jovanovic from education, he said, "There are no concrete personal reasons or reasons regarding their work... It simply leaves a person exhausted... people should rest a bit."

But the move comes after the premier's Social Democrats, the ruling coalition's main force, in a weekend vote ousted from the party, at Milanovic's request, veteran member and powerful ex-finance minister Slavko Linic.

Although Ostojic was among those who openly supported Linic, Milanovic on Wednesday denied claims that that was the reason he lost the health portfolio.

Linic, who was pursing the fiscal discipline sought by the European Union which Croatia joined last year, was dismissed in May for approving a controversial tax deal.

Political analysts say that although Milanovic succeeded in ousting Linic, he was clearly lacking support within the SDP which would undermine the government's effort to enact painful reforms 18 months ahead of parliamentary elections.

Croatia's economy has not grown since 2008, and unemployment is around 20 percent.

Experts say the country should reform its inefficient and huge public sector and improve the business environment.