Tourism Minister Veljko Ostojic resigned from the Croatian government on 9 March, following a barrage of media accusations related to the sale of a substantial parcel of land, IHS Global Insight reported. 

Local media have reported on the large financial profits that close family members allegedly made in the USD4.29-million sale after a change in regional planning laws in the Adriatic peninsula of Istria, the stronghold of Ostojic's Istrian Democratic Assembly (Istarski Demokratski Sabor: IDS). 

The State Attorney's Office is now examining the case after investigative media reports circulated regarding the surge in land value following its rezoning for urban development. 

Ostojic strongly denies wrongdoing, insisting he had no prior knowledge of the family transaction and that he did not benefit financially from the deal. However, his departure marks the fourth ministerial resignation since Prime Minister Zoran Milanovi?'s centre-left coalition took power in late 2011.

The IDS has only one ministerial position in the four-party ruling executive. It will probably nominate a new candidate for the ministry of tourism portfolio, although the current IDS leader Ivan Jakov?i? appears to have ruled himself out of contention in order to pursue a career in the European Parliament instead.

IHS Global Insight says: "With less than four months until Croatia is formally administered as a full member of the European Union, Ostojic's resignation is undoubtedly a blow to the coalition. However, it does not pose a threat to the government's stability or to the IDS's continued participation in government."