Belgrade expects that the Croatian government will now be willing to discuss the possibility of an out-of-court settlement after refusing for years to discuss the issue.

"The verdict, which we expect to become final soon, on the joint criminal enterprise against the Serbs, which was organised and directed by the Croatian leadership at the time, is a strong argument in favour of the Serbian defence and our counter-suit to the charge of genocide filed by Zagreb," the State Secretary with the Serbian Ministry of Justice, Slobodan Homen, told Vecernje Novosti.

He said that the Hague tribunal's verdict "substantially reduces the chances of Croatia winning the case before the ICJ" and "they are becoming aware of it."

The Croatian authorities certainly did not expect such a verdict from the Hague tribunal, and if they had, they certainly would have considered withdrawing their lawsuit earlier and would not have submitted to the ICJ in December an extensive response to the Serbian counter-suit, Homen said.

"I expect Zagreb to finally soften its stance, because this verdict has provided a strong wind to the sails of our counter-suit and it would be better for Croatia to agree to the withdrawal," he said, adding that otherwise the dispute could drag on for years.

Vecernje Novosti said that the government in Zagreb would first use all means available to refute the verdict against the generals, adding that Prime Minister Jadranka Kosor on Monday announced a diplomatic offensive as part of which a study was distributed to foreign embassies and diplomatic missions denying the theory of a joint criminal enterprise.