Orban said that such a scenario would be unfavourable for Croatia and for Serbia, adding that it would be a big mistake and that it had nothing to do with reality.

He made this statement in the European Parliament where a two-day joint parliamentary meeting entitled "Western Balkans - Towards an Integrated Europe" is being held.

Orban is the first European official to publicly state that there is speculation that the EU should hold off the closure of Croatia's entry talks until Serbia is granted the candidate status, which can take place in December at the earliest.

The closure of entry negotiations and membership should be based on the results of a candidate country. This is Hungary's position and this is why we ask that the negotiations with Croatia be wrapped up as soon as possible, Orban said.

The Hungarian PM said Croatia could be a role model for other countries in its neighbourhood and proof that the European prospects were palpable. He advocated the EU entry of all Western Balkan countries once they meet the criteria.

The conference was also addressed by European Commission President Jose Manuel Barroso.

Barroso said that the Croatia's coming EU entry should serve as a catalyst so that the entire region could steadily draw closer to the bloc.

He stressed that 2011 was the year of challenges and opportunities for the region.

At this moment, Croatia's entry talks have entered the final stage and Montenegro and Serbia are in a position to enter the next phase of the negotiations if they maintain the same pace in reform implementation until October, Barroso said.

He reiterated the position he made in the Croatian parliament last week that a country must be entirely ready for entering the EU.