"This is the finalisation of a process. This is Croatia, a strong Croatia that can comply with the highest standards. Croatia which is currently in a stronger but not in a dominant position in relation to other countries in the region, compared to what was in the last 50 years. This brings advantages and also responsibilities.," Milanovic said at the start of Thursday's meeting of his cabinet.

He urged those "who have shown emotionally charged reaction, being hurt, to understand that the rule of law must be complied with".

What the state had to do in Vukovar should be perceived as the final act of the process of reintegration and integration of Croatia into Vukovar, Milanovic said.

Croatia can now and must comply with higher standards, he said.

"What we are now doing, we are doing in good faith with no pressure from outside. For the first time in twenty and odd years, such steps forward are taken only by our will," the Croatian premier said.

He added that "the European Commission, for the first time and in an unusual way to some extent, has distanced itself from this" and the placement of dual-alphabet signs was for the sake of Croatian society and not for the purpose of commendations from abroad.

"Croatia is the country and the mother of all its citizens, no matter which alphabet they use and regardless of their ethnic background," the premier said.