Brussels - Negotiations on Croatia's entry into the European Union have entered their final stretch, but the rest of the Balkans still face a long road ahead, according to the bloc's annual enlargement report, published Wednesday.

Croatia became an EU candidate country in June 2004 and began accession negotiations in October 2005.

Officials on both sides had hoped that they could conclude membership talks this year and bring Croatia into the bloc in 2010.

Despite a border row with Slovenia which deadlocked talks for much of 2009, "technical preparations in the negotiations are now nearing their final phase", the report states.

Nonetheless, further reforms are needed, most notably in the fields of the judiciary and fundamental rights, competition, and transport, it says.

The picture is less rosy for the rest of the Balkans.

Progress in Bosnia-Herzegovina, for instance, has been paralysed by internal feuding between its different ethnic factions.

The country's leaders last weekend rejected a constitutional reform plan submitted by the EU and the United States.

"A shared vision on the direction of the country remains necessary for the smooth operation of institutions, for creating more functional and efficient State structures, and for speaking with one voice on EU and international matters," the EU report notes.

Serbia signed a Stabilisation and Association Agreement (SAA) - a precursor to EU membership - in April 2008. But the agreement is likely to remain frozen until Belgrade is able to convince the Netherlands that it is seriously cooperating with the International Criminal Tribunal for the former Yugoslavia (ICTY). This means handing over war-crimes suspect Ratko Mladic.

The EU report also calls for further reforms in Albania, Kosovo, Macedonia, Montenegro and Turkey.

EU Enlargement Commissioner Olli Rehn was expected to provide further details about the candidate countries' aspirations during a press conference scheduled for later in the day. (dpa)