The Czech EU presidency has decided to cancel the intergovernmental accession conference with Croatia planned for June 26.

Despite substantial efforts to facilitate a solution to the country´s border dispute with Slovenia, Croatia´s accession talks remain blocked and no new chapters can be formally opened or closed.

The border dispute remains a bilateral issue only Slovenia and Croatia can resolve. The presidency deeply regrets the fact that despite numerous attempts by the presidency and the European Commission to help find a way forward the negotiations have not progressed.

Agreement on technical level has been reached during the Czech EU presidency on provisionally closing Chapter 6 (Company Law) and Chapter 18 (Statistics) and opening Chapter 4 (Free Movement of Capital) and Chapter 16 (Taxation). In these chapters the border issue remains the only obstacle.

The lack of formal progress in the negotiations with Croatia therefore does not match the actual progress achieved on ground by Croatia.

Slovenia has viewed EU mediation as a way to resolve the row, but Croatia considers it simply a stepping stone to a resolution before the International Court of Justice in The Hague.

A key point for Slovenia is securing free access to international shipping waters by getting a corridor that would cross Piran Bay, which is currently controlled by Croatia.

On Monday, Swedish Foreign Minister Carl Bildt, whose country takes over the EU presidency on July 1, called for "a period of reflection in both countries", and said Sweden would not propose any initiatives until the sides were ready.

The next presidency of the EU does not plan on offering new mediation attempts to solve the border dispute between Zagreb and Ljubljana.

Bildt explained that the dispute between Croatia and Slovenia "is a bilateral dispute and the responsibility rests with the countries themselves, who in our opinion should not stop negotiations to join the EU, but in effects that is what happened".

After a failed mediation attempt by Enlargement Commissioner Olli Rehn, the upcoming Swedish presidency of the EU believes that "the time has come for the two countries to reflect on the issue", and then "at some point" the results of such reflection will be taken into consideration.

On Tuesday, during a meeting of the task force for enlargement in Brussels, Slovenia did not greenlight the closing of negotiations on the "Statistics" chapter with the same explanation provided for blocking the previous 12 chapters, namely that in its accession documents, Croatia is prejudging a solution to its border dispute with Slovenia.

Slovenia is now blocking the opening of negotiations on nine and closing on four policy chapters.