Croatia starts new talks on road to EU membership

BRUSSELS, April 21 (Reuters) - Croatia moved a step further towards joining the European Union on Monday when it opened talks on transport and energy with the 27-nation bloc.

The former Yugoslav republic, which began entry talks in 2005, needs to conclude negotiations in 35 policy areas, or chapters, to be admitted to the EU.

But progress has been slow, with only two negotiating chapters agreed so far -- science and education -- and talks not yet opened on a further 19 policy areas.

"The aim of the conference (a meeting with Croat officials) was to open negotiations on two further new chapters," EU governments said in a statement.

The executive European Commission has said it hopes to wrap up accession negotiations with Croatia before European parliament elections in June 2009, provided Zagreb meets all key benchmarks by the end of June this year.

To conclude negotiations on transport, Croatia must establish an effective railway regulatory body, ratify and implement the European Common Aviation Area agreement, and adopt EU-style rules for professional drivers.

On energy, the Balkan country must approve a new mining act to bring its law in line with EU rules on exploration and production of hydrocarbons as well as implement the bloc's regulation on electricity and gas markets.

In line with recent EU decisions for its members, Croatia should also set targets to increase the proportion of electricity produced from renewable energy sources to 20 percent by 2020 from 7 percent. (Reporting by Marcin Grajewski; Editing by Chloe Fussell)