The previous elections were a close race between the two major political alliances and resulted with Ivo Sanader winning a second term as Prime Minister.

Sanader and his Slovenian counterpart Borut Pahor were unable to settle their differences in the following months which meant Croatian's accession to the European Union was in a standstill.

The new premier, faced with a huge deficit and high unemployment, introduced an emergency budget aimed to reduce spending and the national debt.

The Opposition accused the Prime Minister for political responsibility claiming that it was impossible that Kosor didn't know what was happening around her when she was a Vice President of the government almost seven years before becoming premier.

He accused Kosor and the members of the HDZ Presidency of failed leadership citing Andrija Hebrang's poor result in the first round of the presidential election held just a week earlier.

Most political pundits as well as the majority of the public believed the true reason of Sanader's surprise return was fear that he would eventually be tied with the numerous corruption scandals which have emerged since he left office.

[11] On 15 April former Croatian general Ante Gotovina was sentenced to 24 years in prison by ICTY after being found guilty of war crimes during Operation Storm.

Investigations on the governing party's 'black funds' intensified in 2011 after former HDZ treasurer Branka Pavošević testified to USKOK about the illegal finances used for previous elections, including Jadranka Kosor's own 2005 presidential campaign.

[15] President of the Republic Ivo Josipović agreed to a dissolution of Sabor on Monday, 31 October and scheduled the election, as previously suspected, for Sunday 4 December.

In such cases they are required by law to put their parliamentary mandate on hiatus for the duration of their other term in office and their seats are then taken by party-appointed deputy MPs.

[14] The stagnating economic recovery and high unemployment numbers caused by the policies of the Governments of Ivo Sanader and Jadranka Kosor in the past eight years, as well as multiple corruption scandals and a former leader on trial marked the party's campaign.

[28] Due to outdated laws Zoran Milanović and Jadranka Kosor, the only two people with a realistic chance of winning the Premiership, were unable to exchange ideas and arguments in a debate.

The Opposition was persistent in accusing the governing coalition for increasing the country's debt to unprecedented levels as well as being unable to bring new investors and grow entrepreneurship.

Despite fresh and respected faces like Đuro Popijač, Martina Dalić and Domagoj Milošević becoming named ministers in charge of recovering the economy, all sectors saw declines in growth and many factories went into bankruptcy with unpaid workers taking their dissatisfaction to the streets.

Finally, on 27 October, only three weeks before the start of the official campaign, the offices of the Attorney General and USKOK announced HDZ was a party under investigation for organizing with the purpose to commit crime.

[14] Opposition MPs, such as Željko Jovanović of SDP who was famous for his claim that the head of HDZ was a criminal organization, demanded the truth about such things as Jadranka Kosor's own failed presidential candidature which was suspected to be financed by 'black funds'.

Their main message was that a party can't share collective blame, but that guilt should be placed on individuals who benefited from criminal activities.

Four years ago exit polls showed SDP leading, however by a narrow margin, but HDZ ultimately won 5 seats more in the ten districts.

Indeed, many members of the winning coalition were employing the press and their supporters to wait for official results, but claimed the difference between the two alliances was too great to be overcome.

It won 6 seats, an unusual feat from a party outcast in a country with a stable political system where independent newcomers rarely win a significant proportion of the vote.

Another surprise was the independent candidate Ivan Grubišić, a former Roman Catholic priest who ran on a campaign of restoring ethics and integrity to politics.

HDZ, after eight years in Government and 20 as the largest single party, received an historic blow with only 44 seats, two less than the 2000 election loss, and only 23.5% of the popular vote, their lowest share yet.

HDZ didn't even contest the election individually, as in 2000, but in coalition with the mayor of Split Željko Kerum's Croatian Citizen Party and Vesna Škare Ožbolt's Democratic Centre, which won 2 and 1 seats respectively.

In fact, two ministers from HSS, serving since the last election, Damir Bajs and Božidar Pankretić both failed to cross the threshold in their respective units.

Jadranka Kosor, the leader of HDZ, decided to break tradition and spoke to the crowd gathered in Meštrović Pavilion, where the party was watching the returns, only 15 minutes before midnight.

Without congratulating her opponent, or acknowledging criminal activities that had diminished the party's reputation, she claimed HDZ would return stronger than ever and win the next general election, whenever it would be held.

[39] Members of Civic Action, a non-governmental organization usually very critical towards the governing party, gathered in front of the pavilion and lit candles, insinuating the death of HDZ.

[40] After midnight, when more than 50% of the vote was counted and it was obvious he had won a clear majority, Prime Minister-to-be Zoran Milanović spoke to the crowd promising a fairer, more transparent and more modern government.

Unlike his counterpart, he thanked Kosor and her associates for their service and urged all parties with Croatia's best interest at heart to work together to overcome the difficult days facing the country.

[43] The transition to power occurred the following evening when Jadranka Kosor welcomed Milanović to the government's official meeting place, Banski dvori, opposite the Sabor building on St. Mark's Square and handed him the necessary papers and documents.