Brussels- Croatia has made good progress, but still has much to do in the fields of judicial reform and competition before it can start European Union membership talks next year, European Commission President Jose Manuel Barroso said Tuesday.

Barroso was speaking after a meeting in Brussels with Croatian Prime Minister Ivo Sanader.

"I congratulated the prime minister and his government for the good progress in the (EU) accession negotiations over the past months. Of course, there is still much work ahead," Barroso said.

The head of the EU executive also singled out the need for Croatia to improve its fight against corruption and restructure its shipbuilding industry, which has been enjoying state aid.

Sanader responded that his government was already moving towards the privatization of its shipyards through a tender process.

The European Commission is due to publish its latest enlargement report in November, but Barroso said it was still too early to say whether Croatia might be given a "roadmap" for EU membership by then.

The timing of the various reforms that Croatia needs to approve before membership talks can begin are "mainly in the hands of Croatia," Barroso said.

Sanader said his government was fully aware of the work that needed to be done, and expressed his confidence that Croatia could end the negotiations by next year.

Given the time needed for current member states to ratify its application, Croatia is hoping to become the EU's 28th member state by 2011. (dpa)