Berlin - Slovenia hopes EU mediation will help resolve its border dispute with Croatia, Slovenian Prime Minister Borut Pahor said Tuesday after talks with German Chancellor Angela Merkel.

Finland's former president Martti Ahtisaari, who mediated in the Kosovo dispute, has been proposed to head the demarcation talks.

The border issue, which dates back to 1991 when the two republics declared independence from Yugoslavia, has stalled attempts by Croatia to move towards EU membership.

"The problem has to be resolved. The quicker the better," Merkel said after the talks in Berlin.

Pahor also called for speedy action, saying "the right steps have to be taken soon."

Slovenia's parliament has to approve any deal to resolve the issue by a majority of 75 per cent. (dpa)