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imageZAGREB: Croatia's Deputy Prime Minister Tomislav Karamarko was caught in a conflict of interest in relation to his wife's business ties with a consultant working for Hungarian energy group MOL, a state monitoring body said on Wednesday.

"By expressing his personal views and suggestions on Croatia's withdrawal from arbitration with MOL, we found that Karamarko was in a conflict of interest" said Dalija Oreskovic who heads the state commission on such cases.

MOL and Croatia jointly run the country's energy firm INA but are at odds over management rights and investment policy.

Karamarko's case is at the heart of a political row between the main partners in the ruling centre-right coalition that has brought the government to the brink of collapse.

A no-confidence vote against technocrat Prime Minister Tihomir Oreskovic is expected to be held on Thursday.

Copyright Reuters, 2016

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