ZAGREB (Croatia), December 24 (SeeNews) - Croatian president Kolinda Grabar-Kitarovic handed local businessman Tihomir Oreskovic a mandate to form a government after a coalition led by the conservative party HDZ and the reformist MOST named him as their candidate for prime minister, local media reported. 

Oreskovic has 30 days to form a new government but the new ruling coalition believes the process will not take more than two to three weeks, news portal Vecernji.hr reported on Wednesday.

The president has convened an inaugural session of the new parliament on December 28.

Commenting on Thursday on the latest political developments, Erste Group said the inaugural session is crucial for the adoption of the 2016 budget, which, in their view, could be seen only in the second half of the first quarter of 2016.

Erste Group noted in a statement that although the recent political deadlock has come to an end, there are a number of uncertainties ahead.

The Croatian political system has no experience with non-partisan PMs, with no political authority and experience, the analysts commented. Secondly, the HDZ-led coalition, with the support of MOST and a few minor parties, controls 78 seats in parliament, which is only two seats above the minimal requirement for government formation and signals future tensions and potential instabilities, Erste explained. 

Thirdly, still unknown distribution of the economic-related ministries and suggestions for changes in the central bank make the country's future economic policy harder to predict, given that the MOST political programme contains some unconventional policy proposals, Erste also said, adding that the new political appointments could delay some ongoing processes and partially devitalize the functioning of public administration in 2016. 

"We are expecting a politically challenging period ahead but new rhetoric and public sentiment focused on reforms could bring some positive surprises in the mid-run," Erste concluded.

Following an inconclusive parliamentary vote in early November, several rounds of consultations with president Kolinda Grabar-Kitarovic for the formation of the country's new government failed to yield any results as no one secured enough support to get a cabinet mandate.

The Patriotic Coalition garnered 59 MP seats in the general elections, while the Croatia is Growing alliance, led by the ruling Social Democratic Party, secured 56 seats. MOST, a relative newcomer to the political scene, got 19 MPs, turning it into a potential king-maker after the two main political rivals rejected any talk of a grand coalition.