The circumstances under which the elections took place were extraordinary - one third of the country was occupied by
Krajina forces, while Croatia itself was involved in war raging in neighbouring
Bosnia and Herzegovina. Few people, however, doubted their legitimacy because the old Parliament, elected under the old Communist Constitution and in a time when Croatia had been part of
Yugoslavia, clearly didn't correspond to the new political realities. Although the new Constitution called for two houses of Parliament, only one - House of Representatives - was elected. New electoral laws, written by
Smiljko Sokol, were passed and a new
voting system - combination of
first past the post and
proportional representation was introduced. 60 members were to be elected in individual constituencies while 60 seats were to be distributed among those candidates' lists who broke 2% threshold. 12 seats were reserved for expatriate Croatians, while the Parliament had to have at least 15 members belonging to ethnic minorities - 11 Serbs and 4 others.
Franjo Tudjman and his
Croatian Democratic Union party entered the campaign with great confidence, because Croatia, despite being partially occupied, had won independence and international recognition under his leadership. State-controlled media at the time presented the war as practically won and peaceful reintegration of Krajina a mere formality that would occur in very foreseeable future. However, the very same period saw the emergence of opposition to Tudjman's regime, centred mostly around politicians and parties who criticised Tudjman's conduct of war and found the government to be too appeasing towards the international community and the Serbs. Other opposition leaders were troubled by Tudjman's autocratic tendencies and visible decline of democratic standards in Croatia. The
Social Democratic Party of Croatia, which was nominally the main opposition party, based on its representation in the old Parliament, was in comparison somehow friendly towards Tudjman. This could be explained with its precarious position - it lost most of its membership to defections, many of its disgruntled voters defected to other parties, while many Croatians associated that party with Communism. Many analysts and opinion polls believed SDP would fail to break the 2% threshold. The opposition was very vocal, but it was also disunited - which was most evident in the rivalry between two liberal parties -
Croatian Social Liberal Party and
Croatian People's Party. ==Conduct==