The arbitration concerens the two countries' borders, most notably in the Bay of Piran. Croatian Prime Minister Zoran Milanovic claimed the process had been 'contaminated' by contact between the Slovenian member of the panel and the Slovenian Foreign Ministry's delegate to the court. Slovenia wants the process to continue and accuses Croatia of acting in bad faith and itself contaminating the arbitration process by spying on both the court and Slovenia. The Croatian government maintains parliamentary support was not needed legally; the vote in the Sabor is intended to indicate national solidarity.
Croatia's withdrawal will destabilise the arbitration process and in effect end its work, even if Croatia cannot legally simply pull out.
If the process ends, Slovenia will again fail to establish direct access to international waters, after an unratified 2011 deal.
Croatia's withdrawal will encourage further border tensions in the region.
Antagonising international partners is especially risky for Croatia as its economy is precarious and likely to need assistance.
