section_path: First term as Leader of the Opposition (2007–2011)
section_name: First term as Leader of the Opposition (2007–2011)
paragraph_text: First term as Leader of the Opposition (2007–2011)
  
  With 56 seats won, SDP emerged from the 2007 election as the second largest party in Parliament and the largest party that is not a part of the governing majority. This made Milanović the unofficial leader of the opposition. Milanović was very critical of the Sanader administration, especially concerning their handling of the economy and the fight against corruption.
  
  In September 2008, Milanović made a highly publicized visit to Bleiburg to commemorate the victims of the Yugoslav Communists. This made him the second leader of the Social Democratic Party of Croatia to visit the site, the first being Ivica Račan.
  
  The 2009 local elections were held on 17 and 31 May and resulted in the Social Democrats making considerable gains in certain traditionally HDZ-leaning cities and constituencies, such as Dubrovnik, Šibenik, Trogir and Vukovar, as well as retaining such major traditionally SDP-leaning cities as Zagreb, Varaždin and Rijeka.
  
  On 1 July 2009, Ivo Sanader announced he was resigning the premiership and leaving his deputy Jadranka Kosor as prime minister. Parliament approved her and the new cabinet which made Kosor the first Croatian woman ever to be appointed prime minister. Since late 2008, the SDP had been leading the polls, however by a narrow margin. After the sudden resignation of Sanader HDZ plummeted in the polls to their lowest level since 1999 when corruption scandals were rocking the party establishment. Milanović insisted the resignation of the prime minister means that an early general election was necessary. The governing majority refused to dissolve Parliament and insisted that the Kosor cabinet would finish the remainder of its term.
  
  In 2008 the country's accession to the European Union was deadlocked with the Slovenian blockade over a border dispute. Sanader and his Slovenian counterpart Borut Pahor were unable to settle their differences in the following months which meant Croatia's accession to the European Union was in a standstill. There was much speculation, since Sanader had not given a reason for his departure, whether the Slovenian blockade was the cause for his resignation. In the following months Kosor and Pahor met several times, trying to resolve the border dispute. The negotiations resulted in an agreement which led to the continuation of negotiations for the Croatian accession to the European Union. The solution was an Arbitration Agreement which was signed in Stockholm on 4 November 2009, by both countries' prime ministers and the Swedish Prime Minister Fredrik Reinfeldt. The agreement required a two-thirds majority in Parliament for it to be approved. Milanović and most SDP MPs voted in favor of the agreement, however he criticized the Government and especially its former and present leaders, Sanader and Kosor, for wasting precious time since the arrangement with Slovenia could have been made a year earlier and Croatia would not have waited so long to continue with the accession process.
  
  The 2008 financial crisis affected most European countries, including Croatia. Industry shed tens of thousands of jobs, and unemployment soared. Consumer spending reduced drastically compared to record 2007 levels, causing widespread problems in the trade as well as transport industries. The continuing declining standard resulted in a quick fall in both the prime minister's as well as government's support. Milanović was very critical of the Government's supposed slow response and inadequate measures that did little to revive the economy. The recession and high unemployment continued throughout 2011 resulting in many anti-government protests around the country.