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In [[1980]], after Tito's death, political and economic difficulties started to mount and the federal government began to crumble. Inflation soared, and reforms failed. In [[1990]], the Croatian Democratic Union (HDZ) led by [[Franjo Tudjman|Franjo Tuđman]] won the first free postwar elections. Opposition to the Belgrade regime was on the rise.
Croatian emigres, a lot of which were descendants of the [[Ustase|Ustaša]] from WWII that managed to escape, financially supported the election of [[Franjo Tudjman|Franjo Tuđman]]. Serbs, who constituted 12% of the population of Croatia and who had enjoyed [[Position of Serbs in Croatia|disproportionate influence]] through their large membership of the League of Communists in Croatia rejected and feared the loss of influence represented by an independent Croatian state. Memories from WWII were manipulated and abused by the increasingly militant Belgrade regime of [[Slobodan Milosevic|Slobodan Milošević]] in order to create a war climate.
Milošević was riding the wave of Serbian nationalism, sparking fear across [[Yugoslavia]].
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