the vice-president of the HDZ party between 1995 and 1997, and from 2002 up to 2009 when she became the president of the party. In 2003, she became the minister in the Croatian department for Family, Veterans and Inter-generational Solidarity in the Croatian Government of Ivo Sanader. HDZ nominated her as their presidential candidate for the presidential election of 2005. In the first round, she overtook Boris Mikšić by a few percent to reach the second place. She then faced off Stipe Mesić in the second round, but lost. In July 2009, she was politically installed as the head of the Croatian Democratic Union following the resignation of Ivo Sanader. Prime Minister On 1 July 2009, Croatian Prime Minister Ivo Sanader suddenly and unexpectedly resigned, and suggested Kosor as the next prime minister. With the support of the coalition partners Kosor went to the President Stjepan Mesić who invited her to form a government. This resulted in the formation of the Kosor cabinet which contained most members of the previous Sanader administration. On July 6, Parliament approved the proposed cabinet with 83 votes in favor out of 153 members and Kosor was confirmed as the first female Prime Minister of Croatia after independence - actually the third in the history of the republic after two female Prime Ministers of Socialist Republic of Croatia. The Opposition was not pleased with this development calling Sanader a coward and Kosor his puppet saying that an early general election was necessary. Domestic policy In the first month of her term Kosor, faced with a huge deficit and high unemployment, introduced an emergency budget aimed to reduce spending and the national debt. One of the most unpopular austerity measures taken along with the introduction of the budget was a new income tax called the "crisis tax" (). In addition, the value-added tax rate was increased from 22% to 23%. Businesses criticized the tax hikes as well as the idea of tax code changes in the middle of the fiscal year as an unreasonable burden, while independent economists mostly noted how new taxes would cut consumer spending and further slow down the economy. The Opposition criticized the new measures heavily, calling the crisis tax harač, a historical Turkish loanword representing a tax implemented during the Ottoman Empire in the late Middle Ages. Indeed, the government's handling of finances was unpopular among the public resulting in the