Second Sanader government (2008–2009)
Despite this defeat, the first Sanader-led government was able to survive until the end of the legislature. The subsequent parliamentary election in late November 2007 saw the HDZ hard-pressed both by the SDP-led leftist coalition and by the extreme right-wing Croatian Party of Rights and Croatian Democratic Assembly of Slavonia and Baranja.
During the electoral campaign, a vigorous and sometimes ruthless reaction from the party and Sanader himself, together with some capital errors from SDP, convinced part of the far-right electorate to support the HDZ to prevent what they perceived as the heirs of the former communist party to return to power. The party won a majority of both seats and votes in the election, and the first session of the newly elected parliament was called for 11 January 2008. However, the SDP repeatedly refused to acknowledge defeat, claiming that they had the most votes if the diaspora ballot was not taken into account. The HDZ gained the support of the "yellow–green coalition" (HSS-HSLS) and of the HSU and national minorities representatives; Sanader formed a second government.
In the local elections held in May 2009, the HDZ, against all expectations, managed to grow again, coming ahead of the SDP. However, HDZ support did weaken in the larger cities.
On 1 July 2009, Ivo Sanader abruptly announced his resignation from politics and appointed Jadranka Kosor as his successor. She was confirmed as the new leader of the party on 3 July and was appointed by president Stipe Mesić as the prime minister-designate. Two days later the Sabor confirmed Kosor as the new prime minister, the first woman to hold the position.
In the same resignation speech, Sanader also appointed Andrija Hebrang, who had formerly held the posts of defence minister and health minister, as HDZ candidate for the incoming presidential election, decreasing any speculation about his own ambitions for that position.
The "Fimi media" was a corruption scandal which resulted from former Prime Minister Ivo Sanader stealing money from the state budget. USKOK has charged former Prime Minister Ivo Sanader, Fimi media CEO Nevenka Jurak, former treasurer of the Croatian Democratic Union Mladen Barišić, former spokesperson of the Croatian Democratic Union Ratko Maček and former chief accountant Branka Pavošević with damaging the state budget by 70 million kuna or approximately 9 million euros.
