Croatian policemen escort former top Croatian spy Josip Perkovic (L) after questioning by the County Attorney in Zagreb on January 1, 2014.

Police arrested on Wednesday a former top Croatian spy sought by Germany whose case sparked a row between the European Union and its newest member, his lawyer said.Josip Perkovic, a former Yugoslav secret service agent and Croatia's ex-head of intelligence, was arrested as the country lifted a limitation it had imposed on extraditions within the EU, with effect from January 1.He is wanted for involvement in the 1983 murder of a Croatian dissident in Germany.Perkovic will oppose extradition to Germany, the lawyer Anto Nobilo told national radio, adding that a Zagreb court would rule within eight days on the extradition.The former spy's case sparked a dispute between the European Union and its newest member Croatia right after it joined the bloc.Three days before joining on July 1 Croatia changed its law on the use of the European Arrest Warrant (EAW), which regulates extradition between EU member states.The law made it impossible to extradite persons wanted for crimes committed before August 2002 - the date the EAW was introduced.The move left the Balkan country sharply at odds with its 27 partners, notably Germany which was seeking Perkovic's arrest. Following the dispute with Brussels Zagreb eventually amended the law in October.

Local media and some analysts have speculated that Zagreb was reluctant to extradite Perkovic as he may hold compromising information on influential people within Croatian politics and society.The government has denied its change to the law was connected to his case, saying its intention was to protect veterans of the 1990s independence war from being investigated by the EU.