Croatian lawmakers have voted to dissolve Parliament, paving the way for early elections after the government fell in a no-confidence vote last week.

Legislators on Monday voted with 137 in favor of dissolving Parliament, two against and one abstention.

The move follows weeks of political deadlock which has stalled economic reforms in the European Union's newest member country.

The dissolving takes effect on July 15, which means new elections could be held in early September.