In January 2004 Balić was called up to play at the 2004 European Championship in Slovenia. Croatia had a good start in the group stage beating Spain and Denmark, and conceding a draw against Portugal. Croatia came all the way to the semi-finals where they lost against hosts Slovenia and finished fourth losing to Denmark in a third place game. Balić was included in the all-star team and was voted the best player and the best play maker at the tournament. In August of the same year Balić was selected to play at the 2004 Summer Olympics where the national team won first place. Croatia went undefeated through the tournament and Balić was selected in the all-star team and was the best play maker at the tournament. For winning the gold medal, all players were awarded the Franjo Bučar State Award for Sport yearly award. Balić won the award with the team, as he also won another yearly award by himself.