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Romania and Cyprus said on Thursday (31 January) that they would not recognise a unilateral declaration of independence by Kosovo. "Cyprus, for reasons of principle, cannot recognise and will not recognise a unilateral declaration of independence", Cypriot foreign minister Erato Kozakou-Marcoullis was quoted as saying by French news agency AFP.

On the same day, Romanian president Traian Basescu made an even stronger statement after a meeting with NATO secretary-general Jaap de Hoop Schefferat in Brussels. "My country will not be able to recognise an independence proclamation by Kosovo on any level (...) whether coordinated or unilaterally proclaimed", he said according to Serbian news site B92.net.

The European Commission has praised the smooth changeover to the euro in the two newest eurozone member countries, Cyprus and Malta, while the effect on their overall inflation rates is to be evaluated later.

In comparison, the 2007 switchover to the euro in Slovenia was followed by higher prices for some services, such as restaurants and cafes. Meanwhile, figures late last year indicated a significant rise in overall consumer price inflation in the ex-Yugoslav country, with the commission predicting an average level of 3.5 percent in 2007 and 3.7 percent in 2008, compared to 2.5 percent in 2006.

Turkey intends to open up one port and one airport to trade from Cyprus, the EU's Finnish Presidency said. Turkish business has welcomed this as a positive step towards easing the current diplomatic impasse.

The European Union has taken a significant step towards deploying a 1,800-strong police and civilian mission in Serbia's breakaway province of Kosovo following a meeting of EU diplomats in Brussels on Monday.

According to one EU diplomat, Monday's decision on the so-called joint action marks "an important step" in the process of launching the mission. "90 percent of preparatory work has been done", the diplomat said. However, the operation does not enjoy the unconditional support of the entire 27-nation EU bloc. Cyprus took advantage of a so-called "constructive abstention" mechanism, meaning that Nicosia will not participate in the mission, but will not block it.

Cyprus has threatened to block an EU agreement on the fate of Turkey's membership talks if the union does not impose a new deadline on Ankara to normalise relations with Nicosia.

In this issue Enlargement high on EU agenda for 2008 too Mixed reception for Albanian local elections Turkey's pension reform is "in the right direction" Strategy for civil society in the former Yugoslav Republic of Macedonia EU support for upgrading Albania’s civil registration Helping Bosnia and Herzegovina in communications regulation Serbian wine sector gets EU assistance Discussions start in Vienna on Kosovo settlement proposal Cooperation in south east Europe border security Croatia in media freedom spotlight Student grant database for South-East Europe Positive prospects for Turkey and Western Balkans

In this issue > Croatia's progress measured at SAA Council Wallström visits Turkey for Women's Day EU awaits Serbia's new government Kosovo status discussions to move to New York Bosnia and Herzegovina to remain under surveillance Montenegro comes closer to EU EU assistance to Albanian justice system Improving policing of the former Yugoslav Republic of Macedonia Hopes of Cyprus breakthrough from a breach in a wall Rehn reminds the EU of its power to act EU foreign affairs ministers extend backing for ICTY "Boost EU commitment to Western Balkans", says paper Stability Pact successor takes shape EU Presidency comments on the ICJ Balkan genocide judgement

EU summit backs enlargement strategy European Union leaders gave their full backing to the enlargement strategy at their summit in Brussels on December 14. They looked forward to further rounds of accession negotiations with Turkey and Croatia before the end of the year. They confirmed the EU's vital role in assuring stability in the Western Balkans, and agreed to send an ESDP mission to Kosovo. And they agreed precise terms for the reflection group on the long-term future of Europe. This final issue for 2007 of Enlargement News provides highlights from the European Council, as well an update on other key enlargement-related developments. In this issue Endorsement for the enlargement strategy EU willing to send mission to Kosovo Progress on Turkey's accession negotiations Western Balkans "belong in the EU" Serbia invited to make "rapid progress" to EU Croatia "on track" towards EU membership SAA initialled with Bosnia and Herzegovina Albania makes progress, but governance and rule of law require further efforts The former Yugoslav Republic of Macedonia must accelerate the pace of reform Montenegro entering "critical phase" Limited remit for Reflection Group EU allocates pre-accession assistance to candidate countries Rehn contrasts past and present of EU foreign and security policy Turkish Students win trip to EU

- The main tasks of Kosovo's new embassy in Brussels will be to lobby the EU for wider recognition of the country's independence and to raise awareness of Serbia's attempts to sabotage the young state, Kosovo envoy Ilir Dugolli told EUobserver. "Negotiating the question for more recognition of Kosovo is the absolute priority. In the case of the EU, all the other steps go through this step. You cannot really make much progress in negotiating with the EU unless this hurdle is overcome," Mr Dugolli said. "That for some time will continue to exhaust a considerable part of our energies."

The Balkan country proclaimed independence from Serbia in February and has been recognised by 21 out of 27 EU members, with Cyprus, Greece, Romania, Portugal, Spain and Slovakia holding out for now. The partial recognition means that Kosovo cannot establish formal legal relations with the EU or launch a feasibility study for a future Stabilisation and Association Agreement.

Mr Dugolli also plans to keep the EU institutions informed about Serbian attempts to sow division in Kosovo. Belgrade is currently opening new "Co-ordination Centres" in ethnic Serb enclaves that could act as rallying points for anti-government opposition.

An EU study on Kosovo's bid to join the bloc is being hampered by the reluctance from member states that have not yet recognised Kosovo's independence, Balkan Insight has learnt.

The possibility of starting a 'feasibility study' for Kosovo next year was discussed at the European Union Foreign Ministers' meeting in Brussels on Monday.However it emerged after the meeting that the word 'feasibility' has been omitted from the study the bloc will conduct for Kosovo next year, throwing into doubt whether Kosovo can take the first steps towards EU membership.

Sources told Balkan Insight that the removal of the word 'feasibility' came at the insistence of those EU countries that have not recognised Kosovo, who argue that 'feasibility study' refers to states. Those countries argue that every definition that refers to Kosovo's ‘statehood’ is not acceptable, sources said.Spain, Greece, Romania, Slovakia and Cyprus, are reluctant to recognise Kosovo which unilaterally declared independence on February 17 this year.The most outspoken country from this group is Spain which allegedly always objects to any EU or NATO initiative on Kosovo, which refers to it as a state.

One year after Kosovo declared independence from Serbia, MEPs on Thursday (5 February) called on all EU countries to recognise Europe's newest state. The European Parliament "encourages those EU Member States which have not already done so to recognise the independence of Kosovo," reads the resolution adopted by MEPs in Strasbourg today.

The document was approved by a large majority - 424 MEPs voted in favour, 133 - against, while 24 abstained. Kosovo declared unilateral independence from Serbia on 17 February last year and it has so far been recognised by 54 states worldwide, including the US and most EU countries. To date, five EU member states – Romania, Slovakia, Greece, Cyprus and Spain – have not recognised its independence. In the resolution, the parliamentarians also welcomed the "successful deployment" of the European police and justice mission EULEX to Kosovo. After having faced numerous delays, EULEX entered its operational phase two months ago – on 9 December – taking over police, justice and customs tasks from United Nations personnel in Kosovo.

Meanwhile, officials and legal professionals in Kosovo have said say they find the EULEX-operated courts better than UNMIK's judicial authorities, according to news portal Balkan Insight. "There are great differences from the previous judiciary," Osman Kryeziu, chief prosecutor in Pristina's District Court, was quoted as saying. "There's less bureaucracy, more cooperation and commitment to work. EULEX judges have a completely different working culture," he added. For his part, Azem Vllasi, a lawyer in Pristina who worked in both the UNMIK and EULEX judicial systems, as well as in the local one, told Balkan Insight that EULEX was already proving to have the most professional one. "My experience shows there are essential differences. There is more professionalism and greater obedience to the law and regulations [with EULEX]," Mr Vllasi said.

European Union member states are sharply divided over whether to condemn Israel for its bombing of UN schools and other buildings during its 23-day war on Gaza. Germany, Italy, the Netherlands and Romania are opposed to condemning the shelling of UN Relief and Works Agency infrastructure and do not want the EU to call for an international investigation of alleged war crimes by both Israel and the Hamas governors of Gaza, according to sources close to discussions amongst EU diplomats.

At the other end of the table, a coalition of five member states, Belgium, Cyprus, Greece, Ireland and Sweden, is demanding that the bloc call for an international investigation in its conclusions to come out of a meeting of EU foreign ministers next week.

Kosovo is set to seek "clear signals" on its eventual membership prospects as early as next week's meeting EU foreign ministers in Luxembourg (28-29 April) - something that could cause a political headache, given that a number of EU member states refuse to recognise the infant country. Cyprus, Greece, Romania, Spain and Slovakia are seen as most reluctant to approve Kosovo's unilateral move towards independence.

EU foreign ministers are next week also due to discuss Serbia's EU bid, currently hanging by a thread.

The European Commission has recommended sanctioning Turkey for its stance on the Cyprus issue by suspending parts of Ankara's EU accession talks, in a move sparking immediate political debate among EU member states.

Talks between the EU and Turkey on how to solve the Cyprus impasse broke down without agreement on Monday with the Finnish EU presidency saying it does not believe it can broker a solution on the issue during its presidency of the EU. >