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Croatia is almost there but it would take at least 2 more years of monitoring and ratification by the existing EU member states to become the 28th member of the European Union. But the country passed a big hurdle as the European Commission has decided to recommend Croatia to the EU member states. "The European Commission has just proposed... to close the last four chapters in the accession negotiations with Croatia," the European Commission President Barroso said in a statement.  Mr. Barroso's statement came following successful completion of talks on reforming the Croatian judiciary which was a sensitive issue.

Serbia's president on Saturday warned the financial crisis gripping Europe must not be allowed to derail the Balkans' hopes of joining the European Union, ahead of a crunch summit with the bloc."The policy of the European Union's enlargement must not be interrupted at any price," President Boris Tadic told a conference of regional leaders, held in Sarajevo ahead of a vital EU-Balkans summit on June 2.

Tadic was meeting with Croatian President Ivo Josipovic, Montenegrin President Filip Vujanovic and their colleagues from the Bosnian tripartite presidency, namely Muslim leader Haris Silajdzic.Officials and media across the Balkans have expressed concern that the ongoing debt crisis could slow down the enlargement process, with new members perceived as a potential threat to the bloc's financial stability.

Serbia took a step forward yesterday (14 June) on the road to joining the European Union, with EU governments rewarding its improved cooperation with the UN war crimes tribunal for the former Yugoslavia.

EU foreign ministers agreed at a meeting in Luxembourg to start implementing an accord with Serbia known as the Stabilisation and Association Agreement (SAA), a prerequisite of any further assessment of a country's prospects for membership.The decision follows a positive assessment of Belgrade's assistance given to the International Criminal Tribunal, and bolsters Serbia's efforts to shake off international isolation following wars in the aftermath of the collapse of Yugoslavia.

Background Belgrade was offered the chance to sign an EU-Serbia Stabilisation and Association Agreement (SAA) in April 2008, as the Union moved to boost pro-European forces ahead of crucial national elections (EurActiv 30/04/08). Serbia ratified the SAA in September 2008 (EurActiv 09/09/08). However, the agreement is yet to enter into force, leading the European Commission to consider a membership application as premature. On the EU side, the Dutch government's attitude has been the only remaining obstacle to the implementation of the SAA. Some EU member states have been pushing for the SAA to be ratified since the capture of war criminal Radovan Karadzic in July 2008 (EurActiv 22/07/08). But Dutch officials insisted they will only withdraw their veto once two other wanted war criminals have been arrested and handed over to the International Criminal Tribunal for the former Yugoslavia (ICTY). They also said they were awaiting confirmation from the tribunal's chief prosecutor Serge Brammertz of Belgrade's full cooperation with the court.

According to reports, Macedonia is close to finding a formula to defuse its long-standing name dispute with Greece, which has prevented the former Yugoslav republic from starting EU accession talks and has kept it outside the NATO alliance.

However, it remains to be seen whether Skopje will agree to use its new name erga omnes – meaning in the country's "relations with everyone". So far, Skopje has insisted that the name Macedonia could be kept "for internal use" and that countries which have recognised Macedonia with its constitutional name would continue to use it.It also remains unclear whether Macedonian citizens could continue to be referred to as 'Macedonians' or 'Macedonians of Vardar' instead. A 'dual use' would help Skopje avoid having to amend its constitution and change all its national documents, including passports. Greece does not recognise Macedonian passports and until recently issued visas to their nationals on a separate sheet of paper.

European leaders have finally given the green light for Iceland to begin EU accession negotiations, but the Dutch Prime Minister has indicated it will be hard for the country to join if it does not pay for losses incurred in the Icelandic banking collapse. Mid-afternoon on Thursday (17 June), the summer European Council in Brussels signed off on language approving the start of official talks. The British and the Dutch insisted however on wording that made implicit mention of the ongoing banking dispute.

On his first tour of the Western Balkan, European Council President Herman Van Rompuy condemned the recent violence in Kosovo and called for restraint and dialogue. An extraordinary session of the UN Security Council will be held on the matter today (6 July).

Serbia unhappy with pace of EU integration Later in the day, Van Rompuy met with Serbian President Boris Tadić in Belgrade. According to an official communiqué, the two leaders discussed the situation in "Kosovo and Metohia," as Belgrade officially calls its former province. The press also reported that Tadić will attend an extraordinary session of the UN Security Council in New York today, called at the initiative of Serbia. According to the statement, Tadić voiced his dissatisfaction with the slowdown in the European integration process, and insisted that speeding up Serbia's EU accession was crucial for the future of the Western Balkans. Last month, Serbia took another step towards EU integration when EU foreign ministers agreed to start implementing an accord with Serbia known as the Stabilisation and Association Agreement (SAA). The agreement had been blocked for several years, mainly as a result of the Netherlands' insistence that Belgrade must cooperate fully with the UN war crimes tribunal for the former Yugoslavia. Later today, Van Rompuy will be in Pristina to meet the president of Kosovo, Fatmir Sejdiu. A visit to the headquarters of the EU's rule of law mission in Kosovo, EULEX, is also on the agenda.

Pristina expects the decision of the International Court of Justice (ICJ) in The Hague, which is expected shortly, to be "balanced" in terms of recognising Kosovo's sovereignty and in opening the door to further recognition by many more countries, the minister for the EU integration of Kosovo, Besim Beqaj, told EurActiv in an exclusive interview.

In October 2009, the United Nations approved Serbia's request to ask the ICJ whether Kosovo's secession from Serbia was legal. On 1 December 2009, the ICJ began to examine the legality of Kosovo's declaration of independence. The judgement could tip Kosovo's future towards full international recognition or push it back under the auspices of the Serbian state.

Regional cooperation is not in fact one of the Copenhagen criteria. However, with regard to the countries of the former Yugoslavia, the EU institutions have been insisting that applicants should resolve their bilateral disputes outside the EU framework; that they should cooperate with the International Criminal Tribunal for the former Yugoslavia (ICTY); and that they should pursue regional integration and improve the situation of minorities. 

The upcoming Belgian EU Presidency has not specifically cited enlargement among its top priorities but is widely expected to help Croatia and Iceland reach important milestones in their accession bids over the next six months.

Croatia is expected to conclude its EU accession negotiations during the Belgian EU Presidency, while Iceland will formally start membership talks, political analysts told EurActiv. Although officially Belgium is being "discrete" as to its intentions (see 'Background'), Croatia can expect to finalise membership talks during Belgian Presidency, which starts on 1 July, according to Piotr Maciej Kaczyński of the Centre for European Policy Studies (CEPS) in Brussels.

Although Belgium is among the most cautious in the European Union when it comes to enlargement, there is a good chance that its forthcoming EU Presidency will be particularly productive in this policy area. At their presentation of the upcoming Belgian presidency's priorities last Friday, Yves Leterme, Belgium's caretaker prime minister and its foreign minister, Steven Vanackere, sounded much like their colleagues from the Netherlands - and not just because they spoke Dutch. The Belgian approach to enlargement is similar to the stance in the Hague: no promises, no dates, just "strict and fair" rules.

The next six months could mark important progress for the Western Balkan countries despite Belgium's cautious line. Croatia could close all but one of the negotiation chapters. Macedonia is close to getting a date for the opening of accession negotiations with the EU. Montenegro can count on a positive "avis" (opinion) from the European Commission for its candidate status. The Serbian application could be forwarded to the EU commission for an opinion on Serbia's readiness to become a candidate as well. Kosovo might receive some kind of a roadmap for its Stabilisation and Association Agreement (SAA) with the EU. Bosnia-Herzegovina and Albania can hope for visa liberalisation before the end of the year. Croatia is well-placed to close all its negotiation chapters, with the exception of the famous No. 23 on Judiciary and Fundamental Rights, which will remain to be concluded during the Hungarian Presidency in the first half of 2011. Still, problems could emerge with othe chapters, for example competition. Macedonia is close to finding a win-win solution to its name dispute with Greece. Talking to WAZ.EUobserver, EU diplomats in Brussels expressed cautious optimism that the name problem could be solved in the next months. This would allow the EU finally to set the date that Skopje has been waiting for since 2005 - for formal negotiations to start on Macedonia's entry into the EU.

Croatia, hoping to be the European Union's next country to join the bloc, resumes membership negotiations on Friday (2 October). The talks are being restarted now that a border dispute between the former Yugoslav nation and its neighbour and EU member state Slovenia is to be put to arbitration overseen by Brussels.

The 27-country bloc and Croatia are expected to open six new chapters of the 35 policy areas that are up for negotiation at an intergovernmental accession conference in the European capital. It is also believed that an additional five may be closed on Friday as well. If the results live up to diplomat expectations, Zagreb will have opened 28 chapters and closed 12 as of the end of the day.

Croatia will open six and close five negotiating chapters with the EU next Friday (2 October), following a vote in the Slovenian parliament to unblock negotiations which had been put on ice over a border dispute between the two former Yugoslav republics.

The parliamentary committee on EU affairs in Ljubljana voted unanimously on Tuesday (29 September) in favour of lifting the veto, the Croatian news agency Hina reported.  The move follows a decision by the two countries' prime ministers, who recently said the border dispute that had poisoned their relations should not present an obstacle to proceeding with Croatia's EU accession negotiations.

Pahor said the draft arbitration agreement was based on a proposal for settling the dispute tabled by EU Enlargement Commissioner Olli Rehn, which he said mentioned Slovenia's access to the high seas. 

A renowned research institute has suggested that Macedonia change its name to an agreed formula on the day of its EU accession as a means of resolving its ongoing dispute with Greece. As exotic as this may seem, the proposal has already triggered interest and debate in regional media.

The proposal, signed by ESI President Gerald Knaus, has triggered a lot of interest and debate in regional media, the institute notes in a press release circulated yesterday (12 July).

While most Europeans find the Greek position puzzling or irrational, the prevailing political thinking in many capitals is that the EU enlargement process should be slowed down, the ESI paper notes. In this context, the fact that Macedonia's EU bid is stuck is even welcome, the institute claims. Gerald Knaus is categorical in saying that if a compromise between Skopje and Athens is reached, then a referendum in Macedonia will be called. But the Macedonian politicians who may be ready to make concessions over the country's name would do so only on the condition that it would actually ensure the country's EU accession, the ESI director argues. To "square the circle," the ESI suggests making a constitutional amendment in Skopje that changes the country's name now, allowing Athens to support the start of EU accession talks later this year. But the amendment would only foresee the change's entry into force on the day Macedonia actually joins the EU. The proposed constitutional change could read: "All references to the Republic of Macedonia in this constitution will be replaced by a reference to XX (a compromise name) on the day this country joins the European Union." If for some reason Skopje never joins the EU, it will never have to change its name, the ESI paper reads. Knaus also argues that the proposed solution would allow both countries and their leaders to claim victory. In parallel, Greece should promise to allow Macedonia to join NATO under the name FYROM (the name under which Macedonia joined the UN) once the constitutional changes have been passed, he says.

If Serbia does not let go of Kosovo, it will ultimately lose on two fronts - both the contested strip of land as well as the prospect of EU membership. This prediction, made by American diplomat Richard Holbrooke in Brussels more than three years ago, still rings true today.

"Serbia hasn't gained anything on Kosovo in the EU in recent years. It has only lost a lot of the support for speeding up its own European integration. Patience and understanding for Serbian politics towards Kosovo is evaporating," a diplomat from the European side of the Contact Group, which brings together the US, Germany, France, Italy, the UK and Russia, told WAZ.EUobserver.

Cracks in Serbia's long-uncompromising position on Kosovo appeared on the weekend as President Boris Tadic said his country is open to discussing a compromise over its UN General Assembly resolution. In July, following a ruling by the International Court of Justice that Kosovo's 2008 unilateral declaration of independence was not in violation of international law, Belgrade submitted a resolution with the General Assembly declaring "unilateral secession is not an acceptable way to solve territorial issues" and calling for a "mutually acceptable solution to all open issues".

Last week, German foreign minister Guido Westerwelle bluntly told Serbia: "Kosovar independence is a reality," and: "The map of southeastern Europe has been laid down and completed." He also suggested that Belgrade's acquiescence on this fact was necessary before Serbia could join the EU, despite five existing member states refusing to recognise the breakaway region.

Croatian President Ivo Josipović paid his first official visit to Serbia yesterday (18 July), during which he discussed resolving all open issues with his host, Serbian President Boris Tadić. Josipović said the two countries, which were at war from 1991 to 1995, no had longer any reason to "look back at the past". BETA agency, EurActiv's partner in Serbia, reports.

The two presidents told a news conference later on that they each supported the European integration of the other country. The presidents also said the issues that were standing in the way of better relations between the two countries included those of refugee returns in Croatia, the border dispute between Serbia and Croatia, the question of missing persons, minority issues and the protection of minority rights. As for Croatia's genocide suit and Serbia's counter genocide suit before the International Court of Justice (see 'Background'), Tadić said he supported an out-of-court settlement, while Josipović said the genocide charges were the result of certain problems and if they could be solved out of court, then "all the better for that".

At their last meeting before the summer break, EU foreign ministers on Monday (26 July) gave the greenlight for the start of negotiations on Iceland's membership bid. Talks will formally begin on Tuesday. The small north Atlantic island, with a population of just 320,000, has aligned itself with many EU laws and is seen as fitting snugly with the slightly more ineffable European 'norms', but negotiations on a few key issues - such as fishing rights and its traditional whale hunting - are expected to be difficult.

In addition, the UK and the Netherlands have linked actual membership with resolution of a dispute over the €3.8 billion in British and Dutch savings, lost in the banking crisis that consumed the nation in 2008. After the Icelandic Icesave internet bank collapsed two years ago, depositers in the UK and the Netherlands were compensated by their governments. The Hague and London now are demanding Reykjavik pay them back.

Icelanders themselves in a recent referendum rejected a payout plan that would have cost each household tens of thousands of euros. The disagreement has soured the population's sentiment towards the EU. Immediately after the crisis, a majority of Icelanders looked to the EU as a solution to their problems, but the bitter fight with London and the Hague has slashed support for EU membership on the island. In addition to potential controversial policy issues, there is also the increasingly negative opinion of Icelanders towards EU membership.

German Foreign Minister Guido Westerwelle has said Bosnia would had a clear European Union membership perspective - if its ethnic leaders could stop arguing and focus on reforming the country’s constitution. “Bosnia and Herzegovina has a clear European perspective, but the road to Europe leads through internal dialogue and the unity of the country,” Westerwelle told journalists after meeting top Bosnian officials in Sarajevo, on the third leg of his three-day tour of the Balkans. Westerwelle said Germany expected all political actors in Bosnia to “start working on constitutional reform with courage, energy and good will” immediately after October 3 general elections in the country.

By a 10-4 majority, the judges of the International Court of Justice on Thursday ruled that the unilateral declaration of independence by the then-Serbian province of Kosovo did not violate international law. In something of a fudge that will leave no one happy, the non-binding ruling found that as there are no provisions in international law restricting independence declarations, such as that pronounced by Kosovo on 17 February, 2008, the new state is neither abiding by international law nor in violation.

Serbian President Boris Tadic reacted to the ruling by saying: "Serbia of course will never recognise the unilaterally proclaimed independence of Kosovo because it believes that unilateral, ethnically motivated secession is not in accordance with the principles of the United Nations." However, Mr Tadic went on to say that Belgrade would now seek another UN resolution in order relaunch talks over Kosovo, and Serbian foreign minister Vuk Jeremic urged Serbs in northern Kosovo to not be provoked into violence.

The European Commission has endorsed Kosovo's bid to join the international bank, the EBRD, as Pristina continues to strive for credibility on the world stage.

Five out of the 27 EU countries and 22 out of the 63 EBRD member countries do not recognise Kosovo. But if one of the 22 EBRD non-recognisers changed position, it would be enough for Pristina to secure the 75 percent vote needed to join the London-based body. UN membership is for the time being out of the question due to the hostility of Russia, a UN veto-wielding power, in a situation preventing Kosovo from joining other institutions, such as the International Olympic Committee, the football authority FIFA and the Internet top-line domain name authority, ICAAN. Kosovo in 2009 did join the IMF, the World Bank and the European Investment Bank however, in developments touted by its diplomats as proof of progress toward de jure statehood. Kosovo Prime Minister Hashim Thaci in a comment for EUobserver earlier this week said the ICJ ruling should open the way for more UN members to switch sides.

Serbia President Boris Tadic agreed yesterday with British Foreign Minister William Hague that ‘Brussels is the address at which a compromise over resolution that Serbia has filed to the UN General Assembly should be looked for’, ‘Blic’ learns from High Serbian source. The same source also says that Hague has not requested from Tadic directly that Serbia withdraws its resolution, but expressed doubt that a resolution can be amended.