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BRDO PRI KRANJU, Slovenia (Reuters) - Seven Balkan states urged the European Union at a summit on Saturday to stay committed to enlargement, but Serbia's refusal to attend alongside an independent Kosovo exposed deep regional divisions.

Croatia resumed accession talks with the European Union on Friday after an almost one-year freeze caused by a border row with Slovenia, a breakthrough which the EU said was a "win-win-win" situation.But the Union said after talks with Turkey, which also hopes to join the EU, that Ankara still had plenty of urgent work to do on reforms and made clear it would face criticism in an EU report this month on its progress towards membership.The EU accession drive is an anchor for reform in candidate countries, and financial markets in Turkey are particularly sensitive to any signs its efforts may be flagging.The resumption of talks with Croatia, after EU member Slovenia lifted a veto it imposed last December over the border row, has raised its hopes of becoming the 28th EU member state.

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.

Enlargement Commissioner Štefan Füle deliberately left early from a regional summit in Slovenia this weekend, signalling that the European Commission's patience with the Western Balkans has its limits.

On a visit to Albania, Füle used unusually tough language, warning Tirana that a prolonged political stalemate would harm the country's EU accession prospects

From Tirana, Füle went to Brdo pri Kranju, a resort in Slovenia, to attend – and make an early departure – from a regional conference on the European future of the Western Balkans. The conference was boycotted by Serbian President Boris Tadić due to the presence of Kosovo Prime Minister Hasim Thaçi. Belgrade had warned it would only attend international conferences where Kosovo is represented under its UNMIK heading, as the country was a UN protectorate before unilaterally declaring independence in February 2008 (EurActiv 08/03/10).

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.

Britain and other European Union countries put their weight behind Franco-German calls for tougher eurozone rules at a summit today (29 October), agreeing on "limited" changes to the EU's main treaty in return for a cap on the EU budget.

Officials struggled to deliver the message that legal tricks could accommodate both Germany's push for treaty change and conflicting calls from several other countries which had rejected the idea. Regarding treaty change, the key word is "simplified", officials explained. A simplified provision, enshrined in Article 48, Section 6 of the Lisbon Treaty, allows member countries to unanimously adopt a decision amending all or part of the main elements of the Treaty on the Functioning of the EU (TFEU), which governs how the Union carries out its work. Such a procedure would avoid the need to call a constitutional convention, experts explained. In addition, the European Parliament would only be "consulted" instead of enjoying full voting rights as part of the normal co-decision procedure. The changes to the treaty are to be settled by mid-2013, before the expiry of the present emergency fund agreed earlier this year to deal with crises such as the one that hit Greece. The objective is to replace that with a permanent mechanism. The simplified treaty change procedure will not enter into force until it is approved by member states in accordance with their constitutions. Most EU countries are expected to ratify the decision by a simplified procedure in their parliaments. As for Ireland, it remains unclear whether a change effected in this way would require another referendum.

UK Prime Minister David Cameron appears to have been instrumental in forging a deal, lending his backing to Franco-German calls for treaty change in return for keeping a lid on the EU's 2011 budget. 11 member states, including Britain, France and Germany, will send a letter to the European Commission and Parliament today saying that their plans to increase the EU budget by 5.9% in 2011 are "especially unacceptable at a time when we are having to take difficult decisions at national level to control public expenditure". The letter was signed by the leaders of the UK, Germany, France, the Netherlands, Sweden, the Czech Republic, Denmark, Austria, Finland, Slovenia and Estonia. The bloc's finance ministers had earlier voted for a limited increase in the EU budget of 2.9%. "We are clear that we cannot accept any more than the 2.9% increase proposed by the finance ministers," the leaders say in the letter. Cameron argued that a planned increase in the EU budget would cost his country's taxpayers the equivalent of one billion euros. The 2.9% rise would still cost them £435m (500m euros). Parliament to fight back By agreeing to cap the budget, EU leaders set themselves on a collision course with the European parliament, which has the power to approve or reject the proposed budget. Negotiations between the European Parliament and the Council, which represents the 27 member countries, over the EU's 2011 budget kicked off on 27 October (see 'Background'). "If Cameron is prepared to give up the British rebate [...] then we can for sure discuss a reduction of the budget," said Martin Schulz, leader of the Socialist & Democrats group in the European Parliament, speaking to EUX.TV, the European policy news channel powered by EurActiv. "The European budget is not to be compared with national budgets," said Schulz. "There are no own resources. We have no European taxes. We have no own money. It is money coming from the member states. We can make no debts. The British budget must be reduced because there is enormous debt. Europe has no debts," he said.