Serbia, Kosovo reach agreement

(Vatican Radio)-- The European Union says leaders of Serbia and Kosovo have agreed to collect custom duties and other taxes at talks aimed at improving ties between the two nations.

Catherine Ashton, the EU's foreign policy chief, said they came to "a provisional understanding" on the tax issues, fourteen years after a war ended between Serb forces and Kosovo's independence seeking ethnic Albanians.



The EU-brokered talks in Brussels brought together Serbian Prime Minister Ivica Dacic and Kosovo's Prime Minister Hashim Thaci. .


Kosovo, which broke away and later declared independence from Serbia in 2008, is recognized by some 90 nations, but not by Belgrade.


Yet, Friday's initial agreement is seen as a small step towards normalizing relations between the two nations, a key condition for EU membership.


SELF-RULE?

Both prime ministers did not agree on the thorny issue of self-rule for Serbs in northern Kosovo, something Belgrade demanded but Pristina opposed.

However EU President Herman Van Rompuy made clear that a solution for the volatile area and cooperation with the union's police mission EULEX are among key conditions for Serbia to join the European Union.


"Normalizing the relations with Pristina now remains the key requirement for Serbia and the opening of accession negotiations," he explained.


"This includes respecting the inclusive regional cooperation, actively cooperating with our EULEX mission and finding solutions on the more difficult issues in northern Kosovo, " he Van Rompuy said.


COMPROMISES NEEDED

Serbian Prime Minister Dica stressed that he understood compromises had to be made.


"Serbia wants to find a sustainable solution for relations between Belgrade and Pristina having in mind the legitimate interests of both Serbia and Serbs living there and ofcourse the legitimate interests of Albanians," he said.


He told Serbian media that custom duties will go to a special EU backed fund and used for the development of northern Kosovo.


However tensions remain. After the tax-agreement was announced Serbian media quoted a mayor in northern Kosovo as saying that Kosovo Serbs would “not pay customs duty and taxes" to what he called the "unrecognized state of Kosovo”.

But with Serbia seeking to launch EU accession talks this year, Belgrade is under pressure to compromise.


Listen to Stefan Bos' report: