http://www.reuters.com/article/reutersEdge/idUSL1274591220080312

EU risks setbacks in embracing Balkans
Wed Mar 12, 2008 2:11pm EDT

By Paul Taylor, European Affairs Editor - Analysis

BRUSSELS (Reuters) - The magnet of European Union membership faces its
toughest test in the Western Balkans in the coming weeks as nationalists and
pro-Western forces struggle for the soul of the remnants of former
Yugoslavia.

For EU policymakers, the nightmare goes like this: Macedonia refuses to
change its name and Greece blocks its bid for NATO membership; Kosovo is
partitioned de facto between Albanians and Serbs and becomes another frozen
conflict; Serbia turns its back on the EU and elects a nationalist
government.

"This worst-case scenario could be reality by the summer," said Gerald
Knaus, a Balkans analyst and president of the European Stability Initiative
think tank.

In a drive to avoid that outcome, EU and United Nations officials are using
the tools at their disposal -- diplomacy, money for regional cooperation
projects, the prospect of visa-free travel and the power of emulation of the
most advanced former Yugoslav republics.

EU Enlargement Commissioner Olli Rehn said this week he hoped every Western
Balkan country would make progress on the road to European integration this
year.

Slovenia, the only former Yugoslav republic to join the EU so far, has
invited foreign ministers from all the Western Balkans countries to join
their 27 EU counterparts to discuss closer ties at an informal meeting later
this month.

OPTIMISTIC SCENARIO

Croatia, which has started membership negotiations, should receive a boost
once its parliament removes a key obstacle by suspending a fisheries
protection zone that barred vessels from EU neighbors Italy and Slovenia
from its waters.

Macedonia, granted candidate status in 2006, is keen to get a start date for
its accession talks. EU officials are working behind the scenes to help a
U.N. mediator solve the name dispute with Greece, which wants Skopje to take
a different name from its own northern province, diplomats say.

They are hopeful of a deal before the April 2-4 NATO summit.

Bosnia could sign a first agreement on closer ties with the EU next month
provided parliament adopts a police reform law, and Serbia could do the same
if pro-European forces win a parliamentary election due in May.

Montenegro signed its first accord with Brussels last year and some EU
officials say Bosnia, Albania and Montenegro could submit applications for
membership in the coming months, possibly in a symbolic joint act.

That is the optimistic scenario. But Balkan analysts fear Brussels may be
indulging in wishful thinking and point to the risk of contagion from the
Kosovo conflict.

"We have to deal with the option that the EU's transformative power doesn't
work for all. There may be political elites who are not in a rush to hasten
the process of European integration," said Jacques Rupnik, a Balkans expert
at France's Institute of Political Science (Sciences-Po).

CONCERN AT SIGNS OF "SOFT PARTITION"

While EU and NATO officials are relieved there has been little violence
since Kosovo seceded from Serbia on February 17 and threats of economic
sanctions or an energy cut-off have not materialized, they are worried at
signs of a "soft partition".

EU foreign ministers called on Monday for the United Nations Mission in
Kosovo (UNMIK) to maintain a presence right up to the Serbian border in
areas populated by minority Serbs from which international officials had
withdrawn for security reasons.

EU officials speaking on condition of anonymity acknowledge the risk of a
split between a Serb "UNMIK-land" from which the EU is barred and an
EU-supervised, independent Albanian Kosovo -- with no prospect of a handover
from UNMIK to EU supervision because Russia would block it at the United
Nations.

While more than half the 27 EU member states have recognized Kosovo, wider
international acceptance has been slow and some EU officials fear Latin
American states may follow Spain's lead in refusing recognition without a
U.N. Security Council resolution.

The EU's biggest concern, and the one over which it may have the least
influence, is the prospect that embittered Serbs, alienated by EU backing
for Kosovo's secession, could vote for hardline nationalists in May.

Strong EU coaxing helped pro-European Serbian President Boris Tadic to a
narrow victory over a radical nationalist rival in a presidential election
on February 3, but relations have since deteriorated over Kosovo.

Senior EU officials and foreign ministers have been told they would not be
welcome for now in Belgrade, French Foreign Minister Bernard Kouchner said
this week.

That leaves the EU with few levers to influence the vote, especially as the
Dutch and Belgians continue to block the signing of an agreement with Serbia
until it makes progress on handing over war crimes indictees.

"You can't push on a rope," one senior EU policymaker said, warning that
another attempt to micromanage Serbian politics could backfire on Brussels.

(Editing by Timothy Heritage)

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