Belgrade, 07. 05. 2008.

SERBIA - EU

• TADIC: KOSTUNICA IS PRESENTING UNTRUTH ABOUT SAA
• KOSTUNICA: AGREEMENT SIGNED WITH SERBIA IS SCAM
• BELGIAN FOREIGN MINISTRY: AGREEMENT STATUS NEUTRAL
• NAGY: NOT A SINGLE PROVISION OF SAA, INTERIM AGREEMENT INTO EFFECT
• KOUCHNER - PARIS BELIEVES SAA, ICTY ARE SEPARATE ISSUES
• SPASOJEVIC SAYS LISBON STRONGLY SUPPORTS SAA WITH SERBIA
• FREE VISAS TO SERBIAN CITIZENS FROM 17 EUROPEAN COUNTRIES
• DJELIC - ABOLISHMENT OF VISA TAX IS MESSAGE OF PARTNERSHIP
• BARROT: SERBIA FIRST COUNTRY TO BE PRESENTED "ROAD MAP"

• KOSTUNICA CONGRATULATES MEDVEDEV
• KOSTUNICA EXPECTS GOVERNMENT TO CONFIRM DEAL WITH RUSSIA
• ENERGY AGREEMENT RATIFICATION BILL TO BE ADOPTED ON MAY 9.
• JEREMIC: UNILATERAL INDEPENDENCE OF KOSOVO DIVIDED EUROPE
• JEREMIC: SERBIA TO SIGN EVERY CONTRACT AS WHOLE COUNTRY
• SERBIA SIGNS FINANCIAL MEMORANDUM WITH SLOVAKIA
• ELECTIONS WILL BE MONITORED BY COE OBSERVERS
• FIAT, ZASTAVA TO SIGN PARTNERSHIP DEAL BY END OF JUNE
• TADIC: SOON ALL OF SERBIA WILL REJOYCE LIKE KRAGUJEVAC
• CITIZENS ALLOWED TO TAKE EUR10,000 ABROAD AS OF JUNE 1

• LITHUANIA RECOGNIZES KOSOVO'S INDEPENDENCE
• RUSSIA CONSIDERING CONTRIBUTION TO RESTORING KOSOVO CHURCHES

BELGRADE, May 7 (Tanjug) - Serbian President and leader of the Democratic Party (DS) Boris Tadic has said that leader of the Democratic Party of Serbia (DSS) and Serbian prime minister, Vojislav Kostunica, is presenting untruth about the signed Stabilization and Association Agreement (SAA) with the EU and that he is deceiving the citizens.

In an interview for the Wednesday issue of the Belgrade daily Pres, Tadic qualified as "very bad" the fact that "Kostunica is deceiving the people, that he is dividing them into so-called patriots and traitors and that he is introducing the language of hatred into his policy."

He said that there "are a lot of people in the DSS who do not approve of the threats and curses that can be heard as coming from the DSS and NS (New Serbia) leadership, who feel embarrassed because of the untruth that is being told and who understand very well that the hindering of Serbia's development, which their unnatural support to the Radicals might cause, is very dangerous for the interests of our country." "These people know very well that the hug with the Radicals would be deathly for DSS as a party itself, and I do not think they will let this happen," Tadic said.

BELGRADE, May 6 (Tanjug) - Serbian Prime Minister Vojislav Kostunica assessed on Tuesday that the statement by Belgian Foreign Minister Karl De Gucht is a confirmation that the agreement that was signed with Serbia is a scam and that it does not consider Kosovo a part of Serbian territory.

At the celebration of the patron saint's day of the Democratic Party of Serbia (DSS), Kostunica, who is also the party's leader, said that this is the reason why the party warned its former coalition partners not to sign such an agreement. Belgian Foreign Minister De Gucht told Tanjug late on Monday that official Brussels holds that in Luxembourg last week the Stabilization and Association Agreement (SAA) was signed with Serbia without Kosovo-Metohija. "My understanding is that we signed the agreement with Serbia itself, without Kosovo," the foreign minister of Belgium, which on February 24 recognized the unilateral secession of Kosovo and together with the Netherlands is opposed to the signing of the SAA with Serbia because of its failure to realize full cooperation with the ICTY.

"The ancient saying is that all that is secret will be made known. De Gucht actually said that as one of the signatory countries, Belgium does not consider Kosovo and Metohija part of Serbian territory," Kostunica said. He specified that those countries that signed that agreement and are EU member-states do not recognize Serbia within its internationally recognized borders and added that De Gucht confirmed this. "We have warned our coalition partners not to head into something by which they would recognize the independence of Kosovo-Metohija," Kostunica said. He pointed out that the SAA is "fake" and that EU High Representative for the Common Foreign and Security Policy Javier Solana is behind that scam.

Kostunica said that the SAA would be annulled and explained that February 17, the date of the unilateral declaration of Kosovo and Metohija's independence is the date which changes all the circumstances and the meaning of the initialed agreement because the EU gave the green light for a violation of the UN Security Council Resolution 1244. "We have to continue our fight and make the unilaterally declared independence of Kosovo-Metohija meaningless," he said.

BRUSSELS, May 6 (Beta) - The Foreign Ministry of Belgium announced on May 6 that the Stabilization and Association Agreement between Serbia and the European Union is status neutral regarding Kosovo, as stated in Article 135 of the document.

Belgium wishes to point out that the signing of the agreement is a clear signal of our belief that Serbia's future is in Europe, the ministry announced in response to reports in the Serbian media that Belgian Foreign Minister Karel de Gucht had stated that Belgium considered the Stabilization and Association Agreement signed with Serbia without Kosovo.

An announcement from the Belgian embassy in Belgrade reminded that Belgium was one of the signatories of the agreement between the EU and Serbia, which was initialed by the government of Serbian Prime Minister Vojislav Kostunica in November 1997.

Belgium's signing of the agreement does not exclude the stance of other EU members which have not recognized the independence of Kosovo, the announcement said further.

BRUSSELS, May 6 (Tanjug) - Not a single provision of the Stabilization and Association Agreement (SAA) and of the accompanying interim agreement with Serbia is currently into effect, EU enlargement commissioner's spokesperson, Krisztina Nagy told Tanjug on Tuesday, voicing hope that after the elections space will open for the implementation of these documents.

"For now there are no parts of the SAA or of the interim agreement that are in effect. The SAA will come into effect after it is ratified by EU member-stats and Serbia," Nagy pointed out in a statement delivered to Tanjug Agency. The spokeswoman for Olli Rehn explained that this would take a lot of time. "For this reason the parts of the SAA relating to trade will come into effect through the temporary agreement," she added. At the signing of the SAA and temporary agreement last week, it was decided that the temporary agreement will be implemented as soon as Serbia realizes full cooperation with the ICTY, she stressed.

"The European Commission hopes that the government, which will be elected on Sunday (in the Serbian elections) will be able to meet this condition speedily," she pointed out. The SAA and the temporary agreement were signed on April 29 in Luxembourg, and, according to a decision by the EU Council of Ministers, they will not come into effect until the conditions of full cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) in The Hague are met by Serbia.

PARIS, May 6 (Tanjug) - French Foreign Minister Bernard Kouchner said on Tuesday that at the request of Belgium and the Netherlands the implementation of the Stabilisation and Association Agreement (SAA) with Serbia was conditional on the completion of cooperation with the ICTY, while France believed that these were two separate though necessary things.

The Netherlands and Belgium requested the suspension of implementation of the SAA before the arrest of ICTY indictees Ratko Mladic and Radovan Karadzic, Kouchner told a press conference in Paris. This will be possible if the Democrats and not the nationalists win at the Serbian elections on May 11, although we separate the issues of the SAA and arrest of the ICTY indictees, Kouchner said. France does not want this offer to Serbia, to join the European Union some day, to be made conditional on the arrest of Mladic and Karadzic.

These are two different things and both are necessary, he explained France's stand. Kouchner said that the assessment made by EU diplomats that the SAA might take effect until the end of June had been arbitrary and that it had nothing to do with the end of Slovenia's EU presidency and takeover of the EU presidency by France. These is no date for the taking of effect of the Agreement, Kouchner said and added that although it had been said that this would be in late June this did not mean anything.

He said that the SAA would facilitate the implementation of the Eulex mission, although it was not directly connected with it. The implementation of Eulex is not made politically conditional by this Agreement, but it is connected, Kouchner said. Everything that alleviates tension on the ground is very important and can be a decisive factor. If an incident occurs, which I hope will not happen, this may be a decisive factor, Kouchner said and added that a number of administrative and police officials of Eulex were already present in Kosovo.

He said that the situation in Kosovo was one of the topics of talks held by the international community in London on May 2. The situation on the ground is good and if the May 11 elections go well, we will be able to believe that the relations of the international community towards Kosovo are contrary to failure, he said. Kouchner said that the transfer from UNMIK, UN Resolution 1244 to Eulex would be slow.

LISBON, May 6 (Tanjug) - State Secretary at the Serbian Defence Ministry Dusan Spasojevic said on Tuesday that Portuguese officials "strongly support" the signed Stabilisation and Association Agreement between Serbia and the European Union and Serbia's EU integration process.

"The Portuguese government sent the unequivocal message that the situation regarding Kosovo-Metohija must not be brought into connection or be a condition for the future full-fledged EU membership of Serbia," Spasojevic told Tanjug over the phone from Lisbon. He added that the Portuguese officials had said that "Serbia must not be blackmailed by the recognition of independence of Kosovo-Metohija to become a full-fledged EU member." Recalling that Portugal did not recognize the illegally declared independence of Kosovo, he said that this state "had a very constructive and restrained position on the unilateral declaration of independence of Kosovo-Metohija."

He added that he had thanked his "Portuguese colleagues on the participation of their military contingent in KFOR in Kosovo-Metohija." "It was agreed that an agreement on cooperation in the field of defense be signed between Serbia and Portugal," Spasojevic said and added that the defense ministers of Serbia and Portugal would sign the agreement until the end of the year. He said that concrete areas of cooperation between the two states' defense ministries had been agreed on - joint exercises, preparation for peacekeeping operations, cooperation in the field of military medicine, military education and preparation for participation in joint exercises. Spasojevic on Tuesday held a lecture at the National Security Institute in Lisbon, which marked the end of his two-day visit to Portugal.

BRUSSELS, May 6 (Beta) - Urged on May 6 by the European Commission and the Slovenian chairing over the European Union in Brussels, 17 European countries will issue free visas to Serbian citizens traveling into the "Schengen zone."

This step fits into the chances for full abolition of visas for the EU for Serbian citizens and also represents a sign of the EU's resolve to support Serbia's proEuropean orientation and its place in Europe.

These were the contents of a joint statement by the 17 EU countries that responded to the call of the European Commission and the Slovenian chairing over the EU. The countries are France, Slovenia, Germany, Austria, Cyprus, Denmark, Spain, Estonia, Greece, Hungary, Italy, Lithuania, Luxembourg, Slovakia, Sweden and the Czech Republic, and also Norway, which is not a member of the EU.

These states said that, together with the support they were giving Serbia to help it come closer to the EU, they had decided to fully meet the call for flexibility toward Serbia, issued by the European Commission, and to issue free visas to every individual able to obtain a Schengen visa.

The European Commission said the measure should mean that around 80 percent of Serbian citizens would get free visas to EU countries, commenting that the majority of Serbs under 25 years of age could get free visas from now on.

The French embassy in Belgrade announced that, as of May 6, it was applying the guidelines for issuing free visas. An announcement from the embassy said this would also aim at providing free visas to any person under 25 years of age and to close relatives of Serbian citizens living in France.

Slovenia also announced on May 6 that it was already implementing an agreement allowing the issuing of free visas to a large number of categories of Serbian citizens, and that it considered the initiative "an important step toward fuller visa regime liberalization."

NIS, May 6 (Tanjug) - Serbian Deputy Prime Minister Bozidar Djelic said on Tuesday that 17 Schengen states had sent a message of partnership to Serbia through their decision to abolish taxes on visas. "After the Stabilisation and Association Agreement, this is an additional encouragement to our country. We have been saying for months that one of the key freedoms is the freedom of movement and that it is a kind of scandal that our citizens pay for their visas," Djelic told Tanjug.

The decision of the group of Schengen countries is a result of several-month lobbying of Serbian authorities and the initiative of France, which encouraged other countries to abolish taxes on visas. "We are the first Western Balkan country to get such a privilege. Let this be an impetus for the implementation of the same measure in other Western Balkan countries. I am proud and happy that Serbia is the first," Djelic said.

BELGRADE, May 7 (Tanjug) - The "road map" for scrapping the visa regime, which will be officially presented to Serbia on Wednesday, is the first of its kind in the region, and the European Commission (EC) is currently working on the preparation of similar documents for other West Balkan states as well, said EC Vice-President responsible for transport Jacques Barrot, who will arrive in Belgrade today.

Barrot told the Belgrade daily Blic that he did not wish to comment on the announcements by Serbian officials that by the end of the year, visas would be abolished for the Serbian citizens traveling to the Schengen Agreement signatory states. He said that "that will depend on Serbia's ability to satisfy the norms set out in the 'road map' put together by the EC," and that "there are no time frames for meeting the conditions envisaged by that document."

BELGRADE, May 7 (Tanjug) - Serbian Premier Vojislav Kostunica on Wednesday congratulated Dmitry Medvedev on his appointment as President of the Russian Federation, underscoring that he is confident that Medvedev's appointment as head of state, its impressive economic development and unfailing respect of the highest political principles and true values are a guarantee not only of the well-being of all Russian citizens and of Russia's overall and strong development, but also of equal international relations.

"It is my great pleasure to extend my hearty congratulations to you on your appointment as President of the Russian Federation and to extend my best wishes at the beginning of your presidential mandate," reads the Prime Minister's letter.

"Thanks to Russia's principled support for the respect of the United Nations Charter and the principles of international law, the violation of the basic principles, on which peace and safety in the world are founded, was prevented at the Security Council in regards to the issue of Serbia's province of Kosovo and Metohija," underscored Kostunica, adding that "Russia's consistent policy to preserve international order is the best defense against introduction of violence as a way of solving conflicts in the world."

BELGRADE, May 6 (Beta) - Serbian Prime Minister Vojislav Kostunica said on May 6 that the government would confirm the energy agreement with Russia at its May 9 session.

All parties currently in the government of Serbia stand behind that agreement, as do the Serbian Radical Party and the Socialist Party of Serbia, because they realize it is "the deal of decades," Kostunica, president of the Democratic Party of Serbia, told journalists.

Asked if he had confirmation from Democratic Party ministers that they would vote for the deal, Kostunica said that, based on his knowledge, he was convinced that the agreement would be established on May 9 and sent to the Parliament for ratification.

On May 6, Kostunica scheduled a regular government session for May 9, at which, for the third time, he will propose that the government put forward the ratification of the energy deal with Russia to the Parliament. On the previous two occasions, ministers from the Democratic Party voted against it, believing that such an important deal should be ratified by the new parliament.

BELGRADE, May 6 (Beta) - Serbian Deputy Prime Minister Bozidar Djelic said late on May 6 that a bill on ratifying the energy agreement with Russia would be passed by the Serbian cabinet on May 9.

"We will pass a bill on ratification of the energy agreement as (Serbian President Boris) Tadic promised (Russian President) Vladimir Putin this in 2005," Djelic said at an inauguration ceremony for a new sports center in Vlastinac.

Asked to comment on recent threats and insults against him, Djelic answered that "this is the way that Seselj and Milosevic led their policy" and that the Democratic Party would not respond in kind. He reiterated that Serbia needed unity on two questions defending Kosovo and quick EU membership.

STRASBOURG, May 7 (Tanjug) - Serbian Foreign Minister Vuk Jeremic today stated in his address before the Committee of Ministers of the Council of Europe in Strasbourg that the unilateral declaration of independence by Kosovo and Metohija has resolved nothing, but had introduced divisions not only within the region but in Europe as well.

The recognition by some countries represented in this room of the unilateral declaration of independence by the Albanian authorities of our southern province of Kosovo and Metohija has resolved nothing, it has not made things better, it has not consolidated values, it has not increased cooperation, it has not contributed to reconciliation, it has not brought us stability and security, said Jeremic.

"Rather than working to forge a solution that would bring Belgrade and Pristina together under a common sovereign roof while providing for the maximal degree of autonomy for the Kosovo Albanians, a decision was taken to impose an outcome that strikes at the very heart of the values of Europe we hold in common," said Jeremic. "How regrettable this has been: for Serbia, for the Western Balkans, and for Europe. Yes, for Europe. UDI has divided us all. There is no point in denying it," said Jeremic.

He said that the only way to overcome this division - the only way to stay true to our values while securing a lasting settlement to Kosovo's future status - is to return to the negotiating table, and remain there until a mutually-acceptable solution is found. "Talks designed to succeed, conducted in good faith and in the spirit of compromise, on the basis of our common values and a healthy respect for international law - this must now become the focus of our efforts, of our hopes, and of our resolve," underscored Jeremic.

Jeremic said that Serbia is committed to working together with all the member states of the Council of Europe to promote a prosperous, secure Europe without dividing lines. "It gives me great pleasure to say that such a commitment has been further strengthened by the recent signing of the Stabilization and Association Agreement between the Republic of Serbia and the European Union. I believe that my country can proudly and confidently affirm, truly for the first time, that the contours of our destiny in Europe have bee solidly traced," said Minister Jeremic.

BELGRADE, May 7 (Tanjug) - The borders of Serbia have not changed and any contract Serbia may sign, will be signed by the whole country, Foreign Minister Vuk Jeremic said following the claims by Belgian Foreign Minister Karel De Gucht that the Stabilisation and Association Agreement (SAA) had been signed with Serbia without Kosovo.

"The fact that Belgium violated Resolution 1244, unlike Greece, Spain, or Romania, which refused to do that, is regrettable since their decision represents a violation of international law," Jeremic said in an interview for the Wednesday issue of the Belgrade daily Vecernje Novosti. "Unfortunately, certain countries have decided to interpret Resolution 1244 in such a way which they believe allows that they recognize the unilaterally proclaimed independence of Kosovo and thus view our borders in a different way than Serbia and most of the UN member countries," the Serbian foreign minister said.

BELGRADE, May 6 (Beta) - On May 6, Serbia and Slovakia signed a financial memorandum, which envisages Slovakia setting aside EUR1.9 million for civic society development and technical infrastructure projects in Serbia, as well as for aiding Serbia in the process of European integration.

The memorandum was signed by Serbian Finance Minister Mirko Cvetkovic and Slovak Ambassador to Serbia Igor Furdik.

So far, Serbia has signed four financial memorandums, which have granted it funds worth EUR5 million and backed projects in the fields of environmental protection, health care and welfare, transport and local infrastructure improvement, and in the transfer of experience and support to Serbia's integration processes through the training of state administration, a news release says.

STRASBOURG, May 6 (Tanjug) - The parliamentary elections in Serbia on May 11 will be monitored, in addition to the observers of the Organization for Security and Cooperation in Europe (OSCE), also by a 29-member delegation of the Parliamentary Assembly of the Council of Europe (PACE), which will be headed by Jean-Charles Gardetto of the group of people's and Christian democratic parties, it was announced in Strasbourg on Tuesday.

The delegation will arrive in Belgrade on May 9. Before the elections, the PACE observers will meet with representatives of the Republican Election Commission, political parties, civil society, media, and the diplomatic corps, the PACE Press Service said. The Congress of Local and Regional Authorities of the Council of Europe will also send their observer team for the Serbian elections, but they will focus on the local elections.

KRAGUJEVAC, May 6 (Beta) - Italian group Fiat on May 6 signed a memorandum of cooperation with the town of Kragujevac, whereas a strategic partnership deal with Kragujevacbased car maker Zastava is due to be signed by late June.

Fiat Vice President Alfredo Altavilla said that Fiat will invest at least EUR700 million in Zastava and that the first cars within the new deal will be manufactured in 2009.

Altavilla also said that politics cannot affect business, that the May 6 deal is the beginning of a big venture and that the agreement will bring a large number of Fiat's associates in the production of parts to Serbia.

The signatories announced that Fiat will manufacture two completely new models in Serbia and that the world premiere of a Fiat vehicle in Serbia can be expected in late 2009.

Serbian Economy Minister Mladjan Dinkic said that the government officials agreed with Fiat to halve customs duties on all car imports to Serbia as of Jan. 1, 2009, adding that customs duties are to be annulled within the next two years.

The memorandum of cooperation between Kragujevac and Fiat foresees Fiat being freed from local fees and taxes over the next 10 years, getting land from Kragujevac for the expansion of production facilities free of charge and Kragujevac obtaining free trade zone status.

Serbian Deputy Prime Minister Bozidar Djelic and President Boris Tadic also attended the signing.

Djelic pointed out that the goals of a new proEuropean government will be to attract three world vehicle producers to Serbia by the end of its term in office and to reach the production mark of one million vehicles per year.

KRAGUJEVAC, May 6 (Tanjug) - Serbian President Boris Tadic said on Tuesday that the return of FIAT to the Kragujevac auto works Zastava is just the beginning of the flourishing of the entire Serbian industry, and told Serbian citizens that they will soon rejoice just as the residents of Kragujevac are rejoycing today.

Speaking at the ceremony of the signing of the Memorandum of Understanding between the City of Kragujevac and FIAT, Tadic underscored that it is his job to make it possible for other automobile manufacturers to come to Serbia as well, after that Italian company, and thus to create new jobs and opportunities for the citizens. The return of FIAT to Zastava demonstrates that the problems in Serbia can no longer be resolved using the recepies of the 90s, and that Serbia is overcoming the challenges it is facing strictly in the way that other modern states are doing at the beginning of the 21st century.

"There can be no progress in southeastern Europe without Serbia, we are the moving force for the development of the entire region of southeastern Europe, the people who can set into motion the development of the entire region are in Serbia - and they know that in Europe. Just like Serbia will never give up on its Kosovo, so it will also never give up on its development," Tadic said.

BELGRADE, May 6 (Beta) - The National Bank of Serbia on May 6 announced that as of June 1 Serbian citizens will be able to take EUR10,000 out of the country, double the amount allowed up till now.

A bank news release says that people who are not Serbian residents will also be able to bring the same amount into Serbia without the obligation of reporting it to customs.

The bank stressed that by increasing the amount it will harmonize its regulation with the bill on preventing money laundering and the financing of terrorism, which envisages the same sum that individuals can freely take abroad and into the country.

The move will also harmonize the bank's regulation with Directive 1889/2005 of the European Parliament and the EU Council, which regulates the transport of cash into and out of the EU, and that, according to the National Bank, will considerably liberalize the entry into and exit of cash from the country until the complete annulment of this limitation, and will also simplify border procedure.

VILNUS, May 6 (Beta) - On May 6, Lithuania recognized Kosovo's independence, after the majority of MPs in Parliament voted in favor of doing so.

According to national law, Lithuania can recognize another country only by parliamentary decision. Of 141 MPs, 51 voted in favor of recognizing Kosovo's independence, six voted against, while 25 abstained. Fiftynine MPs did not participate in the vote.

Lithuania is the 19th EU member and the 41st nation in the world to recognize Kosovo's independence.

MOSCOW, May 6 (Beta) - The Russian Foreign Ministry announced on May 6 that, on the order of Russian President Vladimir Putin, it was looking into the possibility of taking part in restoring Orthodox Christian monasteries in Kosovo, as part of a UNESCO project, and earmarking funds for those purposes.

Russia will also consider the necessary organizational and expert resources, including sending Russian architects, construction engineers, technologists and art historians, who should take part in the reconstruction and restoration, the announcement said.

The ministry reminded that more than 150 Orthodox Christian churches and monasteries had been destroyed in the province since 2000, including those on the UNESCO list. UNESCO director general Koichiro Matsuura has urged the international community to help in restoring the cultural and historical monuments in Kosovo.