Daily Survey

 

Belgrade, 28. 02. 2008.

C O N T E N T :

SERBIA


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SERBIA – EU


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SERBIAN OFFICIALS ON KOSOVO STATUS


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KOSOVO AND METOHIJA- REACTIONS ON PROCLAMED STATUS


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SERBIA – ECONOMY


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SERBIA

JEREMIC SAYS SERBIA WILL NOT OBSTRUCT RCC.

SOFIA, Feb. 27 (Beta) - Serbian Foreign Minister Vuk Jeremic said in Sofia on Feb. 27 that Serbia will not obstruct the work of the newly formed Regional Cooperation Council (RCC), but added that Pristina must participate in the council under the name UNMIK/Kosovo.

Addressing the ministerial meeting of the RCC, Jeremic voiced regret over the lack of unity among countries of the region concerning Kosovo, and pointed out that, in that case, existing practice should lead the region forward.

"And the existing practice stipulates that Pristina's involvement in the RCC must be fully in line with the U.N. Security Council Resolution 1244, and that is under the name UNMIK/Kosovo," the minister said.

Reiterating that the declaration of Kosovo's independence has launched a debate in the region on how far cooperation can go, Jeremic said that "the heavy load of responsibility has been put on South East Europe."

Jeremic once again expressed deep regret over the riots and assaults on embassies in Belgrade that took place on Feb. 21, after the peaceful protest against Kosovo independence. "We will do the best we can to make sure that never happens again," he said.

Sofia played host to the closing meeting of the Stability Pact for South East Europe, at which the authority for regional cooperation was transferred to the RCC.

At the meeting, Croatian diplomat Hido Biscevic was appointed General Secretary of the council, which will be based in the Bosnian capital Sarajevo.

REGULAR ACTIVITIES OF NOTIFYING OF WARTIME SCHEDULE

BELGRADE, Feb 27 (Tanjug) - In the coming months in a number of municipalities in Serbia will be continued activities of notifying and renotifying of wartime schedule, depending on the needs of Serbian Army units, the Serbian Defence Ministry said. According to the statement of the Defence Ministry's public relations department, the activity of notifying and renotifying of wartime schedule is a planned call-up of reservists and a consequence of organization-formation changes carried out in the Serbian Army in the course of 2007.

NO NEW AGREEMENTS WITH COUNTRIES THAT RECOGNISED KOSOVO

BELGRADE, Feb 27 (Tanjug) - Serbian Science Minister Ana Pesikan told Tanjug on Wednesday that Serbia would not sign new agreements on scientific and technical cooperation with countries that had signed the unilateral declaration of independence of Kosovo, but that current scientific projects would continue.

Pesikan said that the Science Ministry would consult with the Foreign Ministry and follow the Serbian government instructions regarding cooperation with the countries that had recognized Kosovo. "As for the Ministry of Science, cooperation with other countries is absolutely critical, since there are no local sciences, there is no Serbian or Croatian or English science, but one, international science," she said. She said that previously opened projects would be continued, because their interruption would only be harmful for the country.

SERBIA - EU

TADIC: WE DO NOT GIVE UP ON EITHER KOSOVO, OR EU MEMBERSHIP

MADRID, Feb 28 (Tanjug) - Serbian President Boris Tadic has said in an interview, which the Madrid daily El Pais published on Thursday, that Serbia will not give up on its double goal - defence of Kosovo and membership in the European Union.

Answering to the question of the daily's reporter which referred to the upheaval in Belgrade on February 21, Tadic said that he did not expect new demonstrations or new riots. At the same time, he explained that the violence could have been expected because the people were very angry. I do not know how Spain, Germany or some other country would react if they lost part of their territory, part of their identity, the Serbian president said, expressing regret over the fact that Europe lacked understanding for the challenges Serbia was faced with. Advocating a rational, compromise solution to the disentanglement of the "Kosovo knot," the Serbian president underlined that if we were to have winners and losers, there would be no stability in the Balkans. If the (ethnic) Albanians get everything and if the Serbs lose everything, there will be problems, Tadic said. If we have negative consequences, it will not be only Serbia that will suffer them, he added.

Asked whether compromise meant a division of the northern part of Kosovo, Tadic explained that he was not talking about division, but rather about compromise. Such a type of imposed, unilateral independence leads to other unilateral declarations, Tadic warned, adding that it was not in our interest to have a conflict that would be frozen for another 10 or 20 years, like in Cyprus. We do not want such a solution, we want a solution that both sides would accept, Tadic explained. This is in the interest of Europe, as well, he added. The countries that have recognized illegal Kosovo are making a historic mistake which does not contribute to stability, on the contrary, the Serbian President Tadic cautioned.

KOSTUNICA: WE WILL JOIN EU ONLY WITH KOSOVO AS INTEGRAL PART

MOSCOW, Feb 28 (Tanjug) - Serbian Prime Minister Vojislav Kostunica said late on Wednesday that Serbia could join the European Union only with Kosovo and Metohija as its integral part and that before any further negotiations on membership, it had to be clearly said what was the territory the EU recognized as that of Serbia. Our position is that Serbia's territorial integrity is more than important, Prime Minister said in an interview with Russia's English-language TV Russia Today when asked if it was true that Serbia, bearing in mind it’s insisting on territorial integrity and the position of most of the EU member states on Kosovo, was not going to join the EU.

Kostunica said that there were two obstacles in the negotiations with Brussels. The first is - what is Serbia? For us, Serbia includes Kosovo, and this is in accordance with our Constitution, Kostunica said. We have one more problem with the EU - the civil mission that is supposed to be sent to Kosovo, which also jeopardizes Serbia's territorial integrity and sovereignty, because many EU member-states have already recognized independent Kosovo, the Serbian prime minister said, adding that for him, that was the principal thing. Asked if there were chances that Serbia tried to keep at least the northern part of Kosovo inhabited by Serbs, the prime minister answered that by thinking of only one part of Kosovo, of any division of Kosovo, Serbia would no longer be acting in accordance of what had from the very start been the basis of our approach. Any kind of the province's division is contrary to Serbia's territorial integrity, he underlined.

The prime minister also said that the ambassadors from the countries that had recognized independent Kosovo, who had been invited for consultations, would be kept for consultations for a certain period of time, because we had to see how things would develop. We are thinking of other measures as well. There is rather a long list of measures we are considering, Kostunica said, adding that he did not want to speak about any specific steps. Certain economic cooperation will be continued and we are also thinking of filing lawsuits against the countries that recognize the province's independence, he added.

Speaking about the Tuesday visit of the Russian deputy prime minister and presidential candidate, Dmitry Medvedev, the Serbian prime minister said that the talks had been very important for both Serbia and for Russia, as well as for the Russian-Serbian relations. The visit took place at the right moment, he said. For two years now have Serbia and Russia been fighting together for something that is not just Serbia's territorial integrity and sovereignty - which means that Kosovo remains in scope of Serbia, but also for a proper protection of international standards and certain fundamental principles of international law, such as the UN Charter and Resolution 1244, Prime Minister Kostunica said.

DJELIC SAYS SERBIA WILL REMAIN ON PATH TO EU

BELGRADE, Feb. 27 (Beta) - Serbian Deputy Prime Minister Bozidar Djelic on Feb. 27 said that Serbia remains on the path leading to the EU.

"Serbia will not alter its clearly set goal to become a member of the EU," Djelic told journalists before a meeting of the newly formed National Council for Competitiveness, of which he has been appointed chairman.

Serbia is in a difficult period, but it will not isolate itself and it will send investors clear signals that they are welcome on the Serbian market, Djelic added.

Serbia is ranked 91st out of 133 countries according to competitiveness on the list of the World Economic Forum in Davos.

The aim, as Djelic put it, is for Serbia to move up 25 points and take up the position currently occupied by Bulgaria and Romania.

SLOVENIAN PARLIAMENT SPEAKER RECEIVES SERBIAN AMBASSADOR

LJUBLJANA, Feb 27 (Tanjug) - Slovenian parliament speaker France Cukjati on Wednesday received Serbian Ambassador in Ljubljana Predrag Filipov and discussed with him bilateral relations, primarily Slovenia's possible recognition of Kosovo.

Cukjati told Filipov that parliament had received government's motion for the recognition of Kosovo's independence and that it would decide on the issue once all conditions were met, it was said in a statement issued by Cukjati's office. Voicing his regret that Pristina and Belgrade had not agreed regarding Kosovo, Cukjati said that for them the "present situation is unpleasant, because Slovenia wants to have friendly relations with all countries in the territory of the former Yugoslavia," the Slovenian news agency STA reported.

Filipov said that Serbia would not understand Slovenia's recognition of Kosovo as a sign of friendship. He said that Serbian ambassadors presented protest notes to all countries that recognize Kosovo, after which Belgrade withdrew them home. Filipov stressed that for Serbia, EU accession could not compensate the loss of part of its territory. The two officials discussed the recent attack at the Slovenian Embassy in Belgrade and Filipov said that this had been done by hooligans. He also said that top Serbian officials had condemned the incident, that authorities were trying to identify the perpetrators and that Serbia was preparing a response to Slovenia's request for the compensation of damage created to its Embassy.

ROMANIA SUPPORTS SERBIA'S EUROPEAN PATH

BUCHAREST, Feb 27 (Tanjug) - Romanian Prime Minister Calin Popescu Tariceanu voiced hope on Wednesday that all political leaders in Belgrade would opt for the further integration of Serbia into the European Union and that Belgrade will keep open channels of communication with the EU.

We will stand by Serbia on its European path and hope that all political leaders in Belgrade will fully embrace that path, Tariceanu said in Bucharest, in a debate organized by the Romanian branch of Aspen Institute. The Romanian prime minister said that when it comes to regional stability, discussions cannot be avoided about the issue of Kosovo, which in his assessment has become even more complex.

SERBIAN OFFICIALS ON KOSOVO STATUS

JEREMIC: PATH FORWARD - COMPROMISE SOLUTION FOR KOSOVO

NEW YORK, Feb 27 (Tanjug) - Serbian Foreign Minister Vuk Jeremic assessed on Wednesday that the recognition of the unilaterally proclaimed Kosovo independence represented a legalization of the province's secession from Serbia, while the path forward was in unity and the reaching of a compromise solution to the future status of Kosovo.

A recognition of Kosovo's unilaterally proclaimed independence from Serbia transforms the right to self-determination into an open right to independence, and it also gives legitimacy to a forced division of internationally recognized sovereign countries, Jeremic said in an interview for the New York Times.

Jeremic reminded that in spite of the fact that the basic principles of international order included sovereign equality of states, respect of territorial integrity and inviolability of internationally recognized borders, Kosovo had unilaterally proclaimed independence and that up to now, that illegal act had been recognized by the Administration of (President George) Bush and certain European countries, including Great Britain, France and Germany. Other countries in Europe, such as Greece, Romania and Sopain, have restrained from acknowledging it, and so have most of the other leading global and regional factors, including Brazil, China, Egypt, India, Israel, Russia and the South African Republic, the Serbian minister said. According to him, the way things stand, about 40 countries will recognize independent Kosovo, but a vast majority of almost 200 members of the UN, including Serbia, will not do that.

SERBIA WILL NEVER STOP FIGHTING FOR KOSOVO

BELGRADE, Feb. 27 (Beta) - Ministers Velimir Ilic, Aleksandar Popovic, and Zoran Loncar on Feb. 27 said Kosovo was a part of Serbia and stressed that the fight for returning the province to the Serbian constitutional order would never cease.

During the drive of the Democratic Party of Serbia Youth, dubbed "A Million Messages Kosovo Is Serbia," Capital Investment Minister Velimir Ilic said the drive symbolically started at 12:44 to underline the violation of U.N. Security Council Resolution 1244. Commenting on the Feb. 26 statement by Economy and Regional Development Minister Mladjan Dinkic, saying that Serbia should not be paying off the Kosovo debt, Ilic stressed that Serbia would continue to repay the debt until the Security Council decided differently.

According to Ilic, all foreign investors "are working according to regular procedure, without delay," adding that "people should not be afraid that investments will cease."

Ilic and Mining and Energy Minister Aleksandar Popovic stressed that the ruling coalition had no problems, concerning unity regarding Kosovo and Metohija.

Education Minister Zoran Loncar declared that the U.N. Security Council must "once again confirm Resolution 1244 and proclaim all decisions on the recognition of Kosovo null and void."

MINISTERS HAND OUT BADGES "KOSOVO IS SERBIA"

BELGRADE, Feb 27 (Tanjug) - Ministers of the Democratic Party of Serbia (DSS)-New Serbia Coalition on Wednesday stated that Serbia will continue to insist on return of Kosovo and Metohija into the constitutional framework of Serbia, and that they will launch a series of activities to that end. Ministers Zoran Lonccar, Aleksandar Popovic and Velimir Ilic handed out badges "Kosovo Is Serbia" on Belgrade's Knez Mihailova Street as part of the campaign organized by the DSS youth. New Serbia leader and Minister for Infrastructure Velimir Ilic said that state officials, as well as citizens of Serbia, will wear the badge and thus send out a message that Kosovo and Metohija is an inalianble part of Serbia.

NAUMOV: ATTEMPT AT ORGANIZING A QUASI-STATE IN KOSOVO

BANJA LUKA, Feb 27 (Tanjug) - In Kosovo and Metohija we are seeing an attempt to organize some kind of quasi-state, where all traces of the Serb, Christian civilization would be erased and the cultural and political history of the Balkans falsified, Serbian religion Minister Radomir Naumov said in Banja Luka on Wednesday.

"Unfortunately, the Serb religious tradition is currently threatened in Serbia itself, in very heart of Serbia, in Kosovo. In the very place where our religious tradition was born and where our Christian culture was developed," Naumov told the Conference of the International Fund of the Unity of Orthodox Nations. Underscoring that, in Europe and in the Balkans, religious traditions are an unavoidable factor for the preservation of peace, Naumov stated that Republika Srpska (RS) is the right place for debating the topic "Religious traditions as a significant factor for the preservation of peace in the contemporary world".

CVETKOVIC: REPAYING KOSOVO DEBT IN AGREEMENT WITH CREDITORS

BELGRADE, Feb. 27 (Beta) - Finance Minister Mirko Cvetkovic on Feb. 27 said Serbia should continue to pay off the Kosovo debt until a different agreement with foreign creditors was reached.

"The guarantor of the Kosovo debt to foreign creditors is the state of Serbia and the state has this obligation until a different agreement is reached with the creditors," Cvetkovic told BETA.

If Serbia stopped repaying the Kosovo debt, Serbia's rating would be damaged and interest rates would increase, Cvetkovic said. Also, Serbia could lose the trust of foreign financial institutions and risk future transactions with those institutions, he added.

On Feb. 26, Economy and Regional Development Minister Mladjan Dinkic said he would suggest to the government that Serbia stop repaying the Kosovo debt.

LJAJIC: STATE SHOUD HELP KOSOVO SERBS

GRACANICA, Feb 27 (Tanjug) - Serbian Labour and Social Policy Minister Rasim Ljajic said Wednesday that Serbia should implement various development programs to help the Serbs remain and survive in Kosovo and Metohija.

In Gracanica, Ljajic met with the directors of eight social work centers in Kosovo and Metohija to discuss the development of social cards of Serbs and non-Albanians in Kosovo and Metohija as a measure for protecting the poorest inhabitants of the province. Speaking to reporters after the meeting, Ljajic said that they discussed the needs of the centers for social work, as well as the needs of the Serb population in the province. Ljajic said that he agreed with the directors the completion of the construction of a facility in Kosovska Mitrovica where the Center for Social Work will be located, and the distribution of over 30 apartments to those who are socially the most threatened.

NINCIC: KOSOVO RECOG. MAY UNDERMINE RELATIONS OF SOFIA, BELGRADE

SOFIA, Feb 27 (Tanjug) - Serbia's ambassador to the European Union Roksanda Nincic has cautioned Bulgaria that a potential decision to recognize the unilaterally declared independence of Kosovo and Metohija could cause problems in the relations of Sofia and Belgrade. Even if Sofia decided not to recognize right away the unilaterally declared independence of Kosovo, but to do it under certain conditions, Bulgaria's readiness to establish relations with Pristina would inevitably disappoint Serbia and undermine the relations of the two countries, Nincic emphasized in a statement to Bulgarian national radio. "We would first withdraw our ambassador from Sofia, just as we have done in other countries that have recognized the independence of Kosovo," she said and added that also inevitable were other consequences for bilateral relations, which, according to her, would become visible subsequently.

KOSOVO AND METOHIJA- REACTIONS ON PROCLAMED STATUS

SWITZERLAND RECOGNIZES KOSOVO

BERN, Feb. 27 (Beta) - On Feb. 27, the Swiss government recognized Kosovo, becoming the 20th country to do so.

The Swiss government said it would establish diplomatic relations with Kosovo, which declared independence on Feb. 17.

AUSTRIA DECIDES TO RECOGNIZE KOSOVO

VIENA, Feb. 27 (Beta) - Austrian President Heinz Fischer on Feb. 27 gave his formal approval to Foreign Minister Ursula Plassnik to recognize Kosovo, whereby Austria has officially acknowledged the independence of Kosovo, the president's spokesman, Bruno Aigner, said.

Following the president's approval, Plassnik can send an official letter to the Kosovo government, saying that Austria recognizes Kosovo independence, which will facilitate the establishment of diplomatic relations.

TIRK: SLOVENIA NEEDS CONCENSUS ON KOSOVO

BUDAPEST, Feb 27 (Tanjug) - Slovenian President Danilo Tirk has said that the Slovenian government supports the independence of Kosovo, but that the final decision will be made by the country's parliament.

"We are not in a hurry, because we take the need for a social consensus seriously," Tirk told Hungarian paper Nepsabadsag, ahead of his visit to Hungary today. According to Tirk, the Slovenian government has unequivocally decided to recognize the independence of Kosovo, but in such situations a parliamentary debate is necessary.

GREECE TO TAKE DECISION ON KOSOVO SOME TIME IN FUTURE

ATHENS, Feb 27 (Tanjug) - Greece will not take any decision for the time being on potential recognition of the unilateral declaration of Kosovo independence, but after consideration of all aspects of that issue, Foreign Ministry spokesman George Koumoutsakos said Wednesday. Greece will first consider all relevant arguments, possible consequences for regional security and its own interests, he noted.

EU HAS GREATER RESPONSIBILITY FOR KOSOVO NOW – MACEDONIA

BRUSSELS, Feb 27 (Tanjug) - The European Union has greater responsibility towards Kosovo than before and can count on Macedonia's support in realizing its tasks, Macedonian President Branko Crvenkovski said after meeting EU High Representative for foreign policy and security Javier Solana Wednesday in Brussels.

"Macedonia is an immediate neighbor of Kosovo and Serbia, and it is in our national interest to build good relations with both Belgrade and Pristina.

Our policy will develop in this direction, but relations will also depend on the other side's position", Crvenkovski added. Referring to the issue of the border delineation in the part of Kosovo, he emphasized that Macedonia has supported (UN Envoy)Ahtisaari's plan on Kosovo's future status, because it clearly defines a solution to the border demarcation issue, Macedonian agency MIA reports.

GERMANY FIRST TO OPEN EMBASSY IN PRISTINA

PRISTINA, Feb 28 (Tanjug) - Germany is the first country that has opened an embassy in Pristina, following the unilateral proclamation of the independence of Kosovo and Metohija province.

The former German Liaison Office Kosovo in Pristina became the German Embassy on Wednesday with the placing of a plaque with the words Embassy of the Federal Republic of Germany and the raising of the Kosovo flag outside the building alongside the German flag. It is expected that the German ambassador to Kosovo will be appointed very shortly.

RUSSIA TO KEEP DIPLOMATIC OFFICE IN PRISTINA

PRISTINA, Feb. 27 (Beta) - Russia will keep its diplomatic office in Kosovo, as part of the Russian embassy in Serbia, head of the Pristina office Andrey Dronov said on Feb. 27.

"We believe that the declaration of Kosovo independence has not annulled the U.N. Security Council Resolution 1244, that it is still the basis for the work of the Russian diplomatic office in Pristina, which will remain operational," Dronov told the Russian news agency RIA Novosti in a telephone interview.

According to him, the office will maintain previously established contacts and there will be no special changes in its work.

The plan made by the special envoy, Martti Ahtisaari, envisages jurisdiction in the field of foreign affairs being transferred to the Kosovo government, i.e. Kosovo Foreign Ministry within 120 days at the latest.

Apart from the Russian Federation, the representatives of other countries have not said what will happen if their countries do not recognize the independence of Kosovo.

Meanwhile, Poland has announced that, despite the fact that it recognized Kosovo's independence on Feb. 26, it does not plan to open an embassy in Pristina any time soon.

"For the time being, we will be represented by a Polish embassy from one of the neighboring countries. But certainly not the one in Serbia, since that would be tactless," Polish Foreign Minister Radoslaw Sikorski told the Polish television TVN24.

CHURKIN: SITUATION IN KOSOVO IS RATHER DANGEROUS

MOSCOW, Feb 27 (Tanjug) - Permanent Representative of the Russian Federation to the United Nations Vitaly Churkin on Wednesday said that the situation in Kosovo and Metohija is very dangerous and tense. The UN Security Council and Russia will continue to follow the situation, said Churkin in a statement with Tanjug, adding that violence against those who do not wish to recognize unilateral declaration of independence by Serbia's province is unacceptable.

The U.N. international missions and NATO should work in keeping with UN Resolution 1244 and should provide security in Kosovo, return of refugees, and not force anyone to violate Resolution 1244, said Churkin. During a Web conference at the RIA Novosti Agency in Moscow, Churkin said that if Russia observes the opposite, it would place the issue on the UN Security Council agenda. Commenting on the statement in the United States that the U.S. will push for Kosovo's accession in the U.N., Ambassador Churkin said that at least two member states of the Security Council - China and Russia - are against Kosovo's independence.

MEDVEDEV: US INCITES INSTABILITY BY BACKING KOSOVO IDNEPENDENCE

MOSCOW, Feb 27 (Tanjug) - The United States is stoking instability in Europe by backing Kosovo's independence, said Wednesday Russia's First Deputy Prime Minister Dmitry Medvedev.

You have these decisions that, let's be honest about it, have been initiated on the other side of the Ocean, said Medvedev, who is seen as the frontrunner in the upcoming presidential elections in Russia, on March 2. They are placing Europe in a very difficult position. We understand that America is not risking anything, it is very far away, the ranking Russian official said during a visit to the Russian city of Niznji Novgorod.

IRISCH PM: RECOGNITION NOT EXPRESSION OF HOSTILITY TOWARDS SERBIA

VIENNA, Feb 27 (Tanjug) - The recognition of Kosovo is not an expression of hostility towards Serbia, Irish Prime Minister Bertie Ahern said in Vienna on Wednesday.

He pointed out before the Permanent Council of the OSCE that the European Union wants deepened relations with Serbia and that it offered the intensification of political cooperation with the aim of speedier progress towards the Union, including the status of a membership candidate The citizens of Serbia are a part of the European family, and good relations with the EU, which would lead to the membership, will bring concrete benefits to the people of Serbia, Ahern underlined.

SERB MINISTERS IN KOSOVO GOVT. SUSPEND THEIR DUTIES

PRISTINA, Feb. 27 (Beta) -. Nenad Rasic and Boban Stankovic have suspended their activities as ministers in the Kosovo government, the Albanianlanguage daily Infopress reported on Feb. 27.

They decided to put their duties on hold, the daily writes, until they reach a final decision on whether they will return to the government or definitely leave it.

Rasic is the minister for labor and social welfare, while Stankovic is the minister for returns and communities.

The reason for this decision is the proclamation of Kosovo's independence, the daily reports and underscores that prior to entering the government the Serb ministers knew that the institutions of Kosovo would proclaim independence.

GALLACH UNABLE TO CONFIRM BRUSSELS RECEIVED BAN'S LETTER

BRUSSELS, Feb 28 (Tanjug) - Spokesperson for the EU high representative for foreign and security policy Cristina Gallach has been unable to confirm that Brussels received on Wednesday an official letter from UN Secretary General Ban Ki Moon, in which he informed the EU that the transfer of responsibility from UNMIK onto the Union's Mission in Kosovo was disputable for some members of the UN Security Council.

Solana's spokeswoman told Tanjug that she did not know if the cabinet of EU High Representative Javier Solana had received the UN secretary general's letter. She reminded that Solana had written to Ban on Sunday regarding Brussel's decision to send the EU Mission (EULEX) to Kosovo, and added that the EU and the UN were in permanent contact regarding that issue. Solana met in Brussels on Wednesday with UN Under-Secretary-General for Peacekeeping Operations Jean-Marie Guehenno, with whom, according to sources in the UN SC, he agreed on the ways of cooperation between UNMIK and EULEX, a mission which the EU has sent to Kosovo without the green light of the UN.

LAJCAK: KOSOVO HAS NO IMPACT ON EVENTS IN BOSNIA

BRUSSELS, Feb. 27 (Beta) - High Representative for Bosnia Herzegovina Miroslav Lajcak said in Brussels on Feb. 27 that the Kosovo problem is creating a certain atmosphere, but it has no direct impact on Bosnia.

After a session of the steering committee of the Council for the Implementation of Peace in Bosnia Herzegovina, Lajcak stressed that "Bosnia Herzegovina is not Kosovo's hostage and in no way does it depend on events in Kosovo."

Asked what he thought about the demonstrations over Kosovo in Banjaluka, Lajcak replied that he "understands the feelings of the Serbian nation in the region," but believes that the events in Banjaluka were totally under the jurisdiction of the Republika Srpska authorities.

He also said that Republika Srpska Premier Milorad Dodik had assured him that Republika Srpska would not be destabilized.

Dodik, who along with top Bosnian state and the ruling parties' representatives attended consultations with the Council for the Implementation of Peace in Brussels, highlighted "the belief that Bosnia Herzegovina cannot exist without Republika Srpska."

However, he added, if the Dayton Peace Accords are not the foundations for constitutional changes, Bosnia could fall apart. No on in Bosnia should launch the adoption of a resolution recognizing Kosovo, Dodik underscored, and added that a peaceful and stable Bosnia en route to the EU would not be in jeopardy.

O.IVANOVIC: ECONOMIC SITUATION IN KOSOVO DISASTROUS

KRAGUJEVAC, Feb 27 (Tanjug) - The economic situation in Kosovo and Metohija is disastrous because almost nothing has been manufactured over the past nine years, while one half of the population is unemployed, Social Democratic Party Kosovo branch head Oliver Ivanovic said on Wednesday. "The little economy that functioned until 1999, has mainly halted or is in a very bad economic situation and hardly anyone manufactures. Privatization, imitated several years ago with the idea of attracting foreign investments, failed to yield any result," Ivanovic stated.

Speaking in the Business Server program of Kragujevac Radio, Ivanovic said that foreign investors, who invested little and carefully into Serbia's southern province, are trying to bring out their capital as soon as possible. Ivanovic set out that, in the long run, the Kosovo-Metohija Serbs should turn towards farming with the aid of Serbia's ministries for Kosovo and Metohija, the agriculture and trade. The number of unemployed Serbs and ethnic Albanians exceeds 50%, and in some cities it is almost 60%, Ivanovic pointed out, adding that many Serbs are employed in public institutions in the education, health and social spheres, and that they are well paid for this.

BORDER POSTS SET UP IN BRNJAK, JARINJE

JARINJE, Feb. 27 (Beta) - After reaching an agreement with the Serbs in northern Kosovo, the international peacekeeping forces on Feb. 27, set up border posts in Jarinje and Brnjak.

Some 300 Serbs, including the heads of the municipalities of Leposavic and Zvecan, Slavisa Ristic and Velimir Bojovic, respectively, assembled in the vicinity of the village of Rudare to prevent the transport of "containers," which the international peacekeepers were to set up at the Jarinje border crossing.

Bojovic said the passage of only three containers and one power unit for UNMIK police was agreed with KFOR and UNMIK.

Following an agreement with officials of the Zubin Potok municipality, containers were also erected at the Brnjak crossing, without any incidents.

SERBIAN PRIME MINISTER SUPPORTS STUDENTS IN MITROVICA

KOSOVSKA MITROVICA, Feb 27 (Tanjug) - Serbian Prime Minister Vojislav Kostunica on Wednesday told students who have been protesting for the 10th day in a row in Kosovska Mitrovica against the unilateral declaration of independence of the southern Serbian province that all of Serbia was proud of them.

"You, the youth of Serbia, are showing today to all of us how love for your country comes first, how you love Kosovo, how you love Serbia. The whole country is proud of you and is lending you support with great excitement," the Serbian prime minister said in a letter read at the protest. Students in the northern part of Kosovska Mitrovica have been protesting for ten days against the unilaterally declared independence of Kosovo and Metohija. Speaking about the policy of force against which the students are fighting, Kostunica said that the United States had taken a historical responsibility for breaking up the principles of international law on which are based peace and stability in the world. Not even the Munich agreement from 1938 when Hitler grabbed Sudet can be compared to this legal violence, because back then Czechoslovakia agreed to sign up to the breaking away of a part of its territory. Serbia has not and will never sign any paper on the surrender of Kosovo and Metohija, the Serbian prime minister said. Kostunica assessed that in this difficult trial the Serbian people had shown the strength and dignity of a great people, who knows what is right, justice and freedom.

SNV CALLS ON RUSSIA TO RETURN SOLDIERS TO KFOR

KOSOVSKA MITROVICA, Feb 27 (Tanjug) - The Serb National Council of Northern Kosovo-Metohija called on Russia to return its soldiers to the southern Serbian province, Council President Milan Ivanovic said on Wednesday. He explained that the return of the Russian soldiers to Kfor would allow for the stabilization of the situation in Kosovo-Metohija, which was destabilized after the unilaterally declared independence of the province.

Ivanovic, who also said at a news conference that these countries, which did not recognize the unilateral declaration of independence, should send their soldiers to the international forces and to deploy them in municipalities where Serbs, Muslims and Roma live. He ruled out the arrival of the EU mission to the north of Kosovo-Metohija and said that the mission in the province was illegal and represented a violation of international law. Ivanovic also said that under Resolution 1244 up to a 1,000 Serbian soldiers and police officers should return to the Province and that the state should insist on that.

SERBIA – ECONOMY

NATIONAL COUNCIL FOR COMPETITIVENESS CONSTITUTED

BELGRADE, Feb 27 (Tanjug) - The National Council for Competitiveness held its constitutive session on Wednesday, and the Council president is Serbian Deputy Premier Bozidar Djelic. Council vice presidents are Minister of Economy and Regional Development Mladjan Dinkic and Metalac company President Dragoljub Vukadinovic.

The elementary objective of the Council is to increase Serbia's competitiveness on the international market, so that it can become the economic center of southeastern Europe, which would in turn enable better salaries and pensions, better quality jobs, and reduce unemployment by half, Djelic said.

ECONOMIC COOPERATION BETWEEN SERBIA, MOSCOW SHOULD IMPROVE

MOSCOW, Feb. 27 (Beta) - Trade and economic cooperation between Serbia and Moscow is not fulfilling its potential and needs to increase primarily in the food and pharmaceutical industries, participants in the meeting of a joint expert working group said in Moscow on Feb. 27.

The group's Russian cochairman, Mikhail Vishegorodtsev, said that the improvement of trade and economic cooperation between Serbia and the City of Moscow, since the last meeting, is far from ideal and that the results are modest, particularly in the pharmaceutical and trade sectors, where the potential is immense.

He also said that, according to the Moscow city administration, the amount of drugs and food products delivered from Serbia is very small and should increase at least tenfold.

Vishegorodtsev pointed out that Moscow consumes 31,000 tons of food per day, which is why the possibilities for the marketing of Serbian products are huge.

Serbian Trade Minister Predrag Bubalo stressed that more successful cooperation between Serbia and Moscow would make it possible to reduce the trade deficit between Russia and Serbia, as Serbia exported goods worth US$460 million to Russia in 2007, and imported goods worth US$2.6 billion.

Participants in the meeting agreed to exchange information on future tenders and consider the possibility of signing an interstate parity agreement, which would grant land in Moscow for opening a "Serbian House" and a "Russian House" in Belgrade, for the promotion and sale of Serbian and Russian goods.

SERBIAN TRADE MINISTER, RUSSIAN EMERGENCIES MINISTER CONFER

MOSCOW, Feb 27 (Tanjug) - Serbian Minister of Trade and Services Predrag Bubalo, heading a government delegation on a visit to Moscow, conferred Wednesday with Russian Minister for Emergency Situations Sergei Shoigu. The talk focused on Serbia's and Russia's joint policy regarding Kosovo-Metohija and on the prospects for realizing some projects in Kosovo, Bubalo told Tanjug.

He noted that bilateral cooperation is being fostered and that the activities of the inter-governmental committee for trade, economic, scientific and technical cooperation which he co-chairs with Shoigu were analyzed. He reiterated the need for considering additional liberalization of Serbia's exports to Russia for products listed in the free trade agreement. The talk also focused on the participation of Russian companies in privatization of Serbian industries. Bubalo also attended the third session of the expert working group for trade and economic cooperation between the Serbian and Moscow governments.

DINKIC: FOREIGN INVESTORS ARE SAFE IN SERBIA

SMEDEREVSKA PALANKA, Feb 27 (Tanjug) - Minister of Economy and Regional Development Mladjan Dinkic said in Smederevska Palanka on Wednesday that the Serbian government will provide full safety to foreign and domestic investors and called on them to continue to invest.

"The government will do everything to secure full safety to all investors, foreign and domestic alike, which includes property and investment guarantees, as well as full respect of Serbia's laws, including the Law on foreign investments," said Dinkic during his visit to the privatized factory of railroad vehicles Gosa, which is now owned by Slovakia's company ZZOS-Trnava. All serious investors have an opportunity to be backed by our government here, underscored Dinkic. "We shall do everything to maintain stability, to accelerate our economic development and both foreign and domestic investors are welcome if their intentions are serious, if they employ citizens of Serbia," said Dinkic.

CUBRILO: SERBIA PLANS ECONOMIC PARTNERSHIP WITH DIASPORA

BELGRADE, Feb 27 (Tanjug) - Sixteen centers have been created at regional chambers of commerce in Serbia for fostering economic partnership with Serb businessmen abroad or on their return home, Minister for the Diaspora Milica Cubrilo said Wednesday.

The centers will work for four years or more with the goal of convincing expatriate Serb businessmen to invest in the country, she told a conference at which she presented her ministry's project for economic partnership with the diaspora at regional and local levels. The centers, together with regional and local development bodies will work on domestic and international projects for expatriate businessmen, she explained. Expatriates send home over three billion dollars a year and three quarters of greenfield investments come to Serbia with their assistance, she said. Greater investments by the diaspora would provide incentives to entrepreneurship and help implement the government's strategies for reducing poverty, increasing employment, reducing disparities in regional development and fostering local economic development, she added.

INDJIJA AMONG 25 BEST EUROPEAN DESTINATIONS FOR INVESTMENT

BELGRADE, Feb. 27 (Beta) - According to the bimonthly magazine Fdi, which is published by the Financial Times, the municipality of Indjija ranks 18th on the list of the 25 best European destinations for foreign investment.

Indjija is ahead of cities like Amsterdam, Warsaw, Madrid, Frankfurt and Budapest, and the basic criteria for being included in the list are economic potential, the level and most significant investments in the previous two years, the number of jobs that were created, the growth of the gross domestic product, economic reforms and priorities.

As BETA was told in the office of Indjija Mayor Goran Jesic, the municipality of Indjija in 2006 and 2007 attracted some EUR200 million in foreign investment.

TECHNICAL COOPERATION WITH GENERAL MOTORS AS PLANNED

KRAGUJEVAC, Feb 27 (Tanjug) - Technical cooperation between the Kragujevac-based vehicle producer Zastava Vozila Group and U.S. General Motors, based on the agreements signed last July, is being carried out as planned, Zastava AgeM Director Zoran Stosic said on Wednesday.

According to him, the realization of both contracts - on sale of Opel cars in Serbia and assembly of Astra Classic planned for the last quarter of this year, is being carried out without any problems. "The sale of Opel cars is good, if not excellent, and, on the other side, the preparations for the assembly of Astra Classic are being carried out as agreed," Stosic said in a statement with a local radio, underscoring that he is "maintaining close communication with the General Motors representatives over the past days due to the political developments in Serbia." Evaluating that "the contacts are professional and correct," Stosic said that technical teams of Opel are often visiting the car factory and that the next visit will, most likely, take place in two weeks, when tasks will be assigned in the preparation process for the assembly of Astra Classic in Kragujevac.