Serbia

On 11 July 2004, Boris Tadic was inaugurated as Serbia's first president since December 2002. Voters chose Tadic in the second round of the election, on 27 June, by a vote of 53 per cent over the ultra-nationalist Tomislav Nikolic of the Serbian Radical Party (SRS). Tadic's victory suggests that a slim majority of the electorate wants to see Serbia on a pro-European reform course.

Serbia and Kosovo must build on a recent breakthrough in negotiations and extend dialogue to sensitive issues, especially northern Kosovo’s institutions, in order to keep their fragile relationship moving forward.

The dispute about Kosovo’s sovereignty continues to fuel tensions and violent clashes in northern Kosovo, halting Kosovo’s and Serbia’s fragile dialogue and putting at risk Serbia’s EU candidacy.

The development of more realistic, if not yet fully public, attitudes in Kosovo and Serbia suggest a win-win resolution of their dispute is feasible if both sides promptly open talks with the aim of reaching a comprehensive compromise.

Kosovo’s independence declaration on 17 February 2008 sent shock waves through Serbia’s politics and society, polarising the former in a manner not seen since the Milosevic era.

Southern Serbia’s Albanian-majority Presevo Valley is one of the rare conflict resolution success stories in the former Yugoslavia. Outwardly, it is increasingly normal, with no major incidents in over three years. Yet, tensions linger: massive unemployment is still the single largest problem but the shadow of Kosovo’s future status darkens the political landscape.