Kosovo PM Thaçi and Serbia PM Dačić 21 June agreed on steps towards normalising relations and implementing 19 AprilEU-brokered agreement: Kosovo to hold local elections throughout territory and for 1st time in North 3 Nov; Serbian courts in North to close Sept; Serbian police premises closed, consensus candidate identified as regional police commander. Following agreement, EU Council 28 June agreed to launch talks on Stabilisation and Association Agreement with Kosovo and open accession talks with Serbia. Local Serb leaders considering options against agreement. Kosovo and Serbia appointed liaison officers 17 June to help monitor implementation of April agreement.

Kosovo PM Thaçi and Serbian PM Dačić 24 May agreed on implementation plan for EU-brokered 19 April normalisation deal, covering 6 policy areas including legislative change, Association-Community formation, police, courts, elections. Serb leaders in north early month reiterated rejection of 19 April deal, wrote to Russia seeking help against “unilateral action” of U.S., EU and Pristina. Serbian deputy PM Vučić and Kosovo Serb leaders 12 May reached agreement on implementation of April deal, including Serbian support for northern Kosovo. Pristina police 5 May arrested alleged regional organised crime figure Naser Kelmendi. EULEX 23 May arrested 7 former KLA members on war crimes charges from 1998-99.

Kosovo and Serbia reached breakthrough deal at 10th session of EU-mediated dialogue in Brussels 19 April: agreement recognises authority of Pristina over whole territory of Kosovo and grants local autonomy based on provisions of Ahtisaari Plan. Also creates new post of police commander for northern Kosovo, to be Serb appointed by Pristina on nomination of local authorities, and chamber of Court of Appeal in North Mitrovica with majority of Serb judges. Northern Serbs rejected deal, considering their options. Despite protests against deal in Pristina and Belgrade and northern Mitrovica, Kosovo Parliament 21 April voted 89-5 in favour of deal, Serbia’s govt approved it 22 April, Serbian parliament 26 April. Followed 8th and 9th round of dialogue earlier in month at which Belgrade rejected terms which it claimed did not provide basic rights, security for Serbs.

4 March 6th round of talks between Kosovo and Serbian PMs focusing on future of Serbian-financed parallel institutions in N Kosovo began in Brussels 4 March, no agreement reached. Following 7th round of talks 20 March, EU foreign policy chief Ashton said sides “very close to solution to some specific issues such as northern Kosovo”, hopeful that they will finalise deal at meeting scheduled 2 April. EU Enlargement Commissioner Stefan Füle told Kosovo leaders to strengthen fight against corruption, in addition to normalizing relations with Serbia, in order to achieve Stabilisation and Association Agreement by June.

Kosovo and Serbian PMs met for 5th round of dialogue in Brussels 19-20 Feb; spoke about institutions in north Kosovo, agreed to meet again 4 March. Presidents  of Kosovo and Serbia 6 Feb met for first time since Kosovo declared independence. Series of bombings in N Mitrovica, many targeting homes/property of people linked with Kosovo govt office, but also including 2 Serb children injured 4 Feb; large explosion 25 Feb demolished apartment. Local Serbs renewed roadblocks on Pristina-Belgrade highway. European Commission 12 Feb issued first report on Kosovo’s progress on requirements of visa liberalisation roadmap, citing limited capacity to fight organised crime and calling for several new laws. Serbian monastery Visoki Dečani surrounded by KFOR troops 8 Feb to protect it from demonstrators. Kosovo-Serbia agreement on liaison officers to work in EU delegation premises in Belgrade and Pristina delayed by disagreement over diplomatic immunity.

Kosovo and Serbia PMs met in 4th round of EU-mediated talks in Brussels 17 Jan, agreed on compromise solution for customs duties, VAT for Serb-run north of Kosovo. PM Thaçi late month announced special fund to be set up in state budget for Serb-run north, to be financed from customs/taxes collected at border with Serbia; Serbia condemned proposal. Dozens of Serb graves attacked in Klokot and Prizren 20-21 Jan, in apparent retaliation for Belgrade’s removal of monument to Albanian fighters in Preševo (see Serbia). 3 official vehicles found burnt out in Pristina 18 Jan; 2 blasts reported in north 17 Jan.

PM Thaçi and Serbian PM Dačić met for 3rd time in Brussels 4 Dec, agreed to implement controversial Integrated Border Management agreement, under which border and trade officials from both sides to work in coordination. Implementation started 10 Dec at 2 crossing points. Belgrade rejected Pristina’s claims that it would shortly be appointing diplomats, reiterated officials would be “liaison officers”. Pristina-Belgrade dialogue scheduled to continue 17 Jan. Serbian govt officials 17 Dec circulated long-awaited govt platform for negotiations, treating Kosovo as autonomous province, calling for Autonomous Community of Serbian Municipalities in Kosovo; Thaçi dismissed plans. EU Council 12 Dec declined to give mandate for start of negotiations for Stabilisation and Association Agreement for Kosovo, called for progress on rule of law, public administration, minority protection, cooperation with EULEX and other areas. Public anger, protests after Supreme Court panel of majority EULEX judges late Nov ruled retrial of Klecka case involving PDK party VP Fatmir Limaj and several other former KLA fighters, ordered detention of Limaj.

EU 7 Nov hosted 2nd high-level meeting between Kosovo PM Thaçi and Serbia PM Dačić, following visits to Pristina and Belgrade by U.S. Sec State Clinton and EU foreign policy chief Ashton pushing dialogue. Working groups met, implementation of key “integrated management of crossing points” agreement expected to begin early Dec. Shootings and explosions marred attempts to begin construction of new houses in mixed Mitrovica neighbourhood; UNMIK officials warned construction unauthorised; Serbs attacked Albanian construction workers, at least 8 Serb members of Kosovo Police (KP) refused orders to protect them. Serbian special police 31 Oct arrested Slavoljub Jović aka “Pagi” in Mitrovica, took him across border into Serbia to face trial on charges of firing at KFOR troops in June. Former PM Haradinaj and 2 other ex-KLA commanders acquitted during their retrial at ICTY in The Hague; ruling condemned by Serbs, received with euphoria in Pristina. Tapes of EULEX interceptions of phone conversations by PM Thaçi and other senior officials leaked 29 Nov, condemned as fakes by govt but said to be part of ongoing investigation by EULEX.

PM Thaci and Serbian PM Dačić met in Brussels 19 Oct: discussed continuation of EU-mediated dialogue on normalisation of relations. Dačić told Serbian media no change on Serbia’s position of never recognising independence, but said “time for a historic agreement”, Serbia “ready for final status talks”. Followed 10 Oct resumption of technical dialogue, including implementation of Dec 2011 border management agreement; working groups negotiated implementation action plan 12 Oct. Self-Determination movement protesters opposed to talks clashed with police 22 Oct. EC adopted Feasibility Study for Kosovo, confirmed country largely ready to open negotiations on Stabilisation and Association Agreement. Sporadic violence continued in north; 4 arrested following 7 Oct attack on border checkpoint by terrorist “Movement for Freedom”.

International Steering Group 10 Sept ended international supervision of Kosovo independence, ending mandate of International Civilian Representative (ICR) Peter Feith and closing his office; EU rule of law (EULEX) mission extended to June 2014. Some incidents in Serb enclaves; masked gunmen 7 Sept opened fire on EULEX-Kosovo police convoy in Zubin Potok municipality, injuring 1 police officer. Kosovo law enforcement and EULEX made several high profile arrests for extortion and corruption including Pristina Municipal Council chair 12 Sept. PM Thaci 24 Sept confirmed readiness to engage in high level dialogue with Serbia to EU foreign policy chief Ashton.