Serbian Radical Party (SRS) candidate Tomislav Nikolic ahead of incumbent Boris Tadic (Democratic Party, DS) in presidential race with 39.99% to Tadic’s 35.39% in first round vote held 20 Jan. 61% turnout unusually high. Second round set for 3 Feb. PM Vojislav Kostunica said 26 Jan Serbia would nullify any Stabilisation and Association Agreement (SAA) if EU approved Kosovo mission; Tadic responded Kosovo and SAA unconnected. EU FMs meeting 28 Jan resolved to offer interim political pact to be signed 7 Feb, relaxing visa requirements and increasing trade, educational cooperation. Netherlands opposed signing full SAA before handover of war crimes fugitives to ICTY. Belgrade approved action plan to “protect Serbia’s sovereignty” in event of Kosovo independence 14 Jan. FM Vuk Jeremic warned same day Kosovo could be partitioned. But officials backtracked from threats of chaos and embargo, suggesting extension of “parallel” municipal authorities. Belgrade signed agreement with Russia 22 Jan to sell state-owned oil industry to Gazprom and construct portion of South Stream pipeline.

Further strains in governing coalition between PM Kostunica’s Democratic Party of Serbia (DSS) and President Tadic’s Democratic Party (DS). DSS initially rejected DS decision to hold presidential elections 20 January, later relenting but accusing DS of violating coalition agreement on consensus decision-making. EU leaders meeting 14 December offered to accelerate Serbia EU membership in exchange for cooperation with war crimes tribunal; EU Kosovo mission agreed. Serbia responded in 26 December resolution threatening to withdraw from Stabilisation and Association Agreement (SAA) process and break diplomatic ties if states recognise independent Kosovo. Belgrade also rejected EU Kosovo mission and affirmed “neutrality” policy excluding NATO membership without referendum. Outgoing ICTY Chief Prosecutor Carla Del Ponte 10 December condemned Serbia’s failure to capture fugitives Ratko Mladic and Radovan Karadzic; Serbia’s Chief Prosecutor for war crimes Vladimir Vukcevic endorsed statement claiming Mladic located in Serbia, Karadzic in region, 25 December.

Belgrade initialled Stabilisation and Association Agreement with EU 7 November after ICTY Chief Prosecutor Carla Del Ponte issued positive assessment of Serbia’s cooperation with tribunal. UNSC announced 28 November Serge Brammertz, currently leading Hariri assassination probe (see Lebanon), to replace Del Ponte 1 January 2008. Supporters of newly appointed Novi Pazar mufti and incumbent rival clashed outside mosque, injuring 4. Ruling coalition postponed calling presidential elections until after 10 December deadline for Kosovo status negotiations (see Kosovo). President Kostunica’s Democratic Party of Serbia advocated “neutrality”.

EU postponed signature of Stabilisation and Association Agreement after ICTY Chief Prosecutor Carla Del Ponte gave critical assessment of Serbia’s cooperation 15 October. Del Ponte visited Belgrade 25-27 October to prepare final report on cooperation with tribunal. Split in Serbia’s Islamic community widened as Belgrade-backed clergy attempted to oust Mufti Zukorlic with support from Novi Pazar Mayor Ugljanin. 4 former members of paramilitary group “Scorpions” arrested in Sremska Mitrovica 19 October. 56 neo-Nazis detained in Novi Sad 8 October after clashes with antifascist counter demonstrators.

PM Kostunica and President Tadic issued conflicting statements on foreign policy: Kostunica announced new “neutrality” policy excluding NATO membership and with neutral stance toward EU and other countries; Tadic declared Euro-Atlantic integration first priority. EU concluded negotiations on Stabilisation and Association Agreement; signature hinges on Belgrade’s cooperation with Hague Tribunal. Chief prosecutor del Ponte to report following Belgrade 20-21 September visit.

Belgrade remained focused on Kosovo (see Kosovo). In southern Serbia, ethnic Albanian gunman killed after exchange of fire between police and uniformed gunmen robbing cars on road leading to Kosovo 4 August.

Belgrade hardened position on Kosovo as parliament approved resolution 24 July, affirming province as “inseparable” part of country and warning of “appropriate actions” in line with international law if constitution violated.

ICTY Prosecutor Carla Del Ponte praised new government’s cooperation with tribunal after 4 June Belgrade visit. EU invited Serbia to restart Stabilisation and Association Agreement negotiations 7 June; talks resumed 13 June. War crimes suspect Vlastimir Djordjevic arrested in Montenegro 17 June with support from Serbian authorities. In Sandzak, police arrested 3 suspected of involvement in Islamist militant organisations in Novi Pazar 7 June; discovered large weapons cache 11 June.

Parliament approved new government led by acting PM Kostunica, minutes before constitutional deadline 15 May. Coalition includes Democratic Party (DS), Democratic Party of Serbia, G-17 and New Serbia party. Parliamentary Speaker Tomislav Nikolic, from ultranationalist Radical Party, resigned after 5 days in post; Oliver Dulic (DS) elected in place. 31 May arrest of war crimes suspect General Zdravko Tolimir seen as positive signal to EU. Special Court for Organised Crime sentenced 12 men, including former police officers, to 8-40 years for 2003 assassination of PM Djindjic.

Suspected Wahhabi militant Ismail Prentic shot dead 20 April in police raid on group accused of planning suicide bombings in Sandzak. Talks on formation of coalition government continued. Democratic Party called for resumption of parliament constituent session and election of parliamentary speaker. Liberal Democratic Party merged with Civil Alliance of Serbia 7 April. Assassination attempt against journalist Dejan Anastasijevic 14 April.