EU eyes signing interim pact with Serbia

By Paul Taylor

BRUSSELS (Reuters) - The European Union is considering signing an interim pact on trade and cooperation with Serbia before a February 3 presidential election to try to boost the pro-European incumbent, diplomats said on Friday.

The interim agreement would normally enter into force only when the EU signs a Stabilisation and Association Agreement with Belgrade and pending its ratification, but the Netherlands and Belgium have so far blocked that signature to demand the arrest of a key fugitive war crimes suspect.

"The idea is that the European Commission could be given the green light by foreign ministers next Monday to sign the interim agreement to give the Serbs some positive gesture," a senior EU diplomat said on condition of anonymity.

However, even that move would require unanimous agreement of the 27 EU member states, and as of Friday, the Dutch had not decided to give the go-ahead despite intense lobbying from other capitals, another diplomat said.

Incumbent pro-Western President Boris Tadic faces a tough battle to defeat nationalist Radical challenger Tomislav Nikolic in a runoff after the pro-Russian hardliner took a five-point lead in last Sunday's first round.

Although the presidency has little power, EU leaders are keen to see Tadic win a symbolic victory to bolster pro-European forces on the eve of a turbulent period in Serbia over an expected declaration of independence by Kosovo.

The EU has for months being preparing plans to take over policing and civil administration duties from the United Nations once Kosovo's status had been settled. But, again in a bid not to upset Tadic's chances, it is not expected to begin deployment on the ground until after the election.

"That will not be something for Monday," said a diplomat involved in preparations for the foreign ministers meeting.