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The European Union – as it currently is, or under its previous name ‘the European Community’ – has been present in the Balkan region for over 20 years. In 1980, the Community signed a Cooperation Agreement with the Socialist Federal Republic of Yugoslavia. A Delegation of the European Commission was opened in Belgrade in 1981. The Cooperation Agreement was abrogated by the EC in November 1991 when the former Yugoslavia disintegrated, but the Delegation in Belgrade remained in place and has been continuously operational.

Following the disintegration of the Socialist Federal Republic of Yugoslavia and the violence that ensued in Croatia and Bosnia and Herzegovina, the EC maintained a political presence in the new self-styled Federal Republic of Yugoslavia comprising of Serbia and Montenegro, but the relations were at a low level based on the sanctions regime introduced by the United Nations.

With the victory of a wide coalition of Serbian democratic forces at the federal elections in 2000, relations with the then Federal Republic of Yugoslavia were raised to the formal level already achieved by it's Western Balkan neighbours and Belgrade and Podgorica embarked on the road of European integration that should eventually offer an opportunity to become a full member of the EU. This opportunity has been formalised on the basis of decisions taken at the Thessaloniki Summit in June 2003 and confirmed on several occasions by the EU, Serbia is a potential candidate country for the EU accession.

Since 2001 Serbia has benefited from the EU policy advice provided through the EU-FRY Consultative Task Force (CTF), later replaced by the Enhanced Permanent Dialogue (EPD). The task of EPD is to encourage and monitor reforms on the basis of the European Partnership adopted by the EU Council in June 2004 and updated in January 2006. Several sectoral groups have been set up to deepen technical discussions. After the end of the State Union, the Enhanced Permanent Dialogue has continued separately both with Serbia as well as with Montenegro.

The Stabilisation and Association Process (SAP) is the EU’s policy framework for the countries of the Western Balkans - Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Serbia and Montenegro.

The main elements of this long-term commitment to the region were proposed in one Commission Communication (COM (99) 235 of 26 May 1999). The Zagreb Summit (PDF, 13.10 KB), of 24 November 2000, set the seal on the SAP, by gaining the region’s agreement to a clear set of objectives and conditions (Final Declaration of the Zagreb Summit). The SAP supports the Western Balkan countries’ development and preparations for future EU membership by combining three main instruments: the Stabilisation and Association Agreements, autonomous trade measures and substantial financial assistance. Regional co-operation constitutes a cornerstone of the SAP.

In May 2003, a Commission Communication on “The Western Balkans and European Integration” (PDF, 135.35 KB) proposed to enrich the EU policy towards the region with elements taken from the Enlargement process, reinforcing the ultimate goal of extending membership to the Western Balkans. The European Council of Thessaloniki (19-20 June 2003) confirmed the SAP as the policy framework of the EU course of the Western Balkan countries all the way to their future accession and endorsed the Thessaloniki Agenda.

The Thessaloniki Agenda strengthened the SAP so that it can better meet the new challenges. It established the European Partnerships with the Western Balkan countries, which identify short and medium term priorities which each country needs to address on its way to the EU. The first European Partnership (PDF, 97.43 KB) for the then State Union of Serbia and Montenegro was adopted in 2004 and the current revised European Partnership valid for Serbia was adopted on 30 January 2006.

The EU – Western BalkansSummit of Thessaloniki (21 June 2003), which was a follow-up to the Zagreb Summit of 2000, provided an opportunity for the EU and the Western Balkan countries to assess three years of work in stability, democracy and economic recovery in all countries of the region and saw the adoption of the Thessaloniki Declaration. On the basis of decisions taken at the Thessaloniki Summit in June 2003 and confirmed on several occasions by the EU, Serbia is a potential candidate country for the EU accession.

Since 2001 Serbia has benefited from the EU policy advice provided through the EU-FRY Consultative Task Force (CTF), later replaced by the Enhanced Permanent Dialogue (EPD). The task of EPD is to encourage and monitor reforms on the basis of the European Partnership adopted by the EU Council in June 2004 and updated in January 2006. Several sectoral groups have been set up to deepen technical discussions. After the end of the State Union, the Enhanced Permanent Dialogue has continued separately both with Serbia as well as with Montenegro.

The Thessaloniki Agenda also launched a high-level multilateral political forum, the EU-Western Balkans Forum, as an integral part of the SAP. This initiative provides a genuine European framework for addressing the issues with regional and international implications. The aim is to provide a supporting political framework for achieving the objectives of the SAP, including regional co-operation, and to increase regional ownership of the process. A political dialogue at ministerial level was also introduced after the 2003 Thessaloniki Summit. On 29 September 2003, the Council adopted a Joint Declaration on Political Dialogue between the European Union and the then State Union Serbia and Montenegro (2003/C 240/01).

Following the dissolution of the State Union and Montenegro's declaration of independence after a referendum in May 2006, the political dialogue continued with Serbia, as a successor state of the State Union.

The Commission prepares annual Progress Reports (Serbia 2006 Progress Report) which monitor and assess the political and economic situation in the countries of the region including Serbia and the implementation of reforms and related measures. The next Progress Report on Serbia is due in November 2007.

In its Feasibility Report of 12 April 2005, the Commission concluded that Serbia and Montenegro is sufficiently prepared to negotiate a Stabilisation and Association Agreement (SAA) with the EU. On 25 April 2005, the EU Council endorsed the Feasibility Report and invited the Commission to submit the negotiating directives for the SAA. In line with the “twin-track” approach the negotiations with the State Union and the two constituent Republics were launched in October 2005.The Commission made clear that the continuation and pace of talks would depend on the progress in addressing by Serbia and Montenegro of issues highlighted by the Commission and the EU Council, including achievement of full co-operation with the International Criminal Tribunal for the former Yugoslavia (ICTY) without delay.

However, since the country did not meet its commitments on co-operation with the International Criminal Tribunal for former Yugoslavia (ICTY) the Commission decided to call off the SAA negotiations on 3 May 2006. The Commission stressed its readiness to resume negotiations as soon as full cooperation with the ICTY is achieved. The Council supported the Commission's decision. After the dissolution of the State Union of Serbia and Montenegro, the Council adopted amended negotiating directives for an SAA with Serbia, since Serbia had become the successor state of the State Union of Serbia and Montenegro. After the parliamentary elections in Serbia, in February 2007 the Council welcomed the Commission’s readiness to resume the SAA negotiations with a new government provided that it would show clear commitment and take concrete and effective action for full co-operation with the ICTY. As the new coalition government formed in May 2007 met these conditions, the Commission resumed the SAA negotiations with Serbia. on 13 June 2007.

On 10 September 2007 Serbia and the European Commission concluded the negotiations for the SAA that needs now to go through the process of initialling, signature and ratification. Before the Council takes the decision to sign the SAA, the Council and the Commission will jointly review Serbia's performance in developing the necessary legislative framework and administrative capacity to implement its obligations under the SAA, and on full co-operation with ICTY.

Once in force, the SAA will establish a contractual relationship between Serbia and the EU through a comprehensive agreement between the European Communities and their Member States, of the one part, and the Republic of Serbia, of the other part. Similar to the “Europe Agreements” with countries of the Central and Eastern Europe, the SAA will provide a legal framework for the relations between the EU and Serbia for the entire period prior to the possible future accession.