EU hopes for progress on Kosovo

The UN has administered Kosovo since 1999

The European Union has expressed cautious optimism that there may be progress towards a resolution of the dispute over the future of Kosovo.

Foreign policy chief Javier Solana said at a meeting in Brussels the opposing sides were becoming more engaged.

Ethnic Albanians, backed by the US and most of the EU, want full independence but Serbia, supported by Russia, is offering broad autonomy.

The UN has set a deadline of 10 December for resolution.

'Hampered'

Mr Solana said: "I'm happy that this is becoming a more engaging process... I have seen some smiles that for some time I have not seen."

However the Serbian and Kosovo Albanian delegations showed little sign of budging from their positions on Sunday.

Serbian Foreign Minister Vuk Jeremic said the deadline was hampering the talks.

"It disincentivises the sides to actually engage in best faith and arrive at a compromise," he said.

Kosovo President Fatmir Sedju said Serbia had "once again presented their view of substantial autonomy".

"With these plans Serbia would retain sovereignty over Kosovo. Of course Kosovo rejected this entirely."

The EU, US and Russia will next meet the two sides in Vienna on 22 October "followed by an intensive schedule of face-to-face meetings in the following weeks," the troika said.

The UN has administered Kosovo since a Nato bombing campaign forced out Serbian troops in 1999.

Sunday's talks were set after a previous round on the sidelines of last month's UN General Assembly in New York failed to end the impasse.

Kosovo Albanians have expressed frustration at the slow progress and have threatened to unilaterally declare independence - a move certain to inflame Serbian opinion.

The EU plans to send nearly 2,000 police and judicial officers to Kosovo and has suggested this will happen regardless of a declaration of independence.

Coinciding with the talks is a huge Nato exercise in Croatia - the first time a non-Nato member has hosted such an event.

The Rapid Reaction Force has been rehearsing a crisis situation in the Balkans.