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Saariselkä, Finland -- European Union foreign ministers agreed to ease sanctions on Kosovo and Montenegro imposed during the recent Kosovo conflict, but failed at an informal weekend meeting in Finnish Lapland to reach a common position on Serbia.
The ministers' inability to agree an "energy for democracy" initiative means the people of Serbia are facing a bleak winter. The initiative would have provided Serb municipalities controlled by opponents of Slobodan Milosevic, the Yugoslav president, with fuel. The United Nations warned last week of a humanitarian crisis once the cold weather starts in the Balkans in about two months.
The meeting agreed, however, that Kosovo and Montenegro should be exempted from the oil embargo and ban on commercial flights imposed during the war on Yugoslavia.
The European Commission was asked to frame proposals to reverse the sanctions this week so that ministers can decide formally on their lifting at a meeting in Brussels on September 13.
In addition, it was agreed that the policy of discouraging sporting links between Serbia and EU countries should be abandoned. This sanction, which took the form of an appeal to EU sporting bodies rather than an outright prohibition, has proved difficult to enforce.
The ministers argued it was penalising the Serbian people, with whom they have no quarrel, rather than damaging the leadership in Belgrade.
The weekend discussions highlighted the problems facing the EU in trying to promote democracy and dislodge Mr Milosevic. Hans van den Broek, acting external affairs commissioner, said the energy for democracy idea, proposed by the Netherlands and Greece, failed to win agreement because it would have "given succour" to the Serbian government, which runs the energy monopolies.
Robin Cook, UK foreign secretary, proposed that the EU launch a "contract for Serbia" in which it would set out what the Serbs would gain in material and political terms by embracing democracy and getting rid of Mr Milosevic. The benefits would include membership of international bodies that would help with rebuilding the country.