Serb coalition eases fears over European rights post

STRASBOURG, France, May 11 (Reuters) Serbia took over chairmanship of the Council of Europe today with a rumoured coalition deal at home appearing to defuse a row over its ability to chair the human rights body.

The post is the highest-profile role in 17 years for Serbia, which spent the 1990s embroiled in wars and isolated under Slobodan Milosevic, and whose transition to democracy has been marked by failed elections and political assassinations.

Outgoing Foreign Minister Vuk Draskovic said Serbia was honoured to chair the 47-member body, based in the eastern French city of Strasbourg. The post rotates alphabetically.

But he reaffirmed Belgrade's view that Kosovo province, whose ethnic Albanian majority expects to get independence soon with Western backing, should remain part of Serbia.

''The century-old dream of a Europe of peace, freedom and democracy are being realised in this generation,'' he wrote in an open letter to the Serbian people.

''But such a Europe, which equally respects each of its states and each citizen... must respect the existing, internationally-recognised borders of Serbia.'' Earlier, an unconfirmed state television report said Serbia's Prime Minister Vojislav Kostunica, a moderate nationalist, and pro-Western President Boris Tadic had agreed a coalition deal after months of feuding.

ULTRANATIONALIST Under the agreement, ultranationalist Tomislav Nikolic would be replaced as speaker of parliament. He is deputy chairman of the Serbian Radical Party which opposes Kosovo independence and the handing over of fugitive general Ratko Mladic to a war crimes court.

Mladic's handover is a key European Union demand blocking Serbia's membership hopes. The Radicals' hostility to the European Union and NATO has raised doubts about Serbia's ability to carry out its role in the rights body.

Rene van der Linden, president of the Parliamentary Assembly of the Council of Europe, said this week that Nikolic's election would hurt ''Serbia's ability to carry out its task''.

EU Enlargement Commissioner Olli Rehn hailed Friday's reports of the coalition pact as ''good progress'' towards the formation of a pro-European reform government.

A January 21 election in Serbia produced a hung parliament and the period since has seen fruitless coalition talks between Kostunica and the Democrats of Tadic.

Kostunica's support for Nikolic had been seen as a possible precursor to an alliance with the Radicals, or an effort to pressurise Tadic into joining Kostunica on his terms.

Failure to set up a government by May 14 would trigger new elections which could coincide with independence for Kosovo. The West fears a nationalist backlash over its loss could further boost the Radicals, Serbia's strongest party.

REUTERS AK HS2202