Serbia must "stop living in the past"- ex-envoy

BELGRADE, July 5 (Reuters) Serbia's deep-seated nationalism makes it ''the most intractable obstacle to stability and progress'' in the Western Balkans, according to the former British ambassador to Belgrade.

Its divided leadership is ambivalent about reform and afraid to cast off a nationalist mindset, David Gowan writes in a policy brief for the think-tank Centre for European Reform.

Led by Prime Minister Vojislav Kostunica, Serbia's opposition to independence for Kosovo is ''simply out of touch with reality'', according to the former envoy.

Belgrade's demand to restore full sovereignty over the breakaway southern province, which has been run by the United Nations for eight years, takes no account of the view of Kosovo's 90 per cent Albanian majority of 2 million, he says.

Nor does it even acknowledge the fact that Kosovo Albanians would make up 20 per cent of Serbia's population and would have to be represented in parliament and in government.

Serbia's policy reflects ''the leadership's continued reluctance to accept (ethnic Albanians) as fellow citizens'', says Gowan, who witnessed the 1998-99 Serb crackdown on Kosovo Albanian rebels, which claimed thousands of civilians lives.

Serbs' failure to examine objectively what was done in Kosovo prevents them from seeing that ''the overwhelming majority in Kosovo will never accept the transfer of ultimate political authority from the UN back to Belgrade.'' Gowan left the British embassy at the end of 2006.

His views are broadly shared by United States ambassador Michael Polt, who ends his Belgrade assignment this summer. The United States and Britain are part of the 6-member Contact Group guiding diplomacy to a decision on Kosovo's future status.

Russia is the member which backs Serbia on Kosovo and has blocked a pro-independence resolution at the United Nations.

Belgrade needs to ''stop living in the past'', says Gowan. It must realise that sustained an unambiguous action is now needed to bring war crimes fugitive Ratko Mladic to justice before the Hague tribunal, to prove it adheres to European values.

REUTERS AGL RK1856