Bosnian Official: Progress For 2010 EU Application

`It is still too early. My advice is not to apply,` Valentin Inzko told Reuters.

The leader of Bosnia's Serb half said on Friday that officials had made some progress in stalled talks that could help pave the way for a European Union appplication in early 2010.

After a war that left 100,000 dead in what was once central Yugoslavia, the country has been ethnically divided with frequent tensions between the Serb and Muslim-Croat halves that could threaten stability and progress across the Balkans.

Serb Republic Prime Minister Milorad Dodik told Reuters he hoped in the coming two months to resolve a key dispute on what state property belongs to the federal government.

Such a deal would be key to ending an international protectorate office overseeing Bosnia called the Office of the High Representative 14 years after the end of the war.

"It is clear that to proceed with candidate status for the European Union, we must complete the transition from the OHR to a special representative of the European Union," said Dodik.

"If we complete the transition by autumn we could apply for European Union membership next year and probably obtain candidate status in 2010."

Dodik spoke after a series of talks in the Croatian seaside resort of Dubrovnik with other Bosnian leaders as well as Swedish Foreign Minister Carl Bildt, whose country recently took over the rotating EU presidency, and U.S. Deputy Secretary of State James Steinberg.

The OHR high representative, who has the power to fire officials or overturn laws seen as contradicting Bosnia's 1995 peace treaty, said Bosnia would not be ready to apply for EU membership this year.

"It is still too early. My advice is not to apply," Valentin Inzko told Reuters. "It could be next year, yeah, but to get the status of a negotiating country is again a different issue."

Albania and Montenegro have already applied for EU membership in 2009 and Serbia is expected to follow later this year, perhaps after the German elections in September.

Inzko expressed some doubts about Dodik's expressed support for EU and NATO progress.

"He gave a commitment today that he would strengthen this process of Euro-Atlantic integration," the international envoy said. "He is verbally in favour of European integration, of quick NATO membership, but we must see how this will translate into concrete actions when laws are passed."

Some diplomats and observers say Dodik's push for strong regional powers in the Serb Republic could weaken Bosnia and in a worst-case scenario spark a new outbreak of fighting.

"How could I be a problem? The Serb Republic is stable," Dodik said. "Even in the economic crisis it has proved stable. How can I be the problem?