Serb unease at Kosovo celebration

As Kosovo celebrates the first anniversary of its declaration of independence, Serbs adopt a downcast but defiant tone.

The party mood didn't reach the Serb half of Mitrovica.

Across town Kosovo Albanians celebrated the first anniversary of the declaration of independence from Serbia.

But ethnic Serbs bitterly oppose the new state and refused to join the festivities.

SOUNDBITE (Serbian) FEMALE MITROVICA RESIDENT, SAYING:

"There is no independent state here and there never will be. We Serbs will stay here and will survive."

(SOUNDBITE)(Serbian) MALE MITROVICA RESIDENT, SAYING:

"This day means nothing to us."

Kosovo's independence has been accepted by 54 mainly Western states.

They include the US and most members of the European Union.

The mood among Serbs in Belgrade was one of sad resignation.

SOUNDBITE(Serbian) BELGRADE RESIDENT MILEVA PETRONIJEVIC, SAYING:

"I'm sorry because Kosovo has gone, Kosovo is Serbian, but we can do nothing about the situation now."

Serbia is eager to join the EU and knows that failure to recognise Kosovo could complicate their accession.

SOUNDBITE (Serbian) POLITICAL ANALYST AND JOURNALIST DJORDJE VLAJIC SAYING:

"People in Serbia on one hand see Kosovo as a very emotional thing for them and a loss, and that's the majority of people, but some have realised that Serbia is losing influence in Kosovo"

Up to 200,000 Serbs and other ethnic minorities left Kosovo after NATO bombing in 1999. Most moved to Serbia.

About 120,000 Serbs remain in Kosovo.

The new country faces enormous economic challenges.

Unemployment is rife, infrastructure in a state of disrepair, and almost half the population subsists below the poverty line.

Jim Drury, Reuters