EC gravely worried by crime and corruption in Kosovo

"Local authorities' capacities are weak," says the report on implementing EU standards and reforms,, stressing that "decentralization in the interests of all communities is still the key challenge."

"There has been no progress made in solving cases related to the events of March 2004," the EC states, even though the report does not state that these events consisted of mass attacks by Albanian extremists on the lives, property and churches of the Kosovo Serbs.

It also states that "there is much concern over the security situation in the north (of Kosovo)," where "the rule of law has not been established."

According to the report, "about 850 displaced persons have returned voluntarily to regions where they represent the minority in Kosovo, which is less than in the previous period."

"More than 200,000 people from Kosovo are still displaced in Serbia, 16,000 are in Montenegro, while there are 20,000 displaced in Kosovo itself," the document adds.

The court in northern Kosovska Mitrovica, which is made up of EULEX prosecutors and judges, "is working with limited capacities," the EC states, calling for "efforts to be made by the Kosovo and Serbian governments."

There is also a problem with the issuing of passports and visas because "the Serb parallel structures are a special challenge in this area."

An accompanying Strategic Document, which includes an EC analysis on the Western Balkans' progress towards the EU, adds that "stability in Kosovo has been preserved, but it is fragile," warning that "a source of concern are recent incidents and damage to EULEX property".