Pristina, Belgrade to Seal Deal on North Kosovo in April

The EU Foreign Policy Chief Catherine Ashton said she was hopeful that Serbia and Kosovo will be able to "finalise a deal" on April 2, when the next round of talks is scheduled.

An hour before midnight, after a day of marathon separate and joint sessions with both prime ministers, Ashton told reporters: "It is my personal view that we are very close to solution to some specific issues such as northern Kosovo."

Kosovo has demanded that Serbia dismantle its so-called "parallel" structures in the north, while Serbia wants to see broader autonomy offered for all Serb-populated areas in Kosovo first.

Since the end of the Kosovo conflict in the late 1990s, the north of Kosovo has been beyond the Kosovo government's control while Serbia has continued to finance local security, judicial, health and educational institutions.

Serbian Prime Minister Ivica Dacic said that there are still some differences for an agreement on the north regarding the competencies of the Serbian-majority municipalities "but we have built a relationship to respect the deals and resolve the most difficult issues.

"Serbia doesn't want to buy time or play any games with EU or Pristina representatives. We have no time because we must lead our people into normality. This is the first time that the EU is not giving us an ultimatum but is pushing us towards solutions," Dacic said.

Kosovo Prime Minister Hashim Thaci said: "I can confirm that we have achieved progress on some of the issues. As two peoples and countries we have lost lot of time spending a century in enmity. I hope for the new chapter of good relations".

Before the seventh round of talks held today, Ashton travelled to Belgrade and Pristina last week to try to resolve the future shape of the judicial system in the north.

The EU-mediated technical dialogue between Kosovo and Serbia was launched in March 2011, three years after Kosovo declared independence.

The aim is to normalize relations between the two countries, both of which aspire to EU membership, in the context of Serbia's continued refusal to recognise Kosovo's independence.

"Normalisation" of relations with Kosovo, which declared independence from Serbia in 2008, is the EU's main precondition for Serbia as it continues to pursue EU membership.

The European Commission is currently drafting a progress report on Serbia that will be published on April 16. On the basis of the report, the European Council will decide on June 28 whether to grant Serbia a start date for accession talks.