However, the global economic crisis dealt a setback to Serbia's economy. Serbia has set integration in the European Union as its key foreign policy goal, but its prospects have been clouded by concerns of some EU countries that it has not done enough to normalize relations with its former Kosovo province, which declared independence in 2008. U.S.-Serbian relations, although positive in many respects, have also been negatively affected by the leading role played by the United States in promoting Kosovo's independence. Negotiations on forming a new government were difficult. Unusually, despite having secured many more seats that the Socialists, the Progressives ceded the position of Prime Minister to Socialist leader Ivica Dacic. After the ICJ ruling, under strong EU pressure, Serbia agreed to hold talks with Kosovo under EU mediation. Foreign Policy

Since 2008, Serbia's foreign policy has focused on two main objectives—integration into the European Union and hindering international recognition of the independence of Serbia's former Kosovo province by legal and diplomatic means. Although the United States has offered to "agree to disagree" with Serbia over Kosovo, the issue may continue to affect relations, particularly as the United States remains Kosovo's most powerful international supporter. Serbia submitted its application for EU membership in December 2009. Noting the progress made in the EU-brokered talks with Kosovo, the Commission recommended that Serbia be given the status of a membership candidate if it re-engages in the dialogue with Kosovo and implements in good faith agreements already reached. The deal will permit Kosovo to participate in the institutions under the name "Kosovo*," with the asterisk referring to both U.N. Security Council Resolution 1244 (which Serbia says recognizes Kosovo as part of its territory) and a 2010 International Court of Justice ruling that Kosovo's declaration of independence did not contravene international law. In response to the conclusion of these agreements, in March 2012 the EU accepted Serbia as a membership candidate. On April 22, 2013, in part as a result of the signing of the April 19 normalization agreement with Kosovo, the European Commission recommended that the EU grant Serbia a starting date for its EU membership talks. NATO

In December 2006, Serbia joined NATO's Partnership for Peace (PFP) program. PFP is aimed at helping countries come closer to NATO standards and at promoting their cooperation with NATO. Due in part to memories of NATO's 1999 bombing of Serbia and anger at the U.S. role in Kosovo's independence, public support for NATO membership is low. U.S. Policy

Serbia has played a key role in U.S. policy toward the Balkans since the collapse of the former Yugoslavia in 1991. In April 2013, 12 persons went on trial in Belgrade for the attack. In May 2009, Vice President Joseph Biden set the tone for the Obama Administration's policy toward Serbia, in a trip to the region that also included Kosovo and Bosnia, in addition to Serbia. He expressed the belief that the United States and Serbia could "agree to disagree" on Kosovo. Biden stressed that the United States did not expect Serbia to recognize Kosovo's independence, and would not condition U.S.-Serbian ties on the issue. However, he added that the United States expects Serbia to cooperate with the United States, the European Union, and other key international actors "to look for pragmatic solutions that will improve the lives of all the people of Kosovo," including the Serbian minority.
Serbia faces an important crossroads in its development. It is seeking to integrate into the European Union (EU), but its progress has been hindered by tensions with the United States and many EU countries over the independence of Serbia's former Kosovo province. The global economic crisis poses serious challenges for Serbia. Painful austerity measures have been required for Serbia by the International Monetary Fund and other international financial institutions.
Serbia held parliamentary and presidential elections in May 2012. One party in the former government, the Socialist Party, did much better than anticipated in the parliamentary vote. In another surprise, in the presidential vote the incumbent president Boris Tadic was defeated by Tomislav Nikolic of the nationalist Progressive Party. After protracted negotiations, in July 2012 the Progressives formed a new government with the Socialists and another group, the United Regions of Serbia. Socialist leader Ivica Dacic was elected as Prime Minister.
Serbia has vowed to take all legal and diplomatic measures to preserve its former province of Kosovo as legally part of Serbia. Nevertheless, nearly 100 countries, including the United States and 22 of 27 EU countries, have recognized Kosovo's independence. Russia, Serbia's ally on the issue, has used the threat of its Security Council veto to block U.N. membership for Kosovo. After the International Court of Justice ruled in July 2010 that Kosovo's declaration of independence did not contravene international law, the EU pressured Serbia to hold talks with Kosovo starting in March 2011.
Serbia's other key foreign policy objective is to secure membership in the European Union. In March 2012, the EU accepted Serbia as a candidate for membership after having judged that Belgrade has made sufficient progress in reaching and implementing agreements with Kosovo on a series of practical issues. In April 2013, the EU Commission recommended that the EU give Serbia a date for the start of the talks. Even if talks formally begin late this year, many years of negotiations will be required before Serbia can join the EU.
In December 2006, Serbia joined NATO's Partnership for Peace (PFP) program. PFP is aimed at helping countries come closer to NATO standards and at promoting their cooperation with NATO. Although it supports NATO membership for its neighbors, Serbia is not itself seeking NATO membership. This may be due to such factors as memories of NATO's bombing of Serbia in 1999, U.S. support for Kosovo's independence, and a desire to maintain close ties with Russia.
U.S.-Serbian relations have improved since the United States recognized Kosovo's independence in February 2008, when Serbia sharply condemned the U.S. move and demonstrators sacked a portion of the U.S. Embassy in Belgrade. During a 2009 visit to Belgrade, Vice President Joseph Biden stressed strong U.S. support for close ties with Serbia. He said the countries could "agree to disagree" on Kosovo's independence. He called on Serbia to transfer the remaining war criminals to the former Yugoslavia war crimes tribunal (since accomplished), promote reform in neighboring Bosnia, and cooperate with international bodies in Kosovo. The United States has strongly supported the EU-led talks between Kosovo and Serbia, while making clear that it plays no direct role in them. The United States has applauded the agreements reached by the two sides, including a key one on normalizing relations in April 2013.