The European Union will spend 5 billion euros ($6.9 billion) to help the Western Balkans as it seeks to integrate the region into the world's largest trading bloc, EU President Herman Van Rompuy said.

Van Rompuy called on Serbia to continue talks with Kosovo as the nation works to gain EU candidate status year's end. Serbia, the largest of the former Yugoslav republics and the slowest to embrace the EU until the arrest of the last war- crimes suspects, refuses to recognize its former province.

"I want to see all of the Western Balkans become part of the world's largest trading bloc," Van Rompuy said at an EU - Serbia forum in Belgrade today. "Negotiations to join the EU remain a strictly performance-based process and Serbia, which has done a lot on its EU path, needs to continue its dialogue with Kosovo to accelerate the process."

Serbia is looking to additional financial aid as part of its integration process with the EU as it seeks to find a compromise solution with Kosovo, a predominantly Albanian country. The Balkan nations are continuing talks under EU auspices to ease tensions after a trade dispute escalated into violence in July, when a Kosovo policeman was killed and a border post in north Kosovo was set on fire.

Serbian Foreign Minister Vuk Jeremic said the chances for Serbia to be invited to start entry talks with the EU by year- end are "very small."

"One should be cautious," he told reporters today in Belgrade, when asked if the country will at least get the candidate status. "The important thing is that we continue with reforms and recognition of our efforts will surely follow."

Judicial Overhaul Needed

Still, Serbia has "made remarkable progress since 2008 and after it arrested all of the remaining war crimes suspects," Van Rompuy said. "Serbia must complete the overhaul of its judicial system and have friendly relations with neighbors as one of the most important EU principles. This region which saw terrible bloodshed needs regional cooperation more than any other part of the world.

The Western Balkans will get the EU aid in the next two years, while Serbia is set to receive 600 million euros in the period, Van Rompuy said.

Serbia and Kosovo struck an agreement on ''status-neutral documents'' on Sept 2., according to the Serbia's chief negotiator for Kosovo, Borislav Stefanovic. Under the compromise, Serbia will recognize stamps on documents that say ''Kosovo Customs'' without any state insignia such as the Kosovo flag or coat-of-arms, he said.

Equal Treatment

''Serbia expects to be treated as other EU candidate nations aspiring to join the EU,'' Serbian President Tadic said at the same event. ''We don't ask for any privileges, but we cannot accept the imposition of additional conditions for us.''

Kosovo, wedged between Serbia, Montenegro, Albania and the Republic of Macedonia, declared independence in 2008, nine years after North Atlantic Treaty Organization troops drove out Serbian forces from the province. Kosovo is recognized by 22 out of EU's 27 members.