Following a year of negotiations, high-level talks in Vienna on 10 March 2007 between Serbian and ethnic Albanian leaders over the future status of Kosovo did not lead to an agreement.
While the Kosovo Albanian government largely accepted the plan drafted by UN Special Envoy Martti Ahtisaari, it was met with strong opposition by the Serbian government.
Ahtisaari is now to submit the plan to the UN Security Council before the end of the month, which will make the final decision on Kosovo's status.
The plan outlines a form of internationally supervised statehood for Kosovo. The province has been under international civil and military administration since the 1999 conflict.
Ahtisaari said: "The parties' respective positions on Kosovo's status do not contain any common ground to achieve such an agreement. No amount of additional negotiation will change that." He added: "It is my firm conclusion that the potential of negotiations is exhausted."
Enlargement Commissioner Olli Rehn restated his support for Ahtisaari's plan and emphasised that "the status settlement will have to be anchored in a clear European perspective, so as to enhance stability in Kosovo and in the wider region".
The UK, which will take over Security Council Chair in April, is in favour of an independent Kosovo. However, two other countries with veto power in the Security Council, Russia and China, want to avoid setting a precedent by forcing Serbia to agree to Kosovo independence.
