Serbia may drop a £600m (€787.6m) international debt bill on Kosovo in revenge for its declaration of independence.

The European Union was quick to congratulate pro-Western Boris Tadic after he won Serbia’s presidential election, beating an ultranationalist ally of former President Slobodan Milosevic by a narrow margin.

Pro-Western incumbent Boris Tadic won Serbia's presidential election today, beating an ultranationalist ally of former President Slobodan Milosevic by a narrow margin.

Serbia’s pro-Western government which toppled former President Slobodan Milosevic may fall under the onslaught of nationalists and defectors from the crumbling governing block, the prime minister warned today.