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Serb democrats reach deal to form Cabinet - Tanjug news agency

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BELGRADE, May 11 (RIA Novosti) - Democratic forces in Serbia have reached an agreement on forming a new Cabinet following weeks of fruitless coalition talks, a Belgrade-based news agency said Friday.

A compromise may end a political crisis in the Balkan country after the January 21 parliamentary elections failed to produce an overwhelming majority and prevent the Narodna Skupstina from being dissolved as the May 14 deadline for forming a government neared.

All differences within the democratic bloc have been overcome, Tanjug quoted Velimir Ilic, minister of capital investment and head of the New Serbia party, as saying.

Besides New Serbia, which is a coalition partner of the Democratic Party of Serbia (DSS) headed by outgoing Prime Minister Vojislav Kostunica, the democratic bloc includes President Boris Tadic's Democratic Party and the G-17 Plus party chaired by Finance Minister Mladjan Dinkic.

The B92 television channel said Tadic will order Kostunica to from a new government, where the DSS will also take the interior minister portfolio, while the national security service will be controlled by both the DSS and the Democratic Party.

President Tadic, the head of the National Security Council, will also retain control over security agencies.

The January election gave the victory to the Radical Party, and the European Union repeatedly called for a union between the democratic parties fearing ultranationalists in power in the country, which assumed the chairmanship of the Committee of Ministers in the Council of Europe Friday.

Tuesday's election of hard-line nationalist Tomislav Nikolic as parliamentary speaker was met in the West as a "worrying" signal.

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