Slovenia's Turn

For the next six months Slovenia will sit at the epicenter of the EU. Taking on the presidency is an unprecedented challenge for the affluent Alpine country of 2 million people.

Slovenia declared independence from Yugoslavia in 1991. In the years since, it has sprinted towards the West, joining both the EU and NATO in 2004. Now, it's the first new EU member country to lead the 27-nation bloc.

"This is a historic project for us," said Slovenian Foreign Minister Dimitrij Rupel. "It's not normal for us to be asked to lead such a presidency and so we want to make an extra effort."

Slovenia has budgeted 62 million euros ($91 million) as it has hired a slew of translators and advisors to make sure the next six months go over smoothly. The country will be responsible for organizing dozens of conferences, including minister-level meetings. Slovenia sees the presidency as a chance to increase its visibility in Europe.

Kosovo's future will top the agenda

The EU presidency rotates every six months and was previously held by Germany and Portugal. In many ways, Slovenia will carry on the priorities -- such as climate change and job creation initiatives -- started by its predecessors. The three countries decided to combine forces to set an agenda that would provide the bloc with more continuity.

Other agenda points will be determined by events outside the EU's direct control. It's widely assumed that the Serbian breakaway province of Kosovo will declare independence before Slovenia's presidency is up in June of 2008. Recent United Nations Security Council efforts to mediate a solution between Serbia and Kosovo have failed. And the EU has begun to debate how it should react if the southern Serbian province does declare independence.

Rupel said the EU and Kosovo must "agree on what to do next."

Rupel has carefully avoided using the word "independence" when referring to Kosovo, but did say that Europe is ready to "recognize the realities of the situation in the Western Balkans."

"We believe it is high time for the Yugoslav crisis to be over," Rupel told journalists.

Mediator in the Balkans

Slovenian Prime Minister Janez Jansa said his country could play a central role in helping to resolve the dispute. Slovenia has experience of Balkans politics and personalities, Jansa told Reuters. He dismissed concerns that Slovenia might be influenced by strong business ties to Serbia.

"We know the situation very well, also the details which are not easily understandable for countries which are far away," Jansa said.

"We are not one-sided in this case. Slovenia has excellent cooperation with Serbia, also Kosovo, with all former Yugoslav republics."

Yet Slovenia's ability to lead in the area could be tricky given ongoing border disputes with neighboring Croatia. The biggest is resolving the maritime borders in the Bay of Piran. Croatia has claimed half of the bay it shares with Croatia and Italy. That leaves Slovenia without what it feels is an important access to international waters.

Slovenia supports neighbors' EU dreams

Despite the border dispute, Slovenia is supportive of Croatia joining the EU. Croatia is expected to become a member by 2010, and the other West Balkan nations are likely to follow within four to five years.

Yet European countries have become less enthusiastic recently about further expanding the bloc. Slovenia hopes to keep the momentum going, Rupel said.

Serbia's unwavering stance on Kosovo has complicated its own possibility of joining the EU. Rupel stressed that Serbia, as well as the other Balkan countries, have a future as EU members.

"We wish for Serbia to become a member of the European Union as soon as possible," he said.