If Kosovo-Serbia deal fails, violence could recur
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Significance Kosovo politicians are deliberating a deal with Serbia that would trade territory for recognition. Domestic opposition to a deal based on partition is high. Impacts Bosnia and Macedonia will note the emerging US position on Kosovo -- no inviolable borders, and multi-ethnicity no longer a goal in itself. Weak rule of law and lack of legal protection will deter foreign investors, fearing disputes with a politically connected counter-party. The prospect of former UCK parties leaving and neo-Marxist Vetevendosje joining the government leaves the economic outlook uncertain.
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