"Our bilateral relations with Croatia started to improve, in spite of entirely opposite assessments of the 1991-1995 conflict. We are encouraged by the reconciliatory rhetoric of the newly elected Croatian President, Ivo Josipovic, and his readiness for cooperation with Belgrade," Jeremic said at the meeting of the Adriatic-Ionian Council, which was also attended by Croatian Foreign Affairs and European Integration Minister Gordan Jandrokovic.

Jeremic also commented on the recent re-opening of negotiations on the border, that were on hold for the past seven years, stressing this was "an important beginning".

The next negotiating round will be held next month, and both sides have confirmed their commitment to making progress, Jeremic said.

According tot he Serbian Beta news agency, Jeremic said in his talks that this was the right time for partnership among peoples of the Balkans, stressing that Serbia, together with its two key neighbours Croatia and Bosnia-Herzegovina, was working to "achieve reconciliation and permanent stability,"

"I believe that the three countries comprising the main Balkan triangle - Croatia, Bosnia-Herzegovina and Serbia - have a special obligation to be the lynchpins of changes ... the vicious circle must be broken," Beta cited Jeremic as saying.

He underlined Serbia's commitment to Bosnia's sovereignty and territorial integrity.

The meeting in Ancona, chaired by Italian Foreign Minister Franco Frattini, was also attended by the foreign ministers of Albania, Bosnia-Herzegovina, Montenegro, Slovenia and Serbia and the Greek deputy foreign minister.

Frattini invited EU Commissioner for Regional Policy Johannes Hahn and Lithuania's deputy foreign minister Sarunas Adomavicius, who attended the meeting as guests.

The ministers-signatories to the Adriatic-Ionian Initiative adopted the declaration on the support for the EU strategy for the Adriatic-Ionian region and an Ancona declaration.