This report discusses the state of politics in Serbia and Montenegro following the downfall of Serbian leader, Slobodan Milosevec in October 2000. In particular, the report focuses on aid from the United States to support political reforms and the various conditions set regarding the war crimes tribunal.

This report provides background regarding the cooperation of Balkan countries regarding the arrest and transfer of indicted war criminals to the International Criminal Tribunal for the former Yugoslavia (ICTY) in The Hague. Full cooperation with ICTY has been established as a key prerequisite to further progress toward a shared long-term goal for the western Balkan countries: closer association with and eventual membership in the European Union (EU) and NATO.