By Oana Lungescu BBC News, Brussels

As the European Union debates whether to freeze accession talks with Turkey, a keenly awaited report by the European Commission also marks a pause in the progress of the Balkan countries towards eventual membership of the bloc.

The doors of the EU are likely to remain closed for many years after Bulgaria and Romania join next January.

The report says that their accession, under stricter conditions than ever before, should serve as a lesson for dealing with future candidates.

The fight against corruption and organised crime - which some still see as open problems in Bulgaria and Romania - should be tackled at an early stage, as should the reform of the judiciary and the civil service.

Amid growing public fears about expansion, the report makes clear the EU should keep its commitments to the Balkans, but refrain from setting any dates for the admission of new members.

Despite some progress by all the EU hopefuls, the report describes a region beset by widespread corruption, weak judges and civil servants under political influence.

Croatia is the most advanced of the Balkan candidates. Having started membership talks in October 2005, it hopes to join the bloc in 2009. Although there is no formal timetable, EU officials believe this small and prosperous country could become an EU member by the end of the decade.

But despite its head-start, Croatia still has problems in dealing with ethnic Serbs, border disputes with neighbouring Slovenia and a property row with another neighbour, Italy. The report also insists that "there is considerable scope for improvement in the judiciary, public administration and the fight against corruption." Here are some key concerns:

• "The existing legal administrative system is cumbersome and needs simplification. The wide discretionary scope in legislation leads to inefficiency and legal uncertainty and facilitates corruption. The civil service continues to suffer from undue political influence, high staff turnover and a lack of qualified personnel."
• Judicial reform is "at an early stage and the judicial system continues to suffer from severe shortcomings. More needs to be done to reduce the length of court proceedings, improve case management, rationalise the court network and ensure proper enforcement of judgements."
• "Many allegations of corruption remain uninvestigated and corrupt practices usually go unpunished. Full implementation of an anti-corruption programme and strong political will to step up efforts are needed, especially on high-level corruption."
• "More efforts are needed to combat intolerance and to encourage reconciliation as well as to properly investigate and prosecute those responsible for apparently ethnically motivated crimes. Bias against Serb defendants still needs to be fully addressed. Also, the problem of witness protection has become more acute. Progress on refugee returns has slowed down."
• "Little progress has been made towards finding definitive solutions to various pending bilateral issues with Croatia's neighbours, particularly as regards border demarcation."
• Croatia is the only Balkan candidate described as a functioning market economy, but "subsidies to loss-making enterprises and a high level of current spending continue to burden the government budget. The pace of structural reforms has generally been slow."
• "Increased efforts are needed, especially as regards money laundering and procedures for acquisition of real estate by EU nationals."

Macedonia was given EU candidate status last December. However, the European Commission does not recommend starting membership talks this year, because the pace of reforms has slowed down.

Although the report praises the conduct of general elections last July, there are concerns that the new centre-right coalition has shunned the main ethnic Albanian party and replaced hundreds of civil servants and managers of state companies with people loyal to those in power. Inter-ethnic relations are deemed to have improved, but the report calls for more co-operation and political consensus, as well as the continued implementation of the Ohrid peace agreement. It was mediated by the EU and Nato in 2001 to end months of clashes between government forces and ethnic Albanian guerrillas.

A much delayed law meant to give ethnic Albanians more say in the police has just been adopted, but there are many other concerns highlighted in the report.

• "There were still irregularities before and during the elections. Major efforts will be required to ensure that standards are fully met during the next elections. A constructive dialogue, in particular in parliament, among all political parties in the government and the opposition is needed to ensure the proper functioning of the institutions."
• "Appointments and dismissals in the administration continue to be politically influenced. Large-scale changes occurred in the administration after the change of government."
• "Improving the independence and efficiency of the judiciary remains a major challenge and very strong political will is needed to tackle corruption."
• "Telecommunication tapping still takes place in absence of a proper legal framework."
• "The functioning of the market economy is still impeded by institutional weaknesses, such as the slow speed of administrative procedures, corruption, red tape and a low degree of legal certainty. Shortcomings in the judiciary continue to be bottlenecks, impeding a faster improvement in the business climate. The considerable informal sector continues to cause major distortions in the economy."
• "Renewed efforts are needed, with a constructive approach" to solve the problem of the country's name at the UN. Greece, which has a region called Macedonia, is blocking international recognition of the former Yugoslav republic under the same name.

Albania is a potential candidate country. Last June, it signed a Stabilisation and Association Agreement - the first step on the tortuous road to EU membership - which has yet to enter into force.

The report says that some progress has been made on democracy and the rule of law, including on the key priorities of fighting corruption and organised crime. Albania has maintained a constructive policy towards neighbouring UN protectorate Kosovo, where the majority population are ethnic Albanians, and Macedonia, which has a large Albanian minority.

But serious concerns remain about political in-fighting between the government and the opposition, which is delaying key electoral reforms. The report says:

• "Appointments in the administration continue to be politically influenced. Public service management, career structures and pay remain poor."
• "The fight against corruption has led to large-scale public service dismissals. Further institutional measures against corruption are now needed, as it remains a serious problem."
• "Enforcement of international standards on torture prevention, prison conditions, and the rights of detainees, particularly in pre-trial detention, remain weak. The legal framework for media freedom remains inadequate and poorly implemented." On the protection of minorities, "implementation of international commitments remains incomplete and further efforts are needed to promote tolerance. Roma children are particularly vulnerable to human trafficking."
• "Shortcomings in the business climate, such as legal uncertainty and weaknesses in law implementation, poor infrastructure, or unreliable power supply impede economic development. Enforcement of property rights continued to be weak and only marginal progress was achieved in improving efficiency of the judicial system. Efforts in tackling and formalising the considerable grey economy need to be further accelerated."
• Trafficking of drugs and human beings remain a serious problem.

Bosnia and Hercegovina is also a potential candidate, which hoped to conclude a Stabilisation and Association agreement this year. But the European Commission says progress has slowed down and a number of important issues remain to be tackled before negotiations can be concluded.

The report describes the October general elections as a step forward, but calls for a reform of the constitution to ensure a better functioning of the state and for the implementation of a key reform of police forces, largely held back by the Bosnian Serbs. It also mentions the need for more co-operation with the International Criminal Tribunal for the Former Yugoslavia to arrest top war crimes suspects Ratko Mladic and Radovan Karadzic.

Other concerns include:

• "Corruption remains a serious issue. Cases need to be investigated and prosecuted more vigorously."
• "Ethnic discrimination remains a critical issue and concrete efforts are needed to combat intolerance. Separation of children at schools along ethnic lines remains a serious issue."
• "Little additional progress has been made towards ensuring the existence of a real internal market within Bosnia and Hercegovina."
• "No new legislation against money laundering has been adopted and law enforcement remains weak." Other issues of serious concern are weak border controls, human trafficking and the fight against organised crime.

Having split peacefully from Serbia after a referendum in May, the newest state in the Balkans also ranks as a potential candidate country. Following independence, Montenegro began negotiations on a Stabilisation and Association Agreement with the EU. But the report says the country needs to adopt a new constitution in line with European standards, strengthen its fledgling institutions, sustain the pace of reforms and continue co-operation with the International War Crimes Tribunal if it is to conclude negotiations in the next few months.

The report mentions several key concerns:

• "The public administration continues to suffer from serious weaknesses. Its de-politicisation and professionalism need to be fully ensured. Appointments and advancement of judges should be de-politicised and based on professional and objective criteria."
• "Corruption remains a widespread problem in Montenegro and the overall legal and institutional set-up presents loopholes which allow for corruption and limit the capacity of the state to effectively prevent and prosecute corruption. The parliament failed to amend the law on conflict of interest, which needs to be substantially reviewed and enforced with determination."
• Customs reform, which is key for an agreement with the EU, has advanced but "duty-free shops have recently been established at land borders, which is a matter of concern, as it increases the risk of smuggling."
• Despite some progress in the fight against crime, "Montenegro is a transit country for drug trafficking and drug use is increasing. The resources and means available for police, in particular in the area of the fight against organised crime, remain inadequate."

Negotiations on a Stabilisation and Association Agreement were frozen last May because of Serbia's failure to arrest the war crimes suspect General Ratko Mladic. The report says negotiations can be resumed as soon as full co-operation with the International War Crimes Tribunal is established.

It goes on to describe Serbia as pivotal country in the region, praising the recent adoption of a new constitution, the country's generally competent administration, as well as its economic achievements, such as continued privatisation and the rise of foreign investments. The report also welcomes Belgrade's constructive approach to Montenegro's independence, but calls for a constructive attitude to the UN-mediated efforts to decide the future status of Kosovo.

Here are key extracts from the report:

• "The reform of the military has continued but with difficulties and resistance from some elements within the army. Civilian oversight of the military is still insufficient."
• "Corruption remains a source of concern. A clear and effective institutional set-up still needs to be put in place."
• "The new law concerning churches and religious organisations does not guarantee the equal treatment of religious groups. A comprehensive anti-discrimination law is still lacking and further efforts are needed to promote tolerance. The issue of property restitution remains outstanding."
• While relations with ethnic Hungarians in Vojvodina have "continued to improve," those with ethnic Albanians in south Serbia remain "tense."
• Serbia "has made notable progress towards being a functioning market economy, but reform efforts need to be continued."
• "Organised crime remains a source of serious concern. There is a need to further reinforce specialised services within police, especially the ones tasked with investigating financial crime. Appropriate legislation on seizure and freezing of assets, bank accounts and the proceeds of crime remains to be adopted."

The EU is set to play a major role in Kosovo once the UN has settled the status of the province in the next few months. The report says the status settlement needs to be politically and legally clear and set out a vision for Kosovo's future development.

The prospect of eventual EU membership is also on offer, but the European Commission makes clear that a huge amount of work remains to be done in all key areas and on the protection of minority rights, described as a "vital issue."

The report paints a bleak picture:

• The focus on the status issue has "delayed reforms. Kosovo's institutions must start to develop a vision for Kosovo's future beyond status with a focus on sound policy-making, prudent fiscal policies, efficient institutions and good governance at all levels."
• "Kosovo's administrative capacity remains weak and the civil service overstaffed. A comprehensive reform of the civil service is needed. Appointments in the administration continue to be politically influenced." Political and ethnic considerations also undermine the independence of the judiciary.
• Corruption "is still widespread and little progress has been made in effectively tackling corruption."
• Despite a public campaign to reach out to minority communities, relations between Kosovo Albanians and Kosovo Serbs have remained strained. "Minorities continue to be in a disadvantaged position and further efforts are needed to combat intolerance. There have been a number of violent attacks against Kosovo Serbs since the summer of 2006. The conditions remain difficult for a sustainable return of refugees and displaced persons." The report adds that judgements in high-profile cases related to the March 2004 ethnic riots remain problematic due to the lack of police diligence, lenient sentencing and a lack of cooperation from witnesses.
• With donor support rapidly declining, the report describes a fragile economy, with high unemployment, lack of respect for property rights, poor infrastructure and unreliable power supply.
• "No progress can be reported in the fight against drugs. Efforts are underway to intensify the fight against organised crime which remains a serious problem in Kosovo. Criminal networks extend to various socio-economic sectors and into politics... Little progress has been made in the fight against trafficking human beings and Kosovo remains a source, transit and destination point for trafficking."