EU sees Croatia advance in EU talks, chides Turkey

The European Union told Croatia Tuesday that its negotiations to join the bloc had entered their "final" stage," while chiding Turkey for its failure to improve relations with Cyprus.

In its annual report on countries lining up to join the EU, the executive European Commission also recommended Montenegro be granted EU candidate status, but deferred opening talks with that country because of concerns over rule of law there.

The report made clear the commission's concern over corruption and crime in candidate countries and widespread problems with upholding media freedom.

The report said Albania should also wait before making progress toward EU integration.

Regarding Turkey, EU Enlargement Commissioner Stefan Fuele said Ankara should urgently meet its obligations toward Cyprus.

The EU did not give Croatia a date for completing talks or joining the 27-member bloc because it wants the former Yugoslav state to provide more evidence that it is serious about fighting corruption and coming to terms with the legacy of war. But it still offered encouragement over its bid to join.

"Negotiations with Croatia have entered their final stage," the report said. However, it said, talks will concluded only "once Croatia has met outstanding closing benchmarks."

Turkey's bid has met resistance from powerful member states such as France and Germany. The Commission repeated criticism of Turkey's failure to comply with a 2005 deal, known as the Ankara Protocol, under which it committed to open its ports to Cyprus.

A row with Cyprus, an EU member since 2004, over the northern part of the divided island -- where Turkish troops have been stationed since a 1974 conflict -- has helped slow Turkey's accession process to a standstill.

Turkey and Croatia are among a handful of countries aspiring to become EU members. Also looking to join are Iceland, Albania, Macedonia, Serbia, Montenegro, Bosnia and Kosovo.

ENLARGE MORE OR STAY THE SAME?

However, the EU's enlargement policy has been set back by the global financial crisis, which has reduced public appetite for admitting new member states. Concerns over poor rule of law and corruption in many candidates are also a factor.

The Commission tried to allay such concerns, spelling out potential benefits of admitting new members.

"Enlargement makes the EU a safer place ... It makes us stronger and better equipped to promote our values and interests," Fuele told reporters.

Growing eastward, the Commission argues, will allow the EU to develop better transport corridors for trade, have more impact on climate change policy because EU rules force newcomers to clean up polluting industries, and better control over energy routes.

The membership of Turkey, in particular, could give the bloc more influence over the Middle East and the energy-rich Caucasus, and expand Europe's security eastwards.

To address concerns among some EU members that rule of law issues were overlooked when Romania and Bulgaria were allowed to join in 2007, the Commission postponed giving official candidate status to Albania and delayed starting talks with Montenegro.

Both countries struggle with graft and organized crime.

The report praised Serbia for some improvement in relations with Kosovo, its former province, while reminding Belgrade that more cooperation with the war crimes tribunal for the former Yugoslavia is needed if its membership bid is to move forward.

Obama says U.S. earnest, reaching out to Muslim world

President Barack Obama said on Tuesday that Washington's effort to reach out to the Muslim world was earnest and would help improve U.S. security, although he acknowledged that there was still more work to do.

Obama arrived on Tuesday on a twice-postponed trip to Indonesia, the world's most populous majority-Muslim state. Before leaving on Wednesday, he plans a major speech reaching out to the Muslim world that would tout Indonesia as an example of an emerging democracy and tolerant society.

"With respect to outreach to the Muslim world, I think that our efforts have been earnest and sustained," he said at a joint news conference with Indonesian President Susilo Bambang Yudhoyono.

"We don't expect that we are going to completely eliminate some of the misunderstandings and mistrust that have developed over a long period of time, but we do think that we're on the right path."

Obama still enjoys strong support in Indonesia, even as confidence in him has dropped in other Muslim states since he made a first major speech in Cairo in June 2009 reaching out to the Muslim world.

The long U.S. wars in Muslim nations Afghanistan and Iraq have lost him support, and the lack of movement on peace negotiations between Israel and the Palestinians, which has also sapped his support.

Obama described a range of efforts the United States is making to reach out to Muslims, including education and business initiatives, such as a meeting Obama hosted this year that brought Muslim entrepreneurs from around the world to Washington.

"By broadening the relationship, that strengthens it, it builds trust, creates more people-to-people contact," Obama said.

"That will be good for our security but it will also be good for the larger cause of understanding between the United States and the Muslim world. I think it's an incomplete project we've got a lot more work to do. It's not going to eliminate or replace some tough dialogue around concrete policy issues.

TOUGH TALK ON ISRAEL SETTLEMENT REPORT

Obama was asked about one difficult policy issue at the news conference, Israel's pushing ahead with plans to build 1,300 new apartments for Jewish families in Arab East Jerusalem, despite fierce opposition from Palestinians.

The announcement came just as Israeli Prime Minister Benjamin Netanyahu was in the United States looking to revive Middle East peace talks that have stalled over the issue of Jewish settlement building.

Obama hosted Netanyahu and Palestinian President Mahmoud Abbas in Washington in September in hopes of restarting the talks.

Obama said activity like the apartment building could end up making the peace negotiations more difficult.

"This kind of activity is never helpful when it comes to peace negotiations. And I'm concerned that we're not seeing each side make the extra effort involved to get a breakthrough," he said.

He said that peace efforts would continue. "It is in the interests of the people of Israel and it is in the interests of the Palestinian people to achieve that settlement, to achieve that breakthrough. But each of these incremental steps can end up breaking that trust between the parties," Obama said.