This note provides a political and economic overview of the current situation in Serbia. It looks at the halting progress which Serbia is making toward integration into the EU, held up to a large extent by Serbia's failure to cooperate fully with the International Criminal Tribunal for the former Yugoslavia, and at the dynamic political landscape of 2008 with both presidential and parliamentary elections. Serbia continues to have difficult relationships with some of its neighbours, particularly Kosovo, and is awaiting the outcome of the International Court of Justice ruling on the legality of Kosovo's February 2007 declaration of independence. The note also looks at the current economic situation in Serbia. While Serbia had seen strong growth since 2000, accompanied by the implementation of reforms, following the conflicts and crises of the 1990s, Serbia has suffered under the global financial crisis, primarily because of its large current account deficit. Serbia also suffers from high levels of unemployment and poverty.