By Ingrid Melander and David Brunnstrom
LUXEMBOURG (Reuters) - European Union foreign ministerssought on Tuesday to overcome differences holding up closerties with Serbia, with some expressing optimism that a pactcould be signed.
Most EU states favour signing the so-called Stabilisationand Association Agreement (SAA) -- a first step to futuremembership -- with Belgrade before Serbia's May 11 election, inwhich ultranationalist radicals may benefit from public dismayat Kosovo's Western-backed secession on February 17.
The Netherlands and Belgium have been blocking signaturefor months, insisting that Serbia must do more to find warcrimes suspects from the 1990s wars in the former Yugoslavia.
The two countries signalled last week they could accept asigning of the SAA in June so long as Belgrade did not benefitfrom any of the trade or other advantages until it proved itwas serious in tracking war crimes suspects.
On Monday, Slovenian Foreign Minister Dimitrij Rupel, whosecountry holds the EU presidency, cast doubt over the viabilityof such a compromise, calling the situation "complicated",after talks with Serbian Foreign Minister Vuk Jeremic.
He appeared more upbeat on Tuesday before talks among by EUforeign ministers in Luxembourg, telling reporters: "We areworking towards signature today on Serbia."
Luxembourg Foreign Minister Jean Asselborn was even morepositive, saying: "There will be white smoke, we are on thepath towards signing today."
EU Foreign policy chief Javier Solana said that, afterovernight work, he believed "it will be possible to overcomedifficulties", while EU Enlargement Commissioner Olli Rehn saidhe was more confident "we will be able to send a very powerfulpolitical signal of Serbia's European perspective".
Rehn said this concerned political and economic relationsand visa liberalisation. When asked about prospects for theSAA, he said: "Let's not shout for victory, there's still workin progress... There will be difficult discussions. I hope wewill have a cool head and see results today."
Jeremic was in Luxembourg for Tuesday's talks and said onMonday he hoped for compromise on the SAA, but significantlythe foreign ministers of major European powers France, Germany,Britain and Spain were not expected to attend, sending morejunior officials to the table.
(Editing by Andrew Dobbie)