Milka Tadic
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Montenegro has taken a strong step away from the Yugo zone and towards the euro zone by introducing the German mark as an official currency.
If Belgrade rejects Podgorica's proposal for restructuring the Yugoslav state, an independence referendum will be scheduled for the autumn.
Podgorica's stark offer to Serbia on Thursday to abandon the federal structure or accept the results of a Montenegrin referendum on independence, came just days after it signalled its intention to launch its own currency.
Montenegro's president is trying to reconcile Serbia's feuding political forces, while at home his fellow citizens make it clear they wish to be as close to Europe as possible - and as far as possible from Serbia.
After dangerously stoking up the campaign against Montenegro, Belgrade has suddenly offered to continue negotiations with the rebellious republic. It could be the last step before a referendum.
As Montenegro edges towards fiscal independence from Serbia, Milo Djukanovic's latest tour of European capitals looks like an attempt to secure international support for Montenegro before the final break-up of the federation.
Paramilitaries forced out of Kosovo have moved into neighbouring Montenegro, some to find a hiding place and some to join the police.
Former Yugoslav Army chief Momcilo Perisic says squads of well-paid, battle-hardened troops are setting up base in Montenegro - loyal only to Belgrade and promising only trouble for the tiny republic.
The stand off at Podgorica airport last week highlighted a stream of small-scale confrontations between Belgrade and Podgorica that is increasingly successfully undermining Montenegro's efforts to make its own way in the Balkans.
After all the battles he has started and lost in the region, Yugoslav president Slobodan Milosevic has finally taken aim at Montenegro says its president Milo Djukanovic.