Handing over the former president of Yugoslavia, Slobodan Milosevic, was worth around 35 million Euro in aid. That pledge by the West to help rebuild Yugoslavia’s shattered economy was made in June. So far, the aid has failed to materialise.

Delays over handing over war criminals had held up negotiations. The threat to boycott aid to Yugoslavia prompted Serbian prime minister Zoran Djindjic to extradite Milosevic to the War Crimes Tribunal at the Hague.

Many Serbs feel that Djindjic had sold out to the West in making the deal. His political future now hangs in the balance – aid has to come quickly, if his government is to survive. The Yugoslav economy is on the brink of collaps. Inflation is running at 80 percent, a quarter of Yugoslavs are jobless, 70 percent live at or below the poverty line.

At least the two opposition parties who had brought down Milosevic were working hand in hand. Now Yugoslav President Vojislav Kostunica, a former ally of Djindjic’s, has signed a cooperation agreement with the Bosnian Serb party founded by Radovan Karadzic. As close cooperation with the Hague is a condition for aid, it looks like there will be more problems ahead. Radovan Karadzic now heads the wanted list at the Hague.