The European Union has urged Serbia and ethnic Albanian leaders in Kosovo to take up a UN special envoy's proposal of more talks to forge a compromise over the status of the disputed province.

The call came as Martti Ahtisaari was unveiling his draft plan for Kosovo's future in talks with both sides in Belgrade and the provincial capital Pristina.

The draft settlement proposal avoids the word "independence," but offers self-governance for the province and its ethnic Albanian majority, according to a summary issued in Vienna.

The German EU presidency said it "firmly supports" Ahtisaari's intention of holding intensive discussions between the two sides and "strongly urges Belgrade and Pristina to approach these talks in a serious manner and without reservations."

The EU statement said the presidency "believes that resolving the status of Kosovo will make a crucial contribution to securing regional stability."

Kosovo is a southern province of Serbia where ethnic Albanians far outnumber Serbs and other minorities.

It has been run by a United Nations mission since the end of a 1998-1999 war between forces loyal to then Serbian leader Slobodan Milosevic and separatist ethnic Albanian guerillas.

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