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They finally accepted a compromise proposal offered by High Representative Miroslav Lajcak and envisioning the creation of seven state-level co-ordination bodies that will assume authority over the country's ethnically divided police forces within a year after the adoption of constitutional reform.

Favouring more centralisation of police, the ruling Bosniak Party of Democratic Action and the Serb Democratic Party are criticising the legislation, claiming it offers only "cosmetic" changes that will not improve security in BiH.

EU officials on Wednesday hailed Bosnia's
adoption of long-disputed police reforms, saying it opened the way for
the Baltic state to sign the first accord on the way to European Union
membership.

"I welcome the final adoption of the police reform
laws, which paves the way towards signing the Stabilisation and
Association Agreement (SAA)," EU Enlargement Commissioner Olli Rehn
said in a statement.

The SAA trade and aid pact "will not only
bring practical benefits in trade and thus for the economy of Bosnia
and Herzegovina, but it is also the gateway towards candidate country
status for EU accession," Rehn added.

Earlier
Wednesday lawmakers in Bosnia's upper house definitively adopted the
police reforms, removing the last hurdle for the country to sign the
key pact on closer EU ties.

Two police reform bills passed by 10
to four votes, ending years of dispute among Bosnia's Croat, Muslim and
Serb leaders about the extent to which they should integrate the
country's separate ethnic police forces.

The lower house of the Bosnian parliament approved the reforms last week.

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A meeting of EU Foreign Ministers urged that, "important underlying problems remain and called upon all parties in Bosnia to work together in order to overcome them as soon as possible.”

 BRUSSELS, March 10 (Xinhua) -- The European Union (EU) warned Monday that Serbia could risk isolation if it quits plans to join the EU over the issue of Kosovo.

    "Now Serbia has a very crucial choice to make: it can either stick to the European future or risk self-imposed isolation," EU Enlargement Commissioner Olli Rehn said after a meeting of EU foreign ministers in Brussels.

    He said that while the first option would bring stability, more freedom and increasing prosperity to Serbia, the second option is "a road to nowhere."

Kostunica wants Serbia to pursue EU membership only if the EU member countries withdraw their recognition of Kosovo, which Tadicopposes.

    Serbia has initialed but not signed a Stabilization and Association Agreement (SAA), the first step for Balkan states to move towards the EU.

    Slovenian Foreign Minister Dmitrij Rupel, who chaired Monday's meeting, said the foreign ministers agreed that the EU needs to keep Serbia on the European track.

    "Serbia is facing a choice of whether going towards Europe or staying nationalistic. Of course we want Serbia to choose Europe," he said.