German Chancellor Angela Merkel has told Serbian President Boris Tadic that Serbia's admission to the European Union depends on progress in negotiations with Kosovo.

During a one-day visit to Belgrade Tuesday, Ms. Merkel said Germany believes that Serbia's place is in Europe, but that to get there it must restart dialogue with Kosovo.

Mr. Tadic said the EU should not offer Serbia ultimatums on Kosovo, but rather a compromise. He said the circumstances ask for an elastic and creative solution which would not endanger the dignity of both Albanians and Serbs.

President Tadic insists that Serbia has met all conditions of its candidacy to become an EU member.

Kosovo declared its independence in 2008. Germany, and 81 other nations, recognize Kosovo's sovereignty. Serbia has said it will never recognize Kosovo as an independent state.