(BRUSSELS) - The EU is only likely to allow new members in the medium to long term as Turkey and Balkan countries still have to meet key targets, according to a European Commission report to be published Tuesday.

"The countries of the Western Balkans and Turkey have been given the perspective of becoming EU members once they fulfill the established conditions. Given the present state of preparations in these countries, their accessions are likely to occur in the medium to long term," according to the Commission's annual report on EU enlargement, seen by AFP.

Among Balkan candidates, Croatia is well ahead in the race to become the 28th European Union member state.

Along with Turkey, Croatia began formal EU accession talks in October 2005 ahead of other Western Balkans nations. Macedonia is an official candidate for membership but no date has been set for talks to begin.

"Accession negotiations with Croatia are advancing well and are entering a decisive phase," the report said.

"This demonstrates to the region as a whole that the perspective of EU membership is a reality".

That will be good news to the other Western Balkans EU hopefuls -- Albania, Bosnia, Macedonia, Montenegro and Serbia.

But "in a number of countries the overall reform process has slowed down," the EU's executive arm stated.

"State-building as well as better governance remain priority concerns in much of the Western Balkans" while "corruption remains widespread and deeply rooted in society".

In Serbia the "democratic forces are fragile," and the reform process needs speeding up, according to the Commission.

"In Serbia, despite the victory of democratic forces in the parliamentary elections and the formation of a reform-oriented government, extremist parties and nationalist rhetoric remain strong and effect negatively the overall political climate," it said.

However for Belgrade the main obstacle to signing a Stabilisation and Association Accord, the first formal step to EU membership, remains the lack of full cooperation with the UN war crimes court.

Turkey's progress towards EU membership, which has been significantly slower than Croatia's, remains hampered by problems of reforms, civil liberties and its enduring refusal to trade freely with EU member Cyprus.

"Significant further efforts are needed in particular on freedom of expression, on civilian control of the military and on the rights of non-Muslim religious communities," according to the report.

Brussels was particularly hard on fellow EU hopeful Bosnia where "inflammatory rhetoric by key political leaders ... has stalled reforms".

The European Union has expanded from 15 to 27 member states since 2004.

A reform treaty aimed at streamlining the functioning of the bloc's creaking institutions is due to be signed by EU leaders next month in Lisbon.

The Commission report gave no likely dates for further expansion. Croatia hopes to join in 2009.

Turning to EU members Romania and Bulgaria, who joined in January, the Commission said the newcomers were not making sufficient inroads against corruption and organised crime.

Both countries "have made some progress since accession in further reforming the judiciary and fighting corruption, and in Bulgaria's fight against organised crime".

""Further concrete results are needed," in these areas, the report said.

The Commission will review progress in these areas and report in early 2008.

Bulgaria and Romania remain under unprecedented surveillance by Brussels due to perceived gaps in their judicial system, use of European funds and food safety. Bulgaria is also being monitored over air traffic security.

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