German leader Angela Merkel lent broad support to Kosovo's EU aspirations while urging it to continue talks with Serbia during the Kosovo Prime Minister's visit to Berlin on Tuesday.

Chancellor Angela Merkel recalled that Germany had been one of the first states to recognise Kosovo's independence in 2008.

Talks between Kosovo and Serbia were in an "interesting phase", she noted, noting that some key problems remained unsolved. "Continuation of this issue is of great importance for Serbia as well as for Kosovo," she said, according to a Kosovo government press release.

Merkel said that she intended to visit Serbia in coming days and discuss the dialogue issue as it relates to Serbia's own EU integration.

On the economy, Merkel stated that Germany sought ways to cooperate more closely with Kosovo on energy production and agriculture.

Kosovo's Prime Minister, Isa Mustafa, said the dialogue with Serbia had not been easy but agreed that it was in an important phase.

"Obviously, the dialogue is not easy, but is a place where we will make compromises and find common solutions," Mustafa said.

He reminded his hosts that Kosovo remained interested in signing a Stabilisation Association Agreement with the European Union, seen as the first step towards membership.

"After meeting all the technical criteria, our country also needs to gain visa liberalisation in order to enable our citizens to travel to all European Union countries, as other citizens do," he said, referring to one of the burning issues for the population at large in Kosovo.

Kosovo is currently the only Balkan country excluded from the EU's visa-free regime.

Mustafa noted that the German Chancellor wanted Kosovo to move along with the establishment of a new EU-backed special court that is expected to try senior Kosovo Liberation Army figures for alleged war crimes.

"The Chancellor has given us full support, to advance further in the dialogue process with Serbia, and to fulfil our obligations related to establishment of the Special court," Mustafa said.

Kosovo's parliament failed to adopt constitutional amendments that would pave the way to establishing a special court for the crimes committed by the so-called Kosovo Liberation Army, since there was no two-thirds majority support.

Mustafa took the opportunity to inform Merkel of the economic hardship of Kosovo which is marked by unemployment, high poverty and asked for more economic support from Germany.

"We are interested in greater economic support from Germany," said Mustafa who praised German assistance so far in Kosovo.

Mustafa was accompanied by his deputy, Hashim Thaci, finance minister Avdullah Hoti and the economic development minister, Blerand Stavileci.