BELGRADE (Reuters) - Serbia's new government will focus on quick entry into the European Union, strengthening the country's economy and keeping Kosovo as a part of Serbia, Prime Minister designate Mirko Cvetkovic said on Monday.

In his address to parliament Cvetkovic said the government aimed at 7 percent GDP growth annually and would pursue economic ties with both East and West. A vote in the late evening confirmed his coalition with 127 votes in the 250-seat assembly.

"Our plan is that at the end of this government's mandate Serbia will be ready to get into the EU," said the outgoing Economy Minister, who faces the tough task of changing Serbia's image of belligerence and pushing through reforms to woo investors.

"Joining the EU would enable Serbia to become a full fledged member of the European family of nations from which Serbia has been excluded for a long time due to certain unfortunate historical circumstances."

Cvetkovic will lead a coalition of the liberal Democratic Party and its one-time bitter rivals the Socialists, a party founded by nationalist autocrat Slobodan Milosevic who led Serbia to war and isolation in the 1990s.

Although most of Cvetkovic's speech was focused on economic plans, the two parties' differences made for an off-key mix of pragmatism and nationalist rhetoric.

The West hopes that a pro-EU government in Belgrade will deliver remaining war crime suspects to the U.N. tribunal in The Hague and be more amenable over Kosovo, whose Albanian majority seceded from Serbia in February.

But Cvetkovic said Serbs would never give up on Kosovo. His only nod to The Hague was saying Serbia will "continue to pursue the policy of strict observance of international law and prompt compliance with all international obligations."

In a reference echoing the Socialists' revisionist view of the wars of the 1990s, he also urged the court "to treat all crimes equally," meaning not to put the lion's share of the blame on Serbs.

SOCIALIST COMEBACK

Going back into the pragmatic, economic policy-territory he is more comfortable with, Cvetkovic said reforms to liberalize the economy and improve the business climate remained a priority.

"The need to strengthen the economy, increase employment, step up investments, including infrastructure, while at the same time preserving macroeconomic stability are the key points of our economic program," he said.

The government aimed to reduce the unemployment rate, rein in inflation and cut the current account deficit, he said, while highlighting its commitment on social justice, one of the pillars of the Socialists' program.

Cvetkovic's government will be sizeable, with four deputy prime ministers and 24 ministries, reflecting weeks of horse-trading over posts in a coalition that brings together no less than 10 parties or coalitions.

The Socialists are making a big comeback, getting the post of first deputy prime minister and key posts such as the interior ministry and the infrastructure and energy ministries.

President Boris Tadic, the leader of the Democrats, has defended his choice of ally. He said the Socialists had changed since the Milosevic era and sought national reconciliation.

Aware of the new government's delicate balancing act, the EU has indicated it may speed up Serbia's accession to win over hardline Socialists with the practical benefits of membership and bolster the cabinet's chances of lasting a full term.

But some EU countries insist Belgrade must deliver all fugitive war crime suspects in order to get into the club, and diplomats say that at some later point it will have to change its tune on Kosovo, which has been recognized by most EU states.

(Editing by Ralph Boulton)

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