Berlin - Germany welcomed the signing of a Stabilization and Association Agreement (SAA) between the European Union and Serbia Tuesday, saying that the Balkan country's future lay with Europe.

German Foreign Minister Frank-Walter Steinmeier expressed the wish that the Serbian electorate would decide for a "common future in Europe" in the May 11 parliamentary elections.

The signing marked a "first and important step to integration in the EU," Steinmeier said in statement released in Berlin.

He warned, however, that Serbia had to surmount large challenges, including dealing with its recent past and giving full cooperation to the Yugoslavia tribunal in The Hague.

"But we made clear today: The EU and Germany stand at Serbia's side as a partner on this road," Steinmeier said.

The SAA is an initial step on the road to full membership of the EU, bringing potential accession states into line with EU political, legal and economic norms. (dpa)