Western powers regard diplomatic normalisation between Croatia and Serbia , twin pillars of the old multinational federal Yugoslavia , as a crucial step towards a lasting peace in the Balkans .
<response> <misc>Western</misc> powers regard diplomatic normalisation between <location>Croatia</location> and <location>Serbia</location> , twin pillars of the old multinational federal <location>Yugoslavia</location> , as a crucial step towards a lasting peace in the <location>Balkans</location> . </response>