Kostunica sworn in as president of Yugoslavia

During his swearing-in ceremony, Kostunica says he will bring Yugoslavia into the international community

BELGRADE, Yugoslavia -- Vojislav Kostunica was sworn in as Yugoslavia's new president on October 7, capping a week of swift political change marked by opposition protests against official election results and a concession speech by Balkans strongman Slobodan Milosevic.

As Kostunica was cheered, whistled and clapped, he said that "for years his people had to live in a system without democracy." But now Yugoslavia had undergone a political transformation which sometimes seemed to be a dream but was in fact a reality, he added.

"We can work together despite our politcal differences," he said, describing his inauguration as an "historic" moment.

Kostunica's formal swearing ends an era in which Milosevic dominated Balkan politics, tearing apart the old Yugoslav Federation and helping to start four wars that killed tens of thousands.

The previous day, Milosevic acknowledged Kostunica's victory in September's presidential elections and said he was relieved to lose the presidency.

"I congratulate Mr. Kostunica for his electoral victory and I wish to all citizens of Yugoslavia a lot of success in the period of the new president," a translator quoted Milosevic as saying in a videotaped speech.

Milosevic's concession marked a stunningly swift political disintegration that began with vast public protests after Yugoslavia's high court voided the September 24 presidential election.

Earlier in the day, the court named Kostunica the election winner, Russia offered its support, and the Serbian army indicated to the president-elect that it would obey the new political authority. Throughout the day citizens blared their car horns and cheered in celebration in the streets of Belgrade.

Milosevic: 'I intend to rest a bit'

In his speech, Milosevic thanked everyone who voted for him, "but I also want to thank those who didn't vote for me, because they took a great burden of responsibility from my soul that I've carried for ten years."

"I intend to rest a bit and spend some more time with my family, and especially with my grandson Marko," Milosevic said in the address, which was broadcast nationally by Serbian television and internationally by CNN.

His son, daughter-in-law and grandson boarded a Yugoslav Airlines flight for Moscow on Saturday morning, the president of the Yugoslav pilots' union told CNN.

Milosevic said he also expects to have a future in Serbian politics, "to help my party gain force and contribute to future prosperity."

Milosevic admits defeat in the Yugoslav election in an address on Serbian television

"The party cannot show all its strength and all its qualities if it is not in the opposition for a time," Milosevic said. "It will force us to win the next election."

The speech was one of several swift developments that followed the public uprising against one of the last Cold War-style communists in Europe.

In an interview on Serbian television, Kostunica said he had spoken to the head of the country's army, who had pledged to "obey" the new democracy. "I had conversations and there will be more conversations with the army," Kostunica said.

He also said he had met personally with Milosevic, but did not give details about their discussion.

"You can be completely calm," Kostunica told his country. "The Yugoslav army is really our army."

World leaders signal support

World leaders expressed their support for Kostunica. In Washington, U.S. President Bill Clinton said the United States would work with its European allies to lift sanctions against Yugoslavia and "bring them out of isolation."

At the United Nations, Secretary-General Kofi Annan called on the people of Yugoslavia to rally behind Kostunica.

British Prime Minister Tony Blair said it appeared "the era of Milosevic is over."

Russian Foreign Minister Igor Ivanov met with Milosevic after he congratulated Kostunica on his win.

Ivanov said he told Milosevic that Yugoslavia needs to make the transition of power peacefully.

Albright: Milosevic 'must go'

Milosevic's plans to remain in the country -- and in politics -- were criticized by U.S. Secretary of State Madeleine Albright.

"His time is over. He must go," Albright told reporters in Washington, insisting Milosevic must be held accountable for his war crimes.

As an indicted war criminal, Milosevic has little chance of seeking asylum abroad and has no choice but to try to reach an accommodation with the new government.

Milosevic is blamed by the West for starting four wars in the Balkans during his years in power, and sanctions imposed by the United Nations, the United States and Europe have left much of Yugoslavia impoverished and isolated.

Some of the sanctions were eased after Milosevic signed the 1995 agreement to end the war in Bosnia-Herzegovina. However, other sanctions were imposed again in 1998 after Milosevic launched a brutal crackdown on ethnic Albanians in Serbia's Kosovo province.

Sanctions being reconsidered

As hundreds of thousands of people converged on Belgrade in protest on October 5, parts of the crowd stormed parliament. They set fires, tossed portraits of Milosevic out of broken windows and chased the feared riot police away.

Soon the state television building was on fire, too, and within hours it and two police stations had fallen to the protesters. Many police tossed away their clubs and shields and joined the euphoric flag-waving crowds. The state news agency Tanjug said two people were killed and 65 injured in the rioting.

When the demonstrations subsided, it was clear that control belonged to Kostunica, a 56-year-old law professor. Wild celebrations stretched well into Friday.

On Friday about 200,000 people gathered in front of the parliament. One of their posters read, "Slobodan, are you counting your last minutes?"

Both the United States and the European Union have said they will begin to lift sanctions on Yugoslavia as the country's new democratic administration takes the reins.

The sanctions and years of Balkan warfare have left Yugoslavia's economy in ruins, and 1999's 78-day NATO bombardment in response to the Kosovo crackdown hammered an already creaky transportation and utility network.

CNN's Belgrade Bureau Chief Alessio Vinci, The Associated Press and Reuters contributed to this report.