The world’s newest nation will be born this weekend to mass celebrations on the streets of Kosovo and fireworks of a very different kind on the international stage.

Thousands of red-and-black double-eagled flags fluttered from buildings across Kosovo, alongside the flags of the United States, Britain and Nato – a mark of appreciation for their efforts in freeing the province from Serbian rule.

Serbia, furious at the imminent loss of a region that it regards as the cradle of its Church and nation, has said that it will fight to prevent Kosovo’s independence becoming a reality.

Russia joined Serbia in opposition to Kosovo’s supporters at the United Nations, but the fierce rhetoric looked unlikely to derail the march towards independence, carefully planned and agreed with the European Union.

In often tense discussions behind closed doors, the US reminded Serbia of the role that it had played in bringing about Kosovo’s secession, arguing that it was an exceptional case made inevitable by the brutal repression unleashed by Belgrade to crush the ethnic Albanian rebellion.

About 3,000 people were killed and 900,000 forced from their homes in 1999 as Serbian security forces moved to expel ethnic Albanians, who then made up nearly 90 per cent of the population. “The ethnic cleansing policies of Slobodan Milosevic . . . ensured that Kosovo would never again be ruled from Belgrade,” Alejandro Wolff, the US Deputy Ambassador, said.

Hashim Thaci, the Prime Minister of Kosovo, refused to confirm the exact time and date of the declaration, although it is widely expected to come at midnight tomorrow, in time for recognition by the European powers, led by Britain, on Monday.

Belgrade has threatened to downgrade diplomatic ties with countries that support Kosovo’s move towards becoming a sovereign state, but its actions on the ground may be more damaging. The northern half of Kosovo could be plunged into darkness if Serbia cuts off power and water, as has been threatened, and an economic blockade could block vital trade.

Fears of violence from Kosovo’s dwindling Serb minority rose yesterday with an announcement from Serbian leaders in the divided city of Mitrovica that they would not recognise secession and that they would set up their own parliament.

Ten per cent of seats in the Parliament in Pristina, the capital of Kosovo, are reserved for Serbs, but they have remained empty because of a boycott of the elections. That was prompted in part by pressure from Belgrade, to which Kosovo’s 100,000 Serbs look for jobs, schools, healthcare and welfare payments.

Mitrovica, which is divided into Serb and ethnic Albanian enclaves, has been the main flashpoint for communal violence since the 1999 Nato campaign that expelled Serbian security forces and ushered in the transitional administration led by the UN. That administration is preparing to hand over to a European Union mission with limited powers to lead Kosovo towards independence, including 16,000 peacekeeping troops for security and 2,000 police, judges and prosecutors.

Nato troops who entered Kosovo after the expulsion of Serbian soldiers failed to stop a wave of revenge attacks unleashed by returning ethnic Albanian refugees. Their attacks on Serb civilians, houses, monasteries and churches sent half of the territory’s 200,000-strong minority fleeing for sanctuary across the Serbian border. At a news conference in Pristina, Mr Thaci tried to ease fears of persecution among Serbs and called on refugees to “return to their homes and their properties”. “In Kosovo, there will be security for all citizens,” he said. “The Government is committed to looking forward to the future and overcoming the sad past.”

Posters appeared on the streets of Pristina giving warning against overt displays of triumphalism at Kosovo’s long-awaited independence, for the sake of national unity. “Celebrate with dignity,” read the posters, which were illustrated with a bright red heart.

What that future will look like remains uncertain. The carve-up of the Balkans has led to the creation of more of the world’s newest states than any other region in the world – Bosnia, Slovenia, Croatia and Macedonia among them. Their births have been bloody and have often been the beginning of their struggle.

Kosovo’s leaders have argued that independence was essential to kick-start their economy after eight years of political limbo that had scared off potential investors. Unemployment stands at 44 per cent and basic amenities are poor, with power and hot water unreliable even in the capital.

The economy will remain reliant on European aid money, which stands at £1.2 billion to date; and trade with Serbia, which is threatened by Belgrade’s punitive stance. The independence celebrations, which began last night with music in the streets and cheap drinks in Pristina’s bars, was expected to cost €1 million (£750,000). The hangover could be a painful one.

Going alone

— Thirty-two new countries have been created since 1990

— The dissolution of the USSR in 1991 created 15 new nations

— In the early 1990s, Yugoslavia dissolved into five independent countries: Bosnia and Herzegovina in 1992; Croatia in 1991; Macedonia in 1993; Serbia and Montenegro in 1992; and Slovenia in 1991

— Eritrea gained independence from Ethiopia in 1993

— Czech Republic and Slovakia became independent nations when Czechoslovakia dissolved in 1993

www.worldatlas.com; geography.about.com

Times Recommends

• 'Great Schlep' may seal deal for Obama
• Hindu 'storm troopers' flex their muscles
• Ahtisaari: deserved reward for (failed) plan