It's in the best interest of Belgrade and Pristina to adhere to previous commitments and quickly normalize relations. While it seems like Serbia is willing to compromise on recognition of Kosovan documents and license plates, Pristina is unwilling to grant autonomy to the ethnic Serbs who form a majority in Kosovo’s northern region. The two sides must come together to avoid armed conflict and unlock billions of euros in investment.
Serbia and the EU are trying to bully the smaller Kosovo into accepting an unfair agreement. While Serbia continues to deny the existence of Kosovo as an independent nation, ethnic Serbs living in northern Kosovo enjoy all the liberties and rights of any other citizen. There's no reason to create an "Association of Serbian Municipalities," and Serbia is just trying to take back territory from Kosovo and increase its influence. Kosovo will not be threatened by the EU and Serbia.