Serbia is ready to participate in the fight against ISIL, Serbian Prime Minister Aleksandar Vucic said.
Participants in foreign conflicts can receive jail sentences of at least five years.
The proposed law, which would be supported by a loan from the World Bank, is being considered by Parliament. In other business news: optimism grows for the economy's future in southeast Europe.
Efforts by the authorities as well as the end of duty tariffs on car imports have had an impact.
A new agreement with Romania will boost the visa liberalisation process, moving Ukraine toward EU membership.