May 24, 2006 9:34 AM

BELGRADE, Serbia-Montenegro-Serbia's crown prince on Wednesday wished Montenegrins peace and democracy after they voted for independence, and urged Serbs to restore the monarchy in their troubled Balkan republic.

Aleksandar Karadjordjevic, whose family ruled Serbia and the former Yugoslavia until World War II, said brining back the monarchy would help repair ties with the rest of Europe and attract investment to Serbia, now on its own after decades of failed Balkan partnerships.

"Let's not waste any more time. Serbia must move ahead," Karadjordjevic said.

Speaking at the ancestral White Palace in Belgrade, to which he returned in 2001 following the collapse of Communism and the 2000 ouster of Slobodan Milosevic, the blue blood praised the virtues of having a "constitutional monarchy ... where the Parliament and the Government rule" while a monarch serves as the head of state.

Citing the examples of Spain, the United Kingdom, Sweden, Belgium and other modern monarchies, the heir to Serbia's currently defunct throne said that a "Kingdom of Serbia will provide the fastest way forward to the European Union, it will encourage work on attracting investments, stimulating economic growth."

The Karadjordjevic dynasty originally ruled Serbia, but its territory vastly expanded after World War I with the creation of Yugoslavia. The royals, however, fled in 1941 before invading Nazis and were later banished by Communists authorities.

Born in exile in 1945, Aleksandar powerlessly watched Yugoslavia dissolve in bloodshed in the early 1990s and openly criticized Milosevic for the carnage.

"Too much blood has been spilled, too much strength of the people has been wasted, too much reputation has been lost," the crown prince said, referring to Serbia's pariah status under Milosevic.

Opinion polls on the restoration of the monarchy show about one-third of the public supporting the idea and nearly two-thirds saying they would not object if it brought stability.

The popularity of the prince, who helped organize pro-democracy activists in the Milosevic ouster, has grown among ordinary Serbs. He hosts humanitarian events and organizes meetings between business leaders and politicians.

Serbia's last ally, Montenegro, voted for independence in a Sunday referendum, effectively discontinuing the two-state alliance.

"I am sad, but I wish our Montenegrin brothers peace, democracy and happiness," Aleksandar said at the ornate palace.

"Now, it is time for us Serbs to completely dedicate ourselves to our Serbia," said the Western-educated prince, related to most royal families in Europe and a godson of Britain's Queen Elizabeth II.

If crowned, the prince pledged to stay "above daily politics" and serve as the "the guardian of national unity, political stability and continuity of the state."

Still, in a reference to Serbia's overheated political scene, he called on politicians to "end the continuous wrangling, division and arguments. I appeal for mature, democratic debate."