Bosnian Serbs have agreed to abandon a contentious referendum that had threatened to deepen the worst political crisis in the country since the 1992-95 war, dpa cited a spokesman for European Union foreign policy chief Catherine Ashton as saying on Friday. "We wanted to sort this out in a European way and the high representative (Ashton) was able to travel there last night and tie up the deal," Michael Mann said in Brussels. "They are not going to go forward with the referendum." An EU-led "structured dialogue on justice" - one of the tools the bloc can use to tackle judicial issues in countries aspiring to become members - will now instead be held in Bosnia. EU Enlargement Commissioner Stefan Fulle is planning to chair the first meeting of the body in Banja Luka, Ashton said. That could potentially take place in early June, according to Mann. The dialogue will provide a "comprehensive overview of the whole judiciary," Ashton said in Bosnia. The commission will then issue recommendations based on its findings. "We are convinced that this dialogue will bring solutions to concrete problems and re-establish this country on the EU path," Ashton added.