In 1916, the Serbian Parliament in exile decided the creation of the Kingdom of Yugoslavia at a meeting inside the Municipal Theatre of Corfu, Greece.
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The Declaration as the first step toward building the new State of Yugoslavia envisaged a parliamentary monarchy under the Karađorđević dynasty, with indivisible territory and unitary power, with the three national denominations and the Latin and Cyrillic alphabets equal before the law, religious freedom and universal suffrage.
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The Government and the army retreated to the south in the direction of Greece, but were cut off by Bulgarian forces and had to go through Albania and to the Greek island of Corfu where the Corfu Declaration was signed in 1917 preparing the ground for the future South Slav state of Yugoslavia.