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Nicolas Marquier, Regional Manager for the Western Balkans at the IFC

Financing the Future

IFC, the largest global development institution, has provided almost $1 billion in financing to Serbia’s private sector over the past six years IFC, as a...

Iosif Vangelatos, General Manager, Inos Balkan

Proud of Tripling Trade Volume

Inos Balkan already possessed extensive expertise in the recycling sector, with its collection and processing centres, while it has today transformed itself successfully to...

Aris Karousos, CEO of Eko Serbia

Drivers Know Why They Choose Eko

Two decades ago, when this company launched its operations in Serbia, the desire was for the EKO brand to become synonymous with reliability, quality...

Danilo Đurović, General Manager, Autotechnica Serbia – Hertz

Introducing Flex Drive

As part of the Autohellas Group, which has been the absolute leader of Greece’s automotive sector since 1974, Hertz is more than just a...

Nikos Veropoulos, Owner, Veropoulos

Super Vero, Super Successful

For two decades already, company Veropoulos has been known on our market for its unique offer and high-quality products at promotional prices, but also...

Danko Brčerević, Chief Economist of the Fiscal Council of Serbia

We Don’t Need to be Bad Pupils Again

Preserving the health of the population, maintaining fiscal discipline and creating a new model of economic growth should be on the government’s desk from the first day of its term. One important argument for that is also the fact that the cost of servicing Serbia’s public debt, totalling about 60% of GDP, is higher than the cost of servicing the French public debt, which exceeds 100% of GDP.

Preserving the lives and health of citizens is the main mission of the Government while the health crisis lasts. When the epidemic is brought fully under control, the Government will have to face several important economic challenges, three of which I will single out here: 1) restoring the budget balance that has been destroyed; 2) increasing public investments, particularly in neglected areas like health, education and environmental protection; 3) advancing institutions, i.e. improving the rule of law and curbing corruption.

The Government should reduce the fiscal deficit in 2021 from the current level of 7-8% of GDP to around two per cent of GDP. This would halt the further growth of public debt and restore the country’s fiscal stability. Reducing debts is important because Serbia has to borrow at double the interest rate of developed Europe – i.e. the cost of servicing Serbia’s public debt, which totals about 60% of GDP, is higher than the costs of servicing France’s public debt, which stands at over 100% of GDP. Experiences from the previous crisis (2009) also highlight the importance of quickly establishing fiscal stability after a crisis. Delays in implementing fiscal consolidation (which was only implemented in 2015) led to a decade of low economic growth during which other countries of the Central and Eastern European region (CEE) outpaced Serbia in terms of economic development and the population’s living standards.

It is necessary to finally complete the reconstruction and construction of four large clinical centres and increase the procurement of health equipment in order to make up for the shortfall that Serbia has in relation to comparable countries

In the years ahead there should be an increase in public investment, given that it effectively stimulates economic recovery. A great need for this also exists in particular areas where investment has been insufficient over the years (health, education, environmental protection). The current crisis has shown what a major mistake it was not to place healthcare high on the list of state priorities. It is thus necessary to finally complete the reconstruction and construction of four large clinical centres (funding for which was secured back in 2006) and to make up for the shortfall that Serbia has in relation to comparable countries by increasing the procurement of health equipment.

The new government must reconsider the existing economic growth model, which isn’t sufficiently efficient at present. Serbia is overly reliant on individual projects and foreign investors, and not relaient enough on the systematic development of the domestic private sector. Of course, it is commendable that Serbia has been a record holder in attracting FDI in the CEE region over the previous three years. However, the initiatives of a large number of domestic entrepreneurs are even more important for the sustainable and stable development of any European country. The research that we’ve conducted shows that corruption and the insufficient level of adherence to the rule of law are the main hindrances to the domestic private sector. That’s why the long-term prosperity of Serbia requires the building of institutions that are professionally strong and independent, which must be one of the priorities of the new government.

Comment

Census Results Cause Concern

The Ministry of Education claims to be exerting ongoing efforts to reform education, but census results indicate the need for more work. The “Platform...

By Iva Draškić Vićanović Ph.D., Dean of the University of Belgrade Faculty of Philology

Restore Teachers’ Dignity

The proposals presented in our Platform are viable over the short term, require no large and lasting reforms and could lead to major visible...

Comment by Prof. dr Slobodan Zečević

The Mirage of the European Oasis

Serbia officially began EU accession negotiations in January 2014. Over the subsequent decade, 22 of the 35 accession negotiation chapters have been opened and...

Plamena Halacheva, Deputy Head of the Delegation of the European Union to Serbia

Easier Access to the Western Balkans’ Single Market

The EU aims to involve Western Balkans partners with its Member States on equal terms, fostering a reform partnership that’s oriented towards the future...

Scholz Champions Western Balkans’ Path to Membership

German Chancellor Olaf Scholz, in Slovenia, advocated for quickening the EU accession for the Western Balkans, underlining the importance...

CEB Grants €1.3 Billion Loans to Boost Social Sectors in 11 Countries

The Council of Europe Development Bank (CEB) has sanctioned loans totaling €1.3 billion for 11 member countries, including Serbia...

Serbia Advances in Renewable Energy with Pupin Wind Park Financing

In a significant stride towards renewable energy adoption, Serbia has finalized the financial arrangements for the Pupin Wind Park,...

Đedović Handanović: Nuclear Energy in Serbia by 2039 at the Earliest

Nuclear energy in Serbia could become a reality by 2039 at the earliest, should work on the project commence...

Belgrade’s Hotel Jugoslavija Sold, Sparks Redevelopment Controversy

Belgrade's iconic Hotel Jugoslavija, located in Serbia's capital, has been sold for approximately €27 million to MV Investment, affiliated...

Scholz Champions Western Balkans’ Path to Membership

German Chancellor Olaf Scholz, in Slovenia, advocated for quickening the EU accession for the Western Balkans, underlining the importance...

CEB Grants €1.3 Billion Loans to Boost Social Sectors in 11 Countries

The Council of Europe Development Bank (CEB) has sanctioned loans totaling €1.3 billion for 11 member countries, including Serbia...

Belgrade University Partners with CERN on Future Circular Collider Project

The University of Belgrade has officially become part of CERN's largest scientific endeavor, the Future Circular Collider (FCC) project,...

Kushner Eyes Balkan Luxury Developments in Serbia and Albania

Jared Kushner, closely related to former U.S. President Donald Trump as his son-in-law, is turning his attention to the...

European Parliament Passes Groundbreaking AI Law

The European Parliament has adopted the Artificial Intelligence (AI) Act, aiming to safeguard fundamental rights, democracy, the rule of...

Scholz Champions Western Balkans’ Path to Membership

German Chancellor Olaf Scholz, in Slovenia, advocated for quickening the EU accession for the Western Balkans, underlining the importance...

CEB Grants €1.3 Billion Loans to Boost Social Sectors in 11 Countries

The Council of Europe Development Bank (CEB) has sanctioned loans totaling €1.3 billion for 11 member countries, including Serbia...

Belgrade University Partners with CERN on Future Circular Collider Project

The University of Belgrade has officially become part of CERN's largest scientific endeavor, the Future Circular Collider (FCC) project,...

Kushner Eyes Balkan Luxury Developments in Serbia and Albania

Jared Kushner, closely related to former U.S. President Donald Trump as his son-in-law, is turning his attention to the...

European Parliament Passes Groundbreaking AI Law

The European Parliament has adopted the Artificial Intelligence (AI) Act, aiming to safeguard fundamental rights, democracy, the rule of...
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