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Tatjana Rackov Sinadinović, Director, Happy Kids Preschool

Awards Confirm Value

Within a framework of daily educational activities that’s shaped by the principles of the Montessori method of education, children at the HAPPY KIDS Preschool...

Helleniq Energy

Former Hellenic Petroleum Becomes Helleniq Energy

The parent company of EKO Serbia has rebranded and committed itself to a sustainable future HELLENIC PETROLEUM, one of the largest energy companies in Southeast...

dm

dm Srbija Comes Of Age

Pioneering endeavours, successful results, record-breaking donations and recordhigh wage increases, new social responsibility campaigns and launching the online store have all marked the 18th...

Sonja Kapetanović, Marketing Director, Schlarafia

Quality Is An Issue Of Setting High Standards

Schlarafia is the region’s leading brand for premium sleeping equipment and is unique thanks to its specific fusion of traditional craftsmanship and modern technologies,...

Boban Đurović, Mayor Of Vrnjačka Banja

Monte Carlo In The Heart Of Serbia

Today, Vrnjačka Banja can boast a large number of high-class hotels that, with their rich content and top-quality service in line with European tourist...

Jurij Bajec Ph.D., Special Advisor At The Economics Institute And Full Professor At The University Of Belgrade Faculty Of Economics

Open Balkan Is A Good Initiative

During times of great uncertainty and deeply disrupted international economic and political relations, Serbia should seek additional forms of economic connection that complement its strategic commitment to EU membership

Independently of the various scenarios of future relations with Russia, Serbia is already enduring the negative consequences of the Russian-Ukrainian conflict that are spilling over onto the Serbian economy.

Firstly, the Serbian economy is strongly integrated into the EU according to all economic parameters. The EU contributes over 60% to Serbia’s total foreign trade exchange and accounts for 70% of foreign direct investment, with EU partners operating around 24,000 companies in the country, employing close to 900,000 workers, while the largest part of the remittances of Serbian citizens – equating to approximately 8% of GDP – arrive from Germany and other European countries. The Serbian banking sector is also dominated by European-owned banks, while the Serbian dinar is pegged to the euro. The strong, longterm connection between the two economies has been established empirically: when the EU advances well in economic terms, that reflects positively on Serbia’s economic growth, employment and the standard of living of Serbian citizens. The opposite situation, however, also applies, which is precisely the case now.

Disrupted global supply chains, coupled with dramatic rises in energy and food prices, lead to a slowdown in investment activity and economic growth, pushing inflation and exerting pressure on the budgets of European countries. All these negative effects partly spill over to hit the Serbian economy. FDI inflows are already lower this year, the foreign trade deficit is increasing, inflation has exceeded 10%, alongside a pronounced increase in prices of food and energy, while interest rates on loans to businesses and households have increased. It is this year necessary to allocate a huge 1.7% of GDP to cover the interest on public debt repayment, while the cost of future borrowing on financial markets remains uncertain.

An important priority for the future government should be mitigating the ramifications of the energy crisis caused by the Russian-Ukrainian conflict, but also by the unprofessional managing of the domestic energy sector

That’s why it’s important, during such times of great uncertainty and deeply disrupted international economic and political relations, for Serbia to seek additional forms of economic connection that complement its strategic commitment to EU membership. One such form is the regional Open Balkan initiative, which – with its basic guiding idea of the free flow of goods, services, labour, capital and technology – strengthens all participating countries and increases their competitiveness internationally.

The future government’s second priority should be mitigating the ramifications of the energy crisis caused by the Russian- Ukrainian conflict, but also by the unprofessional managing of the domestic energy sector. The unacceptably poor management of the largest thermal power plant, which under normal conditions produces 40% of all electricity for domestic needs and export, has led to the need to make intervention imports at extremely high prices and unnecessarily spend hundreds of millions of euros that will ultimately be paid by Serbian citizens. Around two years and significant investments will be need to stabilise the situation. When it comes to gas prices, Serbia has a favourable three-year arrangement on the import of Russian gas, but that only covers three-quarters of the required amount, with the remainder needing to be paid at higher, market, prices. However, here again Serbia has unnecessarily aggravated the situation by failing to ensure the timely expansion of its own gas storage capacities, which forced it to secure the required quantities, at an additional cost, from Hungarian storage facilities. Finally, Serbia covers about 75% of its oil needs from imports, the main problem of which – at least for now – is represented by very high prices.

Considering that such unfavourable situations cannot change quickly, the Government must – at least temporarily – ease the operations of businesses and protect the living standard of citizens through tax breaks and controlling the prices of key energy sources, while simultaneously extending its interventions from commodity reserves and controlling prices of basic foodstuffs.

Comment by Zoran Panovic

Limited Sensitivity

If Serbia’s World Cup match against Brazil in Qatar proved to be a major tactical defeat for Serbia (0:2), then the agreement reached on...

Aleksandar Mitić, Research Associate At The Institute Of International Politics And Economics, President Of The Centre For Strategic Alternatives

Support For Ukraine Could Reduce

It is tough to expect that the deep polarisation that has manifested within U.S. Society will have a substantial influence on Washinton’s foreign policy...

Aleksandar R. Miletić, Executive Director Of The Centre For History Studies And Dialogue

No Major Changes To Foreign Policy Discourse

I don’t believe the current U.S. Administration’s policies on Ukraine or our region will change fundamentally. More significant course adjustments could only occur following...

Dragan Bisenić, Foreign Policy Journalist, Publicist And Former Ambassador

Without A Weak President

No one will deal with a “weak” american president on foreign policy in the future, as was expected prior to the midterm elections. However,...

Foreign Investors Council In Serbia Celebrates Its 20th Anniversary

The Foreign Investors Council in Serbia (FIC) marked 20 years of operations with a ceremony held at Hyatt hotel. At...

Romania’s National Day Celebrated

The Embassy of Romania in Serbia marked the Day of Romanian Unification with a formal reception at the White...

New President Of Montenegrin Foreign Investors’​ Council Elected

The President of the Board of Directors of the Crnogorska komercijalna bank (CKB), Tamas Kamaraši, was elected as the...

Cocktail Reception Held In Paris On Occasion Of Belgrade’s Candidacy For Expo 2027

Prime Minister Ana Brnabic and wife of the President of the Republic Tamara Vucic hosted a festive cocktail reception...

Serbia, The U.S., Spain, Argentina, Thailand Apply To Host EXPO 2027

Deputy Prime Minister of Serbia and Minister of Finance Siniša Mali said in Paris, after the end of the...

Foreign Investors Council In Serbia Celebrates Its 20th Anniversary

The Foreign Investors Council in Serbia (FIC) marked 20 years of operations with a ceremony held at Hyatt hotel. At...

Romania’s National Day Celebrated

The Embassy of Romania in Serbia marked the Day of Romanian Unification with a formal reception at the White...

New President Of Montenegrin Foreign Investors’​ Council Elected

The President of the Board of Directors of the Crnogorska komercijalna bank (CKB), Tamas Kamaraši, was elected as the...

Cocktail Reception Held In Paris On Occasion Of Belgrade’s Candidacy For Expo 2027

Prime Minister Ana Brnabic and wife of the President of the Republic Tamara Vucic hosted a festive cocktail reception...

Serbia, The U.S., Spain, Argentina, Thailand Apply To Host EXPO 2027

Deputy Prime Minister of Serbia and Minister of Finance Siniša Mali said in Paris, after the end of the...

Foreign Investors Council In Serbia Celebrates Its 20th Anniversary

The Foreign Investors Council in Serbia (FIC) marked 20 years of operations with a ceremony held at Hyatt hotel. At...

Romania’s National Day Celebrated

The Embassy of Romania in Serbia marked the Day of Romanian Unification with a formal reception at the White...

New President Of Montenegrin Foreign Investors’​ Council Elected

The President of the Board of Directors of the Crnogorska komercijalna bank (CKB), Tamas Kamaraši, was elected as the...

Cocktail Reception Held In Paris On Occasion Of Belgrade’s Candidacy For Expo 2027

Prime Minister Ana Brnabic and wife of the President of the Republic Tamara Vucic hosted a festive cocktail reception...

Serbia, The U.S., Spain, Argentina, Thailand Apply To Host EXPO 2027

Deputy Prime Minister of Serbia and Minister of Finance Siniša Mali said in Paris, after the end of the...
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