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Positive effects of EU enlargement
Belgrade,
5 May 2004
Serbian Minister of International Economic Relations Predrag Bubalo has said that the EU enlargement will have more positive effects than negative ones on Serbia’s economy. He said that Serbia stands to benefit from the fact that some foreign companies will seek to move their facilities and capital from the ten EU newcomers, due to changed business conditions after their accession.
Predrag Bubalo
Bubalo told the Glas Javnosti daily that the EU market has grown bigger and that the export of Serbian goods to some countries will be easier now.
However, the export of certain goods, such as agricultural products, will be in a less favourable position, since the EU tends to buy farm products from its own members, said Bubalo. “Given that agricultural products in the EU are highly subsidised, it is unlikely that our prices will be competitive,” he added.
According to Bubalo, Serbia stands to benefit from the fact that some foreign companies will seek to move their facilities and capital from the ten EU newcomers, due to changed business conditions after their accession.
Bubalo explained that foreign investors will make such moves in search of higher profits. “That is why some facilities will be moved from Hungary to countries outside the EU borders, particularly to Serbia as the nearest one,” he said.
As an example of this, Bubalo named the French producer of aluminum auto parts Lebelier, which has a plant in Hungary, but has recently signed a join-venture agreement with the Kikinda-based casting plant Livnica.
Bubalo added that a recent visit by Japan’s automotive giant Toyota to Subotica’s Sever and Kikinda’s Livnica have had similar motives. He stressed that whether Serbia will take advantage of all the benefits of the EU enlargement or not mainly depends on the country itself.
However, the export of certain goods, such as agricultural products, will be in a less favourable position, since the EU tends to buy farm products from its own members, said Bubalo. “Given that agricultural products in the EU are highly subsidised, it is unlikely that our prices will be competitive,” he added.
According to Bubalo, Serbia stands to benefit from the fact that some foreign companies will seek to move their facilities and capital from the ten EU newcomers, due to changed business conditions after their accession.
Bubalo explained that foreign investors will make such moves in search of higher profits. “That is why some facilities will be moved from Hungary to countries outside the EU borders, particularly to Serbia as the nearest one,” he said.
As an example of this, Bubalo named the French producer of aluminum auto parts Lebelier, which has a plant in Hungary, but has recently signed a join-venture agreement with the Kikinda-based casting plant Livnica.
Bubalo added that a recent visit by Japan’s automotive giant Toyota to Subotica’s Sever and Kikinda’s Livnica have had similar motives. He stressed that whether Serbia will take advantage of all the benefits of the EU enlargement or not mainly depends on the country itself.
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