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The Government of the Republic of Serbia

In the service of citizens

Government sessions outside Belgrade to help solve local problems across Serbia

Kragujevac, 22 June 2006

Serbian Prime Minister Vojislav Kostunica said that the government will continue holding its sessions outside Belgrade in order to exchange opinions with local authorities and unions across Serbia on how to solve their problems.

Vojislav Kostunica in a press conference today after government held session in Kragujevac

In a press conference held after the government session in Kragujevac, Kostunica recalled that all forces need to agree to adopt the highest legal act and added that there is just one small step ahead for Serbia to get its appropriate democratic constitution.

What we want is to visit a great number of places in Serbia and be what we are – the government of Serbia, said Kostunica adding that one of those sessions should take place in Kosovo-Metohija if possible.

Europe has never meddled in inter-ethnic relations and changed existing state borders, especially if the state is democratic, which Serbia is without doubt, Kostunica said.

He recalled that a sensible European solution offered by the Serbian government for the future status of Kosovo-Metohija is to give the province maximum autonomy within Serbia.

According to him, this solution is in line with international law, the UN Charter and the UN Security Council’s Resolution 1244.

Kostunica announced a vivid diplomatic activity of the Serbian government scheduled for July adding that he received an invitation from US Secretary of State Condoleezza Rice to visit Washington.

Kostunica said he will meet with UK Prime Minister Tony Blair on Monday and Tuesday and also announced a meeting with Croatian Prime Minister Ivo Sanader.

Serbian Minister of Economy Predrag Bubalo said on the occasion that a sum of € 741 million was invested during the past six years in the city of Kragujevac, through various kinds of subsidies and donations from the Development Fund.

Speaking on the issue of Zastava, Bubalo said that the Zastava complex has been supported by subsidies worth 28.6 billion dinars, of which a sum of 8.8 billion dinars went into the production of vehicles.

Predrag Bubalo

He presented the statistic outlining that a sum of 4.2 billion dinars has been earmarked for processed metal products, above all the machine industry. A sum of 4.1 billion dinars has been allocated for the metallurgy complex alone.

The arms sector has been allotted 22.7 billion dinars, said Bubalo, adding that 70% of the total sum of subsidies was invested in the area of metal products.

The privatisation of the Zastava complex has gone well, said Bubalo. He added that two companies of the complex will be up for sale within the next two months.

The tender procedure for the sale of the company Zastava Trucks is going on, however no one has bought tender documentation yet, and a solution will be found for that factory later, said the Minister.

He said that Zastava’s debt to the Italian Fiat Group has been returned in full, which has created conditions for future production cooperation.

Bubalo said that according to protocol legal representatives of the Fiat Group returned 81 bonds, each worth some $1.1 million.

The Minister said that within the next week it will be known which Fiat car will become part of production in the Zastava Motor Works factory.