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The Government of the Republic of Serbia

In the service of citizens

New economic measures to improve citizens’ living standards

Belgrade, 24 August 2025

President of the Republic of Serbia Aleksandar Vučić today presented a package of new economic measures to improve citizens’ living standards, which include limiting retail margins, amendments to the Law on Enforcement and Security, lower prices of firewood and electricity and reduced interest rates on loans.

At the Palace of Serbia, Vučić said that the state would cap margins, which would lead to a significant reduction in prices for around 3,000 products across 23 product groups, with retail margins to be limited to a maximum of 20% and commercial rebates to no more than 10%.

The measures, he explained, will apply to large retail chains, which currently have margins of up to 45%, while small village shops will be exempt to ensure their survival.

He explained that the main goal of the new measures is to increase citizens’ purchasing power and to reduce inflationary pressure in the country.

Speaking about the reduction of interest rates on cash, consumer and housing loans for those whose incomes do not exceed RSD 100,000 per month, the President underlined that cash loan rates will not be allowed to exceed 7.5%, while at Banka Poštanska Štedionica, they will amount to as little as 5.99%.

Regarding the third measure, concerning amendments to the Law on Enforcement and Security, Vučić explained that enforcement officers will no longer be able to seize citizens’ only real estate property spanning up to 60 square metres.

He also announced a fourth measure of economic support – additional discounts on electricity bills, which will apply to the poorest citizens, veterans and pensioners with the lowest incomes – while the fifth measure relates to lowering the price of firewood for socially vulnerable groups.