Keepin touch

Whether you have a question, comment, suggestion or any problem in the purview of the government, send us your message and we will try to respond as soon as possible. If your problem is not in our purview, we will forward your message to the relevant institution.

The Government of the Republic of Serbia

In the service of citizens

New Constitution factor of Serbia's stabilisation and economic development

Knjazevac, 12 October 2006

Serbian Prime Minister Vojislav Kostunica said today in Knjazevac that the new Constitution will stabilise Serbia, preserve its integrity and enable its economic development.

Vojislav Kostunica

Kostunica said at a press conference held in Knjazevac after the government's regular session that Serbia has awaited the new Constitution for a long time but that this period was used for a discussion which had been conducted informally, outside Serbian parliament, since 2000.

In that way, a modern text was made introducing stable democratic institutions and constitutional order, but it also broadens the spectrum of human and minority rights, which will enable Serbia's entry into the EU.

He said that with the new Constitution a big step forward was made concerning decentralisation, both provincial and that of local self-government.

Kostunica underlined that the new Constitution really strengthens local self-government, which can be seen by the way in which it manages its funds, both original revenues and property.

However, the fact is that there is a difference between municipalities and cities, but that "map of Serbia" will change and a number of municipalities will be able to get the status of the city.

The Prime Minister said that it is logical that in bigger communities mayors will be elected directly, while in municipalities a different system will be used.

Kostunica said that at the upcoming meeting with representatives of the European trio which will be held on October 16 in Luxembourg he will reiterate his call for the continuation of talks on the Stabilisation and Association Agreement, and that Serbia has done a lot on the implementation of the Action plan.

Serbian Minister of Trade, Tourism and Services Bojan Dimitrijevic said at the conference that the development plan for Stara Planina mountain, mentioned at the government session, is the crucial project not only for the municipality of Knjazevac but for entire Serbia.

He said that large scale investment works have already begun on the tourist infrastructure and accommodation capacities on Stara Planina and that the government will set aside €6 million for that purpose.

According to Dimitrijevic, the government approved at its session today the Bill amending the Law on tourism, which envisages founding agencies for the development of tourism which should play a key role in the realisation of developmental projects in tourism.

The Minister informed that the government also adopted a Decision on reducing the prices of medicines by 5%, which will lead to a 0.2% decrease in the overall price index.

According to data for October a very low inflation rate should be expected, said Dimitrijevic and pointed to the fact that in situations when the rate is more than 4% upwards or downwards, the mechanism for price change is activated.

He explained that the decision was brought based on the fact that most medicines contain imported substances, and the Euro fell by 6%.

Predrag Bubalo

The Serbian Minister of Economy Predrag Bubalo said that the Serbian government has allocated 2 million dinars worth of subsidies for the industry of engines and tractors (IMT) Knjazevac, adding that he is dissatisfied with the privatisation procedures in that city.

Bubalo pointed out that businesses in Knjazevac should do more work regarding privatisation and promised his personal support in the process, as well as that of the Serbian Privatisation Agency.

He recalled that the companies in Knjazevac will receive some 21.5 million dinars in subsidies from the Serbian budget, and yesterday an additional sum of 2 million dinars was allocated for IMT.

According to Bubalo, a sum of 83.4 million dinars has been allocated for the social welfare programme, of which 14 million dinars have been paid to the Fund for Pension and Disability Insurance.

Bubalo said that funds worth more than €11 million have been set aside for the Knjazevac area from the National Investment Plan, in which most of the money is intended for infrastructure and the energy sector.

He said that the new Constitution clearly defines that socially owned property does not exist any more as a category and recalled that 400 days remain to complete the privatisation process.

The Minister also said that Vladan Gajic has been appointed director of the Serbian Privatisation Agency.

Bubalo said that fuel prices will be lowered in the upcoming week, and that this was made possible by the latest fall in crude oil prices on world markets.