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The Government of the Republic of Serbia

In the service of citizens

Serbia to get €144 mln under CARDS 2006 programme

Belgrade, 23 October 2006

Serbian Minister of International Economic Relations Milan Parivodic and head of the European Commission delegation to Serbia Josep Lloveras signed today the CARDS 2006 financial agreement under which Serbia will receive €144 million in non-repayable financial aid.

Josep Lloveras, left, and Milan Parivodic after signing the agreement

Parivodic told a press conference held before the signing of the agreement that this is the last tranche of the CARDS programme, adding that EU will continue to offer financial aid to Serbia through pre-accession instruments (Instrument for Pre-accession Assistance programme).

He said that Serbia has so far received €1.124 billion through the CARDS programme and explained that part of the funds have been used as humanitarian help to citizens, prevention of the collapse of the energy system and for the provision of hospitals with medicines.

According to Parivodic, next year’s funds from the CARDS programme will be used for tackling subsistence problems of refugees and improvement of employment, strengthening of public institutions - the police, health care and judiciary, as well for the improvement of public services offered by the local self-government.

Parivodic said that in the period 2007-2013 Serbia will access funds from the EU, but from the new, pre-accession IPA programme, which is used by countries that are on the way to becoming an EU member.

He said that the offer of non-repayable assistance by the EU can be interpreted as a clear signal and assurance that there is support from the EU for Serbia’s European perspective, which is another step forward in European integration.

Lloveras said that Serbia has made progress and will now be given institutional support by the EU instead of help for reconstruction.

He said that a complicated political period has begun in Serbia and it is necessary to make additional efforts regarding EU support, and voiced hope that negotiations on the Stabilisation and Association Agreement will continue as soon as conditions become suitable.

Assistant Minister of International Economic Relations Gordana Lazarevic said that €144 million will be used for improving democratic stability in the country, as well as for public administration reform and improvement of capacities, socio-economic development and various reserves.