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The Government of the Republic of Serbia

In the service of citizens

Legally ordered state to be basis for economic development, creation of economically strong Serbia

Belgrade, 19 May 2007

Serbian Prime Minister Vojislav Kostunica said today that only a legally ordered state can provide the basis on which it is possible to develop economically and create an economically strong Serbia.

Vojislav Kostunica

In an interview for Tanjug news agency, Kostunica said that a legal state is the great goal which we must achieve, and the basic precondition for Serbia’s economic progress must be a constant and uncompromising attitude in the fight against organised crime and corruption.

He added that he is convinced that the ministers of interior and justice will fully cooperate in this fight, and that the state will be stronger than any form of organised crime and corruption.

Regarding socio-economic policy which will be conducted by his government, Kostunica said that their biggest aim is summed in the simple slogan, “a better life and more employment for everyone in Serbia”.

In other words, as the Prime Minister explained, reduction of unemployment and poverty, and improvement of living standards are the top priorities of the new government.

Kostunica said that that includes the continuation of major strategic investments, completion of privatisation and attracting new direct investments.

Kostunica said that he believes that this government will work even more intensively to strengthen economic ties between Serbia and Republika Srpska and all other countries of the region, thus continuing the work already begun by the previous government in this area.

There are perfectly realistic ideas and bases on which we plan to achieve poverty reduction, increase employment and raise the living standard, said Kostunica.

He mentioned the statistics which show that the GDP per capita is in perpetual growth, that Serbia has become a leader in the Balkans regarding the speed of reforms and a record holder in GDP growth in South East Europe in 2006, that foreign direct investments increased by more than four times and privatisation proceeds have increased multifold.

The Serbian government, according to Kostunica, plans economic growth at an annual rate of 6%, 17% annual growth in exports and annual investments worth some $3 billion to $5 billion.

Kostunica said that the government will take all necessary measures for concluding cooperation with the Hague tribunal aiming to continue negotiations with the EU, but excluded the possibility of making any concessions concerning territorial integrity.

The government is truly united in the categorical stand that Serbia will never accept that Kosovo-Metohija is taken in exchange for European integration, said Kostunica.

He pointed to the fact that in the entire history of Europe thus far a country has never been required to relinquish 15% of its territory for the sake of any kind of reward.

According to Kostunica, the chief purpose of the government is to take care of the interests of Serbia.

Our position is that we are participating in integrative processes, which is the second of the five key programme principles of the government’s policy, chiefly due to our own state and national interests, said the Prime Minister.

That means, explained Kostunica, that we must validate the fact that Serbia is entering the international integrative process as a unified country with internationally recognised borders, with Kosovo-Metohija within these borders, as an unalienable part of Serbia.

He said that Serbia entered the process of stabilisation and association as a unified country and for the Serbian government every step closer to entering wider integration is a step away from the disintegration of the country.

For Serbia, full EU membership also implies equal status as a member state, just as that criterion of equality was valid for all other countries which judged that it is in their interest to enter the EU, said Kostunica.

The Serbian Prime Minister said that Serbia is ready for new negotiations so that a compromise solution may be found for the issue of Kosovo-Metohija, with the conviction that the UN Security Council will never adopt a resolution which proposes the seizure of 15% of the territory of a UN member state.

According to Kostunica, Serbia shows full willingness to enter new negotiations in order to find a solution based on compromise and agreement for the future status of Kosovo-Metohija, and the best basis for new talks should be a comprehensive assessment of implementation of standards defined in the UN SC Resolution 1244.

The Serbian government is firmly convinced that the Security Council will respect the UN Charter and will never adopt a resolution which proposes seizure of 15% of the territory of a UN member state, said the Prime Minister.

He explained that this conviction is based on the fact that there are states, above all Russia, which will in the Security Council uphold the basic principles of international law on which the international order rests. Kostunica said that it is of special importance that the Serbian government’s programme in advance states that any unilateral declaration and recognition of independence of the southern Serbian province will be invalid.

He said that the Serbian government will take all measures to conclude cooperation with The Hague, so that the process of stabilisation and association with the EU may resume as soon as possible.

The Prime Minister recalled the agreement on forming a national security council, headed by the Serbian President, which will coordinate and direct activities of all security services.

Of course, the aim is to fulfill all obligations toward the Hague tribunal, since that is in the interest of Serbia, stressed Kostunica.