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The Government of the Republic of Serbia

In the service of citizens

A total of €100m to be invested in regional development

Belgrade, 19 June 2007

Serbian Minister of Economy and Regional Development Mladjan Dinkic opened today a conference of the European Agency for Reconstruction (EAR) held at the Palace Hotel, dedicated to regional development, EU experiences and a concrete plan of assistance to Serbia in this area.

Author: Fonet

Dinkic announced that the Ministry plans to invest around €100 million in even-balanced regional development this year and warned that according to economic indicators, the ratio between Serbia’s most underdeveloped and developed municipality is 1:15.

We will invest in strengthening infrastructure in less developed local self-governments, primarily in the construction of utility infrastructure, as well as in the development of industrial zones, explained Dinkic and said that the Ministry will set aside €80 million for these two programmes.

According to Dinkic, favourable loans for small and medium-sized enterprises in most underdeveloped municipalities will also be provided, and the aforementioned €100 million will be secured for the second half of the year only.

The Minister said that funds for equal regional development will not be sufficient for a longer term, adding that the Serbian government is counting on funds from EU pre-accession funds.

Two out of five EU HIPA funds instruments are intended for cross-border cooperation and regional development and the EAR assistance will be more than welcome, stressed Dinkic and added that current state of affairs regarding underdeveloped municipalities in Serbia is alarming.

The Minister announced that the government will in the course of next year propose a bill on regional development in which a special section will be devoted to even-balanced regional development. He also said there are serious problems in municipalities from which people are moving out.