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The Government of the Republic of Serbia

In the service of citizens

Government priority – preservation of country’s sovereignty, territorial integrity

Belgrade, 25 August 2008

Serbian Prime Minister Mirko Cvetkovic stated today that the government’s priority is the preservation of the country’s sovereignty and territorial integrity and that in that sense the new government is fully consistent with the previous one, which has already been demonstrated in the first 50 days of its rule.

Mirko Cvetkovic

In an interview for today’s edition of the Blic daily, Cvetkovic stressed that the proof of this is the proposal resolution submitted to the UN General Assembly with the initiative that the International Court of Justice give its opinion on the legality of Kosovo’s unilateral proclamation of independence and the resolution on the continuity of state policy toward Kosovo forwarded to Serbian parliament for adoption.

He said that in its daily activities, the Ministry for Kosovo-Metohija and the Ministry of Foreign Affairs are highlighting their stances and working hard to show that Serbia’s view of the Kosovo issue implies the use of all available peaceful and diplomatic means. This means that Kosovo is on the list of priorities in the same rank as the EU accession process.

The government’s official web site gives excerpts of this interview.

On Serbian parliament’s work:

I think it is very unfortunate that the opposition is obstructing parliament’s work considering that its agenda implies only four items crucial to all citizens – EU integration, that is, ratification of the Stabilisation and Association Agreement with the EU, the gas agreement with Russia, ratification of loans for building infrastructure and affirmation of the continuity of state policy towards Kosovo. On the other hand, we continued cooperation with the Hague Tribunal and we are thus fighting for Kosovo because we respect international law. Our activities in the economic sector are even greater, though less obvious because their effects cannot be seen at once.

On Serbia’s progress toward the EU:

This process usually takes ten or more years, therefore it is difficult to give an estimate after only 50 days. The government is committed to this task and we want it completed as soon as possible. In my opinion, it is not important whether we join the EU in 2012 or 2014, but that with each step we become more successful primarily in the economy. Formal membership with an insufficiently developed system can even generate further problems, which we have seen in some countries.

When will Serbia be put on the white Schengen list?

There are several laws we have to adopt. Passports are issued far too slowly. Again, parliament is the one that has to play its role more efficiently. We are working on a whole set of laws related to EU accession, some of which are important for the white Schengen list. Apart from that, we have to solve technical problems with passports. We currently have two documents, but neither is acceptable for the non-visa regime, therefore we must reach an agreement. There is political willingness and I believe that it does not matter whether we do that a few months earlier or not.

Do you believe that Mladic will end up in The Hague and when?

I cannot speculate about the when. However, no one can now say that there is no political willingness to solve this issue. I personally think that it would be best if the matter is resolved by the indictee’s voluntary surrender. I also think that those who impose Mladic’s arrest as a precondition for EU integration are not fair to us because we clearly showed a readiness to cooperate by extraditing Radovan Karadzic.

On the 10% pension increase:

We agreed to improve the position of pensioners. PUPS is asking for a 10% increase and we are currently negotiating with them to fit everything within our financial capabilities. In any case, pensions will be increased by year’s end by around 17%.

On announcements that the concession contract for the Horgos-Pozega motorway section will be terminated, with the government taking over its construction:

Talks on concession are underway. We are considering two options – to continue with the signed contract or to terminate it by mutual agreement. The second option is more realistic and we are discussing it with the concessionaire. If it comes to that, the works will begin in September or October.

How would the state finance the construction?

As for Corridor 10, we have three unfinished sections and the ring road around Belgrade. This totals €2 billion and with a combined distance of around 300 kilometres. The cost of the sections differs greatly. The Novi Sad-Horgos section is over 100 kilometres long and will cost €150–€200 million. On the other hand, the sections towards Macedonia and Bulgaria will cost around €600 million each. The budget can support the construction of the branch towards Hungary and even the entire package of €2 billion, which we need over a four-year period, is not impossible to procure. We are in intensive negotiations with the European Bank for Reconstruction and Development, the European Investment Bank and the World Bank. The €500 million increase in the public debt is not too great a burden since we are already paying back current loans to that amount. Therefore, I believe there will be no insurmountable obstacles regarding financing.

Is €500 million for the Serbian oil industry NIS an appropriate price?

Buying a wheel for your car is one thing, and buying a whole car is another. And when you are buying the whole car, the wheel is much cheaper than on its own. We are talking about an arrangement on oil and gas cooperation and not just the sale of NIS and we want to see how the state will benefit from it. We will hire an advisor to consider the price for Nis as well as effects of the entire agreement.