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A:
Macroeconomic stability priority for 2009
Belgrade,
30 December 2008
Serbian Prime Minister Mirko Cvetkovic today announced that the government’s priority for 2009 will be the preservation of macroeconomic stability and Serbia’s application for EU membership.
At a press conference regarding the government’s achievements in 2008, Cvetkovic said Serbia’s application for EU membership will depend on the European Integration Council’s stance.
The government’s priorities will also be Serbia’s inclusion in the Schengen “white list” and the fight for the preservation of Kosovo-Metohija as an integral part of its territory, said Cvetkovic.
According to the Prime Minister, Serbia is to prepare in 2009 for the protection of its interests before the International Court of Justice (ICJ), i.e. for the debate concerning the illegally declared independence of Kosovo.
Cvetkovic voiced hope that the ICJ process concerning the status of Kosovo will start in 2010.
As for the Serbian economy, Cvetkovic said that next year will be hard, but Serbia will manage to overcome the crisis.
After the recovery of the world economy, Serbia will strengthen its economy and will increase GDP growth, Cvetkovic said, stressing that the government will continue to monitor the global economy.
Cvetkovic thanked all MPs, regardless of their political orientation, for the adoption of the 2009 budget.
According to Cvetkovic, projected GDP growth in 2009 is 3.5% and inflation 8%, while this year GDP growth was 6.1% and inflation 6.9%. Cvetkovic also said that the government will probably have to withdraw its signature from the general collective agreement, as no agreement with trade unions has been reached.
He said he is not optimistic and announced that the government will suggest negotiation resume after the New Year.
According to him, the government suggested the postponement of the implementation of the expanded general collective agreement, due to the reflection of the global economic crisis on the Serbian economy.
He also expressed hope that employers will participate in said negotiations.
Cvetkovic also announced that the unilateral implementation of the Transitional Trade Agreement with the EU, due for January 1, 2009, has been postponed until parliament amends customs laws. He announced that the government will return a set of tax laws to parliament by tomorrow and expressed hope they will be adopted in January.
The Prime Minister stressed that this should not negatively affect the country’s economy or foreign trade deficit.
Cvetkovic recalled that customs fees have dropped in some EU countries, which will reduce the price of raw materials and products.
He said lower export and import rates have been recorded in the past two months, adding that he expects the drop in the price of energy sources to have a positive effect on the deficit.
He said that trade with CEFTA members, with which Serbia has a surplus, will also help reduce the deficit.
Cvetkovic recalled that this year Serbia achieved two diplomatic victories, specifying that the UN General Assembly adopted Serbia’s Resolution asking the ICJ for an opinion on the legality of the unilaterally proclaimed Kosovo independence, as well as that the EULEX mission was deployed to Kosovo under UN auspices and terms proposed by Belgrade.
According to him, EULEX is a technical mission which is to aid the rule of law in the province with Belgrade’s participation.
He said that except for the energy agreement with Russia the government has made all decisions unanimously, adding that the differences that have come up in the past few weeks can be easily overcome.
The government’s greatest successes are the agreement on a strategic partnership with Italy’s Fiat and the agreement on the sale of the Serbian oil industry NIS, as part of the energy deal with Russia, said Cvetkovic.
The Prime Minister said that the energy agreement, whose effects will be felt in the years to come, will have huge importance for Serbia.
The government’s priorities will also be Serbia’s inclusion in the Schengen “white list” and the fight for the preservation of Kosovo-Metohija as an integral part of its territory, said Cvetkovic.
According to the Prime Minister, Serbia is to prepare in 2009 for the protection of its interests before the International Court of Justice (ICJ), i.e. for the debate concerning the illegally declared independence of Kosovo.
Cvetkovic voiced hope that the ICJ process concerning the status of Kosovo will start in 2010.
As for the Serbian economy, Cvetkovic said that next year will be hard, but Serbia will manage to overcome the crisis.
After the recovery of the world economy, Serbia will strengthen its economy and will increase GDP growth, Cvetkovic said, stressing that the government will continue to monitor the global economy.
Cvetkovic thanked all MPs, regardless of their political orientation, for the adoption of the 2009 budget.
According to Cvetkovic, projected GDP growth in 2009 is 3.5% and inflation 8%, while this year GDP growth was 6.1% and inflation 6.9%. Cvetkovic also said that the government will probably have to withdraw its signature from the general collective agreement, as no agreement with trade unions has been reached.
He said he is not optimistic and announced that the government will suggest negotiation resume after the New Year.
According to him, the government suggested the postponement of the implementation of the expanded general collective agreement, due to the reflection of the global economic crisis on the Serbian economy.
He also expressed hope that employers will participate in said negotiations.
Cvetkovic also announced that the unilateral implementation of the Transitional Trade Agreement with the EU, due for January 1, 2009, has been postponed until parliament amends customs laws. He announced that the government will return a set of tax laws to parliament by tomorrow and expressed hope they will be adopted in January.
The Prime Minister stressed that this should not negatively affect the country’s economy or foreign trade deficit.
Cvetkovic recalled that customs fees have dropped in some EU countries, which will reduce the price of raw materials and products.
He said lower export and import rates have been recorded in the past two months, adding that he expects the drop in the price of energy sources to have a positive effect on the deficit.
He said that trade with CEFTA members, with which Serbia has a surplus, will also help reduce the deficit.
Cvetkovic recalled that this year Serbia achieved two diplomatic victories, specifying that the UN General Assembly adopted Serbia’s Resolution asking the ICJ for an opinion on the legality of the unilaterally proclaimed Kosovo independence, as well as that the EULEX mission was deployed to Kosovo under UN auspices and terms proposed by Belgrade.
According to him, EULEX is a technical mission which is to aid the rule of law in the province with Belgrade’s participation.
He said that except for the energy agreement with Russia the government has made all decisions unanimously, adding that the differences that have come up in the past few weeks can be easily overcome.
The government’s greatest successes are the agreement on a strategic partnership with Italy’s Fiat and the agreement on the sale of the Serbian oil industry NIS, as part of the energy deal with Russia, said Cvetkovic.
The Prime Minister said that the energy agreement, whose effects will be felt in the years to come, will have huge importance for Serbia.
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