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The Government of the Republic of Serbia

In the service of citizens

Government adopts 223 recommendations for abolishing harmful regulations

Belgrade, 29 December 2009

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic stated that at today’s session the government adopted 223 recommendations for abolishing harmful bureaucratic regulations that will help to save €64.3 million a year.

Mladjan Dinkic at today's press conference

At a press conference following the government session Dinkic said it now remains to harmonise another 122 recommendations, whose adoption will help to make additional savings of up to €121.6 million a year.

He specified that once all recommendations are adopted, the total savings will amount to around €200 million a year.

The deadline for implementing the recommendations adopted today is February 1, 2010 for the less demanding and March 31 for those that are more difficult to enforce. In cases where information technology has to be introduced to implement the recommendation, the deadline is June 30, 2010, the Minister explained.

Dinkic stressed that the plan is to complete the guillotine of regulations by mid-2010, which means all necessary bylaws must be adopted and the government and parliament must pass all the necessary bills.

He said he is pleased the guillotine of regulations has begun, but criticized the pace of its realisation.

The Minister explained that some still resist the process because it will inevitably lead to the termination of a certain number of jobs.

Recommendations that will bring in the largest savings are the extension of travel orders from seven to thirty days, which will save €20.7 million, and the abolishment of employees’ obligation to sign the records of their salaries, which will help to save €10.8 million.

By lowering the road toll for vans, which is currently the same as for buses and trucks, the Serbian economy will save €5.3 million, the Minister noted.

Dinkic affirmed that the new job classification for his Ministry has been completed, adding that 73 employees will be laid off.

According to the new job classification, which has been sent to the government for adoption, a total of 310 persons will be employed at the Ministry, Dinkic said, specifying that this includes the 28 recently hired economic diplomats.

Dinkic said that the €98 million, which Fiat today deposited on the account of Fiat Automobili Srbija, will be immediately invested in the production of a new type of Fiat vehicle.

The funds will be used to procure equipment, for renovation and preparations for the production of the new vehicle, scheduled for the second half of 2011, the Minister said.

As for the remaining Fiat investment, Dinkic specified that another €600 million will be invested, noting that it will arrive in tranches over the next year and a half.