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The Government of the Republic of Serbia

In the service of citizens

In case of high economic growth, unfreezing of salaries and pensions possible

Belgrade, 4 January 2010

Serbian Prime Minister Mirko Cvetkovic said that salaries of budget users and pensions might be unfrozen in 2010 if the economic growth is higher than the planned 1.5% of GDP.

Cvetkovic said in an interview to Beta news agency that should be agreed with the International Monetary Fund (IMF), since according to the current credit arrangement with this institution, salaries and pensions should be frozen until the end of the year.

The Prime Minister said that the Serbian government secured loans for all important infrastructural projects, with loans from Russia and China still being negotiated.

Cvetkovic said that favourable terms for a part of the loan from Russia which will be used for financing the budgetary deficit in 2010 have already been agreed upon.

The second part of the loan, intended for railway infrastructure, and some other project loans, are still being negotiated with Russia, as well as a loan from China, whose greatest part will be used for construction of a bridge over the Danube.

Cvetkovic voiced hope that the Bill on restitution will be adopted in 2010, together with two more loans that will regulate the field of public property.

He explained that the model of indemnification of ex owners has still not been defined because the Constitutional Court first has to pass the decision on the constitutionality of the Law on restitution of church property.

The Prime Minister said that the future law on restitution must set right the injustices done, but without harming the country's future.

Cvetkovic said that he is very satisfied with how Serbia’s financial sector has been stabilised during the world economic crisis, through coordinated economic and monetary policy.

I appreciate the independence of the monetary policy, but I want to be kept informed of the measures planned by the central bank, the Prime Minister said and added that he has regular meetings with the Governor of the National Bank of Serbia, Radovan Jelasic.

Cvetkovic said that a comprehensive fiscal reform is being prepared which will introduce a more even collection of taxes, with the rich paying more taxes and the poor less, or none at all.

The Prime Minister said that he is satisfied with the work of the ministers and that he is not considering making a reconstruction of the government.

My evaluation of the work of ministers is based on the level of fulfilment of the government’s main goals, which is very satisfactory because significant steps forward have been made, first and foremost in European integration, Cvetkovic stressed.

He said that there are segments he is not satisfied with, but not because someone did not do a good job, but because there were no financial possibilities for doing more.

It would be good if more had been done for the protection of the underprivileged and if the government had had more money for minimising the negative effects of the economic crisis by making greater investment in the economy, like it was done by richer countries, he said.

He voiced hope that Serbia will gain EU candidate status in 2010.

That is something I cannot promise and it is not good to set deadlines, but I promise that the government will remain dedicated to that goal because it has been proved that dedication always gives results, the Prime Minister pointed out.

Speaking about the Serbian government's engagement in the process of decision-making of the International Court of Justice (ICJ) on the legality of the unilaterally proclaimed independence of Kosovo at a time when Serbia is expected to fulfil conditions for obtaining the EU candidacy status, Cvetkovic reiterated that the government has the capacity to work simultaneously in several important fields.

We have proved to be capable of working on several important goals, such as acquiring the visa-free regime, fulfilling conditions for applying for EU candidacy, building good relations with the world’s leading powers and keeping Serbia’s position as a factor for stability in the region, Cvetkovic concluded.