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The Government of the Republic of Serbia

In the service of citizens

Serbian government making every effort to improve economic situation

Belgrade, 5 September 2010

Prime Minister Mirko Cvetkovic stated today that the Serbian government is not against increasing salaries but expert analysis shows that the current level of productivity cannot support this.

In an interview with the daily Pres, Cvetkovic emphasised that he is dissatisfied with Serbia’s low level of economic productivity, adding that the government is doing everything in its power to improve the situation.

Serbia is not the country with the lowest wages in the region, but salaries are significantly smaller than in Croatia and Slovenia. Salaries will increase when production goes up, he pointed out.

It is expected that employment levels will rise near the New Year. This is very important, as then salaries will also go up, Cvetkovic remarked.

Commenting on the statement that businesspeople are complaining that they do not have good communication with the government and that the government does not have a strategy for economic recovery, Cvetkovic said that the government cannot communicate with businesspeople on an individual level, rather through organisations and associations.

We are making an effort to listen to their problems and we are trying to help them solve these problems. I am convinced that this government is maintaining far more intensive contacts with the business community than any in the past, he underlined.

The global economic crisis was an additional reason to hold consultations and a large number of anti-crisis measures were the result of precisely such negotiations, he noted.

The government is examining the causes of the scarcity of milk and other food items. It was questionable right from the start whether the scarcity is a result of circumstances or what we are seeing is an attempt to increase prices through hoarding, the Prime Minister elaborated.

Relevant ministries and inspection services have received orders to prevent attempts at creating chaos in the market, he affirmed

The current situation regarding food stocks for dairy produce, bread manufacturing and cooking oil will be established. The government will take all necessary measures to ensure a regular and good quality food supply, he declared.

This will involve taking legal action against those found responsible for hoarding and if necessary stocks of the Commodity Reserves will be used or necessary items will be imported, Cvetkovic outlined.

He announced that the possibility of increasing subsidies in order to raise production levels will also be examined.

The government has decided to sell its majority ownership in Telekom Srbija through a transparent procedure to a strategic partner who will accelerate the development of the company and the telecommunications sector generally, explained the Prime Minister.

The Serbian government is not trying to sell Telekom Srbija at any cost, rather exclusively to a partner who can utilize its value and development potential, he reiterated.

Interest is being shown in the company from strategic partners from Europe and the rest of the world, which is a signal of success for the transaction which will be formally announced in September, he concluded.