Q:
A:
Serbian government to press ahead with structural reform
Belgrade,
29 November 2004
Serbian Deputy Prime Minister Miroljub Labus said today that the government is determined to press ahead with structural reforms in 2005 and to improve in the second stage of economic transition.
Miroljub Labus
He told the 4th Round Table with the Government of Serbia, organised by London magazine the Economist at the Hyatt Hotel, that more laws will be passed, but added that the enforcement of existing ones is even more important.
He stressed that regulations governing the tender privatisation process must be updated so as to eliminate bidders who are “not serious”.
Labus stressed that debts of large enterprises are the biggest problem and that they must be “centralised” along with the adoption of rules to define the way in which the state should take over these debts.
Labus announced a larger numbers of tender sales of socially-owned companies but he warned that restitution of property poses a much bigger problem.
He announced that restructuring of Serbia’s infrastructure enterprises will be continued next year, adding that the energy sector will not be privatised yet, although it is uncertain whether the telecommunications industry will go private.
Investment, according to Labus, must maintain its double-digit growth rate, noting that this compels the government to further improve the country’s investment climate.
He explained that investors’ problems with obtaining building sites are not under the state’s jurisdiction but rather under the jurisdiction of municipal authorities.
He also reassured foreign investors, saying that the value added tax (VAT) will be implemented properly but he added that a period of three months will be required for “adjustment”.
He said that inflation has reached 10 percent this year due to higher energy costs but he promised that it will not go up in 2005.
Labus also reprimanded foreign investors for their tendency to undervalue domestic companies in the process of privatisation, thus putting the discount rate at 19 to 20 percent. With this fiscal rate, he explained, no company can perform well.
He also warned that privatised companies are not creating new jobs and that foreign companies are trying to establish a monopoly in the Serbian market.
He also pointed to discrimination against the elderly work force, adding that foreign firms are running ads in Serbia that would be banned in their own countries.
Labus expressed conviction, however, that foreign investors have come here to stay rather than just seize the opportunity and that their activity will facilitate economic growth in Serbia.
He stressed that regulations governing the tender privatisation process must be updated so as to eliminate bidders who are “not serious”.
Labus stressed that debts of large enterprises are the biggest problem and that they must be “centralised” along with the adoption of rules to define the way in which the state should take over these debts.
Labus announced a larger numbers of tender sales of socially-owned companies but he warned that restitution of property poses a much bigger problem.
He announced that restructuring of Serbia’s infrastructure enterprises will be continued next year, adding that the energy sector will not be privatised yet, although it is uncertain whether the telecommunications industry will go private.
Investment, according to Labus, must maintain its double-digit growth rate, noting that this compels the government to further improve the country’s investment climate.
He explained that investors’ problems with obtaining building sites are not under the state’s jurisdiction but rather under the jurisdiction of municipal authorities.
He also reassured foreign investors, saying that the value added tax (VAT) will be implemented properly but he added that a period of three months will be required for “adjustment”.
He said that inflation has reached 10 percent this year due to higher energy costs but he promised that it will not go up in 2005.
Labus also reprimanded foreign investors for their tendency to undervalue domestic companies in the process of privatisation, thus putting the discount rate at 19 to 20 percent. With this fiscal rate, he explained, no company can perform well.
He also warned that privatised companies are not creating new jobs and that foreign companies are trying to establish a monopoly in the Serbian market.
He also pointed to discrimination against the elderly work force, adding that foreign firms are running ads in Serbia that would be banned in their own countries.
Labus expressed conviction, however, that foreign investors have come here to stay rather than just seize the opportunity and that their activity will facilitate economic growth in Serbia.
-
Belgrade, 19 August 2025Potential for improving cooperation with Japan
-
Belgrade, 15 August 2025Joint action of all services, farmers to protect livestock
-
Belgrade/Marsaskala, 11 August 2025Monument to Milunka Savić, young Serbian officers unveiled
-
Belgrade, 8 August 2025Continued support for UNMIK engagement within existing framework
-
Belgrade/Almaty, 8 August 2025Strengthening institutional, professional ties between Serbia, Kazakhstan
-
Belgrade, 7 August 2025Gašić sends telegram of condolences on death of Ghanaian government officials
-
Belgrade/Washington, D.C., 6 August 2025Serbia-US strategic dialogue to begin soon
-
Belgrade, 6 August 2025Agreement signed with EU on financing programme for environment, energy
-
Belgrade, 6 August 2025Support of OSCE Mission to reform processes in Serbia
