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The Government of the Republic of Serbia

In the service of citizens

Economic, political stability to be maintained in upcoming period

Belgrade, 22 June 2011

Serbian Prime Minister Mirko Cvetkovic said in an interview for today’s edition of Vecernje Novosti daily that it is beyond doubt that the end of the crisis is quite certain and what matters now is to maintain stability in order to show that Serbia is a state of legal security where investors are protected and welcome.

Author: novosti.rs

The Serbian government’s official website gives excerpts of this interview.

Anticipated achievements before the end of the reconstructed government’s mandate:

Acquiring candidate status, reduction of unemployment, gradual improvement in the living standard, conclusion of cooperation with the Hague tribunal, concrete results of dialogue with Kosovo Albanians in everyone’s interest. In order to achieve all of this, we need economic and political stability in the months ahead. After the reconstruction of the government, I saw that we can act as a strong team. Speedily, efficiently and with concrete results.

The greatest success in the fist 100 days of the reconstructed government:

First of all, this government is more efficient. In only three months we made significant progress. Let me list some of the measures: facilitations in loan repayment for companies and citizens, facilitations for employers when creating new jobs, secured funding for bridging the gap in pensionable service, agreement with unions and employers’ associations...

Has Serbia survived the hardest part of the crisis?

The worst is behind us, the end of the crisis is very certain. We survived the crisis firmly on our feet. What matters now is to maintain stability – the key is in our own hands. That way we will show the world that we are a country of legal security, where there are no surprises and where investors are welcome and protected.

Did bankruptcy loom over Serbia at any point?

Allegations that the country was facing bankruptcy and that we would fall to ruin if we sold Telekom were certainly of no avail. They served as bad signals, although not about the government, which can be replaced, but about the state itself. And even more so bearing in mind that these signals were incorrect. Thanks to measures which we continuously kept implementing, bankruptcy was never even near to posing a threat to Serbia.

Results in unemployment reduction:

For two straight months, in April and May, we saw an increase in the number of employed people for the first time in two years.

On inflation:

It is true that in April Serbia saw the highest inflation in the region, but it was caused by the increase in the price of electricity. The market is now stabilising, and the National Bank of Serbia (NBS) began mitigating its monetary policy. We expect inflation rate to continue its downward trend. I am optimistic in believing that we will end this year with a single digit inflation rate.

Dinar exchange rate by the year’s end:

The exchange rate is part of the monetary policy conducted by the NBS. In agreement with the central bank, we opted for the so-called flexible rate for our model of development, which reflects the current level of supply and demand, and the NBS can intervene only in case of drastic changes on a daily basis. I expect these changes to be relatively small-scale in the period ahead, and the exchange rate relatively stable.

New economic measures by the year’s end:

We will strive to reduce the economy’s illiquidity. We will introduce deadlines for settling obligations in order to break off the chain in which everyone owes everyone. We are contemplating a number of measures for agriculture. All of this is done with the aim of increasing industrial growth, that is, boosting export. We will also set up a Serbian development bank before the year’s end.

Will the European Commission recommend granting candidate status to Serbia by the end of the year and set the date for negotiations to begin?

Everything we do is aimed at acquiring candidate status. Serbia will not make any mistakes or fail to do what needs to be done. Everything now depends more on the situation in Europe and the mood towards further enlargement. It is comforting that we have been receiving encouraging signals from Brussels.

What is the hardest task on the EU path in the months ahead?

The law on restitution. This act must satisfy the interests of those whose property was confiscated, and at the same time make sure that the future of coming generations is not jeopardised. Does the government have a back-up strategy in case Serbia is not granted candidate status?

I cannot even imagine that scenario. I believe we will be notified about the date for the beginning of negotiations at the same time. Anyway, the reforms we are implementing are more important than the goal – EU entry – because we are changing and improving our country.

Is the recognition of Kosovo independence a precondition for EU entry?

Stances on Kosovo differ in the EU as well. For as long as even one EU member differs in opinion, and there are five members with such viewpoint at the moment, there can be no unanimous EU policy towards this issue. Therefore, the recognition cannot be a condition for integration.

Will the results of the dialogue with Pristina be another condition?

It will be beneficial for citizens if these talks yield results. I see this through the interests of people living in the province. Our side is constructive in the dialogue and has come up with a series of alternative proposals. Naturally, we will not consent to any solutions that implicitly or explicitly lead to the recognition of Kosovo’s independence.

Has the government contemplated the division of Kosovo?

No, it has not. This has never been a topic for discussion. Our Constitution clearly says that Kosovo is Serbia’s southern province and it is hard to imagine that any official would do anything in violation of the Constitution.

Will Belgrade agree to EULEX leading the investigation into human organ trafficking?

The government wants to implement a valid and thorough investigation and bring the suspects to justice. To shed full light on these and all other crimes committed in these areas, because this is a commitment to families of victims and to our future. Our arguments for insisting on the investigation being led under the UN supervision are quite strong. One of the main arguments is that all other investigations in former Yugoslavia were conducted in the same manner.