Government priorities to increase employment, living standards

Belgrade, March 26. 2010 (Serbia Today) - Serbian Prime Minister Mirko Cvetkovic said today that the main priority of the government this year will be to increase employment and living standards.
At the 8th business roundtable meeting with the Serbian government under the title "New policies for economic growth", the Prime Minister announced a series of stimulating measures for stopping the growth of unemployment and to increase economic activity. He stressed that the government will be active in seeking strategic investors from Europe and around the world. Cvetkovic announced the securing of funds for stimulating export-oriented enterprises and strengthening institutional capacity for conquering new markets. The Prime Minister said that the government will work on the identification of sectors that have export potential.Emphasis will be placed on small and medium enterprises (SMEs),he underlined.Also, Cvetkovic announced fiscal incentives that will encourage growth in domestic demand and investment in infrastructure. He added that the government will encourage efficiency of public enterprises and their investments, which will be given government guarantees. Speaking about investment in the energy sector, the Prime Minister said that out of €1.6 billion foreseen for this purpose, power industry Elektroprivreda Srbije (EPS) and forest management company Srbijasume will receive €700 million, which amounts to 5% of GDP. The Prime Minister announced special incentives for the building sector, adding that the fiscal stimulus will be €20 million, which should instigate housing construction worth €300 million.
Cvetkovic said that we should expect reforms in the judiciary, pension and disability insurance sector, as well as in education. Along with the economic policy, a plan of social security for citizens will be implemented, he announced, noting that systemic laws on social protection and better identification of vulnerable groups will be adopted. All measures will be balanced and will not affect macroeconomic stability, said Cvetkovic. When it comes to the sale of Telekom Srbija, he stressed that the government considered which percentage of this company should be sold to attract more than one interested party and therefore has decided to sell 40% of the shares. He said that the buyer of 40% of Telekom’s shares will become the majority owner, because the shares will be distributed to citizens and will be available for trading, so the future owner of 40% of the shares would be able to become the majority owner. Cvetkovic said that the sale of Telekom will be similar to Mobtel’s sale. The Prime Minister stressed that the money from the sale of Telekom will go to a special fund for investments. Namely, the funds will be used to build roads such as road Belgrade–Cacak, Cacak–Pojate–Krusevac, Paracin–Vrska Cuka, Nis–Prokuplje and others, the Prime Minister said. Cvetkovic said that the Serbian government is committed to regional cooperation and better relations in the region, and pointed out that there are some problems in the Balkans, but that they can be dealt with through talks. He stressed that the official position of Belgrade is to preserve the territorial integrity of Serbia and added that the decision of the International Court of Justice (ICJ) will create the basis for new talks, which should lead to a mutually acceptable solution to the issue of Kosovo-Metohija.