By Milen Vesovic
Belgrade, March 19, 2010 (Serbia Today) – The Serbian Government announced that after a visit of a Polish Deputy Prime Minister and Minister of Economy Valdemar Pavlak to Serbia, he stated that: "Serbia and Poland have, as soon as possible, to reinforce an economic cooperation between the two countries".
The Polish official spoke to the Serbian Prime Minister Mirko Cvetkovic, Serbian Deputy Prime Minister and Minister of Economy Mladjan Dinkic and second Vice President (in charge of European integration) Božidar Đelić. It was concluded that it is necessary to promote the economic cooperation between Serbia and Poland in terms of increasing the volume of foreign trade, and in the field of investment, particularly in mining, energy and agriculture.
Wednesday, March 24, 2010
Tuesday, March 23, 2010
Minister "speaks in name of budget"
Belgrade, March, 18. 2010 (Source: B92) - Finance Minister Diana Dragutinović said that the state should try to have no budget rebalances this year and to keep wages and pensions at the same level.
She told daily Večernje Novosti that budget income is at the planned level and an increase in wages and pensions can be expected only if income increases significantly, stressing that she is speaking on the issue only in relation to the budget passed by the government. "I am not saying that there will not be an unfreezing (of wages and pensions), I am reading what is written in the budget. Nothing can be said for certain. I would like for us to have one budget in 2010. Not two. But for an increase in wages and pensions there would have to be a rebalance," she said. Dragutinović said that the problems of unemployment and the decrease in demand could be solved in part by tax reforms. She said that she personally supports an increase in taxes on spending and a decrease of taxes on wages, adding that this is "her personal vision of tax reforms, which does not mean that the government must accept it.
She told daily Večernje Novosti that budget income is at the planned level and an increase in wages and pensions can be expected only if income increases significantly, stressing that she is speaking on the issue only in relation to the budget passed by the government. "I am not saying that there will not be an unfreezing (of wages and pensions), I am reading what is written in the budget. Nothing can be said for certain. I would like for us to have one budget in 2010. Not two. But for an increase in wages and pensions there would have to be a rebalance," she said. Dragutinović said that the problems of unemployment and the decrease in demand could be solved in part by tax reforms. She said that she personally supports an increase in taxes on spending and a decrease of taxes on wages, adding that this is "her personal vision of tax reforms, which does not mean that the government must accept it.
Monday, March 22, 2010
Unions waiting for answer from government
Belgrade, March, 17. 2010 (Source : B92) - Unions and employers are asking for a meeting with government officials to reach an agreement on key economic measures for 2010. The government has yet to address their request. The goal of the meeting would be to discuss measures for lessening the effects of the crisis which the citizens will continue to experience this year. “The Independent Union is expecting an answer from the prime minister today on the demand submitted for a joint meeting with business and union officials. The main topic will be the economic ambient in Serbia and efforts to get out of the crisis. The consequences of the current ambient in Serbia are small wages, a lot of unemployment, small pensions,” Independent Union President Ljubisav Orbović told B92. Orbović said that the government is not leading a clear economic policy, which is why a social crisis is possible. “I believe that in this moment, we have no knowledge of what direction Serbia is heading in. The position we are in shows that the crisis will be greater and greater, and a third kind of crisis is approaching, a social crisis, where more people would be made redundant, which is not sustainable and cannot be accepted. We are offering a joint meeting and joint solution and to reach a joint agreement,” Orbović said.
Average monthly budget per household RSD 47,582 in fourth quarter of 2009
Belgrade, March, 16. 2010 (Serbia Today) – The Serbian Statistics Office stated that in the fourth quarter of 2009 the average monthly budget per household in Serbia stood at RSD 47,582.
The statement adds that 94.9% of the total available funds is monetary income and 5.1% is income in kind. The largest share in monetary income is recorded with citizens with regular jobs, ie 45.8%, and 33.8% with pensioners. Personal expenses in households in Serbia amounted to RSD 44,886, of which the largest part was spent on food and non-alcoholic beverages (40.7%).
The statement adds that 94.9% of the total available funds is monetary income and 5.1% is income in kind. The largest share in monetary income is recorded with citizens with regular jobs, ie 45.8%, and 33.8% with pensioners. Personal expenses in households in Serbia amounted to RSD 44,886, of which the largest part was spent on food and non-alcoholic beverages (40.7%).
Friday, March 19, 2010
Infrastructure development necessary for fast growth
Kopaonik, March 13. 2010 (Serbia Today) – Minister for the National Investment Plan (NIP) Verica Kalanovic said that all post global economic crisis development models for Serbia make infrastructure development a priority and a necessity for quicker growth.
In a statement to Tanjug news agency from the Kopaonik Business Forum 2010 Kalanovic said that from this year on only infrastructure projects will be financed with NIP funds and no financing will be provided for maintenance costs, equipment, consulting, subsidies and soft loans. Compared to 2009, the number of NIP projects has been reduced and procedures almost identical to World Bank procedures are being followed, said Kalanovic. She said that this year around RSD 26 billion will be at the NIP’s disposal, of which sum RSD 15.5 billion is from the budget and RSD 10 billion from the European Investment Bank’s project loan. Kalanovic stressed that a new model for project realization and management is needed, namely one that implies partial management modernization at the central level, through the work of ministries and the transformation of certain institutions. The Minister said that the realization of projects in Serbia is still slow, even though progress was achieved both in 2009 and 2010. She also emphasized that the government goal is to create preconditions to enable project realization over a few months, starting from the day when the funds are approved.
In a statement to Tanjug news agency from the Kopaonik Business Forum 2010 Kalanovic said that from this year on only infrastructure projects will be financed with NIP funds and no financing will be provided for maintenance costs, equipment, consulting, subsidies and soft loans. Compared to 2009, the number of NIP projects has been reduced and procedures almost identical to World Bank procedures are being followed, said Kalanovic. She said that this year around RSD 26 billion will be at the NIP’s disposal, of which sum RSD 15.5 billion is from the budget and RSD 10 billion from the European Investment Bank’s project loan. Kalanovic stressed that a new model for project realization and management is needed, namely one that implies partial management modernization at the central level, through the work of ministries and the transformation of certain institutions. The Minister said that the realization of projects in Serbia is still slow, even though progress was achieved both in 2009 and 2010. She also emphasized that the government goal is to create preconditions to enable project realization over a few months, starting from the day when the funds are approved.
Wednesday, March 17, 2010
Serbia needs 2 pct. GDP growth
Kopaonik, March 11, 2010 (Source: Tanjug) - PM Mirko Cvetkovic told the Kopaonik business forum that country cannot get out of the economic crisis without a GDP growth of over 2 percent. He added that the key challenges in 2010 will be to stop the increase in unemployment, revive domestic demand and achieve macroeconomic stability.
“ If we do not achieve a growth higher than 2 percent, this year will be similar to the year of the crisis and we will have no sense of improvement”, said Cvetkovic, Nothing that the country needs a continuous growth of 5 to 6 percent annually for it to move forward. The prime minister said that there is no reliable data that would suggest with certainty that Serbia has come out of the crisis, but that there are a number of indicators for that, like the 31 percent increase in export in the first two months of 2010, which inspires optimism.
According to Cvetkovic, stimulating export oriented sectors of the economy, attracting strategic investors and improving Serbia”s rating are also key to the country's economic recovery. The government goals in 2010 will be to strengthen economic activity, maintain stability of the Serbian dinar, reduce public spending, prevent an increase in poverty, continue the public sector reform, work on harmonization with European standards and fight crime and corruption. Cvetkovic pointed out that the 3,7 percent growth in industrial production in January,the said high increase in export and the 1,5 percent growth of the composite index also in January all point to positive trends since the start of 2010 and signal a signal a growth of GDP.
The negative indicators, according to Cvetkovic, are the fact that budget revenue was lower than had been planned for the first two months of this year and the continued drop in domestic demand over the same period. Cvetkovic stressed that the government has no trouble formulating the economic policy, but that it has problems coping with conflicting interests that appear as part of that model, and he asked for assistance from companies and economic experts in dealing with those. As an example, Cvetkovic stated the government’s intention to raise demand while reducing public spending, which is the prime source of demand. As another example of such conflicts, he described the necessity to improve the living standard and increase salaries while maintaining a restrictive budget. Cvetkovic announced over RSD 160BN of investments by the government and public enterprises in 2010, a RSD 4 BN fiscal stimulus to support the construction and purchase of new apartments, measures to stimulate export and support in conquering new markets.
“ If we do not achieve a growth higher than 2 percent, this year will be similar to the year of the crisis and we will have no sense of improvement”, said Cvetkovic, Nothing that the country needs a continuous growth of 5 to 6 percent annually for it to move forward. The prime minister said that there is no reliable data that would suggest with certainty that Serbia has come out of the crisis, but that there are a number of indicators for that, like the 31 percent increase in export in the first two months of 2010, which inspires optimism.
According to Cvetkovic, stimulating export oriented sectors of the economy, attracting strategic investors and improving Serbia”s rating are also key to the country's economic recovery. The government goals in 2010 will be to strengthen economic activity, maintain stability of the Serbian dinar, reduce public spending, prevent an increase in poverty, continue the public sector reform, work on harmonization with European standards and fight crime and corruption. Cvetkovic pointed out that the 3,7 percent growth in industrial production in January,the said high increase in export and the 1,5 percent growth of the composite index also in January all point to positive trends since the start of 2010 and signal a signal a growth of GDP.
The negative indicators, according to Cvetkovic, are the fact that budget revenue was lower than had been planned for the first two months of this year and the continued drop in domestic demand over the same period. Cvetkovic stressed that the government has no trouble formulating the economic policy, but that it has problems coping with conflicting interests that appear as part of that model, and he asked for assistance from companies and economic experts in dealing with those. As an example, Cvetkovic stated the government’s intention to raise demand while reducing public spending, which is the prime source of demand. As another example of such conflicts, he described the necessity to improve the living standard and increase salaries while maintaining a restrictive budget. Cvetkovic announced over RSD 160BN of investments by the government and public enterprises in 2010, a RSD 4 BN fiscal stimulus to support the construction and purchase of new apartments, measures to stimulate export and support in conquering new markets.
Tuesday, March 16, 2010
Employees of SIK Kopaonik get their first salaries after production recovery
Kursumlija, March 10, 2010 (Serbia Today) – Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said in Kursumlija today that €8 million will be invested in the Forestry and Industrial Complex (SIK) Kopaonik by autumn. At the initiative of the Ministry of Economy and Regional Development, the production in this company was restarted in February and thus 300 workers of the company got their first salaries after more than 20 months. By the end of March, this company will also receive a loan from the Development Fund, on the basis of a recently adopted programme of the Serbian government for production revival and employment in economically devastated areas of Serbia, the Minister said after visiting SIK Kopaonik. He recalled that Kursumlija belongs to a group of 40 municipalities in Serbia whose level of development is approximately 50% of the republic’s average. The Ministry of Economy and Regional Development has earmarked €100 million for the promotion of balanced regional development through the revival of production and employment in the poorest municipalities in Serbia, he said. He said during his visit to Kursumlija that a great opportunity for the development of this part of Serbia lies in spa tourism, which is confirmed by resorts such as Prolom and Lukovska Banja which have great potential. However, Kursumlijska Banja has not been in operation for 15 years and a tender will be called to invite investors to cooperate with the state to revive it, said Dinkic.
The offer will include a debt write-off and the state will be a partner in the new company, while the renovation of the hotel will be the investor’s obligation, he explained. An agreement should also be reached with pension and disability insurance funds and trade unions which would use the services offered by the resort, he said. Since there are plans for beginning the construction of a motorway from Nis to Prokuplje next year and Djavolja Varos is a big tourist attraction, I think we must revive resorts and spas. The state will work on the infrastructure and provide personnel qualified for running resorts, he said.
The offer will include a debt write-off and the state will be a partner in the new company, while the renovation of the hotel will be the investor’s obligation, he explained. An agreement should also be reached with pension and disability insurance funds and trade unions which would use the services offered by the resort, he said. Since there are plans for beginning the construction of a motorway from Nis to Prokuplje next year and Djavolja Varos is a big tourist attraction, I think we must revive resorts and spas. The state will work on the infrastructure and provide personnel qualified for running resorts, he said.
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