"No Fiat deal until SAA ratification"

Fiat will not initial a contract with Zastava until the SAA is ratified, due to EU's significant role in the deal.

Izvor: Politika

Tuesday, 26.08.2008.

12:12

Default images

Fiat will not initial a contract with Zastava until the SAA is ratified, due to EU's significant role in the deal. Minister of Economy and Regional Development Mladjan Dinkic said earlier that the contract would finally be signed in mid-September. "No Fiat deal until SAA ratification" However, this deadline may also be missed if Serbian MPs fail to show good will and continue to complain on breaches of the Rule of Procedure, Politika daily writes today. The state is supposed to invest approximately EUR 300mn to renew infrastructure in Kragujevac, which is also a part of the announced cooperation contract. But, since this big a figure can only come with the rebalancing of the budget, which is approved by parliament, this could also "postpone ceremonies at the Kragujevac factory". It is still uncertain when parliament will decide on this issue, and in the meantime, the newspaper has learned, the Italian corporation insists that the future contract determines exact deadlines and investments for the Kragujvac –Batocina highway, railroad to Lapovo and a bypass around the town. However, lawmakers' mood is not the only factor, but the FIAT investments as well, which are supposed to reach the sum of EUR 800mn. The daily writes that the money will not come directly from the Turin company, but via EU funds, where Fiat has applied for the money. What this means in that the potential Italian partner will also lose if the Serbian parliament fails to ratify the SAA. Experts also say that even with the growth of sales figures and rise of profits, Fiat is still not doing particularly well. In May, the Serbian government signed a Memorandum of Understanding with Fiat, after it signed the SAA with Brussels. The latter document was immediately suspended until Serbia achieves full cooperation with the Hague Tribunal, but is also awaiting ratification in the Serbian parliament.

"No Fiat deal until SAA ratification"

However, this deadline may also be missed if Serbian MPs fail to show good will and continue to complain on breaches of the Rule of Procedure, Politika daily writes today.

The state is supposed to invest approximately EUR 300mn to renew infrastructure in Kragujevac, which is also a part of the announced cooperation contract.

But, since this big a figure can only come with the rebalancing of the budget, which is approved by parliament, this could also "postpone ceremonies at the Kragujevac factory".

It is still uncertain when parliament will decide on this issue, and in the meantime, the newspaper has learned, the Italian corporation insists that the future contract determines exact deadlines and investments for the Kragujvac –Batočina highway, railroad to Lapovo and a bypass around the town.

However, lawmakers' mood is not the only factor, but the FIAT investments as well, which are supposed to reach the sum of EUR 800mn.

The daily writes that the money will not come directly from the Turin company, but via EU funds, where Fiat has applied for the money.

What this means in that the potential Italian partner will also lose if the Serbian parliament fails to ratify the SAA.

Experts also say that even with the growth of sales figures and rise of profits, Fiat is still not doing particularly well.

In May, the Serbian government signed a Memorandum of Understanding with Fiat, after it signed the SAA with Brussels. The latter document was immediately suspended until Serbia achieves full cooperation with the Hague Tribunal, but is also awaiting ratification in the Serbian parliament.

Komentari 10

Pogledaj komentare

10 Komentari

Možda vas zanima

Podeli: