"New government must maintain Serbia's credibility"

The next government's most important tasks will be to maintain Serbia's credibility, control public spending, resume talks with the IMF and balance the budget.

Izvor: Tanjug

Monday, 23.04.2012.

14:20

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The next government's most important tasks will be to maintain Serbia's credibility, control public spending, resume talks with the IMF and balance the budget. This is according to professor at the Belgrade Faculty of Economics Jurij Bajec, who is also an adviser to the Serbian prime minister. "New government must maintain Serbia's credibility" At the time of Europe's public debt crisis, it is very important that Serbia's budget deficit stay within the agreed limits so that the country could keep its relatively good credit rating of BB, Bajec told Tanjug news agency on Monday. He added that it was encouraging that the IMF prognosis has Serbia's economic growth for this year at 0.5 percent and three percent for next year, while inflation is expected to reach 4.5 percent this year and abate in 2013. The key forecast, he said, is that the unemployment surge will stop in 2013, after several difficult years. "These are three things which we now need to make happen, because they will not happen on their own," warned Bajec, noting that the new government would need to prepare by the end of 2012 for the coming years. The new government will have to tackle a budget balancing bill, which needs to be realistic in terms of both public revenue and public spending, and it must be kept in mind that the public debt is very close to hitting the legally allowed limit, said Bajec. According to Bajec, Serbia should take full advantage of its newly-gained EU candidate status, because this is what foreign investors care about, along with political and macroeconomic stability, which speaks of a country's ability to meet its obligations. Companies such as Italy's Fiat should be one of the models for future industrial growth, because we need to understand it is not good to talk only about small and medium-sized enterprises, family businesses or only about large systems, because these things are interconnected, said Bajec. The new government needs to identify some priority areas in the economy, so that it can quickly boost production, export and employment, he said. Jurij Bajec (Tanjug, file) Tanjug

"New government must maintain Serbia's credibility"

At the time of Europe's public debt crisis, it is very important that Serbia's budget deficit stay within the agreed limits so that the country could keep its relatively good credit rating of BB, Bajec told Tanjug news agency on Monday.

He added that it was encouraging that the IMF prognosis has Serbia's economic growth for this year at 0.5 percent and three percent for next year, while inflation is expected to reach 4.5 percent this year and abate in 2013.

The key forecast, he said, is that the unemployment surge will stop in 2013, after several difficult years.

"These are three things which we now need to make happen, because they will not happen on their own," warned Bajec, noting that the new government would need to prepare by the end of 2012 for the coming years.

The new government will have to tackle a budget balancing bill, which needs to be realistic in terms of both public revenue and public spending, and it must be kept in mind that the public debt is very close to hitting the legally allowed limit, said Bajec.

According to Bajec, Serbia should take full advantage of its newly-gained EU candidate status, because this is what foreign investors care about, along with political and macroeconomic stability, which speaks of a country's ability to meet its obligations.

Companies such as Italy's Fiat should be one of the models for future industrial growth, because we need to understand it is not good to talk only about small and medium-sized enterprises, family businesses or only about large systems, because these things are interconnected, said Bajec.

The new government needs to identify some priority areas in the economy, so that it can quickly boost production, export and employment, he said.

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