"Economy to stabilize after Telekom sale"

The Serbian economy will stabilize when the state-owned Telekom Srbija telecommunications company has been sold, some analysts believe. In the meantime the standard of living of Serbians will not improve in 2011, with the Red Cross reporting the number of people using its soup kitchens increasing to some 30,000 from the previous figure of 21,000. "Economy to stabilize after Telekom sale" Furthermore, one million citizens were recorded as being poor, while more than 700,000 are jobless, with that number having increased by 200,000 since the start of the year. Aleksandar Stevanovic of the Center for Free Market believes that the money from the Telekom sale "and to some extent from (the deal with) Fiat can only contribute to a short-term stabilization and a halt to the inflation". "These funds will flow in during the pre-election time. Next year we can expect a further slide in the standard of living. The start of this year does not indicate that the trend from 2010 would change and make a turn for the better," said Stevanovic. The past year was bad for the business community as well. At least 50,000 entrepreneurs and their employees lost their jobs in 2010. The announced two percent rise in pensions and budget-funded salaries is not likely to make a difference as a wave of price increases is expected in the first days of the new year. One of the protests organized by trade unions in 2010 (Beta)

"Economy to stabilize after Telekom sale"

Furthermore, one million citizens were recorded as being poor, while more than 700,000 are jobless, with that number having increased by 200,000 since the start of the year.

Aleksandar Stevanović of the Center for Free Market believes that the money from the Telekom sale "and to some extent from (the deal with) Fiat can only contribute to a short-term stabilization and a halt to the inflation".

"These funds will flow in during the pre-election time. Next year we can expect a further slide in the standard of living. The start of this year does not indicate that the trend from 2010 would change and make a turn for the better," said Stevanović.

The past year was bad for the business community as well. At least 50,000 entrepreneurs and their employees lost their jobs in 2010.

The announced two percent rise in pensions and budget-funded salaries is not likely to make a difference as a wave of price increases is expected in the first days of the new year.