19th annual Kopaonik Business Forum opens

The 19th annual Business Forum, expected to offer possible solutions to the Serbian economy, facing the crisis, opened on Mt. Kopaonik on Tuesday. Opening the meeting, President of the Serbian Association of Economist and former cabinet minister Aleksandar Vlahovic said that the aim is to help creators of the economic policy through a constructive discussion to find the best and most efficient optimal solutions for the Serbian economy. 19th annual Kopaonik Business Forum opens He pointed out that the public expenditure, a lack of public investments, uncompetitive economy, and an inefficient public administration are the key problems of the country's economy. Vlahovic stressed that the EU candidate status Serbia has obtained is a big chance which will provide large inflow of investments, but also a chance to reform our economy and the public sector successfully prior to becoming the full-fledged member of the Union. Serbian Prime Minister Mirko Cvetkovic stated Tuesday that the government has to stick to the saving measures bearing in mind the circumstances in which the Serbian economy operates. “The government has to stick to the saving measures, and projected budget deficit, bearing in mind that its revision cannot be made as we are approaching the elections,” Cvetkovic said at the Kopaonik Business Forum, adding that all suggestions by the forum are welcome in creating the government's economic policy. Cvetkovic underlined that the 2012 economic growth projections have been reduced, setting the new prognosis between zero and 0.5 percent, which will condition a budget revision. President of the Serbian Association of Corporate Directors Toplica Spasojevic said that the past three years were difficult, adding that 2012 will not be any better. Therefore, we have to regulate the economic environment ourselves, modeled on the EU, as well as carry out the complete reform, boost agriculture, infrastructure, and energy, reduce unemployment rate and launch a new investment cycle, Spasojevic said. We also have to encourage entrepreneurship and make it possible for young people who left the country to come back to Serbia, since this is the only way for things to improve here, he noted. The meeting, held from March 6 to 8, is to gather over 500 participants, including Prime Minister Mirko Cvetkovic, economic experts, representatives of economy and banks, ambassadors of Serbia's most important trade partners, and main economists of certain political parties. As announced, an address will be delivered by National Bank of Serbia Governor Dejan Soskic, while Deputy Prime Minister Verica Kalanovic and Minister of Trade and Agriculture Dusan Petrovic have confirmed their attendance. Mirko Cvetkovic (Tanjug) Austerity measures that won't affect budget users Prime Minister Mirko Cvetkovic did not rule out the possibility of introducing new austerity measures, but added they "will not affect salaries, pensions and benefits". Cvetkovic told a press conference at the Kopaonik Business Forum that it is expected that the Serbian dinar (RSD) will stabilize, since, as he put it, the factors that caused the instability and weakening of the national currency have been exhausted. When asked about a meeting between top state officials and NBS governor, the prime minister said that the meeting was not secret, adding that no pressure was put on the governor, nor is it possible to do such a thing, since the central bank is an independent institution. I am not in a position to assign tasks, especially not to independent bodies. I speak as an economist. The exchange rate will be stable in the next period since all the factors that created instability and affected the national currency's weakening have been exhausted, he specified. The prime minister said that the planned budget revenues have been realized since the beginning of the year. He noted that January revenues were at the projected level, but that they were somewhat lower in February, adding that the government will have to adopt new saving measures if the drop is continued in March. The point is that the projected budget level for this year will be maintained regardless of the drop in revenues, he said, and pointed out that the government will work on a further rationalization of expenditures. When asked what legal relation will force the budget users to save in a situation when revenues are decreasing and budget revision is left to the next government, Cvetkovic said that the finance minister could order the spending limit. Commenting on the statement that there is a lack of interest of banks to buy government securities, he said that this is not the case, explaining that the government has tried to replace debt securities with shorter maturities with the long-term ones. He also pointed to the fact that the Forum is being held in a moment when the crisis recurs, and even deepens. This is a double-bottom recession. Now comes the crisis of public debt, Cvetkovic underlined. According to him, this year's Business Forum is special because it is being held in the election year, and added that all participants will be able to offer suggestions and proposals which could be of use to the next executive authorities. Tanjug

19th annual Kopaonik Business Forum opens

He pointed out that the public expenditure, a lack of public investments, uncompetitive economy, and an inefficient public administration are the key problems of the country's economy.

Vlahović stressed that the EU candidate status Serbia has obtained is a big chance which will provide large inflow of investments, but also a chance to reform our economy and the public sector successfully prior to becoming the full-fledged member of the Union.

Serbian Prime Minister Mirko Cvetković stated Tuesday that the government has to stick to the saving measures bearing in mind the circumstances in which the Serbian economy operates.

“The government has to stick to the saving measures, and projected budget deficit, bearing in mind that its revision cannot be made as we are approaching the elections,” Cvetković said at the Kopaonik Business Forum, adding that all suggestions by the forum are welcome in creating the government's economic policy.

Cvetković underlined that the 2012 economic growth projections have been reduced, setting the new prognosis between zero and 0.5 percent, which will condition a budget revision.

President of the Serbian Association of Corporate Directors Toplica Spasojević said that the past three years were difficult, adding that 2012 will not be any better.

Therefore, we have to regulate the economic environment ourselves, modeled on the EU, as well as carry out the complete reform, boost agriculture, infrastructure, and energy, reduce unemployment rate and launch a new investment cycle, Spasojević said.

We also have to encourage entrepreneurship and make it possible for young people who left the country to come back to Serbia, since this is the only way for things to improve here, he noted.

The meeting, held from March 6 to 8, is to gather over 500 participants, including Prime Minister Mirko Cvetković, economic experts, representatives of economy and banks, ambassadors of Serbia's most important trade partners, and main economists of certain political parties.

As announced, an address will be delivered by National Bank of Serbia Governor Dejan Šoškić, while Deputy Prime Minister Verica Kalanović and Minister of Trade and Agriculture Dušan Petrović have confirmed their attendance.

Austerity measures that won't affect budget users

Prime Minister Mirko Cvetković did not rule out the possibility of introducing new austerity measures, but added they "will not affect salaries, pensions and benefits".

Cvetković told a press conference at the Kopaonik Business Forum that it is expected that the Serbian dinar (RSD) will stabilize, since, as he put it, the factors that caused the instability and weakening of the national currency have been exhausted.

When asked about a meeting between top state officials and NBS governor, the prime minister said that the meeting was not secret, adding that no pressure was put on the governor, nor is it possible to do such a thing, since the central bank is an independent institution.

I am not in a position to assign tasks, especially not to independent bodies. I speak as an economist. The exchange rate will be stable in the next period since all the factors that created instability and affected the national currency's weakening have been exhausted, he specified.

The prime minister said that the planned budget revenues have been realized since the beginning of the year.

He noted that January revenues were at the projected level, but that they were somewhat lower in February, adding that the government will have to adopt new saving measures if the drop is continued in March.

The point is that the projected budget level for this year will be maintained regardless of the drop in revenues, he said, and pointed out that the government will work on a further rationalization of expenditures.

When asked what legal relation will force the budget users to save in a situation when revenues are decreasing and budget revision is left to the next government, Cvetković said that the finance minister could order the spending limit.

Commenting on the statement that there is a lack of interest of banks to buy government securities, he said that this is not the case, explaining that the government has tried to replace debt securities with shorter maturities with the long-term ones.

He also pointed to the fact that the Forum is being held in a moment when the crisis recurs, and even deepens.

This is a double-bottom recession. Now comes the crisis of public debt, Cvetković underlined.

According to him, this year's Business Forum is special because it is being held in the election year, and added that all participants will be able to offer suggestions and proposals which could be of use to the next executive authorities.