SRS resolution re-opens coalition rift

[“Tadic] explained that the resolution went against the interests of Serbian citizens as without further European integration, the economy and state finances would collapse, as no-one would invest in the country any longer or create new jobs.”

Tadic is 100% wrong. Neither the Serbian economy nor the government’s finances depend on the EU. If Serbia chose not to enter the EU it could maintain economic relations with it just as the rest of the world does. Trade would not stop.

As for foreign investment, Serbia would do better by remaining outside the EU. There are now plenty of poor East European states in the EU all vying for the same foreign investors. Why would they choose Serbia over Romania or Bulgaria?

Serbia can attract investors who want to trade with Russia without being in Russia. Ford, for example, could build cars in Kragujevac and export them Duty Free to Russia with having to kiss the hand of President Dmitry Medvedev or his able assistant, Prime Minister Putin.

Japan, China and other Tiger Economies, would also invest in a country which is physically in the centre of the EU but politically independent of it.

What most of B92s readers in Serbia do not understand is that the EU brings many burdens on companies. Under EU rules workers have many rights and are “protected” by many EU Directives covering everything from health and safety to the environment to childcare. All this adds to the cost of doing business in the EU. Serbia does not have these EU regulations. This means that foreign companies can operate in Serbia at less cost than in all neighbouring countries. This will attract investors and give Serbians well-paid jobs.

As President of Serbia Tadic should be telling the world how strong Serbia is and how it will develop regards of what foreigners think or do. The President should sing the praises of his country and not talk of it as some miserable backwater that can survive only with the help of foreigners.

Bganon (message 3), Serbia needs to promote itself to the Tiger economies. Most have heard of Serbia but know little about her. If Serbia abandoned its plans to join the EU and focused instead on building relationships with the rest of the world, then investment would come.

Serbia’s economic revival does not however depend on foreign investment and it certainly does not depend on EU membership.

Serbia will do well because it is located in the heart of Europe and its people are intelligent.

I have no doubt that most Serbians would like the employment protection, childcare provision and the myriad of other entitlements the EU (and the US) bestow on their workers. The problem is paying for all of this. US motor manufactures have shut down dozens of US factories every one of which would dwarf the Zastava factory in Kragujevac. The fact is that the “benefits” US motor workers receive in addition to their salary has made motor manufacturing uneconomic in the US.

If Ford and General Motors opened factories in Serbia and paid their workers 1,000 euros a month with no other “benefits,” then I am sure few in Serbia would complain. Serbians need good jobs and good pay (good by Serbian standards). They don’t need “benefits” and “workers’ rights” bestowed on them by bureaucrats in Brussels. These “benefits” always come with strings attached and cost far more than they are really worth.

'Japan, China and other Tiger Economies, would also invest in a country which is physically in the centre of the EU but politically independent of it'

So where is this investment?

'Under EU rules workers have many rights and are “protected” by many EU Directives covering everything from health and safety to the environment to childcare'

Got news for you Micheal you may think that Serbia is full of right wingers who rail against this type of thing, but the right in Serbia actually want what you are rejecting. We want workers to have rights - that is the sentiment of above all supporters of the radical party and SPS, we want better childcare for families. We need a cleaner environment.

You may support some combination of free market capitalism but most Serbians do not.

If you want to be negative about the EU in the Serbian context far better to go on about Kosovo - because the EU, in the areas you are suggesting, will actually help Serbia.

Michael - your post shows little knowledge of free trade or the economic sentiments in Serbia.

1. Serbian political parties in no way support the liberal economic idea you are suggesting. It would make Serbia a lot more competitive, but it just would not win popular support in any way. This is a country that spent years in a (mild) communist system, nd actually harks back to the (illusion of) protection and security it offered. Bgannon is right - Serbs want the EU worker protections - and protections when implemented in the correct way (protecting individuals and providing retraining rather than protecting jobs) they can be good.
Also there is some economic freedom within the EU rules. Why else would Finland, Sweden and Denmark be classed as three of the world's five most competitive economies.

2. Why would the tiger economies invest in Serbia when they can invest in an EU country. In the EU they can have simiar costs (in the East) and have free access to a 500 million person market. In Serbia they have access to 10 million. Without free access to the EU market, Serbia will not look attractive, and the EU will not open the market without membership.

We have a power struggle here between the reformators and radicals, EU or Russia?

To Bruce.
Nice comment!!

Just a tiny correction to the sentence: "In Serbia they have access to 10 million".
The number is actually 8 million.

"10 million"

Well it depends on whether you view kosovo as independent or not.
And the comments I made apply equally well to Kosovo - it will have to make major [far more than Serbia] economic changes (which will probably be very unpopular) if it has any chance of EU membership in the next 20 years.

We have a power struggle here between the reformators and radicals, EU or Russia?

[“Tadic] explained that the resolution went against the interests of Serbian citizens as without further European integration, the economy and state finances would collapse, as no-one would invest in the country any longer or create new jobs.”

Tadic is 100% wrong. Neither the Serbian economy nor the government’s finances depend on the EU. If Serbia chose not to enter the EU it could maintain economic relations with it just as the rest of the world does. Trade would not stop.

As for foreign investment, Serbia would do better by remaining outside the EU. There are now plenty of poor East European states in the EU all vying for the same foreign investors. Why would they choose Serbia over Romania or Bulgaria?

Serbia can attract investors who want to trade with Russia without being in Russia. Ford, for example, could build cars in Kragujevac and export them Duty Free to Russia with having to kiss the hand of President Dmitry Medvedev or his able assistant, Prime Minister Putin.

Japan, China and other Tiger Economies, would also invest in a country which is physically in the centre of the EU but politically independent of it.

What most of B92s readers in Serbia do not understand is that the EU brings many burdens on companies. Under EU rules workers have many rights and are “protected” by many EU Directives covering everything from health and safety to the environment to childcare. All this adds to the cost of doing business in the EU. Serbia does not have these EU regulations. This means that foreign companies can operate in Serbia at less cost than in all neighbouring countries. This will attract investors and give Serbians well-paid jobs.

As President of Serbia Tadic should be telling the world how strong Serbia is and how it will develop regards of what foreigners think or do. The President should sing the praises of his country and not talk of it as some miserable backwater that can survive only with the help of foreigners.

'Japan, China and other Tiger Economies, would also invest in a country which is physically in the centre of the EU but politically independent of it'

So where is this investment?

'Under EU rules workers have many rights and are “protected” by many EU Directives covering everything from health and safety to the environment to childcare'

Got news for you Micheal you may think that Serbia is full of right wingers who rail against this type of thing, but the right in Serbia actually want what you are rejecting. We want workers to have rights - that is the sentiment of above all supporters of the radical party and SPS, we want better childcare for families. We need a cleaner environment.

You may support some combination of free market capitalism but most Serbians do not.

If you want to be negative about the EU in the Serbian context far better to go on about Kosovo - because the EU, in the areas you are suggesting, will actually help Serbia.

Bganon (message 3), Serbia needs to promote itself to the Tiger economies. Most have heard of Serbia but know little about her. If Serbia abandoned its plans to join the EU and focused instead on building relationships with the rest of the world, then investment would come.

Serbia’s economic revival does not however depend on foreign investment and it certainly does not depend on EU membership.

Serbia will do well because it is located in the heart of Europe and its people are intelligent.

I have no doubt that most Serbians would like the employment protection, childcare provision and the myriad of other entitlements the EU (and the US) bestow on their workers. The problem is paying for all of this. US motor manufactures have shut down dozens of US factories every one of which would dwarf the Zastava factory in Kragujevac. The fact is that the “benefits” US motor workers receive in addition to their salary has made motor manufacturing uneconomic in the US.

If Ford and General Motors opened factories in Serbia and paid their workers 1,000 euros a month with no other “benefits,” then I am sure few in Serbia would complain. Serbians need good jobs and good pay (good by Serbian standards). They don’t need “benefits” and “workers’ rights” bestowed on them by bureaucrats in Brussels. These “benefits” always come with strings attached and cost far more than they are really worth.

Michael - your post shows little knowledge of free trade or the economic sentiments in Serbia.

1. Serbian political parties in no way support the liberal economic idea you are suggesting. It would make Serbia a lot more competitive, but it just would not win popular support in any way. This is a country that spent years in a (mild) communist system, nd actually harks back to the (illusion of) protection and security it offered. Bgannon is right - Serbs want the EU worker protections - and protections when implemented in the correct way (protecting individuals and providing retraining rather than protecting jobs) they can be good.
Also there is some economic freedom within the EU rules. Why else would Finland, Sweden and Denmark be classed as three of the world's five most competitive economies.

2. Why would the tiger economies invest in Serbia when they can invest in an EU country. In the EU they can have simiar costs (in the East) and have free access to a 500 million person market. In Serbia they have access to 10 million. Without free access to the EU market, Serbia will not look attractive, and the EU will not open the market without membership.

To Bruce.
Nice comment!!

Just a tiny correction to the sentence: "In Serbia they have access to 10 million".
The number is actually 8 million.

"10 million"

Well it depends on whether you view kosovo as independent or not.
And the comments I made apply equally well to Kosovo - it will have to make major [far more than Serbia] economic changes (which will probably be very unpopular) if it has any chance of EU membership in the next 20 years.