Leoni factory starts work at full capacity

Principa, Gracanica, KiM, Serbia, 18 November 2015 17:31)
You miss the whole economic system of doing business in Serbia. You don't think that your politicians actually live on the salaries that are on record do you.
These subsidies which are usually from foreign gifts to encourage business is then used to pay extra expenses of doing business in Serbia. The "special" taxes. Then there is the money generated from salaries, I am not talking about state taxes on the salaries that is above board, I am talking about the fees individuals have to pay someone in order to obtain such a job, and occasional fees in order to keep it.

These foreign owned companies generate a lot of money for Serbia, the problem is it does not go into the public coffers.

Are there really 1,500 new jobs since 2013/14 to qualify €10,500,000 subsidy at €7,000 per new job created ? Wonder if the typical co-worker in this factory earns €7,000 a year ? If so then the Serbian government has indirectly paid the annual labour cost for the year. Why is this only a subsidy for large companies when the effort should be on invigorating SME's - the real source of long term real growth of an economy ?

Who does this subsidy really support other than big EU businesses ? They can sell on to their parent companies/subsidiaries (beyond Serbia) the goods they make at lower cost and thus minimise any profit in Serbia and thereby minimise tax on profits in Serbia while the parent company (perhaps in Luxembourg - Juncker) minimise tax on profit within the EU. This is a scam for big business and such ill thought subsidies are all part and parcel of the EU system who advise successive pro-EU governments to formalise corruption.

Glad to see jobs though think €10,500,000 is an absurd subsidy that could have been better utilised for say new school facilities and generated more jobs than 1,500.

"Wonder if the typical co-worker in this factory earns €7,000 a year ? If so then the Serbian government has indirectly paid the annual labour cost for the year. "
(Principa, Gracanica, KiM, Serbia, 18 November 2015 17:31)

7000€/month? With the typical Serbian salary, it's probably less. But your calculation is too simple: It was an investment, so this money was spend, a good amount of it in Serbia for the construction of the facilities. It will generate tax revenues in the long term, and I hope it will last longer than one year.

Are there really 1,500 new jobs since 2013/14 to qualify €10,500,000 subsidy at €7,000 per new job created ? Wonder if the typical co-worker in this factory earns €7,000 a year ? If so then the Serbian government has indirectly paid the annual labour cost for the year. Why is this only a subsidy for large companies when the effort should be on invigorating SME's - the real source of long term real growth of an economy ?

Who does this subsidy really support other than big EU businesses ? They can sell on to their parent companies/subsidiaries (beyond Serbia) the goods they make at lower cost and thus minimise any profit in Serbia and thereby minimise tax on profits in Serbia while the parent company (perhaps in Luxembourg - Juncker) minimise tax on profit within the EU. This is a scam for big business and such ill thought subsidies are all part and parcel of the EU system who advise successive pro-EU governments to formalise corruption.

Glad to see jobs though think €10,500,000 is an absurd subsidy that could have been better utilised for say new school facilities and generated more jobs than 1,500.

"Wonder if the typical co-worker in this factory earns €7,000 a year ? If so then the Serbian government has indirectly paid the annual labour cost for the year. "
(Principa, Gracanica, KiM, Serbia, 18 November 2015 17:31)

7000€/month? With the typical Serbian salary, it's probably less. But your calculation is too simple: It was an investment, so this money was spend, a good amount of it in Serbia for the construction of the facilities. It will generate tax revenues in the long term, and I hope it will last longer than one year.

Principa, Gracanica, KiM, Serbia, 18 November 2015 17:31)
You miss the whole economic system of doing business in Serbia. You don't think that your politicians actually live on the salaries that are on record do you.
These subsidies which are usually from foreign gifts to encourage business is then used to pay extra expenses of doing business in Serbia. The "special" taxes. Then there is the money generated from salaries, I am not talking about state taxes on the salaries that is above board, I am talking about the fees individuals have to pay someone in order to obtain such a job, and occasional fees in order to keep it.

These foreign owned companies generate a lot of money for Serbia, the problem is it does not go into the public coffers.