Finance Ministry replies to EC on Fiat subsidies
Serbia's Ministry of Finance and Economy has released key parts of its letter sent to the European Commission office in Serbia.
Thursday, 04.04.2013.
20:51
BELGRADE Serbia's Ministry of Finance and Economy has released key parts of its letter sent to the European Commission office in Serbia. The letter rejected the claims that the ministry favored Fiat over other car-makers. Finance Ministry replies to EC on Fiat subsidies The reply sent on April 2 specifies the government measures to subsidize direct investments and create new jobs, stressing that the subsidies Fiat had received were available to all automotive companies investing in Serbia. Also, each investor from Serbia or abroad who builds a factory in Serbia and provides jobs for the country's population can count on appropriate financial incentives, the letter says. Head of the EU Delegation to Serbia Vincent Degert said earlier on Thursday the delegation was reviewing the reply from Finance Minister Mladjan Dinkic concerning the conditions for the sale of Fiat 500L. The Interim Trade Agreement between Serbia and the EU involves opening markets and excludes discrimination and undermining of competition, said Degert, adding that the delegation had notified the government of its reservations concerning Fiat. The ministry says in its letter Fiat Automobili Srbija (FAS), which has invested more than EUR 1.2 billion in Serbia, employed around 2,500 since the start of 2013 and become Serbia's biggest exporter, decided to employ another 1,400 people by the end of 2014. Fiat also decided to invest another EUR 10 million minimum. Based on that, the government decided to to approve EUR 10,000 subsidies to Fiat for every new employee, which is the amount all other automotive companies investing in Serbia can count on, the ministry said. In view of the low purchasing power of the Serbian population, FAS decided to redirect those subsidies to consumers, which is a legitimate decision by the company, the ministry said. (Tanjug, file) Tanjug
Finance Ministry replies to EC on Fiat subsidies
The reply sent on April 2 specifies the government measures to subsidize direct investments and create new jobs, stressing that the subsidies Fiat had received were available to all automotive companies investing in Serbia.Also, each investor from Serbia or abroad who builds a factory in Serbia and provides jobs for the country's population can count on appropriate financial incentives, the letter says.
Head of the EU Delegation to Serbia Vincent Degert said earlier on Thursday the delegation was reviewing the reply from Finance Minister Mlađan Dinkić concerning the conditions for the sale of Fiat 500L.
The Interim Trade Agreement between Serbia and the EU involves opening markets and excludes discrimination and undermining of competition, said Degert, adding that the delegation had notified the government of its reservations concerning Fiat.
The ministry says in its letter Fiat Automobili Srbija (FAS), which has invested more than EUR 1.2 billion in Serbia, employed around 2,500 since the start of 2013 and become Serbia's biggest exporter, decided to employ another 1,400 people by the end of 2014.
Fiat also decided to invest another EUR 10 million minimum. Based on that, the government decided to to approve EUR 10,000 subsidies to Fiat for every new employee, which is the amount all other automotive companies investing in Serbia can count on, the ministry said.
In view of the low purchasing power of the Serbian population, FAS decided to redirect those subsidies to consumers, which is a legitimate decision by the company, the ministry said.
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