"Savings in public sector, no salary cuts"

ČAČAK -- Minister of Finance and Economy Mlađan Dinkić says that economic measures have been adjusted at the meeting of the ruling coalition on Tuesday.

They will entail savings in the public sector in order to encourage economy and the private sector, he told reporters in Čačak, central Serbia.

The work of the public sector will be limited by the budget in the next year and a half, but there would be no salary cuts, Dinkić said.

According to him, there is a special Action plan on grounds of which the law on rationalisation of the number of employees in the public sector would be adopted in autumn so that the public sector would be adjusted to the economy's real needs.

Serbia is facing serious structural reforms and assistance would be provided to all those who create conditions for opening of new jobs, the finance minister said.

According to him, amendments should be adopted in the case of two laws, the Law on Planning and Construction which will remove bureaucratic obstacles for issuing construction permits, and the Law on Labour which should be more flexible and employees in public administration should not be protected as much as they are now and they should be treated equally as the employees in the private sector.

Dinkić announced that talks will be organised with trade unions and employers' representatives with a view to achieving a general social consensus on economic measures.

What has been done so far is enough for the time being but Serbia needs faster economic development of two to three percent so that the life of citizens could be better, Dinkić said.