Amendments to four laws "crucial to economic development"

BELGRADE Representatives of international financial institutions and business associations have welcomed the announced adoption of amendments to four laws. They concern labor, privatization, bankruptcy, and planning and construction, and will "considerably improve the business climate in Serbia." Amendments to four laws "crucial to economic development" Speaking in a panel dubbed “Serbia's economy at a crossroads,” held in Belgrade on Wednesday, Foreign Investors Council (FIC) President Frederic Coin said that the most important thing is that these laws are adequately implemented. He said that the new labor law would have to be more flexible and focused on employment growth, salary calculation should be simplified and retirement benefits should not be paid for all the years of service in all companies. Matteo Patrone, European Bank for Reconstruction and Development (EBRD) country director for Serbia, said that in case that the country’s parliamentary elections take place early, the implementation of the proposed legislation could be delayed, which would have a negative impact on the business environment in the country. He also noted that changes in the regulatory framework are only part of the answer to economic problems, and everyone - the banking sector, international financial institutions, companies themselves and public enterprises, which need to be reformed - should do their part of the job, changing their management and ways of financing themselves and their operation. Head of the Economic Section of the EU Delegation to Serbia Freek Janmaat said that the amendments to four laws are important for Serbia's European integration as they will help meet two important criteria - establish a market economy system and improve competitiveness of the economy. Janmaat pointed out that Serbia, as well as other Western Balkan countries on the road to the EU, still have a long way to go to become a market economy, since the country government still plays a key role in the economy, holding a huge stake in enterprises and giving high subsidies and assistance to those enterprises. The amendments to the laws on privatization and bankruptcy are very important in this regard, while the new laws on labor and on planning and construction should help improve the competitiveness of the Serbian economy, he said. Tony Verheijen, World Bank country manager for Serbia, said that the amendments to the laws on privatization and bankruptcy need to enter into force by the end of December so that the Serbian government could negotiate a budget support loan by January 15. All four of the laws should be in effect before a decision on the loan is made by the World Bank Board, he said, adding that this institution urges for implementing the law on public enterprises more effectively and for making sure retirement benefits will be there for workers who will lose their jobs in the restructuring of enterprises. MK Group President Miodrag Kostic said that for every million of employees in Serbia there are three million people who “do not contribute anything.” Such a model is untenable and therefore the number of employees in the administration should be halved, he said. Kostic warned, however, that it is not possible to abolish subsidies to entrepreneurs overnight. It is realistic for them to be abolished over the next five years, reducing them by 20 to 25 percent next year. Tanjug

Amendments to four laws "crucial to economic development"

Speaking in a panel dubbed “Serbia's economy at a crossroads,” held in Belgrade on Wednesday, Foreign Investors Council (FIC) President Frederic Coin said that the most important thing is that these laws are adequately implemented.

He said that the new labor law would have to be more flexible and focused on employment growth, salary calculation should be simplified and retirement benefits should not be paid for all the years of service in all companies.

Matteo Patrone, European Bank for Reconstruction and Development (EBRD) country director for Serbia, said that in case that the country’s parliamentary elections take place early, the implementation of the proposed legislation could be delayed, which would have a negative impact on the business environment in the country.

He also noted that changes in the regulatory framework are only part of the answer to economic problems, and everyone - the banking sector, international financial institutions, companies themselves and public enterprises, which need to be reformed - should do their part of the job, changing their management and ways of financing themselves and their operation.

Head of the Economic Section of the EU Delegation to Serbia Freek Janmaat said that the amendments to four laws are important for Serbia's European integration as they will help meet two important criteria - establish a market economy system and improve competitiveness of the economy.

Janmaat pointed out that Serbia, as well as other Western Balkan countries on the road to the EU, still have a long way to go to become a market economy, since the country government still plays a key role in the economy, holding a huge stake in enterprises and giving high subsidies and assistance to those enterprises.

The amendments to the laws on privatization and bankruptcy are very important in this regard, while the new laws on labor and on planning and construction should help improve the competitiveness of the Serbian economy, he said.

Tony Verheijen, World Bank country manager for Serbia, said that the amendments to the laws on privatization and bankruptcy need to enter into force by the end of December so that the Serbian government could negotiate a budget support loan by January 15.

All four of the laws should be in effect before a decision on the loan is made by the World Bank Board, he said, adding that this institution urges for implementing the law on public enterprises more effectively and for making sure retirement benefits will be there for workers who will lose their jobs in the restructuring of enterprises.

MK Group President Miodrag Kostić said that for every million of employees in Serbia there are three million people who “do not contribute anything.” Such a model is untenable and therefore the number of employees in the administration should be halved, he said.

Kostić warned, however, that it is not possible to abolish subsidies to entrepreneurs overnight. It is realistic for them to be abolished over the next five years, reducing them by 20 to 25 percent next year.