“EU membership – Serbia’s strategic goal”

Serbia's PM Mirko Cvetkovic said Wednesday that EU membership was Serbia's strategic goal and that the government had been working hard on it for years. He added that it would guarantee a better future for all its citizens. “EU membership – Serbia’s strategic goal” Speaking at a business conference entitled Euro Vision, Cvetkovic pointed out that the parliament was nearing the completion of all the legal and other activities necessary to get the status of a candidate for EU membership. “Those are changes in the system, economy and other areas needed to meet EU standards and achieve a functional market economy,” he explained. According to the prime minister, the government is focused on macroeconomic stability and has taken upon itself to improve discipline when it comes to public financing, so the 2011 budget deficit will be 4.5 percent of the GDP, while the public debt will go just above 40 percent. The precautionary arrangement with the International Monetary Fund (IMF) requires the deficit to be reduced to four percent and ultimately down to one percent over the coming years, while the debt should not go over 45 percent. "To achieve that goal, a thorough reform of the public sector is needed, together with improvements in government efficiency and reduction in public expenditure," the PM stated. “Fiscal discipline will allow the National Bank of Serbia (NBS) to ensure the stability of prices and the currency,” Cvetkovic emphasized, adding that the inflation was expected to stay within single digits this year and continue dropping. “The GDP is expected to grow by two percent in 2011 and three percent next year,” he noted. “Serbia's current level of development is not good enough to raise employment and living standard at a higher pace,” he remarked, adding that it would require a growth of five percent which had to be achieved in the coming years. The prime minister stated that a series of changes to the law and system, which had been agreed with the EU and IMF, aimed to establish an environment that stimulates investments. “Even with the economic crisis and its potential new wave, there is significant investment activity in the public and private sectors,” said Cvetkovic. “The recent budget review did not threaten any important investment projects or incentives for new investments, employment and agriculture,” he commented. The Serbian prime minister expects Serbia's economic results, continuation of EU integration and successful cooperation with the IMF to reduce the risk of investing in the country and encourage banks to adapt their interest rates to correspond to the actual capabilities of companies. Mirko Cvetkovic (Tanjug, file)

“EU membership – Serbia’s strategic goal”

Speaking at a business conference entitled Euro Vision, Cvetković pointed out that the parliament was nearing the completion of all the legal and other activities necessary to get the status of a candidate for EU membership.

“Those are changes in the system, economy and other areas needed to meet EU standards and achieve a functional market economy,” he explained.

According to the prime minister, the government is focused on macroeconomic stability and has taken upon itself to improve discipline when it comes to public financing, so the 2011 budget deficit will be 4.5 percent of the GDP, while the public debt will go just above 40 percent.

The precautionary arrangement with the International Monetary Fund (IMF) requires the deficit to be reduced to four percent and ultimately down to one percent over the coming years, while the debt should not go over 45 percent.

"To achieve that goal, a thorough reform of the public sector is needed, together with improvements in government efficiency and reduction in public expenditure," the PM stated.

“Fiscal discipline will allow the National Bank of Serbia (NBS) to ensure the stability of prices and the currency,” Cvetković emphasized, adding that the inflation was expected to stay within single digits this year and continue dropping.

“The GDP is expected to grow by two percent in 2011 and three percent next year,” he noted.

“Serbia's current level of development is not good enough to raise employment and living standard at a higher pace,” he remarked, adding that it would require a growth of five percent which had to be achieved in the coming years.

The prime minister stated that a series of changes to the law and system, which had been agreed with the EU and IMF, aimed to establish an environment that stimulates investments.

“Even with the economic crisis and its potential new wave, there is significant investment activity in the public and private sectors,” said Cvetković.

“The recent budget review did not threaten any important investment projects or incentives for new investments, employment and agriculture,” he commented.

The Serbian prime minister expects Serbia's economic results, continuation of EU integration and successful cooperation with the IMF to reduce the risk of investing in the country and encourage banks to adapt their interest rates to correspond to the actual capabilities of companies.