"Talks' failure would be dramatic for economy"

A failure to reach an agreement in the Kosovo talks - "a halt to Serbia's EU integration" - would have dramatic consequences on the economy.

Izvor: Tanjug

Thursday, 04.04.2013.

19:27

Default images

BELGRADE A failure to reach an agreement in the Kosovo talks - "a halt to Serbia's EU integration" - would have dramatic consequences on the economy. It would also have similar consequences for the people's living standard, associate of the Institute for Market Research (IZIT) Sasa Djogovic has asserted, Tanjug is reporting. "Talks' failure would be dramatic for economy" Djogovic told a news conference on Thursday Serbia would enter an uncertain political and economic future should there be no agreement in the talks. Such a situation would lower the trust of foreign investors, increase business risks and drop the country's credit rating, which would make new loans more expensive, and the country needs those, he stated, adding that all those things would bring Serbia closer to a full fledged Greek scenario. "There is also the possibility of existing investors in government securities gradually withdrawing, which would lower the influx of foreign currency in the country and weaken the dinar quickly while later leading to an inflation and lower purchasing power among the population," Djogovic noted. In view of the current economic situation in the country, negative consequences of failing to reach an agreement would be certain, but their scale cannot be predicted, he stressed. This situation in the economy was brought about by the irresponsible economic policy of previous years, meaning unorganized privatization, weakening of production and export and dependence on foreign sources of funding because of a failure to reform the public sector, Djogovic underscored. The new government made some progress early on, but many of those positive signals could be lost if Serbia's EU integration grinds to a halt. -- Tanjug

"Talks' failure would be dramatic for economy"

Đogović told a news conference on Thursday Serbia would enter an uncertain political and economic future should there be no agreement in the talks.

Such a situation would lower the trust of foreign investors, increase business risks and drop the country's credit rating, which would make new loans more expensive, and the country needs those, he stated, adding that all those things would bring Serbia closer to a full fledged Greek scenario.

"There is also the possibility of existing investors in government securities gradually withdrawing, which would lower the influx of foreign currency in the country and weaken the dinar quickly while later leading to an inflation and lower purchasing power among the population," Đogović noted.

In view of the current economic situation in the country, negative consequences of failing to reach an agreement would be certain, but their scale cannot be predicted, he stressed.

This situation in the economy was brought about by the irresponsible economic policy of previous years, meaning unorganized privatization, weakening of production and export and dependence on foreign sources of funding because of a failure to reform the public sector, Đogović underscored.

The new government made some progress early on, but many of those positive signals could be lost if Serbia's EU integration grinds to a halt.

--

Komentari 12

Pogledaj komentare

12 Komentari

Možda vas zanima

Ukrajinci saopštili: Obustavljamo 28
Svet

Ukrajinci saopštili: Obustavljamo

Ukrajinske vlasti saopštile su večeras da su obustavile svoje konzularne usluge u inostranstvu za muškarce starosti od 18 do 60 godina, pošto je ukrajinska diplomatija najavila mere za vraćanje u zemlju onih koji mogu da idu na front.

21:57

23.4.2024.

1 d

Podeli: