PM: Contract with Fiat will remain secret

PM: Contract with Fiat will remain secret

In 2008, the Kragujevac-based Zastava and the Italian carmaker signed a strategic cooperation contract, which has been kept secret. The same year, Russia's Gazprom acquired a controlling stake in Serbia's state-owned oil monopoly NIS.

Opposition New Party (NS) leader and MP Zoran Živković asked the prime minister when secret contracts would be presented to the public - "as Vučić had promised in the campaign" - and Vučić replied by saying that neither contract was signed by him, but "by the party on whose list Živković used to be." He was referring to the then ruling Democratic Party (DS).

"As far as Fiat goes, unfortunately it will not be shown. It is a contract on which the state of Serbia has spent the most money and had we by any chance signed it, we would have been accused of worst crimes," Vučić said in parliament.

"We managed to get a good agreement on South Stream, although the start was clumsy. We received much better conditions than Bulgaria and Hungary," he added, in reference to the NIS sale.

Vučić "expressed the hope that a working group that has been formed will solve all the problems related to this contract in a manner befitting friends - Serbia and Russia."

Vučić said that during his recent visit to Moscow he "in the most direct way" represented the interests of Serbia and submitted to Prime Minister Dmitry Medvedev "documentation about exhaustion of Serbian sources of power, oil and gas, in excess of USD 400 million in the first five months of this year."

He then stated that there were "no thieves" in the Serbian government, and that - "once Sheikh Mohammed, whose arrival is expected" approves it - the government "will be proud to publish the contract with the UAE."

The prime minister also announced that a contract with Mercedes on production of their buses in the FAP plant in Serbia "would be signed soon."

Vučić said he was "not ready to accept initiatives which said Serbia should escape from the South Stream project, which can bring Serbia great benefits."

"We're on our way to the European Union, but our commitment is to continue and respect what is good for Serbia," said Vučić.

He pointed out that the South Stream natural gas project was one of the business ventures that should enable economic growth in Serbia during 2015 and 2016.

The Fiscal Council on Thursday proposed to the government to cut pensions by 15 percent. Speaking in parliament, Vučić told pensioners to "sleep calmly," that the government "will continue to take care of them like it did so far," and advised them "not to be afraid of what they read in the media."

There had been criticism earlier in the day regarding the announced appointment of Milan Beko as head of Serbian Railways. The prime minister noted that "it appears that Beko, Mišković and others have begun to pay taxes" and quoted how much some of their companies, "and firms of owners of some big companies" have paid.

As Vučić said, the law is the same for all - for Mišković and Beko, for deputy Isa Kamberi - whom he several times during his address to parliament asked to make sure that ethnic Albanians in southern Serbia start paying electricity bills - as well as for himself and all other citizens of Serbia.

Addressing other issues, the prime minister said that Air Serbia carrier would "for the first time do business in the black" and contribute to the budget with 1.5 percent of GDP. Vučić announced that free textbooks in Albanian would be provided for students by September 1, and told ethnic Albanians they "have to pay for electricity."

Closed door

Aleksandar Vučić also signaled that parliament may hold a closed-door session during which MPs will be informed "about the foreign policy situation that the country is in."

Replying to the question by MP of the opposition Democratic Party (DS) Gordana Čomić as to what extent Serbia is under obligation to align its foreign policy with that of the EU, Vučić said that although Serbia did not receive any ultimatum, the country is not in a simple foreign policy position.

Pointing out that he hopes for peace in eastern Ukraine, Vučić said that although it is the government that shapes the internal and foreign policy, it is good that it consults with the parliament when the state needs to take a firmer position in resolving sensitive political issues.

Explaining the economic interest behind Serbia's intent to maintain the best possible relations with Russia, Vučić said that trade with Russia is growing year by year at a faster pace, and that Serbia cannot bear an increase in the gas price, as it already has difficulty in paying the current price.

“We are pursuing the policy in the interest of Serbian citizens, that is our priority task,” Vučić said.

Also in reply to Gordana Čomić, Serbia's Minister responsible for EU integration Jadranka Joksimović said that Serbia has the obligation to consult with the EU and align its foreign policy to the greatest possible extent, but also has the right to keep the specificities of its international relations, and that is exactly what Serbia is doing.

Tanjug reported that "Čomić made it clear that, when it comes to the issues of importance for the country's EU Integration, the government can count on the parliament's constructive approach."