Serbian govt. now on shaky legs, say analysts

Political analysts see the sacking of Deputy PM and Economy Minister Mladjan Dinkic as an introduction into the collapse of the current Serbian government. At the same time, economists are optimistic that the crisis will not cause "major disturbances" in the market. Serbian govt. now on shaky legs, say analysts Free Market Center Director Miroslav Prokopijevic says this turn of events was not unexpected. "That move (Cvetkovic's decision to sack Dinkic) was in a way forced, because after everything that happened not a lot of people would've taken this government as more than a circus, had this move not been made," said he. Elections bring with it fewer investments, Prokopijevic also noted, at the same time increasing public spending and the inflation. "Economy-wise, the damage is double, but elections had to take place sometime, and now they are simply moving one year early," he said. This analyst does not believe that the ruling Democrats (DS) have secured support for the current government to survive, and said the Liberal-Democrats (LDP) "are not enough, while other parties will not back the government". Political analyst Dejan Vuk Stankovic agrees that Serbia is on the brink of early elections. "It is hard to believe that after this initiative, the partners in the ruling coalition will come to an agreement," he said, and added he expected the opposition in parliament to vote in favor of replacing Dinkic. "The Democrats will have no problem getting a majority to sack Dinkic. What will certainly come as a countermeasure of (Dinkic's) G17 Plus will be to withdraw (other ministers) from the government, which brings up the question of the majority this government has," stated Stankovic. Economist Bosko Mijatovic, however, does not rule out the possibility that Boris Tadic's DS will manage to maintain a parliamentary majority for the ruling coalition. Mijatovic believes that the top of the Democratic Party decided to remove Dinkic, and that they found a "substitute player" for G17 Plus in Serbia's parliament. He believes the substitute might be LDP, "or possibly another opposition party". As for the country's economy, "investors care the most about regularity of business practices and respect of laws, rather than about who heads some ministry", said Mijatovic, who does not expect Dinkic's departure to cause any major upset to the economy or investments. A file photo of a Serbian government session (Beta)

Serbian govt. now on shaky legs, say analysts

Free Market Center Director Miroslav Prokopijević says this turn of events was not unexpected.

"That move (Cvetković's decision to sack Dinkić) was in a way forced, because after everything that happened not a lot of people would've taken this government as more than a circus, had this move not been made," said he.

Elections bring with it fewer investments, Prokopijević also noted, at the same time increasing public spending and the inflation.

"Economy-wise, the damage is double, but elections had to take place sometime, and now they are simply moving one year early," he said.

This analyst does not believe that the ruling Democrats (DS) have secured support for the current government to survive, and said the Liberal-Democrats (LDP) "are not enough, while other parties will not back the government".

Political analyst Dejan Vuk Stanković agrees that Serbia is on the brink of early elections.

"It is hard to believe that after this initiative, the partners in the ruling coalition will come to an agreement," he said, and added he expected the opposition in parliament to vote in favor of replacing Dinkić.

"The Democrats will have no problem getting a majority to sack Dinkić. What will certainly come as a countermeasure of (Dinkić's) G17 Plus will be to withdraw (other ministers) from the government, which brings up the question of the majority this government has," stated Stanković.

Economist Boško Mijatović, however, does not rule out the possibility that Boris Tadić's DS will manage to maintain a parliamentary majority for the ruling coalition.

Mijatović believes that the top of the Democratic Party decided to remove Dinkić, and that they found a "substitute player" for G17 Plus in Serbia's parliament. He believes the substitute might be LDP, "or possibly another opposition party".

As for the country's economy, "investors care the most about regularity of business practices and respect of laws, rather than about who heads some ministry", said Mijatović, who does not expect Dinkić's departure to cause any major upset to the economy or investments.