EU has six recommendations for Serbia's economy

EU has six recommendations for Serbia's economy

Freek Janmaat, the head of the economic department of the EU Delegation to Serbia, announced this at a press conference at the EU Info Centre, adding that he expects the six recommendations to be adopted on Wednesday.

The first recommendation is strengthening fiscal consolidation through boosting revenues and greater austerity to achieve a primary surplus, he said, noting that Serbia is expected to keep reducing its budget deficit in the years to come.

The second recommendation is finding a sustainable solution for companies under restructuring and continuing the reform of public enterprises.

The third recommendation is solving the issue of NPLs and ensuring more comprehensive diagnostic studies of banks by the National Bank of Serbia.

The fourth recommendation deals with the need for better management of capital investment funds - essentially, the funds intended for this purpose should also be spent, rather than accumulated, Janmaat said, adding that progress is needed on the gas connection with Bulgaria and that Corridor 10 must be completed by the end of 2017.

The fifth recommendation addresses the need to improve the business climate and ensure a more transparent environment with fewer parafiscal charges. State-guaranteed loans to SMEs and continued implementation of the regulation guillotine are also recommended, Janmaat said.

The sixth recommendation concerns the labor market - employees of companies under restructuring must be reintegrated into the labour market, the public sector rightsizing must be continued and the capabilities of the national employment service boosted, he said.