Govt's economic measures are in line with EU expectations

BELGRADE - The EU has proposed a series of measures to the Serbian government for the improvement of the economy and finances, which largely coincide with the measures announced by the Serbian government.

The measures were adopted by the EU Economic and Financial Affairs Council (ECOFIN), Serbia's Minister of Finance Lazar Krstic and National Bank of Serbia Governor Jorgovanka Tabakovic on May 6.

Head of the EU integration department of the EU Delegation to Serbia Freek Janmat presented the measures to reporters and said the recommendations by the EU ministers of economy and finance to Serbia could be brought down to several key areas, like fiscal consolidation, better management of public finances, mid-term inflation planning, completion of reconstruction of some government companies, better business environment and better flexibility of the labour market.

These recommendations are part of a new approach to management in the economy, which Brussels exercises towards EU candidate countries, and whose goal is to prepare those countries for EU membership as best as possible, he pointed out.

Janmat explains that the measures are not part of EU legislation and that they are not binding in that sense, but that they are based on the best experiences from the EU countries and can help candidate countries prepare for membership, because none of the Western Balkan countries can be described as a functional market economy at the moment.

When it comes to fiscal consolidation, the EU suggests additional measures that would reduce the budget deficit in 2014, encouraging the Serbian government to reform the public administration and pension system by introducing standardised categories for salaries, taking a strategic...

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