Serbia PM Says Painful Reform Delivering Results

Serbian Prime Minister Aleksandar Vucic said recently imposed austerity measures were controversial but necessary and their positive results would be seen in the years to come.

"You will see what Serbia will look like in five years' time, and you will see what the countries that didn't have this courage... will look like," Vucic told the Serbian public broadcaster RTS in a final end-of-year interview on Monday.

The International Monetary Fund's positive reactions to the Serbian budget for 2015 was one of several good signs, Vucic said, that the economy was becoming more stable, not least in the field of employment.

"According to official statistics, the unemployment rate fell by 6.88 per cent [since December 2013, from 24 to 17 per cent], which means there are 54,581 men less in the employment bureau," Vucic maintained. [Some economists dispute the data.]

Another important thing that the government plans to push in 2015 is encouraging a more entrepreneurial spirit, as this will lead to faster national development.

"We have to encourage diligent people. We have to assure people that the country will help them in various ways, and we have to talk to the banks," Vucic remarked.

The Prime Minister also discussed possible foreign investment, including at the troubled steel company Zelezara Smederevo, saying a tender for the firm was scheduled for early January.

"I personally have had 31 meetings connected to Zelezara. The end is in sight and you will see many results," the Prime Minister said.

Talking of potential investment in the chemical industry, Vucic said he had spoken about this to Russian President Vladimir Putin, declining to give further details at this stage.