Landesmann: Serbia should concentrate on foreign debt

KOPAONIK - Scientific Director of the Vienna Institute for International Economic Studies Michael Landesmann noted on Tuesday that the issue Serbia should focus on in the coming period is its vast foreign debt.

He pointed out that the economic crisis of 2008 affected the whole of Europe, including the developed countries, and particularly countries of the South-East Europe whose economies proved to be more vulnerable.

The economies of South-East and Central-East Europe are open to outside influences, but also sensitive to economic shocks, underlined Landesmann, a special guest of the Kopaonik Business Forum, in his lecture titled "The position of Serbia in the South-East European competitiveness map".

Proximity to the European Union and connections with the EU in the form of monetary or economic arrangements will have a positive influence on such economies, he noted.

According to Landesmann, the main challenge lies in the growing foreign debt and the issue of current account balance, which should not be resolved through short-term solutions but rather regarded as part of structural relations.

Job cuts can lead to a reduction in the number of skilled workers, the inflow of foreign direct investment has been reduced, and the debt issues are a burden on South-East European countries, he said.

"Serbia has to focus on addressing the issue of the foreign debt, but the context in which the country exists is also important," said Landesmann, noting that in this sense the currently applied fiscal regime can be a significant factor.

Referring to competitiveness of South-East European countries, Landesmann pointed to the importance of factors such as the role of manufacturing, de/reindustrialization...