EU supports Vucic's measures

BELGRADE - Head of the European Integration Section of EU's Delegation to Serbia Freek Janmaat said that Brussels supports the set of measures presented by Serbian Prime Minister Aleksandar Vucic, as part of the broad structural reforms which are to follow.

We see this as part of the structural measures, and fiscal consolidation should go hand in hand with the economic reforms aimed at boosting competitiveness and growth, Janmaat told Tanjug.

The set of measures presented by Vucic late on Thursday includes cuts in salaries and pensions exceeding RSD 25,000, strong campaign against the grey economy, layoffs of excess administration employees, subsidy cuts for a number of public companies, and strengthening of the private sector.

Reducing the guarantees on loans and subsidies is in line with the EU's recommendations to Serbia offered at a meeting of the Economic and Financial Affairs Council (ECOFIN) in May this year, said Janmaat.

One of our recommendations was to cut the subsidies and guarantees as their level was too high, he said.

At this point, the focus should be on the 2015 budget and the fiscal strategy for the next three years, noted Janmaat, adding that it is the only way to see if a balanced plan exists.

It is also important to back these efforts over the next three years with the public sector reform and further reforms aimed at creating a better business environment, said Janmaat.

The restructuring of public companies, as well as the pension reform, should be completed as well, he added.

Janmaat pointed out that the adoption of the Law on Labor this summer is a step in the right direction, as the new law will provide more flexibility in the labor market.

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