Knapp: Serbian economy needs Vucic's measures

BELGRADE - Head of the Delegate Office of German Industry and Commerce for Serbia Martin Knapp said Friday that the austerity measures presented by Serbian Prime Minister Aleksandar Vucic are necessary for the country's economy, adding that state bankruptcy would be much worse than the agressive cuts, however difficult they may be for the citizens.

Knapp said that he is optimistic about Serbia's economic recovery, noting that the current relations between the EU and Russia have put Serbia in the spotlight of Western European investors.

These measures are necessary in any case, but at this point it is impossible to tell how positive their effect will be, Knapp told Tanjug.

The head of the German business delegation to Belgrade stressed that the most important aspect of the measures is their impact on investments - not only foreign, but local as well - in the private sector.

At the same time, Serbia should work on improving the investment climate and do everything it can in this field, he added.

This primarily refers to legal security and bureaucracy reduction, which are the two crucial matters for the promotion of investment activities, said Knapp.

Photo Tanjug Video, camera operator Aleksandar Simic