Benedict: EC commends Serbian govt on economic steps

ARANDJELOVAC - Deputy Head of the EU Delegation in Belgrade Oscar Benedict stated that the European Commission (EC) commended the government's economic steps in its latest annual report on Serbia's progress on its EU path, but it also noted that more courageous moves need to be implemented.

Serbia has launched the negotiating process positively and two thirds of the screening process have been completed, this should not be neglected, Benedict said during the panel discussion entitled 'Economic perspectives of the region' held at the NIN Focus "Regional Investment Summit" in Arandjelovac with Tanjug as the media sponsor.

Serbia is to tackle a major task, he said.

We commend the Serbian government on its steps such as the labour law, law on construction and fiscal measures, but even more courageous steps need to be implemented, Benedict said.

He pointed to the negative indicators of the Serbian economy and noted that the budget deficit would total 8 percent of the GDP in 2014, which is the highest figure in Europe, and added that the country's public debt is increasing at a fast pace and totals 68 percent, which is alarming.

He noted that the cut in public sector salaries and pensions was necessary in terms of preservation of the public finance, and added that public enterprises need to be restructured and that subsidies need to be reduced, while greater transparency should be introduced in the allocation of state assistance.

This is a very difficult situation for Serbia and it takes time to create the conditions for a better economic environment, he said and noted that the European integration process is important because it offers a clear image to investors concerning the country's course of...