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Belgrade Media Report 29 July

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STORIES FROM LOCAL PRESS

• Williamson: Not enough evidence on human organ trafficking (RTS/Tanjug/Radio Serbia/Beta)
• Vukcevic: Williamson’s report satisfaction for victims (Beta)
• Vekaric: Williamson’s report step towards justice (Tanjug)
• Djuric: Satisfied when effective verdicts are passed (Tanjug)
• Drecun: Williamson’s report partial, we expected more (Radio Serbia)
• Del Ponte: Pity that no evidence was found (Tanjug)

STORIES FROM REGIONAL PRESS

• Support to idea of introducing three entities in B&H (Novosti)
• OSCE Mission in B&H: Citizens of Brcko District opt for entity citizenship (Oslobodjenje)
• Moore new head of OSCE Mission in B&H (Fena)
• Nimetz: I do not have a new proposal (Voice of the People)

RELEVANT ARTICLES FROM INTERNATIONAL MEDIA SOURCES

• Senior Kosovo figures face prosecution for crimes against humanity (The Guardian)
• Belgrade Urges Kosovo Serb Politician’s ‘Immediate’ Release (BIRN)
• Serbia Should Align Foreign Policy With EU More, Mogherini Says (Bloomberg)
• Serbia Purges Chiefs of Public Companies (BIRN)
• Serbian government presents laws to speed up privatization (Reuters)
• Serbian Parliament passes labour reforms (World Socialist Website)
• Montenegro ‘Interested’ in South Stream Pipeline – EconMin (novinte.com)

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LOCAL PRESS

 

Williamson: Not enough evidence on human organ trafficking (RTS/Tanjug/Radio Serbia/Beta)

The top leadership of the self-proclaimed Kosovo Liberation Army (KLA) “was subjected to the investigation, but there was not enough evidence of the organs of the persons kidnapped in Kosovo and Metohija in 1999 having been forcedly extracted,” it has been confirmed by Clint Williamson, the Chief Prosecutor in the investigation into human organ trafficking. In response to the questions of numerous reporters in the room, Williamson has stressed that the investigation is still ongoing, so the new evidence is possible, but until the new court in charge is established, the public will not know about the contents of the indictment. The Chief Prosecutor has stated that his team “at this moment has not reached the amount of evidence needed for the criminal prosecution on the felony human organ trafficking”. “Right now, I can say there are persuasive indications of the extent of that practice having been very limited extend, and the number of people killed for the purpose of taking their organs was very small,” stated the US prosecutor. He has reminded that the report of Dick Marty mentions “several” cases and not hundreds, as it has been speculated in the media. Williamson explained that he had interviewed hundreds of people and at one point the atmosphere was created to believe that each and every kidnapped Serb was a subject of the trade in human organs, thus additionally disturbing their families. He also said he could not speak of the results of the investigation until the special court is formed to deal with the crimes in Kosovo and Metohija, and that is expected at the beginning of the next year. By then, the investigation will be continued and may come up with new evidence. Williamson has reminded that he took part in the investigation into the crimes against Albanians before 1999, but after the end of the conflict in Kosovo, the KLA leaders organized ethnic cleansing of the Serbs south of the Ibar River, and then the elimination of their political rivals. The information gathered by the special investigation team indicates that certain elements within the KLA had deliberately selected the minority population and forced them out of their homes through persecution that included murders, kidnappings, illegal imprisonment, and sexual violence. The prosecutor confirmed that after the arrival of the international forces to the province some 500 Serbs have been killed and 375 have gone missing, while between 170 and 250 thousand people have been expelled. Williamson did not reveal much by answering the reporters’ questions. He usually repeated that the findings are in accordance with the previous report of Dick Marty, who was investigation the crimes in the so-called “yellow house”, that the decisions will be made by the new court for which it is still unknown where it will be operating, and that one indictment will encompass a number of persons. Williamson also pointed that the people in Kosmet would keep paying the price while a handful of people in power keep obstructing the investigation and intimidating witnesses.

 

Vukcevic: Williamson’s report satisfaction for victims (Beta)

Serbian War Crimes Prosecutor Vladimir Vukcevic has stated that the report of the Chief Prosecutor Clint Williamson on human organ trafficking in Kosovo and Metohija in 1999 is satisfaction for the victims and a great contribution to international justice. “It undoubtedly stems that war crimes were perpetrated, but we will see whether human organ trafficking occurred,” Vukcevic told Beta. He said that Williamson had very clearly stated that indictments were not filed because the international court has not been formed yet. “Nobody, especially those who don’t have insight into this evidence, can say whether there is evidence for this or that,” he said, adding that the epilogue of the “yellow house” will occur with the issuing of indictments and a verdict. According to him, Williamson’s team “put a crown” on the long-time job that was launched by the Serbian War Crimes Prosecution based on the book by the former ICTY chief prosecutor Carla Del Ponte. “That was the trigger for us to start with the investigations. We have been investigating the destiny of 300 to 500 missing persons of non-Albanian nationality, and then we arrived at certain data that human organ trafficking occurred,” he said. Vukcevic said that he expects the Special Court for KLA crimes to be up to the task of Prosecutor Williamson, who, according to Vukcevic, demonstrated impartiality and objectivity during the investigation. “He proved that he wasn’t subject to influences, and I also expect this from the court,” said Vukcevic.

 

Vekaric: Williamson’s report step towards justice (Tanjug)

Deputy Serbian War Crimes Prosecutor Bruno Vekaric has stated that the report of the Chief Prosecutor Clint Williamson on human organ trafficking in Kosovo and Metohija in 1999 is objective and represents a step towards international justice. They key thing is that the war crimes have been proven and facts stated that point to who is responsible for those crimes, Vekaric told Tanjug. He has added that it is significant that the investigation into the human organ trafficking will be continued. Vekaric stressed the importance of the prosecutor having pointed to the vacuum made by the ICTY, i.e. mainly accusing the Serbs of war crimes, and he noted that the forming of the special court for war crimes in Kosovo is of key importance for implementing justice. It is very important that the prosecutor has focused on the war crimes and crimes against humanity, Vekaric emphasized, while reminding that the possibility of issuing indictments for human organ trafficking has not been excluded. Such trade is most difficult to prove. If you find a skeleton, it is very hard to say whether that person had their organs extracted, Vekaric explained.

 

Djuric: Satisfied when effective verdicts are passed (Tanjug)

The Head Office for Kosovo and Metohija Marko Djuric has said that Serbia greets any activity that leads to revealing the war crimes and their perpetrators in Kosovo and Metohija, but the Serb side can only be satisfied once the effective verdicts are passed, to bring before justice all those who had committed crimes in the province. In comment to the report of Prosecutor Clint Williamson regarding the investigation into human organ trafficking, Djuric has pointed that document shows the involvement of the people from the leadership of the so-called KLA in those monstrous crimes. For the sake of healing the society and relations in Kosovo and Metohija and wider region, it is necessary to put those responsible before justice. War crimes do not go obsolete and we will never give up on the fight for truth and responsibility, Djuric concluded.

 

Drecun: Williamson’s report partial, we expected more (Radio Serbia)

The Chairman of the parliament Committee for Kosovo and Metohija has stated that the report of the Chief Prosecutor Clint Williamson on human organ trafficking in Kosovo and Metohija in 1999 is partial, that he obviously isn’t immune to political pressures and compromises, and that this is why the Serbian side received much less than the expected. He noted that it is positive that, as he stressed, the terrorist KLA was specifically suspected of ethnic cleansing and crimes against Kosovo Serbs, but the unsatisfactory fact is that it was acknowledged that there was not enough evidence for crimes of human organ trafficking. It seems that the report is a result of some political compromise over the indisputable responsibility of Kosovo Albanian leader Hashim Thaqi in the chain of human organ trafficking, so the selective approach towards crimes and victims continues, stressed Drecun.

 

Del Ponte: Pity that no evidence was found (Tanjug)

Former chief Hague prosecutor Carla Del Ponte has expressed regret that the team for investigation into human organ trafficking in Kosovo and Metohija in 1999 did not find enough evidence to issue the indictment against the culprits. It is too bad, but I am not surprised, because it is much more difficult to run an adequate investigation after so many years, Del Ponte said in a telephone statement for Tanjug, and explained that the Hague prosecution also was not able to find the evidence because nobody would help. She has expressed hope that sufficient evidence will be found in the future to press charges against the perpetrators. Del Ponte has pointed to the fact that at the press conference in Brussels, Williamson himself also said he believed in human organ trafficking had taken place. The former Hague prosecutor was the first to present claims about organ trasfficking in her book “the Hunt” in 2008.

 

REGIONAL PRESS

 

Support to idea of introducing three entities in B&H (Novosti)

The International Crisis Group (ICG) advocates in its latest report on B&H the support to the idea of introducing three entities, i.e. introducing an entity with a Croat majority, reads the analysis of the Institute for Social-Political Research in Mostar. The ICG report, reads the analysis, has been published under the strong influence of the U.S. administration and it largely deviates from former ICG documents, Novosti reports. The ICG analysts didn’t hesitate in their past reports to deny the factual B&H constitutional framework, i.e. the concept of constituent nations, advocating centralization and unitarization as the political-administrative concept most suitable for B&H. Now they claim that B&H needs a serious constitutional reconstruction so that the new arrangement favor federalist solutions, while centralist are detrimental, reads the analysis of the Mostar Institute. The analysis points out that “another revolutionary change” represents the claim that B&H needs “a new order: normal federation, territorially defined, without the special role of constituent nations, but such so that it suits the interests of its three communities and rights of all citizens”. The ICG report states that there is nothing wrong in regard to the Croat entity that would resolve many problems – there would be no need for cantons anymore and relations between B&H and entities, as well as between entities and municipalities could be consistent throughout B&H. The ICG notes that the main obstacle to the Croat entity is political. “That is very insulting for the Bosniaks. Still, the explanation of their refusal sounds empty,” ICG analysts states, who opine that the fear of the Bosniaks from an eventual referendum on withdrawal of the “Croat entity” from B&H is unfounded taking into account that the much more territorially compact Republika Srpska has not done so in almost 20 years. Objectively, Banja Luka is in the strongest position, reads the report, pointing that Banja Luka has now overcome the dictates of the Office of the High Representative and prevented the takeover of its competencies from B&H.

 

OSCE Mission in B&H: Citizens of Brcko District opt for entity citizenship (Oslobodjenje)

The Head of the OSCE Mission in B&H Fletcher M. Burton called on citizens of Brcko District to opt for entity citizenship before 28 August, so they can be able to participate in the upcoming general elections. Burton reminded citizens of Brcko District they need to choose one of the entity citizenships to be able to exercise their right to elect and be elected in the elections to be held on 12 October this year. “Those who have not chosen yet to change or register their entity citizenship have one month to do it. They can do it in the office of Brcko District and at the 14 registrar’s offices in the District. This is an important issue. If they fail to obtain entity citizenship, local citizens will not be able to fully exercise their democratic right to vote,” Burton says. B&H Election Law stipulates that a B&H citizen who is registered to vote in the Brcko District has the right to vote for members of the B&H Presidency and the House of Representatives of the B&H Parliamentary Assembly by appropriate ballot in the entity where the voter is a citizen, as well as the election for the entity where the voter is a citizen. The conclusion and affirmation of the final Central Voters Register of Central Electoral Commission will be on 28 August at midnight. After this deadline, the address of residence cannot be changed, because voters who do so will be on the electoral list for the constituencies in which they were registered before 28 August.

 

 

Moore new head of OSCE Mission in B&H (Fena)

The Swiss Presidency of the OSCE has appointed U.S. diplomat Jonathan Moore as the new Head of the OSCE Mission in B&H, Fena was confirmed at the OSCE Mission in B&H. The appointment is effective on 1 September 2014.

 

Nimetz: I do not have a new proposal (Voice of the People)

“I do not have a new proposal, but I have things in my head”, said UN envoy in the name dispute Ambassador Matthew Nimetz said upon arrival in Skopje on Monday. He said the official meetings with Macedonia’s top officials would be held on Tuesday. “Nimetz’s visit is aimed at intensifying the UN-mediated negotiations for finding a mutually acceptable solution to the name dispute”, the UN has said in a press release. Nimetz said that he expects large progress at the meetings with top officials in Skopje and Athens. “I will spend two days each in Skopje and Athens with the countries’ leaders, hoping to reach a mutually acceptable solution in the name dispute”, stresses Nimetz.

 

INTERNATIONAL PRESS

 

Senior Kosovo figures face prosecution for crimes against humanity (The Guardian, by Julian Borger, 29 July 2014)
Possible indictment of senior officials of former Kosovo Liberation Army relate to claims of ethnic cleansing since 1999
Leading political figures in Kosovo face indictment by a special EU court for crimes against humanity, including killings, abductions, sexual violence and other abuses of Serb and Roma minorities, according to the chief prosecutor leading a three-year special investigation.
The threat of indictments comes in a progress report published on Tuesday morning in Brussels by Clint Williamson, an American prosecutor appointed by the EU in 2011 to investigate ethnic cleansing committed in Kosovo since the 1999 Nato intervention brought an end to the conflict there.
Williamson does not name the suspects but describes them as “senior officials of the former Kosovo Liberation Army” (KLA), which fought an insurgency against the Serbian regime of Slobodan Milosevic. Many former KLA commanders went on to leadership positions after Kosovo declared independence in 2008. It is believed at least some of the indictments prepared by the EU special investigative task force (SITF) are against top figures still actively involved in politics.
Williamson’s investigation confirmed earlier allegations that in a “handful” of cases, organs taken from executed prisoners were trafficked for profit, but 15 years after the crimes, the SITF has not been able to gather enough concrete evidence to mount a viable prosecution.
The indictments for wholesale human rights violations are likely to have a far-ranging impact on Kosovo’s future and will be embarrassing for the US and western European governments, which provided enthusiastic backing for the KLA leadership during and after the war.
The indictments cannot be issued until a special court to try the cases is established, almost certainly in the Netherlands. But its creation has been held up by bureaucratic delays over funding in the European commission and political turmoil in Kosovo. Williamson said he hoped the court would be set up by early next year, but the cases will be tried by a new chief prosecutor. He will step down after a three-year term next month.
Williamson said he was leaving for personal reasons, to rejoin his family in the US, rather than professional factors.
“There have been press reports that I was leaving because the investigation is collapsing. That is completely untrue. I think we have had a very solid investigation with very good results,” he told the Guardian.
In his report, Williamson said the investigation had been rendered far more difficult by pervasive intimidation of witnesses, describing it as “a dark cloud over the country”.
“We have taken steps to counter the impact of the witness intimidation and we will continue to do so. We will actively investigate these activities and will prosecute any individuals found to have been involved,” Williamson says in his report.
“There is probably no single thing that poses more of a threat to rule of law in Kosovo and of its progress toward a European future than this pervasive practice.”
Ten thousand people died in the 1998-99 Kosovo conflict, many of them Kosovan civilians killed in a brutal Serbian counterinsurgency. War crimes committed by both Serbian forces and the KLA have been tried in the international criminal court for the former Yugoslavia (ICTY), but that did not examine abuses since 1999.
The EU investigation covered abuse of Kosovo Serbs and other minorities at the hands of the victorious KLA commanders.
The crimes include “unlawful killings, abductions, enforced disappearances, illegal detentions in camps in Kosovo and Albania, sexual violence, other forms of inhumane treatment, forced displacements of individuals from their homes and communities, and desecration and destruction of churches and other religious sites”.
“This effectively resulted in the ethnic cleansing of large portions of the Serb and Roma populations from those areas in Kosovo south of the Ibar river, with the exception of a few scattered minority enclaves,” the SITF report says.
“We believe that the evidence is compelling that these crimes were not the acts of rogue individuals acting on their own accord, but rather that they were conducted in an organised fashion and were sanctioned by certain individuals in the top levels of the KLA leadership. The widespread or systematic nature of these crimes in the period after the war ended in June 1999 justifies a prosecution for crimes against humanity.”
The SITF investigation largely confirms the findings of an earlier Council of Europe enquiry led by a Swiss politician, Dick Marty, in 2010.
It upholds the Marty report’s finding that a “handful” of prisoners had been murdered so that organs could be taken and sold. But Williamson said that “to prosecute such offences … it requires a level of evidence that we have not yet secured.”
“Fifteen years down the line, we have solid information that these things happened, but no physical evidence. There are no bodies, no names of victims,” Williamson told the Guardian.
“The likely reaction of a defence counsel in a murder case would be: there’s not enough information to know what I am defending against, and a judge would probably agree. That said, it’s certainly not beyond the realm of possibility that additional evidence will emerge in the next few months, and we will continue pursuing it.”
The creation of a special European court would require a change in the Kosovo constitution and therefore a two-thirds majority in parliament. In theory, the suspects themselves could use their political power to obstruct it, but Williamson said that there would face substantial opposition inside Kosovo and beyond.
“I think it would be difficult for them politically if they attempted to block this. If the EU approach doesn’t work, the most likely alternative is something set up through the UN security council and most Kosovars oppose that,” Williamson said.
“So, it would be a hard sell to say that they were acting for the interests of Kosovo as opposed to just trying to save their own skins. There is a lot of pressure out there to make this work though and people across the political spectrum have been publicly supportive of it, so I am optimistic it will stay on track.”
Belgrade Urges Kosovo Serb Politician’s ‘Immediate’ Release (BIRN, Marija Ristic. 28 July 2014)
The Serbian government said that local politician Oliver Ivanovic, who has been in custody since January on suspicion of involvement in war crimes and murders in Kosovo, should be bailed.
“The Office for Kosovo and Metohija is deeply worried that six months has passed since the arrest of the leader of the SDP [Freedom, Democracy and Justice party], Oliver Ivanovic, while an indictment has still not been issued, nor he was allowed release on bail,” the Serbian government office responsible for Kosovo issues said in a statement on Sunday.
It said it was “disappointed” that the Serbian government’s guarantees that Ivanovic would appear for any trial if he was granted bail had been “ignored”.
“Bearing in mind that the prosecutor didn’t manage to collect evidence against Ivanovic, we are requesting an end to this process and Ivanovic’s immediate release,” the statement said.
Ivanovic was arrested in January on suspicion of involvement in war crimes against ethnic Albanians, and in murders committed after the 1990s conflict.
He was detained on suspicion of involvement in war crimes and in violence in 2000 in which ten Kosovo Albanians were killed and many more wounded and driven from their homes.
Ivanovic at the time was a leading “Bridge Watcher”, one of the hardline Serbs who patrolled the main bridge in the town of Mitrovica dividing it into Serbian and Albanian sectors.
His custody was extended again until August 26, with the prosecution arguing that “the risk of flight and the risk that the defendant might influence witnesses if released continues to exist”.
Serbia Should Align Foreign Policy With EU More, Mogherini Says (Bloomberg, by Gordana Filipovic, 28 July 2014)
Serbia should align its foreign policies closer to the European Union and accelerate talks with its former Kosovo province as it tries to join the 28-member bloc, Italian Foreign Minister Federica Mogherini said.
More moves to merge strategies are expected “in the coming weeks, or months,” Mogherini told reporters in Belgrade after meeting Serbian Foreign Minister Ivica Dacic. Policy alignment stood at 72 percent to 73 percent after Premier Aleksandar Vucic took office, compared with more than 90 percent last year, said Dacic, who is Vucic’s predecessor.
“The implementation of domestic reforms, continuation of a dialog with Kosovo and a special role that Serbia can play in stabilizing this region are very important for Europe, for the region and for Italy, which is Serbia’s biggest trading partner,” Mogherini said.
Serbia’s success in completing accession talks, begun in January, depends on mending ties with Kosovo, a former province that declared independence in 2008 and bringing the judiciary and media in line with EU norms. Vucic wants to make Serbia the third ex-Yugoslav republic to enter the EU after Slovenia and Croatia, with the goal of finishing 35 negotiating areas, or chapters, by 2018 and joining by 2020.
Mogherini said she expected more effort from a government with such a strong political mandate, referring to a landslide victory by Vucic’s Progressive Party in March 16 elections.
Serbian political leaders have repeatedly said joining the EU is their top foreign-policy goal, while maintaining good ties with Russia, Serbia’s key political ally in its effort to prevent full international recognition of Kosovo.
The government won’t join the EU in sanctioning Russia because of the Ukrainian conflict and has no intention of giving up a plan to build a stretch of South Stream pipeline, which is designed to ship Russian natural gas via the Black Sea and the Balkans to the EU.
Serbia Purges Chiefs of Public Companies (BIRN, 29 July 2014)
The Prime Minister announced that seven heads of state-owned enterprises were being fired, adding that the heads of many more managers would roll in August.
Serbia’s Prime Minister, Aleksandar Vucic, on Monday axed seven general managers of public companies, accusing them of achieving poor results.
The outgoing bosses are: Dragoljub Simonovic, of the railway company Zeleznice Srbije; Velimir Radosavljevic, head of Nikola Tesla Airport; Milan Zivanovic, from the Civil Aviation Directorate; Marko Culibrk, of Dunav Osiguranje insurance company; Branimir Bozovic, of Drzavna Lutrija Srbije, the state lottery; Kostadin Popovic, of DIPOS (Diplomatic Housing Company); and Stojadin Jovanovic, of the traffic safety agency.
“This is only the beginning,” Vucic said, adding that about 70 per cent of the managers of state owned companies would be laid off over August.
According to the Serbian National Bank, there are 716 public enterprises in the country.
“New top people will be selected through public vacancy procedures,” Vucic added.
Acting heads are due to be appointed on Thursday. They will run the seven companies until new chiefs ones are elected, the Prime Minister added.
Nemanja Nenadic, programme director of Transparency Serbia, said the government should ultimately promote experts to run these companies.
He also said the appointments should not be under the control of the ruling party.
“Our experience in this field so far has been poor, because few people answered the calls [to apply] because they knew in advance who would be [appointed] where,” Nenadic said.
Serbia required systematic checks on the work of directors, he said.
Serbian government presents laws to speed up privatization (Reuters, 27 July 2014)
BELGRADE – Serbia’s government adopted a new privatisation bill and proposed changes to bankruptcy law on Sunday to speed up the sale of loss-making state-owned companies.
The laws, which have yet to be passed by parliament, are a pre-condition for the release of a $250 million World Bank budget support loan.
Serbia’s 2014 budget is forecast at seven percent of national output, but analysts warn it will exceed this target because state-owned companies including the country’s sole steel plant and railway company will eat up 600 million euros (474.60 million pounds)of taxpayers’ money.
The new privatisation law will allow sale of assets in bilateral deals and the write-off of companies’ debt to state-owned entities to make companies more attractive to potential buyers.
Some critics say that the law will open the door to less transparent deals, but government officials argue it will speed up the sale of more than 600 troubled companies.
The law on bankruptcy will make bankruptcy procedures more efficient and improve the business environment, the government said in a statement on Sunday.
Serbian Parliament passes labour reforms (World Socialist Website, by Paul Mitchell, 28 July 2014)
Last year, the International Monetary Fund (IMF) made clear that if Serbia wanted a new, desperately needed financial agreement it had to undertake “ambitious fiscal consolidation” and impose “wide-ranging structural reforms.” Four long-delayed laws relating to labour, bankruptcy, privatisation and planning demanded by the World Bank had to be passed.
The IMF insisted the reforms were needed to deal with Serbia’s disastrous economic situation. The country is facing a third recession in five years. Official unemployment has risen to nearly 25 percent and is above 50 percent for youth while the average monthly wage remains extremely low at about €380 (US$515).
The country’s economic output (GDP) fell 1.7 percent in 2012 and is projected to grow only minimally in the next several years. The budget deficit at 8.7 percent of GDP is the highest in Europe and public debt is set to rise above 70 percent of GDP by 2015—well above the 40 percent legal cap. Interest rates are at 8.5 percent, while inflation is at a record low of 1.3 percent.
A new Progressive Party (SNS) government was installed in April after receiving a landslide victory. Prime Minister Aleksandar Vucic declared, “I expect we will pass key laws, including the labour law, the bankruptcy law, the privatisation law and the law on building permits by the end of June or mid-July.”
Talks began with the IMF on a three-year precautionary loan agreement to be finalised by the end of the year.
On July 18, the Serbian Parliament approved a new labour law, making it easier for employers to sack staff by reducing payments for statutory redundancy, sick leave and holidays and altering the duration of fixed-term contracts. Salaries and working hours will no longer have to be stipulated in employment contracts. There are also changes to the way collective agreements are operated. The pension law was also changed to increase the retirement age for women from 60 to 65.
Parliament is set to debate the privatisation and bankruptcy laws by the end of the month. The government plans to close down or privatise more than 550 state-owned companies by the end of 2016.
Following the vote in parliament, Vucic declared that “despite all the pressure and protests… Serbia has finally and actually started the process of economic reform” after being delayed for what seemed like “centuries”.
However, the reforms were not radical enough for Finance Minister Lazar Krstic who promptly resigned. Krstic, 29, a Yale University graduate and former McKinsey manager had wanted a minimum 20 percent cut in pensions, a 15 percent cut in public wages, 160,000 layoffs in the public sector over two years and a 30 percent increase in electricity prices.
Krstic’s replacement, Dusan Vujovic, a former World Bank economist who managed a $4 billion programme in Ukraine, said that while his predecessor’s approach would have had financial benefits they “may not always be politically and socially feasible.”
“I would like to broaden the policy consultation and coordination framework, and bring together key stakeholders representing different groups that will have to absorb the burden of reforms in the coming two to three years, or face bleak prospects in many years to come,” he said, before adding that he will still keep Krstic as an adviser.
The key stakeholders Vujovic referred to are the unions, who have called for “partnership and tripartite social dialogue” as “a prerequisite for democratisation of society, for integration of Serbia into European processes and for the least painful survival of the transition process” to a full market economy.
On the day the labour reforms were being debated, the unions held a protest outside parliament under the slogan “Against Vucic’s Reforms with All Our Might.”
The heavily-orchestrated protest only underscored the lack of support for the unions and their hangers-on. The United Branch Trade Unions (UGS) executive secretary, Zlata Zec, had predicted a turnout of “more than 10,000” but all the reports put the participation at around 4,000.
At the protest, Alliance of Independent Unions of Serbia (SSSS) President Ljubisav Orbovic insisted the unions “are for reforms,” but cynically added that these should not come at the expense of the employees. The union bureaucrats are now channelling the widespread dissatisfaction into a petition to force a referendum on certain clauses in the reforms, particularly those relating to changes to collective agreements, which will sideline the unions and threaten their own privileges. Under the new law collective agreements will only apply to firms run by members of the Union of Employers, which covers only about 5 percent of the total number of employers.
The protest had the full support of the Serbian and regional pseudo-left groups, which concentrated their fire on the “neo-liberal agenda” of the government. The state capitalist Marks 21, which split from the International Socialist Tendency last year, admitted on its web site that for the unions “the strike is a negotiating tactic, with the goal of returning to the negotiating table,” but then make the absurd contradiction they are leading a “tepid but determined [!] fight.”
Marks21 claim it is impossible to build a movement independent of the trade unions because they are “massive organizations of the working class, the only ones in Serbia with the weight and membership capable of putting up coordinated struggle throughout the country.”
Elsewhere, Marks21 member Pavle Ilic covers for the bureaucracy, writing, “it would be short-sighted, and slightly conspiracy-theorist to state that the trade union leadership is frightened of releasing the spirit of mass mobilisation.” Ilic argues, “The fact of the matter is that they lack the know-how, the political will, and the structural flexibility of conducting a reasonable and effective political action that would include a large number of trade union members.”
Therefore, Ilic concludes, the first action of the Left Summit, a recently created “broad front” involving Marks21 and other pseudo-left groups, some smaller trade unions and various “citizen initiatives,” must be to use its “organisational skills and mobilisation capabilities” to reinvigorate the “rank and file.” Their pressure, Ilic asserts, will mean “the opportunities for the labour aristocracy to betray working class interests” will be “lesser and more limited.”
Montenegro ‘Interested’ in South Stream Pipeline – EconMin (novinte.com, 28 July 2014)
Montenegro’s Economy Minister Vladimir Kavaric announced that his country desired to be included in the South Stream gas pipeline project.
“South Stream is part of the diversification opportunities for our energy sources and also an opportunity to increase competitiveness of our economy. We have not yet received an official invitation, but there were negotiations with representatives of [Russian energy concern] Gazprom on that issue,” Kavaric was quoted by Montenegro’s leading daily Vjesti as saying.
The minister explained that Gazprom representatives had held talks with Gazprom authorities over Montenegro’s gas demand.
Kavaric’s statements follow comments from Hungarian Prime Minister Viktor Orban, who said on Sunday Budapest was still willing to “cooperate” with Gazprom on the project, despite the EU’s stance on the need to reduce European gas dependence on Russia.
They also come a week after Serbia, which is one of the countries to host the pipeline, was advised by the European Commission to freeze the project until discrepancies with Russia on pipeline were smoothed out.
Serbian Prime Minister Alexander Vucic, for his part, insisted that South Stream was “a good deal” for his country, as its construction would inject some EUR 350 M into local companies, regardless of whether the pipes would become operational or not.
In June Bulgaria, the country where South Stream enters the EU, halted activities on the pipeline after the EU Commission insisted it do so.
Brussels argues issues of competition and flawed public procurement, but also violation of the EU’s Third Energy Package prescribing liberalization of energy production and supplies, are underpinning the construction.

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