LOCAL PRESS

Joksimovic: Chapter 35 certainly among the first (RTS/Tanjug)

Serbian Minister without Portfolio in charge of EU integration Jadranka Joksimovic has stated that Chapter 35 will certainly have to be among the first to be opened, but this doesn’t necessarily mean that it also needs to be the first chapter that will open the negotiations on Serbia’s EU membership. She says that progress in the implementation of the Brussels agreement, which we expect to advance following the resumption of the political dialogue that has been announced for the beginning of February, will provide a new framework and dimension and that we will be able to count on the opening of chapters in the EU negotiations. She told the Serbian parliamentary Committee for EU integrations that not even the EU Commission has been sure how Chapter 35 will be negotiated, which additionally complicated for us the already difficult and sensitive matter, but that she expected these matters to be resolved with the resumption of the Belgrade-Pristina political dialogue.

Pressure increasing on Belgrade to remove Peace Park (Novosti)

Pristina, with Brussels’ support, will increase pressure on Belgrade and Serbs in northern Kosovo ad Metohija to remove the Peace Park from the bridge on the Ibar River. The new prime minister of the government in Pristina Isa Mustafa will try to impose this as one of the main topics in the continuation of the political dialogue with Belgrade when he meets with Serbian Prime Minister Aleksandar Vucic in Brussels on 8 and 9 February. Brussels, too, has set reaching a solution regarding the bridge as one of the conditions for opening the first negotiating chapters with Serbia. Novosti has learned that Belgrade, on the other side, will insist that this is primarily a security issue for the Serbs in the north, and that nothing should be touched on the bridge and around it until the mayors of the northern and southern parts, Goran Rakic and Agim Bahtri, do not agree on this. The Head of the Office for Kosovo and Metohija Marko Djuric reiterated for Novosti that the two sides had already agreed in Brussels to first conduct a technical assessment of the condition on the bridge on the Ibar, and for the mayors to agree on a solution that would satisfy the interests and opinions of the residents of both parts of the town: “Nothing will be touched until such a solution is found,” stresses Djuric. The Mayor of northern Kosovska Mitrovica Goran Rakic tells Novosti that any kind of unilateral action regarding the removal of the Peace Park would cause new tensions and hopes this is not in anyone’s interest: “The name Peace Park shows what it represents. As the mayor of the northern part of Mitrovica I am not giving up reconciliation, and I am sure that all our residents advocate this. I don’t wish to think in a different direction, except that the Peace Park will continue to be what it should represent, a symbol of reconciliation in this region.” Rakic refuted the allegations that the Peace Park limits freedom of movement of the residents between the northern and southern parts of the town, especially since there are four more bridges that connect these two parts of Mitrovica.

Could Serbia have done more for Chapter 35 (Politika)

Unlike last year’s December EU Summit when Serbia received a green light for official opening of negotiations in January this year, Serbia remained short sleeved several days ago – along with the assessment on progress, it was told there is more work. In spite of frequent voices of Serbian officials, until this summer, that Serbia is completely prepared for the beginning of negotiations on Chapter 32, which refers to financial control, that proposal has remained quite on the side and Chapter 35, which refers to normalization of relations with Pristina, and Chapters 23 and 24, which refer to the judiciary and basic rights, popped up in the forefront. Namely, they should be opened among the first and progress in these areas should be linked to progress in other chapters. Only one day after Jadranka Joksimovic, the Serbian Minister without Portfolio in charge of EU integration, presented the dilemma on whether Belgrade will have to realize literally all obligations from the Brussels agreement before Chapter 35 is opened, the German Ambassador in Belgrade Heinz Wilhelm reiterated, along with a reminder that Germany is occasionally exposed to criticism that it is blocking the opening of chapters, the already well-known stand of Berlin that Chapter 35 on Kosovo should be opened first. Here, we are already in a vicious circle. On the one side are the conditions, on which Germany is insisting, on the second side the fact that Belgrade, ever since the May elections in Kosovo, has been without an interlocutor in Pristina, on the third side are the assurances (presented by the EU Commissioner Johannes Hahn) that Belgrade didn’t need the Pristina side for everything in order to fulfill the Brussels agreement, and on fourth side is Joksimovic’s assertion that one should clarify the details in regard to the implementation of the Brussels agreement. According to her, full implementation of this agreement cannot be a condition for opening Chapter 35, since “nobody clearly explained to Belgrade the model of how this chapter will be opened”, and that the continuation of the dialogue will be an opportunity to remove some of the ambiguities. In regard to this, the question is raised, among other things, why hasn’t Serbia requested much earlier an additional explanation from the EU. Politika’s well-informed interlocutor close to the government claims, however, that this had already been requested, but that they “are changing and increasing conditions” and setting “nearly impossible conditions for the opening of chapters”. This source anxiously notes that “one cannot even imagine how things will look like in the course of the negotiations and the closing of this chapter”. For months, the Serbian authorities have been stressing that Belgrade is not to be blamed for not implementing the Brussels agreement, since there was no government in Pristina. Still, was there anything more that could have been done, or was this just an excuse? “Theoretically, Serbia could have certainly done more. But, even if Serbia had implemented some detail from the Brussels agreement, I am not convinced that this would have been enough for the opening of negotiations. Serbia could not have implemented everything from that agreement because it lacked an interlocutor,” says Laszlo Varga, deputy chairman of the Serbian parliamentary Committee for EU integration. At the beginning of this year, Tanja Miscevic, the Head of the Serbian negotiating team with the EU, was explaining that neither Serbia nor the European Commission knew how the normalization process of Belgrade-Pristina relations would be monitored within Chapter 35, but said that many things would be clarified at the screenings, analytical review of harmonization. The problem is especially more complex if one knows that Chapter 35 practically spreads to other chapters as well. According to Varga, the preliminary agreement is that any political issue that relates to Kosovo is examined within Chapter 35, while issues relating to Kosovo and Metohija will be appearing in other chapters, for example, where there is mention of population, territory, Hague aspects, anywhere where there are touching points with this topic. When it comes to “technical matters”, this unnamed interlocutor opines that the issue of relations with Pristina will actually wriggle through most of other chapters. Ever since last summer, the mentioned ones related to energy, internet domain and statistics.

Nincic: Consensus in OSCE biggest challenge (Radio Belgrade)

The State Secretary in the Serbian Foreign Ministry Roksanda Nincic opines that reaching a consensus among the OSCE member states will be a challenge ahead of Serbia as the OSCE chair. Nincic told Radio Belgrade that the OSCE chairmanship will be an opportunity for Serbia to show the international community that it is a country that is resolving problems, instead of generating them. “A huge advantage is that we are not aligned in any camp, especially in this whole story of the OSCE with Ukraine,” said Nincic. According to her, Kosovo is not a topic of the OSCE, nor can it be, since most of the member states have not recognized Kosovo and since Kosovo is not on the OSCE agenda. Nincic stressed that the preparations for the chairmanship had commenced almost three years ago and that there would be “no improvisations”. “I can confirm that this has been one of the most serious preparations we have had in regard to some international event,” said Nincic.

Serbian mission at NATO takes over chairmanship (Tanjug)

The Serbian mission at NATO took over the chairmanship of the SEEGROUP during a meeting held on the ambassadorial level on 16 December at NATO headquarters in Brussels.The South East Europe Security Steering Group (SEEGROUP) is an informal and flexible forum for security and political consultations on issues of importance to the region of Southeast Europe, reads the statement from the Serbian Foreign Ministry. This forum brings together partner countries of the Western Balkans, NATO and the Western European NATO partners, reads the statement. The results of the chairmanship the Macedonian mission during 2014 were also presented during the meeting, the statement added. Ambassador Miomir Udovicki, the Head of the Serbian mission at NATO presented the priorities of the Serbian presidency of the SEEGROUP and announced that its action plan will be presented in January. Udovicki particularly emphasized Serbia’s commitment to further advance regional security cooperation and announced that one of the first topics on the agenda of the SEEGROUP in 2015 will be the priorities of Serbia’s OSCE chairmanship.

REGIONAL PRESS

Music: We have to bring more dynamic to FB&H parliament (Fena)

Parliament of the Federation of B&H in cooperation with the new Government and Presidency of FB&H should make some kind of analysis of reforms and remove defects and anomalies fast and in cooperation with other segments of the society. It should encourage affirmation of determination, professionalism and visions, new Chair of the House of Representatives of the Parliament of the Federation of B&H Edin Music said in an interview with Fena. Music emphasized that as a society we are in some kind of cramp and that is why he advocates an intense, coordinated work. He said he learnt from the previous four-year period in the House of Representatives, as a deputy of Party of Democratic Action (SDA), that stability of relations within a parliamentary majority is very important. He will use that experience within his jurisdictions in the future work. “’Parliamentary majority takes steps which stabilize and improve situation in the Federation. Of course, with an opposition, that also supports it. Changes in parliamentary majority during a mandate are very risky and damaging, which we saw in the previous mandate. If we do a quality analysis, then we will make sure of it,” said Music. He finds it is necessary to work based on compromise and political fairness and that more positive energy is needed in society, as well as work creativity and responsibility. He sees his work in that direction. He also noticed in the previous mandate, in certain period, that legislative-executive system, which includes the House of Representatives and House of Peoples, president, vice presidents of FB&H and FB&H Government, did not work properly and needs to be improved. Speaking about cooperation with Deputy Chairs, Marinko Cavara and Sasa Mitrovic, Music said he expects they will have the same intention, which is efficient and functional work of the Parliament. “’I expect good and fair cooperation,” emphasized Music. As part of the constitutive process, new work bodies have been appointed, which are commissions and boards of the House of Representatives, with opposition of the Union for the Better Future of B&H. The Party explained it opposed because SBB did not get seats in the working bodies according to number of seats in new assembly of the House. In the previous assembly of the Federation Parliament it often happened that a certain proposal or draft law was on the agenda of session of the House of Peoples, without being considered in the House of Representatives. Asking which methods can contribute to better dynamic, so there is no longer time difference between adoption of laws in the House of Representatives and their confirmation in the House of Peoples, Music emphasized he will encourage “intensive cooperation between managements of the Houses, Presidency of FB&H and the Government, caucuses and working bodies, which could significantly improve the Federation efficiency”. “I want work and actions of deputies in the House of Representatives to meet professional and ethical standards. Dynamic will depend on the Working Program of the House of Representatives,” said Music. Drafting the Working Program is one of the upcoming activities, which requires a complete government in FB&H. “Programs of Presidency of the Federation and Government will determine working program of the House of Representatives. Quality work of caucuses of the House of Representatives, with good preparation at sessions of the Collegium, could contribute to greater efficiency,” he emphasized. Speaking about working conditions of the Federation Parliament, he pointed to a fact that the Federation level has been working as a “subtenant” in the state of B&H for nearly 20 years. “The Parliament, Government and the Presidency of the Federation of B&H are working in facilities that are not theirs. Conditions for good work of caucuses in facility that the Parliament is using are very modest. Virtual Parliament that is publicly offered to citizens on the internet and our reality are very different,” said Music. Asked if he can guarantee that all peoples can feel safe with decision making in the Federation Parliament, and not fear to be outvoted and decisions being made which directly refer to their vital national interest, Music emphasized he “sees no reason why some people should feel insecure”. He explained that human rights are guaranteed by the Constitution and laws and that is not disputable. With full appreciation of vital national interests, he finds that common interest in many areas is equally important. In his interview, Music said what he will do to develop model of participation of civil society (unions and NGO) in issuing decisions and laws in legislative bodies and developing mechanisms for that participation. “More active role of NGOs and unions would be very desirable in process when proposers are launching initiatives related to their ideas, and quality and active participation during public discussions on draft acts,” said Music. Commenting on how newly elected deputies in the House of Representatives are ready to accept and appreciate suggestions of the citizens, he said that deputies should work responsibly in accordance with the role and powers entrusted to them, because citizens elected them in a democratic way.

“Strengthening the trust of the elected officials and citizens is very important to increase the level of citizens’ trust in the state institutions and development of parliamentary democracy,” concluded Music.

Alija Izetbegovic knew about the beheading of the Serb civilian (Glas Srpske)

The Federation of Bosnia and Herzegovina (FB&H) Vice President Mirsad Kebo submitted to the B&H Prosecutor’s Office charges against the wartime commander of the Third Army Corps RBH Sakib Mahmuljin and the wartime Chief of the Security Services in Zenica Sefik Dzaferovic for not reporting the war crimes against Serb civilians in Vozuca near Zavidovici.

This was explained yesterday by the Cabinet of FB&H Vice President, after Kebo had announced that on 16 December he filed the report to the Prosecutor’s Office and submitted the documentation in regard to crimes in Vozuca. The documentation was made public in order to avoid the speculation about the names that were reported. From the documentation, it is evident that the wartime President of RB&H Alija Izetbegovic knew about the crime. The FB&H Vice Presidents office made public part of the documentation submitted to the Prosecutors Office by Kebo together with a letter for the B&H Chief Prosecutor Goran Salihovic. In his letter Kebo claims that Mahmuljin and Dzaferovic, who as the Vice President of the SDA has recently been appointed as the Chairman of the B&H House of Representatives, were ten feet away from the place of the liquidation of a Serb civilian who was beheaded by the members of the “Al-Mujahedeen” on 18 April 1994. Kebo said that the official note contains the names of witnesses who were present at the scene, but that the attached documents disclosed no other witnesses so that they and their families may remain protected. From the enclosed police report about the crime, which was submitted to the Prosecutor’s Office, it is evident that Alija Izetbegovic was present at the scene.

Dzaferovic comments the allegations of being a witness to the Serb civilian beheading (Dnevni avaz)

“I do not know whether my name is mentioned in the document, and if mentioned, then I can say that it is a heinous manipulation and lie, and that these claims that Mr. Kebo made will have to be proven at court, the Chairman of the House of Representatives of the B&H Parliamentary Assembly Sefik Dzaferovic told Dnevni avaz when asked to comment on the claims from the letter of FB&H Vice President Mirsad Kebo sent to the Chief Prosecutor of B&H Goran Salihovic. Despite attempts to get in touch with retired General Mahmuljin, journalists failed to get his reaction, as he was not available for comments.

INTERNATIONAL PRESS

British, Serbian media positively value China-Serbia cooperation (Xinhua, 22 December 2014)

BEIJING — British and Serbian media, in the wake of Chinese Premier Li Keqiang’s just-concluded three-nation Eurasian tour, have positively commented on the development of relations and cooperation between China and Serbia over recent years.

On Dec. 14-20, Li traveled to Kazakhstan, Serbia and Thailand and attended a series of international meetings in the three countries, with the achievement of fruitful results.

While in the Serbian capital, Li and Serbian Prime Minister Aleksandar Vucic attended a ribbon-cutting ceremony to open the Mihailo Pupin Bridge spanning the Danube in west Belgrade.

In a report released Friday on the project, British newspaper Financial Times noted that the 1.5-km-long bridge is intended to ease traffic in and around the Serbian capital.

Yet Li’s visit to Belgrade has a considerably greater significance — the latest steps in China’s efforts to use the Balkans as a bridge to Europe, the newspaper added in the article, which is titled “China looks to Europe — through the Balkans.”

The relationship is seen as a win-win: Chinese companies win contracts in Europe, establishing a long-desired footprint in the continent, while cash-strapped Central and Eastern European (CEE) countries get much-needed infrastructure investments at a low cost, said the newspaper.

Investments in manufacturing and other sectors are expected to pick up, too, as China looks to capitalize on the region’s markets, location and trade access, it added.

In an article published on the British newspaper, Vucic said Serbia is well placed to become the gateway between east and west, while China plays a central role in the global economy.

Far from being the world’s low-cost manufacturing base, China’s economic future lies in the areas of technology and brand development, added the Serbian prime minister.

“With our proximity to EU markets, lower operating costs and support for foreign direct investment, I believe that it is a more attractive destination for Chinese firms than ever,” Vucic said.

Meanwhile, major Serbian newspapers also evaluated Li’s visit with optimism.

Vecernje Novosti, one of Serbia’s most popular newspapers, dedicated two thirds of its front page Friday to reporting the ribbon-cutting ceremony with a headline “From Zemun to Borca in 9 Minutes.”

Four pages of Friday’s edition of Vecernje Novosti were dedicated to the opening of the bridge. The newspaper quoted Li as saying that the bridge “is a fruit of joint efforts of our two friendly nations.” It also cited Vucic as saying that thanks to China, Serbia will construct more highways in 2016 and 2017.

In another article, Vecernje Novosti revealed that so far 12 Chinese companies have expressed interest in investing in Serbia in such fields as automobile, mining, agriculture and food.

Another leading Serbian newspaper, Politika, also stressed that “Belgrade gets the second bridge across the Danube after 79 years” and that Li and Vucic announced the launch of new cooperation projects.

Politika noted that Li said Chinese businessmen will be encouraged to open factories along the 350-km-long high-speed railway to be constructed by the end of 2017 between Belgrade and Budapest, the capital of Hungary.

The newspaper predicted that Serbia will in future have a more important status in the cooperation between China and 16 CEE countries.

With a headline of “Chinese Passed the Test in Serbia,” Serbian daily Danas quoted Li as saying that China will continue to finance and construct infrastructure in both Serbia and the region in line with European standards.

Serbia Asks Lawmakers to Back Budget With Unclear Job-Cut Plan (Bloomberg, by Gordana Filipovic, 22 December 2014)

Serbia’s government asked lawmakers to back a 2015 budget envisioning state wage and pension cuts and the elimination of 27,000 public-sector jobs, which may save the recession-hit country about $800 million a year.

Forecasting a 0.5 percent economic contraction in 2015, compared with a 2 percent drop this year, the budget projects the general government deficit of 5.9 percent of annual output. The gap will cover debt of unprofitable state companies, even as the government plans to cut 400 million euros ($490 million) in spending on public wages and pensions.

The total 650 million euros in spending cuts “is not a goal, just a first step to establish control over public finances,” Finance Minister Dusan Vujovic told lawmakers in Belgrade today.

Premier Aleksandar Vucic’s eight-month old coalition, faced with demands from teachers, doctors and pensioners that they be exempted from spending cuts, is seeking to convince the International Monetary Fund it will narrow the general government deficit to 3.8 percent of gross domestic product in 2017 from 7.9 percent of GDP in 2014. The government will keep its combined public wage and pension bill within 18 percent of GDP, from 23 percent now.

Plan Lacking

Vucic, who wants to prepare Serbia to join the European Union by the end of the decade, sees IMF backing as a way to convince investors he’s committed to overhauling Serbia’s $43 billion economy at a time when scarce investment and weak foreign demand are complicating its effort to escape recession and recover.

Serbia and the IMF reached a staff-level agreement on a 1-billion-euro precautionary program on Nov. 20. The Washington-based lender will discuss Serbia’s program on Feb. 23, Vucic said on Dec. 10.

The government has not adopted a three-year fiscal strategy, a mid-term plan which needs to be presented to lawmakers before the draft budget, Pavle Petrovic, who chairs the Fiscal Council, a three-member body supervising compliance with fiscal targets, told lawmakers today.

“Talks with the IMF are de facto about a three-year plan, and it is crucial for lawmakers and for the public to see that plan,” Petrovic said. The draft “indicates that 27,000 workers will be fired, but there is no plan, just an expectation that between 15,000 and 20,000 people will retire.”

The draft, which ends government backing for borrowing by unprofitable state companies including gas monopoly Srbijagas JP, power utility Elektroprivreda Srbije JP, and steelworks Zelezara Smederevo doo, won’t be sufficient to halt the rise in public debt by 2017, which will “stabilize only in 2018 at around 85 percent of GDP,” Petrovic said.

Serbia’s Balkan power exchange launch hits new delay (Reuters, by Maja Zuvela, 22 December 2014)

SARAJEVO – Serbian delays in enacting a new energy law have postponed the start of a Belgrade-based regional spot power exchange to at least the third quarter of 2015, an official of Serbia’s grid operator said on Monday.

The bourse, designed to boost competition, develop reliable prices and improve security of supply in the region, is now set to become fully operational six months later than the original plan, according to the manager for international and regulatory issues at Elektromreze Srbije.

“We expect to have a new energy law in place either later this year or in January and then we could finish licensing in the first or the second quarter of 2015 and go live in the third quarter,” Milos Mladenovic told Reuters.

Elektromreze Srbije (EMS) has teamed up with European exchange EPEX Spot exchange to launch the Belgrade-based bourse SEEPEX, in which EPEX will hold a 25 percent stake and EMS the remainder.

Mladenovic said Serbia also aims to align its financial regulation with that of the European Union, so the bourse could have its trading transactions cleared via European Commodity Clearing (ECC), the clearing house of the Leipzig-based European Energy Exchange (EEX).

In the initial phase, neighbouring Montenegro, Bosnia and Macedonia may join SEEPEX. There are also plans to link the regional market with that of Hungary, which has already coupled day ahead trading with the Czech Republic, Slovakia and Romania.

SEEPEX will first start trading day ahead power with intraday trading coming at a later stage, Mladenovic said.

While many traders see the region as potentially lucrative, they cite barriers limiting market growth, including lack of transparency and difficulties in getting trading licenses.

Traders said the delay may also increase the pressure on struggling power producers to seal short-term deals to compensate for what they were expecting to buy on the bourse.

Serbia is set to complete the market liberalisation in January 2015, but state-run power utility EPS is expected to retain a dominant position: the government likes to keep a cap on power prices, fearing excessive increases could fuel inflation or trigger voter discontent.

Bosnia fails to attract enough investors at debt auction (The Economic Times, 22 December 2014)

Bosnia’s autonomous Serb Republic in its 2014 budget after the IMF suspended its funding, failed to attract enough buyers at a debt auction

BANJA LUKA: Bosnia’s autonomous Serb Republic, which badly needs cash to plug a widening gap in its 2014 budget after the IMF suspended its funding, failed to attract enough buyers at a debt auction on Monday.

The auction of 15 million Bosnian marka ($9.4 million) worth of three-month treasury bills attracted bids worth less than a tenth of the offer, said the Banja Luka Stock Exchange (BLSE).

The region’s finance ministry gave no explanation for the failed issue. Analysts said commercial banks, which normally buy most bills, held back.

“Banks are either not ready to include into their portfolios such short-term arrangements at the end of the business year or they have already reached a 10 per cent limit of investment that can go towards a single client,” economic analyst Damir Miljevic said.

Bosnia’s two regions, the Serb Republic and the Bosniak-Croat Federation, have increasingly taken to tapping the debt market to plug their budget gaps after the International Monetary Fund froze its loan deal over the government’s failure to implement agreed economic policies.

The regions’ budget deficits have widened since flooding in May inflicted some 2 billion euros ($2.5 billion) of damage.

The IMF doubled its stand-by loan disbursement in June to help Bosnia recover from the floods but suspended the deal in September. The lender however said it could release a 70 million euro tranche in January if Bosnia met the terms by then.

The IMF also said it could discuss a new loan arrangement and cancel its current deal early in 2015 if a new government is formed after October’s general election.

Turkish prime minister visits Macedonia to renew ties (Hurriyet Daily News, 23 December 2014)

Turkish Prime Minister Ahmet Davutoğlu was set to leave for the Macedonian capital of Skopje on Dec. 22, for a visit aimed at boosting bilateral relations with the Balkan country, as well as reiterating support for ethnic Turkish communities there.

As part of the visit, which will end on Dec. 23, Davutoğlu is expected to hold several meetings with Macedonian authorities, including his Macedonian counterpart Nikola Gruevski and Macedonian President Gjorge Ivanov, according to a statement by the Prime Ministry press office.

Davutoğlu will also attend a Turkish Education Festival event, which has been held since 2007 in Macedonia, and meet with Turkish people living in the country, the statement said.

Davutoğlu’s contacts will be dominated by talks on bilateral politics, economic and commercial ties, as well as regional and international matters.

According to official data provided by the Macedonian government, there are nearly 80,000 Turks living in Macedonia, constituting around 4 percent of its population.

After living under Ottoman rule for years, most Turks in Macedonia fled to Turkey after the fall of the empire in the early 20th century, but some remained in Macedonia.

The ethnic Turkish community speaking Turkish in the country earned the right to receive education in their own language on Dec. 21, 1944.

The Macedonia Turkish Civilian Agencies Union (MATÜSİTEB) has organized the Turkish-language Education Festival since 2007 to mark the presence of the Turkish language in the country.

Prominent representatives of the Macedonian Turkish community, well-known academics and Macedonian authorities gathered on Dec. 21 to commemorate the seventh year of the festival, which has been held with the support of Turkey’s Skopje Embassy, The Turkish Cooperation and Coordination Agency (TİKA), the Yunus Emre Institute and the Turks Abroad and Related Communities Directorate.

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Media summaries are produced for the internal use of the United Nations Office in Belgrade, UNMIK and UNHQ. The contents do not represent anything other than a selection of articles likely to be of interest to a United Nations readership.