LOCAL PRESS

Ruzic: Good news for Serbia (RTS)

Serbian Minister without Portfolio in charge of European Integration Branko Ruzic said that the decision by the General Affairs Council to start membership talks with Serbia in January 2014 is good news, adding that all 28 EU member states see our country as part of the large European family. Appearing on a Radio Television of Serbia (RTS) talk show late on Tuesday, Ruzic said that the decision is proof that Serbia made a great step forward and that Serbia has not handed Kosovo over to anyone in exchange for the date, stressing that the mantra is being advertised by those who offered no other alternative. “We have shown that we can be evaluated against our accomplishments, and not just verbally supported. I think this is good news for Serbia and that this is just a beginning, one which will start formally on 21 January,” Ruzic said. He added that our country has the capacity, political will and commitment needed to lead this process successfully. The Resolution on parliament’s role and principles in accession talks with the EU, adopted Monday in the Serbian parliament, shows the country’s predominating attitude towards the EU, said Ruzic. Asked to explain the implication of the term comprehensive normalization, which replaced the previous wording - full normalization of relations with Pristina, Ruzic said that this does not mean recognition of independent Kosovo. Commenting on the previous round of negotiations between Belgrade and Pristina in Brussels that failed to produce an agreement on the judiciary, Ruzic noted that Serbia clearly said that there was no question mark when it comes to the matters it agreed to and accepted in the Brussels agreement. “However, in this round of negotiations, it was important for us to take the stand that we refuse to accept something that goes against the Brussels agreement,” said Ruzic, adding that the Kosovo issue will be addressed in Chapter 35. Serbia wants to be valued for what it has done, and it is important to accept the decision by the General Affairs Council as a major obligation and a need to reform our society, concluded Ruzic.

Implementation of regulations on VAT and excises on the territory of Kosovo and Metohija commences (Tanjug)

The implementation of the regulations of the Serbian Government on VAT and excises on the territory of the Autonomous Province of Kosovo and Metohija during the term of UNSCR 1244 has commenced. According to the decrees of the government regulation on the enforcement of the Law for value added tax, published in the latest issue of the Official Gazette, VAT is not counted and isn’t charged for flow of goods from the territory of the Republic outside Kosovo and Metohija to the territory of Kosovo and Metohija. VAT payers are entitled to deduct these duties in line with the Law under the condition that the goods were dispatched to the territory of Kosovo and Metohija. The second government regulation states that excise is not counted and not charged on excisable products executed by those liable to excise from the territory of the Republic outside Kosovo and Metohija to the territory of Kosovo and Metohija, under the condition that excise products were dispatched to the territory of Kosovo and Metohija.

Balfour: Key of Serbia’s Euro-integration is not in Pristina’s hands (Politika)

Many interpret the insistence of Germany and Great Britain for Serbia and Kosovo to sign a legally binding document on normalization of their relations as an attempt of Berlin and London to ensure to include as Serbia’s obligation something that would be indirect recognition of independence of Kosovo. However, Rosa Balfour, the Head of the Europe in the World Program at the European Policy Centre in Brussels, opines that at issue is not a “disguised recognition of Kosovo.” “I can bet that Britain and Germany will not let Serbia into the EU if Belgrade doesn’t recognize independence of Kosovo, just as I can bet that the five EU member states that haven’t recognized Kosovo will not allow explicit mentioning in European documents of the demand from Serbia of a legally binding document on recognizing independence of Kosovo,” Balfour tells Politika, adding that the EU work will continue on the status not being touched upon, but that everything is directed at normalization of relations without mutual recognition. She adds that even the countries that haven’t recognized Kosovo, want stabilization of the region, and that everyone will be directed towards normalization of relations between Belgrade and Pristina despite the obstacles in this process. “Ever since Cyprus was admitted in the EU in 2004, the resolution of the problems of the divided island has not progressed at all, while Cyprus as an EU member has managed to prevent moves that would damage its national interests. The EU will certainly not allow this to repeat with Serbia. Therefore, Serbia will have to face in the end the fact that it has to recognize Kosovo before it enters the EU,” says Balfour. “This process of normalization of relations serves to improve relations so that it will not be so important to the Serbs in five or ten years whether they will recognize Kosovo or not.” She doesn’t agree with the assessment that the key of Serbia’s EU integration will be in the hands of Pristina. “Responsibility is on Belgrade, because it will be requested to implement what had been agreed. Of course, there will be a problem if the other side doesn’t implement the agreement. It will be especially hard with the implementation of everything that refers to north Kosovo,” she said.

Merkel supports first accession conference with Serbia to be held in January 2014 (Beta) 

German Chancellor Angela Merkel stated in her first governmental declaration in the Bundestag that the first accession conference with Serbia could be held in January 2014 and that Serbia has now fully implemented all the necessary steps to continue the normalization of relations with Pristina. Merkel said that Germany demanded that Serbia should make genuinely visible progress in the implementation and this can be accepted after the presentation of the report of the EU High Representative Catherine Ashton.

Kurz: EU accession of Balkans a priority in foreign policy (Tanjug)

The newly-appointed Austrian Minister of Integration and European and External Affairs Sebastian Kurz welcomed the decision of EU foreign ministers to launch Serbia’s EU accession talks in January. In a statement for Tanjug, the Austrian Minister said that Serbia's accession talks should begin on 21 January. Kurz also stated that EU accession for all western Balkan countries would remain the priority goal of the Austrian foreign policy and that official Vienna will remain actively engaged in Serbia’s EU accession process. Western Balkan countries need tangible accession perspective, Kurz said. This is the only way to ensure that political and economic reforms would be implemented in the spirit of European values, the Austrian Minister told Tanjug’s correspondent. This is especially important for Serbia, he said. He said that the Belgrade-Pristina agreement on the normalization of relations was achieved in April with the mediation of Catherine Ashton and that it constitutes a step of historic importance. Kurz extended assurances that Austria will continue to follow Serbia's EU accession with great engagement. When it comes to relations between Serbia and Austria, Kurz stated that Austria’s economic and cultural presence in Serbia is very pronounced. The bilateral political relations are exceptional and outstanding, Kurz said and added that Austria is the biggest foreign investor in Serbia as its investments in Serbia total 2.9 billion Euros as of 2000. This contributes to opening of new jobs and social welfare at a time marked by economic difficulties, said Kurz, 27, as the youngest member of the Austrian government in its history. He noted that Austria shares close ties with Serbia and the region through the immigrants and refugees who found their new home in his country. This is why Kurz intends to pay an official visit to Serbia soon.

 

REGIONAL PRESS

Lajcak: B&H today a category no one talks about (Oslobodjenje)

“The situation is such that, unfortunately, no one is talking about B&H. Talk is of Serbia, Albania, Kosovo, and FRYOM. B&H today is in a category that no one is talking about. In the same category was my country in 1997, when EU and NATO enlargement first happened. Our neighbors were invited, but no one talked about us. Today, however, we are one of the most successful new members,” said Slovakian Foreign Minister Miroslav Lajcak in Brussels. That is why his message to B&H is that anything can be made up, everything can be done, but we need to get serious. He believes that B&H has good potential, exceptional people, and deserves a better perspective, but the responsibility is on political leaders. “The decision we need to make today should serve as a message that we simply cannot move forward in this manner,” believes Lajcak. Asked whether the EU High Representative Catherine Ashton could hold talks in B&H similar to those between Belgrade and Pristina, he said what sense that makes if there is no will among domestic politicians for this. “We could have a dozen international delegates, but there must be willingness at home,” Lajcak concluded.

Venizelos: Name dispute is not bilateral issue (Sitel TV)

“The name dispute between FYROM and Greece is not a bilateral issue and doesn’t concern only the name,” said Greek Foreign Minister Evangelos Venizelos, Sitel TV announced. “This is a very deep question of democracy and the supremacy of law, a much more international issue within the UN and a pan-European issue of the Copenhagen criteria that must be met,” Venizelos said.

Gruevski: Macedonia’s name doesn’t belong to me or my father – it has to be solved in a referendum (Vecer)

“We are prepared to launch talks for EU and NATO membership and will continue being prepared implementing the needed reforms until the two organizations become ready for our accession,” Vecer quoted Macedonian Prime Minister Nikola Gruevski as having stated.
According to Gruevski, the Macedonian government will respect the issues concerning identity and issues opened by Greece. “We cannot accept a decision that was not passed at a referendum, because the name of the country does not belong to me or my father, or any of the ministers and the government,” the Macedonian Prime Minister stated.

 

INTERNATIONAL PRESS

Serbia to start EU membership talks in January (EUobserver, by Valentina Pop, 18 December 2013)

BERLIN - EU foreign ministers have agreed to start membership talks with Serbia in January - a long-awaited move rewarding progress on relations with Kosovo.

"This is an important step forward for Serbia," EU enlargement commissioner Stefan Fuele told press after the ministers' meeting in Brussels on Tuesday (17 December).

"I applaud both prime ministers on remarkable efforts to normalise relations this year, with the facilitation efforts of [EU foreign affairs chief] Cathy Ashton, and I am pleased the Council has acknowledged these efforts," he added.

He said the upcoming Greek EU presidency plans to organise the first Serbian accession conference on 21 January.

He declined to speculate how long the process will take, or to draw parallels with Croatia, which started talks in 2005 and joined the EU eight years later, in July this year.

But he said the Kosovo problem will not be a "delaying factor."

Serbia, along with five EU countries, does not recognise Kosovo, which declared independence in 2007.

But Kosovar and Serb leaders agreed a landmark deal in April to co-operate on day-to-day issues, including to dismantle paramilitary groups in Kosovar Serb enclaves.

Fuele noted that the EU is also in talks with Kosovo on an association agreement - a precursor to future accession.

"I am confident we can conclude these negotiations in spring," he said.

Tuesday's decision on Serbia comes after Germany delayed the move in summer due to a flare-up in Kosovo-Serb tensions.

Chancellor Angela Merkel told the Bundestag on Wednesday that "we demanded this summer visible progress in the implementation of the normalisation agreement … We can now say Yes."

She added that Germany will also support Albania to get official EU candidate status and to help its government to fight organised crime and corruption.

Fuele noted that a decision on Albania's status will be taken in June.

Serbia's ICTY co-operation removes EU accession obstacle (Southeast European Times, by Igor Jovanovic, 17 December 2013)

ICTY Chief Prosecutor Serge Brammertz delivered a positive assessment of Serbia's co-operation with the tribunal, opening the doors of European integration to Belgrade.

The positive assessment of Serbia's co-operation with the International Criminal Tribunal for the former Yugoslavia (ICTY), which Chief Prosecutor Serge Brammertz presented to the UN Security Council, brought relief to many in Belgrade.

Prior to the Kosovo issue, co-operation with The Hague tribunal was the biggest obstacle facing Serbia in its European integration. Brammertz's December 5th report expressed his satisfaction with Serbia, lifting the obstacle for the country's EU accession.

Prime Minister Ivica Dacic welcomed the report, and said at a December 6th meeting with the ambassadors of EU member states that Serbia has met all the requirements for the start of talks with the Union.

"We expect the beginning of the talks to take place no later than January 2014. Any possible setting of new conditions would have a negative impact on the hitherto process of European integration and on the citizens' attitude toward the European Union," Dacic said.

Rasim Ljajic, the head of the National Council for Co-operation with the ICTY, said that co-operation with the tribunal is important to Serbia's European integration, but also to the fulfilment of the state's moral and legal obligations.

Ljajic told SETimes that during a meeting with Brammertz in November he launched the initiative to have ICTY convicts serve their sentences in the states of the region.

"Serbia is ready to make such an agreement with the tribunal," Ljajic said.

Over the years of co-operation with the tribunal, Serbia has extradited 46 indictees, including two former presidents, cabinet members, three army chiefs of staff and several police and army generals.

Belgrade also celebrated the 10th anniversary of the founding of the state War Crimes Prosecutor's Office during the week of Brammertz's evaluation.

War Crimes Prosecutor Vladimir Vukcevic told SETimes that one of the biggest successes, aside from the processing of indictees, was the fact that the office's work showed that "war criminals are not representatives of Serbia."

"We showed that these are people who, under the pretence of defending Serbian interests, committed theft, tortured people, devastated them," said Vukcevic, who pressed charges against 161 individuals during his 10 years in office.

However, Vukcevic said his work is not done. There are 300 war crimes suspects still at large in Serbia, he said, stressing the necessity to intensify work on processing those cases.

"We will work hard on that," said Vukcevic, declining to specify when the remaining suspects might be processed.

In his report on the prosecution's work, Brammertz noted that Croatia and Bosnia and Herzegovina's swift response to requests for the delivery of documents and access to witnesses has helped the on-going war crime trials before The Hague.

Brammertz added, however, that certain barriers to the regional states' mutual co-operation on war crimes cases should be removed, highlighting the ban on the extradition of citizens.

"Further reforms are necessary to remove those barriers," the chief prosecutor said.

Serbia's Ruling Party Readies for Early Elections (BIRN, 17 December 2013)

With its poll ratings riding high, senior officials in the governing Progressive Party are talking openly about an early general election, in which they hope to win a landslide victory.

Bratislav Gasic, deputy head of Serbia's ruling Progressive Party, said most party members were ready for early parliamentary elections next year.

"Elections should be called, so that the Progressives can assume full responsibility and not face any more obstacles [from other parties]," Gasic said.

The statement comes days after the party won convincing wins in local elections in three municipalities, renewing its confidence of sweeping the board in a general election.

According to the preliminary results, the Progressives won 49.78 per cent of the vote in the Belgrade municipality of Vozdovac while the opposition Democrats won only 11.65 per cent.

In the northern municipality of Odzaci, the Progressives won 48.18 per cent, and in Kostolac, in eastern Serbia, 45.51 per cent.

Nebojsa Stefanovic, the head of the Progressives in Belgrade, said the victory in Vozdovac had shown that the party was ready for a parliamentary contest.

"This great victory is proof that people appreciate what we do. Now is the time for new parliamentary elections," Stefanovic said on Sunday night.

The party is due to hold a session by the end of the year at which it will discuss early elections.

According to Gasic, early parliamentary elections might be held at the same time as the next local elections in Belgrade. The deadline for elections in the capital is March 16.

The most recent opinion poll also shows that the Progressives are now Serbia's most popular party and that if elections were called, they would win the support of 41.5 per cent of all voters. The research was carried out from September 27-30 on a sample of 1,080 people.

In the last general election, held on May 6, 2012, the Progressives gained 55 seats out of 73. They currently govern in coalition with the Socialists.

Serbia Cuts Rates for Third Month as Inflation at Record (Bloomberg, by Gordana Filipovic, 17 December 2013)

Serbia’s central bank lowered borrowing costs for a third straight month as inflation slowed to a record low amid a deteriorating economic outlook.

The Narodna Banka Srbije in Belgrade, the capital, cut its one-week repurchase rate by a half point to 9.5 percent, according to a statement on its website today. Six of 22 economists in a Bloomberg survey predicted a quarter-point cut, seven projected a half-point reduction, two forecast a decrease of 75 basis points and seven predicted no change.

The decision aligns Serbian policy makers with counterparts in eastern Europe from Romania to Hungary who are reducing the cost of credit to revive their economies. The Serbian central bank, which a month ago downgraded its forecast for next year’s economic growth, last cut the benchmark rate by a half point on Nov. 7, when it cited subsiding price pressures and inflation expectations for the move.

Rate setters have concluded that “inflation expectations have fallen to a historical minimum and that inflation will stay within the target band in the coming period,” according to the statement. “The expected effects of fiscal consolidation, besides having a disinflationary impact, will also contribute to reducing the impact” of external risks.

Inflation slowed to a record-low 1.6 percent from a year earlier in November, below the central bank’s target of 4 percent, plus or minus 1.5 percentage points.

The dinar traded 0.1 percent weaker at 115.0050 against the euro after the announcement in Belgrade, data compiled by Bloomberg show.

Policy Swings

Serbia embarked on an easing cycle in May after tightening policy eight times in nine meetings through February as regulated price increases and rising dinar liquidity drove up inflation. With five rate cuts in the past eight months, the central bank shaved 2.25 percentage points off its benchmark rate.

The central bank expects inflation to remain close to its 4 percent target through 2016, according to today’s statement.

Policy makers cut their economic growth forecast for 2014 to 1.5 percent on Nov. 19 from a 2.5 percent estimate made in August. The government adopted the 2014 budget on Dec. 13 with a planned fiscal gap of 7.1 percent of gross domestic product, the highest among southeastern European economies.

Serbia has pledged a fiscal consolidation plan of 1.6 billion euros ($2.2 billion) through 2016. One-time spending items to overhaul state companies and prop up some commercial banks will widen the 2014 deficit from 6.5 percent this year.

A stronger-than-expected dinar alongside the downgraded GDP outlook and the recent surprise inflation slowdown suggest even bigger rate cuts lie ahead, analysts at Hypo Alpe Adria Bank d.d. in Zagreb said in a Dec. 16 research note.

“Low inflation warrants a cautious cut of what is currently the highest policy rate in the CEE,” Dan Bucsa, an economist at UniCredit Bank AG in London, said in a note to clients yesterday.

Croatian FM says EU should conceive specific approach to Bosnia (Hina, 17 December 2013)

Bosnia and Herzegovina was virtually not mentioned in a ministerial discussion on enlargement, which is very bad and the European Union should come up with a specific approach to that country, Croatian Foreign Minister Vesna Pusic said in Brussels on Tuesday.

"The fact that Bosnia and Herzegovina was barely mentioned in the discussion affected me quite a bit. I think that's bad and when I said so, several colleagues said it takes two to tango. In other words, they believe the problem is in Bosnia and Herzegovina. We know there are many difficulties, but the EU should conceive a specific approach to Bosnia and Herzegovina and make an additional effort so that the country, which is very important, could make headway in European integration," said Pusic.

She attended a meeting of EU foreign ministers and EU enlargement was one of the topics.

Pusic said Croatia pushed for granting Albania membership candidate status, but that several states were extremely opposed to adopting a decision on that now. She added that a compromise solution was being sought so that Tirana could be granted candidate status in the first half of 2014.

Croatia also pushed for launching accession negotiations with Macedonia but, "unfortunately, that wasn't supported and the start of the negotiations was delayed again. We believe that Macedonia is spinning in a vicious circle," said Pusic.

Bosnia turns down EU education funding program because of political bickering (Associated Press, 17 December 2013)

SARAJEVO— Bosnia has rejected an offer to take part in a European scholarship program after officials from the Serb region of the country insisted it be treated as a separate state.

The European Union invited the country to participate in its Erasmus program, which gives students scholarships and opportunities for exchange programs. But ethnic Serb leaders said they would not allow the establishment of a state-level agency that would co-ordinate the program with the bloc.

Since its 1992-95 war, the country has been divided into two regions linked by a joint government. The Bosnian Serb region would prefer to be independent and has frequently refused to go along with the central government.

The Bosnian Serb education ministry said Tuesday the EU condition requiring the federal agency was "unacceptable."

EU Shunts Aside Macedonian Talks Again (BIRN, by Sinisa Jakov Marusic, 18 December 2013)

For the fifth year in a row, Brussels has postponed discussion of a date to start Macedonia’s long-awaited EU accession talks.

EU foreign ministers attending Tuesday General Affairs Council, GAC, in Brussels again postponed discussion about opening Macedonian membership talks to the next EU summit in June 2014.
A formal decision will be taken at the European Council of Prime Ministers on Thursday and Friday.
It is the fifth year in a row that the European Council has not offered Macedonia a date for talks, despite repeated annual recommendations by the European Commission for EU accession talks with Macedonia to start.
The failure is attributed to the Greek blockade related to the dispute over Macedonia’s name.
Greece, which has the power to veto EU decisions, insists that Macedonia’s name implies territorial claims to its own northern province, also called Macedonia.
At the Brussels meeting on Tuesday, the Greek Deputy Prime Minister and Foreign Minister, Evangelos Venizelos, reiterated the Greek position on the issue, firmly opposing a start date for Macedonia.
The Macedonian Prime Minister, Nikola Gruevski, in an interview for the Austrian media outlet Die Presse, accused his Greek counterpart Antonis Samaras, of deliberately impeding Macedonia’s progress.
Prime Minister Samaras “plays on the card of nationalism” and “wants to torpedo Macedonia’s accession to the EU”, Gruevski was quoted as saying.
“We are faced with the fact that there have been no direct [name] talks for over a year-and-a-half because the other side does not want a solution to the dispute and does not want to talk," he said.

"The climate has worsened significantly since the new Greek government arrived in mid-2012,” Gruevski added.