Belgrade DMH 291113

LOCAL PRESS

Mihajlovic: Serbia will not give up resources in Kosovo and Metohija (RTS)

“Serbia will never renounce on settling the accounts when it comes to the facilities and resources in Kosovo and Metohija,” stated Serbian Minister of Energy Zorana Mihajlovic. In a speech to students of the faculty of Technical Sciences in Kosovska Mitrovica, she pointed that the Serbian Oil Industry has already initiated the talks about all the facilities that used to belong to that enterprise, and are now out of their reach. Mihajlovic has announced the debate with regards to the Electric Power Industry of Serbia, in order to preserve that company’s property. “Our goal is to establish a company that will be dealing with electricity supply and distribution, strong enough to also supply the north of Kosovo,” Mihajlovic explained.

Vulin: Next agreement in Brussels on property issues (Tanjug)

Serbian Minister without Portfolio in charge of Kosovo and Metohija Aleksandar Vulin said in Kosovska Mitrovica that the next agreement in Brussels should refer to property issues and should be followed by an agreement on cultural heritage and on the position of the Serbian Orthodox Church in Kosovo and Metohija. Serbia has borne the costs of all the interests, debts or property dividends in Kosovo – for property which it is not using at all – hundreds of million euros, said Vulin. In that context, he pointed to the significance of the Union of Serb Municipalities, which he assessed as a legal person which can have its own property, its own account and its own companies. He repeated that Serbia did not recognize the privatization implemented without Serbia, which is why a property agreement needs to be reached.

Djuric continues visit to Britain (Tanjug)

Serbian president’s advisor Marko Djuric continues the working visit to Great Britain, where he will attend a conference dubbed “Serbia/Kosovo: The Brussels Agreements and beyond” at the University of Oxford. He said that British officials support Serbia along its path toward the EU and qualified as positive Belgrade’s active role in the dialogue with Pristina. Djuric met in London on Thursday with Owen Jenkins, head of the Western Balkans and Enlargement Department at the Europe Directorate at the Foreign and Commonwealth Office, Karen Lumley, a member of the House of Commons, Patrick Rock, a political adviser to the British prime minister, with whom he discussed the proceedings and future of the Belgrade-Pristina dialogue, Serbia’s EU integration, and bilateral issues in relation to further British investments in Serbia.
“Serbia enjoys the support for speedier EU integration, with constant dialogue on the issues of interest for member states. When it comes to the Belgrade-Pristina dialogue, Britain highly appreciates the fact that, at the moment, the initiative is on our side in terms of proposing concrete solutions for improving the position of our community in Kosovo and Metohija and qualifies as positive the constructive and solution-oriented approach of our side in the talks,” Djuric said.

Boljevic: If Serbia accepts EU request to withdraw its courts from Kosovo it will recognize independence of Kosovo (Beta)

The President of the Judges Association Dragana Boljevic has stated that Serbia will practically recognize independence of Kosovo if it accepts the EU request to withdraw its courts from Kosovo. Boljevic told journalists in Belgrade that the new Law on organization of courts and prosecutions in Serbia envisages the resolution of the issue of courts in Kosovo with a special law on essential autonomy, but added the Serbian Constitution prescribes a referendum in this case. “For the time being, all courts remain in Kosovo. The law prescribes that all court in Kosovo will be regulated with a special law. However, this law requires a referendum as this introduces essential amendment of the Constitution. The decree of the Law (on organizing courts and prosecutions) that prescribes that this (special) law will be passed until 31 December is unrealistic,” said Boljevic. “As of 1 January 2014 we will have courts in Kosovo or the law will be passed without a referendum, which would be unconstitutional,” she said. Asked about the stand of the EU, Boljevic said the EU “insists that Serbia abolishes courts in Kosovo.” She said that no state should give up its sovereignty because if you withdraw courts from Kosovo you have practically recognized independence of Kosovo. 

People’s Party doesn’t recognize results of local Kosovo elections (Danas)
The Civic Initiative People’s Party from Leposavic, which took part in the first round of the local Kosovo elections, has announced that “it doesn’t recognize elections results because they had been agreed, that they are not legal, and that the structures of authorities will be formed based on these results.” The People’s Party claims that in four northern Kosovo municipalities there were “no elementary conditions for a fair campaign, in which part of the authorities in Belgrade had taken part,” and accuses the OSCE and the Central Electoral Commission for not preventing the violation of election rules. This list claims it had been “damaged” in the election theft. It is speculated on the ground that Belgrade has allegedly accepted for Oliver Ivanovic, the SDP candidate, to be the mayor of northern Kosovska Mitrovica, while Krstimir Pantic, the Serbian list candidate, could be appointed to the post of the president of the municipal assembly.

Adoption of a draft resolution on parliament’s role in EU accession (Radio Serbia/Danas/Novosti)

The Serbian parliament’s Committee for EU integrations has adopted a draft resolution on parliament’s role and principles in EU accession negotiations, which confirms that the talks are aimed at Serbia’s full-fledged EU membership. The Committee proposed that the parliament should voice its opinion on the document as soon as possible. The parliament calls on the government, which is in charge of coordination of talks on EU accession, to do that in a responsible and efficient manner and to protect the national interests. At the Committee’s session, presided by the Minister in charge of EU integrations Branko Ruzic, the draft resolution was supported by 11 Committee members, both from the ruling and opposition parties, while the Democratic Party of Serbia (DSS) was against it.

Breedlove: KFOR reduction depends on situation in northern Kosovo (Tanjug)

“The further decrease in the number of KFOR troops in Kosovo and Metohija depends on the security situation in the north of the province,” stated Commander of NATO forces in Europe Philip Breedlove. The US General has said that at the moment there is no planned reduction of the international troops, although NATO has been thinking for a while about transforming the current mission into a considerably smaller structure. Breedlove has confirmed that France intends to withdraw 320 of their soldiers from Kosovo, for their deployment in Africa. However, he did not specify when that would happen or whether the French soldiers would be replaced by those from another country.

REGIONAL PRESS

Preparations completed for possible political agreement on Sejdic-Finci (Dnevni Avaz/Fena)

The meeting of legal experts of seven strongest political parties and European Commission representatives has ended in the office of the EU Delegation in Sarajevo. Various possibilities of amending the B&H Constitution and Electoral Law towards implementing the Sejdic-Finci ruling have been discussed by high officials of the SDP, SNSD, SDA, SBB, two HDZ parties, and the SDS. The SDP vice president Lidija Korac told the press following the meeting that a high level of agreement had been reached regarding the possible amendments to the B&H Constitution “They will be operational if political agreement is reached on 2 December at the meeting of B&H leaders in Prague,” said Korac. The SDA vice president Sefik Dzaferovic has stated that preparations had been completed for the realization of the ruling, pointing out that he hopes political agreement will be reached in Prague. Member of the SNSD main board Stasa Kosarac has stated that they had discussed the models of implementing amendments to the B&H Constitution. “There are definitely a lot of topics on which there is agreement, but also those where there is no agreement. I share moderate optimism that this issue will be resolved in Prague, but problems in the B&H Federation and non-understanding among Bosniak and Croat parties are still evident,” opines Kosarac. He points out that the stands and conclusions of the Republika Srpska parliament had been incorporated into the current talks and that interests represented by the SNSD have been fulfilled. The HDZ B&H vice president Borjana Kristo has reiterated that they discussed legal aspects on the implementation of the Sejdic-Finci ruling. “It is difficult to speak about a certain level of agreement, but we are continuing talks on Monday. The HDZ B&H is doing everything to truly make a breakthrough, primarily for B&H, the constituent nations and citizens living in it. We will contribute through working, expert groups and political levels, as only this way can we arrive at a solution,” said Kristo. The HDZ 1990 vice president Josip Merdzo has stated there is certain progress in finding a solution for the implementation of the Sejdic-Finci ruling. “This implementation touches upon many aspects of the B&H Constitution. This is not only about the election of B&H Presidency members, but also the House of Peoples and certain procedures. Different approaches are visible, but I hope certain issues will be agreed and initialed in Prague,” said Merdzo. The models of the implementation of the Sejdic-Finci ruling will be discussed at a meeting in Prague on 2 December.

Lagumdzija: Unfounded statements on Arab incursion (Fena)

Deputy President of the B&H Council of Ministers and B&H Foreign Minister Zlatko Lagumdzija held a regular working meeting with the ambassadors of the member states of the Organization of Islamic Countries (OIC) accredited in B&H: the Arab Republic of Egypt, the Republic of Indonesia, the State of Qatar, the State of Kuwait, Libya, Malaysia, the Islamic Republic of Pakistan and the Kingdom of Saudi Arabia. Lagumdzija acquainted the present ambassadors with the latest development of political and economic state-of-affairs in B&H, with  focus on the present talks of political party leaders aimed at reaching a solution regarding the ruling of the European Court of Human Rights in the case “Sejdic-Finci against B&H.” Underlined was full commitment of the B&H Foreign Ministry to continue the positive swing in relations between B&H and the OIC countries, especially in view of economic cooperation. An encouraging example is the latest Kuwaiti investments in B&H and significant increase in the number of tourists in B&H from the Gulf countries. Lagumdzija acquainted the OIC ambassadors with the obligations B&H must undertake in order to harmonize the legislature with the EU demands in numerous spheres, but stressed that B&H would never pass laws that discredit any other country, including the Arab countries. Clumsy interpretations and exaggerated statements on some “Arab incursion” have been assessed as unfounded, especially if one takes into account the sincere interest from the OIC countries to come and invest into capital projects in B&H, just as they have already done in the countries of the region and throughout the EU.

INTERNATIONAL PRESS

Serbia's Fiscal Council Demands Tougher Budget (BIRN, 29 November 2013)

The Fiscal Council has warned that next year’s budget proposal does not match the country’s real financial situation, so additional savings must be made.

Serbia’s parliament is due to start debating the 2014 budget on December 3 and a vote on the draft is expected by December 15.

However, the Fiscal Council, an independent state body, has warned that the budget proposal envisages a dangerously high deficit and too much spending on aid for public companies and state banks.

The council’s report, delivered November 26, says government austerity measures, announced on October 8, will not have much impact if spending on state-owned companies and banks is not cut.

“On one hand, we are trying to control spending on salaries of public employees and pensions, we are increasing VAT, and those measures will save us about €300 million,” the Fiscal Council told the National Budget Forum, organised by BIRN Srbija, on November 27.

“But, on the other hand, we are spending €560 million to help public companies and €800 million on state-owned banks,” it added.

Pavle Petrovic, president of the Council, said the planned level of spending on public companies and state banks threatened to “sink the budget.

“All the measures the government has announced cannot help if we do not strictly control spending on these companies and banks,” Petrovic said.

Finance Minister Lazar Krstic told the Budget Forum that the 2014 budget was based on realistic assumptions, and cuts will be no larger than necessary.

The minister said the process of restructuring public enterprises will be complete in the next six to nine months.

“We realise this must be done, because if it does not happen in six to nine months, no savings will be made and it will be impossible to implement the budget,” he added.

Krstic said the government was considering capping employment in the public sector, bearing in mind the growing number of employees in that field.

The Fiscal Council report also said that structural reforms, including those related to retirement policies, need to be conducted as soon as possible, and a credible middle-term savings plan has to be drawn up.

Presenting the report, Nikola Altiparmakov, a member of the Fiscal Council, noted that this year had seen a major fall in tax collection in Serbia.

He maintained that the measures taken till now to reschedule the tax debt and adopt a zero-tolerance approach to tax avoidance have not yielded results.

“It is vital that, starting from 2014, fiscal discipline be raised. Otherwise, the entire plan of fiscal consolidation will be at risk,” Altiparmakov said.

Resolution of this problem required systemic solutions, adequate fines and the introduction of more accountability in the Tax Administration, he added.

The government adopted its budget proposal on November 1. The draft envisages state income of about €8.1 billion and expenditure of around €9.7 billion. The budget deficit is thus set at around €1.8 billion, or 4.6 per cent of GDP.

However, according to the consolidated budget, which includes both revenues and expenditures of both public companies and state banks - affording a clearer picture of the real deficit - the deficit will be around 7.1 per cent of GDP. The IMF has meanwhile predicted a deficit of 7.5 per cent in 2013.

On October 8, the government adopted a set of austerity measures intended to improve its financial position.

The measures include cuts in public-sector wages, VAT increases and reductions in subsidies.

The government also intends to cut expenditures on goods and services, improve the business environment and obtain cheaper loans based on good diplomatic relations.

“Without these measures, we could go bankrupt in the next two years,” Krstic said as he presented the austerity package.

Dagong downgrades Serbia's credit rating outlook (Xinhua, 28 November 2013)

BEIJING -- Dagong Global Credit Rating Co., Ltd., China's domestic rating agency, announced on Thursday it would downgrade the sovereign credit rating outlook of the Republic of Serbia from stable to negative.

The agency said it would maintain the country's local and foreign currency sovereign credit ratings at BB-.

Fiscal austerity measures may put new pressure on Serbia's economic growth and political stability, while the sluggish global economy is unlikely to provide Serbia with a good external environment. Serbia's government solvency faces challenges, according to the agency.

Given domestic demand will be restrained by the fiscal austerity, Dagong projects Serbia's economic growth will be 0.6 percent in 2013 and 1 percent in 2014. In the long term, its economic growth is estimated to be around 3 percent, a relatively low growth rate.

Meanwhile, with the help of the fiscal austerity, the country's deficit rate is expected to drop to 4.8 percent in 2013 and 3.5 percent in 2014, said Dagong.

Given the fact that Serbia's public debt more than doubled between 2008 and 2012 while the nominal GDP increased by 27.2 percent and fiscal revenue rose by 23.1 percent, Dagong predicts that its public sector debt ratio will reach a high of 59.1 percent in 2013 and 57.9 percent in 2014.

Macedonia ‘Collaborator’ Hunt Faces Political Deadlock (BIRN, by Sinisa Jakov Marusic, 29 November 2013)

Macedonia’s bid to root out former secret police collaborators could stall if the opposition doesn’t approve new members of the Lustration Commission, which it has accused of bias.

The term in office of the current 11 members of the Lustration Commission expires on January 15, and the opposition, which has accused the state body of staging a witch-hunt on behalf of the government, could throw it into deadlock.

New appointments to the commission require approval by a two-thirds majority in parliament, which the government of Prime Minister Nikola Gruevski does not have.

The opposition Social Democrats said they have yet to consider whether to try to block the process.

“We have not given much thought to this question yet. There is still time before January 15,” the Social Democrats’ deputy head Radmila Shekerinska told Utrinski Vesnik.

“In any case, we retain our stand that the government is misusing the lustration [process]… The government wishes to extend the grey area in this process and the selective approach,” Shekerinska said.

Macedonia is following in the steps of many former Communist states that have brought in lustration laws as a way to address past injustices stemming from politically-motivated prosecutions.

But the opposition argues that the lustration process is targeting government critics and in December 2012, removed two of its members from the Commission in protest. The commission’s head, Tome Adziev, has rejected the allegations.

In theory however, the ruling VMRO DPMNE-led coalition that holds a simple majority in the 123-seat parliament could elect new commission members without the Social Democrats, who hold 29 seats - but that would mean convincing all the other smaller opposition parties to vote for it.

Parliament passed a first lustration law in 2008 and a second one in 2012 after the constitutional court scrapped many key provisions from the original legislation, narrowing its time span and the range of professions to be subjected to checks.

Unlike the first law, which at the beginning enjoyed wide support, the more recent legislation was adopted only on the basis of votes from the ruling party.