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LOCAL PRESS

Vucic: Ashton best understood Serbia’s needs (RTS)

Serbian Prime Minister Aleksandar Vucic has stated that Serbia will be the first in this part of Europe to launch talks on the rule of law Chapters 23 and 24 as early as next year, a clear sign that we want to put the country in order, and EU High Representative Catherine Ashton pledged EU assistance. Speaking at a press conference following a meeting he had with Ashton today, Vucic said that the EU High Representative’s arrival on the first day after the election of the new government and her visiting only Belgrade, and not the entire region, is a great honor and a good sign for Serbia. Expressing Serbia’s respect for what she did today, but also for everything else that Lady Ashton has done for Serbia, Vucic said that she had put a tremendous amount of effort to have Serbia set firmly on its path to membership of the EU and help it accept the Brussels agreement. “More than many others in the EU, she has been willing to consider Serbia’s views and comments and Serbia’s needs. Today also we discussed important topics, such as the continuation of EU accession and our meeting was not at all a bureaucratic one. We want to put our country in order. We want to see that it does not have to take as many as 25 years for judgments to be delivered, we want our people to know that justice can be done and that our legal system is really functional. This is also important to help attract bigger investments, as such investments are made only there where legal systems are well-developed. We expect assistance on this issue and in the training of our people, and Ashton said that we would get the support,” the Prime Minister said. The dialogue with Pristina will continue as a lot remains to do be done here, Vucic said, expressing the belief that both the Serbs and Albanians will be able to acknowledge the reality on the ground.

Vucic: I will represent Serbia in negotiations with Pristina (Danas)

Serbian Prime Minister Aleksandar Vucic has stated that he will personally represent Serbia in the negotiations with Pristina. He said that he would not run away from the Kosovo problem, i.e. that the policy towards Kosovo and Metohija would not change, that there isn’t and that there will be no recognition of independence, and that the solution for every issue will be sought within the dialogue conducted under the EU auspices.

Vulin: Economy, cultural heritage new topics of talks (Politika/Beta)

Aleksandar Vulin said that he expected new talks with Pristina to focus on the economy and protecting cultural heritage. “Brussels Two, Brussels Three, or however we want

to call the talks, must deal with the economy and the position of our church and our cultural heritage,” Vulin told reporters at the Palace of Serbia after the signing of a contract donating the Simpo plant in Zubin Potok to the Raska-Prizren Diocese. Vulin further said he expected the next EU-mediated talks with Pristina to yield concrete solutions which would make life easier, economically speaking, for Serbs in Kosovo and Metohija. “I expect the international community to recognize everything that we had been investing and the things that exist in Kosovo and Metohija,” said Vulin. Asked by a journalist whether he would be in charge of Kosovo and Metohija in the new government, Vulin didn’t give a concrete answer, but noted that the southern Serbian province would be in the focus of the next government. “Kosovo and Metohija was in the focus of this government, and the government that will be formed by Aleksandar Vucic. The prime minister designate will present proposals, with concrete names,” said Vulin. According to him, it is important that the Serbian government policy towards Kosovo and Metohija “has been finally established so that it will not change anymore.” “Not a single future minister will be able to change the policy towards Kosovo and Metohija, i.e. the policy of non-recognizing independence of Kosovo and Metohija, the policy of negotiating with the international community and policy of national interests of Serbs in Kosovo and Metohija,” said Vulin.

Belgrade-Pristina agreement one of EU achievements (Beta)

The European Commission has issued the publication on the accomplishments in the period 2010-2014, in which all 28 commissioners have commented on the accomplishments of their offices, and EU Enlargement Commissioner Stefan Fule has included among the main results the agreement between Belgrade and Pristina. Fule has assessed that it helped the opening of the accession talks with Serbia and the start of the negotiations on the Stabilization and Association Agreement with Pristina. He has described the admission of Croatia to the EU as a good thing for the entire EU, because it sent the message to the West Balkans that all countries have a chance, if implementing the political and economic reforms, respect to the rule of law, democratic principles and human rights.

Kirby: Vucic’s ambitious plan (Blic)

U.S. Ambassador to Serbia Michael Kirby has said Serbian Prime Minister Aleksandar Vucic presented a very ambitious plan and that he seems very committed to fulfilling that plan. “In my opinion, Serbia’s future will be very good if Vucic succeeds in those plans,” Kirby told Blic.
According to him, the speech was very detailed and that perhaps made it difficult to follow it.
“The first step is to make a plan and Vucic has done that. After that, you need to be clear as to who will be on your team. Vucic’s intent to go through with the plan is clear, and I believe Vucic can succeed. I hope for that,” said Kirby.

Challenges of the Brussels Agreement (Radio Serbia, by Suzana Mitic)

On the occasion of the anniversary of the signing of the agreement in Brussels, Konrad Adenauer Foundation has organized a debate entitled: Normalization of Belgrade-Pristina Relations: The First Year of the Brussels Agreement. In the discussion, which caused immense interest of the press and public, opinions coming from both Belgrade and Pristina were heard. From the angle of what can be regarded as Serbian national interest according to official state documents, the result is positive a year after the Brussels agreement was signed, an assistant professor at the Faculty of Political Sciences of Belgrade University Filip Ejdus believes. According to him, Serbia has shown a positive approach, has managed to improve its international image and to progress on the EU integration course while the agreement has proved useful for the Kosovo Serbs as well.

A fellow of the Institute of Social Sciences and the president of the Managing Board of the Ethnic Relations Forum Dusan Janjic said that the Brussels agreement was the best thing Belgrade was able to achieve under the circumstances and that the negotiations process has not implied any formal recognition of independence of Kosovo. Belgrade, however, has agreed to the territorial integrity of Kosovo, i.e. to the invulnerability of the present borders and to the fact that everything will be going on now according to Kosovo laws, emphasized Janjic.

The Brussels process is not over yet, there are many more talks to come and it is too early to say if Belgrade has made a right or a wrong move. Belgrade has a good instrument in its hands, which is the sustaining parallelism of institutions and a still open-ended question of division in the north of Kosovo, while, on the other hand, there are many issues yet to be discussed, such as the position of the Serbian community, human rights, property, economy, cross-border cooperation, said Janjic.

The chair of the Kosovo Council for International Affairs Angelusa Morina stressed there were many more questions to be discussed, such as police and judicial issues. According to her, the Brussels agreement was neither transparent nor democratic and it involved too few people. The segregation of ethnic communities is increasingly present in Kosovo – instead of integration and a multiethnic society, Kosovo is becoming a bi-ethnic society, which is a wrong approach, she underlined.

The executive director of the Kosovo Institute for Political Research and Development Ilir Deda said, among other things, that the Pristina side had not obtained what it expected for its contribution, such as the Stabilization and Association Agreement. According to him, the EU is not properly monitoring the implementation of the Brussels agreement and one gets the impression of its being implemented, while, in reality, the situation is quite different. What has been achieved so far is the legalization of a status quo and we will probably have to negotiate again on the same subjects, said Deda.

It was emphasized in the debate that much more effort should be invested in the strengthening of peace and stability and in the improvement of relations between Serbs and Albanians in Kosovo and Metohija.

Office for Kosovo and Metohija condemns attack on EULEX (Tanjug)
The attack on EULEX vehicles in the village of Banje, in the vicinity of the Brnjak crossing, was condemned by the Office for Kosovo and Metohija, which noted that it is a fortunate circumstance nobody was injured in the incident. “Whoever did this caused damage, primarily to Serbs in Kosovo and Metohija and the efforts which the Serbian government and Kosovo Serbs are investing in normalization of life in the province. This is another proof that neither the authorities nor citizens are safe in Kosovo nor Metohija, reads the statement. The Office for Kosovo and Metohija called on competent bodies and the international community to take the preliminary investigation to the next level and locate and punish the attackers, noting that the Republic of Serbia is ready to offer any mode of assistance in the case. The lack of safety and security is still the biggest problem for all citizens in Kosovo, the Office warned.

Visoki Decani Monastery receives threats (Tanjug)

Archimandrite Sava Janjic, abbot of Visoki Decani Monastery said Saturday that an unidentified man has threatened that he will destroy the medieval Serbian monastery in the next few days, adding that the Kosovo police, KFOR and international representatives in Kosovo have been notified about the latest threats. Janjic told Tanjug that the Kosovo Police told the monastery that an unidentified man presenting himself as a KLA commander called a local TV station and said he is preparing an attack on the monastery in the next two days, and that a camera should be ready to film the destruction of Visoki Decani. “The police immediately took all necessary measures, and I contacted several representatives of the Kosovo police, including Deputy Police Minister Sasa Rasic, and I received an invitation to meet with the commander of KFOR and ambassadors of several Western countries’ embassies in Kosovo and Metohija, who expressed solidarity and support,” Janjic said. “We hope that all measures will be taken to discover who is behind the threats, but also to tighten security around the monastery, which obviously is still under security risks,” the abbot of the Serbian Orthodox Church (SPC) monastery said.

Gendarmerie returns to Trpeze base (Politika/Beta)

Members of the Gendarmerie returned on Friday to the Trpeze base, at the administrative line between Serbia proper and Kosovo, five days since they left it. Over those five days, along with the fact that the Gendarmerie abandoned the residents of the Trpeze village, the power distribution company cut off power to six households. “At issue are the poorest people in this region, old and infirm, who have no money for food let alone to pay electricity. We are all bitter because all this is happening,” said the president of the Dobri Do local community Radovan Jelic. Otherwise, in the past period, five Kursumlija villages along the administrative line with Kosovo have been left without residents and two bases have been left without Gendarmerie.

REGIONAL PRESS

Izetbegovic invites Vucic (Tanjug)

The Chairman of the B&H Presidency Bakir Izetbegovic told Tanjug that he has already invited Serbian Prime Minister Aleksandar Vucic to participate in the 5^th international investment conference Sarajevo Business Forum, set to take place on May 14-15 in Sarajevo. Izetbegovic said that he hopes that Vucic will accept the invitation, as it would be a good opportunity to discuss promotion of economic cooperation and joint projects aimed at economic recovery and development of Serbia and B&H. “I am certain that through a coordinated approach we can attract significant foreign investments to the region, especially in the fields of energy, infrastructure, agriculture and tourism, and open new markets for our companies abroad,” said Izetbegovic. He said that Vucic was aware of the shared opportunities, adding that for that reason he expected B&H to have a good partner in the new prime minister and the government of Serbia, and that, based on mutual respect and shared interests, the two countries will build positive and stable bilateral relations and a common European future in years to come.

Inzko: B&H is recovering, progress possible (Fena)

The High Representative (HR) in B&H Valentin Inzko has stated that B&H is “recovering” from a failed attempt of putting an end to the centuries of joint life and that progress has been enabled.

The HR points out that B&H not only has three constitutive nations, but also 17 national minorities, and that protection of the interests of one group can deprave the interests of others.

That was clearly shown by the ruling of the International Court in the Sejdic-Finci case that the B&H authorities need to implement by removing national discrimination from the electoral legislature, Inzko told a conference on national minorities in Trieste within the project “Europe for Citizens” organized with the support of the European Parliament. Inzko assessed that development of a modern European concept of a civil society is one of the ways for resolving contradictories that exist in B&H. “If we improve and promote the civil society concept, then we reduce the possibility of facing a situation where the advantages of one group, one constitutive nation, act as a factor of exclusion and are to the detriment of others,” said Inzko. The HR said that the European concept of a civil society is in line with the B&H tradition and noted that the recent citizen protests had gathered different groups – regardless of place of residence or national identity, while they were linked by the joint opinion that the present situation represents an affront to basic human rights, reads the statement by the Office of the HR.

Pusic: EU’s more active treatment of B&H (Hina)

Croatian Minister of Foreign and European Affairs Vesna Pusic says that the EU needs a different, more active attitude towards B&H. She pointed out that all her colleagues in the EU had accepted and kept the Croatian initiative for B&H’s progress towards the EU on the agenda at the last meeting in Luxembourg and conducted a “very productive debate,” despite the situation in the Ukraine that overshadowed all other issues. Pusic explained that Croatia’s goal is for “the B&H project to be a European initiative.” “Then we can say that the project has succeeded,” she added. She recalled that Croatia has never advocated nor advocates the lowering of criteria for EU membership, but that it advocates that European institutions assist B&H in achieving these criteria, and not to “simply leave it to slide backwards.” “That is important for B&H, but it is also important for Croatia and for stability of the entire region, and through this, for stability of one important part of Europe,” said Pusic.

Serbo-Croat protest in Vukovar (Beta)

A group of young people from Serbia and Croatia protested in Vukovar over the attack of Croatian fans on one café owned by the Serbs in Vukovar. The protest was organized by participants of cross-border cooperation of the Youth Initiative for Human Rights from Zagreb and Belgrade. The statement by the two organizations reads that the reason for their gathering was the incident in the café Joker when several Serbs were injured. The unrest was provoked by Croatian fans who were returning from the Red Star-Cibona and Partizan-Cedevita matches.

“The media report that fans of Serb and Croat teams took part in the fight, hiding the truth that the incident was provoked by Croatian fans who burst into the café owned by the Serbs in Vukovar,” said Leo Tot from Vukovar, one of the organizers of this Initiative. “The young from Serbia must know what was happening during the 90s in Vukovar, to visit Ovcara and the hospital, to insist on launching issues of Belgrade’s responsibility for the present situation in Vukovar. Only by responsibly treating the past can we constructively contribute to improving inter-ethnic relations in the present and future,” said Djordje Bojovic from the Youth Initiative for Human Right from Belgrade.

INTERNATIONAL PRESS

EU foreign policy chief Ashton offers support to new Serbia govt on EU path, economic reform (ER/Associated Press, 28 April 2014)

The European Union's foreign policy chief has offered support to the new Serbian government in its bid to overhaul the economy and pursue membership in the 28-nation bloc.

Catherine Ashton held talks with Serbian Prime Minister Aleksandar Vucic on Monday, a day after his Cabinet took office. She says she was "absolutely delighted I have been able to make this special visit to Serbia."

Ashton adds that "the European Union is determined to help and support Serbia in its efforts to ensure a strong economic path for its people."

Vucic says he has sought EU backing "for tough and bold economic reform" in the Balkan country which went through a decade of wars and international isolation during the 1990s'. Vucic has expressed hope Serbia can join the EU in 2020.

Serbia's new prime minister expects IMF deal by July (Reuters, 28 April 2014)

BELGRADE- Serbia's new Prime Minister Aleksandar Vucic said on Monday he expected the Balkan country to sign a loan deal with the International Monetary Fund by July at the latest.

To win the deal, the EU candidate country will have to curb its rising budget deficit, forecast at 7 percent of gross domestic product (GDP) this year, and cap public debt which has reached 63 percent of GDP.

Vucic, who took over as prime minister on Sunday, made his statement after meeting European Union foreign policy chief Catherine Ashton.

"We are expecting to make the deal with the IMF by July at the latest," he said, giving no further details.

Presenting his program to the parliament on Sunday, Vucic promised to cut the cost of the bloated public sector, an overhaul his predecessor had fudged fearing social unrest.

He promised to cut some of the 800,000 jobs in the state sector, overhaul the pension system and cut subsidies to 153 loss-making state-companies.

Such cuts are key for getting World Bank loans.

"We are not poor who are seeking charity, we need support for true reforms," Vucic added.

Investors see the IMF deal as underpinning his promises to undertake painful change as Serbia pursues EU membership talks that started in January.

"In my opinion Serbia still has the potential to be the new reform darling of the region, taking over the mantle from Romania," Tim Ash of Standard Bank said.

"But it is so important this time around to secure the anchor of an IMF program, and quickly."

(Reporting by Aleksandar Vasovic, writing by Ivana Sekularac; Editing by Zoran Radosavljevic and Ruth Pitchford)

Serb Cabinet Taking Office Vows to Curb Debts, Win Jobs (Bloomberg, by Gordana Filipovic and Misha Savic, 28 April 2014) 

Serbia’s new cabinet promised to curb public debt and spending and offer incentives for new jobs as it works to win International Monetary Fund support and push ahead with European Union entry.

Premier Aleksandar Vucic, who was former strongman Slobodan Milosevic’s information minister in 1998, and his 19-member cabinet took the oath of office in Belgrade last night. Former Prime Minister Ivica Dacic’s Socialists and the Alliance of Vojvodina Hungarians, the biggest ethnic minority party in parliament, also joined a coalition that will wield its two-thirds parliamentary majority to push through policies.

The three-way coalition, which was backed by 198 members of the 250-seat parliament, is preparing a plan to tame public debt, which rose to 63 percent of gross domestic product, the highest level in a decade, and encourage investors to offer jobs in a country where one in four is out of work.

“I don’t want to fool you and tell you that it will be easy,” Vucic told thousands of supporters in front of the parliament building after the session. “It’s necessary to be integrated in global markets and avoid a financial crisis similar to Greece, he said earlier. ‘‘We must show investors that we know how to manage our finances.’’

Vucic and his Serbian Progressive Party, which also counts the nation’s president and central bank governor as members, will have the strongest lock on power by a single party since Milosevic was in control.

Austerity Plan

Vucic plans to save about 1.5 billion euros ($2 billion) each year during his term with 10 percent wage cuts for state employees, a crackdown on the shadow economy and the closing or overhaul of 153 unprofitable enterprises with almost 60,000 workers that drain about $1 billion a year from the budget. He will also raise the retirement age for women to 63 from 60 and introduce penalties for early retirement.

The Progressives’ leaders were once prominent members of the Radical Party led by Vojislav Seselj, who is now awaiting a Hague verdict on charges of war crimes and crimes against humanity.

They now support membership in the EU, a turnaround from the years when they resisted EU demands to give up suspected war criminals, renounce claims on Kosovo, a former province that declared independence, and bring the judiciary into line with EU norms. EU’s foreign policy chief Catherine Ashton arrives in Belgrade on Monday to meet with Vucic.

Rising Yields

The yield on 10-year Eurobonds, maturing in 2021, fell 3 basis points, or 0.03 percentage point, to 5.541 percent by 9:56 a.m. in Belgrade today, data compiled by Bloomberg show. The extra yield on Serbian dollar notes over Treasuries rose four points to 311 basis point, or 3.11 percentage points, the highest in nine days, according to JPMorgan Chase & Co. indexes.

The dinar gained 0.02 percent to 115.7445 per euro and the main index of 15 most actively traded assets on the Belgrade Stock Exchange opened 0.3 percent weaker at 582.84 points.

The new government will seek to persuade the IMF to approve a standby loan by the end of June and draw investors back to the largest of the former Yugoslav republics.

Finance Minister Lazar Krstic will need to narrow Europe’s highest fiscal gap of more than 7 percent of GDP and Economy Minister Dusan Vujovic will take control of unprofitable enterprises as well as big public companies, cutting off subsidies and trying to find strategic partners for some. Public debt will stabilize at 75 percent of GDP in 2017, Vucic said.

Deficit Narrowing

‘‘It is inevitable to narrow the deficit considering our situation, the size of the debts we have and the interest rates we pay,” Krstic told private TV broadcaster Pink today.

The 10 percent cut in base salaries, beginning on July 1, will save about 20 billion dinars ($239.6 million). The government will try to protect the public sector from too much austerity by stepping up the fight against corruption and organized crime and improving the profitability of public enterprises.

An IMF loan would “provide a much-needed fiscal and financial anchor to balance Serbia’s unsustainable public finances,” UniCredit economist Carlos Ortiz said in a April 24 note to clients.

Serbia hasn’t agreed on a new loan program with the Washington-based lender since 2012, when the IMF suspended a deal as Serbia overshot agreed fiscal targets.

Seeking Trust

“If markets and investors don’t trust us, we won’t be able to recover the economy,” Vucic said.

His plan is to build highways, sell Telekom Srbija AD, find minority partners for parts of power monopoly Elektroprivreda Srbije JP, sell parts of Srbijagas JP gas monopoly and grant concession to a company that will manage the Belgrade airport.

The government will also issue a 4G spectrum license, allow a foreign lottery operator and amend law to sell copper miner RTB Bor, he said.

Vucic’s promise to overhaul public finances and pursue EU membership has overshadowed bad-loan risks, luring investors into Serbian junk-rated bonds.

Non-performing loans stood at 21 percent at the end of 2013 and could grow further as more enterprises go bankrupt and economic growth slows to 1 percent this year from 2.5 percent in 2013, according to central bank forecasts.

The government will set up a company to buy back bad loans from banks. Participating banks will contribute to the new company’s capital together with international financial institutions, he said.

Vučić takes office in Serbia, pledges EU reform (EurActiv/Reuters, 28 April 2014)

Serbia's parliament approved the cabinet of Prime Minister Aleksandar Vučić who took office yesterday (27 April) pledging deep economic reform and a drive to get the country into the European Union by the end of the decade.

In March the 44-year-old Progressive Party (SNS) leader won the strongest popular mandate of any government since the days of Slobodan Milosevic, a leader during the wars of Yugoslavia's demise in the 1990s that left Serbia isolated and bankrupt.

One hundred and ninety-eight deputies in the 250-seat parliament voted for Vučić's 19-member cabinet.

Vučić said entry into the EU would be the government's priority.

"The European Union might not be an ideal community but it is the best community we could join and I hope that Serbia will become its member of the end of this decade," he said.

EU foreign policy chief Catherine Ashton will visit Belgrade today to meet Vučić and address parliament.

The former ultra-nationalist and Milošević-era minister, who converted to the pro-EU cause in 2008, promised root-and-branch reform of the bloated public sector, pension system and labour law, as well as a cut of subsidies to loss-making state firms.

His lead role in a much-publicized fight against crime and corruption, including the arrest and trial of influential Balkan retail tycoon Miroslav Mišković, has vested him with popularity and helped him secure 158 out of 250 seats in the parliament.

"I am ready to undertake the task of implementing reforms as I am convinced that, in case the status quo is maintained, consequences would be detrimental," Vučić told parliament.

He said his government plans to revise the budget by the end of June to keep the consolidated budget gap at 7% of gross domestic product (GDP), after a top advisory body warned the deficit could exceed 8% of GDP.

The measure is key to securing a new precautionary loan deal with the International Monetary Fund (IMF), which could cut Serbia's borrowing costs and reassure investors that the government is committed to reform.

Steps to avoid Greek scenario

Since Serbia ousted Milošević and emerged from international isolation in 2000, successive governments have avoided any attempt to downsize the public sector, which employs nearly 800,000 people.

"One or two years on the same path would lead to the Greek scenario (in Serbia)," Vučić told parliament.

He said the government will cut public-sector salaries by 10% and stop subsidising 153 state-run firms that employ 60,000 people and absorb €750 million of government subsidies a year.

The measure is also a pre-condition the World Bank has set for a disbursement of its budget support loan.

Vučić said the government will most likely sell its stake in telecom operator Telekom Srbija next year, while a minority stake in the power utility Elektroprivreda Srbije (EPS) could be offered for sale in 2016.

To bring more liquidity to the Serbian economy which is forecast to stagnate this year, the government will secure subsidies loans to companies via commercial banks, Vučić said.

Investors will look to changes in bankruptcy and privatisation laws and a new law on planning in construction, promised by mid-July as a reassurance the government will remain on a reform path.

Vučić said his government would aim to achieve savings of €1.5 billion a year to curb the deficit to between 3 and 4 percent of GDP by 2017.

As a signal the government will deliver on promised economic overhaul, Vučić appointed non-partisan experts to run some of the key ministries, including ministry of finance, economy and public administration.

Yale graduate Lazar Krstić remained as finance minister while a former World Bank official, Dusan Vujović, and the ex-central bank governor Kori Udovicki will run economy and public administration ministries respectively.

Vučić also offered several ministerial posts to the Socialists of ex-prime minister Ivica Dačić, who took over as foreign minister.

Barroso congratulates Serbian Prime Minister Vučić on his appointment (New Europe, 28 April 2014)

The President of the European Commission, José Manuel Barroso congratulated Mr Aleksandar Vučić on his appointment as Serbian Prime Minister. On 27 April, President Barroso sent a letter to the Serbian PM saying:

"Dear Prime Minister,

I warmly congratulate you on your appointment as Prime Minister of Serbia at this crucial juncture for the relations between the European Union and Serbia in the first year of accession negotiations. I look forward to working together with you on this demanding endeavour, on the basis of shared values and common goals.

The Serbian people have entrusted you with a clear mandate and a great responsibility to pursue, as a central priority of your government, Serbia’s European integration and the process of reform.

Serbia has already taken important steps on its path towards the European Union and I am confident that under your determined guidance, Serbia will succeed in addressing the key challenges ahead. This concerns notably the good functioning of all democratic institutions, the strengthening of the rule of law and enhancing in practice the respect of all fundamental rights. Serbia is confronted with severe economic difficulties. the European Commission therefore aims to help you in improving economic governance and carrying out the necessary structural reforms that will ensure sufficient growth and the competitiveness of your economy.

Serbia is a key player in South Eastern Europe. I therefore expect it to continue making a central contribution to the region's stability and to regional cooperation and reconciliation in particular. In this context, I invite you to move ahead in your courageous efforts in the normalisation of relations with Pristina. Continued progress in this crucial dialogue will need to go hand in hand with the accession negotiations.

I wish you and your government every success and look forward to our cooperation."

Why Aleksandar Vucic is Serbia's Perfect Choice to Tackle Corruption and Economic Turmoil (International Business Times, by Lianna Brinded, 28 April 2014)

Serbia has history of severe corruption, imbalanced labour markets, and economic turmoil as the financial crisis still reverberates through the Eastern European region.

Furthermore, it goes without saying that it is still trying to move on from the Yugoslav war, which resulted in the genocide of 200,000 Bosnians, and paint itself as a repentant and reformed country so it can join the European Union.

It has not been an easy task to undertake but with the appointment of Alexsandar Vucic as the new Prime Minister, it shows that the country continues to trust tough reforms and austerity measures, to create a more stable country to live in, in the long term.

When I visited Serbia's capital Belgrade in October last year, I was surprised at how the new incumbent government, which was primarily made up of independents and the Serbian Progressive Party (SNS), was making major reforms, that would be immediately unpopular with the public and tycoons, but would be pushed ahead in the interest of shaking off the country's shady legacy.

Vucic, who is the leader of the Serbian Progressive Party (SNS), was the former Serbian deputy Prime Minister and was famed at being the government's work horse that was the spine behind the country's radical reforms.

Making Changes Not Just Pledges

When Vucic came into power he immediately pledged andto put an end to bumper public salaries and bonuses, kept humungous international bailouts at bay, and made a number of major efforts to boost the economy through the private sector.

Furthermore, his unbridled and scathing comments over Serbia's legacy and previous governments made it clear that the country was going to be turned around, no matter how painful his new reforms may be in the short term.

"We are experts in corruption and we're experts in extortion but this is now times gone past," said Vucic.

"We are putting an end to public-owned companies acting as if they are a state within a state and awarding themselves salaries and bonuses while still being subsidised by the government."

Vucic said that, years ago, parents would encourage their children to get a job in a public company, because civil service jobs paid 13% higher salaries and bonuses than the private sector.

"How is this possible? We are changing this. We have 25% unemployment and we have problems with our budget deficit. But how do you think we are going to cut this by 2% when we are wasting money elsewhere? Why, because we're hypocrites," said Vucica at the time toIBTimes UK.

"Experts have said we have to reform our economic policies for over 10 years, but when we try to do it we get stabbed in the back.

"I say, OK, go ahead. Go into the street and tell private companies that they have to pay 30% corporation tax and destroy the economy even more."

Boosting the Economy

Vucic was the driving force behind Serbia's major move away from socialism and, last year, a lot of the public were sceptical and outspoken about how the reforms were going to hit them hard.

Vucic even hit back at critics at the time and said:

"We get criticised for making cuts but where would the critics suggest in taking it? If we increase VAT to 25%, we'll destroy our economy even further.

"People can sit in the coffee shops and tweet about how much they disagree with us, but they have too much time on their hands.

"I am not going to butter your bread. I am not interested in socialist self-management. We need to encourage the private sector and the future of the country lies in capitalism."

However, Vucic clearly got the public's vote after he was officially appointed Prime Minister by President Tomislav Nikolic, following a landslide victory for the SNS in the March parliamentary elections.

He has already reiterated how the revival of the economy, as well as job creation and the continual fight against corruption, will be at the top of his agenda and therefore will help bolster the country's bid to become an EU member by 2020.

"We have the strongest mandate for reform from the Serbian people in years and this is a fantastic opportunity to build a better future because the most important partnership is between the people and the government," said Vucic.

"We know the road ahead will not always be easy but with the necessary reforms, Serbia can once again become a regional champion of industry and agriculture as well as an outstanding destination for foreign investment."

"I look forward to working with my new Cabinet colleagues to realise our vision and make real strides towards a stronger economy and better opportunities for all."

Vucic already took some controversial steps to make this happen.

Last year, he was a key player in appointing Lazar Krstic, who is only 29 years' old, as Serbia's finance minister on his background as an analyst at one of the world's largest research groups.

The political gamble paid off as Krstic's 'four main priorities' to stabilise Serbia's economy and bring about financial growth has been gathered strong support from global leaders and the public.

The Reforms

Serbia is located at the crossroads of Central and South-Eastern Europe with a population of 7.12 million and became a stand-alone sovereign republic in the summer of 2006.

Serbia is the biggest and most diversified economy in the region with a GDP of €35.28bn.

Serbia has one of the most attractive tax systems in Europe, as workers only pay 10% tax on their salary while corporate profit tax stands at 15%, and value-added-tax at 20%.

However, around a quarter of the population remains unemployed and GDP growth has remained negative since the credit crisis.

Prior to 2008, Serbia recorded an average of 4% growth annually.

The current government is pushing for a shift away from predominantly state-owned enterprises to mass privatisation in a bid to bolster more foreign direct investment by fostering a better business environment.

Vucic's push to move the country away from socialism has led to around 60,000 public sector workers potentially losing their jobs over the next few months unless 179 state-owned companies manage to partner with foreign investors by June 2014.

While the government is confident that the groups will find these foreign investors, it has meant that Serbia is being serious about making changes and not just pledges, making it a lot more stable and attractive for overseas entities to invest in.

Cracking Down on Corruption

Meanwhile, as part of the Serbia's corruption legacy, Vucic and his right hand people have been making defiant strides against the country's tycoons that have clearly evaded taxes or operate in a 'grey economy'.

The 'grey economy' is often rife in emerging markets where smaller businesses continue to trade in legal goods but do not declare or pay taxes on their trade or who they employ. Services conducted in the grey economy are usually paid 'cash-in-hand'.

The Serbian government has highlighted how tax evasion in this area of the economy directly hurts the country's balance sheet and only exacerbates public debt.

In May 2013, Delta Holding owner Miroslav Miskovic, his son Marko Miskovic and Nibens Group owner Milo Djuraskovic were indicted by Serbia's Special Prosecutor's Office for Organised Crime over allegations of tax evasion and abuse of office in a case concerning road maintenance companies.

Prosecutors allege that Miroslav, Marko Miskovic, and Djuraskovic illegally obtained more that €30m.

This wasn't just a coup for the government's reform strategy but it was a clear message that Serbia was changing for good.

Detained Kosovo Serb Leader Appeals for Release (BIRN, by Marija Ristic, Edona Peci, 28 April 2014)

Kosovo Serb leader Oliver Ivanovic, held on suspicion of war crimes and murder during and after the 1990s conflict, appealed against a decision to extend his custody for two months.

Ivanovic’s lawyer Nebojsa Vlajic said that he filed an appeal to the Basic Court in Mitrovica on Monday after it ruled to extend the Serb politician’s detention on remand until June 27.

“The appeal was filed early this morning, but we don’t know when the judges will decide on our appeal,” Vlajic told BIRN.

The court in Mitrovica ruled on Friday that “the risk of flight and the risk that the defendant might influence witnesses if released continued to exist and that there are no less severe measures that could be imposed at this time”.

Ivanovic’s political party, Serbia, Democracy, Justice, condemned the decision, accusing the EU rule-of-law mission in Kosovo, EULEX, and the Pristina authorities of being biased against Serbs.

“By extending custody for [party] leader Oliver Ivanovic for two months, EULEX and its representatives in the area of the rule of law have confirmed one more time that there is no justice or respect of basic human rights when Serbs are involved,” the party said in a statement.

The party also complained that the court ruled there was a risk that Ivanovic might flee despite the fact that the Serbian government has provided guarantees that he will not.

It added that the Pristina authorities had also turned a blind eye to a petition for Ivanovic’s release backed by the Belgrade government, which has so far been signed by some 10,000 Kosovo Serbs, it claimed.

Ivanovic was detained in January “as an alleged suspect in an ongoing war crimes investigation”, according to the EU rule-of-law mission in Kosovo, EULEX, and is also suspected of involvement in violence in 2000 in which ten Kosovo Albanians were killed and many more wounded and driven from their homes.

At the time, he was a leading "Bridge Watcher", one of the hard-line Serbs who patrolled the main bridge in Mitrovica dividing the town into Serbian and Albanian sectors.

His arrest has caused discontent among Serbs in the town, who have taken to the streets in protest.

Bosnian Serb Party Demands Broadcasting Regulator Post (BIRN, by Elvira M. Jukic, 28 April 2014)

A Bosnian Serb party said the new chief of the country's Communications Regulatory Agency should be a Serb, but the minister responsible insisted that ethnicity should not be an issue.

Elvira M. Jukic BIRN Sarajevo

A row erupted after the Alliance of Independent Social Democrats, SNSD, a party from Bosnia’s Serb-led entity, Republika Srpska, insisted that the next head of the agency that regulates the country’s broadcasting and telecommunications sectors and allocates frequencies should be a Serb.

“Due to an earlier party deal on the principle of national [ethnic] rotation in institutions of Bosnia and Herzegovina, a candidate from the Bosniak people should not be elected [as the agency’s chief],” said Dusanka Majkic of the SNSD.

The SNSD said it had made the deal with the Social Democratic Party, SDP, of which Bosnia’s Communications Minister Damir Hadzic is a member.

But Hadzic said that ethnicity should play no role in the appointment.

“No reservations – especially for any people’s representative,” he said, explaining that he wanted an expert to be given the chief regulator’s job and was willing to delay the appointment if necessary.

“If some appointments have to be stopped, like many things halted in the Council of Ministers over disagreements from ministers from Republika Srpska, we will keep to that trend and we will not make any appointments,” Hadzic said.

The opposition in Republika Srpska, the Serb Democratic Party, SDS, said that the SNSD’s statement was an attempt to assert control over the media by the entity’s President Milorad Dodik and his party.

“Dodik is not hiding he wants to put the CRA [Communications Regulatory Agency] under control. That represents the additional possibility of pressure on media,” said SDS leader Mladen Bosic.

Dodik “holds the public broadcaster in Republika Srpska under absolute control and is bothered by independent media”, alleged Bosic.

“If he installs his man [at the CRA], there is nothing left of the CRA’s independence,” he added.

The current director of the CRA, Kemal Huseinovic, has held the position for more than ten years due to the lack of agreement among the ruling parties about who should take over the position. The term in office is officially supposed to be four years.

Macedonia Ruling Party Triumphs in Disputed Polls (BIRN, by Sinisa Jakov Marusic, 28 April 2014)

The ruling VMRO DPMNE party and its incumbent President Gjorge Ivanov won crushing victories in Sunday’s vote but the opposition alleged violations and refused to recognise the elections.

Macedonia's centre-right VMRO DPMNE comfortably won a fourth term in office and Ivanov secured the presidency for the second time, but the opposition Social Democrats, SDSM, claimed that the snap parliamentary polls and second-round presidential elections were fraudulent, setting the scene for fresh political discord in the country.
The State Electoral Commission said that after almost 100 per cent of ballots were counted, VMRO DPMNE won over 480,000 votes and SDSM won 284,000 – the widest margin in favour of Prime Minister Nikola Gruevski’s party since it first came to power in 2006.
But although the ruling party insisted the vote was democratic, the Social Democrats alleged serious violations immediately after polls closed on Sunday evening.
“Macedonian citizens have been duped and the elections have been stolen. The government dared to conduct unfair, non-democratic and uncivilized elections,” SDSM leader Zoran Zaev told a press conference.
Zaev alleged “massive and public buying of votes in the presence and with the assistance of the police”. He said his party wanted a caretaker government to be formed and new presidential and parliamentary elections called.
The ruling party however dismissed reports by local election observers who documented various irregularities as a scenario concocted by the opposition as an ‘alibi’ for their poor results.
“I regret that SDSM has decided to negate the will of the people and work directly against the interests of the country and to benefit those that do not wish this country well,” Gruevski said in his victory speech.
“I hope that they will sleep on it and decide to act in accordance with the interests of this country,” he added.
In the presidential election run-off, incumbent Ivanov won a second term with the support of 534,000 voters, while his SDSM opponent Stevo Pendarovski took 398,000 votes.
The turnout for the early general election was 64 per cent while that for the presidential vote was 54.33 per cent, according to the State Electoral Commission, SEC.
In the ethnic Albanian bloc, the junior partner in the outgoing government, the Democratic Union for Integration, DUI, won most votes as expected and is likely to remain in coalition with VMRO. DUI won some 153,000 votes, trouncing its main rival, the Democratic Party of Albanians, DPA, which won just over 66,000 votes.
Albanians make up a quarter of Macedonia’s population and it has become an unwritten rule that the winner in this bloc is offered a place in the government.

Contradicting the SDSM’s claims, the SEC and the police said that Sunday’s voting passed off in a calm and democratic atmosphere with only minor irregularities reported.
“We have not received reports of any incidents. There are few occasions in which voters complained they were not in the electoral rolls but this is not a massive thing. We have no data about possible family voting, and political propaganda at polling stations may have happened in few places,” said Subhi Jakupi, the vice-president of the SEC.
Gruevski also praised the conduct of the polls.
"So far the elections are ongoing in a peaceful and democratic atmosphere and I hope that it will be like that until the end of the day and that Macedonia will win in these elections," he told reporters after casting his ballot in Skopje.
But domestic observers from local NGOs MOST and CIVIL said they had registered cases of group and family voting in towns and villages across the country, as well as political propaganda at polling stations and voting by minors.
Among the allegations of suspected violations reported by local observers, monitors from CIVIL said they spotted several cases in which people were brought to polling stations by vans and buses. It said that a number of voters from Pustec in Albania who voted in advance as members of the diaspora had also cast extra ballots on polling day.
CIVIL also said it had seen members of the ruling party and former MPs making public calls to Roma citizens to vote for VMRO DPMNE, and had registered yet more cases of problems with the electoral roll in which people who came to vote were not on the list.
The SDSM accused the ruling party of being responsible for the violations.

"We have photos and videos that people are paid to vote for VMRO-DPMNE, they are pressurising voters, [conducting] family voting, [applying] pressures on the administration and users of social benefits," Marinela Tuseva of the SDSM told a press conference.
According to the results published so far by the SEC, the ruling party will have 61 legislators in the 123-seat parliament. The coalition it led in the outgoing legislature had 53 MPs.
The opposition led by SDSM is now set to have 34 MPs, fewer than after the 2011 early general election when it won 42 parliamentary seats.
The DUI will have 19 legislators and the DPA seven. The newly-formed Citizen’s Option for Macedonia, GROM, and the National Democratic Party, NDP, will have one MP each.

International observers from the OSCE/ODIHR election monitoring mission will deliver their preliminary assessment of the elections later on Monday.