LOCAL PRESS

 

Dacic-Lajcak press conference (Politika/Radio Serbia)

Reforms and EU integrations are the only true course for Serbia, Serbian Foreign Minister Ivica Dacic and his Slovakian counterpart Miroslav Lajcak told a press conference in Belgrade.

Dacic said that Slovakia strongly and continuously supported Serbia’s EU integrations and thanked Lajcak for the principled support of Slovakia to Serbia’s stands on Kosovo and Metohija. It is Serbia’s stand that a solution is reached through dialogue and necessary compromise, which would be acceptable for both sides, said Dacic. He informed the press that, at Slovakia’s initiative, a meeting of the member-states of the Visegrad Group and Western Balkans countries would be held in autumn and that Serbia would take an active part in that event. Slovakia will help Serbia on its EU path by conveying its own experience from that process and offering expert assistance, said Lajcak. He said that Serbia’s image in Europe, thanks to the government and institutions, had improved considerably and that now it was time for citizens to feel that and that economic reforms and EU integrations were the only way to achieve that goal. The parliamentary elections have confirmed that citizens support such course, said Lajcak.

The two officials expressed the view that the office of an EU enlargement commissioner will not be revoked. Lajcak emphasized that the EU enlargement policy has been proclaimed one of the most successful policies and stressed that such a policy needed further leadership. He would not comment, however, on a question by the press whether he will assume the office of EU representative for foreign affairs.

Dacic and Lajcak agreed that the bilateral relations were very good and assessed there was room for the level of economic cooperation to reach the high level of political relations. Dacic said that the scope of the foreign trade cooperation had amounted to half a billion euros in 2013 and added he expected it to be considerably increased. He also said that the countries that have not recognized independence of Kosovo should have some privileges in the field of economic issues.

 

Drecun: Serbs should take part in Kosovo elections with single list (RTS)

The Chair of the parliamentary Committee for Kosovo and Metohija Milovan Drecun has stated that Serbs should take part in the early parliamentary elections in Kosovo and Metohija with a single list since that would be the best way to protect Serb interests. He told reporters in the parliament on Friday that the government should voice its stance as soon as possible whether Serbs should take part in these elections. “I believe that this is necessary, and it should be done with a single list so that Serbs could win the maximum number of seats given that they were left short of reserved seats in the Kosovo Assembly,” Drecun said. He stated that the stand of the Serb parties in Kosovo and Metohija has changed as they have recognized the need for concerted actions and consideration of the stands of official Belgrade. “All parties which have considerable support of Serbs should be on the single list, and this would be a guarantee that the parties would not be abused by Albanian political parties aiming to impose certain unilateral solution against the interest of the Serb people,” Drecun said. He stated that a decision on participation in the elections should be made as soon as possible, adding that the deadlines for preparation and participation in the elections are very short. Drecun, who is a member of the Serbian Progressive Party (SNS), was reelected committee chair at Friday’s session of the parliamentary Committee for Kosovo and Metohija, while Goran Bogdanovic, member of the New Democratic Party, was named his deputy.

 

Pavicevic calls Kosovo Serbs to be united and act together (RTS)

Belgrade liaison officer with the EU mission in Pristina Dejan Pavicevic said that Serbs must be united and act jointly at the early elections in Kosovo and Metohija on 8 June. We have good success with the creation of local institutions and I expect that, at the central level, something will be done that will increase Serb influence in Kosovo, he told Radio and Television of Serbia (RTS). He said little time was left pending the elections and assessed that as one of the political maneuvers of Pristina aimed at creating a climate to prevent Serbs to participate in the elections together.

 

Kosovo Serb party leaders reach agreement on joint participation in elections (Novosti)

The Serb parties in Kosovo and Metohija reached yesterday agreement on joint participation in the elections in the province, while the final list of MP candidates will be drafted and submitted by Friday. Novosti learns that the parties will take part under the name “Serb list” (Srpska lista) and that it will also include the representatives of displaced persons. The leader of the Serbian Civic Initiative Vladeta Kostic has confirmed to Novosti that this party has made initial agreement with the Independent Liberal Party (SLS) and the SDP Civic Initiative Oliver Ivanovic, and the New Democratic Party (NDS), led by Goran Bogdanovic in the province, should also join this bloc. Deputy president of the SDP Civic Initiative Ksenija Bozovic tells Novosti that talks are underway as to whether this party’s leader Oliver Ivanovic, who is in detention at the moment, will be the MP candidate on the joint list. Kostic adds that they have nothing against anyone who can contribute to a larger number of votes, including Ivanovic. According to Bogdanovic, the NDS is also ready to join the creation of the broad Serb front: “Large representation of Serb parties in the Kosovo Assembly is the best way of representing the interests of our citizens and state in the province,” Bogdanovic said. With this joint representation, the Serb parties will try to win 35 mandates, i.e. more than one-fourth of 120 MP seats that the Kosovo Assembly has. According to Nenad Rikalo, member of the provincial Central Election Commission, it is possible to win such a large number of seats with the help of a significant electoral reservoir from Serbia proper, i.e. votes of the displaced persons. “If the Serbs have around 70,000 votes at the parliamentary elections in Kosovo, they can hope to have 20 or more MPs. If one adds to that the number of displaced persons on the territory of Serbia, the maximum that we could win is 35 seats,” said Rikalo. He pointed out that the deadline for the registration of displaced Serbs expires on 19 May and that citizens need to register as soon as possible. Estimates are that around 200,000 Kosovo Serbs with the right to vote reside in Serbia proper.

 

Constitutional Court leaves room to daily politics (Politika)

With the decision that the decree on the special manner of recognizing diplomas from Kosovo and Metohija, the Serbian Constitutional Court has brought itself into a compromise treatment in its work for the third time. Namely, the Serbian Constitutional Court passed a decision last week on the non-constitutionality of one government decree, just as the previous one for the decrees on registries (28 September 2013) and the cadaster (26 February) for the territory of Kosovo and Metohija, while it still needs to pass a decision on the constitutionality of the decision on the integrated management of administrative crossings/border with Kosovo and Metohija. Even though the Serbian Constitutional Court, after the delay in the decision-making, has started working by passing these three decisions, which has stemmed from the agreement conducted by the heads of the Belgrade and Pristina teams Borislav Stefanovic and Edita Tahiri and which were adopted by the parliament and government, they have not contributed a great deal to defining the legal situation. That is because in the case of all three decisions of this court, despite the fact that this institution considers these decrees to be violating the Constitution, their implementation is not being suspended and they remain in force another six months, when the decision will be published in the “Official Gazette” and become final. Until then, these decisions will be implemented, and once they remain in force there will be two legal options: for the Brussels decrees to be harmonized with the Constitution or for the Constitution to be adapted to these decrees. There is also a third, political option – that none of this happens, just as nothing happened with the decree on the non-constitutionality that refers to registries that was supposed to come into force in March. The answer to such legal inconsistency was not given by the judges of the Constitutional Court, but politicians. Serbian Minister without Portfolio in charge of EU integration Jadranka Joksimovic, commenting the latest decision on the non-constitutionality of the decree on diplomas from Kosovo and Metohija, says that this issue will be resolved in the course of the Belgrade-Pristina negotiations in Brussels, and that the most important thing is that Serbia remains committed to the dialogue. The judges of the Serbian Constitutional Court have not stated their opinion on their adherence to the Constitution in this case, without giving an explanation as to why aren’t they suspending the implementation of the non-constitutional decrees. Responding to the same question, Borislav Stefanovic tells Politika that the authorities probably want this to be completed and without obstacles in the affairs it conducts with Pristina in Brussels. “Whereby these decrees are obviously small and insignificant on the scale of agreements reached by Vucic and Dacic in Brussels,” says the person who reached and initialed these agreements. Professor of Constitutional law at the Faulty of Law Vladan Petrov opines that the latest decree on diplomas, just as the previous decrees, is non-constitutional in its very essence because it is a decree for implementing a political agreement and our legal order doesn’t recognize at all such a decree. Asked by Politika what can be achieved with the postponing, Petrov says that they are probably waiting for the passing of a law on essential autonomy of Kosovo and Metohija, whereby, the government opines, these solutions would be encompassed and “covered”. But, he doesn’t believe in the passing of a law on essential autonomy of Kosovo and Metohija, which would be passed according to the procedure for amending the Constitution, “because this law has long lost its sense”. Petrov says that, even if the constitutional law on Kosovo and Metohija would be under procedure (and he doesn’t have information that it is), it could not have the task of erasing the preamble of the Constitution (where it stands that the Autonomous Province of Kosovo and Metohija is part of Serbia) and enable further exclusion of Kosovo and Metohija from Serbia, but to define in content and operationalize the notion of essential autonomy that the Constitutional guarantees to Kosovo and Metohija. “In any case, the decrees of the Brussels agreement cannot become constitutional because they can’t be convalidated, and after all, the Constitutional Court established that there are not in accordance with the Constitution and there is no dilemma here,” says Petrov. Asked who will be responsible for the fact that these decrees are implemented, even though they are not constitutional, Petrov says: “Even if the Constitutional Court had immediately passed decisions on suspending implementation, this has already led to the factual state that will be unchangeable in the foreseeable future”. If the law on essential autonomy of Kosovo and Metohija is passed and really defines the autonomy of the southern province, Pristina, Belgrade and the EU will behave just as in the case of “two Germanies”, i.e. the principle proposed at the Vienna negotiations by the German diplomat Wolfgang Ischinger. Simply said, this would mean that Serbia considers the Union of Serb Municipalities part of its legal system, the Pristina authorities considers it part of their own, and the EU accepts both views. But, this possibility seems to have already escaped the Serbian negotiators in Brussels.

 

REGIONAL PRESS

 

Dodik: Inzko’s report full of stereotypes (Oslobodjenje)

For the President of the Republika Ruska (RS) Milorad Dodik the report by the High Representative Valentin Inzko to the UN Security Council “is full of principled phrases and stereotypes, which were also present in the past.” “Suggesting that in B&H eight years of stoppages is one of the slogans some promoted in Sarajevo, allegedly when Dodik came to power, but I am pleased that this is so in B&H, which was built before me, which is unsustainable and damaging to the RS,” said Dodik. He also claims that the HR in his report confirms the RS project has absolutely succeeded. “We have done everything in accordance with the B&H Constitution and in accordance with the Dayton Accord, and Inzko, presenting with a false situation in B&H, takes a platitude that says that politicians haven’t found a solution for Sejdic-Finci, and he knows well that the RS offered this solution and that the problem is in the Federation,” the entity president said in a statement to reporters in Visegrad, but Inzko does not have the forces to stress this, but he always had it when in the RS there was some stoppage. He accused Inzko of noting in his report “the lie in which it is claimed that B&H citizens took to the streets to protest the government, because in the RS citizens didn’t participate in this.” Therefore, he added, the RS gave its vies on the situation in its report to the UN Security Council.

 

Distance from Dodik (Danas)

The key reason why the authorities in Sarajevo are viewing favorably Serbian Prime Minister Aleksandar Vucic is that the Republika Srpska (RS) President Milorad Dodik doesn’t enjoy the support of the Serbian authorities anymore, as was the case during the rule of Boris Tadic and his administration. On the eve of Vucic’s visit to Sarajevo, Danas’ interlocutors from Belgrade and Sarajevo point out that this visit serves to discourage Dodik’s intentions and statements on the referendum and need of secession of the RS, in light of the conditions posed in the process of Serbia’s EU integration. That topic will certainly be on the agenda of the Serbian Prime Minister and his interlocutors in Sarajevo. Prime Minister Vucic will take part tomorrow in the Business Forum in Sarajevo at the invitation of the Chair of the B&H Council of Ministers Vjekoslav Bevanda. He was first invited by the Chair of the B&H Presidency Bakir Izetbegovic who assessed on this occasion that Vucic is a symbol of “a positive change of politics” and that, thanks to him, Serbia has matured. On the other side, in his expose, the Serbian Prime Minister noted that cooperation in the region is a priority and one of the goals, announcing that this is why his first visit as the prime minister will be to Sarajevo. “That visit is a very positive step and it has been assessed as such, primarily by the EU. The visit is also proof of a new regional policy conducted by this government that wants to clarify the disputable points in relations between the two countries, all in the context of conditions set in the EU integration process,” foreign political analyst Vatroslav Vekaric tells Danas. He stresses that at issue is a realistic step since the current government is demonstrating that it respects the current state-of-affairs. “There is no more emotional exaggeration towards the RS, so we can say that the purpose of this visit is to discourage Dodik’s adventurism, which is constantly hinting at a referendum on secession,” says Vekaric. According to him, Dodik should not hope for Belgrade’s euphoric support on the eve of the elections in B&H to be held in October. “Vucic’s stand towards Dodik will be colder and more measured,” concludes Vekaric. Senad Pecanin, political analyst from Sarajevo, points out that it is certain that “at least at the symbolic level, Dodik and his destructive policy are not enjoying support anymore as was the case during the rule of Tadic and his administration.” “That is the key reason why the authorities in Sarajevo are viewing favorably Vucic. It is interesting that most of the B&H citizens are viewing Vucic in the same way as most of his voters in Serbia, regardless of nationality, wishing someone here who would promise what Vucic has promised Serbian citizens. On the other side, as much as Vucic is sincerely interested in Serbia’s EU integration he will have to equally distance himself from Dodik and his policy,” concludes Pecanin.

 

Bilingual inscription broken again in Vukovar (Beta/Tanjug)

An unknown person broke a bilingual inscription, in the Latin and Cyrillic scripts, on the building of the Croatian Employment Bureau in Vukovar, the Vukovar-Srem police announced and are searching for the perpetrator. To date there have been some thirty cases of damage or destruction of Cyrillic inscriptions in Vukovar, Croatia.

 

INTERNATIONAL PRESS

 

Serbia’s EU path is not a ‘walk in the park’ (EurActiv, 9 May 2014)

Serbia has to carry out accession negotiations in parallel with the normalisation of relations with its former province, Kosovo. This is not an easy thing, Corina Stratulat of the European Policy Centre (EPC), told EurActiv Serbia in an exclusive interview.

Corina Stratulat is Policy Analyst at the European Policy Centre (EPC), where she works in the European Politics and Institutions Programme and coordinates the activities of the Balkans Forum. She spoke to Smiljana Vukojicic Obradovic.

Accession procedures are becoming more and more strict. Did the expectations of the candidates change?

As their predecessors, the new aspirant countries in the Balkans are also expected to become consolidated democracies, functioning market economies and to acquire the ability to implement the acquis. This has not changed.

What is different, however, is that in order to be judged in compliance with these criteria, the standards have been raised compared to the past, and the methodology for applying and monitoring progress on the conditionality has become more exacting.

Setting the bar higher for the Balkan aspirants was done with the explicit intention to ensure that their preparation for accession is thorough, sustainable and of mutual benefit. That is, putting the countries in a position where they can take full advantage of EU membership as well as guaranteeing that they play a constructive and positive role once inside the 'club'.

In other words, the 'ultimate goal' or goals have not changed. But the path towards these goals and the yardsticks for progress towards these goals have been improved and upgraded in the case of the Balkan countries for the reasons I have just outlined.

What do you consider as main challenges for Serbia on its EU path?

Serbia has to carry out the accession negotiations in tandem with the normalisation of relations with Kosovo. This is no walk in the park, and it will be a difficult balancing act between the two sets of issues in order to make sure that both are given equal consideration and are properly addressed.

So far, the impression has been that the Belgrade-Pristina dialogue took precedence over any other considerations, which did not necessarily bode well for the fulfillment of the Copenhagen criteria.

The focus of reform in Serbia has to substantially broaden now, in this new phase of the country's EU integration process.

What is the prevailing attitude regarding EU enlargement?

In the context of the ongoing crisis, enlargement has not featured prominently on the policy agenda or priority list in the member states. If anything, enlargement lent itself more easily to politicisation in the political arena at national level, where parties with an overall populist – Eurosceptic - anti-immigration discourse could harness social discontent, to strengthen European citizens' uneasiness about the potential consequences of further EU widening.

Moreover, in view of lessons learned from previous enlargement rounds, the general approach towards enlargement is now more rigorous, especially with regard to good governance criteria, and more cautious, emphasising more principle over expediency.

Ahead of the EU elections, there was much talk about the rise of support to the parties of the right. Is this a threat for the enlargement and building stronger ties with the third countries and regions?

Regarding the warning of an increase in support for Eurosceptic parties in the next EP, I think it remains unclear what we qualify as a Eurosceptic 'tsunami' in concrete numbers.

Based on previous experience and research, we know that these type of parties or politicians are a very heterogeneous bunch, which struggle to forge alliances among themselves, as well as with mainstream parties, and which are more interested in publicity and visibility rather than policymaking. Thus, the implications of the outcome of the next EP vote for European decision making are still open to speculation.

And if we speak of enlargement, we need to remember that key decisions on this dossier remain the prerogative of the member states in the Council, with the role of the EP being limited on this policy. In this sense, enlargement can be said to be more dependent on politics in the member states, where 'enlargement fatigue' persists, for that matter, than on political dynamics in the European Parliament.

The crisis in Ukraine raised the question about the extent to which the EU is ready to confront Russia. Is the EU ready to sacrifice economic interests and risk another "cold war" for defending right of Ukraine? Is the role of the EU as a leader on the international scene at risk?

The Ukraine crisis has exposed divisions among the member states with regard to Russia, but also deep cracks in the EU's external 'strategy'.

It is not yet clear whether the member states will move beyond a reactive and ad hoc response, but the necessity to do so will not go away, especially if the EU has the ambitions of a global player. Russia's aggression has not been only against Ukraine, but also against EU's values-principles-laws-approaches-way of thinking. This crisis has shown that the European or international 'rules of the game' can and will be challenged in a 'maverick' and even 'diabolical' manner - which should serve as a 'wakeup call' for the EU.

 

Hungary eager to reconcile with Serbia (New Europe, 11 May 2014)

Hungary’s Foreign Affairs State Secretary Zsolt Nemeth told a recent conference on Hungarian-Serbian relations that the two countries are reconciling past differences.

Addressing the conference, Nemeth said this is a “significant” process. “We have relations with neighbours, where the issue of collective guilt has not been surmounted,” he explained.

According to Nemeth, Hungary and Serbia have been working towards reconciliation since 2010 with the help of the two countries’ top brass.

For instance, the presidents of both countries, Janos Ader (Hungary) and Tomislav Nikolic (Serbia), recently paid tribute to those killed before and during WWII in Curug Vojvodina.

Another factor reinforcing the friendly relations between Hungary and Serbia is the Alliance of Vojvodina Hungarians (VMSZ), which is part of the new Serbian government.

“The time has come for autonomy to demonstrate what it is capable of in practice, Istvan Pasztor, chairman of VMSZ, was quoted as saying. “Instead of creating tension in Serbian-Hungarian cohabitation, autonomy can function as a framework for it.”

Pasztor also stressed the leadership of Hungarian Serbs is making sure bilateral relations unfold with real intentions rather than mere words.

 

Analyst: perceptions about enlargement differ in ‘older EU’ (EurActiv, 9 May 2014)

The perception of enlargement varies widely in the older members. Germany and Spain are globally satisfied, but there are specific difficulties in countries like France or the UK, where people insist more on the negative consequences of the recent enlargement, Yves Bertoncini told EurActiv Serbia in a recent interview.

Yves Bertoncini is the director of the Paris-based Notre Europe – Jacques Delors Institute. He spoke to EurActiv Serbia’s Smiljana Vukojicic Obradovic.

On 1 May, the EU marked the tenth anniversary of the so-called big enlargement. What is your opinion on the impact of the enlargement on integration within the EU?

This big enlargement has had no major negative effects from an institutional point of view. It has not blocked the functioning of the EU, and has only slightly increased political heterogeneity within the EU, as the UK was there before.

From an economic and social point of view, this enlargement has intensified the internal competition between EU countries, and has produced strikingly negative effects (especially as regards relocations) as well as noticeable gains for the older member states (in terms of exports and stability). It has also led to a real convergence move, at the micro-economic and macro-economic levels.

Finally, the big enlargement has not really damaged the diplomatic consistence of the EU, contrary to the fears expressed at the occasion of the 2003 Iraq War debate.

The Ukraine crisis reminds all the EU countries that unity makes force when they are confronted by international challenges and threats. In this regard, the enlargement is a useful contribution, given the fact that the EU28 accounts for only 7% of the world population.

Would the EU today admit those countries as members under the same conditions like 10 years before?

The present approach is less emotional than during the immediate post-Cold War period.

Above all, the EU and national authorities have drawn lessons from the recent crises and the failures they have observed in countries like Greece.

It has become more difficult to join the Euro area (see Latvia's two attempts), the Schengen Area (see Bulgaria and Romania) and even the EU at large. There is a stronger insistence not only on the commitments, but on their real application, on the basis of the rule of law, and with the support of effective public authorities.

The positive consequence will be that the new members of the EU will definitely be ready to join at the end of their negotiations, with fewer negative side effects right after their accession.

What is the prevailing sentiment when it comes to enlargement?

The perception of enlargement varies widely according to the countries. All the countries which have joined the EU during the last decade are globally satisfied. Many of those who have welcomed them are globally satisfied as well (Germany, Spain, etc.).

There are specific difficulties in countries like France or the UK, where people insist more on the negative consequences of the recent enlargement, mainly in terms of social competition or free movement of people. This can naturally influence the perception of future enlargements, even if the negotiations with countries of the former Yugoslavia seem to be widely understood and accepted in principle.

The Ukraine crisis raised the question about the extent to which the EU is ready to confront Russia or eventually risk another "cold war" for defending Ukraine. Is the role of the EU as a leader on the international scene at risk?

Europe is a continent with two major pillars, namely the EU and Russia, whose coexistence is absolutely indispensable for the stability and prosperity of all of us. It seems wise to consider that countries like Ukraine, Georgia or Armenia should find their place in between the EU and Russia, without joining the one or the other.

Having said this, there is clear asymmetry between the EU and Russia in the Ukraine crisis. The former is reluctant to use military force, because its very nature is to promote the peaceful settlement of disputes. The latter is more ready to support the use of force, including via unofficial soldiers. The EU has already adopted political and financial sanctions vis-a-vis special targets and could be lead to adopt economic sanctions if Vladimir Putin doesn't lower the pressure put on the Kiev interim authorities, including in the perspective of the 25 May elections.

Some European countries are probably reluctant to adopt such sanctions, which will affect both the EU and Russia, but it's much more doable for them than sending troops.

The international credibility of the EU is clearly put at test in such a crisis, as it was the case in the post-Yugoslavia's one in the 1990s. And the attitude of the USA will once more be a key element in the resolution of the ongoing crisis.

The rise of the right political parties in the EU is much in focus. Is it a real threat to EU values?

There is indeed a rise of radical parties in Europe, with the radical left but also and mainly at the right. The extreme right parties can indeed threat the EU values, especially the spirit of reconciliation, the non-discrimination principle and the free movement of people.

There is then a need to fight against them, but also a need not to give these parties too much importance in the political game, given the fact that they should remain rather marginal in terms of seats in the majority of national parliaments, and even more at the European Parliament.

How do you assess the current situation in Europe in terms of further integration? Is there enough political will for further strengthening ties between EU countries? What are the main challenges?

There is now a clear twofold dimension as regards further European integration. In the recent period, it has made significant progress in the framework of the Euro Area, for example as regards the bail-out programmes and the creation of a banking union. But such further integration can also be undertaken at the EU28 level, for example, to address energy-climate or migration challenges.

 

Macedonia opposition skips president's swearing-in (The Associated Press, 12 May 2014)

SKOPJE — Macedonia's center-left opposition has refused to attend a ceremony in parliament to swear in President Gjorge Ivanov for a second five-year term, insisting that the country should hold a new election.

The country's conservative VMRO-DPMNE party won landslide victories last month in both the general and the presidential elections. The opposition Social Democrats, however, say the ruling party abused its state power during the campaign and have refused to take up their seats in parliament.

An ethnic Albanian minority party, DUI, also decided not to attend Monday's ceremony, having fallen out with the conservatives over the presidential vote.

In his first action this term, Ivanov is expected to call on conservative leader Nikola Gruevski to form a new government within three weeks.

 

Unemployment in Bosnia Reaches Alarming Levels in Q1 2014 (novinite.com, 9 May 2014)

Unemployment rates in Bosnia and Herzegovina have reached 44.5% by end-March, with 555,452 people registered in the local employment centers.

Meanwhile, a total of 5,440 people became unemployed, while businesses opened just 2,999 job positions in Q1 of 2014, Bulgarian BGNES news agency reports.

The highest demand is for skilled employees – 34.59%, followed by unskilled workers – 27.88% and people with secondary education -26.26%.

Some 8,383 people were able to find job in March, however the number of unemployed relying on welfare has increased on an annual basis.

Unemployment rates are expected to drop in the summer due to the seasonal jobs mainly in hospitality.

In February, thousands of people gathered across the country in protest against economic stagnation, unemployment and a perceived massive corruption among political elites.

 

IMF says Bosnia can continue to count on EUR 246 million loan (Dalje.com, 9 May 2014)

Bosnia and Herzegovina can continue to count on a EUR 246 million loan from the International Monetary Fund (IMF) approved through the country's stand-by arrangement on condition that it stabilises its public finances, the head of the IMF office in Sarajevo, Ruben Atoyan, was cited by the Sarajevo-based Dnevni Avaz daily as saying on Friday.

At the end of March, Bosnia's debt towards the IMF amounted to EUR 435.7 million, slightly more than seven per cent of the country's public debt.

There will be no further payments from the stand-by deal signed in 2012 until Bosnian parliament amends laws to equate excise taxes on raw tobacco and tobacco products, Atoyan said.

This is about regulating one important source of public income which is important for the stabilisation of entity budgets. Under the provisions of the stand-by arrangement, this was supposed to be carried out by the end of 2013 and it is part of the process of adjustment to the tax policy in EU member states.

Excise tax on fine-cut tobacco or rolling tobacco is significantly lower than that on cigarettes, Atoyan said.

The IMF believes this only encourages the illegal production of self-made cigarettes and increases the consumption of cheap and more damaging fine-cut tobacco, Atoyan said.

The unemployment rate in Bosnia is at 27%.