Serbia makes progress with last year’s recommendations from Foreign Investors Council

The Foreign Investors Council (FIC) has provided this year’s assessment of the business and investment climate in Serbia, along with recommendations for its improvement, noting that progress has been made in just 28% of last year’s 383 recommendations.

The Council of Foreign Investors is not concerned about “instability” and is aware of the challenges Serbia faces, political and economic but assessed that there are things that can be done regardless of circumstances.

“In extremely challenging conditions due to unpredictable global events and conflicts in Eastern Europe and the Middle East, high inflation, despite low growth in the EU, Serbia has managed to protect its economy. I am pleased that the Government of Serbia has made progress in more than 100 recommendations, and areas that require attention have been identified. We have initiated many things, from economic processes and energy companies to improving laws…” Mining and Energy Minister Dubravka Đedović Handanović told Euractiv.

“Foreign companies investing €44 billion and employing more than 115,000 people, have prepared concrete recommendations on how to improve the business and investment climate. We are ready to contribute fully through our joint working body – the Working Group for the Implementation of Recommendations from the White Paper,” said the President of the Council, Mike Michel.

Among the areas where the most progress has been evident compared to 2022 are energy, consumer protection in financial services, combating illegal trade, customs, and positive assessments in the areas of digitization and telecommunications, as well as labour regulations regarding the employment of foreigners.

Compared to previous years, this year’s report notes a lower number of fulfilled recommendations.

Progress has not been recorded in the areas of food and agriculture, public procurement, or dual education. It is necessary to amend key laws regulating labour rights, digitisation of labour documents, more flexible working conditions outside the employer’s premises, and the rationalisation of salary structure and calculation.

Director of FIC Aleksandar Ljubić stated that this year a higher progress index was achieved, reaching 1.36.

“It is important for us to achieve the goal of fulfilling 50% of the recommendations,” said Ljubić.

Speaking about investments emphasised the necessity of ensuring that the investment share in GDP is 25% to achieve a growth of 5%. Therefore, concerning Serbia, domestic investors need to reach an investment of 10% of GDP. He mentioned that 60% of investments in Serbia come from the EU, and it is possible to increase investments from the EU.

(Jelena Nikolić | Euractiv.rs)