Six economic recommendations for Serbia

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Representatives of member countries of the EU, the Western Balkans and Turkey, the European Commission and the European Central Bank, as well as representatives of central banks of countries of Western Balkans and Turkey have adopted joint conclusions in Brussels today, which also present recommendations for all countries of the region.

The part that refers to Serbia also includes six recommendations.

The first one is the need for budget-balancing in medium-term and adoption of credible and mandatory system of fiscal rules.  The second recommendation emphasizes the need for increase in capital investments and development of a unique planning system for those investments, regardless of the level of financing.

The third recommendation for Serbia stipulates that monetary policy should lead to realization of planned inflation, while at the same time it is necessary to continue with implementation of strategy for reduction of non-performing loans and end privatization of remaining state-owned banks, but with further incentives to greater use of domestic currency.

Based on fourth recommendation, Serbia should increase investments in energy sector, and along with that it should also increase energy efficiency and end separation and restructuring of leading enterprises in that field.

It is also expected of Serbia to adopt new industrial strategy, adjust subsidies instruments with rules of state aid, make parafiscal levies predictable as well as phytosanitary control on borders.

Sixth recommendations stipulates the need for decrease in taxes and contributions for the lowest wages, inclusion of unemployed in active measures of the labour market, inclusion of relevant institutions in development of dual education as well as battle against illegal employment.

Source: Beta

Photo: Pixabay