by
Martin Banks
Several key players in the country´s EU accession bid assembled in the European Parliament for a debate on everything from Serbia´s efforts to reform its economy to tackling corruption and labour laws.
The debate, on 19 November, also came on the eve of a key meeting in Brussels next week of the European Parliament's EU-Serbia Stabilisation and Association Parliamentary Committee (SAPC).
The new European Commission, led by Jean-Claude Juncker, has said there will be no new additions to the EU for the next five years but Serbia accepts that its eventual membership is not expected until 2020.
One of the keynote addresses at the conference was given by Zeljko Sertic, Serbia´s Economy Minister, who pledged to implement the "tough" measures deemed necessary for eventual EU membership.
He said Belgrade would "not compromise" on the "tough" series of policies it is putting in place, adding, "The reforms are vitally important and I can tell you there will be no compromise on this."
The 90 minute debate on Serbia´s EU accession featured a number of high profile, senior speakers, including Dusko Lopandic, head of the Serbian mission to the EU, and Prof Tanja Miscevic, who is head of the negotiating team for Serbia´s EU accession.
Each spoke on the challenges and opportunities facing Serbia as it moves ever closer towards EU membership.
The discussion was hosted by Slovakian MEP Eduard Kukan, who chairs Parliament's EU-Serbia Stabilisation and Association Parliamentary Committee (SAPC) and is a former UN special envoy to the Balkans.
It addressed topics as wide ranging as regional security and relations and anti-corruption initiatives to investment/foreign direct investment and improving the country’s business climate.
Serbia is just one of seven countries are currently waiting to become part of the EU. The others are Macedonia, Albania, Turkey, Montenegro and Kosovo.
Leaders of Serbia, a nation of 7.2 million, began talks in January this year on accession to the EU, in which it agreed to gradually bring its policies into line with EU norms. Membership, however, is not expected until 2020.
A recent report by the European Commission's shows that the country is more than on track to become part of the EU and that implementing tough reforms are paying off.
Outlining recent economic developments in Serbia, Sertic, who is a former chair of the country´s Chamber of Commerce, pledged that the government led by Aleksandar Vucic would stick to the policies and reforms designed to strengthen the Serbian economy.
Measures include a new "flexible" labour law, a "one stop shop" for formerly hard-to-get administration permits and a revised bankruptcy code and "generous" tax exemptions for businesses hiring new workers.
Another recently introduced measure is a fund worth €1.2bn of subsidised loans for SMEs, of which €460bn had been loaned in recent months.
Data shows that Serbia's economy grew 2.5% in 2013 as exports rose and The Economist Intelligence Unit forecasts an average annual economic growth of 3.6% in 2014 to 2018. But Serbia still has a bloated budget deficit and poor domestic demand is holding back further growth.
Sertic, though, pointed out that over the last year, the country had "radically" overhauled its economy by cracking down on corruption, tax evasion, the imbalance of the private sector, as well as cutting down public sector salaries and pensions.
Tackling the budget deficit was the "first priority", said Sertic, pointing out that the "complex" measures in order to achieve this had included cutting public sector pay and state aid.
A glossy brochure on Serbia´s accession was circulated at the event pointing out that he EU is Serbia´s biggest trading partner. Figures show that over the last two years, the EU accounted for more than 61 per cent of Serbia´s exports and imports. This, interestingly, compares with 7.3 per cent (exports) and 9.2 per cent (imports) with Russia.
On aim of the reform process, said Sertic, was to ensure that trade between the two sides continues to grow.
But he said that improving the country´s business climate and stimulating foreign investment would need "political will" and the participation of "all relevant actors."
He also said that the fight against corruption, another area of concern regarding Serbia´s accession credentials, had been "at the heart" of Serbia´s reform process and includes the National Anti-Corruption strategy which is designed to dictate the conduct of public officials.
In response to a question from Slovenian EPP deputy Franc Bogovic on how Serbia will convince its citizens on the need for the sometimes painful reforms, Sertic cited a recent opinion poll showing that some 64 per cent of the public supporting the government changes as well as closer EU integration.
"These reforms are vitally important and we will not compromise on them. The ambition is to change the industrial picture of Serbia," he said.
In her presentation, Miscevic accepted that Serbia faces "tough challenges" before it is ready for EU membership.
But the official, a former head of Serbia´s European Integration Office, also promised that Serbia would be a "good student" in meeting the strict conditions for EU accession.
She said, "Not only will Serbia be the best student in school but I want us to be an `over achiever´ in meeting the membership criteria."
Reforms which need to be implemented presented a "demanding" challenge for Serbia and its people but that there was a "great preparedness" for this, she said.
While overhauling its economy was the biggest challenge, she said there are other key issues, such as the rule of law, including the judiciary, police and public administration.
Aligning Serbian legislation in these and other areas with the EU´s acquis communautaire was necessary not only for eventual EU membership but also for the "development" of Serbia itself, she told the packed audience.
"The reform process started back in 2004 and is designed to build a strong Serbia," she declared.
Further contribution came from Kukan, a centre right MEP who has twice served as foreign minister of Slovakia.
He said, "Serbian people have confirmed their support for a pro-European course for the country. Thus, in facing this new reality, we have a responsibility to deliver. We have a same goal and I hope we also share the same determination to fulfil the promise."
Kukan, a former Permanent Representative to the UN and an MEP since 2009,said the launch of Serbia´s accession negotiations had marked a "turning point" in the EU´s relations with the Balkan state.
"At the same time this is the road where Serbia will have to deal with new responsibilities. Starting the negotiating process needs vast preparations, commitment to reforms and delivering."
He went on, "Therefore, we expect that Serbia will continue delivering on its reform priorities such as the rule of law and economic governance."
Kosovo remains a potentially thorny subject for Serbia and 100 nations recognise Kosovo. But scores of countries such as China and Brazil do not recognise Kosovo statehood, including four EU members (Spain, Romania, Greece and Cyprus). Russia and Serbia are among others which do not recognise Kosovo.
The Kosovo issue was a point briefly raised by the senior UK Tory MEP Charles Tannock during the debate.
Kosovan Albanians waged a secessionist war against Serbia in the late 1990s, which responded with a military crackdown against the territory and its civilians. A NATO bombing campaign against Belgrade effectively forced Serbia to cede the territory, which was administered by the United Nations until 2008.
With an eye on the country´s ongoing relations with Kosovo, Kukan told the Serbian representatives that it "will be equally important (for Serbia) to continue its commitment to regional cooperation and normalisation of relations with Kosovo."
He said, "Once Serbia has chosen to proceed on its European path it will have to also align with our policies and values in external relations."
His comments were largely echoed by Lopandic, Serbia´s experienced ambassador to the EU, who told the 90-minute conference that his country "shares the same values and objectives" as the EU and the large turnout at the conference "shows the constant interest in Serbia and the EU enlargement process."
Stating that Serbia’s passage towards EU membership was generally on track, he aptly summed up the consensus when he declared , "My fervent hope is that we will eventually become a fully-fledged EU member."
For Serbia, the EU remains a dream but, with the reform process well underway, that membership target of 2020 is becoming more and more a reality.
By: N. Peter Kramer
