Serbia on the European Road Overview of the Serbian Economy and current challenges

Content - IPA: Instrument for Pre-accession Assistance - Motivation as a key factor - Enlargement as a positive aspect for the whole European Area - Successful EU – funding - Current issues in various fields in Serbia - Private sector, SMEs & Rule of Law - Successful accession into the European Union ? 2

IPA: Instrument for Pre-accession Assistance EU supports reforms in the "enlargement countries" with financial and technical help Investments in: Justice/home affairs Public administrations reforms Social development Transport and energy Private sector development Rule of law and agriculture 3

IPA: Instrument for Pre-accession Assistance Serbia received with ~ Million €, the biggest amount of assistance of the West-Balkan- countries in the year Developments required in: Social, economic and public sectors! 4

Motivation as a key factor The EU knows that Serbia is willing to do its best and is highly motivated compared to eventual other countries, therefore the funding for Serbia is also higher due its great willingness to fulfil criteria. 5

Enlargement as a positive aspect for the whole European Area All those pre-accession funds help the EU reach its own objectives regarding a sustainable economic recovery, energy supply, transport, the environment and climate change Improvements in economic, social and political fields in the whole EU 6

Successful projects due to EU - funding "Innovation Serbia Project" : Two financial instruments (worth 3 Million € each) - supporting Serbia´s emerging innovative entrepreneurial sector and is filling in the gaps that will prove vital for the country´s economic growth prospects in the long run. 7

Issues in various fields - Greater import than export - Unemployment across the country is very high - Poverty has increased in recent years - Excessive influence of the State in the economy Serbian government is engaged in ambitious program of restricting and privatization of more than 500 State owned companies. 8

Issues in various fields II Existence of some factors which are putting a lid in growth and competitiveness. The Commission is willing to provide financial and technical assistance to boost Serbia´s economy and to ease it in a successful accession into the European Union. 9

Private sector, SMEs & Rule of Law Private sector has the greatest potential in terms of sustainable jobs and growth The importance of small and medium size enterprises should not be underestimated! Great Focus on rule of law  a necessary pre- condition for attracting investors 10

Successful accession into the European Union 11

Thank you for your atttention! 12