Serbia set to build highway
With or without Greece’s assistance, Belgrade is now able to complete the section of Corridor 10, which goes through the country and links Thessaloniki in Southeast Europe with Salzburg in Central Europe, Serbian Economy and Regional Development Minister Mladjan Dinkic told Kathimerini. «This is thanks to the strength of our public finances and the rapid growth of the Serbian economy, while the network of motorways is the top priority in the public investment program of the government,» he said. Dinkic was visiting Athens at the invitation of the Greek-Serbian Business Council. He had meetings with Greek Foreign Minister Dora Bakoyannis and Economy Minister Giorgos Alogoskoufis, as well as with several Greek entrepreneurs. Greece is committed to contributing to the financing of the construction of the highway section that stretches from the Former Yugoslav Republic of Macedonia (FYROM) to the Serbian city of Nis with about -95 million from the Greek Plan for the Economic Reconstruction of the Balkans (HiPERB) since 2002. However, procedures for the funding of the project have been delayed, even though the project may in fact be more important for Greece than for Serbia. «This motorway will have great significance not only for Serbia but also for Greece as it will facilitate its road connection with other countries in the European Union,» Dinkic noted. «We have decided to fund with our own resources the motorway of Corridor 10 in Southern Serbia and the Belgrade ring-road,» he added, explaining that this is made possible by the growth of his country’s economy at an annual rate of 7 percent for the last four years and a yearly fiscal surplus of 1 percent of gross domestic product. Dinkic noted that the funding from HiPERB is welcome and that «we are ready to use Greek construction companies on market terms. I believe it is time HiPERB funds were used for the construction of the motorway,» he said, stressing that this was the first issue discussed with the Greek side. For the time being, a Greek consultancy company has drafted the study for the relevant tender. Greek direct investment in Serbia totals almost -2 billion, putting Greece at the top of the list of foreign investors; the main sectors targeted for investment are banks, telecommunications, oil, sugar etc. There are 120 exclusively Greek companies and 150 partly Greek firms currently active in Serbia, employing more than 25,000 people. «We are pleased with Greek investments,» said Dinkic, who underscored that even more of them are welcome, while reminding of the incentives (relating to taxation and subsidies) which Belgrade offers. Company profits are taxed at just 10 percent and recently social security contributions were also reduced. There is also a -2,000–10,000 subsidy for every new job in companies employing over 50 people. The aim is the reduction of unemployment, which at almost 21 percent is the biggest problem facing the Serbian economy. The new privatization program will be completed by the end of next year, with the aim of seeing 75 percent of the work force employed in the private sector, from 62 percent today. The most important privatizations that are yet to be realized are the copper mine at Bor, car industry Zastava, the national airline JAT, possibly the refinery in Nis as well as a series of properties in Belgrade and elsewhere. The real estate market in Belgrade and in tourism destinations is very «hot» in this period, Dinkic suggested. The «velvet divorce» with Montenegro did not have any consequences for Serbia, the economy minister said, pointing out that the new country next to Serbia is now an important exporting market and a neighbor with which Belgrade enjoys excellent relations. As for developments in Kosovo, the Serb minister said that it was becoming understood that any solution should be peaceful and must have no impact on the Serbian economy. In this regard, he underlined the trust shown by foreign investors who brought in $4.4 billion last year. «A unilateral recognition of the independence of Kosovo, to which Serbia is totally opposed, will have a greater political impact on other countries, but not on the Serbian economy,» Dinkic concluded.
