UNITED KINGDOM/SERBIA: As Serbia hopes to start accession talks with the European Union in January, it also wants to attract foreign investors by holding an investment day in London

Record ID: 336532

  • Title: UNITED KINGDOM/SERBIA: As Serbia hopes to start accession talks with the European Union in January, it also wants to attract foreign investors by holding an investment day in London
  • Date: 3rd November 2013
  • Summary: LONDON, UNITED KINGDOM (OCTOBER 29, 2013) (REUTERS) AUDIENCE LISTENING TO SERBIAN FINANCE MINISTER LAZR KRSTIC SPEAKING AT SERBIA INVESTMENT DAY AUDIENCE LISTENING KRSTIC SPEAKING AUDIENCE KRSTIC SPEAKING OVE FREDHEIM, CEO OF TELENOR SERBIA, LISTENING IN AUDIENCE (SOUNDBITE) (Serbian) SERBIAN PRIME MINISTER, IVICA DACIC, SAYING (ACCORDING TO OFFICIAL TRANSLATION) "It is m
  • Embargoed: 18th November 2013 12:00
  • Keywords:
  • Location: Serbia, United Kingdom
  • City:
  • Country: United Kingdom Serbia
  • Topics: International Relations,Politics
  • Reuters ID: LVA97R8SYAN76YN4GLAJOE1Y0PUL
  • Story Text: Serbia's looking to the future and how to boost its economy. The country hopes to start accession talks with European Union in January 2014 and is looking to rebrand itself as an attractive investment destination.
    The country hosted an investment day in London on Tuesday (October 29), where speakers included the Prime Minister Ivica Dacic, and the Finance Minister Lazar Krstic, along with investors in Serbia, such as Ove Fredheim, CEO of Telenor Serbia.
    Speaking on the sidelines of the event, Dacic told Reuters Television that Serbia wants to create a favourable climate for investors: "we want to open our doors for companies to invest in Serbia, and in this regard I think there is a lot of room to co-operate in sectors such as energy, agriculture, infrastructure, automobile industry and the IT sector. On our side, we are ready to amend and consolidate our legislation, to simplify the procedures for getting permits and also to create economic incentives for investors to come and to attract them," Dacic said.
    There has already been investment in the auto sector. After a 1 billion euro joint venture between the Serbian government and Italy's Fiat, production of Fiat's 500L family of compact cars began in July 2012. The factory produced 30,000 vehicles last year. The plant is a major exporter in Serbia and a driver of its struggling economy. It plans to produce around 110,000-140,000 cars this year.
    Serbia boasts a well-educated workforce. Labour costs are still relatively cheap - which the country of 7 million hopes will give it edge over neighbours like the EU's newest member, Croatia.
    But there are challenges at home, such as a ballooning budget deficit and debt.
    New Finance Minister Lazar Krstic has announced a package of reforms, which he's not expecting to be popular. He told Reuters Television he believes the country has great growth potential.

    "We are at the same time the country that has the biggest potential to grow in terms of on one end personal income and disposal income, the flip side of that is obviously therefore consumption, by implication GDP growth. We also have a labour force that is well-educated, that can be well-educated. We have a tremendous resource in terms of labour force both in the country and outside of the country that we could possibly bring. I'm referring to our diaspora," Krstic said.
    Norwegian telecoms firm Telenor is the single largest investor in the country. It invested 1.5 billion euros 7 years ago and Ove Fredheim, CEO of Telenor Serbia, told Reuters TV he believes the country is still a good investment opportunity: "You could say that Serbia has been lagging behind over the last few years if you compare to an average in the Balkans or in central and eastern Europe. So from that perspective, you could think is there an opportunity, and when you see neighbouring countries entering into the European Union."
    During its image reboot, Serbia's forging some new alliances. It's recruited former IMF chief Dominique Strauss-Kahn as a government economic adviser. And it hopes a new relationship with the United Arab Emirates will give it access to cheaper finance - to upgrade its farming industry and revive military production.
    But rebooting the economy will not be plain sailing. Production stopped at the Fiat factory on Wednesday (October 30), after a supplier was unable to deliver parts. The halt comes as disgruntled workers at a transport company blocked railways and roads in the area over unpaid wages. The firm's spokeswoman said she was unable to confirm if the halt in production was due to the blockade, which has lasted ten days.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2013. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register