Serbia announces austerity measures to avoid bankruptcy

Serbian president expressed his support for newly proposed measures to save the country from bankruptcy, the same measures the opposition rejects

Serbia announces austerity measures to avoid bankruptcy

World Bulletin/News Desk

Serbian President Tomislav Nikolic on Tuesday expressed his support for a set of measures the government proposed in order to save the country from the bankruptcy.

"These measures should help create a sustainable and healthy economy, and this move by the government is necessary in order for Serbia to move forward," a statement from the Niklic office said.

The measures, among other things, will cut public expenditures.

"Personally, I do not have a problem with this. My office and I have been working with a decreased budget for a long time, and the public knows about that," Nikolic said.

However, opposition leader Dragan Djilas told the media that the proposed measures are not a reform, but "just a proof that the current government does not have a plan how to draw the country out from the economic crisis."

"This package is not made in order to help citizens, but for the government, that is not capable, to take the money from the people," Djilas said. According to him, the only solution is in new elections.

A similar attitude is expressed by most of the opposition parties that are rejecting the proposed measures.

The Serbian government announced a package of austerity measures on Tuesday, including public sector wage cuts, VAT increases and subsidy reductions.

Newly-appointed Finance Minister Lazar Krstic said that without those measures, Serbia could go bankrupt "in the next two years."

According to the plan, the first measure will be to reduce by 20 per cent wages in the public sector that are higher than 60,000 dinars (around 525 euro); wages exceeding 100,000 dinars (around 875 euro) will be cut by 25 per cent.

Significant reductions in state subsidies are announced, too, with the aim to bring savings in the budget. One other measure is the completion of the privatizations of 179 state-run companies and the restructuring of large public enterprises.

Krstic also announced that the government would invest efforts to considerably improve the business environment, and introduce law reforms to ensure more flexible employment and dismissal.

Belgrade (AA) - Serbia's President Tomislav Nikolic on Tuesday expressed his support for a set of measures the government proposed in order to save the country from the bankruptcy.

"These measures should help create a sustainable and healthy economy, and this move by the government is necessary in order for Serbia to move forward," a statement from the Niklic office said.

The measures, among other things, will cut public expenditures.

"Personally, I do not have a problem with this. My office and I have been working with a decreased budget for a long time, and the public knows about that," Nikolic said.

However, opposition leader Dragan Djilas told the media that the proposed measures are not a reform, but "just a proof that the current government does not have a plan how to draw the country out from the economic crisis."

"This package is not made in order to help citizens, but for the government, that is not capable, to take the money from the people," Djilas said. According to him, the only solution is in new elections.

A similar attitude is expressed by most of the opposition parties that are rejecting the proposed measures.

The Serbian government announced a package of austerity measures on Tuesday, including public sector wage cuts, VAT increases and subsidy reductions.

Newly-appointed Finance Minister Lazar Krstic said that without those measures, Serbia could go bankrupt "in the next two years."

According to the plan, the first measure will be to reduce by 20 per cent wages in the public sector that are higher than 60,000 dinars (around 525 euro); wages exceeding 100,000 dinars (around 875 euro) will be cut by 25 per cent.

Significant reductions in state subsidies are announced, too, with the aim to bring savings in the budget. One other measure is the completion of the privatizations of 179 state-run companies and the restructuring of large public enterprises.

Krstic also announced that the government would invest efforts to considerably improve the business environment, and introduce law reforms to ensure more flexible employment and dismissal.

Last Mod: 08 Ekim 2013, 23:36
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