European Commission: Serbia makes progress in creating functional market economy, problems lie in state subsidies, public procurement procedures and public enterprises

Serbia has a good degree of preparation and has achieved progress in creating a functional market economy, but there are still structural problems when it comes to state subsidies, public procurement procedures and public enterprises, the European Commission assesses in the annual report on Serbia’s progress toward joining the EU.

In the report, which is part of the Enlargement Package, in the part which pertains to economic criteria, it is estimated that Serbia is moderately prepared, but that it has achieved certain progress in coping with the competition and the market factors in the EU.

According to the report of the European Commission, in most fields which comprise the economic criteria, since last year’s report, Serbia has achieved only moderate progress, and in the fields of protection of competition, financial control, freedom of establishment and provision of services and in the field of company rights, Serbia has achieved no progress. The Commission only rates the progress in the field of statistics positively.

The draft report, which is supposed to be published later today, says that the structure of Serbia’s economy is favorable, with a growth of production and the service sector, which are profiting from FDIs and the close integration with the EU.

– However, the quality and the applicability of education and training do not fully suit the labor market – the EC says in the report and adds that Serbia should address that discrepancy in the labor market, among other things, by improving expert education and continual professional development.

It is added that there is a need for a better management of public investments, which are high, and that small and medium enterprises also face a range of obstacles, including market inequality with big companies and foreign investors.

The report recommends an acceleration of the green transition in Serbia, in order to improve the competitiveness of its companies in the global chains of creating a new value and continue attracting foreign investors.

European Commission

report on progress of Serbia toward joining EU

green transition

state subsidies

public procurement procedures

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