Serbia’s Minister of Economy Dusan Vujovic has said the government will try to avoid reducing pensions, but that, on the other hand, government companies will have to reduce their costs and raise their efficiency.
The laws on bankruptcy, privatisation and subsidies will be adopted in July, he told Radio and Television of Serbia, adding that the telecommunications company Telekom Srbija would definitely by privatised.
“Those laws, especially the laws on privatisation and bankruptcy, will make it possible to solve the problem of 170 companies that have been undergoing restructuring for years. The laws will offer much faster, more efficient and transparent procedures, whether those companies get privatised or go into bankruptcy,” he noted.
When asked if the plan for the companies in restructuring would be known by the end of the year, he responded that the intention was to start resolving the companies’ situation by the end of 2014, and that the progress would depend on the implementation of the laws on privatisation and bankruptcy above all.
Commenting on a potential reduction of salaries and pensions in the country, he stated the government would do its best to minimise the social effects.
“My goal is to minimise the need to for pension and salary cuts by finding ways of saving money in government companies, where it is possible to make a lasting positive effect on the national budget on the scale of hundreds of millions of euros, which will then make the painful measures less so,” Vujovic pointed out.
There is lots of room to reduce the expenses in most of the government companies, he thinks.
The minister did not answer directly whether a recession was certain in Serbia, stressing that he expected the economy to come back to life once the investements currently discussed started.
“This is a matter of weeks and months. Investors understand that we have started changing the business environment and are determined in our efforts,” says the minister, adding that he expects 4-5 large deals to be closed by the end of the year.
Source SerbGov
