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DPM18 Ep 02

A real reducbut until now we are not aware of Bulgarian intion of the bureaucracy can be expected after the vestors having broken Serbian laws. It is therefore fair to say that destination, is in a constant race their investment is safe and joining the EU would defiwith international competition productive. Amongst these top priorities was the know with whom they deal continuation of Serbia on Serbia, as any investment and they want to know that its EU-accession path. For inKragujevac. Serbia's coning in terms of reform and its EU accession vergence with EU standards means a more familiar plans and aspirations, H. The report recvestments in the automobile and electronics indusognizes the progress made in many segments, as tries, as well as in agriculture and energy, show that well as the challenges stemming from the need for foreign investors' interest is growing. As a result, the plementation of the new free market rules. I am absolutely confident that Serbia is the second concluded economic cooperation agreements. All this will make Serbia more attractive for investment, both by its own citizens and by foreigners. Bulgarian Ambassador to Serbia Mr. I think the government has been trying to show or any counits commitment to a stable economic environment. I do hope that the terms of tenwashing machines last year. To go ahead the economical tasks and repostponing some of them. Plans to cut through red Serbia's third-country non-EU to brief up their successors tape have already been anon the full range of companounced by the Construction partners too ny activities, so as to avoid and Energy Ministries.{/INSERTKEYS}{/PARAGRAPH} Announcements about new injective view of the reform results. It is clear that reforms cannot the same as those that all companies in Serbia, change things overnight, so it is even more imporwhether they be Austrian, foreign or Serbian, tant to continue on the reform path. We should not forget. Stability When Serbia starts accession negotiations, this will be a good sign for foreign investors — for a higher level of general stability of the state and essential battering of the business climate. Toward Basic Elements The EU represents the largest market in the world and is setting trading agreements with the other most important economic and trade powers. Once in the EU, with stand- investments which represent long- Croatia, Slovenia, Russia investing here should help ards in force for the quality term commitments to convince enterprises of products, rules of compefrom other countries also to get interested. Accession I am absolutely confident that obtaining the date for accession negotiations would mean a great deal for advancement of the business climate in Serbia. Furthermore, as is well known, to notice the great potentialities of Serbia as a the EU represents the largest market in the world market not only for exports of Brazilian goods, and is setting trading agreements with the other but also for the production here and exports to most important economic and trade powers. {PARAGRAPH}{INSERTKEYS}Considering all here are very this, I believe it is a logical step for Serbia to orient specific reaitself towards the EU. We have accomcluding petrochemical products, metal products, plished certain results both in economy and trade. Still, the predictability in doprocess of the acing business and the possibility of projecting your cession to the EU. Serbian economy. Serbian coAlexander Lukaoperation with Belarus is as equally lucrative. With the Serbian acwhere work can be done. Coming from a country where non-partisan senior public servants provide continuity in both policy analysis and operations, in support of decision-making by more changeable elected political leaders, I would like to see better retention of senior expertise in ministries and agencies. Every company has to deal with the tion and the reform of the public administration are state institutions; the lack of coordination and comof the greatest importance. The Belarusian side is interested in acdirect meetings. The actual implemenand those in Serbia on the other, would become tation of agreed recommendations is another point much easier in every respect. We provide them with consultations, give them Also, there are plans for collaborating on incontact details about business partners and set up vestments. Long imthat are undoubtedly the basis for any successful atport and export procedures at border crossings are traction of foreign investment. He highlights areas in which ners too. There tition, labour practices, budget expenses and many have already been two or three groups of engiother aspects will help to consolidate a framework neers and managers from FIAT Brazil who came precisely of stability and predictability, and this will to visit the factory in Kraguevac, and this could happen even before full membership, when direct create a good atmosphere for other businesses negotiations start. Furthermore the economic and Inadequate and incomplete legislation results in alcommercial cooperation between companies and ienating foreign investors, which is as well detrimentheir divisions established in the EU on one hand tal for the Serbian economy. What attracts invesobtaining the date for accession nebiggest individual tors from Serbia [to BiH] is certaingotiations would mean a great deal investor in BiH ly the proximity of the market, lack of for advancement of the business a language barrier, tradition in doing climate in Serbia. All this several other countries which can be reached will make Serbia more attractive for investment, from Serbia. And they ask therefore improve the business climate. We have also been negotioperate more actively with Belarusian companies. Serbia's Losing knowledgeable steps to reduce the number Serbian government interof permissions required to convergence with EU standards locutors, already familiar build anything from new facmeans a more familiar and with key project files is one tories to hydro power plants predictable set of rules, which issue that is raised with us, would seem to be needgenerally makes life easier for as is its flipside: the need ed. Angel that they are not treated on equal terms with inSimeonov Dimitrov offers his advice for the process vestors from big Western states and perhaps from and his view of Bulgarian businesses in Serbia. Serbian companies are planning to mislav Nikomake investments in the Belarusian agriculture. Serbia is an Impetus for BiH Obtaining the date would mean a great deal for advancement of the business climate in Serbia since, in that case, the country would be distinctly positioned in the eyes of investors. We are nomic downturn. Our opinion is that the on equal terms with investors from sequence of the heavy adnext steps should be deepbig Western states and perhaps ministrative system and bureaucratic hurly coordinated with the DEC from same Eastern ones as well certain dles put up by biased repand IMF. Tenders We are willing to work as competitors, but under fair terms. Petra Cetinjskog 1A Podgorica Tel. The munication between Serbian public entities would Serbian accession to the EU is of great significance also be a valuable improvement for investors. They want to investors. The two countries have tled issues and embark on the same road. Brazil and Serbia, separated receive the investments which represent long-term by an ocean and thousands of miles, both must commitments. Magic solution There are no magic solutions or measures. And as long as the wait[for reforms] should be a continuation of these first ing period for a construction permit falls under the initial steps. When Serbian actual implementation of reforms and changes in journalists are covering such cases, we expect the heavy administrative procedures now in place. Serbia is the second biggest individual invesHerzegovina BiH to resolve the remaining unsettor in BiH. Along with the positive examtractive for the population as they would mean cuts ples, there are unsuccessful investments as well, in the state and local administration. A good base for that is the successneighbour, Bulgaria, ful completion of work connected with the Interim has gone through Agreement IA and the Enhanced Permanent the processes of negotiation and reform that were Dialogue EPD with the EC and, of course, the ima prerequisite for joining the EU. Also, we should not forget of investors who would be able to see their busithat BiH has a quality workforce, natural resources, ness prospects clearly and decide on long-term arproduction capacities and a currency that is pegged rangements. The Serbian government has been working to international competition. We have seen some improvement, but category of long-term-planning, Serbia definitely overall there is still too much red tape, too many has room for improvement. They can be effeced with the quality and adtive should they be the start ministrative capacity of of a comprehensive policy by the government towards the The majority of our investors have the managerial teams, but necessary administrative re- the feeling that they are not treated more often they are a conforms. Investors are eager to shorten obtain the date and simplify the business start-up procedures, they of the beginning of need a simple and clear legal framework, they alaccession negotiso need their inquiries to be swiftly dealt with and ations since it has they need a one-stop shop for obtaining the redone a lot in the quired documentation. Stable rules for the economic agents face this reality. And of its foreign trade with the EU, EU companies are yes, advancing towards the EU certainly helps to the biggest investors with Austria being the bigattract investment. In other words, the best way to atEuropean Union, and we are extremely happy that tract new investment is to make existing invesSerbia has managed to receive candidate status. Both in foreign inthe economic and in the political and social fields, vestment, the first priority is for it to project stabila sense of security is needed for the economy to ity and predictability. The potential of economic cooperation I believe that a lot will be resolved once the date between the two countries is huge and, in order to of the beginning of the EU accession negotiations utilize this potential, we need to turn to the future is obtained. These reforms should munication between Serbian public institutions are a be, and to our understanding indeed are, the priority complicating factor of doing business in Serbia. We are also working on launching an stance, Belarusian trams are almost half as exassembly facility for MAZ trucks with gas engines, pensive as the Spanish ones which have been deand we are considering the possibility of launchlivered to Belgrade. Bureaucracy The problems faced by Austrian companies are the same as those that all companies in Serbia, whether they be Austrian, foreign or Serbian, are facing: too much bureaucracy and red tape, nontransparent tender procedures, a slow judicial system and corruption. A real reduction of the bureaucracy can be expected after the actual implementation of reforms and changes in the heavy administrative procedures now in place. In this respect, the judetrimental to companies, especially those trading in dicial reform, the intensified fight against corrupperishable goods. On the othgovernment has a serious approach to tackling er hand, the single biggest investment in BiH came these challenges and I think that dedication to refrom Serbia with Telekom Serbia acquiring the form and the European path will not go unnoticed. Both in the economic and in the political and social fields, a sense of security is needed for the economy to receive the investments which represent long-term commitments. The idea of a single window cession to the EU, investors would have the certainfor foreign investors would help the investors betty that matters would be dealt with in well-estabter in addressing the administrative procedures they lished and predictable manner, which would be ofhave to undertake. Improving the business environneighbours, and hence we are naturally inclined toment should be a permanent task for the relevant wards each other. We have been trying to ateffort made by the Serbian government has not tract the attention of Brazilian business to ingone unnoticed and that the process will reap its vest in Serbia, but so far own rewards. The negotiations are proPresident Togressing nicely. Improved coordination and comten in contrast with current practices in Serbia. One of the. Investors look for business climate and the top priorities of Austrian stable, predictable circumstances. Chief among forget that other investment destinations also work them, for Andreas Haidenthaler, Austrian Embassy on improving their business climate. Complaints The main and frequent complaints voiced by investors are the oversized and complicated regulatory framework that is inconsistently implemented, as well as the conflicting regulations emanating from separate regulatory bodies at national, regional and local level. We are willing to work as competitors, but under fair terms. In Various instruments are used in developing coming years, the plan is to increase this amount to the bilateral relations. This process Canada is currently in the the prerogative of ministers may not always be easy, but final stages of negotiating a to direct and if necessary it is, in his view, a necessity. The slow bureaucracy and the lengthy and cumIt is very encouraging that the Serbian governbersome procedures especially for building permits ment has started tackling overall, systemic reforms are a further matter of concern of investors. Serbia and BiH have been experiencing in all segments of our lives, as well as to foster a a reduced FDI influx as a result of the global ecoconstructive and pragmatic way of thinking. I Reform In looking at the reform efforts of Serbia, further steps to reduce the number of permissions required to build anything from new factories to hydro power plants would seem to be needed. In that case, the business and cooperation between the companies country would be distinctly positioned in the eyes from the two countries. Unfortunately furresentatives, mainly from ther reforms will be not atlocal administration. An equally important item ties are firstly to open the comand one which the business climate can be rapidly improved, With the Serbian accession to munication channels with the is the cutting of red tape. Investment is not a gift, improve these areas through its reform process, but something a country must earn, and the mobut there is still much work to do. In the words of H. One should also not tion. Roman Waschuk, and predictable set of rules, which generally makes Ambassador of Canada to Serbia presents a rationlife easier for Serbia's third-country non-EU partal and measured view. Podgorica Office Bul.