Fic rEcommEndationS - Eurobank EFG

There have been some improvements in the sectors considered
as pillars of development, but the FIC assessment
remains the same as in the previous years: the improvements
are smaller than they could have been and definitely
smaller than necessary to attract more investments.
In the energy sector, an important development was the
recent passage of the new Energy Law, which includes a detailed
schedule for market liberalisation, incentives for “green”
energy, the possibility of exemption of new interconnections
and transport infrastructure from the third-party access rules,
and strengthens the role of the Energy Agency. However, full
implementation of the majority of these novelties will be possible
only after the adoption of a number of by-laws. The oil
market has been liberalised as of 1 January 2011 and there
are a number of significant projects in the pipeline.
We have five recommendations, including an appeal for
quick adoption of the by-laws necessary to make the Energy
Law effective as soon as possible.
In real estate and construction, a complex sector that
covers land ownership and real estate, construction, land
cadastre, restitution, and real estate leasing, the key recent
development was the passage of the Law on Restitution,
which establishes the ownership rights security in a symbolic
and exemplary manner. Also, we should mention the
new Law on Planning and Construction, which simplifies
the process of acquiring permits and allows ownership of
land instead of long-term leasing.
However, there are a number of follow-up or new activities
that we recommend, 12 altogether. The first recommendation
is to divide up the Planning and Construction Law into
5 different fields, and then adopt the necessary by-laws in
each of them, as soon as possible.
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PILLARS OF
DEVELOPMENT
There were numerous regulatory changes in the telecommunications
sector, generally for the better. In May 2011,
the first market analysis in the Republic of Serbia, based on
the model of EU standards, was initiated. The finalisation of
this analysis is expected by the end of this year.
In June 2011, the Digital School project was finished. Within
the project, 2,910 schools on the territory of the Republic of
Serbia were provided with 30,000 computers and the funds
for project implementation were provided from operators’
fees in 2009.
Even though there was noticeable progress in the past year,
we still have 9 recommendations on how to improve this
sector further. The first among them is similar to many other
sectors; it calls for abolishing bureaucratic procedures in
the telecommunications sector.
The labour market and human capital remain among
the biggest challenges, despite some pro-active measures
taken by the Government. Efforts by the Ministry of Economy
and Regional Development and the Ministry of Science
(now integrated into the Ministry of Education) to stimulate
employment of the young, educated workforce have
given some positive results. The magnitude of the problem
is such that much more needs to be done to reduce it. Our
key recommendation is to improve the educational system
and align it better with labour market needs.
Labour relations are another area of concern. The General
Collective Agreement has expired and there are efforts to
replace it by a number of industry-wide agreements. There
are a number of recommendations on how to improve labour
related legislation. With 28 recommendations, this is
by far the most intense section of the White Book in terms
of the need to change the current situation.