It is impossible to end up with the crisis using the same economic model which was used before the collapse.  It is realised and emphasised by various economists, from Washington and Brussels to Tokyo and Beijing. The sobering shall be a painful process particularly for Serbia, yet not as much as it would be expected. The Summit of leading economists and ministers, bankers and governors in the elite Serbian ski centre Kopaonik, organised by Association of Serbian Economists, may be a turn point in managing the economy. Economic growth based on increased public spending, mostly through privatisation income or indebtedness, is silently ignored for two reasons.

His Highness the Consumer might soon take a victory over the worlds` most businessmen by limiting trading margins, so that each side could make a profit. A large number of consumers` movements in all parts of the world, particularly in Europe, are gathered in their attempt to distinguish an ordinary person as an economic partner equal to chain store`s owners or possessors of companies providing transport or telecommunication services. They are just a step far from a historical success.

Serbia`s pension system seems to be quite unstable and unsustainable, probably representing one of the most serious problems of public consumption in the country. The International Monetary Fund`s representatives have already made their point on that issue, as well as their colleagues from the World Bank, while Serbian government, although perfectly aware of this problem, lacks political courage in dealing with it.

By CEV Magazine team

Serbia`s Minister for Economy and Regional Development Mladjan Dinkic recently announced that Serbia`s economy "hit rock bottom in February", "gradually making its way out of the difficult economic situation". Despite he added this was confirmed by data on exports and industrial production, which improved in March, while unemployment also slowed, many analysts estimated his statement as exaggeratedly optimistic. "This does not mean the crisis is over, but it does mean that, from now on, we will be hearing better news", said Minister Dinkic, in the face of the fact that several days later official GDP readouts within the European Union showed Europe sank deeper into recession in the first quarter of this year.

By Dragana Peric

Serbia is officially the only country in the region making the second agreement with the International Monetary Fund (IMF) in order to overcome the 100 billion dollars (1.075 billion euros) "hole" in the budget. However, the IMF has been warning Serbia for years pointing out to the public sector consumption as the greatest problem of the budget economic unsustainability and reason for foreign borrowings.

By Sandra Pekic

Milorad N. (60) considers his return to native town in Serbian region of Sumadija, where he will manage to live decently thanks to his foreign pension which was earned in Austria, where he was hired as a maintenance service employer in the course of last few decades. But in comparison with him, many of those who are temporarily hired in the European Union or in any other developed country are at risk of loosing their jobs due to the global economic crisis and recession, which means that some of them will have no alternative but to return to their homelands. According to London newspaper Daily Telegraph, hundreds of thousands of Polish workers are abandoning Britain and Ireland, although their country suffers as much as any other EU country - due to the recession, 400.000 people could easily loose their jobs in the course of current year in Poland.

By CEV Magazine team

Тhe agreement of the world leaders made at the London G20 summit and promised new additional resources for International Monetary Fund (IMF) will not solve the global economic crisis. However, according to analysts, they are the first resolute step towards the world economy recovery. Although many unsolved problems have remained, such as the banking system reform, the past G20 summit has given the frame for the new world economic order where the United States of America will have minor role and international financial institutions the greater one.

By Dragana Peric

"Why the Government does not admit it went bankrupt and then we could consider the next step," the Union of Employees has sent a message to the Government while the authorities` representatives have justified new tax measures with their agreement with the unions. The truth is that no one in Serbia who is not an MP or a minister would willingly accept the conditions stated in the last agreement made between the Serbian Government and the International Monetary Fund (IMF). According to it, starting May 1st, employees should pay additional six percent taxes on earnings and that way rehabilitate the budget hole of 100 billion dinars (more then one billion euro).

By CEV Magazine team

In search for foreign investors willing to provide enough money for Serbian economy regardless of financial crisis, Serbian officials can now count on EU funds only. Due to Instrument of Pre-Accession Assistance`s complicated procedure, this year will certainly bring the first acquittance out of billion euro dedicated for the projects in Serbia expected to be realised between 2007-2013. Seeing that until 2013 this fund may count on 11.5 billion euro (and that means 0,6 percent of EU budget), it is hardly that the 27 EU member states will decide to start the complicated procedure of changing budget in order to make additional savings in this fund.

By Dragana Peric

Europe`s largest economies threaten to return to protectionism, after US president Barack Obama has advised his people to purchase "made in USA only". Before financial crisis has raised its head, there had not existed a slightest need for state intervention. But although financial ministries from seven industrialised nations (also known as Group of Seven, or simply G7) after a meeting in Rome have expressed their fear on protectionism growth, and despite their conclusion that protecting work places and industrial potentials will not endanger free competition, protectionism will certainly be one of the top challenges for them. Concerning everything French, Spanish and Italian authorities have done lately, it seems that every penny invested into a private financial institutions, as well as small and medium-sized enterprises` credit financing or state-private ownerships forming, remind more of neoliberalism doctrine.

By Dragana Peric

After the recent and probably not the last approval of the state help package for three more banks on the brink of disaster, the British Prime Minister Gordon Brown "has asked" these recapitalised financial institutions for just one change in their business policy. He wanted the small and medium companies to be their lending priority during the coming difficult year. Why? Not because the giant companies need less support than the dwarf ones but because small and medium enterprises have greater flexibility, possibility to reorient their activities if needed and bigger chance to find the small amount of money they need to become profitable again. In Serbia, on the other hand, small businesses, except good plans, have still not managed to have administrative obstacles removed by the authorities.

By Nenad Radicevic

Judging by some politicians` and experts` statements, unilateral application of the Interim Trade Agreement with the European Union (EU) will "destroy the Serbian peasant," "damage the budget for more than a quarter of a billion euros," "ruin local producers faced with the European competition," and altogether it will "cave in domestic economy." Numerous misinformations were the breaking news in the Serbian media although the Interim Trade Agreement provides for Serbia to gradually reduce customs duties for the EU products import. An event in which a state - potential membership candidate - unilaterally applies an agreement with the EU is the unique one in its several decades` long history. However, this should not be surprising since the Stabilisation and Association Agreement and the Interim Trade Agreement not being put in effect, according to experts, represents a unique breaching of the European law in the practice of the European family of peoples.

By Dragana Peric

If we leave out the arrest of Ratko Mladic, the most important conditions for Serbia to get the status of a candidate for the European Union membership is the adoption of three laws essential for preventing corruption and market economy functioning. Those are the Law on Protection of Competition, the Law on State Aid and the Customs Law. In its April 2002 report the European Commission recommended to the Government of the Republic of Serbia to start as soon as possible the process of adoption of these three laws that would be harmonised with the European Union standards and to start standardisation of other laws according to the European principles of the state aid. Six and a half years later, it is still unknown in Serbia according to which criterion public enterprises get state aid while the fight against the abuse of monopoly has been made impossible.

By CEV magazine team

Global recession and economic crisis have developed into such serious problem, that it takes more to do than observing it and acting ad hoc. French president Nicolas Sarkozy was the first to realise that, forming the Ministry for economic recovery in order to raise above the recession. The very name of the Ministry, as well as minister Patrick Devedjian, a personal friend of Sarkozy, have caused a angrily reaction among Sarkozy`s opponents. But French president doesn`t seem to be disturbed, convinced that current crisis is not followed by the instruments required for surpassing the recession, but it is still unknown if this ministry of historic importance will demonstrate its efficiency.

By CEV magazine team

Global financial crisis has affected most of the countries to review their monetary policies, mechanisms of control in the world of finances and so on. Even Great Britain considers seriously of giving up on its pride - a pound - in order to prevent itself from financial strikes to come, together with the rest of Europe. Denmark, which has already voted against referendum and has thus rejected Euro as potential currency, now thinks of inviting people reply once more on that issue, encouraging them to say "yes" to Euro.

By Dragana Peric

Buy Nothing Day, a recently celebrated international event, has failed in Serbia. Serbian citizens have neither responded when six months ago the Consumer Protection Association tried to organise, alike in Europe, spending boycotts, thus preventing from price increasements. But prices, however, have increased. That is why Serbian consumers missed a chance to do something about it, unlike European citizens who have managed, thanks to the consumer protection associations` two-day pressures, to stop price growth and make producers change the way of issuing the declarations on their products, so that the consumers would not bother staring at finely written information. Serbia, on the contrary, still tries hard to make producers put declarations on their products containing precise information, even with microscopic letters written.

By CEV magazine team

British Telecom is about to eliminate approximately 10.000 workplaces in the course of an ongoing year, as it is defined by the cost reduction plan. This company employs, directly and indirectly, about 160.000 people, and, according to the Reuters agency, it has already announced that 4.000 workers have been dismissed, hoping to stop the number on 10.000 workplaces due to the natural rotation of the labour force. Dismissal trend has attacked Germany, USA and Japan, and some Serbian employers are taking the advantage of these circumstances for dismissing their workers, although there`s absolutely no justified reason for that.

By Jelena Virovkic Ivanovic

National air career of Serbia, Jat Airways, has not been privatised simply because nobody was interested in buying 51 percent of its shares nether for 51 million euros. No one took participation in open competition. The truth is that there are objective reasons for that. First, global oil price has overthrown aircraft - more than ten air companies have disappear, while those larger have survived thanks to association with more powerful ones. The exception is Alitalia, which exists on the edge of bankruptcy.

By CEV magazine team

European Commission has decided to fine Microsoft for 280.5 million euros for, as it was explained in July 2006, "illegal behaviour on the market and competition restraining". Neelie Kroes, amenable commissioner, has then announced that Bill Gates`s company would be fined for three million euros every day, starting with July 31st, unless Microsoft chooses not to adjust to EU business set of rules.

EUROPEAN AFFAIRS

By Misa Brkic

You have voted now pay for it.

Something like this could be the message to the citizens who, have voted at the recent parliamentary elections in Serbia for parties which are the constituents of the Government and parliamentary majority, but now are "whining" the state is expensive, insatiable, and spendthrift.

By CEV magazine team

The balloon of the world finances has exploded and the crises in the world stock exchanges and financial markets will last. Consequences are more and more visible especially if considered is enormous gold and gas price rise, general world productivity decrease, unemployment growth, and now also the stock exchange crisis. As of a snowball unstoppably tumbling, the EU financial ministers now have to worry also about the panic spreading. On the other side of the Atlantic, this month homeless will be 2.5 million Americans who have taken credits for houses and apartments since they will not be able to repay them. In spite of the modest engagement in the world economic market, effects will be felt in Serbia also.

OPINION: RADOVAN JELASIC 

US authorities have announced a rescue plan in order to resolve the American stock market collapse. The House of Representatives has rejected it at first, but after pressure coming from the Senate the plan was accepted by congressmen. Liberal economists compare this plan with socialism, saying that it demonstrates an unacceptable state interfering, even in case of powerful Wall Street.

EUROPEAN AFFAIRS

By Misa Brkic

Corridor 10 has not yet been built not because Serbia did not have money but because it did not have manager who would have organised the job for such an important infrastructure project.