Minister of Foreign Affairs of Serbia: daily survey of 31 December 2008

REPUBLIC OF SERBIA - MINISTRY FOR FOREIGN AFFAIRS

 GDP GREW BY 6.1 PERCENT THIS YEAR

SERBIA

TADIC: TIME FOR RESPONSIBLE MOVES, NOT PARTY LOBBYING

BELGRADE, Dec 31 (Tanjug) - Serbian President Boris Tadic has said that elections are the last thing that Serbia needs at this time. "I would like all citizens and all political figures to take this absolutely seriously. All those who would rush into elections would demonstrate their political immaturity and prove that they are concerned about their party and short-term interests, and not the general welfare," Tadic said in an interview to the New Year edition of the Belgrade daily Vecernje novosti published on Wednesday. It is not the time for party lobbying, but for very responsible moves, Tadic said. Asked what would happen if the G17 Plus party left the government, Tadic said that the best solution is agreement. "We will sit down with G17 Plus and see whether there is a fundamental problem. I do not see any. All I can see are some nervous reactions," the Serbian president said. "We are not jeopardizing the most important strategic goal of the country - accession to the European Union (EU) in any way with the contract (with Russia) on the energy supply. Just as we are not jeopardizing the strategic goal to preserve Kosovo and Metohija with our intention to enter the EU. We will raise all controversial issues with the coalition partners," Tadic announced. The final version of the energy agreement signed with Russia is incomparably more favorable for Serbia, Tadic said. Serbia should do everything to acquire the status of a candidate-country for admission to the EU: from cooperation with the International Criminal Tribunal for the former Yugoslavia (ICT) in The Hague, to securing political stability and reinforcing the economy, Tadic pointed out. The president said that Serbia will have the same answer in later stages as well: it will not be possible to condition EU membership with the recognition of the independence of Kosovo and Metohija.

CVETKOVIC ON TIGHTENING OF BELT IN NEW YEAR

BELGRADE, Dec. 31 (Tanjug) - Prime Minister Mirko Cvetkovic has stated that he is entering New Year with a decisive attitude to persevere in "tightening the belt" and restraining expenditures, although he defined the adopted budget for next year as restrictively encouraging. The budget is significantly restrictive and is planned on the basis of last year’s revenue, the expected inflation and the rate of gross domestic product growth, said Cvetkovic in an interview for the holiday edition of the daily Politika. Cvetkovic announced that the programme of recovering world economy will influence our economy as well, and added that "exporting to the CEFTA region, that is the neighboring countries, is also an opportunity for us, because we have had success in external trade in that region for quite some time." When asked about the authority of the government, the prime minister emphasized that "this coalition government has its authority, but it is directly in relation to the degree of sovereignty which coalition partners have...Despite of all this, as a government, we still manage to overcome all problems."

CVETKOVIC: APPLICATION FOR EU MEMBERSHIP IN FIRST HALF OF 2009.

BELGRADE, Dec. 30 (Beta) - Prime Minister Mirko Cvetkovic announced on Dec. 30 that Serbia will apply for membership in the European Union in the first half of 2009. Speaking at a news conference in the Serbian government, Cvetkovic said Serbia had two goals in 2009 regarding European integration to fulfill conditions for the white Schengen list and to apply for EU member candidate status. As for Kosovo, the prime minister said Serbia would do everything in 2009 to prepare the case for debating before the International Court of Justice about the legality of declaration of Kosovo’s independence. The debate is expected one year later. In the previous year, he said, Serbia accomplished two victories the passing of the resolution in the U.N. General Assembly that requested a legal opinion of the International Court of Justice and the deploying of EULEX in Kosovo under the auspices of the U.N, with respect for conditions set by official Belgrade. "EULEX is a technical mission which is to help the rule of law in Kosovo, with the participation of Belgrade in this process," Cvetkovic said. Asked about relations within the Serbian government, Cvetkovic replied that the issue of the functioning of the government was reflected in how much the coalition partners were prepared to give up their party sovereignty in favor of general and state goals. He said that the government had passed all decisions unanimously, except in the case of the energy agreement with Russia, and that the differences that emerged over the past few weeks were "something that one overcomes." "I hope we will go in the right direction," he said.

CVETKOVIC: IMPLEMENTATION OF TRADE AGREEMENT WITH EU POSTPONED

BELGRADE, Dec. 30 (Beta) - The implementation of the transitional trade agreement with the European Union will not begin on Jan. 1, as it was planned, Serbian Prime Minister Mirko Cvetkovic stated on Dec. 30. Speaking at a news conference, he explained that the implementation of the agreement cannot begin before the adoption of amendments to the Law on Customs Tariffs, which is one of the laws that accompany the 2009 budget. The adoption of these amendments in the Serbian Parliament has been postponed, in order for time to be secured for the adoption of the budget for 2009, which took place on Dec. 29. This law, as well as the remaining six laws that accompany the budget, will be put before the Parliament in early January, Cvetkovic said, adding that he expected these laws to be passed quickly and that the government will then start implementing the agreement with the EU. The transitional trade agreement between Serbia and the European Union envisages a gradual liberalization of trade in industrial and agricultural products over the next six years.

TADIC DISMISSES CHIEF OF GENERAL STAFF PONOS

BELGRADE, Dec. 30 (Beta) - On Dec. 30, Serbian President Boris Tadic dismissed Gen. Zdravko Ponos from the post of chief of staff of the Army of Serbia. On the day of dismissal, the command chain is functioning normally and the command of the military will be taken over by the deputy chief of staff, Gen. Miloje Miletic, until the appointment of the new chief, it was said in the statement. The statement said that, by dismissing Ponos, Tadic had used his constitutional authority (Article 112, paragraph 2, of the Constitution), according to which the Serbian president, in keeping with the law, commands the military and appoints, promotes and dismisses the officers of the Army of Serbia. The dismissed chief of staff and Defense Minister Dragan Sutanovac had exchanged a number of accusations in the media. The conflict became public after Ponos failed to attend the New Year’s reception of the Defense Ministry. He then confirmed the information that he is in conflict with the minister, and accused him for the absence of a defense policy and for failing to professionalize and modernize the military. He also accused him of dealing more with party policies than with work that is in the jurisdiction of his ministry. The minister responded by accusing the chief of staff of dealing with politics and not the military. Ponos has been at the helm of the military for two and a half years. He was the first chief of staff of the Army of the Republic of Serbia. Ponos did not wish to comment on the Serbian president’s decision to dismiss him. "I have been a soldier since the age of 14 and I will behave like a soldier. I will execute all the orders I receive," Ponos told Radio Free Europe. He added that he had already said everything he had to say on the matter.

DODIK: STRONG AND STABLE SERBIA BEST HELP FOR RS

BANJA LUKA, Dec 31 (Tanjug) - Republika Srpska (RS) Prime Minister Milorad Dodik said late on Tuesday that a strong and stable Serbia was the best possible help for RS, but added that some in Belgrade had the illusion and still believed that Bosnia was still what it had once been. "A strong and stable Serbia is the best possible help and our cooperation is absolutely correct. This cooperation is not aimed against anyone, and therefore not against Bosnia-Herzegovina either, but is rather directed at the establishment of good relations with BiH via RS," Dodik said in a live broadcast by the Radio Television of Serbia (RTS). He evaluated that "Serbia is focused on its own problems" which are the result of the inadequate policy it had pursued in the past. "Serbia is not able to be itself, to make things right and to be what it really is - the most powerful country in the Balkans, both in the political and economic sense of the word," Dodik said.

CZECH REPUBLIC WILL FIGHT TO KEEP BALKANS ON EU AGENDA

PRAGUE, Dec. 30 (Beta) - The key issue for the Czech Republic’s upcoming tenure of the EU rotating presidency will be the Balkans and the presiding country will fight to prevent that priority the region’s European integration from being pushed aside due to the global economic crisis, Czech Foreign Minister Karel Schwarzenberg told BETA. "For us, the Balkans is the key issue. The entire EU, the whole uniting of Europe would lose much of its meaning if the job was not finished. If a piece of Europe, a key piece, is left outside," Schwarzenberg said. In the interview, on the occasion of the Czech Republic coming to the EU helm for the period between January and late June 2009, Schwarzenberg said that the burden of history could only be taken off the Balkans if borders stop having the role they have had so far. However, the foreign minister is not optimistic that he will be able to sit down at the end of July and, in tune with the slogan of the Czech presidency "We Will Sweeten Europe," at least be able to say "we have sweetened the Balkans." "While General Mladic is running free, it is absolutely clear to me that I will hit a wall and not be able to overcome the resistance put up by the Netherlands and Belgium," Schwarzenberg said regarding the Czech Republic’s attempts to accelerate Serbia’s European integration.

AGREEMENT ON FRENCH LANGUAGE CURRICULUM SIGNED

BELGRADE, Dec 30 (Tanjug) - Serbian Education Minister Zarko Obradovic and French Ambassador to Serbia Jean-Francois Terral signed on Tuesday an agreement on the Serb-French cooperation in promotion of the French language curriculum in Serbia’s schools. Under the agreement, several projects will be carried out, including bi-lingual classes and special education of teachers, Minister Obradovic said. Obradovic also said that French is being taught as the first foreign language in 50 schools in Serbia, and that it is being offered to students of 600 schools as a second foreign language. The agreement is also important for France, because it promotes its language and is opposed to language unification of the world, said Ambassador Terral, who signed the document on behalf of the French Ministry of Foreign and European Affairs. Opposition to a unification leads to a richer, more diverse and, before all, multicultural world, underscored Ambassador Terral, adding that he is particularly happy about the project of turning the French school into a French-Serbian high school.

KOSOVO AND METOHIJA – SITUATION, REACTIONS

DACIC: INTERNATIONAL FORCES MUST ENSURE SAFETY

BELGRADE, Dec 31 (Tanjug) - Serbian Deputy Premier and Interior Minister Ivica Dacic on Tuesday evening appealed to representatives of the international peacekeeping forces in Kosovo and Metohija to secure stability and peace for all citizens. "We expect of the UNMIK, KFOR, and EULEX to secure peace and safety for all citizens, and primarily for those of Serb nationality," Dacic said during a visit to the City of Belgrade Police Administration. YOUNG SERB WOUNDED IN KOSOVSKA MITROVICA

KOSOVSKA MITROVICA, Dec. 30 (Beta) - A young Kosovo Serb man was stabbed in Kosovska Mitrovica on Dec. 30, which resulted in the Serbs already beginning to gather around the bridges on the Ibar River. The incident occurred near the main bridge, which divides the town into the northern and southern part, around 4 p.m. Two Albanians stabbed Nikola Bozovic, 16, who was immediately transferred to a hospital, Kosovo Police Service regional spokesman Besim Hoti said. The police are investigating the causes that led to the two Albanians stabbing the young man. The citizens of northern Kosovska Mitrovica have gathered in protest against the young man’s wounding and frequent firearm shots can be heard in the multiethnic part of the town dubbed Three Skyscrapers. It is still unknown who has been shooting and from where. Meanwhile, the Kosovo Police Service arrested the two Albanians as they were fleeing the scene of the stabbing.

BOGDANOVIC CONDEMNS VIOLENCE IN KOSOVSKA MITROVICA.

BELGRADE, Dec. 30 (Beta) - Minister of Kosovo and Metohija Goran Bogdanovic strongly condemned an outbreak of violence in Kosovska Mitrovica which happened after an incident in which one Serb boy was stabbed by Albanians. "This is the latest in a series of attacks on members of the Serb community and it has introduced huge unrest and fear among the Serb and nonSerb population of Kosovo and Metohija," Bogdanovic told BETA. The Serbian Ministry of Kosovo and Metohija has called on all relevant institutions and international representatives to do everything in their power and to use all available means to prevent such and similar incidents. We demand that the U.N. mission and EULEX react adequately and punish and prevent further crimes, the minister said. UNMIK spokesman Russell Geekie said that U.N. police were no longer operative as far as the incidents in Kosovska Mitrovica were concerned. In a statement to BETA, Geekie said that the Kosovo police service and EULEX mission were in charge of that. BETA was unable to reach EULEX spokeswoman Karen Limdal. BETA’s reporter in northern Kosovska Mitrovica reported that the situation in the city late on Dec. 30 was calm, but tense.

SERBIA – ECONOMY – FINANCES

INFLATION IN SERBIA 6.8 PERCENT IN 2008

BELGRADE, Dec. 30 (Beta) - A deflation of one percent was registered in Serbia in December, while the total inflation in 2008 was 6.8 percent, the Serbian Statistics Bureau announced on Dec. 29. The director of the Bureau, Dragan Vukmirovic, said at a news conference that retail prices of goods in December were 1.5 percent lower than in November, while prices of services grew by 0.2 percent. Prices of industrial products that are not food were lower by an average of 2.8 percent in December, due to the reduction of prices of oil derivatives. Agricultural products’ prices increased by 0.3 percent in December, because of the seasonal increase of prices of vegetables, fruit, eggs and fish. Living costs in Serbia in December 2008 were 0.8 percent lower than in November, which accounted for the overall increase of the cost of living in 2008 by 7.9 percent.

SERBIA’S TRADE DEFICIT ADDS UP TO EUR7.5 BILLION

BELGRADE, Dec. 30 (Beta) - Serbia’s trade deficit in the first 11 months of this year added up to EUR7.5 billion, which was 18.5 percent more than in the same period in 2007, the Serbian Statistics Bureau announced on Dec. 29. The director of the Bureau, Dragan Vukmirovic, said at a news conference that exports grew by 17.2 percent, to EUR6.9 billion, while imports have reached EUR14.4 billion, which accounted for a growth of 17.9 percent. "Serbia’s total trade was worth EUR21.3 billion, which was 17.7 percent more than in the 11 months of 2007," he said. The export/import ratio was 47.9 percent lower than in the same period last year, when it was 48.1 percent. According to the Statistics Bureau, the world financial crisis had affected Serbia’s trade, since exports have been dropping constantly due to a reduction of demand in the world. In the 11 months of 2008, Serbia exported the most to Bosnia and Herzegovina a total of US$1.24 billion. Following are Montenegro with US$1.2 billion and Germany with 1.08 billion. The Bureau announced that most goods were imported from Russia, $3.2 billion worth, followed by Germany with 2.5 billion and Italy with somewhat more than two billion.

GDP GREW BY 6.1 PERCENT THIS YEAR

BELGRADE, Dec. 30 (Beta) - The growth of Serbia’s gross domestic product (GDP) will add up to 6.1 percent, the Serbian Statistics Bureau announced on Dec. 30. The director of the Bureau, Dragan Vukmirovic, said at a news conference that, viewed by activity, the biggest growth was in the sectors of transportation, storage and communications, financial mediation, agriculture and trade. In his words, in the third quarter of this year the GDP grew by 4.9 percent compared with the same period in 2007. The biggest growth in this period was in the sector of financial mediation 13.9 percent. Following were the sectors of transportation with 13.6, trade with 7.6 and stone and ore extraction with 4.2 percent.

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Minister of Foreign Affairs of Serbia