The Serbian Chamber of Commerce proposed new economic measures for the period from 2012 to 2016, which include GDP growth of 5% annually, because the current development model has not yielded results and the country needs a new one. Biljana Blanusa has more.
The economic situation in Serbia has worsened – the GDP, industrial production and employment rate have been reduced, which is to a great extent a result of the global economic crises, said Milos Bugarin. It has turned out that the model used so far needs to be changed. This is why the Serbian Chamber of Commerce prepared a proposal of measures that would overcome the economic problems. According to him, the biggest problem is insolvency, increasingly higher unemployment rate, and increased foreign trade deficit due to the reduced exports. Bugarin believes that a new government must undertake measures to boost the economic growth, especially in export-oriented fields. The program envisages a growth in investments, implementation of structural reforms which would make room for a sustainable employment level, reduce insolvency and boost the competitiveness. Tax reforms also have to be carried out, income taxes and contributions should be reduced and pension system reforms need to be completed. Parafiscal taxes have to be reduced since they account for 1.3 billion euros annually. Bugarin emphasized that the Serbian Chamber of Commerce has proposed different measures than those suggested by the Fiscal Council in regard to spending. While the Fiscal Council proposed reduced spending on all levels, the Chamber of Commerce believes that incentive measures should be adopted to increase investment spending with the aim to increase economic growth and employment rate.
Within the stabilization program proposed are fiscal policy measures that should contribute to resolving the issues of insolvency, creation of more favorable ambiance for businesses and more jobs. This also includes reforms of the public sector reform – pension and health insurance, education system, reform of public companies, change of business structure, and promotion of the local economy competitiveness. The proposal will be first presented to experts to be then offered to the new Government.