Toespraak van Olli Rehn over de voortrekkersrol van het Servische zakenleven bij noodzakelijke hervormingen(en)

Serbian Business Conference

Brussels, 20 October 2008

Ladies and Gentlemen,

I am glad to be here today to open this conference on Serbian Business and European Integration. I see this event as a positive sign that Serbia is, not only willing, but effectively moving towards European integration with confidence and determination. I would therefore like to thank the organisers, [Delta holding and the Serbian Chamber of Commerce], for taking the initiative. We have a lot to do together.

Many of you know my personal engagement in favour of the integration of all Western Balkans into the European Union. Factor of peace and stability, the European integration process is the major catalyst for reforms conducive to growth and prosperity.

We haven't yet reached the "end of history" in the Western Balkans and I am convinced that 2009 can be a year of clear progress for the whole region towards Europe. Serbia obviously holds a central place in this agenda and I believe that, if conditions are met, it could get candidate status next year.

It is my deep conviction that the business community has a central role to play to help realising the European perspective of the Western Balkans region. You are the ones that can really push the reforms forward.

We share the common goal of improving the business environment, in the region in general, and in Serbia in particular.

We have the tools for that: our network of association and stabilisation agreements, together with the Central European Free Trade Agreement, set a legal framework conducive to trade and investments. Those free trade arrangements are for sure contributing to an increased interest by foreign investors. In this respect, I welcome the decision taken by the Serbian government last week to start unilaterally implementing the interim agreement. This is a sign of genuine commitment to the EU agenda.

Serbia is anyway already a natural spot for investments: it has a strategic location in the centre of the Balkans with a relatively strong economy, a productive and skilled workforce and an infrastructure which is improving.

With 56% of Serbian imports and exports, needless to say that the EU is by far the major trade partner of Serbia. And, with 7 out of the 10 top investors in Serbia, the EU is also the main source of foreign direct investment, as confirmed by recent major investments.

At the same time, the Serbian business climate faces many challenges. Free trade and market access are essential for trade and investments. But lowering tariffs is not enough. For any potential investor a stable, transparent and predictable legal and administrative environment is also crucial when choosing the best investment location.

In many ways, the EU approximation process is also contributing to improve the conditions for making business and investments in Serbia. Adherence to the EU common values and rules, in areas such as competition, state aid, public procurement, free movement of capital, social rights, consumer protection, or protection of environment, has proved the best guarantee for economic success.

But above all, investors need a functioning judicial system. In the legal vacuum that followed the collapse of former Yugoslavia, corruption, organised crime, tax evasion, financial fraud, as well as grey economy emerged as serious problems in all countries in the region, including Serbia. They have for long been averse to growth and foreign direct investments.

Drastic remedial actions need to be taken as a mater of urgency. Justice, freedom and security, including fight against corruption and organised crime, are therefore EU priorities in Serbia and in all the Western Balkans.

Ladies and Gentlemen,

I am convinced that the SAA will strongly contribute to an improved business climate in Serbia. I hope that Serbia will very soon fulfil the remaining condition for allowing the EU to start the SAA ratification process,

However, the mere signing of the agreement is not sufficient. In the current context of global financial turmoil, where countries are competing for investments even more than before, strengthening the rule of law and maintaining macro-economic stability are decisive for FDI and key elements to create an environment which is truly conducive to economic growth.

The Commission is committed to continue supporting the necessary reforms in Serbia to facilitate its accession to the European Union. But ultimately, we rely on you, on the economic operators, to promote the respect of those rules, in a fruitful dialogue with policy makers and civil society. This is in your direct interest as economic operators; it is in the interest of the Serbian people as a whole. The wider the consensus on EU integration, the faster Serbia will move towards EU membership.

Thank you