Belgrade, May 11, 2010

SERBIA – ITALY

TADIC & FINI PLEASED WITH BILATERAL RELATIONS
BELGRADE, May 10 (Tanjug) - President Tadic and President of the Italian Chamber of Deputies Gianfranco Fini noted that bilateral relations are at a very high level, Tadic's press office said. Tadic thanked Fini for Italy's support to Serbia's integration in the EU. During his meetings earlier in the day with Serbian officials, Fini said that the Italian parliament is prepared to be the first to ratify the SAA with Serbia.

CVETKOVIC & FINI: ITALY WILL RATIFY SAA WITH SERBIA
BELGRADE, May 10 (Tanjug) - President of the Italian Chamber of Deputies Gianfranco Fini said after the meeting with Prime Minister Cvetkovic that the Italian parliament is prepared to be the first to ratify the SAA with Serbia when the time comes. Italy's support is important for Serbia's integration in the EU, he said. Cvetkovic said that integration in the EU and protecting sovereignty and territorial integrity are Serbia's main foreign policy goals and thanked Italy for its strong support to that end, the government said. Fine and Cvetkovic pointed to good bilateral economic cooperation, which will continue to be fostered through Italy's more active participation in regional projects in infrastructure, transport and energy.

DEJANOVIC & FINI: EU SHOULD ADMIT BALKAN COUNTRIES AS SOON AS POSSIBLE
BELGRADE, May 10 (Tanjug) - President of the Italian Chamber of Deputies Gianfranco Fini stated that Serbia is a part of the EU and that the EU should accept the Balkan countries as its members as soon as possible, adding that the Italian parliament is prepared to be the first to ratify the SAA with Serbia when the time comes. After the talks with Serbian parliament speaker Slavica Djukic-Dejanovic, Fini said that Serbia is a part of the EU both geographically and culturally and that it is necessary for the EU to round off its map and include the Balkan countries in it. According to him, the Italian parliament is ready to be the first parliament of a EU member state to ratify the SAA when the time comes, which is a very important step on Serbia's EU pathway. Fini said that when Serbia joins the EU, the relations between Belgrade and Rome will become much stronger. Djukic-Dejanovic said that 131 years of diplomatic relations between Serbia and Italy should be treated as an obligation to intensify all forms of cooperation between the two countries in a political, economic and parliamentary sense. She thanked Fini, on behalf of all Serbian MPs, on Italy's great support and understanding on Serbia's EU pathway.

SERBIA

JEREMIC: COE TO STAY FOCUSED ON STATUS-NEUTRAL INITIATIVES
STRASBOURG, May 11 (Tanjug) - Foreign Minister Vuk Jeremic pointed out that the country is fully committed to the Council of Europe's (CoE) core values, and called on the oldest pan-European organization to stay focused on status-neutral initiatives when it comes to Kosovo. Addressing the participants of the 120th Session of the Committee of Ministers of CoE, Jeremic reminded that one of the most delicate matters facing the Council of Europe space - and one which is of fundamental importance for Serbia - is the disputed status of the province of Kosovo, and emphasized that the country's peaceful and principled policy regarding the province will not change. The minister evaluated that Serbia is approaching "a new, more promising moment on Kosovo." "In the time ahead, we should come together to find a way to resolve the issue in a way that is acceptable to all responsible stakeholders," Jeremic said. "Parallel to such a hopeful development, everything should be done to avoid acrimonious and divisive debates on Kosovo in fora such as this one," he pointed out. "That is why we feel that the status-neutral initiatives of the Council of Europe should continue to be the focus of its work," the minister assessed. "Non-controversial projects such as safeguarding and reconstructing Serbian patrimonial sites will preserve our Organization's unity and contribute to reducing tensions on the ground. They should also help build momentum for achieving the ultimate goal: a historic compromise between Serbs and Albanians," Jeremic underscored. Pointing out that Serbia and CoE share dedication to enhance regional cooperation and promote good neighborly relations, the minister added that the country looks forward to a successful conference on the European future of the region to be held in Sarajevo on June 2, under the auspices of the Spanish EU presidency. "We expect the participants to agree that completing the democratic transformation of the region is a priority of the first order. We hope we will receive unanimous support for an energetic European policy of integration of the Western Balkans, "Jeremic said. According to him, one of the topics to be addressed in Sarajevo will be how to assure a better future for Bosnia and Herzegovina. "Here I wish to underline our firm commitment to our 'One-Bosnia Policy,' and to emphasize our absolute dedication to full reconciliation. We stand ready to work closely with our Bosnian neighbors and our Council of Europe partners in order to resolve outstanding issues," the country's foreign minister emphasized. Jeremic reminded that since its admission to the Council of Europe, Serbia has worked hard to complete all its obligations to the oldest pan-European organization, and added that the country's parliament has ratified sixty-eight of the CoE's conventions and protocols. "We support the process of reform of the European Court of Human Rights, and welcome the forthcoming entry into force of Protocol 14 of the European Convention for the Protection of Human Rights and Fundamental Freedoms," he stressed. "Serbia is also coming to the end of rule of law sector reforms, and we have raised our human and minority rights standards to the highest levels. This notably includes the protection of the rights of Roma and other vulnerable groups," Jeremic said, and added that as a result of the country's efforts, the Committee of Ministers has decided to raise the level of cooperation with Serbia to a dialogue-based, regular stocktaking one. "I believe all of us share an interest in fostering a common European identity. In my view, this laudatory goal is predicated on consolidating a Europe without dividing lines-the only way to achieve lasting stability across the Old Continent, "Jeremic concluded.

OFFICIALS OFFER CONDOLENCES TO RUSSIA ON MINE BLAST
BELGRADE, May 10 (Beta) - President Tadic sent a letter of condolences to his Russian counterpart Medvedev following the explosion of methane gas in the Raspadskaya coal mine in Siberia, in which, according to the latest information, 30 people were killed, while 60 people are still trapped inside the mine. "Please accept my deepest condolences on behalf of the entire Serbian people and myself," Tadic said, adding: "We most sincerely sympathize with the families of the victims and the Russian people." Parliament Speaker Slavica Djukic-Dejanovic also offered her condolences, saying that Serbia's citizens share the pain of the families of the victims and the people of Russia.

DJUKIC-DEJANOVIC, BRADIC & FINI AT ARTE POVERA EXHIBITION
BELGRADE, May 10 (Tanjug) - The Italian Cultural Institute in Belgrade opened an exhibition, named after the art direction Arte Povera, which contains a part of the collection belonging to the Contemporary and Modern Art Museum of Trento and Rovereto from Italy. Italian Ambassador Armando Varricchio welcomed the guests at the event, among whom were Russian Ambassador Konuzin, Austrian Ambassador Clemens Koja, representative of Fiat Automobiles Serbia Giovanni De Filippis, President of the Italian Chamber of Deputies Gianfranco Fini, Parliament Speaker Slavica Djukic-Dejanovic and Minister of Culture Nebojsa Bradic, and he pointed out that Serbia and Italy have strong links in all fields, especially in culture. The domain of culture is the best example of the cooperation between the two countries' institutions and of the private sector's involvement in projects of mutual interest, said Varricchio and thanked De Filippis for Fiat's donation that made the exhibition possible. Bradic stated that the event is "a model and example of how cultural cooperation is conducted and a result of institute's hard work, which demonstrates how art can strrengthen the good relations between Serbia and Italy." Djukic-Dejanovic noted that the institute has great significance in strengthening the relations between the two nations, and she promised that the Parliament will in the future put bills that expand the spiritual and cultural cooperation with the world among its priorities, besides with vitally important documents.

GORDON'S VISIT TO PROMOTE BIDEN'S MESSAGE
BELGRADE, May 11 (Tanjug) - During his upcoming visit to Belgrade, U.S. Assistant Secretary of State Philip Gordon will promote Vice-President Joseph Biden's message that despite their differing stands on Kosovo, the U.S. and Serbia should work to improve cooperation in all other areas, the U.S. Embassy in Belgrade told. Gordon will visit Serbia, Macedonia and Kosovo from May 10 to 14, where he will meet with government officials and representatives of civil society and non-government organizations. During his visit to Serbia, Gordon will re-enforce the message Vice President Biden relayed last year that Serbia and the U.S. have different stands on Kosovo but that the U.S. encourages Serbia to establish cooperation with Kosovo in practical matters and also endeavors to strengthen cooperation between the U.S. and Serbia in other areas, U.S. Embassy Press Attache Brian Stimmler told. According to him, Gordon will meet with Kosovo authorities to encourage the strengthening of Kosovo institutions and decentralization, and he will reiterate that the status of Kosovo is settled. Gordon is the second top Washington official to visit Serbia in just over a month. Deputy State Secretary James Steinberg visited Serbia, when he called Serbia a key U.S. partner in the region and expressed support for Serbia and the region's EU integration.

SERBIA – REGION

JEREMIC: NO OFFICIAL INFORMATION ON AGREEMENT FOR SARAJEVO
STRASBOURG, May 11 (Tanjug) - Foreign Minister Vuk Jeremic stated that he had not been informed officially on whether an agreement on a format of participation of the Pristina authorities in the upcoming ministerial conference EU-Western Balkans, scheduled to be held in Sarajevo in June, had been reached. "Although we expect a positive outcome of the talks on the format of the Serbian conference, we have yet to be informed officially about a comprehensive solution being reached," said Jeremic. Our stand has not changed - Pristina has to be presented in keeping with UN SC Resolution 1244 and in the presence of UNMIK and not as a sovereign state, added Jeremic. Jeremic said that Serbia and Spain, as the main sponsor of the conference, had reached an agreement that he believes will be carried out.

MORATINOS: AGREEMENT REACHED ON SARAJEVO MEETING
BRUSSELS, May 10 (Beta) - Agreement has been reached to hold a EU-Western Balkan conference in Sarajevo, in June, as an unofficial Gymnich meeting of "all sides," mirroring EU ministerial sessions, Spanish Foreign Minister Miguel Angel Moratinos said in Brussels. This was the reply Moratinos, chair of the EU Council of Ministers, gave at the end of a meeting of EU foreign ministers when asked if Serbian officials and representatives of the Kosovo authorities in Pristina, UNMIK and the EU envoy would take part in the gathering. He said he could confirm that the Sarajevo conference was well prepared and that agreement had been reached on the Gymnich formula with all sides. Moratinos explained that the conference would be big, allowing a bottom line to be drawn of what had been done after a top echelon EU-WBalkan meeting 10 years ago in Zagreb. He went on to say that the gathering would also provide a view into the future of relations between the countries of the WBalkans and the EU. The EU wants not only the participation of its 27 members at this conference, but also that of the U.S., the Russian Federation and Turkey, so that they can contribute to the stability and guarantee the future of the entire region together, he stated.

DEJANOVIC: POSTPONING KRIVOKAPIC'S VISIT HAS NO POLITICAL BACKGROUND
BELGRADE, May 11 (Tanjug) - The Postponement of the visit of Montenegrin parliament President Ranko Krivokapic had no political background, parliament President Slavica Djukic-Dejanovic said for Vecernje Novosti. "Owing to parliamentary activities on May 18, for which the meeting was scheduled, it was not possible for me to devote an entire day to the guest. Rescheduling is usual in diplomacy, it has happened to me several times and there is no reason fore anyone to get upset," clarified Dejanovic. Dejanovic believes that there will be no problems for Krivokapic to accept to visit some other time, despite the fact that his visit had been already rescheduled twice, and she hopes that he would be able to come during the summer months. When asked weather it was true that Serbian Ambassador Lutovac had influenced the postponement of the visit in order for the visit not to be used in the local election campaign, Dejanovic replied that she did not communicate with him and that she is not a person that can be pressured.

ROCEN COMMENTS ON POSTPONED VISIT OF PARLIAMENT SPEAKER
PODGORICA, May 11 (Tanjug) - Montenegrin Foreign Minister Milan Rocen said that he wants to believe Belgrade's reasons for postponing the visit of Montenegrin parliament speaker are real, but should they prove otherwise, it will be to Serbia's detriment. "I want to believe that the reasons Belgrade gave for postponing the visit are the real reasons. But if they prove otherwise, it will only be to Serbia's, and certainly not Montenegro's, detriment," Rocen said. He said that he does not believe someone in Belgrade would want to work against their own interests."If the delay is someone's way of helping the pro-Serbian opposition ahead of the local elections in Montenegro, they did not think the move through, because it will backfire," Rocen pointed out.
SERBIA – EU

DJELIC HOPES SAA RATIFICATION WILL BEGIN IN MID JUNE
BRUSSELS, May 11 (Tanjug) - Deputy Prime Minister Djelic has requested support from the European officials for the continuation of Serbia's EU integration, and expressed hope that the ratification of the SAA could begin already in June. Based on the positive report that we expect from the visit of ICTY Prosecutor Brammertz, I requested support for launching the SAA ratification process before the EU Council of Ministers in mid-June, Djelic said addressing the World Economic Forum on Europe in Brussels, Deutsche Welle reports. "At the same time, I have appealed to the EU to form a consensus and give the green light to the European Commission to consider Serbia's request for membership candidacy, submitted in Dec 2009," Djelic said. Djelic believes that the latest economic turmoils within the EU and the establishing of a European mechanism for protection of financial stability of the EU member states will affect the conditions for EU accession, which will be more demanding and strict. According to him, the EU will no longer "tolerate the EU accession of the countries that are not fully prepared," which can also be an opportunity to obtain greater support for Serbia and other Western Balkan countries. After the meeting with Djelic, EP President Jerzy Buzek referred to Serbia's fight against crime, particularly when it comes to the processing of war crimes, stressing that he is familiar with Djelic's position regarding this matter and that the EU expects concrete steps in that direction. The Serbian citizens's dream of Europe can come true with hard work, Buzek said. Serbia has begun working hard and has already made progress in respect of the cooperation with the EU. The WBalkans is important for the EU, and Serbia plays the key role in the region.

VUKCEVIC: WE DO EVERYTHING WE CAN TO COMPLETE COOPERATION
BELGRADE, May 10 (Tanjug) - War Crimes Prosecutor Vukcevic said that the Chief Prosecutor of the ICTY Serge Brammertz will during his forthcoming visit to Belgrade be able to see once again firsthand that Serbia is doing everything it can to complete its cooperation with ICTY. He said that this Brammertz's visits will be a little more important since after it he will send his report to the UN SC on Serbia's cooperation with the ICTY. "Whenever he comes, he will only see for himself that we all work hard to reach the end goal," Vukcevic said for TV B92. Answering the question whether Serbia is closer to its goal, that is, locating and arresting Mladic and Hadzic, Vukcevic said it is hard to say anything on the subject, because whenever anything was said there was always something wrong. As announced, Brammertz will visit Belgrade on May 12-13, just ahead of the regular submission of the report on Serbia's cooperation with the ICTY to the UN Security Council in June this year.

KACIN SUPPORTS SERBIAN JUDICIARY REFORM
BELGRADE, May 10 (Tanjug) - European Parliament Rapporteur for Serbia Jelko Kacin has expressed at a meeting with Justice Minister Snezana Malovic his strong support to the reform of the Serbian judiciary sector, the Justice Ministry said. At the meeting, Kacin commended the results achieved so far in this process. He also pointed to the need for pursuing reform endeavors in order to secure unhindered rule of law and equality of all before the law. The judiciary reform is crucial for enabling Serbia to move to the next phase of the process of its integration in the EU, he said.The issue of restitution is one of the key problems that might be resolved in a near future, he said. Kacin also pointed to the importance of regional cooperation in fighting organized crime and corruption and in holding war crimes trials. Malovic pointed to the importance of the support of all EU institutions to Serbia in the process of its EU integration, the release says. She reiterated Serbia's readiness to continue reforming all segments of its judiciary sector in order to reach the desired standards.

PROELL: AUSTRIA WILL STAND BY SERBIA ON ITS WAY TO EU
FRANKFURT, May 11 (Tanjug) - Austrian Vice Chancellor and Finance Minister Josef Proell has stated that his country will stand by Serbia on its way to Europe. "I have told Serbian Prime Minister that we are interested in starting talks on Serbia's accession in the EU. We will be an honest partner in the process. It is clear that there will be numerous problems on the way to Europe and that time is needed, but we will stand by Serbia," said he. "We also discussed the crisis, that is how to handle it. We agreed that both states are faced with a big challenge and that we have to reduce both the debt and deficit. Otherwise we will end up in the same situation as Greece," said Proell for Frankfurt-based Vesti. Proell said that the Agreement on double taxation evasion sends out a clear signal to Ausria's entrepreneurs that their investments are safer now.

KOSOVO – METOHIJA

IVANOVIC: SERBIA TO JOIN EU WITH CONSTITUTIONAL BORDERS
BELGRADE, May 11 (Tanjug) - Serbia will join the EU with the borders defined in its Constitution and before the Kosovo issue is resolved, believes State Secretary with the Ministry for Kosovo-Metohija Oliver Ivanovic. Ivanovic pointed out that it is important that Serbia meet all membership requirements. Asked with what territory Serbia will join the EU, Ivanovic said that this is a matter of debate, albeit an imposed one. "Serbia's integrity is defined in its Constitution. This means we can rightfully speak about Serbian territory as defined by this highest legislative act... and it includes the territory of the autonomous province with 10,880 square kilometers and around two million people," Ivanovic pointed out. Ivanovic believes no one can say how many people live in Kosovo nor will this be known in the near future. Still, Ivanovic does not see this as an obstacle and mentions the example of Cyprus where the size of the Turk population in the north was also unknown at the time of the country's EU accession. Even though the EU has dismissed the possibility of following the same model saying that it will not repeat the mistake it made with Cyprus, Ivanovic claims that the EU has no choice and that it was not Serbia that created the "Cyprus model." He reminded that the EU has shown that it considers Kosovo Serbian territory in several ways, including visa liberalization. In support, Ivanovic also noted the fact that the Turks and the Greeks in Cyprus only became willing to negotiate a possible sustainable solution five or six years after the country joined the EU. When it comes to solving the Kosovo issue, Ivanovic said that Belgrade will not negotiate with the Kosovo authorities directly, because that would mean it "accepts the institutions of the independent state of Kosovo." Talks will resume after the ICJ renders its opinion, Ivanovic said, but until then there is only indirect contact though Brussels, international representatives and UNMIK in order to solve certain problems.

MALOVIC: SERBIA IS WILLING TO INVESTIGATE ALL CRIMES
BELGRADE, May 10 (Tanjug) - Justice Minister Snezana Malovic assessed that the discovery of the potential mass grave in Raska, southern Serbia, is extremely important in determining the truth about the crimes committed in Kosovo-Metohija. Malovic pointed out that this is unambiguous evidence that Serbia is willing to investigate all crimes committed in the region. "We are completely willing to uncover the truth about all missing persons in Kosovo-Metohija and bring all perpetrators to justice," Malovic told. According to her, Serbia is expending maximum effort so that all those who committed war crimes are punished regardless of their nationality or the office they hold and that justice is served for victims and their families. "By discovering the mass grave in Raska, Serbia has once again shown its stance on its past and, at the same time, sent an unambiguous message that something like this will never happen again," the minister said. Malovic added that she expects the investigations into the fate of almost 2,000 missing Serbs and ethnic Albanians to intensify.

VUKCEVIC: MASS GRAVE DISCOVERED IN COOPERATION WITH EULEX
BELGRADE, May 10 (Tanjug) - The Office of the War Crimes Prosecutor, in cooperation with EULEX, has found a location in southern Serbia believed to be a mass grave containing dead bodies of 250 Kosovo ethnic Albanians, War Crimes Prosecutor Vladimir Vukcevic said. This is the sixth mass grave discovered on the territory of Serbia, and the second in size after the mass grave in Batajnica in which 750 dead bodies were discovered. Vukcevic told that the potential mass grave was found at Rudnica, near the town of Raska, in the vicinity of the location of Majdan which was searched for dead bodies several years ago without a result. This is our obligation towards the victims and their families. I remind you that our goal is to serve the justice, and to make it possible for the families of the victims to at least bury their beloved ones, the prosecutor pointed out. According to him, Serbia thus shows its determination to investigate every crime regardless of who was the perpetrator or the victim. "At the same time, I believe that this is the best way towards reconciliation in the region. As the country's War Crimes Prosecutor, I expect to get the answer to the question what happened with nearly 500 missing Serbs," Vukcevic underlined. He stated that all locations believed to be mass graves will be investigated, as well as all the related crimes. Vukcevic underscored that the war crimes prosecutor's office obtained the key information on the mass grave from EULEX, with which, as he put it, it has very efficient cooperation.

EULEX WAITING FOR BELGRADE'S CONFIRMATION OF MASS GRAVE
KOSOVSKA MITROVICA, May 10 (Tanjug) - EULEX is still waiting for an official confirmation from Belgrade whether the site in the village of Rudnica in southern Serbia is really a mass grave holding the bodies of 250 ethnic Albanians, EULEX Justice Spokesperson Kristina Herodes said. In a statement, Herodes said that EULEX puts a high priority on war crimes issues - especially in locating the remains of individuals still missing from the 1998-99 conflict and its aftermath. "We are still waiting for confirmation if this site has indeed been located. We cannot give more information at this time until the site has been confirmed to be that of a mass grave - and in order to protect the investigation," she said. According to her, EULEX has two principal departments that are involved in searching for mass grave sites and investigating the circumstances surrounding them - the Office on Missing Persons and Forensics (OMPF) and the EULEX War Crimes Investigation Unit.

KOSOVO DEPUTY PM: GRAVE DISCOVERY SHOWS SERBIA WANTS TRUTH
PRISTINA, May 10 (Beta) - Kosovo Deputy Prime Minister Rame Manaj said that the discovery of a mass grave near Raska showed that Serbia was willing to discover the truth about missing Albanians. "The discovery of the mass grave appears to show Serbia's willingness to shed light on the truth behind missing persons. The issue of missing persons can be addressed in Serbia and the truth can be revealed thanks to Serbia because it was the Serbian forces which organized everything that happened [the relocation of the remains]," said Manaj. "This means that we can realistically expect the truth about missing persons from Kosovo whose mortal remains were spread throughout Serbia to come directly from Serbia," said Manaj, whose own family has several missing members. According to him, Kosovo had information that between 250 and 400 people were buried at the site. Manaj recalled that Kosovo also had information on a new mass grave near Medvedja, but that it was exclusively for Serbia to investigate and uncover.

DACIC: GROUP THAT SMUGGLED KOSOVO ALBANIANS INTO EU ARRESTED
BELGRADE, May 11 (Tanjug) - Interior Minister Ivica Dacic said that police has arrested nine members of a criminal group that smuggled Kosovo Albanians into the EU through Serbia. Dacic told that Uka Sadat from Podujevo near Pristina headed the group with the help of Rifi Sabaduhin from Konculj near Bujanovac, and that there were also Serbs and Hungarians among the traffickers. Four illegal immigrants whom the group was planning to smuggle into Hungary were also discovered when the traffickers were arrested in Subotica, northern Serbia, Dacic told after signing an agreement on communal police training with Minister of State Administration and Local Self-Government Markovic. He specified that the group transported illegal immigrants from Kosovo into Serbia - by highway to Subotica and then across the Tisa River into Hungary, near the border crossings of Horgos and Kelebia.

SERBIA – ECONOMY

CVETKOVIC: INVESTMENT CLIMATE IN SERBIA IS EXTREMELY FAVORABLE
ZURICH, May 11 (Tanjug) - Serbia is committed to meet all of the necessary conditions to join the family of European countries and its priority is to see the SAA go into effect and to gain the status of an EU candidate state, Prime Minister Cvetkovic stated at the opening of a business forum in Zurich. He said that Switzerland and Serbia have traditionally good relations and that Switzerland is one of Serbia's important economic partners. "In the process of realization of European goals, we are confident that the cooperation with Switzerland will additionally strengthen Serbia's economy, increase its competitiveness and contribute to the promotion of Serbia's real sector," underscored Cvetkovic. He also said that during his talks with Swiss officials, possibilities of further promotion of cooperation in the areas of joint interest, as well as a possibility of stepping up the participation of Swiss companies in projects that are important for the Serbian economy, such as those in the areas of energy supply, agriculture, health and environmental protection, will be discussed. He also said that the investment climate in Serbia is extremely favorable and that systemic regulations in the field had been amended. The premier also said that slight economic recovery is expected in Serbia and growth rate of two percent of the gross domestic product. "The beginning of extensive infrastructural works on Corridor 10 is ahead of us this year, as well as modernization and reconstruction of the railway infrastructure along Corridor 10 and works on modernization of the Belgrade-Bar railroad. EUR 2.5 billion will be invested in those projects in the next three years," underscored Cvetkovic. He said that there is a plan to invest EUR 1.6 billion in the energy sector this year.

IMF: NO AGREEMENT ON BIGGER SALARIES AND PENSIONS
BELGRADE, May 11 (Tanjug) - The agreement on the growth of average salaries and pensions in the public sector will be the main topic of the forthcoming talks, head of the International Monetary Office (IMF) in Belgrade Bogdan Lissovolik has said for Politika, prior to the IMF mission's arrival in Belgrade on the occasion of the fourth revision of Serbia's stand-by arrangement with this institution. Even though the IMF representatives do not usually comment the talks with the Serbian authorities in public neither before nor during the mission's visit, this time Lissovolik said that there is still no agreement on the increase of salaries and pensions in 2010, the paper reports. Lissovolik said that the increase was not agreed upon in Washington at the Annual Meetings of the IMF and the World Bank, adding that in order to complete this issue, three different problems would have to be resolved at the same time.Firstly, can the increase rates of average salaries in the public sector and pensions be equal in the next few years, as the Serbian government proposes. Secondly, can Serbia afford these increases, fiscally and economically, in the next few years. And third, how will the Serbian authorities be committed to carry out certain increases without creating additional expenses in the state budget, Lissovolik pointed out. For now, regardless of having achieved progress in the first issue, there is no final agreement, Lissovolik said referring to the talks between the Serbian delegation and IMF representatives in Washington. We find these three issues inseparable and the agreement should imply the harmonization of attitudes regarding these three crucial things, Lissovolik underscored.

EU PACKAGE TO HAVE POSITIVE EFFECT ON SERBIA
BELGRADE, May 10 (Tanjug) - The EUR 750 billion financial package meant to stabilize the euro zone is a timely and clear signal that the EU ministers are determined to regain trust on the market and prevent further spread of the crisis, National Bank of Serbia Vice Governor Bojan Markovic said, adding that the stabilization will have a positive effect on all European countries, including Serbia. "We expect the adoption of the financial package for euro zone stabilization to stabilize the expectations of investors in all the countries of the region, including Serbia, and to strengthen national currencies compared to the euro," Markovic told. "A temporary sense of uneasiness in investors, caused by the crisis on some European markets, has led to their reduced willingness to take a risk in the region, which resulted in weakening national currencies in almost all of the region's countries," Markovic noted. EU ministers of finance decided to create a special fund for assistance to its members hit by the financial crisis. The EU will provide EUR 500 billion for the fund, while the IMF will secure another EUR 250 billion.