Belgrade, March 30, 2010

SERBIA – FIRST NATIONAL CONFERENCE ON DECENTRALIZATION

TADIC: DECENTRALIZATION MUST NOT BE ABUSED

BELGRADE, March 29 (Tanjug) - President Boris Tadic said that the process of decentralization must be implemented for the sake of state stability and that any political abuse of that process can produce the contrary effect of state destabilization. Opening at the Serbian parliament the first national conference on decentralization, Tadic said that Serbia must find fresh solutions in this process rather than rely on decentralization models from the past or those used by some large countries. Any wrong approach to decentralization is dangerous and can be counter-productive and cause social shocks instead of improvement, he said. Decentralization is a long process for which large-scale preparations are necessary in transport and telecommunications, he said. Noone needs a municipality if there is no road by which it can be reached, he said. Investments in the road network are therefore a national priority in the coming decade, he said. The map of economic activity and infrastructure is congruent with the population map, which means that where there is no population, there can be no economic development, Tadic said. Depopulation and migration of the population from some parts of Serbia is the greatest problem in Serbia today, he emphasized. Serbia's territorial organization should secure normal functioning of day-to-day living in all parts of the country, Tadic noted. This cannot be done overnight or on the basis of wishful thinking, he said. Serbia's second major problem is the destruction of the education system, which already has far-reaching consequences, he said. Investing in education and science is investing in the future, and decentralization cannot help Serbia if it does not invest in education, he said. If it has no funds of its own, Serbia must contract debts in order to invest in the future, Tadic said.

DINKIC: ENTREPRENEURSHIP PRIORITY IN DECENTRALIZATION

BELGRADE, March 29 (Tanjug) - Developing entrepreneurship and local self-rule capacities and construction of road and railway infrastructure should be the main priorities in the decentralization process in Serbia, Minister of Economy Mladjan Dinkic said. Addressing the first national conference on decentralization, Dinkic pointed to the need for restitution of assets to local self-governments and for adopting relevant legislation as soon as possible. Successful implementation of the decentralization process depends on political decentralization and on creating regional authorities, he said. Dinkic expects the recently created National Agency for Regional Development to provide all the necessary support to regional development agencies.

DECENTRALIZATION TO BE ACCOMPANIED BY LOWER PUBLIC SPENDING

BELGRADE, March 29 (Tanjug) - Minister of Finance Diana Dragutinovic said that a successful decentralization in Serbia has to be accompanied by a reduction in public spending, both locally and provincially. Fiscal decentralization is inevitable, but the process will involve a large number of political and operational challenges, Dragutinovic said at a national decentralization conference. Dragutinovic stressed that the government faces a challenge in trying to reduce the differences in development between regions and increase coordination between local authorities, adding that it also needs to think hard about the effects that any central government decisions might have on the local communities. Dragutinovic noted that decentralization in itself does not necessarily lead to a more efficient resource allocation. The minister also emphasized the importance of three new bills for local governments - bill on securities, public debt and property tax. According to Dragutinovic, the securities bill should enable municipalities to create debt by issuing municipal bonds, while the public debt bill would release the central government from the responsibility of paying that debt. Dragutinovic described the property tax bill as key to providing independence to local communities, because it will be a source of additional revenue for the local authorities.

EU SUPPORTS DECENTRALIZATION IN SERBIA

BELGRADE, March 29 (Tanjug) - Head of EU Delegation to Serbia Vincent Degert said that the EU welcomes reforms and decentralization in Serbia, stressing that it is shown by the union's past, present and future assistance to Serbia.Speaking at a conference on decentralization, Degert stated that the EU has provided more than EUR 200 million as support. The two-day national conference, which is also attended by a number of international organizations, was opened by President Tadic. Degert explained that the EU does not have a general model for decentralization, and that each member country implements its own, adding that Serbia also has to find the model that suits it best. The key principle is to bring decision making as close to the citizens themselves as possible, said Degert, adding that decentralization should give more power and more responsibility to the people. Thomas Moore, deputy head of OSCE Mission to Serbia, said that the goal of decentralization is to bring the power closer to the people, and that the OSCE considers it vital to its support for Serbia. Decentralization will bring economic benefits by removing monopolies, as well as political benefits by involving the people more directly in making the decisions that will affect their lives, said Moore. The OSCE official stressed that Serbia was not forced into decentralization by anyone from the outside, but that it decided to do so for the purpose of its own development. Constantin Yerocostopoulos, special representative of the Council of Europe secretary general in Serbia, said that the council pays special attention to the regions it considers fundamentally important for democracy. The council supports the implementation of EU standards to create successful local governments and establish independent local communities, said Yerocostopoulos.

SERBIA

TADIC SENDS TELEGRAM OF CONDOLENCES TO MEDVEDEV

BELGRADE, March 29 (Tanjug) - Serbian President Boris Tadic has sent a telegram of condolences to Russian President Dmitry Medvedev, on the occasion of the terrorist attack in the Moscow metro in which at least 37 people were killed and 65 were injured. "Accept my most sincere condolences. The Serbian citizens deeply sympathize with the families of the victims and the people of Russia in this difficult moment," Tadic said in the message.

CVETKOVIC OFFERS CONDOLENCES TO PUTIN

BELGRADE, March 29 (Tanjug) - Prime Minister Mirko Cvetkovic sent a telegram of condolences to his Russian counterpart Vladimir Putin for the victims of the terrorist attack in the Moscow subway. "Please accept our deepest condolences for the tragic loss of lives of Moscow's citizens. The government and the people of Serbia sympathize deeply with the families of those killed or injured and with the friendly Russian people," says the telegram.

DACIC: JOINT FIGTH AGAINST TERRORISM IS A MUST

BELGRADE, March 29 (Tanjug) - Interior Minister Ivica Dacic has assessed that the terrorist attack that happened in the Moscow metro shows that a joint fight of all the countries against international terrorism and organized crime is a must. Dacic told the reporters at the Serbian parliament that the joint fight against terrorism and organized crime must apply to all the countries and that the attack in the Moscow metro shows that this could happen anywhere. Earlier, he expressed condolences to the Russian Federation, Emergency Situations Minister Sergey Shoygu and the families of the victims of this terrorist attack.

KONUZIN THANKS SERBIA FOR SOLIDARITY

BELGRADE, March 29 (Tanjug) - Russian Ambassador to Serbia Alexander Konuzin thanked Serbia's citizens for the expression of solidarity with the victims of the Moscow subway tragedy when two planted explosions killed 38, and injured more than 60 persons. In a statement, the ambassador reiterated the words of Russian Federation President Dmitri Medvedev that Russia will continue the relentless fight against terrorism, and added that the country counts on active cooperation with the relevant services in Serbia. Serbia's officials and citizens have been sending their condolences for the victims of the tragedy in Russia's capital via phone and mail to the Russian embassy in Belgrade since early Monday morning, the Russian ambassador said. Early Monday morning, two female suicide-bombers set off exploding devices on two packed subway trains at the Lubjanka and Park Kultury stations.

RULING MAJORITY DEPOSED CHAIRMAN OF THE COMMITTEE ON SECURITY

BELGRADE, March 29 (Tanjug) - The ruling majority has deposed Chairman of the parliament Committee on Defense and Security Dragan Todorovic, due to abuse of office for party and personal promotion and disabling of the work of this body. Todorovic and SRS representatives dismissed all government's accusations, claiming that the government is selective in the fight against crime. After Todorovic was relieved of chairman duty, Dusan Bajatovic from the Socialist Party took over the chairmanship of the sitting. Interior Minister Ivica Dacic previously told the reporters that every information disclosed at the committee sitting, which is relevant for the police, will be investigated. Dacic said that he and his colleagues from the police were invited to attend the committee sitting, and pointed out that there was no coordination in the committee's work while it was headed by Todorovic.

MILETIC & CAMPORINI: MILITARY COOPERATION SHOULD BE PROMOTED

ROME, March 30 (Tanjug) - Chief-of-staff of the Serbian Armed Forces Miloje Miletic and Chief of Defence General Staff of the Italian Armed Forces Vincenzo Camporini stated that there is potential for the promotion of the cooperation between the two armies which was so far good, particularly in the domain of training and education. Miletic conferred with Camporini on the current security situation in the region and the relations between the two armies, the Serbian Military released in a statement. Miletic visited the Italian defence headquarters in Rome and learned about the engagement of the Italian armed force members in international missions.

SERBIA – EU

DJELIC: AGREEMENT ON EUR 200 MILLION ASSISTANCE TO BE SIGNED

BELGRADE, March 29 (Tanjug) - Deputy Prime Minister for EU Integration Bozidar Djelic stated that he will sign a EUR 200 million agreement on macro-financial assistance to Serbia in April. Djelic told at the conference dubbed Toward Serbia of Better Competitiveness in the Hyatt Hotel that the agreement will be signed with newly-elected European Commissioner for Economic and Monetary Policy Olli Rehn and recalled that EU has already granted EUR 100 million of non-refundable funds as support for the Serbian budget.

JUDICIARY REFORM BACKBONE OF EUROPEAN INTEGRATION

BELGRADE, March 29 (Tanjug) - Justice Minister Snezana Malovic said that reform of the country's judiciary is one of the pillars of European integration, and added that Serbia wants an efficient judicial system which will make justice accessible. "European integration is a big job, demanding perseverance, patience and a long-term engagement, and the path to the European Union is long and calls for a thorough reform of the society. Judiciary reform is perhaps the backbone of the entire project," Malovic said at a consultative meeting with representatives of top judicial bodies and members of diplomatic corps. The minister said that the judiciary reform is one of the hardest tasks Serbia is facing, and added that she cannot rest while citizens mistrust judicial institutions. Come to terms with seeing citizens She also pointed out that organized-crime groups have their tentacles spread in the judiciary. As a member of the High Judicial Council (VSS), the minister said she will do everything she can to resolve all open issues and dilemmas in a way suggested by the EU, since the European values are "our priority, and everyone in VSS strives for their realization." Malovic announced the continuance of the cooperation with the ICTY in The Hague, and expressed expectations that a positive report given by its Chief Prosecutor Brammertz will yield results. She also expressed hope that Mladic and Hadzic will be arrested and extradited to The Hague. Malovic said that setting the Belgrade embassies aflame in 2008 was a disgrace for Serbia, and sent an apology to "the friends from the US, Germany, Croatia and other countries whose missions were damaged on that occasion." "I expect that the judicial bodies will make decisive rulings in the criminal proceedings and point their fingers at masterminds behind this criminal act and the vandals that disgraced Serbia," Malovic underscored.

BALAS: HUNGARY TO HELP WESTERN BALKAN COUNTRIES

BUDAPEST, March 30 (Tanjug) - The Greek proposal that all Western Balkan countries join the EU by 2014 is not realistic, but Hungary wants to help the region in European integration, Hungarian Foreign Minister Peter Balas said. After a meeting attended by Serbian Foreign Minister Vuk Jeremic and Greek Deputy Foreign Minister Dimitric Drucas, Balas said that he believes 2014 is unrealistic as the target year for EU membership, because each country needs to meet the accession criteria. The Hungarian minister added that the ratification of the accession agreement with Croatia will certainly begin in 2011, while Serbia and Macedonia will have to wait a few more years, Hungarian news agency MTI reported. Hungary wants the whole region to make progress toward the EU and diminish the differences between states, Balas stressed.

STEINBERG CALLS SERBIA'S EU PROGRESS ENCOURAGING

WASHINGTON, March 30 (Tanjug) - U.S. Deputy Secretary of State James Steinberg said that Serbia's progress in EU integration is encouraging and added that during his visit to Belgrade early in April, he will also discuss issues the two countries disagree on, primarily the status of Kosovo. Announcing his visit to the Western Balkans, which he will begin in Ljubljana, Slovenia, on April 6, Steinberg said that the current U.S. administration has been committed to stability and prosperity in the Balkans since the start of its term. After Ljubljana, Steinberg will visit Sarajevo, Belgrade, and Pristina. Steinberg said that his talks with Serbian officials will touch on the relations between Belgrade and Pristina. We admit we have some disagreements but also common interests. We will discuss how to overcome those differences. The important thing is to prevent instability in the region, he pointed out.

SERBIA – REGION

DACIC: SERBIA REGIONAL LEADER IN FIGHT AGAINST CRIME

BELGRADE, March 29 (Tanjug) - Minister of Interior Ivica Dacic said that the country has become the regional leader in fight against organized crime and cooperation of prosecutor's offices in fighting all kinds of violations of law. The minister pointed out that the state bodies are successfully working on a task which is defined as one of the priorities of the country's politics - fight against organized crime, terrorism and corruption. This is the result of "great cooperation" with the judicial bodies and security services, which is coordinated in the National Security Council, Dacic said at a session of the Defense and Security Committee. He reminded that there have been numerous successful operations of the Serbian Police in the region and world in 2009 and 2010, and stressed the good results of the Security-Information Agency (BIA), pointing out that great contribution to fight against organized crime, drug mafia, and other forms of crime has been made, which significantly improved Serbia's credibility as a state. Dacic underscored that the police is engaged in fight against high-tech crime as well, and added that there have been several actions in cooperation with foreign police services during which a number of victims of child pornography were identified. After that, the criminals were processed, and, thanks to the information of the Ministry of Interior (MUP), the FBI in the USA arrested a great number of people for the spread of child pornography contents. The minister underlined that there are international actions in which MUP is included, such as the project of fighting organized Albanian criminal groups that act all around the world.

SERBIA – ECONOMY

MRKONJIC: CORRIDOR 10 TO BE COMPLETED ON TIME

BELGRADE, March 30 (Tanjug) - The highway through Serbia will become part of the main European traffic artery, said Minister of Infrastructure Milutin Mrkonjic, pointing out that Serbia's most important roadway will be built, despite difficulties and individual interests. In an interview for Vecernje novosti, Mrkonjic said that construction of Corridor 10 is not behind schedule, as some claim, and noted that thorough preparations were needed. "Only in the last year and a half we have begun working on the main projects and expropriation in order to be able to use the loans approved by the World Bank and the two European banks. We have now met those terms, though not entirely, because all projects will not be completed until May 1," Mrkonjic said. He announced that construction will start this year on 110 kilometers of the north section of Corridor 10 - the left lane from Horgos to Novi Sad, and the Y section to Kelebia. In southern Serbia, construction of a 26,3 kilometer leg from Vladicin Han to Donji Neradovac is planned. EUR 123 million will be spent on the project.

DEUTSCHE TELEKOM IS INTERESTED IN TELEKOM SRBIJA
BERLIN, March 29 (Tanjug) - Deutsche Telekom is interested in Serbian phone company Telekom Srbija, in which the Belgrade government intends to sell a 40 percent stake, the German company said, German daily Bild writes. "Telekom Srbija fits with our takeover strategy," a company spokesman said, noting it was keen to round out its existing operations in southern and eastern Europe. He declined to go into more detail. Serbia plans to auction an estimated EUR two billion stake in Telekom Srbija, the country's most successful state-run firm , in September, the paper writes.

KOSOVO & METOHIJA

GUTTENBERG: ICJ DECISION CAN INFLUENCE KOSOVO

PRISTINA, March 30 (Tanjug) - German Defense Minister Karl-Theodor Guttenberg said in Pristina that the ICJ decision on the legality of Kosovo's unilaterally declared independence can have consequences for its future, noting that the international armed forces in Kosovo are nearing the end of their mandate. After a meeting with Kosovo President Fatmir Sejdiu and Prime Minister Hasim Taci, Guttenberg said that Germany will not change its position on Kosovo. Germany will not change its position. As far as the ICJ decision on Kosovo's status, we need to wait and see. It will influence some other things important for Kosovo's future, said the German defense minister. After the meeting with Sejdiu and Taci, he said that KFOR reduced its forces due to improved security in Kosovo, and that a new reduction depends on how the situation develops in the future.