This document summarizes the key topics in the August 2014 issue of the business journal Synergy published by the National Alliance for Local Economic Development (NALED) in Serbia. It discusses NALED's role in advising the Serbian government during EU accession negotiations. It also provides summaries of interviews with EU and Serbian officials about the benefits and challenges of EU integration for Serbia's economy and businesses. Additional articles profile a successful town developing health and energy industries and NALED's work with the government on regulatory reforms to support businesses.

1. Goodbye
employment
record book
The Labor Law amendments in July
2014 brought the long awaited
reform introducing more flexible
labor market
REGULATORY FRAMEWORK
74p.
Playing the
economic game
Leo D’aes, Ambassador of Belgium:
With the help of its European
partners, Serbia has an opportunity
to reindustrialize according to the
needs of the future
PARTNERS FOR SUCCESS
98p.
Serbia’s
European path
Michael Davenport, Head of EU
Delegation: European union is the
largest donor and investor in Serbia
– the accession process will further
enhance this
IN SYNERGY
NO
4 | AUGUST 2014 BUSINESS JOURNAL OF THE NATIONAL ALLIANCE FOR LOCAL ECONOMIC DEVELOPMENT FREE COPY
IN FOCUS
EUROPEAN UNION
ON THE HORIZON
WWW.NALED-SERBIA.ORG
24p.
ISSN2334-8593

2. 2 SYNERGY

3. IMPRESSUM A WORD FROM THE EDITOR
THEME OF THIS EDITION
DIRECTOR
Violeta Jovanović / violeta_jovanovic@naled-serbia.org
EDITOR IN-CHIEF
Milica Stefanović /milica_stefanovic@naled-serbia.org
EXECUTIVE EDITOR
Ivan Radak / ivan_radak@naled-serbia.org
DESIGN AND PRE-PRESS
Zoran Zarković / zoran_zarkovic@naled-serbia.org
CONTRIBUTORS
Jelena Bojović, Milica Mandić, Jovana Ćirić, Aleksandar Nikolić,
Ana Knežević-Bojović, Miša Brkić, Mijat Lakićević
ADVERTISING
Milica Mandić / milica_mandic@naled-serbia.org
PROOFREAD/TRANSLATION
Halifax Translation Services
PRINT
BiroGRAF
PUBLISHER
Expose by NALED
30/VII Makedonska street
11000 Belgrade, Serbia
t: +381 11 33 73 063
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www.naled-serbia.org
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33
SYNERGY : business journal of the
National Alliance for Local Economic
Development / editor in chief Milica
Stefanović. - 2013, no. 1 (june)- . -
Belgrade (30/VII Makedonska street) : Expose,
2013- ([Belgrade] : Birograf). - 27 cm
Tromesečno. - Ima izdanje na drugom jeziku:
Sinergija = ISSN 2334-8402
ISSN 2334-8593 = Synergy (Belgrade)
COBISS.SR-ID 199587084
It’s a complete mystery. All kinds of rumors
about it are circulating around town, from those
claiming it is the land of milk and honey, to more
careful attitudes asking why Iceland withdrew from
negotiations or why Bulgaria has such a low standard
of living. The media regularly publish statements by
European officials, they mention reams of instituti-
ons, foreign names, agreements, conditions, steps,
chapters, making it quite tough for the ordinary man
to understand who is who, have we joined or left and
how long will this be going on. Regardless of how
little they know about it, one thing seems certain –
everyone is supporting it, ever since a few years ago
one of the largest political parties changed its name
and direction, and more than 1.5 million citizens, its
voters, were transformed from euro-sceptics to honest
euro-supporters seemingly overnight, an unprece-
dented result in the recent history of our country. Is
this good for us or not – maybe it’s best to consult the
facts: 75% of foreign direct investments made since
2005 have come from the EU, 63% of our exports
go to the European Union and it is our largest donor
with grants worth more than EUR 2.5 billion. Well,
perhaps it’s time to for us get to know it a little better.
The contents of this publications may be used only when quoting the source of
information “SYNERGY - NALED’s Business Journal”
If you wish to receive the printed edition of SYNERGY, pease subscribe at
www.naled-serbia.org/journal
Serbia’s most important task in the
years ahead is absolute commi-
tment to European integration.
The Government of Serbia should not be
pressured to conduct European integration
as soon as possible. Speed is not of key
importance here, nor is the exact moment
of joining the EU. What is important is
for us to “learn by understanding”, not
by heart nor by copying. The journey is
what is important; not the destination. For
Serbia to benefit from EU integration we
need to understand the very essence of this
integration. So many countries, new EU
members, have tried, and to their and the
EU’s misfortune managed to fulfill only
the form, but not the essence. It is essential
for Serbia to avoid this.
What does NALED’s expect from EU
integration? An open market, competition,
fair treatment, safety, predictability and
security of investments, efficient courts.
We see the EU integration process as a
journey on which Serbia, using knowledge
and practices from the EU, will help itself
in becoming a stronger, more stable and
fairer country. If we succeed in under-
standing and adopting the EU acquis, and
implement and respect it in its essence,
then we will draw from it that which is
best for our country and for all of us. If,
however, all we see is a sack of money and
our goal is to fulfill the form to reach the
sack, EU membership will not bring about
significant change – nor foreign investors,
nor entrepreneurship development, nor
an economy based on knowledge and high
technology. Having sprinted the race and
fulfilled the form, we will realize that the
destination we have reached is not very
different than where we started.
On the European path, NALED intends to
be a reliable and knowledgeable fellow-
traveler with the Government of Serbia,
always dealing with essence and not form,
being both partner and critic, and always
remaining absolutely committed to this
path. NALED is the one holding a mirror
to the Government, as effectively described
by former European Parliament Rappor-
teur for Serbia Jelko Kacin when he met
with a NALED delegation in March, hel-
ping it notice what is wrong – 70% of laws
influencing the business environment are
adopted via emergency procedure, over the
previous 5 years, 30 business-relevant laws
were changed 97 times, by-laws are adop-
ted with an average delay of 800 days… but
it will also help the government to fix these
things, so that the NALED mirror shows
a better image as a reflection of a business
friendly environment.
Ana Brnabić, Vice President of NALED Managing Board and Executive Director of CWS
Milica Stefanović,
Editor in-chief

4. 4 SYNERGY
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our clients with their modern interiors.

5. 5august 2014 |
Contents
10Retrospective
The region
develops its
seal of quality
12VIII annual Assembly
NALED offers all the
help in negotiations with
Brussels
18In Synergy
Everything you do or don’t know about EU
32Jelko Kacin, former European Parliament
Rapporteur for Serbia
A laid-back attitude will not lead
you to the EU
48Duško Lopandić,
Ambassador of Serbia
to the EU
Enterprise of the generation
44Stanka
Pejanović,
Director of
Mercator
Justified fear
of European
competition
94 Partners for success
Belgium – country
of chocolate, lace
and diamonds
80Reportage: Nova Varoš
Epicenter of healthy energy

6. 6 SYNERGY
NEW LAWS
I expect that the first positive effects of the adop-
tion of the Labor law will be visible already next
year, and that citizens will be able to experience
this both in terms of reduced unemployment and a
better regulation of the labor market”
Aleksandar Vulin, Minister of Labor,
Employment, Veteran and Social Issues
Retrospective
APRIL
Proliferating Para-fiscals
The fiscal relief of businesses, which gained
momentum in 2012 with the elimination of
138 para-fiscal charges, has slowed in pace
over the last two years. Not only has the
elimination of unnecessary fees and charges
been discontinued, but some new ones
have even appeared in the meantime. This
motivated NALED and the USAID Business
Enabling Project to analyze this reform and
its effects. A new register of para-fiscal charges shows that businesses pay 384 non-
tax charges (compared to 371 in the previous register) of which 247 are para-fiscal.
This means that businesses pay them but receive nothing, or disproportionately
little from the state in return. Most of these charges, more than 70%, are paid to the
state (277) while the rest is in the jurisdiction of lower levels of government. It was
shown that the previous elimination of para-fiscals had a significant impact on local
government and in the coming period the burden of further elimination of charges
should be taken by the national level of authority. One good measure could be the
Law on Fees for the Use of Public Goods which would include a listing of all fees,
and prescribe that no new fees may be introduced through any regulation. NALED
is a member of the working group in the Ministry of Finance that is drafting this law,
and will provide its suggestions and contribution in developing the best possible
solutions for businesses and municipalities.
From an abandoned
to a valuable location
Military barracks can be transformed into a
modern University campus, abandoned bor-
der posts into tourist facilities, old buildings
into modern business incubators, and a ruined
factory into a film set. All of these are succe-
ssful examples of brownfield revitalization pro-
jects in Serbia and Croatia. Even though the
exact number of available brownfield locations
in our country is unknown, there are certainly
more than 400 military facilities not used by
the Military, whose estimated value amounts
to more than EUR 1 billion. If we add the
facilities of companies in bankruptcy and pri-
vatization, the number of brownfield locations
is much higher. To unlock this development
potential and put it in use for local economic
development, NALED and USAID launched a
two-year project for brownfield revitalization,
presented at an initial conference on 16 April
in Mikser House.
The event involved addresses by Vladan Vasić,
Mayor of Pirot and a member of NALED
Managing Board, Peter Wiebler, Acting
Mission Director of USAID and H.E. Laurent
L. Stokvis, Ambassador of the Netherlands.
There was the announcement of a competition
for the best brownfield revitalization solutions.
All local governments in Serbia were invited to
nominate their project ideas for transformati-
on of abandoned public spaces into inspiratio-
nal places for entrepreneurship. All proposed
solutions will be included in the first online
catalog of brownfield revitalization project
ideas, and the local government that nomi-
nates the best solution will receive support
from NALED and USAID in the process of
brownfield revitalization.

7. 7august 2014 |
748,72030 RSD - the amount of the highest Republic
administrative fee
The state is late with the
adoption of 165 by-laws,
by more than 922 days
on average
BY-LAW
BAROMETER
FACTS AND FIGURES
NALED in Brussels
A NALED delegation, led by Vice President of the Managing Board Ana Brnabić, visited
Brussels in April upon the opening of EU accession negotiations, to present NALED’s
activities and results in encouraging regulatory reform in Serbia and performing in-
dependent monitoring of the Government’s work. NALED presented a report on the
business environment and Serbia’s EU accession progress, alongside recommendations
for the economic agenda published by the European Commission in May, to represen-
tatives of the European Commission and former European Parliament Rapporteur for
Serbia Jelko Kacin. NALED presented the key obstacles to developing a business-frien-
dly environment in Serbia – the unstable and unpredictable regulatory framework, poor
law enforcement, fiscal and para-fiscal burdens on businesses and excessive bureaucracy.
The meeting with the officials of Directorate-General for Enlargement discussed the
necessary economic reforms and pre-accession funding opportunities for projects aimed
at fighting the shadow economy and unfair competition, establishing a market economy,
good governance and commercialization of public enterprises. The representatives of the
European Commission emphasized Serbia’s need to develop an action plan for public
financial management, which is a condition for financial support to the national budget
in the years to come. Next year, Serbia will also have to submit a program for stimulating
competitiveness and economic growth – where NALED will have an important role as
the leading organization in the SEKO (Sector Organization of Civil Society) for compe-
titiveness. The three-day mission ended with participation in the conference “Speak up
Serbia” on freedom of the media and their role in the negotiations. The event was hosted
by Jelko Kacin and the conference speakers were Saša Mirković, Advisor to the Mini-
ster of Culture, Tanja Miščević, Head of Serbia’s Negotiating Team, Ljiljana Smajlović,
President of the Association of Journalists of Serbia (UNS) and Gordana Igrić, Regional
Director of Balkan Investigative Reporting Network (BIRN).
Shadow economy for
the media
Four out of five citizens of Serbia support the
fight against the shadow economy. They are aware
that this negative phenomenon affects their living
standards, harms their rights as workers and their
health and safety as consumers. A large share of the
population however keeps buying smuggled goods
in markets and on the street, via adverts or in un-
registered shops. These are mostly textile, clothes
and shoes, cosmetics and chemical products, food,
craft goods, rolled tobacco and cigarettes.
These are some of the findings of research perfor-
med by Ipsos Strategic Marketing for NALED and
USAID in the two-year Project for Strengthening
Serbia’s Competitiveness, exclusively presented
to journalists from Belgrade and Niš at a media
training session held in April. The media have a
key role in raising public awareness of the problem
of the shadow economy and developing a favorable
environment for conducting the reforms needed
to reduce this destructive practice. This event was
held in Media Center and gathered the represen-
tatives of 15 media: Politika, Večernje novosti,
Danas, Naše novine, Tanjug, Beta, Radio Beograd,
TV Nova, Privredni pregled, eKapija, etc. Thirteen
journalists from Niš newsrooms also followed the
session via video streaming – TV Zona plus, NTV,
Belle Amie, Kopernikus, Narodne novine, Super
radio, Bum radio and others.
key laws for businesses
have been changed
98 times over the
last 5 years

8. 8 SYNERGY
Would you report your employer
for not registering you or your
colleagues in the employment
records?
Ipsos for USAID and NALED
SURVEY
NALED and RTS for an efficient state
For two years, NALED and the Serbian Broadcasting Corpora-
tion RTS have been successfully cooperating on the promotion
of regulatory reform and best practice in the work of the public
administration. In 2012, the anti-bureaucratic campaign “Ask
WHEN” was launched, appealing to citizens and businesses
to report excessive bureaucracy they face, and advocating for
the state to eliminate these practices. The campaign involved
broadcasting of five theme videos on concrete problems in the
work of the state: Pregnant Woman Countering the System,
the Para-fiscal Zone, Reality show: Building a Factory, If I Were
Grey and Work of the Devil. The videos, accompanied with se-
rious analysis, gave a strong boost to reforms by contributing to
cutting paperwork for employed pregnant women, eliminating
the signage fee for entrepreneurs and improving the Labor Law.
Together with RTS, NALED also organized a competi-
tion to select best practice examples in the work of local
government – “Champions of Local Development”. In late
2013, five champions and five vice-champions were selected
in the following categories: investment promotion, admini-
strative reform, public-private partnerships, citizens’ service
and business support. Aiming to strengthen the capacities
of the national broadcasting service for quality reporting on
economic issues, NALED’s IT Council, involving companies
Asseco SEE, Comtrade and SAGA, signed a Memorandum of
Understanding with RTS in June 2014. The Council hereby
made a donation of IT equipment, providing the newsrooms in
Belgrade and Serbia with better conditions for the creation of
high-quality content.
Kula and Odžaci ready for new investors
In May NALED worked on preparing final activities in the EU cross-border
cooperation project, including the visits of Italian and Slovenian inve-
stors to West Bačka District. Over the previous two years, in partnership
with the Croatian municipality Gradište and the Office for International
Cooperation, NALED worked on capacity building of municipalities Kula
and Odžaci for efficient investment promotion. Employees in the local
administrations attended a series of training events for the promotion of in-
vestment potentials, project management, collection and use of investment-
related information, business planning and communication with potential
investors. Two sector analyses were prepared for the food and chemical
industries, identified as the fields with the largest development potential
for West Bačka District. An investment strategy with a three-year action
plan was developed, defining all the concrete steps to be taken by Kula and
Odžaci to attract new investment.
Five investment missions were realized abroad, involving meetings with
international companies interested in some form of business cooperation
with Serbia. This resulted in three return visits by companies from Italy and
Slovenia that are currently considering the opportunities of investing in Ku-
la and Odžaci. The project involved preparation of promotional materials
for these two municipalities, their potentials were promoted in the media
and presented at trade fairs in Berlin, Hannover and Vienna. Finally, Kula
and Odžaci received valuable IT equipment for the needs of their business
zone. A comprehensive database was created containing all relevant infor-
mation for investors planning business operations, which can be found on
the websites of the project and the two municipalities.
MAY JUNE
31%
Yes
PROMISE
The new Law on Planning and
Construction, which should be
adopted in early September, will
enable issuing construction permits
in 28 days”
Zorana Mihajlović, Minister of
Construction, Transport and Urbanism
69%No

9. 9august 2014 |
The greatest
benefit of the
EU accession
negotiations for
businesses will be:
THE CITIZENS ASK WHEN NALED POLL
July 2014
When will the state
stop asking and char-
ging for documents
that are already in
its possession?
Even though negotiations
on amendments to the
Labor Law started with
the idea of removing all
obstacles standing in the
way of reducing unem-
ployment in Serbia, the
discussion between the unions
and employers quickly came down to a confrontation, each protecting their own
interests. There was no-one there to defend the interests of the most vulnerable
category – the unemployed, a group of more than 750,000 people in Serbia. To
draw public attention to this problem, NALED created a short video with the
provocative title “Work of the Devil”, illustrating problematic regulations dis-
couraging employment of experienced people and youths looking for a first job.
The topic and the excellent roles of Dejan Ćirjaković as Angel and Nikola Škorić
as Devil (better known as Boškić and Torbica from the comedy series “Državni
posao” – “Public service job”) quickly stirred up the public. While the unem-
ployed supported the idea, Union representatives went so far as to demand that
the Government prohibit the broadcast! “Work of the Devil” is the fifth in a
series of promotional videos shot within the anti-bureaucratic campaign “Ask
WHEN”, conducted by NALED in partnership with the Serbian Broadcasting
Corporation and U.S. Agency for International Development (USAID). So far,
the video has had more than 44,000 views on NALED’s YouTube channel.
A video for the
rights of the
unemployed
An automotive giant expected
in Vojvodina
“Based on the positioning of automotive component pro­
ducers and investment trends seen so far, we can expect an
investment by an automotive giant in the following couple
of years, in the area between Belgrade, Novi Sad and Šid”,
said Branislav Nedimović, member of NALED’s Executive
Board and Mayor of Sremska Mitrovica, speaking in June
at a round table discussing the potential of the automotive
industry in Vojvodina. Addressing the representatives
of Vojvodina cities and municipalities who took part in
the round table, Nedimović said that the most important
factor for successful investment promotion was not infra-
structure, but good administration.
“In this sense, undergoing the certification program conduc-
ted by NALED can be very helpful for a local government.
So far, 31 local governments have obtained the certificate,
including Sremska Mitrovica which wouldn’t have found its
way to the Financial Times’ list of top investment destinati-
ons if it weren’t for NALED”, said Nedimović.
Provincial Secretary for Inter-regional Cooperation and
Local Government Branislav Bugarski agreed that the key
to success is good administration, together with equipping
of industrial zones and adapting the education system
to investors’ needs. Ivo Somr, Director of the Czech
company Mitas Tires that invested in Ruma, warned that
reducing tax credits and increasing corporate income tax
would negatively impact new investments. Somr said that
Mitas has a problem finding highly skilled workers, adding
that the cost of investment is ranked only fifth on inve-
stors’ priority lists. The event in Pećinci was the first in a
series of round tables to be organized by NALED with the
support of the Provincial Secretariat.
www.naled.rs/askwhen
4.76% Better prevention of monopolies
19.05% Better functioning of courts
23.81% Higher freedom of movement for goods, workers and capital
4.76% Improved public procurement system
47.62% Developed entrepreneurial and industrial policy

10. 10 SYNERGY
NET(WORKING)
JULY
Vulin: NALED members are the best businesses
NALED members are the best part of Serbia’s economy, they regularly pay their obligations
towards the state, they employ more than 100,000 people and their voice needs to be respec-
ted. They have made good suggestions for amendments to the Labor Law of which almost
all were accepted, and they were not opposed to the interests of employees. These were the
words of the Minister of Labor, Employment, Veteran and Social Issues Aleksandar Vulin,
describing NALED’s contribution to improving labor legislation. He was the first minister
of the new government to meet the Alliance members and partners at a working luncheon
organized on 9 July at the Hyatt hotel. The event, which was attended by more than 100 gue-
sts, discussed the government’s future plans, the novelties in the Labor Law, social policy and
how to improve the work of labor inspections. Minister Vulin stressed that the Government
wanted to change all provisions that could improve the business environment, taking into
account the interests of employees. Hosting the event, member of NALED Managing Board
and General Manager of Bambi Miroslav Miletić stressed that the amendments to the Labor
Law would be a significant step forward in improving the business environment, emphasi-
zing the hope that this would help reduce the shadow economy. He informed Minister Vulin
about NALED’s Fair Competition Alliance, gathering businesses regularly settling their
obligations towards the state and their employees, operating legally and making a significant
contribution to the national economy: Coca-Cola, JTI, Philip Morris, Gomex, Bambi, Cen-
tro štampa... Miletić stressed that these companies were ready to assist in further reducing
the shadow economy and presented NALED’s recommendation for the state to compile a
white list of responsible companies.
The region builds
its seal of quality
Croatia, Bosnia and Herzegovina, Serbia and
Macedonia will rapidly stand out on the glo-
bal investment map as a favorable investment
region. An important role in this is played by
the Business Friendly Certification in South
East Europe program (BFC SEE), the first
regional initiative for improving and harmo-
nizing business conditions. It was launched
in 2012 by NALED in cooperation with
institutions from the neighboring countries,
with the support of the German Government
and GIZ.
Interest among local governments has explo-
ded this year – 60 cities and municipalities
from the region have joined the program,
including 11 from Serbia: Novi Sad, Niš, Zre-
njanin, Pančevo, Sombor, Sremska Mitrovica,
Lebane, Bela Palanka, Novi Bečej, Vrnjačka
Banja and Ivanjica. Certification is a process
requiring local governments to run a series
of reforms fulfilling 12 criteria for creating an
efficient administration and favorable

11. 11august 2014 |
Meeting of leaders and partners
The traditional summer meeting of NALED leaders and partners was held in
mid-July in Belgrade, gathering members of the Alliance Managing Board hea-
ded by Vladan Atanasijević, President of the Executive Board Darko Vukobra-
tović, member of the Supervisory Board Vladimir Milovanović, President of the
Ethics Committee David Lythgoe, IMF Director Daeheang Kim, Ambassador of
Switzerland Jean Daniel Ruch, leaders of the Serbian Broadcasting Corporation,
Business Registers Agency, RATEL and representatives of USAID.
A special guest was the Minister of Defense and until recently a member of
NALED Managing Board Bratislav Gašić, who expressed the gratitude of the
Government of Serbia and Prime Minister Vučić for the support provided
by NALED in implementing reforms significant for Serbia’s economic deve-
lopment, and particularly for its contribution to the adoption of the Labor Law.
Vladan Atanasijević briefly commented on the results the Alliance has achieved
so far and its future priorities: “This year, NALED reaches the number of 200
members, its member municipalities covering 70% of Serbia’s territory. This
gives us the strength to persist in our intention to improve the business envi-
ronment, reduce bureaucracy and encourage the government to act responsibly.
We have achieved a lot: our solutions made their way to the Labor Law, we raised
the issue of para-fiscal charges and directly contributed to the elimination of the
signage fee for entrepreneurs, we cut the procedures for pregnancy leave by 2/3,
and the authorities have recently allowed payment of income tax and contri-
butions to a single bank account, which was one of the first recommendations
in our Grey Book. We will continue our work on fighting the shadow economy
in partnership with USAID and member companies, improving the laws that
are critical for businesses and introducing international standards of a business
friendly environment in our cities and municipalities.”
conditions for business development. After Pi-
rot and Ruma, which were the first in Serbia to
obtain the regional business friendly standard,
new regional certificates were presented at a
ceremony held on 4 July at Belgrade City Hall
to Leskovac and Stara Pazova, and national
recognitions to Boljevac, Knjaževac, Negotin
and Trstenik. On this occasion the Minister of
State Administration and Local Government
Kori Udovički stressed that NALED’s certifi-
cation program was a true path for improving
the municipal administration and reaching
concrete achievements at the local level. “It
is a process offering a model of cooperation
between businesses and local governments,
encouraging competitiveness, inter-municipal
and inter-regional cooperation”, said Minister
Udovički.

12. 12 SYNERGY
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Public opinion survey
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hodological approaches: telephone, online, Point-of-Sale surveys, surveys with a recruited target group, traditi-
onal field surveys, Mystery Shopper/Call and qualitative research with focus groups and in-depth interviews.
ProPozitiv, 11/V Makedonska street, Belgrade, +381 60 50 55 116, office@pro-pozitiv.com, www.pro-pozitiv.com
Conferences in the Media Center
Discount: 5% | Super discount for first 5 NALED members: 10% Valid through 30 September 2014.
The Media Center of the Independent Journalists’ Association of Serbia (NUNS), as the only multimedia or-
ganization providing full service in the field of media in the South East Europe region, offers NALED members
and partners a 5% discount for the services of space rental and conference organization. The first five members
are entitled to a special discount of 10%. The basic package includes the rent of conference halls, coffee break and
cocktail area, sound equipment, screen, writing and sending of press releases, video footage of the conference
and its posting on the Media Center website.
Media Center, 3/II Terazije square, Belgrade, +381 11 33 49 541, mladenov@mc.rs, www.mc.rs
Maintenance and security services
Discount: 10% | Super discount for first 5 NALED members: 15% Valid through 31 December 2014.
ISS Interservis, which has been successfully operating in Serbia for a decade, offers NALED members and
partners a 10% discount for dry-cleaning, technical maintenance of equipment and facilities, physical and
technical security. Local governments in NALED membership can obtain a free Study on Current Situation with recommendations for
their more efficient and rational implementation (in accordance with the principles of USAID’s Integrity Plan).
31 Jove Ilića street, Belgrade, +381 11 206 55 33, +381 60 02 06 560, goran@interservis.rs, www.interservis.rs

13. 13august 2014 |
NALED Market, Database of funds, Scholarships info
DATABASE OF FUNDS
Comprehensive information on sources of funding
www.naled-serbia.org/compendium
Royal Norwegian Embassy
The Embassy of Norway allocated EUR 500,000 for projects developed by local
governments and civil society organizations, for remediating the effects of the
floods that hit Serbia in May. Priority will be given to applications covering the
municipalities affected: Čačak, Užice, Požarevac, Loznica, Šabac, Smederevo,
Jagodina, Valjevo, Grocka, Obrenovac, Koceljeva, Krupanj, Lazarevac, Vladimirci,
Smederevska Palanka, Mali Zvornik, Ćuprija, Paraćin, Žagubica, Trstenik, Ub,
Lajkovac, Bogatić, Surčin, Svilajnac, Bor, Mionica, Ljubovija, Sremska Mitrovi-
ca, Kraljevo, Pećinci, Lajkovac, Osečina and Ljig. Priority activities will include
cleaning and disinfection of public areas, assessment of damage and planning of
priority measures, providing social services to vulnerable groups affected by floods, cooperation between NGOs and LGs in re-establishing liveli-
hood structures and income bases for the local population, reconstruction of public infrastructure. Deadline for applications: 31 December 2014.
USAID Serbia
USAID Serbia has announced its annual call for proposals. The funds are up to USD 500,000 per project and are available to civil society or-
ganizations and associations, for initiatives aimed at further progress in EU integration, improving philanthropic activities for support to civil
society, and strengthening capacities, networks and innovation in resolving social issues. Deadline for applications: 3 April 2015.
Journalismfund.eu
The foundation Journalismfund.eu awards funds for cross-border investigative journalism projects in the EU and EFTA countries. The resear-
ch topics must be relevant for a European audience and present new information on the current state of affairs and comparative analysis in at
least two countries. The funds are allocated for the cost of research preparation, including travel expenses, translation, access to databases etc.
Deadline for applications: 15 September 2014.
SCHOLARSHIPS INFO
Professional development in the country and abroad - www.naled-serbia.org/training
Paid professional development in India
The Indian technical and Economic Cooperation Program, with the support of the Ministry of External Affairs of India, offers opportunities for paid
professional development in this country, lasting 2 to 14 weeks for specialized training and up to 2 years for master and post-graduate studies in the
fields such as finance, banking and auditing, ICT, English language, management, rural development and SMEs, journalism, environmental protection
and RES. Interested candidates may apply via the Embassy of India in Belgrade, at least three months before the beginning of the course. The Ministry
of External Affairs of India provides funds for travel, expenses, accommodation and per diem during the training.
Training for public sector representatives in the Hague
MATRA program of the Ministry of Foreign Affairs of the Netherlands, in its program Strengthening Institutional Capacity in the Rule
of Law, organizes three training courses dealing with issues of decentralization, public procurement and the court system. The training is
aimed at raising awareness among decision and policy makers about the legislative framework required to reach efficiency in these fields, EU
lobbying techniques, European regulations, best practices. Each training session will gather around 25 representatives of the national and local
authorities from Albania, Bosnia and Herzegovina, Macedonia, Montenegro, Serbia and Turkey. The training is held from 19 to 29 October in
the Hague, and all expenses are covered by the organizer. Deadline for applications: 24 August 2014.
Training in vegetable production in Israel
This training is intended for representatives of state institutions, research centers, civil society organizations and businesses and is organi-
zed by MASHAV – Israel’s Agency for International Development and the Weitz Center for Development Studies. Participants will have an
opportunity to learn about the techniques and technologies of vegetable production in a protected environment from experts in this field,
during a study visit from 16 November to 10 December 2014. All expenses will be covered by the organizer, except travel costs and airplane
tickets. Deadline for applications: 6 October 2014.

14. 14 SYNERGY
PHOTO NEWS
During the catastrophic floods that hit Serbia in May, NALED’s crisis headquarters collected information on
a daily basis from the field on the type and manner of assistance needed in 45 flooded areas, and published
them via social networks and the website info.poplave.rs. The staff of the NALED Executive Office, members
and friends from home and abroad – everyone was eager to help. And support is still needed.
1003HELPING THE RECOVERY
OF FLOODED CITIES AND
MUNICIPALITIES IN SERBIA
SMS: 1003 // PayPal: floodrelief.gov.rs
Helping the recovery of agriculture
In a very short time, at the initiative of the Food and Agriculture
Organization (FAO), NALED prepared a comprehensive analysis
of urgent agricultural needs in all affected areas, to assist in
collecting support for these municipalities. In late July, the EU
allocated EUR 8 million to FAO for renewing agricultural pro-
duction in the 24 municipalities that suffered the most damage.
Belgrade, Sombor, Bela Palanka, Nova Varoš,
Mokrin-Kikinda, Jagodina, Novi Pazar, Inđija and
many other local governments in Serbia showed
true solidarity with those affected

15. 15august 2014 |
#poplave2014 #pomoć #helpserbia #floods
Energoprojekt – opened the door of its
“Pavillion” for the evacuated citizens
The Youth Office and the Municipality of
Inđija donated clothes, food, water,
hygiene products and baby care
equipment
The crisis headquarters of
Civic Initiatives collected large
amounts of material goods for
families affected by floods, and
is still active
By 1 July, around RSD
3.34 billion (EUR 28.9
million) were paid into
the account of the
Government of Serbia for
support to flooded areas
Smart Kolektiv organized the
collection of humanitarian
aid for the most vulnerable
– more than a ton of food,
clothes and hygiene products
were collected
Coca Cola, Victoria Group, Tigar Tyres, Asseco SEE, Bambi,
CWP are only some of the socially responsible companies
from NALED membership that provided support

16. 16 SYNERGY
The Alliance offers all help
in negotiations with Brussels
IN SYNERGY
Reducing the shadow economy, encou-
raging public private partnerships,
more flexible employment, resolving
brownfield issues and cutting red tape are
NALED’s top priorities for 2014/15 – as
voted by Alliance members at the VIII annual
Assembly on 11 April.
In addition to defining strategic priorities and
a common agenda for improving the business
environment, the annual members’ meeting
was also an opportunity to present NALED’s
key achievements and exchange views on
the Alliance’s role in Serbia’s EU accession
process.
“Our intention is to become part of the
membership negotiations and contribute with
our knowledge, objectivity and commitment
to a faster and more efficient completion of
negotiations for the benefit of both citizens and
businesses. We wish and we are ready to engage
in the work of the institutions that will define
policies and deadlines for implementing EU
standards”, said Vladan Atanasijević, President
of NALED’s Managing Board, as he opened
this year’s Assembly. He emphasized: “We
propose a practice where further adoption of
laws is a common endeavor of private, public
and civil sectors, where the market rules are
clear, where everyone has the same treatment.
We should take simple steps to get out of the
bureaucratic maze and relieve the state of the
obligation to think and decide on everything,
so that the task of creating the future can be left
to local governments and their citizens who
know how to choose what is best for them”.
On behalf of an organization that is willing to
provide concrete solutions and support to the
state and openly inform the public in Serbia
and Brussels on how successfully Serbia is
fulfilling European standards, members were
also addressed by Ana Brnabić, Vice President
of NALED Managing Board. She commen-
ted on the outcome of a discussion held in
Brussels among a NALED delegation, former
European parliament Rapporteur for Serbia
Jelko Kacin, representatives of the General
Directorate for Enlargement and Serbia’s di-
plomatic mission to the EU. “One of the best
definitions of NALED I have heard lately was
given by Jelko Kacin, who said that NALED
is an organization “holding a mirror” for the
NALED is ready to offer its knowledge, objectivity and commitment to
contribute to a faster and more efficient completion of negotiations, and
expresses a willingness to engage in the work of institutions that will define
policies and deadlines for implementing EU standards
NALED “Arrows” awarded
The ceremonial part of the Assembly involved the award of
the NALED “arrow”, representing the symbol of unity and
cooperation among businesses, municipalities and institutions
on creating better living and working conditions in Serbia.
The winners of this year’s recognition were NALED’s esti-
mable partners, USAID – Susan Kutor, Director of Economic
Growth Office in the USAID mission to Serbia and GIZ –
Christophe di Marco, Manager of GIZ Open Regional Fund.

17. 17august 2014 |
Conference report: VIII NALED Assembly
Government of Serbia, helping it see what is
wrong and fix it”.
Brnabić noted that NALED had also pre-
sented Serbia’s EU Progress Report to the
representatives of European institutions,
stressing that the Alliance would assist the
government in achieving the goal of closing
the EU accession negotiations in 4-5 years. In
the meantime NALED will continue to report
on a quarterly basis directly to Brussels and
the EU institutions in Serbia on the progress
our country is making in developing a busi-
ness friendly environment in accordance with
European legislation.
Presenting the key results of 2013, Executive
Director Violeta Jovanović said that with
around 190 members NALED has grown
into the largest public private association
in the country, and the leading authority in
independent monitoring of the government’s
work. She thanked USAID for their trust and
for awarding a direct grant for implemen-
ting a two-year program for revitalization of
brownfield sites and combating the shadow
economy. “In the field of regulatory reform,
we have managed to achieve that 80% of Grey
Book recommendations are included in the
Government’s action plan for improving the
business environment and we have participa-
ted in developing solutions for the key laws
on labor, fees and planning and construction”,
said Jovanović. Speaking about internationali-
zation of activities, she indicated the establish-
ment of the Regional Network of Institutions
– a platform for conducting cross-border and
international projects for evaluation, improve-
ment and harmonization of business envi-
ronment quality in South East Europe.
Following up on the presentation of re-
sults, Bratislav Gašić, former Vice President
of NALED MB and current Minister of
Defense, emphasized the Business Friendly
Certification program (BFC) as one of the
most significant projects for encouraging the
development of local economies. The annual
Assembly also discussed the significance of
establishing NALED’s Ethics Committee
which should ensure the accession of new
NALED members in accordance with the
values, ethical business principles and the
Alliance’s Code of Ethics. David
Lythgoe, the first President of the
Committee, stressed that by intro-
ducing this practice NALED set
the importance of ethical behavior
high on the ladder of a favorable
business environment.
For the ceremonial part of the
Assembly, members were joined
by partners from the government,
international organizations and the diploma-
tic corps. “NALED is an indispensable orga-
nization in Serbia for all reform processes, as
it gathers around various sectors and broad
interests. I suggest that the new government
should use NALED’s expertise in the EU ne-
gotiations and for the design and implementa-
tion of economic reforms. On the other hand,
NALED should maintain its active approach
in organizing this kind of event and providing
recommendations to the Government in the
field of policy reform. I am convinced that
NALED is an important and influential factor
in facilitating Serbia’s EU accession process.”,
said EU Head of Delegation to Serbia Michael
Davenport.
“The new government intends to improve the
business environment in the most efficient
manner possible, not only in large centers but
all local governments, particularly the least
developed areas. Another major issue is the
battle for new investment, jobs and increased
GDP and we therefore need clear and tran-
sparent actions of all state bodies, institutions,
companies and associations. In this endeavor
we need NALED’s support”, Minister Igor
Mirović concluded.
Serbia’s EU Accession Progress Report prepared by NALED
In the report presented to the representatives of European institutions in Brussels and the
European Parliament’s Rapporteur for Serbia, NALED indicated the key obstacles to esta-
blishing a favorable business environment, such as:
• frequent use of emergency procedures in the adoption of laws – according to the Regula-
tory Index of Serbia, 70% of laws important for businesses were adopted via emergency
procedure
• the problem of law implementation due to delays in the adoption of by-laws – according to
NALED’s By-Law Barometer, the institutions are on average 800 days late
• unpredictable business environment – over the previous 5 years, 30 relevant laws were
changed 97 times
• fiscal burden to businesses – businesses pay 247 para-fiscal charges, 72% of which are
charged by the Republic, and receive nothing or disproportionately little in return,
• complicated construction permitting procedure which takes 269 days in Serbia.
The report commended the progress made with unified payment of taxes and contributions
to a single account, improved consistency of Tax Administration practice with the introduc-
tion of a binding opinion of the Ministry of Finance and the announced adoption of a new
Labor Law. On this occasion, NALED also presented recommendations for the development
of the economic agenda published by the European Commission for Serbia in May this year.

18. 18 SYNERGY
IN SYNERGY
How it all started
When in 1946 Winston Churchill held his
famous speech at the University of Zurich,
stressing the need to found the United States
of Europe, few believed that half a century later
in 1993 this idea would become reality. Just
20 years later this state union, still described
by lawyers as a sui generis organization (one
of a kind, like no other) would include most
European countries, 28 in all of which 18 share
the same currency.
It all began with the adoption of the Founding
treaties that formed the European Communiti-
es: first the European Coal and Steel Commu-
nity in 1951, then the European Economic
Community (EEC) and the European Atomic
Energy Community (Euratom) in 1957. The
scope and activities of these three Commu-
nities, particularly the EEC, focused on the
economic integration of the six founding states
– Belgium, the Netherlands, Luxembourg,
Italy, Germany and France.
The scope of the European Economic Commu-
nity grew over time, and other countries joined.
A major breakthrough was made on 1 Novem-
ber 1993, when the Maastricht agreement ente-
red into force, establishing the European Union
of 12 member states. In addition to the three
Communities, this also encompassed the field
of foreign and security policy, and cooperation
among the police and justice systems. The final
decade of the 20th and the beginning of the
21st century were marked by rapid progress,
both in an increased number of members, and
the expansion of the EU’s jurisdiction with
strengthened integration.
The most important step forward in this
direction was supposed to be the adoption of
a European Constitution, which defined the
positions of the Chairman of the European
Council and an EU Minister of Foreign Affairs,
as a response to Kissinger’s famous question
“Whom should I call when I want to talk to
Europe?” However, due to its rejection at
referendums in France and the Netherlands,
European Union
for beginnersU.S. Secretary of State
Henry Kissinger once asked
the question: whom
should I call when I
want to talk to Europe?
If you think the
answer today is Angela
Merkel – you are wrong.
Or maybe you aren’t?

19. 19august 2014 |
European Union
this legal document was not adopted and the
founding treaties were once again amended.
While this did not bring any significant change
in the Union’s legal order, nor a formal step
from the sui generis organization towards
some form of confederation or federation, it
still represented a major step in the process of
further economic, legal and political integrati-
on of EU member states.
With the Lisbon Treaty (a new EU reform
treaty that came into force on 1 December
2009), the European Community, as the
legal successor to the European Economic
Community, ceased to exist and was replaced
by the European Union. The EU’s jurisdiction
in the fields of police and judicial cooperation
moved from a relatively
loose regime to one in which
the Union has a divided
jurisdiction with member
states. Only cooperation in
the field of foreign policy
and security remained in
more of an international
than supranational domain.
The European Union has in-
stitutions partially compara-
ble to the countries’ national
authorities, and partially to the institutions
seen in traditional international communities.
The Treaty on the European Union defines the
EU authorities as follows: the European Par-
liament, the European Council, the Council
of Ministers (or the Council of the European
Union), the European Commission, the Court
of Justice of the EU, the
European Central Bank and
the Court of Auditors.
European Commissi-
on
For countries like Serbia
that are undergoing EU
accession, by far the most
visible EU authority is the
European Commission. The
Commission is the Union’s executive authority,
its Administration. As in each state, the Com-
mission is the main proponent of European
Union laws, while the Parliament is responsi-
ble for their adoption – not independently but
together with the Council of Ministers. The
European Commission involves a huge admi-
nistrative apparatus: 23,000 officials working
in 33 general directorates and 11 departments.
The most important division for Serbia at this
stage is the General Directorate for Enlarge-
ment. Unit C.2 of this Directorate is responsi-
ble for Serbia and is led by Myriam Ferran.
The Commission consists of 28 Commissioners
(one from each EU member state), including
the Commission President and Vice Presidents.
The commissioners have various responsibi-
lities and fields of work (rather like ministers)
assigned to them by the Commission President.
In the previous Commission period, the most
important figures for Serbia were the then Pre-
sident of the Commission Jose Manuel Barroso,
How to define the EU
The European Union (EU) is intergo-
vernmental and supranational union of
28 European countries. It is a specific
organization without precedent in history,
and can be defined as: a federation in
monetary relations, agriculture, trade and
environmental protection; a confederation
in social and economic policy, consumer
protection, internal policy; an internatio-
nal organization in terms of foreign policy.
The main foundation of the European
Union is the single market, based on a
customs union, a single currency (adopted
by 18 members), a common agricultural
policy and common fisheries policy.
New team in the
European Commission
Jean-Claude Juncker, until recently the
Prime Minister of Luxembourg, won the
support of 422 out of 729 MPs in the
European Parliament and was elected Pre-
sident of the Commission, replacing the
Portuguese politician Jose Manuel Barro-
so. Many member states nominated their
candidates for the Commissioners by the
end of July. The most attractive positions
are those in the fields of economy, trade,
energy, the internal market and competiti-
on. European leaders will reach a decision
on future Commissioners at a Summit to
be held on 30 August. The new Commissi-
on will take office on 1 November 2014.
In addition to the Commission President,
a special procedure is conducted in the
appointment of the Union’s High Repre-
sentative for Foreign Policy and Security.
As this is a mild version of a Minister of
Foreign Affairs, it is a very important poli-
tical function. This is particularly reflected
in the fact that the holder of this position
automatically becomes the Commission
Vice President, and takes part in the work
of the European Council, the highest poli-
tical body of the Union.
It all began with
the adoption of the
Founding treaties that
formed the European
Communities: first
the European Coal
and Steel Community
in 1951
Jean Claud Juncker,
new President of
the European
Commission
Vice President and High Representative for
Foreign policy and Security Catherine Ashton,
and the Commissioner for Enlargement and
Neighborhood Policy Štefan Füle.
Since the adoption of the Lisbon Treaty,
special attention is paid to ensuring that the
structure of the Commission, and particu-
larly the appointment of its President, is
in line with the structure of the European

20. 20 SYNERGY
Parliament. In particular, the candidate for
the President of the Commission is nomi-
nated by the European Council, and the
nominee must be voted for by a majority in
the European Parliament.
The role of the European Commission is to
represent the Union’s interests. One of the
most important criteria for the appointment
of European Commissioners is therefore
their commitment to European values. Can-
didates for Commissioners are nominated
by member states and must therefore have
suitable expertise and political reputation.
Commissioners are however expected to
be neutral during their term, not advoca-
ting the interests of their country and the
Government that nominated them, but the
overall interests of the Union.
Other institutions of the EU
The European Council meets twice a year
and consists of heads of state and government
leaders of member states. It was formed with
the intention of raising important decision-ma-
king on the future of the Union to the highest
political level. The current President of the
European Council is Herman Van Rompuy, a
former Prime Minister of Belgium.
The Council of the European Union or the
Council of Ministers is probably the insti-
tution that differs most from the traditional
organization and division of authority in
individual states. It is a body consisting of
ministers of the member countries, repre-
sentatives not only of the state, but also of
the current Government in these countries.
This institution represents the interests of
the member states. An interesting fact is that
throughout the history of European integra-
tion it has also been the main legislative body
of the European Union. Even after the adop-
tion of the Lisbon Treaty, popularly called
the “treaty of Parliaments”, the European
Parliament has not been mandated to adopt
EU regulations independently, but must do
this in cooperation with the Council.
The Council has 10 different compositions,
depending on the issues to be considered,
and several different compositions can hold
sessions at the same time. Decisions in most
fields are adopted by a qualified majority,
each country having a certain number of
votes in the Council. The
system of qualified majority
was set up to ensure that
decisions on the adoption
of legislation are supported
by a majority of votes and
at least 15 member states.
In practice, the system of
qualified majority can also
mean that a minister who
has not voted for the adop-
tion of a EU regulation can
be in a position of having to
argue for the same regulati-
on back home.
The European Parliament
is an EU institution that represents all of
its citizens. It is not the only legislative
body of the Union, as it shares this role
with the Council of Ministers. Members of
the European Parliament or MEPs (751 of
them) are elected every five years in direct
elections organized in member states. The
number of MEPs assigned by each country
depends on its population, economic and
political strength. Since MEPs should not
represent the interests of their countries but
the citizens who elected them, they are not
grouped by country but by political affilia-
tion (each party grouping
has representatives from
different countries). There
are seven parliamentary
groups and 32 independent
MEPs (Non-Inscrits). The
two largest groups are the
European People’s Party or
European Democrats, and
the Party of European Soci-
alists, which have together
always held between 50%
and 70% of the seats in the
Parliament.
Since the role of the
European Parliament in
The final decade of
the 20th and the
beginning of the 21st
century were marked
by rapid progress,
both in an increased
number of members,
and the expansion of
the EU’s jurisdiction
with strengthened
integration
EU economy in brief
With a population of more than 500 million and a gross do-
mestic product exceeding EUR 13 trillion (EUR 25,700 per
capita), the EU’s economy is the largest in the world. There
are significant differences in standard among member states,
from Luxembourg with a GDP per capita of EUR 83,400,
which is 15 times greater than the bottom-ranked Bulgaria
(EUR 5,500). The unemployment rate is currently stable
at 10,9%. The lowest unemployment rate is seen in Austria
(4.8%), Germany (5.2%) and Luxembourg (6.1%), and the
highest in Greece (27.4%) and Spain (26.7%).
IN SYNERGY

21. 21august 2014 |
How Schengen became famous
The Schengen Agreement is the agreement on free movement among the signatories, joint
immigration policy and centralized control of external borders, which now includes most
European countries, even Switzerland which is not and does not wish to be a member of the
EU. It began in 1985 in the small town of Schengen in Luxembourg, when Belgium, France,
Germany, Luxembourg and the Netherlands signed an agreement. The agreement came into
force ten years later. Serbia is not part of the Schengen Agreement, but in late 2009 it was
included in the White Schengen list of countries whose citizens can travel in the Schengen
zone without a visa. Even though it was initially criticized by many, almost all citizens of the
European Union are now supporters of the travel “without borders”.
drafting EU legislation was for a long time
a secondary one, elections for the Europe-
an Parliament used to have little political
significance. However, as
it has gained ever greater
authority and influence on
the development of Euro-
pean policies and the appo-
intment of the Commission
President, the importance
of elections to the European
Parliament has increased.
Martin Schulz was once
again elected President of
the European Parliament.
The Court of Justice of the
European Union is a body
that somehow slips under the radar in discu-
ssions on European integration. This is in fact
a body with an extremely important role, not
only in interpreting but also in developing the
European justice system. Proceedings before
this court do not require, as in the case of the
European Court of Human
Rights, previous exhaustion
of legal remedies at the nati-
onal level. There are several
types of proceeding (for
annulment, for omissions,
for compensation for dama-
ge, for obtaining previous
decisions....) and the parties
in proceedings before this
Court can be EU member
states, other EU institutions
and companies. Throughout
the history of the European
Union, when there was no political will in
the Council of Ministers, the Court enabled
further and faster integration by providing its
EU institutions are the
following: European
Parliament, European
Council, Council of
Ministers, European
Commission, Court
of Justice of the EU,
European Central Bank
and Court of Auditors
interpretations and decisions. Of particular
importance is its new role in interpreting the
European Convention on Human Rights
and further development of the relationship
with the European Court of Human Rights
(monitoring the application of the European
Convention on Human Rights and Fundamen-
tal Freedoms, adopted within the Council of
Europe).
Instead of a conclusion
As you can see, there is still only a partial
answer to Kissinger’s question, through
the institutions of President of the Euro-
pean Council and High Representative for
Foreign Policy and Security. However, the
appointment of people with little political in-
fluence to these positions, combined with the
growing political influence of economically
strong countries, especially Germany after the
global economic crisis, leads cynics to provide
a simple answer: “Call Angela Merkel”. Even
though it is true that the influence of strong
economies on the highest political decisions
is very high, the complexity of the system of
EU bodies and their jurisdictions means that
one cannot say that EU regulations are adop-
ted under anyone’s dictate. EU legislation
remains the result of a careful and reasonable
compromise.
The European Parliament has two seats
– in Brussels and Strasbourg (pictured),
so all MPs and documents move from
Belgium to France once a month, which
is highly inefficient but there is no politi-
cal will to change it
Members of
Parliament
responsible
for Serbia
All EU member states held electi-
ons for the European Parliament
from 22 to 25 May this year. The
list and contacts of MEPs who
are members of the Delegation
for Relations with Serbia can be
downloaded from the Parliament
website at the link http://www.
europarl.europa.eu/delegati-
ons/en/d-rs/home.html. In the
forthcoming period, these MPs
will have the greatest influence on
Serbia’s EU integration process.
The new European Parliament
rapporteur for Serbia (the posi-
tion until recently held by Jelko
Kacin) will be appointed on 1
November 2014.
European Union

22. 22 SYNERGY
IN SYNERGY
Better understanding,
less frustration
PhD Ana Knežević-Bojović,
NALED Policy Coordinator
A better understanding of the division of legislative responsibilities
between the EU and member states helps citizens not to see
European regulations as something imposed by Brussels
Since March 2012, Serbia has been an
official candidate for EU accession. Our
country is currently undergoing scree-
ning: an analytical review of how well Serbian
legislation complies with the EU acquis. This
harmonization, however, is not an easy task,
since the EU regulatory system includes
around 37,000 legal documents, 13,000 court
rulings and 52,000 standards. Moreover, this
number is constantly increasing, as legislative
and court activity in the EU are intense.
For citizens and businesses, even those who
live and work in member states, a full un-
derstanding of this corpus of laws and the divi-
sion of responsibilities between the EU and
member states is quite a challenge. Even EU
lawmakers were aware of this problem, which
is why the Lisbon Treaty attempted to define
the Union’s responsibilities more clearly, in the
following manner:
1. Exclusive competence of the EU – In this
field, the EU is the only one entitled to adopt
legally binding laws. EU exclusive competence
includes: the customs union; competition ru-
les; monetary policy for euro zone members;
common trade policy; conservation of marine
biology resources within the common fishe-
ries policy; concluding international treaties
(under certain conditions).
2. Divided competence – when legislative
activity may also be performed by member
states, provided that the EU has not already
undertaken these responsibilities or when
it ceases to perform them. This includes:
the internal market; certain aspects of social
policy; economic, social and territorial cohe-
sion; agriculture and fisheries; environmental
protection; consumer protection; transport;
trans-European networks; energy; freedom,
security and justice; research; technological
development and space; development coope-
ration; humanitarian aid.
Signing of the
Lisbon Treaty
3. The EU can also support, coordinate
or supplement the activities of member
states in the following areas: protection
and improvement of human health; industry;
culture; tourism; education; youth, sports and
professional development; civil protection.
This jurisdiction means that the Union may
adopt incentives or recommendations, but
its documents cannot replace the ones in the
national jurisdiction. At the same time, the

23. 23august 2014 |
Jurisdictions of the European Union
documents adopted by the EU in these fields
do not imply harmonization with the member
states’ legislation.
4. Measures that serve as a reference for the
member states to harmonize their policies in
the field of economy, employment and social
policy. In practice, this means that the Union
adopts guidelines and incentives serving as a
basis for member countries to accommodate
their policies in the given fields.
The European Union has the competence to
define and implement common foreign and
security policy, including the progressive
formulation of a common defense policy.
However, the EU does not adopt regulations
in this area, but only defines the general direc-
tions of activity. It adopts decisions governing
actions led by the EU, the EU’s positions and
the manners of implementing these actions
and positions.
The European Union decides whether to take
responsibility for activities in fields where
it does not have exclusive competence by
applying the subsidiarity principle. In simple
words, this is an assessment of whether the
activities are better performed by the Union or
the member states. Even though subsidiarity is
a legal concept, it is really a political decision
par excellence.
Throughout the Union’s development,
member states and particularly their national
parliaments have often criticized the appli-
cation of this principle. The Treaty of Lisbon
therefore provided them with an opportunity
to give their formal opinion on whether a
specific legislative activity of the Union is
in accordance with this principle or not. If a
sufficient number of national parliaments find
that compliance is not present, i.e. if 19 votes
support this position (each member is entitled
to two votes) the Commission shall review or
withdraw a draft document. If the Commissi-
on fails to do so, the national parliaments may
block the adoption of such an act, though this
action would require 29 votes.
In this way, the Treaty of Lisbon together with
some other changes in the legislative procedure
(making the European Parliament an equal
legislative authority to the Council of Mini-
sters) has, at least nominally, alleviated the
problem of the so-called democratic deficit of
the European Union and enhanced the role
of national legislative bodies in the EU’s legal
system. So far, however, they have barely used
this opportunity. This supports the claim that
EU legislative activity is not merely a legal issue
and that it largely depends on the policies of
certain members. More cynical professors of
EU Law stress that, given that what is prescri-
bed by the EU is later funded by the EU, the
key factor to such practice is pure economic
pragmatism. However, it is believed that more
serious interventions of National Parliaments in
formulating EU legislation are to be expected.
What is the significance of this division of
responsibility for Serbia?
Above all it is important for citizens and
companies to know which areas of legislation
can be influenced at all. Moreover, we should
understand the complex process of developing
European policies and legislation in good
time, and watch the space where national legi-
slation can intervene. There is a common per-
ception, equally shared by citizens and compa-
nies in member states and candidate countries,
that European regulations are “imposed by
Brussels” and that the content of these regula-
tions does not favor them. The truth, however,
is a bit different. European legislation is the
result of thorough consideration, preparation
and compromise that is essential to ensure
that the same regulations or standards can be
applied in countries with different legal, eco-
nomic and cultural backgrounds. The process
of harmonizing national legislation with that
of the EU should therefore also be perceived
as an opportunity to improve the national
legal system and adapt it to accommodate the
challenges of modern business on healthy and
reasonable foundations.
The process of harmonizing
national legislation with that of the
EU should also be perceived as an
opportunity to improve the national
legal system, so as to accommodate
the challenges of modern business
European Court of Justice
in Luxembourg

24. IN SYNERGY
Serbia has an excellent opportunity to use
the EU accession process as a mechani-
sm to attract investments and develop
stable and predictable rules for all investors, says
Michael Davenport, Head of EU Delegation to
Serbia in an interview for Serbia. “I welcome
the progress regarding the key reforms. The
adoption of Labor Law is a serious step forward
in improving the business environment, as well
as the progress with restructuring and privati-
zation issues. We are witnessing the reform of
Tax Administration and its procedures, which
has been recently initiated to systematically
counter the enormous shadow economy. Even
though we have seen positive steps forward in
many areas, Serbia needs to continue its efforts
in developing a more stable, predictable and
arranged business environment”
What does EU expect of the negotiations
with Serbia?
Above all the European Union expects that
Serbia, like any other candidate country,
should adopt legislation which complies
with the body of EU law known as the acquis
communautaire. It is also expected that Serbia
will implement all EU-compliant laws, policies
and standards. The Union also expects Serbia
to continue its efforts to enhance regional co-
operation in line with the Copenhagen criteria
on membership. The European Council has
made clear that it expects the continuation
of efforts to normalize relations with Pristina
EU integrations are improving the
BUSINESS ENVIRONMENT
through the EU-facilitated Dialogue. Serbia
is participating actively in the process of
screening legislation across the 35 chapters of
the negotiations, demonstrating commitment
to the EU integration process. I have no doubt
that Serbia has the necessary capacity to ensure
successful completion of negotiations.
According to NALED’s analysis, two thirds
of laws related to the economy are adop-
ted by emergency procedure. Has the EU
warned the Serbian authorities about this
problem?
The EU attaches importance to the tran-
sparency of the legislative process. This has
improved over the years in Serbia. We have
nevertheless expressed concerns – notably in
the 2013 Progress Report on Serbia - about the
We very much appreciate concrete
recommendations followed through
NALED’s regular publications and
different rankings, as an excellent
monitoring tool for tracking the
changes in the quality of business
environment in Serbia over years
FOTO:FoNet
24 SYNERGY

25. Interview: Michael Davenport, Head of EU Delegation to Serbia
frequent use of urgent legislative procedures,
which can have the effect of limiting opportu-
nities for debate on draft laws. The example of
such practice is the recent adoption of Labor
Law, but also the laws on privatization, insol-
vency and the new media laws. Our position
in that respect remains unchanged. We hope
to see a constructive debate and stakeholder
consultations in the context of the upcoming
adoption of the remaining economic reform
laws. Sufficient time also needs to be reserved
for parliamentary scrutiny of draft legislation.
Furthermore, an inclusive legislative process
should be followed by consistent implementati-
on of adopted legislation, including timely adop-
tion and application of implementing by-laws.
Law enforcement has to go hand in hand with a
structured regulatory impact assessment process
and regular monitoring of enacted legislation.
Is the screening for Chapter
32, especially the part rela-
ted to the Serbian State Au-
dit Institution, an example
of relations with institutions
that are supposed to ensure
the responsible behavior of
the government and compli-
ance with regulations?
The Serbian State Audit Institution has gra-
dually strengthened its capacities over the last
few years and it has demonstrated a substantial
degree of independence. It nevertheless rema-
ins under-resourced for full audit coverage and
we hope to see further capacity building of this
important institution in the coming years.
Independent and/or regulatory bodies should
continue to be supported by all branches of
government and Parliament and their opinions
and recommendations should of course not only
be taken into account, but also implemented.
Where do you expect the longest harmo-
nization process, and where could the
negotiations be closed quickly?
All 35 chapters of the European legislation
are important for ensuring progress during
negotiations in the adoption of EU-compliant
legislation and establishment of a credible track
record in its implementation. The experience
with previous and ongoing enlargements has
nevertheless shown that certain chapters are
particularly difficult for candidate countries,
notably chapters 23 and 24 on judiciary and
fundamental rights, justice, freedom and
security. Given the challenges ahead as well as
the long-term nature of reforms necessary in
these two chapters, they will be tackled early in
the negotiations to allow the necessary time to
adopt the legislation and establish institutions
and a solid track record of implementation
before the negotiations are closed. Another
chapter that has proven to be difficult is envi-
ronment due to the time and resources needed
for achieving EU environmental standards.
If we just look at the improvement of the
business environment in Serbia, which
chapter would be the most difficult one for
our country in the negotiations?
Serbia has a tremendous
opportunity to use the EU
accession process as a vehicle
for attracting investments
and building stable and
predictable rules for all in-
vestors. There are numerous
chapters with a significant
impact on the business
environment. I will name only a few of them
that could prove to be the most demanding:
free movement of goods and workers, the com-
petition chapter that is to ensure a level playing
field both in terms of anti-trust and state aid
policies, chapters 23 and 24, but also chapter
32 on financial control that should provide en-
forcement of the rule of law which significantly
diminishes investment risks.
The amendments to the Law on Privatization
postponed the solving of the reconstruction
and privatization problem for at least five
more months for more than 150 companies.
What impression did this leave on you?
I am encouraged by the fact that discussion
concerning restructuring and privatization is
back on track with a public debate on draft Law
on Privatization and Bankruptcy under way. It is
important that the Government strikes the right
balance in these laws, between the quality of le-
gislation on one hand and speed of its adoption
on the other as any further delays in the process
would incur significant costs for the state bud-
get. The Government also needs as a priority
to review the efficiency of all forms of state aid
and take steps to reduce subsidies and state gu-
arantees. In addition, corporate governance at
large loss-making state-owned enterprises needs
to be improved. These laws, parallel with new la-
bor and construction permitting legislation will
certainly do much to improve the environment
for doing business in Serbia.
In spite of many weaknesses, in the eyes of
European investors are we a country with
a stable and foreseeable business envi-
ronment worth investing in?
While we have seen positive developments in a
number of areas, Serbia still needs to continue
efforts in making its business environment mo-
re stable, predictable and rules-based. Unfortu-
nately, Serbia ranks quite badly when it comes
to competitiveness and business environment
indicators of the World Bank’s Doing Business
Report and the Global Competitiveness Index
of the World Economic Forum. The Go-
vernment should therefore focus on rectifying
horizontal regulatory issues that apply to all
companies equally, while at the same time limi-
ting spending on company-specific subsidies
and guarantees.
In this sense, the European integration process
is of great benefit in this regard as it is expected
to improve the business environment, notably
through the implementation of the Stabilizati-
on and Association Agreement that started on
September 1, 2013. This agreement foresees
gradual approximation with EU practice in
The EU supports
reforms in Serbia
through financial aid
programs, with annual
grant funds of ca.
EUR 200 million
25august 2014 |

26. Interview: Michael Davenport, Head of EU Delegation to SerbiaIN SYNERGY
areas such as free movement of capital, public
procurement, standardization of products,
right of establishment of firms and supply of
services. These policy changes will provide
a safer and more predictable framework for
businesses, thus creating a new stimulus for the
Serbian economy in attracting investments.
EU investors account for the majority of all fo-
reign direct investment coming to Serbia, as has
been the case with other accession countries.
We may expect that Serbia’s economic integra-
tion with the EU will intensify still further in
the years to come. Foreign direct investments
coming from the EU already accounted for over
75% of total FDI coming to Serbia from 2005 to
2013. In addition, the EU is Serbia’s key trading
partner, accounting for around 63% of total
Serbian exports and just below 62% of total
Serbian imports in 2013. The volume of trade in
both directions is on the rise.
Which of the more recent business envi-
ronment reforms would you applaud, and
which ones have still not progressed?
I welcome the progress regarding the key
reforms. The adoption of Labor Law is a
serious step forward in improving the business
environment, as well as the progress with
restructuring and privatization issues. Now
we expect the passing of the law on
Planning and Construction, to ma-
ke the business environment more
predictable. We have seen positive
developments in other areas as well,
for instance the reform of the Tax
Administration and its procedures
that has been initiated recently with
the aim to systematically curb the
The beginning of the
European Union flood
relief program worth
EUR 30 million was
marked on Friday, 25th
July in Obrenovac
large grey economy. Another positive example
is reform of the public procurement system
following the adoption of the new law that has
significantly increased transparency of public
tendering procedures, at the same time facili-
tating easier access to tenders for all interested
bidders.
On the other hand, we have yet to see progress
when it comes to cumbersome construction
permitting procedures, which is why the EU
strongly supports current efforts to adopt the
new law in this area. There was limited progress
in reforming para fiscal charges in 2012, when
138 charges were supposed to be abolished,
where NALED made a significant contribution.
Since then however this process seems to have
come to a halt. In some areas, new charges were
introduced or old charges were increased.
How much do the Serbian authorities rely
on the opinions of business associations
such as NALED and how much do you think
they should?
Our overall impression is that the Go-
vernment is increasingly relying on the
findings and recommendations of business
associations in Serbia, such as NALED or
FIC, that are often invited to participate in
the drafting of new legislation. It is of course
important that the Government
take these recommendations on
board. We very much apprecia-
te concrete recommendations
followed through NALED’s regular
publications and different rankings,
such as Regulatory Index of Serbia,
as an excellent monitoring tool for
tracking the changes in the quality
of business environment in Serbia over years.
The EU has been the largest donor to Serbia
through numerous programs. What shape
will this assistance take in the period to come?
Yes, the EU is the largest donor in Serbia.
Grant funding to date totals well over Euros
2.5 billion. In line with the EU’s multiannual
financial framework 2014-2020, Serbia will
continue to benefit from the pre-accession IPA
funds that will be modified in comparison to
the previous financial cycle to accommodate
the new reform requirements. The average
annual IPA envelope will remain at the level of
around EUR 200 million for Serbia while part
of this assistance could be directed as budget
support if Serbia meets conditions concer-
ning proper public finance management. IPA
support will be instrumental in supporting
reforms towards long-term economic growth
and competitiveness in Serbia in line with the
European Commission’s new approach and
increased policy guidance on economic gover-
nance in all enlargement countries.
The European Union is also the largest donor
to Serbia in supporting the recovery and
reconstruction effort after the recent cata-
strophic floods. The EU has made available
Euros 30 million from IPA funds for urgent
projects over the rest of the summer, suppor-
ting the reconstruction of infrastructure and
housing as well as providing support to Serbi-
an agriculture. The EU is hosting an internati-
onal conference in Brussels on 16 July, where
additional grants were ensured from IPA funds
and EU Solidarity Fund, to which Serbia – as a
candidate country – has the same access as an
existing Member State.
EU is the single
largest donor
in Serbia, so
far investing
more than
EUR 2.5 billion
26 SYNERGY

27. 27august 2014 |
How much do you know about the EU?
1. What is the European Union?
a) A federation of European countries, just like the USA
b) An inter-governmental and supranational union of
28 European countries, never before seen in history
c) An international organization
2. Which countries founded the European Economic
Community in 1957, predecessor of the EU?
a) Belgium, the Netherlands, Luxembourg, Italy, Ger-
many and France
b) Great Britain, Italy, Germany and France
c) Great Britain, Switzerland, Italy, Germany and
France
3. Which Treaty established the European Union as
a union of 12 countries in 1993?
a) Rome
b) Schengen
c) Maastricht
4. Indicate one or more countries that are not EU
members
a) Finland
b) Norway
c) Switzerland
5. Which year did the euro enter circulation as the
common currency of the Eurozone?
a) 2000
b) 2002
c) 1999
TEST
For test solutions, see page 105
6. Which of the following organizations is not an EU
institution?
a) The Council of Europe
b) The European Council
c) The European Commission
7. Who is the newly-appointed President of the
European Commission as the executive
power in the EU?
a) Jose Manuel Barroso
b) Catherine Ashton
c) Jean-Claude Juncker
8. Which party won the most votes at the European
Parliamentary elections held in May this year?
a) The European People’s Party – European Democrats
b) The Party of European Socialists
c) The Alliance of Liberals and Democrats for Europe
9. Which countries are EU candidates?
a) Croatia, Serbia, BIH, Turkey and Moldova
b) Macedonia, BIH, Iceland, Montenegro
c) Albania, Montenegro, Iceland, Macedonia, Serbia,
Turkey
10. What is the acquis communautaire?
a) The Latin phrase “Experience teaches us”
b) The EU legislation grouped into 35 chapters that
must be adopted by a candidate country
c) Water utility services

28. 28 SYNERGY
IN SYNERGY
What are the accession
negotiations about?
The negotiations examine the conditions for
a candidate country’s accession to the EU,
which are basically about the harmonization
of domestic legislation with the EU acquis.
The result of the negotiations will be the
Agreement on Serbia’s accession to the EU.
A condition for joining the EU is to accept
all the rights and obligations that form the
basis of the EU, including its institutional
framework. The EU acquis and other legal
sources are divided into 35 negotiating
chapters, each one being negotiated separa-
tely. Since the negotiations do not discuss the
essence of the EU acquis, the candidate coun-
try accepts the EU acquis in the form that is
valid for all EU member states at the moment
of its accession, and it adapts to the legal,
economic and social systems of the EU. The
topics negotiated include the conditions and
modalities of a candidate country’s accession
to the system.
Who negotiates?
The participants in accession negotiations
are the European Union member states and
Serbia. The negotiations are held in the form
of bilateral inter-governmental conferences,
involving representatives of EU member
states and a representative of the European
Commission on the one side, and Serbian
representatives on the other. The negotiating
positions of the EU are presented by the Pre-
sident of the European Council, who acts on
behalf of member states. The Serbian positi-
ons are presented by a special state negotia-
ting delegation, led by a head of delegation at
the highest political level, including the Head
of the Negotiating Team and the Negotiating
Team. Inter-governmental conferences are
generally held twice during the presidency
of each EU country, that is four times a year
(twice with heads of delegation and twice
with deputy heads of delegation).
Who is negotiating on
behalf of Serbia?
A high level of coordination between all state
institutions is required to ensure success at the
negotiations. Several institutions have been cre-
ated to take part in this process. The basis of the
entire system is the Coordination Body formed in
2008, which has now been modified to respond
to the challenges of the accession negotiations.
This coordination mechanism has also
involved the development of a National Pro-
gram for Integration 2008–2012, providing
responses to the 2011 European Commission
Questionnaire, and the adoption of the first
National Program for the Adoption of the
acquis (NPAA) in 2013.
Thirty-five negotiating groups comprise the
foundation of the entire structure. These
working groups operate in their respective
sectors, and include representatives of the
institutions tasked with proposing and imple-
menting regulations to achieve compliance
with EU legislation. Each group is headed
by a State Secretary or Assistant Minister
from the institution primarily responsible for
the EU acquis in each field. The Negotiating
Team and the Serbian European Integration
Office participate in the work of all negotia-
ting groups at all stages of the process.
The heads of the negotiating groups meet within
the Council of the Coordination Body, respon-
sible for coordinating the work of all negotiating
groups. The Council leader is the member of the
government responsible for European integrati-
on, and the Serbian European Integration Office
serves as the Council’s Secretariat.
The Council examines current issues in
Serbia’s EU accession process, and receives
guidelines from the Coordination body.
The Council consists of:
- the government member in charge of
European integration as Council President
- the director of the Serbian European
Integration Office,
- the Head of the Negotiating Team,
- heads of negotiating groups,
- state secretaries from the ministries whose
representatives are not leading the negotia-
ting groups.
The Coordination Body, headed by the Prime
Minister, manages the entire mechanism and
deals primarily with the most important poli-
tical issues. The members of the Coordination
body are:
Alphabet of EU negotiations
21st January 2014: Deputy Prime Minister
Dačić and the President of European Commission
at the inter-government conference marking
the beginning of accession negotiations

29. 29august 2014 |
EU negotiations
35 chapters – 35 steps
to the EU
All countries must fulfill the political, economic
and legal requirements for EU accession as defi-
ned by the European Council in Copenhagen in
1993 (the so-called Copenhagen criteria). An
additional requirement has been added for the
Western Balkan nations – regional cooperation
and friendly relations to neighboring countries.
To provide structure to membership negotia-
tions the EU acquis communautaire has been
divided into 35 chapters:
1. Free movement of goods
2. Freedom of movement for workers
3. Right of establishment and freedom to pro-
vide services
4. Free movement of capital
5. Public procurement
6. Company law
7. Intellectual property law
8. Competition policy
9. Financial services
10. Information society and media
11. Agriculture and rural development
12. Food safety, sanitary and phytosanitary policy
13. Fisheries
14. Transport
15. Energy
16. Taxation
17. Economic and monetary policy
18. Statistics
19. Social policy and employment
20. Enterprise and industrial policy
21. Trans-European networks
22. Regional policy and coordination of structu-
ral instruments
23. Judiciary and fundamental rights
24. Justice, freedom and security
25. Science and research
26. Education and culture
27. Environment
28. Consumer and health protection
29. Customs union
30. External relations
31. Foreign, security and defense policy
32. Financial control
33. Financial and budgetary provisions
34. Institutions
35. Other issues (normalization of relations
with Kosovo etc.)
• First Deputy Prime Minister and Minister of
Foreign Affairs,
• Deputy Prime Minister and Minister of
Labor, Employment and Social Policy,
• Deputy Prime Minister and Minister of
Foreign and Internal Trade and Telecommu-
nications,
• Minister for European Integration,
• Minister of Finance,
• Minister of Agriculture, Forestry, Water Ma-
nagement and Environmental Protection.
The director of the Serbian European Integra-
tion Office and the Head of the Negotiating
Team take part in the work of the Coordination
Body. The Serbian European Integration Office
acts as Secretariat to the Coordination Body.
To allow for unified conduct in negotiations
that are expected to last several years, the
Government of Serbia adopted a decision on
establishing the Negotiating Team on 3 Sep-
tember 2013, and appointed Tanja Miščević,
PhD as Head of the Negotiating Team.
The Negotiating Team takes part in all phases
of the negotiation process and is responsible
for communication with EU institutions, EU
member state institutions, and most of all,
coordinating the work of Serbia’s institutions
and of the 35 negotiating groups. The team
will continue to operate until Serbia signs the
EU Accession Agreement.
For inter-governmental conferences, where
the negotiations are formally held, the go-
vernment will form a special state delegation,
to be led by an appointed government mem-
ber (usually the Minister for EU integration or
the Minister of Foreign Affairs).
What role does the National
Parliament of the RS play in the
negotiations?
Negotiation history – Serbia and the EU
• 2000: Democratic changes
• June 2003: Summit of European leaders in Thessaloniki – Serbia identified as a potential candidate
• April 2008: Stabilization and Association Agreement (SAA) and Interim Trade Agreement between
Serbia and the EU signed
• December 2009: Visa-free regime with the EU Schengen group came into force / Serbia officially
submits its candidacy for EU membership
• October 2011: The European Commission recommends that Serbia be
awarded official EU candidate status
• March 2012: The European Council grants official EU candidate status to Serbia
• April 2013: The European Commission recommends the start of
accession talks between Serbia and the EU / the so-called Brussels Agreement
regarding the normalization of relations between Belgrade and Priština signed
• September 2013: SAA enters into force / screening processes initiated
• December 2013: The European Council supports the beginning of accession negotiations
• January 2014: The accession negotiations are officially initiated
The Resolution on the Role of the National
Parliament and the Principles of Serbia’s EU
Accession Negotiations adopted in December
2013 defines the role of the European Integrati-
on Committee of the Serbian Parliament in co-
ordinating the process of monitoring the acce-
ssion talks. In accordance with this resolution,
the Government must submit a draft position
to the European Integration Committee before
determining the negotiating positions for in-
dividual chapters . An authorized government
representative and the Head of the Negotiating
Team must attend the relevant parliamentary
session to discuss these issues. The committee
provides an opinion and/or recommendations
that must be considered by the government
in adopting any negotiating position. The
government must also inform the committee
about the adoption of this document.
The government also submits reports to the
European Integration Committee on the re-
sults of the bilateral screening for each chapter,
and the government member in charge of
European Integration and the Head of the
Negotiating Team also file quarterly progress
reports on the EU accession talks. The Go-
vernment submits a report on the status of ne-
gotiations to the Parliament twice a year, upon
the completion of each six-month presidency
cycle of the European Council. The report is
then discussed at a session of parliament .

30. 30 SYNERGY
IN SYNERGY
All new laws are sent to
Brussels via the Serbian
European Integration
Office, for assessment of
compliance with the EU
acquis. We need to observe
things strategically,
predicting how Serbia will
look ten or twenty years
from now, and analyzing
which reforms can be
financed from the budget,
from projects or from
investments
We receive both endorsements
Since we have been preparing for
EU membership for over 10 years,
we have made more progress than
our neighbors had when they started their
negotiations, and now they are EU members.
But we should not forget that as enlargement
policy progresses, the negotiations become
more complex, and the scope of regulations
and standards to be adopted is wider. There
are also more member countries to discuss
with, which requires specific negotiation and
balancing skills. The challenges are higher, but
not insurmountable.
This is the view of Serbia’s current position,
as expressed by Tanja Miščević, head of the
negotiating team for accession of the Republic
of Serbia to the European Union.
FOTO:ZORANRAŠEVIĆ
Screening sessions for some of the most
complicated negotiating chapters have
been completed, and just under half the
entire screening has been completed. What
is your view of Serbia’s position in terms of
compliance with EU regulations?
So far we have performed screening sessions
for 14 chapters. From September we will
continue the work to make sure that everyt-
hing is completed as planned by March next
year. We have finalized the review of legislative
compliance for several of the most important
chapters such as Justice, freedom and security,
Judiciary and fundamental rights, Competiti-
on policy, Agriculture and rural development,
Right of establishment and freedom to provi-
de services. These are certainly areas requiring
Tanja Miščević, Head
of Negotiating Team for
Accession of Serbia to the
European Union
and new recommendations

31. 31august 2014 |
Interview: Tanja Miščević, Head of the Negotiating team for accession of the Republic of Serbia to the EU
a lot of effort to comply with the extensive
legislation and good practice of the EU. For
example, in terms of public procurement, we
show high compliance with EU regulations,
but we must bear in mind that the EU is a
living organism and constantly amends its
legislation.
Which chapters can bring the greatest
changes in business-related legislation?
There is not a single chapter that will not have
a direct or indirect effect on business and
legislative changes in this area. Competition
policy, Chapter 8, is one of the most signifi-
cant chapters for both us and the EU. It is the
core of EC acquis and in the domain of direct
jurisdiction of the European Commission. At
the same time these are the reforms that will
make the most contribution in improving
the market environment and establishing fair
rules for the game. In parallel with introdu-
cing the European rules, we need to work on
improving the competitiveness of domestic
businesses, to make them able to withstand
the pressures of the EU’s single market.
The sovereign debt crisis in the EU has focu-
sed member states’ attention on this aspect of
new accessions, which is why Serbia must pay
special attention to its macroeconomic trends.
In addition, reform of the administration
and justice systems are the basis on which a
modern society works, but they are also a pre-
requisite for a good business environment. To
achieve this we not only have to adopt good
laws, but also to implement them. The results
of their implementation will be a measure of
our success in the negotiations, which is why
we consider this to be the beginning of radical
reforms.
NALED’s analysis shows that two thirds of
business-related laws are adopted throu-
gh emergency procedure without public
debate, and indicate a non-transparent
introduction of new fees and charges. What
is the EU’s view on this?
The European Commission Progress Report
provides endorsements in various fields, but
as you know, they are always accompanied by
recommendations for further improvement,
which serves as a motive
for us to keep working on
ourselves. All new laws are
sent to Brussels via the Ser-
bian European Integration
Office, for assessment of
compliance with the EU
acquis. This is something
we practice already to
ensure timely harmoniza-
tion and efficiency of the
process. And as for the
public debate, the situation
remains unchanged.
You criticized appeals
to review the deadline
until the sale of land to
foreigners is allowed.
To what extent do these
moves, calling for change
of previous agreements
with the EU, compromi-
se our position?
To be considered credible,
we need to respect the
agreements we make.
Before the signing of the
Stabilization and Associa-
tion Agreement containing
the provision on the sale of
land to foreign entities, no
one reacted – businesses,
experts, academics, no one.
This is just one example
that shows why it is important for all of us to
be informed about the negotiation progress
and the reforms and changes that follow, and
discuss and agree on these issues in good time.
An ambitious plan has been set to finalize
negotiations by 2018. What would such fast
completion mean specifically for chapters
15, 23, 24, 27 and 35, as some of the most
challenging for the alignment? Can such an
enthusiastic deadline represent a burden
for both administration and businesses and
make new regulations difficult to imple-
ment, which is one of the criticisms we
often hear?
Chapters such as environmental protection,
energy, agriculture, transport… due to the
scope of the acquis, the number of standards
that need to be established and reforms that
require considerable financial expense, these
are the most challenging, but also potentially
the most significant for the development of
the country. It is important for us to calculate
how much this would cost, but also develop a
realistic plan that does not need to imply that
we would complete everything by the time
Serbia becomes a member of the EU. We need
to think strategically and predict how Serbia
will look in ten or twenty years, and analyze
which reforms can be financed from the bud-
get, from projects or from investments.
Reform of the administration and
justice systems are the basis on
which a modern society works,
but they are also a pre-requisite
for a good business environment