The Eighth Business Roundtable with the Government of Serbia, organised by Economist Conferences, took place on 24th March in Belgrade. The event brought together senior government leaders and top-level corporate speakers to debate current and future government policies. Prime Minister Mirko Cvetković addressed the local and international business community, gathered for this important annual event.

In his presentation, Mr Cvetkovic outlined a series of fiscal stimulus measures for 2010, including significant public spending on infrastructure, designed to reinforce the fledgling economic recovery. He promised that the proceeds from the planned sale of 40% of the shares in Telecom Serbia would be used to finance infrastructure projects, and not for current budgetary expenditure. The Prime Minister claimed that the rating agencies exaggerated the risks in Serbia and that their assessments did not reflect the positive experience of investors in the country. Mr Cvetkovic also said that reports of serious policy disagreements among government ministers were false.

According to Laza Kekic, the conference Chairman and Regional Director for Central and Eastern Europe at the Economist Intelligence Unit, “the Serbian economy is set for a modest recovery in 2010. There, are, however, considerable risks to the outlook, including political risk and potential fallout from the Greek crisis. Although the resignation of the central bank governor, Radovan Jelasic, has increased uncertainty, it is hoped that his successor will continue to follow a responsible monetary policy”.

In the Economist Intelligence Unit Briefing, Joan Hoey-- Senior Editor, Eastern Europe at the Economist Intelligence Unit—noted that the 2009 crisis may have left a negative impact on longer-term growth prospects. The Serbian government will have to work hard to improve the regulatory and institutional environment so that sustained growth of 4-5% per year can be achieved.

Delegates also heard from Božidar Đelić, Deputy Prime Minister for European Integration and Minister of Science and Technological Development, and Vuk Jeremić, Minister of Foreign Affairs. As well as Bogdan Lissovolik, Resident Representative, IMF; Erik Berglöf, Chief Economist and Special Adviser to the President, European Bank for Reconstruction and Development; and senior executives from some of the largest foreign investors in Serbia.

The conference was sponsored by Alapis. PR agency Grayling also supported the roundtable.