COMMISSION STAFF WORKING DOCUMENT Serbia 2022 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2022 Communication on EU Enlargement policy
Date: 2022-10-12
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Serbia, accession criteria, accession negotiations, pre-accession strategy

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 12.10.2022  SWD(2022) 338 final  COMMISSION STAFF WORKING DOCUMENT Serbia 2022 Report Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 2022 Communication on EU Enlargement policy           {COM(2022) 528 final} - {SWD(2022) 332 final} - {SWD(2022) 333 final} - {SWD(2022) 334 final} - {SWD(2022) 335 final} - {SWD(2022) 336 final} - {SWD(2022) 337 final}  
 
 
1. INTRODUCTION ................................................................................................................... 3 

1.1  

1.2  

CONTEXT ................................................................................................................. 3 

SUMMARY OF THE REPORT  .................................................................................... 4 

1.3.  

STATE OF PLAY OF THE ACCESSION NEGOTIATIONS .............................................. 9 

2.    CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS ............ 10 

2.1. 

FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION 
REFORM ................................................................................................................ 10 

2.1.1   Democracy ................................................................................................. 10 

2.1.2. Public administration reform .......................................................................... 14 

2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS ................................................................. 19 

2.2.1. Chapter 23: Judiciary and fundamental rights................................................ 19 

2.2.2 Chapter 24: Justice, freedom and security ...................................................... 48 

2.3 ECONOMIC CRITERIA .................................................................................................... 67 

2.3.1.  The existence of a functioning market economy ....................................... 67 

2.3.2.  The capacity to cope with competitive pressure and market forces within 

the EU ........................................................................................................ 75 

2.4. PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL...................................... 78 

Chapter 5: Public procurement ................................................................................. 78 

Chapter 18: Statistics ................................................................................................ 81 

Chapter 32: Financial control ................................................................................... 83 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION .......... 86 

4. NORMALISATION OF RELATIONS BETWEEN SERBIA AND KOSOVO .......... 88 

5. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP .......................... 90 

CLUSTER 2: INTERNAL MARKET ........................................................................................ 90 

Chapter 1: Free movement of goods ........................................................................ 90 

Chapter 2: Freedom of movement for workers ........................................................ 92 

Chapter 3: Right of establishment and freedom to provide services........................ 93 

Chapter 4: Free movement of capital ....................................................................... 94 

Chapter 6: Company law .......................................................................................... 95 

Chapter 7: Intellectual property law ......................................................................... 95 

Chapter 8: Competition policy ................................................................................. 96 

Chapter 9: Financial services ................................................................................... 99 

Chapter 28: Consumer and health protection ........................................................... 99 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH.............................................. 102 

Chapter 10: Information society and media ........................................................... 103 

Chapter 16: Taxation .............................................................................................. 105 

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Chapter 17: Economic and monetary policy .......................................................... 106 

Chapter 19: Social Policy and employment ........................................................... 107 

Chapter 20: Enterprise and industrial policy .......................................................... 110 

Chapter 25: Science and research........................................................................... 111 

Chapter 26: Education and culture ......................................................................... 112 

Chapter 29: Customs union .................................................................................... 115 

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY ............................ 116 

Chapter 14: Transport............................................................................................. 116 

Chapter 15: Energy................................................................................................. 119 

Chapter 21: Trans-European networks ................................................................... 121 

Chapter 27: Environment and climate change ....................................................... 122 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION ................................................ 126 

Chapter 11: Agriculture and rural development ..................................................... 127 

Chapter 12: Food safety, veterinary and phytosanitary policy............................... 128 

Chapter 13: Fisheries .............................................................................................. 129 

Chapter 22: Regional policy and coordination of structural instruments............... 130 

Chapter 33: Financial and budgetary provisions .................................................... 131 

CLUSTER 6: EXTERNAL RELATIONS ................................................................................. 133 

Chapter 30: External relations ................................................................................ 133 

Chapter 31: Foreign, security and defence policy .................................................. 135 

ANNEX I – RELATIONS BETWEEN THE EU AND SERBIA ..................................... 139 

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1. INTRODUCTION 

1.1   CONTEXT  

Since the opening of Serbia’s accession negotiations in January 2014, 22  out of 35 chapters 
have been opened, including all chapters in cluster 1 on the fundamentals and all chapters in 
cluster  4  on  the  Green  agenda  and  sustainable  connectivity.  Two  chapters  have  been 
provisionally  closed.  In  June  2021,  Serbia  accepted  the  revised  enlargement  methodology. 
The overall pace of negotiations will continue to depend in particular on the pace of rule of 
law reforms and on the normalisation of Serbia’s relations with Kosovo.  

The Stabilisation and Association Agreement (SAA) between Serbia and the EU entered into 
force  in  September  2013.  Serbia  continued  to  implement  the  SAA,  although  a  number  of 
compliance issues remain.  

The  Serbian  government  has  continued  to  declare  EU  membership  its  strategic  goal,  but 
actions need to follow. Serbia’s reform progress allowed for the opening of negotiations under 
cluster  4  at  the  intergovernmental  conference  with  Serbia  on  14 December  2021.  However, 
after  the  calling  of  the  early  parliamentary  elections  and  the  dissolution  of  Parliament  in 
February 2022 the pace of reforms slowed down. Due to delays in the finalisation of election 
results, the government has acted in a caretaker capacity with limited powers since February 
2022.   

The  EU-facilitated  dialogue  on  the  normalisation  of  relations  between  Serbia  and  Kosovo 
continued with meetings at leaders’ and chief negotiators’ level.  

The  Commission’s  recommendation  from  last  year  that  Serbia  has  fulfilled  the  opening 
benchmarks  for  cluster  3  (competitiveness  and  inclusive  growth)  and  that  this  cluster  is 
technically ready for opening, remains valid.  

Following  Russia’s  unprovoked  and  unjustified  aggression  against  Ukraine,  Serbia  aligned 
with  most of the international  community, including the EU, in  voting  for two  relevant  UN 
General  Assembly  (UNGA)  resolutions  and  voted  on  Russia’s  suspension  from  the  Human 
Rights Council. However, Serbia did not align with any of the EU’s restrictive measures and 
most declarations by the High Representative (HR) on behalf of the EU against the Russian 
Federation.  It  maintained its close relationship with  Russia, raising questions about Serbia’s 
strategic  direction.  Under  the  EU-Serbia  Negotiating  Framework,  Serbia  is  expected  to 
progressively align its policies towards third countries with the policies and positions adopted 
by the EU, including restrictive measures.  

It  remains  important  that  effective  policy  planning  and  coordination  is  in  place,  along  with 
sufficient human and financial resources for EU accession across all institutions involved, so 
that  Serbia  can  work  towards  meeting  its  objectives  for  EU  accession  negotiations.  In  line 
with the EU accession objective, the Serbian authorities need to, as a matter of priority, take 
responsibility for proactive and objective communication on the EU, which is by far Serbia’s 
main political and economic partner.  

The  COVID-19  pandemic  continued  throughout  the  reporting  period,  following  similar 
patterns across the region.  

 This designation is  without  prejudice  to positions on status, and is line  with UNSCR  1244/1999 and the ICJ 
Opinion on the Kosovo declaration of independence. 

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1.2  

SUMMARY OF THE REPORT1 

As  regards  the  political  criteria,  all  relevant  political  actors  took  part  in  the  early 
parliamentary  elections  on  3 April  2022,  which  resulted  in  a  more  pluralistic  Parliament. 
However,  the  political  and  media  landscapes  remained  polarised  and  continued  to  be 
dominated  by  the  Serbian  Progressive  Party  (SNS)  and  the  incumbent  President.  Offensive 
language continued to be used against political opponents, both in Parliament and during the 
electoral  campaign.  Prior  to  the  elections,  a  broad  range  of  political  actors  engaged  in  the 
Inter-Party Dialogue, facilitated by the European Parliament.  

The April 2022 presidential and early parliamentary  elections were held in a generally  calm 
and  peaceful  atmosphere  and  fundamental  freedoms  were  largely  respected.  However, 
international observers noted a number of shortcomings. According to the final report of the 
International Election Observation Mission, these shortcomings resulted in an uneven playing 
field favouring the incumbents. It is crucial that outstanding and new recommendations from 
the  Office  for  Democratic  Institutions  and  Human  Rights  (ODIHR)  and  Council  of  Europe 
bodies are fully implemented, in a transparent process, well ahead of any new elections and 
with the involvement and upon consulting expert civil society organisations. 

A  new,  more  pluralistic  Parliament  was  constituted  on  1 August  2022.  Due  to  significant 
delays  in  finalising  the  election  results,  there  was  no  parliamentary  activity,  other  than  the 
inauguration  of  the  President,  for  a  period  of  over  five  months.  The  previous  Parliament 
engaged  constructively  in  the  Inter-Party  Dialogue  and  in  implementing  the  measures 
identified therein. The use of urgent procedures remained at around 9%. The code of conduct 
still needs to be used more effectively in preventing and sanctioning the use of offensive and 
inappropriate language in Parliament.   

Further efforts are still needed to ensure systematic cooperation between the government and 
civil  society.  An  enabling  environment  for  developing  and  financing  civil  society 
organisations still needs to be created on the ground, as verbal attacks and smear campaigns 
against such organisations continued. 

Serbia  is  moderately  prepared  as  regards  public  administration  reform.  Overall,  limited 
progress was made in this area during the reporting period, when the start of implementation 
of  the  new  strategic  framework  began.  On  human  resources  management,  roughly  half  of 
senior manager positions are still filled on an acting basis. As regards policy development and 
coordination,  no  mechanism  is  yet  in  place  to  verify  that  the  Public  Policy  Secretariat’s 
comments have been incorporated into the final draft versions of laws and policy documents 
submitted for government approval. On public financial management, action is still needed to 
fully implement the recommendation for a single mechanism for prioritising all investments 
regardless of type and source of financing.  

1  This  report  covers  the  period  from  June  2021  to  June  2022.  It  is  based  on  input  from  a  variety  of  sources, 
including contributions from the government of Serbia, the EU Member States, European Parliament reports and 
information  from  various  international  and  non-governmental  organisations.  This  also  includes  the  results  of 
comparative assessments and indices produced by other stakeholders, in particular on the rule of law.  
The  report  uses  the  following  assessment  scales  to  describe  the  state  of  play:  early  stage,  some  level  of 
preparation,  moderately  prepared,  good  level  of  preparation  and  well  advanced.  To  describe  progress  made 
during the reporting period, it uses the following scale has been used: backsliding, no progress, limited progress, 
some progress, good progress and very good progress. Where appropriate, also interim steps have been used. 

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Serbia  has  some  level  of  preparation  when  it  comes  to  its  judicial  system.  Overall,  some 
progress  was  made  during  the  reporting  period.  Serbia  took  an  important  step  towards 
strengthening  the  independence  and  accountability  of  the  judiciary  with  the  approval  of 
relevant  amendments  to  the  Constitution  in  February 2022,  together  with  the  constitutional 
law setting out the steps and the deadlines for their implementation. The Venice Commission 
was  consulted  twice  during  the  drafting  process.  It  found  that  the  process  of  public 
consultations  was  sufficiently  inclusive  and  transparent.  Most  of  the  Venice  Commission’s 
specific  recommendations  were  addressed.  The  amendments  provide  that  all  judicial 
appointments (with the exception of the future Supreme Prosecutor) will be the competence of 
either  the  future  High  Judicial  Council  or  the  High  Council  of  Prosecutors,  increasing 
safeguards  against  potential  political  influence.  In  order  to  give  practical  effect  to  the 
constitutional  amendments  the  relevant  implementing  legislation  needs  to  be  adopted  as  a 
next step. According to the constitutional law, this legislation should be adopted within 1 year 
for  judicial  laws  and  within  2  years  for  the  alignment  of  all  other  relevant  legislation.  Two 
expert  working  groups  (one  for  prosecutors,  one  for  courts)  were  established  in  April  2022 
and tasked with the drafting of the implementing legislation. A first set of draft judicial laws 
were finalised in September 2022 and shared with the Venice Commission for opinion. The 
new human resources strategy and implementing action plan were adopted in December 2021. 
Their implementation is pending.  

Serbia has some level of preparation in the fight against corruption. Overall, some progress 
was  made  during  the  reporting  period,  including  on  last  year’s  recommendations.  The 
recommendation on prevention of corruption has been further implemented, and the Council 
of Europe’s Group of States against Corruption (GRECO) concluded in March 2022 that the 
adoption of amendments to the Law on prevention of corruption had addressed the previously 
identified shortcomings  and was sufficient  to  strengthen the framework aimed at  preventing 
and combating conflicts of interest of members of Parliament, judges and prosecutors. Serbia 
has still to prepare a new anti-corruption strategy and action plan, and establish an effective 
coordination  mechanism  to  operationalise  prevention  and  repression  policy  goals  and 
thoroughly  address  corruption.  The  number  of  indictments  and  first-instance  convictions  in 
high-level corruption cases has increased slightly. Serbia should further step up the prevention 
and repression of corruption. In particular, it should increase the final confiscation of assets 
linked  to  these  cases.  Those  sectors  most  vulnerable  to  corruption  require  targeted  risk 
assessments and dedicated action. 

In the fight against organised crime, Serbia has some level of preparation. Limited progress 
was made over the reporting period. The number of new investigations and final convictions 
increased  in  2021  compared  to  2020,  however  the  number  of  indictments  and  first  instance 
convictions decreased. The number of cases involving seizure and final confiscation of assets 
is  still  limited.  Extended  confiscation  is  not  systematically  applied.  However,  the  level  of 
understanding  and  the  investigation  approach  have  improved,  which  should  lead  to  better 
results in the future. Serbia should  move from a case-by-case approach to a strategy against 
criminal  organisations,  and  from  focusing  on  cases  of  low  or  medium  importance  to  high- 
profile cases, aimed at dismantling big internationally spread organisations and seizing assets. 

Serbia’s legislative and institutional framework for upholding fundamental rights is broadly 
in place. Serbia adopted new strategies on anti-discrimination and Roma inclusion, as well as 
action  plans  on  gender  equality  and  Roma  inclusion.  Action  plans,  and  related  funding,  in 
other  areas  were  due  in  July  2021  (violence  against  women)  and  April  2022  (anti-
discrimination;  de-institutionalisation)  and  are  now  overdue.  More  efforts  are  needed  to 
comply  with  the  Law  on  the  planning  system,  which  requires  that  action  plans  are  adopted 
within  three  months  of  the  adoption  of  related  strategies.  Serbia  needs  to  strengthen  human 

5 

 
 
rights institutions by allocating the necessary financial and human resources and by putting in 
place procedures to ensure compliance with the European Court of Human Rights’ measures, 
including interim measures. In September 2022, Europride was hosted for a first time in the 
Western Balkans, in Belgrade. The Europride route was banned, and the holding of the march 
was uncertain until the very last moment.  The authorities claimed safety concerns related to 
threats  by  extreme  right  groups  as  the  basis  for  their  decision.  An  anti-Europride  and,  anti-
Western demonstration was also banned. Finally a march, via a shorter route took place on 17 
September  2022,  without  major  incidents.  A  high  number  of  law  enforcement  officers 
protected it, nevertheless, some instances of violence against the participants  were  reported.  
The  period  prior  to  the  march  was  marked  by  legal  and  political  uncertainty.  The 
communication of the authorities was contradictory, with high level announcements that the 
march would be banned altogether and a subsequent ban issued by the Ministry of the Interior 
on the route of the march. Other high level politicians addressed the Europride Human Rights 
Conference and held a reception before the march. While the authorities maintained contacts 
with  the  organisers  to  find  a  solution,  they  remained  non-committal  about  the  parade  going 
ahead with an official permit.   

Regarding  freedom  of  expression,  no  progress  was  made  in  the  reporting  period.  The  two 
working groups on the safety of journalists continued to meet. In several cases of attacks and 
threats,  the  police  and  the  prosecution  reacted  swiftly,  also  thanks  to  the  coordination 
facilitated  through  those  groups.  However,  cases  of  threats  and  violence  against  journalists 
remain  a  concern  and  the  overall  environment  for  the  exercise  of  freedom  of  expression 
without  hindrance  still  needs  to  be  further  strengthened  in  practice.  Implementation  of  the 
media  strategy  experienced  increasing  delays,  affecting  even  the  most  important  measures 
such as amending the Law on public information and media and the Law on electronic media. 
In  July  2022,  the  Regulatory  Body  for  Electronic  Media  (REM)  awarded  all  four  national 
frequencies,  for  a  period  of  eight  years,  to  the  same  television  channels  as  in  the  previous 
period, during which all of them had received warnings from REM due to violation of their 
legal obligations. A call for a fifth licence was published in August 2022; the process should 
be  handled  in  a  transparent  manner,  respecting  the  principle  of  media  pluralism  in  the 
Audiovisual  Media  Services  Directive.  In  its  final  report  of  19  August  2022  on  the  April 
elections,  ODIHR  found  that  ‘the  national  public  broadcasters  had  covered  the  campaign 
activities  of  all  contestants  equitably  but  provided  extensive  uncritical  news  coverage  to 
public  officials  who  were  also  candidates.  Private  broadcast  media  with  national  coverage 
presented  the  election  campaign  without  meaningful  editorial  input  and  focused  their  news 
coverage  on  state  officials.’  ODIHR  also  found  that  ‘despite  its  mandate  to  oversee  the 
broadcast media, REM remained overall passive in the campaign period.’  

On  the  economic  criteria,  Serbia  is  between  a  good  and  moderate  level  of  preparation  and 
has made some progress in developing a functioning market economy. After a relatively mild 
contraction  in  2020,  the  Serbian  economy  rebounded  strongly  in  2021  followed  by  some 
deceleration in the first half of 2022. After decreasing in 2020, external imbalances started to 
widen in  the second half of 2021, in  particular due to  high energy imports.  Consumer price 
inflation surged in the second half of 2021, mostly driven by energy and food prices, which 
led the central bank to start tightening its policy stance. Banking sector stability was preserved 
and lending growth remained robust despite the phasing-out of liquidity-enhancing measures. 
The  economic  rebound  and  the  reduction  of  fiscal  support  measures  helped  to  substantially 
improve the budget  balance in  2021, despite a further increase in  capital spending.  A slight 
increase  in  the  unemployment  rate  in  2021  reflected  in  particular  a  rising  labour  market 
participation as part of the rebound from the COVID-19 crisis.   

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There has been some progress with tax administration reforms and the privatisation of state-
owned  enterprises.  However,  other  major  structural  reforms  of  public  administration  and  of 
the  governance  of  state  owned  enterprises  (SOEs)  continued  to  advance  slowly,  prolonging 
long  standing  inefficiencies  and  increasing  fiscal  pressure.  There  has  been  no  progress  in 
strengthening  fiscal  rules  to  anchor  fiscal  policy.  The  state  retains  a  strong  footprint  in  the 
economy and the private sector is underdeveloped and hampered by weaknesses in the rule of 
law,  in  particular  corruption  and  judicial  inefficiency,  and  in  the  enforcement  of  fair 
competition. Last year’s recommendations have been partially implemented. 

Serbia  is  moderately  prepared  and  has  made  some  progress  in  coping  with  competitive 
pressure and market forces within the EU. The structure of the economy improved further 
and  economic  integration  with  the  EU  remained  high.  However,  despite  some  progress,  the 
quality  and  relevance  of  education  and  training  does  not  fully  meet  labour  market  needs. 
Public investment has continued to increase with the aim of addressing serious infrastructure 
gaps after years of underinvestment. Small and medium-sized enterprises (SMEs) still face a 
number of challenges, including an uneven playing field as compared to large companies and 
foreign investors. Last year’s recommendations have been partially implemented. 

On  good  neighbourly  relations  and  regional  cooperation,  Serbia  remained  committed 
overall  to  improving  bilateral  relations  with  other  candidate  countries,  potential  candidates 
and neighbouring EU Member States. However, relations with Croatia are increasingly under 
strain,  with  occasional  political  altercations.  Relations  with  Montenegro  remain  challenging 
but both sides have signalled greater willingness to reset relations and work toward addressing 
open issues. In general, Serbia actively participates in regional cooperation.  

The  EU-facilitated  Dialogue  on  the  normalisation  of  relations  with  Kosovo  continued 
throughout  the  reporting  period  with  regular  monthly  meetings  on  the  level  of  Chief 
Negotiators  and  a  High-level  meeting  in  Brussels  on  18  August  2022.  No  further  concrete 
progress  was  yet  achieved  in  the  negotiations  on  the  comprehensive  and  legally-binding 
normalisation agreement, while in the High-level meeting President Vučić and Prime Minister 
Kurti  agreed  to  regular  meetings  on  the  level  of  Leaders  to  take  the  negotiations  forward. 
Kosovo and Serbia are now urged to engage constructively and advance the negotiations on 
the comprehensive, legally-binding normalisation agreement with no further delay. Reaching 
such  an  agreement  is  urgent  and  crucial  so  that  Kosovo  and  Serbia  can  advance  on  their 
respective European paths.  

Regarding  Serbia’s  ability  to  assume  the  obligations  of  EU  membership,  the  country 
continued the work on alignment with the EU acquis in many areas, particularly on company 
law, intellectual property rights, research and innovation and financial control.  

The internal market cluster is key for Serbia’s preparations for the requirements of the EU’s 
internal  market  and  is  highly  relevant  for  early  integration  and  the  development  of  the 
Common  Regional  Market.  Progress  was  achieved  in  several  areas  within  the  cluster, 
particularly  on  legislative  alignment  on  company  law;  freedom  of  movement  for  workers 
through  coordination  of  social  security  systems;  and  legislative  alignment  on  the  free 
movement of goods.  

The competitiveness and inclusive growth cluster has significant links to Serbia’s Economic 
Reform  Programme.  Progress  was  achieved  in  some  areas  under  this  cluster,  particularly: 
social  policy  and  employment  through  steps  towards  establishing  the  Youth  Guarantee 
scheme;  economic  and  monetary  policy  through  improvements  of  the  budget  process; 
enterprise  industrial  policy  through  an  action  plan  for  the  strategy  on  state  ownership  and 
management of business entities owned by the Republic of Serbia, and the creation of the e-
consultation  portal;  scientific  and  technological  development  through  the  new  strategy  for 

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developing start-up ecosystem; and education  through steps towards ensuring compliance of 
the quality assurance system in higher education with the recommendations of the European 
Association for Quality Assurance in Higher Education (ENQA).  

The Green agenda and sustainable connectivity cluster is at the heart of the Green Agenda 
for the Western Balkans2 and closely linked to Serbia’s Economic Reform Programme and the 
Commission’s  Economic  and  Investment  Plan3.  The  cluster  and  all  related  chapters  were 
opened in December 2021, after Serbia had fulfilled the remaining requirements, namely the 
adoption of action plans on oil stocks and on gas unbundling. Limited progress was achieved 
overall with the exception of Trans-European networks, where Serbia advanced on upgrading 
its infrastructure, with works starting on the Serbia-Bulgaria gas interconnector, a strategically 
highly important project for Serbia and Europe.  

The  cluster  on  resources,  agriculture  and  cohesion  comprises  policies  linked  to  EU 
structural funds and to developing capacity to assume the responsibilities of a future Member 
State.  It  also  comprises  some  of  the  key  policy  areas  crucial  for  ensuring  sustainable  food 
systems  and  helping  rural  communities  to  develop  and  diversify  economically.  Two  out  of 
five  chapters  are  open  (Chapters  13  and  33)  with  closing  benchmarks  still  to  be  fulfilled  in 
each chapter. The Commission has assessed that the opening benchmarks have been met for 
Chapters 11 and 22, while Serbia still has to meet all three opening benchmarks  for chapter 
12.  Limited  progress  was  achieved  in  some  areas,  e.g.  submission  of  the  IPARD  III 
programme  for  2021-2027;  adoption  and  implementation  of  the  law  on  plant  protection 
products;  classification  of  food  establishments  and  establishments  handling  animal  by-
products; financial and budgetary provisions as regards the underlying policy areas affecting 
the correct functioning of the own resources system; and regional policy as regards financial 
management.  

On  the  external  relations  cluster,  Serbia  is  yet  to  finalise  its  accession  to  the  World  Trade 
Organization  which  is  one  of  the  opening  benchmarks  for  chapter  30.  Serbia  should  also 
abstain from introducing unilateral trade restrictive measures without prior consultation of the 
Commission, in line with its SAA obligations. Following Russia’s unprovoked and unjustified 
aggression  against  Ukraine,  Serbia  did  not  align  with  the  EU  restrictive  measures  against 
Russia and majority of Declarations by the High Representative on behalf of the EU on this 
matter.  Serbia’s  alignment  rate  with  relevant  High  Representative  declarations  on  behalf  of 
the EU and Council Decisions therefore dropped from 64 % in 2021 to 45 % in August 2022. 
A  number  of  actions  and  statements  by  Serbia  went  against  EU  foreign  policy  positions. 
Serbia  is  expected,  as  a  matter  of  priority,  to  fulfil  its  commitment  and  progressively  align 
with the EU Common Foreign and Security Policy, including with EU restrictive measures, in 
line with EU-Serbia negotiating framework.  

Serbia continued to contribute to the management of the mixed migration flows towards the 
EU by cooperating effectively with its neighbours and EU Member States. Efforts continued 
to  host  and  accommodate  substantial  numbers  of  third-country  nationals,  with  EU  support. 
Serbia  decided  on  17 March  2022  to  grant  Ukrainian  nationals  having  fled  Russia’s  war  on 
Ukraine temporary protection for 1 year. It also continued to implement the integrated border 
management  strategy  and  its  action  plan  effectively.  Serbia  took  no  steps  to  align  with  the 
EU’s list of visa required third countries, in particular with those third countries which present 

2 SWD(2020) 223 final. 
3 COM(2020) 641 final. 

8 

 
 
                                                           
 
irregular  migration  or  security  risks  to  the  EU,  as  recommended  in  the  Commission’s  visa 
suspension mechanism report of August 2021. 

1.3.   STATE OF PLAY OF THE ACCESSION NEGOTIATIONS  

Clusters 

Chapters / areas  

State of play   

Fundamentals 

23 – Judiciary and fundamental rights  

Opened July 2016  

24 – Justice, freedom and security  

Opened July 2016  

All chapters open 

  5 – Public procurement  

Opened December 2016  

18 – Statistics  

32 – Financial control 

…Economic criteria 

…Functioning of democratic institutions  

…Public administration reform 

Opened December 2018 

Opened December 2015  

Internal Market 

1 – Free movement of goods   

Serbia working on fulfilment of opening benchmarks  

2 – Freedom of movement for workers 

Draft EU Common Position in Council 

4 chapters open 

3  –  Right  of  establishment  and  freedom   
to establish services  

Draft EU Common Position in Council 

 4 – Free movement of capital 

 6 – Company law  

 7 – Intellectual property rights  

 8 – Competition  

 9 – Financial services  

28 – Consumer and health protection 

Opened December 2019  

Opened December 2017  

Opened June 2017  

Serbia working on fulfilment of opening benchmarks  

Opened June 2019  

Draft EU Common Position in Council 

Competitiveness 
and inclusive 
growth 

10 – Digital transformation and media  

Draft EU Common Position in Council 

16 – Taxation 

Opening Benchmarks Assessment Report in Council 

17 – Economic and monetary policy 

Opened December 2018  

19 – Social policy and employment  

Opening Benchmarks Assessment Report in Council 

5 chapters open 

20 – Enterprise and industrial policy  

Opened February 2017  

25 – Science and research 

Opened December 2016 and provisionally closed  

26 – Education and culture 

Opened February 2017 and provisionally closed 

Green Agenda 
and Sustainable 
connectivity           
All chapters open 

Resources, 
Agriculture and  
cohesion 

2 chapters open  

29 – Customs union  

14 – Transport policy 

15 – Energy 

Opened June 2017 

Opened December 2021 

Opened December 2021 

21 – Trans-European networks 

Opened December 2021 

27 – Environment and climate change  

Opened December 2021 

11 – Agriculture and rural development  

Opening Benchmarks Assessment Report in Council 

12 – Food safety, veterinary and 
phytosanitary policy  

13 – Fisheries  

Serbia working on fulfilment of opening benchmarks  

Opened June 2018 

22 – Regional policy and coordination of        
structural instruments  

Opening Benchmarks Assessment Report in Council 

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
33 – Financial and budgetary provisions   Opened June 2018  

External Relations 

30 – External relations  

Opened December 2017   

1 chapter opened  

31 – Foreign, security and defence policy  

Screening Report in Council 

Not part of a cluster: 

Chapter 34 – Institutions is currently not applicable for Serbia 

Chapter 35 – Other Issues / Normalisation of relations between Serbia and Kosovo opened in December 
2015 

2.    CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION 

2.1. 
REFORM   

2.1.1   Democracy  

The  proper  functioning  of  Serbia’s  democratic  processes  is  a  central  pillar  of  Serbia’s  EU 
accession process. All relevant political actors  took part in the early parliamentary elections 
on  3 April  2022,  which  led  to  a  more  pluralistic  Parliament.  While  fundamental  freedoms 
were largely respected, international observers noted a number of shortcomings. The political 
and  media  landscapes  remained  polarised  and  continued  to  be  dominated  by  the  Serbian 
Progressive  Party  (SNS)  and  the  incumbent  President.  Offensive  language  against  political 
opponents  also  continued to  be used, both  in  Parliament and during the  electoral campaign. 
Prior  to  the  elections,  a broad  range  of  political  actors  engaged  in  the  Inter-Party  Dialogue, 
facilitated  by  the  European  Parliament,  although  a  number  of  opposition  parties  did  not 
endorse  the  recommendations  of  the  Dialogue  or  take  part  in  their  implementation.  The 
authorities implemented a number of the identified measures. They also conducted a parallel 
dialogue with the part of the non-parliamentary opposition ‘without external mediation’. The 
significant delay in finalising the election results delayed the formation of a new government, 
which led to a period of its limited decision making capacity. 

Elections  

The April 2022 elections were held in an overall calm and peaceful atmosphere.  However, 
the  preliminary  statement  and  the  final  report  of  the  International  Election  Observation 
Mission  noted  a  number  of  shortcomings,  which  resulted  in  an  uneven  playing  field 
favouring the incumbents. It is crucial that outstanding and new recommendations from the 
Office for Democratic Institutions and Human Rights and Council of Europe bodies are fully 
implemented, in a transparent process and well ahead of next elections. Expert civil society 
organisations should be involved and consulted.  

On 3 April 2022, regular presidential, early parliamentary and regular Belgrade City elections 
were  held.  The  national  elections  were  observed  by  an  Election  Observation  Mission  from 
ODIHR, joined by observers from  the European  Parliament, the Parliamentary Assembly of 
the  Organization  for  Security  and  Co-operation  in  Europe  (OSCE)  and  the  Parliamentary 
Assembly  of  the  Council  of  Europe  (PACE).  According  to  their  preliminary  conclusions, 
reiterated in the final report, the elections presented diverse political options and fundamental 
freedoms were largely respected during the campaign but a number of shortcomings resulted 
in  an  uneven  playing  field,  favouring  the  incumbents.  The  combined  impact  of  unbalanced 
access  to  media,  undue  pressure  on  public  sector  employees  to  support  the  incumbents, 
significant  campaign  finance  disparities  and  misuse  of  administrative  resources,  led  to 
unequal  conditions  for candidates. Media did  cover all electoral  candidates, but  most public 
and  private  broadcasters  with  national  coverage  favoured  the  incumbent  President  and  the 
ruling coalition, limiting the opportunity for voters to make fully informed choices. Election 

10 

 
 
day was smoothly conducted and overall peaceful but, despite solid preparation, was marked 
by  a  number  of  systematic  procedural  shortcomings  relating  to  polling  station  layout, 
overcrowding, breaches in ballot secrecy and numerous instances of family voting. A number 
of reruns and delays in finalising the results of the parliamentary elections were not conducive 
for improving the overall trust in the electoral process.   

A  number  of  the  measures  identified  by  the  European  Parliament-led  Inter-Party  Dialogue 
have been implemented. In October 2021, a temporary supervisory body for media oversight 
was  set  up.  In  December  2021,  the  Law  on  electronic  media  was  amended  to  include 
measures  identified  in  the  Dialogue.  In  February  2022,  a  set  of  new  election  laws  was 
adopted,  including  the  framework  Law  on  election  of  Members  of  Parliament,  Law  on 
election of President, Law on local elections, Law on financing of political activities, and the 
amended  Law  on  prevention  of  corruption.  According  to  international  observers,  these 
legislative changes included some welcome improvements and addressed some prior ODIHR 
recommendations.  Specifically  for  the  3 April  elections,  the  changes  enhanced  the 
representation  of  the  non-parliamentary  opposition  in  electoral  commissions  and  the 
transparency of their work; they also extended the timeframes and legal standing for dispute 
resolution, improved the regulation of political party and campaign finance, and provided for 
post-election audits of election materials. They further regulated the status of international and 
domestic  observers  and  introduced  further  affirmative  action  for  national  minorities. 
However,  the  amendments  were  introduced  at  a  late  stage  and  a  number  of  long-standing 
ODIHR and Council of Europe bodies’ recommendations were not addressed, including those 
pertaining to key aspects of the electoral process, such as access to media, campaign finance, 
measures to tackle pressure on voters, and the public scrutiny and auditing of voter lists.  

On campaign finance, see also Chapter 23 – Judiciary and fundamental rights, under Fight 
against corruption. 

In  contrast  to  the  2020  parliamentary  elections,  which  were  boycotted  by  a  number  of 
opposition  parties,  the  2022  polls  were  inclusive,  and  all  relevant  political  actors  took  part. 
Eight presidential candidates ran, three of whom were women. There were 19 lists registered 
for parliamentary elections. Four were headed by women and eight were registered as national 
minority lists. Of the 12 lists that passed the threshold and entered the new Parliament, five 
were lists of national minorities.  

Parliament  

Following the elections of 3 April 2022, a new, more pluralistic Parliament was constituted 
on 1 August 2022. Due to significant delays in finalising the elections results, there was no 
parliamentary activity, other than the inauguration of the President, for a period of over five 
months. The previous Parliament engaged constructively in the Inter-Party Dialogue and the 
implementation  of  identified  measures.  The  use  of  urgent  procedures  remained  at  around 
9%.  Offensive  language  against  political  opponents  continued  to  be  used.  The  code  of 
conduct  still  needs  to  be  used  more  effectively  in  preventing  and  sanctioning  the  use  of 
inappropriate language.   

In line with the announcement made immediately after the 2020 elections, reducing the length 
of parliamentary term, Parliament was dissolved on 15 February 2022.    

A  new  Parliament  was  constituted  on  1  August  2022  and  a  new  leadership  elected  on 
2 August. Out of seven initially appointed Deputy Speakers, three were women, two belong to 
the national minorities, and three represented the opposition. Members of working bodies and 
parliamentary  delegations  were  also  appointed  on  2 August,  including  the  parliamentary 
Committee  for  the  Stabilisation  and  Association  process,  which  is  chaired  by  an  opposition 

11 

 
 
MP.  It  was  agreed  that  five,  out  of  20  standing  committees  would  be  chaired  by  the 
opposition. In the new Parliament, 95 women were elected, which makes up for 38 % of all 
MPs. The ruling list of the Serbian Progressive Party controls 120 of the 250 seats, the list led 
by the Socialist Party of Serbia 31 seats, United for the Victory of Serbia 38 seats, Nada/Hope 
for  Serbia  coalition  15 seats,  Moramo/We  Must  coalition  13 seats,  the  Zavetnici  list  and 
Dveri-POKS list 10 seats each, and the remaining 13 seats were allocated to national minority 
lists,  which  enjoy  affirmative  action  (two  Bosniak,  one  Hungarian,  one  Albanian  and  one 
Croat – Ruthenian list). There is an active women’s parliamentary network.  

There was  a heavy legislative agenda  in  2021 and Parliament adopted a 265 laws during its 
term (from August 2020 until its dissolution in February 2022), of which 24 (9 %) by urgent 
procedure.  In  2021,  191 laws  were  adopted  of  which  14  by  urgent  procedure.  The  vast 
majority of bills continued to be tabled by the  government.  In February 2022, following the 
successful referendum in January, Parliament adopted and promulgated the Act on amending 
the  Constitution  and  implementing  the  Constitutional  Law,  formalising  the  reform  of  the 
constitutional provisions in the area of the judiciary. Of the 21 public hearings held in 2021, 
11 concerned the constitutional reform of the judiciary. One public hearing was held in 2022. 
Parliament has not yet adopted an annual work plan for 2022. 

Committees  continued  to  regularly  review  activity  reports  by  the  relevant  ministries.  Nine 
monthly sessions with MPs’ questions to the Prime Minister and ministers were held in 2021.  

Annual reports by independent bodies were debated in the relevant committees and in plenary 
sessions.  However,  Parliament  failed  to  support  the  activities  of  independent  bodies  in  a 
systemic manner by regularly monitoring implementation of their recommendations.   

Parliament  continued  the  recently  established  practice  of  plenary  debates  on  the  European 
Commission’s reports on Serbia.  In December 2021, such a debate was  held  for the second 
time  and  relevant  conclusions  were  adopted.  The  Committee  for  European  Integration 
continued to debate draft negotiating positions submitted by the government: in January 2022 
the  draft  negotiating  position  for  Chapter 28  was  discussed  and  endorsed  and  in 
November 2021 the Committee heard the regular (January-June 2021) government report on 
the accession process. Parliament also continued cooperation with the National Convention on 
the EU of non-governmental organisations (NKEU).  

Parliament  engaged  constructively  in  the  second  phase  of  the  Inter-Party  Dialogue  and 
adopted the identified measures ahead of the April elections.  

The  new  Code  of  Conduct,  adopted  in 2020,  was  amended  in  September 2021.  In 
October 2021,  the  ethics  commission  was  established.  However,  offensive  language  against 
political opponents and civic activists continued to be used in parliamentary debate. The Code 
of  Conduct  should  be  used  more  systematically  and  effectively  to  prevent  and  sanction 
offensive language.  

The rules of procedure still need to be modernised, in line with best European standards and 
practices. The effectiveness, autonomy and transparency of Parliament, including the role of 
the  parliamentary  opposition,  need  to  be  strengthened  unequivocally,  in  order  to  ensure  the 
necessary checks and balances.  

Governance  

The Serbian government has continued to declare EU membership its strategic goal. In line 
with the EU accession objective, the Serbian authorities need to place emphasis on proactive 
and objective communication to its own population about the EU, which is by far Serbia’s 
main political and economic partner. 

12 

 
 
Due to delays in the finalisation of election results, the government has acted in a caretaker 
capacity with limited powers since February 2022.   

During  the  election  campaign  and  afterwards,  statements  were  made  by  some  government 
representatives which were not in line with Serbia’s strategic goal of EU membership. 

The  government  continued  to  hold  consultations  with  the  National  Convention  of  non-
governmental organisations (e.g. on constitutional reform of the judiciary).  

Further  efforts  are  needed  to  improve  the  transparency  and  inclusiveness  of  the  reform 
process,  particularly  on  issues  related  to  EU  accession.  The  restructuring  of  the  Serbian 
negotiating  team  established  two  separate  coordinating  bodies,  one  of  a  political  nature  and 
one undertaking  practical  tasks. The new coordination structure  aims to  make the  accession 
process  more  inclusive  and  establish  a  chain  of  responsibilities  to  speed up  the  process  and 
make it more participatory.  It  is  important  that sufficient  human  and financial resources  are 
allocated  across  all  institutions  involved  so  that  Serbia  can  work  towards  meeting  its 
objectives  on  EU  accession  negotiations.  The  autonomy  of  independent  bodies  needs  to  be 
fully  exercised,  their  role  acknowledged  and  respected  by  the  authorities,  and  their 
recommendations followed up thoroughly and in a timely manner. The National programme 
for adoption of the acquis (NPAA 2022-2025), which adheres to the principles of the new EU 
accession methodology, was adopted by the government in July 2022.  

As regards local self-government, the Law on Vojvodina’s financing resources has still not 
been  adopted,  despite  being  provided  for  under  the  Constitution.  Local  administrative 
remains  weak  and  significant  disparities  between  municipalities  persist. 
capacity 
Responsibilities continue to be borne at local level without proper analysis of the capacity and 
human/financial resources required.  In June 2021, the government adopted for the first time 
the programme for reform of the local government system 2021-2025, which aims to address 
shortcomings in the functioning of local government.  

Civilian oversight of the security services  

Parliament continues to be responsible for civilian oversight of the security services. The Law 
on access to state security files has not yet been adopted. 

The  Parliamentary  committee  for  the  oversight  of  security  services  remains  responsible  for 
civilian oversight of the security sector. The Committee reviewed regular periodic reports by 
the civilian and two military security agencies, and the activity report of the General Inspector 
of the Ministry of Defence. A law on access to the state security files still needs to be adopted.  

Civil society 

In  February  2022,  Serbia  adopted  a  strategy  for  creating  a  stimulating  environment  for  the 
development of civil society for 2022-2030, referring also to the need to  establish a council 
for civil society cooperation.  

Further efforts are still needed to ensure systematic cooperation between the government and 
civil  society.  An  enabling  environment  for  developing  and  financing  civil  society 
organisations  (CSOs)  still  needs  to  be  created  on  the  ground,  as  verbal  attacks  and  smear 
campaigns against such organisations continued. 

An empowered civil society is a crucial component of any democratic system and should be 
recognised and treated as such by state institutions.  

In  February  2022,  Serbia  adopted  a  strategy  for  creating  a  stimulating  environment  for  the 
development of civil society for 2022-2030, and the corresponding action plan in September 
2022.  The  strategy  indicates  that  in  2022,  as  a  baseline  year  prior  to  the  start  of 

13 

 
 
 
implementation,  ‘practices  of  cooperation  between  public  authorities  and  CSOs  are  not 
satisfactory’.  The  strategy  also  refers  to  the  need  to  establish  a  council  for  civil  society 
cooperation. 

CSOs  and  human  rights  defenders  continued  to  raise  awareness  about  civil  and  political 
rights.  This  took  place  in  a  polarised  environment.  Verbal  attacks  and  smear  campaigns 
against  several  CSOs  and  their  financing  continued,  including  by  high-level  officials. 
Organisations  and  individuals  that  criticised  the  authorities  were  put  under  pressure,  in 
particular in cases relating to the rule of law – such as protests against the glorification of war 
criminals  -  or  environmental  protection.  During  environmental  protests  in  November  and 
December 2021, masked and other individuals attacked some of the protestors. The Ministry 
of the Interior issued a public statement that, since the rallies were not registered, the police 
could not secure them and guarantee safety, and that the organisers would instead bear such 
responsibility (See also Chapter 23 on freedom of assembly). 

The legal framework for cooperation between the government and CSOs is broadly in place; 
its  implementation  still  needs  to  be  improved  and  systematised.  A  new  e-consultations 
platform was set up in December 2021. The impact of this new consultation tool has yet to be 
assessed. There is no central body in charge of quality control. CSOs continue to report that 
the time given for public consultations remained short, or that their comments on draft laws of 
public  interest,  for  example  draft  amendments  to  the  law  on  expropriations,  were  not  given 
sufficient consideration and follow-up (See Public Administration Reform). 

The National Convention on the EU continued to monitor and assess the progress of accession 
negotiations, and met several times with government officials. 

2.1.2. Public administration reform   

Serbia  is  moderately  prepared  as  regards  the  reform  of  its  public  administration.  Overall, 
limited  progress  was  made  in  this  area  during  the  reporting  period,  with  the  adoption  of  a 
policy-making and regulatory reform programme 2021-2025 in November 2021, completing 
the  new  public  administration  reform  (PAR)  strategic  framework,  and  with  the  start  of  its 
implementation.  The  three  Commission  recommendations  from  last  year  have  yet  to  be 
implemented. On human resources management, roughly half of senior manager positions are 
still filled on an acting basis. As regards policy development and coordination, no mechanism 
is yet in place to verify that the Public Policy Secretariat’s comments have been incorporated 
into the final draft versions of laws and policy documents submitted for government approval. 
On  public  financial  management  (PFM),  action  is  still  needed  to  fully  implement  the 
recommendation for a single mechanism for prioritising all investments regardless of type and 
source of financing. There is an urgent need to address those shortcomings.  

In the coming year, Serbia should in particular:  

  reduce  the  excessive  number  of  acting  positions,  and  allocate  sufficient  resources  for 

effective, merit-based recruitment processes;  

  ensure strong quality control role for the Public Policy Secretariat to allow for  effective 

implementation of the Law on the planning system;  

  put  in  place  a  unified,  comprehensive  and  transparent  system  for  capital  investment 

planning and management.  

Strategic framework for public administration reform  

The new PAR strategic framework was completed in November 2021 with the adoption of the 
missing  policy-making  and  regulatory  reform  programme  2021-2025.  The  authorities 

14 

 
 
involved  civil  society  organisations  in  monitoring  the  first  year  of  implementation  of  the 
strategy. The PAR Council, chaired by the  minister in  charge of public administration, held 
two meetings in 2021. Political support for public administration reform continued. Financial 
sustainability remains an issue of concern due to reliance on donor funding.  

Policy development and coordination  

Institutions are in place for a central government policy-making system, including for the EU 
integration process.  The  Law on the planning system, containing clear rules  for developing, 
monitoring and reporting on sector strategies, needs to be applied systematically. There is still 
no mechanism to  ensure that the Public Policy Secretariat’s  comments  are incorporated and 
that the final draft versions of laws and policy documents are compliant with the legislation. 
An  increasing  number  of  policy  documents  are  being  entered  into  the  unified  information 
system, but the number of implementation reports deriving from it remains limited. Two years 
on,  the  legal  requirement  to  have  mid-term  plans  adopted  by  all  institutions  as  of  January 
2020 is not met; only 20 out of 40 public bodies have adopted and published their mid-term 
plans  for  2022-2024.  The  national  plan  for  the  adoption  of  the  EU  acquis  (NPAA)  and  the 
government  annual  work  programme  have  yet  to  be  better  synchronised.  Serbia  adopted  a 
new  NPAA  in  July  2022.  A  high  proportion  of  planned  commitments  in  the  government 
annual  work  programme  are  carried  forward  into  the  following  year  as  they  have  not  been 
implemented. 

The  capacity  for  inclusive  and  evidence-based  policy  and  legislative  development, 
including  when  aligning  with  the  EU  acquis,  still  needs  strengthening.  Administrative  data 
collection and its systematic use for policy and law-making has to be further improved across 
the administration. The methodology on impact assessments needs to be consistently applied. 
The  Public  Policy  Secretariat’s  acceptance  of  ‘partial  compliance’  with  the  methodology 
limits the degree of alignment with legal requirements and improvement in the overall quality 
of  the  impact  assessments.  Better  coordination  between  the  Ministry  of  Finance  and  the 
Public  Policy  Secretariat  is  still  needed  to  ensure  that  there  are  no  discrepancies  between 
financial impact assessments and financial information in the regulatory impact assessments.  

Regarding  inter-ministerial  consultations,  there  are  still  no  high-level  mechanisms  for 
resolving possible conflicts between services before they reach the government. The scope of 
public  consultations  was  improved.  A  new  e-consultations  platform  was  established  in 
December 2021. The impact of this new consultation tool has yet to be assessed. There is no 
central body in charge of quality control. Despite the legal obligation to provide information 
on  the  results  of  public  consultations,  reports  are  not  yet  systematically  published,  nor  are 
explanations  systematically  provided  on  the  acceptance  or  not  of  comments  received  (See 
Civil society).  

As regards public scrutiny of government work, reports were published on  implementation 
of  the  PAR  strategy  and  PFM  reform  programme  and  on  the  action  plan  for  the 
implementation  of  the  government  programme.  Other  reports  on  the  NPAA  and  sector 
strategies were not published. The government’s website still does not provide direct access to 
monitoring reports on the implementation of key government planning documents. Agendas, 
minutes and conclusions of government sessions are still not published. 

Public financial management  

The  2021-2025  PFM  reform  programme  was  implemented  in  line  with  its  action  plan  for 
2021. The cost of government measures to mitigate the economic impact of COVID-19 and 
the spillover effects of  Russia’s war of aggression against Ukraine has increased the overall 
fiscal deficit and public debt. However, public finances were kept on a sustainable path in line 

15 

 
 
with  medium-term  fiscal  goals.  The  capital  budget  level  continued  its  upward  trend  but  a 
unified,  comprehensive,  effective  and  transparent  system  for  planning  and  management  of 
capital investments needs to be put in place. Serbia needs to apply the full methodology of the 
decree  on  capital  projects  management,  as  well  as  public  procurement  procedures,  to  all 
capital  investments  regardless  of  type  of  investment  or  source  of  financing.  It  must  also 
ensure  that  effective  procedures  are  in  place  to  guarantee  that  the  planning,  appraisal  and 
implementation  of  capital  projects  is  integrated  into  the  budget  process.  Furthermore,  the 
government’s  investment  planning  and  management  capacity  needs  to  be  improved.  This 
includes the capacity for public assets management and for assessing possible fiscal risks for 
investment projects funded by loans from third countries.  

The link between the government programme and the sector strategies and operational plans 
of  budget  beneficiaries  remains  weak.  The  improved  legislative  framework  for  public 
procurement  and  internal  control  needs  to  be  implemented  in  practice.  With  public 
procurement  in  particular,  the  very  high  value  of  procurement  decisions  exempted  from  the 
Law on public procurement raises serious concerns. The State Audit Institution has continued 
to  increase both  the coverage  and quality of  its  audits of public funds  and its  relations with 
stakeholders (See Chapters 5 – Public procurement, and 32 – Financial control).  

Analytical units in all ministries and line bodies need to be established without delay in order 
to  foster  the  effective  consolidation  of  strategic,  operational  and  financial  management 
functions, as planned in Serbia’s strategic documents.  

Areas  that  would  merit  further  improvements  include  the  accounting  and  reporting 
framework,  arrears,  commitment  controls,  extra  budgetary  operations  and  performance  
management. 

Serbia did  not  progress  in  improving  budget transparency. No transparency roadmap, pre-
budget statement or mid-year report has been produced or published. The Ministry of Finance 
does not publish the budget execution profile at the beginning of the year, preventing analysis 
of  deviations  from  targets.  Some  additional  policy  and  fiscal  risk  information  could  be 
included  in  the  executive’s  budget  proposal.  Public  participation  in  the  budget  process  and 
budget  oversight  by  the  legislature  needs  to  be  improved.  The  2022  budget  was  adopted  in 
line with the budget calendar but with very limited qualitative assessment and debate among 
the stakeholders.  

Public service and human resources management  

The  civil  service  legislation  provides  for  merit-based  recruitment  and  dismissal 
procedures but leaves too much discretion to the heads of institutions in setting up selection 
committees. There were no developments in mandatory competition procedures for recruiting 
temporary  staff  in  cases  of  increased  workload  and  this  has  been  postponed  from  2021  to 
2023. The possibility to convert certain categories of temporary contracts into permanent civil 
service contracts needs to be considered carefully to avoid possible abuse. Grades received by 
civil  servants  under  the  performance  appraisal  system  remain  inflated.  A  high  proportion 
(2020: 72 %, 2021: 50 %) of disciplinary decisions are annulled by courts. 

The  legislation  on  senior  civil  service  positions  provides  for  a  merit-based  recruitment 
procedure,  but  the  lack  of  transparency  in  the  procedure  and  the  lack  of  compliance  with  it 
remain  issues  of  serious  concern.  The  legal  provision  allowing  for  appointments  to  acting 
positions  for  6  months  (with  a  maximum  extension  of  3  months)  is  frequently  used  beyond 
those limits. As of May 2022, 51 % of filled senior positions were held on an acting basis (62 
%  in  June  2021).  Despite  the  amendments  to  the  Law  on  civil  servants  restricting 
appointments to existing civil servants as of July 2019, the government continued to appoint 

16 

 
 
non-civil servants – occupying two thirds of total acting posts - after that legal deadline. The 
limited  capacity  of  the  High  Civil  Service  Council  is  a  concern  given  the  large  number  of 
competitions to be organised to replace all the current acting managers at a reasonable speed. 
Clear  political  will,  sufficient  resources  and  effective  monitoring  by  the  responsible 
institutions remain essential to address this issue as a matter of urgency. The authorites set up 
a  ‘special  working  group’  to  look  into  possible  solutions.  However,  established  practices 
continue to lack transparency. In particular, appointment decisions for management positions 
can be overturned by a government personnel committee after the selection process has been 
finalised at the institutional level.  

As regards the competency-based human resources management system, the success rate of 
tested  competencies  remained  extremely  high.  The  Human  Resources  Management  Service 
needs  to  further  strengthen  its  capacity  to  coordinate  and  harmonise  the  work  of  human 
resources units in the line institutions. There is no annual reporting yet and reliable statistics 
are  not  yet  available  as  the  setting  up  of  a  new  human  resources  management  information 
system is delayed. The current system is still not connected to other national databases such as 
the treasury payroll registry. No progress was made regarding remuneration of civil servants. 
Implementation  of  the  2016  Law  on  the  public  sector  salary  system,  which  introduces  the 
principle of equal pay for equal work for all public sector employees, is further delayed as it 
was again postponed for another year, to 2025. Restrictions in recruitment remained in place 
through the Law on the budget system.  

With  regard  to  professional  development,  the  National  Training  Academy  for  Public 
Administration  continued  organising  training  for  all  public  officials,  including  at  the  local 
self-government level. The Academy further developed online training courses and continued 
to  increase  training  coverage  both  in  terms  of  the  number  of  courses  and  the  number  of 
trained  public  administration  staff.  The  implementation  of  a  comprehensive  professional 
development programme for senior civil servants is at an early stage of implementation.  

The  third  round  of  development  and  implementation  of  integrity  plans  for  all  public 
authorities  began  in  November  2021.  Further  efforts  are  needed  to  ensure  that  the  existing 
integrity plans for the judiciary and public administration are fully implemented. The integrity 
of  the  civil  service  is  still  undermined  by  the  excessive  number  of  acting  senior  manager 
posts.  By  March  2022,  30  out  of  174  local  self-governments  had  adopted  the  new  code  of 
ethics for local officials developed by the Standing Conference of Towns and Municipalities. 

Accountability of administration  

The  structure  of  the  public  administration  has  not  yet  been  streamlined.  The  lines  of 
accountability between agencies and their parent institutions remain blurred, contributing to 
overlapping functions, fragmentation, and unclear reporting lines. In spite of the existence of 
the Law on public agencies, almost all agencies of this type still have their status regulated by 
a  special  law.  Political  commitment to  managerial  accountability,  performance  management 
and systematic delegation of responsibilities is still needed. The establishment of a registry of 
holders  of  public  powers  was  postponed  to  2025  in  the  new  PAR  strategy.  The  decree  of 
March 2021 on organisation and systematisation of work posts, introducing analytical units, 
has  yet  to  be  enforced;  the  units  need  to  be  promptly  set  up  with  adequately  trained  staff. 
Institutions  still  have  a  predominantly  bureaucratic  and  process-oriented  approach  to 
planning, budgeting and reporting on their activities (See Chapter 32 – Financial control).  

As regards the citizens’ right to good administration, a new Law on the Ombudsman was 
adopted in November 2021. According to the Ombudsman’s 2021 report, the largest number 
of citizens’ complaints relates to violation of economic and property rights, followed by civil 
and political rights, socio-cultural rights and rights of children (See Fundamental rights). 

17 

 
 
Administrative silence, whereby public authorities fail to properly act on citizens’ information 
requests, remained a major issue. Amendments to the Law on free access to information of 
public  importance  were  adopted  in  November  2021,  which  should  in  principle  ensure  more 
effective enforcement of the decisions taken by the Commissioner for Information of Public 
Importance (See Chapter 23 – Fight against corruption).  

On the citizens’ right to administrative justice, review of Administrative Court judgments is 
possible  only  in  a  limited  number  of  cases  and  only  through  extraordinary  legal  remedies. 
According  to  the  Chapter  23  action  plan,  a  two-instance  network  of  administrative  courts 
review should be established by the first quarter of 2023. In 2021, the  Administrative Court 
received 38 927 cases and resolved 22 104 (77.04 % clearance rate). Some 64 834 cases were 
pending at the end of 2021. The continuing backlog of cases, alongside expanded jurisdiction 
and  a  relatively  small  number  of  judges  (46),  is  negatively  affecting  access  to  justice.  The 
Court  took  steps  to  improve  transparency  by  uploading  169 548  integral  and  14 029 
anonymised judgements into the case-law database of the Supreme Court of Cassation.  

Available data indicate a gradual increase in the use of legal aid, predominantly in civil and 
administrative  cases  and  for  victims  of  domestic  violence.  There  is  a  need  to  improve  the 
existing capacity and cooperation between different service providers, raise further awareness 
about this right, and align the legal framework with the procedural laws, the law on court fees 
and the tariff regulation. All local self-governments but one now have a registered provider of 
free  legal  aid  (See  Fundamental  rights).  Citizens’  right  to  seek  compensation  is  regulated 
but there is still no statistical data to monitor its implementation.  

Service delivery to citizens and businesses  

Creating a more user-oriented administration remains a government priority. The Office for 
IT and e-government and the Prime Minister’s Delivery Unit continued to ensure coordination 
and  leadership  in  this  area  and  implementation  of  the  e-government  programme.  A  central 
monitoring  of  performance  and  quality  standards  for  services  are  needed.  Progress  in 
developing e-services continued, in particular in relation to the COVID-19 crisis. A full set of 
implementing laws relating to the Law on e-government was adopted by February 2022. The 
number of municipal one-stop shops increased; however, a regulation governing their setting 
up has yet to be adopted. The number of databases connected to the Government Services Bus 
-  an  information  system  linking  major  databases  -  has  increased,  including  the  central 
population  registry.  Digital  signatures  are  being  used  but  the  number  of  people  using  this 
service is still limited. 

The legal framework for simplification of administrative procedures is in place. However, 
regulatory  uncertainty  for  individuals  and  businesses  remains  due  to  persistent  delays  in 
aligning  sector-based  legislation  with  the  Law  on  general  administrative  procedures.  The 
capacity  of  the  Ministry  of  Public  Administration  and  Local  Self-Government  to  efficiently 
oversee  the  implementation  of  this  Law  is  still  limited.  In  implementation  of  the  ‘e-paper’ 
programme 2019-2021, the Public Policy Secretariat simplified 311 administrative procedures 
and digitised 64 ones. However, this programme is still not clearly linked with the process of 
aligning  sector-based  legislation  and/or  special  procedures  with  the  Law  on  general 
administrative procedures. 

2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS 

2.2.1. Chapter 23: Judiciary and fundamental rights 

18 

 
 
 
The EU's founding values include the rule of law and respect for human rights. An effective 
(independent,  high  quality  and  efficient)  judicial  system  and  an  effective  fight  against 
corruption  are  of  paramount  importance,  as  is  respect  of  fundamental  rights  in  law  and  in 
practice. 

Serbia has some level of preparation in applying the EU acquis and European standards in 
this area. Limited progress was made overall, which includes an improvement of the average 
grading  of  the  sub-chapters  compared  to  the  previous  reporting  period.  Serbia  made  an 
important  step  with  the  adoption  and  promulgation  of  the  constitutional  amendments  in 
Parliament  in  February  2022.  In  order  to  give  practical  effect  to  the  constitutional 
amendments the relevant implementing legislation needs to be adopted swiftly. Two experts 
working groups tasked with drafting the legislation have been set up with a timeline for their 
adoption by February 2023. A first set of draft judicial laws were finalised in September 2022 
and  shared  with  the  Venice  Commission  for  opinion.  The  Council  of  Europe’s  Group  of 
States against Corruption (GRECO) recommendations in the area of prevention of corruption 
have been further implemented and the number of indictments and first instance convictions 
for high-level  corruption cases  has  slightly increased. Serbia has still to prepare a new anti-
corruption  strategy,  accompanied  by  an  action  plan.  On  media  freedom,  no  progress  was 
made on the recommendations of last year, which therefore remain valid. 

Following  the  2020  adoption  of  the  revised  action  plan  for  implementing  Chapter  23,  the 
judiciary’s  monitoring  and  reporting  mechanism  has  been  improved  and  places  greater 
emphasis  on  a  qualitative  analysis  of  achievements  of  the  impact  indicators.  In  addition,  an 
early  warning  reporting  mechanism  involving  the  50  implementing  institutions  has  been 
introduced  through  a  special  report  and  involving  follow-up  improvements  to  rectify 
implementation  issues  within  timeframes.  Annual  reporting  on  the  interim  benchmarks  has 
begun.  

The  interinstitutional  Coordination  body  has  held  four  meetings  since  its  establishment  in 
2021.  Three  permanent  staff  have  been  appointed  to  the  secretariat.  The  mechanism  for 
cooperation  with  civil  society  organisations  has  improved.  The  Ministry  of  Justice  has 
organised one roundtable bringing together civil society organisations. Considering the high 
staff turnover across the judiciary and fundamental rights institutions, staff retention should be 
prioritised. Further know-how and capacity building is required and budgeting for human and 
financial resources should be improved. 

Functioning of the judiciary 

Serbia has some level of preparation in the area of the judiciary. Some progress was made 
overall  on  last  year’s  recommendations.  Serbia  took  an  important  step  on  the  independence 
and  accountability  of  the  judiciary  with  the  approval  of  relevant  amendments  to  the 
Constitution in February 2022, together with the Constitutional Law setting out the steps and 
the  deadlines  for  their  implementation.  The  Venice  Commission  (VC)  was  consulted  twice 
during  the  drafting  process.  It  found  that  the  public  consultations  process  was  sufficiently 
inclusive  and  transparent.  Most  of  the  VC’s  specific  recommendations  were  addressed.  The 
amendments to the Constitution provide that all judicial appointments (with the exception of 
the future Supreme Prosecutor) will be made either by the future High Judicial Council (HJC) 
or  the  High  Prosecutorial  Council  (HPC),  increasing  safeguards  against  potential  political 
influence.  In  order  to  give  practical  effect  to  the  constitutional  amendments  the  relevant 
implementing  legislation  needs  to  be  adopted  swiftly.  For  the  purpose  of  drafting  the 
implementing  legislation  two  expert  working  groups  (one  for  prosecutors,  one  for  courts) 
were established in April 2022. A first set of draft judicial laws were finalised in September 
2022 and shared with the Venice Commission for opinion. A broad and inclusive consultation 

19 

 
 
process  including  full  alignment  with  Venice  Commission  recommendations  and  European 
standards  will  be  needed  in  this  regard.  According  to  the  constitutional  law,  this  legislation 
should be adopted within 1 year for judicial laws and within 2 years for the alignment of all 
other  relevant  legislation.  The  new  human  resources  strategy  and  related  action  plan  were 
adopted in December 2021. Their implementation is pending.  

the 

regarding 

this  positive  development,  significant  challenges  and  delays 
remain 

in 
Notwithstanding 
implementation 
impartiality,  accountability,  efficiency  and 
professionalism  of  the  judiciary,  access  to  justice  and  high-quality  training.  The  current 
system  of  recruitment,  transfer  and  promotion  of  judges  and  prosecutors  still  needs  to  be 
revised to ensure that careers are fully based on merit. A number of steps have been taken to 
reduce  the  space  for  political  influence  on  the  judiciary,  however,  it  is  not  yet  possible  to 
observe  a  reduction  of  undue  influence  on  judges  and  prosecutors  in  practice.  Serbia  still 
needs  to  show  a  genuine  commitment  for  investigating  and  adjudicating  war  crimes  cases. 
Serbia  continues  to  challenge  publicly  the  judgments  of  the  International  Criminal  Tribunal 
for the former Yugoslavia (ICTY), including at the highest levels. 

In the coming year, Serbia needs in particular to: 

  amend the relevant judicial laws for the implementation of the constitutional amendments 
(Laws  on:  organisation  of  courts;  seats  and  territorial  jurisdiction  of  courts  and  Public 
Prosecutors’ Offices, judges; Public Prosecutors’ Office and the Judicial Academy) in line 
with  the  foreseen  deadlines  and  Venice  Commission  recommendations  in  order  to 
strengthen the independence of the judiciary and the autonomy of the prosecution; 

  amend  the  Laws  on  High  Judicial  and  Prosecutorial  Councils,  in  line  with  foreseen 
deadlines and Venice Commission recommendations, to empower them to effectively and 
proactively  defend  judicial  independence  and  prosecutorial  autonomy  in  practice, 
including in cases of external undue influence; 

  start  implementing  the  human  resources  strategy  for  the  entire  justice  sector  and 
operationalise  the  uniform  and  centralised  case  management  system,  to  improve  the 
efficiency and effectiveness of the justice system.  

Strategic documents 

In  March  2022,  the  action  plan  for  the  2022-2025  judicial  development  strategy  was 
adopted, further specifying reform activities, including reporting by the relevant international 
bodies/organisations  and  civil  society.  The  Serbian  government  is  delayed  in  carrying  out  a 
comprehensive impact analysis of the country’s reforms on the basis of the 2014 World Bank 
functional  reviews  including  addressing  its  recommendation.  The  World  Bank  finalised  the 
latest  functional  analysis  of  the  prosecution  services  in  August  2022,  following  comments 
received from the Ministry of Justice and the judicial institutions. The recommendations from 
previous World Bank functional reviews remain to be addressed.  

A  new  human  resources  strategy  and  action  plan  for  the  judiciary  were  adopted  in 
December  2021.  Their  full  implementation  should  improve  performance  across  the  justice 
sector.  The  new  monitoring  and  reporting  mechanism  set  out  in  the  Chapter  23  action  plan 
should  provide  information  based  on  a  qualitative  analysis  of  achievements  towards  impact 
indicators,  including  on  human  and  financial  resources,  as  well  as  early-warning  and 
corrective measures. Special efforts should be placed on staff retention and capacity building 
across the implementing institutions. An information  and communications technology  (ICT) 
strategy and accompanying action plan were adopted in February 2022. Sustained efforts are 
needed to make the ICT system work in an effective and efficient manner, closely linked with 

20 

 
 
the  human  resources  (HR)  strategy  and  the  judicial  reform.  The  Ministry  of  Justice  also 
developed  a  new  mechanism  for  cooperation  with  civil  society.  Overall,  although  Serbia  is 
advancing in setting up a robust performance assessment framework and  building a credible 
record of accomplishment in implementation, the reforms need to be accelerated.  

Management bodies 

As  regards  the  organisation  of  the  courts  and  prosecutors’  offices,  responsibilities  for 
budgetary planning, resource allocation and execution remain divided between the Ministry of 
Justice  and  the  Councils,  adversely  affecting  the  efficiency  of  the  courts  and  prosecutions. 
Following  the  constitutional  amendments,  the  implementing  judicial  laws  should  set  out  a 
clear framework to resolve this issue. In addition, the implementation of the new HR strategy 
should  improve  the  overall  management  of  the  system,  taking  into  account  the  predicted 
judiciary  workload,  both  the  number  and  complexity  of  cases,  as  determined  by  case-
weighting procedure. The new case-weighting formula was introduced in January 2022 in all 
basic, higher and commercial courts. An evaluation of its application is underway. 

The  High  Judicial  Council  (HJC)  adopted  a  new  strategy  and  improved  the  use  of  the 
information  and  financial  reporting  system  for  more  accurate,  reliable  and  efficient  data 
collection  and  processing.  The  State  Prosecutorial  Council  (SPC)  took  steps  towards 
introducing  the  necessary  ICT  tools  to  ensure  random  allocation  of  cases  and  introduce  the 
case  weighting  formula.  Measures  were  also  taken  to  improve  the  transparency  of  the 
Councils’ work, notably through publications on their websites. Both Councils have operated 
without  full  complement  of  members  since  2021,  pending  Parliament’s  appointment  of  bar 
representatives. The new judicial laws should further strengthen the position and role of the 
Councils, 
the  constitutional  amendments  and  Venice  Commission 
recommendations.  There  is  a  need  to  improve  the  analytical  and  statistical  capacity  of  both 
Councils in line with the HR strategy for the judiciary.  

line  with 

in 

Independence and impartiality 

The  current  legal  framework  does  not  provide  sufficient  guarantees  against  attempts  to 
exercise  undue  political  influence  over  the  judiciary.  The  first  step  in  the  constitutional 
reform, aimed at increasing judicial independence safeguards, was successfully finalised on 9 
February 2022, when the Parliament promulgated the amendments to the Constitution and the 
Constitutional  Law  after  they  were  confirmed  in  the  public  referendum  held  on  16  January 
2022.  The  Constitutional  Law  sets  out  the  next  steps  and  the  deadlines  for  adopting  the 
implementing judicial legislation. The Venice Commission (VC) was consulted twice on the 
draft text of the amendments.  

The  VC  concluded  in  its  first  opinion  from  October  2021  that  the  process  of  public 
consultations  for  these  draft  amendments  was  sufficiently  inclusive  and  transparent.  It 
welcomed  ‘[…] inter alia, the  introduction of  the principle of  non-transferability of  judges, 
functional immunity for  judges and prosecutors,  the removal  of  the probationary period  for 
judges and prosecutors, the fact that the High Judicial Council will no longer be dissolved if 
it  does  not  render  a  decision  within  30  days  and,  most  importantly,  the  removal  of  the 
competence from the National Assembly to elect court presidents and public prosecutors and 
to  decide on the termination of  their office as well as to  elect  judges and the deputy public 
prosecutors.’ The VC ‘[…] deemed the relevant amendments in line with European standards 
and considered that these amendments address previous recommendations, including those of 
the Venice Commission.’  

The  VC  complemented  this  assessment  with  a  number  of  specific  recommendations  that 
Serbia was expected to address. Parliament took account of the VC’s opinion and submitted a 

21 

 
 
revised version to the VC for an urgent opinion. This was issued on 24 November 2021 with 
the VC welcoming ‘that most of its key recommendations from the October opinion have been 
met, most notably the recommendation on the composition of the High Judicial Council’. The 
Venice  Commission  warned  that  “the  recommendation  related  to  the  anti-deadlock 
mechanism  for  the  election  of  the  lay  members  of  the  High  Judicial  Council  has  not  been 
followed and the one related to the composition of the High Prosecutorial Council has only 
been  partly  followed.’  The  Venice  Commission  confirmed  that  ‘even  though  the  solutions 
proposed in the revised draft amendments in respect of these two recommendations do not go 
against any international standards as such, the Commission insisted once again on the need 
to reduce the risks of politicisation of the two Councils.’ 

The amendments to the Constitution provide that all the judicial appointments, including first 
time  judges  and  prosecutors  (with  the  exception  of  the  future  Supreme  Prosecutor)  will  no 
longer  be  made  by  Parliament,  but  by  the  future  High  Judicial  Council  and  the  High 
Prosecutorial  Council  (name  change  from  the  present  State  Prosecutorial  Council,  as  per 
amendments). With the reform, the ‘High Court of Cassation’ has been renamed the ‘Supreme 
Court’, whose powers will be defined in the future law on courts. 

In order to give practical effect to the constitutional changes the adoption of a set of judicial 
laws with detailed provisions is needed as next step, which needs to be done within 1 year (by 
February  2023).  The  set  of  laws  includes  the  Laws  on:  organisation  of  courts;  seats  and 
territorial  jurisdiction  of  courts  and  Public  Prosecutors’  Offices,  judges,  Public  Prosecutor’ 
Office, the High Judicial Council, and the High Prosecutorial Council. A broad and inclusive 
consultation  and  the  active  participation  of  all  relevant  institutional  stakeholders  and  civil 
society  are needed for  developing  these important  laws. The  Constitutional  Law sets  a two-
year  deadline  for  the  alignment  of  all  other  relevant  legislation  (by  February  2024).  This 
includes the adoption of legislation referring to, but not limited to: rules of procedure for the 
courts, for the high judicial and the high prosecutorial council, including specific rules on the 
work of bodies for evaluating the work of judges and (deputy) public prosecutors; the work of 
their respective disciplinary bodies, ethical boards and elections committees; and also rules of 
procedure of the Managing Board and the Programme Council of the Judicial Academy. The 
Ministry of Justice is leading this process and has established two expert working groups (one 
for the judges and one for the prosecutors) on 15 April 2022. The work started with delay, in 
June 2022. The working group finalized the drafts of the five judicial laws in September 2022 
(Laws on: judges, High Judicial Council, organisation of courts; Public Prosecutors’ Office; 
High Prosecutorial Council) and shared them with the Venice Commission for opinion. This 
exercise should be completed on time for the adoption of the laws by February 2023 through 
wider  consultations  and  with  full  alignment  with  the  recommendations  of  the  Venice 
Commission. 

Pressure  on  the  judiciary  and  the  prosecution  still  remains  high.  Government  officials, 
including some at the highest level, as well as members of Parliament, continue to comment 
publicly on ongoing investigations or court proceedings, as well as on the work of individual 
prosecutors and judges. Such comments are in contradiction with the new code of conduct for 
members  of  Parliament,  adopted  in  December  2020.  Information  leaked  on  ongoing 
investigations  or  cases  has  been  published  by  a  number  of  media  outlets  and  may  be 
considered to interfere in the investigations and processing of cases, creating undue pressure 
on individual members of the judiciary or the prosecution. Some steps were taken to address 
this  issue.  In  line  with  the  Action  plan  for  Chapter  23,  the  Ethics  Committees  of  the  High 
Judicial  Council  (HJC),  the  State  Prosecutorial  Council  (SPC)  and  the  National  Assembly 
held  their  first  joint  meeting  in  June  2022  agreeing  to  continue  cooperation  in  order  to 
establish an effective monitoring mechanism for full compliance with court decisions.  

22 

 
 
The rules of procedure of the HJC and the SPC, amended in April 2021, lay the foundation for 
a  more  effective  reaction  and  protection  mechanism  for  judges  and  prosecutors  in  cases  of 
undue influence. However, despite these steps, it is not yet possible to observe a reduction of 
undue  influence  on  judges  and  prosecutors  in  practice.  In  2021,  five  judges  reported  undue 
influence to a confidential counsellor of the HJC, who also took one case on own initiative. 
The counsellor identified inappropriate influence in three cases. One was rejected and two are 
pending. In the first half of 2022, nine judges addressed HJC on the basis of undue influence. 
Compared  to  the  previous  period,  there  was  a  smaller  number  of  processed  cases  on 
prosecutorial  protection  over  external  pressure.  The  HPC  Commissioner  issued  only  one 
statement. More transparency in his work is needed, including the publication of guidance and 
anonymised decisions. The current legal framework authorises the head of every prosecutor’s 
office  to  intervene  in  individual  cases.  This  creates  a  certain  vulnerability  for  political 
influence, notably when effective safeguards are lacking in practice. This should be addressed 
in  line  with  the  amended  Constitution  in  the  new  Law  on  prosecution  and  on  the  HPC. 
Overall,  stronger  reactions  and  broader  public  outreach  are  needed  from  both  Councils, 
notably  by  using  the  many  instruments  at  their  disposal  (statements,  media  conferences, 
publicly  addressing  the  authorities  or  institutions  concerned).  This  would  send  a  clear 
message on the need to eliminate undue influence on judges and prosecutors and help reverse 
a persisting negative perception as to their independence and autonomy in practice. 

Accountability 

Following  the  constitutional  changes,  the  new  judicial  laws  (and  subsequently  the  relevant 
implementing  laws)  should  lay  down  more  precise  disciplinary  rules  for  judges  and 
prosecutors  including  the  necessary  procedural  safeguards,  especially  with  regard  to  the 
violations  of  the  adopted  standards  of  professional  ethics.  There  is  a  need  to  improve  the 
capacity of the disciplinary bodies. 

The HJC adopted a new rulebook on the work of its Ethical Board in June 2022 following the 
appointment  of  the  new  president,  deputy  president  and  members  of  the  Board  in  October 
2021.  Both  Councils  continued  with  activities  to  promote  respect  for  professional  ethical 
standards and confidential counselling. 

The term office of the former HJC disciplinary prosecutor expired and a successor took over 
in  May  2021.  There  were  473  new  disciplinary  reports  filed  in  2021.  The  disciplinary 
prosecutor  resolved  593  cases  and  recommended  to  the  disciplinary  commission  to  take 
further proceedings in 6 cases. The HJC’s disciplinary commission was not operating for the 
whole  of  2021,  due  to  changes  in  its  composition;  in  2022  it  processed  12  new  cases  and 
issued 2 penalties, 1 public warning and 1 salary reduction for a serious disciplinary violation. 
Most of the reports were filed by private individuals and lawyers complaining over prolonged 
litigations  and  misdemeanour  proceedings.  In  2021,  disciplinary  prosecutor  of  the  State 
Prosecutorial  Council  processed  115  new  cases.  In  these  cases  91  reports  were  rejected  as 
groundless, while 3 cases were referred to disciplinary commission. As in the previous period, 
most of the reports were filed by private individuals and attorneys.  

Professionalism and competence 

In 2020 and 2021, 16 court presidents and 259 judges were appointed to courts at all levels. 
At  the  end  of  2021,  out  of  3  073  judicial  posts,  353  were  vacant  while  2  508  judges 
effectively worked (2020: 2 649),  amounting to  39.4 judges per 100 000 inhabitants. At the 
end  of  2021,  there  were  703  holders  of  public  prosecutorial  function  (756  in  2020),  52 
appointed  public  prosecutors,  27  deputies  were  in  the  acting  status  and  in  11  prosecutors’ 
offices,  deputies  were  in  caretaker  capacity.  The  number  of  prosecutors  per  100  000 

23 

 
 
inhabitants  was  11  in  2021.  According  to  the  European  Commission  for  the  Efficiency  of 
Justice (CEPEJ), the European averages are 21 judges/12 prosecutors per 100,000 inhabitants. 

The HJC and the SPC continued to publish information on their websites about the process for 
evaluating  judges  and  prosecutors.  The  current  system  for  recruiting,  transferring  and 
promoting judges and prosecutors will need to be revised in line with the new legislation for 
implementing  the  constitutional  amendments.  In  particular,  it  will  be  essential  for  career 
advancement  to  be  based  solely  on  merit,  with  a  clear  performance  evaluation  mechanism 
based on objective criteria. 

The eligibility criteria for the judicial profession should be clearly defined in the new Laws on 
judges and prosecutors and the Law on the Judicial Academy, to cover all present categories, 
the  Academy  graduates  and  judicial  and  prosecutorial  assistants.  In  line  with  the  Venice 
Commission’s recommendation, the Academy should be effectively ‘protected from possible 
undue influence’. The independence and professionalism of the Academy remain essential to 
its becoming a sole nationwide entry point to the judicial profession.   

In line with the Law on planning, implementation of the new reform strategy for the judiciary 
should  make  it  possible  to  act  on  the  recommendations  from  the  World  Bank’s  functional 
reviews.  These  concern  effective  performance  appraisal,  budgetary  planning  and  execution, 
improvement of qualifications and skills through initial and continuous training.  

Quality of justice 

The  Judicial  Academy  continued  to  implement  its  multiannual  work  programme  for  2020-
2025.  The  Academy’s  capacity  and  internal  expertise  for  initial  and  continuous  training 
should be further improved, in particular for the training on European law, as presented by the 
Academy  in  the  2021  European  judicial  training  report.  The  total  budget  for  training 
initiatives  at  the  Judicial  Academy  in  2021  amounted  to  EUR  3  766  707.  The  Academy 
continues to be an observer in the European judicial training network.  

On case law harmonisation, in 2021 the court jurisprudence database was further expanded, 
with  inputs  from  the  Supreme  Court  of  Cassation  (SCC),  four  appellate  courts,  the 
Administrative Court and the Commercial Appellate court. It now contains 269 140 integral 
decisions,  32  413  anonymised  decisions,  122  legal  views,  33  case  law  bulletins  and  17 
descripts.  The  various  existing  databases  should  be  interlinked,  including  the  one  on  the 
judgments  of  the  European  Court  of  Human  Rights.  Structural  shortcomings,  including  a 
mismatch between the number of cases and staff should be addressed through implementation 
of judicial reform and human resources strategies. The role of the SCC in effectively orienting 
jurisprudence  has still to  be defined in  the judicial laws  for implementing the constitutional 
amendments.  

Serbia  still  lacks  a  comprehensive  court  case  (and  document)  management  system  that 
interlinks cases across Serbian courts and prosecutor’s offices. The work on case management 
system for courts officially started in September 2021 and is planned to be finalised in 2024. 
The case management system for prosecutor offices is planned to be finalised by the end of 
2022. The case management system for prison administration is operational as of December 
2021.  Further  work  is  still  required  to  ensure  that  all  systems  can  operate  smoothly. 
Legislative  changes  are  needed,  along  with  adequate  staffing  and  financial  resources,  and 
upgraded communication infrastructure.  

In July 2021, 28 new notaries were appointed, bringing the number of active notarial offices 
to 225 covering most courts’ jurisdictions. Four basic courts still have no notarial services in 
the  territories  they  cover.  The  notary  chamber  continued  its  efforts  for  better  services, 

24 

 
 
including improvements to the electronic documentation system, training and standardisation 
of practice.  

There was no progress in amending the Law on mediation to increase the use of alternative 
dispute  resolution  mechanisms  including  mediation,  based  on  quality  standards.  A 
sustainable  system  with  sufficient  mediators  would  be  an  effective  way  of  addressing  the 
steady  rise  in  the  number  of  first  instance  litigation  cases.  The  number  of  mediations 
compared to the number of pending civil court proceedings remains below 1 %. In 2021, there 
were  1  704  registered  mediators,  216  cases  (other  than  labour  disputes)  were  referred  to 
mediation by the courts and 44 were resolved. In addition, 3 labour dispute cases were also 
referred  to  mediation  (none  was  resolved).  Out  of  1  271  mediations  referred  by  the  courts 
(773 fewer than in 2020), 1 091 ended in a settlement, less than 10 %. The annual report of 
the SCC points to a rising number of litigation cases and identified space for an increased use 
of alternative dispute resolution mechanisms as an effective way of resolving disputes. 

Efficiency 

The court and prosecution network consists of 159 courts and 90 prosecutors’ offices (general 
and specific jurisdictions), operating in four instances (basic, higher, appellate and supreme), 
adding to complexity in terms of financing, procurement and court payments for the services. 
An  unequal  workload  among  judges  and  prosecutors  and  frequent  changes  in  the  court 
network negatively affect equal access to justice for the public. The increase in the number of 
cases continued in 2021, with 2 402 486 new cases (314 415 more than in 2020), the highest 
number being in basic and misdemeanour courts. Private individuals have filed over 200 000 
new cases against banks, claiming undue bank loan processing fees. In 2021, 2 415 672 cases 
were resolved, 401 843 cases more than in 2020, in spite of 353 vacant judicial positions. The 
clearance rate fell to 100.55 % compared to 107.81 % in 2020. At the end of 2021, there were 
1 498 237 pending cases. The average duration of courts’ proceedings in 2021 was 226 days, 
compared to 274 in 2020. The number of cases dismissed due to expiration of statutory time 
significantly increased in commercial cases to 4 379. From 2017 to 2020, the number of cases 
varied between 4 and 33. 

There are 9 882 positions for court staff (only 8 763 filled) while 1 751 staff were engaged on 
a temporary  basis, due to increased  workload. The number of the state  employees, i.e. staff 
whose work is not linked to processing of cases, fell slightly (2021:2 831; 2020:2 938) but it 
is  still  high  compared  to  the  total  number  of  staff,  according  to  European  average  (CEPEJ 
report).    

Implementation of the unified backlog reduction programme (for 2016-2020) continued under 
the supervision of the SCC, with declining trends in the overall number of pending backlog 
cases, including enforcement cases. In 2021, more such cases were resolved (375 567, out of 
which 36 884 were enforcement cases) compared to 2020 (353 563). At the end of 2021, there 
were some 137  637 pending backlog cases, with  the highest  number in  basic courts in  civil 
matters  (35  128).  Most  of  the  backlog  cases  older  than  10  years  (39  033)  are  in  the  basic 
courts. There is a large number of these cases pending in the higher courts (1 954) owing to 
the legislative changes concerning jurisdiction in civil matters. There is a high number of old 
cases  in  the  Administrative  Court  (4  368).  The  number  of  cases  filed  over  violations  of  the 
right to a trial within a reasonable time is 40 607. In 20 930 new cases the parties requested 
compensation for damages resulting from the undue prolongation of proceedings.  

A high number of cases is pending before the Constitutional Court (CC). In 2021, the CC 
worked  on  18  198  cases,  mostly  (17  924)  constitutional  appeals  and  209  cases  relating  to 
normative  control  and  other  powers  of  the  Court.  The  CC  resolved  13  316  constitutional 
complaints  (rejecting  over  58 %  of  them  for  procedural  reasons)  and  postponed  27  280 

25 

 
 
unresolved cases to 2022. Additional protection granted by the Law on the protection of the 
right to a trial within a reasonable time did not reduce the number of constitutional complaints 
or the processing time. Working with 13 out of 15 judges, in 2021, the CC solved 1 147 cases 
in merits, an increase by a 11.25 % compared to 2020. A number of requests are pending for 
assessment of the constitutionality of laws and other general acts and their compliance with 
international  documents  which  is  the  core  mandate  of  the  CC,  who  has  not  established  a 
practice of acting on own initiatives in this area. The CC should improve public outreach to 
explain its work, ensure the transparency of its sessions in practice and provide easier access 
to  judgements.  Overall,  and  as  underlined  by  the  Venice  Commission,  there  is  a  need  to 
reform  the  Constitutional  Court  in  particular  with  regard  to  the  introduction  of  a  qualified 
majority  with  a deadlock mechanism for the election of some of the judges of this court by 
Parliament. 

Significant differences in workload remain between the courts across the country, with the 
Belgrade  courts  bearing  the  highest  overall  workload.  The  Ministry  of  Justice  introduced  a 
case-weighting formula in all basic, higher and commercial courts in January 2022. Lengthy 
proceedings  and  the  slow  pace  of  processing  indemnity  claims  continue  to  hamper  the 
efficiency  and  quality  of  justice  and  people’s  access  to  justice.  The  Law  on  free  legal  aid 
came into force in October 2019 (See procedural rights). 

As to enforcement cases, the transfer of additional types of enforcement cases from courts to 
231 public enforcement agents and 32 deputy agents continued. The e-auction platform is in 
use  to  increase  access  to  information  and  improve  transparency.  In  2021,  255  792  new 
enforcement  cases were received, 514 833 were resolved and 66 610 are pending. The total 
number  of  backlog  enforcement  cases  at  the  end  of  2021  was  high  at  36  845,  with  32  519 
older than 10 years.  Implementing the new HR strategy for the judiciary should  provide the 
courts with the additional human resources that are required for better protection of individual 
debtors and stronger court control over enforcement. 

Domestic processing of war crimes 

Serbia  needs  to  cooperate  fully  with  the  International  Residual  Mechanism  for  Criminal 
Tribunals (IRMCT). This means fully accepting and implementing its rulings and decisions. 
Serbia  continues  to  publicly  challenge  the  judgments  of  the  International  Criminal  Tribunal 
for the former Yugoslavia (ICTY), including at  the  highest  levels.  Cooperation between the 
IRMCT  Office  of  the  Prosecutor  and  the  Serbian  Office  of  the  War  Crimes  Prosecutor 
(OWCP)  continued.  Serbia’s  state  of  non-cooperation  in  relation  to  the  arrest  of  people 
indicted  for  contempt  of  court  had  not  been  resolved  by  the  time  the  IRMCT  assumed  the 
jurisdiction, rights and obligations of the ICTY in 2017. After the IRMCT eventually decided 
that  the  contempt  of  court  case  has  to  be  heard  by  the  IRMCT  itself,  it  requested  Serbia  to 
execute  the  arrest  warrants  and  related  transfer  orders  in  December  2020.  This  was  not  yet 
done. 

Regarding  regional  co-operation  on  the  prosecution  of  war  crimes,  the  Serbian  authorities 
undertook steps towards transferring the criminal prosecution case against a citizen of Bosnia 
and Herzegovina, who had previously been arrested at the border between the two countries 
and  was  subsequently  indicted  in  October  2021  but  later  released.  In  addition,  the  OWCP 
transferred 24 investigative files to the Prosecutor’s Office of Bosnia and Herzegovina. Two 
other citizens of Bosnia and Herzegovina, arrested in Serbia and accused of war crimes, are 
still  in  custody  in  Serbia  and  the  proceedings  against  them  are  underway  before  the  Higher 
Court.  

The former 2016 national strategy for the investigation and prosecution of war crimes expired 
in December 2020. Its rate of implementation was very weak. A new national strategy for the 

26 

 
 
to 

to  honour  commitments 

prosecution of war crimes for the period of 2021-2026 was adopted in October 2021 and its 
first implementation report was published in June 2022. Serbia has a case backlog of 1 731 
pre-investigative  cases.  The  new  national  strategy  for  the  prosecution  of  war  crimes  is  an 
opportunity 
impunity  and  promoting 
reconciliation, by increasing investigations and indictments in high-level cases and strengthen 
regional co-operation. Moreover, the strategy needs to ensure that specific decisions in other 
fields,  notably  on  granting  citizenship,  do  not  have  the  effect  of  fostering  impunity.  A  new 
prosecutorial  strategy  is  required  with  clear  targets  and  indicators  for  addressing  the 
significant  backlog  of  cases.  A  number  of  Serbian  political  parties  and  figures,  including  at 
ministerial  level,  continued  to  provide  support  to  and  public  space  for  convicted  war 
criminals. Convicted war criminals continue to spread hate speech in the public space. Certain 
politicians continue to deny the Srebrenica genocide without repercussions. 

the  fight  against 

The OWCP’s capacity  was strengthened in  early 2021.  It now operates with 11 deputies, of 
whom 9 were appointed and 2 assigned. 

The  War  Crimes  Department  (WCD)  of  the  Higher  Court  has  7  judges,  of  whom  6  are 
assigned  to  2  trial  panels,  and  2  are  assigned  as  pre-trial  judges.  The  WCD  of  the  Court  of 
Appeals operates with 5 judges assigned to 1 trial panel.  

In 2021, the OWCP filed 7 indictments against 9 defendants of whom 4 were transferred from 
Bosnia and Herzegovina. Two of the people indicted held a ‘high-ranking’ position at the time 
of the offence (former general and commander of corps), involving thousands of victims. One 
of the defendants has also been indicted by the Court of Bosnia and Herzegovina for the more 
serious offence of crimes against humanity. In 2021, 2 judgments involved sexual violence. In 
June  2022,  the  Higher  Court  of  Belgrade  confirmed  the  indictment  against  four  Croatian 
military pilots for alleged crimes committed against ethnic Serbs in Bosnia and Herzegovina 
in  1995.  The  indictment  is  final.  The  court  is  currently  reviewing  the  motion  from  the 
prosecution to initiate a trial in absentia. International legal assistance did not take place. 

In 2021, the Higher Court rendered 5 judgments, convicting 6 defendants and sentencing them 
to  prison  terms  ranging  from  2  to  15  years,  while  the  Court  of  Appeals  rendered  6  final 
decisions convicting 6 defendants and sentencing them to prison terms from 2 to 15 years. No 
defendants were acquitted. 

In 2022, the trial panels’ of the Higher Court’s WCD  saw a change in its composition. One 
judge  retired  in  February  2022,  while  the  other  judge  and  the  president  of  the  WCD  was 
substituted  due  to  ongoing  health  issues.  This  affected  the  processing  of  war  crimes  cases 
before  the  Higher  Court.  To  date,  the  judges  have  applied  relevant  legislation  to  prevent 
significant delays in the proceedings.  

As of 31 December 2021, trials were ongoing in 18 cases before the Higher Court (16 cases) 
and the Court of Appeals (2 cases) against 38 defendants.  

Overall,  Serbia  needs  to  show  a  genuine  commitment  to  investigating  and  adjudicating  war 
crimes  cases.  This  is  a  requirement  to  effectively  deal  with  the  legacies  of  the  past  and  for 
fostering  reconciliation.  Serbia  should  prioritise  complex  cases  and  those  involving  high-
ranking  officials  and  provide  a  clear  legal  approach  to  resolving  the  issue  of  command 
responsibility.  Serbia  is  expected  to  engage  in  meaningful  regional  cooperation  and  good 
neighbourly relations in the handling of war crimes. 

According to the relevant data of the International Committee of the Red Cross (ICRC), 9 876 
people were still missing as a result of the conflicts in the region by July 2022. Of these, 6 302 
cases are related to  the conflict  in  Bosnia and Herzegovina, 1  953  to  the conflict  in  Croatia 
and 1 621 to the conflict in Kosovo. In 2021, 88 cases were resolved, of which 44 concerned 

27 

 
 
the  conflict  in  Bosnia  and  Herzegovina,  23  concerned  the  conflict  in  Croatia  and  21  the 
conflict in Kosovo.  Serbia participated in and reported on the work of the working group on 
missing persons (under the London Framework Plan Agreement). Serbia officially identified 
the remains of 10 persons found in Serbia, 1 from Croatia, 4 from Kosovo and 7 from Bosnia 
and Herzegovina, thanks to cooperation  with Bosnia and Herzegovina, Croatia and Kosovo. 
In  2021,  excavation  works  allowed  the  identification  of  the  remains  of  nine  victims  in 
Kizevak, Raska municipality, and three in Sid. The remains of nine victims from the conflict 
in  Kosovo  exhumed  in  Kizevak  were  handed  over  to  their  families  in  2021.  Three  sets  of 
human  remains  were  repatriated  from  Kosovo  to  Serbia.  The  Belgrade  delegation  to  the 
ICRC-chaired Working Group on the Missing Persons remained engaged in 2021. There was 
no session of the Working Group after April 2021 as the Pristina delegation refused to hold 
new meetings until the Belgrade delegation changed its head. Nonetheless,  sub-levels of the 
mechanism (Sub-Working Group on Forensic Issues and Analytical Team) continued to work 
on concrete cases and sites and held 13 meetings since April 2021 (of which, 8 in 2021 and 5 
in  2022).  The  Belgrade  delegation  to  the  Working  Group  remained  committed  to  assessing 
several  locations  on  the  territory  of  Serbia  indicated  by  Pristina  as  potential  gravesites  of 
victims from the conflict in Kosovo. In May 2022, Serbian authorities conducted excavations 
in  Stavalj  in  the  presence  of  the  Kosovo  Commission  on  Missing  Persons,  in  line  with  the 
commitments  made  in  the  framework  of  the  ICRC-chaired  Working  Group.  No  human 
remains were found.  

Fight against corruption  

Serbia has some level of preparation in the fight against corruption. Overall, some progress 
has  been  made  during  the  reporting  period,  including  on  last  year’s  recommendations.  The 
recommendation on prevention of corruption has been further implemented. In March 2022, 
the  Council  of  Europe’s  Group  of  States  against  Corruption  (GRECO)  concluded  that  the 
adoption of amendments to the Law on prevention of corruption had addressed the previously 
identified shortcomings and sufficiently strengthened the framework aimed at preventing and 
combating conflicts of interest for members of parliament, judges and prosecutors. Serbia has 
still to prepare a new anti-corruption strategy, accompanied by an action plan, and to establish 
an effective coordination mechanism to operationalise prevention and repression policy goals 
and  thoroughly  address  corruption.  The  number  of  indictments  and  the  number  of  first 
instance  convictions  for  high-level  corruption  cases  has  slightly  increased.  Serbia  should 
further  intensify  its  efforts  and  step  up  the  prevention  and  prosecution  of  corruption  and  in 
particular  increase  the  final  confiscation  of  assets  linked  to  these  cases.  Those  sectors  most 
susceptible vulnerable to corruption require targeted risk assessments and dedicated action.In 
the coming year, Serbia should in particular:  

  further improve its track record on investigations, prosecutions and final court decisions in 
high-level corruption cases, including the seizure and confiscation of criminal assets;  

  address all GRECO recommendations from the Fourth and Fifth evaluation rounds;  

  prepare,  adopt  and  start  implementing  a  new  anti-corruption  strategy  underpinned  by  a 

credible and realistic action plan as well as an effective coordination mechanism. 

Regional cooperation initiatives and events, including EU funded programmes, support good 
neighbourly  relations  and  reconciliation.  Serbia  has  been  invited  by  the  European 
Commission  to  participate  in  the  IPA  2019  multi-country  rule  of  law  programme  aimed  at 
‘supporting a more effective administration of justice in corruption and organised crime cases 
in  the  Western  Balkans  through  trial  monitoring’,  implemented  by  the  OSCE  in  which  all 

28 

 
 
other  Western  Balkan  partners  participate.  Serbia  should  join  this  programme.  This  would 
send an important signal concerning its commitment to the rule of law. 

Track record  

Serbia  has  introduced  changes  to  improve  the  measurement  of  its  track  record  on 
investigations, prosecution and final convictions in high-level corruption cases, including the 
seizure and confiscation of criminal assets. 

As  regards  high-level  corruption,  the  number  of  indictments  and  final  convictions  in  2021 
went slightly up compared to 2020. 

Based on indictments from the Prosecutor’s Office for Organised Crime, the courts rendered 
first instance judgements against 10 individuals in 2021 (compared to 22 individuals in 2020). 
There  were  final  convictions  against  19  individuals  (compared  to  11  persons  in  2020).  The 
Prosecutor’s  Office  for  Organised  Crime  ordered  investigations  against  22  individuals,  and 
issued 22 indictments (compared to 19 in 2020, 20 in 2019, 41 in 2018 and 50 in 2017). As in 
2020,  no  cases  resulted  in  a  final  confiscation  of  assets  (there  were  3  such  cases  in  2019). 
Serbia still needs to show a convincing track record of confiscating assets in corruption cases.  

In 2021, the special departments for combatting corruption in the higher prosecutors’ offices 
received  3  035  criminal  complaints  (compared  to  2  936  in  2020).  They  ordered  270 
investigations, and initiated parallel financial investigations against 67 individuals (compared 
to  23  in  2020).  A  total  of  540  indictments  were  issued  (470  in  2020).  The  courts  rendered 
judgments  against  271  individuals  at  first  instance  based  on  indictments  from  these 
departments  (230  in  2020).  There  were  final  convictions  against  255  individuals  (195 
individuals in 2020).  

In 2021 prosecutions of general jurisdiction (not specialised departments) issued 29 orders to 
investigate in relation to corruption and economic crime offences (22 in 2020), and filed less 
indictments than in 2020 due to the gradual shift of cases to the specialised departments (63 
indictments in 2021 in comparison to 136 in 2020). The courts convicted 132 individuals at 
first instance, and 80 individuals at final instance. A final confiscation of assets took place in 
one case (compared to 3 in 2020).  

Regarding  violations  of  the  conflict  of  interest  provisions  in  the  Law  on  prevention  of 
corruption,  the  Agency  for  the  Prevention  of  Corruption  submitted  no  requests  to  initiate 
misdemeanour proceedings in 2021 (2020: 2; 2019:10). The Agency initiated 656 procedures 
to determine violations of the Law (2020: 439 and 2019: 310). In 2020, misdemeanour courts 
issued  first-instance  decisions  on  the  responsibility  of  11  public  officials  (2019:  27). 
Parliament’s adoption of the authentic interpretation of the Law on prevention of corruption in 
February  2021  restricted  the  scope  of  the  officials  that  are  obliged  to  comply  with  the 
provisions  of  this  law.  As  a  consequence,  129  initiated  procedures  concerning  conflicts  of 
interest were either suspended or it was decided that the grounds for the procedure no longer 
applied.  

The Agency submitted 134 requests for initiation of misdemeanour proceedings relating to a 
failure  to  promptly  submit  asset  declarations  in  2021,  which  is  far  higher  than  in  previous 
years (2020: 29). Based on the Agency’s work in previous years, misdemeanour courts issued 
52 final decisions in 2021 (80 in 2020). The Agency filed 7 criminal charges in 2021 (2020: 
13) due to reasonable suspicion that a public official had not reported assets or had given false 
information about assets intending to conceal the facts. Based on the Agency’s previous work, 
8 judgements were issued (2019: 19).  

29 

 
 
During  2021,  the  Agency  issued  23  decisions  related  to  electoral  campaigns,  based  on 
suspicion of violation of the provisions of the law, and submitted one report to the prosecution 
on suspicion of a criminal offence.  

In  2022,  the  Agency  looked  into  the  reports  on  the  campaign  for  a  referendum  on 
constitutional  changes,  and  also  the  reports  on  election  campaign  expenses  for  the 
presidential,  parliamentary  and  local  elections.  Serbia  should  implement  all  ODIHR 
recommendations from their Final Report of the Election Observation Mission, from August 
2022,  amend  the  legislation  and  improve  the  capacity  of  the  Agency  to  perform  controls  in 
relation to use of public resources during the electoral campaigns.  

The  Agency  submitted  209  requests  to  initiate  misdemeanour  proceedings  for  violations  of 
the Law on the financing of political activities (2020: 255). Of these, 144 were for the failure 
to submit reports on campaign expenses in 2020. Based on final judgments, 13 decisions were 
made  on  the  loss  of  the  right  to  obtain  funds  from  public  sources  intended  for  financing 
regular work in the coming year (2020: 9).  

With regard to access to information, in 2021, there was a 34.4 % increase in the reports to 
the Commissioner for information of public importance from  national level institutions, and 
21.6 %  from  local  level  institutions.  The  Commissioner  adopted  1  052  decisions  based  on 
complaints  made  by  people  wanting  to  access  public  information  (1  086  in  2020)  and 
requested public institutions to provide such information. The institutions did not react in 262 
cases,  which  means  that  the  rate  of  execution  of  the  Commissioner’s  decisions  was  75 % 
(74 % in 2020). The Commissioner established that 63.5 % (2020: 84 %) of complaints from 
the public – most of them concerning ‘administrative silence’ – were well-founded, meaning 
that  the  information  requested  by  citizens  should  have  been  provided  by  the  authorities 
according to the Law on access to information of public importance. In 27.8 % (2020: 38 %) 
of  well-founded  cases,  the  authorities  reported  that  they  acted  upon  the  Commissioner’s 
request  to  provide  the information  to  the complainants  even before a decision was made on 
the appeal. Administrative enforcement of the decisions taken by the Commissioner was not 
ensured during 2021. As in  the previous  years, the administrative inspection did  not  submit 
any  request  to  the  misdemeanour  courts  to  initiate  proceeding  for  the  non-execution  of  the 
Commissioner’s decisions.  

In  2021,  courts  in  Serbia  received  99  (2020:  117)  new  cases  based  on  the  Law  on  whistle-
blower  protection.  A  total  of  106  cases  related  to  protection  were  resolved  (2020:  128). 
Despite the urgency of these cases, 13 cases remained pending at the end of 2021 in which the 
proceedings had not been completed even after three years. Whistle-blower reports, such as in 
the case of Krušik have still not been investigated in accordance with the Law. Serbia needs to 
step up its  protection of  whistle-blowers and investigate allegations in  high-level corruption 
cases, in order to strengthen trust in the institutions.  

lacks  clarity  on  selection  procedures  and 

The high number of exemptions from the Law on public procurement poses a serious risk of 
corruption  in  public  procurement.  The  Law  on  special  procedures  for  linear  infrastructure 
projects 
transparency.  Inter-governmental 
agreements are not  always in line with the principles of equal treatment,  non-discrimination 
and  transparency  or  competition  rules  (see  Chapter  5  –  Public  procurement).  The  public 
procurement portal enables users to monitor all ongoing public procurement procedures. The 
number  of  contracting  authorities  subject  to  monitoring  increased  from  78  (2019)  to  258 
(2021). 

Disclosing all information on COVID-related procurements would enhance transparency and 
foster trust.  

30 

 
 
Institutional framework  

Prevention measures  

As regards GRECO recommendations, in follow-up to the November 2020 compliance report 
on  Serbia’s  Fourth  Evaluation  Round  concerning  members  of  parliament,  judges  and 
prosecutors,  GRECO  requested  Serbia  to  report  on  progress  by  31  October  2021.  Serbia 
submitted  this  report  in  a  timely  manner.  It  contains  a  detailed  description  of  a  number  of 
steps  taken  to  meet  the  majority  of  the  recommendations,  including  those  concerning  the 
constitutional amendments.  

In  March  2022,  Serbia  authorised  publication  of  the  second  interim  compliance  report 
assessing  Serbia´s  level  of  compliance,  concluding  that  8  recommendations  have  been 
implemented  satisfactorily  and  5  remain  only  partly  implemented.  No  recommendations  are 
considered not implemented, and GRECO concluded that Serbia’s performance in this field is 
no longer ‘globally unsatisfactory’. GRECO invited Serbia to report on the fulfilment of the 
remaining 5 recommendations by March 2023.   

During 2021, Serbia was also subject to a GRECO evaluation  as part of the fifth evaluation 
round,  which  tackles  preventing  corruption  and  promoting  integrity  in  central  government 
(top executive functions) and law  enforcement  agencies. The  evaluation  report was  adopted 
during the GRECO Plenary in March 2022, and it was made public in July 2022. The report 
calls  for  further  measures  to  prevent  corruption  in  Serbia  in  respect  of  persons  with  top 
executive  functions,  including  the  President,  ministers,  assistant  ministers,  state  secretaries, 
chiefs of cabinet and political advisers, as well as members of the Serbian Police. In view of 
the  findings  of  the  report,  GRECO  issued  24  recommendations  and  invited  the  Serbian 
authorities to submit a report on the measures taken to implement the recommendations by 30 
September 2023. The measures will be assessed by GRECO through its specific compliance 
procedure. 

Amendments to the Law on corruption prevention were adopted in September 2021, based on 
GRECO’s  recommendations  from  the  fourth  evaluation  round.  GRECO  welcomed  the 
amendments and the relevant manuals and guidelines aimed at public officials, and found that 
they  are  likely  to  strengthen  the  framework  aimed  at  preventing  and  combating  conflicts  of 
interest  among  members  of  parliament,  judges  and  prosecutors.  It  concluded  that  this 
recommendation has been dealt with in a satisfactory manner.  

In December 2021, the Agency for the Prevention of Corruption had 91 staff members out of 
a  planned  163  (5  fewer  than  in  2020).  The  Agency’s  board,  which  decides  on  complaints 
against  first-instance  decisions  by  the  Agency,  among  other  things,  held  10  sessions,  and 
decided on 82 complaints. The administrative court rendered 23 judgments on procedures for 
annulling  the  board’s  decisions.  In  December  2021,  Parliament  discussed  and  formally 
accepted Agency’s report for 2020, and in March 2022, the Agency submitted the report for 
2021  to  Parliament  for  adoption,  along  with  the  report  on  the  implementation  of  the  action 
plan  for  the  Chapter  23  sub-chapter  on  the  fight  against  corruption.  Discussions  on  these 
reports have yet to take place within the relevant parliamentary committees. There is a need 
for  strong  political  will  to  implement  the  Agency’s  mandate  in  full  and  to  gain  increased 
public  trust  in  the  institutions  preventing  corruption.  There  is  further  need  to  increase  the 
resources  of  the  Agency  to  effectively  implement  the  recommendations  of  GRECO’s  fifth 
evaluation round.   

With  regard  to  sectors  particularly  vulnerable  to  corruption,  Serbia  adopted  the  operational 
plan  for  the  prevention  of  corruption  in  areas  of  special  risk  in  September  2021.  The  plan 
covers  public  procurement,  police,  customs,  local  self-government  and  the  privatisation 

31 

 
 
process.  Its  implementation  is  coordinated  through  a  coordination  body,  established  by  a 
government decision in November 2021, and chaired by the Prime Minister. 

In  addition, in  October  2021, the Ministry of Education adopted  an operational  plan for  the 
fight against corruption in the field of education. In December 2021, the Ministry of Health 
adopted an operational plan for the fight against corruption in the health sector, with timelines 
for  2022.  Key  goals  include  corruption  risk  analyses  of  the  legislation  in  the  health  sector 
(Laws on health protection, health insurance, medicines and medical devices and chambers of 
health workers) with recommendations, and strengthening human resources of the Ministry of 
Health's inspection sector. An operational plan for the fight against corruption in the sector of 
taxation  was  also  adopted  in  December  2021,  envisaging  a  one-year  timeline  for 
implementation. Serbia should closely monitor the implementation and impact of these plans 
and  their  alignment  with  the  implementation  of  the  operational  plan  for  prevention  of 
corruption.  Serbia  is  yet  to  adopt  an  overarching  national  strategy  and  action  plan,  which 
besides prevention, should also tackle repression of corruption in a systemic manner.  

There  have  been  no  changes  to  the  Law  on  special  procedures  for  linear  infrastructure 
projects,  which  allows  projects  of  ‘strategic  importance’  to  be  exempted  from  public 
procurement rules.  

Out  of  the  107  local  self-governments  that  adopted  anti-corruption  plans  (2020:  106),  24 
(2020:  22)  established  a  body  to  monitor  their  implementation,  mostly  in  line  with  the 
Agency’s  model.  Under  the  operational  plan  for  the  prevention  of  corruption  in  areas  of 
special  risk  an  analysis  of  the  implementation  of  anticorruption  mechanisms  in  local  self-
governments assessment is due by the end of 2022.   

The  Anti-Corruption  Council,  in  its  advisory  role  to  the  government,  remained  active  in 
exposing  and  analysing  cases  of  systemic  corruption.  It  remains  of  serious  concern  that  the 
authorities  still  have  not  established  a  more  constructive  relationship  with  the  Council.  The 
Council is also still not systematically consulted on draft legislation. The government failed to 
set up a procedure to consult the Council, although this was planned since 2016. The Council 
issued informative reports, including one on the news agency ‘Tanjug’, on the privatisation of 
the ‘Jaroslav Cherni’ institute and on local self-government. The relevant prosecutor’s office 
met with  the Anti-Corruption Council in  March  2022 to  improve the implementation  of the 
recommendations listed in the reports. No steps have been taken to additionally strengthen the 
Anti-Corruption Council’s budgetary and staff capacity. Serbia should implement the GRECO 
recommendation about the Council from the fifth round of evaluations.   

Law enforcement  

Following  an  assessment  of  needs,  the  special  departments  for  combating  corruption  in  the 
Higher  Prosecutors’  Offices  in  Kraljevo,  Niš,  Novi  Sad  and  Belgrade  have  increased  their 
staffing and now have 58 assigned deputy public prosecutors (44 in 2020; 45 in 2019). The 
offices should have one financial forensic expert in each of the four special departments, but 
the positions in Novi Sad, Niš and Kraljevo remain vacant.  

The  Prosecutor’s  Office  for  Organised  Crime,  which  has  jurisdiction  over  high-level 
corruption cases, remains understaffed (see Chapter 24 – Justice, freedom and security). It has 
yet  to  finalise  activities  for  implementing  of  the  Rulebook  on  internal  organisation  and 
systematisation  of  work  positions  that  entered  into  force  in  May  2021,  establishing  new 
organisational units, and increasing the number of employees. The Higher Court in Belgrade 
dealing with corruption also remains understaffed. Furthermore, only one of the two financial 
forensic  experts  foreseen  in  the  Prosecutor's  Office  for  Organised  Crime  is  currently  being 
employed. 

32 

 
 
In  2021,  two  task  forces  were  investigating  corruption  offences  (3  in  2020).  Of  the  task 
forces,  composed  of  representatives  of  the  relevant  state  authorities,  one  was  in  the  Special 
Department in Belgrade and the other in the Special Department in Niš. 

Greater transparency is needed in the anti-corruption work of the prosecution and courts and 
the Public Prosecutor’s Office should step up its monitoring of the reasons for the dismissal of 
criminal charges or lengthy investigation of corruption offences.  

The State Audit  Institution continued to audit statements from  beneficiaries of public funds. 
By checking arrangements for ensuring the proper functioning of internal audit, it found that 
out of a total of 95 auditees required to establish internal audit procedures, 43 auditees (45.36 
%) had not done so, signalling a positive trend (45.45 % in 2020, 57 % in 2019). 

Legal framework  

Serbia is a party to all international anti-corruption conventions. The legal framework for the 
fight against corruption is broadly in place.  

Serbia adopted the law on referendum and people’s initiative in November 2021 and amended 
it in December 2021, providing new competences to the Agency for Prevention of Corruption 
in  monitoring  the  financial  reports  of  the  referendum  campaign.  The  Agency  issued  the 
rulebook  on  the  content  and  method  of  submission  of  financial  reports  on  referendum 
campaign,  and  the  relevant  software,  which  enables  submission  of  reports  on  referendum 
campaign costs, was adjusted and is operational. 

Serbia adopted the Law on the financing of political activities in February 2022. While the 
Law  has  been  aligned  with  a  number  of  ODIHR  recommendations,  Serbia  needs  to  further 
align the law with the ODIHR and GRECO recommendations, in line with the Final Report of 
the  Election  Observation  Mission,  from  August  2022.  This  includes  explicit  regulation  of 
third  party  campaigning,  provisions  on  effective,  proportionate  and  dissuasive  sanctions  for 
violation and inadequate reporting. The Criminal Code needs to  be brought  in  line with  the 
Law  on  financing  of  political  activities.  Serbia  should  continue  to  take  further  measures  to 
ensure that citizens are able to recognise paid political advertisement or communication and 
the related costs. Amendments were also made to the law on prevention of corruption aiming 
at the alignment to the new Law on financing of political activities. The Law on prevention of 
corruption  now  further  specifies  which  public  officials  are  excluded  from  the  duty  of 
unambiguous  presentation  between  their  public  function  and  representing  a  political  entity 
while acting in public. This obligation no longer applies to directly elected officials such as 
members  of  the  national  assembly,  members  of  the  provincial  parliaments  and  members  of 
local assemblies.  

The  Agency  adopted  a  rulebook  on  records  and  reports  on  political  subjects  and  plans  for 
inspecting reports on: election campaign costs relating to general and local elections (both in 
February  2022);  reports  on  election  campaign  costs  for  presidential  elections;  and  annual 
financial  reports  on  political  subjects  (in  March  2022).  The  Agency  also  organised  relevant 
trainings on the content and obligations relating to the new laws.  

The Agency needs to prepare reports on the monitoring of the electoral campaign in 2022 in 
line with the new law.  

Serbia adopted amendments to the Law on access to information of public importance in 
November 2021, aligning further with some of the international standards in this area. Serbia 
needs  to  monitor  its  implementation  to  ensure  that  it  effectively  addresses  the  previously 
identified  issues  of  ‘administrative  silence’  to  citizens’  requests  and  lack  of  enforcement  of 
the decisions of the Commissioner for information of public importance.  

33 

 
 
The  legal  framework  on  whistle-blower  protection  has  yet  to  be  aligned  with  the  new  EU 
acquis.  

With  respect  to  transparency  and  integrity  within  the  public  administration,  there  has 
been no significant reduction in the excessive number of acting senior manager posts. In May 
2022,  51  %  of  filled  positions  (62  %  in  June  2021)  were  occupied  by  people  in  an  acting 
capacity. In addition, non-civil servants continued to be appointed on an acting basis after the 
legal deadline of July 2019, in breach of the Law on civil servants. The similar issue of acting 
directors in state-owned enterprises – 22 out of 34 – has yet to be addressed.  

The impact  of the law on the origin  of assets adopted in  2020 and amended in  2021 on the 
effectiveness of the check of assets of natural persons, against declared income, is  yet to be 
understood.  Its  implementation  needs  to  be  non-discriminatory  and  not  vulnerable  to 
corruption.  

Strategic framework  

Serbia  still  has  no  anti-corruption  strategy.  There  is  a  clear  need  for  an  anti-corruption 
strategy  encompassing  prevention  and  repression  of  corruption,  accompanied  by  a  credible 
action plan in addition to the relevant section in the Chapter 23 action plan.  

The Agency for Prevention of Corruption submitted the report on the implementation of the 
anti-corruption part of the action plan for chapter 23, and submitted it to Parliament in March 
2022. According to this report, in 2021 Serbia completed 60 % of actions (2020: 42 %), which 
either had to be completed in 2021 or were ongoing actions. 

Fundamental rights 

(violence  against  women)  and  April  2022 

Serbia’s legislative and institutional framework for upholding fundamental rights is broadly in 
place. This framework needs to be consistently and efficiently implemented.  Serbia adopted 
new strategies on anti-discrimination and Roma inclusion, as well as action plans on gender 
equality  and  Roma  inclusion.  Action  plans,  and  related  funding,  in  other  areas  were  due  in 
July  2021 
(anti-discrimination;  de-
institutionalisation) and are now overdue. More efforts are needed to comply with the Law on 
the planning system, which requires that action plans are adopted within three months of the 
adoption  of  related  strategies.  Serbia  has  yet  to  recruit  new  staff  to  the  Offices  of  the 
Ombudsman  and  of  the  Commissioner  for  Personal  Data  Protection.  Serbia  extradited  a 
Bahraini citizen on 24 January 2022, despite the interim measure imposed on 21 January by 
the European Court of Human Rights to refrain from extradition until after 25 February. This 
is contrary to Serbia’s obligation as a party to the European Convention on Human Rights. In 
September 2022, Europride was hosted for a first time in the Western Balkans, in Belgrade.  
The Europride route was banned, and the holding of the march was uncertain until the very 
last  moment.  The  authorities  claimed  safety  concerns  related  to  threats  by  extreme  right 
groups as the basis for their decision. An anti-Europride and, anti-Western demonstration was 
also banned. Finally a march, via a shorter route took place on 17 September 2022, without 
major incidents. A high number of law enforcement officers protected it, nevertheless, some 
instances of violence against the participants were reported. The period prior to the march was 
marked  by  legal  and  political  uncertainty.  The  communication  of  the  authorities  was 
contradictory, with high level announcements that the march would be banned altogether and 
a subsequent ban issued by the Ministry of the Interior on the route of the march. While the 
authorities  maintained  contacts  with  the  organisers  to  find  a  solution,  they  remained  non-
committal about the parade going ahead with an official permit.  . 

Serbia needs to address  the recommendations of  the 2021 report. In particular, Serbia needs 
to:  

34 

 
 
  strengthen  human  rights  institutions  by  allocating  the  necessary  financial  and  human 
resources  and  by  putting  in  place  procedures  to  ensure  compliance  with  the  European 
Court of Human Rights’ measures, including interim measures;  

  start implementing the strategies on anti-discrimination, gender equality, violence against 
women and de-institutionalisation; actively counter hate-motivated crimes and establish a 
track record of investigation and convictions;  

  demonstrate, through better data collection, tangible improvements across the country in 
the  effective  exercise  of  the  rights  of  individuals  belonging  to  national  minorities, 
including reference to the targets set by the Poznan Declaration on Roma inclusion and by 
the future new action plan relating to national minorities.  

Serbia has ratified the main international human rights instruments but has not yet ratified 
the  International  Convention  on  the  Protection  of  the  Rights  of  All  Migrant  Workers  and 
Members  of  their  Families,  which  it  signed  in  2004.  Serbia’s  Council  for  monitoring 
implementation  of  the  recommendations  of  the  UN  Human  Rights  Mechanisms  changed  its 
rulebook to allow for the allocation of two permanent seats for CSOs. In March 2022, the UN 
Committee on Economic, Social and Cultural Rights published its concluding observations on 
the  third  periodic  report  from  Serbia.  Among  other  topics,  it  expressed  concern  about  the 
‘narrow scope of labour inspections carried out by the Labour Inspectorate, which has led to 
situations such as the case of workers at the Linglong Tyre Plant, where violations of labour 
regulations were not detected despite a number of labour inspections being carried out.’ Still 
regarding  these  workers,  the  UN  Special  Rapporteur  on  trafficking  in  persons,  the  Special 
Rapporteur  on  the  human  rights  of  migrants  and  the  Special  Rapporteur  on  contemporary 
forms of slavery urged Serbia to address allegations of human rights abuse (See also Chapter 
19 – Social policy and employment and Chapter 24 – Justice, freedom and security). 

From  June  2021  to  June  2022,  the  European  Court  of  Human  Rights  delivered  19 
judgments concerning Serbia and found that it violated the European Convention on Human 
Rights in 9 cases. This notably included violations of the right to a fair trial, the protection of 
property, the right to respect for private and family life, the right to liberty and security, and 
the  general  prohibition  on  discrimination.  There  were  3 091  new  applications  allocated  to  a 
decision body, bringing  the total number of pending applications to 1 962 on 15 June 2022. 
Currently,  there  are  58  cases  under  enhanced  supervision  by  the  Committee  of  Ministers  of 
the Council of Europe.  The  procedure  for executing the decisions of the European Court of 
Human Rights, including the role of Serbia’s Government Agent before the Court, needs to be 
regulated.  Work  is  ongoing  to  implement  the  mechanism  providing  individual  redress  to 
parents  in  cases  similar  to  Zorica  Jovanović  v  Serbia.  A  key  feature  of  this  case  is  the 
continued  failure  by  the  Serbian  authorities  to  provide  the  applicant  with  any  information 
about the real fate of her missing baby who had been in the care of a state-run hospital. In that 
context,  the  government  adopted  rules  of  procedure  for  the  fact-finding  commission  and 
proceedings are ongoing before the competent courts. Serbia extradited a Bahraini citizen on 
24 January 2022, despite the interim measure imposed on 21 January by the European Court 
of Human Rights to refrain from extradition until after 25 February and until the completion 
of  Court  proceedings,  which  are  still  ongoing.  This  is  contrary  to  Serbia’s  obligation  as  a 
party to the European Convention on Human Rights. Since the Court’s first judgment in 2008 
on the Kačapor group case, a systemic solution needs to be found to the delayed enforcement 
of domestic decisions against socially/State-owned companies. 

As regards the promotion and enforcement of human rights, the Parliament held a plenary 
discussion  on  the  Ombudsman’s  annual  report  for  2020  in  December  2021.  The  public 

35 

 
 
submitted  4  501  complaints  to  the  Ombudsman  in  2021,  down  from  5 056  in  2020.  The 
number  of  recommendations  from  the  Ombudsman  to  the  authorities  was  stable  at  1  050 
(1 070  in  2020).  According  to  the  Ombudsman’s  2021  report,  the  percentage  of  its 
recommendations  followed  up  by  the  authorities  fell  (2020:  94.5  %;  2021:  78  %).  Serbia 
adopted  a  new  Law  on  the  Ombudsman  in  November  2021,  which  notably  introduced  new 
competences for the Ombudsman as the national independent mechanism for monitoring the 
implementation of the Convention on the Rights of Persons with  Disabilities, as  well as  the 
national  rapporteur  for  trafficking  in  human  beings.  A  new  internal  organisation  and 
systematisation  of  jobs  now  needs  to  be  adopted.  The  Ombudsman’s  Office  has  yet  to  be 
provided with additional resources to recruit new staff and cover these new competences. It 
currently  has  82  staff,  fewer  than  the  target  of  106  included  in  the  Chapter  23  action  plan. 
Staff turnover in the Office continues to hamper its efficiency. Appropriate premises are also 
still  needed.  In  December  2021,  following  the  recommendation  of  the  Accreditation 
Subcommittee of the Global Alliance of National Human Rights Institutions, the Ombudsman 
was re-accredited with ‘A’ status. The Subcommittee encouraged the Ombudsman to continue 
efforts  to  strengthen  its  institutional  framework  and  effectiveness,  intensify  its  cooperation 
with  the  widest  range  of  CSOs  and  human  rights  defenders,  and  advocate  for  additional 
funding  to  carry  out  its  wider  responsibilities  under  the  new  law.  The  mandate  of  the 
Ombudsman expired in July 2022. According to the law, the procedure for appointing a new 
Ombudsman should have been initiated no later than 180 days before the said expiry. 

In  the  field  of  prevention  of  torture  and  ill-treatment,  the  Ombudsman,  in  its  role  as 
National  Preventive  Mechanism  against  Torture,  continued  with  its  visits  to  relevant  sites. 
Training  sessions  on  the  methodology  for  investigating  cases  of  torture  also  continued.  In 
December 2021, in its concluding observations on the third periodic report on Serbia, the UN 
Committee against Torture expressed concerns that ‘inadequate efforts are made to investigate 
the vast majority of criminal complaints lodged against police officers, prison staff and other 
State agents’. On the same topic, the European Committee for the Prevention of Torture and 
Inhuman or Degrading Treatment or Punishment (CPT) noted in its report published in March 
2022 that ‘the findings of [its] 2021 periodic visit demonstrate clearly that ill-treatment by the 
police remains a serious problem’. The CPT found that ‘in too many instances, prosecutorial 
investigations  […]  failed  to  comply  with  the  criteria  of  effectiveness  as  set  out  in  the 
Methodology  on  the  Investigation  of  Cases  of  Ill-Treatment  adopted  by  the  Serbian 
authorities in 2018’ and expressed ‘concerns over the leniency of sentences imposed by courts 
on police officers convicted of ill-treatment’. A large number of CPT recommendations from 
the last, and previous reports, have yet to be addressed. The execution of the European Court 
of  Human  Rights’  judgement  from  January  2021  in  the  case  Zličić  v  Serbia  -  concerning 
inhuman and degrading treatment while in police custody and failure to conduct an effective 
investigation  -  is  pending  along  with  other  similar  cases.  Serbia  has  yet  to  revise  the  May 
2019 criminal  code amendments which introduced life imprisonment without the possibility 
of  conditional  release  for  a  number  of  crimes.  This  provision  is  contrary  to  the  European 
Convention on Human Rights and the case-law of the European Court of Human Rights. The 
CPT raised concern about this issue in its report of March 2022. Following the Ombudsman’s 
findings in February 2021 on the lawfulness of the work of the Ministry of the Interior during 
the  July  2020  citizens’  protests  related  to  the  handling  of  the  COVID-19  pandemic, 
investigations were initiated. Some cases are ongoing while the cases concluded so far found 
no wrongdoing. 

Concerning the prison system, the renovation programme continued. In its 2022 report, the 
CPT  noted  improvements  in  the  conditions  of  detention  facilities,  health-care  provision  in 
prisons,  and  measures  taken  to  reduce  prison  overcrowding.  In  2021,  the  prison  population 

36 

 
 
stood  at  10 844  for  a  total  capacity  of  11 451  places,  i.e.  an  occupancy  rate  of  94.7  %, 
although  instances  of  local  overcrowding  remain.  The  previous  strategy  for  further 
development  of  the  system  of  enforcement  of  criminal  sanction  expired  in  2020  and  a  new 
one has yet to be adopted. Prison staff attended training sessions on the methods to carry out 
offender treatment  programmes in  a unified manner.  There has been  a long-term  downward 
trend  in  the  number  of  remand  prisoners  as  a  proportion  of  the  overall  prison  population  - 
from  30 % in  2010 to  18.6 % in  2020  -  due to  the increased use of alternative measures to 
detention. The number of probation staff in the special department for alternative measures to 
detention doubled. However, the use of community sanctions remains low. 

The Law on personal data protection is mostly aligned with the EU Regulation on general 
data protection and the Directive on law enforcement. However, the process of harmonising 
the provisions of all other laws relating to the processing of personal data with the above law, 
which was due by the end of 2020, is still ongoing. The number of designated ‘data protection 
officers’  within  public  entities  remained  low.  Court  enforcement  of  this  relatively  new  law, 
following complaints on  personal  data violations  including data leaks to  the media, remains 
limited, with  five verdicts  in  1  year. Additional  staff in  the Office of the Commissioner for 
Personal Data Protection have yet to be recruited. The Office currently has 98 staff members, 
compared  to  the  target  of  129  in  the  Chapter  23  action  plan.  The  recruitment  of  additional 
staff is now significantly overdue. Following the Commissioner’s opinions on the Ministry of 
the  Interior’s  impact  assessment  on  street  video-surveillance,  the  Ministry  stated  that  it  had 
put  processing  of  biometric  personal  data  on  hold  until  a  legal  basis  was  developed.  The 
proportionality and necessity of such surveillance will have to be assessed, with reference to 
the  Law  on  personal  data  protection,  before  it  can  be  deployed.  Questions  were  raised  by 
some participants in the November and December 2021 environmental protests on how they 
could have been identified and charged with misdemeanour without having their ID checked. 
In  that  context,  the  Commissioner  for  Personal  Data  Protection  conducted  a  supervision 
procedure  at  the  Ministry  of  the  Interior  and  determined  that  misdemeanour  warrants  were 
issued  only  to  protesters  physically  identified  by  the  police.  The  Commissioner  did  not 
establish that facial recognition technology had been used during the protests. The Ministry of 
the Interior stated that video recording during the protests was carried in accordance with the 
rulebook  related  to  the  obligation  to  inform  the  public  about  recording.  In  at  least  one 
acquittal of a protestor, a court found that the police failed to properly inform citizens that it 
was filming the protest.  

Freedom  of  thought,  conscience  and  religion  is  constitutionally  guaranteed  and  generally 
respected.  However,  the  lack  of  transparency  and  consistency  in  the  process  for  registering 
religious  communities  continues  to  be  one  of  the  main  obstacles  preventing  some  religious 
groups from exercising their rights. The Law on churches and religious communities needs to 
be aligned with international standards.  

---------------------------------------------------------------------------------------------------------------- 

Freedom of expression  

Serbia  has  some  level  of  preparation  concerning  freedom  of  expression.  Overall,  no 
progress  was  made  in  the  reporting  period  on  the  recommendations  from  last  year,  which 
therefore remain valid. The two working groups on the safety of journalists continued to meet. 
In  several  cases  of  attacks  and  threats,  the  police  and  the  prosecution  reacted  swiftly,  also 
thanks  to  the  coordination  facilitated  through  those  groups.  However,  cases  of  threats  and 
violence against journalists remain a concern and the overall environment for the exercise of 
freedom  of  expression  without  hindrance  still  needs  to  be  further  strengthened  in  practice. 
Implementation of the media strategy experienced increasing delays, affecting even the most 

37 

 
 
important measures such as amending the Law on public information and media and the Law 
on electronic media. These amendments are required to establish transparent and equitable co-
funding  for  media  content  serving  the  public  interest,  to  increase  transparency  in  media 
ownership and advertising and to strengthen the independence of the media regulator. In July 
2022,  the  Regulatory  Body  for  Electronic  Media  (REM)  awarded  all  four  national 
frequencies,  for  a  period  of  eight  years,  to  the  same  television  channels  as  in  the  previous 
period, during which all of them had received warnings from REM due to violation of their 
legal obligations. A call for a fifth licence was published in August 2022; the process should 
be  handled  in  a  transparent  manner,  respecting  the  principle  of  media  pluralism  in  the 
Audiovisual  Media  Services  Directive.  In  its  final  report  of  19  August  2022  on  the  April 
elections,  ODIHR  found  that  ‘the  national  public  broadcasters  had  covered  the  campaign 
activities  of  all  contestants  equitably  but  provided  extensive  uncritical  news  coverage  to 
public  officials  who  were  also  candidates.  Private  broadcast  media  with  national  coverage 
presented  the  election  campaign  without  meaningful  editorial  input  and  focused  their  news 
coverage  on  state  officials.’  ODIHR  also  found  that  ‘despite  its  mandate  to  oversee  the 
broadcast media, REM remained overall passive in the campaign period.’ 

In  addressing  the  persisting  shortcomings,  Serbia  should  implement  its  media  strategy  and 
action plan without further delay, in a transparent, efficient and inclusive manner, respecting 
the letter and spirit of the objectives of that strategy, and focusing as a matter of priority on:  

  strengthening the security and safety of journalists and notably ensuring that (i) high-level 
officials refrain from labelling or making verbal attacks on journalists and (ii) any threats 
and  cases  of  physical  and  verbal  violence  are  swiftly  followed  up  and,  as  appropriate, 
publicly condemned, investigated or prosecuted;  

  strengthening media pluralism, including through measures of the media strategy relating 

to REM’s functioning, mandate and independence, and to the public broadcasters; 

  ensuring  transparent  and  equitable  co-funding  for  media  content  serving  the  public 

interest, and increased transparency in media ownership and advertising. 

Intimidation of journalists 

Overall,  cases  of  threats,  intimidation  and  violence  against  journalists  remain  a  source  of 
concern,  especially  at  local  level.  This  was  also  reported  in  the  Ombudsman’s  2021  report. 
Verbal  attacks  and  smear  campaigns  against  journalists  continued.  Recurrent  statements  by 
high-ranking state officials  on the daily  and investigative work of journalists are preventing 
the  creation  of  an  environment  where  freedom  of  expression  can  be  exercised  without 
hindrance. Despite differences in the numbers, due to different methodologies, the two main 
media associations in Serbia both recorded a decrease in the total number of registered attacks 
and pressures against journalists in 2021, compared to 2020. The standing working group on 
the  safety  of  journalists  continued  to  help  improve  the  sharing  of  information  between  the 
police,  the  prosecution  and  media  associations.  The  other  working  group  for  the  safety  and 
protection of journalists, which had been established by the government in December 2020, is 
still operating without the largest part of media associations which had left the group in spring 
2021. The working group supported an initiative to partially amend the Criminal Code for the 
safety  of  journalists  at  a  more  urgent  pace  than  the  other  amendments  being  prepared. 
Following extensive public consultations in autumn 2021, those amendments were eventually 
put on hold at the request of some CSOs and media associations. One ad hoc meeting of the 
working group was held to address the topic of strategic lawsuits against public participation 
(SLAPP),  which  was  also  identified  as  a  concern  in  the  Ombudsman’s  2021  report.  In  July 

38 

 
 
2021,  the  Ombudsman  presented  its  work  on  establishing  a  central  database  of  attacks  and 
threats against the media. Operationalisation of the database has yet to be completed.  

In  several  cases  of  attacks  and  threats,  the  police  and  the  prosecution  reacted  swiftly,  also 
thanks  to  the  coordination  facilitated  through  the  aforementioned  working  groups.  In  2021, 
the  Office  of  the  Republic  Public  Prosecutor  (RPPO)  registered  87  cases  of  criminal  acts 
committed against journalists, an increase from 58 cases documented in 2020. According to 
the RPPO’s information regarding those acts that qualify for criminal prosecution, by the end 
of March 2022, the RPPO had proceeded with 72 of the 87 cases filed in 2021, while 15 cases 
had  been  dismissed.  In  total,  35  cases  had  been  finalised  (including  7  convictions),  while 
criminal proceedings continue for the 52 remaining cases (4 cases before the court, 28 in pre-
investigation,  9  in  investigation  (evidentiary  actions),  and  11  cases  without  identified 
perpetrators). The prison sentence for an attack on the house of an investigative journalist in 
December 2018 was overturned in November 2021. The retrial is ongoing. At the same time, 
an  initiative,  supported  by  the  government  working  group  on  the  safety  of  journalists,  was 
launched  to  raise  funds  to  reconstruct  the  house  in  question.  The  case  of  a  physical  attack 
against a local journalist, recorded in April 2021, was resolved in 14 months with a conviction 
and  prison  sentence.  Regarding  the  work  of  the  commission  tasked  with  looking  into  three 
cases  involving  the  murders  of  journalists,  a  first  instance  court  re-confirmed  in  December 
2021 the initial  2019  verdict  in  the case of the  murder of Slavko Ćuruvija, which had been 
overturned in September 2020. An appeal is pending. There were no developments in the two 
other murder cases. During the November and December 2021 environmental protests, some 
journalists reported having been charged with misdemeanour and were issued fines for road 
blockage despite the fact that they were there to report as journalists. Upon reaction from the 
media associations, some of those cases were dropped. 

Legislative environment  

Serbia continued implementing the action plan  for the media strategy, albeit with increasing 
delays.  In  light  of  the  wide  scope  of  the  planned  reforms,  adequate  human  resources  are 
needed in the Ministry of Culture and Information. The position of State Secretary for Media 
and Information remained vacant. The working group established to monitor implementation 
of the action plan, including media representatives, met several times but not as regularly as 
planned. There were delays in the adoption of quarterly monitoring reports. Amendments to 
the  Law  on  public  information  and  media,  which  notably  deals  with  public  co-financing  of 
media  through  calls  for  proposals,  self-regulation  and  the  transparency  and  functionality  of 
the media registry, have started being drafted but consultations were then put on hold and are 
now overdue. The start of consultations on draft amendments to the Law on electronic media 
is  delayed. The amendments  are  expected to cover the independence of the media regulator 
and the conditions and procedure for issuing licences for the provision of audio-visual media 
services.  Investigative  and  other  journalists  continued  to  face  either  frequent  refusals  by 
public bodies to disclose information, or no response at all (‘administrative silence’). The Law 
on  access  to  information  of  public  importance  was  amended  in  November  2021,  aligning 
further with some of the international standards in this area. Amendments to the Law did not, 
however,  fully  include  the  proposals  made  by  media  associations  present  in  the  working 
group monitoring the media strategy. 

Implementation of legislation / institutions 

The independence of the Regulatory Body for Electronic Media needs to be  strengthened to 
enable  it  to  efficiently  safeguard  media  pluralism.  Two  REM  Council  members  were  re-
elected  in  December  2021,  so  the  Council  continued  to  work  in  full  composition.  In  April 
2022,  REM  published  a  call  for  the  allocation  of  four  media  service  licences  for  television 

39 

 
 
broadcasting  with  national  frequencies.  In  July  2022,  REM  awarded  all  four  licences  to  the 
same previous holders for a period of eight years. A call for a fifth licence was published in 
August,  which  will  be  allocated  by  the  end  of  2022.  The  process  was  widely  criticised  by 
media associations and other stakeholders. The Law on electronic media requires that licensed 
operators’  past  record  in  programming  is  taken  into  account  when  considering  their  new 
application.  It  is  not  clear  if  this  criterion  was  effectively  applied  by  REM  as  all  of  the 
channels  with  renewed  licences  had  received,  during  the  previous  period,  warnings  from 
REM due to violation of their legal obligations. It is not clear either how the process complied 
with  transparency  requirements  as  no  updated  market  analysis  was  published  in  the  period 
before the call.  

In  order  to  implement  the  media-related  measures  identified  in  the  inter-party  dialogue 
facilitated by the European Parliament, a Temporary Supervisory Body (TSB) was established 
with  12  members  –  6  nominated  by  REM  and  6  by  opposition  parties.  The  TSB  became 
operational  in  October  2021.  In  early  2022,  REM  adopted  a  recommendation  for  private 
broadcasters and a rulebook setting obligations for public broadcasters – although the Law on 
electronic media contains obligations also for private ones. REM also adopted a methodology 
for  monitoring  the  electoral  campaign,  which  was  criticised  by  some  as  lacking  clear  and 
comprehensive  criteria.  REM’s  selection  of  channels  to  be  included  in  its  monitoring  was 
seen as lacking consistency by some TSB members. The Law on public service broadcasters 
and the Law on electronic media were amended in December 2021, notably introducing new 
obligations  for  media  services  to  publish  prices  for  political  advertising  before  the  electoral 
campaign; this does not apply to printed or online media. Another amendment stipulates that 
10 days before the elections date, including the electoral silence, the media cannot report on 
official  public  gatherings  where  infrastructure  and  other  facilities  are  opened,  if  public 
officials who are running  for elections are participating in the event. The TSB also  adopted 
documents relating to conduct in the electoral period. It took note of the existing polarisation, 
including  the  fact  that  some  media  refused  to  host  certain  politicians  or  some  politicians 
themselves refused to participate in certain media.  

REM  produced  five  monitoring  reports  during  the  electoral  campaign.  REM’s  weekly 
assessments were  often  viewed differently  by  different  TSB  members, especially  as regards 
the tonality of the  people  in  the monitored media.  The TSB could  not  work in  full capacity 
after  one  member,  nominated  by  the  opposition,  resigned  before  the  elections  and  another 
one,  also  nominated  by  the  opposition,  was  legally  unable  to  continue  after  becoming  a 
candidate. REM published its final report on the elections on 9 August 2022. In its final report 
of 19 August 2022 on the elections, ODIHR found that ‘the national public broadcasters had 
covered the campaign activities of all contestants equitably but provided extensive uncritical 
news  coverage  to  public  officials  who  were  also  candidates.  Private  broadcast  media  with 
national  coverage  presented  the  election  campaign  without  meaningful  editorial  input  and 
focused  their  news  coverage  on  state  officials.’  According  to  ODIHR’s  media  monitoring, 
‘private TV channels with national coverage […] allocated some 90 % of coverage in news 
programmes  to  the  president  and  governmental  officials,  portraying  them  generally 
positively.’ ODIHR also found that ‘despite its mandate to oversee the broadcast media, REM 
remained  overall  passive  in  the  campaign  period’  and  ‘the  effectiveness  of  the  newly 
established TSB […] was undermined by its lack of enforcement powers and disagreements 
between members nominated by the REM and those by the opposition.’ 

Hate speech and discriminatory terminology are often used and tolerated in the media and are 
rarely followed up by regulatory authorities or prosecutors. In early 2022, REM looked into 
two videos broadcast on cable and national channels, but reacted publicly with condemnation 
only in the case of the cable one seen as criticising the authorities.  

40 

 
 
Public service broadcasters 

Prior to the elections in April 2022, Radio Television Serbia (RTS) adopted a self-regulation 
act, as discussed in the inter-party dialogue. Some improvements were noted in terms of the 
representation of a plurality of political views during the electoral campaign, but this ceased 
afterwards.  Public  broadcasting  services  in  minority  languages  need  to  be  strengthened, 
especially  as  regards  RTS.  Some  improvements  were  noted,  including  the  introduction  of 
additional  programmes  in  Albanian  on  RTS  as  well  as  doubling  of  air-time  for  the  multi-
ethnic  programme,  ‘Citizen’.  In  line  with  the  media  strategy,  a  change  initiated  in  the 
preceding year was made to the system for financing RTS to strengthen its independence and 
stability.  The  switch  was  made  from  funding  from  the  state  budget  to  subscription  fees. 
However,  the  Law  on  temporary  financing  of  public  media  services  was  again  amended  to 
allow for another year of financing of Radio - Television of Vojvodina (RTV) from the state 
budget. The position of managing director of RTV has not been filled since the expiry of the 
previous mandate in July 2021. Some other management positions in RTV have also not been 
filled since July 2021. 

Economic factors  

Political  and  economic  influence  over  the  media  remains  a  source  of  concern.  The  media 
strategy  includes  measures  to  address  issues  of  transparency  in  ownership  structures  and 
fairness  in  financing media content and advertising from  state resources, which are overdue 
(See also legislative environment). The print media with the most violations of the journalistic 
code  of  professional  conduct  recorded  by  the  Press  Council,  including  those  with  court 
convictions, continued to receive public co-funding, especially at local level. According to the 
media strategy, this issue should be addressed by laying down binding criteria for complying 
with the journalistic code of conduct and by requiring applicants to accept the authority of the 
Press  Council.  The  privatisation  process  of  the  media  sector  has  yet  to  be  completed.  The 
media strategy highlighted the absence of suitable criteria and mechanisms  for assessing the 
existence of media pluralism, and identified measures aimed at addressing these issues; they 
now need to  be implemented.  Several  legal  disputes  and proceedings are  ongoing involving 
Telekom  Srbija  –  whose  majority  stakeholder  is  the  State  –  and  private  companies,  both  in 
Serbia and abroad, in the context of the high concentration of the media market in Serbia. 

Freedom of artistic expression 

Freedom of artistic expression is guaranteed by the Constitution. The Ombudsman assessed in 
2021  that  the  police  had  not  acted  in  a  timely  and efficient manner during the incident  at  a 
comic book exhibition in October 2020, when works of art were destroyed and public safety 
was put at risk. The Ombudsman requested that police officers be held accountable. One duty 
police officer was given a financial penalty.  

Professional organisations and working conditions 

Lack of job security for journalists and the editorial environment favour ‘tabloidism’. Further 
efforts  are  needed  to  improve  journalistic  standards,  media  literacy  and  overall  resilience. 
Serbia  needs  to  take  urgent  action  to  counter  foreign  information  manipulation  and 
interference  and  anti-EU  narratives,  most  obviously  in  the  context  of  Russia’s  war  of 
aggression  against  Ukraine.  Several  EU-sanctioned  Russian  state-sponsored  outlets  are 
broadcasting  radio  and  multimedia  programmes  in  the  country,  including  the  Kremlin’s 
disinformation  outlet  Russia  Today  (RT).  The  editor-in-chief  of  Sputnik  Serbia  stated  in 
summer  2022  that  RT  would  open  an  office  in  Belgrade.  These  outlets  manipulate  the 
information  environment  in  Serbia  and  in  the  region  more  broadly.  Local  civil  society,  the 
media  and  fact-checking  community  in  particular,  have  been  making  valuable  efforts  in 

41 

 
 
countering  disinformation.  The  COVID  -  19  pandemic  resulted  in  a  worsening  of  the 
economic situation for media in Serbia, which were hit by a critical reduction in advertising 
revenues. The increasing trend of SLAPP lawsuits also put pressure on the media’s financial 
and human resources capacity. 

(See also Chapter 10 – Digital transition and media). 

While legislation on freedom of assembly and association is generally in line with European 
standards,  Serbia  has  yet  to  align  further  with  ODIHR  Guidelines  on  Freedom  of  Peaceful 
Assembly. Following the Ombudsman’s findings  in  February 2021 on the lawfulness  of the 
work of the Ministry of the Interior during the July 2020 public protests against the handling 
of the COVID-19 pandemic, investigations were initiated (See also the section on prevention 
of  torture  and  ill-treatment).  In  November  2021,  the  police  banned  the  Youth  Initiative  for 
Human  Rights’  rally  in  Belgrade,  protesting  against  the  glorification  of  convicted  war 
criminal,  Ratko  Mladić,  citing  the  possibility  of  a  physical  conflict  with  counter-
demonstrators.  A  spontaneous  public  gathering  that  followed  was  blocked  by  the  police. 
According  to  the  Commissioner  for  Personal  Data  Protection,  the  police  issued  1 782 
misdemeanor  warrants  to  participants  in  the  environmental  protests  in  November  and 
December 2021 and initiated 211 misdemeanor procedures for violating the Law on safety of 
traffic  on  the  roads.  Masked  and  other  individuals  attacked  some  of  the  protestors.  The 
Ministry of the Interior issued a public statement that, since the rallies were not registered, the 
police could not secure them and guarantee safety, and that the organisers would instead bear 
such  responsibility.  Pro-Russian  demonstrations,  as  well  as  anti-war  demonstrations,  were 
allowed  in  the  aftermath  of  Russia’s  unprovoked  and  unjustified  war  of  aggression  against 
Ukraine.  On  13  September  2022,  the  Ministry  of  the  Interior  issued  a  ban  of  the  Europride 
march  in  Belgrade  for  security  concerns,  following  reported  threats  of  violence  by  extreme 
right groups if the march was held. The appeal of Europride organisers against this decision 
was  dimissed  by  the  Administrative  Court  on  the  morning  of  the  march.  The  organisers 
announced  that  they  would  appeal  to  the  Constitutional  Court  which  had,  in  two  previous 
cases,  overturned 
the 
constitutionally guaranteed right to freedom of assembly. Throughout this time, the authorities 
maintained contacts with the organisers to find a solution. A smaller march took place on 17 
September 2022 without major incident. There were however instances of violence against the 
participants (See also the section on the rights of LGBTIQ persons). 

the  authorities’  decisions  banning  Prides  as  a  violation  of 

Issues of labour and trade union rights are further covered in Chapter 19 – Social policy and 
employment. 

Regarding property rights, the Agency for Restitution continued with restitutions in kind and 
first-instance  decisions  on  the  return  of  confiscated  properties.  Based  on  the  coefficient  for 
financial restitution when restitution in kind is not possible, the government issued bonds in 
January  2022.  It  also  provided  claimants  with  an  initial  cash  advance  as  a  form  of 
compensation. This will be done annually until the process is  completed.  Implementation of 
the  Law on the restitution of heirless  Jewish property, as well  as the return of properties to 
churches and religious communities, has continued. Amendments to the Law on expropriation 
were adopted by Parliament in November 2021 but then returned to the government level by 
the President, following public protests, and were subsequently withdrawn. 

Serbia  adopted  a  new  strategy  on  non-discrimination  in  January  2022.  The  related  action 
plan  and  funding  was  due  in  April  2022  and  is  now  overdue.  A  national  housing  strategy, 
taking  into  account  the  2016  report  of  the  UN  Special  Rapporteur  on  adequate  housing,  is 
pending adoption. The 2021 report of the Commissioner for Equality indicates an increase in 
the  number  of  citizens’  complaints  (2020:  1 188;  2021:  1 372)  and  a  fall  in  the  number  of 

42 

 
 
recommendations issued by the Commissioner to public bodies (2020: 476; 2021: 312). The 
percentage  of  Commissioner’s  recommendations  that  were  implemented  remained  high  but 
decreased (2020: 89 %; 2021: 82 %). No progress was made towards alignment of the 2016 
amendments  to  the  Criminal  Code  relating  to  prohibition  and  punishment  of  criminal  racial 
acts with the EU acquis. Hate speech, threats and violence continued to target human rights 
defenders and lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ) persons. The 
Commissioner for Equality reported cases of attacks and threats against migrants organised by 
extremist and far-right groups, as well as attacks based on hatred and ethnic identity. 

Serbia published the third edition of the gender equality index in October 2021. According to 
the  index,  Serbia  achieved  58.0  points,  which  indicates  continuous  progress  in  improving 
gender  equality.  Serbia  made  the  largest  improvement  in  the  field  of  ‘power’,  while  the 
largest  gap  between  the  EU-27  and  Serbia  is  recorded  in  the  fields  of  ‘time’  (16.2  points) 
relating  to  family  and  household  care  and  ‘money’  (21.9  points)  relating  to  salaries  and 
income. In August 2022, Serbia adopted an action plan on gender equality to accompagny the 
strategy of October 2021. Implementing laws for the new Law on gender equality have yet to 
be adopted. Several provisions of this Law, including those on reporting and data collection 
obligations  as  well  as  funding  of  specialised  services,  will  enter  in  force  only  in  2024.  An 
increased  number  of  budget  users  introduced  gender-responsive  budgeting  in  their  2022 
budgets.  More  efforts  are  needed  to  collect  official  sex-disaggregated  data  and  statistics, 
which  are  lacking  in  several  domains.  During  2021,  the  Commissioner  for  Equality  reacted 
with statements and warnings on various cases of discriminatory attitudes and verbal violence 
against women, including by public figures. While the number and ratio of women in politics 
continued to increase, an external study published in 2021 and based on interviews of female 
politicians  and  media  monitoring  indicates  that  gender-based  discrimination  and  verbal  and 
other forms of gender-based violence remain in this area. Roma women, older women, poor 
women,  women  with  disabilities,  refugee  and  internally  displaced  women,  continue  to 
experience  intersecting  forms  of  discrimination,  which  was  further  exacerbated  by  the 
COVID  -  19  crisis.  In  her  special  report  on  discrimination  against  older  persons,  the 
Commissioner  for  Equality  underlined  forms  of  discrimination  faced  by  older  women  in 
particular. 

The action plan and funding for the strategy relating to violence against women and domestic 
violence of April 2021 was due in July 2021 and is now significantly overdue. A new action 
plan for the implementation of UN Security Council Resolution 1325 on Women, Peace and 
Security  has  yet  to  be  adopted  following  the  expiry  of  the  previous  one  in  2020.  
Implementation of the Law against domestic violence needs to be improved. For example, an 
integrated  system  must  be  set  up  for  collecting  and  monitoring  cases  of  violence 
disaggregated by type of violence and by relationship between perpetrator and victim.  In its 
2019  baseline  report  on  Serbia,  the  Group  of  Experts  on  Action  against  Violence  against 
Women  and  Domestic  Violence  (GREVIO)  made  recommendations  that  have  yet  to  be 
addressed. One such recommendation is to amend the definition of rape in the criminal code 
to  comply  with  the  Istanbul  Convention.  A  more  comprehensive  response  is  needed  to  all 
violence against women covered by the Istanbul Convention, not only domestic violence but 
also rape, stalking, sexual harassment and forced marriage. The very few support services for 
these  cases  of  violence  are  predominantly  run  by  CSOs  and  operate  on  a  limited  budget. 
Police  protocols  do  not  mandate  cooperation  with  specialist  support  services  or  the  routine 
referral  of victims, resulting in  the under-use of  existing CSO expertise. The action plan on 
the  national  programme  for  safeguarding  and  improving  sexual  and  reproductive  health 
contains  no  budgeting.  Adequate  funding  is  needed  to  ensure  improved  access  to  quality 
services in this area. 

43 

 
 
On the rights of the child, in February 2022 Serbia adopted a new general protocol for the 
protection  of  children  from  abuse  and  neglect.  Upgraded  sectoral  protocols  now  need  to  be 
adopted.  With  the  new  Law  on  the  Ombudsman  mentioned  above,  this  institution  has  been 
strengthened to the position of a special body protecting the rights of children. The Council on 
the  Rights  of  the  Child,  the  coordination  body  in  charge  of  monitoring  the  strategy  for  the 
protection of children from violence, has yet to be supported by a technical body. As a cross-
sectoral working group has not yet been established, the implementation of that strategy still 
needs to be better coordinated and monitored. The Law against domestic violence needs to be 
amended to ensure that every child who is a witness or victim of domestic/partner violence is 
always  included  in  the  court’s  individual  protection  plan.  Serbia  also  needs  to  amend  its 
Family  Law  to  explicitly  prohibit  corporal  punishment  of  children  in  the  family  and  to  ban 
child  marriage.  Statistical  data  on  vulnerable  groups,  including  Roma  children  and  children 
with disabilities, is still not disaggregated. Although a relatively small number of children are 
placed  in  institutional  care,  violations  of  child  rights  in  large-scale  institutions  for  children 
with  disabilities  remain  a  concern.  Children  with  disabilities  are  overrepresented  (70  %) 
among  children  living  in  residential  large-scale  institutions.  Despite  a  moratorium  being  in 
place to prevent institutionalisation of children aged 0-3, this continues to occur. A new Law 
on juvenile offenders and protection of minors in criminal proceedings has yet to be adopted. 
Child  offenders  with  mental  health  problems  do  not  have  sufficient  access  to  mental  health 
and psychosocial support services. The principles of the best interests of the child and child 
participation are yet to be properly operationalised in all court and administrative proceedings. 
No national action plan for the rights of the child is in place since the expiry of the previous 
one  in  2015.  Further  work  is  needed  to  implement  the  2017  recommendations  of  the  UN 
Committtee on the Rights of the Child.  

In December 2021, Serbia adopted a Law on temporary social care residents, further aligning 
its  legislation  with  the  UN  Convention  on  the  rights  of  persons  with  disabilities. 
Implementing laws are now needed. There is still no legal basis for ensuring that placement 
decisions  in  care  homes  are  subject  to  regular  court  reviews.  Deprivation  of  legal  capacity 
procedures need to be changed to strengthen the position of the persons concerned, as noted in 
the 2022 CPT report. Serbia adopted a strategy on de-institutionalisation in January 2022; the 
related  action plan  and  funding were  due in  April 2022 and  are now overdue. Women with 
disabilities  in  residential  institutions  continue  to  face  gender-specific  forms  of  violence. 
Funding  for  developing  community-based  services,  and  for  supporting  licensed  service 
providers and social services, remains insufficient.  

As  regards  the  rights  of  lesbian,  gay,  bisexual,  transgender,  intersex  and  queer 
(LGBTIQ) persons, in September 2022, Europride was hosted for a first time in the Western 
Balkans, after Belgrade had successfully applied in 2019, supported by an endorsement letter 
of the Prime Minister on behalf of the government. The Europride route was banned, and the 
holding of the march was uncertain until the very last moment. The authorities claimed safety 
concerns  related  to  threats  by  extreme  right  groups  as  the  basis  for  their  decision.  An  anti-
Europride  and,  anti-Western  demonstration  was  also  banned.  Finally  a  march,  via  a  shorter 
route  took  place  on  17  September  2022,  without  major  incidents.  A  high  number  of  law 
enforcement  officers  protected  it,  nevertheless,  some  instances  of  violence  against  the 
participants were reported.  The period prior to the march was marked by legal and political 
uncertainty.  The  communication  of  the  authorities  was  contradictory,  with  high  level 
announcements that the march would be banned altogether and a subsequent ban issued by the 
Ministry of the Interior on the route of the march. While the authorities maintained contacts 
with  the  organisers  to  find  a  solution,  they  remained  non-committal  about  the  parade  going 
ahead with an official permit.   

44 

 
 
There  were  no  developments  regarding  the  draft  law  on  same-sex  partnerships,  initiated  by 
the Ministry of Human  and Minority Rights  and Social Dialogue, nor on the Ombudsman’s 
recommendation to regulate legal gender recognition, as already planned in the previous anti-
discrimination  strategy.  Difficulties  remain,  especially 
in 
implementing  the  amendments  to  the  Law  on  birth  registry,  which  enable  data  on  gender 
changes  to  be  entered  into  the  registry.  The  implementation  of  hate  crime  legislation, 
including  on  grounds  of  sexual  orientation,  remains  inadequate.  Centralised  official  data  on 
hate  crimes  broken  down  by  bias  motivation  is  still  lacking.  Due  to  lack  of  trust  in 
institutions,  cases  of  violence  and  discrimination  towards  LGBTIQ  persons  are  often 
unreported.  Transgender  persons  are  particularly  vulnerable  to  violence,  abuse  and 
discrimination.  Intersex  persons  remain  invisible  both  socially  and  legally.  The  lack  of 
adequate mental  health services  for  LGBTIQ  persons  became particularly  visible during the 
COVID - 19 pandemic and is still a concern. 

in  smaller  municipalities, 

Concerning procedural  rights, the  legal framework remains only  partially  aligned with the 
EU acquis, notably  as  regards  procedural rights  of suspects and accused  individuals.  In  this 
context,  legislative  changes  are  planned  by  the  strategy  and  action  plan  on  the  rights  of 
victims  and  witnesses  of  crime,  but  the  implementation  of  the  strategy  has  proceeded  at  a 
slow  pace  since  its  adoption  in  2020.  Following  the  establishment  in  April  2021  of  a 
coordination  body  for  the  protection  of  victims  of  crimes  and  witnesses  in  criminal 
proceedings,  the  position  of  victim  and  witness  support  services  coordinator  was  created  in 
the Ministry  of Justice.  However, sufficient funding for the deployment of staff within high 
courts  has  yet  to  be  secured  to  allow  for  the  initial  establishment  of  a  national  network  of 
victim  and  witness  support  services,  as  planned  under  that  strategy.  In  practice,  victims  are 
not always protected from having to face the accused during proceedings in cases where the 
law entitles them to this protection. 

Regarding  access  to justice,  there is  a need  to further raise awareness  of the availability of 
legal  aid  among  the  most  vulnerable  and  marginalised  individuals,  also  in  light  of  the 
recommendations to Serbia from the Committee of the Convention on the Elimination of All 
Forms of Discrimination  against Women (CEDAW) regarding women’s  access  to  justice in 
all cases of gender-based discrimination. CSOs continued to provide information and support 
to  beneficiaries.  In  the  second  year  of  implementation  of  the  Law  on  free  legal  aid,  local 
services in municipalities approved 94 % of the 4 601 free legal aid requests and forwarded 
602 requests to attorneys. These statistics are incomplete as not all municipalities reported to 
the Ministry of Justice as required. The Council for monitoring implementation of the Law on 
free legal  aid  has  been established and met in  January 2022.  All  local  self-governments but 
one now have a registered provider for free legal aid. There is a need to improve the existing 
capacity and cooperation between different service providers and to align the legal framework 
with the procedural laws, the law on court fees and the tariff regulation.  

The legal framework for respect for and protection of minorities and cultural rights is broadly 
in place and generally upheld, in line with the Council of Europe Framework Convention on 
National Minorities. Implementation of Serbia’s ‘Action plan for the realisation of the rights 
of national minorities’ and relevant legislation needs to lead to a tangible improvement in the 
effective exercise of the rights of individuals belonging to national minorities throughout the 
country. Serbia initiated the drafting of a new action plan on the basis of the ex post analysis 
of the previous action plan that was conducted in the first half of 2021 and published on the 
website of the Ministry for Human and Minority Rights and Social Dialogue. Serbia needs to 
address  the  recommendations  contained  in  the  fourth  opinion  of  the  Council  of  Europe’s 
Advisory Committee for the Framework Convention. Among others, it still needs to set up a 
sustainable  data  collection  framework  and  to  revitalise  inter-ethnic  relations,  taking  into 

45 

 
 
in 

account  the  need  to  involve  the  majority  in  Serbian  society  in  integrating  and  including 
national  minorities.  The  Ministry  for  Human  and  Minority  Rights  and  Social  Dialogue 
maintained  good  cooperation  with  National  Minority  Councils.  The  Fund  for  the  National 
Minorities  for  2022  remained  the  same  as  in  2021.  The  Statistical  Office  of  Serbia,  in 
cooperation  with  National  Minorities  Councils  and  the  Ministry  for  Human  and  Minority 
Rights  and  Social  Dialogue,  started  preparatory  activities  for  the  October  2022  census, 
including  translation  of  census  questionnaires  into  languages  of  national  minorities  and 
awareness-raising  campaigns.  The  authorities  need  to  better  inform  persons  belonging  to 
national  minorities  of  the  right  to  multiple  affiliations,  in  line  with  the Council  of  Europe’s 
Framework  Convention,  and  as  already  stressed 
the  Committee  of  Ministers’s 
recommendations  to  Serbia  of  April  2021.  Preparations  have  also  started  for  elections  to 
National Minority Councils in November 2022. The proper functioning of National Minority 
Councils  remains  important.  Members  of  the  Albanian  national  minority  raised  concerns 
about  the  way  police  were  checking  residence  status  in  South  Serbia,  resulting  in  the 
‘passivisation’ of certain addresses; there is a need for the authorities to better explain to the 
public how these checks are being conducted. Local councils for inter-ethnic relations exist in 
all  73  municipalities  where  such  an  obligation  is  stipulated  by  the  law;  however,  the  full 
implementation of their mandate has yet to materialise as council members have not always 
been nominated or councils often do not meet. Following a dialogue between the authorities 
and representatives of Albanians living in South Serbia, an action plan for improvement in the 
representation  of  Albanians  in  institutions  is  being  prepared.  Despite  the  legal  obligation  to 
take into account the ethnic composition of the population, national minorities remain under-
represented  in  the  public  administration.  In  line  with  the  amended  Law  on  civil  servants, 
preparations were completed for setting up a register of public employees, with the voluntary 
option of declaring of national affiliation for statistical purposes. However, the system is not 
yet  operational.  Serbia’s inter-governmental mixed commissions  on national  minorities with 
Romania  and  with  North  Macedonia  have  been  re-activated;  official  meetings  were  held  in 
February 2022. 

Progress  in  printing  certain  textbooks  in  minority  languages  needs  to  be  further  intensified. 
The process of preparing and printing textbooks continued and produced positive results. The 
publication  of  textbooks  in  some  minority  languages  for  use  in  secondary  schools  remains 
limited.  In  January  2022,  the  Ombudsman  stated  that  the  publication  of  an  eighth  grade 
textbook ‘violated the rights of national minorities because the existence of these [minority] 
languages  is  denied’  and  recommended  the  withdrawal  of  the  textbook.  In  response,  the 
Ministry of Education instructed publishing companies to change the content of this textbook 
in  April  2022.  The  monitoring  of  the  implementation  of  curricula  for  teaching  Serbian  as  a 
non-mother  tongue  in  pilot  schools  is  ongoing.  A  number  of  recommendations  aimed  at 
improving teaching of Serbian in schools were issued to the Ministry of Education. Access to 
religious  worship  in  minority  languages  has  yet  to  be  enabled  throughout  Serbia.  Public 
broadcasting  services  in  minority  languages  are  still  not  sufficient,  except  for  some  local 
broadcasters  in  Vojvodina.  Following  the  process  of  media  privatisation,  such  broadcasting 
needs  to  be  made  sustainable,  taking  into  account  the  April  2021  recommendations  of  the 
Committee  of  Ministers  of  the  Council  of  Europe  to  ‘closely  monitor  the  impact  of  the 
privatisation  process  on  minority  media’  and  to  ‘take  the  necessary  measures  to  preserve 
sustainable editorial and financial independence of all minority media, including those linked 
to national councils of national minorities’ (See also public service broadcasters). There have 
been  instances  of  hate  speech  against  national  minorities  in  the  media  and  by  senior 
government  officials  and  Members  of  Parliament.  In  December  2021,  the  appellate  court 
confirmed  the  decision  of  the  higher  court  to  reject  a  lawsuit  filed  by  the  president  of  the 

46 

 
 
Albanian National Minority Council against a minister for the alleged use of hate speech; an 
appeal procedure before the Constitutional Court is ongoing. 

Regarding Roma inclusion, in February 2022 Serbia adopted a new strategy, with the aim of 
aligning with the EU Roma strategic framework for 2020-20304. The related action plan was 
adopted  in  September  2022.  Robust  monitoring  and  data  collection  will  need  to  be  put  in 
place  as  part  of  the  new  strategy  and  action  plan  to  support  Serbia  in  delivering  on  the 
commitments  made  in  the  Poznan  Declaration  -  signed  at  the  Western  Balkans  Leaders’ 
Summit  in  July  2019  -  including  its  quantitative  targets.  Coordination  between  the  national 
and local authorities, as well as Roma-sensitive budgeting, still need to be strengthened. Job 
descriptions  for  local  Roma  coordinators,  pedagogical  assistants,  and  health  mediators  have 
yet  to  be  unified  and  become  an  integral  part  of  local  self-government  services,  with 
additional finances. Most Roma people in Serbia have civil documentation. Under their third 
memorandum  of  understanding  signed  in  February  2022,  the  Ministry  of  the  Interior,  the 
Ombudsman and the UN High Commissioner for Refugees (UNHCR) agreed on a procedure 
to enable the registration of individuals lacking an official address by means of registering at 
centres for social work. This has led to more Roma people being registered. All births need to 
be  registered  immediately  after  children  are  born,  regardless  of  their  parents’  status.  The 
procedure needs to be implemented effectively and monitored.  

Roma  students  in  elementary  and  secondary  education  continued  to  receive  scholarships 
through affirmative measures. School drop-out rates remain high, especially for Roma girls, 
although the multiple indicator cluster surveys (MICS) show a reduction of 7 %. Only 7.4 % 
of  Roma  children  up  to  5  years  of  age  attend  preschool.  During  the  COVID-19  pandemic, 
Roma children, mainly from informal settlements, struggled to take part in online education 
for  lack  of  access  to  the  technical  resources.  The  transition  rate  to  secondary  schools  for 
Roma students is 52.6 %, while the completion rate is 61 % - an increase of 20 %, compared 
to the previous MICS. Segregation in education needs to be addressed. Roma students are still 
overrepresented in special schools and classes. Transition from education to the labour market 
is  especially  challenging  for  young  Roma  people.  Serbia  adopted  a  Law  on  social 
entrepreneurship  in  February  2022,  with  the  aim,  among  others,  of  increasing  labour 
activation  among  Roma  and  other  vulnerable  individuals.  The  national  programme  for 
transforming  undeclared  work  among  Roma  has  yet  to  be  adopted  to  support  Poznan’s 
objective on employment. The Roma are still under-represented in the public administration. 
Almost  20  %  of  the  population  of  the  Roma  settlements  that  were  mapped  have  no  or 
irregular access to safe drinking water, while over 55 % have no or irregular access to sewer 
networks,  and  14.5  %  have  no  or  irregular  access  to  electricity.  These  shortcomings  were 
exacerbated  by  the  COVID-19  pandemic.  The  legalisation  of  Roma  settlements  needs  to  be 
tackled as a matter of priority as required by the Poznan Declaration, notably by updating and 
sharing  the  database  on  settlements  and  assigning  staff  to  effectively  manage  it.  Forced 
evictions are still taking place, which is not in line with the Law on housing or international 
standards.  This  Law  needs  to  be  implemented  effectively,  especially  the  provisions 
prescribing  housing  support  and  relocation  of  informal  settlements.  Roma  returnees  under 
readmission  agreements  are  in  a  particularly  difficult  situation  in  terms  of  social  and 
economic  inclusion.  Although  child  marriage  is  not  common  in  the  general  population  in 
Serbia,  early  and  child  marriage  remains  an  issue  of  concern  among  Roma  girls  living  in 

4 COM(2020)620 final 

47 

 
 
                                                           
 
settlements.  MICS  show  that  56  %  of  women  aged  20-24  years  lin  Roma  settlements  were 
married before age 18 and 16 % before age 15. Domestic violence also often goes unreported. 

There  are  still  196 140  internally  displaced  persons  (IDPs)  in  Serbia,  of  whom  68 154 
remain  vulnerable  and  with  displacement-related  needs.  There  is  a  need  to  close  the  only 
remaining collective centre in Bujanovac. The related strategy expired in 2020. The Law on 
permanent  and  temporary  residence  needs  to  be  consistently  applied  to  allow  Roma  IDPs 
living  in  informal  settlements  to  obtain  registered  residence  and  access  to  basic  socio-
economic rights. Roma IDPs remain the most marginalised and vulnerable. Serbia is engaged 
in  the  regional  dialogue  on  ‘durable  solutions  for  displaced  persons  from  Kosovo’  (the 
‘Skopje process’). 

2.2.2 Chapter 24: Justice, freedom and security  

The  EU  has  common  rules  for  border  control,  visas,  residence  and  work  permits,  external 
migration and asylum. Schengen cooperation entails the lifting of border controls inside the 
EU.  Member  States  also  cooperate  with  Serbia  in  the  fight  against  organised  crime  and 
terrorism, and on judicial, police and customs matters; all with the support of EU justice and 
home affairs agencies.   

Serbia  has  some  level  of  preparation  to  implement  the  EU  acquis  on  justice,  freedom  and 
security. Some progress  was  made in  addressing last  year’s recommendations,  in  particular 
through the preparatory work on the Schengen action plan and on the criminal code as regards 
the  trafficking  of  weapons.  The  administrative  capacity  of  the  Prosecutor´s  Office  for 
Organised Crime was strengthened. A baseline analysis has been carried out, however, there 
is  a  delay  in  developing  ‘systematisation  rulebooks’  (decisions  on  staffing).  Serbia  took  no 
steps to further align with the EU’s common visa policy.  

Serbia  continued  to  significantly  contribute,  as  a  transit  country,  to  the  management  of  the 
mixed  migration  flows  towards  the  EU  by  playing  an  active  and  constructive  role  and 
cooperating effectively with its neighbours and EU Member States. Efforts continued to host 
and  accommodate  substantial  numbers  of  third-country  nationals,  with  EU  support.  Serbia 
decided on 17 March to grant temporary protection for 1 year to Ukrainian nationals having 
fled  Russia’s  war  on  Ukraine.  Serbia  continued  to  satisfactorily  implement  the  EU-Serbia 
readmission agreement and to carry out border control and surveillance effectively. The new 
integrated border management strategy for 2022-2027, with action plan, was adopted. Efforts 
to  detect  and  prevent  the  smuggling  of  migrants  continued.  Access  to  and  provision  of 
information regarding the asylum procedure has yet to be improved, and access to information 
and legal counselling for asylum seekers at Belgrade International Airport has still not been 
ensured.  Serbia  needs  to  further  align  with  the  EU’s  visa  policy  as  corroborated  in  the 
Commission’s fourth report under the visa suspension mechanism of August 2021. 

In the coming period, Serbia should in particular:  

  further increase the technical, financial and human resources capacity of the Prosecutor’s 
Office  for  Organised  Crime  to  perform  its  duties  in  an  independent  manner  (including 
premises to accommodate new staff); 

  amend the Law on internal affairs to make the police fully autonomous from the Ministry 
of  the  Interior  and  fully  accountable  only  to  the  Prosecutor´s  Office  during  pre-
investigation and investigation phases;  

  adopt  the  Schengen  action  plan  and  ensure  that  all  relevant  government  institutions  are 

properly involved;  

48 

 
 
  take concrete steps to fully align with the EU’s list of visa required third countries. 

Serbia  adopted  a  revised  action  plan  for  Chapter  24  in  July  2020.  It  sets  out  Serbia’s 
commitments, including in terms of timelines, for meeting the interim benchmarks of the EU 
common  positions  for  these  chapters.  In  general,  indications  of  delays  in  this  report  are 
measured  against  the  deadlines  established  by  Serbia  in  these  revised  action  plans.  The 
Ministry improved the practice of publishing reports on the implementation of the action plan 
for Chapter 24 with the timely publishing of the report covering July-December 2021. For a 
period starting in February 2020, no meetings were held between the Negotiating Group for 
Chapter  24  and  civil  society  organisations  under  the  umbrella  of  the  Working  Group  for 
Chapter  24  of  the  National  Convention  on  the  European  Union.  The  meetings  restarted  in 
November 2021. 

Fight against organised crime 

Serbia has some level of preparation in the fight against organised crime. Limited progress 
was made in addressing last year’s recommendations by introducing changes to improve the 
measurement of the track record on investigation, prosecution, and convictions in serious and 
organised  crime  cases.  The  data  provided  by  Serbia  shows  a  mixed  picture:  the  number  of 
new investigations and final convictions increased in 2021 compared to the year earlier; the 
number  of  indictments  and  first-instance  convictions  fell.  Proactive  criminal  investigations 
and  systematic  tracking  of  money  flows,  especially  in  cases  of  inexplicable  wealth  are  not 
regular practices. Although financial investigations were initiated in 128 cases, the number of 
cases  where  seizure  and  final  confiscation  of  assets  occurs  is  still  limited.  Extended 
confiscation is not systematically applied. However, the understanding and the investigation 
approach has improved and prosecutors are aware of the importance of consistently applying 
a ‘follow the money to find the crime’ method. This should lead to better results in the future 
in terms of final convictions and seizure and confiscation of assets. 

Serbia is delayed in conducting an analysis of the roles and practices of security services and 
of the National Security Council in carrying out criminal investigations relating to serious and 
organised crime.  

There  is  well-established  cooperation  with  Eurojust,  Interpol  and  with  Europol,  notably  in 
weapons trafficking, drugs trafficking, and the fight against organised crime groups. 

Serbia  should  adapt  its  approach  from  one  based  on  cases  to  a  strategy  against  criminal 
organisations, and from focusing on cases of low or medium importance to high profile cases 
aiming at dismantling big and international organisations and seizing the assets.  

In the coming period Serbia should increase its efforts to address the shortcomings and:    

  increase  the  number  of  investigation,  prosecution,  and  convictions  in  serious  and 
organised crime cases, including cases of money laundering, based on systematic tracking 
of  money  flows  and  on  the  efficient  use  of  special  investigative  measures  to  collect 
relevant evidence;   

  systematically increase the seizure and confiscation of criminal assets which includes both 
seizure  of  proceeds  of  crimes  or  their  equivalent  and  the  systemic  use  of  extended 
confiscation;  

  amend  the  Serbian  criminal  code  in  order  to  effectively  criminalise  the  trafficking  of 
weapons; take concrete steps to ensure a clear separation of the mandates and regulations 
concerning the interception of communications for criminal investigation on the one hand, 
and for security purposes on the other.  

49 

 
 
Institutional set-up and legal alignment  

There  were  40  059  police  officers  in  Serbia  in  April  compared  to  40  119  in  April  2020, 
equivalent  to  439  per  100  000  inhabitants,  compared  with  an  EU  average  of  333  (Eurostat, 
2018-2020). The Prosecutor’s Office for Organised Crime (POOC) still needs to recruit three 
prosecutors  to  fill  all  25  prosecutor  posts.  However,  its  administrative  capacity  has  been 
increased.  The  new  Rulebook  on  Internal  Organisation  and  Systematisation  of  the  job 
positions  in  the  POOC  adopted  in  May  2021  envisaged  25  prosecutors  and  68  employees 
(positions not filled due to the lack of office space). More generally, taking into consideration 
that  Serbia  has  a  prosecution-led  pre-investigation  and  investigation  system,  there  is  a  need 
for developing ‘systematisation rulebooks’ on the basis of a baseline analysis which takes into 
consideration  the  extended  jurisdiction  and  powers  of  this  office.  Furthermore,  this  office 
should be given more technical resource to carry out relevant special investigative measures 
(SIMs)  such  as  covert  interception  of  communication  autonomously  and  independently.  In 
addition,  the  working  conditions  of  general  competence  prosecutors’  offices  should  be 
improved across the country.  

Cooperation and coordination among law enforcement agencies still needs to be strengthened. 
Measures in the criminal code designed to prevent the excessive delaying of proceedings need 
to be more systematically applied. 

into  serious  and  organised  crime.  Regarding 

Serbia  is  late  in  conducting  an  analysis  of  the  roles  and  practices  of  security  services  in 
investigations 
interception  of 
communications, a clear separation needs to be made between the remits and regulations for 
criminal  investigation  and  those  for  security  purposes.  The  fact  that  the  current  criminal 
procedure  code  allows  for  covert  interception  of  communication  to  be  executed  also  by  the 
Security Information Agency (BIA) and the Military Security Agency. An analysis is needed 
to see whether this is in line with EU best practice. In general, interception equipment should 
allow  the  judiciary  (the  police  under  instruction  received  only  by  the  prosecution  and  the 
judge  of  preliminary  investigation)  to  be  the  only  institution  performing  interception  for 
criminal investigations independently, in line with EU standards and best practice. 

the 

The same provision in Serbia’s legal framework on weapons-related offences covers actions 
relating  to  trafficking  of  weapons  and  to  illegal  possession  and  other  less  relevant  actions. 
Hence,  it  is  not  possible  to  distinguish  the  number  of  convictions  relating  to  trafficking  in 
weapons from those related to illegal possession and other offences. UNDOC’s analysis of the 
alignment of legislation with the UN Firearms Protocol confirmed that the criminal code was 
in  urgent  need  of  amendment  to  adequately  criminalise  the  trafficking  of  weapons.  The 
working  group  on  amending  the  law  continued  its  activities  and  proposed  amendments  to 
Article 348 of the criminal code.  

Serbia  is  implementing  its  strategy  for  the  prevention  and  suppression  of  trafficking  in 
human beings for 2017-2022, which has  a focus  on the protection of  women and children. 
The  related  action  plan  for  2021-2022,  scheduled  for  adoption  in  2020,  is  delayed.  The 
Council for Combating Human Trafficking has not held a session for almost 3 years. A new 
Law on the protector of citizens, adopted in November 2021, provides for the appointment of 
a  National  Rapporteur  on  Trafficking  in  Human  beings  inside  the  Institution  of  the 
Ombudsman. In line with European standards and the EU acquis, the Ombudsman performs 
the duties of the national rapporteur, with the assistance of one deputy who has not yet been 
designated. 

The  Law  on  internal  affairs  still  needs  to  be  harmonised  with  the  criminal  procedure  code. 
The legal framework is still not sufficient to guarantee the operational autonomy of the police 
from  the  Ministry  of  the  Interior  during  the  pre-investigation  and  investigation  phases.  In 

50 

 
 
September 2021, the draft law on internal affairs (planned to replace the Law on police) was 
withdrawn  from  the  legislative  procedure  shortly  after  the  conclusion  of  the  public  debate, 
following  strong  criticism  from  civil  society.  The  draft  law  was  developed  and  published 
without  prior  assessment  of  the  need  to  use  artificial  intelligence  systems  for  processing 
biometric  data  or  of  the  risks.  Nor  an  official  privacy  impact  assessment  carried  out,  as 
required by the  Law on  personal  data protection. There is  an ongoing dialogue between  the 
Ministry of the Interior and CSOs in particular regarding mass surveillance and the processing 
of biometric data though a number of other proposed solutions fall short/are not aligned with 
European  standards,  such  as  the  recommendations  of  the  Council  of  Europe  Committee  for 
the Prevention of Torture (CPT).  

Media  relations,  including  press  releases  on  ongoing  investigations  and  trials,  are  still 
managed mainly by politicians and representatives of the Ministry of the Interior and not by 
the  prosecution  and/or  the  police.  The  prosecutors’  offices  (especially  the  Republic  Public 
Prosecutor’s  Office)  should  improve  its  external  relations  capacity  including  relations  with 
media.  Government  officials,  including  some  at  the  highest  level,  as  well  as  members  of 
Parliament, continue to comment publicly on ongoing investigations or court proceedings, as 
well as on the work of individual prosecutors and judges. Such comments are in contradiction 
with  the  code  of  conduct  of  members  of  Parliament,  adopted  in  December  2020.  Several 
media  outlets  made  public  leaked  information  on  ongoing  investigations,  including 
defendants’  statements  on  alleged  links  between  politicians  and  organised  criminal  groups, 
creating undue pressure on individual members of the judiciary or the prosecution. 

Serbia is still reporting to Committee of Experts on the Evaluation of Anti-Money Laundering 
Measures  and  the  Financing  of  Terrorism  (MONEYVAL)  about  the  implementation  of  the 
outstanding  2016  Mutual  Evaluation  Report  (2016  MER)  recommendations.  MONEYVAL 
issued a new compliance report in September 2021. The Financial Action Task Force (FATF) 
concluded  that,  overall,  Serbia  had  made  progress  in  addressing  the  technical  compliance 
shortcomings identified in its mutual evaluation report (MER) and applicable subsequent third 
enhanced follow-up report and has been re-rated on 5 FATF Recommendations (4 upgrades 
and 1 downgrade). Serbia will remain in enhanced follow-up and is expected to report back in 
2023 to MONEYVAL on progress to strengthen its implementation of anti-money laundering 
and  counter-terrorist  financing  measures.  The  Administration  for  the  Prevention  of  Money 
Laundering  (APML)  has  in  place  well-developed  and  transparent  web  sites  where  the 
activities are published.  

Serbia  has  a  well-functioning  central  record  of  beneficial  owners.  In  2021,  the  Business 
Registers  Agency  filed  a total  of 2 726  (compared with  1 900 in  2020)  requests to  institute 
misdemeanour  proceedings  and  the  relevant  misdemeanour  courts  rendered  502  decisions. 
Serbia reported 2 053 suspicious transactions in 2021 compared to 2 276 in 2020.  

In  September  2021,  Serbia  adopted  four  national  risks  assessments  on:  money  laundering, 
national terrorism financing, virtual assets and weapons of mass destruction.  

Overall,  the  fight  against  money  laundering  and  financing  of  terrorism  should  focus  on  the 
sectors  mostly  at  risk  for  money  laundering,  including  the  financial  sector  as  well  as 
designated  non-financial  business  and  professions  (e.g.  real  estate  sector,  casinos,  lawyers, 
notaries,  currency  exchange  offices,  etc.).  Unusual  proliferation  of  assets  or  money 
administration  inconsistent  or  not  proportionate  with  regular  business  practices  should  be 
subject to preventive control to detect links with criminal activities. The (APML, the Serbian 
Financial Intelligence Unit) is well-developed.  

The Ministry of the Interior’s Financial Investigation Unit (FIU) carries out the functions of 
Serbia’s Asset Recovery Office (ARO)  relating to  the exchange of police data in  line with 

51 

 
 
the  EU  acquis.  In  order  to  be  fully  operational  and  to  cooperate  effectively  with  the  asset 
recovery offices of the EU Member States, it will require access to all relevant databases in 
Serbia.  This  should  be  enabled  through  the  interoperability  of  the  relevant  databases  at  
national level. The ARO would need to have a fully operational centralised case management 
system  in  place,  compatible  with  prosecutors’  case  management  system  (SAPO)  and 
investigative software (SIDDA/SIDNA). In 2021, the FIU was engaged in international police 
cooperation  in  response  to:  37  requests  for  verification  submitted  through  the  CARIN 
network, 22 verification requests submitted by ARO offices in other countries through SIENA 
(the  secure  information  exchange  network  application),  17  verification  requests  through 
Interpol, 4 verification requests received from liaison officers and 2 requests for international 
legal  assistance  from  Prosecutors’  Offices.  Based  on  these  requests,  the  FIU  performed  the 
necessary checks and submitted timely reports. 

The  Financial  Investigation  Unit  of  the  Ministry  of  the  Interior,  which  has  64  employees, 
received 188 requests for financial investigations from Serbian Prosecutors’ Offices in 2021. 
In  the  same  period,  the  FIU  implemented  230  orders  on  prohibition  of  disposal  of  property 
and on temporary confiscation of movable property.  

Established  within  the  Service  for  Special  Investigative  Methods  (SSIM)  of  the  Criminal 
Police Directorate, Serbia’s Fugitive Active Search Team (FAST) is considered to be one of 
the most proactive and reactive units within the European Network of Fugitive Active Search 
Teams  (ENFAST).  According  to  feedback  from  the  37  countries  participating  in  ENFAST, 
FAST Serbia is highly ranked in the entire network both by the number of arrests carried out 
in  Serbia  (following  police  cooperation  requests  disseminated  by  other  FAST  units)  and 
arrests executed abroad (based on police cooperation requests produced by FAST Serbia).  

Serbia  uses  SOCTA  (Serious  and  Organised  Crime  Threat  Assessment)  to  set  operational 
priorities for fighting organised crime. In December 2021, the Ministry of the Interior drafted 
a mid-term review of the SOCTA 2019 document. 

In  Serbia,  the  police  services  still  lack  a  shared  case/workflow  management  system, 
connecting all institutions and giving them access to a common database.  

The  centralised  case  management  system  for  prosecutors  (SAPO)  needs  to  become  fully 
operational.  Since  the  SIDDA/SIDNA  investigative  software  cannot  run  at  full  capacity 
because  not  all  relevant  data  reaches  it.  Technical  and  legal  preparations  progressed  for  a 
single centralised criminal intelligence system (NCIS). 

Serbia must urgently  assess the interoperability of the information systems and databases of 
all  national  law  enforcement  agencies  and  units  before  any  further  purchases  and 
improvements.  

Implementation and enforcement capacity 

Serbia  has  introduced  changes  to  improve  the  measurement  of  the  track  record  on 
investigations,  prosecution  and  final  convictions  in  serious  and  organised  crime  cases, 
including the seizure and confiscation of criminal assets. The data provided by Serbia shows a 
mixed picture: under organised crime jurisdiction, the number of new investigations increased 
in 2021. Investigations were initiated against 130 individuals compared to 110 in 2020. The 
number of indictments fell in 2021: 100 individuals were indicted compared to 108 in 2020. 
The number of first instance convictions fell in 2021: first instance convictions were rendered 
against 46 individuals compared to 127 in 2020. The number of final convictions increased in 
2021:  98  (including  67  with  plea  agreements)  individuals  have  been  convicted  in  2021 
compared to 72 in 2020. 

52 

 
 
The  data  provided  by  Serbia  on  case  under  general  jurisdiction  show  that,  in  2021,  new 
investigations  were  initiated  against  2  206  individuals  and  8  165  indictments  have  been 
issued.  First  instance  judgements  were  rendered  against  5  461  individuals  and  final 
convictions against 5 788 individuals.  

There is a delay in setting up a working group to carry out a comprehensive analysis of the 
effectiveness of the criminal legal system in order to increase the track record in serious and 
organised crime cases.  

The use of plea agreements needs to be carefully balanced against the need for justice  to be 
seen to  be done and  the  need to  avoid  any impression of impunity in  serious and organised 
crime cases. 

Regional cooperation initiatives and events, including EU-funded programmes, support good 
neighbourly relations and reconciliation. There were instances in 2022 when Serbia chose not 
to  participate  in  capacity-building  activities  on  the  rule  of  law  organised  by  regional  IPA-
funded  initiatives,  arguing  that  this  was  the  result  of  the  decision  to  stop  activities  with 
foreign partners ‘starting from the principle of military neutrality’. The European Commission 
has  encouraged  Serbia  to  reverse  this  decision.  Serbia  has  also  been  approached  by  the 
European  Commission  to  participate  in  a  multi-country  IPA-funded  rule  of  law  programme 
aimed  at  ‘supporting  a  more  effective  administration  of  justice  in  corruption  and  organised 
crime  cases  in  the  Western  Balkans  through  trial  monitoring’.  The  programme  is  being 
implemented by the OSCE in five of the six Western Balkan partners. Serbia should join this 
programme,  which  would  send  an  important  signal  concerning  Serbia’s  commitment  to  the 
rule of law. 

There  is  well-established  cooperation  with  Eurojust,  Interpol  and  Europol,  including  on 
high-profile  organised  crime  cases.  The  seconded  Serbian  prosecutor  in  Eurojust  is  well 
established and the institution was proactive in providing intelligence in important organised 
crime  cases.  The  secure  communication  channel  SIENA  is  operational.  Its  use  is  steadily 
increasing  and  remained  at  a  high  level  from  2018  onwards.  For  example,  in  2021  that  has 
been a 5 % increase in the number of messages exchanged via SIENA compared to 2020. 

Serbia  continued  to  cooperate  with  EU  police  services  through  the  European  Network  of 
Fugitive  Active  Search  Teams  (ENFAST),  in  which  it  has  observer  status.  The  country 
stepped  up  its  participation  in  EMPACT  (the  European  Multidisciplinary  Platform  Against 
Criminal Threats). In 2022, Serbia committed to participate in 68 operational actions in 10 of 
the 15 EMPACT operational action plans (OAPs), including as co-leader for one operational 
action. In 2021, Serbia participated in 31 EMPACT operational actions,  as co-leader in one. 
Serbia appointed a National EMPACT Coordinator. 

Serbia  continued  to  participate  actively  in  EMPACT  joint  action  days  (JADs),  such  as  the 
2021  JAD  South  East  Europe  2021  (promoting  closer  cooperation  in  the  work  against 
firearms  trafficking,  the  smuggling  of  migrants  and  drugs  trafficking,  the  JAD  Mobile  4 
(targeting various types of motor vehicle crime, including smuggling of stolen vehicles via the 
external borders, parts of vehicles, as well as associated document fraud and the JAD Danube 
6 (focused on combating the smuggling of migrants, fighting trafficking in human beings and 
document fraud).  

Cooperation between Serbia and the EU Agency for Law Enforcement Training (CEPOL) is 
well established and based on a working arrangement. A dedicated contact point is in place. 
Serbia has full access to the CEPOL Exchange Programme as well as to CEPOL’s the free of 
charge electronic learning system. 

53 

 
 
In 2021, as regards the fight against money laundering, based on indictments by the special 
prosecutor  for  organised  crime  there  were  7  final  convictions  (11  in  2020),  and  based  on 
indictments by special anti-corruption departments, there were 33 final convictions. 

Financial investigations are not a regular practice in every criminal investigation. Proactive 
criminal  investigations are needed, including pre-seizure planning and a  systematic tracking 
of money flows, aimed not only at asset recovery but the gathering of circumstantial evidence 
for inexplicable wealth. In 2021, financial investigations were initiated in 128 cases. In 2021, 
there were temporary confiscations in only 6 cases and no cases of final confiscation of assets. 
Extended confiscation is not systematically applied. However, even though results are yet to 
be  seen,  understanding  and  the  investigation  approach  has  improved  and  prosecutors  are 
aware  of  the  importance  of  consistently  applying  a  ‘follow  the  money  to  find  the  crime’ 
method.  This  should  lead  to  better  results  in  the  future  in  both  track  records  of  final 
convictions and the track record of seizure and confiscation of assets.  

Recommendations from last year’s report are still relevant, concerning analysis of the Law on 
the  seizure  and  confiscation  of  the  proceeds  of  crime  and  the  manner  in  which  financial 
investigations are conducted:    

The  criminal  procedure  code  (CPC)  and  the  2016  Law  on  seizure  and  confiscation  of 
proceeds  of  crime  (LSCPC)  do  not  make  a  clear  distinction  between  direct  confiscation 
systems  (‘material  gain’  under  the  criminal  code/CPC)  and  extended  confiscation  (‘assets’ 
under the LSCPC). A serious limitation to the application and effectiveness of the LSCPC lies 
in the fact that it only applies to a limited number of criminal offences and only if a certain 
threshold of material  gain  is  reached. Third-party confiscation  is  not  systematically  used, in 
part  because,  the  LSCPC  only  allows  for  it  when  assets  have  been  transferred  (a)  for  a 
manifestly inadequate price and (b) with the aim of preventing seizure. Furthermore, the law 
does not foresee a rebuttable presumption of fraudulent transaction (thus liable to third-party 
extended  confiscation)  when  assets  are  transferred  from  the  accused  to  a  close  family 
member. The provisions of the Law reduce the effectiveness of extended confiscation. 

In  practice,  to  establish  that  assets  are  disproportionate  to  lawful  income,  prosecutors, 
financial forensic experts and the Financial Investigation Unit frequently rely on open source 
databases such as the land registry, tax administration, or city heating records. This approach 
does  not  involve  a  full  forensic  analysis  of  defendants’  property  and  hardly  provides  an 
accurate  picture  of  a  defendant’s  lifestyle.  Without  an  in-depth  investigation  or  a  lifestyle 
analysis, spending by the defendant may remain hidden (e.g. travel, buying of movable goods, 
etc.)  which  would  reveal  the  assets  to  be  more  disproportionate  to  the  defendant’s  lawful 
income.  The  proactive  role  of  the  judges  in  following  and  encouraging  this  approach  is 
therefore essential.   

In 2021,  29 people  were  convicted for illegal  crossing of  the state border and smuggling of 
persons. There were 23 convictions for mediation in prostitution. There were 71 convictions 
for smuggling and 3 for mediation in prostitution. 

Concerning trafficking in human beings, under organised crime competence, as in 2020, no 
individuals were convicted in 2021. 

In 2021, police officers  filed a total  of 23 criminal  charges  for trafficking in  human beings. 
The  charges  were  brought  against  43  suspects  (1  juvenile  and  42  adults)  and  involve  46 
victims  of  human  trafficking  (10  juveniles  and  36  adults).  Under  general  jurisdiction,  15 
persons were convicted for trafficking in human beings. 

In 2021, a total of 23 witnesses were deemed as especially vulnerable by public prosecutors in 
cases of trafficking in human beings. It is essential to provide human trafficking victims with 

54 

 
 
proper  protection  during  trials,  including  granting  them  the  status  of  especially  vulnerable 
witness.  This  is  important  not  only  to  avoid  re-victimisation  but  also  to  collect  evidence  of 
force, threat or exploitation, required by the criminal code for this offence.    

The Centre for the protection of victims of human trafficking (Centre) is now operating. The 
refuge  part  of  the  centre  has  not  been  functional  since  August  2020,  lacking  the  necessary 
licence.  Currently  only  a  CSO-managed  shelter  provides  support  for  girls  and  women. 
Although  legally  possible,  compensation  is  rarely  granted  to  victims,  as  there  is  no  official 
scheme  or  fund  for  this.  In  2021  the  list/s  of  indicators  for  formal  identification  of  THB 
victims are finalised and the Centre started to use them. In 2021, the Centre has identified 46 
victims of human trafficking of whom 80 % are women and girls. The most common type of 
exploitation remains sexual exploitation (50 %), followed by forced begging, as well as labour 
exploitation.  Of  the  identified  victims,  37  %  are  minors,  of  whom  94  %  are  girls.  Since 
autumn 2021, CSOs have been publicly drawing attention to a case of potential trafficking in 
human  beings  for  the  purpose  of  labour  exploitation  concerning  Vietnamese  workers, 
referring to alleged ‘deceptive’ and ‘coercive recruitment’ practices such as debt bondage and 
‘coercion  at  destination’  such  as  confiscation  of  passports.  The  Centre  has  said  that  the 
procedure of identification of potential victims is ongoing.  

Legislative alignment on the environmental liability and environmental criminal law acquis 
has not progressed. Enforcement remains a key priority, including establishing a track record 
on  implementing  the  Environmental  Crime  Directive.  There  was  only  one  first-instance 
conviction  in  2021.  Serbia  should  step  up  its  efforts  to  create  awareness  of  environmental 
crime  and  stop  it.  The  Ministry  of  the  Interior  set  up  the  Unit  for  environmental  crime 
suppression and environment protection within the General Police Directorate. The Unit is not 
operational yet and recruitment of staff is underway.  

Additional effort should be put into the fight against illicit trafficking of cultural property 
and  protecting  cultural  heritage  and  to  bolster  cooperation  with  countries  in  the  region  on 
fighting illicit trafficking of cultural goods. 

As in 2020, in 2021 no individuals were convicted for weapons-related offences (including 
trafficking  in  weapons)  in  the  context  of  organised  crime.  In  2021,  735  people  were 
convicted in courts of general jurisdiction.  

The strategy for small arms and light weapons control (2019-2024) is being implemented, as 
are related international obligations arising from the roadmap for a sustainable solution to the 
illegal  possession,  misuse  and  trafficking  of  small  arms  and  light  weapons  (SALW)  and  
ammunition  in  the Western Balkans. The accompanying two-year plan (2019-2020) expired 
and a new one has yet to be adopted. 

The Instruction on the way of handling weapons, ammunition and explosive devices found on 
the crime scene be authorised officers and the Protocol for securing weapons fund at the crime 
scene were enacted/adopted in May 2022.  

In  August  2021,  a  team  was  set  up  for  the  implementation,  monitoring  and  exchange  of  all 
operational information related to firearms (firearms focal point, FFP). Work continued on the 
improvement  of  databases,  harmonisation  of  documents  needed  by  the  FFP,  and  on 
determining and establishing the most appropriate methodology to make it fully operational.  

The  2019-2023  strategy  and  action  plan  for  the  fight  against  cybercrime  are  being 
implemented.  Training  was  given  to  strengthen  the  operational  capacity  of  the  Special 
Prosecutor’s Office for Cybercrime. More human resources are needed for investigations into 
credit card, e-commerce, and e-banking abuses and for combating illicit and harmful content 
on the internet.  

55 

 
 
In  2021,  the  Special  Prosecutor’s  Office  launched  investigations/evidentiary  actions  against 
262  defendants;  indictments  were  filed  against  176  defendants  and  90  convictions  were 
rendered.  

Concerning  the  ‘showing,  procuring  and  possession  of  pornographic  material  and  minor 
person pornography,’ investigations/evidentiary actions were launched against 85 defendants 
in  2021.  Indictments  were  filed  against  91  defendants.  The  court  convicted  36  individuals. 
The legal framework is fully aligned.  

Efforts are also ongoing to raise awareness among professionals and the general public about 
the  dangers  of  cybercrime  and  its  impact  on  society.  International  cooperation  through 
Eurojust to effectively address cybercrime was further strengthened.  

Serbia  is  a  party  to  the  Council  of  Europe  Budapest  Convention  on  Cybercrime  and  was 
among the 22 countries that signed its Second Additional Protocol  on enhanced cooperation 
and disclosure of electronic evidence on 12 May 2022. In relation to negotiations for a United 
Nations convention on cybercrime based on resolution 74/247 of the United Nations General 
Assembly Serbia demonstrated voting patterns that are divergent from the position taken by 
the EU and its Member States. Serbia did not align with the EU for the UN General Assembly 
vote  on  20  January  2022  to  postpone  the  first  negotiation  session  of  the  ad  hoc 
intergovernmental  committee  of  experts  created  by  the  Resolution  on  countering  the  use  of 
information and communications technologies for criminal purposes (from 17-28 January).  

The Witness  Protection  Unit  fully  provides the  necessary  guarantees to  witnesses to  protect 
them from intimidation and physical threats. Good cooperation has been established between 
all  parties  responsible  for  providing  protection  and  support  to  witnesses  from  investigation 
process to trial. 

Cooperation in the field of drugs  

Institutional set-up and legal alignment  

The national drug strategy expired at the end of 2021. The action plan for 2021 was prepared 
and  is  pending  adoption.  The  Office  for  Combating  Drugs  conducted  an  evaluation  of  the 
expired strategy, which should be used as the basis for drafting the new one.  

The  Serbian  National  Drug  Observatory  is  fully  staffed  and  operational.  Serbia  regularly 
updates and publishes reliable information on new psychoactive substances. The adoption of 
the new rulebook on determining the list of controlled psychoactive substances is underway, 
with  38  newly  added  psychoactive  substances.  The  coordination  role  and  responsibilities  of 
the  Office  for  Combatting  Drugs  are  still  not  clearly  specified  in  relation  to  other  state 
institutions.  Since  December  2020,  a  working  arrangement  has  been  in  force  between  the 
European Monitoring Centre for Drugs and Drug Addiction (EMCDDA)  and the  Office  for 
Combating Drugs, the Ministry of the Interior and the Ministry of Health. Serbia has a well-
established  early  warning  system  (EWS)  to  liaise  with  the  EMCDDA  on  new  psychoactive 
substances and new trends. This also applies to the associated risk assessment procedure and 
the subsequent  control  mechanism for  adding new psychoactive substances to  national  drug 
control legislation.  

The  National  Drug  Observatory  continued  with  implementation  of  its  three  core  functions: 
data collection; monitoring, analysis and interpretation of the data collected and reporting and 
dissemination. Serbia submits data upon request and in the framework of the data collection 
exercises, although data collection, analysis and reporting are yet to be fully aligned with the 
requirements and the methodology of the EMCDDA.  

56 

 
 
The  decree  on  the  manner  of  preserving,  sampling,  storing  and  destroying  psychoactive 
substances  was  adopted  in  August  2021  providing  a  necessary  legislative  framework  for 
psychoactive  controlled  substances,  i.e.  chemical/biological  material  either  seized  or 
confiscated.  However,  the  current  legislation  still  requires  that  the  entire  seized  quantity  be 
kept as material evidence for court proceedings. A national contact point for the transmission 
and  analysis  of  samples  of  controlled  psychoactive  substances  has  not  yet  been  established, 
though the rulebook to regulate its work was adopted in December 2020.  

In  October  2021,  at  fourth  regional  centre  was  set  up  in  Kraljevo  as  part  of  the  Drugs 
Combating Service Department for Coordination, Cooperation and Drugs Abuse Prevention.  

From February 23, 2022, the Drugs combatting Service changed systematisation and created 5 
new jobs positions. The recruitments are ongoing.  

Implementation and enforcement capacity  

In 2021, 30 individuals were convicted for the production, processing, sale or offering for sale 
of  narcotics  under  the  organised  crime  jurisdiction,  and  784  under  general  competence 
jurisdiction. In 2021, a total of 8.5 tonnes of various substances (including 66.6 kg of heroin) 
were confiscated, as well as significant quantities of ecstasy, amphetamine, etc. in pills/pieces. 

In contrast to 2020 when no seized controlled psychoactive substances were destroyed, a total 
of  1.4  tons  of  seized  psychoactive  substances  were  destroyed  in  2021.  The  destruction  of 
seized precursors remains an issue that needs to be regulated by law.  

A software program is in operation that gives daily updates on quantities of seized drugs, and 
provides an e-communication channel on seized drugs with the National Forensic Centre on 
Seized  Drugs.  ‘Security  bags’  were  introduced  to  prevent  any  tampering  with  collected 
evidence. Since January 2021, seized drugs are stored centrally in five containers and in line 
with clear guidelines based on a legal advice.  

The  government  produced  a  number  of  documents  as  a  part  of  the  programme  for  the 
prevention  of  the  use  of  psychoactive  substances,  based  on  scientific  evidence  and  in 
alignment with international standards.  

Serbia made a significant contribution to the development of content for e-lessons for drugs 
laboratories.  The  e-lessons  are  part  of  the  EU  Agency  for  Law  Enforcement  Training 
(CEPOL)’s online training modules.  

In 2021, the Prosecutor’s Office for Organised Crime participated, with Spanish authorities, in 
a joint investigative team, whose work led to the dismantling of the organised criminal group 
dealing with the unauthorised production, transfer and sale of marijuana.  

According to government data, the total value of seized property in 2021 amounts to EUR 1 
million including 7 parking spaces and 2 business premises.  

Fight against terrorism  

Institutional set-up and legal alignment  

The national strategy for the prevention and fight against terrorism expired at the end of 2021.  
A new strategy and action plan has yet to be adopted, covering all forms of radicalisation and 
violent extremism (irrespective of political, religious or ethno-nationalist root causes) in line 
with EU policies. The EU, in view of the revision process of the national CT-CVE Strategy, 
has  provided  support  through  RAN  (Radicalisation  Awareness  Network)  Policy  Support.  A 
baseline study on all forms of radicalisation and violent extremism present in Serbia  has not 
yet been finalised. The mechanism to monitor the implementation and review of the National 
Strategy  for  Prevention  and  Suppression  of  Terrorism  and  the  Action  Plan  is  not  yet  fully 

57 

 
 
functional. The implementation reports on the activities envisaged in the expired 2017-2021 
strategy are drafted but have not yet been adopted.  

Serbia regularly reports on implementation of the bilateral arrangement in the framework of 
the  EU-Western  Balkans  joint  action  plan  on  counter-terrorism  for  the  Western  Balkans. 
Nevertheless, no tangible progress in the implementation can be observed. In December 2021, 
changes  were  made  to  the  composition  of  the  National  Coordination  Body  (NCB)  for  the 
Prevention and Combating of Terrorism.  

The  critical  infrastructure  by-law  on  determining  the  criteria  for  critical  infrastructure 
identification and the manner of reporting on critical infrastructure was adopted in June 2022. 
The remaining two should be adopted shortly.  

The Law on the national database for the prevention and fight against terrorism was adopted 
by Parliament in  June 2021.  The implementation of the law should be closely monitored to 
prevent any potential abuse. The action plan as regards returning foreign terrorist fighters and 
members of their families to the territory of Serbia was adopted in August 2021, local teams 
to be in charge of its implementation are established by the National Coordination Body and 
capacity building activities started in December 2021.  

Further  efforts  to  align  with  the  EU  acquis  on  firearms  are  required,  in  particular  by 
introducing a clear distinction between illicit possession and trafficking of firearms.  

Implementation and enforcement capacity  

In  2021,  there  were  no  convictions  for  terrorism  offences.  Two  persons  were  convicted  for 
‘participation  in  war  or  armed  conflict  in  a  foreign  country’  and  one  person  for  ‘organising 
participation in war or armed conflict in a foreign state.’  

Further progress has been achieved regarding tools and instruments to address radicalisation 
in  prisons,  with  violent  extremist  prisoners-specific  instruments  and  programmes  piloted  in 
selected prisons and prison staff capacity improved.  

Activities  aimed  at  preventing  all  forms  of  radicalisation  and  violent  extremism  including 
those  conducted  in  collaboration  with  civil  society  organisations,  are  still  under-represented 
both  in  the  national  strategic  framework  and  on  the  ground.  Trainings  for  the  members  of 
local  teams  in  charge  of  reintegration,  rehabilitation  and  re-socialization  of  foreign  terrorist 
fighters and their families started in May 2022. Thus far, four local teams are established. A 
mapping  of  groups  most  vulnerable  to  radicalisation  has  not  been  conducted  yet.  Measures 
undertaken to prevent and address violent extremism in sport do not appear yet sufficient. No 
concrete steps have been taken to explore possible connections between right-wing extremism 
and  football  hooliganism.  Collaboration  with  civil  society  organisations  in  P-CVE 
(Preventing and Countering Violent Extremism) activities is still extremely rare. Serbia does 
not  participate  regularly  in  the  meetings  of  the  regional  network  of  national  P/CVE 
coordinators.  The authorities had not  yet  mounted a consistent response  to  far-right  groups’ 
activities.  

Additional  efforts  are  needed  to  investigate  and  prosecute  recruitment  networks  of  foreign 
fighters,  particularly  in  the  context  of  Russia’s  war  in  Ukraine.  In  March  2021,  the  Balkan 
Investigative  Network  (BIRN)  launched  a  database  containing  court  verdicts  (from  2007  to 
2020) handed down in Albania, Bosnia and Herzegovina, Montenegro, North Macedonia and 
Serbia  for  domestic  terrorism  and  for  going  abroad  to  fight  in  the  conflicts  in  Syria  and 
Ukraine. Serbian courts convicted 16 people for going to fight in Ukraine. All the trials ended 
in plea bargains and suspended sentences.  

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Serbia remains a reliable cooperation partner for Europol and Eurojust. In July 2021, Serbia 
appointed  an  additional  contact  point  for  Eurojust  -  a  national  correspondent  for  terrorism 
matters.  Serbia  updates  Europol  on  the  foreign  fighters’  list  and  terrorism  related  incidents 
and  effectively  uses  the  SIENA  for  counter  terrorism  (CT).  Cooperation  with  Europol  has 
enabled  Serbia  to  start  addressing  terrorist  content  online.  Serbia  continues  to  participate  in 
the integrative internal security governance mechanism.  

Intensified  efforts  are  evident  in  the  field  of  integral  control  of  firearms,  particularly  as 
mentioned related to harmonization of legislation with EU  acquis. However, some activities 
within  the  goals  related  to  Western  Balkans  in  the  EU  Action  Plan  on  firearms  trafficking, 
need  to  be  improved,  as  those  on  awareness  raising,  outreach  and  education  on  the  dangers 
and risks related to the misuse, illicit possession, and trafficking of firearms/SALW. Also, the 
national Firearms Focal Point remains to be made fully operational.  

Judicial cooperation in civil, commercial and criminal matters 

Eurojust  and  Serbia  have  an  established  cooperation  in  criminal  matters.  They  signed  a 
cooperation agreement on 12 November 2019 with the Liaison Prosecutor to Eurojust being 
seconded  in  March  2020.  Liaison  Prosecutors  play  an  important  role  in  facilitating  ongoing 
investigations  of  serious  cross-border  organised  crime,  terrorism  etc.,  given  the  increased 
number of cases that have connection with the Western Balkans. In 2021, Serbia acted on 151 
Eurojust  requests  in  127  cases,  which  is  an  increase  of  34  %  compared  to  the  112  cases  in 
2020.  It  requested  assistance  in  24  cases.  The  liaison  prosecutor  took  part  in  3  joint 
investigation teams in 2021, one of those is from 2020. Serbia remained the most requested 
country in the region, and the third most requested third  country in Eurojust’s network. The 
representatives of the Serbian Public Prosecutor’s office participated in coordination meetings 
and  various  events.  Steps  were  taken  to  establish  cooperation  with  the  European  Public 
Prosecutor’s  Office  (EPPO).  According  to  the  2021  EPPO  Annual  Report,  Serbia  was 
involved  in  one  EPPO  case  in  the  first  seven  months  of  operational  activities  of  the  EPPO 
(June-December 2021). 

The new Law on judicial cooperation in criminal matters is still in preparation. In October and 
November 2021, the analyses for administrative/training and budgetary/financial needs were 
finished. Analysis  is  ongoing to  establish how  the legal  framework needs to  be  amended to 
facilitate  cooperation  in  civil  matters.  Reporting  has  started  on  implementation  of  the  2007 
Hague Convention on Child Support,  in  force since February 2021. Serbia’s legislation still 
needs to be amended to bring it into line with the EU acquis.  

In the second half of 2021, Serbia had 3 135 new incoming requests (both civil and criminal) 
and  sent  out  a  total  of  1  373  requests.  Serbia  handled  2  932  incoming  judicial  cooperation 
requests  (both  civil  and  criminal).  Among  those  that  Serbia  dealt  with,  it  replied  to  2 283 
positively, and refused 649. Serbia handled 1 634 outgoing judicial cooperation requests (both 
civil  and  criminal).  Among  those  that  Serbia  dealt  with,  it  replied  to  1  199  positively  and 
refused 435. At the end of 2021, the incoming pending cases remained at 4 703 and outgoing 
pending cases at 3 989. Serbia continued its regular workflow. There are no developments on 
Montenegro’s  long-standing  extradition  request  to  ensure  that  the  former  President  of 
Montenegro serves his prison sentence. 

Legal and irregular migration  

Institutional set-up and legal alignment  

Responsibilities for managing migration are shared between the  Ministry of the Interior, the 
Commissariat  for  Refugees  and  Migration,  and 
the  following  ministries:  Labour, 
Employment,  Veteran  and  Social  Affairs,  Foreign  Affairs,  Justice,  Defence,  Health;  and 

59 

 
 
Education,  Science  and  Technological  Development.  They  are  coordinated  by 
government working group on mixed migration.  

the  

Amendments to the Law on foreigners and the Law on employment of foreigners are pending 
that  one  single 
adoption.  The  amendments  are  aimed  harmonising 
residence/work  permit  is  issued  to  foreign  citizens  and  to  introduce  residence  cards.  Public 
consultation have now been finalised. 

legislation  so 

On  17  March  2022,  the  government  adopted  a  decision  providing  facilitated  access  to  its 
territory  and  granting  temporary  protection  to  all  persons  having  fled  Russia’s  war  of 
aggression  in  Ukraine.  The  decision  allows  access  to  the  right  of  residence,  identity 
documentation,  the  right  to  education,  access  to  the  labour  market  and  health  care  in 
accordance with the regulations governing the rights of foreigners. It is largely in line with the 
EU Temporary Protection Directive, and is a step towards Serbia´s alignment of with the EU 
approach towards the impact of Russia’s war of aggression against Ukraine. A response plan 
for people fleeing the war in Ukraine was adopted by the government and includes measures 
to enable reception and protection. 

The  response  plan  for  the  management  of  mixed  migration  was  updated  in  July  2021.  It 
covers  the  main  priority  areas  such  as  border  management  and  prevention  of  migrant 
smuggling,  access  to  asylum,  reception  and  assistance  to  vulnerable  migrants,  assisted 
voluntary return and reintegration in the countries of origin. 

Enhanced  inter-insitutional  cooperation  is  evidenced  in  the  joint  document  on  needs 
assessment and planning in the area of mixed migration management and asylum in Serbia for 
the  period  2022-2024,  which  outlines  outcomes  related  to  registration,  reception  and  other 
proceedings in migration management. 

In July 2021, the government adopted the  final report on implementation of the strategy for 
combating irregular migration. The report provides recommendations for continuing activities 
and for activities that need to be implemented in the future, since the strategy and action plan 
(2018-2020) have expired. 

Serbia  has  continued  to  satisfactorily  implement  the  EU-Serbia  Readmission  Agreement, 
which is facilitated by implementing protocols concluded with 21 EU Member States. It has 
also  considerably  improved  its  implementation  of  the  third-country  national  provision  since 
2018.  In  2021,  855  Serbian  nationals  were  returned  under  the  readmission  agreements.  The 
largest  number  of  requests  was  submitted  by  Germany,  France  and  Austria.  Out  of  4  683 
requests  concerning  third-country  nationals,  3  886  were  approved  and  890  third-country 
nationals were returned to Serbia. The largest number of requests was submitted by Romania 
for readmission of nationals of Afghanistan, Syria, Pakistan, Bangladesh and India. Regarding 
third-country  nationals,  in  2021,  169  persons  were  returned  from  the  territory  of  Serbia  to 
Bulgaria. 

Serbia  has  11  bilateral  readmission  agreements,  including  with  Bosnia  and  Herzegovina, 
Montenegro  and  North  Macedonia.  Negotiations  to  sign  readmission  agreements  with 
Azerbaijan,  Argentina,  Belarus,  Georgia,  Türkiye  and  Ukraine  are  ongoing.  Since  2017, 
Serbia has made efforts to establish cooperation with countries of origin of irregular migrants 
and  initiatives  have  been  launched  with  Afghanistan,  Algeria,  Iraq,  Iran,  Morocco  and 
Pakistan. As no response was received from them, at the end of 2021, an emergency request 
was sent to the authorities of Pakistan, Iraq, Algeria and Morocco. The Iraqi authorities have 
stated  that  there  is  no  readiness  to  conclude  a  readmission  agreement  and  others  have  not 
responded so  far. A readmisson agreement  was signed  with the United Kingdom in January 
2022. 

60 

 
 
Implementation and enforcement capacity  

The Western Balkan migratory route continues to be firmly established and to exert pressure 
on the entire region. Serbia played an active and constructive role in the management of the 
mixed  migration  flows  towards  the  EU  and  continued  to  cooperate  effectively  with  its 
neighbours and EU Member States. Serbia, supported by the EU, continued efforts to host and 
accommodate substantial numbers of third-country nationals. 

According to the Commissariat for Refugees and Migration, in total 68 308 migrants passed 
through the reception and asylum centres which represents a slight increase in comparison to 
2020  (63  408).  The  length  of  the  average  stay  went  down  to  30  days  (36  in  2020)  and  the 
average  number  of  people  in  the  centres  on  any  one  day  fell  from  5 993  in  2020  to  4 684 
persons  in  2021.  The  Ministry  of  the  Interior  reported  for  the  same  period  12  852  irregular 
migrants apprehended within Serbia in 2021. The main countries of origin were Afghanistan, 
Pakistan and Syria.  

Serbian authorities continued to increase the capacity to accommodate and care for migrants, 
with due consideration for their specific vulnerabilities in relation to COVID-19.  

In  2021,  14  806  migrants  were  prevented  from  entering  at  the  border  and  129  criminal 
charges (127 in 2020) were filed against 190 people (176 in 2020). This includes 7 criminal 
charges  against 46 members of organised criminal  groups, suspected of smuggling irregular 
migrants to Bosnia and Herzegovina, Croatia and Hungary.                                     

According  to  UNHCR,  29  140  refugees  and  migrants  were  pushed  back  to  Serbia  from 
neighbouring  countries  in  2021,  while  213  persons  were  expelled  from  Serbia  to  North 
Macedonia. 

Daily cooperation with Europol’s European Migrant Smuggling Centre takes place at several 
levels,  including  through  EMPACT  (European  Multidisciplinary  Platform  Against  Criminal 
Threats). Serbia participated in several international operations combating irregular migration 
and trafficking in human beings.  

As  regards  accommodation  for  migrants  in  2021,  12  reception/transit  centres  were  fully 
operational with a total capacity of 3 200 places in solid buildings and additional 2 000 places 
for  short  stay  in  Rub  Hall.  Including  the  2  100  beds  in  asylum  centres,  the  total  number  of 
available  beds  was  more  than  7  300,  while  5  centres  were  under  reconstruction  and 
refurbishment.  

As regards detention capacities, the extension of the centre in  Padinska Skela is  ongoing.  It 
will  provide  an  additional  40  places  (bringing  the  total  capacity  to  90  places).  The  mobile 
centre in Dimitrovgrad for registration and very short-term accommodation is used as a closed 
centre  mainly  in  the  context  of  readmission.  In  2021,  the  facility  accomodated  67  foreign 
citizens who returned to Bulgaria when the readmission agreement procedures were complete. 
The mobile centre in Plandiste is still not in use.  

In 2021, the Centres for Social Work issued a total of 1 085 decisions on guardianship. Most 
unaccompanied  or  separated  children  are  hosted  in  the  reception  facilities  while  those  who 
require  special  attention  and  specific  care  are  hosted  in  specialised  institutions.  State-run 
institutions  accommodated  96  unaccompanied  minors  while  28 
social  protection 
unaccompanied  asylum-seeking  children  (UASC)  were  accommodated  in  NGO  shelters. 
Although the legislative  framework for protecting refugee/migrant children is mostly in line 
with  international  standards, limited resources  and implementation  within the social welfare 
system  creates  protection  gaps.  These  include  an  overstretched  guardianship  institution, 

61 

 
 
overstrained case management capacity dependent on external funding, and poor application 
of best interest assessment/determination procedure. 

The  government  has  adopted  the  regulation  on  establishing  the  assisted  voluntary  return 
programme for 2022-2025. With the support of the EU and Member States, the International 
Organisation  for  Migration  (IOM)  is  implementing  the  assisted  voluntary  return  and 
reintegration  (AVRR)  programme  building  the  capacity  of  Serbia’s  return  system  and 
facilitating  access  to  assisted  voluntary  return.  In  2021,  112  people  were  returned  to  their 
country of origin.  

The Ministry of the  Interior  is  in  charge of forced return.  It  did  not  return migrants  to  their 
country  of  origin  in  accordance  with  readmission  agreements.  Serbia  has  considerably 
improved its implementation of the third-country national provision since 2018. Out of 4 683 
requests, 3 886 were approved and 890 third-country nationals were returned to Serbia.  The 
largest  number  of  requests  was  submitted  by  the  Romanian  authorities  for  readmission  of 
Afghani, Bangladeshi, Pakistani and Syrian nationals. 

In 2021, Serbia submitted 752 requests to foreign authorities for the readmission of own and 
third-country nationals, of which 709 requests were approved and 169 persons were returned 
from Serbia. The lack of enforceable bilateral readmission agreements with third countries is 
a serious obstacle , hindering Serbia’s ability to manage returns effectively.  

In respect to migration figures, Afghans remain one of the main nationalities in transit mainly 
to  Romania  and  Hungary.  In  2021,  22  927  Afghans  were  registered  in  the  Governmnet 
reception  facilities,  which  corresponds  to  one  third  of  the  overall  number.  Serbia  did  not 
accept refugees from Afghanistan for resettlement. 

The  Commissariat  for  Refugees  and  Migration  is  operating  without  a  full  complement  of 
staff,  while  staffing  in  the  reception  centres  remains  fully  dependent  on  external  (EU) 
funding.  

Between January and June 2022, Serbia organised 85 forced returns of foreign citizens from 
the shelter for foreigners in Padinska Skela to their country of origin. 

Asylum  

Institutional set-up and legal alignment  

Serbia has the necessary institutions to handle asylum applications. The Asylum Office (AO), 
a separate unit within the Border Police Directorate, is in charge of determining status, while 
appeals against its decisions can be submitted to the Asylum Commission and subsequently to 
the Administrative Court of Appeal. The Asylum Commission is composed of representatives 
from different line ministries, including an independent expert and chaired by a representative 
of the The Ministry of the Interior.  

The  Asylum  Commission  rendered  62  decisions,  but  none  of  them  granted  international 
protection and only 10 appeals were upheld (i.e. the cases were referred back to the AO). The 
third appeal authority, the Administrative Court, rejected all complaints. No applicants  were 
heard by the appeal  authorities. The Asylum Commission  and Administrative Court did not 
exert corrective influence over the decisions of the AO. 

The  Commissariat  for  Refugees  and  Migration  is  responsible  for  the  reception  of  asylum-
seekers and integration of people granted international protection. 

Serbia’s legal framework is largely aligned with the EU acquis. Serbia needs to further adapt 
its legislation notably as regards effective ‘access to the procedure’ (Article 36 of the Law on 
asylum  and  temporary  protection),  ‘appeal  bodies’  (Article  21),  ‘rights  and  obligations  of 

62 

 
 
applicants/persons  under  international  protection’  (Articles  48-73),  ‘free  legal  aid’  (Article 
56), and ‘safe third-country procedure’ (Article 45). 

Implementation and enforcement capacity 

The  number  of  asylum  seekers  remained  very  low  in  2021.  Out  of  the  2 306  persons  who 
expressed  the  intention  to  seek  asylum  and  obtained  a  registration  certificate,  only  174 
officially lodged an asylum application.  

In  2021,  decisions  were  made  on  a  total  of  147  asylum  seekers.  Only  7  asylum  seekers 
received  refugee  status,  7  received  subsidiary  protection,  while  60  had  their  asylum  request 
rejected,  including  51  rejections  on  merit.  In  73  cases,  the  procedure  was  discontinued 
because the applicant absconded.  

With the current number of asylum seekers, the AO has sufficient staff to process the asylum 
requests. The low number of asylum applications relative to declarations of intention highlight 
the  fact  that  Serbia  is  still  a  transit  country.  At  the  same  time,  access  to  and  provision  of 
information  regarding  the  asylum  procedure  needs  to  be  improved,  as  well  as  access  to 
information and legal counselling for asylum seekers at Belgrade International Airport, where 
transit  procedures,  envisaged  by  the  law  on  asylum,  are  not  yet  being  implemented.  People 
undergoing  an  extradition  procedure  need  to  be  given  effective  access  to  asylum  to  prevent 
potential  cases  of  refoulement.  This  includes  harmonisation  of  relevant  legislation  and 
increasing  the  number  of  judges  involved  in  extradition  procedures  or  otherwise  raising 
capacity. 

Further  improvements  were  made  to  the  AO’s  decision-making.  For  example  cases  were 
assessed  on  the  merits  of  claims.  The  quality  of  asylum  decisions  needs  to  be  further 
improved  through  sustainable  quality  assurance  mechanisms  and  harmonisation  of  the 
decision  making  process  to  ensure  similar  outcomes  in  similar  cases.  The  length  of  the 
procedure should be shortened. 

Additional capacity building for the Asylum Commission and the specialisation of judges in 
the Administrative Court could improve legal certainty. There is no state funded free legal aid 
in the asylum procedure. Two translator posts in the AO were filled as of 2021. 

Serbia  has  a  fully  functioning  biometrics  database  and  a  system  for  automated  fingerprint 
identification  (AFIS)  used  within  the  Ministry  of  the  Interior;  both  of  these  are  used  for  
registering irregular migrants and asylum seekers. The preparations for Eurodac in Serbia are 
focusing on internal connectivity of databases, connection to the central Eurodac server and a 
satisfactory level of automatisation to create an efficient registration procedure. Currently all 
police  stations,  but  not  all  border  crossing  points,  in  Serbia  have  access  to  the  automated 
fingerprint  identification  system.  Serbia  has  developed  a  roadmap  for  enabling  future 
operations  in  relation  to  the  Eurodac  and  Dublin  regulations,  containing  steps  on  legal, 
strategic, technical and training related preparations. 

In  accordance  with  the  Law  on  asylum  and  temporary  protection,  the  Commissariat  for 
Refugees  and  Migration  takes  care  of  the  material  conditions  for  receiving  asylum  seekers. 
There are five centres  for asylum with  a total  capacity  of 2 100 places.  There is  one  centre 
hosting persons under temporary protection from Ukraine. 

According to the Commissariat for Refugees and Migration the number of unaccompanied or 
separated  children  accommodated  in  Serbian  reception  centres  decreased  in  2021  to  1  346 
(2 778 in 2020), while their stay remains relatively short. 124 individuals (122 in 2020) were 
accommodated in social welfare institutions for specialised and tailor-made services. 

63 

 
 
The  basic  legal  framework  for  integration  exists,  including  good  practices  of  individual 
integration plans. Secondary legislation in different sectors needs to be harmonised with the 
Law  on  asylum  and  temporary  protection  to  provide  those  granted  international  protection 
with effective access to socio-economic rights. Biometric IDs and earlier access to the labour 
market  could  improve  integration  perspectives.  Travel  documents  for  people  under 
international  protection  are  still  not  issued.  Serbia  should  ensure  that  these  measures  are 
operationalised as a matter of priority. 

The funds needed for integration programmes for people granted asylum are provided in the 
budget on an annual basis. The funds provided for in the 2021 budget were sufficient to cover 
the current needs. 

The second roadmap for cooperation with the European Union Agency for Asylum (EUAA) 
is being implemented. Serbia participated as  an  observer in the reception network organised 
by  the  EUAA.  A  European  migration  liaison  officer,  responsible  for  the  entire  region, 
operates from Belgrade. 

Visa policy 

Serbia’s visa policy is not fully aligned with the EU list of third countries whose nationals are 
visa exempt or visa-required. The following countries that are on the EU list of visa required 
countries  enjoy  visa-free  travel  to  Serbia:  Armenia,  Azerbaijan,  Bahrain,  Belarus,  Bolivia, 
Burundi,  China,  Cuba,  Guinea  Bissau,  India,  Indonesia,  Jamaica,  Kyrgyzstan,  Kuwait, 
Kazakhstan, Mongolia, Oman, Qatar, Russia, Suriname, Tunisia and Türkiye. 

Serbia continued to implement relevant measures to prevent the abuse of the visa-free system 
it has with the EU under the post-visa-liberalisation process. Serbia did not take concrete steps 
to further align with EU visa policy. The Commission’s visa suspension mechanism report of 
August 2021 recommended further alignment of Serbia’s visa policy with the EU lists of visa-
required  third  countries,  in  particular  for  those  third  countries  which  present  irregular 
migration  or  security  risks  for  the  EU  which  has  raised  increased  concerns  during  the 
reporting period. The report also recommended that further efforts are needed in the areas of 
integrated  border  management,  anti-money  laundering,  counter-terrorism  and  in  the 
prevention and fight against corruption and organised crime. 

The  visa-free  regime  with  the  EU  continued  to  be  smoothly  implemented.  The  number  of 
first-time asylum applications from Serbia in the EU and Schengen-associated countries was 2 
090  in  2021  (1  770  in  2020).  In  the  first  five  months  of  2022,  the  number  of  first-time 
applicants was 905. The Serbian visa issuing system is partially in line with the EU visa code. 
For further compliance, Serbia has to adjust visa procedures and visa regimes, to bring them 
into  line  with  relevant  EU  regulations.  The  visa  information  system  is  operational  in  all 
diplomatic missions  and consular posts. The issuing of visas  at  the  national border  crossing 
points is exceptional. The Commission’s fourth report under the visa suspension mechanism 
of August 2021 concluded that Serbia continues to meet the visa liberalisation benchmarks.  

Schengen and external borders  

Institutional set-up and legal alignment 

The border police is a specialised civilian body and is part of the General Police Directorate 
within  The  Ministry  of  the  Interior.  It  has  eight  regional  centres  and  47  local  stations 
responsible for border surveillance as well as 40 stations for border control at the 94 border 
crossing points. The legal framework for border control is largely aligned with the EU acquis. 
Continued  efforts  are  needed  on  further  legal  alignment  and  implementation  of  EU 
requirements. Issues relating to national borders are regulated in the Law on border control. In 

64 

 
 
2021, a decree was adopted on the conditions that must be met by border crossings in terms of 
premises,  devices,  equipment,  infrastructure,  number  of  employees  and  other  material  and 
technical means necessary for the functioning of border crossings. 

A Schengen action plan was produced and needs to be adopted by the government. The new 
2022-2027  integrated  border  management  (IBM)  strategy  2022-2027  and  a  new  action  plan 
was  adopted  in  August  2021.  The  strategy  defines  a  new  concept  of  integrated  border 
management under consideration of the new EU policy on IBM and includes border control 
and  border  checks  and  State  border  surveillance  (green  border  surveillance).  Following 
adoption,  the  new  Coordination  Body  for  monitoring  the  IBM  Strategy  and  Action  Plan 
should  be  established.  Coherence  between  strategic  documents  in  the  border  control  area 
needs to be achieved. 

Implementation and enforcement capacity 

In 2021, 244 graduates from the Centre for Basic Police Training were admitted to the Border 
Police  Directorate.  The  Border  Police  Administration  is  regularly  planning  professional 
training  for  border  police  officers,  who,  after  the  successful  completion  of  the  training,  are 
assigned to its organisational units. A common training programme and common risk analysis 
in  accordance  with  the  common  integrated  risk  analysis  model  methodology  (CIRAM)  is 
implemented at national level. Further efforts are needed at regional and local level regarding 
the staffing and training of risk analysts.   

Significant  investment  is  needed  in  human,  financial  and  technical  resources  for  border 
control  (second-line  checks,  border  surveillance  and  equipment  for  the  detection  of  forged 
documents),  and  in  infrastructure  at  border  crossing  points  in  line  with  Schengen 
requirements. Serbia should also increase the capacity of the border police information system 
to  meet  the  latest  EU  requirements  and  to  achieve  interoperability  with  EU  border 
management  information  systems.  Serbia  needs  to  intensify  its  efforts  to  implement  the 
Directive on the obligation of carriers to communicate passenger data. 

Inter-agency  cooperation  is  satisfactory,  e.g.  between  border  police  and  customs  at  border 
crossing  points.  Further  improvements  are  needed  on  information  exchange  through  mutual 
access to databases and a formalised and secure information exchange system.  

Serbian  authorities  have  established  solid  cooperation  links  with  the  European  Border  and 
Coast Guard Agency (Frontex). In May 2021, the status agreement with the EU entered into 
force allowing Frontex to deploy teams from the European Border and Coast Guard standing 
corps at the Serbian-Bulgarian border. Joint operations started on 16 June 2021.  

Based  on  the  Convention  on  Police  Cooperation  in  Southeast  Europe,  The  Ministry  of  the 
Interior  established  a  cooperation  with  all  neighbouring  countries.  Joint  patrols  with 
neighbouring countries were suspended in April 2020 due to COVID-19 and started again in 
2021  with  Hungary,  North  Macedonia  and  Romania.  Information  exchange  takes  place 
through  joint  contact  centres.  Serbia  receives  capacity  building  and  border  management 
assistance from EU Member States.  

In  2021,  a  total  of  27  control  activities  were  carried  out  in  the  organisational  units  of  the 
Border  Police  Administration.  Disciplinary  proceedings  for  serious  violations  were  initiated 
against 5 police officers from the Border Police Administration, 2 from the Regional Border 
Police  Centre  towards  Hungary  and  3  from  the  Regional  Border  Police  Centre  towards 
Croatia in connection to corruption. The Internal Control Sector filed criminal charges against 
police  officers  suspected  of  the  criminal  offence  of  abuse  of  official  position  under  Article 
359  of  the  criminal  code.  A  new  preventive  anti-corruption  mechanism  was  adopted  and 

65 

 
 
training  courses  for  participants  of  all  IBM  agencies  were  held.  Leaflets  on  anti-corruption 
awareness were distributed at all border crossing points (including the airport). 

The Interim IBM common crossing-points with Kosovo continue to be operational. Only two 
of  the  six  permanent  common  crossing  points  (CCPs)  have  been  established  (Merdare  and 
Mutivodë/Mutivode)  (See  Section  5  on  the  normalisation  of  relations  between  Kosovo  and 
Serbia). In March 2022, Serbia agreed to open both entry and exit lanes at CCP Merdare and 
move  their  authorities  into  the  new  premises  at  CCP  Mutivode.  Both  EU-funded  CCPs  are 
now fully operational. Serbia still has not established permanent CCPs to be hosted by their 
side  (Jarinje  /Rudnica,  Končulj-Dheu  i  Bardhë  and  Depce  /Muçibabë),  which  led  to  a 
suspension  of  EU  funds  for  this  project  in  July  2018.  In  addition,  Serbia  needs  to  engage 
constructively  to  enable  the  construction  of  the  third  CCP  hosted  by  Pristina  in  northern 
Kosovo  at  Tabavije  /Bërnjak-  Tabalije/Brnjak.  Additional  efforts  are  needed  from  Serbia  to 
close  alternative  roads  and  by-passes  to  ensure  exclusive  use  of  official  crossing  points  for 
goods and persons entering into or leaving Kosovo.  

2.3 ECONOMIC CRITERIA 

In  line  with  the  conclusions  of  the  European  Council  in  Copenhagen  in  June  1993,  EU 
accession  requires  the  existence  of  a  functioning  market  economy  and  the  capacity  to  cope 
with competitive pressure and market forces within the Union. 

Economic  governance  has  become  even  more  central  in  the  enlargement  process  in  recent 
years.  The  Commission’s  monitoring  takes  place  in  two  processes:  the  Economic  Reform 
Programme exercise and the below assessment of compliance with the economic criteria for 
accession.  Each  enlargement  country  prepares  an  Economic  Reform  Programme  (ERP) 
annually, setting out a medium-term macro-fiscal policy framework and a structural reform 

66 

Table 4.1:201920202021Serbia - Key economic figuresGDP per capita (% of EU-27 in PPS)1)40414344Real GDP growth 2.24.3-0.97.4Economic activity rate of the population aged 15-64 (%), total1)65.066.966.470.3      female57.059.759.263.0      male73.074.073.677.5Unemployment rate of the population aged 15-64 (%), total1)17.410.99.511.4      female18.411.59.912.4      male16.610.49.210.6Employment of the population aged 15-64 (annual growth %)4.02.4-0.22.6Nominal wages (annual growth %)3.110.59.49.4Consumer price index (annual growth %)2.91.81.64.1Exchange rate against EUR119.0117.9117.6117.6Current account balance (% of GDP)-4.6-6.9-4.1-4.4Net foreign direct investment, FDI (% of GDP)5.17.76.36.8General government balance (% of GDP)-2.4-0.2-8.0-4.1General government debt (% of GDP)63.052.857.857.1Notes: 1) EurostatSource: national sources2013-18 average 
 
 
 
agenda aimed at ensuring competitiveness and inclusive growth. The ERPs are the basis for 
country-specific  policy  guidance  jointly  adopted  by  the  EU  and  the  Western  Balkans  and 
Türkiye at ministerial level each year. 

2.3.1.  The existence of a functioning market economy 

Serbia  is  between  a  moderate  and  a  good  level  of  preparation  and  has  made  some 
progress in developing a functioning market economy. After a relatively mild contraction in 
2020, the Serbian economy rebounded strongly in 2021 followed by some deceleration in the 
first half of 2022. After decreasing in 2020, external imbalances started to widen in the second 
half of 2021, in particular due to high energy imports. Consumer price inflation surged from 
the second half of 2021, mostly driven by energy and food prices, which led the central bank 
to start tightening its policy stance. Banking sector stability was preserved and lending growth 
remained  robust  notwithstanding  the  phasing-out  of  pandemic-related  liquidity-enhancing 
measures.  The  economic  rebound  and  the  reduction  of  fiscal  support  measures  helped  to 
substantially  improve  the  budget  balance  in  2021,  despite  a  further  increase  in  capital 
spending. A slight increase in the unemployment rate in 2021 reflected in particular a rising 
labour  market  participation  in  the  context  of  the  economic  recovery  from  the  COVID-19 
crisis.   

There has been some progress with tax administration reforms and the privatisation of state-
owned  enterprises.  However,  other  major  reforms  of  public  administration  and  of  the 
governance of state-owned enterprises (SOEs) continued to advance only slowly, prolonging 
long-standing  inefficiencies  and  increasing  fiscal  pressure.  There  has  been  no  progress  in 
strengthening the fiscal rules to anchor fiscal policy. The state retains a strong footprint in the 
economy and the private sector is underdeveloped and hampered by weaknesses in the rule of 
law,  in  particular  regarding  the  tackling  of  corruption  and  judicial  inefficiency,  and  in  the 
enforcement  of  fair  competition.  Last  years’  recommendations  have  been  partially 
implemented. 

In the coming year, Serbia should in particular:  

  provided  the  economic  recovery  is  well  entrenched,  plan  a  further  gradual  return  to  a 
deficit close to balance in the 2023 budget and in the medium-term fiscal framework;  

  adopt a credible and binding system of fiscal rules for entry into force in 2023; 

  contain  overall  spending  on  wages  as  a  percentage  of  GDP  and  take  preparatory  steps 

towards an appropriately designed public sector wage system reform; 

  implement the time-bound action plan for the deployment of the new SOE ownership and 
management strategy to improve the governance of SOEs and reduce related fiscal risks. 

Economic governance 

The  authorities  have  remained  committed  to  macroeconomic  stability  and  economic 
reforms.  The government  took  a series of additional  fiscal  measures in  2021 to  support the 
rebound from the pandemic. Fiscal measures could however have  been more targeted in the 
later support packages to preserve fiscal space. Structural reform implementation picked up in 
2021 after having recorded a slow-down during the COVID-19 crisis. Weaknesses remain in 
the  fiscal  governance  framework,  the  business  environment,  public  administration  and  tax 
administration, although some progress has been made in the latter area, especially as regards 
the e-fiscalisation and e-invoicing reforms. There also remain weaknesses in the way the state 
intervenes  and  manages  its  presence  in  the  economy,  in  particular  concerning  state-owned 
enterprises (SOEs) as important reforms are delayed. Serbia has started the implementation of 

67 

 
 
a  new  non-disbursing  policy  coordination  instrument  (PCI)  with  the  International  Monetary 
Fund (IMF) running from July 2021 to December 2023. The policy guidance jointly agreed at 
the  July  2021  Economic  and  Financial  Dialogue  between  the  EU  and  the  Western  Balkans 
and Türkiye has been partially implemented. 

Macroeconomic stability 

a 

the 

2021, 

After a strong rebound in 2021, economic activity  decelerated in the first half of 2022. 
GDP  growth  averaged  3.6 
%  in  2016-2019,  followed 
by 
relatively  mild 
contraction  by  0.9  %  in 
2020,  partly  thanks  to  a 
substantial  fiscal  stimulus. 
Serbian 
In 
economy 
rebounded 
strongly  by  7.4  %  to  well 
its  pre-COVID-19 
above 
crisis 
level.  Real  GDP 
growth  was  mostly  driven 
private 
by 
gross 
consumption 
fixed  capital  formation,  slightly  offset  by  a  negative  contribution  of  net  exports  to  growth. 
The  rebound  of  private  consumption  was  particularly  supported  by  a  new  fiscal  stimulus 
programme worth around 2 % of GDP, accompanied by additional liquidity support measures 
of  around  0.6  %  of  GDP.  On  the  supply  side,  the  recovery  was  chiefly  driven  by  services, 
construction and industry. In the first quarter of 2022, GDP expanded by 4.3 % y-o-y, mostly 
driven by private consumption and higher inventories, followed by a 3.9 % y-o-y expansion in 
the second quarter, mostly on the back of private consumption and government consumption 
Russia’s war of aggression against Ukraine is set to hit Serbia’s economy via various mostly 
indirect  transmission channels,  in  particular via even higher  energy  and food prices fuelling 
inflation, reducing disposable incomes and private consumption. External trade, foreign direct 
investment  and  remittances  are  also  set  to  be  affected  due  to  war-induced  lower  growth 
prospects  in  Serbia’s main  EU  trading partners as  well as  new uncertainties and restrictions 
along Serbia’s value-chains. After remaining broadly unchanged for most of the last decade, 
the  income  gap  with  the  EU  has  slightly  narrowed  in  recent  years  as  per  capita  GDP  in 
purchasing power standards rose to 44 % of the EU average in 2021 from 41 % in 2019 and 
39 % in 2009. 

stronger 

and 

68 

 
 
After a decrease in 2020, the current account deficit has widened since the second half of 
2021. Between 2016 to 2019, the current account deficit widened from around 3 % to close to 
7 % of GDP, driven by growing merchandise trade deficits. It decreased substantially to 4.1 % 
of  GDP  in  2020  mainly  due  to  lower  reinvested  earnings  and  a  lower  goods  trade  deficit 
(mainly  reflecting  lower  energy  imports  combined  with  relatively  resilient  exports, 
particularly  supported  by  agricultural  and  mining  exports).  In  the  second  half  of  2021,  the 
external  deficit  started  to  widen  again,  reflecting  in  particular  higher  energy  imports  and  a 
rebound in reinvested earnings and dividends. As these effects were largely offset by a higher 
surpluses  on  the  secondary  income  account  (reflecting  in  particular  a  rebound  in  workers’ 
remittances) and in the services trade balance, the deficit was contained at 4.4 % of GDP in 
2021,  and  was  more  than  fully  covered  by  net  inflows  of  foreign  direct  investment  that 
reached 6.8 % of GDP in 2021 (after 6.3 % of GDP in 2020). Increased energy imports, partly 
related  to  lower  domestic  electricity 
production 
in 
thermal  power  plants,  and  the  continued 
increase in energy prices led to a further 
widening of the current account deficit to 
9.6  %  of  the  GDP  in  the  first  half  of 
2022.  After  a  gradual  decline  from  73.4 
%  in  2015  to  61.5  %  in  2019,  external 
debt to GDP increased to 66.3 % in 2020 
and  68.5  % 
in 
particular high public financing needs in 
2020-2021.  Official  foreign  exchange 
reserves have remained at more than twice the level of short-term external debt and covered 6 
months of imports of goods and services in 2021 and, despite falling in early 2022, they still 
covered  4.5  months  of  imports  in  June  2022.  High  energy  prices  and  substantial  electricity 
imports in 2022 are expected to continue to put pressure on foreign exchange reserves. 

following  breakdowns 

in  2021,  reflecting 

Consumer price inflation surged in the second half of 2021, gradually increasing further 
to around 12 % year-on-year in the first half of 2022. Following a track record of low and 
rather stable inflation for seven  consecutive  years, consumer price inflation rose strongly in 
2021 to an annual average of 4 %. This was the result of a steady surge in the second half of 
the  year,  with  the  inflation  rate  reaching  7.9  %  year-on-year  in  December,  well  above  the 
upper end of the central bank’s target tolerance band of 3 % ±1.5 pps. Inflation continued to 
rise further in the first half of 2022, reaching 11.9 % year-on-year in June. The strong increase 
in  headline  inflation  was  mostly  driven  by  food  and  energy  prices  while  core  inflation 
(excluding energy, food, alcohol and tobacco) rose more moderately to 3.5 % by December 
2021,  but  gradually  accelerated  to  5.5  %  in  April  2022,  6.7  %in  June.  The  central  bank 
reacted to rising inflation by tightening its policy stance, including by raising the key policy 
rate  by  a  total  of  150  bps  between  April  and  June  2022,  thereby  bringing  it  to  2.5  %,  i.e. 
above  its  pre-pandemic  level.  To  stabilise  the  exchange  rate  in  the  face  of  alternating 
appreciation  and  depreciation  pressures,  the  central  bank  continued  to  apply  its  policy  of 
frequent  interventions  on  both 
sides  of  the  foreign  exchange 
market. 

The economic rebound and the 
gradual  phasing  out  of  fiscal 
helped 
support  measures 
the 
substantially 

improve 

69 

020406080-10-505201620172018201920202021Graph 4.3: Serbia -Fiscal developmentsPrimary balance (lhs)Interest (lhs)GG balance (lhs)Public Debt (rhs)Source: National sources% ofGDP 
 
budget  balance  in  2021,  notwithstanding  strong  increases  in  capital  expenditure  and 
substantial liquidity  support  to  Srbijagas.  Prudent  fiscal  policies  in  pre-COVID-19  led  to 
budget  surpluses  in  2017  and  2018  and  a  fiscal  outturn  close  to  balance  in  2019,  which 
created fiscal space for sizeable crisis mitigation in 2020 and 2021. Following a deficit of 8.0 
% of GDP in 2020, the general government deficit almost halved to 4.1 % of GDP in 2021 as 
revenue was boosted by the economic rebound. The deficit was thus close to the original 2021 
target of 3.0 % and substantially below the revised targets of 6.9 % and 4.9 % of GDP in the 
April and October amending budgets, despite very substantial new COVID-19 crisis support 
packages,  as  well  as  increased  healthcare  and  capital  spending  and  substantial  liquidity 
support to Srbijagas at the end of the year. The actual direct fiscal cost of the additional 2021 
support  measures,  which  included  wage  subsidies,  lump-sum  cash  transfers  to  all  adults, 
benefits to the unemployed, sectoral support to hospitality and transport companies, as well as 
liquidity provision through guarantees, amounted to 2.2 % of GDP, much below the 7.1 % of 
GDP  in  discretionary  fiscal  support  provided  in  2020.  The  fiscal  support  could  have  been 
better  targeted  to  the  most  vulnerable  households  and  firms  in  order  to  improve  its  cost-
effectiveness  while  saving  fiscal  space  to  address  potential  further  needs  at  a  later  stage. 
Notwithstanding the crisis context, capital spending further increased from 5.4 % of GDP in 
2020  to  a  record  level  of  7.5  %  of  GDP  in  2021,  also  impacted  by  a  further  increase  in 
defence  spending,  and  was  budgeted  at  7.3  %  of  GDP  in  2022.  The  2022  budget  targets  a 
further reduction of the  fiscal  deficit to  3 % of GDP  as  confirmed by the fiscal  strategy for 
2023-2025 adopted in June 2022. 

Public debt started to fall in 2021 following a moderate crisis-induced increase in 2020. 
The general government debt-to-GDP ratio had fallen from a peak of over 70 % in 2015 to 53 
% in 2019 and thus moved closer to the ceiling of 45 % laid down in the fiscal  rules of the 
budget  system  law.  It  increased  to  57.8  %  in  2020,  as  a  result  of  the  high  crisis-induced 
deficit,  and  broadly  stabilised  at  57.1  %  in  2021,  supported  by  the  strong  rebound  of  real 
growth  and  higher  inflation.  To  cover  financing  needs,  the  debt  management  office 
succcessfully tapped international markets in 2021 by issuing three major Eurobonds worth a 
total EUR 2 750 million (including a EUR 750 million green bond) at favourable conditions 
in  March  and  September.  Financing  conditions  deteriorated  in  the  first  half  of  2022  as 
indicated by low subscription rates at auctions of government debt on the domestic market.   

Fiscal  governance  reforms  have  progressed  unevenly.  Revenue  collection  surpassed 
expectations  in  the  two  years  preceding  the  COVID-19  crisis  and  has  performed  relatively 
well  throughout  the  crisis  and  in  the  2021  rebound,  supported  also  by  continuous 
improvements  in  the  tax  administration.  Progress  in  addressing  weaknesses  in  budget 
planning and implementation has been slow. Despite government commitments, public wage 
increases exceeded nominal GDP growth in three consecutive years, leading to an increase in 
the wage bill from 9.0 % of GDP in 2017 to 10.5 % in 2020. The share decreased to 10.0 % in 
2021 thanks to very high nominal GDP growth. The wage system reform has been postponed 
until  2025.  However,  a  new  central  electronic  public  wage  and  employment  registry  is 
planned to be rolled out to most of the public sector (excluding military, security and higher 
education  institutions)  by  end-2023  as  an  important  preparatory  step.  In  the  absence  of  a 
comprehensive  wage  system  reform,  ad-hoc  extraordinary  increases  for  some  categories  of 
the public sector (such as the security forces) have been implemented.  

While  budget  adoption  broadly  followed  normal  legislative  procedures,  the  reform  of 
fiscal rules is still pending. While the two 2021 amending budgets were adopted via urgent 
procedures, the 2022 budget  was  adopted in  line with  the normal  legislative procedure,  that 
included  a  series  of  parliamentary  debates.  The  Fiscal  Council  was  also  consulted  in  the 
process. The system of fiscal rules remains weak as it is not sufficiently binding and relevant 

70 

 
 
for policy-making. In particular, the annual ceiling for the overall general government fiscal 
deficit does not appear to be sufficiently transparent and operational. Moreover, there are no 
adequate sanctions in  case of non-compliance nor effective enforcement mechanisms. Work 
on  strengthening  the  fiscal  rules  has  been  postponed  by  another  year  in  line  with  the  2021-
2023 PCI programme with the IMF. The new fiscal rules are now expected to be finalised by 
end-October 2022 to be applied in the 2023 budget law. 

The  macroeconomic  policy  mix  has  remained  appropriate. 
It  helped  sustain 
macroeconomic stability and supported the resilience of economic activity. The prudent fiscal 
policy  and  cautiously  supportive  monetary  policy  before  the  crisis  ensured  the  policy  space 
for sizable fiscal and monetary support to mitigate the impact of the COVID-19 crisis while 
maintaining  macroeconomic  stability.  The  acceleration  of  economic  reforms  and  their  full 
implementation  remain  key  to  ensure  a  sustainable  recovery  and  further  strengthen  the 
economy’s  potential  in  terms  of  competitiveness  and  inclusive  growth,  thereby  supporting 
real convergence with the EU.  

Functioning of product markets  

Business environment  

Serbia has slowly improved its business environment as a number of heavy procedures 
have been simplified and costs reduced. In 2021, the number of registrations of new legal 
business entities rose by 5.0 %, while the registrations of solo entrepreneurs rose by 15.3 % 
(but  still  remaining  7.5  %  below  the  2019  figure).  In  2021,  5.7  %  fewer  legal  entities  were 
deleted  from  the  register  than  in  2020.  The  implementation  of  the  action  plan  for  the 
simplification  of  administrative  procedures  further  advanced  through  the  optimisation, 
digitalisation or discontinuation of administrative procedures as well as the establishment of a 
single  public  register  of  administrative  procedures.  However,  administrative  procedures  are 
still numerous and burdensome especially for small and medium enterprises (SMEs). The law 
on foreign exchange transactions remains widely considered by the business community to be 
too restrictive in its design and unpredictable in its application. 

The  institutional  and  regulatory  environment  is  still  challenging.  While  the  number  of 
urgent parliamentary procedures decreased and the number of public consultations increased, 
public-private dialogue is  yet  to  be systematically mainstreamed in  the development  of new 
legislation  across  all  government  institutions.  Business-related  laws  and  implementing 
legislation/decrees  are  not  always  duly  communicated  and  announced 
to  relevant 
stakeholders,  with  many  still  adopted  with  very  tight  consultation  deadlines,  leaving 
insufficient  time  for  business  to  contribute  to  policy  preparation  and  notably  to  prepare  for 
changes affecting their operations. The newly established centralised website for consultation 
procedures  should  make  the  consultation  process  more  accessible  and  inclusive.  Effective 
communication  on  this  new  tool  is  therefore  crucial  as  well  as  the  introduction  of  a 
mechanism to ensure inter-institutional coordination for effective use of the platform by line 
ministries  and  reinforced  monitoring  and  evaluation  of  the  consultation  process  to  better 
measure  the  level  of  engagement  of  stakeholders.  Delays  in  adopting  secondary  legislation 
continue to hamper the implementation of adopted laws. In general,  contract enforcement is 
weak,  and  the  courts  that  enforce  property  rights  remain  overburdened.  Moreover,  the 
business environment remains hampered by red tape, political interference and limited public 
administration  efficiency.  Serbia  ranked  96th  out  of  180  countries  in  the  2021  corruption 
perception index compiled by Transparency International, thus continuing the negative trend 
of  deteriorating  rankings  compared  to  87th  in  2018,  91st  in  2019  and  94th  in  2020.  Fair 
competition  continues  to  be  negatively  affected  by  the  large  informal  economy.  The 
operational  independence  of  the  commission  for  state-aid  and  competition  remains  to  be 

71 

 
 
substantiated  by  a  consistent  and  transparent  track  record,  whereas  the  transparency  of  the 
work  of  the  commission  for  protection  of  competition  remains  to  be  strengthened  and 
decisions should be systematically published.  

Some measures were taken to fight the informal economy. The entry into force of the Law 
on  fiscalisation  has  initiated  the  introduction  of  the  e-fiscalisation  system,  which  allows  for 
real-time tracking of the issuance of fiscal receipts, thereby enabling the Tax Administration 
to better monitor and counter tax evasion. Taxpayers fully adopted the e-fiscalisation system 
by 1 May 2022. The Law on e-invoicing, adopted in April 2021, entered into force on the 1 
January  2022  and  envisages  a  phased  introduction  of  electronic  invoicing,  achieving  full 
enforcement by 1 January 2023. The law is expected to reduce operating costs for companies 
and increase transparency. The single information system for inspections (eInspector), which 
aims to ensure better coordination among various inspections, standardisation of their work, 
and  better  availability  of  data,  has  continued  to  function  with  44  inspectorates  using  the 
system. Further improvements in anti-money laundering/combating the financing of terrorism 
are ongoing. 

State influence on product markets  

State  presence  in  the  economy  remains  large  amid  persistent  governance  weaknesses. 
The  government  started  implementation  of  the  2021-2027  strategy  on  state  ownership  and 
management of state-owned enterprises (SOEs) which aims at more sustainable and efficient 
management  of  SOEs.  The  strategy  is  incorporated  as  a  reform  measure  in  the  ERP  2022-
2024.  A  unified  public  database  of  companies  in  (partial)  state  ownership  has  been 
established, covering 314 entities. Classification of the companies according to certain criteria 
and  decisions  on  ownership  are  expected  as  further  steps  of  the  strategy  implementation. 
Governance of state-owned enterprises however remains under strong political influence. This 
includes  the irregular appointment of acting managers for extended periods instead of using 
the standard nomination process. The financial performance of SOEs may imply the build-up 
of  fiscal  risks,  e.g.  in  the  case  of  strongly  rising  debt  levels  profiting  from  implicit  state 
guarantees, which is particularly pertinent in the energy sector. Srbijagas has received around 
EUR 500 million in budget loans in late 2021 and early 2022, while EPS is estimated to have 
suffered  losses  of  up  to  EUR  400  million  from  October  2021  to  March  2022.  In  December 
2021, the CEO of EPS resigned following a power supply crisis. Overall, SOEs still account 
for  around  a  sixth  of  value  added  and  formal  employment  in  Serbia.  The  share  of 
administered prices remained broadly unchanged, at around 20 % of the consumer basket. In 
view  of  strongly  rising  food  and  energy  prices,  the  government  has  introduced  a  series  of 
temporary price caps for basic food and fuel prices since the end of 2021/early 2022, which 
have regularly been prolonged or adjusted throughout  the first  half of 2022.  Despite a solid 
legal  framework  on  public  procurement  and  state  aid  control,  consistent  implementation  of 
these policies remains weak. Although reported state aid has decreased from 0.8 % of GDP in 
2019 to 0.6 % in 2020, the latter provisional figure excludes COVID-19-related state-aid of 
around 3.3 % of GDP and the track record of enforcing state aid rules is still uneven, while 
transparency is also lacking.  

Privatisation and restructuring  

Privatisation  of  SOEs  recorded  some  progress  while  the  restructuring  of  key  utility 
companies  is  advancing  slowly.  Six  companies  were  privatised  in  the  course  of  2021, 
including  the  petrochemical  company  Petrohemija,  bringing  the  number  of  SOEs  yet  to  be 
addressed through either bankruptcy or privatisation down from 68 to 62. The implementation 
of the strategy for banks with state ownership continued. The state remains in control of key 
entities in the insurance sector. The implementation of Serbia’s action plan on gas unbundling 

72 

 
 
adopted  in  May  2021  is  progressively  delayed.  While  some  steps  of  the  action  plan  were 
implemented  regarding  the  unbundling  of  Srbijagas  as  planned,  the  certification  of 
Transportgas  Srbija  as  well  as  opening  of  the  gas  market  at  the  wholesale  level  and  third-
party  access  to  the  gas  transmission  system  are  delayed.  The  decarbonisation  of  the  energy 
sector  remains  a  big  challenge  for  the  government.  Serbia  is  currently  working  on  four 
strategic  documents  in  parallel:  the  national  integrated  energy  and  climate  plan,  an  energy 
strategy, a programme for the implementation of the energy strategy and a study diagnostic of 
just transition.  

Functioning of the financial market  

Financial stability 

Financial  stability  has  been  maintained.  Supported  by  crisis-mitigation  measures  and  the 
economic  rebound,  macro-prudential  indicators  remained  sound.  The  banking  sector’s 
aggregate  capital  adequacy  (regulatory  capital  to  risk-weighted  assets)  was  at  20.8  %  at  the 
end of 2021, well above the minimum of 8 % set by the central bank. Liquidity remained high 
at  37.7  %  (share  of  liquid  assets  to  total  assets)  and  49.6  %  (share  of  liquid  assets  to  total 
short-term  liabilities)  respectively  at  the  end  of  2021,  also  supported  by  the  central  bank’s 
liquidity-enhancing measures. The profitability of the banking system improved slightly with 
an increase in return on assets (1.2 % at the end of 2021 vs 1.1 % at the end of 2020) and in 
return on equity (7.8 % at the end of 2021, compared to 6.5 % at the end of 2020). The non-
performing loan (NPL) ratio decreased by 0.5pps year-on-year to 3.4 % in the first quarter of 
2022. The authorities have continued to address legacy NPLs in the portfolio of the Deposit 
Insurance  Agency.  The  central  bank  and  the  government  continued  to  implement  their 
dinarisation  strategy  to  boost  the  use  of  the  local  currency  in  the  banking  system.  Despite 
uncertainties related to the crisis, the share of dinar-denominated loans and deposits of both 
households and firms increased in 2021 (to 38.3 % and 40.3 % respectively).  

Access to finance  

Access  to  finance  was  supported  by  COVID-19  crisis-mitigation  measures.  Foreign-
owned  banks  continued  to  dominate  the  financial  system,  holding  around  six  sevenths  of 
banking system assets. The continuing consolidation of the banking system via mergers and 
acquisitions has further reduced the number of banks from 24 at the end of June 2021 to 22 at 
the end of June 2022. Favourable financing conditions, resulting inter alia from still relatively 
low interest  rates  and the  government-backed  guarantee schemes, have supported  growth in 
lending. Credit activity expanded by 5.1 %, 9.9 %, 13.9 % and 15.8 % for corporate loans and 
9.2 %, 10.8 %, 10.7 % and 9.8 % for households y-o-y in September 2021, December 2021, 
March  2022  and  June  2022,  respectively.  Credit  growth  was  mostly  due  to  liquidity  and 
working  capital  loans  and  housing  loans  respectively.  Non-banking  financial  institutions 
continue  to  be  largely  absent,  the  legal  framework  for  the  leasing  sector  has  still  not  been 
reformed  and  there  was  no  progress  in  establishing  the  legal  framework  for  microfinance 
institutions.  The  new  Law  on  digital  assets  creating  a  regulatory  framework  for  the  use  of 
cryptocurrencies and digital tokens in Serbia became effective at the end of June 2021. 

Functioning  of  the  labour 
market 

The 
labour  market  has 
recovered  from  the  impact 
COVID-19 
of 
pandemic,  but  structural 
problems  remain.  Strong 

the 

73 

455565750102030201620172018201920202021Graph 4.4: Serbia -Labour market trends(15-64 age group)Unemployment rate (lhs)Participation rate (rhs)Employment rate (rhs)Source: EUROSTAT and StatisticalOffice (SORS) 
 
economic growth  in  the years before the pandemic was reflected in  continuously improving 
labour market indicators. Thus, prior to the COVID-19 crisis, activity and employment rates 
increased  steadily,  while  the  unemployment  rate  decreased.  As  an  increased  number  of 
discouraged  workers  left  the  labour  force  in  the  early  phases  of  the  pandemic,  the  rate  of 
unemployment decreased further in 2020 to 10. 5% (15-64), despite a simultaneous decrease 
in the employment rate to 59.7 % (15-64). In 2021, the economic recovery started to unwind 
these impacts with the annual unemployment rate recording a slight increase to 11.4 % as the 
pace of return of discouraged workers to the labour  market initially exceeded the growth of 
employment. The activity rate increased by 3.9pps to 70.3 % in 2021 while the employment 
rate grew by 2.5pps to 62.2 %. Youth unemployment (15-24) decreased by 1.2pps to 26.4 % 
in 2021. The share of informal employment, almost  two-thirds of which  was in  agriculture, 
fell  to  13.2  %  of  total  employment  in  2021.  However,  in  structural  terms,  the  labour  force 
may have peaked as the declining working age population is taking its toll on labour supply. 
A  steady  population  decline  of  around  0.5  %  every  year,  along  with  large-scale  emigration 
across the occupational spectrum remains a key medium- to long-term challenge for economic 
development.  In  addition,  persistent  skills  mismatches,  the  gender  employment  gap  and 
inadequate activation of young people as well as large regional disparities have continued to 
weigh on the functioning of the labour market. Based on the strategy on economic migration 
for 2021-2027, that aims at fostering circular migration by retaining workers and encouraging 
the diaspora to return to the country, an action plan for the period 2021-2023 was adopted in 
September 2021 followed in November 2021 by a decision to establish a working group for 
the  implementation  and  monitoring  of  the  strategy  and  action  plan.  The  strategy  is  also 
incorporated as a reform measure in the ERP 2022-2024.   

Real  wages  have  increased.  Real  wages  rose  by  5.2  %  in  2021  as  average  nominal  wage 
increases  by  9.4  %  were  considerably  impacted  by  rising  inflation.  The  authorities  have 
continued to gradually reduce the overall tax wedge by rising the non-taxable part of salaries 
from  RSD  18 300  to  RSD  19 300  as  of  2022.  However,  the  tax  wedge  is  still 
disproportionally high for people with low salaries and therefore aggravates in-work-poverty. 
It also continues to be an impediment for the formalisation of labour. In line with expectations 
for the overall increase of wages, the government rose the minimum hourly wage by 9.4 % in 
2022. Around one in six registered employees receives the minimum wage. 

2.3.2.  The capacity to cope with competitive pressure and market forces within the EU 

Serbia  is  moderately  prepared  and  has  made  some  progress  in  coping  with  competitive 
pressure and market forces within the EU. The structure of the economy improved further and 
economic integration with the EU remained high. However, despite some progress, the quality 
and  relevance  of  education  and  training  does  not  fully  meet  labour  market  needs.  Public 
investment has continued to increase with the aim to address serious infrastructure gaps after 
years  of  underinvestment.  Small  and  medium-sized  enterprises  still  face  a  number  of 
challenges,  including  an  uneven  playing  field  as  compared  to  large  companies  and  foreign 
investors. Last years’ recommendations have been partially implemented.  

In the coming year, Serbia should in particular: 

  further  tailor  education  and  training  to  labour  market  needs,  in  particular  in  the  area  of 

vocational education and training (VET);  

  ensure a harmonised cost-benefit based approach for prioritising and monitoring all public 
infrastructure  investment  regardless  of  the  source  of  financing,  and  apply  to  all  projects 
the  principles  of  competition,  equal  treatment,  non-discrimination  and  transparency  in 
public procurement and state aid procedures in line with the EU acquis;  

74 

 
 
  advance on green energy transition and start with decarbonisation of industry especially in 
the  energy  sector;  substantially  increase  investments  into  renewables  and  energy 
efficiency  supported  by  cost-recovering  tariffs;  accelerate  the  implementation  of  the 
action plan on gas unbundling and decrease its energy dependence on Russia, in line with 
the REpowerEU communication5 

Education and innovation 

Despite  some  progress,  skills  mismatches  in  Serbia  remain  high.  Public  spending  on 
education  stood  at  around  3.5  %  of  GDP  in  2020,  below  the  EU  average  of  4.7  %.  Pre-
primary school enrolment (age 3 to 5.5 years) remained around 64 % in the 2020/2021 school 
year,  while  the  compulsory  preparatory  pre-school  programme  and  primary  education  is 
almost universal. The rate of primary graduates entering upper secondary education stood at 
99.5 % in 2020, while the share of early school leavers was 5.6 % in 2020.  Higher education 
attainment  in  the  population  aged  25-34  (ISCED  levels  5-8)  stood  at  32.6  %  in  2020.  The 
authorities are gradually updating both the general and vocational pre-university curricula to 
make them more relevant to labour market needs, at the same time consolidating the national 
qualification  framework  (NQF)  set-up.  The  adoption  of  new  qualification  standards  and/or 
modernisation thereof has continued at slow pace and should accelerate, with more focus on 
higher  education.  Efforts  have  been  made  to  expose  students  to  work-based  learning  under 
both  upper  secondary  and  higher  vocational  education  and  training  (VET).  As  participation 
rates  in  life-long  learning  are  traditionally  low  (4.8  %  in  2021),  the  offer  of  formal  and 
informal  learning  would  usefully  be  further  diversified  and  promoted  among  both  working 
and non-working adult population. 

Research  and  development  (R&D)  spending  remains  low  at  around  0.9  %  of  GDP. 
Government funding was stable at around 0.4 % of GDP, providing close to half of the total 
R&D  financing  in  2020.  The  number  of  scientific  research  organisations  remained  broadly 
unchanged.  To  increase  innovation  and  scientific  research,  Serbia  continues  to  support  the 
innovation  fund  and  the  science  fund  that  are  running  numerous  specialised  financing 
instruments  and  grant  schemes.  Five  years  after  a  science  and  technology  park  was 
established in Belgrade, three additional are being built in Novi Sad, Čačak and Niš. Serbia 
adopted a strategy for the development of start-up ecosystems (2021-2025) in December 2021 
to create a national strategic framework to increase the number and quality of domestic start-
ups. 

Physical capital and quality of infrastructure 

Investment  has  continued  increasing,  with  significant  emphasis  on  road  and  rail 
infrastructure,  but  infrastructure  gaps  remain.  Public  investment  continued  its  upward 
trend while private investment rebounded strongly in 2021 after a crisis-induced decrease in 
2020. The  economy is attracting significant  foreign direct investment (FDI),  well above the 
region’s average as a percentage of GDP. FDI inflows reached EUR 3.6 billion in 2021 and 
surpassed  their  pre-pandemic  record  from  2019  in  absolute  terms.  FDI  expressed  as 
percentage  of  GDP  grew  from  6.5  %  in  2020  to  7.2  %  in  2021.  Outward  investments  of 
Serbian  companies  abroad  remained  very  modest  at  EUR  238  million.  The  share  of  total 
investment  in  the  economy  has  reached  22.5  %  of  GDP  in  2021,  up  from  17.1  %  in  2016. 
However,  physical  infrastructure  needs  further  upgrading  and  expansion.  A  continued  high 

5 COM(2022) 230 final) 

75 

 
 
                                                           
 
level  of  public  investments  is  planned  in  2022,  particularly  in  roads  and  railways  but  also 
environmental  investments.  However,  increased  costs  due  to  global  developments  might 
impact the implementation of planned projects. 

it  comes 

to  maintaining  existing 

The  institutional  framework  for  public  investment  is  weak.  The  ‘user  pays’  principle  is 
not  sufficiently  applied  when 
infrastructure  and 
implementing new infrastructure investment plans. The new legislative framework for public 
investment  management  put  in  place  in  July  2019  provides  a  basis  for  a  sounder  project 
selection process, better prioritisation and more comprehensive planning across different tiers 
of the government. However, the arrangement allows too many exceptions to the rule, which 
significantly reduces its effective impact. Moreover, the law on special procedures for linear 
infrastructure projects (road, rail, waterways, airports, metro, water and wastewater systems) 
adopted in February 2020 allows projects of ‘special importance’ to be exempted from public 
procurement  rules.  Public  procurement  rules  are  not  always  fully  complied  with,  as  also 
evidenced by an increasing number of exemptions and irregularities, and they are not always 
fully  compatible  with  EU  standards  (particularly  in  the  case  of  intergovernmental 
agreements). 

The energy sector remains largely inefficient and highly polluting; the regulatory reform 
progresses  slowly.  Serbia  started  to  adopt  and  implement  implementing  legislation  for  its 
new energy laws adopted in April 2021. Serbia should finalise work to start implementing its 
new market based auction scheme to support production of energy from renewable sources. A 
growing  share  of  renewables  should  help  to  decarbonise  the  sector  and  attract  new 
investments. The economy is increasingly negatively impacted by an inefficient energy sector 
based on low quality lignite, resulting in higher energy volume imports for protracted periods 
at a moment of highly increased international energy prices. Electricity tariffs for households 
are  regulated  significantly  below  market  prices  and  have  not  allowed  for  the  necessary 
investment in infrastructure even before the surge of wholesale market prices since the second 
half of 2021.  Serbia’s dependence on its  single  gas  supplier Gazprom and Russian majority 
control  of Serbia’s  gas  infrastructure and oil industry  continued.  Full implementation  of the 
action  plan  for  the  restructuring  of  state-owned  enterprise  Srbijagas  is  still  pending.  The 
Balkan  stream  gas  pipeline  was  finished  but  the  regulatory  regime  has  yet  to  be  brought  in 
line with EU legislation. Works on the EU-supported gas interconnector between Serbia and 
Bulgaria started in January 2022.  

Digitalisation remains one of the government’s top priorities. In line with the 2020-2022 
e-government  development  programme  and  related  action  plan,  the  government’s  main 
objective in this area is to improve the quality of public services by ensuring interoperability, 
efficient coordination, project management and legal certainty over e-government use as well 
as fostering the use of open data. The e-government national portal was upgraded with various 
new services, serving as a one-stop shop for e-government services and as a central point of 
access  for  business  and  citizens  alike.  Digitalisation  of  government  services  is  further 
upgraded with adoption of the 2020-2025 artificial intelligence strategy and its implementing 
action  plan  for  2020-2022,  as  well  as  with  the  setting  up  of  a  Research  and  Development 
Institute for Artificial  Intelligence and the ‘Smart  Serbia platform’ for  secure collection and 
processing of data from  various public sources. Progress has been made on public access to 
institutional  data  thanks  to  the  national  open  data  portal  (making  data  available  from  109 
public  institutions  so  far).  The  robust  growth  of  the  information  and  communication  sector 
continued, with exports of ICT services in 2021 valued at EUR 1 857 million, an increase by 
close to 30 % from 2020.  

76 

 
 
Sectoral and enterprise structure 

Construction  and  some  services  have  increased  their  weight  in  the  economy.  Services 
dominate  the  economy,  providing  more  than  60  %  of  total  value  added.  Sectors  like 
transportation, retail trade, and information and communication – the last increasingly geared 
towards exports – benefited from strong growth before the COVID-19 crisis. Reflecting a new 
investment  cycle, the  construction sector increased its share in  GDP  from  3.0  % in  2013 to 
5.4 % of GDP in 2020, strongly supported by capital investments in infrastructure. The weight 
of  the  agricultural  sector  has  broadly  stabilised  at  around  6  %  of  GDP  since  2017  after  a 
downward  trend  over  the  preceding  few  years  in  line  with  the  growing  shares  of 
manufacturing  and  services.  The  share  of  agriculture  in  total  employment  continued  to  fall 
steadily from about 20 % in 2014 to around 17 % in 2017 and further to around 15 % in 2021, 
while  there  have  been  increases  in  the  share  of  employment  in  the  industry  and  service 
sectors. 

Small and medium-sized enterprises (SMEs) are the backbone of the Serbian economy. 
They provided close to 60 % of total employment and turnover in the economy, and around 
60 % of the value added in 2020 Statistical Office of the Republic of Serbia, annual structural 
business  statistics).  SMEs  are  particularly  active  in  construction,  accommodation  and  food 
services,  retail,  and  real  estate.  The  authorities  are  implementing  several  programmes  to 
support SME development, focusing on boosting innovation, finance, and internationalisation. 
Loans to SMEs accounted for about 64 % of total corporate loans in March 2022. Their cost 
of  borrowing  has  declined  recently,  but  is  still  disproportionately  higher  than  that  of  large 
companies.  SMEs  still  face  a  number  of  challenges,  including  an  unpredictable  business 
environment and lack of non-bank financing. SMEs often face an uneven playing field: large 
enterprises  and  foreign  investors  often  have  direct  lines  of  communication  with  the 
government  and  therefore  enjoy  an  advantage  over  domestic  SMEs.  Also,  the  level  of 
subsidies  being  channelled  to  foreign  investors  and  large  companies,  including  particularly 
SOEs, is much higher compared to SMEs. 

Economic integration with the EU and price competitiveness 

Economic  integration  with  the  EU  remained  high.  The  EU  remains  Serbia’s  biggest 
trading  and  investment  partner,  accounting  for  60.3  %  of  its  total  trade  and  for  47.8  %  of 
foreign  direct  investment  inflows  in  2021.  Total  bilateral  trade  between  the  EU  and  Serbia 
increased significantly by 23.6 %  year-on-year from EUR 24.5 billion in 2020 to EUR 30.3 
billion in 2021. Imports to Serbia from the EU grew at the same pace as exports to the EU, 
with  the  EU  registering  a  surplus  of  EUR  2.4  billion  in  2021.  After  the  EU,  Serbia’s  main 
trade  partners  in  2021  were  China  (8.9  %  of  total  trade),  Russia  (4.7  %)  and  Bosnia  and 
Herzegovina  (4.7  %).  Trade  with  the  signatories  of  the  Central  European  Free  Trade 
Agreement (CEFTA) represented 15.8 % of total exports and 4.4 % of total imports in 2021. 
Notwithstanding  ongoing  remedy  efforts  via  online  health  and  customs  clearance,  transit 
facilitation through international cooperation agreements and the regional green corridor (EU, 
CEFTA,  Western  Balkans  and  Türkiye),  there  are  still  significant  bottlenecks  at  border 
crossing points with neighbouring EU countries; these hamper further trade with the EU and 
transport facilitation with the EU. Trade openness, after a steady increase from 92 % of GDP 
in 2014 to 111.5 % in 2019, decreased to 103.9 % in 2020 due to the crisis, before rebounding 
strongly to 115.6 % in 2021. 

77 

 
 
Real  effective  exchange  rates  have  been  on  an  appreciating  trend  in  recent  years.  The 
dinar-euro nominal exchange rate remained broadly stable in 2021  and the first half of 2022 
as some appreciation pressures in the summer of 2021 and some depreciation pressures at the 
beginning  of  Russia’s  war  of  aggression  against  Ukraine  in  the  first  quarter  of  2022  were 
successfully  neutralised  by  the  central  bank.  The  CPI-based  real  effective  exchange  rate 
(REER) depreciated by 9 % over the period 2014-2016 before appreciating by 10 % over the 
period 2017-2021. Serbia’s cost competitiveness improved in the period 2014-2016 with the 
unit labour cost (ULC) based REER depreciating by a cumulative 8 % and then deteriorated 
in the period 2017-2021 with the REER appreciating by a cumulative 31 % (of which 8 % in 
2020  and  4  %  in  2021).  The  latest  IMF  external  sustainability  assessment  considered  the 
exchange rate broadly consistent with fundamentals. 

2.4. PUBLIC PROCUREMENT, STATISTICS, FINANCIAL CONTROL  

Chapter 5: Public procurement 

EU  rules  ensure  that  the  public  procurement  of  goods,  services  and  works  in  any  Member 
State  is  transparent  and  open  to  all  EU  companies  on  the  basis  of  non-discrimination  and 
equal treatment.  

Serbia  is  moderately  prepared  in  the  area  of  public  procurement.  No  progress  was  made. 
While  the  administrative  capacities  of  the  public  procurement  office  were  strengthened,  the 
Law  on  special  procedures  for  linear  infrastructure  projects  remains  in  place.  This  law 
seriously  undermines  the  effective  implementation  of  the  law  on  public  procurement.  The 
increasing  number  of  exemptions  from  the  application  of  the  public  procurement  law, 
totalling 67 % (EUR 3.2 billion) of the cumulative value of public procurement contracts in 
2021, and a large number of inspected irregularities in public procurement contracts found by 
the State Audit Institution raise very serious concerns which risk backsliding in this area. The 
Commission recommendations from 2021 remain valid.  

In the coming year, Serbia should in particular: 

  repeal the law on special procedures for linear infrastructure projects; 

  ensure full alignment with the 2014 EU Directives on public procurement, in particular by 
adopting  amendments  to  the  Law  on  public-private  partnerships  and  oncessions  and  by 
ensuring  that  projects  financed  from  public  funds  are  subject  to  public  procurement 
procedures;  ensure  that  intergovernmental  agreements  concluded  with  third  countries  do 
not  unduly  restrict  competition  and  comply  with  the  basic  principles  of  public 
procurement, in line with the national legislation and the EU acquis;  

78 

020406020142015201620172018201920202021Graph 4.5a: Serbia -Exports of goodsEUCEFTAOtherSource: WiiW% ofGDP020406020142015201620172018201920202021Graph 4.5b: Serbia -Imports of goodsEUCEFTAOtherSource: WiiW% ofGDP 
 
 
 
  continue to strengthen the capacity of the Public Procurement Office, the Commission for 
Public-Private Partnerships and Concessions, the Republic Commission for the Protection 
of Rights in Public Procedures and the administrative court. 

Institutional set-up and legal alignment  

Serbia’s legal and institutional frameworks on public procurement are broadly aligned with 
the  EU  acquis.  The  adoption  of  amendments  to  the  Law  on  public-private  partnerships  and 
concessions  to  align  with  the  EU  Directive  on  concessions  is  still  pending.  The  Law  on 
special  procedures  for  linear  infrastructure  projects  allows  the  government  to  exempt  linear 
infrastructure projects of ‘special importance for the Republic of Serbia’ from the application 
of  public  procurement  rules.  Under  this  law,  national  public  procurement  legislation  can  be 
suspended for the entire lifetime or for particular phases of a project, and the government is 
empowered to select a strategic partner in circumstances deemed as urgent. This law and its 
wide application undermine the effective implementation  of the law on public procurement. 
By allowing for the circumvention of national legislation as well as EU rules and standards in 
this  way,  Serbia  maintains  discriminatory  rules  in  the  field  of  public  procurement. 
Furthermore,  the  lack  of  clear  selection  procedures  and  transparency  in  the  Law  on  special 
procedures for linear infrastructure projects seriously increases the risk of corruption in public 
procurement.  

The  public  procurement  development  programme  for  2019-2023  was  implemented 
through the action plan for 2021. A new action plan for 2022 was adopted with delay in June 
2022. 

The Public Procurement Office (PPO) conducts compliance supervision of the law on public 
procurement  and  maintains  the  public  procurement  portal.  The  PPO  is  also  in  charge  of 
proposing implementing legislation. 

Implementation and enforcement capacity  

The public procurement market  increased significantly by 48 % in terms of total value of 
contracts  from EUR 3.2 billion in  2020 to  EUR 4.75 billion in  2021. Its  share in  GDP also 
grew from 6.8 % in 2020 to 8.9 % in 2021. The average number of bids per tender decreased 
from  2.6  to  2.5,  notably  lower  than  the  3  bids  registered  in  2017.  The  share  of  contracts 
awarded to foreign bidders remained low at 2 % of the total value of contracts, spread equally 
between the EU and non-EU companies.  

Regarding monitoring of contract award and implementation, the proportion of negotiated 
procedures without prior publication stood at 7.7 % of the total value of contracts concluded 
in  2021,  decreasing  from  23.2  %  registered  in  the  second  half  of  2020  with  the  entry  into 
force  of  the  new  public  procurement  law.  The  share  of  open  procedures  stood  at  91.3  %  in 
2021 after dropping from 94 % in the first half of 2020 to 69 % in the second half of 2020 
when  the  new  public  procurement  law  entered  into  force.  The  use  of  the  best  price-quality 
ratio  criterion  halved  from  10  %  in  2019  to  4  %  in  2021,  while  the  lowest  price  criterion 
remained dominant in 96 % of cases. New functionalities of the public procurement portal were 
introduced in 2021 with the aim to increase transparency and efficiency.  Numerous workshops 
and webinars have been organised to train bidders and contracting authorities to use the new 
e-procurement portal.  

The  value  of  procurements  exempted  from  the  application  of  the  public  procurement  law 
skyrocketed by 88 % or by EUR 1.5 billion year-on-year to a total value of EUR 3.2 billion. 
Exemptions  from  the  application  of  the  public  procurement  law  accounted  for  67  %  of  the 
cumulative value of all public procurement contracts concluded in 2021. The most frequently 

79 

 
 
used legal basis for exemption was intergovernmetal agreements that accounted for 22.7 % of 
the total value of exemptions in 2021. The state audit institution found irregularities in 44 % 
of  the  value  of  public  procurement  contracts  inspected  in  2021.  The  state  audit  institution 
identified  contracts  worth  EUR  150  million    that  were  exempted  from  public  procurement 
procedures  with  no  valid  justification,  accounting  for  33  %  of  all  identified  irregularities  in 
2021.  These  findings  raise  serious  concerns  and  need  to  be  appropriately  followed  up.  The 
COVID-19  response  enabled  the  use  of  exceptional  procedures  to  expedite  procurement 
processes. To mitigate the risks of fraud and corruption, it is especially important to maintain 
audit  trails.  Disclosing  all  procurement  information  related  to  procurement  conducted  in 
relation to COVID-19 on government portals would also contribute to enhanced transparency 
and trust.  

The  capacity  to  manage  public  procurement  processes  has  improved  with  the  PPO 
registering a total of 44 employees in 2021, up from 38 staff members in 2020. A total of 118 
public procurement officers were certified on the basis of the new public procurement law.  

The Commission for Public-Private Partnerships and Concessions has approved a total of 217 
public-private partnership project proposals, including 82 with concession elements, mostly in 
the  urban  transport,  sanitation  and  urban  planning  sectors.  The  commission  remains 
understaffed.  

There were no developments in integrity and conflicts of interest.  

Efficient remedy system  

Legislation on the right to legal remedy is broadly in line with the EU acquis and is enforced 
by  the  Republic  Commission  for  the  protection  of  rights  in  public  procurement  procedures 
(the  Republic  Commission),  an  independent  state  body.  The  Republic  Commission  solved 
759  cases  on  requests  for  the  protection  of  rights  in  2021.  Public  procurement  procedures 
were  partially  or  fully  annulled  in  359  cases  (47  %  of  all  solved  cases).  The  number  of 
contracting  authorities  not  complying  with  decisions  of  the  Republic  Commission  remains 
stable at below 1% of the overall decisions taken. The Republic Commission took decisions in 
37 cases on  complaints  about  conclusions of contracting  authorities in  2021.  It  imposed  ten 
financial  fines  on  contracting  authorities  not  complying  with  its  orders  and  decisions  while 
annulling two contracts in 2021.  

Regarding the Republic Commission’s implementation capacity, the number of staff slightly 
decreased from 54 to  52  staff members in  2021,  nine of whom are  elected officials.  Due to 
limited  specialisation  and  training,  the  Administrative  Court’s  capacity  to  deal  with  the 
complexity,  diversity,  and  overall  quantity  of  cases  and  lengthy  legal  proceedings  remains 
weak. Cooperation between the PPO and the Republic Commission with the Administrative 
Court on exchange of knowledge and information remains to be strengthened. 

Chapter 18: Statistics 

EU rules require that Member States are able to produce good quality statistics in line with 
the  principles  of  the  European  statistics  Code  of  Practice  and  based  on  professional 
independence,  impartiality,  reliability,  transparency,  and  confidentiality.  Common  rules  are 
provided for the methodology, production and dissemination of statistical information.  

Serbia is moderately prepared in the area of statistics. Some progress was made during the 
reporting  period  as  Serbia  continued  preparations  for  its  population  and  housing  census, 
planned for October 2022, in line with EU and international standards, and further improved 
the  compilation  of  macroeconomic  statistics  in  line  with  the  European  system  of  accounts 
(ESA) 2010. However, the new statistical law has still not been adopted. In addition, Serbia 

80 

 
 
proceeded  with  preparing  the  next  census  on  agriculture  planned  for  2023  and  continued  to 
submit  statistical  data  to  Eurostat.  As  last  year’s  recommendations  were  only  partially  met, 
they remain valid. 

In the coming year Serbia should in particular: 

  adopt the new statistical law to increase the independence of the statistical office;  

  carry out the population  and housing census in line with the relevant EU legislation and 
international standards and continue preparations for the census on agriculture in line with 
the relevant EU legislation and international standards;  

  continue to improve compilation of macroeconomic statistics in line with ESA 2010.   

The  legal  framework  for  statistical  infrastructure  is  largely  in  line  with  the  European 
Statistics  Code  of  Practice.  A  new  law  on  official  statistics,  which  should  enhance  the 
professional  independence  of  the  statistical  office  (SORS),  still  needs  to  be  adopted.  A 
National Coordination Board of Official Statistics was established in June 2021 in line with 
the  programme  for  official  statistics  (2021-2025).  The  board  includes  representatives  of  all 
responsible  producers  of  official  statistics.  Serbia  continued  to  integrate  systems  for 
administrative data through cooperation agreements and database linkages with a number of 
Serbian institutions/registers. The administrative capacity of the SORS still needs to be further 
strengthened,  as  its  operations  remain  hampered  by  the  lack  of  sufficient  and  adequately 
skilled staff. The SORS continued to increase submission of data to Eurostat, but the coverage 
of  data  submission  needs  to  be  further  expanded.  The  main  classifications  (NACE  Rev.  2, 
ISCO-08) are aligned with the EU acquis. Registers are updated regularly.  

Concerning  territorial  classification,  Serbia  continued  to  compile  regional  accounts    and 
submit them to Eurostat  including the 2021 transmission. Serbia provided regional accounts 
data  at  statsistical  level  2  and  3  according  to  the  last  benchmark  performed  for  national 
accounts, but the number of years is not yet uniform across variables.  

Regarding  macroeconomic  statistics,  the  SORS  continued  to  compile  quarterly  and  annual 
GDP  at  current  and  constant  prices  as  well  as  in  chain-linked  volume.  Seasonally  adjusted 
quarterly  national  accounts  are  sent  to  Eurostat.  Quarterly  sector  accounts  have  yet  to  be 
compiled and only annual sector accounts are published. Serbia has further advanced work on 
compiling supply-use and input-output tables. The SORS sends good-quality monthly data on 
international  trade  in  goods  according  to  the  required  breakdown  by  mandatory  partner 
country. The compilation  of trade by  enterprise characteristics (TEC) data was submitted to 
Eurostat but more work is needed to meet all requirements set out in the compilers guide on 
TEC. The NBS compiles the monthly and quarterly balance of payments, as well as quarterly 
international investment position data. The SORS continues to provide the Commission twice 
a year with notification tables for the excessive deficit procedure (EDP). There is progress in 
completing  the  questionnaire  related  to  the  EDP  notification  tables,  but  the  quality  and 
completeness  of  the  EDPnotification  data  and  the  government  finance  statistics  need  to  be 
further improved. SORS considers the non-financial accounts of government finance statistics 
as experimental and therefore not fit for publication. The NBS set up the system for compiling 
the  financial  accounts  statistics.  Progress  was  made  by  SORS  and  the  NBS  in  providing 
quarterly  non-financial  accounts  of  general  government  and  quarterly  general  government 
gross  debt  Continued  efforts  are  needed  to  produce  the  complete  data  required  by  the  ESA 
2010 transmission programme.  

With regard to structural business statistics, data coverage is not yet fully in line with the EU 
acquis  but  methods  for  sending  data  have  been  established.  Most  of  the  data  on  internal 

81 

 
 
tourism  and  some  data  on  national  tourism  are  collected  and  transmitted.  For  inland 
waterway, road and railway transport, data is collected but need to be further harmonised with 
the EU acquis. Serbia communicated for the first time some figures on all of 6 datasets of the 
Common Eurostat / ITF / UNECE Questionnaire. Air transport statistics are highly compliant. 
Serbia  continued  to  provide  in  a  timely  manner  the  mandatory  research  and  development 
(R&D)  data  and  statistics  on  government  budget  allocation  for  R&D,  some  for  which 
transmission is voluntary. Serbia also continued to provide the regional data. The Community 
innovation survey is conducted regularly every two years and the data is sent to Eurostat. The 
annual surveys on information and communication technology (ICT) fully meet EU standards 
and are carried out regularly, covering households/individuals and businesses. Serbia is fully 
compliant for most of the short-term business statistics indicators.  

Serbia partially complies with the EU acquis on social statistics. The survey on income and 
living conditions is carried out regularly in compliance with EU standards and data is sent to 
Eurostat.  Serbia  is  fully  compliant  in  social  protection  statistics  and  provide  Eurostat  with 
European  system  of  integrated  social  protection  statistics  (ESSPROS)  data  and  metadata  of 
good  quality  and  coverage,  according  to  the  legal  deadlines.  Labour  market  earnings  and 
labour cost statistics are broadly in line with the EU acquis. Serbia carries out the labour force 
survey  (LFS)  according  to  the  regulations  and  promptly  sends  good  quality  micro  data  to 
Eurostat  (annual  and  quarterly),  as  well  as  LFS  quality  reports  based    on  the  new  LFS 
questionnaire.  Further  progress  is  still  needed  to  produce  good  statistics  on  job  vacancies. 
Public  health  statistics  in  line  with  the  EU  acquis  are  not  yet  fully  available.  In  particular, 
statistics on causes of death are  compliant, while healthcare expenditure statistics are lacking. 
Serbia is  fully compliant as regards the European  health  interview  survey  (EHIS).  Statistics 
on external migration and asylum are collected by the ministry of interior; they are only partly 
harmonised  with  the  relevant  EU  requirements.  Further  harmonisation  is  therefore  needed. 
Serbia  provides  most  of  the  required  education  statistics.  Preparations  continued  for  the 
population  and  housing  census  planend  for  October  2022,  postponed  from  2021  due  to  the 
COVID-19 pandemic. 

Regarding  agricultural  statistics,  Serbia  is  highly  compliant  in  producing  crop  statistics. 
Animal production statistics as well as milk  and milk  products  statistics are fully  compliant 
with  applicable  EU  regulations.  Serbia  progressed  in  reparing  the  methdology  and  the 
technical specifications for the agriculture census – postponed to 2023 due to the COVID-19 
pandemic.  SORS  still  needs  to  develop  and  produce  supply  balance  sheets  according  to  the 
Eurostat methodology. 

The  annual  and  monthly  energy  statistics  are  produced  and  sent  for  all  relevant  energy 
sources. Serbia is almost fully compliant in water statistics and transmits good quality data 
on  waste  statistics  to  Eurostat.  Only  the  dataset  on  number  and  capacity  of  recovery  and 
disposal  facilities  is  yet  to  be  completed.  Some  environmental  accounts  data  is  produced 
and  Serbia  started  to  submit  data  for  physical  energy  flow  accounts  (PEFA)  and 
environmental  goods  and  services  sector  accounts  (EGSS).  In  general,  the  quality  of 
environmental  accounts  data  improved,  but  further  efforts  are  needed  in  this  area.  Serbia  is 
also  making  progress  in  the  area  of  pesticide  statistics,  but  does  not  yet  deliver  data  on 
pesticide statistics, fertiliser consumption or gross nutrient balances. 

Chapter 32: Financial control  

The  EU  promotes  the  reform  of  national  governance  systems  to  improve  managerial 
accountability, sound financial management of income and expenditure and external audit of 
public  funds.  The  financial  control  rules  further  protect  the  EU's  financial  interests  
against fraud in the management of EU funds and the euro against counterfeiting. 

82 

 
 
Serbia  is  moderately  prepared  in  this  chapter,  with  some  progress  made  in  the  reporting 
period. One out of three Commission recommendations from 2021 was implemented as two 
pilot  peer  reviews  on  internal  audit  arrangements  within  public  funds  beneficiaries  were 
carried  out.  A  new  mid-term  approach  on  public  internal  financial  control  (PIFC),  coherent 
with  the  Law  on  planning  system,  is  being  implemented.  Implementation  of  recently 
enchanced  guidelines on managerial accountability, as well as for reporting of irregularities 
and  handling  of  exceptions,  is  ongoing.  However,  further  work  on  putting  in  place  a 
comprehensive system for detecting and handling irregularities is required. Overall, additional 
efforts  are  needed  to  embed  managerial  accountability  in  the  administrative  culture  and  to 
strengthen the functioning of internal control and internal  audit. High-level political support 
remains  critical  for  the  required  shift  to  performance  management  and  implementation  of 
PIFC reforms in entire public sectors.  

In the coming year, Serbia should in particular:   

  ensure full coherence of PIFC legal basis with the horizontal legal framework; 

  extend  implementation of peer reviews of the quality of the internal audit function within 
public funds beneficiaries and ensure sustainability by adopting  a regulation to  facilitate 
and standardise the process 

  establish an effective internal audit function in all central budget institutions. 

Public internal financial control (PIFC)  

A new strategic framework for PIFC is broadly in place, with the PAR strategy 2021-2030 
and  the  public  financial  management  (PFM)  reform  programme  2021-2025.  PIFC  is 
comprehensively  covered  as  a  separate  pillar  embedded  in  the  PFM  reform  programme.  In 
addition,  further  PIFC  measures  are  envisaged  by  the  new  Local  Self-Government  System 
Reform Program for 2021-2025 (adopted in July 2021) and the Public policy management and 
regulatory  reform  pprogram  for  2021-2025  (adopted  in  November  2021).  The  further 
development of managerial accountability is included in the accountability and transparency 
pillar of the PAR Strategy and the public policy management and regulatory reform program. 
In particular, full establishment of analytical units in ministries and proper implementation of 
mid-term  planning  is  expected  to  foster  effective  consolidation  of  strategic,  operational  and 
financial management functions and enhance managerial accountability.  

In  the  reporting  period,  Serbia  continued  to  focus  on  operationalising  the  principle  of 
managerial  accountability  through  initiating  implementation  of  improved  methodological 
guidance on delegating decision-making and on performance management. Further efforts are 
needed  to  fully  incorporate  managerial  accountability  in  the  administrative  culture  of  the 
public  sector.  Weaknesses  in  performance  management  and  lines  of  accountability  between 
independent bodies and their parent institutions persist. Serbia needs to address them as part 
of  ongoing  work  on  PAR  that  envisages  coverage  of  three  key  elements:  delegation  of 
responsibilities,  clear 
institutions  and  performance 
measurement  at  the  institutional  level  (see  Public  administration  reform).  Given  the 
fundamental necessity of having objectives linked to resources, the ministry of finance needs 
to  continue  its  active  participation  in  actions  related  to  the  implementation  of  managerial 
accountability.  

lines  of  responsibility  between 

The  legal  framework  for  internal  control  is  broadly  in  line  with  the  internal  control 
framework  of  the  Committee  of  Sponsoring  Organisations  of  the  Treadway  Commission 
(COSO). However, after more than ten years of implementation of PIFC legal base, analysis 
of adequacy of PIFC arrangement is envisaged under new PFM Reform Programme.   

83 

 
 
The capacities to implement internal control standards, including risk management, have to be 
further  enhanced  at  both  central  and  local  government  and  be  better  accepted  in  the 
administrative culture of the public sector. Serbia has continued to implement the obligation 
for heads of institutions using public funds to sign an annual statement on the status of their 
internal control systems.  

Preparation  of  mid-term  plans,  which  link  overall  government  policy  with  organisational 
objectives, although continued on pilot basis, is behind schedule. A regulation that introduces 
analytical units as basis for further development of performance management came into force 
in  March 2021.The Ministry of  Finance has  a centralised budget  inspection function, which 
needs  to  be  strengthened.  Mapping  the  entire  national  inspection  environment  remains  a 
priority.  

Internal  audit  practice  is  broadly  in  line  with  international  standards.  However,  not  all 
institutions that are required to establish an internal audit unit have done so and many internal 
audit units do not have sufficient number of auditors. Most central institutions carry out audits 
according  to  strategic  and  annual  audit  plans.  Internal  audit  recommendations  need  to  be 
implemented in a timely manner and the quality assurance of internal audit further developed.  

The  central  harmonisation  unit  (CHU)  continued  to  focus  on  system  development  and 
dissemination  of  methodological  guidance.  It  has  continued  to  conduct  internal  audit  and 
internal  control quality reviews. The quality of the CHU annual  report on the state of PIFC 
implementation  is  improving.  However,  its  use  as  a  tool  to  improve  PIFC  needs  to  be 
enhanced, and timely publication need to be ensured. 

External audit  

Serbia’s  constitutional  and  legal  framework  provides  for  the  independence  of  the  State 
Audit Institution (SAI) in line with the standards of the International Organisation of Supreme 
Audit  Institutions  (INTOSAI).  The  SAI’s  financial  independence  was  respected  during  the 
2021 budget approval process.  

The  SAI  has  currently  330  staff,  including  291  audit  staff,  out  of  a  planned  number  of  431 
posts,  which  represents  an  improvement.  The  SAI’s  institutional  capacity  to  carry  out  its 
core  audit  tasks  is  adversely  affected  by  the  continued  focus  on  the  detection  of  errors  and 
filing of misdemeanour and economic offence and criminal charges against individuals. This 
drains  its  resources  and  affects  its  capacity  to  undertake  its  core  audit  task.  The 
appropriateness of this requirement in SAI law should be reviewed in the medium term. The 
long-standing issue of not having suitable business premises is yet to be resolved.  

The quality of audit work is continuously improving with the support of the dedicated sector 
for audit methodology and quality control.  SAI has maintained increased focus and improved 
capacity  for  performance  audits  with  additional  14  performance  audits  carried  out  in  2021, 
compared to 13 in 2020, 12 in 2019 and two in 2018. Since 2019, SAI publishes responses to 
the audit reports and post-audit reports at its website.  

The SAI has continued to increase the impact of its audit work by improving monitoring the 
implementation  of  its  recommendations  cooperation  with  stakeholders,  overall  transparency 
of  its  work  and  by  increasing  its  communication  with  the  media.  The  SAI's  activity  report 
continues  to  be  discussed  both  in  the  relevant  parliamentary  committee  and  in  the  plenary. 
SAI’s internal audit unit currently employs one single employee and remains to be properly 
staffed. 

Protection of the EU’s financial interests  

84 

 
 
Serbia has achieved a high degree of acquis alignment, but full harmonisation with the EU 
Directive on the fight against fraud to the EU’s financial interests by means of criminal law 
still  needs  to  be  ensured.  The  Strategic  Plan  for  combating  fraud  and  management  of 
irregularities in handling financial resources of the European Union in the Republic of Serbia 
for  the  period  2021-2023  was  adopted  by  the  government  on  21  October  2021.  The  anti-
fraud  coordination  service  (AFCOS)  in  the  Ministry  of  Finance  has  six  full  time  and  one 
temporary  employee,  falling  short  of  the  planned  number  of  13  staff  members.  As  of  17th 
August 2021, AFCOS is a separate, independent organisational unit in the Ministry of Finance 
under  the  direct  authority  of  the  Minister.    During  2022,  the  AFCOS  conducted  8  
administrative  checks,  compared  to  seven  in  2021,  eight  in  2020  and  a  total  of  18  in  2019. 
Serbia  continued 
its  good  cooperation  with  the  European  Commission  during 
investigations  including  the follow-up of recommendations. Serbia reported  13 irregularities 
via the irregularity management system in 2021. Serbia should keep up its efforts in further 
developing a solid track record on cooperation in investigations and reporting of irregularities.  

Protection of the euro against counterfeiting  

In  this  area,  Serbia  has  achieved  a  high  degree  of  acquis  alignment.  The  national  bank  of 
Serbia  carries  out  the  technical  analysis  and  provides  specialised  training  for  the  licenced 
entities  that  perform  authentication  of  euro  coins  and  processing  of  euro  denominated 
banknotes since 1 January 2020. The central bank has formal  cooperation agreements with 
the  European  Commission  on  coins  and  with  the  European  central  bank  on  banknotes. 
Regional cooperation with other central banks is ongoing. Serbia continues to take part in the 
Pericles 2020 programme. 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION  

Good  neighbourly  relations  and  regional  cooperation  form  an  essential  part  of  Serbia’s 
European  integration  process  and  contribute  to  stability,  reconciliation  and  a  climate 
conducive to addressing open bilateral issues and the legacy of the past. 

Serbia maintained its engagement in a number of regional cooperation initiatives, such as the 
Central  European  Free  Trade  Agreement  (CEFTA),  Energy  Community,  Transport 
Community,  the  South-East  European  Cooperation  Process  (SEECP)  and  the  Regional 
Cooperation Council.6 

Following the May 2022 Foreign Affairs Council EU foreign ministers held, for the first time, 
an  informal  exchange  of  views  with  Western  Balkans  counterparts.  The  EU  and  Western 
Balkans Leaders Meeting on 23 June 2022 reaffirmed the EU perspective of the partners in 
the region and gave impulse to intensify the cooperation and the integration agenda. Particular 
focus was placed on the integration of the Western Balkans into EU measures to reduce the 
negative  impact  of  the  Russian  aggression  against  Ukraine  in  terms  of  food  and  energy 
supplies  and  independence,  as  well  as  support  for  cyber  security  capacity  building  and  the 
social  agenda,  particularly  involving  youth  in  the  economy.  The  meeting  was  also  an 
opportunity to discuss closer political cooperation, alignment of the Western Balkans with EU 

6  Serbia  also  actively  participates  in  the  Adriatic-Ionian  Initiative,  the  EU  macro-regional  Strategies  for  the 
Danube  Region,  the  Adriatic  and  Ionian  Region,  the  Coalition  for  a  regional  commission  tasked  with 
establishing the facts about all victims of war crimes and other serious human rights violations committed on the 
territory  of  the  former  Yugoslavia  (RECOM),  the  Regional  School  of  Public  Administration  (ReSPA)  and  the 
Brdo-Brijuni process.  

85 

 
 
                                                           
 
positions and measures, as well as possible design and functioning of a European geopolitical 
community.  

At the EU-Western Balkans summit in Brdo pri Kranju in October 2021, the six Western 
Balkans leaders reaffirmed their commitment to inclusive regional cooperation, strengthening 
good  neighbourly  relations  and  investing  more  decisive  efforts  in  establishing  the  Common 
Regional  Market.  The  summit  announced  a  range  of  concrete  deliverables  benefiting  the 
Western Balkans, including:  the first  tranche of  actions under  the EUR 30 billion Economic 
and Investment Plan; the pledge to boost COVID-19 vaccination rates; the path towards lower 
roaming costs;  an  innovation agenda for the Western Balkans;  green  lanes to  reduce border 
waiting  times  and  Transport  Community  action  plans  for  smart  transport  and  sustainable 
connectivity.  

The Common Regional Market (CRM) will be critical in increasing the attractiveness and 
competitiveness of the region. It will help Serbia to speed up the recovery from the aftermath 
of  the  pandemic,  notably  by  attracting  investors  looking  for  diversification  of  supply  and 
shorter  value  chains  and  maximising  the  benefits  of  infrastructure  investments  under  the 
Economic and Investment Plan. It is therefore important that Serbia play a constructive role in 
building the CRM and for all partiesto  deliver on their joint commitments set out in the CRM 
action plan.  

Albania,  North  Macedonia  and  Serbia  seek  to  deepen  regional  co-operation  in  a  number  of 
areas  notably  economic  integration  through  the  Open  Balkan  Initiative  (OBI),  de  facto 
implementing  some  elements  of  the  CRM  on  which  no  formal  agreement  has  been  reached 
yet between the parties.  Four OBI  summits have been held over the reporting period two of 
which  were  held  in  Belgrade  in  November  2021  and  September  2022.  The  latter  was  also 
attended  by  the  Chairman  of  the  Council  of  Ministers  of  Bosnia  and  Herzegovina  and  the 
Prime Minister of Montenegro.  

In October 2021,  Serbia  along with  other Western Balkan partners endorsed the  action  plan 
for  the  Western  Balkan  Green  Agenda,  which  mirrors  the  European  Green  Deal7  in  a 
proportionate way, tailored to the Western Balkans. The action plan contains joint initiatives, 
which will contribute to the sustainable socio-economic development  and green recovery of 
the entire region in the post-pandemic period. Serbia should contribute to the implementation 
of this joint regional vision, with  a high level of  ambition, putting sustainable development, 
resource efficiency, nature protection and climate action at the centre of economic activities. 
Serbia needs a stronger well-staffed institutional set-up to manage its green agenda. 

Concerning  Serbia’s  respect  for  the  Dayton/Paris  Peace  Agreement,  Serbia  continues  to 
support Bosnia and Herzegovina’s territorial integrity and its path to joining the EU. Regular 
and  frequent  meetings  were  held  with  the  Serb  member  of  the  Presidency  of  Bosnia  and 
Herzegovina  and  with  the  leadership  of  Republika  Srpska.  Serbian  authorities  also  met  the 
new High Representative for Bosnia and Herzegovina.  

Serbia  has  continued  to  cooperate  closely  with  Bosnia  and  Herzegovina,  Croatia  and 
Montenegro  under  the  Sarajevo  Declaration  Process,  which  aims  to  find  sustainable 
solutions  for  those  who  became  refugees  and  displaced  persons  as  a  result  of  the  armed 
conflicts in ex-Yugoslavia during the 1990s. Under the Regional Housing Programme (RHP), 
6  327  housing  units  have  been  built,  purchased  or  reconstructed  in  Serbia  so  far,  able  to 

7 COM(2019) 640 final. 

86 

 
 
                                                           
 
accommodate  around  19  000  people.  Significant  challenges  remain  for  the  economic  and 
social  integration  and  wellbeing  of  many  families,  which  is  required  to  ensure  the 
sustainability of return.  

The  unresolved  fate  of  missing  persons  who  disappeared  during  the  conflicts  in  the  1990s 
remains  a  key  issue  to  be  solved  in  the  Western  Balkans.  In  2021,  Serbian  authorities 
conducted two exhumations (in Kizevak and Sid) and officially identified the remains of 10 
people found in Serbia, 1 from Croatia, 4 from Kosovo, and 7 from Bosnia and Herzegovina – 
with the cooperation of Bosnia and Herzegovina, Croatia and Kosovo. In May 2022, Serbian 
authorities  conducted  excavations  in  Stavalj  in  the  presence  of  the  Kosovo  Commission  on 
Missing Persons, in line with the commitments made in the framework of the ICRC-chaired 
Working Group. No human remains were found. In July 2022, there were still 9 876 persons 
missing as a legacy of the conflict. There was no meeting between the relevant Croatian and 
Serbian authorities on missing persons during the reporting period. 

Overall,  Serbia  remained  overall  committed  to  improving  bilateral  relations  with  other 
candidate countries, potential candidates and neighbouring EU Member States.  

Bilateral conventions on regional cooperation (under Article 15 of the SAA) are in force with 
Montenegro and North Macedonia. The convention with Bosnia and Herzegovina, signed in 
2018,  has  yet  to  be  ratified.  Serbia  initiated  the  process  of  concluding  a  convention  with 
Albania.  

Relations with Albania are good. In December 2021, the Serbian President visited Tirana to 
take part in a meeting under the OBI. At the meeting, Serbia and Albania signed a bilateral 
agreement  on  mutual  recognition  of  certificates  of  authorised  economic  operators  for  safety 
and  security  (AEOS).  In  September  2022,  Albania  and  Serbia  signed  a  Memorandum  of 
Understanding in cooperation in the energy sector. 

Relations with Bosnia and Herzegovina are good and stable overall. In March 2022, political 
consultations  between  the  two  Ministries  of  Foreign  Affairs  were  held  in  Belgrade.  The 
border  demarcation  issue  remains  unsolved.  The  countries  also  still  need  to  reach  an 
agreement  on  two  dams  on  the  Drina  River  and  a  part  of  the  Belgrade-Bar  railway  which 
crosses into Bosnia and Herzegovina.  

Relations  with  North  Macedonia  are  good.  Serbia’s  Minister  of  Foreign  Affairs  visited 
Skopje  in  January  and  February  2022.  An  Agreement  on  the  establishment  of  cultural-
information  centres  in  Skopje  and  Belgrade  was  signed  February  2022.  In  June  2022,  the 
Serbian President visited Ohrid to participate in an OBI meeting.  

Relations  with  Montenegro  remain  challenging  but  both  sides  signal  greater  willingness  to 
reset  the  relations  and  work  toward  adressing  open  issues.  The  Prime  Ministers  of 
Montenegro  visited  Belgrade  in  November  2021  and  June  2022.  Ad  hoc  political  spats 
between the two leaderships took place.  

Relations  with  Türkiye  remain  good.  In  January  2022,  the  Serbian  President  and  a 
government delegation visited Ankara for a session of the High Cooperation Council. Turkish 
President visited Serbia in September 2022. 

Relations  with  neighbouring  EU  Member  States  Bulgaria,  Hungary  and  Romania  are 
good.  Relations  with  Croatia  came  under  strain,  with  occasional  political  altercations.  The 
border demarcation issues are yet to be resolved.  

87 

 
 
 
4. NORMALISATION OF RELATIONS BETWEEN SERBIA AND KOSOVO 

The  EU-facilitated  Dialogue  on  normalisation  of  relations  between  Kosovo  and  Serbia 
continued throughout the reporting period with regular monthly meetings on the level of Chief 
Negotiators  and  a  High-level  meeting  in  Brussels  on  18  August  2022.  No  further  concrete 
progress  was  achieved  in  the  negotiations  on  the  comprehensive  and  legally-binding 
normalisation agreement, while in the High-level meeting President Vucic and Prime Minister 
Kurti  agreed  to  regular  meetings  on  the  level  of  leaders  to  take  the  negotiations  forward. 
Kosovo and Serbia are now urged to engage constructively and advance the negotiations on 
the comprehensive, legally-binding normalisation agreement with no further delay. Reaching 
such  an  agreement  is  urgent  and  crucial  so  that  Kosovo  and  Serbia  can  advance  on  their 
respective European paths. 

During  the  reporting  period,  the  Parties  adopted  an  Energy  Agreements’  Implementation 
Roadmap  in  June  2022,  which  enables  full  implementation  of  the  2013  and  2015  Dialogue 
Agreements  on  energy.  Following  the  agreement  reached  an  electricity  supply  license  was 
issued to Elektrosever, a Serbian-owned company established under Kosovo law, which will 
supply electricity to consumers in four Serb-majority municipalities in the north. Finalisation 
of the necessary technical agreements are under way to make the company fully operational. 
The Parties are expected to quickly implement all provisions of the Roadmap.  

Following tensions in the north of Kosovo at the end of July 2022, an agreement was reached 
on  27  August  2022  regarding  the  use  of  entry-exit  documents,  whereby  Serbia  agreed  to 
abolish these documents for Kosovo ID holders and Kosovo not to introduce them for Serbian 
ID  holders.  The  Parties  are  expected  to  urgently  reach  an  agreement  on  licence  plates  after 
they failed to find a permanent solution within the dedicated licence plate Working Group led 
by the EU, whose 6-month mandate expired in April 2022.  

During  the  reporting  the  period,  the  Parties  also  engaged  in  negotiations  on  a  political 
declaration on Missing Persons. No agreements were reached, but the Parties are encouraged 
to continue their negotiations all these topics.  

When it comes to the state of play on implementation of past Dialogue agreements:  

-  The  full  implementation  of  the  justice  agreement  drawn  from  the  April  2013  ‘First 
agreement of principles governing the normalisation of relations’ continues to require further 
efforts  by  the  Kosovo  authorities  as  Kosovo  does  not  respect  certain  provisions  of  the 
agreement;    

-  There  has  been  no  further  progress  on  the  implementation  of  the  25  August  2015 
the 
Agreements.  Kosovo  authorities  have 
Association/Community  of  Serb  majority  municipalities  in  Kosovo  and  Kosovo  is  urged  to 
engage constructively in its establishment with no further delay or obstruction;  

to  establish 

take  action 

failed 

to 

-  The  works  on  the  Mitrovica  bridge  have  long  been  completed  and  Serbia  is  expected  to 
engage constructive to allow the bridge to be opened to vehicle traffic without obstruction;  

-  As  regards  the  technical  dialogue  agreements  (2011-2012),  some  are  not  or  only  partially 
being implemented. Both Parties need to remain committed to the continued implementation 
of  the  agreement  on  representation  and  participation  of  Kosovo  in  regional  forums  and  not 
block the work of regional forums over bilateral disputes. The implementation of the cadastre 
and university diplomas recognition agreements is still pending. Serbia has yet to address the 
issue of re-located Serbian administrative customs structures with Kosovo denomination that 
operate from within Serbia, and to cease the issuance of documentation or affixing of stamps 
with denomination that contravenes the related agreement;  

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On IBM, the Interim Common Crossing-Points (CCPs) between Kosovo and Serbia continue 
to be operational. Only two of the six permanent CCPs have been established (Merdare and 
Mutivodë/Mutivode). In March 2022, Serbia agreed to open both entry and exit lanes at CCP 
Merdare and move their authorities into the new premises at CCP Mutivode. Both EU-funded 
CCPs are now fully operational. Serbia still has not established permanent CCPs to be hosted 
by their side (Jarinje /Rudnica, Končulj-Dheu i Bardhë and Depce /Muçibabë), which led to a 
suspension  of  EU  funds  for  this  project  in  July  2018.  In  addition,  Serbia  needs  to  engage 
constructively to  enable the construction of the third CCP hosted by  Kosovo in the north of 
Kosovo  at  Tabavije  /Bërnjak-  Tabalije/Brnjak.  Additional  efforts  are  needed  from  Serbia  to 
close illegal roads and by-passes to ensure exclusive use of official crossing points for goods 
and persons entering into or leaving Kosovo.  

- The parties have continued to comply with their respective obligations  under the telecoms 
agreement during the reporting period;  

- Requests for mutual legal assistance are in principle being processed;  

- Kosovo needs to respect the Arrangements for Official Visits more consistently.  

Overall,  Serbia  has  remained  engaged  in  the  Dialogue.  However,  the  Serbian  government 
needs to uphold its previous commitments and commit to the full implementation of all past 
Dialogue agreements. Moving forward,  Serbia also needs to make further substantial efforts 
to avoid actions that undermine stability and rhetoric that is not conducive to dialogue. Serbia 
should  contribute  to  a  conducive  environment  for  the  conclusion  of  a  legally-binding 
normalisation  agreement  with  Kosovo,  including  in  its  international  relations.  Serbia  is 
expected  to  engage  more  constructively  in  the  negotiations  on  the  legally-binding 
normalisation agreement in the coming period and show flexibility in order to make rapid and 
concrete progress.  

5. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP 

CLUSTER 2: INTERNAL MARKET  

This cluster covers chapters 1-free movement of goods, 2-freedom of movement for workers, 
3-right  of  establishment  and  freedom  to  provide  services,  4-free  movement  of  capital,  6-
company law, 7-intellectual property law, 8-competition policy, 9-financial services, and 28-
consumer and health protection. Four chapters have been opened, namely chapters 4, 5, 7 and 
9. Opening benchmarks are yet to be met on chapters 1 and 8. This cluster is key for Serbia’s 
preparations  for  the  requirements  of  the  EU’s  internal  market  and  is  of  high  relevance  for 
early integration and the development of the Common Regional Market. 

Progress was achieved in several areas within the cluster, particularly on legislative alignment 
on company law;  freedom  of movement  for workers through coordination of social security 
systems; and legislative alignment in the area of free movement of goods.  

In the coming period, Serbia is invited to focus on the following areas: to adopt an action plan 
to  ensure compliance with  Articles 34-36 of the  Treaty on the Functioning of the European 
Union and a strategy and action plan for implementing the EU  acquis on free movement of 
goods;  enhancing  cooperation  with  EU  Member  States  on  coordination  of  social  security 
systems;  adopting  the  law  on  services;  liberalising  capital  movements  in  line  with  the 
obligations  under  the  Stabilisation  and  Association  Agreement  (SAA);  aligning  with  the 
acquis  on  company  law;  harmonising  copyright  and  related  rights  legislation  with  the  EU 
acquis;  aligning the existing fiscal  state aid  schemes with  the EU  acquis  and improving the 
track record in the area of competition and State aid; implementing the laws aligning with the 
capital  requirement  acquis  in  the  banking  sector;  further  alignment  with  the  EU  consumer 

89 

 
 
protection and health protection acquis, including on substances of human origin, tobacco and 
medicines for human and veterinary use.  

Chapter 1: Free movement of goods  

The free movement of goods ensures that many products can be traded freely across the EU 
based on common rules and procedures. Where products are governed by national rules, the 
principle of the free movement of goods prevents these creating unjustified barriers to trade. 

Serbia is moderately prepared in the area of free movement of goods. Some progress was 
made  by  removing  all  ‘transitional  provisions’  regarding  the  Serbian  conformity  mark  from 
its  legislation  and  in  the  general  principles  area  in  line  with  last  year’s  recommendation.  In 
addition, Serbia aligned with the EU  acquis on cultural objects, and somewhat increased its 
administrative  capacity  for  standadisation.  Other  recommendations  from  last  year’s  report 
remain valid. 

In the coming year Serbia should in particular: 

  finalise and adopt an action plan to ensure compliance with Articles 34-36 of the Treaty 
on  the  Functioning  of  the  European  Union  (TFEU),  and  a  strategy  and  action  plan  for 
implementing the EU acquis in this chapter for both the sectoral (‘new approach’ and ‘old 
approach’) and horizontal legislation and relevant organisations;  

  provide  adequate  administrative,  financial  and  human  resources  capacity  for  market 
surveillance,  the  agency  for  the  homologation  of  vehicles,  as  well  as  for  the 
implementation  of  the  European  Regulation  on  Registration,  Evaluation,  Authorisation 
and Restriction of Chemicals (REACH). 

General principles  

On  the  general  principles,  Serbia  still  needs  to  adopt  a  strategy  and  an  action  plan  to 
implement  the  EU  acquis  in  this  chapter  for  both  the  sectoral  (‘new  approach’  and  ‘old 
approach’) and horizontal legislation as well as for relevant organisations. Serbia has removed 
all ‘transitional provisions’ in regard to the use of the Serbian conformity mark and certificate 
of conformity after accession to the EU from its legislation.  

Non-harmonised area  

On  horizontal  measures,  an  action  plan  ensuring  compliance  with  Articles  34-36  of  the 
Treaty on the Functioning of the European Union (TFEU) remains to be adopted.  

Harmonised area: Quality infrastructure  

In January 2022 Serbia established a quality council to further promote and improve quality 
infrastructure,  an  expert  advisory  body 
tasked  with  monitoring  and  providing 
recommendations on quality infrastructure-related activites.   

Key  national  quality  infrastructure  institutions  are  members  of  relevant  European  and 
international organisations and are already well established and regulated. However, shortages 
in  human  resources  in  the  institutions  dealing  with  the  standardisation,  accreditation 
(conformity  assessment  bodies),  and  market  surveillance  (budgeting),  need  to  be  addressed 
and strengthened further. 

On  standardisation,  there  are  163  national  Standardisation  technical  committees  in  the 
Institute  for  Standardisation  of  Serbia.  In  the  reporting  period  the  Serbian  Institute  for 
Standardisation  adopted  99.68  %  of  the  European  Committee  for  Standardisation  (CEN) 
standards,  97.71  %  of  the  European  Committee  for  Electrotechnical  Standardisation 
(CENELEC)  standards  and  100  %  of  the  European  Telecommunications  Standards  Institute 

90 

 
 
(ETSI)  standards.  9  %  of  European  standards  and  deliverables  were  adopted  by  the 
‘translation method’ and the rest by the ‘cover page’ method.  

The number of conformity assessment bodies in Serbia is currently 744 and out of these, 14 
are  designated  and  registered  for  carrying  out  conformity  assessment  according  to  technical 
legislation. The obligations regarding certificates of conformity were repealed by Serbia for 
all Directives  by amending the law on products for general use in February 2022. However, a 
small  number  of  certificates  of  conformity  still  applies  to  imports  of  goods  such  as  drones, 
and construction products such as cement, steel for the reinforcement of concrete and screws 
and vehicles for which it is necessary to obtain a homologation document. In December 2021 
and January 2022, Serbia adopted legislation aiming to align with the EU acquis on modules 
for  conformity  assessment  products  (A-H).  During  the  reporting  period,  the  Accreditation 
Body of Serbia (ATS) awarded 28 new accreditations,  revoked eight and suspended four .  

Serbian legilsation is partly aligned with the EU acquis on accreditation. Following the peer 
evaluation  of  the  Accreditation  Body  of  Serbia  (ATS)  by  the  European  Accreditation  Body 
(EA) in November 2021, seven non-conformities and nine comments were identified, which 
remain  to  be  addressed.  ATS  expanded  its  coverage  in  the  reporting  period,  to  include  the 
accreditation of certification bodies for assessing conformity in the area  of medical devices, 
construction products and the accreditation of medical laboratories.  

In the field of metrology, Serbia adopted the Law on precious metals items in May 2021 and 
the Regulation on legal units of measurement and manner of their use in December 2021, both 
designed to further align with the EU acquis. Serbia is partly aligned with the EU acquis on 
metrology.  During  the  reporting  period  the  Directorate  for  Measures  and  Precious  Metals 
(DMDM) has published 171 new calibration and measurement capabilities in various fields. 
The number of internationally recognised standards for calibration and measurement stands at 
34.  

On market surveillance, Serbia’s legislation  remains to be aligned with the EU acquis that 
came into force in July 2021. The market surveillance inspectorate has 337 staff, however, its 
financing and budget still require additional strengthening. In the reporting period, the market 
surveillance  and  inspection  authorities  carried  out  more  than  6  100  inspections  and  ordered 
503  corrective  and  restrictive  measures  for  non-compliant  or  unsafe  products,  while 
approximately 135 000 tonnes of unsafe imported products were taken off the market.  

Harmonised area: sectoral legislation  

In  the  area  of  ‘new  and  global  approach’  product  legislation,  Serbia  adopted  secondary 
legislation  designed  to  partly  align  with  the  EU  acquis  on  pressure  equipment  and  simple 
pressure  vessels,  as  well  as  on  energy  labelling  and  medical  devices.  Serbian  legislation  on 
cableways,  radio  equipment,  gas  appliances,  construction  products,  civil  explosives, 
pyrotechnic articles and eco-design remain partially aligned with the EU acquis.  

In  the  area  of  the  ‘old  approach  product  legislation’,  no  further  progress  was  made  on 
alignment to the EU Regulation on the Registration, Evaluation, Authorisation and Restriction 
of  Chemicals  (REACH).  The  administrative  and  inspection  capacity  for  implementing  the 
REACH, the CLP (classification, labelling and packaging) regulation, and the legislation on 
vehicle homologation requires strengthening. Serbia is partly aligned with the EU acquis on 
detergents.  It  is  not  aligned  with  the  EU  acquis  on  tractors,  motor  vehicles  including  the 
vehicles with 2 or 3 wheels, non-road machinery, fertilisers and drug precursors.   

On procedural measures, in April 2022 Serbia adopted and implemented a national control 
list  for  dual-use  goods  designed  to  be  aligned  with  the  EU  acquis,  and  in  June  2022 
published a national control list of weapons and military equipment. Serbian legislation on 

91 

 
 
medicinal products pricing is not aligned with the EU acquis, while its legislation on firearms 
is  partly  aligned.  Serbia  adopted  a  new  law  in  December  2021,  which  is  designed  to  be 
aligned with the EU acquis on cultural objects.  

Chapter 2: Freedom of movement for workers 

Citizens of  one Member  State have the right to  work in  another Member State and must be 
given the same working and social conditions as other workers.  

Serbia  is  moderately  prepared  in  the  area  of  freedom  of  movement  for  workers.  Some 
progress  was  made on last  year’s  recommendation to  further  enhance  cooperation with  EU 
Member  States  on  coordination  of  social  security  systems.  Serbia  continued  to  carry  out 
preparations for joining the European network of employment services (EURES).  

In the coming year, Serbia should in particular: 

  continue  to  enhance  cooperation  with  EU  Member  States  on  coordination  of  social 

security systems. 

The procedures for issuing work permits to EU citizens, who are currently covered by rules 
for  third  country  nationals,  need  to  be  further  simplified.  In  2021,  a  total  of  23 662  work 
permits were issued, of which 2 508 to EU citizens.  

Serbia’s  National  Employment  Service  (NES)  has  continued  to  carry  out  preparations  for 
joining EURES, notably by initiating preparations for adapting the work processes of NES to 
EURES requirements. NES also organised EURES-related training sessions for the staff of its 
migration services centres and upgraded its information system. 

Regarding the coordination of social security systems, bilateral agreements are in place with 
20  EU  Member  States,  with  an  agreement  having  been  signed  with  Austria  in  April  2022. 
There were no developments in negotiations on the electronic exchange of social security data 
with  Germany,  Italy,  Hungary,  and  Poland.  Electronic  exchange  of  social  security  data  is 
operational  with  Croatia,  Slovenia,  Montenegro  and  North  Macedonia.  Overall,  legislative 
and technical conditions for social security institutions to cooperate with their counterparts in 
EU Member States need to be further improved.  

There  were  no  developments  on  the  European  Health  Insurance  Card.  So  far,  Serbia 
concluded agreements  on  the  use  of the card with nine EU Member States and negotiations 
are underway with Belgium. 

Chapter 3: Right of establishment and freedom to provide services  

EU natural and legal persons have the right to establish themselves in any Member State and 
to provide cross-border services. For certain regulated professions, there are rules on mutual 
recognition of qualifications. Postal services are gradually being opened up to competition.  

Serbia is  moderately  prepared  in  these areas.  Limited progress  was made on the right  of 
establishment  and  freedom  to  provide  services  with  the  further  alignment  of  sectoral  laws 
with the EU acquis and the adoption of  the Strategy for the development of postal services 
for the period 2021-2025. The Commission recommendations from 2021 remain valid. 

In the coming year, Serbia should in particular: 

  adopt  the  horizontal  law  on  services,  complete  alignment  of  sectoral  laws  with  the 
horizontal law and the EU acquis and establish a Point of Single Contact via a portal that 
offers  online  information  to  service  providers,  including  on  all  relevant  administrative 
procedures;  

92 

 
 
  continue  making  progress  on  the  alignment  of  national  legislation  with  the  EU  postal 

acquis and furthery strengthen the capacity of the postal services inspectorate; 

  continue harmonisation on mutual recognition of professional qualifications.  

In the area of establishment and freedom to provide services, the horizontal Law on services, 
aiming to  align with the EU services directive, remains  to be adopted. Serbia has continued 
with  the  screening  and  alignment  of  sectoral  laws  with  the  draft  horizontal  law  and  the  EU 
Services directive. . No Point of Single Contact has been established – its establishment and 
functioning are dependent on the adoption of the horizontal law on services. 

A  legal  gap  analysis  of  the  Law  on  postal  services,  which  entered  into  force  in  November 
2019, was completed in December 2021, with EU support. The law is partly aligned with the 
Postal Services Directive and maintains a reserved area for the provision of universal service. 
Serbia  still  also  needs  to  align  its  national  legislation  with  the  Regulation  on  cross-border 
parcel  delivery  services.  The  strategy  for  the  development  of  postal  services  for  the  period 
2021-2025 was adopted in July 2021. The Regulatory Agency for Electronic Communications 
and Postal Services is the national regulatory authority in the field of postal services. 

The administrative capacity of the postal services inspectorate remained stable.  

In  the  field  of  mutual  recognition  of  professional  qualifications,  following  review  the 
Serbian law on the recognition of professional qualifications, adopted in September 2019, and 
the  amendments  to  the  Law  on  planning  and  construction  national  legislation  is  largely 
aligned with the EU acquis. A preliminary list of fifty regulated professions, drafted with EU 
support, is pending adoption. Further alignment is needed on the relevant sectoral legislation.  

Chapter 4: Free movement of capital  

In  the  EU,  capital  and  investments  must  be  able  to  move  without  restriction  and  there  are 
common rules for cross-border payments. Banks and other economic operators apply certain 
rules to support the fight against money laundering and terrorist financing.  

Serbia remains moderately prepared on free movement of capital. Limited  progress  was 
made overall during the reporting period, with the adoption of the national money laundering 
risk  assessment, the  national  terrorism  financing  risk  assessment, the  money  laundering  risk 
assessment  in  the  virtual  assets  area  and  the  risk  assessment  in  the  weapons  of  mass 
destruction  (WMD)  in  the  proliferation  financing  area.  Last  year’s  recommendations  thus 
remain valid. 

In the coming year Serbia should in particular: 

  liberalise  capital  movements  in  line  with  its  obligations  under  the  Stabilisation  and 
Association  Agreement  (SAA),  in  particular  the  restrictions  on  the  acquisition  of 
agricultural land; 

  demonstrate, through a track record, increasing  effectiveness  in  monitoring, supervision, 

financial intelligence, investigation and reporting. 

In  the  field  of  capital  movements  and  payments,  Serbia  has  liberalised  most  capital 
transactions.  Certain  restrictions  on  capital  movements  remain  for  reasons  of  public  policy 
and macro-financial stability. These must be justified, targeted and proportionate and should 
be gradually lifted. The agricultural law still does not provide EU citizens and Serbian citizens 
with the same conditions in terms of acquiring agricultural land. It is, as such, not compliant 
with  the  SAA.  Amendments  on  the  legislation  on  the  elements  of  property  law  relations, 
relevant to the acquisition of property rights, are being drafted.  

93 

 
 
On  payment  systems,  no  changes  were  made  to  align  the  Law  on  multilateral  interchange 
fees and special operating rules for card-based payment transactions with the acquis and SAA 
obligations (See Chapter 8 – Competition Policy). 

On the fight against money laundering and terrorism financing, Serbia is still reporting to 
Moneyval about the implementation of the outstanding 2016 mutual evaluation report (2016 
MER)  recommendations.  Moneyval  issued  a  new  compliance  report  in  September  2021. 
Financial  Action  Task  Force  (FATF)  concluded  that,  overall,  Serbia  has  made  progress  in 
addressing  the  technical  compliance  deficiencies  identified  in  its  MER  and  applicable 
subsequent  third  Enhanced  Follow-up  Report  and  has  been  re-rated  on  five  FATF 
recommendations (four upgrades and one downgrade). Serbia will remain in enhanced follow-
up  and  is  expected  to  report  back  in  2023  to  Moneyval  on  progress  to  strengthen  its 
implementation of anti-money laundering and counter-terrorist financing measures.  

In  September  2021,  Serbia  adopted  the  national  money  laundering  risk  assessment,  the 
national  terrorism  financing  risk  assessment,  the  money  laundering  risk  assessment  in  the 
virtual assets area and the risk assessment in the weapons of mass destruction (WMD) in the 
proliferation financing area. The findings of the aforementioned were introduced in the latest 
adopted 2022-2024 action plan accompanying the national anti-money laundering/combating 
the financing of terrorism (AML/CFT) stategy. 

In  2021,  the  National  Bank  of  Serbia  established  records  of  virtual  currency  holders  and  a 
register of virtual currency service providers, in line with the Law on digital assets.  

The capacity of the administration for the prevention of money laundering (APML) remained 
at  the  decreased  number  of    35  employees  with  full  capacity  envisaged  at  42  members.  In 
2021,  2053  suspicious  transactions  were  reported.  The  highest  number  came  from  banks 
followed by casinos, with 866 and 805 reports on suspicious clients respectively. The APML 
submitted information on 288 reports and 420 responses to relevant enforcement authorities. 
Altogether 110 reports and 132 responses were submitted to the prosecution services.  

Chapter 6: Company law  

The  EU  has  common  rules  on  the  formation,  registration  and  disclosure  requirements  of  a 
company,  with  complementary  rules  for  accounting  and  financial  reporting,  and  statutory 
audit.  

Serbia has a good level of preparation in company law. Some progress was made during the 
reporting period through the adoption of the Law on the capital market and of amendments to 
the Law on companies . Nevertheless, further alignment is needed in the company law area.  

In the coming year, Serbia should in particular: 

  further align with the EU acquis on company law, in particular on company takeovers. 

As  regards  company  law,  Serbia’s  legislation  is  largely  aligned  with  the  EU  acquis.  In 
November  2021,  Serbia  adopted  amendments  to  the  Law  on  companies  aligning  with  the 
acquis  on  long-term  shareholder  engagement.  Adoption  of  a  new  law  on  takeovers  of  joint 
stock companies and related legislation to align with the acquis on company takeovers is still 
pending. Further alignment is needed with the 2019 company law acquis on the use of digital 
tools and on cross-border operations. 

Serbia’s corporate governance code is based on EU best practice and OECD principles. The 
Serbian business registers agency acts as a one-stop shop, where companies obtain a unique 
registration and tax identification number and online access to company information; it also 
allows  for  electronic  registration  of  the  establishment  of  limited  liability  companies.  The 

94 

 
 
database  of  companies  in  the  business  register  should  be  ready  to  interconnect  with  EU 
Member States’ business registers in the future.  

The new Law on capital market was adopted in December 2021 and will enter into force in 
January  2023.  The  law  aims  to  align  fully  with  the  Transparency  Directive  for  listed 
companies.  

Concerning company reporting, the new financial reporting rules, as stipulated by the Law 
on accounting, became applicable to more than 250 000 companies in 2021, and for the first 
time, companies must compile  financial statements in line with the new provisions of the law 
and its secondary legislation, and submit them to the Serbian Business Register Agency. All 
accounting  services  providers  are  expected  to  align  with  the  law  and  register  in  the  new 
Registry  of  Accounting  Services  Providers  by  January  2023.  Under  the  law  on  accounting, 
companies averaging more than 500 employees per year are obliged to prepare non-financial 
statements. The Securities Commission, established as the sole public audit oversight body by 
the Law on auditing, prepared guidelines for imposing measures on audit firms and licenced 
authorised auditors, which were authorised in May 2022.  

Chapter 7: Intellectual property law 

The EU has harmonised rules for the legal protection of intellectual property rights (IPR), as 
well  as  rules  for  the  legal  protection  of  copyright  and  related  rights.  Rules  for  the  legal 
protection  of  IPRs  cover,  for  instance,  patents  and  trademarks,  designs,  biotechnological 
inventions and pharmaceuticals. Rules for the legal protection of copyright and related rights 
cover, for instance, books, films, computer programmes and broadcasting.   

Serbia has a  good level  of preparation  on intellectual property  rights.  Some progress  was 
made  with  the  adoption  of  the  amendments  to  the  law  on  patents,  the  development  of  a 
platform  for  information  exchange  and  coordination  among  different  IPR  enforcement 
stakeholders  including  an  online  interface  for  submission  of  requests  for  protection  of  IP 
rights to the market inspectorate. 

In the coming year Serbia should in particular: 

  harmonise  copyright  and  related  rights  legislation  with  the  EU  directives  on  collective 

rights management and on orphan works;  

  strengthen  enforcement,  by  improving  capacities  and  further  increasing  coordination  of 

different stakeholders. 

Preparation of a new Law on copyrights and related rights continued, with the aim to ensure 
full  alignment  with  the  acquis,  including  in  the  areas  of  collective  rights  management  and 
orphan rights.  

On industrial property rights, in  December 2021, Serbia adopted amendments to  the  Law 
on  patents  whichfurther  align  Serbia’s  legislation  with  the  regulation  on  the  supplementary 
protection  certificates  manufacturing  waiver.  The  Intellectual  Property  Office  remains 
relatively well staffed and efficient in registering trademarks.  

Concerning enforcement, the number of employees in the market inspectorate specialising in 
the  field  of  intellectual  property  remained  unchanged  at  40  inspectors,  while  their  area  of 
work will be expanded to include identification of infringements in computer software as of 
October 2022 taking over the competences from  the Tax Administration that employed four 
inspectors  for  these  tasks.  The  number  of  software  legality  checks  carried  out  by  the  Tax 
Administration  increased  in  2021.  The  overall  amount  of  counterfeit  and  pirated  goods 
confiscated  by  the  market  inspectorate  dropped  significantly  in  2021,  while  the  number  of 

95 

 
 
requests submitted by economic operators slightly increased. The number of customs officers 
specialised  in  intellectual  property  protection  dropped  from  14  in  2020  to  12  in  2021.  The 
number  of  items  detained  by  the  customs  administration  decreaesed  substantially  in  2021, 
while the number of destroyed items  slightly increased. Due to  judges not  being adequately 
specialised  and  the  increasing  number  of  incoming  cases,  the  capacity  of  the  judiciary  to 
handle intellectual property rights cases remains limited.  

Work to further align with the EU Directive on the enforcement of intellectual property rights 
(IPRED  Directive)  is  ongoing.  The  coordination  body  for  the  enforcement  of  intellectual 
property  rights  held  two  meetings.  The  two  working  groups  of  the  coordination  body  held 
three  meetings  in  total  and  have  started  strengthening  their  cooperation  in  enforcement 
matters.  A  dedicated  platform  for  information  exchange  among  intellectual  property  rights 
enforcement  institutions  and  an  online  interface  for  electronic  submission  of  requests  for 
protection of intellectual property rights to the market inspectorate are being finalised.  

Chapter 8: Competition policy 

EU rules protect free competition. They include antitrust rules against restrictive agreements 
between  companies  and  abuse  of  dominant  position,  and  rules  on  concentrations  between 
companies,  which  would  significantly  impede  effective  competition.  EU  rules  also  set  out  a 
system  of  State  aid  control.  Governments  are  only  allowed  to  grant  State  aid  if  restrictive 
conditions are met, with a view to preventing distortion of competition.   

Serbia  is  moderately  prepared  in  the  area  of  competition  policy.  Limited  progress    was 
made on legislative alignment of state aid rules with the EU acquis (adoption of implementing 
legislation)  and  through  submitting  a draft  inventory  of state  aid  schemes. No progress was 
made  towards  last  year’s  recommendations  on  the  alignment  of  the  fiscal  state  aid  schemes 
and  the  law  on  multilateral  fees  and  special  operating  rules  for  card-based  payment 
transactions  with  the  EU  acquis  andobligations  under  the  Stabilisation  and  Association 
Agreement (SAA). Last year’s recommendations therefore remain largely valid. 

In the coming year Serbia should in particular: 

  align  the  existing  fiscal  state  aid  schemes  and  work  towards  aligning  the  Law  on 
multilateral  interchange  fees  and  special  operating  rules  for  card-based  payment 
transactions with the EU acquis and SAA obligations;  

  ensure that the notification and the standstill obligations are systematically respected for 
all state aid measures and provide a solid track record in the implementation of laws on 
protection of competition and state aid control; 

  finalise  the  inventory  and  define  an  action  plan  for  the  alignment  of  all  existing  aid 

schemes identified as incompatible with the SAA obligations. 

Antitrust and mergers  

The legislative framework is broadly in line with Articles 101 and 102 of the Treaty of the 
Functioning  of  the  European  Union  (TFEU)  and  related  provisions  of  the  Stabilisation  and 
Association Agreement (SAA). . The current law on protection of competition provides for an 
ex  ante  control  of  mergers.  Three  block  exemption  regulations  providing  further  alignment 
with the EU acquis remain to be adopted. The legislative framework is yet to be fully brought 
in  line  with  EU  guidelines  and  communications  in  this  area.  Preparations  on  a  new  law  on 
protection of competition have not yet started. No progress was made in aligning article 9 of 
the Law on multilateral interchange fees and special operating rules for card-based payment 
transactions, with the EU acquis and the relevant provisions of the SAA.  

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Regarding  the  institutional  framework,  the  Commission  for  Protection  of  Competition 
(CPC) is the legally independent authority responsible for implementing the legal framework. 
Over the past years, the CPC has built a reputation of an operationally independent institution. 
However, the transparency of the institution’s work remains to be strengthened and decisions 
should be systematically published.  

The  enforcement  capacity  of  the  CPC  is  adequate,  at  57  employees  of  whom  33  are  case 
handlers with an adequate level of expertise. On implementation, the CPC has continued to 
investigate a significant number of antitrust cases. In 2021, the CPC adopted  6 decisions on 
restrictive  agreements  and  4  on  abuse  of  dominant  position.  A  total  of  6  dawn  raids  in  the 
context of 3 cases were conducted in 2021. The leniency programme was not used. The level 
of imposed fines increased from around EUR 0.5 million in 2020 to  over EUR 1 million in 
2021. There were no mergers prohibited in 2021, but 1 decision with remedies imposed in a 
merger  case.  The  CPC  published  3  sector  enquiries  in  2021  concerning  the  markets  on 
intercity bus transportation, primary education textbooks and ceramic tiles and sanitary ware. 
The CPC issued 18 opinions on draft legislation in 2021. The practice of consulting the CPC 
on  all  relevant  legislation  should  continue  and  their  opinions  be  systematically  taken  into 
account.  The  number  of  CPC  decisions  upheld  by  appeal  courts  continued  to  increase.  The 
capacity  and specialisation of  the judiciary  to  deal  with  complex competition cases remains 
modest and needs to be significantly improved. Advocacy activities should be further stepped 
up. 

State aid  

Regarding the legislative framework, the Law on state aid control is broadly in line with the 
EU acquis and the relevant provisions of the SAA. Four new decrees were adopted during the 
reporting  period:  aid  for  enviornment  and  energy  sectors,  public  service  compensation  to 
undertakings entrusted with provision of service of general economic interest, de minimis aid 
for  provision  of  services  of  general  economic  interest  and  state  aid  rules  for  public  service 
broadcasting. The four decrees adopted in 2019 on a temporary framework on state support to 
the economy in the context of the COVID-19 crisis were extended in December 2021 in line 
with  the  EU  temporary  framework.  In  addition,  the  partial  repeal  of  the  EU  temporary 
framework  which  took  place  at  the  end  of  June  2022  was  also  adopted  in  line  with  the  EU 
provisions.  

The  Commission  for  State  Aid  Control  (CSAC)  adopted  three  guidelines  and  one  rulebook 
during the reporting period. However, further alignment with the EU acquis is still needed as 
regards implementing legislation. The existing aid schemes, most notably the fiscal state aid 
schemes established by the laws on corporate income tax, on personal income tax and on free 
zones, are not yet harmonised with the EU acquis. The CSAC prepared its 2021 annual report 
on the inventory of state aid schemes. They have also submitted an updated inventory to the 
Commission.  However,  the  Commission’s  comments  on  the  inventory  should  be  taken  on 
board  and  an  action  plan  with  a  clear  timetable  for  alignment  of  the  schemes  identified  as 
incompatible  remains  to  be  adopted  by  the  government.  Furthermore,  the  regional  aid  map 
still remains to be drafted.  

On the institutional framework, the CSAC is responsible for implementing the law on state 
aid control. The law provides that the CSAC is accountable to the Parliament and secures its 
legal  independence.  However,  the  operational  independence  of  the  CSAC  needs  to  be 
demonstrated  through  establishing  a  transparent  track-record  demonstrating  consistent  and 
adequate implementation of the law.   

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The CSAC’s enforcement capacity should be further strengthened, as it has 22 members of 
staff including the president, four council members and 11 case handlers; significantly lower 
than the the 27 case handlers allowed. 

The  implementation  of  the  law  on  state  aid  control  should  be  further  strengthened.  In 
particular,  the  notification  and  the  standstill  obligations  are  still  not  being  systematically 
respected  and  state  aid  is  occasionally  provided  to  economic  operators,  particularly  foreign 
investors,  without    prior  approval  by  the  CSAC.  The  number  of  decisions  taken  upon 
notification  increased  from  38  in  2020  to  129  in  2021.  In  2021,  only  1  decision  in  ex  post 
procedure was taken. A first recovery decision was adopted and 1 conditional decision. The 
CSAC did not take any ex-ante prohibition decision on any state aid. Only 1 CSAC decision 
was appealed. The specialised electronic platform to help monitor compliance regarding the 
cumulation of aid should be completed. The CSAC should ensure the strict enforcement of its 
state aid rules, also if the aid relates to  agreements concluded with third countries. Advocacy 
activities  among  aid-granting  authorities  need  to  continue  as  awareness  regarding  state  aid 
rules remains to be addressed systematically. Serbia needs to ensure that the allocation of state 
funds  under  the  post  COVID-19  economic  recovery  framework  is  conducted  in  a  non-
discriminatory and transparent way.  

Liberalisation  

Provisions on financing of services of general economic interest were included in two decrees 
-  on  public  service  compensation  to  undertakings  entrusted  with  responsibility  for  the 
provision  of  services  of  general  economic  interest  and  on  de  minimis  aid  for  provision  of 
services of general economic interest  adopted in October 2021. Enforcement of competition 
rules for public companies needs to be intensified. There are no monopolies of a commercial 
character within the meaning of Article 37 TFEU. 

Chapter 9: Financial services  

EU rules aim at ensuring fair competition between and the stability of financial institutions, 
namely  banking,  insurance,  supplementary  pensions,  investment  services  and  securities 
markets. They include rules on authorisation, operation and supervision of these institutions.  

Serbia remains moderately prepared in the area of financial services. Limited progress was 
made  with  the  adoption  of  the  Law  on  the  capital  market.  Nevertheless,  last  year’s 
recommendations still remain valid. 

In the coming year, Serbia should in particular: 

  continue  to  implement  outstanding  Basel  III  standards  in  line  with  their  finalisation  and 

introduction at EU level;  

  continue  to  work  towards  full  alignment  with  the  Solvency  II  directive  in  the  area  of 

insurance.   

On  banks  and  financial  conglomerates,  Serbia  has  largely  implemented  the  Basel  III 
standards.  

The banking sector’s prudential ratios are being regularly monitored by the National Bank of 
Serbia  (NBS)  following  the  adoption  of  the  amendments  to  the  decision  on  reporting 
requirements for banks in 2016. Alignment of national legislation with the revised version of 
the EU Bank Recovery and Resolution Directive (BRRD) is still to be completed.  

The  application  of  the  international  financial  reporting  standards  (IFRS),  applicable  as  of  1 
January  2018,  is  completed.  Banks  will  continue  to  implement  IFRS  as  adopted  at 

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international level under NBS’s supervision. With 3.33 % at the end of April 2022, he level of 
non-performing loans (NPL) recorded its historically lowest level.  

Regarding  insurance  and  occupational  pensions,  the  drafting  on  the  Law  on  compulsory 
traffic insurance is underway.  

Preparatory work is ongoing in the context of aligning with the Solvency II directive in line 
with  the  strategy  for  implementation,  also  supported  by  EU  funds.  Certain  provisions  were 
already implemented regarding qualitative requirements under pillar 2, but further work is still 
to be carried out to ensure full alignment with the EU acquis.  

Alignment is still to be completed as regards the Directive on the activities and supervision of 
institutions  for  occupational  retirement  provision  in  the  areas  of  cross-border  activities, 
investment rules and regulation of technical provisions.  

In the area of financial market infrastructure, with the adoption of the new Law on capital 
market in Decemer 2021, Serbia is aiming to align with the Directive on settlement finality in 
payment  and  securities  settlement  systems  (SFD),  which  will  become  effective  in  January 
2023.  

On  securities  markets  and  investment  services,  the  new  Law  on  capital  market,  aims  at  
aligning  the  Serbian  regulatory  framework  with  the  Markets  in  Financial  Instruments 
Directive  (MiFID  II).  An  additional  set  of  legislation  and  implementing  legislation  is  being 
drafted.  

The administrative capacity of the Securities Commission in this area remains weak. 

Chapter 28: Consumer and health protection  

EU rules protect consumers’ economic interests and in relation to product safety, dangerous 
imitations and liability for defective products. The EU also ensures high common standards 
for tobacco control, blood, tissues, cells and organs, and as well as medicines for human and 
veterinary use. The EU also ensures high common standards for upholding patients’ rights in 
cross-border  healthcare  and 
including 
communicable diseases. 

tackling  serious  cross-border  health 

threats 

Serbia  is  moderately  prepared  in  consumer  and  health  protection.  Limited  progress  was 
made concerning the digitalisation of the health sector, as well as the increase in  healthcare 
professionals. The recommendations of the previous report remain valid.  

In the coming year, Serbia should in particular:   

  ensure the necessary institutional, administrative and technical capacity to implement the 

EU acquis under this chapter; 

  strengthen the overall managerial capacity, human resources and financial sustainability of 
the public health insurance fund, and of the relevant authorities for consumer protection, 
market surveillance and sanitary inspection; 

  further align its legislation with the EU acquis on substances of human origin, on patients’ 
rights in cross-border healthcare, on tobacco control, and on medicines for human and for 
veterinary use. 

Consumer Protection 

Concerning  general  aspects  of  consumer  protection,  Serbia  adopted  an  amended  Law  on 
consumer  protection  in  September  2021  designed  to  improve  out-of-court  procedures  and 
mediation between traders and consumers. The national council for consumer protection did 

99 

 
 
not hold sessions in the reporting period but it issued opinions on issues of importance such as 
the  Decision  regarding  the  energy  endangered  consumer.  Serbia  initiated  17  proceedings 
based  on  consumer  complaints  in  the  reporting  period.  Of  these,  12  decisions  were  to 
terminate proceedings  and five decisions  were  taken on imposed legal  measures  concerning 
violation of the collective interest of consumers.  

There  are  17  registered  consumer  organisations  in  the  national  registry.  In  2021  eight 
consumer  organisations  were  selected  for  financing  by  the  line  ministry  for  four 
administrative regions, with various programmes to be implemented in the field of consumer 
protection.  At  the  end  of  the  reporting  period,  Serbia  had  46  alternative  dispute  resolution 
bodies (ADRs). There is a risk that such a high number of ADRs might confuse the consumer 
when choosing the competent entity.  

In 2021 and 2022, in its capacity of an ADR in charge of financial institutions, the National 
Bank of Serbia (NBS) handled a total of 3 348 cases, of which 2 062 related to banks and 1 
267 to insurance companies. It issued two  decisions on individual complaints simultaneously 
imposing  fines  and  twenty  two  decisions  ordering  a  financial  service  provider  to  eliminate 
irregularities without fines. The NBS also  resolved  13 mediation proceedings  and fined one 
bank on advertising campaign irregularities. 

The mode of cooperation between ministries and consumer organisations remains unchanged, 
while consumer protection organisations would benefit from further promotion of their work 
on  the  protection  of  consumer  interests  and  rights  to  the  general  public.  The  authorities’ 
administrative capacity for consumer protection, inspection services for consumer protection 
and for product safety issues still needs strengthening. Amendments to the law on consumer 
protection  need  to  be  adopted  to  address  unfair  commercial  practices,  contract  terms  and 
vulnerable  consumers.  Serbia’s  legislation  is  designed  to  be  aligned  with  the  EU acquis on 
consumers  rights,  while  further  legislative  alignment  is  required  with  the  Consumer 
Protection Cooperation regulation. 

There were no developments regarding product safety-related issues in the reporting period. 
Regarding  market  surveillance,  the  sanitary  inspection’s  administrative  capacities  need 
strengthening.  The  product  safety  council  did  not  hold  any  sessions  in  2022.  In  2021  the 
market inspection sector registered 6 729 consumer complaints, while in the reporting period 
the  National  Register  of  Consumer  Complaints  registered  23  294  complaints,  out  of  which 
74.5  %  related  to  goods  and  25.6  %  to  services.  In  2021  and  2022,  the  market  surveillance 
authorities  carried  out  7  312  non-food  product  inspections.  More  than  100  misdemeanor 
proceedings  were  initiated  at  the  court.  In  the  reporting  period,  the  market  surveillance  and 
inspection authorities carried out more than 6 100 inspections and ordered 503 corrective and 
restrictive  measures  for  non-compliant  or  unsafe  products,  while  approximately  135  000 
tonnes of unsafe imported products were taken off the market.  

On  non-safety-related  issues,  Serbia´s  legislation  is  partly  aligned  with  the  EU  acquis  on 
package  travel  and  linked  travel  arrangements.  Further  alignment  with  the  EU  acquis  is 
needed  regarding  cooperation  between  national  authorities  responsible  for  enforcing 
consumer  protection  laws,  multiannual  consumer  programmes,  package  travel,  online 
resolution of consumer disputes, and alternative resolution of consumer disputes.  

Public Health 

In the area of public health, Serbia’s legislation on healthcare is partly aligned with the EU 
acquis.  The  sustainability  of  the  public  health  insurance  fund  still  needs  to  be  ensured.  The 
national plan for human resources in the health sector has not been implemented even though 
over 1 300 health professionals were newly employed during the reporting period, in addition 

100 

 
 
to the 2 500 from the start of the COVID-19 pandemic. The EU-funded centralised electronic 
health record system is still not being used and compliance with EU health indicators is not 
yet ensured.  

Tobacco  control  legislation  is  partly  aligned  with  EU  acquis,  but  there  is  a  need  to  ensure 
further alignment and due implementation of the legislation and to intensify inspections in this 
area.  A  strategy  on  tobacco  control  remains  to  be  adopted,  including  an  action  plan  on 
alignment  with  the  EU  acquis  in  this  field  and  with  the  World  Health  Organisation 
Framework Convention on Tobacco Control.  

On blood, tissues, cells and organs, laws on the transplantation of cells and tissues, and on 
human organ transplantation, remain to be implemented since 2019. EU-level quality, safety 
standards  and  inspection  services  still  need  to  be  developed.  The  overall  administrative  and 
technical capacity of the directorate for biomedicine to conduct oversight of the sector as the 
competent authority remains very limited.  

On cross-border healthcare, Serbian legislation is partly aligned with the EU acquis on the 
application  of  patients’  rights.  On  serious  cross-border  health  threats,  including 
communicable  diseases,  surveillance  and  response  capacity  remains  limited  and  requires 
modernisation.  While  Serbia  reports  on  several  communicable  diseases  to  the  European 
Surveillance  System  (TESSy),  though  not  on  COVID-19,  it  should  ensure  timely  and 
comprehensive  data.  Serbia  adopted  a  new  digital  health  programme  for  2022-2026  in 
February 2022, but a centralised health information and communication system remains to be 
implemented.  

Regarding  communicable  diseases,  attention  needs  to  be  given  to  effective,  sustainable 
financing  of  disease-specific  strategies,  including  the  national  HIV/AIDS  strategy,  and  to 
raising awareness,  particularly on the importance of child vaccination.  Serbia has  a national 
surveillance system for anti-microbial resistance in humans, but the prescription of antibiotics 
needs  to  be  strictly  controlled  to  strengthen  the  fight  against  anti-microbial  resistance. 
Additional work is needed on quality control and standardisation of laboratories.  

In  response  to  the  COVID-19  pandemic,  Serbia  applied  measures  foreseen  by  its  Law  on 
infectious  diseases  and  aligned  its  actions  with  the  recommendations  of  the  World  Health 
Organization.  It  started  mass  vaccination  in  February  2021,  sourcing  large  volumes  of 
vaccines  itself,  and  received  over  285  000  doses  from  EU  Member  States.  By  June  2022, 
44.74 % of the population was fully vaccinated, though hesitancy especially among younger 
people remains high, partly due to misinformation, disinformation and a lack of coordinated 
public campaigns. Serbia has so far donated over 615 000 vaccines to countries in the region 
and beyond, and administered over 390 000 doses to foreign citizens in Serbia.  It joined the 
EU Joint Procurement Agreement for medical countermeasures, and the EU Health Security 
Committees as an observer, alongside the other Western Balkans. In November 2021, Serbia 
successfully  joined  the  EU  Digital  Covid  Certificate  System  making  travel  between  Serbia 
and the EU safer and easier.  

Health promotion  on non-communicable diseases  is  still not  at  an advanced level.  Cancer 
screening for colorectal, breast and cervical cancers is progressing at a slow pace  and is not 
performed in a systematic manner in many regions of the country. The national institute for 
radiology and oncology maintains the cancer register.  

Community-based  mental  health  services  remain  underdeveloped  and  suffer  from  low 
accessibility. Serbia’s national programme for mental health protection 2019-2026 remains to 
be costed and fully implemented. There has not been any progress on nutrition and physical 
activity.   

101 

 
 
Serbia’s  legislation  remains  partly  aligned  to  the  EU  acquis  on  medicines  for  human  and 
veterinary use, and on preventing drug abuse. Serbian legislation on pricing of medicinal 
products  is  yet  to  be  aligned  with  the  EU  acquis.  A  national  programme  to  reduce  the 
harmful effects of alcohol and alcohol-induced disorders was adopted in 2017 but it remains 
to be implemented.  

On  health  inequalities,  access  to  healthcare  services  remains  an  issue  for  people  with 
disabilities,  people  living  with  HIV,  children  and  adults  who  use  drugs,  prisoners,  women 
involved in prostitution, LGBTIQ persons, internally displaced persons and the Roma.  

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH  

This cluster covers chapters 10-information society and media, 16-taxation, 17-economic and 
monetary  policy,  19-social  policy  and  employment,  20-industrial  policy,  25-science  and 
research, 26-education and culture, and 29-customs. Five chapters are open (chapters 17, 20, 
25, 26 and 29) and two are provisionally closed (chapters 25 and 26). No opening benchmarks 
are  left  to  be  met  on  any  of  the  chapters  within  this  cluster.  This  cluster  and  the  reforms 
concerned have significant links to Serbia’s Economic Reform Programme. 

Progress was achieved in some of the areas under this cluster, particularly in the area of social 
policy  and  employment  through  taking  steps  towards  establishing  the  Youth  Guarantee 
scheme;  economic  and  monetary  policy  through  improving  the  budget  process;  enterprise 
industrial policy through  adoption of an action plan for the strategy on state ownership and 
management of business entities owned by the Republic of Serbia, and the creation of the “e-
consultation’’  portal;  scientific  and  technological  development  through  adoption  of  the  new 
strategy for development of start-up ecosystem; and in the area of education, through taking 
some steps towards ensuing compliance of the quality assurance system in higher education 
with  the  recommendations  of  the  European  association  for  quality  assurance  in  higher 
education (ENQA).  

In the coming period, Serbia is invited to particularly focus on the following areas:  align to 
the EU electronic communication code and ensure implementation of competitive safeguards 
and  market  operators’  access  to  the  electronic  communication  infrastructure;  ensure  full 
financial  and  operational  independence  of  the  regulators  for  electronic  communication  and 
postal services (RATEL) and for electronic media (REM); make progress towards alignment 
in the areas of VAT, excise duties and direct taxation; strengthen fiscal rules by making them 
more  binding  and  capable  of  anchoring  fiscal  policy;  ensure  adequate  financial  and 
institutional resources for employment and social policies; make further efforts to improve the 
predictability  of  the  business  environment;  increase  the  national  funding  for  research  and 
innovation;  ensure  full  compliance  of  the  policy  and  institutional  framework  for  quality 
assurance in higher education with the recommendations of the ENQA;  and further upgrade 
relevant IT systems. 

Chapter 10: Information society and media  

The EU supports the proper functioning of the internal market for electronic communications, 
electronic  commerce  and  audio-visual  services.  The  rules  protect  consumers  and  support 
universal availability of modern services.  

Serbia  is  moderately  prepared  in  the  field  of  information  society  and  media.  Limited 
progress was made concerning digitalisation in the area of e-government and in aligning to 
EU digital single market objectives, while initiatives on development of ultra-fast broadband 

102 

 
 
 
infrastructure  in  rural  areas  and  support  to  the  digitalisation  of  schools  continued.  The 
recommendations of the last report remain valid.  

In the coming year, Serbia should: 

  align  the  electronic  communications  legislation  with  the  updated  EU  regulatory 
framework,  including  the  new  European  Electronic  Communications  Code  and  the  Cost 
Reduction Directive;  

  ensure  full  financial  and  operational  independence  of  the  regulators  for  electronic 
communication  and  postal  services  (RATEL)  and  for  electronic  media  (REM)  in 
compliance with the EU acquis and boost their capacity to work proactively;  

  ensure  implementation  of  competitive  safeguards  and  market  operators’  access  to  the 

relevant infrastructure, in particular at a local government level. 

In the context of digital single market objectives, regulation of the broader digital economy 
environment  continued.  The  Laws  on  e-fiscalisation  and  e-invoicing  were  adopted  for  the 
purpose of creating a more connected digital economy environment. In the reporting period, 
e-commerce increased by almost 34%, while the abuse of electronic platforms also increased. 
The implementation of the action plan for the 2020-2027 smart specialisation strategy for the 
period 2021-2022 and of the action plan for the 2021-2030 industrial policy strategy for the 
period  2021-2023,  aiming  to  improve  digital  skills  and  to  raise  the  competitiveness  of  the 
Serbian  industry,  is  ongoing.  The  digital  gap,  notably  with  the  senior  and  marginalised 
population, needs to be further addressed.   

The  first  state  platform  for  artificial  intelligence  was  established  in  the  Kragujevac  Data 
Centre in  December 2021.  It is  important  that Serbia aligns  with  EU policies on the  ethical 
use of artificial intelligence. 

The  first  phase  of  the  ultra-fast  broadband  communication  infrastructure  roll-out  in  rural 
areas, aiming to connect around 90 000 households and 600 schools with fast broadband, is 
ongoing  while the second phase has been signed and the third phase is under consideration. 
The working group for drafting the Law on broadband was set up, however, the law remains 
to be adopted. 

When it comes to  the  regional  aspect, Serbia has continued with adherence to  the Western 
Balkans  ditigal  agenda  policy  priorities.  The  Regional  Roaming  Agreement  has  been  fully 
implemented,  and  the  abolition  of  roaming  charges  came  into  force  in  July  2021.  Serbia 
participated in the EU-Western Balkans ministerial Regulatory Dialogue held in June 2022. It 
is  now  more  important  than  ever  for  Serbia  to  sign  and  implement  the  memorandum  of 
understanding on a 5G roadmap for digital  transformation, which aims to further align with 
the  implementation  of  the  EU  toolbox  of  risk  mitigation  measures  on  the  security  of  5G 
networks.  

In  the  field  of  electronic  communications  and  information  technology,  preparatory  work 
continued on the drafting of the Law on electronic communications aiming to align with the 
European electronic communications code, which is pending adoption. The new management 
board of the  regulatory  agency  for  electronic communications and postal  services  (RATEL) 
was  elected  with  no  further  developments  concerning 
the  regulator’s  operational 
independence.  Minor  improvements  concerning  the  regulator’s  administrative  capacity  were 
noted, which nevertheless requires strengthening.  

Concerning the implementation of competitive safeguards, difficulties persisted with access 
for  users-operators  to  infrastructure  including  optical  fibres,  ducts  and  public  operators’ 
infrastructure and dark fibres, along with remaining restrictions imposed by the environmental 

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and  municipal  planning  legislation,  in  particular  at  local  government  level.  The  working 
group tasked with identifiying and providing recommendations to remove these obstacles has 
not  provided  any  input  to  date.  The  line  ministry’s  administrative  and  inspection  capacity 
requires strengthening.  

Serbia  is  yet  to  adopt  secondary  legislation,  including  on  minimum  conditions  for  issuing 
individual  operator  licenses  for  spectrum  use,  for  the  5G  frequency  auction,  which  was 
postponed from 2021 to end of 2022.    

Needs  assessments  for  the  introduction  of  the  112  European  emergency  number  calling 
system  according  to  EU  standards  were  completed  but  the  system  remains  to  be  fully 
implemented. 

In  the  field  of  information  society  services,  the  legal  framework  on  the  Law  on  e-
government was completed in February 2022. The number of databases connected to the new 
government service information system has increased, as well as the number of services at the 
upgraded  national  e-government  portal.  The  number  of  interoperable  public  registers 
providing  for  easier  exchange  of  data  has  also  increased.  Concerning  open  data,  there  is 
further potential to improve the data presented on the country’s open data portal in a machine-
reading language.   

In the field of information security, the 2021-2026 strategy for development of information 
society and information security with the accompanying action plan 2021-2023 was adopted 
in  September  2021.  The  regulator  for  electronic  communication  and  postal  services,  as  the 
national  computer  emergency  response  team  (CERT),  would  benefit  from  upgrading  its 
cybersecurity administrative capacities as well as from further association to expert groups of 
the European Union agency for cybersecurity (ENISA). 

No  progress  was  made  in  audio-visual  policy  in  the  reporting  period.  Electronic  media 
outlets  are  still  regulated  by  the  same  legislation,  pending  amendments  and  with  increasing 
delays in  the implementation of the media strategy  action plan,  adopted  in  December 2020. 
Some  changes  in  the  Law  on  electronic  media  and  Law  on  public  broadcasters  were 
introduced as the result of the inter-party dialogue ahead of April elections 2022.   

The  regulatory  authority  for  electronic  media  (REM)  still  fails  to  exercise  its  full  mandate 
through  effectively  monitoring  and  penalising  broadcasters  that  do  not  meet  all  programme 
content obligations under the law. Upon election and re-election of the two members’ expired 
mandates in December 2021, the REM council continued to work with all members in place. 
However,  REM´s  financial  stability  and  staff  capacity  remain  a  concern,  and  its  lack  of 
independence needs to be addressed more rigorously. REM related measures identified in the 
media strategy are expected to be addressed through the pending amendment of the  Law on 
electronic  media,  originally  planned  for  the  second  quarter  of  2022.  In  April  2022,  REM 
published a call for the  allocation of four media service licences for television broadcasting 
with national frequencies. In July 2022, REM awarded all four licences to the same previous 
holders for a period of eight years. A call for a fifth licence was published in August, which 
will be allocated by the end of 2022. The process was widely criticised by media associations 
and  other  stakeholders.  The  Law  on  electronic  media  requires  that  licensed  operators’  past 
record in programming is taken into account when considering their new application. It is not 
clear  if  this  criterion  was  effectively  applied  by  REM  as  all  of  the  channels  with  renewed 
licences  had  received,  during  the  previous  period,  warnings  from  REM  due  to  violation  of 
their  legal  obligations.  It  is  not  clear  either  how  the  process  complied  with  transparency 
requirements as no updated market analysis was published in the period before the call.  

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The approach to financial independence and stability of the public broadcasters followed the 
2020  practice.  Radio  Television  Serbia  (RTS)  was  again  not  included  in  the  state  budget 
funding  for  2022  while  Radio  Television  Vojvodina  (RTV)  received  state  budget  support, 
enabled through the amendment of the law on temporary financing of public media services.  

On  media  literacy,  Serbia  successfully  organised  and  participated  in  several  initiatives,  as 
part of the action plan of the media strategy. 

Chapter 16: Taxation  

EU rules on taxation cover value-added tax and excise duties as well as aspects of corporate 
taxation.  They  also  deal  with  cooperation  between  tax  administrations,  including  the 
exchange of information to prevent tax evasion.  

Serbia  is  moderately  prepared  in  the  area  of  taxation.  Limited  progress  was  made  with 
further  activities  in  the  implementation  of  the  programme  of  transformation  of  the  Tax 
Administration. Last year’s recommendations remain valid. 

In the coming year, Serbia should: 

  continue  with  implementation  of  the  tax  administration  reform  programme  in  order  to 
streamline  the  Tax  Administration’s  activities  while  ensuring  sufficient  human  and  IT 
resources for this purpose, improve tax collection and combat the informal economy; 

  make progress towards legislative alignment in the areas of VAT, excise duties and direct 

taxation.     

In the area of indirect taxation, the transition period for businesses to adhere to the Law on 
fiscalisation, adopted in December 2020 ended on 30 April  2022. It aims at modernising the 
process  of  VAT  collection  and  increasing  the  efficiency  of  the  control  and  fight  against 
grey/informal  economy.  The  minimum  tobacco  excise  duty  is  updated  twice  a  year  but 
remains  under  the  EU  minima.  The  additional  amendments  to  the  law  on  excise  duties 
adopted  in  May  2021  removed  the  discrimination  in  the  application  of  excise  duties  on 
imported spirits and have been applied since June 2021. The Law on excise duties, however, 
remains to be brought fully in line with the EU acquis.  

With regard to direct taxation, amendments to the Law on personal income tax, the law on 
contributions  for  compulsory  social  insurance  and  the  Law  on  corporate  income  tax  were 
adopted. They aim to further improve the business environment as well as  to further reduce 
informal economy. The amendments were adopted through regular parliamentary procedures. 
Nevertheless,  business  associations  continue  to  emphaszie  the  need  for  further  improving 
processes  for  public  consultations,  including  on  specific  fiscal  secondary  legislation.  The 
numerous  para-fiscal  charges  remain  high  and  non-transparent,  lacking  rationalisation,  and 
thus undermining the predictability and stability of Serbia’s tax system. This is an impediment 
for local economic development.  

As regards  administrative cooperation and mutual assistance, Serbia has  double taxation 
agreements  with  26  EU  Member  States  (no  agreement  with  Portugal).  Serbia  remains 
committed to apply the OECD base erosion and profit shifting minimum standards.  

Efforts to improve operational capacity and computerisation of the Tax Administration and 
to fight tax evasion, notably on VAT and excise duties, have resulted in better tax collection 
over the recent years. Over the reporting period, this has included the continuation of efforts 
toward  improvement  of  business  processes,  improved  risk  assesment  practises  and  capacity 
building  of  existing  staff    The  Tax  Administration  still  lacks  administrative  capacity  and 
adequate staffing; however, concerning  the latter the situation has somewhat improved with 

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the  recruitement  of  58  staff  in  the  reporting  period  and  ongoing  recruitement  for  288 
temporary positions. Given the high number of retirees and the competitive pressure from the 
private  sector,  recruiting  and  retaining  qualified  staff  remains  an  important  issue.  The  Tax 
Administration  transformation  programme  for  the  period  2021-2025  is  being  implemented, 
with the adoption of a change management plan and of a general business model for the Tax 
Administration  as  well  as  a  range  of  other  activities.  Further  efforts  are  still  needed  to 
improve  the  predictability  and  consistency  of  tax  decisions  and  to  provide  timely  and  good 
quality  services  to  tax  payers.  Appeal  procedures  against  Tax  Administration  decisions 
remain lengthy. 

Chapter 17: Economic and monetary policy 

EU rules require the independence of central banks and prohibit them from directly financing 
the  public  sector.  EU  Member  States  coordinate  their  economic  policies  and  are  subject  to 
fiscal, economic and financial surveillance.  

Serbia  is  moderately  prepared  in  the  area  of  economic  and  monetary  policy.  Limited 
progress  was  made  overall,  as  the  implementation  of  the  budgetary  procedure  improved 
somewhat,  whereas  no  progress  was  made  on  last  year’s  recommendations.  They  therefore 
remain valid. 

In the coming year, Serbia should in particular: 

  further align the legislation on National Bank of Serbia with the EU  acquis to ensure its 

full independence;  

  strengthen  fiscal  rules  by  making  them  more  binding  and  capable  of  anchoring  fiscal 

policy; 

  further align the budget system law with Directive 85/2011 in the field of macroeconomic 
and  fiscal  projections,  three-year  expenditure  perspective,  transparency  and  accounting 
and statistical reporting.   

On  monetary  policy,  the  legal  framework  for  the  National  Bank  of  Serbia  (NBS)  is  well 
developed. According to the law, price stability is the NBS’s principal objective, fully in line 
with the primary objective of the European System of Central Banks. The public sector does 
not have privileged access to financial institutions. However, further efforts are still needed in 
particular  through  making  necessary  amendments  to  the  law  on  the  NBS  and  the  Law  on 
public  property  in  order  to  ensure  the  independence  of  NBS  and  prohibition  of  monetary 
financing in line with the EU acquis.  

With  regard  to  economic  policy,  further  alignment  with  the  Directive  on  Requirements  for 
budgetary  frameworks  is  needed  through  amendments  to  the  budget  system  law  regarding 
macroeconomic  and  fiscal  projections,  three-year  expenditure  perspective,  transparency  and 
acocunting  and  statistical  reporting.  The  overall  institutional  environment  related  to  the 
budget  process  continued  to  improve  as  the  2022  budget  was  adopted  in  line  with  regular 
legislative procedures, including a series of inclusive parliamentary debates, which involved 
civil society, on the draft budget. However, there was no substantive discussion on the 2021 
two  amending  budgets  that  were  adopted  in  urgent  procedure,  including  inter  alia  ad  hoc 
expenditures, such as one-off financial support for citizens. The alignment of fiscal reporting 
with the European system of national and regional accounts (ESA 2010) continued to slowly 
improve,  but  remains  incomplete.  Programme  budgeting  needs  to  be  strengthened  and 
administrative and IT capacity bolstered. Fiscal rules remain weak, non-binding and unable to 
anchor  fiscal  policy  as  the  adoption  of  new  fiscal  rules  was  further  delayed.  The  Fiscal 
Council is an independent institution, which actively participates in debates on economic and 

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fiscal policy. The 2022-2024 Economic Reform Programme (ERP) was submitted on time. 
As  in  previous  years,  its  analytical  diagnostics  were  well  prepared.  The  ERP  is  broadly 
aligned  with  the  reform  priorities  identified  by  the  Commission,  and  remain  largely 
unchanged from the previous year, reflecting delays in implementation. In particular, the ERP 
continues to lack ambitious reforms on the green transition. The ERP still fails to effectively 
address  underlying  structural  weaknesses  in  the  area  of  the  rule  of  law,  which  continue  to 
negatively impact  the business  environment.  The macroeconomic and fiscal  frameworks are 
sufficiently  comprehensive  and  integrated  with  the  overall  policy  objectives,  providing  an 
adequate basis for policy discussions. 

Chapter 19: Social Policy and employment 

Serbia  is  moderately  prepared  in  the  area  of  social  policy  and  employment.  Limited 
progress was made on last year’s recommendations, by taking steps to gradually establish the 
Youth  Guarantee  scheme,  while  the  implementation  plan  has  yet  to  be  adopted.  Budget 
allocations for active labour market policies decreased further in 2022. A new law on health 
and safety at work has yet to be adopted and the drafting of a new labour law to be initiated.  

Last year’s recoomendations have been only partialy met and, therefore, remain valid. In the 
coming period, Serbia should in particular: 

  ensure adequate financial and institutional resources for employment and social policies to 
more  systematically  target  the  young,  women  and  long-term  unemployed;  in  particular, 
take further steps to start piloting the Youth Guarantee in Serbia; 

  ensure timely implementation of the action plan for chapter 19, in particular by adopting a 
new law on  health  and safety  at work  and  by conducting  consultations on a  new labour 
law, including provisions on foreign seconded workers, in line with the EU acquis; 

  improve  the  coverage  and  adequacy  of  social  benefits  for  people  below  the  poverty 
threshold, including financial social assistance (FSA) and child allowance, and address the 
issue of the high caseload of social welfare centres. 

In the field of labour law, the law of 2014 remains only partially aligned with the EU acquis 
and the drafting of a new law has yet to be intiated. It should address in particular the fact that 
the  Serbian  labour  law,  and  therefore  related  labour  inspections,  do  not  apply  to  foreign 
seconded workers; only rules related to health and safety at work apply to them. The law on 
social  enterpreneurship  was  adopted  in  February  2022.  The  proportion  of  undeclared  work 
decreased (18.2 % in 2019; 16.4 % in 2020; 13.2 % in 2021). There are currently 214 filled in 
positions in labour inspectorates and recruitment of additional labour inspectors, to reach the 
target of 360 inspectors by Q4 2020 according to chapter 19 action plan, is delayed. The law 
on  inspection  oversight  still  needs  to  be  amended  to  comply  with  the  relevant  International 
Labour Organisation Conventions that were ratified by Serbia, notably to ensure that labour 
inspectors are empowered to enter workplaces freely and without giving notice. 

In the area of health and safety at work, a new law has  yet to be adopted. Serbia adopted 
implementing legislation on health and safety measures on exposure to chemical substances, 
the production and manipulation of explosives and gunpowder, when using work equipment, 
exposure to electromagnetic fields and exposure to artificial optical radiation. The number of 
fatalities in the workplace increased from 50 in 2020 to 61 in 2021, with the majority of cases 
occurring in the construction industry. 

Social  dialogue  remains  weak,  in  particular  regarding  the  involvement  of  social  partners  in 
policy developments relevant to them. A new law on the right to strike has yet to be adopted. 
Serbia still needs to adjust the legal framework and strengthen the capacity of social partners 

107 

 
 
to foster collective bargaining. Sectoral collective agreements are typical in the public sector, 
with  12 currently concluded agreements. However, they are hardly concluded in  the private 
sector, with only two sectoral collective agreements. In the second half of 2021, the minimum 
hourly  wage  was  increased  by  9.4  %  for  2022  by  means  of  a  government  decision,  as 
consensus  could  not  be  reached  within  Serbia’s  Economic  and  Social  Council.  The  latter 
needs to be consulted in due time on new policy initiatives and draft laws. 

On employment policy, the employment rate for 20-64  year olds increased from 65.9 % in 
2020 to 66.7 % in 2021. Unemployment of 15-74 year olds increased from 9.1 % in 2020 to 
11.1  %  in  2021,  while  the  inactivity  rate  among  15-64  year  olds  decreased  from  33.6  %  in 
2020 to 29.7 % in 2021. Youth unemployment (15-24 year olds) decreased slightly from 26.6 
% in 2020 to 26.4 % in 2021 but remains high. The share of young people (15-29 year olds) 
not in employment, education or training (NEET) also decreased from 20 % in 2020 to 16.4 
%  in  2021.  The  introduction  of  the  Youth  Guarantee  in  Serbia  aims  to  address  these 
challenges, support labour market integration and ensure that no young person is left behind. 
Serbia took steps to gradually establish the Youth Guarantee scheme. Serbia also continued to 
implement the “My First Salary” programme, which aims at activating young people without 
prior work experience, with a slight increase in the monthly benefits granted to young people 
benefitting  from  the  programme.  Measures  aimed  at  promoting  the  employment  of  Roma 
have  yet  to  deliver  results.  Budget  allocations  for  active  labour  market  policies  decreased 
further  in  2022  and  continued  to  be  far  too  low  to  cover  the  number  of  jobseekers,  with 
spending around 0.1 % of GDP. Workers from across the occupational spectrum continued to 
emigrate.  The  authorities  acknowledged  the  need  to  provide  incentives  for  the  return  of  the 
Serbian  diaspora  and  to  attract  foreign  experts  by  starting  to  implement  its  economic 
migration strategy 2021-2027. 

There were no developments as regards preparations for the European Social Fund (See also 
Chapter 22 - Regional policy and coordination of structural instruments). 

In the area of social inclusion and social protection, in 2020, 6.9 % of the population was 
considered to be living in absolute poverty (7 % in 2019). According to the latest survey on 
income and living conditions (SILC), the at-risk-of-poverty rate was 21.7 % in 2020 (EU-27 
17.1 %) and the at-risk-of-poverty or social exclusion rate was 29.8 % (EU-27 21.9 %). As in 
previous years, there is more poverty in rural than in urban areas. The at-risk-of-poverty rate 
shows that individuals up to 18 years of age were the most exposed to this risk (24.2 %), as 
well  as  individuals  aged  from  18  to  24  (23.6  %).  For  2020,  46.1  %  of  the  population  self-
identified as poor (a slight  decrease compared to  47.7  % in  2019),  positioning Serbia at  the 
bottom  of  the  list  of  European  countries  that  conduct  SILC  surveys.  Inequality  in  income 
distribution is high at  33.3 % of the Gini coefficient  according to  income in  2020, which is 
above  the  EU-27  average  (30.0  %).  The  richest  20  %  of  the  population  had  an  income  6.1 
times higher (6.5 in 2019) than the poorest 20 % (5.24 in EU-27). Untargeted transfers were 
carried  out  during  the  COVID-19  pandemic  and  prior  to  the  2022  elections.  There  were  no 
measures  designed  specifically  for  the  protection  of  the  most  vulnerable,  nor  for  female 
workers  who  were  disproportionately  affected.  In  September  2021,  Serbia’s  Commissioner 
for Equality issued a recommendation to the Ministry of Finance, asking that persons without 
residence registration and ID card could also benefit from the support measures. There was no 
measure to increase the coverage and adequacy of benefits for individuals and families under 
the  financial  social  assistance  scheme  (FSA)  in  order  to  reduce  poverty.  FSA  support  for  a 
family  of  three,  for  instance,  is  EUR 132,  less  than  half  the  cost  of  the  average  consumer 
basket (EUR 323) and of the poverty threshold for a household of this size (EUR 237). Public 
expenditure on social protection and budget transfers as a share of GDP have been gradually 
decreasing  in  recent  years.  Furthermore,  the  number  of  beneficiaries  of  poverty-targeted 

108 

 
 
programmes  decreased  while  those  of  categorical  programmes  increased  (0.5  %  of  GDP 
versus 1.52 %). Means-tested social assistance programmes, with strict eligibility criteria, do 
not sufficiently reach the poor. There are also significant regional variations in coverage and a 
large share of children living in poverty are not covered by any benefit.  

The law on social cards  entered into force in  March 2022.  It  aims at  a fairer distribution of 
social assistance and at a reduction of abuse through the establishment of a single social card 
register,  connecting  various  public  databases  and  enabling  an  overview  of  the  social  and 
material status of beneficiaries. A new strategy for social protection and amendments to the 
law  on  social  welfare  are  still  pending.  The  quality  and  coverage  of  social  services  need  to 
improve,  and  oversight  and  regulatory  mechanisms,  monitoring  and  evaluation  need  to  be 
strengthened.  The  capacities  of  the  social  protection  system  were  slightly  increased  by 
employing 122 new staff in 2021 and 43 new staff in February 2022; however, according to 
the  assessment  of  the  authorities,  an  additional  1 388  staff  are  lacking.  The  system  of 
earmarked transfers to  the local  level,  introduced in  2016 by the social welfare  Law, is  still 
not implemented systematically and transparently.  

Serbia adopted a strategy on de-institutionalisation in January 2022; the related action plan 
and funding is pending adoption (See also Chapter 23 – Fundamental rights). 

In  the  field  of  non-discrimination  in  employment  and  social  policy,  most  complaints 
received by Serbia’s Commissioner for Equality still related to the area of employment (26.4 
%).  An  independent  survey  conducted  in  2021  indicates  that  knowledge  on  where  to  report 
gender-based  discrimination  remained  low,  which  is  likely  contributing  to  lower  reporting 
rates overall.  

In  the  area  of  equal  opportunities  between  women  and  men  in  employment  and  social 
policy,  the  position  of  women  on  the  labour  market  in  Serbia  remains  unfavourable  in 
comparison  to  the  position  of  men.  The  employment  rate  for  men  (20-64  year  olds)  is  14.9 
percentage  points  higher  and  their  activity  rate  15.2  percentage  points  higher  than  those  for 
women.  Although  the  legislation  grants  both  maternity  and  paternity  leaves,  gender-based 
stereotypical  preconceptions  persist  about  childcare  and  household  work  being  a  woman's 
responsibility.  Women  worked  2.5  hours  more  per  day  than  men  on  care  work  for  children 
and the elderly. This is one of the largest gaps in the field of ‘time’ (16.2 points) between the 
EU-27  and  Serbia  in  the  2021  gender  equality  index.  Amendments  to  the  Law  on  financial 
support  to  families  with  children  adopted  in  December  2021  removed  some  discriminatory 
provisions in family leave rights, but the legislation needs to be further aligned with the EU 
acquis  with  regards  to  paternity,  parental  and  maternity  leave  rights.  This  includes  further 
defining these rights in Serbian legislation in line with their definitions and purpose in the EU 
acquis.  The  lack  of  state  services  for  childcare  in  rural  areas  also  increases  the  amount  of 
unpaid household work for women.  

Chapter 20: Enterprise and industrial policy 

EU enterprise and industrial policy strengthens competitiveness, facilitates structural change 
and  encourages  a  business-friendly  environment  that  stimulates  small  and  medium  size 
enterprises (SMEs).  

Serbia is moderately prepared on enterprise and industrial policy. Some progress was made 
in  general,  in  particular  by  adopting  an  action  plan  for  the  strategy  on  state  ownership  and 
management  of  business  entities  owned  by  the  Republic  of  Serbia,  and  on  last  year’s 
recommendations  thorugh  the  creation  of  the  “e-consultation’’  portal  aimed  at  increased 
business  participation  in  public  consultations  and  increased  transparency  in  the  legislative 
process. Last year’s recommendations nonethless remain largely valid. 

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In the coming year, Serbia should in particular: 

  continue efforts to further improve the predictability of the business environment, with the 

emphasis on ensuring direct involvment of businesses in the process of regulation; 

  adopt a new SME and entrepreneurship policy strategy; 

  reallocate  budgetary  resources  for  foreign  direct  investment  incentives  to  financial  and 

technical support to SMEs. 

With  regard  to  industrial  policy,  Serbia  has  been  implementing  the  strategy  for  industrial 
development 2021-2030, together with the related action plan for 2021-2023.  

On enterprise policy, a new strategy to support the development of  small and medium size 
enterprises  (SMEs),  entrepreneurship  and  competitiveness,  replacing  the  strategy  for  2015-
2020  is  yet  to  be  adopted.  Serbia’s  legislation  is  largely  aligned  with  the  EU  acquis  on 
combating  late  payments  in  commercial  transactions.  However,  work  needs  to  continue 
towards  full  alignment,  as  Serbia  is  still  to  align  its  rules  on  payments,  indemnity  interest 
rates, expedited recovery procedures and compensation with the EU Directive in this area. In 
June 2021, Serbia adopted an action plan for the strategy on state ownership and management 
of  business  entities  owned  by  the  Republic  of  Serbia  and  established  a  database  listing  
companies fully owned or partially owned by the state. The database currently comprises 307 
companies  (June  2022).  In  general,  the  progress  on  governance  reform  and  restructuring  of 
industrial state-owned enterprises is lagging behind; six companies were privatised during the 
reporting period, bringing the number of companies in the privatisation portfolio down to 62 
(see also The existence of a functioning market economy).  

Enterprises in Serbia continue to identify corruption and problems in the exercise of the rule 
of  law  as  key  obstacles  to  the  investment  climate  and  economic  development.  Serbia  also 
needs to continue to increase predictability in the business and administrative environment, in 
particular  for  SMEs.  Performance  measurements  for  policy-making  activities  should  be 
developed  and  more  emphasis  put  on  implementing  the  ‘think  small  first’  principle.  The 
regulatory impact assessment with the SME test needs to be systematically carried out when 
formulating  laws  and  implementing  legislation.  The  implementation  of  the  multilannual 
reform aimed at optimising and improving the transparency of all administrative procedures is 
ongoing.  A  digital  ‘’e-consultation’’  portal  for  public  participation  in  legislative  processes 
was  established  following  a  decision  adopted  in  June  2021  to  increase  transparency  in  the 
legislative  process  and  facilitate  participation  in  consultations.  Effective  communication  on 
this  new  tool  is  crucial  to  ensure  that  businesses  are  properly  and  timely  consulted  and 
informed about regulatory changes.  

On enterprise and industrial instruments, Serbia continues to use budgetary subsidies for 
newly  created  jobs  as  an  incentive  for  foreign  direct  investments.  This  approach  is  not 
consistent with its industrial policy goal of privileging value added over labour cost and with 
the continued weakness  in  supplier development.  The budget  for SME measures is  growing 
but remains modest compared to the amounts of state aid and tailor-made services offered to 
large investors. The lack of specialised support and advisory services for businesses limits the 
possibilities  of  domestic  companies  to  modernise  and  qualify  as  suppliers  to  multi-national 
enterprises.  Favourable  loans  and  guarantees  for  SMEs  are  provided  by  the  Ministry  of 
economy and the development fund through joint programmes with commercial banks. These 
programmes  provide  financial  support  for  the  purchase  of  equipment,  financial  support  to 
start-ups, and financial support for development  projects. Nevertheless, access to finance by 
start-ups remain an impediment to their growth. Serbia expressed its interest to participate in 
the single market programme (SMP).Formal negotiations for an association agreement started 

110 

 
 
in March 2022 and are progressing. 

In sectoral policies, the current support for investment continues to prioritise manufacturing. 
Until recently, the approach in  policy-making was not  sector-specific, with  the exception of 
tourism. The extent to which the industries identified in the smart specialisation strategy will 
benefit from the programmes under the industrial strategy is still to be proven.  

Chapter 25: Science and research 

The  EU  provides  significant  support  to  research  and  innovation.  All  Member  States  can 
benefit  from  the  EU's  research  programmes,  the  more  so  where  there  is  specific  excellence 
and solid investment in research. 

Serbia is at a good level of preparation in the area of science and research. Some progress 
was made with the adoption of the new strategy for development of start-up ecosystem for the 
period  2021-2025  with  an  action  plan  as  well  as  the  new  law  on  innovation  activity.  The 
national level of investment in research remains low. 

In the coming year, Serbia should in particular: 

  increase the national funding for research and innovation; 

  enact  the  European  Research  Infrastructure  Consortium  (ERIC)  Regulation  into  national 

law; 

  follow up on the actions of the new European Research Area. 

On research and innovation policy, the main priorities of the European Research Area are 
incorporated in the new strategy for development of start-up ecosystem 2021-2025, adopted in 
December 2021 with an action plan until end of 2022. The strategy aims to create a systematic 
approach  to  the  development  of  knowledge  and  skills  of  entrepreneurship  through  formal 
education, increasing number of start-ups and opportunities for private investors, technology 
transfer and economic growth. A new Law on innovation activity was adopted in December 
2021, expanding the innovation fund mandate to invest in companies, alternative investment 
funds and other organisations to  develop  innovation  and to  keep the  register of the national 
innovation system. 

The  Science  Fund  is  fully  operational  as  a  funding  mechanism  and  developing  new 
programmes for financing R&D ideas.  

Although it is higher than the last year, the national level of investment in research remains 
low at 0.91 % of GDP (0.89 % in 2020) with only one third of this amount coming from the 
private sector. Serbia should continue to integrate with the new European Research Area, in 
accordance with its plan to increase investment into research and innovation by 50 % in the 
next five years, also given the relevance of innovation to the Economic and Investment Plan 
for the Western Balkans. 

Regarding  the  EU  framework  programme  and  international  cooperation,  Serbia  joined 
Horizon Europe. Serbia continues to be active and participate successfully in Horizon Europe 
as well as in EUREKA and COST. 

With  regard  to  measures  for  the  Innovation  Union,  the  Serbian  Innovation  Fund  and  the 
science and technology parks in Belgrade, Niš, Čačak and Novi Sad (from December 2021), 
continue  to  be  active  with  increased  contributions  from  the  budget.  The  Innovation  Fund 
launched a new mechanism to support technological development and innovation – Katapult 
Accelerator  for  start-ups  in  the  early  stages  of  product  development  and  market  positioning 

111 

 
 
and  companies  with  proven  market  traction  aiming  to  accelerate  their  growth  and  raise 
additional financial resources. 

Serbia  is  an  emerging  innovator  in  the  European  innovation  scoreboard.  However,  research 
and innovation  expenditures of the private business  sector remain too  low. More efforts are 
needed on the public side to support cooperation between businesses and academia. 

Chapter 26: Education and culture  

The EU supports cooperation in education and culture through funding programmes and the 
coordination of Member State policy through the open method of coordination. The EU and 
the Member States must also prevent discrimination and ensure quality education for children 
of migrant workers, including those from disadvantaged backgrounds.  

Serbia  remains  at  a  good  level  of  preparation  in  the  area  of  education  and  culture.  Some 
progress was made on the implementation of last year’s recommendations, by consolidating 
the  national  qualifications  framework  (NQF)  system  and  taking  some  steps  to  ensure 
compliance of the quality assurance system in higher education with the recommendations of 
the European Association for Quality Assurance in Higher Education (ENQA). The COVID-
19 pandemic somewhat disrupted the organisation and quality of instruction on all levels of 
education. The recommendations for the 2021 report remain largely valid.  

In the coming year, Serbia should in particular: 

  increase participation in early childhood education and care, in particular of children from 

disadvantaged backgrounds; 

  continue  with  the  operationalisation  of  the  NQF  system,  with  additional  focus  on  the 

quality and scope of non-formal education; 

  ensure full  compliance of the policy  and  insitutional framework for quality  assurance in 

higher education with the recommendations of the ENQA. 

In the area of education and training, mechanisms to monitor the implementation of the new 
education strategy until 2030 and its action plan were established. The student population has 
continued  to  decrease  due  to  negative  demographic  trends  and  emigration.  Enrolment  and 
attainment  rates  in  pre-university  education  remained  high.  The  total  coverage  of  children 
with  pre-school  education  aged  6  months  to  6.5  years  in  2020  decreased  from  57.4 %  to 
55.5 %  year-on-year,  whereas  the  enrolment  rate  of  mandatory  pre-school  education 
decreased  from  97.4 %  in  2019  to  96.4 %  in  2020.  Further  efforts  are  needed  to  achieve 
equitable  pre-school  education  for  the  most  disadvantaged  children,  by  strengthening 
governance and expanding the scope and quality of infrastructure and services. In 2021, the 
rate of early school leavers was 6.3 %, while lifelong learning participation was 4.8 %. 

The hybrid education model established during the COVID-19 pandemic is still being in place 
but  only used depending on  its  incidence.  Further efforts  are still needed to  compensate for 
learning  gaps  caused  by  digital  exclusion,  in  particular  among  disadvantaged  students.  The 
digital  transformation  of  the  education  system  continued.  While  the  development  of  the 
education  management  information  system  has  progressed,  it  requires  further  consolidation, 
including capacity-building of staff to use data for policy-making and monitoring purposes.  

The reform of the general secondary education curriculum continued. No significant change is 
reported  in  the  low  take-up  of  general  secondary  education  of  vocational  education  and 
training (VET). Serbia should continue modernising and streamlining qualifications standards 
to  improve  VET  relevance  and  further  develop  the  national  work-based  learning  model  for 
VET.  The  institutional,  financial  and  logistical  preparations  for  introducing  the  final 

112 

 
 
examinations in secondary education should accelerate to ensure their full implementation as 
of  the  2023-2024  school  year.  There  is  a  wide  gap  in  learning  outcomes  across  VET  and 
general education, with vocational students having weaker literacy and numeracy skills than 
their peers do in general education. The number of secondary VET graduates that enter higher 
education  continued  to  increase  to  63.6  %  in  2020  from  59.7  %  in  2019.  Serbia  remains 
committed  to  the  Osnabruck  Declaration  on  VET  as  an  enabler  of  recovery  and  just  digital 
and green transitions.  

Following the adoption of amendments to the Law on higher education in June 2021, aimed at 
facilitating  compliance  with  the  European  Association  for  Quality  Assurance  in  Higher 
Education (ENQA) recommendations on better governance and quality assurance principles, 
concrete  operational  steps  are  still  pending  to  strengthen  the  policy  and  institutional 
framework for quality assurance in higher education. The Serbian national accreditation body 
is eligible as of 2022 to re-apply for renewed membership of ENQA, following its suspension 
in  early  2020.  The  first  dual  study  programmes  and  modules  in  higher  education  with  a 
reinforced  work-based  component  were  accredited  as  of  the  2021-2022  academic  year.  The 
attainment of tertiary level qualifications for persons aged 30-34 (ISCED levels 5-8) remained 
at 33 % in 2020, still below the EU target of 40 %. The sector, higher education in particular, 
remains vulnerable for corruption. In October 2021, a specific operational plan was adopted to 
fight against corruption in the field of education under the action plan for chapter 23. 

The institutional set-up under the national qualifications framework (NQF) should be further 
strengthened. The pace of adoption of qualification standards is picking up but should further 
accelerate, with  stronger focus on higher education. The system  of validation of non-formal 
and informal learning was piloted and relevant implementing legislation has been adopted, but 
is  yet  to  be  scaled  up  systematically.  Two  rulebooks  were  adopted  in  December  2021  and 
February  2022  aimed  at  facilitating  the  accreditation  and  assessment  of  adult  education 
providers. Efforts to  create a more favourable environment  for standardising  and expanding 
career guidance and counselling services should be further sustained.  

Further  progress  was  made  in  increasing  the  participation  of  disadvantaged  students  at  all 
levels of education. The implementation of measures to reduce drop-out rates and segregation 
needs  to  be  strengthened,  especially  at  local  level.  Following  the  adoption  of  relevant 
legislation  and  the  selection  of  eligible  schools,  the  set-up  of  assistive  technology  resource 
centres  needs  to  become  functional  to  provide  relevant  additional  support  services  for 
inclusive  education.  It  is  necessary  to  remove  obstacles  to  the  engagement  of  teaching 
assistants  for  children  with  disabilities  as  a  new  service  in  the  education  system.  Further 
efforts  are  needed  to  develop  teaching  materials  and  empower  teachers  to  build  student 
competences  related to  gender equality, health, reproductive health, mental  health, sexuality 
education,  prevention  and  response  to  all  forms  of  gender-based  violence,  including  sexual 
abuse. 

Serbia continued to participate in several international assessments, including the progress in 
international  reading  literacy  study  (PIRLS)  in  2021,  as  well  as  the  international  civic  and 
citizenship  education  study  (ICCS)  and  the  program  for  international  student  sssessment 
(PISA) in  2022. Piloting of trends  in  international  mathematics and  science  study  (TIMSS), 
international  computer  and  information  literacy  study  (ICILS)  and  Teaching  and  learning 
international survey (TALIS) were conducted in 2022.  

In  2021,  Serbia  formally  joined  the  Erasmus+  programme  as  an  associated  country  for  the 
period  2021-2027.  Overall,  Serbian  institutions  are  participating  in  more  than  550  projects 
(decentralised  actions)  granted  in  2021.  Under  the  2021  call  for  proposals,  the  Serbian 
National  Agency  “Tempus  Foundation”  awarded  136  projects,  including  18  in  the  youth 

113 

 
 
sector. In total, around 1900 mobilities of students, staff and pupils are planned to take place 
in the framework of these projects. In addition, Serbia participated in various initiatives such 
as the Erasmus Days and the European Youth Week. Serbia is successfully implementing the 
new cycle of the Erasmus+ programme, including the new DiscoverEU component. 

In  the  area  of  culture,  the  cultural  policy  of  Serbia  is  implemented  within  the  ‘Strategic 
priorities for the development of culture of the Republic of Serbia from 2021 to 2025’. The 
Council for creative industries continued the communication campaign ‘Serbia creates’.  

The  activities  of  Novi  Sad  as  European  capital  of  culture  2022  are  being  implemented.  In 
December  2021,  Novi  Sad  Capital  of  Culture  was  awarded  the  Melina  Mercouri  prize. 
According  to  the  foundation  ‘NoviSad  2022’,  95 %  of  the  cultural  projects  have  European 
partners, against 13 % before. 

Serbia  is  implementing  measures  under  the  UNESCO  Convention  on  the  protection  and 
promotion of the diversity of cultural expression and is also member of the Intergovernmental 
Committee  of  the  Convention  on  the  Protection  and  Promotion  of  the  Diversity  of  Cultural 
Expressions.  The  Law  on  gender  equality,  adopted  in  June  2021,  foresees  provisions  to 
promote gender equality in the field of culture.  

Serbia  actively  participates  in  the  creative  Europe  programme.  The  Ministry  of  Culture  and 
Information  provides  support  to  domestic  cultural  entities  that  succeed  in  Creative  Europe 
calls.  Following  the  agreement  on  Serbia’s  participation  in  the  creative  Europe  programme, 
the Creative Europe Desk Serbia was established and started operating in June 2022 building 
on the successful experience from the previous programme.  

The new youth strategy until 2030 is yet to be adopted. It needs to be followed by an action 
plan  and  mechanisms  to  ensure  inclusive  monitoring  and  reporting.  The  national  youth 
council  remains  active  and  involves  youth  representatives.  Youth  policy  and  support 
mechanisms  are  unevenly  developed  at  local  level  and  should  be  further  strengthened.  The 
revision  and/or  preparation  of  local  youth  action  plans  in  line  with  the  provisions  of  the 
planning system law should be accelerated. The trend of emigrating young and skilled people 
continued.  The  unemployment  and  inactivity  rates  among  young  people  remain  high.  The 
action plan for the implementation of the youth guarantee mechanism is yet to be adopted. 

Chapter 29: Customs union 

All Member States are part of the EU customs union and follow the same customs rules and 
procedures.  This  requires  legislative  alignment,  adequate  implementing  and  enforcement 
capacity, and access to the common computerised customs systems.   

Serbia is at a good level of preparation in the area of customs union. Limited progress  was 
made with adoption of further amendments to the customs law and by aligning legislation on 
cultural goods with the relevant EU acquis under chapter 29. No progress was made on last 
year’s recommendations, which therefore remain valid.  

In the coming year, Serbia should in particular:   

  further upgrade the customs processing system by integrating risk management;  

  further develop  the  IT system of the national  customs to  enable integration with  the EU 

systems. 

Serbia’s customs legislation remains largely aligned with the EU acquis. Amendments to the 
customs  law  were  adopted  in  November  2021  in  order  to  ensure  further  alignment  with  the 
relevant  acquis.  Serbia  adopted  a  new  law  on  cultural  heritage  in  December  2021  that  is 
aligned with  the relevant  acquis  under  chapter 29. Serbia is  a party to  the Common Transit 

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Convention,  applying  EU  rules  on  transit  movements.  Rules  on  customs  enforcement  of 
intellectual  property  rights  remain  broadly  in  line  with  the  EU  acquis.  The  Regional 
Convention  on  Pan-Euro-Mediterranean  (PEM)  preferential  rules  of  origin  are  applied  in 
Serbia. Following an EU proposal to apply in parallel a more flexible set of origin rules on a 
transitional basis until the PEM Convention can be amended, Serbia has amended its bilateral 
trade  agreements  with  CEFTA  partners,  with  EFTA,  and  after  amending  Protocol  3  of  the 
Stabilisation  and  Association  Agreement  (SAA)  in  February  2022,  with  the  EU.  Serbia’s 
customs tariff nomenclature for 2022 was harmonised with the EU combined nomenclature in 
November 2021.  

Legislation  on  free  zones  and  security  aspects  still  needs  to  be  aligned  with  the  EU  acquis. 
Fees are still charged on lorries entering customs terminals to discharge customs obligations, 
which is not in line with Serbia’s SAA obligations.  

Concerning  administrative  and  operational  capacity,  total  customs  and  value  added  tax 
(VAT) revenues collected by the customs administration in 2021 increased by 21 % year-on-
year,  mainly  due  to  an  increase  in  the  economic  activity  during  the  second  year  of  the 
COVID-19 pandemic.  

Work  is  still  ongoing  on  strengthening  the  risk  management  system.  Serbia  should 
consistently  carry  out  pre-arrival/pre-departure  risk-based  analysis  including  food-safety 
checks, in line with the EU Customs Code. The customs laboratory remains under-equipped. 

In  terms  of  fight  against  tobacco  smuggling,  Serbia  has  been  a  party  to  the  Protocol  to 
Eliminate Illicit Trade in Tobacco Products since 2017. However, Serbia should  continue to 
strengthen its work, in particular efforts to establish a tracking and tracing system of tobacco 
products,  as  provided  for  by  the  Protocol.  Furthermore,  the  administrative  capacity  for  the 
control of illicit tobacco trade is still insufficient. 

Serbia  adopted  in  September  2021  the  operational  plan  for  the  prevention  of  corruption  in 
areas of special risk, which includes the field of customs.  

CLUSTER 4: THE GREEN AGENDA AND SUSTAINABLE CONNECTIVITY  

This cluster covers four chapters: 14-transport policy, 15-energy, 21-trans-European networks 
and  27-environment  and  climate  change.  The  cluster  and  all  chapters  were  opened  in 
December 2021, after Serbia had fulfilled the remaining requirements, namely an action plan 
on oil stocks and an action plan on gas unbundling. This cluster is at the heart of the Green 
Agenda for the Western Balkans and closely linked to Serbia’s Economic Reform Programme 
and the Commission’s Economic and Investment Plan. 

Limited progress was achieved overall with the exception of Trans-European networks, where 
Serbia  advanced  on  upgrading  its  infrastructure,  with  works  starting  on  the  Serbia-Bulgaria 
gas interconnector, a strategically highly important project for Serbia and Europe.  

In the coming period, Serbia is  invited to focus on the following areas:  improve investment 
prioritisation,  planning  and  management  across  all  areas;  continue  rail  reform  and  improve 
strategic transport framework in line with the EU’s and the Western Balkans sustainable and 
smart  mobility  strategies;  urgently  implement  its  action  plan  on  gas  unbundling  and  further 
diversify  gas  routes  and  supplies  to  decrease  dependence  on  Russia;  adopt  an  ambitious 
National Energy and Climate Plan consistent with the European Green Deal’s zero emission 
target for 2050 and step up efforts on implementing and enforcing environment and climate 
legislation,  in  particular  on  environmental  impact  assessment,  waste  management,  air  and 
water quality, trans-boundary cooperation and law enforcement by inspectorates.  

115 

 
 
 
Chapter 14: Transport 

The EU has common rules for technical and safety standards, security, social standards, state 
aid  and  market  liberalisation  in  road  transport,  railways,  inland  waterways,  combined 
transport, aviation and maritime transport. 

Serbia  has  a  good  level  of  preparation  in  this  field.  Limited  progress  was  made  on  last 
year’s three recommendations, which remain valid and which were updated. 

In the coming year, Serbia should in particular: 

  on  rail  reform:  focus  on  strengthening  the  railway  safety  system  and  certification 
processes, implement a public service obligation contract and a multi-annual infrastructure 
contract in evidence-based manner; 

  on  transport  sector  general:  improve  strategic  framework  (develop  national  transport 
strategy,  update  general  transport  master  plan,  decide  on  the  strategic  direction  for 
intelligent  transport  systems  (ITS))  and  implementation  (adopt  credible  costed  rail  and 
road maintenance plans, align and simplify road and rail border crossing procedures and 
further  improve  road  safety  at  national  and  local  level  strengthen  inspection  services  to 
progress on social acquis in road transport and improve passenger rights in all modes of 
transport);  

  on investments: prioritise investments according to their relevance for Serbia’s economic 
development  and  EU  integration,  in  line  with  the  EU’s  and  the  Western  Balkans 
sustainable  and  smart  mobility  strategy  and  base  investment  decisions  on  feasibility 
studies  conducted  in  accordance  with  EU  best  practices,  and  apply  transparent 
procurement procedures. 

Concerning  the  general  transport  acquis,  an  update  of  Serbia’s  strategic  framework  is 
overdue. Serbia should develop and adopt a new transport strategy in line with the EU’s and 
the Western Balkan’s sustainable and smart mobility strategy targets in order to reflect new 
developments and ensure coherence. Strategic documents should be based on option analyses, 
take  into  account  regional  aspects  and  be  properly  costed.    Serbia’s  framework  for  future 
investment planning should be updated accordingly. Also, for larger transport agglomerations 
sustainable urban mobility plans, which respect environmental and social standards, should be 
developed  following  EU  practices.  Circular  economy  principles  should  be  taken  into 
consideration in designing transport projects, in particular in the road sector.  

Investments  in  transport  infrastructure  should  be  prioritised  through  a  single  mechanism, 
ranked according to  their relevance  for Serbia’s economic development  and EU integration. 
Decisions need to be based on feasibility studies and technical designs in line with EU best 
practices and follow EU standards on procurement procedures, ensuring best value for money. 
Investment planning and financial structuring of railway projects improved, in particular for 
rail corridor X from Belgrade-Niš with the border with North Macedonia.  

Overall, administrative capacity in the road and rail sector keeps slowly improving. However, 
it  needs  further  strengthening,  notably  in  dealing  with  transport  of  dangerous  goods,  road 
safety,  ITS and rail;  on rail in  particular regarding  the railway regulatory  body on technical 
specifications  for  interoperability  and  the  centre  for  investigation  of  accidents.  Alignment 
with  EU  legislation  on  passenger  rights  in  all  modes  of  transport  is  a  priority  for  Serbia. 
Serbia actively participates in the work of the Transport Community. 

Regarding  public  services,  Serbia  has  a  high  level  of  alignment  with  the  EU  acquis  on  rail 
transport,  but  it  is  only  partially  aligned  on  road  transport.  Serbia  progresses  slowly  on 

116 

 
 
implementing a methodology for track access charges and a new pricing model for access to 
railway infrastructure.  

On road transport, Serbia’s level of alignment with the EU acquis is satisfactory. Alignment 
with EU legislation on road charging, social acquis in road transport, weights and dimensions 
of vehicles as well as access to the profession of road transport operator, to the international 
road haulage market and to the international market for coach and bus services is a priority. 
On  1st  October  2021,  the  Interbus  agreement  entered  into  force  in  Serbia.  The  new  Law  on 
road traffic safety is pending since two years, inspection capacity remains insufficient and the 
number  of  road  deaths  in  Serbia  is  more  then  33 %  higher  than  the  EU  average.  Therefore, 
Serbia  should  accelerate  work  on  road  safety  at  national  and  local  level.  Legislation  on 
transport of dangerous goods is well aligned with the EU acquis and it also covers transport of 
hazardous substances.  

Serbian  authorities  were  managing  border-crossing  procedures  well  during  the  COVID  19 
crisis and are committed to implement ‘green lanes’. Improving the road maintenance system 
remains  a  priority.  Work  on  service  level  agreements,  performance-based  maintenance 
contracting  and  road  asset  management  needs  to  accelerate.  Responsibilities  in  the  area  of 
road maintenance need to be further clarified and capacity increased. Serbia needs to address 
the issue of potentially discriminatory road charges against foreign operators and the country 
should decide on its strategic direction for implementing ITS. 

and 

financial 

sustainability  of 

On rail transport, investments in infrastructure increased while overall reform efforts slowed 
down.  Serbia  needs  to  remain  focused  on  the  full  alignment  with  the  fourth  EU  railway 
package.  The  operational 
railway 
service/infrastructure  operators  remains  on  good  track.  Serbia  regularly  updates  its  railway 
network  statement  but  it  is  not  yet  fully  compliant  with  the  EU  acquis  and  Serbia’s 
negotiating  framework.  Serbia  is  preparing  a  European  railway  traffic  management  system 
deployment plan with EU funded technical assistance. In 2021, 13 private freight companies 
operated on the market, two more than in the year before. However, to ensure full opening of 
the  market,  further  efforts  are  required  including  efforts  concerning  train  driver  licenses, 
safety  certificates  and  mutual  recognition  of  the  rolling  stock.  Serbia  needs  to  improve  its 
railway  safety  system,  certification  procedures  and  its  administrative  capacity,  in  particular 
regarding training facilities and training programmes.  

independent 

the  provisionally  published  working  versions  of  11 

technical 
Formal  adoption  of 
specifications for interoperability (TSI) is pending for three years. Serbia needs to ensure that 
its railway infrastructure is built in line with TSIs. Limited progress was made on improving 
human resource management in  the railway field (development  plans for  all rail authorities, 
incorporating technological and administrative developments), and no progress was made on 
strengthening the role and capacity of the Railway Directorate.  

Legislation  on  maritime  transport  is  well  aligned  with  the  EU  acquis.  Serbia’s  Law  on 
maritime  navigation  complies  with  the  EU  acquis  on  vessel  traffic  monitoring  and 
information systems. Serbia should continue implementing international conventions.  

Regarding inland waterway transport, Serbia continues to improve its already high level of 
alignment and its investments. Investments in inland waterway infrastructure need to be done 
in line with environmental standards and the cost-effectiveness principle. Serbia’s operational 
river  information  services  system  is  highly  interoperable  with  those  of  EU  Member  States. 
Serbia should continue working on fulfilling the preconditions  for recognition  of navigation 
certificates  in  the  EU  in  accordance  with  Directive  2017/2397.  While  Serbia  continued 
improving its infrastructure for inland waterway transport services, it did not progress on the 
river ports’ network statement, neither on strengthening its administrative capacity.  

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Serbia  has  a  good  level  of  alignment  with  the  EU  acquis  on  aviation.  During  the  reporting 
period,  Serbia  adopted  several  regulations  on  performance-based  navigation,  aerodrome 
certificates,  air  traffic  management  network  functions,  air  traffic  flow  management,  voice 
channels spacing and air worthiness. With regards to aviation regulations, Serbia is  close to 
fulfilling  all  obligations  stipulated  in  the  first  transitional  period  of  the  European  Common 
Aviation  Area  Agreement.  However,  Serbia  still  needs  to  further  align  its  secondary 
legislation on state aid with the acquis and provide a solid track record in the implementation 
of laws on protection of competition and state aid control. In the domain of aviation safety, 
the  European  Union  Aviation  Safety  Agency 
the 
implementation of EU safety standards. Corrective actions on EASA’s findings issued in 2021 
were successfully implemented. In November 2021, a standardisation inspection was carried 
out    in  the  domain  of  air  traffic  management  and  air  navigation  services.  In  March  2022, 
EASA conducted standardisation inspections in the areas of airworthiness and air operations. 
In  the  area  of  air  operations,  EASA’s  findings  on  staff  shortages  are  being  adressed  by  the 
implementation a recruitment plan to strengthen the oversight capability of the Civil Aviation 
Directorate.  

(EASA)  continues  monitoring 

On  the  Single  European  Sky,  Serbia  completed  its  harmonisation  process.  No  progress  was 
made  regarding  lifting  the  suspension  of  articles  on  the  licensing  of  air  carriers  and  the 
normalisation of the lower airspace regime over Kosovo, which remain important  priorities. 
Serbia needs to apply Regulation 1008/2008 on common rules for the operation of air services 
in the Community, as incorporated in the European Common Aviation Area Agreement.  

There  is  no  specific  legislation  on  combined  transport.  Serbia  regularly  allocates  budget 
funds to promote combined transport, however, combined transport should be promoted in a 
more systemic and strategic manner. Construction of the first modern intermodal terminal in 
Belgrade, which started in November 2020, is progressing well.  

Chapter 15: Energy  

EU  energy  policy  covers  energy  supply,  infrastructure,  the  internal  energy  market, 
consumers, renewable energy, energy efficiency, nuclear energy, nuclear safety and radiation 
protection.  

Serbia  is  moderately  prepared  in  this  field.  Limited  progress  has  been  made  particularly 
regarding last year’s recommendations, which remain valid in substance.  

In the coming period, Serbia should: 

  finalise and implement the National Energy and Climate Plan (NECP) and Energy Sector 
Development Strategy in accordance with the Green Agenda for the Western Balkans and 
the  obligations  from  the  Energy  Community  Treaty;  advance  on  the  green  energy 
transition by increasing the share of renewables, strengthening capacity to manage larger 
energy efficiency programmes and launching the first auction for renewables in 2022; 

  accelerate  the  implementation  of  action  plans  and  finalise  unbundling  the  gas  sector, 
certify Transportgas and provide effective third party access to all gas entry points, further 
diversify natural gas transportation routes and sources to decrease its energy dependence 
on Russia, in line with the REpowerEU communication; 

  in  the  context  of  establishing  a  regional  electricity  market,  determine  net  transmission 

capacities and capacity allocation with all neighbouring control blocks.  

Serbia  maintained  a  high  level  of  alignment  with  the  EU  acquis  on  security  of  supply 
including  on  emergency  oil  stocks.  Oil  stocks  continue  to  increase,  especially  after  the 

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volatility in  energy markets caused by the Russian war of aggression against Ukraine. They 
corresponded  to  30  days  of  average  daily  consumption  in  June  2022.  Construction  of  two 
20 000 m3 of oil storage capacity continued in Smederevo. Works on the largely EU-funded 
gas  interconnector  between  Serbia  and  Bulgaria  commenced  in  January  2022.  The 
interconnector  shall  provide  diversification  of  gas  routes  and  sources,  but  the  lack  of  gas 
market opening and third party access to the gas network continue to hamper Serbia’s security 
of  supply.  Serbia’s  dependence  on  its  single  gas  supplier  Gazprom  and  Russian  majority 
control of Serbia’s gas infrastructure and oil industry continued. The upgrading of the Trans-
Balkan  electricity  corridor  is  progressing  to  some  extent,  with  the  Kragujevac-Kraljevo 
section and substations finished in June 2022.  

Following the separation of the Kosovo transmission system operator KOSTT from the Serbia 
control block, the Serbian electricity transmission system operator EMS did not determine net 
transmission capacities and capacity allocation with the Kosovo control block. Serbia did not 
make  progress  in  setting  up  regionally  coordinated  auctions  with  its  Western  Balkan 
neighbours.  

Concerning  the  internal  energy  market,  Serbia’s  primary  legislation  is  compliant  with  the 
EU’s third energy package.  In August  2022, Serbia’s regulator  adopted  an  updated network 
code while other codes are still pending. Trading volumes on the organised day-ahead market 
continued to grow in 2021. Serbia intends to introduce a liquid intraday electricity market. A 
balancing energy market is operational, but prices for balancing reserves are still regulated. 

The unbundling of the electricity transmission system operator EMS is still not completed in a 
manner  compliant  with  Energy  Community  rules.  In  November  2021,  Transportgas  Srbija 
submitted a request for certification of the company according to the ISO model. In July 2021, 
the Energy Agency (AERS) approved acts on the price of access to the transportation system, 
the  tariff  for  gas  transportation  and  the  price  for  system  balancing.  The  new  gas  supply 
company Srbijagas Novi Sad was established and registered in October 2021.The certification 
and  unbundling  of  new  companies,  foreseen  in  Serbia’s  action  plan  for  unbundling  the  gas 
sector, is delayed. There is no third party access to the gas system infrastructure of Srbijagas, 
Gastrans and Yugorosgaz. The Balkan Stream pipeline section in Serbia was connected to the 
Hungarian  gas  network  in  October  2021.  Regarding  the  regulatory  regime  for  this  project, 
Serbia recognises the need for a tailor-made solution for the Gastrans company, in compliance 
with EU legislation.  

Electricity and gas supply prices are deregulated for all customers; however, households and 
small  customers  have  the  right  to  be  supplied  under  regulated  prices.  In  2021,  the  non-
regulated  market  slightly  increased  and  accounted  for  50.84 %  of  total  end-user  electricity 
consumption and 83 % of total  end-user  gas consumption. The regulated electricity price of 
universal  supply  to  small  customers  and  households  is  still  significantly  below  the  market 
price,  which  impedes  competition.  Electricity  prices  should  cover  investment  needs  for 
Serbia’s  energy  and  climate  reforms,  including  decarbonisation.  (See  also  chapter  on 
economic criteria).  

The  Serbian  energy  agency  is  legally  and  functionally  independent  from  any  other  public 
entity, but  it has no legal  enforcement power to  ensure  compliance of regulated companies. 
The number of staff increased during the reporting period from 40 to 43, though still falling 
significantly short of the 55 staff needed as per  organigram.  Increasing staff is  necessary to 
allow the agency to implement all regulatory responsibilities under the third energy package, 
the  new  Law  on  renewable  energy,  and  the  new  acquis  upfront.  Employment  of  new  staff, 
especially highly specialised experts, remains challenging due to higher salaries in the private 
sector. 

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On hydrocarbons, Serbia started to implement its mining law adopted in April 2021.  

On renewable energy, Serbia made some progress on further alignment with the EU acquis. 
After the adoption of the Law on renewable energy in April 2021, Serbia continued alignment 
with  the  Renewable  Energy  Directive  (RED  II,  directive  2018/2001/EU)  by  adopting  six 
pieces  of  implementing  legislation  and  four  methodologies  on  support  schemes  for  energy 
from renewable energy sources (RES), the development of the renewable energy market and 
the  introduction  of  prosumers.  Serbia  should  finalise  and  adopt  all  missing  implementing 
legislation  to  launch  RES  auctions  and  simplify  procedures  for  prosumers.  For  full 
transposition of RED II, Serbia needs further secondary acts, such as on sustainability criteria 
for  biofuels,  bioliquids  and  biomass  fuels.  Limited  progress  has  been  made  in  introducing 
sustainability and  greenhouse emissions saving criteria for biofuels  and increasing the share 
of RES in district heating systems and in the transport sector. The latter was at 1.17 % in 2020 
while  the  target  for  2020  was  10 %.  Due  to  the  change  of  methodology  for  calculating  the 
RES  share  in  gross  final  energy  consumption  (GFEC)  and  integration  of  energy  produced 
from  firewood in  households,  Serbia’s share of  RES in  GFEC  in  2020 was  26.3 %;  thereby 
almost reaching the national target for 2020, which is 27 %. Serbia should set new ambitious 
annual  targets  for  RES  until  2030  in  its  National  Energy  and  Climate  Plan  (NECP),  which 
should be adopted in 2022.  

The lack of human resource capacity in the ministry of mining and energy’s department for 
green  energy  could  create  bottlenecks  in  implementing  RES  support  schemes.  The  total 
capacity  of installed RES power  slightly  increased as compared  with  the previous  reporting 
period. Total capacity of wind power exceeds 400 MW, while total capacity of other sources 
(not including big hydropower plants) is 183 MW.  

Serbia continued to progress in aligning with the EU acquis on energy efficiency by adopting 
implementing legislation under the new Law on energy efficiency and rational use of energy. 
In  February  2022,  Serbia  adopted  a  long-term  building  renovation  strategy  until  2050  with 
targets  to  renovate  the  existing  public  buildings stock  by  2050  and  to  introduce  nearly  zero 
energy buildings (NZEB) standards for all new public and commercial buildings. Serbia still 
needs to adopt further primary and implementing legislation to achieve full alignment with the 
Directive on the Energy Performance of Buildings, including defining the NZEB standard. In 
its NECP, Serbia should follow the ‘energy efficiency first’ principle and set ambitious targets 
for energy efficiency and annual building renovation. In July 2022, Serbia submitted the sixth 
annual  report  to  the  Energy  Community  Secretariat.  Human  resource  capacity  in  the  newly 
established  Directorate  for  Energy  Efficiency  needs  to  double,  its  institutional  role 
strengthened and energy efficiency financing increased to take the sector forward decisively 
in this crisis situation. Currently, the Directorate cannot manage energy efficiency measures 
for  individuals,  nor  run  multi-annual  programmes.  Serbia  expanded  its  housing  renovation 
programme in 2022, which is a positive development. However, Serbia did still not manage to 
roll out  consumption-based metering  and billing  in  district  heating, a precondition to  attract 
large-scale investments in retrofitting the building stock.  

On  nuclear  energy,  nuclear  security  and  radiation  protection,  Serbia’s  legislation  is 
partially in line with the EU acquis. In the reporting period, Serbia adopted five bylaws. An 
EU-funded project to strengthen Serbia’s capacity in the fields of nuclear and radiation safety 
and radioactive waste management started in 2021. Serbia made no progress on adopting the 
ECURIE agreement between the European Atomic Energy Community and non-EU countries 
on  the  early  exchange  of  information  in  the  event  of  radiological  emergency.  The  Serbian 
public  utility  ‘Nuclear  Objects’  has  yet  to  finalise  licencing  of  two  old  storage  facilities, 
which expired in  November 2019, along with  the new radioactive waste  processing facility, 
two  nuclear  research  reactors  and  an  abandoned  uranium  mine.  The  Serbian  Radiation  and 

120 

 
 
Nuclear Safety and Security Directorate SRBATOM is Serbia’s independent regulatory body 
with  executive  functions  in  the  area  of  radiation  and  nuclear  safety  and  security,  including 
inspection  functions.  Current  staffing  is  sufficient  but  will  need  to  increase  to  fulfil 
SRBATOM’s future obligations. 

Chapter 21: Trans-European networks  

The EU promotes trans-European networks in the areas of transport, telecommunications and 
energy to strengthen the internal market and contribute to growth and employment.   

Serbia  is  moderately  prepared  for  trans-European  networks.  Some  progress  was  made 
overall, including on infrastructure upgrading, the construction of the gas interconnector with 
Bulgaria and on last year’s recommendation on Serbia’s strategic framework for the transport 
sector. 

In the coming year, Serbia should: 

  continue to modernise its transport and energy infrastructure connections in line with the 

EU’s and the Western Balkans’ sustainable and smart mobility strategies,  

  focusing  on  its  part  of  the  Trans-European  network  and  prioritising  connections,  which 
reduce  Serbia’s  dependency  on  Russian  energy  sources  in  line  with  the  REpowerEU 
communication; 

  continue  to  build  the  Serbia  Bulgaria  gas  interconnector  within  the  shortest  possible 

period. 

transport 

resilience  of 

On transport networks, the challlenges in the sector remain: decarbonisation, digitalisation 
and 
infrastructure;  multiannual  maintenance  planning  and 
implementation  in  road  and  rail;  alignment  with  TEN-T  regulatory  framework;  and 
compliance with EU laws and standards on public procurement, state aid and environmental 
impact  assessments.  Rail 
technical 
specifications  for interoperability.  Investments  need to  be designed and implemented in  full 
respect  of  environmental  standards  and  based  on  cost-benefit  analyses  following  EU  best 
practices.  

infrastructure  needs 

to  comply  with 

the  EU’s 

Serbia remains committed to transport faciliation, including green corridors, focusing on rail 
and  road  border  crossings.  Serbia  needs  to  demonstrate  effective  implementation  of  the 
Transport Community Treaty. Serbia continues to invest substantial funds in the upgrading of 
its transport infrastructure. Proper financial structuring of projects remains a priority, also for 
Serbia’s absorption of EU funds.  

Regarding  roads,  works  on  the  Niš–Merdare  highway  started  in  September  2021  with  the 
support  of  EU  funds.  Preparation  for  remaining  sections  needs  to  accelerate.  Regarding  rail 
infrastructure, the Belgrade-Novi Sad railway line was put in operation in March 2022. Works 
on  the  remaining  part  of  the  Budapest-Belgrade  line,  the  Novi  Sad-Subotica  sub-section, 
commenced in April 2022 and are planned to last for 33 months. Serbia  is about to sign the 
first  works  contract  related  to  the  modernisation  of  the  Niš–Dimitrovgrad  railway  line,  thus 
de-blocking the long delayed project. Preparation for the modernisation of railway corridor X, 
Belgrade-Niš-Preševo  (state  border)  under  the  EU  Economic  and  Investment  Plan  is 
advancing well. In February 2022, Serbia signed a first contract for lot 1 of the Stalać-Djunis 
sub-section.  Throughout  2022,  Serbia  continued  upgrading  its  inland  waterway  and  airport 
infrastructure.  The  modernisation  of  the  Nikola  Tesla  airport  in  Belgrade  advanced 
considerably  through  the  concession  with  VINCI  Airports,  notably  regarding  its  runway, 
passenger terminal and waste water treatment plant. 

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On trans-European energy networks, administrative capacity for harmonisation with the EU 
acquis  remains  insufficient.  For  further  decarbonisation  of  the  electricity  sector  and  an 
increased share of renewable sources, energy networks need to be upgraded in line with EU 
acquis  on  trans-European  networks.  Regarding  the  Trans-Balkan  electricity  corridor,  works 
on section II from Kragujevac to Kraljevo finished in June 2022. The upgrade of section III 
from Obrenovac to Bajina Bašta is being contracted. Lack of agreement on funding continues 
to  hapmer  progress  on  section  IV,  the  interconnection  between  Serbia,  Bosnia  and 
Herzegovina  and  Montenegro.  Good  progress  was  made  on  the  gas  interconnector  between 
Serbia and Bulgaria and works commenced in January 2022. The Russian war of aggression 
against  Ukraine  is  substantially  impacting  prices  and  the  availability  of  materials.  The 
interconnector should be operational by the end of 2023.  

Chapter 27: Environment and climate change  

The  EU  promotes  strong  climate  action,  sustainable  development  and  protection  of  the 
environment. EU law contains provisions addressing climate change, water and air quality, 
waste  management,  nature  protection,  industrial  pollution,  chemicals,  noise  and  civil 
protection.  

Serbia  has  achieved  some  level  of  preparation  in  the  area  of  environment  and  climate 
change. Overall, Serbia made limited progress during the reporting period including on last 
year’s  recommendations,  in  particular  by  continuing  to  increase  environmental  funding  and 
investments,  improving  trans-boundary  cooperation  and  developing  its  national  energy  and 
climate plan. The adoption of important legislation and strategic documents is pending. 

Last  year’s  recommendations  remain  largely  valid.  Serbia  should  considerably  step  up 
ambitions towards a green transition and focus on:  

  adopting  and  start  implementing  an  ambitious  national  energy  and  climate  plan  through 
transparent  consultative  procedures,  consistent  with  the  European  Green  Deal’s  zero 
emission target for 2050 and the Green Agenda for the Western Balkans;  

  intensifying  implementation  and  enforcement  work,  such  as  ensuring  strict  adherence  to 
rules  on  environmental  impact  assessment,  closing  non-compliant  landfills,  increasing 
investing  in  waste  reduction,  separation  and  recycling,  improving  air  and  water  quality 
including  through  phasing  out  coal,  further  intensifying  trans-boundary  cooperation, 
improving law enforcement by inspectorates and judiciary, adopting Serbia’s river basin 
management plan 2021-2027 and continue preparing for Natura 2000; 

in 

  enhancing  administrative  and  financial  capacity  of  central  and  local  authorities,  in 
the  Serbian  Environmental  Protection  Agency  and  environmental 
particular 
inspectorates,  by  further  improving  inter-institutional  coordination,  further  raising  staff 
levels,  continuing  to  raise  environmental  investments  as  well  as  further  improving 
strategic  investment  planning  and  management  including  transparency  of  procedures.  A 
coordinated,  institutional  structure  is  required  to  deliver  the  size  and  quality  of  the 
investments that Serbia needs.  

Environment 

In  2022,  the  Serbian  national  budget  for  environment  and  climate  action  was  increased  by 
50 %  compared  to  2021.  Serbia  finances  new  environmental  programmes  such  as  for  the 
replacement  of  heating  equipment,  afforestation  and  the  purchase  of  electric  and  hybrid 
vehicles.  All  income  generated  from  environmental  fees  should  be  earmarked  for 
environmental  purposes.  Although  Serbia  is  substantially  increasing  investments  into 
environmental  protection,  it  still  lacks  an  effective  institutional  set-up  and  transparent 

122 

 
 
procedures.  Strategic  planning  is  now  better  aligned  with  policy  priorities.  Serbia  should 
systematically  prioritise  environmental  projects  with  the  highest  environmental  impact  and 
improve co-financing and management of environmental investments. In 2021, Serbia agreed 
on  an  alledged  EUR  3.2 billion  sewage  and  wastewater  programme  with  China’s  Road  and 
Bridge Corporation without tender and started implementing it in several municipalities; little 
information  and  no  official  documents  are  publicly  available.  Large  long-term  (industrial) 
investment projects need to comply with highest EU environmental standards.  

In the area of horizontal legislation, Serbia has a high level of alignment with the EU acquis 
but  implementation  and  enforcement  need  to  be  further  improved,  in  particular  by 
strengthening administrative capacity at central and local level, including at inspectorates and 
judiciary. Legislation on environmental impact assessment (EIA) and strategic environmental 
assessment  (SEA)  needs  to  be  further  aligned.  Serbia  should  tackle  critical  deficiencies  of 
current  procedures,  including  the  issuance  of  construction  permits  before  an  EIA  procedure 
and splitting projects into several smaller projects which, taken individually, do not require an 
EIA process.  

EIA  implementation  needs  to  be  considerably  strengthened.  The  quality  of  public 
consultations  did  not  improve  during  the  reporting  period,  partly  due  to  the  continuing 
COVID-19  crisis.  Serbia  needs  to  ensure  transparency  about  investments  and  their 
environmental  effects  and  respect  for  freedom  of  expression  and  assembly  in  the 
environmental  sector.  Serbia  needs  to  carry  out  strategic  environmental  assessments  for  all 
plans  and  programmes,  which  set  the  framework  for  projects  listed  in  the  EIA  Directive. 
Transboundary  cooperation  improved  during  the  reporting  period.  Serbia’s  spatial  plan  is 
currently  undergoing  a  SEA,  and  Bulgaria  and  Romania  are  participating  in  a  related  trans-
boundary procedure.  Following widespread environmental  protests in  late 2021, the Serbian 
government  withdrew  all  permits  for  the  Jadar  lithium  mine  project  in  February  2022. 
Legislative alignment on environmental liability  and environmental  criminal  law  acquis  has 
not progressed. Enforcement remains a key priority, including establishing a track record on 
implementing  the  Environmental  Crime  Directive.  In  February  2022,  Serbia  established  a 
Unit  for  the  suppression  of  environmental  crime  and  environmental  protection  within  the 
Police Directorate of the Ministry of Interior. 

The Serbian Environmental Protection Agency’s annual reports are regularly published with a 
one  year  delay.  For  the  data  to  be  useful  and  relevant  to  the  public,  reports  should  be 
published in a timely manner. Recent changes in the agency’s staff had a critical  impact on 
the  agency’s  capacity.  On  INSPIRE,  there  is  a  growing  number  of  users  of  the  national 
geoportal Geosrbija 2.0, and regular updates and improved access to data and harmonisation 
of registers are provided. 

In the field of air quality, Serbia has a good level of alignment with the EU acquis. However, 
Serbia needs to speed up implementation including of air quality plans, and further improve 
its air quality monitoring system. Serbia adopted two new air quality plans, in Kragujevac and 
Kosjerić. A national programme on air quality was developed and public consultations carried 
out,  but  it  was  not  adopted  in  time  before  elections.  Adopting  the  EU  air  quality  index 
remains  a  key  recommendation,  as  well  as  ensuring  adequate  staffing  of  the  Serbian 
Environmental Protection Agency. Serbia’s annual air quality report for 2020 benefited from 
large data collection. It listed an increased number of agglomerations with air pollution above 
the  limits  (19)  as  compared  to  last  year  (13).  Pollution  induced  by  the  Kostolac  B  thermal 
power plant needs to be addressed urgently. Serbia has not yet aligned its legislation with the 
requirements of EU acquis for national emission ceilings. Alignment with the EU acquis on 
volatile organic compound emissions needs to continue.  

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Regarding  waste  management,  Serbia  has  a  good  level  of  alignment  with  the  EU  acquis; 
however, implementation remains at an early stage. In early 2022, Serbia adopted a national 
waste  management  programme  2022-2031  and  a  waste  action  plan  2022-2024,  which  had 
been  developed  with  EU  and  Swedish  support.  Serbia  has  10  regional  sanitary  landfills, 
which,  in  2020,  received  19 %  of  generated  municipal  waste.  Additional  economic 
instruments for special waste streams need to be urgently developed. In Serbia, the recycling 
rate in 2020 was 15.5 % but less than 2 % came from households. While Serbia closed a few 
more non-compliant landfills, it should continue closures in a more systemic way, in addition 
to  increasing  investing in waste reduction, separation and  recycling. The remediation of the 
Belgrade landfill and the construction of a waste to energy facility continued in the reporting 
period. Serbia’s inspection capacity in the waste sector is insufficient.  

The  level  of  alignment  with  the  EU  acquis  on  water  quality  is  moderate.  Pollution  by 
nitrogen  and  phosphorus  originates  from  the  energy  sector,  waste  and  wastewater  public 
companies and chemical and mineral industries. Non-compliance with water quality standards 
remains  a  big  concern  in  some  areas,  such  as  those  where  arsenic  is  present.  In  July  2021, 
Serbia adopted its action plan for implementing the water management strategy. Serbia needs 
to  step  up  its  efforts  to  further  align  its  legislation  with  the  EU  acquis,  and  to  strengthen 
administrative  capacity,  in  particular  for  monitoring,  enforcement  and  inter-institutional 
coordination.  Serbia  should  address  river  pollution  more  rigorously  and  start  implementing 
measures after conducting trans-boundary consultations for rivers such as the Danube, Drina, 
Draghovishtitsa and Pek rivers. In November 2021, Serbia held public hearings on the draft 
river  basin  management  plan.  In  May  2022,  Serbia  and  Bulgaria  signed  a  memorandum  of 
understanding on EIA and SEA. Improving local governance, in particular for operating and 
maintaining  water  and  wastewater  facilities,  remains  a  priority.  Increased  transparency  on 
planning, selecting and managing environmental investments will ensure better adherence to 
EU laws and standards in this sector and better value for money. EU funded work on adequate 
water  fees  and  tariffs  has  started  with  the  participation  of  33  municipalities.  Work  on 
developing flood risk management plans is ongoing.  

Alignment  with  the  EU  acquis  in  the  field  of  nature  protection,  in  particular  with  the 
Habitats and Birds Directive, is moderate. Serbia needs to address gaps in legislation, which 
currently  allow  for  the  hunting  of  non-huntable  birds,  especially  the  goshawk  and  the 
turtledove.  In  2021,  Serbia  declared  a  closed  hunting  season  for  turtle  doves  from  October 
2021  until  August  2024;  this  is  a  very  welcome  development.  Serbia  needs  to  fully 
incorporate  EU  standards  on  prohibited  means  of  capturing  and  killing  wild  animals 
throughout  its  entire  legislation,  including  in  legislation  on  hunting.  Authorities  need  to 
address  illegal  hunting  and  illegal  lodging  more  effectively.  Work  on  establishing  Natura 
2000 sites continued, supported with EU funding. Institutional and human resource capacity 
at  national  and  local  level  remains  weak,  in  particular  as  regards  enforcement  and  wildlife 
trade.  Any  further  development  of  hydropower  should  be  in  line  with  EU  environmental 
legislation. The scope of Serbia’s ban on building small hydropower plants in protected areas 
should be widened, in particular to include the procedure on the appropriate assessment of the 
ecological network. 

As  regards  industrial  pollution  and  risk  management,  alignment  with  most  of  the  EU 
acquis is at an early stage across the industrial sector, including on the Industrial Emissions 
Directive  (IED).  In  November  2021,  Serbia  postponed  the  deadline  for  issuing  integrated 
permits for large polluters from 2020 to 2024. The Serbian Kostolac B thermal power plant is 
Europe’s  biggest  sulphur  dioxide  polluter.  Inspection  and  law  enforcement  remain  areas  of 
concern. Serbia needs to increase capacity for managing the integrated permitting processes. 
Serbia should enforce the polluters' pay-principle in order to encourage the industry to invest 

124 

 
 
in  green  solutions.  The  Environmental  Protection  Agency  updated  the  cadastre  of 
contaminated  sites  in  April  2022.  In  2021,  the  number  of  inspections  increased  while  a 
decrease  in  decisions  and  fines  was  noted.  In  September  2021,  Serbia  ratified  the  Law  on 
amending Annex I to the Convention on Transboundary Effects of Industrial Accidents.  

Serbia has a high level  of alignment  with  the EU  acquis  on chemicals.  In  November 2021, 
Serbia  adopted  a  new  Law  on  biocidal  products,  increasing  its  alignment  with  the  EU’s 
Biocidal Products Regulation. Developments on REACH and CLP Regulations and on animal 
experiments and asbestos legislation largely stagnated in the past three years. Serbia needs to 
boost  its  administrative  capacity  to  implement  legislation  in  these  areas,  and  ensure  proper 
monitoring of persistent organic pollutants. 

Alignment  with  the  EU  rules  on  noise  increased  through  the  adoption  of  a  new  Law  on 
environmental  noise  protection  in  October  2021.  Implementation  remains  at  an  early  stage. 
Serbia  needs  to  improve  administrative  capacity  for  preparing  noise  maps  and  action  plans 
and for enforcing noise legislation.  

Regarding  civil  protection,  Serbia  has  a  legal  and  policy  framework  for  disaster  risk 
management.  Serbia  is  an  active  member  of  the  Union  Civil  Protection  Mechanism.  In 
summer 2022 under the  UCPM, Serbia provided significant support  to combating wildfires, 
for  instance  by  deploying  firefighting  helicopters  to  Slovenia.  It  has  yet  to  connect  to  the 
common emergency communication and information system CECIS. Serbia needs to ensure 
that  the  Niš  humanitarian  centre  does  not  duplicate  the  role  of  the  European  Commission’s 
emergency  response  coordination  centre  and  does  not  contradict  the  conditions  for  its 
participation in the Union Civil Protection Mechanism. 

Climate change 

Serbia has some level of preparation on climate change, but implementation is at a very early 
stage.  Following  the  adoption  of  the  Law  on  climate  change  in  March  2021,  Serbia  so  far 
adopted two out  of 12 pieces  of implementing legislation necessary to  enable implementing 
the  law.  In  October  2021,  Serbia  ratified  the  Kigali  Amendment.  Serbia  is  developing  its 
integrated  National  Energy  and  Climate  Plan  (NECP)  with  broad  participation  of 
stakeholders. Serbia needs to step up efforts to diversify energy sources, develop renewables 
and decrease energy intensity in order to translate its commitment to the Green Agenda for the 
Western  Balkans  into  concrete  action  including  on  introducing  carbon-pricing  instruments 
and phasing out coal subsidies. 

The  adoption  and  implementation  of  a  climate  strategy  and  action  plan  embedded  in  an 
ambitious  NECP,  which  is  consistent  with  the  EU  2050  framework  for  climate  and  energy 
policies and which addresses adaptation  to  climate change, is  paramount  for Serbia’s future 
low  carbon  development.  Serbia  needs  to  do  more  to  integrate  climate  action  into  other 
sectors. Serbia’s draft national spatial plan based on Serbia’s current energy strategy includes 
new thermal power plants. Serbia should consider setting a coal phase out-date as an effective 
means to comply with Energy Community law and Serbia’s Green Agenda commitments on 
reaching the EU target of climate neutrality.  

Work  on  improving  greenhouse  gas  inventories  did  not  progress.  In  August  2022,  Serbia 
submitted  with  some  delay  its  updated  Nationally  Determined  Contribution  (NDC)  to  the 
Paris  Agreement,  committing  to  a  33.3 %  decrease  in  greenhouse  gas  emissions  by  2030 
compared to  1990 levels. Alignment of legislation on monitoring, reporting and verification 
of greenhouse gas emissions in line with the EU emissions trading system and effort-sharing 
Regulation  is  still  pending.  Serbia  needs  to  considerably  strengthen  its  administrative  and 

125 

 
 
technical  capacity  at  all  levels  and  further  increase  investments  towards  green  energy 
transition.  

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION  

This cluster covers chapters 11-agriculture and rural development, 12-food safety, veterinary 
and  phystosanitary  policy,  13-fisheries,  22-  regional  policy  &  coordination  of  structural 
instruments,  and  33-financial  &  budgetary  provisions.  Two  out  of  five  chapters  are  open 
(chapter 13 and 33) with closing benchmarks that remain to be fulfilled in each chapter. The 
Commission  has  assessed  that  opening  benchmarks  have  been  met  for  chapters  11  and  22. 
Serbia has yet to meet all three opening benchmarks to open chapter 12. 

This cluster comprises policies linked to EU structural funds and developing the capacities to 
assume  responsibilities  of  a  future  Member  State.  It  also  comprises  some  of  the  key  policy 
areas crucial for ensuring sustainable food systems and helping rural communities to develop 
and diversify economically. 

Limited progress was achieved in different areas e.g. the adoption and implementation of the 
law on plant protection products; the classification of food establishments and establishments 
handling animal by-products; on financial and budgetary provisions as regards the underlying 
policy areas affecting the correct functioning of the own resources system; on regional policy 
as regards financial management.  

In the coming period, Serbia is invited to focus on the following areas: to focus on increasing 
the pace of  IPARD implementation  to  ensure a timely use of the financial  support from  the 
EU so as to avoid further loss of funds; to progress with the implementation of the action plan 
for  EU  acquis  alignment  in  agriculture  and  rural  development;  adopt  a  strategy  and  action 
plan for alignment with the acquis on food safety, veterinary and phytosanitary policy, as well 
as framework legislation on genetically modified organisms aligned with the acquis; adopt the 
action plan for alignment with the acquis on fisheries; implement the action plan for meeting 
the  requirements  of  the  EU  cohesion  policy  and  improve  capacity  to  manage  indirect 
management programmes under EU pre-accession assistance; draft an action plan to meet the 
administrative own resources conditions. 

Chapter 11: Agriculture and rural development  

The  common  agricultural  policy  supports  farmers  and  rural  development.  This  requires 
strong management and control systems. There are also common EU rules for quality policy 
and organic farming. 

Serbia has some level of preparation in agriculture and rural development. Some progress 
was made, in particular through the adoption of the amendment of the Law on agriculture in 
November 2021,  improving the efficiency of processing  IPARD applications, as well as the 
timely submission of the IPARD III programme for the period 2021-2027.  

In the coming year, Serbia should in particular: 

  take measures to improve implementation and avoid further loss of IPARD II funds; 

  ensure  the  smooth  roll-over  of  entrusted  IPARD  measures  to  the  2021-2027  period  and 

prepare new measures for entrustment;  

  update  and  continue  implementation  of  the  action  plan  for  EU  acquis  alignment  in 

agriculture and rural development. 

126 

 
 
 
As regards horizontal issues, the adoption of the next national programme for agriculture and 
rural development for the period 2022-2024 is pending. Its complementarity with the IPARD 
III  programme  should  be  ensured.  The  revision  and  update  of  the  action  plan  on  alignment 
with the EU acquis on agriculture and rural development should be finalised in the course of 
2022. Serbia should speed up the  establishment of the integrated administration and control 
system  (IACS),  and  the  transition  from  manual  to  electronic  processing  of  aid  applications. 
The procurement of software for the land parcel identification system (LPIS), a pre-condition 
for  the  start  of  the  IPA  2021  project  on  the  1st  phase  of  establishment  of  IACS,  should  be 
fulfilled  without  any  further  delays.  Progress  must  be  made  in  decoupling  payments  from 
production  and  linking  area-based  payments  to  cross-compliance  standards.  The  farm 
accountancy  data  network  (FADN)  is  established,  but  its sample  size  and  the  quality  of  the 
data needs to be further improved to be fully representative. 

In the area of the common market organisation (CMO), after the adoption of the framework 
law in June 2021 the decision on the list of agricultural products under market regulation was 
adopted.  Implementing  legislation  in  the  areas  of  marketing  standards,  public  and  private 
storage and producer organisations remains to be adopted.  

On  rural  development,  Serbia  is  entrusted  with  budget  implementation  tasks  for  four 
measures  under  the  IPARD  II  Programme,  however  implementation  of  the  ‘Technical 
assistance' measure is still pending. The delays in payments under the IPARD II Programme 
in  2021  resulted  in  a  loss  of  EUR  3.7  million  of  IPARD  funds.,  with  considerable  risk  of 
further losses in 2022 and 2023. It is important that Serbia fully implements its action plan for 
better absorption of funds. There are still 99 vacant positions from the 232 posts dedicated to 
IPARD within the Directorate of Agrarian Payments (IPARD Agency). The spending of EU 
funds under IPARD should be a priority to avoid financial de-commitments and the filling of 
vacant posts is essential for improved and timely processing of IPARD applications. 

Serbia’s IPARD III programme was prepared in an efficient and timely manner and approved 
by the European Commission in March 2022. Preparation for the implementation of the new 
measures  under 
farming', 
‘Implementation  of  local rural development  strategies  (LEADER)'  and  ‘Investments  in  rural 
public infrastructure' needs to start well in advance of their planned entrustment with budget 
implementation tasks. 

‘Agri-environment-climate  and  organic 

the  programme, 

As regards the quality policy, the continuing delay in the adoption of  legislation on quality 
schemes for agricultural products and foodstuffs is hindering the sector’s development.   

For  organic  farming,  the  area  under  organic  production  continues  to  grow,  with  fruit 
production having the most significant increase. Primary legislation on organic production has 
been drafted in line with the EU acquis but its adoption is still pending.  

Chapter 12: Food safety, veterinary and phytosanitary policy 

Food  safety,  veterinary  and  phytosanitary  policy  and  EU  hygiene  rules  for  foodstuff 
production 
ensure a high level of food safety. Animal health and welfare, and the safety of food of animal 
origin are safeguarded together with the quality  of  seeds, the plant protection material, the 
protection against harmful organisms and animal nutrition. 

Serbia  is  moderately  prepared  in  the  area  of  food  safety,  veterinary  and  phytosanitary 
policy. Limited progress was  made on implementing the recommendations  of the previous 
report, in particular through adoption of legislation and the start of implementation of the Law 
on  plant  protection  products,  the  provisions  regarding  the  training  of  professional  users  and 
periodic inspections of pesticide application devices. 

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In the coming year, Serbia should:  

  adopt  a  comprehensive  strategy  and  action  plan  for  alignment,  implementation  and 

enforcement of the EU acquis on food safety, veterinary and phytosanitary policy; 

  continue  strengthening  the  capacities  of  the  line  Directorates  and  inspection  services 
(Veterinary,  Agricultural,  Phytosanitary,  and  National  Reference  Laboratories),  where 
required, through recruitment of new staff to compensate for those leaving the service, and 
develop retention policies for skilled staff; 

  improve the risk-based approach to official controls for imports. 

In the area of general food safety, Serbia prepared an advanced draft of a strategy and action 
plan  for  the  alignment  with  the  EU  acquis  but  still  needs  to  adopt  it  after  inclusive  public 
consultations.  While  monitoring  and  official  control  programmes  were  adopted  for  food  of 
animal and plant origin as well as animal feed, Serbia still needs to considerably improve its 
risk-based approach for  imported foods.  For example, the Government’s Expert Council for 
Risk  Assessment  was  established  in  2017  but  the  outcome  of  its  work  is  yet  to  be  made 
public.  Unjustified  and  unilateral  changes  in  the  regular  application  of  existing  import 
procedures  (e.g.  for  meat),  which  may  potentially  constitute  non-tariff  barriers,  must  be 
avoided.  
Serbia has yet to carry out an audit of inspection staff. An integrated multiannual control plan 
was prepared by the Agricultural Inspection of Serbia, while this remains to be done by other 
inspection services within the Ministry of Agriculture. 

On  veterinary  policy,  annual  programmes  consisting  of  animal  health  protection 
measures  were  adopted  in  2022.  Mandatory  vaccination  of  domestic  pigs  against  classical 
swine  fever  discontinued  in  December  2019  and  no  new  cases  have  been  reported  since. 
African  swine  fever  continued  to  spread,  which  required  further  action  by  the  competent 
bodies. No cases of rabies were noted in the reporting period. Serbia has been informed that 
EU funding for oral rabies vaccination campaigns will cease after spring 2023, with national 
authorities  expected  to  fully  take  over  the  financing  of  these  campaigns  coupled  with  the 
necessary surveillance, in line with the EU acquis. The reduced administrative capacity of the 
Veterinary Directorate should be strengthened, including through the recruitment of additional 
policy  specialists  and  training  of  staff.  The  Veterinary  Directorate  also  continued  to 
successfully  outsource  some  of  the  meat  inspection  tasks  to  authorised  veterinarians. 
Alignment of the national legislation on animal welfare with the EU  acquis still needs to be 
finalised. 

As  regards  the  placing  of  food,  feed  and  animal  by-products  on  the  market,  Serbia 
made substantial progress in the categorisation of food establishments for compliance with the 
EU acquis but  the process  still needs to  be finalised. While some positive steps were noted 
(training  of  inspectors  and  provision  of  state  funding  for  construction  of  three  local 
intermediate  facilities),  Serbia  needs  to  further  improve  animal  by-products  management. 
Classification of establishments for management of animal by-products was completed.  

for 

On food safety rules and specific rules for feed, Serbia should considerably step up efforts 
to improve milk quality, and in that regard consider milk quality testing in the whole country. 
As  noted 
in  milk 
the  permitted 
remains five times higher than the limit allowed by the EU acquis. Serbia also still needs to 
take the necessary measures to reduce the presence of aflatoxins in animal feed. The national 
reference  laboratories  Directorate  was  further  strengthened  through  the  recruitment  of  staff 
and the acquisition of additional equipment. In the area of phytosanitary policy, the annual 

aflatoxins 

several 

years, 

level 

of 

128 

 
 
programme  of  plant  health  measures  was  adopted  in  May  2022.  Serbia  adopted  related 
rulebooks  and  started  the  implementation  of  specific  provisions  on  training  of  professional 
users and periodic inspection of devices for pesticide application. However, further efforts are 
needed in this area, in particular on information and awareness raising about pesticide risks. 

There  was  still  no  progress  on  adopting  the  framework  legislation  on  genetically  modified 
organisms  that  should  be  aligned  with  the  EU  acquis.  This  is  crucial  for  progress  in 
negotiations  for  membership  to  the  World  Trade  Organisation  and  is  a  prerequisite  for 
opening this chapter. 

Chapter 13: Fisheries 

The  common  fisheries  policy  lays  down  rules  on  fisheries  management,  protects  living 
resources  of  the  sea  and  limits  the  environmental  impact  of  fisheries.  This  includes  setting 
catch  quotas,  managing  fleet  capacity,  rules  on  markets  and  aquaculture  and  support  for 
fisheries and coastal communities. 

Serbia is moderately prepared in the area of fisheries. Limited progress was made with the 
completion of an institutional capacity assessment report. An advanced  draft action plan for 
the alignment with  the EU  acquis, which remains to  be  adopted, was presented.  Last  year’s 
recommendations remain valid. 

In the coming year, Serbia should: 

  adopt  an action plan for full compliance with  the requirements  of the EU  acquis  by the 
date  of  accession,  in  particular  regarding  organisation  of  the  markets,  aquaculture,  data 
collection and control measures, also against illegal, unreported and unregulated fishing;  

  address  the  severe  understaffing  of  competent  authorities  responsible  for  policy 

formulation and anti-fraud controls for fisheries (including border controls);  

Serbia  does  not  have  a  coastline,  therefore  a  large  part  of  the  EU  acquis  on  fisheries  is  not 
applicable.  Fisheries  consist  of  inland  fisheries  and  aquaculture  operations.  In  the  reporting 
period,  an  Assessment  Report  on  steps  needed  to  improve  institutional  capacity  in  fisheries 
was completed in April 2022. There were no further developments on the inter-institutional 
coordination in this area, including border and other anti-fraud controls, which would include 
customs and veterinary inspections and the development of clear protocols.   

On  resource  and  fleet  management,  the  European  Eel,  as  a  strictly  protected  species,  is 
covered  by  a  permanent  fishing  ban.  According  to  the  data  collection  framework,  the 
collection  of  annual  catch  quantities  and  biological  data  is  mandatory  for  recreational  and 
professional fishing activities. In addition, fisheries independent variables should be collected 
to assess abundance. The collection of statistical data on aquaculture for 2021 was carried out 
in line with the EU acquis. However, further strengthening of scientific capacity is needed to 
align data collection principles. In the field of structural actions the sector was included in 
the  IPARD  III  support  programme.  However,  structural  measures  remain  to  be  put  in  place 
for  small-scale  or  inland  fisheries.  On  inspections  and  control,  Serbia  is  expected  to 
implement  the  rulebook  on  catch  certification  and  bring  its  legal  framework,  including 
implementation  measures,  into  full  alignment  with  the  acquis  on  illegal,  unreported  and 
unregulated fishing (IUU) as soon as a solution has been found for the fish catch certificate. 
Legislation  on  market  policy  still  needs  to  be  adopted,  in  line  with  the  EU  acquis.  As 
concerns  State  aid,  there  are  incentive  payments  provided  to  fish  farmers.  Serbia  needs  to 
assess their compatibility with the EU acquis before accession.  

Chapter 22: Regional policy and coordination of structural instruments 

129 

 
 
Regional  policy  is  the  EU’s  main  tool  for  investing  in  sustainable  and  inclusive  economic 
growth.  Member  States  bear  responsibility  for  its  implementation,  which  requires  adequate 
administrative capacity and sound financial management of projects’ design and execution. 

Serbia is  moderately prepared in the area of regional policy and coordination of structural 
instruments. No progress has been made on last year’s recommendations which remain valid.  

In the coming year, Serbia should in particular:  

  urgently implement its action plan on cohesion policy, including nominating institutions 
in  line  with  planning;  in  particular,  to  ensure  timely  preparation  and  implementation  of 
IPA III multiannual operational programmes under indirect management; 

  further improve capacity for indirect management of IPA programmes, and guarantee that 

key positions are permanently filled, while retaining key staff; 

  ensure that all instruments are compliant with EU requirements in terms of programming 
and partnership principles and factor in the requirements of the future structural/cohesion 
funds in the institutional set-up. 

Serbia has still to adopt a legal framework for cohesion policy. Work on the law on cohesion 
policy needs to  accelerate. Multiannual  budget  planning is  regulated through the law on the 
budget system. National co-financing for EU pre-accession programmes is ensured at project 
level.  Serbia  needs  to  apply  a  systematic  approach  to  develop,  co-finance  and  implement 
multiannual operational programmes. 

Serbia did not yet define its institutional framework for cohesion policy. . Decisions on the 
appointment  of  institutions  and  bodies  that  will  implement  the  EU’s  Instrument  for  Pre-
accession Assistance (IPA III) should be made urgently, and their capacity developed with a 
view to their future role in cohesion policy. The institutional framework for managing IPA III 
will need to be adapted accordingly. Indirect management structures need to improve further 
to  efficiently  and  timely  manage  IPA  programmes  and  be  able  to  operate  in  an  ex-post 
controls environment. 

Weaknesses  persist  in  the  administrative  capacity  in  key  institutions  managing  EU  funds. 
Limits  to  the  number  of  senior  positions  were  removed  in  2021,  as  a  way  to  retain  and 
motivate  staff.  However,  frequent  changes  in  key  managerial  positions  within  the  indirect 
management  structures  have  continued,  as  did  managerial  appointments  in  acting  functions. 
The  turnover  of  staff  in  key  ministries  remains  a  problem,  as  experienced  staff  is  regularly 
replaced by newcomers. A more effective and holistic retention policy in the public sector is 
needed. Improvements in administrative capacity will minimise risks to lose EU IPA funds. 

Serbia continues to participate in the European Strategy of Adriatic Ionian Region (EUSAIR), 
which promotes cooperation and synergies among participating EU and non-EU countries. 

On  programming,  the  adoption  of  a  development  plan,  which  forms  the  legal  basis  for 
Serbia’s  regional  development  policy,  is  long  overdue.  It  should  valorise  the  development 
potentials  of  all  regions  in  Serbia  and  reduce  regional  and  local  disparities.  Serbia  should 
define the number and scope of its IPA III multiannual operational programmes as a priority. 
The investment planning system still lacks coherence, leading to non-transparent investment 
planning and investment financing and varied technical standards.  

On  monitoring  and  evaluation,  the  relevant  monitoring  committees  set  up  under  indirect 
management  continued  to  function.  However,  since  3  years  there  was  no  progress  on  the 
implementation  of  the  evaluation  plan  for  indirect  management  of  IPA  funds  and  the 

130 

 
 
establishment of a monitoring and evaluation system in accordance with the requirements of 
cohesion policy. 

On  financial  management,  control  and  audit,  the  capacities  of  the  national  systems  for 
indirect management of IPA funds, including in the Audit Authority, continue to improve. 

Chapter 33: Financial and budgetary provisions 

This  chapter  covers  the  rules  governing  the  funding  of  the  EU  budget  (‘own  resources’). 
These  resources  mainly  consist  of:  (i)  contributions  based  on  the  gross  national  income  of 
each  Member  State;  (ii)  customs  duties;  (iii)  the  non-recycled  plastic;  and  (iv)  a  resource 
based on value-added tax. Member States must have the appropriate administrative capacity 
to adequately coordinate and ensure the correct calculation, collection, payment and control 
of own resources.  

Serbia  has  some  level  of  preparation  in  the  area  of  financial  and  budgetary  provisions. 
Limited  progress  was  made  on  the  implementation  of  last  year’s  policy  recommendations 
and within the underlying policy areas affecting the correct functioning of the own resources 
system.The previous report’s recommendations therefore remain largely valid.  

In the coming year, Serbia should in particular:   

  further  strengthen  the  administrative  capacity  of  the  coordination  group  and  institutions 

involved in the own resources system;  

  develop organisational and procedural links between these institutions;  

  step up preparations to meet the specific administrative conditions for own resources, as 
laid  down  in  the  own  resources  regulations.  To  this  end,  draft  an  action  plan  with 
timelines to meet the administrative own resources conditions. 

There was limited to some progress in the underlying policy areas indirectly affecting the own 
resources system (for progress in these areas, see Chapters 16 – Taxation, 18 – Statistics, 29 
– Customs union, and 32 – Financial control).  

Regarding traditional own resources (TOR), the customs legislation is largely aligned with 
the  EU  acquis.  Serbia’s  customs  administration  procedures  ensure  that  cases  of  fraud  and 
irregularities are reported to the national authorities. However, reporting is manual and Serbia 
does not use OWNRES, or any other similar national electronic database, to report on fraud 
and  irregularities  for  amounts  over  EUR  10000.  Customs  continued  the  simulation  of  TOR 
accounts  in  2021.  However,  the  current  accounting  system  does  not  use  two  different 
accounts,  one  for  collected  or  secured  debts  (so-called  A  account)  and  the  other  for 
uncollected/unsecured  debts  or  secured  but  appealed  debts  (so-called  B  account).  Several 
departments in the customs administration, including its internal audit department, carry out 
control activities. The state audit institution is in charge of carrying out external audits.  

As regards the value added tax (VAT)-based resource, sufficient data sources are available 
for the calculation of the weighted average rate, deriving from the supply and use tables that 
were published for the first time in 2019.  

As regards the gross national income-based resource national accounts are compiled largely 
in  line  with  the  European  system  of  accounts  (ESA  2010).  However,  continued  efforts  are 
needed  to  produce  the  complete  data  required  by  the  ESA  2010  transmission  programme. 
Serbia  continued  to  improve  the  exhaustiveness  of  the  national  accounts  and  the  gross 
national income (GNI) calculations. Updated GNI data is available for the period 2005-2020. 
The GNI estimates include those of the non-observed economy; first estimates for VAT fraud 
were calculated without breakdown into with/without complicity, so VAT weighted average 

131 

 
 
rate is still not available . The results of tax audits are received from tax authorities and used 
to improve the exhaustiveness of the national accounts. Available data generally already meet 
the necessary standards of quality (reliability, comparability and exhaustiveness) to guarantee 
the legitimacy of GNI as a benchmark aggregate. The statistical office continued to improve 
its methods and data sources and regularly transmit GNI and GDP data to Eurostat. The work 
to establish a GNI inventory, based on the already existing description of sources and methods 
used to compile national accounts, started in 2018 and is to be finalised in 2024, together with 
the benchmark revison of national accounts data.  

Regarding  administrative  infrastructure,  the  capacity  of  the  institutions  in  the  relevant 
policy areas needs to be further strengthened. The group for the coordination and management 
of own resources of the EU tasked with ensuring correct calculation, accounting, forecasting, 
collection, payment, control and reporting on the implementation of the EU’s own resources 
policy  and  rules  has  been  reduced  from  three  (December  2020)  to  two  employees  (August 
2021). Support  is also needed for the group to fulfil its coordination tasks. Thereto, engaging 
in  a  twinning  light  project  to  benefit  from  expertise  of  a  recent  acceded  Member  State  is 
recommended. Furthermore, the organisational and procedural links between the institutions 
involved in own resources should still be developed.  

CLUSTER 6: EXTERNAL RELATIONS  

There  are two  chapters in  this cluster: chapter 30-external  relations, and  chapter 31-foreign, 
security and defence policy. Serbia is  yet  to  meet  the two opening benchmarks for chapters 
30, which includes finalising the accession to the World Trade Organisation (WTO). In this 
regard,  Serbia  should  adopt  a  WTO-compliant  law  on  the  trade  of  Genetically  Modified 
Organisms (GMOs) as a matter of urgency. 

The  screening  report  on  chapter  31  is  still  in  the  Council.  In  2021,  Serbia’s  alignment  rate 
with  relevant  High  Representative  declarations  on  behalf  of  the  EU  and  Council  Decisions 
was  64  %,  but  dropped  to  45 %  as  of  August  2022.  Serbia  continued  to  participate  in  EU 
crisis management missions and operations under the common security and defence policy. 

Serbia is invited to continue legislative alignment where necessary, and is also encouraged to 
implement actions under the common regional market based on EU rules, including through 
cooperation  with  CEFTA  and  the  Regional  Cooperation  Council.  Serbia  should  urgently 
improve  its  alignement  with  the  EU’s  Common  Foreign  and  Security  Policy,  including 
sanctions, and avoid actions that go against EU position on foreign policy.  

Chapter 30: External relations 

The  EU  has  a  common  trade  and  commercial  policy  towards  third  countries,  based  on 
multilateral and bilateral agreements, and autonomous measures. There are also EU rules in 
the field of humanitarian aid and development policy.  

Serbia remains moderately prepared in the area of external relations. No progress was made 
overall. The capacity to pursue key challenges in trade policy still remains to be strengthened, 
in  particular  in  order  to  move  forward  with  accession  to  the  World  Trade  Organization 
(WTO), where no progress was made.  In addition, Serbia introduced export restrictions on a 
number of products without presenting sufficient justifications, nor following the procedures 
set  out  in  the  Stabilisation  and  Association  Agreement  (SAA).  Although  Serbia  lifted  the 
restrictions  on  agricultural  products  in  August  2022,  due  to  internal  pressures,  and  on 
Eurodiesel EN 590 in September, the other export restrictions remain in place and should be 
removed without delay unless sufficient justification is presented. Serbia should abstain from 
taking  unilateral  trade  measures  without  justification  and  prior  consultation  with  the 

132 

 
 
Commission, in line with its commitments in the SAA. No substantial progress was made on 
development policy and humanitarian aid. 

In the coming year, Serbia should in particular:   

  finalise  its  accession  to  the  WTO,  inter  alia  by  adopting  a  WTO-compliant  law  on 
genetically  modified  organisms  and  complete  remaining  bilateral  market  access 
negotiations;  

  strengthen 

the  administrative  capacity  of 

the  Ministry  of  Trade,  Tourism  and 
Telecommunications  for  handling  trade  with  the  EU  and  CEFTA,  as  well  as  WTO 
accession;  

  remove  remaining  unjustified  trade  restrictions  as  a  matter  of  urgency    and  continue  to 
implement  actions  within  the  Common  Regional  Market  action  plan  2021-2024;  in 
particular  negotiate  and  ensure  a  swift  adoption  of  CEFTA  Additional  Protocol  7  on 
dispute settlement. 

As regards the common commercial policy, no progress was made on Serbia’s accession to 
the World Trade Organization (WTO). This continues to be stalled, primarily due to lack of 
progress on the adoption of a modified law on trade in genetically modified organisms, and on 
the  completion  of  market  access  negotiations  with  a  small  number  of  WTO  members.  The 
Regional Convention on Pan-Euro-Mediterranean (PEM) preferential rules of origin is being 
applied in Serbia. Following an EU proposal to apply in parallel a more flexible set of origin 
rules on a transitional basis until the PEM Convention can be amended, Serbia has amended 
its bilateral trade agreements with CEFTA partners, with EFTA, and after amending Protocol 
3  of  the  Stabilisation  and  Association  Agreement  (SAA)  in  February  2022,  with  the  EU. 
Serbia’s  customs  tariff  nomenclature  for  2022  was  harmonised  with  the  EU  combined 
nomenclature in November 2021.  

Serbia  should  ensure  smooth  implementation  of  the  SAA  and  abstain  from  introducing 
unilateral trade restrictive measures without prior consultation of the Commission, in line with 
its  SAA  obligations.  In  March  2022,  Serbia  introduced  an  export  ban  for  several  basic 
agricultural products, including wheat and sunflower oil, which in April 2022 was replaced by 
a quota regime (subsequently amended several times in scope and design) allowing for limited 
export.  Serbia  claimed  that  these  measures  were  justified  under  article  42  of  the  SAA  (the 
shortage  clause),  but  did  not  provide  sufficient  evidence.  In  May  2022,  Serbia  introduced  a 
temporary  (60  days)  export  ban  for  certain  wood  assortments.  Serbia  did  not  notify  the 
Commission  until  after  the  measures  were  taken  and  again  did  not  provide  sufficient 
justifications.  Informal  consultative  meetings  were  held  on  18  May  and  28  June.  In  June, 
Serbia introduced a temporary (7 days but prolonged on a weekly basis until 29 September) 
export  ban  on  eurodiesel  EN  590,  once  again  without  prior  notification  or  justification.  In 
August,  Serbia  introduced  a  temporary  (until  5  February  2023)  export  ban  on  certain  raw 
wood  products,  and  in  September  a  temporary  (30  days  and  later  prolonged  for  another  30 
days)  export  ban  on  certain  milk  and  butter  products.  The  Commission  was  again  not 
consulted or notified as foreseen in the SAA. A third consultative meeting took place on 30 
September.  Although  Serbia  lifted  the  restrictions  on  agricultural  products  in  August  2022, 
due  to  internal  pressures,  and  on  Eurodiesel  EN  590  in  September,  the  other  export 
restrictions  remain  in  place  and  should  be  removed  as  a  matter  of  urgency  unless  sufficient 
justification is presented.  

Furthermore, the unilateral measures adopted by Serbia in December 2020 with regard to the 
management  of  wine  imports  from  the  EU  restricting  the  allocation  per  trader  create  a  less 

133 

 
 
favourable  trade  environment.  As  these  measures  remain  in  place,  Serbia  is  encouraged  to 
restore the first come/first served arrangement.  

Serbia’s law on dual-use goods remains to be aligned with Regulation 2021/821 from May 
2021. In March 2022, Serbia adopted the national control list of dual-use goods aimed at full 
alignment  with  the  EU’s  Regulation  on  setting  up  a  community  regime  for  the  control  of 
exports,  transfer,  brokering  and  transit  of  dual-use  items  from  October  2021.  The  national 
control  list  of  arms  and  military  equipment  remains  to  be  aligned  with  the  Common 
Military List of February 2022. Serbia’sapplications to join the Wassenaar Arrangement and 
the  Australia  Group  are  still  under  consideration.  Serbia  is  not  a  signatory  of  the  Kimberly 
process on conflict diamonds.  

the  unit 

the  Ministry  of  Trade,  Tourism  and 
The  administrative  capacity  of 
Telecommunications  in  charge  of  trade  with  the  EU  and  EFTA  should  be  strenghtenedand 
Serbia’s  capacity  to  complete  the  WTO  accession  should  be  further  increased  through 
ensuring representation in Geneva. Further work is yet to be done to improve the capacity to 
collect  market  statistics  through  the  work  of  the  national  coordination  body  for  trade 
facilitation. 

in 

With  regard  to  the  participation  in  CEFTA,  Serbia  has  continued  the  implementation  of 
Additional Protocol (AP) 5 on Trade Facilitation and AP 6 on Trade in Services. Negotiations 
within CEFTA on AP 7 on Dispute Settlement are ongoing. Serbia should continue to play a 
constructive  role  in  CEFTA  and  within  the  Common  Regional  Market,  in  line  with 
commitments taken at the Sofia Summit in November 2020 and the Berlin Process. 

Regarding  bilateral  agreements  with  third  countries,  the  Partnership,  Trade  and 
Cooperation  Agreement  with  the  United  Kingdom  of  Great  Britain  and  Northern  Ireland 
formally  entered  into  force  on  15  July  2021.  Serbia  has  announced  plans  for  free  trade 
agreeements  with  China,  the  United  Arab  Emirates,  and  Egypt,  but  substantial  negotiations 
have  yet  to  begin.  All  the  agreements  that  Serbia  negotiates  must  ensure  compatibility with 
the  EU  acquis  and  include  sunset  clauses,  which  guarantee  that  Serbia  can  denounce  the 
agreements upon accession to the EU. Regarding bilateral investment treaties (BITs), Serbia 
should  develop  a  strategy  for  amending  or  terminating  existing  BITs  that  fall  short  of  EU 
standards  and  expose  the  country  to  risks  due  to  the  broad  and  open  language  used. 
Negotiations  on  new  BITs  are  ongoing  with  South  Korea,  and  have  been  announced  for 
Angola and Bahrain. A new BIT with Türkiye was signed in September 2022. 

No substantial progress was made on development policy and humanitarian aid. A new law 
on  development  cooperation  and  humanitarian  aid  is  still  being  prepared.  Development 
assistance and humanitarian aid are granted on an ad hoc basis.  

Chapter 31: Foreign, security and defence policy  

Member  States  must  be  able  to  conduct  political  dialogues  under  the  foreign,  security  and 
defence policy, align with EU statements, take part in EU actions, and apply agreed sanctions 
and restrictive measures. 

Serbia  is  moderately  prepared  in  the  area  of  common  foreign,  security  and  defence  policy 
(CFSP) and was backsliding during the reporting period. While following Russia’s unprovoked 
and  unjustified  aggression  against  Ukraine,  Serbia  aligned  with  several  EU  positions  in 
international  fora  (including  in  the  UN  General  Assembly  (UNGA),  it  has  so  far  refused  to 
align with any sanctions against the Russian Federation and has not aligned with the majority of 
High Representative (HR) declarations on this matter. What  is  more, Serbia has continued its 
close  relations  with  Russia  and    some  statements  and  actions  by  high-level  Serbian  officials 
went  directly  against  EU  positions  on  foreign  policy.  In  2021,  Serbia’s  alignment  rate  with 

134 

 
 
relevant  HR  declarations  on  behalf  of  the  EU  and  Council  decisions  on  restrictive  measures 
(sanctions) was 64 %. However, this rate dropped significantly to 45 % by August 2022. Serbia 
continued to  participate in  EU crisis  management  missions and operations under the common 
security  and  defence  policy.  Serbia  needs  to  appoint  the  persons  in  charge  of  performing  the 
functions of ‘political director’ and ‘European correspondent’. Serbia needs to step up efforts to 
build societal resilience to information manipulation, including disinformation, and take action 
to actively counter this and other forms of hybrid threats. 

In the coming year, Serbia should in particular:  

  improve,  as  a  matter  of  priority,  its  alignment  with  EU  Common  Foreign  and  Security 
Policy, including sanctions, and avoid actions and statements that go against EU positions 
on foreign policy; 

  implement  the  action  plans  for  the  implementation  of  new  national  security  and  defence 

strategies in a manner fully reflecting Serbia’s EU orientation in these areas;  

  adopt a law allowing the participation in civilian CSDP missions.  

The  political  dialogue  between  the  EU  and  Serbia  on  foreign  and  security  policy  (CFSP) 
continued. In November 2021, the fourth informal bilateral dialogue with Serbia on CFSP was 
held in Belgrade and in April 2022, Serbia actively engaged also in the EU-Western Balkans 
informal CFSP dialogoue of Political Directors.  

The institutional framework enabling Serbia’s participation in the CFSP and, respectively, the 
common security and defence policy (CSDP) is in place. In October and in December 2021, 
the government adopted the respective Action plans for the implementation of Serbia’s new 
defence and national security strategies. A draft law on Foreign Affairs, envisiging the post of 
Political Director, was prepared. Serbia also prepared a draft which would allow participation 
in civilian missions. The Office for Gender Equality is operative in the Ministry of Defence as 
of April 2022.  

On the Common Foreign and Security Policy, in 2021, Serbia’s alignment rate with relevant 
High Representative declarations on behalf of the EU and Council Decisions was 64%. As of 
August  2022,  Serbia’s  alignement  rate  dropped  to  45 %.  Serbia  aligned  with  three 
Declarations by the High Representative on behalf of the EU related to Russia and Ukraine, 
with  some  HR  Declarations  on  Belarus  and  with  sanctions  against  the  former  leadership  of 
Ukraine. In late September 2022, Serbia aligned with one further HR Declaration, on Russia’s 
illegal  sham  “referenda”  in  Ukraine.  However,  Serbia  has  so  far  refused  to  align  with  any 
restrictive measure against Russia, and with the vast majority of HR Declarations related to 
Russia and Ukraine. Belgrade also maintained its close relations with Moscow, including by 
receiving senior Russian officials who are on the EU sanctions list. Serbia aligned with some 
sanctions  against  Belarus,  as  well  as  with  the  sanctions  against  Myanmar.  Serbia  denied 
reports of the UN Special Rapporteur that it was exporting arms to Myanmar. Serbia needs, as 
a  matter  of  priority,  to  make  serious  additional  efforts  regarding  its  alignment  with  the  EU 
CFSP.  

In  multilateral  fora,  Serbia  aligned  with  the  EU  when  voting  in  UNGA  on  two  resolutions 
regarding Russia’s aggression against Ukraine and its humanitarian impact. Serbia also voted 
for suspension of the Russian Federation in the UN Human Rights Council. 

Serbia does not have bilateral immunity agreements granting exemption from the jurisdiction 
of  the  International  Criminal  Court  and  complies  with  the  EU  common  positions  on  the 
integrity  of  the  Rome  Statute,  together  with  the  related  EU’s  guiding principles on bilateral 
immunity agreements.   

135 

 
 
Serbia  continued  to  develop  intense  relations  and  strategic  partnerships  with  Russia. 
Serbia  did  not  explicitly  condemn  the  Russian  aggression  against  Ukraine,  although  it 
supported  the  territorial  integrity  of  Ukraine  and  pledged  humanitarian  assistance  and  is 
accomodating refugees from Ukraine. Serbia has refused to impose sanctions against Russia 
and  parts  of  Serbian  media  have  been  engaged  in  a  strong  pro-Russian  disinformation 
campaign. High level  representatives of Serbia  made statements  going  against EU positions 
on Russian aggression. At the outset of the Russian invasion, Air Serbia doubled the number 
of flights  to  Russia;  they  were  subsequently reduced to  the pre-aggression frequency.  Close 
relations and frequent high-level contacts with Russia, including regular bilateral visits, were 
maintained.  In  November  2021,  the  Serbian  President  met  with  his  Russian  counterpart  in 
Sochi  and  discussed  the  energy  supplies  and  the  gas  arrangement,  whereby  Serbia  was 
granted a highly preferential price. The Serbian PM and the Minister without portfolio visited 
Moscow  in  November  2021.  In  October  2021,  the  Russian  Minister  of  Foreign  Affairs  was 
invited to Belgrade to join for the first time a non-aligned movement meeting as an observer 
and the Russian Deputy PM also visited Belgrade. In February and in April 2022, the chair of 
the Foreign Affairs Committee of the Russian Duma visited Belgrade. Serbia’s  Minister of 
Interior  visited  Moscow  in  December  2021  and  August  2022.    Russian  Minister  of  Foreign 
Affairs  Lavrov’s  June  2022  Belgrade  visit  was  cancelled  due  to  the  lack  of  overflight 
authorisation  from  several  other  European  countries.  At  the  margin  of  the  September  2022, 
UNGA  Serbia’s  President  met  with  the  Russia’s  Minister  of  Foreign  Affairs  and  Serbia’s 
Foreign Minister signed a plan of consultations for 2023-2024 with his Russian counterpart. 
This  came  two  days  after  Russian  President  Putin  announced  to  hold  sham  referenda  in 
Ukrainian territories to eventually illegally annex them, a partial mobilisation and threatened 
with the use of nuclear weapons.  

Serbia also maintained close contacts and cooperation with other countries, such as China, the 
US and Türkiye. The Serbian President was received by his Chinese counterpart in Beijing in 
February  2022.  In  April  2022,  a  Chinese  anti-aircraft  missile  system  was  delivered  to 
Belgrade.Several  high-level  US  visits  from  the  United  States  to  Belgrade  took  place.  With 
Türkiye, bilateral contacts at Head of State level in Istanbul September 2021 and in Ankara in 
January 2022 took place. Turkish Minister of Foreign Affairs visited Serbia in June 2022 and 
the  President  in  September  2022.  Serbia  has  also  intensified  contacts  with  the  Non-Aligned 
Movement and hosted a ministerial meeting in Belgrade in November 2021.Serbia continued 
supporting  EU  measures  and  documents  on  conflict  prevention.  Serbia  is  implementing  its 
2021-2024  strategy  and  respective  action  plan  for  Small  Srms  and  Light  Weapons  control 
(SALW), with positive results and the authorities engaged in regional meetings on SALW. A 
dedicated  working  group  to  monitor  the  implementation  was  formally  created  in  November 
2021 and the Coordination Council received additional equipment.  

Serbia  joined  almost  all  key  non-proliferation,  disarmament  and  arms  control  treaties 
promoted by the EU. Serbia should consider ratifying Protocol V on Explosive Remnants of 
War  of  the  Convention  on  Certain  Conventional  Weapons  (CCW).  Serbia  has  a  transparent 
reporting  system  on  its  strategic  exports  controls.  Serbia  is  a  very  active  State  Party  to  the 
Chemical  Weapons  Convention.  However,  Serbia  has  not  in  recent  years  aligned  with  EU 
statements  agreed  in  The  Hague  for  the  Organisation  for  the  Prohibition  of  Chemical 
Weapons  (OPCW)  Conference  of  States  Parties  and  Executive  Council  meetings.  In  July 
2021, the Serbian government adopted the Strategy for fight against proliferation of Weapons 
of Mass Destruction, and in December 2021, the National Coordinating Body for fight against 
proliferation of Weapons of Mass Destruction was established.   

In Geneva, in  the context  of the Conference on Disarmament, Serbia tends to  align with  all 
EU statements. At the UN in New York, however, Serbia occasionally does not align with EU 

136 

 
 
statements  and  sometimes  supports  positions  at  the  UN  General  Assembly  First  Committee 
that are opposed by the EU.  

Serbia continued to engage actively with international organisations.  

On security measures, Serbia continued implementing its agreement with the EU on security 
procedures for exchanging and protecting classified information. 

Serbia continued to actively participate in EU crisis management missions and operations 
under the common security and defence policy (CSDP), notably the EU training missions 
in Somalia and Central African Republic, and EU NAVFOR Atalanta. Serbia is planning to 
contribute  to  civilian  CSDP  missions  but  it  needs  to  complete  the  legal  and  administrative 
framework  for  the  participation  of  civilians,  inter  alia,  by  adopting  a  relevant  law.  Serbia 
continued to participate in the roster of the EU Battle Groups.  

On hybrid threats, the EU offered the hybrid risk survey for Serbia in 2018 as a mechanism 
that could strengthen Serbia’s resilience and response capacity to hybrid challenges. Since the 
offer,  no  interaction  has  taken  place  with  Serbia  on  this  matter.  Russia  has  sought  to 
instrumentalise its relationship with Serbia and deployed hybrid tactics including in the form 
of  disinformation  campaigns  aimed  at  discrediting  the  European  Union.  Opinion  polls  in 
Serbia  suggest  that  it  is  vulnerable  to  such  campaigns,  which  should  in  future  be  actively 
countered by the authorities. 

137 

 
 
 
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND SERBIA  

Within the framework of the accession negotiations, twenty-two chapters have been opened, 
two  of  which  have  been  provisionally  closed  (chapters  25  and  26).  In  accordance  with  the 
revised enlargement methodology which Serbia accepted, negotiation chapters are grouped in 
six  thematic  clusters  and  negotiations  should  be  opened  for  each  cluster  as  a  whole  –  after 
fulfilling opening benchmarks – rather than on individual chapters. All chapters of cluster 1 
(fundamentals) are already opened. Cluster 4 (green agenda and sustainable connectivity) was 
opened at an intergovernmental conference in December 2021. Cluster 3 (competitiveness and 
inclusive growth) is the most advanced cluster to be opened next. Serbia tabled its negotiating 
positions on chapters 2, 3, 10,  and 28.  

Serbia  is  participating  in  the  Stabilisation  and  Association  Process.  Serbia  continued  to 
build  a  track  record  in  implementing  the  obligations  of  the  Stabilisation  and  Association 
Agreement  (SAA).  Serbian  legislation  remains  noncompliant  with  the  SAA  in  a  number  of 
areas, including on restrictions on the acquisition of real estate and on discriminatory issuance 
of  payment  cards  by  banks.  Furthermore,  as  of  March  2022,  Serbia  introduced  export 
restrictions on a number of products without presenting sufficient justifications, nor following 
the  procedures  set  out  in  the  SAA.  As  regards  public  procurement,  inter-governmental 
agreements  concluded  with  third  countries  and  their  implementation  do  not  follow  the  EU 
principles  of  equal  treatment,  transparency,  non-discrimination  and  competition  for  the 
majority  of  the  value  of  public  procurement  contracts.  As  a  result,  EU  companies  are 
prevented from participating in large-scale infrastructure projects implemented in the country.  

Regular  political  and  economic  dialogue  between  the  EU  and  Serbia  continued.  Sub-
committee  meetings  were  held,  together  with  a  meeting  of  a  special  group  on  public 
administration  reform.  The  Stabilisation  and  Association  Parliamentary  Committee  met  in 
July  2022.  Serbia  also  participates  in  the  ministerial  dialogue  between  the  economic  and 
finance  ministers  of  the  EU  and  the  candidate  countries,  where  joint  recommendations  are 
adopted. The most recent meeting was held in May 2022.  

In 2021, Serbia’s alignment rate with EU Common Foreign and Security Policy positions was 
64%.  Serbia  continued  to  participate  actively  in  EU  crisis  management  missions  and 
operations under the Common Security and Defence Policy.  

Visa-free travel for citizens of Serbia travelling to the Schengen area has been in force since 
December 2009. A readmission agreement between the European Union and Serbia has been 
in  force  since  2008.  The  Commission’s  July  2021  fourth  report  under  the  visa  suspension 
mechanism concluded that Serbia continues to meet the visa liberalisation requirements.  

Under  the  Instrument  for  Pre-accession  Assistance  2021  –  2027  (IPA  III)  a  first  financing 
decision  of  EUR  122.14  million  was  adopted  at  the  end  of  2021,  providing  support  in 
connectivity and energy efficiency, strengthening private sector development, trade, research 
and  innovation,  as  well  as  improving  the  healthcare  system.  This  first  set  of  programmes, 
complemented  by  a  significant  package  of  multi-country  programmes  and  the  rural 
development  programme  IPARD  III,  provide  a  significant  contribution  to  kick-start  the 
implementation of the Economic and Investment Plan for the Western Balkans and the Green 
Agenda.  Serbia  participates  also  in  cross-border  cooperation  programmes,  transnational 
cooperation programmes and Union programmes. 

The new activities will add to the on-going programmes under IPA II (2014-2020), which are 
still providing significant support for the social and economic development of the country and 
contribute  to  key  reforms  in  the  Rule  of  Law,  Public  Administration  Reform  and  other 

138 

 
 
 
sectors. Three important budget support operations on Public Administration Reform (PAR), 
Integrated Border Management (IBM) and Education were finalised. 

Serbia  continues  to  benefit  from  support  under  the  IPA  multi-country  and  regional 
programmes. These programmes have been also, in part, repurposed to address the response 
to  the  COVID-19  crisis.  Additionally,  Serbia  participates  in  three  cross-border  cooperation 
programmes  with  neighbouring  Western  Balkan  countries  and  in  transnational  cooperation 
programmes  with  Member  States  under  the  European  Regional  Development  Fund  and  the 
IPA Adriatic cross-border programme. 

Serbia  benefitted  under  IPA  II  from  participation  in  the  following  Union programmes,  with 
IPA  support:  Horizon  2020;  COSME;  Erasmus+  and  Creative  Europe;  Europe  for  Citizens; 
Employment and Social Innovation.  

The  Commission  set  aside  EUR  70  million  in  grants  from  IPA  II  for  the  Western  Balkan 
partners to reimburse the Member States for the resale of doses they obtained under the EU 
Advance Purchase Agreements with COVID-19 vaccine producers, of which Serbia received 
EUR 27.3 million. A total of 285 900 COVID-19 vaccines were provided to Serbia through 
resales  and  donations  of  EU  Member  States.  More  bilateral  purchases  of  EMA  authorised 
COVID-19  vaccines  are  in  the  pipeline  via  the  EU  grant.  Serbia  also  received  747  280 
COVID-19 vaccines via the COVAX initiative, which is significantly supported by the EU.   

139 

 
 
STATISTICAL DATA (as of 01.09.2022) 

Serbia 

Basic data 

Population (thousand) 

Total area of the country (km²) 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

7 335 s 

7 076 s 

7 040 s 

7 001 s 

6 964 s 

6 927 s 

77 453 sw 

77 591 sw 

77 594 sw 

77 594 sw 

77 594 sw 

77 594 sw 

1) 2) 
3)  

National accounts 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

Gross domestic product (GDP) (million national currency) 

3 052 136 

4 528 192 

4 760 686 

5 072 932 

5 421 851 

5 502 216 

Gross domestic product (GDP) (million euro) 

32 486 

36 779 

39 235 

42 892 

46 005 

46 796 

GDP (euro per capita) 

GDP per capita (in purchasing power standards (PPS)) 

GDP per capita (in PPS), relative to the EU average (EU-27 = 100) 

Real GDP growth rate: change on previous year of GDP volume (%) 

Employment growth (national accounts data), relative to the previous year (%) 

Labour productivity growth: growth in GDP (in volume) per person employed, relative to the 
previous year (%) 

Unit labour cost growth, relative to the previous year (%) 

**3 year change (T/T-3) in the nominal unit labour cost growth index (2015 = 100) 

Labour productivity per person employed: GDP (in PPS) per person employed relative to EU 
average (EU-27 = 100) 

Gross value added by main sectors 

Agriculture, forestry and fisheries (%) 

Industry (%) 

Construction (%) 

Services (%) 

Final consumption expenditure, as a share of GDP (%) 

Gross fixed capital formation, as a share of GDP (%) 

Changes in inventories, as a share of GDP (%) 

4 440 

9 464 

39.3 

-  2.7 

 c 

 c 

 c 

 c 

 c 

8.6 

25.4 

4.3 

5 210 

5 590 

6 140 

6 620 

6 780 

11 011 

11 407 

12 016 

12 805 

12 758 

39.1 

3.3 

 c 

 c 

 c 

 c 

 c 

8.2 

26.4 

4.7 

38.9 

2.1 

 c 

 c 

 c 

 c 

 c 

7.2 

26.5 

5.0 

39.7 

4.5 

 c 

 c 

 c 

 c 

 c 

7.7 

25.4 

5.4 

40.9 

4.3 

 c 

 c 

 c 

 c 

 c 

7.2 

24.0 

6.9 

42.6 

-  0.9 

 c 

 c 

 c 

 c 

 c 

7.6 

23.4 

6.5 

61.7 s 

60.6 s 

61.4 s 

61.6 s 

61.9 s 

62.4 s 

94.7 

18.7 

0.0 

86.7 

17.1 

1.0 

87.0 

17.7 

1.8 

86.0 

20.0 

2.6 

84.8 

22.5 

2.6 

84.1 

21.4 

2.7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exports of goods and services, relative to GDP (%) 

Imports of goods and services, relative to GDP (%) 

Gross fixed capital formation by the general government sector, as a percentage of GDP (%) 

Business 

Industrial production volume index (2015 = 100) 

26.3 

39.7 

: 

2009 

93.9 

48.5 

53.3 

: 

2016 

105.0 

50.5 

57.1 

: 

2017 

109.4 

50.4 

59.1 

: 

2018 

110.7 

51.0 

60.9 

: 

2019 

111.3 

Note 

Number of active enterprises (number) 

4) 

82 355 w 

90 905 p 

85 546 p 

87 407 

88 224 

48.2 

56.5 

: 

2020 

111.0 

: 

Birth rate: number of enterprise births in the reference period (t) divided by the number of 
enterprises active in t (%) 

Death rate: number of enterprise deaths in the reference period (t) divided by the number of 
enterprises active in t (%) 

People employed in SMEs as a share of all persons employed (within the non-financial 
business economy) (%) 

11.6 w 

8.3 w 

: 

: 

11.5 p 

10.0 

10.1 

8.5 w 

6.3 p 

6.1 

11.3 p 

6.9 w 

4) 5) 

59.5 sw 

59.5 sw 

59.3 sw 

59.0 sw 

58.5 sw 

Value added by SMEs (in the non-financial business economy) (EUR million) 

6 010 sw 

7 257 sw 

8 136 sw 

9 165 sw 

10 540 sw 

Total value added (in the non-financial business economy) (EUR million) 

4) 

12 363 w 

14 998 p 

16 442 p 

18 047 

20 093 

Inflation rate and house prices 

Consumer price index (CPI), change relative to the previous year (%) 

**Annual change in the deflated house price index (2015 = 100) 

Note 

2009 

8.2 d 

: 

2016 

1.3 d 

: 

2017 

3.3 d 

: 

2018 

2.0 d 

: 

2019 

1.9 d 

: 

: 

: 

: 

2020 

1.8 d 

: 

Balance of payments 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

Balance of payments: current account total (million euro) 

Balance of payments current account: trade balance (million euro) 

Balance of payments current account: net services (million euro) 

Balance of payments current account: net balance for primary income (million euro) 

Balance of payments current account: net balance for secondary income (million euro) 

Net balance for primary and secondary income: of which government transfers (million euro) 

**3 year backward moving average of the current account balance relative to GDP (%) 

**Five year change in share of world exports of goods and services (%) 

: 

: 

: 

: 

: 

: 

: 

: 

- 1 317.0 

- 2 049.0 

- 2 092.0 

- 3 273.0 

- 2 034.0 

- 3 423.0 

- 3 997.0 

- 5 244.0 

- 5 680.0 

- 5 200.0 

896.0 

966.0 

1 093.0 

1 012.0 

1 101.0 

- 1 951.0 

- 2 532.0 

- 2 067.0 

- 2 478.0 

- 1 529.0 

3 161.0 

3 514.0 

4 126.0 

3 873.0 

3 594.0 

82.0 

-  4.4 

33.4 

140.0 

-  4.4 

46.4 

251.0 

-  4.6 

26.4 

276.0 

-  5.7 

31.2 

252.0 

-  5.4 

38.4 

Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 

2 067.8 w 

1 899.2 w 

2 418.1 w 

3 156.5 w 

3 551.1 w 

2 938.5 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign direct investment (FDI) abroad (million euro) 

32.0 w 

227.8 w 

130.0 w 

307.9 w 

264.2 w 

100.4 w 

of which FDI of the reporting economy in the EU-27 countries (million euro) 

: 

63.2 w 

67.2 w 

95.5 w 

124.0 

23.6 w 

Foreign direct investment (FDI) in the reporting economy (million euro) 

2 099.8 w 

2 126.9 w 

2 548.1 w 

3 464.5 w 

3 815.3 w 

3 038.9 w 

of which FDI of the EU-27 countries in the reporting economy (million euro) 

**Net international investment position, relative to GDP (%) 

Year on year rate of change in gross inflow of remittances (in national currency) from migrant 
workers (%) 

: 

: 

: 

1 370.8 w 

1 701.7 w 

1 932.9 w 

2 310.0 

1 956.0 w 

94.3 w 

: 

90.7 w 

7.5 sw 

87.6 w 

88.0 w 

90.3 w 

: 

: 

: 

Public finance 

Note 

2009 

2016 

General government deficit / surplus, relative to GDP (%) 

General government gross debt relative to GDP (%) 

Total government revenues, as a percentage of GDP (%) 

Total government expenditure, as a percentage of GDP (%) 

-  4.2 w 

-  1.2 w 

32.1 w 

39.3 w 

43.5 w 

68.8 w 

40.8 w 

41.9 w 

2017 

1.1 w 

58.7 w 

41.5 w 

40.4 w 

2018 

2019 

2020 

0.6 ew 

-  0.2 ew 

-  8.0 w 

54.4 ew 

52.9 ew 

41.5 ew 

40.9 ew 

42.1 w 

42.3 w 

57.7 w 

40.9 w 

48.9 w 

Financial indicators 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

Gross external debt of the whole economy, relative to GDP (%) 

Gross external debt of the whole economy, relative to total exports (%) 

Money supply: M1 (banknotes, coins, overnight deposits, million euro) 

Money supply: M2 (M1 plus deposits with maturity up to two years, million euro) 

Money supply: M3 (M2 plus marketable instruments, million euro) 

6) 

7) 

8) 

9) 

68.6 sw 

72.0 sw 

65.1 sw 

62.2 sw 

61.4 sw 

65.8 sw 

276.9 w 

152.4 w 

132.2 w 

126.0 w 

121.0 w 

138.2 w 

2 695.1 w 

4 923.0 w 

5 652.6 w 

6 703.6 w 

7 684.2 w 

10 376.6 w 

4 554.9 w 

6 546.5 w 

7 360.4 w 

8 611.4 w 

10 090.7 w 

13 214.8 w 

12 572.6 w 

17 793.9 w 

19 206.3 w 

22 047.1 w 

24 011.2 w 

28 361.5 w 

Total credit by monetary financial institutions to residents (consolidated) (million euro) 

14 863.1 w 

21 632.4 w 

22 806.4 w 

24 605.8 w 

26 743.3 w 

30 621.0 w 

**Annual change in financial sector liabilities (%) 

**Private credit flow, consolidated, relative to GDP (%) 

**Private debt, consolidated, relative to GDP (%) 

Interest rates: day-to-day money rate, per annum (%) 

Lending interest rate (one year), per annum (%) 

Deposit interest rate (one year), per annum (%) 

Euro exchange rates: average of period (1 euro = … national currency) 

: 

: 

: 

9.45 w 

12.00 w 

7.00 w 

93.952 

4.9 pw 

3.4 pw 

12.6 pw 

11.2 pw 

11.9 pw 

: 

: 

3.04 w 

5.50 w 

2.50 w 

: 

: 

2.27 w 

5.00 w 

2.00 w 

: 

: 

2.43 w 

4.25 w 

1.75 w 

: 

: 

1.06 w 

3.50 w 

1.00 w 

: 

: 

0.08 w 

1.90 w 

0.10 w 

123.118 

121.337 

118.272 

117.852 

117.578 

Trade-weighted effective exchange rate index, 42 countries (2015 = 100) 

: 

: 

: 

: 

: 

: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
**3 year change (T/T-3) in the trade-weighted effective exchange rate index, 42 countries 
(2015 = 100) 

: 

: 

: 

: 

: 

: 

Value of reserve assets (including gold) (million euro) 

10 601.9 w 

10 204.6 w 

9 961.7 w 

11 261.8 w 

13 378.5 w 

13 491.7 w 

External trade in goods 

Note 

2009 

Value of imports: all goods, all partners (million euro) 

Value of exports: all goods, all partners (million euro) 

Trade balance: all goods, all partners (million euro) 

11 146 

5 629 

- 5 517 

2016 

15 225 

12 742 

- 2 483 

2017 

17 559 

14 365 

- 3 194 

2018 

20 074 

15 650 

- 4 424 

2019 

22 216 

16 859 

- 5 356 

2020 

21 362 

16 381 

- 4 981 

Terms of trade (export price index / import price index * 100) (number) 

93.5 sw 

103.2 sw 

100.1 sw 

98.1 sw 

98.9 sw 

103.4 sw 

Share of exports to EU-27 countries in value of total exports (%) 

Share of imports from EU-27 countries in value of total imports (%) 

56.9 s 

56.2 s 

65.7 s 

57.4 s 

65.7 s 

57.5 s 

67.0 s 

55.9 s 

66.3 s 

54.7 s 

66.2 s 

55.7 s 

Demography 

Note 

Crude rate of natural change of population (natural growth rate): number of births minus 
deaths (per thousand inhabitants) 

Infant mortality rate deaths of children under one year of age (per thousand live births) 

Life expectancy at birth: male (years) 

Life expectancy at birth: female (years) 

2009 

-  4.6 

7.0 

71.4 

76.7 

Labour market 

Note 

2009 

Economic activity rate for persons aged 20–64: proportion of the population aged 20–64 that 
is economically active (%) 

*Employment rate for persons aged 20–64: proportion of the population aged 20–64 that are 
in employment (%) 

Male employment rate for persons aged 20–64 (%) 

Female employment rate for persons aged 20–64 (%) 

Employment rate for persons aged 55–64: proportion of the population aged 55–64 that are 
in employment (%) 

Employment by main sectors 

Agriculture, forestry and fisheries (%) 

Industry (%) 

: 

: 

: 

: 

: 

: 

: 

2016 

-  5.1 

5.4 

73.2 

78.3 

2016 

70.0 

59.1 

66.3 

51.9 

42.7 

2017 

-  5.5 

4.7 

73.1 

78.1 

2017 

71.2 

61.4 

68.5 

54.5 

45.5 

2018 

-  5.4 

4.9 

73.5 

78.4 

2018 

72.5 

63.1 

70.5 

55.8 

46.5 

2019 

-  5.3 

4.8 

73.4 

78.6 

2019 

72.9 

65.2 

72.1 

58.2 

50.2 

2020 

-  8.0 

5.0 

71.6 

77.5 

2020 

72.5 

65.9 

72.9 

58.9 

52.2 

18.6 s 

20.2 s 

17.2 s 

21.2 s 

15.9 s 

22.5 s 

15.6 s 

22.6 s 

14.6 s 

22.6 s 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction (%) 

Services (%) 

People employed in the public sector as a share of total employment, persons aged 20–64 
(%) 

People employed in the private sector as a share of total employment, persons aged 20–64 
(%) 

Unemployment rate: proportion of the labour force that is unemployed (%) 

Male unemployment rate (%) 

Female unemployment rate (%) 

Youth unemployment rate: proportion of the labour force aged 15–24 that is unemployed (%) 

Long-term unemployment rate: proportion of the labour force that has been unemployed for 
12 months or more (%) 

Unemployment rate for persons (aged 25–64) having completed at most lower secondary 
education (ISCED levels 0-2) (%) 

Unemployment rate for persons (aged 25–64) having completed tertiary education (ISCED 
levels 5-8) (%) 

: 

: 

31.3 w 

4.3 s 

57.0 s 

28.3 w 

4.1 s 

57.5 s 

27.8 w 

4.4 s 

57.2 s 

27.3 w 

4.8 s 

56.9 s 

26.6 w 

5.4 s 

57.5 s 

26.4 w 

68.7 w 

71.7 w 

72.2 w 

72.7 w 

73.4 w 

73.6 w 

: 

: 

: 

: 

: 

: 

: 

15.4 

14.8 

16.2 

34.9 

9.5 

13.7 

13.4 

13.6 

13.0 

14.4 

31.9 

7.4 

12.3 

11.8 

12.8 

12.1 

13.8 

29.7 

6.7 

13.4 

10.6 

10.5 

10.0 

11.2 

27.5 

5.5 

11.4 

8.1 

9.1 

8.8 

9.5 

26.6 

4.5 

9.6 

7.6 

Social cohesion 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

Average nominal monthly wages and salaries (national currency) 

Index of real wages and salaries (index of nominal wages and salaries divided by the 
inflation index) (2016 = 100) 

10) 
11) 

44 147 bw 

63 474 w 

65 976 w 

68 629 bw 

75 814 w 

82 984 w 

102 w 

100 w 

101 w 

105 w 

114 w 

123 w 

GINI coefficient 

Poverty gap 

*Early leavers from education and training: proportion of the population aged 18–24 with at 
most lower secondary education who are not in further education or training (%) 

: 

: 

: 

40 

39.4 

7.0 

38 

38.8 

6.2 

36 

37.4 

6.8 

33 

32.1 

6.6 

Standard of living 

Note 

2009 

2016 

2017 

2018 

2019 

Number of passenger cars relative to population size (number per thousand population) 

12) 

223.8 sw 

267.7 sw 

279.6 sw 

285.7 sw 

299.2 sw 

33 

27.1 

5.6 

2020 

315.0 

Number of mobile phone subscriptions relative to population size (number per thousand 
population) 

1 351.3 w 

1 291.8 w 

1 231.4 w 

1 207.5 w 

1 217.2 w 

1 192.6 w 

Mobile broadband penetration (per 100 inhabitants) 

Fixed broadband penetration (per 100 inhabitants) 

: 

: 

: 

: 

: 

35 w 

: 

30 w 

: 

28 w 

: 

34 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Infrastructure 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

Density of railway network (lines in operation per thousand km²) 

13) 

49.3 sw 

48.5 sw 

48.5 sw 

48.5 sw 

48.5 sw 

43.2 sw 

Length of motorways (kilometres) 

495 w 

741 

963 

782 w 

928 w 

928 

Innovation and research 

Note 

2009 

Public expenditure on education relative to GDP (%) 

*Gross domestic expenditure on R&D relative to GDP (%) 

Government budget appropriations or outlays on R&D (GBAORD), as a percentage of GDP 
(%) 

Percentage of households who have internet access at home (%) 

4.5 sw 

0.82 

: 

37.0 

Environment 

Note 

2009 

*Index of greenhouse gas emissions,  CO2 equivalent (1990 = 100) 

Energy intensity of the economy (kg of oil equivalent per 1 000 euro GDP at 2015 constant 
prices) 

Electricity generated from renewable sources relative to gross electricity consumption (%) 

Road share of inland freight transport (based on tonne-km) (%) 

79.1 w 

448.4 

28.3 

: 

2016 

3.6 sw 

0.84 

0.36 

: 

2016 

77.5 w 

418.4 

2017 

3.6 d 

0.87 

0.38 

68.0 

2017 

78.5 w 

418.0 

2018 

3.6 sw 

0.92 

0.37 

73.0 

2018 

76.5 w 

394.5 

2019 

3.6 sw 

0.89 

0.40 

80.0 

2019 

75.1 w 

375.5 

2020 

3.5 sw 

0.91 

0.46 

81.0 

2020 

: 

391.2 

29.2 

27.4 

28.7 

30.1 

30.7 

48.7 w 

51.5 w 

55.5 w 

68.0 w 

64.9 w 

Energy 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

Primary production of all energy products (thousand TOE) 

10 196 

10 695 

10 496 

10 025 

10 219 

10 969 

Primary production of crude oil (thousand TOE) 

Primary production of solid fuels (thousand TOE) 

Primary production of gas (thousand TOE) 

Net imports of all energy products (thousand TOE) 

Gross inland energy consumption (thousand TOE) 

Gross electricity generation (GWh) 

695 

7 331 

209 

1 028 

7 201 

417 

988 

7 216 

389 

976 

6 609 

358 

941 

6 826 

349 

921 

7 205 

325 

4 913 s 

4 593 s 

5 330 s 

5 385 s 

5 497 s 

4 753 s 

15 230 

38 322 

15 432 

39 342 

15 748 

37 045 

15 528 

37 426 

15 420 

37 600 

15 914 

37 956 

Agriculture 

Note 

2009 

2016 

2017 

2018 

2019 

2020 

Agricultural production volume index of goods and services (at producer prices) (2010 = 100) 

99.1 w 

112.3 w 

98.9 w 

113.3 w 

116.8 w 

121.2 w 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Utilised agricultural area (thousand hectares) 

3 539.1 

3 460.1 

3 438.1 

3 486.9 

3 481.6 

3 506.5 

Livestock numbers: live bovine animals (thousand heads, end of period) 

1 002.0 

893.0 

899.0 

878.0 

898.0 

886.0 

Livestock numbers: live swine (thousand heads, end of period) 

3 631.0 

3 021.0 

2 911.0 

2 782.0 

2 903.0 

2 983.0 

Livestock numbers: live sheep and live goats (thousand heads, end of period) 

Raw milk available on farms (thousand tonnes) 

: 

: 

1 865.0 s 

1 887.0 s 

1 908.0 s 

1 833.0 s 

1 887.0 s 

1 603.7 

1 599.3 

1 590.0 

1 597.0 

1 583.7 

Harvested crop production: cereals (including rice) (thousand tonnes) 

9 469.0 

10 868.0 

6 793.3 

10 529.1 

10 436.4 

11 447.6 

Harvested crop production: sugar beet (thousand tonnes) 

2 977.8 

2 683.9 

2 513.5 

2 325.3 

2 305.3 

2 018.2 

Harvested crop production: vegetables (thousand tonnes) 

1 080.1 

1 133.1 

1 086.6 

829.8 

738.5 

720.1 

Source: Eurostat and the statistical authorities in Serbia 

: = not available 

  b = break in series 

c =  confidential value 

  d =  definition differs 

  e = estimated value 

  p = provisional 

s = Eurostat estimate 

  w= data supplied by and under the responsibility of the national statistical authority and published on an "as is" basis and without any assurance as regards 

their quality and adherence to EU statistical methodology 

* = Europe 2020 indicator 

** = Macroeconomic Imbalance Procedure (MIP) indicator 

  Footnotes: 

1) 

 The cadastral surveys and the development of the digital cadastral map are still in progress. 

2)  Data for 31 December of the year 

3)  The data was taken from the Republic Geodetic Authority. 

4)  Unincorporated enterprises are not included. 

5)  Unincorporated enterprises are not included. 

From the reference 2019 NACE S95 activity is included. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6)  Official external debt of the Republic of Serbia. 

7)  The money supply M1 consists of currency in circulation and funds in giro, current and other accounts belonging to the owners of money balances in banks' 

liabilities, including money balances in the accounts of local government bodies, i.e. accounts from which payments can be made without any restrictions. 

8)  The money supply M2, in addition to M1, includes other dinar deposits, both short-and long-term. 

9)  The money supply M3, in addition to M2, includes short-and long term foreign currency deposits (without the so-called frozen foreign currency savings). 

10)  Wages and salaries paid to employees of legal entities and of unincorporated enterprises. 

11)  Wages and salaries are obtained from administrative sources (tax administration records). Average earnings are calculated on the basis of the total amount 

of accrued earnings for the reporting month and the number of full-time equivalent (FTE) employees. 

12)  Ministry of Interior excluded vehicles that were not registered before the given deadline (1 month). 
 The cadastral surveys and the development of the digital cadastral map are still in progress. 

13) 

Data for 31 December of the year, exception for 2021 where the data are for 1.1.2021 

The data was taken from the Republic Geodetic Authority.