COMMISSION STAFF WORKING DOCUMENT Serbia 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy
Date: 2024-10-30
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: Serbia, accession criteria, accession negotiations, pre-accession strategy, regional cooperation

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 30.10.2024  SWD(2024) 695 final  COMMISSION STAFF WORKING DOCUMENT Serbia 2024 Report Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF REGIONS 2024 Communication on EU enlargement policy                   {COM(2024) 690 final} - {SWD(2024) 690 final} - {SWD(2024) 691 final} - {SWD(2024) 692 final} - {SWD(2024) 693 final} - {SWD(2024) 694 final} - {SWD(2024) 696 final} - {SWD(2024) 697 final} - {SWD(2024) 698 final} - {SWD(2024) 699 final}  
 
 
Contents 

1. INTRODUCTION .......................................................................................................................................3 

1.1 Context .............................................................................................................................................3 
1.2. Main findings of the reports ............................................................................................................4 
1.3. State of play of the accession negotiations .................................................................................... 20 

2. 

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS...................................... 22 

2.1. 

2.2.1 
2.2.2 

Functioning of democratic institutions and public administration reform................................ 22 
2.1.1 Democracy ...................................................................................................................... 22 
2.1.2. Public administration reform .......................................................................................... 25 
2.2. Rule of law and fundamental rights .............................................................................................. 28 
Chapter 23: Judiciary and fundamental rights ......................................................... 28 
Chapter 24: Justice, freedom and security ............................................................... 44 
2.3. Economic criteria .......................................................................................................................... 52 
2.3.1. The existence of a functioning market economy ............................................................ 52 
2.3.2. The capacity to cope with competitive pressure and market forces within the EU ........ 57 
2.4. Public procurement, statistics and financial control ...................................................................... 59 
Chapter 5: Public procurement ................................................................................................. 59 
Chapter 18: Statistics ................................................................................................................ 60 
Chapter 32: Financial control ................................................................................................... 61 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION ....................................... 63 

4. NORMALISATION OF RELATIONS BETWEEN SERBIA AND KOSOVO ....................................... 65 

5. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP....................................................... 67 

Cluster 2: Internal Market .................................................................................................................... 67 
Chapter 1: Free movement of goods ........................................................................................ 68 
Chapter 2: Freedom of movement for workers ........................................................................ 69 
Chapter 3: Right of establishment and freedom to provide services ........................................ 69 
Chapter 4: Free movement of capital ....................................................................................... 70 
Chapter 6: Company law .......................................................................................................... 71 
Chapter 7: Intellectual property law ......................................................................................... 71 
Chapter 8: Competition policy ................................................................................................. 72 
Chapter 9: Financial services ................................................................................................... 73 
Chapter 28: Consumer and health protection ........................................................................... 74 
Cluster 3: Competitiveness and inclusive growth ................................................................................ 75 
Chapter 10: Digital transformation and media ......................................................................... 75 
Chapter 16: Taxation ................................................................................................................ 76 
Chapter 17: Economic and monetary policy ............................................................................ 77 
Chapter 19: Social policy and employment .............................................................................. 78 
Chapter 20: Enterprise and industrial policy ............................................................................ 80 
Chapter 25: Science and research ............................................................................................. 80 
Chapter 26: Education and culture ........................................................................................... 81 
Chapter 29: Customs union ...................................................................................................... 83 
Cluster 4: The Green agenda and sustainable connectivity .................................................................. 84 

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Chapter 14: Transport............................................................................................................... 84 
Chapter 15: Energy .................................................................................................................. 85 
Chapter 21: Trans-European networks ..................................................................................... 86 
Chapter 27: Environment and climate change .......................................................................... 87 
Cluster 5: Resources, agriculture and cohesion.................................................................................... 90 
Chapter 11: Agriculture and rural development ....................................................................... 90 
Chapter 12: Food safety, veterinary and phytosanitary policy ................................................. 91 
Chapter 13: Fisheries and aquaculture ..................................................................................... 91 
Chapter 22: Regional policy and coordination of structural instruments ................................. 92 
Chapter 33: Financial and budgetary provisions ...................................................................... 93 
Cluster 6: External relations ................................................................................................................. 94 
Chapter 30: External relations .................................................................................................. 94 
Chapter 31: Foreign, security and defence policy .................................................................... 95 
Annex I – Relations between the EU and Serbia ................................................................................. 98 
Annex II – Statistical data .................................................................................................................. 100 

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1. INTRODUCTION1 

1.1 CONTEXT 

Since  the  opening  of  Serbia’s accession  negotiations in  January  2014, 22  out of  35  chapters  have  been 
opened. All chapters in cluster 1 on the fundamentals and all chapters in cluster 4 on the Green agenda 
and  sustainable  connectivity  have  been  opened.  Two  chapters  have  provisionally  been  closed.  In  June 
2021,  Serbia  accepted  the  revised  enlargement  methodology.  The  overall  pace  of  negotiations  will 
continue to depend on the rule of law reforms and the normalisation of Serbia’s relations with Kosovo*. 
The  Commission’s  recommendations  from  previous  years,  that  Serbia  has  fulfilled  the  opening 
benchmarks for cluster 3 (competitiveness and inclusive growth) and that this cluster is technically ready 
for opening, remain valid. 

The Serbian government has continued to declare EU membership its strategic goal. However, the early 
election and the corresponding break in the functioning of Government and Parliament has slowed down 
the  progress  of  reforms.  Strong  political  will,  effective  policy  planning  and  coordination,  along  with 
sufficient human and financial resources for EU accession across all institutions involved are needed, so 
that  Serbia  can  speed  up  the  work  towards  meeting  its  objectives  for  EU  accession  negotiations.  The 
Serbian authorities still need, as a matter of priority, to take much more responsibility for proactive and 
objective  communication  on  Serbia’s  EU  accession  process  and  the  EU,  which  is  by  far  Serbia’s  main 
political and economic partner, and for countering disinformation in its national media. 

Serbia has continued to broadly implement the Stabilisation and Association Agreement (SAA) between 
Serbia  and  the  EU.  Serbia  needs  to  continue  aligning  its  legislation  to  reach  full  compliance  with  the 
SAA. 

In  the  reporting  period,  the  EU-facilitated  Dialogue  on  normalisation  of  relations  between  Serbia  and 
Kosovo  continued.  Both  Parties  committed  to  fully  implement  all  of  their  respective  obligations 
stemming  from  the  Agreement  on  the  Path  to  Normalisation  and  its  Implementation  Annex  reached  in 
2023.  Constructive  engagement  in  the  normalisation  of  their  relations  is  also  a  requirement  under  the 
Reform and Growth Facility for the Western Balkans. The EU expects Serbia to fully cooperate and take 
all the necessary measures to apprehend and swiftly bring to justice the perpetrators of the 2023 attacks in 
the north of Kosovo.  

Following  Russia’s  war  of  aggression  against  Ukraine,  Serbia  aligned  with  some  EU  positions  in 
international forums (including in the UN General Assembly). Serbia has continued to cooperate with the 
EU on sanctions circumvention and providing financial and humanitarian support to Ukraine. However, it 
still  does  not  to  align  with  any restrictive  measures  against the  Russian  Federation  and has not  aligned 
with  most  of  the  High  Representative  statements  on  this  matter.  It  has  maintained  high-level  relations 
with  the  Russian  Federation  and  intensified  its  relations  with  China,  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 
measure. 

Serbia  has  actively  engaged  in  the  implementation  of  the  new  Growth  Plan  for  the  Western  Balkans 
across  the  four  pillars  on  (i)  the  gradual  integration  with  the  EU  single  market,  (ii)  regional  economic 
integration, (iii) fundamental reforms and (iv) increased financial support. Significant efforts have been 
made on gradual integration. On 3 October 2024, Serbia adopted its Reform Agenda envisaged under the 

* 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. 
1 The 2024 report is presented in a renewed format and structure. Main findings of the report, together with the recommendations 
(previously  grey  assessment  boxes)  are  brought  together  at  the  beginning  of  the  report.  Furthermore,  under  the  fundamentals 
cluster, for better readability and comparability across all reports, certain data is provided (also) in the form of graphs. 

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Reform  and  Growth  Facility2  (Growth  Plan  for  Western  Balkans).  The  Reform  Agenda  covers  reform 
milestones in (i) business environment and private sector development; (ii) green and digital transition; 
(iii)  human  capital;  (iv)  fundamental  rights  and  the  rule  of  law.  The  Commission’s  2024  rule  of  law 
report3 covered Serbia for the first time.  

1.2. MAIN FINDINGS OF THE REPORTS4 

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

Democracy 

The conduct of elections requires tangible improvement and further reform. It is vital that all outstanding 
and  recent  recommendations  by  the  OSCE/ODIHR  and  the  Council  of  Europe  bodies  are  fully 
implemented, in a transparent and inclusive process and well ahead of any new elections. 

Parliament’s ability to ensure the exercise of necessary checks and balances is constrained by issues of 
effectiveness, autonomy, and transparency, including in terms of the oversight of the executive and the 
law-making  process.  Parliament’s  new  composition  is  more  pluralistic  than  the  previous  legislature. 
Debates  continued  to  be  marked  by  tensions  between  the  ruling  coalition  and  the  opposition. 
Parliamentary  rules  of  procedure  need  to  be  revised,  and  the  Code  of  Conduct  to  penalise  offences  by 
parliamentarians should be applied. 

The institutions in charge of the EU integration process are in place and work efficiently. However, the 
legislative  recess  that  was  linked  to  the  calling  of  an  early  election  led  to  a  slow-down  of  the  reform 
process and posed a challenge to the functioning of administrative structures responsible for the accession 
negotiations. Serbia continues to  declare EU membership as its strategic goal. However, the authorities 
are  yet  to  ensure  a  more  proactive  and  objective  communication  about  the  EU  and  Serbia’s  accession 
process. 

The government was in a caretaker capacity between 1 November 2023 and 2 May 2024, when the new 
government  was  appointed.  The recommendations  by  independent  bodies need  to  be followed  up more 
closely.  Implementation  of  the  programme  to  reform  the  local  government  system  continued  to  make 
slow progress. 

Civil society organisations (CSOs) in Serbia operate in a difficult environment. Further efforts are needed 
to  ensure  systematic,  genuine  and  meaningful  cooperation  between  the  government  and  CSOs.  Verbal 
attacks  and  smear  campaigns  against  some  CSOs  continued,  including  by  high-level  officials.  The 
transparency of public funding to civil society needs to be significantly improved. 

Public administration reform 

Serbia is moderately prepared in the area of public administration reform and overall, no progress was 
made.  

2 OJ L, 2024/1449, 24.5.2024. 
3 COM(2024)800 final 
4 This report covers the period from 15 June 2023 to 1 September 2024. It is based on input from a variety of sources, including 
contributions  from  the  government  of  Serbia,  EU  Member  States,  European  Parliament  reports  and  information  from  various 
international and non-governmental organisations. It also includes the results of comparative assessments and indices produced 
by other stakeholders, in particular in the area of rule of law. 
The report uses the following assessment scale 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:  backsliding,  no  progress,  limited  progress,  some  progress,  good  progress  and  very  good  progress.  Where 
appropriate, interim steps have also been used. 

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The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  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; 

→  strengthen the mechanism for systematically integrating the opinion of the Public Policy Secretariat 

into draft laws and policy documents, in line with the Law on the planning system; 

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

management. 

Chapter 23: Judiciary and fundamental rights 

Serbia has reached some level of preparation and has made limited progress. 

Functioning of the judiciary 

Serbia is between having some level of preparation and a moderate level of preparation in the area of 
judiciary. Limited progress was made, notably in the adoption of by-laws to the laws implementing the 
constitutional  amendments.  Adoption  of  the  Law  on  Judicial  Academy  is  still  pending,  whilst  the 
Government has decided not to amend the Law on Seats and Territorial Jurisdiction of  Courts.  Several 
judges  and  prosecutors  were  elected  in  2023  and  2024  whereas  a  considerable  number  of  vacancies 
remain to be filled. The current system of recruitment, transfer and promotion of judges and prosecutors 
has not been comprehensively revised to ensure that careers are fully based on merit. Undue pressure on 
the judiciary remains a concern. Four vacant positions at the Constitutional Court still need to be filled. 
Serbia is yet to show a genuine commitment to investigating and adjudicating war crimes cases. 

The Commission’s recommendations from last year were partially implemented and remain valid. In the 
coming year, Serbia should in particular: 

→  adopt  the  Law  on  Judicial  Academy,  and  carry  out  the  necessary  appointments  of  judges  and 

prosecutors in line with the legal framework to reduce the number of vacancies; 

→  ensure  that the  High  Judicial  Council  and the  High Prosecutorial  Council,  the Government  and the 
Parliament  effectively  and  proactively  defend  judicial  independence  and  prosecutorial  autonomy  in 
cases of undue influence, including undue comments made publicly by members of Government or 
Parliament on ongoing investigations or court proceedings which breach their codes of conduct; 

→  operationalise the uniform and centralised case management systems; improve the efficiency of the 
justice  system,  in  particular  reduce  the  backlogs  and  disposition  times  for  the  Administrative  and 
Constitutional Courts and fully implement the human resources strategy. 

Fight against corruption 

Serbia is between having some level of preparation and a moderate level of preparation in the fight 
against  corruption.  Overall,  some  progress  has  been  made  during  the  reporting  period  on  last  year’s 
recommendations. Serbia adopted the new anti-corruption strategy (2024-2028) in July 2024. Serbia still 
needs to adopt and begin implementing the accompanying action plan.  On the recommendations  by the 
the 
Group  of  States  against  Corruption  (GRECO),  Serbia  reported, 
recommendations  of  the  fifth  evaluation  round.  GRECO  has  assessed  that  of  the  24  recommendations, 
one recommendation has been fully met, and 10 have been partially met. The number of final convictions 
for  high-level  corruption  cases,  of  new  investigations  as  well  as  the  number  of  new  indictments  has 
increased, yet obstacles remain for establishing a robust track record. Serbia joined the regional project on 
trial monitoring of organised crime and corruption cases.  Overall, corruption is prevalent in many areas 
and remains an issue of concern. There is a need for strong political will to effectively address corruption 

in  December  2023,  on 

5 

 
 
issues, as  well  as  a robust criminal  justice  response to  high-level  corruption.  Targeted risk  assessments 
and specific measures are also needed to address corruption in the most vulnerable sectors.  

The Commission’s recommendations from last year were partially implemented and remain valid. 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, in particular the seizure and confiscation of criminal assets; 

→  address all GRECO recommendations, in particular from the fifth evaluation round; 

→  adopt and implement the anti-corruption action plan accompanying the new anti-corruption strategy 
and establish an effective monitoring and coordination mechanism to track progress, while focusing 
on all relevant interim benchmarks and GRECO recommendations. 

Fundamental rights 

Serbia’s legislative and institutional framework for upholding fundamental rights is broadly in place. This 
framework  needs  to  be  consistently  and  efficiently  implemented.  Most  of  the  Commission’s 
recommendations from last  year  have  not  yet  been implemented  and  remain  valid.  In  the coming year, 
Serbia should in particular: 

→  strengthen  human  rights  institutions  by  allocating  the  necessary  financial  and  human  resources, 
ensuring  they  exercise  their  mandates  to  the  full,  and  by  putting  in  place  procedures  to  ensure 
compliance with measures, including interim measures of the European Court of Human Rights; 

→  adopt and allocate appropriate financial and human resources for the pending action plans on violence 
against women, deinstitutionalisation, anti-discrimination – including the rights of LGBTIQ persons – 
and violence against children, and ensure timely reporting on their implementation; actively counter 
hate crimes and establish a track record of investigations and convictions; 

→  demonstrate, through better data collection, real improvements in the effective exercise of the rights 
of individuals belonging to national minorities, including reference to the targets set by the Poznan 
Declaration on Roma5 inclusion and by the future action plan on national minorities. 

Freedom of expression 

Serbia has some level of preparation and has made no progress on the recommendations from last year, 
which therefore remain valid.  

In the coming year, Serbia should in particular: 

→  implement the new media laws, respecting their letter and spirit, including on the independence of the 
regulatory  body  for  electronic  media  (REM),  election  of  the  new  REM  Council  members  and 
amendment of the laws to address the remaining issues in aligning with European standards and the 
latest EU acquis; 

→  strengthen  the  protection  and  safety  of  journalists,  notably  by  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; 

→  ensure  transparent  and  equitable  co-funding  for  media  content  serving  the  public  interest,  and  full 

transparency in media ownership and advertising. 

5 In line with the terminology of European institutions, the umbrella term ‘Roma’ is used here to refer to a number of different 
groups, without denying the particular features of these groups. 

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Chapter 24: Justice, freedom and security 

Serbia  is  between  having  some  level  of  preparation  and  a  moderate  level  of  preparation  and  has 
made some progress. Serbia continued to significantly contribute to the management of mixed migration 
flows  towards  the  EU  by  playing  an  active  and  constructive  role  and  cooperating  effectively  with  its 
neighbours  and  EU  Member  States.  Part  of  last  year’s  recommendations  have  been  implemented.  The 
new Frontex Status Agreement was signed in June 2024. In March 2024, Serbia adopted the 2024-2027 
Programme  for  the  fight  against  human  trafficking  and  2024-2026  action  plan  and  appointed  a  new 
National Coordinator in September 2023. Serbia visa policy is not yet fully aligned with EU visa policy. 
Serbia  still  has  a  visa-free  regime  with  16  countries  that  are  on  the  EU  list  of  visa-required  countries. 
However, Serbia’s reform agenda committed the country to withdraw visa-free arrangements with at least 
three countries by December 2024. 

The Commission’s recommendations from last year were partially implemented and remain valid. In the 
coming year, Serbia should in particular: 

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

→  further align with the EU visa policy; take measures to systematically register and identify migrants, 
develop swift asylum procedures and increase capacities for managing effective return operations; 

→  implement the programme for fight against human trafficking, increase national coordination efforts 

and strengthen the protection of and support to victims. 

Fight against organised crime  

Serbia  has  some  level  of  preparation  and  has  made  limited  progress  in  addressing  last  year’s 
recommendations.  Authorities  continued  to  cooperate  actively  with  CEPOL,  Eurojust,  Europol  and 
INTERPOL,  notably  in  drugs  trafficking  and  the  fight  against  organised  crime  groups.  There  has  been 
insufficient follow-up in investigations and prosecutions for the 2023 attacks in the north of Kosovo. 

Most  of  last  year’s  recommendations  have  not  yet  been  implemented  and  remain  valid.  In  the  coming 
year, Serbia should in particular: 

→  increase  efficiency  in  prosecuting  serious  and  organised  crime  cases,  including  money  laundering 
cases and the seizure and confiscation of criminal assets by the systematic tracking of money flows, 
the effective use of financial investigations and special investigative measures, and the systemic use 
of extended confiscation; 

→  amend the Criminal Code to effectively criminalise the trafficking of weapons; adopt the new Law on 
weapons and ammunition; step up the fight against the storage, sale and ownership of illegal firearms; 

→  take specific steps to ensure a clear separation between mandates and regulations on the interception 
of communications for criminal investigation on the one hand, and for security purposes on the other. 

ECONOMIC CRITERIA 

The existence of a functioning market economy 

Serbia has a good level of preparation and has made some progress in developing a functioning market 
economy.  An  appropriately  tight  monetary  and  fiscal  policy  has  helped  disinflation,  while  economic 
growth is on a recovery path. The reform of the public sector wage system continued to advance slowly. 

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There are still  structural  challenges  in  State aid,  competition,  and public procurement; and  state-owned 
enterprises  (SOEs)  have  a  significant  presence  in  the  economy.  The  private  sector  is  hampered  by 
weaknesses in the rule  of law,  in  particular  in  tackling  corruption and  judicial inefficiency.  Last  year’s 
recommendations were implemented to some extent but are still mostly valid. In the coming year, Serbia 
should in particular: 

→  keep an appropriate tight policy stance to help disinflation, strictly comply with the new fiscal rules 

and strengthen medium-term budgeting; 

→  continue the preparatory steps for an appropriately designed reform of the public sector wage system;  

→  adopt  the  necessary  implementing  legislation  to  fully  implement  the  new  SOE  law  and  strengthen 

SOE governance to reduce the associated fiscal risks. 

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 pressures and 
market forces within the EU. The structure of the economy is favourable, with a growing manufacturing 
and service sector that benefits from sizeable FDI and close economic integration with the EU. However, 
the  quality  and  relevance  of  education  and  training  does  not  fully  meet  labour  market  needs.  Public 
investment  has  remained  high,  which  underscores  the  need  to  improve  public  investment  management. 
SMEs  still  face  a  number  of  obstacles,  including  an  uneven  playing  field  with  large  companies  and 
foreign investors. The green transition needs to quickly pick up speed to support the competitive position 
of  Serbian  companies  in  global  value  chains  and  to  continue  to  attract  investors.  Last  year’s 
recommendations have been partially implemented and remain partially valid. In the coming year, Serbia 
should in particular: 

→  reduce the skills mismatch on the labour market, including by stepping up vocational education and 

training and lifelong learning; 

→  adopt  an  improved  legal  framework  for  public  investment  management  that  sets  out  a  unified, 
comprehensive  and  transparent  mechanism  for  prioritising  all  public  investments  regardless  of  the 
type and source of financing;  

→  advance on the green energy transition, in particular, through decarbonising the industry, especially in 
the  energy  sector,  increase  investments  in  renewables  and  energy  efficiency,  and  decrease  energy 
dependence on Russia. 

Chapter 5: Public procurement 

Serbia is moderately prepared in the area of public procurement. Limited progress was made through 
amendments  to  the  Law  on  public  procurement  to  further  align  with  the  EU  acquis  and  with  related 
improvements to the public procurement portal. 

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Serbia should in particular: 

→  further  align  its  legislation  with  the  2014  EU  Directives  on  public  procurement,  in  particular  by 
adopting amendments to the Law on public-private partnerships and concessions and by ensuring that 
projects are subject to public procurement procedures; 

→  ensure  that  procurement  rules  under  intergovernmental  agreements  concluded  with  third  countries 

comply with the public procurement principles, in line with the EU acquis; 

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→  further 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. 

Chapter 18: Statistics 

Serbia  is  between  a  moderate  and  a  good  level  of  preparation  in  the  area  of  statistics.  Good 
progress  was  made  during  the  reporting  period  with the  agricultural  census conducted in October 
2023, in line with EU standards. 

The  Commission’s  recommendations  from  last  year  were  mostly  implemented.  In  the  coming  year, 
Serbia should in particular: 

→  adopt a new statistical law to increase the statistical office’s professional independence; 

→  continue to improve the compilation of macroeconomic statistics in line with the European System of 
Accounts (ESA 2010) notably by removing confidentiality flags preventing publication of the data. 

Chapter 32: Financial control 

Serbia is moderately prepared in the area of financial control. No progress was made in the reporting 
period. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Serbia should in particular: 

→  ensure  full  consistency  of  the  public  internal  financial  control  (PIFC)  legal  basis  with  the  general 

legal framework;  

→  create an effective internal audit function in all central budget institutions;  
→  adopt a managerial accountability roadmap and ensure its effective implementation. 

CLUSTER 2: INTERNAL MARKET 

Chapter 1: Free movement of goods 

Serbia is moderately prepared in the area of free movement of goods. Limited progress was made on 
last  year’s  recommendations  with  the  adoption  of  strategic  documents  relevant  to  ensure  compliance, 
alignment  with  and  implementation  of  EU  acquis  in  this  chapter,  which  remain  to  be  assessed  by  the 
Commission. 

The Commission’s recommendations from last year and remain partially valid. In the coming year Serbia 
should: 

→  start implementing strategic documents meant to ensure compliance with Articles 34-36 of the Treaty 
on the Functioning of the European Union (TFEU) and  all the EU acquis in this chapter, following 
the assessment of the Commission; 

→  align with the latest EU acquis on market surveillance; 

→  align with the EU acquis on general product safety. 

Chapter 2: Freedom of movement for workers 

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Serbia is moderately prepared in the freedom of movement for workers. Serbia made limited progress 
by amending the legislation on the employment of foreigners and by carrying out preparations to join the 
European Network of Employment Services (EURES). 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Serbia should in particular: 

→  step up cooperation with EU Member States on the coordination of social security systems; 
→  start preparations to join the European Labour Authority. 

Chapter 3: Right of establishment and freedom to provide services 

Serbia  is  moderately  prepared  in  these  areas.  No  progress  was  made  on  the  Commission’s 
recommendations from last year, which remain valid. In the coming year, Serbia should in particular: 

→  adopt the horizontal Law on services, complete the alignment of sectoral laws with the horizontal 
law and the EU acquis, and set up a point of single contact via a portal with online information for 
service providers, including on all relevant administrative procedures;  

→  finalise  alignment  with  the  EU  postal  acquis  and  ensure  compliance  with  the  new  postal  market 

rules;  

→  continue  aligning  with  the  EU  acquis  on  the  mutual  recognition  of  professional  qualifications, 
including  on  the  directives  on  the  recognition  of  professional  qualifications  and  on  a 
proportionality test. 

Chapter 4: Free movement of capital 

Serbia is moderately prepared in the free movement of capital.  Limited progress was made during 
the  reporting  period,  in  particular  following  the  adoption  of  the  amended  Law  on  Payment  Services 
which aims to align with the Payment Services Directive (PSD 2). 

The Commission’s recommendations from last year were only partially implemented and 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  by  removing  the  remaining  restrictions  on  the  acquisition  of 
agricultural  land  by  EU  nationals  and  by  adopting  amendments  to  the  Law  on  the  elements  of 
property law relations to ensure equal treatment on the acquisition of property rights;  

→  demonstrate,  by  building  a  track  record,  increased  effectiveness  in  monitoring,  supervision, 

financial intelligence, investigation and reporting. 

Chapter 6: Company law 

Serbia  has  a  good  level  of  preparation  in  company  law.  No  progress  was  made  during  the  reporting 
period. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Serbia should in particular: 

→  further align national legislation with the EU acquis on company law, particularly on takeover bids;  
→  align national legislation with the EU acquis on cross-border conversions, mergers and divisions and 

on the use of digital tools and processes in company law; 

10 

 
 
→  further align national legislation on company reporting and transparency. 

Chapter 7: Intellectual property law 

Serbia has a good level of preparation in intellectual property rights (IPR). Limited progress was made 
with slightly improved statistics on enforcement. 

The Commission’s recommendations from last year were partially implemented and remain valid. In the 
coming year, Serbia should in particular: 

→  align  the  copyright  and  related  rights  legislation  with  the  EU  directives  on  collective  rights 
management,  on  orphan  works  and  on  certain  permitted  uses  of  certain  works  and  other  subject 
matter  protected  by  copyright  and  related  rights  for  the  benefit  of  persons  who  are  blind,  visually 
impaired or otherwise print-disabled;  

→  strengthen  enforcement  by  improving  capacities  to  handle  IPR  cases  and  improving  coordination 

among different stakeholders. 

→  leverage  collaboration  with  the  European  Union  Intellectual  Property  Office  taking  advantage  of 

agency’s expertise, networks, and specialised databases. 

Chapter 8: Competition policy 

Serbia is moderately prepared in competition policy. No progress was made. 

The Commission’s recommendations from last year were not implemented and therefore remain valid. 
In the coming year, Serbia should in particular: 

→  align the existing fiscal State aid schemes and work on 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  standstill  obligations are  systematically respected  for  all  State aid 
measures and build a solid track record in implementing the laws on protection of competition and 
State aid control; 

→  finalise the inventory of State aid schemes and draw up an action plan to align all existing schemes 

identified as being incompatible with SAA obligations. 

Chapter 9: Financial services 

Serbia is moderately prepared in the area of financial services. Limited progress was made during the 
reporting  period.  Further  efforts  should  be  made  to  align  legislation  with  the  financial  services  acquis, 
focusing on the identified priorities. 

The  Commission’s  recommendations  from  last  year  remain  largely  valid.  In  the  coming  year,  Serbia 
should in particular: 

→  continue  to  align  the  banking  regulation  with  the  revised  versions  of  the  Capital  Requirements 
Regulation, the Capital Requirements Directive (CRR/CRD) and the Bank Recovery and Resolution 
Directive (BRRD);  

→  continue to align with the EU acquis in insurance including Solvency II Directive; 

11 

 
 
→  continue to align with the EU acquis on capital markets, including the European Markets in Financial 
Instruments  Regulation  (MiFIR),  the  Directive  on  alternative  investment  fund  managers  (AIFMD) 
and the Directive relating to undertakings for collective investment in transferable securities (UCITS). 

Chapter 28: Consumer and health protection 

Serbia  is  moderately  prepared  in  consumer  and  health  protection.  Limited  progress  was  made  in 
implementing consumer protection legislation and the alternative dispute resolution. 

The Commission’s recommendations from last year were only partially implemented and remain valid. In 
the coming year, Serbia should in particular: 

→  introduce  an  effective  risk-based  approach  for  official  import  controls  to  address  the  increased 

frequency, duration, volume and cost of sanitary inspections; 

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

→  amend  the  Law  on  health records and  documentation  to  ensure  that it fully  complies  with  EU  data 

protection rules and the EU acquis. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH 

Chapter 10: Digital transformation and media 

Serbia is moderately prepared in the field of digital transformation and media.  Limited progress was 
made on further digitalisation in the area of e-government and in aligning with EU Digital Single Market 
objectives.  The  deployment  of  ultra-fast  broadband  infrastructure  in  rural  areas  and  support  to  the 
digitalisation of schools continued. 

The Commission’s recommendations from last year were only partially implemented and remain largely 
valid. In the coming year, Serbia should: 

→  further  align  its  electronic  communications  and  cybersecurity  legislation  with  the  EU  regulatory 
framework, including the Gigabit Infrastructure Act, the European Electronic Communications Code, 
and the NIS2 Directive; 

→  ensure full financial and operational independence of the regulator for electronic media (REM) and 
the regulator for electronic communication and postal services (RATEL) in line with the EU acquis, 
including  the  EU  Electronic  Communications  Code,  and  the  provisions  set  out  in  the  Law  on 
electronic media; 

→  amend  the  2023  media laws  and  the  law  on  public broadcasting  to  address  the  remaining issues  in 
aligning  with  the  Audiovisual  Media  Services  Directive  and  European  standards,  including  recent 
changes to the latest EU acquis, and ensure their full implementation, including compliance with the 
provisions on electing a new REM Council. 

Chapter 16: Taxation 

Serbia is between a moderate and a good level of preparation in the area of taxation and made limited 
progress,  in  particular  in  further  digitalising  indirect  and  direct  taxation  and  implementing  the  Tax 
Administration transformation programme. 

12 

 
 
 
The Commission’s recommendations from last year were partially implemented and remain valid. In the 
coming year, Serbia should in particular: 

→  continue  implementing  the  Tax  Administration  transformation  programme,  in  particular  procuring 
and starting implementation of an integrated information system to support the Tax Administration’s 
new business model, and hire additional staff;  

→  further align legislation with the EU acquis in the areas of VAT, excise duties and direct taxation; 
→  start  preparations  towards  achieving  interconnection  and  interoperability  with  the  common  EU 

taxation IT systems.  

Chapter 17: Economic and monetary policy 

Serbia is between a moderate and a good level of preparation in economic and monetary policy. Some 
progress  was  made  with  the  introduction  of  expenditure  ceilings  and  the  adoption  of  an  action  plan to 
strengthen the medium-term expenditure framework. 

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Serbia should in particular: 

→  further align the legislation on the National Bank of Serbia (NBS) with the EU  acquis to ensure its 

full independence; 

→  further align the budget system law with Directive 85/2011 in the field of macroeconomic and fiscal 
projections,  a  3-year  expenditure  perspective  and  transparency,  including  for  capital  transfers  and 
guarantees to SOEs, and accounting and statistical reporting. 

Chapter 19: Social policy and employment 

Serbia  is  moderately  prepared  in  the  area  of  social  policy  and  employment.  Serbia  made  limited 
progress, particularly by adopting an implementation plan for the Youth Guarantee covering 2023-2026 
and launching the Youth Guarantee pilot in January 2024. 

The Commission’s recommendations were partially met and remain valid. In the coming period, Serbia 
should in particular: 

→  conduct  a  functional  review  of  active  labour  market  policies  and  the  workload  of  national 
employment service advisers to ensure adequate financial and institutional resources for employment 
and social policies and target more systematically young people, women and long-term unemployed 
people, and continue implementing the Youth Guarantee pilot; 

→  launch consultations on the new labour law, including provisions on foreign seconded workers in line 

with the EU acquis, and avoid further delays in implementing the action plan for Chapter 19; 

→  improve  the  coverage  and  adequacy  of  social  benefits  for  people  below  the  poverty  threshold, 
including financial social assistance and child allowances, address the high caseload of social welfare 
centres, and remove the administrative burden when applying for social assistance, in particular for 
the Roma population. 

Chapter 20: Enterprise and industrial policy 

Serbia  is  moderately  prepared  in  enterprise  and  industrial  policy  and  made  some  progress,  in 
particular with the adoption of a new law on the governance of state-owned enterprises (SOEs), a new 
SME  development  strategy  and  new  action  plans  to  implement  the  Industrial  Strategy  and  the  SOE 
strategy. 

13 

 
 
The  Commission’s  recommendations  from  last  year  were  partially  implemented  and  remain  largely 
valid. In the coming year, Serbia should in particular: 

→  further  improve  the  predictability  of  the  business  environment,  in  particular  by  substantially 

increasing the proportion of legislative acts opened for public consultation; 

→  adopt outstanding implementing legislation to ensure proper implementation of the new SOE law; 

→  further increase resources for financial and technical support to SMEs. 

Chapter 25: Science and research 

Serbia has a good level of preparation in science and research. Some progress was made, in particular 
with  the  adoption  of  the  new  action  plans  for  the  smart  specialisation  strategy  and  the  strategy  for  the 
development of a start-up ecosystem.  

The Commission’s recommendations from last year were partially implemented and remain valid. In the 
coming year, Serbia should in particular: 

→  increase its national funding for research and innovation;  
→  align its legislation with the European Research Infrastructure Consortium Regulation;  
→  follow up the actions relating to the new European Research Area. 

Chapter 26: Education and culture 

Serbia  has  a  good  level  of  preparation  in  education  and  culture.  Limited  progress  was  made,  in 
particular by further consolidating the national qualifications framework (NQF) system and taking further 
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), and by adopting a new 
action plan for the education strategy. 

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Serbia should in particular: 

→ increase the number of children participating in early childhood education and care, in particular those 

from disadvantaged backgrounds; 

→ continue  with  the  operationalisation  of  the  NQF  system,  focusing  more  on  the  quality  and  scope  of 

non-formal education and higher education; 

→ ensure  that  the  policy  and  institutional  framework  for  quality  assurance  in  higher  education  fully 

complies with the ENQA recommendations. 

Chapter 29: Customs union 

Serbia has a good level of preparation in the area of the customs union. Some progress was made with 
the adoption of amendments to the existing legislation, which aimed to further align it with the EU acquis 
and implement the Protocol to Eliminate Illicit Trade in Tobacco Products. Serbia is party of the Common 
Transit Convention and has successfully launched the New Computerised Transit System (NCTS – phase 
5). 

The Commission’s recommendations from last year were partly implemented and therefore remain valid. 
In the coming year, Serbia should in particular: 

→  further upgrade the customs processing system by integrating risk management;  

14 

 
 
→  further develop the national customs IT system to enable interconnection and interoperability with the 

EU electronic customs environment. 

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). 

Chapter 14: Transport 

Serbia  has a  good  level  of  preparation  in this field.  Limited  progress  was made  during the  reporting 
period with the adoption of the Road Safety Strategy and its 3-year action plan.  

The Commission’s recommendations from last year were only partially implemented and remain largely 
valid. In the coming year, Serbia, should in particular: 

→  adopt the national transport strategy; improve the maintenance system for road and rail infrastructure; 
align  and  simplify  road  and  rail  border  crossing  procedures,  including  the  extension  of  green 
corridors/green lanes for crossings with neighbouring EU Member States; and implement measures in 
the action plan for the national road safety strategy; 

→  ensure that procurement procedures for projects follow the principles of transparency, equal treatment 

and open competition.  

→  on  rail  reform,  continue  aligning  legislation  with  the  fourth  railway  package  and  adopt  the  Law  on 

railway safety. 

Chapter 15: Energy 

Serbia  is  moderately  prepared  in  the  area  of  energy.  Limited  progress  was  made  on  last  year’s 
recommendations. Progress included the completion of works on the gas interconnector between Serbia 
and Bulgaria and the establishment of the Republic Commission for Energy Networks. 

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Serbia should in particular: 

→  align  with  and  implement  the  Electricity  Integration  Package  and  determining  net  transmission 
capacities and allocating capacity on all cross-border interconnections in the context of establishing an 
integrated electricity market. 

→  finalise  the  unbundling  of  the  gas  system  operators,  certify  Serbian  transmission  system  operators 
(TSOs),  and  provide  effective,  non-discriminatory and  transparent  third-party  access  at all  gas entry 
points;  certify  the  underground  gas  storage  (UGS)  Banatski  Dvor  in  line  with  the  Gas  Storage 
Regulation; 

→ finalise and adopt implementing legislation in the area of  energy performance of buildings; adopt the 

Just Transition Action Plan. 

Chapter 21: Trans-European networks 

Serbia is between a moderate and a good level of preparation in the area of trans-European networks. 
Overall, some progress was made, including starting construction of the Niš–Dimitrovgrad railway line 
and completing the construction of the gas interconnector with Bulgaria. 

15 

 
 
 
The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Serbia should in particular: 

→  continue  to  improve  its  transport  and  energy  infrastructure  connections,  ensuring  quality  and 

transparency in line with EU standards; 

→ finalise the permitting process for the Serbia-Bulgaria gas interconnector and put it into operation; start 
construction of section III of the Trans-Balkan electricity corridor and continue project preparation for 
section IV between Serbia, Bosnia and Herzegovina and Montenegro; 

→ conclude the project preparations and launch the procurement process for the works to modernise the 

railway sections on Corridor X from Belgrade to Niš. 

Chapter 27: Environment and climate change 

Serbia has some level of preparation in the area of environment and climate change. Good progress was 
made,  namely  on  waste  management  legislation,  integrated  permits  for  industrial  pollution  control,  the 
adoption of the Climate Change Adaptation Program and the National Energy and Climate Plan (NECP). 

The Commission’s recommendations from last year were partially implemented and remain largely valid, 
in particular as concerns the priority reforms needed. In the coming year, Serbia should in particular: 

→  implement measures  set  out  in:  (i)  the  action  plan  for  administrative  capacity  development;  (ii)  the 
low carbon development plan; and (iii) the programme on air protection; improve the institutional set 
up and ensure coordination within the government; 

→  adopt  legislation  in  line  the  EU  acquis  on  Environmental  Impact  Assessment  (EIA),  Strategic 
Environmental  Assessment  (SEA)  and  the  Environmental  Crime  Directive;  ensure  that  all 
infrastructure  investments  comply  with  the  EU  environmental  and  climate  acquis  and  national  and 
international nature and water obligations, and ensure public participation; 

→  implement  commitments  under  the  Energy  Community’s  Decarbonisation  Roadmap,  particually  in 
regards  to  the  monitoring,  reporting,  verification  and  accreditation  (MRVA)  with  a  view  to 
introducing carbon pricing and aligning with the EU emission trading scheme (ETS). 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION 

Chapter 11: Agriculture and rural development 

Serbia has some level of preparation in agriculture and rural development. Limited progress was made 
in strengthening the IPARD Agency’s capacity and improving overall efficiency in the implementation of 
the Instrument for Pre-Accession Assistance for Rural Development (IPARD). 

The Commission’s recommendations from last year were partially implemented and remain mostly valid. 
In the coming year, Serbia should in particular: 

→  take measures to improve the implementation and avoid further losses of IPARD funds, notably by 
increasing capacity building; ensure the smooth rollover of entrusted IPARD measures to the 2021-
2027 period; and prepare new measures for entrustment; 

16 

 
 
 
 
→  update  and  speed  up  implementation  of the  action  plan  for  EU  acquis  alignment  in  agriculture and 
rural development and adopt legislation relevant to the common market organisation, on organics and 
on quality policy; 

→  adopt a national strategy for agriculture and rural development. 

Chapter 12: Food safety, veterinary and phytosanitary policy 

Serbia  is  moderately  prepared  in  the  area  of  food  safety,  veterinary  and  phytosanitary  policy.  No 
progress was made during the reporting period. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Serbia should in particular: 

→ adopt framework legislation on food safety, official controls, animal welfare and genetically modified 
organisms,  aligned  with  the  EU  acquis;  strengthen  administrative  capacity  to  ensure  correct 
implementation. 

→ adopt and start implementation of the national plan to align legislation with EU quality standards for 

raw milk. 

→ prioritise the process of upgrading food establishments to be in line with the EU acquis. 

Chapter 13: Fisheries and aquaculture 

Serbia is moderately prepared in the area of fisheries and aquaculture.  No progress was made during 
the reporting period. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Serbia should: 

→ adopt an action plan to ensure full alignment with the EU acquis by the date of accession, in particular 
on the organisation of markets, aquaculture, data collection, control measures, and illegal, unreported 
and unregulated (IUU) fishing; 

→ address  the  severe  understaffing  of  the  authorities  responsible  for  developing  policy  and  anti-fraud 

controls for fisheries (including border controls). 

Chapter 22: Regional policy and coordination of structural instruments 

Serbia  is  moderately  prepared  in  the  area  of  regional  policy  and  the  coordination  of  structural 
instruments.  Some  progress  was  made  on  last  year’s  recommendations,  in  particular  by  implementing 
parts of the action plan on cohesion policy, such as the adoption of operational programmes and a tool for 
monitoring the fulfilment of enabling conditions. 

The Commission’s recommendations from last year were partially implemented and remain largely valid. 
In the coming year, Serbia should in particular: 

→  adopt  and  implement  a  comprehensive  retention  policy  and  address  understaffing  in  critical 

institutions managing EU funds; 

→  keep improving capacity for the indirect management of IPA programmes, in particular to avoid late 

contracting and prepare for the ex post control of operational programmes; 

17 

 
 
→  further  elaborate  the  national  development  plan;  further  strengthen  the  institutional  framework  for 
cohesion  policy;  start  working  towards  fiscal  decentralisation  and  a  more  balanced  regional 
development;  and  build  a resilient  ecosystem involving  all levels of  government  and  relevant  non-
state bodies, in line with the partnership principle. 

Chapter 33: Financial and budgetary provisions 

Serbia  has  some  level  of preparation  in  the  area  of  financial  and  budgetary  provisions.  No  progress 
was made in implementing last year’s recommendations. 

The  Commission’s  recommendations  from  last  year  were  not  implemented  and  remain  valid.  In  the 
coming year, Serbia should in particular:  

develop  organisational  and  procedural  links  between  the  institutions  involved  in  the  own  resources 
system;  

continue preparations to meet the specific  administrative conditions for own resources as laid down in 
the  own  resources  regulations,  including  by  drafting  an  action  plan  with  a   timeline  to  meet  the 
administrative conditions. 

CLUSTER 6: EXTERNAL RELATIONS 

Chapter 30: External relations 

Serbia is moderately prepared in the area of external relations. No progress was made. The capacity to 
tackle  key  challenges  in  trade  policy  needs  to  be  strengthened,  in  particular  to  move  forward  with 
accession  to  the  World  Trade  Organization  (WTO)  where  again  no  progress  was  made.  Following  the 
expiry  of  the  previous set of  trade  restrictions  in  October  2023,  Serbia introduced  a  number  of  new  de 
facto and de iure trade barriers. This includes a new quantitative import restrictions on sunflower oil and 
margarine and an import ban on pellets in non-compliance of the SAA.  

The Commission’s recommendations from last year were  not implemented and remain mostly  valid. In 
the coming year, Serbia should in particular: 

→  urgently remove remaining unjustified trade restrictions and refrain from introducing new ones; 

→  adopt  a  WTO-compliant  law  on  genetically  modified  organisms  to  move  forward  with  remaining 

bilateral market access negotiations and finalise its accession to the WTO;  

→  continue to  implement  actions  set  out in  the  Common  Regional  Market  action plan for  2021-2024, 
take  the  necessary  steps  to  implement  CEFTA  Additional  Protocol  7  on  dispute  settlement  and 
implement actions under the new action plan 2025-2028. 

Chapter 31: Foreign, security and defence policy 

Serbia is moderately prepared in the area of common foreign, security and defence policy. No progress 
was made overall during the reporting period as Serbia’s alignment pattern was largely  unchanged, and 
some of its actions and statements went against EU foreign policy positions. Serbia maintained high-level 
relations  with  the  Russian  Federation,  raising  questions  about  Serbia’s  strategic  direction.  The  country 
also intensified relations with China. This included the entry into force on 1 July 2024 of the Free Trade 
Agreement  with  China,  which  is  a  strategic  concern.  Serbia  continued  cooperating  with  the  EU  on 
sanctions circumvention and  continued  providing  support  to  Ukraine.  Serbia  continued  to  participate in 

18 

 
 
 
and contribute substantially to EU crisis management missions and operations under the common security 
and defence policy. 

The recommendations from last year were not implemented and remain valid. In the coming year, Serbia 
should in particular: 

→  improve, as a matter of priority, its alignment with EU common foreign and security policy (CFSP), 
including  restrictive  measures,  and  avoid  actions  and  statements  that  go  against  EU  foreign  policy 
positions; 

→  continue  to  step  up  action  to  prevent  any  attempt  to  use  the  territory  of  Serbia  or  legal  bodies 

registered in Serbia to circumvent EU restrictive measures; 

→  make credible efforts to close space for foreign interference and information manipulation, including 
disinformation, and take action to build societal resilience against it and other forms of hybrid threats. 

1.3. STATE OF PLAY OF THE ACCESSION NEGOTIATIONS 

Clusters 

Chapters/areas  

State of play  

Fundamentals 

All chapters open 

Internal Market 

4 chapters open 

Competitiveness 
and 
growth 

inclusive 

5 chapters open 

Green agenda and 
sustainable 
connectivity 
All chapters open 

23 – Judiciary and fundamental rights 
24 – Justice, freedom and security 
5 – Public procurement 
18 – Statistics 
32 – Financial control 
…Economic criteria 
…Functioning of democratic institutions 
…Public administration reform 
1 – Free movement of goods 
2 – Freedom of movement for workers 
3 – Right of establishment and freedom 
to establish services 
4 – Free movement of capital 
6 – Company law 
7 – Intellectual property rights 
8 – Competition 
9 – Financial services 
28 – Consumer and health protection 

10 – Digital transformation and media 
16 – Taxation 
17 – Economic and monetary policy 
19 – Social policy and employment 
20 – Enterprise and industrial policy 
25 – Science and research 
26 – Education and culture 
29 – Customs union  
14 – Transport policy 
15 – Energy 
21 – Trans-European networks 

19 

Opened July 2016 
Opened July 2016 
Opened December 2016 
Opened December 2018 
Opened December 2015 

Serbia working on fulfilment of opening benchmarks 
Draft EU Common Position in Council 
Draft EU Common Position in Council 

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 
Draft EU Common Position in Council 
Opening Benchmarks Assessment Report in Council 
Opened December 2018 
Opening Benchmarks Assessment Report in Council 
Opened February 2017 
Opened December 2016 and provisionally closed 
Opened February 2017 and provisionally closed 
Opened June 2017 
Opened December 2021 
Opened December 2021 
Opened December 2021 

 
 
 
 
 
 
 
 
 
 
 
Resources, 
agriculture 
cohesion 

and 

2 chapters open 

External Relations 
1 chapter opened  
Not part of a cluster: 

27 – Environment and climate change  
11 – Agriculture and rural development 
12 – Food safety, veterinary and 
phytosanitary policy 
13 – Fisheries and aquaculture 
22 – Regional policy and coordination of 
structural instruments 
33 – Financial and budgetary provisions  
30 – External relations 
31 – Foreign, security and defence policy  

Opened December 2021 
Opening Benchmarks Assessment Report in Council 
Serbia working on fulfilment of opening benchmarks 
Opened June 2018 
Opening Benchmarks Assessment Report in Council 

Opened June 2018  

Opened December 2017 
Screening Report in Council 

Chapter 34 – Institutions is currently not applicable for Serbia 

Chapter  35  –  Other  issues  (including  Normalisation  of  relations  between  Serbia  and  Kosovo)  opened  in 
December 2015 

   

20 

 
 
 
 
 
 
 
 
2. 

CLUSTER 1: THE FUNDAMENTALS OF THE ACCESSION PROCESS 

2.1. 

FUNCTIONING OF DEMOCRATIC INSTITUTIONS AND PUBLIC ADMINISTRATION REFORM 

2.1.1 Democracy 

The  track  record  of  the  functioning  of  democratic  institutions  and  processes  has  been  mixed.  The 
parliament  that  was  elected  in  December  2023  is  pluralistic;  but  political  polarisation  remained,  both 
within  Parliament and  outside it.  ODIHR  identified and  number  of irregularities  in  the  December  2023 
elections.  The legality  and  legitimacy  of  elections  was  challenged  by the  opposition,  but  the  debate  on 
electoral reform continued following which most opposition parties participated in the municipal elections 
in June 2024. Freedom of assembly continues to be guaranteed. There were peaceful demonstrations in 
the wake of elections, except for one which resulted in violent incidents, and a number of demonstrations 
took  place  in  July  and  August  against  lithium  mining.  A  number  of  arrests  were  made  and  charges  of 
‘incitement to the violent overthrow of constitutional order’ were brought against the participants in the 
post-elections,  and  anti-lithium  demonstrations,  some  of  those  cases  were  subsequently  settled  through 
plea bargains. There were further reports of interrogations and house searches of environmental activists, 
and  of  practice  of  detaining  and  questioning  activists  and  CSOs  representatives  at  the  border.  Some 
foreign  citizens  were  prevented  to  enter  Serbia  on  the  basis  of  a  list  of  “morally  and  politically 
unwelcome  foreigners”.  The  existence  of  such a list was  confirmed  by  the authorities that  pledged  that 
such a list would be cancelled.  

Public confidence in the functioning of democratic institutions has also been negatively affected due to 
the frequent recourse to early elections over the past years. 

Elections 

Early  parliamentary,  provincial  (Vojvodina),  Belgrade  City  and  elections  in  a  further  64  cities  and 
municipalities  were  held  on  17 December  2023.  Turnout  in  the  national  elections  stood  around  the 
average at 58.8%. In its final report, the OSCE/ODIHR Election Observation Mission concluded that the 
elections ‘though technically well-administered and offering voters a choice of political alternatives, were 
dominated by the decisive involvement of the President, which, together with the ruling party’s systemic 
advantages,  created  unjust  conditions.’  The  oversight  bodies  remained  largely  ineffective  in  deterring 
violations  during  the election  period.  While media  covered  all  the  electoral  candidates,  in  line  with the 
law,  news  programmes  during  electoral  campaign  were  imbalanced.  The  opposition  parties  specifically 
challenged  the  legality 
of  the  Belgrade  polls 
domestic 
where 
observers 
election 
noted  irregularities  in 
polling 
21% 
of 
stations. 
The 
tabled 
opposition 
motions 
the 
Constitutional  Court  to 
annul  all  the  election 
results.  The  Court  has 
still  not  ruled  on  these 
motions  and  protests 
were held in Belgrade. 

Graph 1: Serbia - Women in political life

Number of party
leaders

Number of
Ministers

Number of MPs

Mayors

100,00

37,80

15,17

31,25

60,00

80,00

40,00

20,00

0,00

1,00

to 

145

300

100

200

150

250

250

10

32

50

25

94

22

0

1

Women

Total

%

In  March  2024, 
inter-agency Government working group was reinstated, followed by cross-party consultations within the 
parliamentary  Collegium  and  the  establishment  of  a  new,  parliamentary  working  group  to  improve 

Source: Government, Parliamentary website

the 

21 

 
 
election  conditions,  with  a  more  inclusive  format  which  involved  expert  civil  society  organisations 
(CSOs),  chaired  by  a  CSO  representative.  The  new  working  group  had  initially  not  made  significant 
progress  and  consequently  its  legal  basis  was  amended  in  June  2024.  The  Law  on  local  elections  was 
revised  in  April  2024,  and  in  May  2024  the  Law  on  the  unified  voter  register  was  amended,  at  the 
opposition’s initiative, to prevent abuses in the use of fictitious residence addresses for ‘voter migration’ 
purposes. Municipal elections due in summer 2024 were held on 2 June in parallel to the new Belgrade 
elections,  which  had  been  called  due  to  lack  of  majority  and  failure  to  constitute  the  Belgrade  City 
Assembly within the legal deadline. 

As part of the implementation of the OSCE/ODIHR recommendations, legislative amendments have been 
drafted of five laws (Law on election of MPs, Law on local elections, Law on Constitutional Court, Law 
on  financing  of  political  activities  and  Law  on  prevention  of  corruption)  but  remain  to  be  finalised. 
OSCE/ODIHR,  was  consulted  on  the  legislative  changes  and  concluded  in  its  opinion  that  while  the 
proposed  amendments  were  an  overall  welcomed  step  towards  addressing  certain  OSCE/ODIHR 
recommendations,  the  preparation  of  these  amendments  did  not  constitute  a  comprehensive  reform  of 
electoral  legislation”.  Serbia  also  sought  OSCE/ODIHR  technical  advice  regarding  the  access  to  and 
modalities  of  audit  of  voter  register  and  OSCE/ODIHR  issued  two  opinions.  In  October  2024,  the 
working texts of the draft amendments to the law on unified voter register and of the draft amendments to 
the Law on prevention of corruption were sent to OSCE/ODIHR for opinion. At the same time, first steps 
were  taken  to  address  some  of  the  administrative  and  organisational  aspects  of  OSCE/ODIHR 
recommendations. 

The local and Belgrade elections of 2 June 2024 were observed by the OSCE/ODIHR which concluded 
that  they  “were  well-administered,  offering  voters  a  wide  range  of  political  alternatives,  but  concerns 
about  widespread  pressure  on  public  sector  employees,  misuse  of  public  resources  and  media  bias  in 
favour of the ruling coalition negatively impacted the process”. 

Despite  some  measures  to  achieve  more  balanced  representation,  women  remain  underrepresented  in 
political  life.  Women  candidates  had  limited  visibility  during  the  campaign  and  were  predominantly 
portrayed in traditional settings while the campaign rarely addressed issues related to gender equality. 

Parliament 

The effectiveness, autonomy and transparency of Parliament, and the role of the parliamentary opposition, 
need to be strengthened to ensure the exercise of necessary checks and balances. The effective exercise of 
parliamentary  powers is limited  by  the  fact that  Parliament  has no  annual  work  plan and the  agenda  is 
driven by the Government. The new Parliament was formally constituted on 6 February 2024. However, 
the  new  leadership  was  only  elected  on  20 March 2024.  Of the six  Deputy  Speakers,  three  are  women, 
one  represents  the  opposition  and  two  belong  to  national  minorities  parties.  Both  Government  and  the 
opposition are taking an active part in the work of Parliament. However, the opposition parties from the 
previous Serbia against Violence and from the NADA coalition declined to take up the posts of Deputy 
Speakers  and  Committee  chairs.  Therefore  only  2  of  the  20  committees  are  chaired  by  the  opposition. 
Plenary and committee sessions continued to be marked by tensions, offensive language and occasional 
incidents  which  at  times  lacked  impartial  reaction  from  the  Speaker.  Nearly  all  adopted  laws  and  bills 
were tabled by Government. The first session of the regular spring sitting of the new Parliament was held 
only  on  22 April  2024  and  Parliament  only  held  four  sessions  since  its  constitution.  The  practice  of 
amalgamating a number of unrelated agenda items continued. Six public hearings were held in 2023 and 
one in 2024. No sessions with MPs’ questions to Government were held in the second half of 2023 and 
only one was held in 2024. The use of the urgency procedure was reduced in 2023 to 6% (17 out of 161 
laws  were  adopted  under  the  urgency  procedure).  In  July  2024,  Parliament  a  plenary  debate  on  some 
independent bodies’ annual reports for 2023 took place. However, no debate took place yet on the annual 
reports for 2022 and 2023 by the Equality Commissioner and Ombudsman.   

EU integration 

22 

 
 
The current negotiating setup, as amended in 2021, is centralised and politically driven. The Minister in 
charge  of  European  Integration  is  also  the  chief  negotiator,  while  state  secretaries  head  the  teams  that 
support the negotiations for Serbia. 

Given the technical mandate of the government during a large part of the reporting period, Serbia has not 
advanced substantively in terms of legislative alignment. Serbia’s internal deadline for full alignment with 
the EU acquis remains 2025. The Ministry of European Integration continues to publish quarterly reports 
on the fulfilment of the national plan to adopt the EU acquis (NPAA), which for 2023 stood at 29%. A 
new  IT  tool  linking  the  NPAA  with  the  government’s  annual  legislative  programme  is  expected,  once 
operational, to ensure more harmonised legislative planning and coherence between the two programmes 
and their respective costing. 

Serbia continues to declare EU membership as its strategic goal. In line with this objective, the Serbian 
authorities  need  to  considerably  strengthen  the  emphasis  on  consistent,  proactive  and  objective 
communication  about  the  EU  and  Serbia’s  accession  process.  The  Ministry  for  European  Integration 
continued  to  be  the  focal  point  for  consultations  and  engagement  with  civil  society,  the  business 
community and  local  self-governments in  the  negotiating  process.  The  National  Convention  on  the  EU 
(NCEU),  an  umbrella  association  engaging  civil  society  organisations  in  the  accession  negotiations, 
continues  to  act  as  a  public  watchdog  for  the  accession  negotiations.  Europe  House,  a  flagship 
communication hub of the EU Delegation to Serbia opened in September 2024 in Belgrade. 

Governance 

The frequency of snap national elections has led to  considerably shortened mandates for the parliament 
and long periods of government acting in a caretaker capacity. The governing coalition is composed of six 
political  parties/coalitions,  including  three  parties  representing  national  minorities.  Representatives  of 
national minorities hold ministerial posts, including Human and Minority Rights and Social Dialogue. 

The autonomy of independent bodies needs to be fully exercised, their roles acknowledged and respected 
by the authorities, and their recommendations followed up more thoroughly and in a timely manner. 

As regards local self-government, the Law on Vojvodina’s financing resources has not been adopted yet, 
despite being provided for under the Constitution. Local administrative capacity is weak and significant 
disparities  between  municipalities  persist.  Responsibilities  continue  to  be  borne  at  local  level  without 
proper analysis of the required capacity and human/financial resources. Implementation of the programme 
to reform the local government system (2021-2025) continued to make slow progress (75% at the level of 
measures but only 38% at the level of activities). The Commission for Financing Local Self-Governments 
does not convene regular meetings and it did not meet in 2023. 

Civil society 

Verbal  attacks  and  smear  campaigns  against  some  CSOs  intensified,  including  by  high-level  officials. 
Campaigns were also waged by tabloids, including in the form of disclosure of CSOs’ activists’ personal 
data. Human rights defenders that were targeted by spyware attacks did not file a formal complaint due to 
the lack of trust in the process. Organisations and individuals that criticise the authorities continue to be 
put  under  pressure,  in  particular  those  monitoring  alleged  electoral  irregularities  and  environmental 
damage  or  those  protesting  the  glorification  of  war  criminals  and  lithium  mining.  The  high  number  of 
strategic  lawsuits  against  public  participation  (SLAPP),  notably  launched  by  members  of  national  and 
local authorities, is a major concern. 

The  legal  framework  for  cooperation  between  the  government  and  CSOs  remains  broadly  in  place.  Its 
implementation still needs to be improved and systematised. CSOs continue to report that the time given 
for public consultations is not sufficient, and that their comments on draft laws of public interest are not 
sufficiently taken into account. Serbia continued implementing the strategy and action plan for creating an 
enabling environment for the development of civil society. The impact of the new Council for cooperation 

23 

 
 
and  development  of  civil  society  has  yet  to  be  demonstrated.  The  transparency  and  fairness  of  public 
funding to civil society need to be significantly improved. Key challenges include the lack of transparent 
criteria for approving support to CSOs and for selecting independent experts in evaluation commissions, 
and in the reporting on spent funds. 

Civilian oversight of the security services 

The  parliamentary  committee  for  the  oversight  of  security  services  remains  responsible  for  civilian 
oversight of the security sector. However, this committee did not meet between July 2023 and May 2024, 
when it was constituted in a new parliamentary composition. A Law on access to state security files still 
needs to be adopted. In November 2023, the Director of the civilian Security-Intelligence Agency (BIA) 
resigned, after he was placed on the US Department of the Treasury sanctions list. The new Director was 
appointed in June 2024. 

2.1.2. Public administration reform 

Strategic framework for public administration reform (PAR) 

A  comprehensive  PAR  strategy  (2021-2030)  is  being  implemented.  Its  quality  is  satisfactory,  but  the 
effectiveness  of  its  implementation  needs  to  be  improved.  The  strategy’s  mid-term  review  confirmed 
uneven  progress in the  different reform  areas,  with  the  most  effective  area  being  service  delivery.  This 
review did not lead to any changes. The 2023 PAR implementation report shows slow progress overall 
with 58% of measures and 39% of activities implemented in 2023. The PAR online monitoring tool is not 
regularly updated and does not provide an accurate and up-to-date picture of implementation overall or by 
policy pillar. PAR coordination mechanisms at political and administrative levels are formally in place, 
but their use in practice and their impact are limited. Financial sustainability remains an issue of concern 
due to reliance on donor funding. 

Policy development and coordination 

Policy development and coordination are regulated but not systematically enforced. A system for sound 
policymaking is in place with a clear set of regulations embedded primarily in the Law on the planning 
system.  Enforcement  of  the  regulatory  framework  lags  behind  the legal  deadlines.  No  notable  progress 
was  made  in  ensuring  that  the  Public  Policy  Secretariat’s  comments  on  draft  legislation  and  policy 
documents  were  incorporated  and  that  the  final  versions  of  these  documents  were  compliant  with  the 
legislation. There was no new streamlining of sectors’ strategic frameworks, and only 3 sectors out of 18 
have been optimised so far. The publication of annual reports on the implementation of sectoral planning 
documents  is  limited  (around  20%,  even  though  the  legislation  requires  it).  The  national  development 
plan,  which  was  set  for  adoption  in 2020, is  not  yet  in  place.  There  has been a  gradual increase  in  the 
adoption rate of mid-term plans (56% between 2024 and 2026) although the rate is still behind the 2020 
deadline set for central level institutions. 

Public consultations were carried out in 2023 on 53% of draft laws and 31% of draft regulations, which 
remain  insufficient.  No  central  body  is  in  charge  of  the  quality  control  of  public  consultations.  The  e-
consultations  platform,  although  mandatory,  is  not  sufficiently  used  (See  Civil  society  under  2.1.1 
Democracy). 

Public financial management (PFM) 

Public financial management is broadly in place but needs to be improved. The 2021-2025 PFM reform 
programme,  which  covers  all  PFM  sub-systems,  is  being  implemented  in  line  with  its  action  plan, 
although  the  December  2023  revision  further  reduced  their  ambition.  The  programme  is  still  highly 
dependent on donor funding, with only 21% of it covered by the state budget. Annual monitoring reports 

24 

 
 
are  published  to  keep  track  of  progress.  Regular  policy  dialogue,  including  with  civil  society 
organisations,  takes  place  once  a  year  and  could  be  more  interactive.  Programme  budgeting  is  to  be 
further  developed  to  allow  for  proper  performance  management.  An  increased  number  of  budget  users 
applied  gender-responsive  budgeting.  Macroeconomic  and  fiscal  forecasting 
is  well  prepared. 
Nevertheless, the link between the strategic priorities and budget programmes is insufficient, and ad hoc 
priorities  frequently  crowd  out  resource  allocation.  The  monitoring  of  fiscal  risks  is  to  be  further 
developed. The fiscal strategy is underused in the budget preparation process. The amendments adopted 
in  October  2023  improved  the  Law  on  public  procurement.  However,  there  has  been  an  increase  in 
awarding large-scale infrastructure contracts without transparency, often under international agreements 
or  through  special  laws.  The  vulnerability  of  public  procurement  to  corruption  needs  to  be  carefully 
monitored. 

Further progress is needed in extending the coverage and quality of public internal financial control. The 
improved  legislative  framework  for  internal  audit,  including  new  rulebooks  for  internal  audit  and  for 
certification,  needs  to  be  implemented.  The  managerial  accountability  roadmap  has  yet  to  be  adopted. 
Analytical  units  in  all  ministries  and  government  agencies  need  to  be  set  up  without  delay.  Stronger 
binding fiscal rules are yet to be implemented. In September 2023, Serbia adopted a new decree on capital 
projects,  including  provisions  on  a  public  investment  management  information  system.  However,  the 
country  fell  short  of  developing  a  genuine  single  pipeline  for  capital  investment  management  as  the 
decree maintains several critical exemptions. 

Serbia  did  not  progress  in  improving  budget  transparency.  No  transparency  roadmap,  pre-budget 
statement  or  mid-year  report  was  produced.  The  Ministry  of  Finance  does  not  publish  the  budget 
execution profile at the beginning of the year, preventing an analysis of any divergence from set targets. 
Budget execution reports still only contain basic elements. Inconsistencies in the accounting and reporting 
framework need to be resolved, and in-year and annual financial reports need to be published in a timely 
manner.  Public  participation  in  the  budget  process  and  budget  oversight  by  the  legislature  need  to  be 
improved.  The  2024  budget  was  adopted  in  line  with  the  budget  calendar  but  with  a  very  limited 
qualitative assessment and debate among stakeholders. 

Public service and human resources management (HRM) 

The  public  service  and  human  resources  management  regulatory  framework  is  satisfactory,  but  its 
effectiveness  is  undermined  by  the  lack  of  consistent  enforcement.  The  legal  framework  for  HRM  is 
solid. The civil service’s horizontal and vertical scope is adequate, except for several (regulatory) public 
agencies  with  a  higher  degree  of  autonomy  that  are  excluded  from  the  civil  service  system  without 
justified  reasons.  The legislation  provides for  merit-based recruitment  and  dismissal  procedures  but 
leaves too much discretion to the heads of institutions in setting up selection committees. Around 10% of 
all civil servants are hired on a fixed-term basis without having to pass a competition or go through other 
skills  assessment.  Regarding  senior  civil  servants,  the  lack  of  transparency  in  appointing  candidates 
recommended by the High Civil Service Council and legal compliance remain issues of serious concern. 
The  majority  of  managerial  posts  continues  being  occupied  by  acting  appointments.  Moreover,  the 
majority of acting managers are not civil servants, despite a legal provision against such appointments. 
Clear political will and adequate resources in conducting competitions for managerial positions as well as 
monitoring  of the  phasing-out of  the  high  number  of acting  managers  are crucial to  urgently  tackle  the 
excessive number of senior civil servants in acting positions (57% as of March 2024). 

Serbia  has  achieved  effective  gender  balance  in  the  public  administration,  including  in  top  managerial 
positions with 48% women and 52% men. The new HRM management information system is not yet in 
place.  The  capacity  of  HRM  units  is  still  weak,  and  they  lack  a  strategic  role.  The  autonomy  of 

25 

 
 
administrative  bodies  to  launch  new  recruitments,  based  on  their  staffing  plans,  is  constrained  due  to 
recruitment restrictions under the Law on the budget system. The 2016 Law on the public sector salary 
system has yet to enter in force. The National Academy for Public Administration continued to improve 
the  scope  and  quality  of  training  for  central-  and  local-level  public  servants.  Almost  all  (99.8%) 
institutions that have the obligation to adopt integrity plans did so. Further efforts are needed to ensure 
that existing integrity plans for the judiciary and public administration, including at local level, are fully 
implemented. 

Accountability of administration 

The accountability of the administration still needs to be improved. There was no progress in addressing 
the  administration’s  systemic  organisational  problems,  such  as  overlapping  roles  and  unclear  reporting 
lines,  with  a  limited  application  of  the  concept  of  managerial  accountability.  According  to  the 
Ombudsman’s  2023  report,  more  than  half  of  the  reported  human  rights  violations  were  related  to 
citizens’  right  to  good  administration.  On  citizens’  right  to  access  public  information,  the 
Commissioner for Information of Public Importance and Data Protection resolved 10 594 complaints in 
2023, 37% of them related to ignoring requests by people seeking information. The execution rate of the 
Commissioner’s  decisions  was  74.83%  (72.9%  in  2022).  On  citizens’  right  to  administrative  justice, 
the clearance rate  of  solved  cases  was  35.48% (39.77% in  2022)  with a  long  disposition  time  of  2 024 
days. The decline in the Administrative Court’s performance can be attributed to: (i) delays in introducing 
a  multilayer  system  of  administrative  justice,  which  was  initially  planned  for  2022;  (ii)  the  lack  of 
specialisation among a small number of judges; and (iii) a growing number of cases against the ‘silence of 
the administration’. Courts continued their efforts to improve transparency by publishing around 30 760 
anonymised decisions on their websites and in the Supreme Court’s case-law database. Citizens’ rights 
to seek compensation is regulated, but there is no statistical data to monitor its implementation. 

Service delivery to citizens and businesses 

Service  delivery  to  citizens  and  businesses,  in  particular  e-services,  is  continuously  improving.  Further 
developments are hampered by the fragmentation of responsibilities and mandates among institutions and 
the lack of a dedicated coordination system. 

Progress  in  key  enablers,  such  as a  cloud-based  e-signature system,  user-friendly  payment services  and 
digital  identity  systems,  contributed  to  the  further  development  of  e-services.  The  interoperability 
framework  is  also  in  place.  There  are  more  databases  connected  to  the  Government  Service  Bus  (an 
information system linking major databases), and an improved Bus was launched in December 2023. The 
number  of  municipal  one-stop  shops  also  increased.  Although  the  regulation  on  one-stop  shops  was 
adopted in October 2023, there are still no quality standards for service provision.  There has been some 
progress  in  increasing  user  engagement  and  developing  mechanisms  for  collecting  feedback.  The  legal 
framework  for  simplifying  administrative  procedures  is  in  place  although  aligning  sector-based 
legislation  with  the  Law  on  general  administrative  procedures  is  still  ongoing.  The  simplification  and 
digitalisation of administrative procedures continued with the implementation of the e-paper programme. 

2.2. RULE OF LAW AND FUNDAMENTAL RIGHTS 

2.2.1  Chapter 23: Judiciary and fundamental rights 

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. 

26 

 
 
 
Functioning of the judiciary 

Strategic documents 

Strategic  documents  are  in  place  and  their  implementation  still  needs  to  be  improved.  The  main 
strategic documents are the revised action plan for Chapter 23, adopted in June 2020, and the 2020-2025 
Judicial  development  strategy,  adopted  in  March  2022.  While  the  quality  of  reporting  on  the 
implementation of the Chapter 23 action plan has improved in recent years, further progress is needed in 
meeting the interim benchmarks. 

The Law on Judicial Academy still needs to be adopted by the end of 2024, and a positive opinion of the 
Venice Commission is needed before its adoption. The Government has decided not to amend the Law on 
Seats and Territorial Jurisdiction of Courts as according to their analysis the scope of the Constitutional 
amendments  does  not  require  changes  to  this  law.  Implementation  of  the  human  resources  (HR)  and 
information and communications technology (ICT) strategies is weak. 

Management bodies 

The management bodies are in place and function adequately. There is a need to improve the analytical 
and statistical capacity of the High Judicial Council (HJC) and High Prosecutorial Councils (HPC), in line 
with the HR strategy. In general, the new by-laws have been developed through a participatory approach. 

Independence and impartiality 

The independence and impartiality of the judiciary needs to be further improved in the higher-level courts 
and  in  the  courts  of  first  instance.  The  new  constitutional  and  legal  framework  strengthens  the 
independence  of  the  judiciary.  Following  the  adoption  of  the  implementing  laws  to  the  constitutional 
amendment,  Serbia  adopted  35  by-laws.  Sixteen  were  adopted  by  the  HJC  and  19  by  the  HPC,  among 
other, to encourage merit-based recruitment, defining the qualifications, integrity, ability and efficiency of 
candidates,  in  line  with  the  new 
laws. 

Graph 2: Serbia - Requests for protection from undue 
influence

33

32

Two by-laws of shared competence 
between 
the 
Ministry  of  Justice  still  need  to  be 
adopted. 

the  Councils  and 

16

16

2

0

0

0

5

7

1

7

0

7

0

0

2022

2022

2023

2023

High Judicial Council

the  HJC  and  HPC 

Pressure  on  the  judiciary  and  the 
prosecution  services  still  remains 
high.  Whilst  the  rules  of  procedure 
the 
of 
foundation  for  a  more  effective 
reaction 
undue 
cases 
influence, no consistent reduction in 
undue  influence  was  observed  in 
practice.  Government 
officials, 
including some at the highest level, 
and  Members  of  Parliament  continue  to  comment  publicly  on  ongoing  investigations  or  court 
proceedings, as well as on the work of individual prosecutors and judges. A more proactive role needs to 
be ensured in this regard by both Councils, which have so far rejected all received requests for protection 
from  undue  influence  including  the  five  cases  that  were  pending  at  the  end  of  2023,  but  also  from 
Government  and  Parliament.  Cases  are  allocated  electronically  and  at random to  judges  via  specialised 
software. Software for the automatic allocation of cases to prosecutors has yet to be developed. 

Requests received
Outcome of decisions Validation
Outcome of decisions Rejection
Outcome of decisions Pending

High Prosecutorial Council

Source: Ministry of Justice 

lay 

of 

in 

35
30
25
20
15
10
5
0

Accountability 

27 

 
 
The  accountability  of  the  judiciary  needs  to  be  improved,  in  line  with  the  new  legal  framework.  In 
particular,  there  is  a  need  to  improve  the  capacity  of  the  disciplinary  bodies.  In  2023,  109  disciplinary 
complaints were filed to the HPC. Of those, grounds for conducting disciplinary proceedings were found 
in  one  case  and  sanctions  were  applied  against  the  prosecutor  in  question.  In  2023,  398  disciplinary 
complaints  were  filed  to  the  HJC  at  first  instance  and  14  proposals  were  forwarded  to  the  disciplinary 
commission  at  second  instance.  The  HJC  rejected  three  proposals  and  issued  15  sanctions  (including 
cases from the previous year), including two proposals for dismissal of judges. 

Quality of justice 

Graph 3: Serbia - Disciplinary 
procedures outcome of procedures  -
2023

14

11

7

1

1

1

15

10

5

0

Judges

Prosecutors

Initiated

Completed

Sanctions pronounced

The  quality  of  justice  needs  to  be  improved.  The 
Judicial  Academy’s  capacity, 
internal  expertise, 
transparency  of  the  initial  testing  process  and  the 
quality  of  the  mentoring  system  should  be  further 
improved.  In  2023,  the  Judicial  Academy  conducted 
around 230 educational events, using the new platform 
to monitor the training programmes. A deeper analysis 
would  help  to  better  define  training  needs.  The 
Academy  continues  to  be  an  observer  in  the  European 
Judicial  Training  Network  (EJTN)  and  should  further 
exploit its expertise. 

Source: CEPEJ

On  case  law  harmonisation,  the  database  of  court 
jurisprudence was expanded to include inputs from the 
Supreme  Court,  the  Commercial  Appellate  Court,  the  Misdemeanour  Appellate  Court,  Administrative 
Court and the four appellate courts, along with the European Court of Human Rights (ECtHR) database. 
As of March 2024, there were 429 920 integral decisions and 64 585 anonymised court decisions in the 
database. All Supreme Court decisions are anonymised and available on the website. There is a need for 
the Supreme Court to more effectively steer the jurisprudence by providing guidance on contentious legal 
issues, particularly on repetitive cases. 

Serbia  still  lacks  a  comprehensive  court  case  (and  document)  management  system  that  interlinks  cases 
across Serbian courts and prosecutors’ offices.  The case management system for prosecutors’ offices is 
expected to be finalised in December 2024. The work on a case management system for courts officially 
started in September 2021 and is currently stalled. Further work is still required to ensure that all systems 
can operate smoothly including legislative changes, along with adequate staffing, financial resources and 
upgraded  communication  infrastructure.  More  efforts  are  needed  to  digitalise  the  justice  system,  in 
particular regarding communication with courts and the use of videoconferencing for court hearings. 

In March 2024, public notaries acquired access to the electronic network of EU notaries, by decision of 
the Council of the Notariats of the European Union (CNUE). This direct communication should enable a 
faster and more secure exchange of information and authentication process. There are 233 notary offices. 
The  Chamber  of  notaries  opened  competitions  for  two  notaries  in  June  and  July  2024  to  complete 
coverage of all the basic courts’ territories. The Law on notaries and accompanying laws still need to be 
amended. 

At  the  end  of  2023,  out  of  894  positions  for  prosecutors,  216  were  vacant,  while  678  prosecutors 
effectively  worked  (708  at  the  end  of  2022).  In  January  2024,  the  HPC  elected  89  prosecutors  and  78 
prosecutors have taken office in the first half of the year. For the remaining candidates, 14 appeals against 
the selection decisions were filed with the Constitutional Court. 

28 

 
 
acting 

this  period, 

In  2023,  the  HJC  appointed  281 
judges,  one  court  president  and 
court  presidents. 
50 
During 
the  HJC 
published  competitions  for  an 
additional  619  judicial  positions, 
in  view  of  the  high  number  of 
judges  retiring,  and  for  46  court 
presidents. At the end of 2023, of 
the  3 102  judicial  positions,  466 
were  vacant  while  2 636  judges 
worked  (2 657  at  the  end  of 
2022).  In  the  first  half  of  2024, 
the  High 
Judicial  Council 
appointed 63 judges. 

The Constitutional Court continued to work in partial 
composition,  with  only  11  out  of  15  judges  as  of 
April  2024.  No  steps  were  taken  to  reform  the 
Constitutional  Court.  In  particular,  to  introduce 
qualified majority with a deadlock mechanism for the 
election  of  some  of  the  judges  by  Parliament,  as 
underlined by the Venice Commission. 

Efficiency 

2000

1500

1000

500

0

Graph 5: Serbia - Alternative dispute 
resolution - 2023

1612

n/a

n/a

The  efficiency  of  justice  needs  to  be  improved. 
Problems  of  unequal  workload  among  judges  and 
prosecutors  have  continued  to  negatively  affect 
performance and access to justice. The High Judicial 
Council  has  initiated  an  analysis  of  workload  in 
courts  to  assess  the  unequal  burden  on  judges. 
Amendments  ensuring  trials  within  a  reasonable  timeframe  were  adopted  by  the  National  Assembly  in 
late October 2023. 

Mediation cases

Source: CEPEJ

Mediators

n/a: not available

Settlement
agreements

Finalised court-
related
mediations

In 2023, the courts received and resolved fewer new cases than in 2022. While the average clearance rate 
fell  from  2022,  there  were  significant  differences  between  the  courts.  In  particular,  the  situation  at  the 
Administrative  Court  remains  a  concern,  as  demonstrated  by  the  low  clearance  rate  of  35.48%. 
Implementation of the unified backlog reduction programme for 2021-2025 continued.  

On  the  enforcement  of  judgments,  in  2023  courts  received  more  new  cases  (239 430)  than  in  2022 
(236 004) and resolved fewer (237 714) than in 2022 (274 913). However, the overall number of pending 
cases at the end of 2023 fell to 29 417.  

The efficiency and transparency of the Constitutional Court’s work should be further improved and access 
to  the  court  practice  database  of  both  domestic  and  European  Court  of  Human  Rights  judgments 
simplified.  In  2023,  the  court  received  22 700  new  cases,  39.70%  more  than  in  2022  (16 249).  An 
increasingly high number of cases (42 752 as of August 2024) is pending before the Constitutional Court, 
compared to 29 672 in 2023. 

29 

 
 
 
 
Graph 6.1: Serbia - Efficiency of 
courts (%) 

Graph 6.2: Serbia - Efficiency of 
courts (days) 

108

100

101

99

123

105

98

95

140
120
100
80
60
40
20
0

334

302

169

182

400
350
300
250
200
150
100
50
0

105

104

33

35

1st
instance

2nd
instance

1st
instance

2nd
instance

1st
instance

2nd
instance

1st
instance

2nd
instance

Criminal cases

Non-criminal
cases*
Clearance rate in 2022 %
Clearance rate in 2023 %

Criminal cases

Non-criminal
cases*

Disposition time 2022 (days)
Disposition time 2023 (days)

*Civil and commercial cases, administrative cases,
non-litigous cases, other cases

Source: CEPEJ

*Civil and commercial cases, administrative cases,
non-litigous cases, other cases

Source: CEPEJ

Domestic processing of war crimes 

Serbia’s track record in the processing of war crimes needs to be improved.   

The War Crimes Prosecutor’s Office filed three indictments against seven individuals, of which one was 
transferred  from  Bosnia  and  Herzegovina.  One  indictment  has  not  yet  been  confirmed.  At  the  end  of 
2023, trial proceedings were ongoing in 19 cases. In 2023, final decisions were rendered in seven cases, 
of  which  one  case  involved  elements  of  sexual  violence.  Serbia  continued  to  avoid  filing  indictments 
against high-level suspects and the time for processing cases was excessive.  Serbia should take steps to 
increase the pace of processing war crimes cases and address the significant case backlog of over 1 700 
pre-investigative cases, which remain a very serious concern. Contrary to what was envisaged in the 2018 
war crimes prosecutorial strategy, a case categorisation plan has yet to be finalised A new acting Chief 
War Crimes Prosecutor was appointed in May 2024 and the appointment procedure of a full-time chief 
prosecutor is ongoing. 

Cooperation  with  the  International  Residual  Mechanism  for  Criminal  Tribunals  (IRMCT)  Prosecution 
office and the War Crimes Prosecutor’s Office has continued. Cooperation with Bosnia and Herzegovina 
continued, but little progress was noted with Croatia and Kosovo. Serbia has yet to enforce the judgment 
of Bosnia and Herzegovina in the case of General Djukić, who resides in Serbia. 

The sentencing policy is inconsistent and not systematically aligned with the criminal sanctions for the 
gravity of the crimes. The trial of Milenko Živanovic, the former General and Commander of the Army of 
Republika Srpska at the time of the alleged offence, is ongoing. Serbia’s judiciary has failed to include 
financial compensation to the  victims  of  war  crimes in  any  of  the  criminal  proceedings.  This approach 
should be remedied. 

Serbia  is  yet  to  show  a  genuine  commitment  to  investigating  and  adjudicating  war  crimes  cases.  A 
number  of  Serbian  political  parties,  politicians  and  media  outlets  continued  to  provide  support  to,  and 
public  space  for,  convicted  war  criminals  and  to  deny  war  crimes,  including  the  Srebrenica  genocide, 
without repercussions.  

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. Despite steady progress in identification, 7 608 persons are still 
missing  as  a  result  of  the  conflict.  Further  efforts  are  needed  at  the  regional  level  through  the  missing 
persons  group  established  in  2018  under  the  Berlin  Process  to  strengthen  cooperation,  as  well  as  at 
bilateral level. 

30 

 
 
    
 
Fight against corruption 

Track record 

There  are  improvements  in  establishing  a  track  record  for  the  fight  against  corruption.  The  number  of 
final  convictions  in  high-level  corruption  cases  in  2023  increased  compared  to  previous  years.  The 
Prosecutor’s Office for Organised Crime ordered investigations against more individuals and there was a 
greater  number  of  indictments  issued.  For  the  first  time  since  2019,  one  case  resulted  in  the  final 
confiscation  of  illegally  acquired  assets.  Regarding  the  confiscation  of  property  gain  based  on  the 
Criminal  Code,  there  were  nine  such  cases.  Serbia  should  address  weaknesses  in  the  investigation  and 
prosecution  of  high-level  corruption  cases,  in  particular  on  the  quality  of  evidentiary  collection  and 
presentation and risk of politically motivated interference. 

In regards to non-high level corruption, in 2023, the special departments for combating corruption in the 
offices  of  higher  prosecutors  and  the  prosecution  offices  of  general  jurisdiction  continued  to  receive  a 
lower number of criminal complaints than in previous years: 2 339 in 2023 compared with 2 695 in 2022, 
and  3 151  in  2021.  They  ordered  131  investigations  (179  in  2022,  299  in  2021)  and  initiated  parallel 
financial investigations against 35 individuals (34 in 2022, 67 in 2021). A total of 352 indictments were 
issued  (422  in  2022,  603  in  2021),  of  which  58  were  confirmed  by  the  courts.  The  courts  rendered 
judgments  against  286  individuals  (304  in  2022)  in  the  first  instance  and  final  convictions  were  made 
against 231 individuals (240 in 2022).  

In November 2023, GRECO issued the addendum to the second compliance report for Serbia. The report 
concluded  that  Serbia  had  satisfactorily  implemented  10  of  the  13  recommendations  of  the  fourth 
evaluation round, therefore completing the fourth-round compliance procedure. 

In December 2023, Serbia submitted its report on the implementation of the GRECO recommendations 
from  the  fifth  evaluation  round,  which  targets  preventing  corruption  and  promoting  integrity  in  central 
government  (top  executive  functions)  and  law  enforcement  agencies.  GRECO  assessed  that  of  the  24 
recommendations, one recommendation has been fully met, and 10 have been partially met. Serbia should 
fully implement the recommendations, including those only partially completed from the fourth round. 

Institutional framework 

The  institutional  framework  on  the  prevention  of  and  fight against  corruption is  largely  in  place  and is 
satisfactory regarding preventive measures, but it needs to be improved on law enforcement. 

The Agency for Prevention of Corruption started 264 procedures to determine violations of the Law on 
prevention  of  corruption  with  regard  to  conflicts  of  interest  (483  in  2022).  The  Agency  submitted  143 
requests to start misdemeanour proceedings on the failure to promptly submit asset declarations (201 in 
2022).  The  Agency’s  human  and  technical  resources  should  be  increased  to  carry  out  its  work  in  a 
comprehensive  manner.  The  Anti-Corruption  Council,  in  its  advisory  role  to  the  government,  issued 
informative reports on bankruptcy proceedings and grants funding. The fact that the authorities have still 

31 

 
 
 
not established a more constructive relationship with the Council remains a serious concern. In addition, 
the Council is still not systematically consulted on draft legislation. No steps have been taken to further 
strengthen the Anti-Corruption Council’s budgetary resources and staffing. 

The  Prosecutor’s  Office  for  Organised  Crime  remains  understaffed  and  lacks  adequate  premises  to 
accommodate new staff. An insufficient number of staff are allocated to the specialised organised crime 
unit in the police investigating high corruption offences. 

The special departments in higher prosecution offices should each have one financial forensic expert, but 
the positions remain vacant. 

Strategic documents 

Serbia adopted in July 2024 a national anti-corruption strategy for the period 2024-2028. Adoption of the 
accompanying action plan is pending. To ensure its effective implementation, Serbia should put adequate 
coordination  mechanisms  in  place,  as  well  as  an  effective  monitoring  and  evaluation  system  to  track 
progress. 

Legal framework 

The legal framework on the fight against corruption is in place but needs to be improved regarding both 
preventive measures and law enforcement. 

While the Law on prevention of corruption is generally well-designed, shortcomings exist. In particular, 
its scope does not extend to all high-ranking public officials who are particularly vulnerable to corruption. 
Amendments to this law have been prepared to comply with the recommendations of the GRECO fifth 
round  of  evaluations  and the  OSCE/ODIHR  recommendations  on the  financing  of  electoral  campaigns. 
Serbia has relevant legislation in the fields of access to information of public importance, lobbying and 
financing  of  political  activities.  However,  Serbia  needs  to  further  align  these  laws  with  the 
OSCE/ODIHR, OECD SIGMA (Support for Improvement in Governance and Management) and GRECO 
recommendations, The Agency for the Prevention of Corruption submitted an initiative to amend the Law 
on  financing  of  political  activities  to  the  Ministry  of  Finance,  to  align  the  Law  with  the  outstanding 
ODIHR  recommendations.  The  legal  framework  on  whistle-blower  protection  is  yet  to  be  aligned  with 
EU acquis. 

Regarding  areas  vulnerable  to  corruption,  amendments  to  the  Law  on  public  procurement  entered  into 
force in January 2024 which provide for more transparency. The risk of corruption remains high for cases 
of exemptions from the Law on public procurement that are not in line with the EU acquis, in particular in 
the context of intergovernmental agreements, which risk undermining its effectiveness in practice. In its 
reports,  the  State  Audit  Institution  (SAI)  identified  numerous  irregularities  in  the  area  of  public 
procurement. It is important that all entities, and in particular those with significant public expenditure, 
comply  with  the  SAI’s  recommendations.  The  SAI  is  understaffed  and  needs  further  technical  and 
financial resources to effectively oversee public spending.  

In terms of repression, the Law on the organisation and jurisdiction of state authorities in suppression of 
organised crime, terrorism and corruption does not regulate in sufficient detail the role and mandate of the 
Prosecutor’s  Office  for  Organised  Crime  as  the  coordinator  in  relation  to  the  special  departments  of 
offices of higher public prosecutors for the suppression of corruption. Serbia should take further steps to 
ensure effective coordination. 

Fundamental rights 

The general framework for fundamental rights needs to be improved. 

International human rights instruments 

32 

 
 
Serbia  has  ratified  the  main  international  human  rights  instruments,  including,  in  September  2023,  the 
Optional Protocol to the International Covenant on Economic, Social and Cultural Rights. Serbia needs to 
ensure consistent monitoring of implementation of legal tools in this field. 

European Court of Human Rights 

2112

10000

Graph 8: Serbia - ECtHR judgments 

During  the  reporting  period,  the  European  Court  of  Human  Rights  (ECtHR)  found  breaches  of  the 
European Convention on Human Rights relating mainly to the right to respect for private and family life, 
to the right to a fair trial and the general prohibition of discrimination. Currently, there are 23 cases under 
enhanced  supervision  by  the  Committee  of 
Ministers  of  the  Council  of  Europe.  These 
cases  concern  mainly  excessive  length  of 
judicial  or  commercial  proceedings  and  non-
enforcement  of  domestic  decisions  including 
against socially/state-owned companies as well 
as  ill-treatment  by  police.  Work  is  ongoing  to 
implement the mechanism providing individual 
redress  to  parents  in  cases  similar  to  that  of 
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.  Systematic  enforcement  of  ECtHR 
judgements  and  interim  measures  need  to  be  ensured  and  Serbia  needs  to  address  structural  problems 
raised by these cases including through adoption of legislative measures.  

New
allocated
applications

Pending
applications

16.06.2022 - 15.06.2023

16.06.2023 - 01.09.2024

Source: ECtHR

Judgments

Breaches

1818

1000

1667

950

100

10

10

10

31

1

8

Promotion and enforcement of human rights 

0

n/a

92

563

412

831

660

600

681

904

to 

3530

2023

2022

4000

3000

2000

1000

3935

3320

4367

5000

78,20

88,40

Graph 9: Serbia - Promotion and enforcement of human rights

The Ombudsman needs to 
address 
vocally 
more 
violations of human rights 
their 
and 
improve 
cooperation  with 
civil 
society.  The  Law  on  the 
Ombudsman requires only 
an  absolute  majority  for 
the 
election,  deviating 
Venice 
the 
from 
Principles  which  set  out 
that 
should 
preferably  be  elected  by 
an  appropriate  qualified 
The 
majority. 
Ombudsman’s  office 
is 
still  operating  with  fewer 
staff  than  set  out  in  the 
action  plan  for  Chapter  23,  staff  turnover continues to  hamper  efficiency,  and appropriate premises  are 
still  lacking.  Parliament  has  not  yet  held  a  plenary  discussion  on  the  Ombudsman’s  annual  reports  for 
2022  and  2023  and  it  is  not  sufficiently  clear  how  the  Ombudsman  checks  that  a  recommendation  has 
been  followed  up  appropriately.  The  Ombudsman  has  requested  the  review  of  the  constitutionality  of 
gender-sensitive language in the Law on gender equality, in the context of a wider backlash against this 
law. 

Complaints
Decisions
Recommendations to the authorities
Implementation of the recommendations by the authorities (% of the total)

Ombudsperson / National Human Rights
Institution

Equality body - Commissioner for
Equality

Source: Ombudsperson and Commissioner for Equality

n/a: not available

they 

86,30

2022

2023

33 

 
 
Prevention of torture and ill-treatment 

314

that 
of 

concluded 

Graph 10: Serbia - Torture / Ill treatments / Excessive use of 
force

The Ombudsman in their capacity as the National Preventive Mechanism against Torture should improve 
their cooperation with civil society. The European Committee for the Prevention of Torture and Inhuman 
or  Degrading  Treatment  or 
Punishments’ (CPT) report on 
its 2023 ad hoc visit to Serbia 
identified shortcomings in the 
investigations  of  torture  and 
other  forms  of  ill-treatment 
the 
and 
implementation 
the 
methodology for investigating 
such cases has not yielded the 
expected  results.  An  accurate 
recording of police interviews 
video 
with 
equipment  and  the  protection 
of the rights of individuals in 
remand  detention  and  of  the 
right  of  access  to  a  lawyer 
without  undue  delay  are  still  needed.  Serbia  has  still  not  revised  the  2019  Criminal  Code  amendments 
which introduced life imprisonment without the possibility of conditional release for a number of crimes, 
contrary to the European Convention on Human Rights and the related case law. 

Source: PPO, Ministry of Interior and Ministry of Justice, Prison administration

350
300
250
200
150
100
50
0

Administrative decisions*

Criminal convictions

Reported cases

*disciplinary measures

audio 

Prisons

and 

Police

2024

2023

2024

2023

65

25

16

11

8

3

0

0

0

5

0

Execution of criminal sanctions 

The  renovation  programme  continued 
in 
several prisons, but overcrowding, notably in 
pre-trial detention, and the overall conditions 
at  the  Belgrade  Special  Prison  Hospital,  are 
still  of  concern.  Resocialisation  programmes 
in 
the  pre-release  phase  of  a  custodial 
sentence  require  additional  support.  Most 
executed alternative penalties comprise house 
arrests,  and  the  use  of  community  penalties 
remains 
and 
employment  services  do  not  have  sufficient 
resources  to  satisfactorily  address  post-penal 
care. 

Probation, 

social 

low. 

Graph 11: Serbia - Prisons

88

90

98

24

19

15

Occupancy rate (%)

2022

2023

Average duration of pre-
trial detention (months)
2024

Source: Ministry of Justice / Prison administration 
Protection of personal data 

The  Law  on  personal  data 
protection  is  mostly  aligned  with 
the  EU  General  Data  Protection 
Regulation  (GDPR)  and  the  Law 
Enforcement  Directive 
(LED). 
However,  the  law  is  insufficient 
to  penalties  and 
with 
difficult  to  implement  in  practice 
as  it  includes  provisions  of  both 

regards 

120

100

80

60

40

20

0

34 

 
 
GDPR and LED. The process of harmonising all the other laws on the processing of personal data with 
the Law on personal data protection, which was due by the end of 2020, has been significantly delayed. 
Serbia adopted a strategy in this area in August 2023; however, an action plan has not yet been adopted. 
The  Office  of  the  Commissioner  for  Information  of  Public  Importance  and  Personal  Data  Protection 
works  with  110  staff  members,  falling  short  of  the  target  of  129  in  the  action  plan  for  Chapter  23. 
Following  the  Commissioner’s  previous  negative  opinions  on  the  Ministry  of  the  Interior’s  impact 
assessment on street video surveillance, a legal basis has not yet been developed . The proportionality and 
necessity of the proposed system of video surveillance in public spaces needs to be assessed. It has to be 
verified  whether  Serbia  processed  personal  data  by  facial recognition software,  which  is  banned  by the 
EU  Artificial  Intelligence  Act.  The  outcome  of  the  Commissioner’s  investigation  of  the  breach  of 
personal data of children after the May 2023 mass shootings became public only in March 2024, when the 
Commissioner  found  the  media,  not  the  police,  responsible  for  the  breach.  During  the  December  2023 
protests in the wake of the elections, tabloids published the personal data of some young protestors. As a 
result,  the  Commissioner  declared  himself  incompetent.  As  for  the  use  of  pensioners’  addresses  by  the 
ruling party for the purpose of electoral campaigning, the Commissioner initiated an inspection. Criminal 
complaint was filed for forging signatures and identity theft in the support of candidate lists. 

Freedom of religion or belief 

Freedom of religion or belief is constitutionally guaranteed and generally respected. The Law on churches 
and religious communities needs to be aligned with Council of Europe’s standards. Serbia continued to 
implement the Law on the restitution of heirless Jewish property. 

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

Freedom of expression 

Protection of journalists 

Cases of threats, intimidation, hate speech and violence against journalists, including female journalists, 
persist, including at local level. Recurrent statements by high-level officials on the daily and investigative 
work of journalists have a chilling effect on freedom of expression. The standing working group on the 
safety of journalists continued to the swift response of the police and the prosecution service in several 
cases of attacks and threats. In 2023, the public prosecution initiated 76 cases of criminal charges in this 
area, compared with 86 cases in 2022.  

Both journalist associations recorded an increase in the number of pressures and physical attacks against 
journalists. Attacks against two local journalists from Novi Sad, coming also from a ruling party MP, did 
not  receive  the  appropriate  level  of  public  condemnation  from  the  competent  authorities.  After  the 
inexplicably delayed publication in February 2024 of an acquittal decision at second instance court, the 
murder of Slavko Ćuruvija remains unpunished after 25 years. No progress has been made in the other 
two murder cases, one of which is now precluded from further investigation due to the absolute statute of 
limitations. A final conviction of a local official and the (reduced) prison sentence was confirmed in the 
re-trial regarding the case of the arson attack on the house of an investigative journalist. Cases of strategic 
lawsuits  against public  participation (SLAPPs)  increasingly  hinder the  work  of investigative media and 
civil society organisations. Serbia will need to align with the EU  acquis to cover the early dismissal of 
manifestly unfounded claims and remedies against abusive court proceedings. 

Legislative environment 

The  two  media  laws  adopted  in  October  2023  introduced  several  legislative  improvements,  including 
strengthening  the  legal  framework  for  the  independence  and  transparency  in  the  work  of  REM  and 
reinforcing its mandate to tackle threats to media pluralism. However, both laws must be further amended 
to fully align with the EU acquis and European standards. Following the new provisions that allow state-

35 

 
 
owned companies to be media owners, safeguards to protect media pluralism and editorial independence 
still need to be improved. It should be clarified that antitrust and merger control rules apply to the media 
sector. The possibility of journalists to report on ongoing criminal proceedings is excessively limited in 
the law. The new 2023-2025 media strategy action plan has not yet been adopted. 

Implementation of legislation/institutions 

The  media  laws  of  October  2023  have  been  inconsistently  implemented.  In  November  2023,  REM 
appointed  its  former  executive  director,  who  was  the  only  candidate,  as  director.  The  REM  Council  is 
awaiting a reset of its composition by November 2024, but the procedure has not been started yet. There 
is  an  ongoing  appeal  filed  by  REM  to  the  Constitutional  Court,  however,  legally  it  does  not  have  a 
suspensive  effect  on  implementation  of  the  law.  Despite  the  new  provisions  aimed  at  strengthening 
REM’s  independence  and  efficiency,  the  regulator  failed  to  fully  exercise  its  mandate  and  serious 
concerns regarding its independence in practice persist. It also introduced shorter deadlines for REM to 
act on complaints but in its final report on the parliamentary elections of December 2023, ODIHR found 
that REM ‘maintained a passive approach’. REM did not publish a comprehensive report, including the 
four channels with national frequency, on the electoral campaign. It also did not produce a report on the 
June  2024  local  elections,  which,  according  to  the  ODIHR  EOM  final  report,  “indicates  ongoing 
problems  in  effectively  overseeing  media  coverage  and  providing  timely  remedies  for  possible 
violations”. Following the adoption of new legislation in 2023, REM adopted 15 by-laws in May 2024. 
Although  reflecting  a  number  of  requirements  from  the  Audiovisual  Media  Services  Directive,  the  by-
laws did not fully address the concerns raised in the preceding public debate, notably on monitoring of 
electoral campaigns. The competition for the allocation of the fifth frequency for national broadcasting, 
launched  in  2022,  has  still  not  been  finalised  and  no  justified  reason  has  been  given.  Serbia  must  take 
urgent action to counter anti-EU narratives propagated by numerous media outlets, and to counter foreign 
information manipulation and interference, most obviously in the context of Russia’s war of aggression 
against Ukraine. According to the 2023 Commissioner for Information of Public Importance report, the 
percentage of unexecuted Commissioner’s decisions on complaints by journalists is higher than for other 
complainants, and the authorities often justify the non-disclosure of information on the grounds that the 
requests come from journalists. 

Public service broadcaster 

The law on public broadcasters is yet to be amended to address the shortcomings identified by the media 
strategy. Issues of editorial autonomy and pluralism need to be addressed. Biased reporting in favour of 
the government is supported by aggregated data: ODIHR found that during the December 2023 election 
campaign  “some  64%  of  the  non-election-related  news  on  RTS1  […]  and  52%  of  the  regional  public 
RTV1 featured the president”. This disparity is more pronounced in non-electoral periods. A local CSO 
found that  during the  January  2023 to June  2024  period, the  ruling  party  was  covered  in  92% (in  94% 
during the Belgrade election campaign) of airtime in the central RTS news broadcasts, compared with 8% 
for opposition parties. 

Economic factors 

Political and economic influence on the media remains a source of concern. A large number of registered 
media  combined  with  a  limited  advertising  market  produce  economic  uncertainty,  especially  at  local 
level. Therefore, media often strongly depend on public co-funding. The new law improved provisions on 
the  transparency  of  such  calls  by  laying  down  binding  criteria  to  comply  with  the  Code  of  Ethics,  as 
monitored by the Press Council. New calls were published in early 2024 with significantly reduced public 
funding  in  a  number  of  municipalities,  and  the  remaining  public  funding  is  awarded  through  less 
transparent processes, such as the procurement of information services and advertising. 

Professional organisations and working conditions 

36 

 
 
Journalists and other media professionals have been working in adverse conditions, often without suitable 
work  contracts  and  unstable  financing.  There  are  several  trade  unions  but  no  clear  data  on  their 
representativeness. The new law provides for an improved framework on working conditions and rights 
of journalists. The effects in practice are yet to be seen. 

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

Freedom of assembly and association 

While legislation on freedom of assembly and association is generally in line with European standards, 
Serbia has yet to align further with the joint Venice  Commission and the OSCE/ODIHR Guidelines on 
Freedom  of  Peaceful  Assembly.  In  its  Conclusions  of  March  2024,  the  UN  Human  Rights  Committee 
expressed concern over the notification requirements in the Law on public assembly and recommended 
that  Serbia  amend  its  legislation.  Several  peaceful  protests  took  place  in  the  wake  of  the  December 
elections. One of these saw violent incidents and a number of arrests and charges of ‘incitement to the 
violent  overthrow  of  constitutional  order’  against  the  participants  and  subsequent  plea  bargains.  There 
were also allegations of police brutality, including against journalists. In June 2024, the Ministry of the 
Interior failed to meet its obligation to ensure a safe environment and instead banned the ‘Mirëdita, Dobar 
Dan’ festival in Belgrade, a civil society initiative that contributes to building bridges between the people 
in Kosovo and Serbia through cultural activities. Following protests against lithium exploitation that took 
place throughout Serbia during the summer, there were reports of arrests, house searches and seizures of 
IT equipment of ecological activists. 

Labour and trade union rights are covered in Chapter 19 – Social policy and employment. 

Property rights 

The institutional and legal framework is in place. Enforcement through the judicial and restitution system 
can  be  slow  and  complicated  in  some  cases.  The  Agency  for  Restitution  continued  with  restitutions  in 
kind  of  confiscated  properties.  The  government  also  issued  bonds  when  restitution  in  kind  was  not 
possible. 

Non-discrimination 

Further work is required to align the law with the EU acquis and European standards. The Criminal Code 
relating to prohibition and punishment of criminal racial acts has yet to be aligned with the EU  acquis. 
The  adoption  of  2024-2025  anti-discrimination  strategy  action  plan  is  pending.  In  its  Conclusions  of 
March  2024,  the  UN  Human  Rights  Committee  pointed  out  shortcomings  in  data  collection  on 
discrimination cases and noted the low number of convictions.  The Office of the Commissioner for the 
Protection of Equality has still not been provided with adequate human resources by the Government, in 
line with the staff systematisation decision. Hate speech, threats and violence continued to target human 
rights defenders, the Roma community, lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ), 
and migrants. Centralised official data on hate crimes, broken down by bias motivation, is still lacking. 

Gender equality 

The Law on gender equality and the Law on the prohibition of discrimination were aligned with the EU 
acquis in 2021 but need to be further aligned with European standards. In June 2024, the Constitutional 
Court  suspended  the  adoption  of  certain  acts  deriving  from  this  law,  notably  on  gender-sensitive 
language, until the completion of the constitutionality assessment process. This risks to have a detrimental 
impact  on  the  application  of  the  Law  on  gender  equality  in  its  entirety  and  undermine  the  progress 
achieved  so  far.  More  efforts  are  needed  to  enforce  the  legal  obligation  of  including  the  gender 
perspective and removing gender stereotypes from textbooks, challenging gender stereotypes in the public 
discourse  and  collecting  official  sex-disaggregated  data.  Roma  women,  older  women,  poor  women, 
women  with  disabilities,  refugee  and  internally  displaced  women,  continue  to  experience  multiple  and 

37 

 
 
intersecting  forms  of  discrimination.  ODIHR  noted  in  its  final  report  on  the  December  elections  the 
underrepresentation of women in the campaign and recommended additional incentives. 

27

26

28

by 

6071

6274

6349

31980

33931

30930

Police reports

integrated 

Final criminal
convictions

40000
35000
30000
25000
20000
15000
10000
5000
0

Graph 13: Serbia - Violence against women (including 
domestic and sexual violence)

The action plan and related funding 
the  2021  strategy  against 
for 
and 
against  women 
violence 
domestic violence, and a new action 
plan  on  UN  Security  Council 
Resolution  1325  on Women,  Peace 
increasingly 
and  Security,  are 
delayed.  An 
system 
needs to be set up for collecting and 
cases  of  violence 
monitoring 
disaggregated  by  type  of  violence 
and 
between 
relationship 
perpetrator  and  victim.  Serbia  still 
lacks  reliable  official  statistics  on 
femicides.  Cases  of  obstetric 
violence,  with  patients 
lacking 
proper medical support and information, have been reported. The Ombudsman initiated an investigation 
in  January  in  a  case  of  a  Roma  mother.  Recommendations  by  the  Group  of  Experts  on  Action  against 
Violence against Women and Domestic Violence (GREVIO) have yet to be addressed, such as amending 
the definition of rape in the Criminal Code to comply with the Istanbul Convention ratified by Serbia. The 
very  few  support  services  for  gender-based  violence  are  predominantly  run  by  CSOs  and  operate  on  a 
limited  budget.  The  transparency  and  fairness  of  public  funding  in  this  area  needs  to  be  significantly 
improved,  including  in  demonstrating  that  spent  funds  have  contributed  to  the  public  interest.  Police 
protocols do not mandate cooperation with specialist support services or the routine referral of victims, 
resulting in the underuse of existing CSO expertise. The law against domestic violence does not assign 
women CSOs a standard role in drawing up individual protection plans, as recommended by GREVIO, 
but  leaves  their  participation  to  the  discretion  of  the  relevant  prosecutor’s  office.  The  legal  provision 
offering  victims  the  possibility  to  participate  in  the  creation  of  individual  protection  plans  needs  to  be 
enforced. Safe houses for victims of gender-based violence lack staffing and adequate funding. Attention 
needs to  be  paid to ensuring  equal  access to  safe  houses for  all  women,  including refugee and migrant 
women, transgender women and women from other marginalised groups. Appropriate funding is needed 
to ensure implementation of the national programme on sexual and reproductive health. 

Violence against women

Source: Ministry of Interior

Femicides

2021

2022

.

Rights of the child 

Serbia  has  yet  to  ratify  the  UN  Convention  on  the  Rights  of  the  Child’s  third  optional  protocol  on  a 
communication  procedure.  The  Council  on  the  rights  of  the  child  did  not  meet  in  2023  and  was  re-
established only in March 2024. It has yet to be supported by a technical body and a cross-sectoral group. 
No  national  action  plan  for  the  rights  of  the  child  is  in  place.  The  strategy  related  to  violence  against 
children  expired  in  2023  without  an  evaluation.  After  the  mass  school  shooting  in  May  2023,  Serbia 
adopted a rulebook on the response of education institutions to peer violence. Upgraded sectoral protocols 
are needed following the previous adoption of a general protocol for the protection of children from abuse 
and neglect. 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  needs  to  address  the  Lanzarote  Committee’s  recommendations  on  the  Convention  on  the 
Protection of Children against Sexual Exploitation and Sexual Abuse. It needs to amend its family law to 
explicitly prohibit corporal punishment of children in the family and to ban child marriage. A new Law on 
juvenile offenders and protection of minors in criminal proceedings has yet to be adopted to align with the 

38 

 
 
EU acquis and international standards. Statistical data on vulnerable groups, disaggregated by age and sex 
and  including  Roma  children  and  children  with  disabilities,  is  still  needed.  Although  a  relatively  small 
number of children are placed in institutional care (under 100 children per 100 000 children), violations of 
child rights in large-scale institutions remain a concern. 

Persons with disabilities 

Serbia needs to ensure implementation of the provisions of the UNCRPD. On the rights of persons with 
disabilities, implementation reports for 2022 and 2023 on the related strategy have yet to be published. 
Serbia  has yet  to  adopt  implementing  legislation for the  December  2021  Law  on  temporary social  care 
residents. 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 individuals concerned, as noted in the 2022 CPT report. Amendments to the family law, 
aimed at abolishing the existing system of complete deprivation of legal capacity, have yet to be adopted. 
The delay in adopting the action plan and related funding for the 2022 strategy on deinstitutionalisation is 
of increasing concern. Women with disabilities in residential institutions continue to face gender-specific 
forms  of  violence.  Children  with  disabilities,  who  are  vulnerable  to  multiple  forms  of  exclusion  and 
abuse, constitute the largest group of children in institutions as they are over-represented (70%) among 
children living in residential large-scale institutions. 

LGBTIQ persons 

There were no developments on the draft law on same-sex partnerships, nor on regulation of legal gender 
recognition, as already planned in the previous anti-discrimination strategy. Difficulties remain, especially 
in smaller municipalities, in implementing amendments to the Law on birth registry, which enable data on 
gender changes to be entered into the registry. As an observer to the work of the European Union Agency 
for Fundamental Rights, Serbia was covered by the III LGBTIQ Trust Survey, which found that overall, 
in Serbia in 2023, 45% felt discriminated against in at least one area of life in the year before the survey 
(for the EU-27 it was 37%). The implementation of hate crime legislation, including on grounds of sexual 
orientation,  remains  inadequate.  The  premises  of  the  Pride  Info  Centre  in  Belgrade  were  subject  to 
multiple  attacks  and  in  September  2024  the  Centre  closed  due  to  lack  of  financial  and  institutional 
support. The Ombudsman initiated an investigation on alleged excessive use of force by the police against 
two LGBTIQ persons at their home. The criminal complaint into this case is pending with the prosecution 
office.  LGBTIQ  persons,  and  in  particular  transgender  persons,  are  vulnerable  to  violence,  abuse  and 
discrimination. Due to a lack of trust in institutions and fear of secondary victimisation, cases of violence 
and discrimination towards LGBTIQ persons are often unreported. Intersex persons remain invisible both 
socially and legally. 

Procedural rights and victims’ rights 

The  legal  framework  is  only  partially  aligned  with  the  EU  acquis.  Continued  efforts  are  required  to 
establish the national network of general and specialised victim support providers, as well as to allocate 
appropriate  state  funding  for  staffing  the  general  nationwide  victim  support  services  at  high  courts.  An 
effective  referral  mechanism  is  lacking.  Regarding  access  to  justice,  there  is  a  need  to  improve  the 
capacity  of  local  self-governments  dealing  with  legal  aid  requests.  An  analysis  of  the  necessary 
amendments to the Law on free legal aid was finalised but adoption is delayed. 

Protection of minorities 

The legal framework for respect for and protection of persons belonging to minorities is broadly in place 
and generally upheld, in line with the Council of Europe Framework Convention on National Minorities. 
The fourth opinion of the Council’s Advisory Committee needs to be taken into account when finalising 
the new action plan for the realisation of the rights of national minorities, which is increasingly delayed. 
The proper functioning and independence of national minority councils remains important. Members of 
the  Albanian  national  minority  raised  concerns  about  the  way  police  were  checking  residence  status  in 

39 

 
 
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. The implementation of the action plan 
for  improvements  in  the  representation  of  Albanians  in  institutions  needs  to  be  stepped  up  and  lead  to 
tangible  improvements.  National  minorities  remain  underrepresented  in  public  administration  and  the 
police.  Progress  on  printing  certain  textbooks  in  minority  languages  needs  to  be  further  intensified,  as 
well as teaching Serbian as an additional language. Access to religious worship in minority languages has 
yet to be enabled throughout Serbia, as assessed by the Council of Europe. Public broadcasting services in 
minority languages are still not sufficient, except for some local broadcasters in Vojvodina.  There have 
been instances of hate speech against national minorities in the media and by MPs. 

Roma 

Regarding  Roma  inclusion,  robust  monitoring  and  data  collection  is  needed  to  deliver  on  the 
commitments made in the Poznan Declaration. 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  financial  resources.  Most  Roma  people  in  Serbia  have  civil 
documentation.  The  procedure  for  registering  all  births,  regardless  of  the  parents’  status,  needs  to  be 
implemented  effectively  and  monitored.  Roma  pupils  continued  to  receive  scholarships  through 
affirmative measures. School dropout rates remain high, especially for Roma girls. Roma pupils are still 
over-represented in special-needs schools and classes. Transition from education to the labour market is 
particularly  challenging.  Roma  people  are  still  under-represented  in  public  administration.  The 
legalisation of Roma settlements needs to be addressed as a matter of priority. Forced evictions are still 
taking place, which is in breach of the law and international standards. Early and child marriage remains 
an  issue  of  concern  among  Roma  girls  living  in  settlements.  Domestic  violence  also  often  goes 
unreported. 

Refugees and internally displaced persons 

As  of  July  2023,  there  were  194 171  internally  displaced  persons  (IDPs)  in  Serbia,  of  whom  68 500 
remain  vulnerable  and  with  displacement-related  needs.  The  closure  of  the  last  collective  centre  in 
Bujanovac is ongoing. A new strategy for IDPs needs to be adopted. 

2.2.2  Chapter 24: Justice, freedom and security 

The  EU  has  common  rules  for  border  control,  visas,  external  migration  and  asylum.  Schengen 
cooperation  entails  the  lifting  of  border  controls  inside  the  EU.  There  is  also  cooperation  in  the  fight 
against organised crime and terrorism, and judicial, police and customs cooperation, all with the support 
of the EU Justice and Home Affairs agencies. 

Fight against organised crime  

Serbia is yet to finalise ongoing work to align its legal framework on organised crime with the EU acquis. 

Institutional set up and legal alignment 

The Prosecutor’s Office for Organised Crime (POOC) and the Special Prosecutor’s Office for Cybercrime 
(SPOC)  lacks  sufficient  human,  material,  and  technical  resources  to  carry  out  their  tasks.  The  police 
services still require a shared case / workflow management system, connecting all institutions and giving 
them access to a common database. Serbia should continue to work towards ensuring a fully operational 
national  criminal  intelligence  system.  Serbia  should  take  relevant  steps  to  make  the  Asset  Recovery 
Office fully operational, including by ensuring access to all relevant databases. 

Serbia’s  legal  framework  on  police  cooperation  and  organised  crime  is  not  fully  aligned  with  the  EU 
acquis.  Neither  does  it  guarantee  the  police’s  operational  autonomy  from  the  Ministry  of  the  Interior 
during the pre-investigation and investigation phases, to be fully accountable only to the prosecutor. The 
new  Law  on  internal  affairs  will  have  to  address  both  this  issue  and  the  recommendations  of  the 

40 

 
 
Committee for the Prevention of Torture (CPT). Amendments to the Law on organisation and competence 
of  state  authorities  in  suppression  of  organised  crime,  terrorism  and  corruption  should  be  adopted  to 
improve the institutional set up in the fight against organised crime. 

Serbia has yet to conduct an analysis of the roles and practices of security services in investigations into 
serious and organised crime cases. The current criminal procedure code provides for covert interception 
of  communication  to  be  executed  also  by  the  Security  Information  Agency  (BIA)  and  the  Military 
Security Agency. This should be subject to an analysis to see whether it is in line with EU best practices. 
The use of security services in criminal proceedings should be forbidden or limited to exceptional cases 
regarding  the  interception of  communications.  A  clear  separation  needs to  be made  between the  remits 
and regulations for criminal investigations and those for security purposes. 

Amendments to the Criminal Code to appropriately criminalise the trafficking of weapons were not yet 
adopted. Alignment of the Law on weapons and ammunitions with the EU acquis is also not yet finalised. 

Serbia continued to implement the action plan for the strategy against money laundering and financing of 
terrorism (2020-2024) in a satisfactory manner. Amendments to the Law on the seizure and confiscation 
of the proceeds of crime are still pending. 

In March 2024, Serbia adopted the programme for the fight against human trafficking (2024-2029) and 
action  plan  for  2024-2026.  A  new  National  Coordinator  for  the  fight  against  human  trafficking  was 
appointed  in  September  2023.  The  Council  for  Combating  Trafficking  in  Human  Beings  was  re-
established in July 2023, and held a first meeting in December 2023. Serbia continued to implement the 
action plan for the strategy for the control of small arms and light weapons (2019-2024). The Firearms 
Focal Point is fully operational. 

The  strategy and action  plan  for  the  fight against  cybercrime  expired at  the  end  of  2023.  The  Criminal 
Code and the Criminal Procedure Code are not yet harmonised with the Second Additional Protocol to the 
Council of Europe Budapest Convention on Cybercrime. 

In December 2023, Serbia adopted a new SOCTA (Serious and Organised Crime Threat Assessment) to 
set operational priorities for fighting serious and organised crime for 2024-2027. 

Implementation and enforcement capacity 

In 2023, whilst there was a significant increase in the number of individuals indicted for organised crime 
(251  compared  to  132  in  2022),  there  was  a  decrease  in  the  number  of  individuals  convicted  and  of 
individuals under investigation. The number of cases in final rulings was the same in 2023 as in 2022 at 
189, while the number of new investigations remained stable (29 in 2023 compared to 31 in 2022). The 
use  of  plea  agreements  needs  to  be  carefully  balanced  against  the  need  to  avoid  any  impression  of 
impunity  in  serious  and  organised  crime  cases.  The  number  of  proactive  investigations,  based  on 
intelligence-led  policing,  focusing  on  high  profile  cases  aiming  at  dismantling  big  and  international 
criminal organisations should be increased. 

41 

 
 
17 

the 

under 
  Given 

individuals 
total  21 
 Of 
convicted  for  trafficking 
in 
human beings, four individuals 
were convicted in the context of 
organised  crime  (14  in  2022) 
general 
and 
the 
jurisdiction. 
migratory 
its 
territory,  Serbia  needs  to  build 
the  capacity  to  detect  possible 
third-country 
of 
victims 
trafficking 
in  human  beings, 
including  through  the  abuse  of 
visa-free regimes. 

through 

flows 

Graph 14: Serbia - Serious* and organised crime cases

2213

3759

2682

2005

10000

1000

170

250

187

202

236

292

256

132

2246

3836

2675

2075

2005

3993

2615

1813

164

210

251

176

100

10

1

Organised
crimes

Serious
crimes

Organised
crimes

Serious
crimes

Organised
crimes

Serious
crimes

2021

the  Centre 

2022
Number of individuals / legal entities under
Investigation
Individuals / legal entities indicted

In  2023, 
for 
protection  of  victims  of  human 
trafficking  identified  66  victims 
of human trafficking (62 victims 
in 2022) and requested the status 
of  an  especially  vulnerable 
witness  for  all  of  them.  It  is 
essential  to  provide  all  victims 
of  human 
trafficking  with 
proper  protection  during  trials,  including  granting  them  the  status  of  an  especially  vulnerable  witness. 
This  is  important  not  only  to  avoid  re-victimisation  but  also  to  collect  evidence  of  force,  threat  or 
exploitation, as required by the Criminal Code for this offence. 

*Data  on  serious  crime  cases  stem  from  the  aggregation  of  cases  of  money  laundering,  cybercrime,  production  and 
trafficking of drugs, firearms related offenses, terrorism, trafficking in human beings and smuggling of persons. Corruption 
cases are showcased in Chapter 23. 

Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

2023

The well-established cooperation with CEPOL, Eurojust, Europol and INTERPOL continued, leading to 
arrests in serious and organised crime cases, and disruption of organised criminal groups. In 2023, a total 
of  10 098  messages  were  exchanged  via  SIENA  (9 156  in  2022).  Serbia  participates  in  the  European 
Multidisciplinary Platform Against Criminal Threats (EMPACT).  

Following  the  two  tragic  mass  shootings  in  May  2023,  a  voluntary  firearms  (both  legal  and  illegal) 
surrender  campaign  resulted  in  the  collection  of  approximately  117 000  weapons,  26 000  explosive 
devices  and  over  4  million  pieces  of  ammunition  in  2023.  The  ballistic  laboratory  was  accredited  ISO 
17025 norm in November 2023. Serbia continued to engage positively on the implementation of the EU 
Roadmap on small arms and light weapons control (SALW). However, further efforts are needed in the 
fight against the storage, sale and ownership of illegal firearms, registration of surrendered weapon and 
arms’ trafficking. In 2023, four individuals were convicted under firearms-related offences in the context 
of organised crime and four new investigations were initiated. 

In  2023,  38  people  were  convicted  for  the  criminal  offence  of  ‘showing,  procuring  and  possession  of 
pornographic material and child pornography’ (50 in 2022). Indictments were filed against 34 defendants 
(40 in 2022). 

As regards the fight against money laundering and based on the indictments by the special prosecutor for 
organised  crime,  five  individuals  were  convicted  in  2023  (three  in  2022).  In  2023, 41 individuals  were 
convicted (final decision) for money laundering in  courts of general jurisdiction. (See also Chapter 4  – 
Free movement of capital) 

Financial investigations that apply a ‘follow the money to find the crime’ approach, especially in cases of 
inexplicable wealth, are still not conducted consistently during criminal investigations. Proactive criminal 
investigations  are  needed,  including  pre-seizure  planning  and  a  systematic  tracking  of  money  flows, 

42 

 
 
aimed not only at asset recovery, but also at gathering circumstantial evidence of inexplicable wealth. In 
2023,  financial  investigations  were initiated  in  125  cases  of serious  and  organised  crime (145 in  2022) 
and there were temporary freezing and seizure of assets and final confiscations of assets in 20 and 513 
cases respectively.  

Cooperation in the field of drugs 

Cooperation in the field of drugs is satisfactory. 

Institutional set up and legal alignment 

that 

Serbia’s  legislative framework for psychoactive  substances  has  been  in  force  since  2021.  The  Criminal 
Procedure  Code  which  still 
requires 
the  entire 
seized  quantity  be  kept  as 
material  evidence  for  court 
proceedings  needs 
to  be 
amended. 

Graph 15: Serbia - Cases related to production and trafficking 
of drugs

1733

1500

1817

1665

1220

2000

972

1177

1058

1017

837

908

919

772

500

1000

to 

has 

a  well-
Serbia 
established  national  early-
warning  system 
liaise 
with  the  EU  Drugs  Agency 
(EUDA) 
new 
psychoactive substances and 
trends.  In  2023,  the  list  of 
controlled 
psychoactive 
substances  was  updated 
once and a total of nine new psychoactive substances were added to the list of banned substances. 

Number of
individuals / legal
entities under
Investigation

2022
Source: National data collected via the organised
crime and corruption track record (OCCTR) e-platform

Individuals / legal
entities indicted

Final court decision Final convictions

2021

2023

on 

0

Serbia’s National Drugs Observatory (NDO) is fully staffed and operational. 73 out of 80 positions within 
the Drug Combating Service are filled. 

The national drug strategy expired in 2021 and a new document is not yet in place. 

Implementation and enforcement capacity 

Of  the  772  final  convictions  in  2023  for  drug  production  and  trafficking,  six  were  in  the  context  of 
organised crime. 

Fight against terrorism 

Fight against terrorism needs to be improved. 

Institutional set up and legal alignment 

Serbia  did  not  adopt  or  amend  legislation  to  further  align  its  legal  framework  with  the  EU  acquis  on 
counterterrorism,  which  overall  is  largely  aligned.  Serbia  is  taking  steps  to  further  align  its  legislative 
framework on critical infrastructure with the EU acquis. 

A  National  Coordinator  and  the  National  Coordination  Body  for  the  Prevention  and  Combating  of 
Terrorism was appointed in July 2023. The new strategic document is not yet drafted despite the previous 
strategy having expired in 2021. Serbia adopted a report on the implementation of the previous strategy in 
October 2023. 

Implementation and enforcement capacity 

43 

 
 
Serbia submitted the eighth report on the implementation of the bilateral arrangement in the framework of 
EU-Western Balkans Joint Action Plan on Counterterrorism for the Western Balkans in February 2024. 
Serbia has made limited progress in implementing the Joint Action Plan. 

The national database for the prevention and fight against terrorism is operational since June 2023. 

In  2023,  there  were  no  convictions  for  terrorist  offences.  The  Prosecutors’  Office  for  Organised  Crime 
filed an indictment against one person for the offence of ‘public incitement to commit terrorist offences’ 
(Article 391a Criminal Code). 

Serbia actively participated in several Europol analysis projects and in CEPOL activities. Serbia also took 
part in a number of INTERPOL operations and projects (e.g. Hotspot Adriatic 2023). 

In  parallel  to  conducting  pre-investigative  actions  aimed  at  discovering,  proving  and  prosecuting 
terrorism,  pre-investigative  actions  aimed  at  discovering  and  proving  the  financing  of  terrorism  were 
undertaken (72 individuals and two citizens’ associations were checked). There were no final convictions 

Graph 16: Serbia - Requests for mutual assistance in civil and 
criminal matters

6000

5000

4000

3825

3413

3000

2433

1392

2000

1000

0

4649

4871

4396

3438

3487

3311

3359

2980

1960

1453

1536

1444

2356

1488

868

1211

1384

1085

1
2
0
2

2
2
0
2

3
2
0
2

1
2
0
2

2
2
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3
2
0
2

4
2
0
2

)
l

a
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s
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v
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(

Civil

Criminal

2607

752

4
2
0
2

)
l

a
n
o
i
s
i
v
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r
p
(

for financing of terrorism. 

Judicial  cooperation 
in 
civil and criminal matters 

to  be 

cooperation 

Judicial 
in 
civil  and  criminal  matters 
improved. 
needs 
Serbia  should  reform  its 
legal  framework  to  enable 
more  efficient  cooperation 
and  increase  institutional 
capacity 
reduce 
to 
processing times. 

Reporting continued on the 
implementation of the 2007 
Hague  Convention 
on 
Child  Support  (HCCH),  in 
force since February 2021. 

Incoming requests

Outgoing requests

Total

Source: Ministry of Interior

In  2023,  Serbia  worked  on 
2 980  new  requests  for  mutual  assistance  in  civil  matters  and  resolved  4 022  cases  (including  from the 
previous period). The average duration of the procedure for providing mutual legal assistance (MLA) was 
392 days. 

Eurojust  and  Serbia  have  continued  their  good  cooperation  in  criminal  matters,  notably  through  the 
Serbian Liaison Prosecutor. There was one new joint investigation team (JIT) in 2023, in addition to four 
from  the  previous  period.  The  draft  Working  Agreement  on  cooperation  with  the  European  Public 
Prosecutor’s Office (EPPO) is pending the opinion of the Ministry of Justice. 

In 2023, Serbia worked on 4 126 new requests for MLA in criminal matters and resolved 4 988 (including 
from the previous period). The average duration of the procedure for providing MLA was 465 days. 

The Criminal Code and Criminal Procedure Code still need to be aligned with the EU acquis. 

Legal and irregular migration 

The management of legal and irregular migration is satisfactory. 

Institutional set up and legal alignment 

44 

 
 
The legislative framework for the management of external borders and asylum is largely aligned with the 
EU acquis. However, further alignment, as well as improved implementation, is still needed to ensure fair 
and fast asylum processing. 

Serbia contributed to the management of the mixed migration flows towards the EU and cooperated with 
the EU, EU Member States, and its neighbours to implement the EU Action Plan on the Western Balkans. 
Serbia intensified  border  controls  and  police  operations  targeting migrant  smugglers.  Further  alignment 
with EU visa policy and additional progress along all the pillars of the Action Plan is expected. 

Amendments to the  Law  on  foreigners  and  the  Law on  employment of foreigners entered  into force in 
August 2023. They extended temporary residence permits from 1 to 3 years and granted holders the right 
to apply for permanent residence after residing in Serbia for 3-consecutive years (down from 5). 

In March 2024, Serbia extended by 1 year the temporary protection it affords to all people having fled 
Russia’s war of aggression against Ukraine. The response plan for the management of mixed migration 
was updated and approved by the government in March 2024. 

In terms of combating irregular migration, implementation of the integrated border management strategy 
(2022- 2027) and accompanying action plan (2022-2024) is delayed. 

As  an  observer  in  the  European  Migration  Network,  Serbia  organised  its  first  conference  in  December 
2023 focusing on circular migration. 

Implementation and enforcement capacity 

Serbia continues to host a substantial number of third-country nationals with EU support. 

Negotiations on readmission agreements are ongoing with Türkiye, Iceland, Argentina, Belarus, Georgia, 
and Ukraine. Efforts to establish cooperation with countries of origin of irregular migrants continue with 
Morocco, Bangladesh, Afghanistan, Algeria, Iraq, Iran, and Pakistan. 

Graph 17: Serbia - Number of irregular 
movements  

60100

52429

43474

36547

27413

70000

60000

50000

40000

30000

20000

13646

3542

3706

10000

0

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f
A

2021

2022

2023

*People intercepted while attempting
to cross the borders whose nationality is unknown.

Source: Ministry of Interior

control of movements continued in the first quarter of 2024. 

Asylum 

45 

The  number  of 
irregular  movements 
through  Serbia  fell  in  2023  from  the 
previous  year  (60 100  in  2022  to  43 474 
in 2023). The number of smuggling cases 
rose sharply from 1 909 in 2022 to 4 064 
in 2023. 

launched  a 

the  country, 

Serbia 
large-scale  police 
operation  in  the  last  quarter  of  2023, 
targeting smugglers and migrants illegally 
present  in  the  country.  In  August  2024, 
due  to  the  significantly  lower  number  of 
migrants  present 
the 
in 
Commissariat for Refugees and Migration 
decided  to  reduce  the  capacity  of  the 
reception  and  asylum  system.  Seven  out 
of  17  centres  are  operational  at  the 
southern  and  western  borders  and  near 
Belgrade.  A  contingency  plan  is  in  place 
in  case  of  a  sudden  increase.  Overall, 
reception  capacities  are  adequate.  The 
intensified 
police  operation  and 

the 

 
 
The management of asylum needs to be improved. 

Institutional set up and legal alignment 

Serbia’s legal framework is largely aligned with the EU acquis but further alignment, as well as improved 
implementation, is still needed to ensure fair and fast asylum processing. 

Serbia  has  the  institutions  needed  to  manage  asylum  applications.  A  new  Head  of  Asylum  Office  was 
appointed in September 2023 to supervise the work of the asylum and registration officers and to ensure 
the overall quality of asylum decisions. 

The third roadmap for cooperation (2024-2026) with the European Union Agency for Asylum  (EUAA) 
has been developed and its final endorsement is pending. 

A  rulebook  on  the  appearance  and  content  of  travel  document  form  for  refugees  was  adopted  in 
November 2023, allowing the Asylum Office to issue travel documents to refugees as provided for by the 
Law  of  asylum  and  temporary  protection.  As  of  February  2024,  the  Office  started  issuing  travel 
documents for refugees. 

Implementation and enforcement capacity 

The number of asylum seekers fell in 2023 compared with previous years. Of the 1 654 (4 155 in 2022) 
individuals  who  expressed  an  intention  to  seek  asylum,  only  196  lodged  an  asylum  application.  The 
absconding  rate  remained  high,  exceeding  50%.  In  2023,  only  seven  asylum  seekers  received  refugee 
status, two received subsidiary protection while 51 had their asylum request denied. 

In  2023,  Serbia  granted  403  Ukrainian  citizens  temporary  protection  and  extended  protection  for  743 
people. 

Graph 18: Serbia - Asylum applications 

320

172 180

196

28

22

14

40

20

34

38

27

350

300

250

200

150

100

50

0

The  quality  of  asylum  decisions  needs  to 
be  further  improved.  Efforts  have  been 
made  to  develop  the  country  of  origin 
information  functions  within  the  Asylum 
Department. The Asylum Commission and 
the  Administrative  Court  need  to  apply 
their  corrective  influence  of  the  Asylum 
Office’s  decisions  more  effectively  and 
review  cases  based  on  merit.  Further 
advanced  training  is  needed.  The  state-
funded  free  legal  aid  mechanism  in  the 
asylum procedure needs to be improved. 

i

d
n
u
r
u
B

n
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r
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B

The  basic  legal  framework  for  integration 
exists, 
for 
individual integration plans.  However, the 
quality  of  ID  documents  to  facilitate 
access 
rights  and 
services,  and  the  predictability  and  scope 
of integration schemes (e.g. for the acquisition of skills, language proficiency, and integration of persons 
with disabilities) continue to be major obstacles to integration. 

including  good  practice 

to  socio-economic 

Source: Ministry of Interior / Justice

2022

2023

2021

Visa policy 

The national visa regime is not yet fully aligned with that of the EU as Serbia still has a visa-free regime 
with  16  countries  that  are  on  the  EU  list  of  visa-required  countries.  Serbia’s  visa  issuing  system  is 
partially in line with the EU Visa Code. Serbia did not take steps to further align its visa policy with the 

46 

 
 
EU’s list of visa-required countries in the reporting period. However, Serbia’s reform agenda committed 
the country to withdraw visa-free arrangements with at least three countries by December 2024. 

In 2023, Serbia further tightened its requirements for obtaining entry visas. 

According to Eurostat, 4 635 Serbia nationals applied for asylum in the EU27 in 2023 (compared to 4 220 
in 2022). 

Schengen and external borders 

The legislative framework for the management of external borders is largely aligned with the EU acquis. 

Institutional set up and legal alignment 

Continued  efforts  are  needed  to  align  with  and  implement  EU  requirements.  Issues  relating  to  national 
borders are governed by the Law on border control. 

Serbian  authorities  have  a  well-established  cooperation  with  the  European  Border  and  Coast  Guard 
Agency (Frontex). The new status agreement between the EU and Serbia, signed on  25 June 2024, will 
enable deployment of Frontex standing corps also at third-country borders, once it enters into force. 

Implementation and enforcement capacity 

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 EU Schengen requirements. A national coordination 
centre  is  not  yet  established.  Serbia  should  also  increase  the  capacity  of  all  stakeholders  in  integrated 
border management (IBM) 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 advance passenger information (API), and the use of passenger name record (PNR) data for 
the prevention, detection, investigation and prosecution of terrorist offences and serious crime. 

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. 

The IBM Coordination Body for monitoring the strategy and action plan was appointed in June 2023 and 
a first implementation report was adopted in December 2023. Implementation of the IBM action plan is 
delayed. 

An action plan for the accession of Serbia to the Schengen Area was adopted in July 2023. Based on the 
Police Cooperation Convention for Southeast Europe (PCC SEE), the Ministry of the Interior established 
a cooperation with all neighbouring countries. Joint patrols with neighbouring countries are ongoing with 
Hungary, North Macedonia, and Romania. 

The Interim Common Crossing-Points (CCPs) between Kosovo and Serbia remain operational. Only two 
of the six permanent CCPs have been established (Merdare and Mutivodë/Mutivode). Serbia still needs to 
establish  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 a project in July 2018. In addition, Serbia 
needs to engage constructively to enable the construction of the CCP hosted by Kosovo in the north of 
Kosovo  at  Tabavije/Bërnjak-Tabalije/Brnjak.  Urgent  efforts  are  required  from  Serbia  to  close  illegal 
roads and bypasses to ensure exclusive use of official crossing points for goods and people entering or 
leaving Kosovo. 

An anti-corruption preventive mechanism for authorities involved in IBM has been adopted, but further 
efforts are needed at regional and local level. 

Euro counterfeiting (criminal law aspect) 

47 

 
 
The  relevant  legislation  is  in  line  with  the  EU  acquis  on  the  suppression  of  counterfeit  currency.  The 
National  Bank  of  Serbia  conducts  technical  analysis  and  provides  specialised  training  for  the  licensed 
entities that authenticate euro coins and process euro banknotes. The central bank has formal cooperation 
agreements with the European Commission on coins and with the European Central Bank on banknotes. 

The  central  bank  continued  to  develop  its  administrative  capacities  by  participating  in  several 
international and domestic seminars, conferences, and workshops, primarily as a follow-up to the Pericles 
2020 programme. 

All aspects of customs cooperation are covered in Chapter 29 – Customs Union. 

2.3. ECONOMIC CRITERIA 

2.3.1. The existence of a functioning market economy 

Economic governance 

Serbia’s  commitment  to  maintain  macroeconomic  stability  and  advance  economic  reforms  has 
remained relatively strong. The National Bank of Serbia (NBS) has maintained a tight monetary policy, 
with the key policy rate raised to 6.5% in July 2023. The easing of inflation, returning to the NBS target 
range of 3% +/-1.5 pps as of May 2024, enabled the NBS to reduce the reference interest rate by 25 basis 
points in both June and July 2024 to 6.0% in July 2024. The new domestic fiscal rules are well-designed 
anchors for fiscal policy. However, the announced weakening of the deficit component of the fiscal rules 
from  1.5%  of  GDP  to  2.25%  for  the  medium  term,  in  order  to  allow  for  ambitious  public  investment 
projects,  implies  backtracking  on  the  fiscal  rules.  Implementation  of  the  tax  administration  reform  has 
continued,  but  with  some  delays  regarding  updating  IT  systems.  Long-standing  challenges  in  fiscal 

48 

Table 8.1:202120222023Serbia - Key economic figuresGDP per capita (% of EU-27 in PPS)1)40444446Real GDP growth 2.57.72.52.5Activity rate of the population aged 15-64 (%), total1)66.669.770.971.7      female59.462.664.065.6      male73.976.877.877.8Unemployment rate of the population aged 15-64 (%), total1)13.711.49.79.7      female14.412.410.110.2      male13.110.69.49.3Employment of the population aged 15-64 (annual growth %)2.12.62.30.8Nominal wages (annual growth %)5.39.413.814.7Consumer price index (annual growth %)2.04.011.912.1Exchange rate against EUR119.8117.6117.5117.3Current account balance (% of GDP)-4.6-4.2-6.9-2.6Net foreign direct investment, FDI (% of GDP)6.36.97.26.1General government balance (% of GDP)-1.9-4.1-3.2-2.2General government debt (% of GDP)59.856.555.252.0Notes: 1) EurostatSource: national sources2015-20 average 
 
 
 
governance  remain.  These  include  the  public  wage  system,  medium-term  budgetary  planning,  public 
investment management, and the significant presence and governance of SOEs in the economy and the 
related budgetary costs and risks. Serbia has a standby arrangement with the International Monetary Fund 
running  from  December  2022  to  December  2024,  which  has  proven  crucial  in  designing  and 
implementing major reforms, including in the energy sector.  

Implementation  of  the  policy  guidance  set  out  in  the  conclusions  of  the  May  2023  Economic  and 
Financial  Dialogue  has  been  partial.  Good  progress  was  made  in  reducing  the  public  deficit, 
implementing inflation policies, reforming tax administration (apart from IT systems), adopting the law 
on  SOE  management,  strengthening  risk  management  frameworks  across  the  banking  system,  and 
encouraging the use of the domestic currency in the financial system. However, only partial progress was 
made in strengthening medium-term budgeting practices and fiscal risk analysis. 

Macroeconomic stability 

Economic  activity  has slightly accelerated  in recent  quarters.  After an  average  GDP  growth  rate  of 
3.2%  between  2015  and  2019,  post-COVID-19  GDP  growth  rebounded  to  7.7%,  followed  by  a  fall  to 
2.5%  in  2023,  partially  due  the  economic  fallout 
from  Russia’s  war  of  aggression  against  Ukraine 
and soaring inflation. However, in the first half of 
2024,  growth  has  accelerated  to  over  4%  y-o-y, 
with  investment  and  private  consumption  driving 
growth, helped by strong foreign direct investment 
(FDI) and rapid real wage growth as inflation has 
decelerated.  Industrial  production  and  exports 
have also maintained steady growth, but overtaken 
by  imports,  which  are  boosted  by  the  surging 
broadly 
domestic 
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 from 40% on average from 2015 to 2020 to 46% of 
the EU average in 2023. 

demand.  After 

staying 

The current account deficit narrowed sharply 
in  2023,  reflecting  the  easing  of  the  energy 
crisis,  but  has  since  widened  again.  It  fell  to 
2.6% of GDP in 2023, down from 6.9% of GDP 
in  2022,  helped  by  base  effects  as  electricity 
imports  were  extraordinarily  high  and  costly  in 
2022.  In  the  first  half  of  2024,  the  deficit  has 
widened  again  to  3.5  %  of  GDP,  driven  by 
rebounding 
imports,  slightly  higher  primary 
income deficit (mainly reflecting higher outflows 
of  dividend  and  interest  payments)  and  slightly 
lower surplus in secondary income (largely reflecting remittances). As in the past years, the surplus in the 
services  trade  has  a  major  positive  contribution  to  the  current  account,  reflecting  largely  the  surplus  in 
ICT  and  business services’  exports.  The  current  account  deficit  was fully  financed  by  net  FDI inflows, 
which  reached  6.1%  of  GDP  in  2023  and  have  slightly  increased  to  6.5  %  of  GDP  in  the  first  half  of 
2024. NBS foreign exchange reserves increased consistently over 2023 and first half of 2024, reaching a 
new  record  level  of  37.8%  of  GDP  by  Q2  2024,  ,  covering  7.2  months  of  goods  and  services imports. 

49 

 
 
External  financing  relying  mostly  on  FDI,  coupled  with  the  relatively  high  level  of  foreign  exchange 
reserves, helped mitigate Serbia’s vulnerability to external economic shocks. 

Following the surge in inflation in 2022, price pressures gradually abated over 2023 and the first 
half of 2024, thanks in part to the appropriately tightened monetary policy. Inflation was still high at 
12.1% on average in 2023, mainly driven by food prices, which only decelerated sharply in late 2023 as 
global commodity prices eased. Large but necessary increases in regulated electricity and gas tariffs (24% 
and 33% respectively) also fuelled inflation in 2023. The deceleration in inflation continued over the first 
half of 2024. The latest figures from August indicate 4.3%, which is within the upper limit of the central 
bank’s target tolerance band of 3% ±1.5 pps. 

The general government deficit decreased from 3.2% of GDP in 2022 to 2.2% in 2023. The balance 
has  therefore  steadily  improved  since  the  end  of  the  COVID-19  crisis,  and  the  fiscal  outcome  in  2023 
turned out stronger than the revised target of 2.8% 
of  GDP  in  the  amending  budget  of  September 
2023.  Revenue, especially from  corporate income 
tax  and  labour  taxes,  overperformed  in  2023, 
boosted  by  an  unplanned  rise  in  excise  rates  and 
road tolls. While support to SOEs was lower than 
budgeted,  agricultural  subsidies  were  raised,  and 
the overall level of subsidies remained elevated at 
2.7% of GDP in 2023. For 2024, the budget targets 
a deficit of 2.2% of GDP, in line with the formerly 
defined fiscal rules. Only some relatively small tax 
adjustments  are  planned  for  2024,  concerning  income  tax  scales  and  excises.  On  the  expenditure  side, 
pensions were raised by 14.8% in January 2024 and the public sector wage bill by 10%. This brought the 
planned share of the latter to 10% of GDP, the upper limit set by the fiscal rules. Net budget loans to the 
state-owned energy sector are set to decline by around 0.3% of GDP as the energy crisis is assumed to 
have relented. Public debt fell to 52.3% of GDP in 2023, continuing the declining trend after the COVID-
19  crisis,  largely  driven  by  high  nominal  GDP  growth.  S&P  Global  Ratings  raised  its  assessment  of 
Serbia’s foreign-currency bonds by one notch to BBB-. The primary balance was still negative in 2023, 
adding slightly to the debt burden, but it is set to turn neutral in 2024 under current projections. 

Fiscal  governance  reforms  have  generally  progressed  well,  albeit  with  some  challenges  and 
backtracking. While the fiscal rules were well-designed, challenges have emerged in their interpretation 
and implementation.  In particular,  Serbia’s  Fiscal  Strategy  for  2025 announced  that the  enforcement  of 
the deficit component of the fiscal rules, which targeted 1.5% of GDP, was postponed from 2025 to 2029. 
This means in practice a new deficit target of 2.5% of GDP for 2025 and 2.25% thereafter until 2029. In 
addition, the pension expenditure target as the discretionary rise of pensions in 2023 can be seen to go 
against the spirit of the new fiscal rules. Serbia should increase the transparency of the annual budgets and 
ensure  a  more  credible  and  stable  medium-term  budgeting  (including  public  investments)  as  these  are 
typically subject to frequent changes. The reform of the public sector wage system has been postponed to 
2025, even though the preparatory steps have already been taken. The significant presence of SOEs in the 
economy creates major fiscal risks, but some progress has been made. In particular, the new law on SOE 
governance  was  adopted  in  September  2023  and  energy  tariffs  were  adjusted  to  better  match  the  cost 
base. The well-established Fiscal Council has continued to function properly.  

The  macroeconomic  policy  mix  was  appropriate.  Monetary  policy  has  reacted  appropriately  and 
successfully  to  surging  inflation  with  gradual  monetary  tightening,  which  was  loosened  slightly  only 

50 

 
 
since  the  middle  of  2024.  The  past  fiscal  tightening  ensured  a  sustainable  fiscal  position  and  helped 
disinflation. However, the weakening of the fiscal targets compared to what was planned earlier appears 
pro-cyclical  in  the context of the projected  economic upswing  for the  coming  years.  Maintaining  fiscal 
discipline would be important for managing inflationary risks. 

Functioning of product markets 

Business environment 

Despite progress in reducing the regulatory and administrative burden on businesses, there are still 
weaknesses  that  have  a  particular  impact  on  small  and  medium-sized  enterprises  (SMEs).  The 
business  environment  is  hampered  by  red  tape,  political  interference  and  the  limited  efficiency  and 
transparency of the public administration. The Law on foreign exchange transactions is too restrictive and 
not applied consistently. Serbia ranked 104th out of 180 countries in the 2023 corruption perception index 
compiled by Transparency International, thus continuing the negative trend since 2018. Particular efforts 
are being made to reduce the size of the informal economy, but several factors favour its persistence: high 
taxes and social security contributions on the lowest salaries, parafiscal charges (non-tax charges), hidden 
tax fees, red tape, and shortcomings in addressing corruption. In addition, there is insufficient capacity in 
key  inspection  departments.  Further  efforts  are  needed  to  improve  the  quality,  independence  and 
efficiency of the justice system. 

State influence on product markets 

The  legal  framework  for  competition  and  State  aid  is  broadly  in  line  with  the  EU  acquis,  but 
implementing  legislation  remains  to  be  further  aligned  and  implementation  needs  to  be  systemic. 
The Commission for Protection of Competition and the Commission for State Aid Control are operating 
as legally independent bodies. However, the operational independence of the Commission for State Aid 
Control needs to be demonstrated by a consistent and transparent track record. On State aid, well-defined 
rules are not always implemented due to strong political pressure to provide financial assistance to SOEs 
and large foreign investors. The funds involved are often substantial and may have a significant impact on 
competition. State support is not sufficiently transparent, including in the 2024 budget. While food and 
energy prices have come down from their peak values, the government has maintained some temporary 
price caps on basic food and fuel prices and temporary ad hoc trade restrictions continue to be brought in 
at very short notice and without any clear justification (see also Chapter 30 on external relations). 

Privatisation and restructuring 

The state still has a major role in the economy, which hampers competition. Serbia’s SOEs continue 
to  operate  in  many  structurally  important  sectors,  including  energy,  transport,  manufacturing, 
telecommunications  and  finance,  and  employ  a  considerable  amount  of  Serbia’s  total  workforce.  Their 
outsized  presence  affects  resource  allocation  and  impedes  overall  competitiveness.  Furthermore,  many 
SOEs still do not apply proper corporate governance rules and continue to operate with low efficiency and 
high costs. They often rely on direct or indirect government subsidies and are subject to strong political 
influence. Steps have been taken by Serbia to address SOEs’ governance issues through the 2021-2027 
Strategy on State Ownership and Management of SOEs. Serbia has also taken the first steps to implement 
the new Law on SOE governance, which started to apply in September 2024, by drafting implementing 
legislation.  Although the  strategic  and  legal  framework  aims  to  reform the  ownership  and management 
framework of SOEs and set out better corporate governance practices, the reforms are advancing at a slow 
pace. The issue of irregularly appointing acting managers for extended periods has yet to be addressed in 
practice. It is critical to ensure sufficient administrative capacity in the institutions charged with the newly 
centralised ownership responsibilities and improve performance monitoring of SOEs. 

51 

 
 
Functioning of the financial market 

Banking  sector  stability  was  maintained,  and  macroprudential  indicators  remained  sound.  The 
banking  sector’s  aggregate  capital  adequacy  stood  at  21.4%  at  the  end  of  2023,  well  above  the  8% 
minimum set by the central bank. Sector-wide liquidity remained high. The profitability of the banking 
system increased with improved return on assets (2.5% at the end of 2023 compared with 1.9% at the end 
of  2022).  The non-performing loan  ratio  was  stable at  3.2% throughout the  last three  quarters  of  2023. 
Businesses  in  Serbia  predominantly  rely  on  bank  financing.  Serbia’s  bank  lending  to  the  private  sector 
amounted to around 40% of GDP in 2022. Credit to households and corporations grew steadily by about 
10% on average between 2019 and 2022. In 2023, the growth rate of loans slowed to slightly above zero, 
impacted  by  the  monetary  tightening,  higher  interest  rates  and  the  expiry  of  some  state  guarantee 
schemes.  Foreign-owned  EU-based  banks  continued  to  dominate  the  financial  system,  holding  around 
85% of banking system assets, with the five largest banks holding 61.4% of assets. Non-banking financial 
institutions continue to be largely absent, and there was no progress in setting out a legal framework for 
microfinance  institutions.  Backed  by  the  Capital  Market  Development  Strategy,  Serbia  is  working  to 
further develop the domestic corporate bond capital market. The availability of venture capital in Serbia is 
very limited. 

Functioning of the labour market 

The  labour  market  has  improved  in  recent  years,  with  the  overall  unemployment  rate  down  to 
8.2% in Q2-2024. The activity rate increased 
steadily  and  stood  at  61.9%  in  Q2 2024. 
Nominal  wage  growth  accelerated  over  2022 
and 2023 to about 14%. However, this largely 
follows 
inflation,  and  real  wage  growth 
amounted  to  barely  2%  in  2022  and  2023. 
Despite  recent  improvements  in  the  activity 
rate  of  women,  their  participation  in  the 
labour  force  lags  significantly  behind  that  of 
men (65.6% and 77.8% respectively in 2023). 
Youth  unemployment  fell  sharply  to  20.2  in 
Q2-2024 for the 15-24 age group, down from 
about 50% a decade ago. Emigration is a long-standing problem also for the labour market which Serbia 
has attempted to address by offering incentives such as tax relief for employers who hire highly skilled 
diaspora.  Unemployment  benefits  and  subsidised  job  activation  measures  are  comparatively  low  to  the 
EU average. The budget allocated to active labour market measures has stagnated at around 0.1% of GDP 
in recent years, which limits the number of counsellors available at the National Employment Service and 
quality of counselling and follow-up services for the unemployed. Undeclared work is a long-term issue, 
especially in the agricultural sector, but recent legislation on temporary agency employment and seasonal 
work has gradually lowered the informal employment rate (11.8% in Q2-2024). 

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

Education and innovation 

Despite the ongoing implementation of the education strategy for 2030, the quality of education and 
training  still  needs  to  be  improved  to  meet  labour  market  needs.  The  level  of  public  spending  on 
education in Serbia remains below the EU average (3.2% of GDP vs 4.8% in 2022). The enrolment rate in 
primary education is improving: 97.8% in 2022 compared with 95.7% in 2021. However, the enrolment 

52 

 
 
rate is below 90% in secondary education (87.2% in 2022). According to PISA 2022, Serbia’s learning 
outcomes are behind the OECD average, but at the top in the Western Balkan region. Serbia has made 
progress in facilitating the school-to-work transition, as evidenced by the 8 percentage-point increase in 
employment rates of recent graduates over the past 5 years (reaching 72.2% in 2022) and the relatively 
low youth NEET rate (15.2% in 2023 for people aged 15-29). Nevertheless, there is still room to improve 
the  quality  of  education,  particularly  regarding  the  labour  market  relevance  of  VET,  the  curricula  and 
teaching  practices  and  higher  education  programmes.  The  modernisation  of  vocational  education  and 
training (VET) is ongoing. Participation rates in lifelong learning remain low, where the offer should be 
diversified and better promoted, and reskilling and upskilling should be facilitated. Total expenditure on 
R&D remained low at less than 1% of GDP in 2022 compared to the EU average of 2.2%. Nevertheless, 
the percentage of researchers per 1 000 labour force has steadily increased over the last 10 years and is 
currently  at  2.6%,  above  the  EU  average.  Implementation  of  the  Smart  specialisation  strategy,  the 
Strategy for the development of a start-up ecosystem and the Law on innovation activity is ongoing. 

Physical capital and quality of infrastructure 

The level of public investment is high, with significant emphasis on road and rail infrastructure, but 
infrastructure gaps remain. In 2023, the share of total investment in the economy amounted to 22.7% of 
GDP,  slightly  above  the  EU  average  of  22.2%  of  GDP.  The  economy  is  attracting  significant  FDI 
inflows, which stood at EUR 4.52 billion, i.e. 6.1% of GDP in 2023 and were largely directed to tradable 
sectors, most notably manufacturing. Public investment was relatively high at slightly over 7% of GDP in 
2023,  particularly  in  railways,  roads,  energy  infrastructure  and  environmental  investments.  The  public 
procurement  law  was  amended  in  2023,  including  to  introduce  obligatory  quality  criteria  as  well  as  
ecological criteria for awarding contracts for certain types of goods, services and works.  However, both 
public investment management and public procurement procedures continue to be marked by numerous 
exemptions  from  standard  procedures,  undermining  a  unified  and  transparent  system  for  investment 
planning  and  management.  Continuous  monitoring  of  transport  investments’  compliance  with  EU 
standards is a general challenge. Energy infrastructure is largely outdated, and energy supply continues to 
rely  mostly  on  coal,  which  is  very  carbon-intensive  and  highly  polluting.  The  regulatory  and  green 
transition reforms are progressing slowly, and dependence on Russia in the gas and oil sectors is high, but 
steps  have  been  taken  to  diversify  import  sources.  Work  on  transport  connectivity  with  neighbouring 
countries is progressing. The Serbian authorities are committed to implementing extensions of the ‘green 
lanes’  to  neighbouring  Member  States  in  line  with  the  New  Growth  Plan  for  the  Western  Balkans. 
Serbia’s digital transformation is well under way. Digital connectivity infrastructure is well-developed in 
urban  areas  but  underdeveloped  in  rural  areas  where  commercial  operators  do  not  see  any  economic 
interest.  However,  some  progress  in  rural  broadband  connectivity  has  been  made  in  recent  years  and 
should  continue.  Digital  government  services  are  well  developed,  already  reaching  the  EU  average  in 
many dimensions, and businesses are relatively active in e-commerce. 
Sectoral and enterprise structure 

Services  sectors  dominate  the  economy,  providing  together  more  than  60%  of  total  value  added. 
The  manufacturing  industry,  although  on  a  declining  trend  over  the  years,  continues  to  be  the  single 
largest sector in terms of its share of GDP, at 13.5% in 2022. The weight of the agricultural sector largely 
stabilised at around 6.3% of GDP, while the share of the construction sector in GDP increased to 5.5% to 
in  2022,  supported  by  ongoing  investments  in  infrastructure.  SMEs  are  the  backbone  of  the  Serbian 
economy, providing close to 60% of total employment and turnover in the economy and around 50% of 
the  value added.  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 

53 

 
 
60% of total corporate loans in December 2023, but SMEs’ borrowing costs are significantly higher than 
those  of  large  companies.  SMEs  often  face  an  uneven  playing  field  as  large  companies  and  foreign 
investors often have direct lines of communication to the government and benefit much more from state 
subsidies. 

Economic integration with the EU and price competitiveness 

Economic integration with the EU is high. The EU is Serbia’s biggest trading and investment partner, 
accounting  for  59.7%  of  its  total  trade  and  48%  of  FDI  inflows  in  2023.  After  the  EU,  Serbia’s  main 
trading partners in 2023 were Central European Free Trade Agreement (CEFTA) countries (9.3% of total 
trade), China (8.6%) and Russia (4.1%). FDI inflows have seen a partial shift coming from China, which 
accounted for around a quarter of the total between 2021 and 2023. There are still significant bottlenecks 
at border crossing points with neighbouring EU countries, even with ongoing efforts to improve online 

health  and  customs  clearance  procedures  and 
facilitate transit through international cooperation agreements and the regional green corridors. 

The real effective exchange rate (REER) has been steadily appreciating in recent years. The dinar-
euro  nominal  exchange  rate  was  broadly  stable  in  2023  as  appreciation  pressure  on  the  dinar  was 
successfully countered by the central bank. The Consumer Price Index (CPI)-based REER appreciated by 
4.6% cumulatively between 2020 and 2022 and by a further 7.7% in 2023 due to the significant inflation 
gap between Serbia and its main trading partners. Similarly, the unit labour cost (ULC)-based REER has 
also  been  on  an  appreciating  trend  in  recent  years,  mostly  due  to  relatively  high  wage  growth  in  the 
private sector. 

2.4. PUBLIC PROCUREMENT, STATISTICS AND 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. 

Institutional set-up and legal alignment 

Serbia  is  broadly  aligned  with  the  EU  acquis.  Amendments  to  the  Law  on  public  procurement  (PPL) 
adopted  in  October  2023  contributed  to  further  alignment.  The  Law  on  public-private  partnerships  and 
concessions (PPPs) still needs to be amended to align with the EU Directive on concessions. The public 
procurement development programme for the period 2024-2028 and its action plan for 2024 were adopted 
in August. 

54 

 
 
 
Serbia has a tendency to circumvent its legislation in this area through intergovernmental agreements and 
special laws. In July 2023, Serbia adopted a Decree on the selection of a strategic partner for solar power 
plants,  which  introduced  an  exemption  from  the  PPL  and  the  Law  on  PPPs.  Additionally,  in  October 
2023,  the  Law  on  special  procedures  for  the  implementation  of  the  international  specialised  exhibition 
EXPO  Belgrade  2027  was  adopted,  exempting  projects  from  the  application  of  the  PPL.  In  February 
2024, Serbia adopted a Decree specifying procurement rules for projects falling under the special law on 
EXPO that raises concerns with respect to its compliance with the EU  acquis including as regards legal 
redress  and  tender  submission  deadlines.  A  new  EXPO  2027  module  was  launched  on  the  public 
procurement  portal  in  April  2024  with  the  aim  to  provide  for  more  transparency  of  the  EXPO-related 
procurement procedures. 

Implementation and enforcement capacity 

Concerning  the  capacity  to  manage  public  procurement  processes,  the  Public  Procurement  Office 
(PPO)  is  slightly  understaffed,  whereas the  capacity of  the  Commission for  Public-Private  Partnerships 
and Concessions needs to be strengthened through additional human resources. 

In 2023, the public procurement market increased by around 30% in terms of total value of concluded 
contracts from EUR 5.6 billion in 2022 to EUR 7.3 billion, whereas the average number of bids per tender 
dropped  from  2.5  to  2.4  during  the  same  period.  The  share  of  tenders  with  only  one  submitted  bid 
remained at around 51%, higher than the 2024 target share of 47% which Serbia had committed to in the 
context of the EU Public Finance Management budget support. 

On  the  monitoring  of  the  contract  award  and  implementation,  the  number  of  public  procurement 
procedures  monitored  by  the  PPO  increased  from  630  in  2022  to  782  in  2023,  whereas  the  number  of 
requests  submitted  by  the  PPO  to  the  relevant  courts  to  initiate  misdemeanour  procedures  halved  from 
429 in 2022 to 218 in 2023. The State Audit Institution found irregularities in cases covering 17.7% of the 
value  of  public  procurement  contracts  audited  in  2023.  These  findings  raise  concerns  and  need  to  be 
closely followed. New functionalities of the public procurement portal were introduced in 2023, with the 
aim to reflect the latest amendments to the PPL that were adopted in October 2023 and entered into force 
in January 2024. 

The total value of contracts exempted from the application of the PPL increased from EUR 6.4 billion in 
2022 to EUR 7.1 billion in 2023, i.e. roughly the same as the total value of the public procurement market 
in  2023.  The  most  frequently  used  legal  basis  for  the  exemptions  were  intergovernmental  agreements. 
This  was the legal  basis  in  38%  of the exemptions,  corresponding to  a  value of  EUR 2.7  billion,  to  be 
compared with EUR 33 million in 2022 and EUR 735 million in 2021. 

Efficient remedy system 

Legislation on the right to legal remedy is broadly in line with the EU acquis, which is enforced by the 
independent Republic Commission for Protection of Rights in Public Procurement Procedures. The 2023 
PPL amendment has introduced the possibility to carry out electronically all communications between the 
Republic Commission and the parties to the dispute through the public procurement portal. 

The  Republic  Commission  solved  714  cases  on  requests  for  the  protection  of  rights  in  2023.  Public 
procurement  procedures  were  partially  or  fully  annulled  in  326  cases  (46%  of  all  solved  cases).  The 
Republic Commission took decisions in 59 cases on complaints about decisions of contracting authorities 
in 2023. It imposed three financial fines on contracting authorities not complying with its decisions while 
annulling one contract in 2023. 

55 

 
 
Due to limited specialisation and training, the Administrative Court’s implementation capacity is weak. 
Exchange  of  knowledge  and  information  between  the  PPO  and  the  Republic  Commission  with  the 
Administrative Court should be further improved. 

Chapter 18: Statistics 

European  statistics  are  developed,  produced  and  disseminated  by  EU  Member  States,  guided  by  the 
principles and quality criteria elaborated in the Regulation on European statistics, such as professional 
independence, impartiality, reliability, transparency and confidentiality. Common rules are in place for 
the methodology, production and dissemination of statistical information, which are further specified in 
sectoral legislation that constitute the EU acquis on statistics 

Serbia’s  legal  framework  is  largely  aligned  with  the  EU  acquis  on  statistics.  Serbia’s  statistical 
infrastructure  is  largely in  line  with  European standards  and integrates the  principles  of the  European 
Statistics  Code  of  Practice.  A  new  law  on  official  statistics,  which  should  enhance  the  professional 
independence of the Statistical Office of the Republic of Serbia (SORS) and improve the alignment with 
the Regulation (EC) No 223/2009 on European statistics was drafted in 2021 but has yet to be adopted. 
The institutional framework is functional; however, the administrative capacity of SORS still needs to be 
strengthened.  

Concerning  classifications  and  registers,  the  main  classifications  are  aligned  with  the  EU  acquis  and 
registers  are  updated  regularly.  SORS  submission  of  data  to  Eurostat  continues  to  increase  but  the 
coverage of data needs to be further expanded.  

Regarding  macroeconomic  statistics,  Serbia  has  improved  the  level  of  compliance  of  its  national  and 
regional  accounts,  but  there  are  still  data  gaps.  As  regards  government  finance  statistics  (GFS)  and 
excessive deficit procedure (EDP), Serbia should continue efforts to further comply with ESA 2010 and 
undertake efforts to remove flags preventing publication of some data Efforts aimed at further progress 
should  also  continue  for  the  coverage  of  the  questionnaire  related  to  the  excessive  deficit  procedure 
notification tables. 

Serbia  is  largely  aligned  with  the  EU  acquis  concerning  business  statistics.  Serbia  transmits  structural 
business  statistics  data  and  metadata  for  publication  to  Eurostat  in  good  quality  and  in  the  required 
technical format. SORS also submitts business demography (BD) data to Eurostat. However, for SBS as 
well  as  BD  full  coverage  has  yet  to  be  achieved  and  the  punctuality  needs  to  be  improved.  Serbia  is 
largely  compliant  in  the  area  of  short-term  business  statistics  (STS),  but  further  progress  is  needed  in 
construction  and  services  producer  prices.  Serbia  should  also  start  the  compilation  of  outward  foreign 
affiliates statistics (outward FATS).   

Serbia broadly complies with the EU acquis on social statistics. However, further progress is still needed 
to  produce  statistics  on  job  vacancies  and  statistics  on  external  migration  and  asylum  are  only  partly 
aligned  with  EU requirements.  Serbia transmitted  Satellite  Health  Accounts  (SHA)  for the first  time  in 
2023. In general, Serbia should improve the collection of data disaggregated by sex.  

Regarding  agricultural  statistics,  Serbia  is  largely  in  line  with  the  EU  acquis.  Serbia  is  working  on 
developing  agro  monetary  statistics  but  it  is  still  not  in  a  position  to  submit  them  to  Eurostat  The 
agriculture  census  took  place  from  October  to  December  2023  in  line  with  EU  legislation  and 
international standards. Preliminary results were timely published in January 2024. 

Annual and monthly energy statistics are produced and sent for all relevant energy sources. In the area of 
environmental statistics, the dataset on number and capacity of disposal landfills is yet to be completed, 
air  emissions  are  highly  compliant  for  air  pollutants  but  data  on  greenhouse  gases  (GHG)  are  not 

56 

 
 
available.  Further  efforts  are  also  still  needed  to  improve  the  quality  of  environmental  accounts  data. 
Serbia’s has yet to start submitting data on pesticide statistics, fertiliser consumption and 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 protect the euro against counterfeiting. 

Public internal financial control 

The legal, strategic and institutional framework for public internal financial control (PIFC) is broadly 
in place. However, Serbia should improve the implementation record and ensure full consistency of the 
PIFC legal basis with the general legal framework. Weaknesses in performance management and lines of 
accountability between independent bodies and their parent institutions persist. 

The capacities to implement internal control standards, including risk management, have to be further 
increased at both central and local government level and be integrated in the administrative culture. The 
regulatory  framework  of  irregularity  reporting  for  budget  beneficiaries  in  line  with  the  guidelines  on 
irregularity management is in place, but the system needs to be established in practice. The Ministry of 
Finance  has  a  successfully  centralised  budget  inspection  function  that  needs  to  be  strengthened.  The 
mapping of the entire national inspection environment and ensuring its proper role and scope remains a 
priority. 

The 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 
a  sufficient  number  of  auditors.  Amendments  to  the  implementing  legislation  on  internal  audit  and 
certification were adopted in October 2023. 

The central harmonisation unit (CHU) continued to focus on system development and dissemination of 
methodological guidance. 

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. A new 
SAI  Strategic  Plan  for  the  period  2024-2028  was  adopted  in  December  2023.  The  SAI’s  financial 
independence was respected during the 2024 budget approval procedure. 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.  The  quality  of 
audit  work  is  constantly  improving.  The  quality  of  SAI’s  audit  findings,  recommendations  and 
associated follow-up improved, with enhanced communication and improved relations with auditees and 
general public on conducted audits. 

Protection of the EU’s financial interests 

Serbia has achieved a high degree of EU acquis alignment, but full alignment with the EU acquis 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  managing  irregularities  in  handling  financial  resources  of  the 
European Union in the Republic of Serbia for the period 2024-2026 was adopted in May 2024. The anti-

57 

 
 
fraud coordination service (AFCOS) in the Ministry of Finance has seven full time employees, falling 
short of the planned 13. 

Serbia continued its good cooperation with the European Commission during investigations, including 
the  follow-up  of  recommendations.  Serbia  reported  23  cases  of  irregularities  via  the  Irregularity 
Management System in 2023. Serbia should maintain its efforts in further developing a solid track record 
on cooperation in investigations and reporting of irregularities. 

Protection of the euro against counterfeiting 

Serbia  achieved  a  high  degree  of  EU  acquis  alignment.  The  National  Bank  of  Serbia  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.  NBS  continued  to  develop  its 
administrative capacities. 

3. GOOD NEIGHBOURLY RELATIONS AND REGIONAL COOPERATION 

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

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

The fourth annual EU-Western Balkans Summit took place in Brussels in December 2023, reaffirming 
the  EU  membership  perspective  of  the  Western  Balkans  and  exploring  measures  aimed  at  further 
advancing gradual integration. 

Serbia  has  actively  engaged  in  the  regional  dimension  of  the  Growth  Plan  for  the  Western  Balkans, 
actively participating in both ministerial and leaders’ meetings. 

On the Common Regional Market (CRM), in October 2023 the Berlin Process summit took place for 
the first time in the region, in Tirana, adopting an additional agreement on the recognition of professional 
qualifications,  concerning  nurses,  veterinary  surgeons,  pharmacists,  and  midwives.  The  roadmap  for 
roaming between the Western Balkans and the EU entered into the first phase of implementation. Serbia 
has  ratified  the  first  three  mobility  agreements  and  has  deposited  the  related  notification  instruments. 
Twelve major decisions were agreed at the CEFTA Joint Committee  in October 2024. Kosovo’s ban on 
goods of Serbian origin, introduced in June 2023, was lifted in October 2024 and is replaced by a system 
of manual checks.] 

Serbia continued to cooperate closely with Bosnia and Herzegovina, Croatia and Montenegro under the 
Sarajevo  Declaration  Process  to  find  sustainable  solutions  for  refugees  and  persons  displaced  by 
conflicts in the 1990s. 

Serbia  continued  working  with  the  International  Commission  on  Missing  Persons  (ICMP)  and  the 
International Committee of the Red Cross (ICRC). Belgrade took part in the work of the Western Balkans 
Missing  Persons  Group  to  address  unresolved  cases  of  mutual  interest  and  unidentified  remains  in  the 
morgues.  Serbia  also  joined  trilateral  meetings  to  foster  cooperation  with  Bosnia  and  Herzegovina  and 
Montenegro.  No  bilateral  meeting  with  Croatia  took  place  after  30 January  2023.  In  June  2024,  the 
remains of three civilians were handed over by the Pristina delegation to Serbia delegation. In July and 
August  2024  remains  of  three  missing  persons  found  on  their  respective  territories  were  handed  over 
between  Serbia  and  Bosnia  and  Herzegovina.  The  Belgrade  delegation  to  the  ICRC-chaired  working 
group on missing persons remained engaged, including in assessing possible grave sites in Serbia. A joint 

58 

 
 
 
site assessment was conducted in November 2023 at the Stavalj mine complex in Sjenica, without leading 
to new findings. A joint forensic inspection also took place in Pristina in August 2023. The mechanism 
has not met at the Heads of Delegation level since April 2021, due to Kosovo’s refusal to engage with the 
Head of the Belgrade Delegation. In January 2024, an ad hoc meeting of the working group at the level of 
Deputy  Heads  of  Delegations  was  held  in  Geneva  and  another  in  July  2024,  allowing  to  revive  the 
mechanism by agreeing on field work plans. Despite positive developments, Kosovo-Serbia cooperation 
under 
the  working  group  remained  hampered  by  unconstructive  behaviour  of  both  Parties. 
Implementation of the Declaration on Missing Persons endorsed at the High-level EU-facilitated Dialogue 
meeting of 2 May 2023 has not started yet. 

Overall, Serbia has remained committed to maintaining good bilateral relations with other enlargement 
countries and neighbouring EU Member States. 

Relations with Albania remained good overall. 

Relations with Bosnia and Herzegovina are good and overall stable even though the UNGA Srebrenica 
resolution  has  led  to  political  tensions.  The  two  countries  still  need  to  reach  an  agreement  on  state 
borders, including on two dams on the Drina River and a part of the Belgrade-Bar railway. As a signatory 
to  the  Dayton/Paris  Peace  Agreement,  Serbia  respects  Bosnia  and  Herzegovina’s  sovereignty  and 
territorial integrity while developing and publicly promoting special relations with the  Republika Srpska 
entity.  Senior  Serbian  officials  attend  the  unconstitutional  entity  celebrations  on  9 January.  Serbia 
established  a  joint  parliamentary  forum  with  the  entity  and  held  an  ‘all-Serb  assembly’  in  Belgrade  in 
June  2024,  whose  declaration  on  ‘the  common  future  of  the  Serbian  people’  was  endorsed  by  a  joint 
government session of Serbia and of the entity and subsequently approved by both assemblies of Serbia 
and of the Republika Srpska entity. 

Relations with Montenegro are overall stable; however occasional mutual accusations continued. High-
level visits took place and cooperation agreements were signed between the two countries. After a long 
pause,  diplomatic  relations  were  resumed  at  Ambassador  level.  The  Serbian  Ambassador  to  Podgorica 
was appointed in February 2024. 

Relations with  North Macedonia are good. The two countries signed memorandums of cooperation for 
the Skopje-Nis high-speed railway and the establishment of a high-performance railway network. 

Relations  with  Türkiye  are  good.  In  March  2024,  the  Serbian  Deputy  Prime  Minister  and  Minister  of 
Foreign Affairs took part in a diplomatic forum in  Antalya and met with the Turkish MFA and the two 
Presidents  have  maintained  regular  contact.  There  were  disagreements  over  Türkiye’s  support  to 
Kosovo’s membership to the Council of Europe and to the UNGA Resolution on Srebrenica genocide. 

Serbia has not joined the sanctions against the Russian Federation. Serbia supports the territorial integrity 
and sovereignty of Ukraine (see Chapter 31). Serbia has continued to provide financial and humanitarian 
assistance  to  Ukraine.  The  two  Presidents  met  for  their  first  in  person,  bilateral  meeting  in  Tirana  in 
March  2024.  A  Serbia-Ukraine  Business  forum  was  organised  in  November  2023,  during  which  a 
Memorandum of Cooperation was signed between the two respective chambers of commerce.  

Relations with the Republic of Moldova are good. Serbia’s relations with Georgia are overall good. Trade 
between the three countries are however underdeveloped. 

Relations with neighbouring EU Member States Romania and Bulgaria are overall good and relations 
with Hungary are very good, with high-level meetings taking place regularly.  

Relations with  Croatia  continue to be marked by ad hoc antagonistic public exchanges and diplomatic 
demarches. 

4. NORMALISATION OF RELATIONS BETWEEN SERBIA AND KOSOVO 

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The  EU-facilitated  Dialogue  on  normalisation  of  relations  between  Serbia  and  Kosovo  continued  in 
the reporting period with regular Dialogue meetings. The latest High-level Meeting between the leaders 
took place on 26 June 2024. 

Following  the  Chief  Negotiators’  meeting  on  17  September  2024,  both  Parties  officially  pledged  to 
engage constructively and to quickly take forward the normalisation process. In this context both Serbia 
and  Kosovo  committed  to  fully  implement  all  of  their  respective  obligations  stemming  from  the 
Agreement  on  the  Path  to  Normalisation  and  its  Implementation  Annex,  as  well  as  all  past  Dialogue 
agreements.  This follows earlier progress in the  normalisation of relations between Serbia and Kosovo, 
with the milestone Agreement on the Path to Normalisation reached in Brussels on 27 February 2023 
and  its  Implementation  Annex  agreed  in  Ohrid  on  18  March  2023,  preparatory  steps  towards 
establishing the Association/Community of Serb-majority Municipalities in Kosovo; advancements on the 
implementation  of  the  Energy  Roadmap;  mutual  recognition  of  licence  plates  and  commitments  to 
addressing the missing persons issue. In line with the Implementation Annex, the Agreement has formally 
become part of the respective EU accession processes of Serbia and Kosovo. 

Both  Serbia  and  Kosovo  are  expected  to  implement  their  respective  obligations  stemming  from  the 
Agreement on the Path to Normalisation. This includes the establishment of the Association/Community 
of  Serb  Majority  Municipalities  (A/CSM).  Kosovo  is  expected  to  start  the  process  leading  to  the 
establishment of the A/CSM based on the European proposal presented to the Parties on 21 October 2023. 
Serbia is expected to start delivering on its obligations from the Agreement in parallel by initiating the 
recognition of Kosovo’s documents, symbols and institutions. The Agreement is valid and legally binding 
for the parties and any formalities, including related to its adoption or “formalisation”, should not stand in 
the way of making progress in its implementation. The Parties also have an obligation to fully implement 
all past Dialogue Agreements. The constructiveness of the Parties will be assessed based solely on their 
own  implementation  performance.  Normalisation  of  relations  remains  an  essential  condition  on  the 
European path of both Parties and both risk losing important opportunities in the absence of progress. 

During the reporting period, tensions in the north of Kosovo remained high. Kosovo repeatedly conducted 
activities  contrary  to  its  obligations  under  the  Dialogue,  including  police  operations  against  Serbia-
supported offices and services in the north, the adoption of a regulation by the Central Bank of Kosovo on 
cash operations banning transactions in any currency other than Euro as of 1 February 2024, as well as the 
closure of the offices of the Serbian Postal Bank and the Serbian Post in the north of Kosovo.  The EU 
repeatedly  expressed  concerns  about  the  recurrent  lack  of  coordination  by  Kosovo  and  the  negative 
impact on people on the ground, while reiterating that the actions might lead to further escalation of an 
already  volatile  situation  –  most  recently  in  its  statement  of  30  August  2024.  The  decision  on  cash 
operations  effectively  prohibits  transfers  of  funds  from  the  Serbian  government  to  Kosovo  Serbs  and 
other  communities,  as  well  as  Serbia-supported  offices  in  Kosovo.  Regrettably,  a  mutually  agreeable 
temporary solution for the people most affected by this regulation could not be found. The normalisation 
process continues to be impacted by insufficient steps by Serbia to ensure accountability for the violent 
attack by armed Kosovo Serb assailants against Kosovo Police on 24 September 2023 in Banjska, which 
constituted the gravest escalation in recent years. 

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

-  The withdrawal of Kosovo Serbs from Kosovo institutions in November 2022 and the boycott of 
local elections in the north of Kosovo in April 2023 violate Serbia’s Dialogue obligations and they 
constitute  severe  backsliding  in  Serbia’s  compliance  with  the  April  2013  “First  agreement  of 
principles governing the normalisation of relations” and direct violation of the Justice Agreement of 
2015.  The  23  April  2024  vote  to  recall  the  four  Kosovo  Albanian  mayors  of  the  Kosovo  Serb-
majority municipalities in the north, which were elected in 2023, could have opened an avenue for the 
return of Kosovo Serbs to Kosovo institutions. However, the recall vote was boycotted by the Kosovo 
Serb electorate – inter alia due to the threshold of 50% of all registered voters  - the current mayors 

60 

 
 
thus remain in office for the time being. The return of Kosovo Serb officials to Kosovo Institutions 
and the holding of local elections in the north of Kosovo, called for by Serbia on 13 September 2024, 
has to be done in accordance with past Dialogue agreements and Kosovo law.   

-  There has still been no further progress on the implementation of the August 2015 Agreement, which 
laid down the principles for establishing the A/CSM. While the EU welcomed the presentation of a 
first draft statute of the A/CSM to the High-level Dialogue in May 2023 by the Management Team, 
the draft was not in line with the relevant Dialogue Agreements. Therefore, a European proposal for 
the  establishment  of the  A/CSM  in  Kosovo  was  presented to the  Parties  on  21 October  2023.  This 
proposal  is  based  on  European  standards  and  best  practices  and  fully  in  line  with  the  Kosovo 
constitutional  framework.  Serbia  and  Kosovo  are  now  urged  to  engage  constructively  on  the 
establishment of the A/CSM with no further delay. This obligation forms a part of the implementation 
of  the  Agreement  on  the  Path  to  Normalisation  of  Relations,  which  the  Parties  are  expected  to 
advance  on,  as  recalled  by  the  European  Council  in  October  2023.  The  issue  of  Serbia-supported 
structures  in  Kosovo  needs  to  be  addressed  in  this  same  context  and  not  through  unilateral  and 
uncoordinated measures.  

-  Serbia and Kosovo are expected to engage constructively on the opening of the Mitrovica bridge for 
vehicle traffic. During August 2024, Kosovo has insisted on the immediate full opening of the bridge. 
The  position  of  the  EU  remains  that  any  decision  or  action  on  its  opening  has  to  be  agreed  and 
coordinated in the context of the Dialogue and with security partners.  

- 

In  December  2023,  the  companies  KEDS  and  Elektrosever  signed  the  commercial  agreement 
necessary for Elektrosever to begin supplying electricity in the four northern Kosovo Serb-majority 
municipalities. The conclusion of this agreement unblocked the implementation of the 2022 Energy 
Roadmap detailing the implementation of the 2013 and 2015 Energy agreements. Billing and energy 
supply officially started in January 2024. The Parties are encouraged to agree on a transition period to 
enable  a  broader  coverage  of  energy  billing  and  payments,  as  well  as  necessary  infrastructure 
upgrades.  

-  As  regards  the  technical  Dialogue  agreements  (2011-2012),  many  are  not  or  only  partially 
implemented.  Until  sustainable  solutions  are  found,  both  Parties  need  to  remain  committed  to  the 
continued  implementation  of  the  Arrangements  on  Regional  Representation  and  Cooperation, 
which  enables  Kosovo’s  participation  in  regional  forums.  Neither  Party  should  block  the  work  of 
regional  forums  over  bilateral  disputes.  The  implementation  of  the  Agreements  on  cadastre  and 
acceptance  of  university  diplomas  agreements  is  still  pending  due  to  non-implementation  by 
Serbia.  Serbia  also  has  yet  to  address  the  issue  of  re-located  Serbian  administrative  customs 
structures with Kosovo denomination that operate from within Serbia. 

-  On  IBM,  the  Interim  Common  Crossing-Points (CCPs)  between  Serbia  and  Kosovo  continue  to  be 
operational.  Only  two  of  the  six  permanent  CCPs  have  been  established  (Merdare  and 
Mutivodë/Mutivode).  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  required  from  Serbia  to  close  illegal  roads  and  bypasses  to 
ensure  exclusive  use  of  official  crossing  points  for  goods  and  persons  entering  into  or  leaving 
Kosovo.  Serbia  should  allow  the  resumption  of  the  EU-facilitated  joint  IBM  meetings  at  all  levels 
(local, regional and central). 

-  On  freedom  of  movement,  the  EU  welcomes  the  phasing  out  of  plates  with  Kosovo  cities’ 
denomination  issued  by  Serbia  and  the  mutual  recognition  of  licence  plates,  which  took  place  in 
December 2023 and January 2024. The full implementation of the Freedom of Movement agreements 
still requires additional steps. 

61 

 
 
-  Both  Parties  need  to  fully  respect  the  Telecoms  Agreement  and  not  put  its  hitherto  successful 
implementation at risk in any way. The Parties are also expected to engage constructively and find 
sustainable solutions to the remaining issues such as frequency harmonisation and postal services 
through the Dialogue.    

-  The  processing  of  mutual  legal  assistance  requests  has  been  initially  stopped  by  Serbia.  Most 
recently, Kosovo has rejected a request for assistance in the Banjska case. Both Parties should act in 
accordance  with  the  relevant  Dialogue  Agreement.  Serbia  needs  to  resume  the  processing 
immediately and address also pending requests. 

-  Both  Parties  need  to  respect  the  Arrangements  for  Official  Visits  more  consistently.  Both  Serbia 
and  Kosovo  need  to  allow  the  visits  of  their  respective  Chief  Negotiator  and  other  government 
officials  when  they  are  announced  and  conducted  in  line  with  the  Arrangements,  which  has  not 
always been the case during the reporting period.  

-  No  progress  has been made  in  the implementation of  the  political  Declaration  on  Missing  Persons 
adopted  in  May  2023.  The  Parties  are  encouraged  to  refrain  from  politisation  of  this  humanitarian 
issue and start implementing the declaration immediately by, as the first step, agreeing to the Terms 
of Reference for the Joint Commission that is to be established as per the Declaration.  

Overall, Serbia and Kosovo have participated in the Dialogue, but they need to demonstrate more serious 
and constructive commitment to advance the normalisation process. Moving forward, Serbia and Kosovo 
also need to make further substantial efforts to avoid actions that undermine stability and rhetoric that is 
not conducive to dialogue and reconciliation.  

5. ABILITY TO ASSUME THE OBLIGATIONS OF MEMBERSHIP 

CLUSTER 2: INTERNAL MARKET 

This cluster covers free movement of goods (Chapter 1), freedom of movement for workers (Chapter 2), 
right of establishment and freedom to provide services (Chapter 3), free movement of capital (Chapter 4), 
company law (Chapter 6), intellectual property law (Chapter 7), competition policy (Chapter 8), financial 
services (Chapter 9), and consumer and health protection (Chapter 28). 

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 rules from creating unjustified barriers to trade. 

General principles 

In October 2024, Serbia adopted strategic documents to implement the EU acquis related to this chapter, 
which  remain  to  be  assessed  by  the  Commission.  Serbia  should  start  implementing  the  strategic 
documents  to  ensure  alignment  with  and  implementation  of  the  EU  acquis  related  to  this  chapter  for 
sectoral (‘new approach’ and ‘old approach’) and horizontal legislation In May 2024, Serbia submitted an 
application  to  the  Commission  to  start  negotiations  on  an  Agreement  on  Conformity  Assessment  and 
Acceptance  covering  the  EU  acquis  on  low  voltage  devices,  electromagnetic  compatibility,  machinery, 
and personal protective equipment. 

Non-harmonised area 

On  horizontal  measures,  Serbia  adopted  strategic  documents  relevant  to  ensure  compliance,  alignment 
with and implementation of EU acquis in this chapter in October 2024, which remain to be assessed by 

62 

 
 
 
the  Commission.  Serbia  should  start  implementing  the  strategic  documents  to  ensure  compliance  with 
Articles 34-36 of the TFEU. Serbia is partly aligned with the EU acquis on mutual recognition. 

Harmonised area: quality infrastructure 

Serbia  possesses  a  developed  quality  infrastructure  system,  overseen  by  the  Ministry  of  Economy  and 
supported by various key entities and market surveillance bodies. However, all the quality infrastructure 
institutions have human resources capacity shortages which need to be addressed.  On standardisation, 
there  was  an  increase  in  the  number  of  active  national  standardisation  technical  committees  in  the 
Institute for Standardisation of Serbia. 

The number of conformity assessment bodies in Serbia increased to 889. Serbia has now repealed most 
of the obligations it previously required regarding Serbian certificates of conformity for EU products and 
now  accepts  the  CE  marking  as  a  conformity  mark,  although  it  still  requires  Serbian  certificates  of 
conformity on drones, construction products such as cement, steel for the reinforcement of concrete, and 
specific types of screws. 

On accreditation, Serbian legislation remains partly aligned with the EU acquis and needs to complete 
full alignment in this area, as well as on metrology, where there was no progress on alignment with the 
latest  EU  acquis.  On  market  surveillance  there  has  been  a  reduction  in  the  number  of  market 
surveillance  staff  and  in  their  IT  resources.  Serbia  needs  to  align  with  the  latest  EU  acquis  on  market 
surveillance. 

Harmonised area: sectoral legislation 

In May 2024, Serbia submitted an application for Agreement on Conformity Assessment and Acceptance 
on Industrial Products (ACAA) in the field of low voltage, electromagnetic compatibility, machinery and 
personal protective equipment legislation. 

There was limited progress on alignment with EU ‘new and global approach’ product acquis notably on 
transposing  relevant  standards  in  the  field  of  eco-design  for  household  washing  machines  and  drying 
machines, and for cooling devices. 

There  was  no  progress  on  alignment  with  EU  ‘old  approach’  product  acquis,  and  the  capacity  for 
implementing the EU acquis for vehicle homologation still requires strengthening. 

On procedural measures, in 2024 Serbia published a national control list of weapons partly aligned with 
the EU. Serbian legislation remains partly aligned with the EU acquis on medical devices. 

On  anti-corruption,  the  Law  on  medicinal  products  and  medical  devices  and  its  by-laws  contain  anti-
corruption provisions; however, certain areas such as the promotion or advertising of medicinal products 
need to be improved. 

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. 

Regarding access to the labour market, the legislative framework is partially aligned with the EU acquis 
as EU citizens are currently covered by rules for third-country nationals. In 2023, a total of 50 397 work 
permits  were  issued,  of  which  2 071  to  EU  citizens.  In  July  2023,  Serbia  amended  the  legislation  on 
employment of foreigners, which simplified the working permit procedure; the new system has yet to be 
made fully operational. 

Serbia’s National Employment Service has continued to carry out preparations for joining EURES. 

63 

 
 
Serbia needs to initiate preparations for joining the European Labour Authority. 

Regarding  the  coordination  of  social  security  systems,  bilateral  agreements  are  in  place  with  20  EU 
Member  States.  No  new  bilateral  agreements  were  concluded.  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 (EHIC). Serbia currently applies 
agreements on the use of EHIC with nine EU Member States. 

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.  EU  rules on  postal  services  focus  on  improving  the  quality  of  universal  service,  gradual 
market opening to competition, and the establishment of an independent regulator. 

In  the  areas  of  the  right  of  establishment  and  freedom  to  provide  cross-border  services,  the  legal 
framework remains to be aligned with the EU acquis. The horizontal Law on services, aiming to align 
with  the  EU  Services  Directive,  remains  to  be  adopted.  The  institutional  framework  needs  to  be 
strengthened.  A  point  of  single  contact  has  not  been  established;  its  establishment  and  functioning  are 
dependent on the adoption of the horizontal Law on services. 

In the area of postal services, the legal framework is aligned with the First and Second Postal Services 
Directives as well as partly with the Third Postal Services Directive. The national legislation remains to be 
aligned  with  the  Regulation  on  cross-border  parcel  delivery  services.  Serbia  should  complete  the 
alignment  with  the  EU  postal  acquis  and  ensure  compliance  with  the  new  postal  market  rules.  The 
national  regulatory  authority  is  sufficiently  staffed  to  carry  out  its  current  tasks  related  to  the  postal 
market. The action plan of the Postal Services Development Strategy for 2021-2025 is implemented.  

In the field of mutual recognition of professional qualifications, national legislation is largely aligned 
with  the  EU  acquis.  A  preliminary  list  of  50  regulated  professions,  drafted  with  EU  support,  is  still 
pending adoption. Further alignment of the relevant sectoral legislation is still needed. 

Chapter 4: Free movement of capital 

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

In  the  field  of  capital  movements  and  payments,  the  institutional  framework  is  in  place.  The  legal 
framework  is  partially  in  line  with  the  EU  acquis.  Certain  restrictions  on  capital  movements  remain. 
These must be justified, targeted and proportionate and should be gradually lifted. Administrative burden 
for  entities  engaging  in  foreign  exchange  operations  remain  significant.  EU  citizens  still  do  not  have 
equal treatment regarding the acquisition of real estate and agricultural land, which is not compliant with 
Serbia’s obligations under the SAA. 

On payment systems, some progress was made during the reporting period. In July 2024, amendments 
to the Law on Payment Services to align  with the Payment Services Directive (PSD2) entered into force 
and will be applicable as of 6 May 2025. The relevant by-laws are to be adopted no later than 8 February 
2025.  Serbia  continued  its  preparatory  work  to  comply  with  the  Single  Euro  Payment  Area  (SEPA) 
requirements.    The  Law  on  multilateral  interchange  fees  and  special  operating  rules  for  card-based 

64 

 
 
payment  transactions  is  still  not  aligned  with  the  EU  acquis  and  SAA  obligations  (See  Chapter  8  – 
Competition policy). 

On the fight against money laundering and terrorism financing, the legal framework is in place and 
partially  in  line  with  the  EU  acquis.  Serbia  continued  to  implement  the  2022-2024  action  plan  of  the 
national anti-money laundering/countering the financing of terrorism strategy in a satisfactory manner. 
The institutional framework is in place but needs further strengthening through increased administrative 
capacity in the Administration for Prevention of Money Laundering (APML). 

In  October  2023,  the  Law  on  prevention  of  money  laundering  was  amended  to  include  the  Central 
Securities  Depository  and  Clearing  House  in  the  list  of  obliged  entities  under  this  law.  In  December 
2023, MONEYVAL concluded follow-up procedures under MONEYVAL’s fifth round of evaluations, 
indicating that Serbia implemented all 40 Recommendations to at least the level of largely compliant. In 
2023,  1 464  suspicious  transactions  were  reported  to  the  APML  and  by  September  2024,  1  288 
suspicious transactions had been reported, including 768 new cases. In 2024, its administrative capacity 
remains limited with 30 employees (42 envisaged).  

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. 

As regards company law and corporate governance, Serbia’s legislation is largely aligned with the EU 
acquis.  Adoption  of  a  new  law  on  takeovers  of  joint-stock  companies  and  related  legislation  to  align 
with  the  EU  acquis  on  company  takeovers  (Directive  2004/25)  is  still  pending.  Further  alignment  is 
needed with the directives on the use of digital tools (Directive 2019/1151), on cross-border conversions, 
mergers and divisions (Directive 2019/2121) and on gender balance among directors of listed companies 
(Directive 2022/2381).  Serbia’s Corporate Governance Code is based on EU best practice and OECD 
principles.  Company  information  in  the  business  register  is  stored  electronically  in  a  database,  which 
needs  to  be  technically  ready  to  interconnect  with  the  Business  Registers  Interconnection  System 
(BRICS) upon EU accession. Serbia’s Law on companies defines the formation of a European Company 
and  European  Economic  Interest  Grouping  but  there  is  no  alignment  yet  regarding  the  statute  for  a 
European cooperative society. 

Regarding  company  reporting,  Serbia  has  yet  to  align  with  the  2022  Directive  on  corporate 
sustainability reporting and  the 2021  Directive  on  the  disclosure  of income  tax  information  by certain 
undertakings  and  branches.  The  Law  on  capital  market  is  partially  aligned  with  the  EU  Transparency 
Directive for listed companies.  

Chapter 7: Intellectual property law 

The EU has to a large extent harmonised rules for the legal protection and enforcement of intellectual 
property  rights  (IPR),  covering  notably  patents,  trade  mark  and  designs,  biotechnological  inventions 
and  pharmaceuticals,  trade  secrets,  (craft  and  industrial)  geographical  indications,  supplementary 
protection certificates, copyright and related rights.  

Work  on  a  new  law  on  copyright  and  related  rights  is  ongoing,  with  the  aim  to  further  align  the 
national  legislation  with  the  EU  acquis,  in  particular  with  the  EU  directives  on  collective  rights 
management, on orphan works and on certain permitted uses of certain works and other subject matter 
protected by copyright and related rights for the benefit of persons who are blind, visually impaired or 
otherwise  print-disabled.  Serbia  has  yet  to  align  with  Directive  2019/789  on  the  exercise  of  copyright 

65 

 
 
and  related  rights  applicable  to  certain  online  transmissions  of  broadcasting  organisations  and 
retransmissions of television and radio programmes, and Directive 2019/790 on copyrights and related 
rights in the Digital Single Market.   

On  industrial  property  rights,  the  legislative  framework  is  in  line  with  the  relevant  EU  acquis.  The 
Intellectual Property Office is relatively well staffed and efficient in registering trademarks. 

On enforcement, a new strategy on development of intellectual property remains to be adopted. Work to 
further  align  with  the  EU  Directive  on  the  enforcement  of  IPR  is  ongoing.  The  Intellectual  Property 
Office established an enforcement unit in charge of coordinating the work of the  coordination body for 
the  enforcement  of  IPR,  which  intensified  its  work  in  2023.  However,  the  electronic  platform  for 
information  exchange  among  IPR  enforcement  institutions  remains  to  be  launched.  Due  to  inadequate 
specialisation and the increasing number of new cases, the capacity of the judiciary to handle IPR cases 
remained limited. 

Intellectual Property Office has an ongoing, but limited, bilateral collaboration with the European Union 
Intellectual Property Office in the framework of inter alia an MoU, focusing mainly on convergency of 
common  practices,  technical  and  operational  support  with  harmonisation  of  acquis  and  examination 
guidelines, as well as integration into EUIPO data bases and networks. 

Chapter 8: Competition policy 

EU  rules protect free  competition.  They  include antitrust  rules  against restrictive  agreements  between 
companies  and  abuse  of  a  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. 

Antitrust and mergers 

The legislative framework is broadly in line with Articles 101 and 102 TFEU and related provisions of 
the  SAA,  but  needs  to  be  fully  brought  in  line  with  EU  guidelines  and  communications.  Three  block 
exemption regulations remain to be adopted. No progress was made on 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. 

Regarding the institutional framework, the Commission for Protection of Competition (CPC) has built 
a reputation as an operationally independent institution over the years.  The level of fines in 2023 was 
three  times  more  than  in  2022.  Work  should  continue  on  sustaining  a  credible  enforcement  record, 
decisions should be systematically published, and the transparency of the institution’s work needs to be 
strengthened. 

The  enforcement  capacity  of  the  CPC  is  adequate.  Consulting  the  CPC  on  all  relevant  legislation 
should continue and its opinions  should be systematically taken into account. The CPC should further 
step  up  its  advocacy  activities.  The  capacity  and  specialisation  of  the  judiciary  to  deal  with  complex 
competition cases remains modest and needs to be improved significantly. 

State aid 

Regarding the legislative framework on State aid, the Law on State aid control is broadly in line with 
the EU acquis and the relevant provisions of the SAA. However, implementing legislation remains to be 
further  aligned  with  the  EU  acquis.  The  existing  State  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 

66 

 
 
not yet aligned with the EU acquis. The European Commission’s comments on the inventory of State aid 
schemes have not been taken into account 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 has to be drafted. 

On the institutional framework, the operational independence of the Commission for State Aid Control 
(CSAC) needs to be demonstrated by establishing a transparent track record that shows consistent and 
satisfactory  implementation  of  the  law.  CSAC’s  enforcement  capacity  in  terms  of  staffing  should  be 
further strengthened. 

The  implementation  of  the  Law  on  State  aid  control  should  be  further  improved.  In  particular,  the 
notification  and  the  standstill  obligations  are  still  not  respected  systematically,  and  State  aid  is 
occasionally  provided  to  economic  operators,  particularly  foreign  investors,  without  prior  approval  by 
CSAC. It is important that Serbia ensures that all State aid grantors, including the municipalities, notify 
State aid ex ante. The electronic platform to help monitor compliance regarding the cumulation of aid is 
not  yet  completed.  CSAC’s  annual  reports  on  State  aid  granted  should  be  adopted  timely  by  the 
government. Advocacy activities among aid-granting authorities need to continue as there is systematic 
lack of awareness of State aid rules. 

On  liberalisation,  the  two  decrees  with  the  provisions  on  financing  of  services  of  general  economic 
interest  need  to  be  further  aligned  with  the  acquis.  Enforcement  of  competition  rules  for  public 
companies  needs  to  be  intensified.  There  is  no  evidence  of  the  existence  of  commercial  monopolies 
within the meaning of Article 37 TFEU. 

Chapter 9: Financial services 

EU  rules  aim  to  ensure  fair  competition  among,  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. 

In the area of banking and financial conglomerates, the institutional and legal framework is in place, 
with a good level of alignment with the previous version of the Capital Requirements Regulation and the 
Capital  Requirements  Directive  (CRR/CRD).  Work  needs  to  be  continued  to  align  with  the  latest 
versions  of  CRR/CRD.  Regarding  bank  resolution,  Serbia  is  not  yet  fully  aligned  with  the  revised 
version  of  the  BRRD,  including  with  parts  of  BRRD  1,  notably  on  the  establishment  and  use  of  a 
dedicated resolution fund financed with contributions from banks. 

Serbia is partially aligned with the EU acquis regarding insurance and occupational pensions. Overall, 
the sector is underdeveloped, notably in the area of life insurance and a new Law on compulsory traffic 
insurance is yet to be developed. Preparations for alignment with the Solvency II Directive are ongoing 
in line with the strategy for implementation. 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,  the  legal  framework  is  partially  in  line  with  the  EU 
acquis,  notably  regarding  settlement  finality  and  Central  Securities  Depositories.  The  institutional 
framework  is  in  place  but  should  be  further  strengthened,  notably  regarding  financial  collateral, 
Securities  Financing  Transactions  and  regarding  over-the-counter  (OTC)  derivatives,  central 
is 
counterparties  and 
implementing  its  Capital  Market  Development  Strategy  2021-2026,  focusing  on  completing  the 
implementing legislation of the Law on capital market.  

trade  repositories  (European  Market  Infrastructure  Regulation).  Serbia 

67 

 
 
On securities markets and investment services, Serbia is moderately aligned with the EU acquis. The 
institutional framework in this area needs to be strengthened including the administrative capacity of the 
Securities Commission in the area of financial instruments. Serbia has a high level of alignment with the 
Markets in Financial Instruments Directive (MiFID II), the Prospectus Regulation and the Market Abuse 
Regulation  but  the  level  of  alignment  with  the  European  Markets  in  Financial  Instruments  (MiFIR) 
framework is low. On investment funds, the Law оn open-ended investment funds with public offering is 
partially  aligned  with  the  Directive  relating  to  undertakings  for  collective  investment  in  transferable 
securities  (UCITS).  Further  work is  needed to  fully  align  with the  Directive  on alternative investment 
fund managers (AIFMD), including with the 2024 amendments to AIFMD and UCITS directives. 

The legal framework for sustainable and digital finance is partially in place whereas the institutional 
framework needs further strengthening. The NBS and the Securities Commission are the two competent 
authorities for licensing services related to digital currencies and token in line with the Law on digital 
assets. Serbia does not have a national strategy on sustainable finance. 

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, as well as medicines for human and veterinary use. The EU also has 
rules for upholding patients’ rights in cross-border healthcare and in preparing for and responding to 
cross-border health threats including communicable diseases. 

Consumer protection 

On  horizontal  aspects,  Serbia’s  legislation  is  largely  aligned  with  the  EU  consumer  protection 
legislative framework, All the remaining implementing legislation for the Law on consumer protection 
has  been  adopted  during  the  reporting  period;  however, the law  needs to  be  updated  to  align  with  the 
latest EU acquis. 

On enforcement and redress, the number of alternative dispute resolution (ADR) bodies in Serbia has 
increased to 65, and the number of solved cases in ADRs has increased from 1.786 in 2023 to more than 
2.424 in 2024. In its capacity as an ADR body in charge of financial institutions, the National Bank of 
Serbia (NBS) resolved 743 complaints related to banks, and 412 related to insurance companies. 

On  product  safety,  the  sanitary  inspection’s  market  surveillance  administrative  and  operational 
capacities  need  to  be  strengthened.  On  non-safety-related  issues,  Serbia´s  legislation  remains  partly 
aligned with the EU acquis. 

Public health 

In the area of public health, Serbia needs to ensure the sustainability of the public health insurance fund, 
implement  the  national  plan  for  human  resources  in  the  health  sector,  and  full  compliance  with  EU 
health  indicators.  On  eHealth,  although  in  2023  Serbia  adopted  a  Law  on  health  records  and 
documentation,  this  needs  to  be  amended  to  align  it  to  EU  data  protection  acquis,  standards  and 
principles. 

There  was  no  progress  in  aligning  with  the  EU  acquis  on  tobacco  control.  Serbia  should  intensify 
effective inspections in this sector to ensure effective implementation of tobacco control measures. 

There  was  also  no  progress  in  aligning  with  the  EU  acquis  on  patients’  rights  in  cross-border 
healthcare,  and  on  blood,  tissues,  cells  and  organs.  Surveillance  and  response  capacities  for  serious 
cross-border  health  threats,  including  communicable  diseases,  remain  limited  and  in  need  of 

68 

 
 
modernisation.  Serbia  needs  to  increase  awareness  of  the  significance  of  childhood  vaccination  and 
implement  stricter  controls  on  prescriptions  of  antibiotics  in  order  bolster  its  efforts  on  antimicrobial 
resistance. Serbian legislation remains partly aligned with the EU acquis on medicines for human use 
and on medicines for veterinary use. Serbian legislation remains partly aligned with the EU acquis on 
medical devices. Following the call for interest to join the Critical Medicines Alliance, two entities from 
Serbia are now participants. 

On preventive measures, community-based mental health services remain underdeveloped, with low 
accessibility,  while  the  2019-2026  mental  health  protection  programme  remains  to  be  costed  and 
implemented. 

There  were  no  new  developments  on  cancer,  on  nutrition  and  physical  activity,  on  drug  abuse 
prevention and harm reduction. There were also no new developments on health inequalities. 

CLUSTER 3: COMPETITIVENESS AND INCLUSIVE GROWTH 

This cluster covers Chapters 10 (Digital Transformation 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). 

Chapter 10: Digital transformation and media 

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

Regarding electronic communications, the full operational and financial independence of the Regulatory 
Agency for Electronic Communications and Postal Services (RATEL) remains to be ensured, as well as 
steps  to  improve  the  regulator’s  administrative  capacity  through  staff  retention  measures  such  as  a 
revision  of  the  existing  salary  cap.  In  August  2024,  Serbia  adopted  a  new  strategy  for  development  of 
Electronic Communications systems until 2027. 

The  ultra-fast  broadband  communication  infrastructure  roll-out,  connecting  households  and  schools  in 
rural areas, continued. The law on broadband, aiming to align with the Gigabit Infrastructure Act, is still 
to be adopted. 

Serbia  has  been  preparing  for  the  5G  frequency  auction  and  undertook  technical  steps  to  create  the 
necessary  preconditions  for  the  deployment  of  5G  technology.  However,  Serbia  is  yet  to  adopt 
implementing  legislation  on  minimum  conditions  for  issuing  individual  operator  licences  for  spectrum 
use  for  the  5G  frequency  auction.  Serbia  is  expected  to  implement  the  EU  5G  Cybersecurity  Toolbox 
before  the  issuance  of  operator  licences.  Regarding  regional  integration,  Serbia  has  not  signed  the 
Memorandum of Understanding on a 5G roadmap for digital transformation. 

The 112 European emergency number calling system has not yet been fully implemented according to EU 
standards. 

Regarding  competitive  safeguards,  RATEL  proceeded  with  market  analysis,  designating  Significant 
Market  Power  operators  and  imposing  relevant  obligations.  Several  legal  disputes  and  proceedings  are 
ongoing involving Telekom Srbija and private companies in the context of the high concentration of the 
media market in Serbia. 

69 

 
 
 
Regarding  digital services, Serbia continued with upgrading the government service information portal 
and introducing new e-Gov services. Serbia needs to align with the Digital Services and Digital Market 
Acts. 

Regarding data, Serbia has not yet fully aligned with the EU’s Open Data Directive on the reuse of public 
sector information data. 

Regarding  artificial  intelligence,  Serbia  has  undertaken  to  align  with  the  newly  adopted  AI  Act  by 
December 2025, following the EU’s risk-based approach. 

Regarding  digital  trust  and  cybersecurity,  Serbia  possesses  the  relevant  legal  framework  and 
institutional  set-up  in  the  field  of  information  society  and  cybersecurity.  Further  legislative  alignment 
with the EU acquis on cybersecurity, including with the NIS 2 Directive, is needed.  Serbia should align 
with the new European Digital Identity and Trust services framework, in preparation for the roll-out of an 
interoperable national digital wallet. 

On  media,  the  Law  on  electronic  media  adopted  in  October  2023  introduced  several  legislative 
improvements, including strengthening the legal framework for the independence and transparency in the 
work of REM and reinforcing its mandate to tackle threats to media pluralism. 

However, the adopted media legislation must be further amended  to fully align with the EU  acquis and 
European standards. Following the new provisions that allow state-owned companies to be media owners, 
safeguards to protect media pluralism and editorial independence remain to be improved. It should also be 
clarified  that  antitrust  and  merger  control  rules  apply  to  the  media  sector.  Despite  the  new  provisions 
aimed at strengthening REM’s independence and efficiency, the regulator failed to exercise its mandate to 
the full potential and serious concerns regarding its independence in practice persist. In November 2023, 
REM appointed its new director, as per the adopted law. The procedure to elect a new REM Council by 4 
November 2024 has not been launched yet, in breach of the provisions of the Law on electronic media. In 
June  2024,  REM  filed  an  appeal  to  challenge  the  constitutionality  of  the  respective  provisions,  which 
however  should  have  no  suspensive  effect  on  the  law’s  implementation.  The  competition  for  the 
allocation of the fifth frequency for national broadcasting, launched in 2022, remains incomplete without 
a  justified  reason.  The  Law  on  public  broadcasters  is  yet  to  be  amended  to  address  the  shortcomings 
identified by the media strategy. Serbia is still not fully aligned with the revised European Audiovisual 
and Media Services Directive, notably with its provisions on audiovisual commercial communication. 

Chapter 16: Taxation 

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

In the area of taxation, the institutional framework is in place. 

Regarding indirect taxation, the legislative framework is partially aligned with the EU acquis. The Law 
on  electronic  invoicing  and  related  implementing  legislation  were  amended,  aimed  at  improving  the 
integration between the electronic invoicing and e-fiscalisation systems and streamlining the process of 
VAT tax returns. The Law on excise duties has yet to be fully aligned with the EU acquis. An effective 
system to control and monitor the movement of excisable products is not yet fully in place. 

With regard to direct taxation, the legislative framework is partially aligned with the EU acquis. Serbia 
modernised the process of tax returns by personal income tax by implementing a digital system of pre-

70 

 
 
filled tax returns. The system for tax payments by freelancers was also modernised through the launch of 
the ‘freelancer’s portal’ which foresees digital calculation and submissions for this category of taxpayers. 

The  EU  cooperates  with  Serbia  through  an  enhanced  dialogue  on  tax  good  governance  within  the 
framework of the EU list of non-cooperative jurisdictions for tax purposes. 

Regarding  administrative  cooperation  and  mutual  assistance,  the  institutional  and  legislative 
framework is largely in place and aligned. Serbia remains committed to automatically exchange financial 
account information based on the OECD Global Standards. 

With  regard  to  operational  capacity  and  computerisation,  the  institutional  framework  needs  to  be 
strengthened.  Administrative  capacities  in  the  Tax  Administration,  particularly  with  regard  to 
enforcement capacities, should be bolstered. Efforts to move forward with improving the IT system were 
delayed. 

Chapter 17: Economic and monetary policy 

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

On monetary policy, the institutional framework is in place and the legal framework is largely aligned 
with the EU  acquis. However, the full functional, institutional, personal, and financial independence of 
the NBS still needs to be ensured. Work is ongoing to adopt amendments to the Law on the NBS, in line 
with the EU acquis, whereas further amendments will still be needed to the Law on public property. 

Regarding  economic  policy,  the  legal  framework  is  partially  aligned  with  the  EU  acquis.  Further 
alignment with the Directive on requirements for budgetary frameworks is needed through amendments 
to the Law on the budget system regarding macroeconomic and fiscal projections, a 3-year expenditure 
perspective, transparency, and accounting and statistical reporting. In September 2023, Serbia adopted an 
action  plan  to  strengthen  the  medium-term  expenditure  framework  2023-2026,  including  expenditure 
ceilings for two consecutive years. The alignment of fiscal reporting with the European system of national 
and regional accounts (ESA 2010) is yet to be fully completed. 

The budget procedure, including for amending budgets, needs to be systematically respected and public 
participation  in  the  budget  process  and  budget  oversight  by  the  legislature  needs  to  be  improved. 
Furthermore, the Government occasionally introduces ad hoc extra budgetary expenditures, such as one-
off payments to particular categories of the population and support to state-owned enterprises. 

The  institutional  framework  is  well-developed,  but  programme  budgeting needs to  be strengthened  and 
administrative and IT capacity bolstered.  

The government adopted and submitted its 2024-2026 Economic Reform Programme (ERP) on time on 
15 January 2024. As in previous years, its analytical diagnostics were solid. Core reforms under the ERP 
continue from the previous programme and are in line with key reforms presented in the Reform Agenda. 
Macro-fiscal  plans  provide  for  some  fiscal  adjustment  in  line  with  the  domestic  fiscal  rules. 
Implementation of policy guidance set out in the conclusions of the Economic and Financial Dialogue of 
May 2023 has been partial. 

71 

 
 
Chapter 19: Social policy and employment 

EU rules in the social field include minimum standards for labour law, equality, health and safety at work 
and non-discrimination. They also promote social inclusion and social protection, and social dialogue at 
EU level. 

In the field of labour law, the 2014 law remains only partially aligned with the EU acquis. The number 
of labour inspectors continues to be below the target of the Chapter 19 action plan. The number of child 
labour cases reported in 2023 by the Labour Inspectorate (0 case) and Centres for Social Work (16 cases) 
is  under-reported,  compared  with  the  Labour  Force  Survey.  Serbia  has  not  yet  addressed  the 
recommendations  of  the  Council  of  Europe  Group  of  Experts  on  Action  against  Trafficking  in  Human 
Beings (GRETA) which called for proactive and thorough investigation of allegations of trafficking for 
labour exploitation involving foreign workers. The law on inspection oversight does not comply with the 
International  Labour  Organisation  (ILO)’s  conventions  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, the Law on safety and health at work from 2023 is partially 
aligned with the EU acquis. The number of reported workplace fatalities decreased in 2023 (to 42 from 56 
in 2022), with most cases occurring in the construction industry. 

Social dialogue, and the involvement of social partners in policy developments relevant to them, remain 
weak. In September 2024, an agreement was reached within the Economic and Social Council on a 13.7% 
nominal increase of the minimum wage. A new law on the right to strike has yet to be adopted. No new 
sectoral  collective  bargaining  agreements  were  signed.  Some  complaints  brought  up  to  ILO  about  the 
infringement of trade union and workers’ rights have not been resolved yet. Capacity building of social 
partners needs to continue. 

On  employment  policy,  budget  allocations  for  active  labour  market  policies  in  2024  remained  below 
0.1% of GDP. The public employment advisers ratio to job seekers is too low. In December 2023, Serbia 
adopted an implementation plan for the Youth Guarantee covering the 2023-2026 period to reduce youth 
unemployment  (18.5%  in  2023)  and  NEET  rate  (15.2%  in  2023  for  people  aged  15-29).  A  Youth 
Guarantee pilot scheme has started in three employment offices in January 2024. 

Regarding labour force participation and unemployment rate see the statistical annex and the section 
on the functioning of the labour market under 2.3 Economic criteria. 

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 2023, according to the latest survey on income 
and living conditions (SILC), the at-risk-of-poverty or social exclusion rate was 28.1% (EU-27 21.6%). 
Public  expenditure  on  social  protection  and  budget  transfers  as  a  share  of  GDP  continue  to  decrease. 
Concerns  remain  on the impact  of  the  Social  Card on  Roma  and  other  vulnerable individuals  who  risk 
being  unduly  excluded  from  the  benefits  if  their  specific  circumstances,  in  addition  to  the  raw  data 
automatically  processed  by  the  social  card register,  are  not  sufficiently  assessed by  social  welfare  staff 
before a decision being made. The system would benefit from a human rights-based impact assessment 
and  outreach  campaigns.  A  new  strategy  for  social  protection  and  amendments  to  the  law  on  social 
welfare  are  increasingly  delayed.  Means-tested  social  assistance  programmes,  with  strict  eligibility 
criteria, do not sufficiently reach the poor; a large share of children living in poverty are not covered by 
any benefit, and the social protection system remains understaffed. The system of earmarked transfers to 
the local level is still not implemented systematically and transparently. 

72 

 
 
In  the  area  of  deinstitutionalisation,  an  action  plan  and  funding,  to  implement  the  strategy  for 
deinstitutionalisation  and  development  of  community-based  services  adopted  in  2022,  is  increasingly 
overdue. In the field of non–discrimination in employment and social policy, most complaints received 
by Serbia’s Commissioner for the Protection of Equality are related to the area of employment  (see also 
Chapter  23  –  Judiciary  and 
fundamental rights). 

of 

the 

area 

labour  market 

In 
equal 
opportunities  for  women  and 
men  in  employment  and  social 
policy, the position of women on 
the 
in  Serbia 
remains  unfavourable  compared 
to 
the  position  of  men.  The 
employment rate for men (20-64-
is  12.5  percentage 
year-olds) 
points  higher  and  their  activity 
rate  is  12.8  percentage  points 
higher than those for women. The 
gender pay gap is 8.8%. 93.7% of 
women working part-time reported that the reason for engaging in part-time work is related to "looking 
after children or persons with disabilities”. The gender pension gap stands at 17%. In March 2024, Serbia 
adopted a regulation on the methodology for calculating unpaid household work. Although the legislation 
grants  both  maternity  and  paternity  leaves,  gender-based  stereotypical  preconceptions  persist  about 
childcare  and  household  work  being  a  woman’s  responsibility.  Maternity,  paternity  and  parental  leave 
rights in the legislation are not aligned with the EU acquis, including the Directive on Work-Life Balance. 
Serbia has not ratified ILO Convention. 

Chapter 20: Enterprise and industrial policy 

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

Concerning industrial policy principles, Serbia’s institutional and policy framework is largely in place. 
Serbia  continues  to  implement  its  strategy  for  industrial  development  2021-2030  and  has  started  the 
implementation of the new action plan for 2024-2025, adopted in April 2024. 

Regarding enterprise policy, reforms concerning the ownership and management of SOEs are advancing 
but at a too slow pace. Serbia continues to implement its SOE strategy and has started the implementation 
of the new action plan for 2024-2025 adopted in April 2024. Serbia’s new SOE law entered into force in 
September 2024. However, its proper implementation is dependent on several by-laws, some of which, in 
line with the new law, have yet to be adopted. Serbia continues to make progress on its privatisation and 
restructuring process of SOEs. More than 500 companies in the privatisation portfolio have been resolved, 
whereas 49 companies remain. 

Serbia’s  new  SME  development  strategy  for  2023-2027,  and  the  related  action  plan  are  being 
implemented since the end of 2023. 

Serbia has been participating in the SME Pillar of the Single Market Programme after having signed the 
Association Agreement in September 2023.  

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On combating late payments in commercial transactions, Serbia’s legislation is largely aligned with the 
EU  acquis.  Serbia  needs  to  align  its  rules  on  payments,  indemnity  interest  rates,  expedited  recovery 
procedures  and  compensation  with  the  EU  Directive  on  combating  late  payments  in  commercial 
transactions to reach full alignment. 

Serbia  should continue  to  improve the  predictability of  the  business environment,  with  an  emphasis on 
ensuring that all relevant legislation undergoes timely and comprehensive public consultations, including 
through effective communication of the e-consultation portal. 

Serbia  has a range  of  enterprise  and  industrial  policy  instruments  in  place  to  support  enterprise  and 
industry,  including  grants,  subsidies,  tax  exemptions  and  guarantee  schemes.  The  budget  for  measures 
supporting SMEs and entrepreneurship is growing but remains modest. 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 need to better integrate SMEs into domestic and international supply chains. 

On sectoral policies, Serbia has a number of sector-specific strategies including in the areas of energy, 
transport,  education,  media,  artificial  intelligence  and  tourism.  In  addition,  Serbia  is  implementing  its 
smart specialisation strategy (see also Chapter 25 on Science and research). 

Chapter 25: Science and research 

The EU provides significant support to research and innovation. All Member States can participate in the 
EU’s  research  and  innovation  programmes  and  benefit  from  them,  especially  where  there  is  scientific 
excellence and solid investment in research and innovation. 

The legal framework is in place and partially in line with the EU acquis while the institutional framework 
is functional. 

On  research  and  innovation  policy,  Serbia  has  been  implementing  its  2021-2025  strategy  for 
development  of  a  start-up  ecosystem  and  its  new  action  plan  for  2024.  The  Science  Fund  is  fully 
operational as a funding mechanism with an increasing number of funded programmes (from 8 to 11) and 
of the budget (from EUR 74.5 million to EUR 107.5 million). 

The  national  level  of  investment  in  research  remains  low  at  0.97%  of  GDP  in  2022    (0.99%  in  2021). 
Serbia is in the fifth year of implementing its smart specialisation strategy, with the second action plan 
extending to 2025. With over 70% of the activities from the first action plan successfully implemented, 
Serbia shows tangible progress in implementing strategic goals. 

Serbia takes part in Horizon Europe as an associated country, having received EUR 38.7 million in 2023. 
Serbia  is  also  successfully  participating  in  EUREKA  and  the  European  Cooperation  in  Science  and 
Technology. 

Concerning  innovation  measures,  the  Innovation  Fund,  four  science  and  technology  parks  and  14  new 
incubators continue to be active with increasing financial contributions. The Innovation Fund’s Katapult 
accelerator and Serbia Ventures Programme have significant impact on the innovation ecosystem. Further 
integration into the new European Innovation Agenda and activities of the European Innovation Council 
is strongly encouraged. 

Serbia is an emerging innovator in the European Innovation Scoreboard, with a score of 62.8% in 2024 – 
above  the  average  of  the  emerging  innovators  group.  The  performance  gap  with  the  EU  is  nonetheless 
increasing. Private sector research and innovation expenditure remain low. 

74 

 
 
Chapter 26: Education and culture 

The  EU  supports  cooperation  in  education  and  culture  through  funding  programmes  and  the 
coordination  of  Member  State  policies  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. 

In the area of education and training, the policy framework and the institutional framework are in place. 
There  is  a  certain  vulnerability  for  corruption  in  the  sector  as  a  whole  and  for  higher  education  in 
particular. 

Serbia continues to implement its 2030 education strategy and has started the implementation of the new 
action plan for 2023-2026, which was adopted in October 2023. 

The level of public spending on education in Serbia in 2023 was 3.2%, which is below the EU average. 
The  student  population  continue  to  decrease  due  to  negative  demographic  trends  and  emigration.  The 
coverage of children with early childhood education and care education (ECEC) is slowly increasing (6.2 
% in 2023 for age 6 months to 6.5 years). However, further efforts are needed to increase participation in 
preschool  education,  including  through  ensuring  equitable  ECEC  for  the  most  disadvantaged  children. 
The enrolment rate in mandatory ECEC has been broadly stable over the past years oscillating at around 
97%, but picked up to 97.9% in 2023. The rate of early school leavers is on a downward path for the past 
years and reached 5.8% in 2023. Lifelong learning participation is slowly increasing and reached 6.1% in 
2023.  

Serbia’s digital transformation of the education system is ongoing including developing infrastructure and 
teacher  digital  competencies.  The  pre-university  level  curricula  include  mandatory  subjects  to  develop 
digital  skills  and  competencies,  including  computer  science.  However,  development  of  the  education 
management information system requires further consolidation. Further efforts are needed to align digital 
education with the EU Digital Education Action Plan 2021- 2027. Serbia has yet to incorporate green and 
environmental topics into its curricula. 

The Programme for International Student Assessment (PISA) 2022 results published end 2023 were about 
the same as in 2018 in mathematics, reading and science. The results show higher proportion of students 
of 15-year-olds failing to demonstrate basic proficiency (level 2) in reading (36%), in maths (43%) and in 
science (35%) as compared to the OECD average. The relative underperformance of Serbian students in 
reading is confirmed also by the findings of the latest Progress in International Reading Literacy Study 
(PIRLS 2021), which show that Serbia’s performance in reading is below the international median. 

Serbia should commit adequate funding and human resources for sustained participation in international 
assessments such as the Teaching and Learning International Survey (TALIS) and PISA 2025.  

As of the 2023/2024 school year, most VET curricula offered in upper secondary education are based on 
qualification  standards.  However,  Serbia  should  continue  to  modernise  the  curricula  to  improve  VET 
relevance and further develop the national work-based learning model for VET. The employment rate of 
VET graduates (aged 20-34) is low and dropped further to 65.6% in 2023. The lack of opportunities for 
reskilling and upskilling in Serbia is a structural barrier to youth and adult employment which should be 
addressed. Work on the recognition of informal and non-formal training is progressing only slowly and is 
yet to be scaled up systematically. 

On quality assurance in higher education, the National Accreditation Body (NAB) is funded also from the 
state budget since September 2023. This is in line with the European Association for Quality Assurance in 
Higher Education (ENQA) recommendations. The NAB’s membership of ENQA was suspended in 2020, 

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and an application for renewed membership has yet to be submitted. Furthermore, qualification standards 
for  higher  education  have  yet  to  be  developed  and  linked  with  quality  assurance  procedures.  The 
attainment  of  tertiary  level  qualifications  for  persons  aged  25-34  reached  34.7%  in  2023,  which  is 
significantly  below the  2030  EU  target  of  45%.  Serbia is a member  of the  European  Higher  Education 
Area (Bologna process).    

Measures to reduce drop-out rates and segregation needs to be enforced focusing also on the inclusion of 
women  and  girls  in  education  and  training.  Children  with  disabilities  do  not  have  access  to  teaching 
assistants. Free textbooks are provided for an extended number of vulnerable categories of students. The 
education system has demonstrated flexibility in integrating migrants. The assistive technology resource 
centres need to become functional to provide the relevant additional support services to ensure inclusive 
education. Mechanisms for prevention of, and protection against, violence and discrimination need to be 
fully implemented. 

Serbia  has  been  successfully  participating  in  the  Erasmus+  programme  as  an  associated  country  since 
2019.  In  2023,  Serbian  organisations  participated  as  applicant  or  partner  in  738  Erasmus+  projects  for 
total contracted grant of EUR 13.85 million.  

Regarding  youth,  Serbia  is  implementing  the  action  plan  on  the  implementation  of  the  youth  strategy 
until  2025,  and  the  Youth  Guarantee  implementation  plan  by  2026.  Adoption  of  the  revised  or  new 
legislation  on  youth,  volunteering  and  internship  is  still  pending.  The  national  youth  council  is  not 
regularly convening. Despite increased efforts in the past years, youth policy and support mechanisms are 
unevenly developed at local level. 

On sports, Serbia is successfully implementing the second call for proposals for mobility projects in the 
area of sport, and continued to participate in the European Week of Sport. 

Concerning culture, Serbia has been implementing its strategic priorities for the development of culture 
from  2021  to  2025.  The  strategy  for  cultural  development  is  pending  adoption  since  2022.  Serbia 
continues to implement the 2005 UNESCO Convention at national and local levels, and participates fully 
in the Creative Europe Programme. It actively provides information and conducts capacity building across 
the country, relying on the partnership with numerous national, local and non-governmental stakeholders. 
A  “Creative  Europe  Festival”  concept  has  been  developed,  giving  additional  promotion  and  awareness 
about the programme. 

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  as  well  as  adequate  implementing  and  enforcement  capacity,  and 
access to the common computerised customs systems. 

Serbia’s  customs  legislation  is  largely  aligned  with  the  EU  acquis.  Serbia  is  a  party  to  the  Common 
Transit Convention (with a successful transition to NCTS Phase 5 already completed early 2024) and to 
the PEM Convention on rules of origin. Serbia regularly harmonises its customs tariff nomenclature with 
the  EU  combined  nomenclature,  including  for  2024.  Serbia  has  an  authorised  economic  operators 
programme and has issued a total of 57 certificates for authorised economic operators. 

Alignment  with the  EU  acquis is  still  needed  concerning free  zones  and  security  aspects.  Fees  are  still 
charged  at  some  border  crossing  points  on  lorries  entering  customs  terminals  to  discharge  customs 
obligations, which is not in line with Serbia’s SAA obligations. 

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In  terms  of  the  administrative  and  operational  capacity,  the  customs  laboratory  remains  under-
equipped,  and  the  risk  management  system  must  be  strengthened.  Serbia  should  consistently  carry  out 
pre-arrival/pre-departure risk-based analysis, in line with the EU Customs Code. In 2023, total revenues 
collected  by  the  customs  administration  slightly  decreased  by  3%  year-on-year.  In  addition,  the 
administrative  capacity  for  the  control  of  illicit  tobacco  trade  is  insufficient.  Serbia  is  a  party  to  the 
Protocol  to  Eliminate  Illicit  Trade  in  Tobacco  Products  but  has  yet  to  fully  comply  with  its  provisions 
including by establishing a track and trace system of tobacco products. 

Serbia continued to cooperate with the EU Member States and the European Anti-Fraud Office (OLAF) 
under Protocol 6 of the SAA on mutual administrative assistance in customs matters in particular in order 
to  investigate  suspected  cases  of  circumvention  via  its  territory  and/or  by  legal  entities  registered  in 
Serbia of EU sanctions introduced in the context of Russia’s war of aggression against Ukraine.  

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). 

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, multimodal transport, aviation and 
maritime transport. 

For  the  general  transport  acquis,  an  update  of  Serbia’s  strategic  framework  remains  overdue.  Serbia 
needs  to  prioritise  its  finalisation  and  adoption  while  ensuring  consultation  with  all  interested 
stakeholders. Serbia needs to update the general transport master plan and link it to capital budgeting. The 
improvement of the administrative capacity in the road and rail sector needs to continue.  Serbia actively 
participates in the work of the Transport Community (TCT) and continues with the implementation of the 
five TCT action plans. For larger transport agglomerations, sustainable urban mobility plans that respect 
environmental and social standards should be developed following EU practice. 

On  road  transport,  alignment  with  the  EU  acquis  is  at  a  good  level  and  remains  a  priority.  The 
institutional  framework  is in  place,  but  agencies responsible for road maintenance  and  construction  are 
not independent in performing their mandate. Road maintenance, including its financing, needs to ensure 
sustainability of investments in road transport infrastructure and follow the ‘user pays’ principle. Serbia is 
committed to implement the green corridors/green lanes by renewing working regimes on border crossing 
points with the EU Member States, extending the border crossing points on the main corridors, including 
parking places, and promoting the use of digitalised waybills. The Road Safety Strategy for 2023-2030 
and  a  3-year  Action  Plan were  adopted in  September  2023.  The first  set  of  disaggregated  data  on road 
crashes, fully aligned with the EU CARE protocol, were sent to the Commission. Social and market rules 
in the field of road transport should be fully transposed. In this regard, the transition to smart tachograph 
technology is a relevant step.  

On  rail  transport,  there  is  a  high  level  of  alignment  with  the  EU  acquis.  The  institutional  framework 
requires clearer division of responsibilities while the capacity of the Railway Directorate, which performs 
the  functions  of  a  regulatory  body,  licensing  authority  and  safety  authority,  should  be  strengthened. 
Investment  in  infrastructure  continued  to  increase;  however,  work  on  mitigating  measures  to  prevent 
delays is needed. Maintenance of railway infrastructure needs to be ensured in a systematic manner. The 
alignment  process  with  the  fourth  EU  railway  package  should  continue.  Formal  adoption  of  the  EU 

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technical  specifications  for  interoperability  is  pending,  as  is  alignment  with  the  rail  safety  acquis.  The 
European rail traffic management system should be applied in full, in a transparent manner. 

On maritime transport, Serbia is at a high level of alignment with the EU acquis. Serbia should continue 
aligning with international conventions. 

Regarding  inland  waterway  transport,  there  is  a  high  level  of  alignment  with  the  EU  acquis.  The 
institutional  framework  is  in  place;  however,  vessel  traffic  services  require  strengthening.  Serbia’s 
operational  river  information  services  system  is  highly  interoperable  with  those  of  EU  Member  States. 
Serbia should continue to work on fulfilling all the necessary requirements regarding the ongoing process 
of recognition of certificates in inland waterways. 

On aviation, Serbia has a good level of alignment with the EU acquis. 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. 

Multimodal  transport  should  be  promoted  in  a  more  systemic  and  strategic  manner.  The  institutional 
framework  is  in  place;  however,  the  administrative  capacity  for  multimodal  transport  needs  to  be 
strengthened.  In  December  2023,  a  new  company  in  charge  of  operating  the  intermodal  terminal  in 
Batajnica  was  established.  The  terminal  was  formally  inaugurated  in  May  2024,  but  it  is  still  not 
operational.  

No progress was made on EU passenger rights. 

Chapter 15: Energy 

EU energy policy covers energy supply, infrastructure, the internal energy market, consumers, renewable 
energy, energy efficiency, nuclear energy, nuclear safety, radiation protection and nuclear safeguards. 

Regarding security of supply, the legal and institutional framework for the unbundling of the gas sector 
is  in  place.  However,  implementation  of  the  unbundling  and  certification  of  Transportgas  Srbija, 
Yugorosgaz and the UGS Banatski Dvor continues to experience a significant delay. Serbia needs to take 
measures to address the dependence on Gazprom and on Russian majority ownership of Serbia’s critical 
infrastructure  and  oil  industry,  as  well  as  opening  of  the  gas  market  and  allowing  non-discriminatory 
third-party access to the gas network. In December 2023, works on the gas interconnector between Serbia 
and Bulgaria (IBS) were completed,  however the launch of commercial operations of the IBS has been 
regretfully  postponed.  Serbia  should  ensure  an  unrestricted  third-party  access  regime,  apply  an  open 
capacity-allocation  procedure  on  a  non-discriminatory  basis  and  remove  any  obstacles  to  new  market 
entrants in compliance with the Energy Community acquis and the IPA 2017 Financing Agreement. The 
Republic  Commission  for  Energy  Networks  started  its  work  in  November  2023.  The  Serbian  energy 
agency  lacks  enforcement power.  Serbia  has further delayed alignment  with  and  implementation  of the 
Gas  Storage  Regulation,  including  the  development  of  a  Risk  Assessment,  Prevetive  Action  Plan  and 
Emergency Plan.  

Serbia  needs  to  ensure  further  alignment  with  the  Electricity  Regulation  714/2009  in  order  to  enable 
coordinated  cross-border  capacity  allocation.  The  full  implementation  of  the  Energy  Agreements’ 
Implementation Roadmap between Serbia and Kosovo* is pending. The Serbian electricity transmission 
system  operator  EMS  did  not  determine  net  transmission  capacities  and  capacity  allocation  at  the 
interconnection with Kosovo. 

Serbia maintained a high level of alignment with the EU acquis on emergency oil stocks. 

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Concerning  the  internal  energy  market,  the  legal  and  institutional  framework  is  not  fully  in  place. 
Trading volumes on the organised day-ahead market increased by 46% compared to 2022. 

In  November  2023,  Serbia  adopted  a  revised  Decree  on  energy  vulnerable  customers,  expanding  the 
coverage  of  energy  poverty.  The  legal  and  institutional  framework  on  energy  poverty  needs  further 
improvement. 

The legal framework for alignment with the Hydrocarbons Licensing Directive is not in place. 

On  renewable  energy  sources  (RES),  Serbia  made  good  progress  in  the  implementation  of  support 
schemes promoting RES; however, it failed to comply with the Energy Community RES target by 2030 in 
its  NECP.  Further  alignment  with  the  Renewable  Energy  Directive  is  needed,  in  particular  related  to 
provisions on the sustainability and greenhouse gas emission saving criteria for biofuels and bioliquids. 
Administrative and institutional capacity of the Ministry and the Regulatory Authority tasked with RES is 
insufficient and needs to be enhanced. 

Serbia continued to  align with  the  EU  acquis  on  energy efficiency.  Further  alignment  with the  Energy 
Performance  of  Buildings  Directive,  Energy  Efficiency  Directive  and  Renewable  Energy  Sources 
Directive,  including  implementing  legislation  for  the  certification  of  RES  installers,  is  required. 
Institutional capacities for implementing energy efficiency measures need to be improved. 

On nuclear energy, nuclear safety and radiation protection, Serbia’s legislation is partially in line with 
the  Euratom  acquis.  In  the  reporting  period,  five  rulebooks  were  adopted.  The  Serbian  public  utility 
‘Nuclear Objects’ has yet to finalise licensing of two old storage facilities, two research nuclear reactors 
and  an  abandoned  uranium  mine.  In  May  2023,  Serbia  signed  the  European  Community  Urgent 
Radiological  Information  Exchange  (ECURIE)  Agreement  which  still  has  to  be  ratified  in  Serbian 
Parliament.  The  capacity  of  the  Serbian  Radiation  and  Nuclear  Safety  and  Security  Directorate 
(SRBATOM) needs further strengthening in order to fulfil its future obligations.  

On nuclear safeguards, upon EU accession, the existing systems of accountancy and control of nuclear 
materials in Serbia would need to be adapted to accommodate for the safeguards provisions (Chapter 7) of 
the Euratom Treaty. 

Chapter 21: Trans-European networks 

The  EU  promotes  trans-European  networks  (TENs)  in  the  areas  of  transport,  telecommunications  and 
energy to strengthen the internal market and contribute to growth and employment. 

On transport networks, the legislative framework is partially aligned with the EU acquis. 

Serbia  continues  to  develop  transport  projects  in  the  trans-European  networks.  The  preparation  of 
technical and tender documentation for the implementation of TEN-T projects in road and rail needs to 
accelerate.  The  Feasibility and  Environmental  Social Impact  Assessment  studies  should  remain  key  for 
quality completion of technical project documentation.  

Regarding  roads,  for  the  works  on  the  Niš-Merdare  highway,  so  far  only  around  10%  of  approved  EU 
grant funds have been used and the tendering of the section 4 between Niš and Pločnik is postponed for 
end of 2024, while tendering of sections 2 and 3 depends on the completion of design documentation. The 
preparation of missing project documentation on the section Pločnik-Merdare, for which EU funds have 
also been secured, is long pending. 

Regarding  rail  infrastructure,  works  related  to  the  modernisation  of  the  Niš–Dimitrovgrad  railway  line 
started  in  November  2023,  thus  unblocking  the  long-delayed  project.  Construction  of  the  Niš  railway 

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bypass commenced in July 2024, constituting further progress on the overall Niš – Dimitrovgrad project. 
Works  on  the  remaining  part  of  the  Budapest-Belgrade  line  (the  Novi  Sad-Subotica  sub-section)  are 
progressing with testing started and completion planned by the end of 2024. The modernisation of the rail 
corridor X, from Belgrade-Niš to the border with North Macedonia, is currently under preparation, with 
the  launch  of  works  tenders  related  to  the  Belgrade–Niš  section  expected  by  the  end  of  2024.  The 
commencement  of  works  on  lot  1  of  the  Stalać-Djunis  sub-section,  funded  by  the  national  budget,  is 
significantly delayed, which has also slowed down the tendering procedure for the EU-funded lot 2. 

Serbia is part of the new Western Balkans-Eastern Mediterranean European Transport Corridor set up by 
the revised TEN-T regulation. 

On  trans-European  energy  networks,  the  administrative  capacity  for  alignment  with  the  EU  acquis 
remains  insufficient.  In  November  2023,  the  new  Republic  Commission  for  Energy  Networks  was 
established, enabling a legal framework for the unbundling of energy system operators. 

Serbia continued to develop energy projects in the trans-European networks. Regarding gas infrastructure, 
Serbia needs to accelerate the permitting process for the gas interconnector between Serbia and Bulgaria 
and make the interconnector fully operational in line with the Energy Community acquis. Regarding the 
Trans-Balkan  electricity  corridor,  the  tendering  procedure  for  the  construction  of  section  III  from 
Obrenovac  to  Bajina  Bašta  is  ongoing.  Serbia  needs  to  continue  project  preparation  for  section  IV 
between Serbia, Bosnia and Herzegovina and Montenegro. 

The revised TEN-E Regulation should be transposed in national legislation until the end of 2024 with the 
aim  to accelerate  permitting  procedures  and  enable  development of  key  infrastructure  projects  with  the 
neighbouring countries.  

Chapter 27: Environment and climate change 

The EU promotes strong climate action, sustainable development and protection of the environment. EU 
rules  contain  provisions  addressing  climate  change,  water  and  air  quality,  waste  management,  nature 
protection, industrial pollution, chemicals, noise and civil protection. 

Environment 

The  institutional  framework  is  in  place  but  should  be  improved  as  the  environmental  sector 
competencies  are  scattered  across  several  ministries.  Overall  coordination  and  capacity  of  local  self-
governments and public utilities companies, in particular in the water sector, should be enhanced. 

In  the  area  of  horizontal  legislation,  the  legislative  framework  is  well  aligned  with  the  EU  acquis. 
Progress was made with the adoption of the implementing legislation requiring an EIA procedure to take 
place  before  issuing  construction  permits,  as  well  as  the  adoption  of  EIA  and  SEA  legislation  by  the 
government. However, Serbia should proceed with parliamentary adoption and swift implementation. The 
Regulation  on  Capital  Projects  adopted  in  September  2023  strengthens  the  role  of  the  Ministry  of 
Environmental Protection regarding projects subject to EIA procedure. 

Public participation and consultations did not improve compared to the previous reporting period. Serbia 
should  ensure  inter-ministerial  participation  including  the  Ministry  of  Finance  in  the  Environmental 
Protection Strategy/Green Agenda working groups. 

Official reports and information about ongoing green investments and their environmental impact should 
be published by the Ministry of Environmental Protection. 

On  19  July  2024,  Serbia  and  the  EU  signed  a  Memorandum  of  Understanding  (MoU)  launching  a 
Strategic  Partnership  on  sustainable  raw  materials,  battery  value  chains  and  electric  vehicles.  The 

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Partnership aims to support the development of sustainable supply chain  in Serbia, creation of new job 
opportunities in industrial sectors that are crucial for the future. The MoU underlines the importance to 
promote the highest environmental, social and governance standards. 

Transboundary cooperation did not improve during the reporting period. Serbia should continue its efforts 
to  cooperate  with  its  neighbouring  countries.  Serbia  should  start  implementing  activities  of  the 
memorandum of understanding on cooperation in the field of environment protection with Bulgaria. 

While  the  number  of  inspection  cases  and  issuance  of  offences  increased,  the  alignment  with  the 
Environmental  Liability  Directive  remains  at  an  early  stage,  while  alignment  with  the  Environmental 
Crime  Directive  and  its  implementation  needs  to  be  further  improved.  Cases  of  poisoning  wildlife  and 
poaching incidents together with cases of threat against members of civil organisations on social media 
increased. 

In the field of air quality, Serbia has a good level of alignment with the EU acquis. Serbia continued to 
exceed EU daily limits of air pollution during the reporting period. The air quality monitoring network 
was slightly extended with new and upgraded air quality stations. The EU Air Quality Index needs to be 
adopted.  Serbia  implemented  important  measures  of  the  national  air  quality  programme,  such  as  the 
adoption  of  the  eco-design  rulebook  in  December  2023.  Three  local  air  quality  plans  (Bor,  Pancevo, 
Kraljevo) were adopted. 

Regarding waste management, Serbia has a good level of alignment with the EU acquis. In September 
2023, a number of important acts were adopted including the sludge management programme 2023-2032, 
the Law amending the law on waste management, implementing legislation for management of specific 
waste  streams,  as  well  as  the  regulation  on  the  manner  and  procedure  of  sludge  management  from 
municipal wastewater treatment plants. 

The level of alignment with the EU acquis on water quality is moderate. The institutional framework in 
the water sector is fragmented and not adapted to increasing level of investments. A rulebook on methods 
and  conditions  for  wastewater  quantity  measurement  and  quality  testing  and  the  content  of  the 
measurement report was adopted in March 2024. Improving local governance, in particular for operating 
and maintaining water and wastewater facilities, remains a priority. 

Alignment  in  the  field  of  nature  protection,  in  particular  with  the  Habitats  and  Birds  Directives,  is 
moderate. Serbia should further pursue the work to identify and pre-designate sites that will be covered by 
the Natura 2000 network. Serbia should adopt the new nature protection law to fully align with the EU 
acquis. Institutional and human resource capacity at national and local levels remains weak, in particular 
as regards enforcement and wildlife trade. 

As  regards  industrial  pollution  and  risk  management,  alignment  with  most  of  the  EU  acquis  is 
moderate.  In  the  reporting  period  265  companies  were  assessed  against  full  compliance  with  the  EU 
Industrial Emissions Directive (IED) and 52 integrated permits were issued. The reporting methodology 
and revised rulebooks were also adopted. 

Serbia has a high level of alignment with the EU acquis on chemicals. In February 2024, the rulebook on 
the content of safety data sheet was adopted. 

There is some level of preparation with the EU acquis on noise. The strategic noise map for Novi Sad was 
adopted  in  November  2023.  Serbia  needs  to  continue  preparing  noise  maps  for  the  city  of  Belgrade, 
Subotica, Kragujevac and the Belgrade airport as well as action plans, and enforce noise legislation. 

Regarding  civil  protection,  Serbia  actively  participates  in  the  Union  Civil  Protection  Mechanism 
(UCPM). Serbia has a good legal and policy framework for disaster risk management based on the Law 

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on disaster risk reduction and emergency management. The Disaster Risk Register (in line with the EU 
INSPIRE Directive and the EU initiative to enhance data interoperability) is updated regularly to better 
monitor risks, including public health risks, and prevent natural and human-caused disasters. 

Being UCPM participating state Serbia should establish trans-European Services for Telematics between 
Administrations (TESTA) as a precondition for connecting to the Common Emergency Communication 
and Information System (CECIS). 

Climate change 

Serbia has some level of preparation in climate change legislation, but enforcement is at an early stage. 
The action plan to accompany the Low Carbon Development Strategy is not yet adopted. In December 
2023, Serbia adopted the Climate Change Adaptation Program for the period 2023-2030, accompanied by 
an action plan as well as a rulebook on monitoring and reporting of greenhouse gas emissions (GHG). An 
IT system to facilitate the process of issuing GHG permits was also developed and the national system for 
a GHG inventory is operational. 

Serbia  adopted  three  pieces  of  implementing  legislation  necessary  to  implement  the  climate  law. 
Monitoring of the implementation of the measures is not in place. Serbia adopted the National Energy and 
Climate  Change  Plan  (NECP)  in  July  2024,  advanced  the  implementation  of  monitoring,  reporting, 
verification,  and  accreditation  (MRVA)  package  through  adopting  a  rulebook  on  monitoring  and 
reporting  of  greenhouse  gas  emissions  (GHG),  and  increased  administrative  capacities  for  various 
institutions. Serbia is taking steps to introduce a carbon tax by 2027 as a step towards aligning with the 
EU ETS.  

Serbia’s  draft  national  spatial  plan,  based  on  its  energy  strategy,  includes  new  thermal  power  plants. 
Serbia should set 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. The country should 
update its Low Carbon Development Strategy to align with the EU’s climate neutrality target, prepare and 
submit  new  National  Determined  Contribution  under  the  Paris  Agreement,  and  fully  align  with  EU 
legislation concerning the emissions from vehicles and road transport. Consideration ought to be given to 
aligning with major upgrades of the EU climate policy as a result of the Fit for 55 package. 

CLUSTER 5: RESOURCES, AGRICULTURE AND COHESION 

This  cluster  covers  Chapters  11  (Agriculture  and  rural  development),  12  (Food  safety,  veterinary  and 
phytosanitary policy), 13 (Fisheries and aquaculture), 22 (Regional policy and coordination of structural 
instruments) and 33 (Financial and budgetary provisions). 

Chapter 11: Agriculture and rural development 

The  EU’s  common  agricultural  policy  supports  farmers  and  ensures  Europe’s  food  security.  It  helps 
tackle climate change and the sustainable management of national resources; maintains rural areas and 
landscapes  across  the  EU;  and  keeps  the  rural  economy  alive  by promoting  jobs  in  farming,  agri-food 
industries and associated sectors. This requires strong management and control systems. There are also 
common EU rules for marketing standards, quality policy and organic farming. 

Regarding  horizontal  issues,  Serbia  did  not  adopt  a  national  programme  for  agriculture  and  rural 
development  for  the  period  2022-2024.  A  new,  national  strategy  for  agriculture  and  rural  development 
covering the period 2025-2032 remains to be adopted. 

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Implementation of the action plan on alignment with the EU acquis on agriculture and rural development 
needs  to  show  progress  and  its  updating  finalised  in  2024.  Serbia  needs  to  make  progress  with  the 
establishment of the integrated administration and control system (IACS) and the transition from manual 
to electronic processing of aid applications. The development of software for the land parcel identification 
system (LPIS), a precondition for the start of the IPA 2021 project on the first phase of the establishment 
of  IACS,  must  be  completed  without further  delays.  The  sample  size  and  the  quality  of  the  data  of the 
established farm accountancy data network (FADN) needs to be further improved. Efforts should be made 
to extend the collection of data to environmental and social issues in line with the EU acquis.  

In the area of the common market organisation (CMO), there has been no progress, with implementing 
legislation  on  marketing  standards,  public  and  private  storage,  and  producer  organisations  still  pending 
and a law on wine remains to be adopted. 

On  rural  development,  Serbia  should  engage  all  efforts  to  avoid  further  losses  of  EU  funds  from  the 
IPARD  II  programme  in  2024.  In  parallel,  it  is  important  that  Serbia  starts  with  the  contracting  and 
disbursement of IPARD III funds without delay. It is essential to strengthen the capacity building, using 
the IPARD ‘Technical Assistance’ support, to gain entrustment for new measures under IPARD III, and 
particularly  for  measure  6  ‘Investment  in  rural  public  infrastructure’.  Serbia  is  encouraged  to  propose 
credit guarantee schemes, which will assist non-legal entities and small agricultural holdings with access 
to IPARD funds. 

As  regards  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, legislation aligning with the EU acquis in the area of organics remains be adopted. 

Chapter 12: Food safety, veterinary and phytosanitary policy 

The EU food acquis including hygiene rules for foodstuff production ensure a high level of food and feed 
safety, and a high level of protection of consumers’ interests. Animal health and welfare, and the safety of 
food of animal origin, are safeguarded together with the quality of seeds, plant protection material, the 
protection against harmful organisms and animal nutrition. 

The  legal  and  institutional  framework  for  this  chapter  is  in  place.  However,  the  partially  aligned  legal 
framework  still  needs  to  be  fully  harmonised  with  the  EU  acquis,  while  the  institutional  framework 
requires strengthening. 

In the area of general food safety, Serbia is yet to adopt a strategy and action plan for alignment with the 
EU acquis while no framework laws have been aligned with the EU acquis in the reporting period. Serbia 
still applies an inefficient risk-based approach and EU companies continue to complain about complicated 
and  costly  border  controls  for  imported  food  which  negatively  impacts  on  trade  flows  and  results  in 
increased cost for both businesses and consumers. 

On  veterinary  policy,  African  swine  fever  outbreaks  continued  to  be  periodically  reported  and  caused 
economic damage to farmers. In addition to the veterinary inspection, the policy and other departments in 
the Veterinary Directorate require strengthening as a matter of priority, in light of the increasing number 
of vacancies left unfilled. Additional steps are yet to be taken to meet the remaining requirements for the 
start of export of fresh poultry meat, eggs, and fresh pork meat to the EU. Serbia needs to align with the 
EU acquis on animal welfare. 

Regarding,  placing  on  the  market  of  food,  feed  and  animal  by-products,  following  Serbia’s 
categorisation of food establishments for compliance with the EU  acquis, efforts are now needed in the 

83 

 
 
monitoring  and  the  upgrading  of  establishments,  including  through  IPARD  funds.  Considerable  further 
work is still needed to improve intermediary collection of animal waste. 

On  food  safety  rules  and  specific  rules  for  feed,  Serbia  has  still  to  adopt  and  start  implementing  the 
strategy/national  programme  for  improvement  of  milk  quality.  No  progress  was  noted  on  aligning  the 
permitted level of aflatoxins in milk with the EU acquis. 

In the area of phytosanitary policy, the implementation of existing national legislation for the sustainable 
use  of  pesticides  still  needs  to  be  considerably  improved,  including  on  mandatory  control  of  pesticide 
application  devices.  Policy  departments  of  the  Plant  Health  Directorate  remain  understaffed.  The 
alignment of national legislation with EU plant health legislation must be enhanced, and surveys, early 
detection and eradication of pests must be strengthened. 

Further work is needed to align its legislation on genetically modified organisms with the EU acquis, in 
order to regulate this area in a safer and more transparent manner. This is crucial for further progress in 
negotiations  for  membership  of  the  World  Trade  Organisation  and  is  a  prerequisite  for  opening  this 
chapter. 

Chapter 13: Fisheries and aquaculture 

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 control and inspection, rules on markets and aquaculture and support for fisheries and 
coastal communities. Further, it promotes a sustainable aquaculture. 

While  Serbia  does  not  have  a  coastline,  and  a  large  part  of  the  EU  legislation  on  fisheries  is  not 
applicable,  it  still  needs  to  fully  develop  its  currently  limited  institutional  framework  to  deal  with  the 
applicable parts of the EU acquis within this chapter. The legal framework is only partially aligned and 
remains to be fully harmonised with the EU  acquis. Serbia has still not adopted the action plan for full 
compliance  with  the  requirements  of  the  EU  acquis  by  the  date  of  accession,  in  particular  regarding 
organisation of markets, aquaculture, data collection and control measures, and IUU fishing. 

On  resource  and  fleet  management,  the  EU  acquis  applicable  to  Serbia  includes  provisions  on  the 
European eel, a strictly protected species covered by a permanent fishing ban, which Serbia claims does 
not exist in its territory. 

While the system for  inspection and controls is generally in place, coordination between the involved 
state  bodies  (e.g.  Veterinary  border  inspection,  customs)  still  needs  to  be  improved.  Moreover,  official 
controls of fishery products intended for export to the EU need to be fully aligned with the EU acquis. 

In the field of structural actions, the sector is eligible under the IPARD support programme, and a call 
was  launched  in  February  2024  under  Measure  1  –  investments  in  physical  assets  and  agricultural 
holdings.  The  implementation  of  the  rulebook  on  catch  certification  and  fully  aligning  the  legal 
framework with the EU acquis on IUU fishing has been repeatedly postponed. 

Legislation on market policy remains to be aligned with the EU acquis. 

There were no significant developments concerning state aid and international agreements. 

Chapter 22: Regional policy and coordination of structural instruments 

Regional policy is the EU’s main tool for reducing regional disparities and investing in sustainable and 
inclusive socio-economic growth. It is operating through ‘shared management’ between the Commission 
and  EU  Member  States.  The  implementation  of  cohesion  policy  programmes  requires  appropriate 

84 

 
 
administrative capacity on programme and project level, the establishment of systems of sound financial 
management and control and also the fulfilment of other EU acquis elements such as environmental or 
public procurement legislation. 

Serbia’s  legislative  framework  for  IPA  III  has  been  adopted,  including  operational  programmes.  In 
September 2024, the Government adopted the Law on cohesion policy, which still requires adoption by 
the  National  Assembly.  Serbia  needs  to  apply  a  systematic  approach  to  developing,  co-financing  and 
implementing  multiannual  operational  programmes.  Increased  fiscal  decentralisation  is  needed  to  give 
subnational  levels  of  government  the  autonomy  to  act  as  fully-fledged  cohesion  policy  actors.  A 
methodology to track compliance with enabling conditions has been adopted in 2024. 

The institutional framework for cohesion policy is now largely in place. Indirect management structures 
need to keep improving with a view to managing IPA programmes in a more timely and efficient manner 
and to be able to operate in an ex post control environment. Responsibility for regional policy is currently 
scattered  among  several  ministries,  and  the  potential  of  regional  development  agencies  and  local 
development offices is underused. 

As regards the administrative capacity of institutions managing EU funds, the picture is mixed. While 
the total number of staff employed in the structures has notably increased in 2023, understaffing continues 
to  hinder  the  normal  operation  of  the  department  for  contracting  and  financing  of  EU  funding 
programmes  and  the  IPA  units  of  several  ministries,  including  those  responsible  for  managing  and 
implementing multiannual operational programmes. An effective retention policy still has to be adopted. 
The  potential  of  establishing  links  to  European  groupings  of  territorial  cooperation  in  different  policy 
instruments  is  not  being  exploited  so  far.  These  groupings  can  be  used  as  instruments  for  integrated 
territorial governance and facilitating the Interreg cooperation programmes. 

On programming, work has continued towards the adoption of a development plan, which should form 
the basis for Serbia’s regional development policy, acknowledge the development potential of all Serbian 
regions,  and  help  reduce  regional  and  local  disparities.  Serbia  continues  to  participate  in  the  Interreg 
cooperation programmes, the EU Strategy for the Adriatic and Ionian Region and the EU Strategy for the 
Danube Region. 

The  monitoring  and  evaluation  system  functions  well  for  annual  programmes  under  indirect 
management and is in the process of being adapted to the requirements of operational programmes and, 
ultimately, cohesion policy. The management information system storing data on IPA III operations has 
entered into operation. 

On  financial  management,  control  and  audit,  the  National  Authorising  Officer  Support  Office,  the 
Audit  Authority  and  the  internal  audit  units  of  the  ministries  implementing  projects  under  indirect 
management are critically understaffed. The fast resorption of the indirect management payments backlog 
remains an urgent priority. 

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) 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. 

85 

 
 
There  was  between  no  to  good  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,  the  customs  legislation  is  largely  aligned  with  the  EU  acquis 
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 10 000.  The  current  accounting 
system does not use two different accounts, one for collected or secured debts (A account) and the other 
for uncollected/unsecured debts or secured but appealed debts (B account). 

As  regards  the  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. 

Regarding  administrative  infrastructure,  the  capacity  of  the  institutions  in  the  relevant  policy  areas 
needs  to  be  further  strengthened,  and  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. 

Chapter 30: External relations 

The  EU  has  a  common  commercial  policy  towards  third  countries,  based  on  multilateral  and  bilateral 
agreements and autonomous measures. There are also EU rules on humanitarian aid and development 
policy. 

As regards the common commercial policy, Serbia has yet to accede to the World Trade Organization 
(WTO). The process is stalled primarily due to the 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. Furthermore, Serbia has yet to achieve full alignment with the EU  acquis in 
line with its action plan on remaining preparations for EU accession. 

Serbia should continue to play a constructive role in CEFTA and within the Common Regional Market, in 
line with commitments taken within the Berlin Process. 

Nevertheless,  in  March  2024,  Serbia  introduced  quantitative  import  restrictions  on  sunflower  oil  and 
margarine. In April 2024, Serbia introduced an import ban on wood pellets that was extended in June for 
another  90  days.  None  of  these  measures  have  been  justified  under  the  SAA,  and  the  requested 
explanatory  data  has  yet  to  be  received.  In  addition,  there  are  systematic  deteriorating  conditions  for 
imports of different types of products primarily of animal origin related to the issuance of import licences 
and practices of sanitary, phytosanitary and veterinary border inspections in terms of frequency, duration, 
volume and costs of sampling. Serbia should abstain from introducing unilateral trade restrictive measures 
without prior consultation of the Commission, in line with its SAA obligations. 

86 

 
 
 
Serbia  also  maintains measures  related  to  the  management  of  wine  quotas  for import from the  EU that 
create a less favourable trade environment than provided for in the SAA. Serbia is therefore encouraged 
to restore the first come, first served arrangement. 

Serbia has continued to prevent circumvention of the EU restrictive measures introduced in the context of 
Russia’s  aggression  against  Ukraine  via  Serbian  territory  and/or  by  legal  entities  registered  in  Serbia. 
Serbia should continue to step up its efforts to fight sanctions circumvention including concerning the risk 
of trade triangulation. 

On dual-use goods, Serbia has yet to achieve full alignment with the latest EU acquis in this area, namely 
Regulation (EU) 2021/821 of May 2021. Serbia regularly adopts a national control list of dual-use goods 
aimed  at  full alignment  with  the  latest  Commission Delegated  Regulation.  Serbia’s  applications  to join 
the Wassenaar Arrangement and the Australia Group are still under consideration.  

Serbia  continues  to  negotiate  bilateral  agreements  with  third  countries.  A  Free  Trade  Agreement 
(FTA) with China was signed in October 2023 and entered into force in July 2024. In July 2024, Serbia 
also signed and FTA with Egypt which has yet to enter into force. In addition, Serbia is negotiating FTAs 
with the United Arab Emirates and has announced plans for an FTA with South Korea and Israel. All the 
FTAs  that  Serbia  negotiates  must  ensure  compatibility  with  the  EU  acquis  and  include  sunset  clauses, 
which guarantee that Serbia can renounce the agreements upon accession to the EU. Serbia should also 
ensure that proper cost-benefit analyses are conducted before concluding any negotiations to minimise the 
risk of negative effects on specific sectors. 

Concerning  Bilateral  Investment  Treaties  (BIT),  Serbia  has  46  BITs  in  force,  of  which  21  with  EU 
Member States. A BIT with South Korea was signed in September 2023, and the signature of a BIT with 
Angola is pending. Serbia has announced plans for new BITs with Bahrain, Uzbekistan, India, the Kyrgyz 
Republic,  Equatorial  Guinea,  Japan  and  San Marino.  Serbia  should  develop a  strategy  for  amending  or 
terminating BITs that fall short of EU standards and expose the country to risks due to the broad and open 
language used. 

Serbia’s institutional framework is in place. However, the administrative capacity should be strengthened 
concerning trade with the EU and EFTA, related to completing the WTO accession and to collect market 
statistics. 

No  substantial  progress  was  made  on  development  policy  and  humanitarian  aid.  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  dialogue  under  the  EU  foreign,  security  and  defence 
policy,  align  with  EU  statements,  take  part  in  EU  actions,  and  apply  agreed  sanctions  and  restrictive 
measures. 

The political dialogue between the EU and Serbia on foreign and security policy continued. In February 
2024,  Serbia  participated  in  the  tenth  EU-Western  Balkans  meeting  of  Political  Directors  on  CFSP.  In 
June 2024, Serbia participated in the working lunch with members of the Foreign Affairs Council. 

The  institutional  framework  enabling  Serbia’s  participation  in  the  EU  common  foreign  and  security 
policy and common security and defence policy is in place. 

On  the  common  foreign  and  security  policy,  Serbia  needs,  as  a  matter  of  priority,  to  make  serious 
additional efforts on its alignment with the EU CFSP. In 2023, its CFSP alignment with statements by the 

87 

 
 
High  Representative  on  behalf  of  the  EU  and  Council  decisions  on  sanctions  was  54%.  As  of  30 
September 2024, its alignment rate was 51%. 

Serbia has not aligned with restrictive measure against Russia, nor with the majority of the statements of 
the High Representative related to Russia and Ukraine. Serbia has also not aligned with a number of other 
statements of the High Representative on behalf of the EU and EU restrictive measures linked to Russia, 
China, Belarus, Iran, the Democratic People’s Republic of Korea and Venezuela. It continues to operate 
flights to Russia, with increased frequency. Close cooperation and exchange of information between the 
EU  and  the  authorities  is  ongoing  at  technical  level  on  sanctions  circumvention  and  Serbia  should 
continue stepping up its efforts in this field. 

Serbia continued to develop intense relations and strategic partnerships with a number of countries 
reduced 
worldwide.  High-level  bilateral  contacts  with  Russia  were  maintained,  albeit  at 
frequency, raising questions about Serbia’s strategic direction. These included, amongst others, the former 
First  Deputy  Prime  Minister  /  Minister  of  Foreign  Affairs  in  the  capacity  of  acting  Prime  Minister 
travelling to Moscow in March 2024, the new Deputy Prime Minister visiting Moscow in June, August 
and  September  2024  and  the  Russian  Deputy  Minister  of  Foreign  Affairs  visiting  Serbia  in  July  2024. 
High-level contacts were also maintained with Ukraine, including a visit of the Ukrainian First Lady and 
Minister of Foreign Affairs to Serbia in May 2024. Serbia supported the territorial integrity of Ukraine 
and  continued  providing  humanitarian  and  financial  assistance.  Serbia  participated  in  the  Summit  on 
Peace in Ukraine hosted by Switzerland. 

There was a further intensification of relations with China, including a high-level Serbian delegation at 
the Belt and Road summit in October 2023, at which 18 agreements were signed, including a Free Trade 
Agreement  which  entered  into  force  in  July  2024.  During  a  visit  of  the  Chinese  President  to  Serbia  in 
May 2024, the countries issued a statement on upgrading their bilateral strategic cooperation and signed 
28  bilateral  cooperation  documents.  Serbia  acceded  to  the  Treaty  of  Amity  and  Cooperation  with  the 
South-East Asian block in September 2023. 

Serbia  continued  to  engage  actively  with  international  organisations.  Serbia  does  not  have  bilateral 
immunity  agreement  granting  exemptions  from  the  jurisdiction  of  the  International  Criminal  Court  and 
complies with the EU common positions on the integrity of the Rome Statute together with related EU’s 
guiding  principles  on  bilateral  immunity agreements.  In  September  2024,  at  the  UN  General  Assembly 
Serbia did not join the EU and like-minded partners in a crucial vote to avoid the derailing by Russia of 
the  Pact  for  the  Future  and  in  the  margin  awarded  medals,  including  to  the  Russian  representative,  in 
connection with the UNGA Resolution on Srebrenica. 

Serbia continued supporting EU measures and documents on conflict prevention. The third Action Plan 
for the Implementation of UN Security Council Resolution 1325 on Women, Peace and Security for the 
period 2024-2026 remains to be adopted. 

As  regards  non-proliferation  and  disarmament,  Serbia  is  implementing  its  2023-2025  strategy  and 
action  plan  for  the  fight  against  proliferation  of  weapons  of  mass  destruction.  As  regards  conventional 
weapons,  Serbia  continued  to  implement  and  engage  positively  on  the  Western  Balkans  Regional 
Roadmap for a sustainable solution to the illegal possessions, misuse and trafficking of Small Arms and 
Light Weapons (SALW) and their ammunition. Serbia should consider ratifying Protocol V on Explosive 
Remnants of War of the Convention on Certain Conventional Weapons (CCW).  

Serbia is a member of the Nuclear Suppliers Group but not yet of any other multilateral export control 
regimes. Alignment with the EU Common Position 2008/944 is ongoing. A draft revised Law on export 

88 

 
 
and  import  of  arms  and  military  equipment  was  prepared  in  2023  but  the  legislative  process  has  not 
started yet.  

Serbia has a transparent reporting system on its strategic exports controls but allegations of corruption in 
arms trade deals need to be investigated. Serbia is a party to the Arms Trade Treaty but further measures 
to prevent diversion of arms and ammunition should be developed to support compliance. Serbia has not 
aligned with EU statements agreed in the Organisation for the Prohibition of Chemical Weapons (OPCW) 
Conference  of  States  Parties  and  Executive  Council  meetings  in  recent  years  and  with  related  EU 
restrictive measures. In 2023 and 2024, Serbia also did not systematically align with EU statements in the 
context  of  the  UN  Conference  on  Disarmament  and  the  UN  General  Assembly  First  Committee  and 
sometimes supported positions that were opposed by the EU. 

In terms of security measures, Serbia continued implementing its security of information agreement with 
the EU on procedures for exchanging and protecting classified information. 

On  common  security  and  defence  policy  (CSDP),  Serbia  continued  to  actively  participate  and 
contribute  substantially  to  EU  military  crisis  management  missions  and  operations,  and  joined  the 
European Union Training Mission in Mozambique in March 2024. The law on participation of civilians in 
international missions and operations adopted in 2023 will make Serbia eligible to contribute to civilian 
CSDP  missions,  once  the  implementing  by-laws  and  institutional  framework  are  in  place.  Serbia 
continued to participate in the roster of the EU Battle Groups. Serbia contributes to regional cooperation 
in military medicine through the Balkan Medical Task Force (BMTF). Serbia also contributed to four UN 
peacekeeping missions and maintained its cooperation with NATO and its members. 

On hybrid threats, foreign information manipulation and interference (FIMI), including disinformation 
remain  matters  of  concern  to  be  urgently  addressed.  Serbia  did  not  align  with  EU  Declarations  and 
restrictive measures in reaction to cyber-attacks in 2023 and 2024. 

89 

 
 
 
 
 
ANNEX I – RELATIONS BETWEEN THE EU AND SERBIA 

As  part  of  the  accession  negotiations,  22  chapters  have  been  opened,  two  of  which  have  been 
provisionally  closed  (chapters  25  and  26).  In  line  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)  and  cluster  4  (green  agenda  and  sustainable 
connectivity) have been opened. Cluster 3 (competitiveness and inclusive growth) is the most advanced 
after those and in line 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). However, 
Serbian legislation still does not comply with the SAA in a number of areas, including on restrictions on 
the  acquisition  of  real  estate  and  on  discriminatory  practices  in  issuing  payment  cards  by  banks. 
Furthermore, Serbia has in place a number of temporary trade restrictions on a without having provided 
sufficient  justifications  or  followed  the  procedures  set  out  in  the  SAA.  On  public  procurement, 
intergovernmental 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 in the country. 

Regular  political  and  economic  dialogue  between  the  EU  and  Serbia  has  continued.  Subcommittee 
meetings were held, together with a meeting of a special group on public administration reform. Serbia 
also participates in the ministerial dialogue between the economic and finance ministers of the EU and 
candidate  countries,  where  joint  recommendations  are  adopted.  The  most  recent  meeting  was  held  on 
14 May 2024. 

Economic integration with the EU is strong. The EU is Serbia’s main trading partner. In 2023, the EU 
accounted for 59.7% of Serbia’s total trade. EU-Serbia trade decreased somewhat in 2023 by around 2%, 
whereas Serbia’s trade deficit with the EU decreased to EUR 5.1 billion in 2023, down from 6.3 billion in 
2022. In comparison, Serbia’s trade with its second largest trading partner, CEFTA, accounted for around 
9.3% of total trade. Serbia’s total trade in 2023 was worth EUR 65.4 billion. 

Serbia’s pattern of alignment with EU common foreign and security policy positions remained largely 
unchanged.  Serbia  continued  to  participate  actively  in  EU  crisis  management  missions  and  operations 
under the common security and defence policy. 

The  Balkans  Medical  Task  Force,  in  which  Serbia  participates,  benefits  from  a  EUR  6  million  2022 
support measure under the European Peace Facility. 

Visa-free travel for citizens of Serbia travelling to the Schengen area has been in force since December 
2009.  A  readmission  agreement  between  the  EU  and  Serbia  has  been  in  force  since  2008.  The 
Commission’s  October  2023  sixth  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)6  a  financing  decision  was 
adopted  amounting  to  EUR  83.4  million,  providing  EU  support  in  the  areas  of  rules  of  law,  good 
governance  and  acquis  alignment,  as  well  as  education  and  economic  development.  Furthermore, 
financing  decisions  were  taken  for  two  operational  programmes  2024-2027  on  (i)  environment  and 

6 Official Journal L 330, 20.9.2021. 

90 

 
 
 
energy, with EUR 240 million in EU support, as well as on (ii) employment, skills, and social inclusion, 
providing  EUR  100  million  in  EU  support.  This  complements  EUR  450  million  in  IPAIII  support 
provided under financing decisions adopted in 2021, 2022, and 2023.  

This set of programmes are complemented by a significant package of multi-country programmes as well 
as the  rural  development  programme,  IPARD  III;  the  latter  comprises  EUR 288  million in  EU support. 
This  is  a  significant  contribution  to  kick-start  implementing  the  Economic  and  Investment  Plan  for  the 
Western  Balkans  and  the  Green  Agenda.  The  new  activities  add to  ongoing  programmes  under IPA  II 
(2014-2020), which are still providing significant support to the social and economic development of the 
country and contributing to key reforms in the rule of law, public administration reform and other sectors. 

Serbia continues to benefit from support under the IPA multi-country and regional programmes, including 
the  Western  Balkans  Investment  Framework.  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. 

Under  the  Reform  and  Growth  Facility,  Serbia  could  benefit  from  an  indicative  allocation  of  EUR 
1.586 billion, to be channelled via a Reform Agenda covering key reforms in four policy areas: business 
environment and private sector development; green and digital transition; private-sector development and 
business  environment;  human  capital  development;  and  fundamentals  /  rule  of  law.  Disbursement  of 
Union  support  will  be  conditional  on  compliance  with  the  preconditions  –  including,  for  Serbia  and 
Kosovo,  constructive  engagement  in  the  normalisation  of  their  relations  with  a  view  to  fully 
implementing all their respective obligations stemming from the Agreement on the Path to Normalisation 
and  its  Implementation  Annex  and  all  past  Dialogue  Agreements  and  engage  in  negotiations  on  the 
Comprehensive Agreement on normalisation of relations. 

Serbia  participates  with  IPA  support  in  the  following  EU  programmes:  Horizon  Europe,  the 
Competitiveness  of  Enterprises  and  Small  and  Medium-Sized  Enterprises  programme  (COSME),  the 
European Cooperation in Science and Technology (COST), Erasmus+ and Creative Europe, the Citizens, 
Equality, Rights and Values programme (CERV), Employment and Social Innovation, EUREKA and the 
Digital Europe programme. To improve green budgeting practices, Serbia is participating, as observer, in 
a pilot project under the Technical Support Instrument. 

91 

 
 
 
 
 
 
ANNEX II – STATISTICAL DATA 

STATISTICAL DATA (as of 5/09/2024) 
Serbia 

Basic data 
Population (thousand) 
Total area of the country (km²) 

National accounts 
Gross domestic product (GDP) (million national currency) 
Gross domestic product (GDP) (million euro) 
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 (%) 
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 (%) 

Note 

2011 
7 252 bi 
77 601 w 

2018 
7 001 i 
77 594 w 

2019 
6 964 i 
77 594 w 

2020 
6 927 i 
77 594 w 

2021 
6 872 i 
77 594 w 

2022 
6 797 i 
77 539 w 

Note 

2011 
3 612 267 
35 432 
4 900 
10 239 
39.8 
2.0 
-  6 p 
9 p 

2018 
5 072 932 
42 892 
6 140 
12 013 
39.6 
4.5 
1 p 
3 p 

2019 
5 421 851 
46 005 
6 620 
12 803 
40.8 
4.3 
2 p 
2 p 

2020 
5 504 430 
46 815 
6 790 
12 818 
42.5 
-  0.9 
0 p 
-  1 p 

2021 
6 271 988 
53 345 
7 810 
14 235 
43.4 
7.7 
3 p 
5 p 

2022 
7 097 629 p 
60 427 p 
9 070 p 
15 553 p 
43.7 p 
2.5 p 
2 p 
1 p 

2 p 
14.3 p 
54 p 

8.8 
27.1 
4.5 
59.6 i 
94.5 
17.5 
33.0 
45.8 
: 

3 p 
11.5 p 
45 p 

7.7 
25.4 
5.4 
61.6 i 
86.0 
20.0 
50.4 
59.1 
: 

3 p 
12.9 p 
46 p 

7.2 
24.0 
6.9 
61.9 i 
84.8 
22.5 
51.0 
60.9 
: 

9 p 
15.0 p 
47 p 

7.6 
23.4 
6.6 
62.4 i 
84.1 
21.4 
48.2 
56.5 
: 

6 p 
18.0 p 
47 p 

7.6 
23.0 
7.3 
62.2 i 
82.8 
23.3 
54.9 
62.9 
: 

7 p 
22.4 p 
46 p 

7.7 p 
23.9 p 
6.6 p 
61.9 pi 
84.5 p 
24.2 p 
63.8 p 
74.8 p 
: 

2022 
: 
: 
: 

Business 
Industrial production volume index (2015 = 100) 
Number of active enterprises (number) 
Birth  rate:  number  of  enterprise  births  in  the  reference  period  (t)  divided  by  the  number  of 
enterprises active in t (%) 

Note 

2011 
97.5 w 
84 570 w 
9.3 w 

2018 
110.7 w 
87 407 
10.0 

2019 
111.0 w 
88 224 
10.1 

2020 
111.5 w 
90 111 
8.6 

2021 
118.6 w 
: 
8.2 w 

92 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) (%) 
Value added by SMEs (in the non-financial business economy) (EUR million) 
Total value added (in the non-financial business economy) (EUR million) 

1) 

1) 

10.3 w 

6.1 

11.5 

6.9 p 

6.7 w 

60.0 iw 

59.0 iw 

58.5 iw 

58.7 iw 

66.9 biw 

6 278 iw 
13 041 w 

9 165 iw 
18 047 

10 540 iw 
20 093 

12 245 iw 
21 833 

15 940 biw 
: 

: 

: 

: 
: 

Inflation rate 
Consumer price index (CPI), change relative to the previous year (%) 

Note 

2011 
11.2 d 

2018 
2.0 d 

2019 
1.9 d 

2020 
1.8 d 

2021 
4.0 d 

2022 
11.7 d 

Balance of payments 
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 (%) 
Net balance (inward - outward) of foreign direct investment (FDI) (million euro) 
Foreign direct investment (FDI) abroad (million euro) 
of which FDI of the reporting economy in the EU-27 countries (million euro) 
Foreign direct investment (FDI) in the reporting economy (million euro) 
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 (%) 

Note 

2011 
- 3 657.0 
- 5 495.0 
154.0 
- 1 369.0 
3 055.0 
92.0 
: 
: 
3 319.6 w 
224.9 w 
77.7 w 
3 544.5 w 
2 724.5 w 
: 
: 

Public finance 
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 (%) 

Note 

2011 
: 
: 
: 
: 

2018 
- 2 092.0 
- 5 244.0 
1 093.0 
- 2 067.0 
4 126.0 
251.0 
-  4.6 
26.1 
3 156.5 w 
307.9 w 
95.5 w 
3 464.5 w 
1 932.9 w 
87.6 w 
: 

2018 
: 
: 
: 
: 

2019 
- 3 273.0 
- 5 680.0 
1 012.0 
- 2 478.0 
3 873.0 
276.0 
-  5.7 
30.8 
3 551.1 w 
264.2 w 
124.0 
3 815.3 w 
2 310.0 
88.0 w 
: 

2019 
: 
: 
: 
: 

2020 
- 2 034.0 
- 5 200.0 
1 101.0 
- 1 529.0 
3 594.0 
252.0 
-  5.4 
37.9 
2 938.5 w 
100.4 w 
C 
3 038.9 w 
C 
90.3 w 
: 

2020 
: 
: 
: 
: 

2021 
- 2 296.0 
- 5 923.0 
1 399.0 
- 2 059.0 
4 287.0 
294.0 
-  5.3 
30.1 
3 656.9 w 
229.1 w 
-  43.0 
3 886.0 w 
1 758.0 
83.0 w 
: 

2021 
: 
: 
: 
: 

2022 
- 4 139.0 
- 9 352.0 
2 315.0 
- 3 013.0 
5 913.0 
553.0 
-  5.2 
33.9 
4 328.2 w 
104.2 w 
-  38.0 
4 432.5 w 
1 392.0 
81.6 w 
: 

2022 
: 
: 
: 
: 

Financial indicators 
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) 
Total credit by monetary financial institutions to residents (consolidated) (million euro) 
**Annual change in financial sector liabilities (%) 

Note 
2) 

3) 

2011 
68.1 iw 
216.5 w 
2 806.7 w 
18 995.1 w 
: 

2018 
62.2 iw 
126.0 w 
6 703.6 w 
24 605.8 w 
12.7 pw 

2019 
61.4 iw 
121.0 w 
7 684.2 w 
26 743.3 w 
11.2 pw 

2020 
65.8 iw 
138.2 w 
10 376.6 w 
30 621.0 w 
12.3 pw 

2021 
68.4 iw 
126.6 w 
11 915.9 w 
33 158.9 w 
11.0 pw 

2022 
69.3 iw 
110.2 w 
12 237.3 w 
34 716.0 pw 
: 

93 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
**Private debt, consolidated, relative to GDP (%) 
Interest rates: day-to-day money rate, per annum (%) 
Euro exchange rates: average of period (1 euro = … national currency) 
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) 

: 
8.46 w 
101.950 
: 
: 

: 
2.43 w 
118.272 
: 
: 

: 
1.06 w 
117.852 
: 
: 

: 
0.08 w 
117.578 
: 
: 

: 
0.23 w 
117.573 
: 
: 

: 
4.00 w 
117.459 
: 
: 

1 802.0 

1 089.0 

1 873.0 

271.0 

2 620.0 

2 919.0 

External trade in goods 
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) 
Terms of trade (export price index / import price index * 100) (number) 
Share of exports to EU-27 countries in value of total exports (%) 
Share of imports from EU-27 countries in value of total imports (%) 

Demography 
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) 

Note 

2011 
13 706 
8 058 
- 5 648 
96.1 iw 
61.3 iw 
54.6 iw 

Note 

2011 
-  5.2 b 

Note 

Labour market 
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 (%) 
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 
(%) 

94 

2018 
20 211 
15 758 
- 4 453 
98.1 iw 
67.0 iw 
55.9 iw 

2018 
-  5.4 

4.9 
73.5 
78.4 

2018 
72.5 

63.1 

70.5 
55.8 
46.5 

15.9 i 
22.5 i 
4.4 i 
57.2 i 
27.3 w 

2019 
22 401 
16 977 
- 5 425 
98.9 iw 
66.3 iw 
54.7 iw 

2019 
-  5.3 

4.8 
73.4 
78.6 

2019 
72.9 

65.2 

72.1 
58.2 
50.2 

15.6 i 
22.6 i 
4.8 i 
56.9 i 
26.6 w 

2020 
21 482 
16 464 
- 5 019 
103.4 iw 
66.2 iw 
55.6 iw 

2020 
-  8.0 

5.0 
71.6 
77.5 

2020 
72.5 

65.9 

72.9 
58.9 
52.2 

14.6 i 
22.6 i 
5.4 i 
57.5 i 
26.4 w 

2021 
27 332 
21 053 
- 6 279 
106.1 iw 
65.8 iw 
53.9 iw 

2021 
-  10.9 

4.7 
70.0 
75.7 

2021 
75.0 b 

66.7 b 

74.2 b 
59.3 b 
51.4 b 

15.0 bi 
23.7 bi 
6.0 bi 
55.3 bi 
25.8 w 

2022 
36 739 
26 354 
- 10 386 
102.0 iw 
66.0 iw 
51.9 iw 

2022 
-  6.9 

4.0 
72.7 b 
77.9 b 

2022 
76.4 

69.3 

76.2 
62.3 
54.6 

14.8 i 
24.0 i 
5.9 i 
55.3 i 
: 

6.3 
72.0 b 
77.2 b 

2011 
64.1 

49.3 

57.0 
41.7 
31.4 

21.3 i 
21.5 i 
5.3 i 
51.9 i 
31.5 w 

68.5 w 

72.7 w 

73.4 w 

73.6 w 

74.2 w 

: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) (%) 

Social cohesion 
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) 
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 (%) 

Standard of living 
Number of passenger cars relative to population size (number per thousand population) 
Number  of  mobile  phone  subscriptions  relative  to  population  size  (number  per  thousand 
population) 
Mobile broadband penetration (per 100 inhabitants) 
Fixed broadband penetration (per 100 inhabitants) 

Infrastructure 
Density of railway network (lines in operation per thousand km²) 

Length of motorways (kilometres) 

Education, innovation and research 
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 (%) 

23.1 
22.5 
23.9 
50.9 
16.3 

21.5 

14.9 

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 

11.1 b 
10.2 b 
12.1 b 
26.4 b 
4.9 

14.0 b 

8.4 b 

9.4 
9.1 
9.9 
24.4 
3.8 

12.2 

6.2 

Note 
4) 5) 

2011 
52 733 w 
103 w 

2018 
68 629 bw 
105 w 

2019 
75 814 w 
114 w 

2020 
82 984 w 
123 w 

2021 
90 784 w 
129 w 

2022 
103 316 w 
131 w 

: 
: 
8.5 

: 
37.4 
6.8 

: 
32.1 
6.6 

: 
27.1 
5.6 

: 
28.3 
6.3 b 

: 
25.7 
5.0 

Note 

2011 
231.3 biw 
1 407.5 w 

2018 
287.0 
1 207.5 w 

2019 
301.0 
1 217.2 w 

2020 
315.0 
1 192.6 w 

2021 
329.0 
1 250.8 w 

2022 
352.0 b 
1 465.2 w 

Note 

Note 

: 
: 

2011 
49.2 iw 

595 w 

2011 
4.2 iw 
0.68 
: 

: 
30 w 

2018 
48.5 iw 

782 w 

2018 
3.6 iw 
0.92 
0.37 

: 
28 w 

2019 
48.5 iw 

928 w 

2019 
3.6 iw 
0.89 
0.40 

: 
34 w 

2020 
43.2 iw 

928 

2020 
3.5 iw 
0.91 
0.46 

: 
35 w 

2021 
43.4 iw 

928 

2021 
3.3 iw 
0.99 
0.42 

: 
35 w 

2022 
43.6 iw 

941 

2022 
3.2 piw 
0.97 
0.39 

: 

72.9 

80.1 

81.0 

81.5 

83.2 

Environment 
*Index of greenhouse gas emissions,  CO2 equivalent (1990 = 100) 

Note 

2011 
83.4 w 

2018 
77.4 w 

2019 
76.5 w 

2020 
78.0 w 

2021 
75.8 w 

2022 
76.4 w 

95 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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) (%) 

Energy 
Primary production of all energy products (thousand TOE) 
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) 

Agriculture 
Agricultural production volume index of goods and services (at producer prices) (2015 = 100) 
Utilised agricultural area (thousand hectares) 
Livestock numbers: live bovine animals (thousand heads, end of period) 
Livestock numbers: live swine (thousand heads, end of period) 
Livestock numbers: live sheep and live goats (thousand heads, end of period) 
Raw milk available on farms (thousand tonnes) 
Harvested crop production: cereals (including rice) (thousand tonnes) 
Harvested crop production: sugar beet (thousand tonnes) 
Harvested crop production: vegetables (thousand tonnes) 

Source: Eurostat and/or the statistical authorities in Serbia 

467.7 

394.5 

375.4 

392.0 

370.3 

365.2 

Note 

Note 

27.5 
: 

2011 
11 169 
1 122 
7 825 
405 
4 970 i 
16 325 
38 600 

2011 
98.2 w 
3 549.1 
937.0 
3 287.0 
1 699.0 i 
: 
9 538.5 
3 004.2 
1 023.6 

28.7 
55.5 w 

2018 
10 025 
976 
6 609 
358 
5 385 i 
15 528 
37 426 

2018 
109.8 w 
3 486.9 
878.0 
2 782.0 
1 908.0 i 
1 590.0 
10 529.1 
2 325.3 
829.8 

30.1 
68.0 w 

2019 
10 219 
941 
6 826 
349 
5 497 i 
15 417 
37 600 

2019 
113.3 w 
3 481.6 
898.0 
2 903.0 
1 833.0 i 
1 597.0 
10 436.4 
2 305.3 
738.5 

30.7 
64.9 w 

2020 
10 968 
921 
7 205 
325 
4 795 i 
15 955 
37 956 

2020 
116.0 w 
3 506.5 
886.0 
2 983.0 
1 887.0 i 
1 583.7 
11 447.6 
2 018.2 
720.1 

29.9 
62.0 w 

2021 
10 186 
894 
6 282 
288 
5 652 i 
16 237 
38 236 

2021 
110.2 w 
3 506.1 
860.0 
2 868.0 
1 890.0 i 
1 563.5 
10 236.4 
2 048.2 
795.7 

30.1 
62.5 w 

2022 
9 621 
881 
5 979 
261 
7 381 i 
16 432 
35 510 

2022 
101.4 w 
3 488.8 
799.8 
2 667.0 
1 912.5 i 
1 512.1 
8 012.9 
1 667.1 
815.8 

: = not available 
b = break in series 
C =  confidential value 
d =  definition differs 
p = provisional 
i = 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: 

96 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1) 

2) 
3) 

4) 
5) 

From reference year 2021, a part of unincorporated enterprises which provide annual financial report are included, as well as 
NACE  Rev.  2  Sections  B  to  N  (except  K),  P  to  R,  and  Divisions  S95  and  S96.  This  should  be  taken  into  account  when 
comparing with data for previous years. 

Official external debt of the Republic of Serbia. 
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. 

Wages and salaries paid to employees of legal entities and of unincorporated enterprises. 
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. 

97 

 
 
 
 
98