Serbia’s economic package is the most generous in the Western Balkans



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In the ILO and EBRDA report “Kovid 19 and employment”, the approach taken by Serbia is characterized by being more inclined to appeal. “errors of inclusion”, that is, providing assistance to those who do not really need it (“winners”), but “errors of exclusion”, that is, not providing assistance to those who need it (“losers”).

According to this model, measures to preserve employment (through direct support and deferral of tax obligations) reduce the poverty rate by 1.2 percentage points in all age groups, but it is still at half the rate. poverty level it had before the crisis.

When an aid measure of € 100 is added to the mix, the effect of the combined anti-poverty measures is extremely strong, reducing the “relative poverty rate to 22.9 percent, below pre-crisis levels “according to summary reports from the ILO and the EBRD. and about Serbia.

It is further noted that this model shows that with the combined effects of measures to preserve employment and one-time financial assistance for all adult citizens, Serbia succeeded in “slowing the spread of poverty, while only financial assistance succeeded in reducing the coefficient of Gini at a full point. “

In terms of working hours, the report indicates that with the applied model, the working hours in the second quarter of 2020 were reduced by 14.8 percent, which is equivalent to 510,000 full-time jobs.

Layoffs of workers have fallen below 9 percent

If the health crisis continues and job retention programs decline, there is a high risk that people will be pushed into the category of unemployment and inactivity.

Regarding risk by sectors, it is stated that in the coming months, according to the analysis, the most vulnerable in terms of employment are workers in eight sectors: wholesale and retail trade, accommodation, transport, food and beverages, services, forestry and logging and agricultural and livestock production.

According to estimates, nearly 700,000 people in these sectors are at immediate risk of losing their jobs, which are, as explained by those who work in jobs characterized by informality and job insecurity, self-employed or workers in micro-enterprises.

The ILO and EBRD note in the report that there are no significant vulnerabilities in Serbia in terms of characteristics related to gender equality.

According to this report, micro-enterprises are the most affected by the current health crisis and do not have sufficient access to funds to support recovery.

Despite that, with the exception of micro-enterprises operating in the textile, transport and tourism sectors, companies in Serbia in general have managed to reduce layoffs below 9.0 percent, according to the ILO and the EBRD.

Mali: Confirmation that we have hit the center with economic measures

The Minister of Finance evaluated by Tanjug that the report of the International Labor Organization, which analyzes in detail the economic measures implemented by Serbia due to the coronavirus pandemic, is further confirmation, as he noted, “that we help our economy in the right and comprehensive way and hit to the center right. ”

Mali also emphasized that, although some criticized the one-time financial aid of 100 euros, the report claims that this measure stimulated consumption and reduced the poverty rate.

“According to his model, this contributed to the reduction of the Gini coefficient by one percentage point,” says the minister.

Mali also notes that they confirm that Serbia has brought the largest package among the Western Balkan countries, of which we are especially proud.

“This report is also the best response to all the critics of our economic policy, who take every opportunity to challenge our every move,” Mali said.

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