SINIŠA MALI: “Mini Schengen” will soon become a reality in the Western Balkans

STABLE ENVIRONMENT

* An agreement on “economic normalization” between Belgrade and Pristina was recently signed in Washington. What are the key benefits of the signed agreement?

– The key benefits of the agreement are even faster integration and economic development of the entire region. We did the best we could, especially on issues that are important to the standard of living of citizens living in the Western Balkan region. The region’s exports have increased significantly in recent years, but the region’s economies remain poorly integrated into world trade. The increased presence of American capital in this area will provide an opportunity to change that.

Where he comes, others come. And not only that, Americans bring with them standards that are sometimes as important as the investment itself. For example, International Development Finance Corporation (DFC) projects must undergo a rigorous financial, environmental, and social impact analysis to ensure they meet internationally recognized standards.

During their projects, they also take into account respect for human rights and workers’ rights. The economic normalization of our relations with Pristina will also contribute to the countries of the region: it will have a stable environment, which is important for any economy. For “Mini Schengen”, perhaps the most important point of this agreement, it is important that Pristina agreed to be part of the initiative. And that is the concrete benefit of this agreement.

* You mentioned “mini Schengen”. Since you are an economist and finance minister, could you briefly tell us what would be the key benefits of creating such a union?

– Can you imagine what a market of almost 20 million inhabitants would mean for the world and world trade, where commercial conditions are uniform, bureaucratic obstacles have been eliminated to facilitate border crossing, where citizens cross the border based on your identity card and where fluctuation is easiest? workforce?

This market is also desirable for future investors who see their investments strategically, today they want to cover entire regions and regions where they come from, and not come and be stationed in a Balkan city. The American International Development Finance Corporation, which opened an office in Belgrade, is proof of this.

But more importantly, I am personally convinced that the “little Schengen” will help support young people. The labor market will be broader and more complete, joint work permits will be easier to issue. Recognition of qualifications and diplomas, without additional paperwork, will provide a greater opportunity for labor movement, which will improve the availability of labor.

* However, despite all the benefits it would bring, the idea of ​​a “mini Schengen” met with great resistance from certain politicians in the countries of the region. As the most common argument against him, it could be heard that with him, Serbia, as the largest state, would establish economic and political dominance in the region to the detriment of others. How do you comment on that?

– Some analyzes say that further economic integration in the region would contribute to an increase in regional GDP to an annual level of 1 percent, and perhaps even more. So even though Serbia is the biggest exporter, all countries will benefit from the “mini Schengen”. I think it is clear to all that only stronger and more concrete economic and trade integration of the Western Balkan region can enable and facilitate the transition to the accelerated and sustainable growth model of our economies.

PRACTICAL BENEFITS

* After the agreement in Washington, it seems that the “mini Schengen” had a better chance of coming to life. Do you think it will soon become a reality in the Western Balkans?

– Our economies are largely complementary and this has its roots in the period of socialism and the former FSYR. Why don’t we take advantage of that? In addition, our country is committed to improving regional cooperation, the reconciliation process. Europe and we hope to help reduce tensions, strengthen regional stability and integration, and the end result is practical benefits for our citizens and our economies.

The introduction of European standards through various regional initiatives is not just an objective, but a way for our citizens to feel concrete benefits: easier to communicate, connect and travel, easier to find work and to be able to buy products from the immediate environment without charges unnecessary. And to answer your question even more specifically at the end. Yes, I absolutely believe that the “mini Schengen” will become a reality in the Western Balkans in one way or another, in the near future.

BETWEEN THE THREE COUNTRIES OF EUROPE

* The coronavirus pandemic has dealt a global blow to the economy. What are the key economic measures that Serbia has taken to repair the damage and what are your expectations?

– With our package of measures of around 5.8 billion euros, we are among the most generous governments in Europe in relation to the size of its economy. This economic package represents 12.5 percent of our GDP. We avoid layoffs and with guarantee schemes, designed in cooperation with commercial banks and the State Development Fund, we help companies to overcome this difficult period.

We gave five salaries for more than one million employees in Serbia, as well as a one-time aid of 100 euros for all citizens. Entrepreneurs say we have literally saved them. That is why we expect to be among the three countries in Europe with the best results in terms of economic growth at the end of the year. We believe that we can be at zero, which is a great success under the conditions of the world’s greatest economic crisis.