BARRIER-FREE REGIONAL MARKET

INTERVIEW

MARKO ČADEŽ

President of the Chamber of Commerce and Industry of Serbia I am confident that the acceleration of economic integration through the implementation of the Open Balkans initiative will also contribute to a faster resolution of open issues in the Western Balkans

A

fter his visit to Germany in February this year, Marko Čadež, President of the Chamber of Commerce and Industry of Serbia (CCIS), said that the Western Balkans remains one of the priorities of the new German government. In this interview, the CCIS president speaks about the importance of Germany’s stance, the Open Balkans initiative and the results of cooperation with Germany.

Economic, trade and investment ties with Germany, as Serbia’s main economic partner, continued to grow stronger even during the pandemic. What is the current state of cooperation between the two countries?

GERMANY IS ONE OF THE LARGEST INVESTORS HERE WITH ABOUT 3 BILLION EUROS WORTH OF INVESTMENTS

During the pandemic, Germany remained Serbia's number one external trade partner and the first export market for Serbian products. The growth in trading between the two countries continued, which, taking both goods and services into account, increased by almost a quarter last year compared to

2020, and approached the amount of 8 billion euros. For the first time in 2021, the value of trade exceeded 6.5 billion euros, and the export of Serbian products to the German market increased by 25 percent - to about 2.750 billion euros. If we continue at this pace, and if there are no major upheavals on the global economic scene, in a year or two at the most, the Serbian-German trade in goods and services could reach as much as 10 billion euros.

Last year, more than 11,500 companies from Serbia did business with German partners - exporting from Serbia and importing from Germany. Among them are German companies that operate and produce in Serbia and that give the greatest contribution not only to the growth of Serbian exports to Germany and the world but also to the diversification of the export offer to include industrial products of higher processing degree and hightech products.

About a thousand companies and small businesses, founded with German capital, are registered in Serbia, and more than 800 companies are majority German-owned. In addition to being our number one trading partner, Germany is one of the largest investors here with about 3 billion euros worth of investments, according to the Bundesbank, and the first among investors in terms of the number of implemented investment projects in Serbia. New German investors have come to Serbia and joined the group of German companies that already invested in the past period and have been expanding their business in the past two years. It is important for Serbia that high-tech German companies have been investing in our country in the past few years, which, in addition to factories, are also opening their own research and development centres here.

You went to Germany in February, and upon return, you said that the Western Balkans remained a priority for the new German government. How important is that for Serbia and the region?

In order to accelerate regional integration in the Western Balkans and the region’s integration into the single European market, we need to have the support of a large partner such as Germany, which is the strongest European economy. The confirmation that our region remains in the focus of the new German government, but also of German companies, i.e. potential investors, is all the more encouraging.

I spoke with the of state institutions - the Bundestag, the ministries of foreign affairs and economy, the Office of the Chancellor, business associations and companies, about ways and solutions to give these processes new momentum, the importance of the Open Balkans initiative and how to expand the initiative to include all six regional economies, but also how to bring the region's economy closer to the single European market.

LAST YEAR, MORE THAN 11,500 COMPANIES FROM SERBIA DID BUSINESS WITH GERMAN PARTNERS - EXPORTING FROM SERBIA AND IMPORTING FROM GERMANY

For Western Balkan companies to start to enjoy concrete benefits as soon as possible, it is important that the principles and agreements on building a common regional market, concluded under the auspices of the Berlin Process, in which a lot of time and energy was invested, are implemented in practice through the Open Balkans initiative. It also means a lot to us to remove obstacles in doing business with the European Union, to enable the Western Balkan companies and products to fully open the single market, to have full access to the European Economic Area, and receive the same treatment as EU companies in those segments in which we have met European standards and rules. important and how much will it contribute to bringing the whole region closer, both individually and together, to the EU's common economic market?

The beginning of the implementation of the Open Balkans initiative is proof of the determination and readiness of Serbia, Albania and North Macedonia to expedite the economic integration of the region from within, but also with the EU. We have to encourage the formation of a regional market in practice, through the cooperation of institutions from three, at the moment, and soon I believe all six Western Balkan economies. Such a common, regional market without barriers will function on the same fundamental principles as the European Economic Area - as a zone of free movement of people, goods, services and capital, and will be our best preparation for entering the single European market.

The initiative will expand the business space for companies operating here, both domestic and foreign, significantly reduce costs and make business within the region more efficient, productive and competitive, as well as make the region even more attractive to the international business community. It will enable goods, accompanied by just one mutually harmonized document, to travel through the region, for trucks not to wait for hours at border crossings, to exchange workers and experts without bureaucratic procedures and to harmonize regulations and practices in all areas important for business with EU standards.

I am confident that the acceleration of economic integration through the implementation of the Open Balkans initiative will also contribute to a faster resolution of open issues in the Western Balkans, especially those between Belgrade and Priština, which will, in turn, bring greater political stability to the region, as a key prerequisite for further economic growth.

What else can contribute to the recovery and growth of the Western Balkan economies and a greater influx of foreign investments in Serbia?