NAD 2014-2017 With Projections Until 2020 (English)

NATIONAL PRIORITIES FOR INTERNATIONAL
ASSISTANCE (NAD) 2014-2017 WITH PROJECTIONS

UNTIL 2020
28/1/2014
1
CONTENT PAGE
Abbreviations 6
SECTION A: BACKGROUND AND CONTEXT 11
A.1 Introduction 11
A.1.1. Scope and Objectives of the Document 11
A.1.2 Intervention Strategy 12
A.1.3 Preparation of the Document 14
A.2 National Economic and Policy Context 15
A.2.1 Economic Situation 15
A.2.2 Policy Context 18
A.3 EU Integration 21
A.4 Development Assistance, Results, Principles and Perspectives 22
A.4.1 Types and Amounts of International Assistance 22
A.4.2 Results of International Assistance 24
A.4.3 Principles and Perspectives for International Assistance 26
A.5 Sector Approach 28
SECTION B: SECTORS AND THEMES 33
B1 JUSTICE SECTOR 33
B1.1. Scope and background of the sector 33
B1.2. Strategic framework 36
B1.3. EU Agenda 38
B1.4. Overall objectives and priorities in the sector (2014-2020) 39
B1.5. Sector measures for implementation of priorities in the sector 41
B1.6. Institutional framework for implementation of Sector Approach 45
B1.7 Indicators for measuring progress 47
B1.8. Aid effectiveness, efficiency and sustainability 54
B2 HOME AFFAIRS SECTOR 56
B2.3. EU Agenda 61
B2.7. Indicators for measuring progress 69
B3. PUBLIC ADMINISTRATION REFORM SECTOR 75
B3.3. EU Agenda 80
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B4 COMPETITIVENESS SECTOR 97
B4.3. EU Agenda 103
B5 ENERGY SECTOR 119
B5.3. EU Agenda 122
B6 ENVIRONMENT AND CLIMATE CHANGE 140
B6.3. EU agenda 146
B7 TRANSPORT SECTOR 162
B7.3. EU Agenda 166
B8 HUMAN RESOURCES AND SOCIAL DEVELOPMENT 179
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B8.2. Strategic Framework 183
B8.3. EU Agenda 185
B9 AGRICULTURE AND RURAL DEVELOPMENT SECTOR 205
B9.1. Scope and background of the sector of Agriculture 205
B9.2. Strategic Framework 209
B9.3. EU Agenda 211
B.9.4. Overall objectives and priorities in the sector (2014-2020) 215
B10. CULTURE THEMATIC AREA 230
B10.1. Scope and background for the thematic area 230
B10.2. Strategic framework 231B10.3. EU Agenda
232
B10.4. Overall objectives and priorities in the thematic area (2014-2020) 233
B 10.5. Measures for implementation of priorities in the thematic area 234
B10.6.Institutional framework for implementation of thematic area approach 235
B11 MEDIA THEMATIC AREA 240
B11.1. Scope and background for the thematic area 240
B11.3. EU Agenda 243
B11.4. Overall objectives and priorities in the thematic area 244
B11.5. Measures for implementation of priorities in the thematic area 245
B11.6. Institutional framework for implementation of thematic area approach 246
B12 CIVIL SOCIETY ORGANISATIONS THEMATIC AREA 252
B12.1. Scope and background of the thematic area 252
B12.3. EU Agenda 254
B12.4. Overall objectives and priorities in the thematic area (2014-2020) 255
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B12.6. Institutional framework for implementation of thematic area approach 257
SECTION C: COORDINATION AND IMPLEMENTATION 262
C.1 The role of SEIO/NIPAC 262
C.2 Sector Coordination 263
C3 Sector Lead Institution 263
C4 Implementation modalities 264
C5 Instruments for aid effectiveness 265
ANNEX 1 - STRATEGIC AND LEGAL FRAMEWORK 266
ANNEX 2 - NAD PRIORITIES AND MEASURES 290
ANNEX 3 – MATRIX OF CROSS-IMPACTS AT PRIORITY LEVEL 300ANNEX 4 – METHODOLOGY FOR
INFRASTRUCTURE PROJECT SELECTION AND PRIORITIZATION 301ANNEX 5 – METHODOLOGY FOR NAD
PREPARATION 305
ANNEX 6 – SECTOR LEAD INSTITUTIONS AND ACCESSION NEGOTIATION SUB GROUPS 314
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Abbreviations
SBRA Serbian Business Registers Agency

AC Asylum Centre
ACAS Anti-Corruption Agency
ADR European Agreement concerning the International Carriage of Dangerous Goods by Road
Fra. “Accord européen relative au transport international des marchandises Dangereuses
par Route”.
ADN European Agreement Concerning
The International Carriage of Dangerous Goods
By Inland Waterways Fra.-Accord européen relative au transport international des
marchandises Dangereuses par voies de Navigation intérieures
AETR European Agreement concerning the Work of Crews of Vehicles Engaged in International
Road Transport
AGTC European Agreement on Important International Combined Transport Lines and Related
Installations
AMS Directive Audio-visual Media Service Directive
ANEM Association of Independent Electronic Media
ARD Agriculture and Rural Development
ATS Accreditation Body of Serbia
AP Autonomous Province
BIA Security Information Agency
BOD Biochemical Oxygen Demand
CAP Common Agricultural Policy
CARDS Community Assistance for Reconstruction, Development and Stabilization
CBC Cross Border Cooperation
CEFTA Central European Free Trade Agreement
CERD Committee on the Elimination of Racial Discrimination
CoE Council of Europe
COTIF Convention concerning International Carriage by Rail
CPC Criminal Procedure Code
CPE Comission for Protection of Equality
CPI Corruption Perceptions Index
CRR Comprehensive Regulatory Reforms
CRS Commissariat for Refugees and Migration of the Republic of Serbia
CSF Common Strategic Framework
CSO Civil Society Organisations
CSP Country Strategy Paper
CULTEMA Cultural Territorial Network
EBRD European Bank for Reconstruction and Development
EC European Commission
ECB European Central Bank
ECENA Environmental Compliance and Enforcement Network for Accession
ECHR European Court on Human Rights
ECRAN Environment and Climate Regional Accession Network
ECTS European Credit Transfer System
EEA European Economical Area
EFRD European Fond for Regional Development
EFTA European Free Trade Association
EHEA European Higher Education Area
EIB European Investment Bank
ELV Emission Limit Values
EMAS ЕМАS - The European Eco-Management and Audit Scheme
EMS Electric Network of Serbia
ENE Energetics
ENR Lower Navigation Level Fra. ENR - Etiage navigable et de régularisation
ENV Environment
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EPS Electric Power Industry of Serbia
ESCO Energy Service Company
ESPAD European School Survey Project on Alcohol and Other Drugs
EU European Union
EURES European Employment Service
EUROSTAT European Statistics
FADN Farm Accountancy Data Network
FAO Food and Agriculture Organisation
DABLAS Task Force Danube Black Sea Task Force
DAC Development Assistance Committee
DFI Direct Foreign Investment
DFID UK Department for International Development
DMDM Directorate for Measures and Precious Metals
DMS Decentralised Management System
DP Displaced Persons
DR Death rate
GAP Gross Agricultural Production
GDP Gross Domestic Product
GDERD Gross Domestic Expenditure on Research and Development
GGE Total Greenhouse Gas Emissions
GFEC Gross Final Energy Consumption
GIZ German Association for International Cooperation - Ger. Deutsche Gesellschaft für
Internationale Zusammenarbeit
GMO Genetically Modified Organisms
GMPT General Master Plan for Transport
GRECO Group of States against Corruption - Council of Europe anti-Corruption Group
GS General Secretariat
GSP U.S. Generalized System of Preferences
GTS Guaranteed Traditional Specialty
GVA Gross Value Added
HCC High Court Council
HFCS Household Finance and Consumption Survey
HR (MD) Human Resources (Management and Development)
HSC Horizontal Support for Coordination With International Financial Institutions
IA Internal Affairs
IACS Integrated Administration and Control System
IATTM Interim Agreement on Trade and Trade-related Matters
ICT Information and Communication Technology
ICSS Independent Cultural Scene of Serbia
IDC Interdepartmental Commission
IDP Internally Displaced Persons
IFI International Financial Institutions
ILO The International Labour Organization
IMF International Monetary Fund
IPA Instrument for Pre-Accession Assistance
IPA-MC IPA Monitoring Committee
IPARD IPA for Agriculture and Rural Development
IPPC Integrated Pollution Prevention and Control
IRENA International Renewable Energy Agency
ISDACON IS Information System for Coordination of the Development Assistance to the Republic of
Serbia
ISDEC International Standard Classification of Education
ISS Institute for Standardisation of Serbia
IT Information Technology
ITS Intelligent Transport System
JA Judicial Academy
JASPERS Joint Assistance to Support Projects in European Regions
JICA JICA - Japan International Cooperation Agency
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JISP Unified Information System in Educational Institutions
JUS Judiciary
KfW German Development Bank
KKiM Government Office for Kosovo and Metohia of the Republic of Serbia
LAG Local Action Group
LEADER Links between the rural economy and development actions, Fra.- Liaison Entre Actions de
Développement de l'Économie Rurale
LFS Labour Force Study
LGBT Lesbian, gay, bisexual and transgender
LM Line Ministries
LNG Liquified Natural Gas
LPIS Land Parcel Identification System
LSG Local Self-Government
LSMS Living Standard Measurement Study
MA The Managing Authority
MDTF-JSS The Multi Donor Trust Fund for Justice Sector Support
MDGs Millennium Development Goals
MFP Multi-factor productivity
MISP Municipality Infrastructure Support Programme,
MLA Mutual legal assistance
MoE Ministry of Economy
MoF Ministry of Finance
MoI Ministry of Interior
MTOE Million tons of oil equivalent
NACE European Classification of Economic Activities
NAD Needs Assessment Document
NBS National Bank of Serbia
NCA National Codex Alimentarius
NCP National Contact Points
NDNV Independent Journalists’ Association of Vojvodina
NES National Employment Service
NIP National Investment Plan
NIPAC National IPA Coordinator
NIPAC TS NIPAC Technical Secretariat
NMVOC Non-methane volatile organic compounds
NPAA National Programme for the Adoption of the Acquis
NPI National Plan for Integration with the European Union for 2008-2012
NQF National Qualification Framework
NREAP National Renewable Energy Action Plan
NRDP National Regional Development Plan
NSC National Security Council
NUNS Independent Journalists’ Society of Serbia
NUTS Nomenclature of territorial units for statistics
OHMR Office for Human and Minority Right
OSCE Organisation for Security and Co-operation in Europe
OTIF Intergovernmental Organisation for International Carriage by Rail
PA Public Administration
PAR Public Administration Reform
PAF Performance Assessment Framework
PC Public Company
PCB/PCT Polychlorinated biphenyl/Polychlorinated terphenyls
PDO Protected Designation of Origin
PEFA Public Expenditure and Financial Accountability Assessment
PGI Protected Geographical Indications
PIF Project Identification Form
PISA PISA - The Programme for International Student Assessment
PMS Public Media Service
PPF Project Preparation Facility
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PPP Public-Private Partnership
PPPC Public-Private Partnership Commission
PUC Public Utility Company
RATEL Republic Agency for Electronic Communications
RBA Republic Broadcasting Agency
RD Directorate for Railways
RDBE Research and Development Business Expenses
REBIS Regional Balkans Infrastructure Study
REC CEE Regional Environmental Center for Central and Eastern Europe
RENA Regional Environmental Network for Accession
RHP Regional Housing Programme
RID Regulations Concerning the International Carriage of Dangerous Goods by Rail
RPP Republican Public Prosecutor
RPPO The Republican Public Prosecutor's Office
RS Republic of Serbia
SAA Stabilisation and Association agreement
SAI State Audit Institution
SBPOK Counter-Organized Crime Service
SCSO Sector Civil Society Organizations
SCTM Standing Conference of Towns and Municipalities
SECI Southeast European Cooperative Initiative
SEE South-East Europe
SEIO Serbian European Integration Office
SELEC Convention of the Southeast European Law Enforcement Centre
SEPA Serbian Environmental Protection Agency
SFRY Socialist Federative Republic of Yugoslavia
SIDA Swedish International Development Cooperation Agency
SIEPA Serbia Investment and Export Promotion Agency
SIM Special Investigation Measures
SMC Sector Monitoring Committees
SME Small and medium enterprises
SWG Sector Work Groups
SORS The Statistical Office of the Republic of Serbia
SPC State Prosecutors' Council
SPO Senior Programming Officer
SSP Sector Support Programme
SWOT Strengths, Weaknesses, Opportunities and Threats
TA Technical Assistance
TAIB Transition Assistance and Institution Building
TEN Trans-European Networks
TEN-E Trans-European Networks - Energy
TEN-T Trans-European Networks - Transport
TFEU Treaty on the functioning of the European Union
TIMSS Trends in International Mathematics and Science Study
TKM Ton-kilometer
TN Programmes Transnational Programmes
TPP Thermal Power Plant
TRA Transport
TRKM Traveller-kilometer
UAA Used Agricultural Area
UIC International Union of Railways
UN United Nations
UNCAC United Nations Convention Against Corruption
UNDP United Nations Development Programme
UNESCO United Nations Educational, Scientific and Cultural Organization
UNFCCC The United Nations Framework Convention on Climate Change
UNICEF United Nations International Children's Emergency Fund
UNODC United Nations Office for Drugs and Crime
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UNS Jornalists’ Society of Serbia
USA United States of America
USAID The United States Agency for International Development
VAT Value-Added Tax
WB World Bank
WHO World Health Organisation
WTO World Trade Organisation
YOP Yearly Operational Planning
ZAPROKUL Center for Studies in Cultural Development
ZIS Integral Railway Transport
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SECTION A: BACKGROUND AND CONTEXT
A.1 Introduction
A.1.1. Scope and Objectives of the Document

The strategic objective of Serbian economic policy1 is to accelerate European integration /EU accession by implementing
the systematic reforms needed to meet the Copenhagen criteria. The progressive achievement of these reforms and the
subsequent closer integration of Serbia with the EU should create a more attractive economic environment which will act as
a driver for increased economic development and social cohesion e.g. by incentivising entrepreneurship and promoting
social inclusion.
Document ‘National Priorities for International Assistance in the Republic of Serbia 2014-17, with projections until 2020’
(hereinafter: NAD) is strategic programming document which provides a means for increasing the alignment of international
assistance2 with national priorities so that targeted donor interventions will support mainstream public spending on policy
reforms from the national budget. In addition, the NAD makes it possible to eliminate the duplication of donor activities and
to rationalize these activities so that they are as cost-effective as possible. This approach is a widely recognized way of
increasing the efficiency and effectiveness of international assistance and is based on the conclusions of the Paris
Declaration3 on Aid Effectiveness.
Whilst the NAD is the fourth in a series of such planning documents since 2007 4, it is the first to fully anticipate the complete
introduction of a Sector Approach (as recommended by the Paris Declaration 5) over the planning period it covers i.e. from
2014 onwards. For this reason the NAD has a wide policy scope, covering all sectors and policy areas which are judged to
be significant in preparing the country for EU accession and its socio-economic development. In total the NAD defines nine
separate sectors, three thematic areas and two cross-cutting issues as listed in Table 1 below. The reasons for choosing the
NAD sectors and the differences between sectors and thematic areas are explained in Section A5 below (Sector Approach).
Table 1: Sectors, Thematic Areas and Cross-Cutting Issues in the NAD
NAD Sectors Thematic Areas

1. Justice 1. Civil Society
2. Home Affairs 2. Media
3. Public Administration Reform 3. Culture
4. Competitiveness
5. Energy
6. Environment and Climate Change
7. Transport Cross-Cutting Issues
8. Human Resource and Social Development 1. Local /Regional Development
9. Agriculture and Rural Development 2. Gender Equality
Given that the NAD is intended to become the basis for implementing a Sector Approach, it is also the first external
assistance planning document in Serbia to contain indicators and to set verifiable, annual and mid-term, targets which can
be used for assessing the progress of reforms in each sector /thematic area.
On the basis of the above, the specific objectives of the NAD are as follows:
1 As given in the Fiscal Strategy for 2014, with projections for 2015 and 2016, Government of the Serbia, November 2013.
2 The term International assistance is used throughout this document and covers both grants and concessional loans. Grants can be in the form of
humanitarian aid and development assistance, while concessional loans are always development assistance. Humanitarian aid is focused on relieving
suffering caused by natural disasters or conflict; it is not necessarily considered a long-term solution. Development assistance is given to economic
development and /or social development and is aimed at removing the root causes of poverty or vulnerability. See Section A.4.1 for a further discussion of
types of assistance in Serbia.
3 The Paris Declaration on Aid Effectiveness (OECD, 2005): Conclusion 3(iv): ‘Eliminating duplication of efforts and rationalising donor activities to make
them as cost-effective as possible’. Indicator 3 (see Section A.4.3, Table 4).

4 Preceding planning documents were: Needs Assessment Document (NAD) 2007-9; NAD 2009-11; NAD 2011-13.
5 The Paris Declaration on Aid Effectiveness (OECD, 2005): Indicator 4 (see Section A.4.3, Table 4).
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(i) To align international assistance with national strategies so as to ensure the most efficient use of available
financial resources, and the deployment of international assistance funding to co-finance the national budget
actions.
(ii) To maximise the effectiveness and eventual impacts of international assistance funds by concentrating them in a
relatively small number of accession-relevant measures which can be monitored on a regular basis
(iii) To improve strategic planning for the benefit of EU accession and national socio-economic development within the
line ministries by further development and consolidation of the Sector Approach in Serbia.
A.1.2 Intervention Strategy
According to established EC procedures, intervention strategy is made up of three inter-linked elements: (i) intervention
rationale (which shows how identified needs, problems and challenges are addressed); (ii) intervention logic (which shows
how planned activities are linked to outputs, results and different levels of expected impacts); (iii) intervention relationships
(which assesses how interventions interact with others in similar or overlapping policy fields).
NAD intervention rationale is developed separately for each sector /thematic area and is presented in Section B of this
document. Specifically, Section B2 for each sector /thematic area (Strategic Framework) describes the main objectives and
priorities contained in the relevant national strategies (the actual strategies are listed per sector /thematic area in Annex 1).
Similarly, Section B3 (EU Agenda) describes the EU policy and accession related framework. On the basis of the
information presented in Sections B2 and B3, together with that given in B1 (defining sector scope) and B8 (evaluation of
past assistance), a summarized analysis of priority needs, problems and challenges is given in Section B4 (in the form of a
SWOT analysis) and is the basis on which the intervention logic has been formulated for each sector /thematic area.
NAD intervention logic follows the standard EU programme format and is defined at three levels, namely: Overall Objectives,
Priorities and Measures, which are described for each sector /thematic area in Sections B4 (Objectives and Priorities) and
B5 (Measures) respectively. The overall objectives and priorities for sectors /thematic areas, which are covering period up to
2020, are derived from the objectives of the sector strategies which make up the strategic framework presented in Section
B2. The overall objective is usually based on a synthesis of the highest level objectives in the sector strategies whereas
priorities usually reflect some, or all, of the specific objectives of these strategies. The intervention logic is as follows: overall
objectives are achieved by means of one or more priorities which, in turn, are achieved through measures implemented by
the various activities and actions undertaken in specific operations. This causal sequence is shown in Figure 1 below; this
figure shows the intervention logic for a hypothetical sector which is implemented by means of six measures focused
through three priorities.
Figure 1: Intervention Logic used in the NAD for each Sector /Thematic Area
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In fact, overall, the nine sectors covered in the NAD are addressed by 27 priorities which are implemented by means of 72
measures. Each sector has between two and four priorities (on average three) implemented by five to 14 measures (on
average eight). The NAD sector /thematic area priorities and objectives are shown diagrammatically in Annex 2.
The third element in intervention strategy, intervention relationships, focuses on identifying and eliminating potential conflicts
between the outputs, results and impacts of individual measures and maximizing potential synergies by means of identified
cross-impacts i.e. when the measures in one priority have positive impacts on those in another priority. Theoretically, a
programme might consist of the juxtaposition of independent projects, of which the total effect is simply the sum of the
individual effects. In such a situation, programming would be a purely formal exercise since programme objectives could be
reached just as easily by managing the projects independently. Programming adds value because the projects reinforce one
another, creating an effect of synergy. Attempting to achieve such synergy is one of the basic reasons for undertaking an
analysis of intervention relationships.
Matrices of potential cross-impacts at both the priority and measure levels are presented in Annex 3. These show a high
level of potential synergies across the whole NAD intervention logic. At the priority level, 15 sector priorities show positive
cross-sector synergies whereby the impacts of achieving priorities in one sector reinforce or add to the impacts of priorities
in other sectors. Table 2 below shows four (of the 15) sector priorities which have potentially positive synergies, for example,
the sustainable management of resources and the reduction of pollution (environment sector, priority 3) will increase the
attractiveness of rural areas (rural development priority 2) and a more effective public administration (public administration
reform, priority 1) should improve the policy framework in the energy sector (energy, priority 1). Overall, if measures and
their operations are managed to maximize positive cross-impacts this should lead to an increase in the future efficiency,
effectiveness and impacts of the NAD.
Table 2: Identification of Potential Positive Cross-Impacts for NAD Sector Priorities
Environment & Climate Change Priority 3 Agriculture & Rural Development Priority 2
Ensuring environmental sustainability through sound Improving quality of life & attractiveness of rural areas
management of natural resources and reduction of
pollution Synergy
Public Administration Reform Priority 1 Energy Priority 1

Increasing the effectiveness & efficiency of public Improving the policy, institutional & legislative
administration Synergy framework to ensure a sustainable development in the
energy sector
The design of the NAD has taken into account that the selection of appropriate indicators will be essential for the future
monitoring of progress made in the implementation of sector reforms. In general, the choice of indicators is closely related to
the nature of the intervention logic. The NAD intervention logic is marked by a significant change in scope between the
measure and priority levels in that:
 NAD overall objectives and priorities are formulated at the level of national sector strategy objectives and are therefore
set at the impact level of national public policies and will be achieved by means of the full range of national resources
(domestic budget, international assistance, IFI loans etc.). This means that indicators at this level should be national
‘context’ indicators of impacts e.g. average national employment rate, average survival rate of business start-ups etc.
 Measures, by contrast, are mechanisms delivering sector priorities. Measures are implemented by means of specific
operations (usually projects or grants) which have the same, or closely related, objectives. This means that actions can
be concentrated and thus made more effective in the delivery of specific priority reforms. It is expected that NAD
measures will in large part be implemented by means of operations funded by international assistance. Indicators at the
level of measures should be ‘programme’ indicators e.g. survival rate of business start-ups which received direct
programme /project support. Measure indicators are set at the level of outputs and results.
It should be noted that indicators for the two cross-cutting issues (local/ regional development and gender equality) will be
identified at both the priority and measure levels and will be used as part of the performance assessment for each sector
/thematic area.
For local/ regional development, indicators will focus on the achievement of balanced regional development which is the
main objective of government regional policy6. At present there are significant socio-economic disparities between the north
and south of Serbia and currently Belgrade and the Vojvodina region generate some 67% of national GDP. Economic
6 Draft National Plan for Regional Development, 2014-2020
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asymmetries are reflected not only between developed and undeveloped regions, but also between cities and municipalities.
With regard to gender equality, indicators should reflect the principle of promoting equal opportunities between men and
women. At present there are inequalities in the participation of women in the jobs market and there is also a significant wage
gap between men and women. Furthermore, women are generally more affected by unemployment than men in all age
groups, particularly as regards to long-term unemployment.
Indicators for cross-cutting issues are not presented in this document but will be developed as part of the performance
assessment framework of the NAD once measures start to be implemented (see Section A.5 for description of monitoring
arrangements).
Generally NAD measures contain a wide range of different activities which are focused on the delivery of results in five main
areas, namely: (i) the improvement of the regulatory framework; (ii) socio-economic development; (iii) the implementation of
sector strategies; (iv) extensive institution-building activities; (v) the preparation and implementation of infrastructure
projects. In relation to the infrastructure projects, a national project selection and prioritization methodology 7 has been
developed together with the necessary supporting documents. This supporting documentation is focused on assessing the
strategic relevance, institutional capacity and technical maturity of proposed projects.
It is foreseen that the priorities and measures defined by the NAD will serve as the basis for programming international
assistance and the development of future assistance programmes and projects. NAD measures will be financed by
international assistance, such as the EU Instrument for Pre-Accession (IPA), bilateral and multilateral donor programmes,
EU Programmes, together with support provided by International Financial Institutions (IFIs); for details see Section A.4.1
below (‘Types and Amounts of International Assistance’). Close links and complementarity will be established with actions
financed by the national budget in line with the rules for national budget planning as part of Serbia’s adoption of a Sector
Approach in the management of international assistance.
A.1.3 Preparation of the Document
The preparation of the NAD was led and coordinated by the Serbian European Integration Office (SEIO) which is a
governmental service responsible for coordinating programming and monitoring the use of international assistance in Serbia.
The overall objectives, priorities and measures for each sector/ thematic area were drafted in cooperation with the
responsible line ministries, other state institutions and were discussed and commented on by the appropriate Sector
Working Groups (SWGs). SWGs were established in 2010 to ensure inter-ministerial coordination and have been of great
importance in the development of the Sector Approach in Serbia. The functions and responsibilities of SWGs are described
in detail in Section C.2 (‘Sector Coordination’).
The NAD was prepared between December 2012 and October 2013 and involved comprehensive consultations with the
SWGs and the active participation of national authorities, the EU Delegation, bilateral and multilateral donors,
representatives of civil society organizations (CSOs), as well as local self-government bodies. These consultations were
spread over a number of SWG meetings, in order to present draft documents and fully discuss recommendations and inputs
provided by CSOs and donor community representatives. Recommendations provided were taken into consideration and
are reflected in the final text of the document. The full process of NAD preparation, from initiation by SEIO to government
approval, has involved 15 separate steps which are described in the Annex 5.
The preparation of NAD followed a defined methodology and a set timetable for the completion of four progressive versions
of the sector /thematic chapters in Section B. The preparatory methodology is explained in an annotated standard template
which was developed to structure Section B chapters. Additional supporting guidance was issued to all sector experts in
order to standardise the descriptions of institutional and strategic frameworks across all the sectors /thematic areas. The
template, guidance and other regular briefings and papers were drafted with support from two parallel technical assistance
projects (the EU funded Project Preparation Facility plus SIDA support to SEIO). The final text was reviewed and agreed
with SEIO and SWG before its approval by the Government.
The methodological guidance given to sector experts together with the annotated standard template for Section B chapters
is presented in the Annex 5.
The following guiding principles were taken into account in the preparation of the NAD:
(i) Concentration - The intervention logic of the NAD has been designed to maximise the strategic relevance and
impact of international assistance. For interventions to be strategically relevant they should be guided by widely-
scoped sector objectives /priorities which are set at the national level. For interventions to have long-term impacts
available resources should be concentrated on achieving a limited set of reforms or solving a restricted number of
problems (rather than spreading resources over the entire sector reform agenda). An additional reason for
concentration is that in the future the amount of donor support is set to decrease and the ‘fiscal space’ for further
borrowing is very limited (as explained in Sections A.2.1 and A.4.3 below).
7 This Project Prioritisation Methodology is presented in Annex 4.
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(ii) Ownership and inclusiveness – The NAD was prepared in close cooperation with all relevant national authorities
and in partnership with other relevant stakeholders, namely the main donors and CSOs. The NAD is a national
strategic planning document which has been adopted by government and which will correspond to equivalent
donor planning documents such as the EU Country Strategy Paper (CSP) for Serbia.
(iii) Coherent and strategic approach – The consultative methodology used in preparing the NAD has facilitated the
increased consistency of measures and enabled stakeholders to work more closely together in defining joint
priorities for each individual sector /thematic area. This document will support strategic multi-annual planning in
Serbia and will be updated on a three-yearly basis.
(iv) Measurement of the performance – The definition of indicators and targets at the level of priorities and measures
makes it possible to develop a Performance Assessment Framework (PAF) for measuring the achievement of
sector reforms. Indicators and targets will be reviewed and assessed for suitability on a regular basis. The
establishment and operation of PAFs marks an important stage in the development of the Serbian Sector
Approach.
(v) Greater efficiency and effectiveness of future international assistance – The NAD defines national mid-term
priorities for EU integration /socio-economic development and identifies those which could be wholly, or partly,
delivered with international assistance financing. Given that the costs and administrative demands of preparing the
country for accession are very large, the government’s main aim in adopting the NAD is to make the most efficient
use of all available financial resources (i.e. from both domestic and international sources). Effective sector level
support calls for complementarity with the national budget actions and extensive cooperation with donors and IFIs
to attract and focus grants and soft loans. Complementarity with national budgets and effective donor coordination
are two of the main principles of the Serbian Sector Approach (see Section A.5, below).
(vi) Lessons learned and sequencing – The preparation of the NAD, especially in relation to the identification and
definition of measures, took into account the various thematic and sector evaluations which have been carried out
to date8, and also planned interventions to be supported in the immediate future by IPA 2012-13 and various
bilateral and IFI projects. This means that the future implementation of NAD measures can be progressively
sequenced on the basis of already programmed sector interventions.
A.2 National Economic and Policy Context
A.2.1 Economic Situation

Over the past five years Serbia has taken a number of significant steps towards EU membership, which include the signing
of the Stabilization and Association Agreement (SAA) in May 2008, the full implementation of the Interim Trade Agreement
with the EU in February 2010 and being granted EU Candidate Country status in March 2012. On June 28, 2013 the
European Council endorsed the Council of Ministers conclusions and recommendations to open accession negotiations with
Serbia, and announced that they would commence by January 2014 at the latest. In addition, Serbia is also pursuing
membership in the World Trade Organization (WTO) and, at the time of preparing this document, accession negotiations
with the WTO are at an advanced stage. These important milestones demonstrate that the prospect of EU membership
represents a constant and substantial strategic-political orientation in the development of national public policies. This is
reflected in the most recent statement of economic policy 9 which states that a key objective for national economic
development is the acceleration of the necessary policy reforms and institutional preparations for EU accession. These
reforms, it is argued, will gradually establish a more favourable economic and fiscal environment and will provide
establishment of market economy, macroeconomic stability and rule of law, with suppression of corruption and organised
crime.
As it is the case with other European countries, Serbia has entered a period of economic austerity. Governments throughout
Europe are seeking to reduce their deficits by cutting spending and increasing revenues and ultimately pay off their national
debts. Combined with de-leveraging by households, limited bank lending and corporate caution over investment, the
squeeze on spending across the continent is having major negative social as well as economic consequences for European
citizens, in terms of unemployment and poverty. There are over 20 million people unemployed in the Eurozone (12%). In
January 2013, the ‘Fiscal Compact’ entered into force in the Eurozone which is designed to strengthen fiscal discipline by
requiring national budget deficits not to exceed 0.5% of nominal GDP. The treaty contains an automatic correction
mechanism. In the short to medium term, the discipline imposed by the Compact makes front-loaded economic stimulus
8
Evaluation of Effectiveness and Efficiency of Development Assistance to the Republic of Serbia per Sector (April 2013), SIDA.
Technical Assistance for Evaluation of Agriculture and Rural Development Sector Implemented and Financed by IPA Programmes and other Donors in the
Republic of Serbia. Evaluation Report (EU Delegation, January 2013).
Remaining sector and thematic area evaluations in progress (EU Delegations).
9 Fiscal Strategy for 2014 with projections for 2015 and 2016, Government of the Republic of Serbia, November 2013
15
programmes in the Eurozone very difficult and unlikely. The Serbian economy is closely tied to the Eurozone economy (the
majority of Serbian exports being to the EU and CEFTA).
Serbia is an upper middle income economy, with a GDP estimated at 31,500 million EUR or 4,33610 EUR per capita in 2011.
The population in Serbia, based on the census in 2011, is 7,186,862. Prior to 2008, GDP growth rate showed a steady rate
of increase, averaging around 5% in the period 2001-711. This growth was supported by flexible monetary and fiscal policies
that stimulated consumption, but which was not sustainable and did not address underlying weaknesses in productivity.
Moreover, funds accumulated from the privatisation process were used to cover current spending needs, public salaries and
pension increases (2007-2008) and propping up state-owned companies, rather than productive investments.
As with the Eurozone economies, such fiscal flexibility is no longer a policy option. In 2012, Serbia’s budget deficit was 5.7%
of GDP (consolidated deficit was 6.4% GDP). The Government estimates that the deficit will be 4.7% in 2013, although the
Fiscal Council takes a more pessimistic view at 5.5%. Serbia’s national debt (general State debt) was 61% of GDP in 2012
(the legal limit is 45%), and for year 2013 it is estimated at 64.2% GDP, as estimated, unemployment is over 26%
(unemployment rate 15+ is 24.1% according to labour survey) - double the Eurozone average and economic growth
estimate is 2% for 2013. The IMF’s concerns regarding Serbia’s national finances have been clearly expressed:
Serbia faces significant economic challenges, including a weak economy and large internal and external
imbalances. Macroeconomic policies should urgently aim to tackle the underlying vulnerabilities and
ensure macroeconomic stability. Significant and sustained fiscal consolidation, underpinned primarily by
curbing mandatory expenditures, is needed to reverse the rise in public debt 12.
Failure to introduce robust fiscal consolidation measures and public expenditure cuts, combined with continued tax revenue
shortfalls, unbudgeted spending initiatives, public bank resolution costs, clearance of arrears, and the payment for called
guarantees would result in an insufficient reduction in fiscal deficit in 2014 (Fiscal Committee estimate is that sustainability of
public finance requires deficit reduction in 2014 of over 2% GDP comparing to 2013) and inability to reach projections of
public debt of 56% GDP defined by Public Debt Management Strategy 2013-2015.
The inefficient state owned sector absorbs much needed investment funds and is not increasing Serbia’s productivity nor
creating new employment generation opportunities. For example, out of nearly 500 public enterprises with over 200,000
employees, a total of 198 ended 2012 with losses which represented four-fifths of total losses of the Serbian economy. The
companies with the heaviest losses included Serbian Railways (RSD 16.6 billion), Petrohemija (RSD 12.4 billion), and
Roads of Serbia (RSD 7.8 billion).The Ministry in charge of finance has responded to the financial situation by introducing
expenditure reductions of RSD 50 billion (EUR 439 million) in 2013 and plans to reduce the size of the public administration,
and to privatise state companies, which will need to be managed carefully to avoid past mistakes in the privatisation process
and to produce the desired impact in terms of competitive change. The Ministry in charge of economy has significantly
intensified the process of modifying relevant legal provisions since September 2013 to enhance privatisation process and
make it more transparent by publishing data on companies in privatisation and reconstruction. The approach to subsidies to
public companies working with losses has also been changed, with the objective of incenting solutions for economic issues
of these companies.
Critically, the structural imbalance between public expenditure and tax revenues, which has been an on-going issue prior to
the present economic crisis, has to be addressed. Tax decreases introduced in 2007, the transfer of EUR 400 million of
national funds to local self-government under fiscal decentralisation and the expanding ‘informal economy’ have further
distorted tax revenue generation. With the on-going recession, the informal economy continues to expand in Serbia, at
between 20% and 30% of GDP. The high fiscal burden of employing labour, costly tax procedures, complex tax system,
under-staffed tax administration, poor quality of public services and the important role of the informal economy as a social
safety net, makes formalising the sector difficult. Moreover, due to low productivity and weak business models, enterprises
rely on informal employment as a competitive cost advantage. 13 The need to generate more tax revenues is compounded by
the continued increases in costs to the state due to unemployment, previously wide-spread subsidy provision practice
(particularly to attract FDI) and social welfare payments. Un-planned additional costs have emerged with the re-purchasing
of former privatised entities such as Sartid in Smederevo and the OTE’s14 20% share in Telekom Serbia. Clearly, these
investor exits from Serbia are linked to the general downturn in the European economy which has also contributed to over
EUR 1.5 billion of funds transferred back from Serbian banks to their parent countries, but also the funds were unable to
identify good investment projects in Serbia.15
At such state of play Serbia faces restricted policy choices. The financial situation means that the Government cannot
engage in fiscal stimuli programmes. Any funds available will have to be used to decrease the national debt in line with
10 Statistical Office of the Republic of Serbia, www.stat.gov.rs

11 Ranging from 2.5% in 2003 to 9.3% in 2004
12 Article IV Consultation: Concluding Statement of IMF Mission to Serbia May 2013
13 USAID (2013) The Shadow Economy in Serbia: USAID Business Enabling Project Report. Foundation for the Advancement of Economics.
14 Hellenic Telecommunications Organization S.A.
15 The Serbian Banking Association, 2013
16
government policy. The forecasted economic growth is too low to have an impact on reducing the 26% unemployment rate
(unemployment rate 15+ is 24.1% according to labour survey). To reduce this scale of unemployment, the Serbian economy
will have to return to at least a 4% growth rate. The restructuring and privatisation of costly state owned companies will
reduce the burden to the national finances but will also result in a further increase in unemployment. This will have political
ramifications unless supported by employment generation programmes to absorb former state-owned company employees.
In this context, the Ministry in charge of Economy has stressed the need for Serbia to switch economic models from one
based on consumption and public expenditure to one strengthening domestic economy and export demand where Serbia
competes globally by exploiting its comparative advantages, based on improvement of business climate and securing
guarantees for more favourable financing instead of subsidising favoured companies, which mainly work with losses.
The share of primary agriculture in Serbia’s GDP (in constant 2002 prices) is currently 10% and it has been steadily
decreasing over the last decade (from 13.1%). The real annual growth rate of the agricultural sector has mainly been
negative over the past 10 years, with the exception of 2008–2009, when it was boosted by soaring food prices on the
international market, which benefited Serbian agricultural exports. In the same period, while the average annual growth rate
(AGR) of GDP was 4% (2001-2010=3.7%; 2002-2011=3.3%; 2002-2012=2.9%), the average AGR of agriculture was only
0.9%.16
To illustrate this under-performance - the Netherlands with 1.9 million hectares of agricultural land 17 exported €75 billion in
201218, while Serbia with 3.4 million hectares19 exported around €2 billion20. While the gross value of the sector to the
Serbian economy is EUR 4.5 billion and represents 25% of exports, in terms of resources the gross value contribution
should be closer to Euros 12 billion. Serbia exports low added value agricultural products and has low productivity in the
sector - one farmer in Serbia feeds 15 people on average, while in Germany the number is 156. (Economics Institute,
Belgrade). Moreover, the prices of Serbian agriculture demonstrate high volatility which indicates a lack of competition and
inefficiencies in value marketing chains. This highlights a problem in servicing export markets in terms of continuity of supply
and quality standards. The combination of Serbia’s agriculture resources, forecast global food demand (expected to
increase by 70% by 2050, according to FAO), free trade agreements (e.g. Russia, Turkey) and attractive investment
incentives should point to Serbia becoming a major food manufacturing location and an attractive investment opportunity for
foreign direct investors. SIEPA markets Serbia as a manufacturing hub that can enable duty free exports to a market of
almost 1 billion people (Russia, Turkey etc.) but to date none of the major global agro-food firms have located in Serbia.
The Fiscal Strategy for 2014-2016 reflects the focus on creating the conditions for growth based on increased investments
and exports which will underpin an improvement in the labour market and a general rise in living standards. National
programmes encouraging economic growth, fiscal consolidation, public debt reduction and structural reforms are envisaged
to support these directions. The Fiscal strategy recognises that in the past transition period, economic growth resulted
mainly from the growth of consumption (based on privatization proceeds) and from heavy borrowings made abroad by the
private sector. The contribution to economic growth from the policy reforms performed over this period was not sufficient.
The results from investments such as the National Investment Plan have not realised planned objectives. For the period
2012-2013 there has been a continuation of unfavourable tendencies in decrease of production and unemployment in
majority of economic sectors, illiquidity and insolvency of economy, unfavourable transactions in capital balance regarding
low foreign direct investments and bankruptcy of companies and banks to impact depreciation of Dinar, decrease in credit
operations of banks, decrease in actual values of economy credits and increase in bad credits, high unemployment rate,
reduction in average net income, increase in fiscal deficit and public debt. In the next period and with the objective of
decreasing fiscal deficit and public debt, the Government will implement a very ambitious plan of fiscal consolidation and
structural reforms which secure stability of public finance and support economic growth and competitiveness. Closing fiscal
disbalances is necessary to strengthen public finance sustainability and to create conditions for economic recovery and long
term sustainable development. Consequently, fiscal consolidation, improvement of business conditions and strengthening of
development will continue primarily through efficient use of EU funds.
New model of state development means reduction in irrational expenditure, bureaucracy and unnecessary expenses of state
and at the same time increase in investment expenditure to stimulate economic growth and improvement, along with social
protection of most vulnerable social groups.The government has recognised that this model of growth depends on the
consistent implementation of a comprehensive agenda of reforms that ensure the following: (1) Creating stable and
predictable business environment by establishing adequate regulations, primarily regarding Labour Law and Law on
Planning and Construction, as well as more energetic continuation of “regulations guillotine” and introduction of e-
Government, (2) Completion of privatization of remaining companies through reconstruction and bankruptcy process
according to set deadlines and improved regulations on privatization and bankruptcy, (3) introducing professionalisation of
16
World Bank (2013) Serbia Partnership Programme Snapshot.
17
http://knoema.com/ES_agr_r_landuse-8?tsId=1001690 (taken from Eurostat)
18
http://www.hollandtrade.com/sector-information/agriculture-and-food/?bstnum=4909
19
http://popispoljoprivrede.stat.rs/
20
SORS, Statistical Yearbook, 2012 (figures for 2011)
17
public companies and responsible corporative management in companies which would still be controlled by state, along with
dislocation of social policy from public companies to social protection system, (4) A tax policy to stimulate economy and
employment, (5) Gradual and responsible reduction of state share in economy, including conversion to concession financing
models and public – private partnerships wherever it is economically feasible and justified and (6) zero tolerance to Law
evasion and crime and corruption in reformed institutions of the system.
According to long term plan for regional development of Serbia and established system and institutional regulation
mechanisms, the policy and measures to stimulate balanced development of all areas in Serbia will be applied in the next
mid-term period, including development of underdeveloped areas. Based on the Constitution of the Republic of Serbia, a
support to this policy is reflected in preparation of National Plan for Regional Development (NPRD) for 2014-2020 as multi-
sector strategic document.
A.2.2 Policy Context

In order to regain pace of growth and achieve high standards set on the path to the EU, Serbia needs to focus and
streamline funding from national, private and international sources on three domains of activity, namely:
 The creation of an efficient and effective public administration;
 The increase in national and regional prosperity
 The improvement of connections within, and to, the Western Balkans and macro regions
Efficient and Effective Public Administration
Strengthening the rule of law and good governance are central not just to the achievement of the EU reform agenda, they
are also essential for the achievement of sustainable socio-economic development. These are indispensable elements that
are essential to secure creation of growth and attracting investment, economic development and job creation and dealing
with common challenges such as the fight against organised crime and corruption. Promoting the development of rule of
law, democratic principles and better governance are at the core of the reform process in Serbia. Reforms are underpinned
with the principles of an independent, transparent, accountable and efficient judicial and legal system, with a government
that applies fair and equitable laws to all of its citizens. Public administration reform, at all government levels, aims to offer
high quality services to citizens and the private sector, at reasonable costs.
In this domain, as described in Section B of the NAD (chapters 1, 2 and 3), it is expected that international financial
assistance will be focused on measures within the following sectors:
Justice – Covering judicial reform, prevention and fight against corruption, support to the protection of human and minority
rights. The national objective for this sector is to deliver independent, impartial, accessible and efficient judiciary
guaranteeing the rule of law, human right protection and promotion, as well as the quality of justice.
Home Affairs – Covering the fight against organised crime and drugs, money laundering, terrorism, human trafficking, border
management and control, including migration and asylum, and the protection of human rights of refugees and internally
displaced people. The national objective for this sector is to enhance safety and security at the individual level, different
social groups and communities and the state levels.
Public Administration Reform –Covering a wide range of public sector institutions, together with the executive power branch
at the central level (ministries, special organisations, and public agencies), autonomous provinces, local government
authorities and public utilities and services. This encompasses also the independent state bodies (e.g. state audit),
parliamentary competences, central monetary policy and banking, and the relevant reform aspects concerning anti-
corruption, protection of citizens' rights, access to information of public importance. The national objective for this sector is to
achieve standards of ''Good Governance'' by creating efficient, effective, transparent and professional public administration
that fits the needs of the citizens and business and contributes to sustainable social and economic development of Serbia.
Special objective for all companies in which state has got ownership share is to respect and apply principles of corporative
management, rational expenditure, accurate financial reports and transparent reporting.
National and Regional Prosperity
Sustainable socio-economic growth will be achieved through development of the productive capacity of the economy by
building on strengths in agriculture and food production, improvement of business climate and attracting Foreign
Investments, moving into higher-value manufacturing and higher-end services with export potential, expanding medium-
sized business base and strengthening potential for innovation. Mobilisation of the economy cannot be achieved without
aligned investments in human capital through education and training, especially in vocational skills, and facilitating a better-
qualified and motivated labour force to access new job opportunities, especially those facing the toughest challenges either
18
through discrimination or disadvantage. Social cohesion will be assured by combining economic growth policies with
inclusion policies designed to facilitate access to education, employment, social and health services.
Socio-economic development is highly dependent on the quality of infrastructure in transport, environment, energy and
Information and Communication Technology (ICT). Economic development is reliant on a strong transport sector which is
essential for development of competitiveness, better education possibilities, agriculture production and placement of
products in the market. Serbia is committed to ensure transport services which are in line with the EU standards and best
practice principles, that will enable smooth flow of freight and mobility of people. The Environment and Climate Change
Sector must address pollution problems and prepare for accession negotiations on the ‘investment-heavy directives’ for
meeting EU standards through the strengthening of administrative capacity and further investments in infrastructure. Safe
and reliable supply of energy and energy sources are a prerequisite for the improvement of living standard of households
and economic activities. National priorities include ensuring that energy is supplied to the end users at minimal price, that
investments are made in energy infrastructure and that the necessary investments are secured for the integration of national
energy markets into a single European energy market by means of trans-European networks. In addition, the government
has also identified that both energy efficiency and renewable energy deployment are crucial to sustainable development in
the energy sector. Development of ICT and support for technological innovations will enhance human capabilities for
communication, working, and learning and consequently will lead to improved quality of life achieved through increased
knowledge, enhanced creativity and full participation in the social and economic life.
In this domain, according to Section B of the NAD (chapters 4-9), it is expected that international financial assistance will be
focused on measures within the following sectors:
Competitiveness – Covering financial instruments for Small and Medium Sized Enterprises, modern infrastructure linked to
business services, applied research activities, delivery of a range of innovation support services, policies and legislation
based on proper research of problems in the operating environment for businesses in Serbia, the creation of an institutional
framework designed to ensure adequate enforcement and the provision of support services to companies. The national
objective for this sector is to increase the competitiveness and innovation of enterprises within a well-functioning market
economy.
Energy – Covering electricity, oil, gas, energy efficiency, renewable energy sources, mining, and security of supply, with the
overall objective projected towards 2020. The national objective for this sector is to integrate into European energy markets
by achieving secure, safe, reliable and quality supply of energy and energy sources following principles of sustainable
development.
Environment and Climate Change – Covering horizontal requirements (Environmental Impact Assessment, Strategic
Environmental Assessment, public participation, etc.), air quality, waste management, water quality, nature protection,
industrial pollution prevention and control, chemicals, noise, climate change. The national objective for this sector is to
improve environmental quality by means of: aligning policy and regulatory mechanisms with the EU environmental acquis,
integration of environment protection policy with economic and policy of other sectors; more responsible management of
natural resources and developing environmental infrastructure.
Transport – Covering rail, road, inland waterways, civil aviation and intermodal transport modes. The national objective for
this sector is to provide efficient, quality, reliable and sustainable services contributing to a comprehensive and safe
transport system of the Republic of Serbia as an integral part of the Trans-European Transport Network.
Human Resource and Social Development– Covering employment, labour market issues, education, social inclusion, health
and youth. The national objective for this sector is to contribute to smart, sustainable and inclusive growth enabling greater
opportunities for a better standard of living, as well as reduction of gap between economic requirements and education
products.
Agriculture and Rural Development – Covering agricultural production, forestry, fisheries, food safety, animal welfare, and
sustainable rural development. The national objective for this sector is to attain viable and competitive agriculture sector that
respects high environmental, quality and food safety standards ensuring at the same time improved quality of life in rural
areas.
According to Section B of the NAD (chapters 10 and 11), it is expected that international financial assistance will be focused
on the following measures in these thematic areas:
Culture – Covering contemporary art and culture, creative industries, cultural heritage, intercultural dialogue, human and civil
rights, cultural tourism and culture & business. The national objective for this thematic area is to attain full achievement of
professional EU standards in the implementation of the overall cultural policy aimed at protection of public interest, freedom
of expression, cultural identities, social cohesion and regional development
Media– Covering media and digital switchover. The national objective for this thematic area is to secure full achievement of
professional EU standards in the domain of audio-visual services aimed at protection of democratic values, rule of law,
freedom of expression and information, cultural identities, public interest, social cohesion and regional development.
19
In addition, it should be noted that the thematic area covering Civil Society is considered to be a cross-cutting theme for all
nine sectors. The national objective for this thematic area is to ensure active participation of CSOs in policy making.
Links within the Western Balkans and macro regions
The NAD focuses on certain aspects where it is important to foster the cooperation between the countries of the Western
Balkans and macro regions (WB) to achieve improvements. The impact of the economic crisis being felt throughout the
Western Balkans, the Western Balkans fell back into recession i.e. returning to conditions of low levels of competitiveness,
income, investment and of rising unemployment. The improvement of the Western Balkans socio-economic development
can be ensured through implementation of well-targeted joint actions. In some sectors the cross border and transnational
nature of many activities require strong cooperation between authorities within the Western Balkans, together with EU
Member States.
The unique status of the Danube River and its hinterland demands international cooperation and coordination,
within and outside the EU. That is why, on 13 April 2011, Member States endorsed the EU Strategy for the Danube Region
(the Danube Strategy), proposed by the European Commission. According to the Danube Strategy ‘’by 2020, all citizens of
the Region should enjoy better prospects of higher education, employment and prosperity in their own home area. The
Strategy should make this a truly 21st century region, secure and confident, and one of the most attractive in Europe’’. This
Strategy is built on a set of cooperation “pillars” (1. Connecting the Danube Region; 2. Protecting the Environment in the
Danube Region; 3. Building Prosperity in the Danube Region and 4. Strengthening the Danube Region), which are then
further elaborated into priorities (tasks) through an Action Plan.
In addition, it is expected that by end of 2013 the strategy for South East Europe 2020 will be adopted by the EC, while by
end of 2014, the EU Strategy for the Adriatic and Ionian Region will be adopted at the Ministerial conference of the South
East Europe Investment Committee (SEEIC). Both strategies will be directed to limited number of thematic pillars and
priorities.
Cross-border and Transnational Cooperation programmes in the new financial perspective 2014-2020 are required to
have more strategic and focused approach. The participating countries will have to focus on limited number of thematic
objectives/priorities of those that have been identified by the EC. In that respect, Thematic Objectives, that apply to all ERDF
CBC and transnational programmes are the following:
TO1: Strengthening research, technological development and innovation;
TO2: Enhancing access to and use and quality of information and communication technologies;
TO3: Enhancing the competitiveness of small and medium-sized enterprises;
TO4: Supporting the shift towards a low-carbon economy in all sectors;
TO5: Promoting climate change adaptation, risk prevention and management;
TO6: Protecting the environment and promoting resource efficiency;
TO7: Promoting sustainable transport and removing bottlenecks in key network infrastructures;
TO8: Promoting employment and supporting labour mobility;
TO9: Promoting social inclusion and combating poverty;
TO10: Investing in education, skills and lifelong learning;
TO11: Enhancing institutional capacity and an efficient public administration.
At IPA II CBC at intra-Western Balkans border – 8 IPA Thematic Priorities21 listed below will apply to all IPA-IPA
programmes:
TP1: Promoting employment, labour mobility and social inclusion;
TP 2: Protecting the environment and promoting climate change adaptation and risk prevention;
TP 3: Promoting sustainable transport and improving public infrastructures;
TP 4: Encouraging tourism and cultural heritage;
TP 5: Investing in youth and education;
TP 6: Promoting local and regional governance, planning and administrative capacity building;
21
List of thematic objectives has not yet been completed
20
TP 7: Enhancing competitiveness, business and SME development, trade and investment;
TP 8: Strengthening research, technological development, innovation and ICT.
A.3 EU Integration
After being granted Candidate Country status in December 2012, on June 28, 2013 the European Council endorsed the
Council of Ministers conclusions and recommendations to open accession negotiations with Serbia, and announced that
they would commence by January 2014 at the latest. The start of negotiations will represent a major change in relations with
the EU and will significantly shape the work of the public administration for the coming years.
An important benchmark in this process was the adoption by the Government (on 28 February 2013) of a National Plan for
Adoption of the Acquis (NPAA) for the period 2013-2016. The NPAA represents a multiannual programme of all legislation to
be adopted in order to implement obligations from the SAA 22 and prepare for further alignment with the acquis. The
document defines development and strategic goals, relevant policies, reforms and the measures required for the realisation
of these goals which have also been taken into consideration when preparing the NAD.
Moreover, it establishes a detailed plan for the harmonisation of legislation and defines human and budget resources and
other resources required for the implementation of the envisaged tasks. The goals set down in the NPAA are to be
completed by 31 December 2016. After that, the adoption of a new document will be considered, depending on the progress
and results achieved in the framework of EU accession negotiations.
Furthermore, in order to respond to the findings of the EC Progress Report 2012, Serbia prepared the comprehensive Action
Plan (adopted in December 2012) and intends to publish periodical reports on its execution during 2013. In order to pave the
way for the coordination of the process of Serbia's accession to the EU, the Coordination Body for the European Union
accession process has been established23 in order to examine all issues and coordinate the work of Ministries and
government bodies related to EU accession. The Coordination Body is headed by Prime Minister. Expert group of the
Coordination body – headed by the Director of the European Integration Office and comprising of heads of working groups
for negotiations; it is the main body for horizontal coordination of the accession process. Expert Subgroups /35/ - are the
working groups for negotiations as key mechanism for coordination of various areas of the EU acquis, whose division,
competence and composition substantially match the negotiation chapters.
Considering previous experience in implementing National Programme of Integration of the Republic of Serbia into the EU
for 2008–2012 (NPI)24, with accomplishment in the period from 1 July 2008 to 31 December 2012 at a level of 88%
(1030/1172), considering that from 1172 planned measures, 1030 were adopted, and the adoption of 243 laws was planned
whereby 201 were adopted (represents 83% of the programme accomplishment) 25, it is worth of emphasising expectations
that achievements in this process will be even greater, having in mind a Candidate Country status and expected opening of
the negotiation process.
After opening the accession negotiations, the first step will be the screening of Serbian legislation in light of further
harmonization of domestic legislation with EU law. Accession negotiations will lead towards further harmonisation of
domestic legislation with EU law and will mean further mobilisation of the existing structures; it will also require the
involvement of highest possible spectrum of society in order to gain support to this most challenging national task.
Experiences of other countries are showing that the composition of every negotiation group (and position) has to reflect the
broadest possible interests in every area. Accurate organisation of the accession negotiations and preparation of the
negotiation positions will have to be arranged to reach the widest public support.
22 “The Stabilisation and Association Agreement (SAA) and the Interim Agreement on Trade and Trade-Related Matters (ITA) were signed on 29 April 2008.
The Serbian National Assembly ratified the SAA and ITA on 9 September 2008 (Official Gazette of RS No. 83/08). The ITA came into force on 1 February
2010 after being ratified in December 2009. The SAA came into force on 1 September 2013.
23 Decision on establishing the Coordination Body for EU Accession Process (Pursuant to Article 25, paragraph 1 of the of the Regulation on Principles for
Internal Organisation and Systematisation of Work Posts in the ministries, special organisations and agencies of the Government (“Official Gazette of RS”
no. 81/07 – consolidated text and 69/08))
24 Adopted by the Government on 9 October 2009
25 Source NPAA 2013-2016
21
A.4 Development Assistance, Results, Principles and Perspectives
A.4.1 Types and Amounts of International Assistance

The international community started providing extensive assistance to Serbia at the end of 2000. At that time, after a decade
of isolation and economic devastation, the country was in considerable need of economic revitalization including the
reconstruction of neglected infrastructure and the significant reduction in levels of poverty. Over the period 2000-2, donor
support consisted mainly of humanitarian assistance aimed at meeting urgent human welfare needs and alleviating
immediate suffering e.g. providing support for electricity import and the recovery of national energy systems, supplying
missing medicines, resolving issues of refugees. However, from 2003 onwards, donor support moved gradually towards the
provision of development assistance to support structural/legal reforms and to build administrative and institutional
capacities. The term ‘international assistance’ used throughout this document covers both types of assistance but refers
principally to development assistance. International assistance encompasses support from bilateral and multilateral donors
together with that from international financing institutions (IFIs). IFI support is normally provided in the form of grants and
concessional loans26
The estimated annual disbursements of international assistance over the period 2001-2012 are shown in Figure 2, below. In
total 8.9 billion EUR was disbursed over this 11 year period, i.e. an average disbursement rate of 800 million EUR per year.
However, Figure 2 shows that disbursements varied greatly from year to year and that the average rate is rarely achieved in
any one year. The initial trend, from 2001-2004 is a steep downward decline in disbursement from an initial figure of over
906 million EUR in 2001 to 438 million EUR in 2004, a reduction of over 50%. Many different factors influenced
disbursement over this period; of particular note were the political turbulences and constant government changes at this time
together with insufficient administrative and absorption capacities, negative global economic trends and the unpredictability
of various humanitarian crises. These factors affected the allocation as well as the disbursement of both grants and
concessional loans and had an adverse effect on the disbursement of humanitarian assistance during the past period.
There was an increase of more than 200 million EUR in the disbursement international assistance in 2005 due to the
government launching an urgent appeal towards donor community to support the resolution of the urgent humanitarian crisis
in the country during that year. As a result there was a significant increase in grants, particularly for humanitarian assistance.
26The IMF defines concessionary (=soft) loans as being loans that are extended on terms substantially more generous than market loans. The
concessional nature is achieved either through interest rates below those available on the market or by grace periods, or a combination of these.
22
Figure 2: The Estimated Disbursement of International Assistance in the Period 2001-201227
As noted above, international assistance consists of both grants and concessional loans. Figure 3 below, shows the
breakdown between grants and loans over 2001-12 and indicates that there has been a steady rise in the proportion of
loans since 2007. It should be pointed out that whilst grants can be used to deliver both humanitarian and development
assistance, concessional loans are always perceived as delivering development assistance. There was a sharp increase in
development assistance after 2008, with disbursements rising from 450 million EUR in 2008 to almost 1.2 billion EUR in
2010, an increase of 260% (Figure 2). An inspection of Figure 3 shows that this was the result of increases in disbursements
of both grants and concessional loans. In relation to loans, disbursements were associated with major infrastructure projects
financed through loans from the EIB, WB, EBRD and KfW28 and the large jump in the disbursements for 2010 (up to an
annual maximum of 734 million EUR) was the consequence of increased administrative capacities and improved
procedures, particularly in relation to inter-ministerial coordination. Similar considerations apply to grants which reached 423
million EUR /year (a maximum level for the 2001-12 period) and were mostly attributable to the disbursement of EU IPA
funds related to budget support and assistance for public finance management.
For the upcoming 2014 -17 period, information on future allocations of international assistance is partial since data are
available only for a limited number of donors. However, on the basis of information provided by these donors the estimated
total of new allocations is approximately 1.1 billion EUR i.e. 275 million EUR per year (as compared to 800 million EUR over
the period 2001-12). In this regard it is important to emphasize that several key donors were unable to provide data on
estimated commitments since at the time of drafting the NAD they were in the process of preparing new assistance
strategies and financial frameworks. This means that the actual new commitments for the period 2014-2017 will almost
certainly be higher than the estimate above. However, despite this, the analysis of available data shows that the levels of
bilateral assistance will slowly decrease and that the predominant source of international grant assistance over this period
will be the EU under IPA-2 (which covers national IPA, Multi-Beneficiary IPA, Cross Border Cooperation and Transnational
IPA programmes). In addition, when programming IFIs resources relevant institutions have to take into consideration limited
fiscal space for future borrowing.
In order to accelerate the infrastructure development that the EU needs and to provide better access to the internal market
and terminate the isolation of certain economic "islands" a Connecting Europe Facility has been created. In some cases,
parts of the EU that are not yet linked to the main electricity and gas grids, transportation and ICT networks depend on
investments made in the Western Balkans. Hence, it is necessary to support the realisation of future projects of
common interest through access of Western Balkan countries to the Connecting Europe Facility. Access of the
Western Balkans to this instrument would allow for a greater impact of the EU-Western Balkans win-win project in terms of
achieving both EU’s internal and external objectives and it would link Western Balkans more closely to the EU, physically
and economically.
In summary, the following trends in international assistance can be observed from 2001:
 The proportion of humanitarian assistance decreases and development assistance starts to dominate overall
international assistance
27 Source: ISDACON IS, www.evropa.gov.rs

28 EIB=European Investment Bank; WB=World Bank; EBRD=European Bank for Reconstruction and Development; KfW=Kreditanstalt fur Wiederaufbau
23
 The share of grants declines in favour of concessional loans
 International assistance becomes progressively more oriented towards supporting structural reforms and sustainable
socio-economic development
 The overall amount of international assistance will be reduced and the major source of grant assistance will be IPA-2
programmes.
Figure 3: The estimated disbursement – Grants vs. Soft loans in the period 2001-2012
A.4.2 Results of International Assistance

As explained above, the government is committed to making the best use of international assistance in support of the
national development and reform agenda. In order to ensure the most efficient and effective use of on-going and future
assistance it is important to look back and assess what has been achieved to date. To this end, a number of evaluations of
past assistance have been carried out; the most recent and wide ranging of these has been financed by the Swedish
International Development Cooperation Agency (SIDA)29 and was carried out by independent evaluators. This evaluation
examined the performance of international assistance from all sources over the period 2007-11 for each of the sectors/
thematic areas defined in the previous NAD (2011-13)30. The evaluation scope covered 1,425 active projects31 (1,340 grants
and 85 concessional loans) with a total value of 4.2 billion EUR, making it one of the most comprehensive evaluations to
have been carried out in Serbia and one of the few to examine the Serbian Sector Approach.
The performance of assistance was assessed against the five standard OECD/DAC evaluation criteria, namely: (i)
relevance; (ii) effectiveness; (iii) efficiency; (iv) impact and (v) sustainability.
The general conclusions of the SIDA evaluation are briefly described below. However, the specific conclusions and
recommendations varied widely from sector to sector and are presented in more detail in Section B.8 for each sector
/thematic area. Section B.8 also includes the findings of a series of completed and on-going sector-specific evaluations32
which have been launched by the EU Delegation.
The results of the SIDA evaluation are summarized in Table 3, below.
Table 3: Summary of the Evaluation of International Assistance per NAD (2011-2013) Sectors
OECD / DAC Criteria

Relevance Effectiveness Efficiency Impact Sustainability
NAD sectors
29 Evaluation of the effectiveness and efficiency of development assistance to the Republic of Serbia per sector. SIDA, April 2013
30 There were eight sectors in the previous NAD (2011-13), these have been slightly readjusted in the present NAD by the disaggregation of the two large
sectors ‘Rule of Law’ and ‘Environment and Energy’ into four separate sectors in the NAD (2014-20) namely: Justice; Home Affairs; Environment; Energy.
31 As registered on the ISDACON IS database managed by SEIO
32 Six evaluations have been launched, these are: (i) Civil society, media and culture; (ii) Rule of law; (iii) Agriculture and rural development; (iv)
Competitiveness; (v) Transport; (vi) Human resource development. At the time of preparing the NAD, evaluations (iii) and (v) had been completed.
24
Rule of Law High Medium Low-Medium Low Low
Public Administration Reform Very-High Medium Low-Medium Very-Low Low
Civil Society, Media and
High High Low-Medium Low-Medium
Culture
Competitiveness High High High Low Medium
Human Resource Development Very-High Medium Medium Low Low
Agriculture & Rural
High Medium Low Low Low-Medium
Development
Transport High Medium Low Low Low
Environment & Energy Very-High Medium-High Medium Low Low
The overall results and conclusions for each evaluation criterion were as follows:
 Relevance – as shown in Table 3 above the evaluation found that international assistance was highly responsive to the
national needs and that the collection of projects supported by this assistance was assessed as highly relevant to
Serbia’s needs and consistent with both national priorities and donor policies.
One reason for this is that the challenges faced by Serbia, as well as the requirements set by the programming
processes, (both national and donor’s), encouraged the development of a large number of sector strategies
/programmes making it possible for almost every development assistance initiative to be cross-referenced to
government objectives.
 Effectiveness – the evaluation findings on effectiveness showed that, on the whole, most intervention objectives were
achieved, or are expected to be achieved, taking into account their relative importance.
Effectiveness was rated at the medium level in six out of the eight sectors and at the high level for the two remaining
sectors. In general it was concluded that international assistance contributed to: (i) improvement of national capacities
and systems; (ii) improvement of the regulatory framework; and (iii) strengthening of administrative management
structures. However, the evaluators pointed out that sometimes the objectives were unrealistic or that findings of lower
effectiveness resulted from missed outcomes and under-performance against expected results, where international
assistance managed to achieve the objectives only at a superficial level (e.g. the adoption of new regulations /laws
which were not subsequently enforced).
 Efficiency – the evaluation provided observations on both the resourcing of interventions and their management. In
this regard, it was concluded that international assistance was predominately rated at the low to medium levels
(efficiency was rated at the high level only in two sectors). The most efficient interventions were those where the
government used a mix of different resources and financing sources to meet public policy objectives.
Efficiency was high when the most suitable mix of resources/inputs was used, and this varied from sector to sector, but
efficiency also depended on whether the purpose of the intervention was well matched to the capacity of the
beneficiary. However, there was a wide range of reasons for observed inefficiencies e.g. (i) some interventions were
inefficient because small amounts of financial assistance were overwhelmed by much larger, hidden, administrative
costs; (ii) poor quality of technical assistance provided; (iii) the length of the procurement processes; (iv) high turnover
of consultants; (v) repetition of activities due to failures in achieving initial objectives; (vi) failures to match international
assistance interventions with national priorities.
 Impact – an important conclusion of the evaluation was that whilst most interventions financed by international
assistance reach their specific objectives they often failed to achieve higher (strategic) objectives.
In other words, assistance can be effective and efficient, but still have no impact. The evaluation took into consideration
that some international assistance was programmed in a fragmented manner and that the setting for development
assistance was hostile (i.e. the economic crisis which escalated over the period 2007-2011). However, despite this
consideration the evaluation concluded that the prospects for impacts were poor. It is important to emphasize that the
impact was not confined to the parameters of individual projects but subject to the availability of other non-project
conditions. It may be unrealistic to expect all planned impacts to be achieved by any international assistance
intervention, but it is to be expected that progress should be made towards achieving impacts through efficient
programming, project design, the organisation of non-project factors (e.g. partner commitment, procedures, budgets,
human resources, coordination with other projects, political support) and increased implementation capabilities.
Furthermore, the failure to achieve planned impacts cannot be the responsibility of international assistance alone, since
this is also the consequence of weaknesses in the beneficiary, particularly weak strategic planning, lack of mature
projects, resource weaknesses and political will.
25
 Sustainability – in general the sustainability of results achieved by international assistance interventions was rated at
the low to medium level mainly due to insufficient government commitment in terms of both human and financial
resources to sustain the outputs and results achieved.
In order to deliver planned policy reforms and meet the challenges of sustained national development e.g. decrease of long-
term unemployment, improvement of the trade balance, diminishing rural poverty and depopulation of the country (as
described in Section B of the NAD) there is a need to streamline all capacities and resources. The fundamental challenge
facing the Serbian authorities managing international assistance over the period 2014-2020 “will be to do better with less”. In
this regard, the evaluation made four main recommendations to improve the relevance, effectiveness, efficiency, impact and
sustainability of international development assistance, these are:
(1) Concentrate and integrate international assistance to maximise impact;
(2) Strengthen policy planning and coordination in central government;
(3) Apply the most effective and efficient modalities based on agreed rules;
(4) Establishing a culture of performance monitoring and embedding a system of monitoring and evaluation within the
Serbian public administration.
In terms of preparing Serbian institutions generally and the wider public for EU membership, Serbian participation in EU
Programmes and Agencies is of great importance. This opportunity stems from the adoption of the 2005 Framework
Agreement with the EU and is open to a wide range of Serbian organizations including: SMEs, universities, research
institutions, cultural institutions and CSOs. Currently Serbia participates in 11 EU Programmes33 for which the cost of
participation (the ‘entry ticket’ for each programme) is met from IPA national and multi-beneficiary programmes. Given the
recognized importance of these activities it is important to analyse the efficiency and effectiveness of this usage of IPA
funds. Such an analysis poses particular challenges for SEIO because, unlike the rest of IPA funding, there is no clear role
for neither the EU Delegation nor SEIO in the preparation and implementation of EU Programmes. Instead, EC policy DGs
and executive agencies communicate directly with national line institutions and contact points, while applicants submit
proposals directly to the responsible DGs /Agencies. Furthermore, National Contact Points (NCPs) often cannot provide
complete information on the absorption levels of the various EU Programme funds in Serbia. For these reasons SEIO will
undertake a separate evaluation for participation in EU Programmes which will assess the effectiveness of participation in
each programme individually. This evaluation will aim to provide important information to the NCPs on the functioning of
each programme, categories of beneficiaries, types of projects and the absorption of funds and will be the basis of the
decision on Serbia’s participation in EU Programmes over the 2014-20 financial perspective.
A.4.3 Principles and Perspectives for International Assistance
It is evident that there is a need to streamline the use of both national and international resources in order to be successful
in implementation of reforms and strategic economic goals, the adoption of EU standards and faster EU integration. The
preparation and subsequent regular updating of the NAD is an integral part of the governments’ efforts to increase the
efficiency and effectiveness of international assistance in delivering necessary reforms by focusing it on priorities defined in
national strategic documents and strengthening institutional ownership. In addition, improvements have been made in: (i)
the coordination of the reform processes: (ii) the better articulation of needs for strengthening the functions of strategic and
operational planning throughout public administration; (iii) and in fulfilling the obligations which Serbia took on by signing the
Paris Declaration34.
The Paris Declaration outlines five principles35 in order to increase effectiveness and efficiency of the international
assistance and to support beneficiary country efforts to strengthen governance and improve development performance. In
order to address the Paris Declaration principles and provide a more comprehensive understanding of how increased aid
effectiveness contributes to meeting development objectives, the government has defined an ‘Aid Effectiveness Agenda36’
which has five specific objectives:
(1) To improve the planning and prioritization process
(2) To better align international assistance with national programmes
(3) To adopt a Sector Approach in the management and coordination of international assistance
(4) To monitor the performance of international assistance
33 (1) Seventh framework programme for research, technological development & demonstration activities; (2) Culture programme 2007-13; (3)
Competitiveness & innovation framework programme; (4) Fiscalis; (5) Customs; (6) PROGRESS (2007-13); (7) Lifelong learning; (8) Safer internet; (9)
Europe for citizens; (10) Tempus /Erasmus Mundus; (11) Youth in action.
34 Paris Declaration on Aid Effectiveness, signed on 2 March 2005
35 Paris Declaration principles are: 1) Ownership; 2) Alignment; 3) Harmonization; 4) Managing for results; 5) Mutual accountability
36 Annex of the NAD (2008-10). Adopted by the Government (2008).
26
(5) To improve the predictability of sector financing
The progress made to date in achieving these goals is reviewed in Table 4 below.
Table 4: Progress Made in Implementation of the Government Aid Effectiveness Agenda
Specific Objectives Progress Achieved

(1) Improvement of the planning SEIO is responsible for preparation of the NADs which are multi annual
process in line ministries and national planning documents defining national priorities for international
overall inter-sector planning and assistance. This document is the fourth consecutive NAD since 2007. Line
prioritization in connection with ministries and other state institutions are actively involved in NAD preparation
international assistance. by providing inputs for the identification of national sector and cross-sector
priorities which can be implemented by international assistance. The NAD
(Indicator 1 of the Paris Declaration37)
2011-13 was partially based on the Sector Approach, the NAD 2014-17 (this
document) is wholly based on the Sector Approach. In addition, line ministries
take an active part in programming of international assistance and the
identification of projects to be financed by it.
The development of administrative capacity in line ministries for strategic
sector planning has been supported by the introduction of Annual Operational
Planning (AOP). AOP introduces functional, objective-oriented, planning which
is linked to the national budget and whose performance is subject to results–
based monitoring/reporting. The aim of AOP is to improve strategy
development and policy coordination at sector and cross-sector level. The
achievement of this aim will allow for the alignment of international assistance
with national planning and monitoring procedures and thereby provide a
sound basis for the further development of the Serbian Sector Approach.
(2) Better alignment of projects and The NADs cover successive 3 year periods and are used as instruments for
programmes financed from streamlining and aligning international assistance with national priorities
international assistance with through comprehensive consultative processes that involve both national and
national priorities international stakeholders (line ministries, local self-government, CSOs, donor
community). For the NAD (2011-13), according to the data entered in the
SEIO database (ISDACON, see Section C) 84.9% and 91.3% of international
assistance interventions in 2011 and 2012 respectively supported NAD
priorities. With respect to indicator 3 of the Paris Declaration, it is important to
note that the NAD corresponds to the donor strategic planning documents e.g.
the MIPD (2011-2013) and the EC Country Strategy Paper (2014-20).
(3) The promotion of international The NAD 2011-13 and NAD 2014 -17 provide a framework for the operation of
cooperation and Sector the Serbian Sector Approach. The drafting of these documents was based on
Approaches for better alignment intensive donor coordination as well as coordination within the government
of donor activities with national and inter/intra-ministerial coordination. To strengthen the capacities of sector
priorities lead ministries for the management of international assistance, the mandate of
the IPA Units in line ministries was increased to include coordination and
management of all donor-funded projects.
Sector Working Groups (SWGs) were established in 2010. The main SWG
tasks are to ensure coordination and cooperation between all the institution(s)
involved in a sector with respect to responsibilities for planning, programming,
monitoring/reporting of international assistance (operational level). The
establishment of SWGs has led to an improvement in the programming of IPA
and in the quality of implementation of national sector policies and strategies.
(4) Introduction of Decentralized After adoption of the Decree on DMS for managing the EU development
Management System (DMS) for assistance funds under IPA42, Serbia started the final stages of establishment
the management of EU funds in of the system. All the required DMS structures and posts have been
order to ensure the channelling established, namely: Competent Accrediting Officer; National IPA Coordinator
37 Countries put in place national development strategies with clear strategic priorities (OWNERSHIP).
38 Donors align their aid with national priorities and provide the information needed for it to be included in national budgets (ALIGNMENT)
39 Co-ordinated programmes aligned with national development strategies provide support for capacity development (ALINGNMENT)
42 Official Gazette of RS No 70/2011and 49/2012
27
Specific Objectives Progress Achieved
of the EC assistance through and NIPAC Technical Secretariat; National Fund; Central Contracting and
national systems for the Financing Unit; Project Implementation Units; National Authorising Officer;
management of public finance Programme Authorising Officer; Senior Programme Officers; CBC Body and
and public procurement. Audit Authority. By submitting the request for conferral of management
powers and by delivering accreditation package for IPA in June 2012, the
(Indicators 5a40 and 5b41 of the Paris
fourth out of five stages for establishing decentralized management of EU
Declaration)
funds has been closed. The last fifth stage, meaning verification and
conferring management powers by EC to manage funds commenced in
November 2012 by intervention of verification auditors of the EC and
continued in spring 2013 on the basis of draft verification audit report. The
estimated time for completion of all stages is six to eight months period. The
conferral of management for IPA funds is expected by the end of 2013. See
Section C.4 (‘Implementation Modalities’).
(5) Improved level of external An ‘Action Plan for Programming and Reporting on EU funds and International
financing predictability, with the Assistance’ is prepared by SEIO. The purpose of this document is to ensure
aim of providing support to line synchronization of international assistance programming and specific donor
ministries in annual planning of timetables with national planning and budgeting processes. It contains data on
activities and budget planning future expected international assistance commitments in total amounts and
per sector. These data are regularly obtained by SEIO from the donor
(Indicator 743 of the Paris Declaration)
community in order to: (i) increase the predictability external financing; (ii)
improve national budget planning and focus available resources /funding (both
national and international) on national priorities. The NAD also provides data
on estimated new commitments of international assistance in the mid-term
perspective (three years), providing a basis for the reliable planning of
activities by the line ministries.
A.5 Sector Approach
As defined in numerous government publications (including the previous NAD), the Sector Approach in Serbia is based on
the application and operation of a programme intervention logic across whole sectors. The adoption of the Sector Approach
in the management of international assistance marks a move away from stand-alone projects addressing separate (albeit
sometimes related) objectives, to a more focussed approach where projects are clustered and sequenced within measures
and have the same objective(s). The two basic pillars of the Serbian Sector Approach are the NAD and the SWGs. As
explained in Section A.1, the NAD is a strategic planning document based on a programme logic which defines concrete
measures for each sector within the context of national priorities for socio-economic development and EU accession. NAD
priorities and measures are prepared by the responsible sector institutions coordinated and led by sector lead ministries
(see below) within a timeframe established by SEIO. The priorities and measures are open to scrutiny by the key donors and
CSOs during preparation and adjusted according to comments /suggestions made by them. This process intrinsically: (i)
ensures transparency and accountability; (ii) leads to donor alignment; and (iii) results in a high degree of institutional
ownership. These are the principle benefits of a Sector Approach and are directly correlated with improved prospects for
future impact and sustainability.
The SWGs are the main mechanisms by which this planning process is managed and coordinated (as explained in Section
C); they were established in 2010 and were actively involved in the preparation of both the current and the previous NAD
(2011-13). This timeframe coincided with the EC’s shift from supporting individual stand-alone projects to a Sector Approach
which was initiated in the last two programming years of IPA1 (2012-2013). The Serbian response in the first year of the IPA
Sector Approach was gradual with some 60% (106 M€) of the national IPA Component I allocation being programmed by
means of Sector Fiches (rather than Project Fiches), this rose to 86% (168 M€) in 2013.
In principle the great majority of assistance under the upcoming IPA-2 Regulation (2014-20) should be delivered via Sector
Approaches. According to the EC Explanatory Memorandum to the draft IPA-2 Regulation44, IPA will be redesigned so that it
has a role in:
40 As their first option, donors use fiduciary systems that already exist in recipient countries (ALINGNMENT).
41 As their first option, donors use procurement systems that already exist in recipient countries (ALINGNMENT).
43 Aid is released according to agreed schedules (ALINGNMENT).
28
‘Reinforcing (co-)financing of agreed sector strategies contributing to the policy objectives, as opposed to
individual projects, thus moving away from purely grant financed projects and increasing the share of assistance
funded through support at sector level’.
With regard to IPA-2, EC judgments of whether beneficiary countries are ready to adopt a Sector Approach will be based on
five criteria which collectively provide an assessment of sector maturity, and these are as follows:
1. Sector definition and quality of national sector policies /strategies;
2. Institutional setting, leadership and capacity for implementation;
3. Sector and donor coordination;
4. Monitoring of sector policy implementation and in particular the development of Performance Assessment Frameworks
(PAFs).
5. Mid-term budgetary perspectives for sector policy implementation based on sector budget analysis and sector
allocations in Mid-Term Expenditure Frameworks (MTEFs)
Few, if any, IPA beneficiary countries are expected to fulfil all five of these criteria at the start of IPA-2 programming in 2014.
In recognition of this DG ELARG current guidance states that this does not prevent the adoption of Sector Approaches in
IPA provided that the first three criteria are fulfilled (these are considered essential) and that there is a government
commitment to establish functional PAFs and MTEFs in the beginning years of sector support programmes 45. In fact, this
situation corresponds to the present stage of development of the Serbian Sector Approach. The current status, and future
development, of the Serbian Sector Approach in relation to the above criteria is briefly described below. More detailed
information on each criterion is given in Sections B and C (as explained below).
Sector Definition
The EC have provided the following guidance on sector definition:

‘A sector should be defined by the government and have relevance for EU accession and/or national socio-
economic development. With regards to accession this means that the sector policy objectives should address
specific political and/or legal and/or administrative reforms that have been identified in past Progress Reports as
being necessary for national compliance with the Copenhagen criteria’.
The nine sectors selected by the Serbian government for the adoption of a Sector Approach are listed in Table 1 (Section
A.1) and are described in Section B of this document. The descriptions given in Section B follow a standard format for each
sector /thematic area, as shown in the Table 5 below. Sectors were selected on the basis that their scope covered policy
reforms of significance for EU accession (as described in Sections B.3 for each sector, ‘EU Agenda’) and was wide enough
(as described in Section B.1, Table 5) to absorb and benefit from the multi-annual sector support programmes envisaged
under IPA-2.
The three thematic areas are also important for national socio-economic development and EU accession, however, it is
judged from their relatively restricted scope that the reform agenda in these thematic areas is better achieved by means of
projects rather than multi-annual programmes. It should be noted that international assistance in these areas will also be
managed under a Sector Approach and projects will not be ‘stand-alone’ but will be implemented within measures as part of
an intervention logic which parallels that of the sectors.
Table 5: Standardised Description of Sectors /Thematic Areas in NAD Section B
Section Title /Content

B.1 Scope and background of the sector
B.2 Strategic framework
B.3 EU Agenda
B.4 Overall objectives and priorities in the sector (2014-20)
B.5 Sector measures for implementation of priorities in the sector
B.6 Institutional framework for implementation of Sector Approach
44 Proposal for a Regulation of the European Parliament and of the Council on the Instrument for Pre-Accession Assistance (IPA II), COM (2011) 838 final
2011/0404 (COD), SEC (2011) 146 final, SEC (2011) 1463 final.
45 Sector Approach in Pre-Accession Assistance. Ref. Ares(2013)65573 – 18/01/2013 Section 2.8 ‘Overall Assessment’.
29
B.7 Indicators for measuring progress
B.8 Aid effectiveness, efficiency and sustainability
In addition, it can be noted that some of horizontal topics such as the use of international assistance to support Serbia’s
accession negotiations and project preparation are presented per sector, while the needs related to them will be
programmed more centrally. NAD covers the needs of the Belgrade-Pristina dialogue. However, since these needs are yet
to be defined they will be treated as unallocated measures and will be programmed centrally.
Sector Strategies
With regard to the implementation of Sector Approaches by means of sector support programmes, EC requirements are that
relevant national strategies, at the sector level, are in place and that they are of good quality.
‘Good quality sector policy documents would be the primary basis for preparing IPA sector support programmes’46.
The nine sectors and three thematic areas that collectively constitute the Serbian Sector Approach are underpinned by
comprehensive strategic frameworks of sector strategies adopted by the government, spanning the entire scope of each
sector /thematic area. The strategic framework described in Section B.2 is based on these national strategies but also
covers Serbia’s commitments to regional and transnational strategies. National sector and sub-sector strategies are listed in
full in Annex 1.
There are currently 106 strategic documents in Serbia relevant to the NAD sectors, of these, 14 cover multiple sectors and
92 are specific to the NAD sectors /thematic areas. It is recognized by the Serbian authorities that not all sector strategies
are of the same quality and that many may need substantial improvement, particularly with regard to administrative
arrangements, institutional responsibilities and timeframes for implementation. SEIO, supported by EU technical
assistance47, is currently undertaking an assessment of the quality of the sector strategies with a view to identifying those
which need improvement or which are redundant. Seven benchmarks for this assessment have been developed and
strategies are expected to meet those benchmarks to be judged as being of acceptable quality. The seven benchmarks are
shown in Table 6, below.
Table 6: Benchmarks for Assessing the Quality of Sector Strategies
Benchmarks Description
Unambiguous The scope of the strategy should be clear whilst describing links to other strategies that are influential or
scope: inter-dependent. The strategy should refer to existing laws, obligations, institutions and stakeholders.
Baseline The strategy should be founded on a solid evidence base, which explains the problems and needs that
analysis: the strategy seeks to address. Quantitative and qualitative information should be combined with informed
interpretation. Statistics should be the most recent available and qualified by definitions and sources.
Trends and patterns should be assessed and placed in the context of wider socio-economic factors.
Long-term Strategies should deal with medium-to-long term planning horizons. The document needs to articulate an
vision and attainable vision of the desired future state in the sector at the end of the period, objectives should focus
objectives: on outcomes for the sector’s beneficiaries
Measure The strategy needs to incorporate: (i) lessons from past practice, including interventions to be built upon
design: and mistakes to be learned from; (ii) comparison of different options for likely costs and consequences;
(iii) analysis of underlying assumptions, pre-conditions and risks affecting the prospects for its measures.
Prioritised Strategies involve difficult choices about resource use and interventions need to be prioritized and
action sequenced in the form of an implementation plan which specifies for each measure, the responsible
planning institution, the timescale, the costs / budget and funding source and indicators.
Monitoring: Achieving expected outcomes means being clear about the direction, the ultimate destination, and
milestones to measure progress. This requires well-designed ‘SMART’ performance /impact indicators for
measure /priority objectives and implementation of a monitoring system to measure them.
Shared Strategies should be widely accepted by policy-makers and affected parties. The aim should be to build a
ownership: consensus around solutions which cut across political boundaries. They should be consulted with
stakeholders from public bodies, socio-economic partners and civil society.
46
DG ELARG, ‘Mapping of Sector Strategies’ June 2013
47 Project Preparation Facility (PPF5)
30
It is necessary for future strategies of the Government to follow these seven referent points and to define in advance if the
document should be issued as a strategy of the Government, action plan or workplan of ministry in certain area.
Institutional Setting and Leadership

Sector institutional frameworks are presented in Section B.6 for each sector /thematic area. The information presented in
these sections is based on the detailed mapping of all institutions involved in sector management on the basis of their legal
mandates and responsibilities for sector policy formulation and implementation. Sections B.6 also show the composition of
the SWGs and identify the lead institution for each sector. Sector lead institutions are responsible for coordinating relevant
institutions in sector policy making, implementation, monitoring and reporting. They work closely with SEIO and lead donors
in coordinating the work of the SWGs. The lead institutions for the NAD sectors are listed below in Table 7. The roles and
responsibilities of sector lead institutions are described in more detail in Section C.3 (‘Sector Lead Institutions’).
Table 7: Lead Institutions for NAD Sectors
NAD Sector Lead Institution

Justice Ministry responsible for Justice
Home Affairs Ministry responsible for Home Affairs
Public Administration Reform Ministry responsible for Public Administration
Competitiveness Ministry responsible for Economy
Energy Ministry responsible for Energy
Environment & Climate Change Ministry responsible for Environmental Protection
Transport Ministry responsible for Transport
Human Resource & Social Development Ministry responsible for Employment
Agriculture & Rural Development Ministry responsible for Agriculture
Sector and Donor Coordination
The SWGs are the main mechanism for both sector and donor coordination. As described above, the internal coordination of
sector institutions is carried out by the sector lead institutions whilst overall coordination is the responsibility of SEIO. SWGs
are well established, official government structures and operate by rules of procedures which have been adopted by
government. They meet on a regular basis at least four times a year but often more frequently, particularly in relation to
specific tasks such as the drafting of the NAD, consultations with donors/CSO representatives, programming of international
assistance. Each SWG is led by a ‘task force’ composed of the lead sector institution, the lead donor and SEIO. The
secretariats for SWGs are provided by SEIO which is responsible for ensuring the efficient functioning and coordination of
their activities. More detailed information on the functioning of SWGs is provided in Section C.2 (‘Sector Coordination’).
In addition to SWGs, regular coordination with the donor community is secured through the Overall Aid Coordination
Meeting. It is a high level forum between SEIO Director and Deputy Director and high-level representatives of the donors
(sometimes includes line ministers) which meets at least once a year with the main purpose to provide a place for a high
level policy dialogue, discussion on international assistance priorities and programming, monitoring implementation at sector
and national level.
Monitoring Performance
The basis for establishing PAFs for each sector /thematic area is given in Section B.7 which defines indicators at the level of
both measures and priorities and formulates seven annual targets for these over the period 2014-20. There is as yet
relatively little experience of performance monitoring in Serbia, this being the first NAD to contain sector targets, and it will
be necessary to review indicators and their targets in the light of practical experience early on in the NAD planning period,
say at the end of 2015. Under present arrangements monitoring data will be sent by the institutions responsible for collecting
them (as indicated in Section B.7) to SEIO. Monitoring data will be analysed and stored in the SEIO database (ISDACON)
and used to compile regular SEIO reports on the use and performance of international assistance.
As explained in Section C.4 (‘Implementation Modalities’), Serbia is in the final stages of establishing structures and
procedures for the decentralized management of IPA financial assistance. It is expected that the EC will grant the conferral
of management under DMS with ex-ante controls for IPA48 Components I and II by the end of 2013. This means that the
48 Under the IPA 2007-13 Regulation
31
monitoring arrangements required for the decentralized management of IPA should be in place and operational by the start
of 2014 i.e. in time to be used for performance monitoring of international assistance over the NAD planning period.
Under the DMS procedures being established in Serbia, monitoring will be carried out by means of Implementation Reports
which are examined by two sorts of Monitoring Committees: (i) an ‘IPA Monitoring Committee49’ (IPA-MC) to oversee the
implementation, progress and performance of all IPA Components under implementation in Serbia; (ii) ‘Sectorial Monitoring
Committees50’ (SMCs) which correspond to the NAD sectors to examine the effectiveness and quality of implementation of
programmes and operations. The IPA-MC meets once a year to examine the reports produced by the SMCs and by the
Sector Coordinator. According to the IPA Regulation the IPA-MC must: ‘satisfy itself as to the overall effectiveness, quality
and coherence of the implementation of all programmes and operations towards meeting the objectives set out in the
financing agreements as well as in the multi-annual indicative planning documents’. The SMCs meet twice a year to
examine reports submitted by the Operating Structures and they report to the IPA-MC on the progress made in
implementing the programmes, by priorities, measures and operations.
Technically these monitoring arrangements only apply to assistance programmed under the IPA (2007-13) Regulation.
However, in order to avoid the potential duplication and inefficiencies of operating parallel monitoring systems, it is likely that
the DMS committees will be used for monitoring all international assistance. In this context it is important to note that under
the existing rules of procedure for SWGs, it is planned that the composition of the SWGs and SMCs will be the same.
Mid-Term Expenditure Frameworks
Whilst Mid-Term Expenditure Frameworks (MTEFs) are part of the existing Fiscal Strategy process they are determined at
the level of budget users and cannot directly be transformed into sector MTEFs. However, as is explained in Section B.3.1
(Scope of the Public Administration Sector) recently adopted legislation requires the merging of strategic planning of public
policies with the budget process within the government and the parliament. This will include mandatory three-year budget
planning and the introduction of programme budgeting by 2015. It is planned that MTEFs for sectors will be developed
alongside programme budgeting. For this to be feasible it will be necessary to ensure correspondence between the budget
programmes and the NAD sectors. Discussions between SEIO and the Ministry of Finance are on-going on this issue with
the expectation of establishing sector-MTEFs by the end of the NAD planning period i.e. by 2016-17.
49 IPA Implementing Regulation (Article 58)

50 IPA Implementing Regulation (Article 59)
32
SECTION B: SECTORS AND THEMES
B1 JUSTICE SECTOR
B1.1. Scope and background of the sector
The Justice Sector encompasses judiciary, prevention and fight against corruption, support to protection of human
and minority rights.
Reform of the judiciary in the Republic of Serbia has begun in 2006 by adoption of the National Judicial Reform Strategy in
which key principles and objectives of the reform were defined, accompanied with and further reform of the penal system,
based on the Penal Reform Strategy. According to the assessment off fulfilment of measures from this Strategy,51 and
results in the establishment of a legal and institutional framework are largely achieved. However, judicial network,
reappointment of judges and prosecutors, capacities of the key stakeholders, procedural laws, prosecutorial investigation,
availability of legislation and case-law have only been partially addressed. It was predicted that new court and prosecutorial
network established on January 1, 2010, and conducted process of re-election of judges and public prosecutors from the
end of 2009 should have lead to: reduced backlog of cases, shorter duration of court procedures and lower budgetary
expenditure. These predictions were not fully fulfilled and further improvement and reform activities are required. Redesign
of the network of courts and public prosecutions followed by need for better access to justice and improved rationalisation is
on-going requiring further assistance in completion of tailoring the Serbian judicial system. Furthermore, it is envisaged to
introduce new judicial professions (such as Public Notaries and Private Enforcement Agents/ Bailiffs) to the Serbian legal
system in order to raise legal certainty and improve overall efficiency of the entire judicial system.
After the completion of the previous phase of the reform of the judiciary further improvement of legal framework,
institutional and professional capacities of newly established institutions proved as key impediment for further development
of democracy and rule of law concept. Related to the independence of the judiciary, High Judicial Council and the State
Prosecutorial Council took over competences for the administration of the budget of courts/public prosecution offices from 1
January 2012. Constitutional Court of Serbia during 2012 by its rulings revoked all the decisions taken by the High Judicial
Council and the State Prosecutorial Council of non-reappointment challenged by the judges and prosecutors removed from
tenure in 2009 in line with the re-election process and returning their previous status. Judicial Academy, effective from
January 2010, continued with regular activities in organization of training programmes tackling basic and actual themes in
areas related to judiciary fight against organized crime and corruption, as well as protection of human and minority rights,
enrolling third generation of new candidates for judicial officials 2012.
With regards to the efficiency of the judicial system, procedural laws were improved, but Serbia is still facing a great
number of backlogs and as addressed in latest EC Progress Report 52 and in recommendations of the Venice
Commission53,54 constitutional changes and further actions need to be adopted to reduce the growing backlog. In 2012 the
Chamber of bailiffs was established and full implementation of public notaries is envisaged for September 2014. Further
comprehensive implementation actions are necessary to ensure the successful introduction of these professions. According
to the statistical data of the Supreme Court of Cassation55, in 2012 all courts of the Republic of Serbia counted a total
number of 5.315.547 cases in process, received 1.969.270 cases, resolved 2.156.958 cases. Altogether 3.158.40056 cases
remained unresolved. Due to measures undertaken to address courts caseload, the data shows that courts overcame the
inflow and they even have resolved more cases than the number of received. In 2012 all courts received 11,55% less cases
then in 2011 and despite the fact that at the end of the reporting period they had 5,48% less cases than in 2011, compared
to the total number of cases in work, courts have resolved 40.58% of cases, which requires further attention and support of
coherent judicial network. A system of professional evaluation, effective disciplinary rules and stronger integrity safeguards
are recognized as crucial for further improvement of judiciary efficiency. In terms of quality of justice, the HJC and the SPC
have not yet adopted rules on regular evaluation of the work and performance of serving judges and prosecutors. The
51 Report of the Council of Europe Project “Support to the reform of the judiciary in Serbia in the light of Council of Europe standards”, as well as Reports of
the European Commission on Serbia's progress for 2007, 2008, 2009, 2010, 2011 and the Analytical Report accompanying the document Communication
from the Commission to the European Parliament and the Council with the Commission Opinion on Serbia's application for membership in the European
Union from October 2011.
52Serbia Progress Report 2012 accompanying, Com. Enlargement Strategy and Main Challenges 2012-2013 European Commission {COM(2012) 600 final
53 OPINION ON DRAFT AMENDMENTS TO LAWS ON THE JUDICIARY OF SERBIA No 709/2013, Venice Commission, Council of Europe, Strasbourg
CDL-AD(2013)005
54European Commission for Democracy through Law (Venice Commission), Opinion on the Constitution of Serbia, adopted by the Commission at its 70th
plenary session (Venice, 17-18 March 2007)

55Supreme Court of Cassation – Analyses of the work of all courts in the Republic of Serbia (January 1 – December 31, 2012), http://www.vk.sud.rs/
56Higher Court in Zajecar did not show 189 cases as unresolved at the end of the reporting period, and related to this figure the number of unresolved
cases is changed in the total result of higher courts and total result in all courts
33
foreseen evaluation of the magistrates newly recruited in 2009 for a three year term is in particular pending. The need for
further development of “a proper merit-based career system for judges and prosecutors.57” has been acknowledged by EC
Report 2012 and EU Joint Report on Serbia’s achievements towards accession 58. Judicial Academy is conducting initial and
continuous training for judicial officials and candidates for judicial officials, extending the network of lectures and mentors,
improving its curricula by evaluation of its trainings, technical equipping of its premises, strengthening of cooperation with
national and foreign institutions and organizations. Administration for execution of criminal sanctions continuously
implements activities related to the capacity expansion and overcrowding of prison facilities, which has been reduced for
approximately 10% in 2012 with a construction of the new prison facility. Alternative dispute resolution remain low in
implementation and the new law on Mediation is envisaged to be adopted by the end of 2013, in order to define procedure
of standardization and accreditation of basic and specialized training programmes of mediators and promote the system of
mediation.
Serbia has established the relevant institutional and legal framework to fight against corruption. Anti-Corruption Agency is
mainly focusing on prevention, while investigating and processing of corruption cases requires improved coordination among
institutions with special attention to the Public Prosecution Office. According to the data available from the Report on policy
on preventing and fighting corruption59 related to the control of declarations of assets, the Anti-Corruption Agency has
performed 192 controls in 2010, 513 in 2011, and 486 in 2012. In 2013 as, a result of asset control, the Agency had, by
September 2013 initiated 283 procedures and filed seven charges60. With regards to control of financing of political parties,
the Agency filed 39 charges for non-submission of reports on electoral campaigns and 78 misdemeanour charges.
Regarding control of electoral campaign financing, the Agency had filed 176 requests for initiation of offence proceedings by
30 April 2013. In 2013 the Agency received 877 cases regarding only conflict of interests, which matches the total number of
cases in 2012. 160 proceedings have been initiated ex officio, which equals sum of these proceedings in 2011 and 2012.
135 proceedings have been initiated based on reports, which is only 12 less than the number of proceedings based on the
same grounds in 2011 and 2012. In order to help public entities to design correctly integrity plans, the Agency has drafted
69 types of integrity plans and have provided full access to them to 4500 institutions. In 2012, the Prosecutor’s Office for
Organized Crime, filed reports against 139 persons, initiated investigation s against 136 persons, indictments raised against
81 persons for criminal offences including abuse of office, taking bribe and giving bribe – cases of high level corruption. For
the same period and same criminal offences against 55 persons judgments were reached. 61 The special prosecutor for
corruption and organised crime launched investigations into 115 corruption cases in 2011. These included several medium-
to high-level cases. There has been a marked increase in the number of lower-level corruption cases for which the
prosecutor’s offices initiated investigations in 2011, but in the great majority of such cases sanctions remained lenient.
Serbia shows its commitments for fight against corruption by encompassing more proactive approach to investigating and
prosecuting corruption and the judiciary needs to gradually build up a solid track record of convictions, including in high-level
cases, particularly in cases of misuse of public funds.
Ministry responsible for the judiciary with all relevant stakeholders has prepared a new National Anti-corruption Strategy62
aiming at improving anti-corruption policy on horizontal level for the period 2013-2018 along with the implementation of
GRECO recommendations coupled with the findings of the on-going - and soon to be completed – review of Serbia in the
context of the UNCAC Review of Implementation Mechanism. The Strategy takes into account both substantive and
procedural aspects of the domestic legislation and policies. Anti-Corruption Agency increased its activities with focus on
prevention and started to implement the Law on the Financing Political Activities. Prosecutor's Office for Organized Crime
acted upon the new competences related to criminal offences of high and severe corruption. Nevertheless, available data
show that corruption in Serbia is still widespread and a survey conducted by the UN Office for Drugs and Crime (UNODC)
in July 201163 showed that it is still high perceptions of corruption and political influence in Serbian society. Moreover, in
2012 the Anti-Corruption Agency conducted research, supported through IPA 2008 and it showed that 18 % of Serbia's
57 EC Progress Report 2012 , COM

58 JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on Serbia's progress in achieving the necessary degree of compliance with
the membership criteria and notably the key priority of taking steps towards a visible and sustainable improvement of relations with Kosovo, European
Commission, JOIN(2013),22.04.2013
59Report on policy on preventing and fighting corruption, result of the assessment mission conducted in Serbia between March 4th and March 8th, 2013,
prepared by Laura Stefan

60 In these proceedings, the Agency passed the following: 14 warning measures for restraining from transfer of rights on authority when on public duty by
legal deadline (Article 35); Two warning measures for not informing the Agency on public procurement by legal deadline (Article 36); 23 warning measures
against authority in body where officer is on public duty for not informing the Agency duly when an officer assumed or left the office (Article 43, Paragraph
1); 145 warning measures (Article 43, Paragraph 2); 16 warning measures upon leaving the office (Article 43, Paragraph 4) and 4 measures of
recommendation for dismissal for restraining from transfer of rights on authority when in public office even when the warning measure had been passed
(Article 45); The Agency pressed four new charges based on reasonable doubt that the officer had not declared his/her assets to the Agency or gave false
information on assets in order to hide true information (Article 72). By June 2013 the Agency had also submitted three charges to Anti-Corruption
department of Public Prosecutor’s Office of the Republic of Serbia, in Belgrade. Seven reports based on reasonable doubt that other officers whose assets
had been checked, had done other offences provided by criminal Law or other regulations were submitted to the Public Prosecutor’s Office of the Republic
of Serbia, and other bodies of authority.
61 Analytical report on statistics of high profile corruption , Prosecutor’s office for organized crime, Belgrade, March 8th 2013
62 Adopted by the National Assembly of the Republic of Serbia on July 1, 2013
63Corruption in Serbia: Bribery as Experienced by the Population, UNODC and the Serbian Statistical Office, Vienna, Belgrade, 2011.
34
population was detected in participating in corruption, i.e. in bribe giving in the 2011. According to an analysis of crimes
containing an element of corruption committed in the territory of the Republic of Serbia (by the Serbian Ministry in charge
for home affairs), the number of detected criminal offences with the element of corruption had constantly risen over the last
several years. In 2011 a total of 3792 offenses with corruption element were revealed, this figure is 38% higher than in the
six year period 2000-2005 (2,748).Abuse of office (1,699) constitutes the largest number of corruption offences. The number
of detected criminal offenses of bribery was 152 and a total of 3369 persons were reported. Two organized crime groups
with a total of 42 members formed with the aim of corrupt activity were detected. A number of investigations have been
launched, including into high level corruption, in part on the basis of the problematic privatisations cases identified in the
past by the Anti-Corruption Council. In the recent European Commission Joint Report it was noted that, “...Serbia's track
record in effectively investigating, prosecuting and convicting perpetrators of corruption and organised crime needs to be
further improved, and additional human and financial resources made available, including in the fields of witness protection,
financial intelligence and the special prosecution for organised crime”64.
Protection and promotion of human and minority rights have been advanced through the development of national
strategies and legislation; the establishment of institutions monitoring the enforcement of anti-discrimination and equality
laws and bylaws and strengthening institutional capacities. The legislative and institutional framework for the observance of
human rights is in place and awareness raising activities targeting civic society and promoting tolerance, anti-discrimination
and respect for human rights were carried out. Anti-discrimination laws are mainly in line with EU standards, though further
harmonization with the acquis is required especially in terms of equal treatment and accommodation of PwD. Overall, the
implementation of the existing legal and strategic framework needs to be strengthened. Findings from the EC Progress
Report in 2012 point out to challenges in civil, political, social, economic and cultural rights. Poor living conditions and ill-
treatment of persons deprived of their liberty (for example in mental health institutions, social care centres and police
stations) have been identified and reported. The rights of children and youth from vulnerable groups are unevenly protected
and inclusive education is still not fully developed. The groups most discriminated against are the Roma, persons with
disabilities and LGBT.
Improving status of minorities and protection of human and civil rights largely encompass: legal aid and capacity
building of Roma groups CS and institutions; action plans for the improvement of the status of Roma; assistance to the
increase of minority participation in decision-making and in socio-economic processes; strengthening of employability and
employment of vulnerable groups also through social economy. Namely, achievements are achieved through: Three-year
programme for implementation of the Strategy for Improvement of the Status of Roma in the Republic of Serbia
implemented in cooperation with OSCE mission in Serbia with financial support from the Swiss Agency for Development and
Cooperation; Implementation of the Strategy for Improvement of the Status of Roma in the Republic of Serbia – IPA 2012
Component V; “Implementation of Anti-discriminatory Policies – IPA 2011” implemented from November 2012 to November
2014 in the Office for Human and Minority Rights and the Office of Commissioner for the Protection of Equality; Drafting of
the Anti-Discrimination Strategy supported by the project financed by the governments of Great Britain; Council of Europe
“Fight against Discrimination based on sexual orientation and gender identity” together with Albany, Italy, Latvia,
Montenegro, Poland. “Internship for Young – members of national minorities in state institutions in the Republic of Serbia”.
Constitutional guarantees of access to justice are in place but legislation and funding for an effective system of free legal
aid still need to be developed.
EC Progress Report 2012 concludes that “There has been little progress regarding the judiciary and fundamental rights”. EC
Progress Report highlights following shortcomings: the review of reappointments of judges and prosecutors, need for new
strategy for judicial reform, pending issues regarding a new Anti-Corruption Strategy and Action Plan, need for stronger
political direction, more effective inter-agency coordination and a proactive approach in investigating and prosecuting
corruption. Implementation of the legal framework to fight corruption has continued. Regarding fundamental rights it is stated
that the legislation is in place and freedom of expression is in general guaranteed. Highlighted shortcomings are as follows:
implementation of the media strategy, need for development of further measures to fight all forms of discrimination, need for
proactive approach towards better inclusion of the LGBT population and a greater understanding across society, need for
additional efforts in order to improve the situation of minorities, including the Roma, although some positive steps were
already undertaken. Regarding alignment with the acquis in the area of the judiciary and fundamental rights Serbia has
started to address its priorities, while Ombudsman insufficient capacities are also noted in EC Progress report 2012.65
64 JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on Serbia's progress in achieving the necessary degree of compliance with
the membership criteria and notably the key priority of taking steps towards a visible and sustainable improvement of relations with Kosovo, European
Commission, JOIN(2013),22.04.2013
65
The Ombudsman’s Offices continued to be effective and have increased their accessibility. The term of office of the State Ombudsman was renewed by
Parliament in August 2012. The number of citizens’ complaints has increased. The largest number of reported violations relates to governance. Changes to
the Law on the Ombudsman, which should enhance the Ombudsman’s independence, still have not been adopted. After adopting necessary legislative
amendments, further strengthening of this institution will aim at improvement of the protection of human and minority rights
35
B1.2. Strategic framework
National Strategic Framework
Based on the main strategic documents for the sector, which are presented in Annex1, sector and SWOT analysis, the
following priorities for the sector have been identified:
(i) Independence of the judiciary - work of judicial institutions and judicial office holders is free of any undue/prohibited
interference or pressures that might obstruct the course of justice, regardless of its source. Particular attention shall be paid
to: transparent and independent functioning, in full capacity of independent judicial bodies with strengthened analytical
capacities for strategic planning, full independence and transparency of judiciary related to budgetary powers, process of
election, promotion, and responsibility of judicial office holders based on clear, objective, transparent and predetermined
criteria, introduction of career system for judicial office holders
(ii) Impartiality and quality of justice - with regulations that are clear, conceivable, precise, easily accessible and
harmonised both mutually and with the EU Acquis and international case law and with uniform and accessible case law. A
judicial system ensuring equal treatment and access to justice to each individual under equal conditions, free of
discrimination on any grounds, as well as equal opportunities to protect and exercise their rights and interests. Particular
attention shall be paid to: standards of professional ethics and integrity of the judiciary, transparent measures for prevention
of conflict of interest, improvement of the access to justice, uniformity of case law with the aim to improve predictability of the
judicial system, improve access to justice for citizens - appropriate access to court records and proceedings, enhanced
public outreach and participation.
(iii) Competence - A judicial system providing comprehensive/organised in-service training and education, enabling judicial
office holders and judicial and prosecutorial assistants and trainees to acquire and upgrade their theoretical and practical
knowledge and skills. Judicial official holders and staff as well as members of other judicial professions will perform their
duties professionally/ competently/ responsibly, bringing quality decisions within the reasonable time and establishing pro-
active and transparent communication channels with citizens, which will gradually lead toward raising public trust in the
judiciary. Particular attention shall be paid to improvement of the initial training in the Judicial Academy and increasing its
importance in the process of election for the judicial office holders until its establishment as a mandatory condition for first
election of the judicial office holder and strengthening the capacities of the Judicial Academy aimed at full integration of its
activities in the judicial system
(iv) Accountability of the judicial system - with an accountability mechanism applicable to judicial institutions and criteria
of accountability of judicial official holders for quality, equity, performance with the allocated public funds. Objective and pre-
determined criteria for performance appraisal and promotion of judicial office holders, clear and transparent rules on
disciplinary responsibility and ethical principles, enable judicial office holders to primarily get acquainted with standards they
must fulfil regarding results of the performance appraisal, ethics and discipline. Professional IT case management system
enables efficient and timely monitoring of each phase of the proceedings. Collection and merging of data on all court cases
is also performed through this system, thus providing important information for management and evaluation of the judicial
system performances.
(v) Efficiency of the judicial system - characterised by effective management and rational use of resources, the
processing of cases within reasonable deadlines in proceedings compliant with law, respecting human rights and freedoms
guaranteed by both national and international instruments. Establishment of an effective and efficient network of courts and
prosecutors’ offices and improvement of internal procedures of work with enhancement of the infrastructure will enable
meeting the needs of the justice system. Establishment of e-justice represent a new concept that refers to the method of
adequate judicial system functioning, in which all information and services are in line with regulations, available to all
stakeholders according to their level of authorization in the virtual manner in electronic format, with an exception of some
services and information that may be exempt from this rule with grounded justification. Concerning the improvement of
judicial efficiency, it is important to further strengthen legal profession of public notaries that will lead to enhancing legal
certainty and to establish an effective and sustainable system for enforcement of the court decisions. Since efficiency of
judicial system does not depend solely on internal organization, but also on the established mechanisms of international
judicial cooperation it is necessary to further develop international judicial cooperation. Further development of the system
for execution of criminal sanctions is in line with particular attention paid to further development and widely
implementation of alternative sanctions and increased needs in the system of execution of alternative measures and
sanctions, introduction of new ways of alternative sanctions, training for judicial function holders, probation officers, police
officers, etc., and introduction of the new ICT.
(vi) Improved anticorruption policy - in accordance with the general principles: the principle of the rule of law, principle of
“zero tolerance” for corruption, principle of accountability, principle of universality of implementation of measures and
cooperation of entities as a duty to implement measures comprehensively and consistently in all fields, and in cooperation,
principle of efficiency and principle of transparency as a guarantee of publicity in the process of adoption and
36
implementation of decisions, as well as enabling citizens to access information, in accordance with the law. The fields of
priority actions are identified on the basis of the qualitative and quantitative analysis of indicators of trends, scope, forms and
other issues related to corruption and they are: political activities, public finance, privatization and public-private partnership,
judiciary, police, spatial planning and construction, health care system, education, sport and media. Particular attention shall
be paid to: effective horizontal and vertical cooperation and the exchange of information among the police, prosecutors,
judiciary, other state authorities and institutions, control and supervising bodies, and EU and international institutions and
organisations, establishment of uniform records (database) for criminal offences with corruption element, protection of
whistleblowers, application of proactive approaches to investigation in the cases of criminal events related to corruption, with
the developed capacity for implementation of financial investigations, including anti-corruption policies on public spending
and privatization, public enterprises, healthcare, urban and spatial planning and political corruption.
(vii) Effective Human Rights protection and promotion-Priority areas in H&MRs remain in the field of promotion of
antidiscrimination and minority protection. A comprehensive Strategy on fighting discrimination for the period 2013-2018 is
being prepared and actively consulted with stakeholders. Amongst others, priorities to be addressed by the Strategy will
include continuing efforts initiated by the Commissioner for protection of Equality : prevention of on-the-job discrimination
with monitoring and enforcement mechanisms; protection of the rights of Lesbian, Gay, Bisexual and Transsexual (LGBT)
population; continuous awareness raising of civic sector stakeholders against all forms of discrimination, violence and
violations of human rights. Attention will also be paid to the identification, punishment, elimination and prevention of “hate”
crimes motivated on grounds such as ethnic origin, religion or sexual orientation. Partnerships with all sectors of society is
sought for both anti-discriminatory and minority protection measures. In addition, participation of local communities and
minority and vulnerable groups is also of focal importance. Further development of the system for execution of criminal
sanctions aiming with continuous improvement of conditions in which the sanctions are carried out with modern advances
in the treatment of convicted persons shall lead to their successful reintegration into the society and reduction of recidivism,
further development of the post penal care of convicted persons.
The current sector strategic framework and the new National Judicial Reform Strategy 2013-201866 (with references to the
drafting of the ICT strategy and the Strategy for the Development of the System for Execution of Criminal Sanctions) and the
new National Anti-Corruption Strategy 2013-2018 are based on above mentioned principles and priorities and on the EU
policy framework. The challenge in achieving these national priorities is that they will require the integration of a wide range
of actions across the whole sector.
In order to support national strategic objectives presented above and to focus international assistance on the most pressing
issues, the NAD sets out two following priorities:
NAD Priority 1: Improved judicial system, legal certainty and fight against corruption are considered as horizontal and
contribute to all the Sector priorities listed above.
NAD Priority 2: Improved protection of human and minority rights in Serbia contributes to the priority (vii).
Regional and Transnational Strategies
The EU Strategy for Danube Region is closely related to Serbia’s national priorities and addresses a wide range of issues
and proposed areas of cooperation that are divided among 4 pillars, of which the pillar “Strengthening the Danube Region”
corresponds most closely to the NAD sector ‘Justice’. Priority areas relevant for the sector are:
 “To step up institutional capacity and cooperation”, and
 “To work together to promote security and tackle organised and serious crime”.
Security and rule of law, providing register within the framework of River information services in order to combat smuggling
and illegal trade67.
EU documents and international agreements related to the sector
The European Partnership with Serbia from 18 February 2008 (2008/213/EC) aims to “support the efforts of Serbia to
strengthen democracy and the rule of law (article 1)”. Also, it sets out a number of short and medium term priorities,
including key priorities - improving the functioning of the judiciary, guarantee its independence, accountability,
professionalism and efficiency and ensure that the career development and recruitment of judges and prosecutors are
based on technical and professional criteria and free from political influence; step up the fight against corruption at all levels
and regarding human rights and protection of minorities - fulfil all obligations arising out of membership of the Council of
Europe. The Stabilization and Association Agreement (Title I, General principles, Article 2) specifies “Respect for the
Adopted by the National Assembly of the Republic of Serbia on July 1, 2013.

66
67IV
pillar „ Establishment of a safe transport system and affirmation of the rule of law principles along the entire Danube River Basin, ” PARTICIPATION
OF THE REPUBLIC OF SERBIA IN THE DEVELOPMENT OF AN OVERALL EUROPEAN UNION STRATEGY FOR THE DANUBE REGION, adopted by
Government of Republic of Serbia, Decision of 10 June 2010
37
democratic principles and human rights as proclaimed in the Universal Declaration of Human Rights and as defined in the
Convention for the Protection of Human Rights and Fundamental Freedoms, in the Helsinki Final Act and the Charter of
Paris for a New Europe”. Also, SAA (Title VII, Justice, Freedom and Security, Article 80 – Reinforcement of institutions and
rule of law) stipulates that “the Parties shall attach particular importance to the consolidation of the rule of law, and the
reinforcement of institutions at all levels in the areas of administration in general and law enforcement and the administration
of justice in particular. Cooperation shall notably aim at strengthening the independence of the judiciary and improving its
efficiency, improving the functioning of the police and other law enforcement bodies, providing adequate training and fighting
corruption and organised crime”. Serbia is signatory to numerous international and regional conventions having its relevance
for strengthening of the judiciary, human rights protection and prevention mechanisms, impacting anti-corruption policies. In
terms of judiciary, Serbia follows UN and Council of Europe Conventions and Recommendations 68 particularly CEPEJ
conclusions in evaluation reports on judicial systems in Europe and complies with its findings aligning with European
standards in terms of integrity, efficiency and quality of justice.
B1.3. EU Agenda
Europe 2020 sets out a strategy for smart, sustainable and inclusive growth. The relevant flag ship initiative is the European
Platform against Poverty and Social Exclusion stressing the need to closely integrate social inclusion and antidiscrimination,
and is addressing, among other issues, upholding human rights and antidiscrimination policy, especially regarding gender
equality, Roma population, and people with disability and with mental health problems. Other relevant policies are EU
Framework for National Roma Integration Strategies up to 2020, Strategy for Equality Between Women and Man (2010 –
2015), European Disability Strategy 2010-2020. The EU’s justice, fundamental rights, citizenship and equality policies are
based on the EU’s fundamental values and principles, such as democracy, freedom, tolerance, non-discrimination and the
rule of law. The fundamental document is the European Convention on Human Rights and Fundamental Freedoms and
related resolutions and recommendations. Also, well-functioning area of justice, where obstacles in cross border judicial
proceedings and access to justice in cross-border situations are eliminated, should be developed as a key element to
support and promote the specific objectives and flagship initiatives of the Europe 2020 Strategy.
Link with NPAA:
23. Judiciary and Fundamental Rights
The establishment of an independent, reliable and efficient judiciary is of paramount importance and it is recognized
within the EU acquis. It notably requires sufficient human resources and qualified staff, adequate and modern equipment,
acceleration of court proceedings, reduction of the number of pending cases so as to avoid unreasonable delays, measures,
institutions and capacities to ensure the enforcement of judgments, and procedures to ensure ethical conduct by the
judiciary and the effective access to justice. By strengthening European Judicial Area, EU among other objectives aims at
protection of licit economy from organised crime by strengthening the effectiveness of the recovery of criminal assets in the
EU. Progress in this area contributes to achieving the Europe 2020 strategy objectives and Justice for Growth policy was
adopted by introducing scoreboard for measuring the performance of national judicial system of Member State and its
impact on economic growth and economic policies. With the Stockholm Programme(2010-201469), and the proposal for
new Regulation on Justice Programme for 2014-2020, the EU reaffirmed its commitment to securing justice systems within
its MS 70, protection of citizen rights by ensuring correct, coherent and consistent application of Union law across the Union.
The Copenhagen political criteria established by European Council in 1993 and the new approach introduced by European
Council 2011 European Council as regards the chapters on judiciary and fundamental rights and justice, freedom and
security have reaffirmed the significant role of the judicial policies for EU accession.
Serbia has reiterated its efforts to strengthen the independence, transparency, responsibility and improvement of the
efficiency of judicial system. The significance of the regional initiatives proved as key factor in achieving the objectives and
priorities in this sector and it will lead towards active participation in existing initiatives, such as Regional Anti-Corruption
Initiative, as well initiating EU modelled initiatives(establishing Regional Arrest Warrant) aiming at the improved judicial
cooperation.
The JHA Council’s approval (14 April 2005) of the Commission’s Communication on Comprehensive EU Policy against
Corruption (Brussels, 28.5.2003 COM (2003) 317final) encompassed 10 Principles for Improving the Fight against
Corruption in Acceding, Candidate and Other Third Countries. The combating corruption measures in the EU member states
68 Recommendation CM/Rec. (2010)12 of the Committee of Ministers to member states on judges: independence, efficiency and responsibilities, adopted
by the Committee of Ministers on 17 November 2010 at the 1098th meeting of the Ministers' Deputies.
69Stockholm Programme 2010-2014, (2010/C 115/01)
70 “The EU Justice Scoreboard A tool to promote effective justice and growth”, Communication from the Commission to the European Parliament, the
Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions COM(2013) 160 final
38
are incorporated in the Stockholm Programme71, Council of Europe Criminal Law Convention on Corruption, its
additional Protocol, the Civil Law Convention on Corruption, the United Nations Convention against
Corruption (approved by the EU in 2008).. The most inclusive existing instrument relevant for the EU is Council of Europe
Group of States against Corruption (GRECO) .As a member of GRECO Committee of the Council of Europe, Serbia
harmonised its legislation with the GRECO member states with the Criminal Law Convention on Corruption its additional
Protocol, the Civil Law Convention on Corruption and the field of funding of political parties.
According to Article 21 of the Charter of Fundamental Rights of the EU, members of national minorities shall not be
discriminated against. Article 1 of the Framework Convention for the Protection of National Minorities confirms that
human rights include minority rights. The latter include the right to non-discrimination of a person belonging to a national
minority; the freedom of association, to assembly, of expression; the freedom of religion; the right to use one's language;
and the effective participation in public affairs. Measures against racism and xenophobia cover areas such as anti-Semitism,
Islam phobia, anti-Roma. The importance of preventing and combating these phenomena is stressed in Article 2 of the
Treaty on European Union. After the entry into force of the Lisbon Treaty, the rapid accession of the Union to the
European Convention for the Protection of Human Rights and Fundamental Freedoms is of key importance. This will
reinforce the obligation of the Union, including its institutions, to ensure that in all its areas of activity, fundamental rights and
freedom are actively promoted. The case-law of the Court of Justice of the European Union and the European Court of
Human Rights will be able to continue to develop in step, reinforcing the creation of a uniform European fundamental and
human rights system based on the European Convention and those set out in the Charter of Fundamental Rights of the
European Union. European Prison Rules and Recommendations have been followed the reform of the penitentiary system,
including the Recommendation on the European Prison Rules72 and shall refer on new Recommendation on the European
Code of Ethics for Prison Staff73. According to the NPAA, the Republic of Serbia is expected to fulfil expectations (measures)
in the upcoming period 2014-2016 related to adoption and submission of national reports on implementation of international
agreements in the field of human and minority rights. In that regard, Serbia has adopted measures pursuant to the priorities
defined in the NPAA and harmonised with the European Convention on Human Rights and Fundamental Freedoms with the
Protocols, Charter of Fundamental Rights of the European Union, UN Convention on the Elimination of All Forms of Racial
Discrimination (CERD), European Convention for the Prevention of Torture and Inhuman or Degrading Treatment or
Punishment, UN Declaration on the Elimination of Violence against Women.
24. Chapter Justice, freedom and security
Judicial cooperation within European Area of Justice continues to reinforce appropriate structures for co-operation among
Member States on the basis of EU instrument, such as revision of the Brussels I Regulation and the proposed Regulation on
cross-border debt recovery, which will contribute to reducing costs for businesses in line with the objectives of the Europe
2020 flagship initiative and the international and regional conventions on judicial co-operation in criminal and civil matters
included in the acquis, such as European Convention on Mutual Assistance in Criminal Matters and its Protocols, including
further progress in the direct transmission of requests, the appointment of contact authorities, administrative offences,
spontaneous information, requests for extradition, recognition and enforcement of civil judgements, and the transfer and
enforcement of criminal judgements.
The NPAA priorities set out under Chapters 23 and 24 contain Serbia efforts to complete approximation of legislation in the
judiciary sector with international and European standards and improve the work of judicial bodies in terms of the
strengthening the independence, impartiality, professionalism and efficiency of judicial system, all activities for the purpose
of achieving the overall goal - establishing democracy and rule of law, enhanced anti-corruption policy and reaffirmed
promotion and protection of fundamental rights.
The EU priorities for IPA II will be defined in the Common Strategic Framework (CSF) aiming at better alignment of financial
assistance with EU enlargement policy. The priorities for individual countries will be identified in the Country Strategy Paper
(CSP) prepared by the European Commission and the basis for will be NAD and relevant national sector strategies.
B1.4. Overall objectives and priorities in the sector (2014-2020)
The SWOT analysis of the Justice sector has been undertaken additional to the situation analysis presented in previous
sections, to set out the long term objectives and medium term strategic priorities and realistic and targeted measures
Strengths Weaknesses
72Recommendation Rec(2006)2of the Committee of Ministers to member states on the European Prison Rules
73Recommendation CM/Rec(2012)5 of the Committee of Ministers to member State son the European Code of Ethics for Prison Staff
39
 National and EU approximation strategies and other  Lack of clear, coherent and stable institutional framework,
policy documents in place
 Unsatisfactory results of the re-election of judicial officials
 Most of EU legal requirements addressed by country lowering the public trust
policy documents
 Lack of systematic planning documents and identified
 Coordination mechanisms established for Chapter 23 policies
and Chapter 24
 Lack of institutional capacity
 Existence of the new National Strategy on judicial
reform  Heavy administrative burden on judges reducing efficiency
and lowering morale in the judiciary ranks
 Existence of the new Strategy on combating
corruption  Relevant laws not in place
 Existence of the new draft Strategy of the Reform of  Increasing overall case backlog
Penitentiary System in Serbia  Increasing number of the ECtHR applications on Serbia
 Existence on implemented and updated strategies on  Increasing ECHR violations under right to fair trail and non-
protection and promotion of human and minority rights enforcement of the court decisions
 Insufficient capacities of the newly established institutions
(HJC and SPC)
 Insufficient capacities of the institutions for protection and
promotion of Human and Minority rights
 Insufficient reducing of the over-crowding of prison facilities
 Inadequate court and prosecution infrastructure and working
facilities
 Unsustainability of the reform projects due to insufficient
public funds available
Opportunities Threats
 Improve the public confidence in judiciary  Unclear organizational structure and competences of the
relevant stakeholders
 Strengthen the business environment
 Slowdown in EU approximation process
 An acceleration of the EU accession process
 Lack of coordination and capacities of the administration
 Availability of financing from EU and bilateral funds responsible for the sector of justice
 Promotion of clear impacts of justice sector on  Lack of impetus for reform due to insufficient reform results
economic development of Serbia undertaken during previous programming period
 Horizontal impact on all NAD sectors by providing  Economic recession and budgetary cutbacks
efficient judicial protection
To reflect the above and guide assistance programming the overall objective is formulated as follows: Independent,
impartial, accessible and efficient judiciary guaranteeing rule of law, human rights protection and promotion, as
well as quality of justice.
The implementation of the above objective requires that available resources should be concentrated on measures directed
to reaffirm country's commitment towards building public confidence in judicial system, EU aspiration respecting obligations
arising from international agreements and conventions, as well as strengthen country’s competitiveness. Necessary
measures need to provide further development and strengthening of institutions in order to create a judicial system capable
for protecting human rights.
Priority 1- Improving judicial system, legal certainty and fight against corruption
Overall, relevant legal framework that accompanies and elaborates constitutional arrangements in relation to the provisions
on the judicial system was introduced and strategic reforms were conducted towards further strengthening of legal certainty
and predictability, taking into consideration relevant international standards. Reforms in this sector were directed towards
establishment of independent institutions and relevant control bodies. According to the EC Progress Report for 2012, the
number of laws came into force aimed at improving the efficiency of the judiciary and applying international standards in
40
national courts and some progress was made, but mostly in enforcing new legislation aimed at improving the efficiency of
the judicial system. Continuation of these activities, improvement of the adopted legal framework, institutional and
professional capacity building of newly formed institutions, as well as alignment of the process with the European integration
processes remain to be done. Also, rational organization of judicial network is prerequisite for the effective prosecution and
adjudication. Effective administration of justice, coupled with automatisation of procedures and development of the
infrastructure, will enable meeting the needs of the justice system. The total number of backlogged cases in general and
special jurisdiction courts has been over 3 million for several consecutive years74. Also, as it was pointed out in the Joint
Report to the European Parliament and the Council on Serbia's progress from 2013, that there are still major imbalances in
the workload of judges and length of proceedings remains excessive in many cases.
Variety and scope of corruption cases in Serbia, require in the further reform phase to clearly define priorities and proper
allocation of available resources. The fight against corruption has been a central element of the government's activities and
a number of investigations have been launched, including into high level corruption75. Nevertheless, track record in
effectively investigating, prosecuting and convicting perpetrators of corruption needs to be further improved.
Still, ineffectiveness remains and an identified source is located in the legislative process itself and in not effectively
considered financial and administrative implications of legislation implementation and control mainly through Judiciary and
Public Administration. Comprehensive stakeholder participation, efficient inter-institutional coordination and transparent law-
making procedures are essential preconditions for implementable laws and regulations.76 Implementation of laws needs
additionally attention to afore-mentioned procedural conditions institutional and individual capacities, especially in judiciary
and Public Administration. Civil society organisations can play an important role in raising attention regarding non-
implementation of law, specifically in the area of anti-corruption. Established institutions still did not accomplished to fully
implement their competences and capacities are not fully established. Further reform process needs to be continued. With
regards to the correlation between the implementation of the rule of law and quality of life, such as access to employment,
public services and crime reduction, there is still much to be achieved. Improvement of the judicial system in order to create
the system that is proficient to manage resources effectively, to process cases in timely manner and which is in accordance
with the national legal framework, international and European standards for efficiency and quality of justice is crucial.
Improvement of legal certainty and anti-corruption policy can strengthened the role and status of relevant institutions;
increase their independence, but accountability as well. It is necessary to secure substantial independence and obey
decisions and recommendations made by Anti-Corruption Agency and other independent institutions, and intensify checks of
assets belonging to public officers, revealing conflict of interests and control of political party financing. Improvement of the
quality and efficiency of justice can improve access to justice and restore trust in the judicial system and an efficient and
transparent regulatory system as essential for further development.
Priority 2 – Improving the protection and promotion of Human and Minority rights
Overall, the introduction of international standards and new regulatory areas such as fundamental rights and anti-
discrimination has characterized improvements of the Judiciary system in terms of Human and Minority Rights. Development
of legal and strategic frameworks to protect human and minority rights and strengthening of institutional capacities have
created the basis to further promote and increase access to civil, political, socio-economic and cultural rights of citizens and
minority groups. This priority will focus on the improvement of the status of human and minority rights by: supporting the
implementation of the existing strategic and legal framework and continuing to create and strengthen a culture of tolerance.
Both the implementation of H&MR mechanisms and the continuous contribution to inter-cultural process for democratic and
open society will be based on the integration, coordination and cooperation across the sector. Partnerships at the national
and local levels with all relevant sector stakeholders and between the public, private and CS actors will be built and/or
strengthened in order to maximize the impact of the results. Incentives and mechanisms to boost CSO participation and
cooperation with public institutions at the national and local levels will be designed and realized.
B1.5. Sector measures for implementation of priorities in the sector
Priority 1- Improving judicial system, legal certainty and fight against corruption
Measure 1.1: Further supporting the reform of the judicial system in line with the EU accession requirements
74For example, according to the Supreme Court of Cassation – Analyses of the work of all courts in the Republic of Serbia (January 1 – December 31,
2012), if calculate number of backlog cases by date of receipt in the court, at the end of 2012 courts had 1,647,349 backlog cases, which is 18.86% higher
than at the end of 2011. An increase in the backlog exists also if it is calculated by date of initial act and in relation to the end of 2011 it is 18.33%
75Related to data from the Analytical report on statistics of high profile corruption, in 2012 indictments for the criminal offence abuse of office were raised
against 23 persons having the status of an official, and against 57 persons having the status of responsible person.
76 See: “Survey On The Improvement Of The Legislative Process In The Republic Of Serbia”, GIZ, Belgrade 2012
41
This measure will focus on facilitating judicial reform in line with new National Judicial Reform Strategy77 and thus provide
continual support aimed at strengthening independence, impartiality and professionalism, competence, accountability and
efficiency. Human and technical capacities related to implementation of the strategy (planning, budgeting, statistical system,
analyses, etc.), as well as related to monitoring the progress of strategy implementation will be strengthened. Support will be
provided to the Commission for the implementation of the Strategy and the Secretariat for the implementation of the
Strategy78. This measure addresses the shortcomings of the newly formed judicial network, reflected in the unequal case
burden of the courts, led to preparation of new Law on the Seats and Territorial Jurisdiction of Courts and Public
Prosecutor's Offices on the ground of establishing the basic and additional criteria for better access to justice and
rationalisation and it is envisaged to be adopted in 2013. Law Amending the Law on Judges, the Law Amending the Law on
Courts and Law Amending the Law on Public Prosecution will be adopted in 2013 in order to comply with the Constitution of
the Republic of Serbia, the EC Progress Report and expert opinions of the Council of Europe.
The measure will provide support to Ministry and institutions responsible for justice and its activities related to drafting
legislation aligned with the EU acquis and participation of accession negotiations within chapters 23 and 24 of the EU
acquis. It will aim at strengthening the capacities of the Ministry responsible for justice as leading institution in this sector in
terms of EU negotiations, regional and international cooperation. The measure will also continue building capacities of the
High Judicial Council (HJC), State Prosecutorial Council (SPC) in the field of human resource management including
introducing merit-based system for judicial administration, statistical analysis, setting up organizational structures and
operating procedures for the execution of their tasks. Strengthening the professional capacity of HJC and SPC to analyse
the results of reform (develop a system of data collection, training members of HJC and SPC in the field of analytics,
statistics and strategic planning). This will be a continuation of support to strengthening the strategic and administrative
capacities of the Serbian High Judicial and State Prosecutorial Councils through USAID and IPA 2013. It shall build on the
on-going project results focused on key challenges of legal reforms in Serbia, such as jointly implemented project by the GIZ
(German Organisation for International Cooperation) and Serbian European Integration Office, on improvement of the
comprehensive legislative process, implementation of the reformed laws and the popularisation of statutory provisions,
particularly in the field of civil and commercial law, covering period of 2008-2018.
Support will also be provided in improving organization and work processes of the Judicial Academy (JA) and current
structure in order to strengthened competences of the JA related to initial and continuous training, as well as training
activities intended for judges and prosecutors assistants, trainees and administrative staff. Support is need for introduction of
the systematic approach to the training of the judicial profession representatives, because they are entrusted with public
authority and they are newly introduced professions. Also with regards to the uniform application of the law and
harmonization of the case law, support will be provided to the Supreme Court of Cassation related to its role in this process.
Assistance will secure the process of uniform application of national case law by the judiciary, its harmonization and
education conducted through JA on methodology for drafting court decisions, apart from harmonization process with the
case law of the ECHR, envisaged through IPA 2013. Assistance will be provided to continuous training activities in some
specific and important areas of organised crime and corruption. In respect of the introduction of career system for judicial
officials - strengthening and maintaining the quality of human resources in the judiciary shall be supported, in particular by
improving the system of professional evaluation and management of human resource and promotion of Judges/Prosecutors`
Profession.
Furthermore, support to the public prosecutions network will be provided with specific attention to their newly established
competences. Support will focus on enhancement of institutional capacities and technical capacities through infrastructure
upgrading with purpose to accommodate the courts and prosecutors' offices in separate buildings, considering their role in
the justice system and the court proceedings. Support will be provided with regards to functional needs and requirements of
new introduced adversarial system emphasising prosecutors led investigation. The measure will also support establishment
of the viable, efficient and sustainable alternative dispute resolution mechanisms, through mediation and improve promotion
of the alternative ways for solving disputes79.
Taking into account effectiveness of the judicial system aiming at completion of judicial reform process, assistance will be
provided in relation to introduction of an efficient probation system, further development and widely implementation of
alternative sanctions by spreading the network of probation offices and creation of new organizational framework in
accordance with the new legislation and increased needs in the system of execution of alternative measures and sanctions,
introduction of new ways of alternative sanctions, as well as training for judicial function bearers, probation officers, police
officers, etc. Also, assistance will be provided to development of the post penal care of convicted persons as support to
77 Adopted by Government on 18.06.2013

78Responsibility for theimplementation of the objectives and activities envisaged by the Judicial Reform Strategy and the Action Plan will be given to the
Commission for the implementation of the Strategy. Administrative and technical support to the work of the Commission shall be provided by the Secretariat
for the implementation of the Strategy. Until the establishment of the Secretariat, the Ministry of Justice and Public Administration will provide administrative
and technical support to the Commission.
79
In terms of achievement of the priorities of this sector, based on the National plan for the adoption of the acquis (2013-2016), the Law on mediation
should be adopted by the end of 2013
42
implementation of the new legislation, as well as introduction of the new ICT. These actions will take into account the
capacities of the Prison system in line with EU requirement and Recommendations from the Council of Europe (CPT) by
improvement the accommodation conditions and health treatment.
Measure 1.2: Increasing the efficiency and quality of the judicial system in accordance with international and
European standards
The measure will focus on improvement of the judicial system in order to create the system that is proficient to manage
resources effectively, to process cases in timely manner, and which is in accordance with the national legal framework,
international and European standards for efficiency and quality of justice. It will be achieved by enforcing mechanisms for
reducing court backlog, backlog of enforcement cases, reducing length of judicial proceedings, improving supervisory
capacities of the Ministry in charge for justice and modernization of the work of the relevant judicial institutions, as well
fostering educational and vocational system in the justice sector. This measure will focus on support for drafting and
applying a unified backlog-clearance program and continuous monitoring of its implementation based on the USAID-
supported backlog reduction plan as set forth in the best practice guide and proposed national backlog reduction strategy
Also as it is envisaged within the new National Judicial Reform Strategy and the Action Plan, an improved plan for the
reduction of the backlog will be developed. (This should follow up the new judicial network and specific criteria that should
be took into consideration regarding the number of courts and judges).
After new judicial and prosecutorial network established, this measure will build on synergy with the Measure 1.1 focused on
the quality of organization and under 1.2 it will address quality in services. Moreover, it will embrace activities aimed at the
quality of the system of serving justice in accordance to the HJC and SPC competences, such as evaluation of the work of
judicial officials. It will also reflect on efficiency in functioning of these mechanisms, for instance through conducting “A
comprehensive analysis of the functioning of the new court network is needed in terms of cost, efficiency and access to
justice. The quality of judicial statistics needs to be improved.”80
Internal capacities in the justice sector institutions, related to strengthening of professional and administrative capacities for
budgeting, planning and investment planning will be improved. (Develop the planning process of infrastructure investments
based on the priorities, to enable Ministry responsible for justice assessment of clearly defined and prioritized list submitted
by the HJC and SPC). Support will be provided to further building and upgrading of uniform ICT system already in the justice
sector that will enable automation of work processes, statistics, and analytics.
Also, within this measure, actions will be undertaken aimed at improving system for enforcement of the court decisions and
improving functioning of newly established judiciary professions (notaries, private enforcement agents/ bailiffs). Mainly, this
will be undertaken through design of training programs for the Judicial Academy based on training curriculum already
developed with USAID support. A focus should be to strengthen capacities of monitoring in Ministry in charge of justice
regarding new judicial professions. Comprehensive public awareness measures should help introducing those professions
and their services to specific target groups and the general public.
Measure 1.3: Improving anticorruption policy in line with enhancing prevention, prosecution and processing of
corruption cases
This measure will focus on efficient implementation of related legal framework in line with implementation of the new Anti-
corruption Strategy with the focus on the areas vulnerable to corruption, specifically to the public finances and establishment
and strengthening mechanisms of internal financial control in public sector and development of training programmes for
auditors in public sector. Support will also be provided to strengthening mechanisms of internal control within the police
sector, building intra and interoperability of all relevant institutions and bodies to efficiently fight corruption, toward proactive
approach to investigating and prosecuting corruption cases and introduction of unique record (electronic record) for criminal
offenses with elements of corruption “the prosecution service still has to demonstrate its ability to obtain convictions in high-
level cases against well-funded defence teams” as stated in the EC Progress Report 2012.
The measure will support cooperation and coordination of different national institutions, exchange of data and access to
relevant data with regards to registries which are conducing on public officials, their assets, incomes and gifts, public
procurement procedures, cost of campaigns of political parties. It will be achieved through protection of whistleblowers and
relevant national institutions with regards to the new competences after the adoption of the specific Law on protection of
whistleblowers. It shall improve efficiency and proactive approach in investigation and prosecution of corruption cases, by
harmonization of the substantive criminal law with international standards.
Support will be provided to the prevention of the corruption with regards to the preparation of the education programme on
the fight against corruption in the state bodies and organizations, territorial autonomy and local self-government, public
services, organizations for social insurance, and other legal entities. Also, the measure will focus on development and
implementation of corruption prevention measures and implementation mechanisms for public and private sector,
specifically on establishment efficient mechanisms for implementation, control and monitoring of risk based integrity plans in
80 EC Progress Report 2012
43
most corruption vulnerable ministries and public institutions. In order to improve preventive mechanisms this measure will
also focus on support for improvement of integrity plans specifically for each sector related to competences of different
institutions. The measure will focus on support to the introduction of regular and constant analyses of legislation regarding
risks for corruption and organization of necessary trainings, in order to establish effective horizontal and vertical cooperation
and exchange of information among the police, Public Prosecution Office, judiciary and other relevant institutions, control
bodies and supervisory organs, as well as European and international organizations. In that respect, it will address Serbia’s
obligation in line with implementation of Review Mechanism provided for in the UN Convention against Corruption and
its second review cycle, which will start in 2015, covering chapter II on preventive measures.
Priority 2: Improving the protection and promotion of Human and Minority rights
Measure 2.1. Implementing existing strategic and legal framework for the protection of human and minority rights
This measure will build on existing mechanisms for implementation and monitor of the respect of H&MR and will strengthen
their implementation at the national and local level. This measure will support implementation of CB mechanisms, solutions
and services for the promotion of H&MRs and anti-discriminatory practices. Also, this measure will continue to strengthen
capacities of Independent institutions (such as The Ombudsman, Commissioner for protection of Equality, Commissioner for
free access to information) and Minority Councils and promote local and national partnerships of public, private and CS
stakeholders. In order to facilitate implementation of anti-discrimination action plans, active participation of CSOs as
implementing agents will be supported, as to remove obstacles and circumstances that hinder the achievement of full
equality of deprived, vulnerable and marginalized groups: Roma, LGBT persons, people with disabilities, women, the elderly,
refugees and IDPs, and groups with multi-layered vulnerability. The enforcement of respect and protection of H&MRs will be
rendered possible through an improved national mechanisms to prevent and eliminate torture, ill treatment, hate speech,
gender and all other types of violence and pain-infliction in prisons. In order to improve access to justice, measure will also
support further work on normative framework for the free legal aid system 81, prepare costs analyses of the system and
provide assistance in defining monitoring structure and mechanism for fully functional system.
Measure 2.2. Promoting the culture of tolerance, diversity, equality to prevent H&MR violation in employment,
education, health and public information
This measure will focus on the mainstreaming non-discrimination, gender equality, diversity, non-violent communication into
education curriculum and teaching tools, employment environments, health centres/institutions and mass-media. This is to
be realized through the coordination and cooperation of cross-sector institutions and line ministries in order to guarantee
systematic approaches and intervention. Partnership will be built/strengthened also between local and national stakeholders
from the CS, public and private sectors. Direct involvement and participation of education, health, mass media and labour
market actors will be stimulated and the actors and beneficiaries (schools, students, parents, teachers, local communities,
employers, representatives of minority groups, health-care centres and providers…) will be empowered also through
participatory, innovative methods and tools to identify and prevent discrimination, violence and inequality also by
participating in designing solutions changing behaviour based on discriminatory practices and human rights violations..
Specific attention will be paid to ensure that public service broadcasters and companies promote equality, tolerance and
non-discrimination, and that their actions raise public awareness and changes of social and cultural patterns and practices
that are based on stereotypes and prejudice against minority and marginalized social groups. Monitoring mechanisms will be
activated to make sure that public broadcasting services produce and broadcast programs that express the cultural identity
of national minorities and ethnic groups.
Regional, Cross-border and Transnational Themes in Justice Sector
Instruments of importance for regional cooperation, such as Multi-Beneficiary IPA support, CBC and Trans National
Programmes, should be provided to those actions where benefit of regional approach is obvious.
MB IPA
Following the experience so far with implementation of MB IPA, it would be important for MB IPA to focus primarily on areas
where objectives can be better achieved at regional rather than at national level. Especially sub-component on judicial
cooperation entails important synergies and better impact can however be achieved with combined actions, which will be
also an important sector priority under the national programme. The following areas could be the MB programme focus:
strengthening regional cross-border cooperation between prosecutors in the fight against organised crime and corruption,
mainly through networking, mutual legal assistance, transfer of proceedings, requests for extradition, joint investigation
teams, witness protection programmes. In addition, in case of future actions related to prison facility reforms financed by the
International Financial Institutions, it is expected to continue with the WBIF support related support.
81
The MDTF-JSS supported the Ministry in charge of judiciary in the drafting of legislation (Law on Free Legal Aid) aimed at ensuring access to justice for
disadvantageous population groups. In May 2013, the new Working group was established which continued to further improve the draft prepared in the
previous period. According to the Ministry in charge of justice, it is planned that Law on FLA to be adopted by the end of 2013.
44
Cross Border and Transnational Priorities are linked with the following ERDF thematic objectives: Promoting employment
and supporting labour mobility (Thematic objective 8), Promoting social inclusion and combating poverty (Thematic objective
9), Investing in education, skills and lifelong learning (Thematic objective 10) and Enhancing institutional capacity and an
efficient public administration (Thematic objective 11). In context of CBC, priorities should contribute to strengthening of
people-to-people interaction and correlate to the actions supporting Priority 2 on protection and promotion of human and
minority rights. Possible areas of interventions are regarding promotion of H&MRs, equal employment opportunities, social
and education inclusion for vulnerable and marginalized groups (e.g. Roma, people with disabilities, women, refugees and
IDPs).
EU Strategy for Danube Region
After adoption of the MLA82 instruments, further regional administrative cooperation and continued improvement of the
qualifications police and judicial authorities for enforcement and adjudication of the cross-border crime will be enhanced.
This is reflected in the EU Strategy for Danube Region targets set for 2015 for the implementation of, and training on mutual
legal assistance instruments. Links with relevant EU policies, such as the Danube Strategy support the national authorities
for justice and police to achieve the objectives set for the fight against corruption, organised and serious crime. And to meet
the targets set for the time-frame until 2015 (these targets are set in relation to the smuggling of goods, the trafficking of
human beings, and to the elimination of cross border black markets). This will require the strengthening of the law
enforcement bodies, both within, and across, jurisdictions by the improved sharing of intelligence and the increased support
for joint international action.
Under cross-border and transnational priorities initiatives strengthening regional cooperation shall be covered, especially:
 Regional initiatives for the judicial cooperation in criminal matters
 Regional initiatives for judicial cooperation in civil matters
 Initiatives for protection of human and minority rights.
B1.6. Institutional framework for implementation of Sector Approach
The justice sector in the Republic of Serbia, in context of Sector Approach, is managed by the following institutions: Ministry
in charge of judiciary independent/autonomous judicial institutions: the High Judicial Council, the State Prosecutorial
Council, the Supreme Court of Cassation, the Republic Public Prosecutor’s Office, the Prosecutor's Office for Organized
Crime, the Judicial Academy and administration organ within the Ministry in charge of judiciary - the Administration for
Execution of Criminal Sanctions and the Directorate for Management of Seized Assets, but also the Anti-Corruption Agency,
Office for Human and Minority Rights, Ombudsman Office, Office of the Commissioner for Equality, Directorate for Gender
Equality of the Ministry in charge of labour and social policy. The lead institution for the sector is the Ministry in charge of
justice.
In context of Sector Approach, the Ministry in charge of judiciary coordinates the work of all relevant institutions in the sector
in regard to planning, programming, implementation and monitoring of the Justice sector measures/operations which will be
supported by EU funds and other international development assistance. Responsibility for formal submission and later
implementation of measures/operations depends of their content and responsibility of institutions involved in the Justice
sector.
In order to improve and coordinate activities related to planning, programming, implementation and monitoring of EU funds
and international assistance and to increase the efficiency and effectiveness of development assistance, the Sector Working
Group (SWG) for Justice83 has been established. The SWG for Justice is responsible to coordinate activities related to
planning, programming and monitoring of EU funds and international assistance, to identify relevant measures/operations
and activities and to support the introduction of Sector Approach in Justice sector. The functioning, management,
organization and composition of SWG is more precisely defined by the ’’Rules of Procedure for Sector Working Groups for
the Programming and Monitoring of the EU funds and development assistance’’. The national institutions participating in the
SWG are Ministry in charge of justice, Ministry in charge of internal affairs, Intellectual Property Office, Office for Human and
Minority Rights, Ombudsman Office, Office of the Commissioner for Equality, Anti-Corruption Agency, Directorate for
Gender Equality of the Ministry in charge of labour, employment and social policy, Ministry in charge of finance and
economic development and Office responsible for European integration affairs (SEIO). Members of the SWG are officially
appointed representatives of the above mentioned line ministries, at the level of State Secretary or Assistant Minister, or
appointed Senior Programming Officers (SPOs) and the Serbian EU Integration Office.
Representatives of the donor community including the Lead Donors are participating at the SWG meetings based on the
needs and requirements of each SWG meeting and takes part in consultation processes for analysing sector priority goals,
82MLA - Mutual legal assistance

83Act on establishing the SWG from 5.11.2012. No: 119-01-68/2012-03
45
measures and operations for financing from EU funds and international assistance as well as they secure data on the
expected assistance during the planning period. The Lead donor(s) is responsible to support the work of the SWG and
represent the interests of donors active in particular sectors.
In order to enable more inclusive and transparent dialog, consultation and communication with all relevant stakeholders in
the respective sectors, SEIO established a consultation mechanism with the civil society organisation (CSOs) 84. This
mechanism is based on the consultative process with Sectorial Civil Society Organisations (SECOs) and serves as a
platform that enables exchange of information and contribution of CSOs in relation to planning development assistance,
particularly programming and monitoring of the Instrument for Pre-Accession Assistance (IPA). The SECO indicates a
consortium of maximum three CSOs as partners, one of which is clearly indicated as leading partner. SECO is composed of
the CSOs that have significant experience with public advocacy, analyses and research in the sector, as well as experience
in direct work with service providers and beneficiaries. They are influencing public policy due to their successful networking
and partner work with other local and international civil society organisations well as constructive cooperation with state
institutions and the constant monitoring of their work. Members of SECO are participating at the SWG meetings based on
the needs and requirements of each SWG meeting and takes part in consultation processes for analysing sector priority
goals, measures and operations for financing from EU funds and international assistance. Other relevant stakeholders
(agencies, private, academic sector, CSOs, etc.) can participate at the SWG meetings based on the topic, needs and
requirements of each Sector Working Group meeting.
Under the Rules of Procedure for Sector Working Groups, SEIO 85 is responsible for coordination and ensuring the efficient
functioning of all activities of the Sector Working Group. Coordination and leadership of the SWG is supported by a Task
force made up of representatives from the Sector Lead Institution, Lead donor and SEIO.SWG is also acting as Sectorial
Monitoring Subcommittee for IPA.
84 Introduced in 2011
85 Sector for Planning, Programming, Monitoring and Reporting on EU Funds and Development Assistance
46
B1.7 Indicators for measuring progress
PRIORITY 1: Improving judicial system, legal certainty and fight against corruption
Means of Institution in charge for
Baseline Target
Indicator Unit Verification reporting
(2012)*
2013 2014 2015 2016 2017 2018 2019 2020
European
Provisi
Positiv Positiv Positiv Positiv Positiv Commission Report
onally
1.1. Closed chapters 23 and 24 of the EU acquis e e e e e on Progress in
Y/N closed yes Ministry in charge of Justice
communautaire assess assess assess assess assess fulfilling EU
chapter
ment 86 ment ment ment ment requirements for full
s
accession
MoJPA HJC, CPS
1.2.% legal predictability of the court proceedings(civil
new index/ Doing
and commercial cases)
% n/a 5 4.6 4 3.6 3 n/a n/a n/a n/a Business Report Ministry in charge of Justice
(time per case x costs per case87 x procedures
(enforcement of
(second instance, third instance))
contracts)
1.3 % of implementation of National Strategy for
% 0 0 50% 60% 70% 80% 90% ACA Report ACA
Fighting Corruption
MEASURE 1.1: Further supporting the reform of the judicial system in line with the EU accession requirements
Baseline Target
(2012)*
2013 2014 2015 2016 2017 2018 2019 2020
1.1.1.Progress noted in line with Chapter 23 on quality Positiv Positiv Positiv Positiv Positiv Positiv
Progress
of judicial organization through assessment on e e e e e e EC Progress
Y/N Report Ministry in charge of Justice
independence, impartiality and accountability of the assess assess assess assess assess assess Report/
for 2012
judiciary ment ment ment ment ment ment
Reports of the
Public Prosecutor in
charge of
1.1.2 No of disciplinary sanctions (final decisions)
# 5 0 disciplinary HJC/SPC
adopted against judicial officials88
proceedings to the
HJC and SPC on
annual level
86 Positive assesment in EC Progress Report, Screening Report, Monitoring Report

88Value of the case as estimated at the beginning of the proceedings
90 Baseline is a number of decisions approved by High Judicial Council. In addition, HJC collects statistical data on number of disciplinary procedures, number of disciplinary procedures initiated by Disciplinary Prosecutor and number of
decisions rendered by Disciplinary Commission. At the moment, HJC cannot provide precise projections.
47
Adopte
Analyti Analyti
d
cal and cal and
Amend discipli
% of % of plannin plannin
EC ments nary HJC Reports of the
staff staff g acts g acts
Progress (drafte measur admini Commission for the
Judicia Traine Traine adopte adopte
Report d) of es and strative implementation of
1.1.3. Fully operational and strengthened l staff d on d on d d
# for 2012 the internal office the National Judicial Ministry in charge of Justice
administrative offices of the HJC by 2017/8 equipp analyti analyti accordi accordi
partly Rules manag fully Reform
ed cs and cs and ng to ng to
operation of ement operati Strategy/Annual
plannin plannin interna internat
al Proced and ve Report of the HJC
g g tional ional
ure control
standa standar
mecha
rds ds
nisms
Adopte
Analyti Analyti
d
cal and cal and
discipli
Amend % of % of plannin plannin
EC nary HJC Reports of the
ments staff staff g acts g acts
Progress measur admini Commission for the
(drafte Judicia Traine Traine adopte adopte
Report es and strative implementation of
1.1.4. Fully operational and strengthened d) l staff d on d on d d
# for 2012 internal office the National Judicial Ministry in charge of Justice
administrative offices of the SPC by 2017/8 Rules equipp analyti analyti accordi accordi
partly manag fully Reform Strategy/
of ed cs and cs and ng to ng to
operation ement operati Annual Report of
Proced plannin plannin interna internat
al and ve the SPC
ure g g tional ional
control
standa standar
mecha
rds ds
nisms
Adopte Requir Requir
d ed ed
Report Laws Laws
EC s and and and
HJC/S
Progress Need sub- sub-
PC
Report assess laws laws Reports of the
propos
for 2012 ment amend amend Commission for the
al
Partial for ments ed/ado implementation of
1.1.5. Full independence and transparency of judiciary conduc
HJC/SPC plannin drafted pted in the National Judicial Ministry in charge of Justice
in budget authorizations by 2016 ted on
compete g and in regard Reform Strategy/
budget
nces in executi regard to new Annual Report of
for the
budgetin ng of to new budget the HJC
judiciar
g of the budget ary
y
judiciary budget ary compet
on compet ences
judiciar ences of the
y of the HJC/S
48
HJC/S PC
PC
Budget
/internati Foreig Foreig
onal n n State State
assistanc 176,83 assista assista Budget Budget
ISDACON-ODA
e 7,000 nce nce 99.99 99.99 99.99 /260,0 /270,00
1.1.6. % of allocated funds for the Judicial Academy % Report/Budget of Ministry in charge of Justice
111,427, rsd estimat estimat % % % 00,000 0,000
the RS
000 /4.000. ed ed /0.01% /0.01% /0.01% rsd rsd
rsd 000rsd /1,000, /700,0 (100%) (100%)
/1.000.00 000rsd 00 rsd
0rsd
Sub-
legislati 20 % 25 %
10% of 15% of
on of of Reports of the
mediati mediati
Laws adopte mediati mediati Commission in
1.1.7. % of resolved cases by mediation in comparison on on
% n/a adopte d and on on charge for Ministry in charge of Justice
to total of civil and commercial cases court decisions resolve resolve
d associ resolve resolve implementation of
d d
ation d d APs on NSRJ
cases cases
establi cases cases
shed
Reports of the
1.1.8. % of alternative sanctions imposed in court Administration for
% 4.05 5.00 6.40 7.50 8.40 9.30 10.2 11.0 12.0 Ministry in charge of Justice
decisions (of total judgments in criminal cases) Enforcement of
Criminal Sanctions
MEASURE 1.2: Increasing the efficiency and quality of the judicial system in accordance with international and European standards
Baseline Target
(2012)*
2013 2014 2015 2016 2017 2018 2019 2020
European
EC Positiv Positiv Positiv Positiv Positiv Commission Report
1.2.1. Progress noted in line with Chapter 24 on Progress e e e e e on Progress in
Y-N Ministry in charge of Justice
judicial cooperation in criminal and civil matters Report assess assess assess assess assess fulfilling EU
for 2012 ment ment ment ment ment requirements for full
accession
1.2.2. No of cases (pleas) regarding mutual legal 10- 10- 10- 10- 10- 10- 10- 10-
Report of MLA
assistance in criminal actions by 2020 15% 15% 15% 15% 15% 15% 15% 15%
10.500 Department on Ministry in charge of Justice
No of cross border cases initiated, processed and % increas increas increas increas increas increas increas increas
criminal actions
enforced (criminal and civil cases) by 202089 e e e e e e e e
within Ministry in
89 Baseline for indicator 1.2.2. contains number of submitted/received pleas. This data can be classified in accordance with international assistance forms.
49
charge of Justice
Report of MLA
10% 20% 20% 20% 20% 20% 20% 20% Department on civil
1.2.3. No of cases (pleas) regarding mutual legal
% 10.000 increas increas increas increas increas increas increas increas actions within Ministry in charge of Justice
assistance in civil action by 2020
e e e e e e e e Ministry in charge of
Justice
1.2.4.% of trained judges and prosecutors according
% 72% 77% 82% 88% 92% 96% 100% Report of the JA Judicial Academy
to Law and Programme of JA for continuous training
1.2.5.Increased clearance rate (% of incoming and Annual Report of
% 40.,58% 50% 55% 60% 70% 75% 80% SCC
resolved cases) SCC90
Report of the
Government
4 4 4 3 3 2 2 1 1 Representative
1.2.6. Reduced No of violations found by ECtHR under
No violations violatio violatio violatio violatio violatio violatio violatio violatio before the ECtHR/ Ministry in charge of Justice
ECHR Article 6
of 12 ns ns ns ns ns ns n n European Court of
verdicts Human Rights
annual Report
Report of the
1.2.7.% of successful91 indictments out of total amount Republic Public
% 71.63%92 72% 73% 73% 74% 77% 78% 80% 83% RPPO
of PPOs cases compared to previous year Prosecution
Office(RPPO)
HJC Report, Report
1.2.8.100% use of ICT tools for case and content of Justice Sector in
% 65% 70% 75% 90% 100% Ministry in charge of Justice
management system in courts Ministry in charge of
Justice
1.2.9. 100% use of ICT tools for case and content SPC Report, Report
% 40% 45% 55% 65% 85% 95% 100% Ministry in charge of Justice
management system in Public Prosecution Offices of Justice Sector
Report of Execution
1.2.10. 100% use of ICT tools for case and content
of Criminal
management system in institutions of penitentiary % 0% 60% 70% 80% 100% Ministry in charge of Justice
Sanctions
system
Administration
MEASURE 1.3: Improving anticorruption policy in line with enhanced prevention, prosecution and processing of corruption cases
Baseline Target
(2012)*
2013 2014 2015 2016 2017 2018 2019 2020
1.3.1. Progress noted in line with Chapter 23 on EC Positiv Positiv Positiv Positiv Positiv European Ministry in charge of Justice /
Y/N
anti- corruption policy Progress e e e e e Commission Report Ombudsman
90 Supreme Court of Cassation

91 “successful” refers to indictments followed by the judgment of conviction
92 Baseline is percentage of final judgements and closed confessions of guilt in a calendar year compared to total number of indictments raised against adults and minors and number of suggested agreements on guilt confession that year. In
this regard, it is emphasised that the prosecutor’s office have raised indictments against 59,824 persons, where 42,150 people have been convicted and out of 869 agreements on confession 706 have been closed. This means that success
rate is 71.63% in prosecution cases.
50
Report assess assess assess assess assess on Progress in
for 2012 ment ment ment ment ment fulfilling EU
(Little requirements for full
progress) accession /
Ombudsman Report
Formul
ating Adopte
require d
d legislati
legislati ve
Applica Applica Applica Applica
ve amend ACA Report ,
1.3.2. Removed legislative obstacles for tion of tion of tion of tion of
Y/N n/a amend ments Report of Ministry in Ministry in charge of Justice
supervision of financing of political parties regulati regulati regulati regulati
ments on charge of Justice,
ons ons ons ons
on financi
financi ng of
ng of political
political parties
parties
1.3.3. No of investigations of corruption cases Report of MoI / Ministry in charge of home
No
and cases with element of corruption Ombudsman Report affairs / Ombudsman
1.3.4. No of prosecuted high level corruption
No 13993 140 140 140 140 140 140 140 140 Report of the RPPO Ministry in charge of Justice
cases
1.3.5. No of processed corruption cases and
No 373094 Report of the SCC Ministry in charge of Justice
cases with element of corruption
1.3.6. No of final judgments on corruption cases
No 93395 Report of the SCC Ministry in charge of Justice
and cases with element of corruption
1.3.7. No of institutions included in the education
No ACA Report Ministry in charge of Justice
on corruption
1.3.8. No of proceedings of cases envisaged by
ACA Report Anti-Corruption Agency
Law on Anti-Corruption Agency
PRIORITY 2: Improving the protection and promotion of Human and Minority rights
Baseline Target
(2012)*
2013 2014 2015 2016 2017 2018 2019 2020
2.1. Ratio between number of directed and OHMR / Ombudsman and
Annual Report to
implemented recommendations addressed by Ratio 1.6697 1.60 1.55 1.50 1.45 1.40 1.35 1.30 1.25 Commissioner for Protection of
EP
Ombudsman and other independent institutions to Equality
93 It should be taken into consideration that report on initiated cases and statistics showed reflect number of persons, not number of offences.
94 The data represent a summary report of Courts of Appeal and they reflect number of cases not entirely finished in first instance proceedings, along with the total numer of proceeded cases with element of corruption initiated in first instance
courts, which process the following: Article 359, 360, 363, 364, 366, 367, 368, 369, 238, 234 from Criminal Law of the Republic of Serbia.
95 Same as previous
51
bodies of state authority regarding improvement of
human and minority rights.96
MEASURE 2.1: Implementing existing strategic and legal framework for the protection of human and minority rights
Means of
Baseline Target Institution in charge
Indicator Unit Verification
(2012)*
2013 2014 2015 2016 2017 2018 2019 2020
Report of the
Ombudsman,
Report of the Ombudsman, Commissioner
2.1.1. The number of human rights violations No 90898 870 845 800 765 720 680 650 600
Commissioner for for the Protection of Equality
the Protection of
Equality
Report of MoI,
Report of the
Ombudsman, OHMR or Ministry in charge of
2.1.2. Number of reported incidents against minority #
Report of the Justice, Ombudsman,
groups in relation to the situation before 2013 Commissioner for Commissioner for the
the Protection of Protection of Equality
Equality; Reports of
CSOs
2.1.3.Anti-discrimination local action-plans and
coordination mechanisms at the local and national No
levels established
2.1.4. Proportion of seats in local parliament held by
%
the women
2.1.5. Women that are mayors
2.1.6. Proportion of public service positions held by
women
MEASURE 2.2: Promoting the culture of tolerance, diversity, equality to prevent H&MR violation in employment, education, health and public information
Means of
(2012)*
2013 2014 2015 2016 2017 2018 2019 2020
Report of the OHMR
OHMR, Ministry in charge of Justice
2.2.1 The level of public awareness on the rights of
Report of the CPE, Ministry of Labour and
vulnerable groups in relation to the period before 2013
Survey on Public Social Policy
Opinion about Ombudsperson
97 Defined recommendations: 222; implemented recommendations: 134 (60.36%)

96 (disaggregated by gender, age, religion, ethnic background, nationality, place of origin and residence)
98 Number of complaints submitted to Ombudsman regarding gender equality (55), rights of incarcerated persons (119), rights of disabled persons (98), children’s rights (425) and minority rights (211)
52
Discrimination and Commissioner for the
Inequality Protection of Equality
OHMR
Ministry in charge of Justice
Reports to the UN
2.2.2. Timeframe and coverage of policies and Ministry of Labour and
contracting bodies,
programs to provide protection against violation of Social Policy
Reports to the
HMR and discriminatory practices Ombudsperson
Council of Europe99,
Commissioner for the
Protection of Equality
2.2.3. Ratio of girls to boys completing secondary
education
2.2.4. Dropout rate of Roma students in secondary
education
2.2.5. Unemployment rates by sex and target groups Labour force survey
2.2.6. Number of journalists and other media persons
who reported sanctions, political or corporate pressure
for the publication of information
2.2.7. Proportion of women who have experienced
physical and/or sexual violence by current or former
partner
2.2.8. Prevalence/incidents of crimes, including hate
crime and domestic violence by target population
99 Comments and recommendations of UN contracting bodies / UN Committee and the Council of Europe, EC Report, Reports of national and international organizations dealing with protecting and improving human and minority rights.
53
B1.8. Aid effectiveness, efficiency and sustainability
According to the ISDACON database, Justice sector received substantial assistance from the international donor community
over the period 2007-2012, with estimated total disbursement amounting to 91,5 million EUR. Largest and most important
donor in the sector has been the EU with total disbursement within IPA component I amounting to 67.38 million EUR in the
period 2007-2013.
In seven annual 2007 – 2013 programmes, IPA component I financed projects oriented towards improvement of efficiency
and transparency of the judicial system, the introduction of case management system in the courts and prosecution, criminal
asset confiscation, reform of the penitentiary system and strengthening of alternative sanctions, the fight against corruption,
the establishment of the Judicial Academy. In the field of human and minority rights, projects through IPA supported
development of the policy framework for protection of human and minority rights, as well as strengthening institutional
capacities to implement, monitor and report on its implementation; but also IPA projects focused on economic or social
rights of individual targeted groups: resolving the problem of refugees and IDPs by finding durable solution to address their
situation, enhance their livelihood and ensuring full access to their rights, assuring availability and quality of education for
children from marginalised groups, social inclusion and poverty reduction among the most vulnerable groups in the society,
and improvement of the quality of life and access to rights of the Roma, Ashkalj and Egyptian communities. IPA 2012
support was structured with the aim to improve efficiency, effectiveness and quality of court proceedings, to support newly
established system of enforcement of court decisions, to enable coordinated fight against all forms of crime, to improve
capacity of courts to measure their performance, involving civil society and general public into the evaluation of the criminal
justice system; to provide support in closure of all remaining Collective Centres, improving living conditions of refugees,
IDPs and returnees under Readmission Agreements and to ensure sustainable return of IDPs to the territory of Autonomous
Province of Kosovo and Metohija (hereinafter: Kosovo and Metohija). IPA 2013 support focused on improving
professionalism, human resource management competences and technical capacities of judicial bodies for effective and
efficient delivery of justice, on improving capacities and capabilities of the penitentiary system and on improving capacities in
the area of human and minority rights and implementation of anti-discrimination and access to justice for youth policies
Other donors, such as SIDA, UNDP, UNICEF, Italy and Norway, have supported improving Roma access to social services
at a local level, implementation of anti-discrimination legislation as well as combating sexual and gender-based violence,
policy development and legislative reforms to ensure fulfilment and respect of the rights of the children without parental care
or with special needs, and settlement and integration of refugees. The Norwegian Government is also supporting
improvement of the delivery of justice and juvenile justice system, as well as institutionalisation of victim witness support
service network. In the area of judiciary reform, a World Bank managed, Multi-Donor Trust Fund (MDTF) for Justice Sector
Support has been established as a mechanism for coordinated allocation of foreign assistance. The main recommendations
in the MDTF Mid-term Report100for the development of the coordination and capacity for the Sector Approach and
establishment of the M&E system and reliable data together with 4 recommendations in Evaluation Report 101on
improvement of the policy in terms of coordination and sector specific need to make inter-sector linkages explicit in justice
support programme for IPA 2014-2020, already addressed by adoption of this document will be followed throughout the
implementation of the NAD measures. USAID and the U.S. Embassy Department of Justice each provide judicial sector
strengthening assistance. The UNHCR, USA and Germany have also provided resources to assist in resolving the housing
concerns of refugees and IDPs. This support was particularly important for consolidating the necessary statistics on the
targeted population and their whereabouts.
As recommended in the Report on the “Evaluation of the effectiveness and efficiency of development assistance to the
Republic of Serbia per sector”, the programming of future ODA justice should firmly link the institutional/technical aspects of
judicial reform, tackling corruption and anti-discrimination within the context of improved quality of life, and improve “low
impact of the sector actions”102 Generally, justice reform process in Serbia has been driven by the production of new
legislation and institutional building. There has been less foresight and investment in determining the capacities to ensure
compliance with, and enforcement of, new legislation or policies. The financial and administrative implications of
implementing new legislation, procedures, or institutions must be in place before ODA funding is committed and the Ministry
of Finance has signed off on the necessary budget commitments. This also requires increased financial planning and
budgeting capabilities by all institutions to effectively manage resources and deliver policies. In that respect, ODA in justice
sector was assessed as low in sustainability and efficiency, though measures undertake have produced outputs that
contributed effectiveness at medium level103.
100MID-TERM EVALUATION REPORT, The World Bank, Multi Donor Trust Fund for Justice Sector Support (MDTF-JSS), Republic of Serbia, December
2012
101Evaluation of effectiveness and efficiency of development assistance to the Republic of Serbia per sector’, draft final report, SIDA 2013
102 Ibid.
103 Ibid.
Justice sector also has an important role to play in the competitiveness of the Serbian economy, increasing investment and
creating new employment opportunities. Serbia desperately needs investment and particularly foreign direct investment
(FDI). While it is impossible to segregate one aspect of the justice/legislative process, future ODA should strongly focus on
addressing the main regulatory and policy impediments to building a better business-enabling environment for investment,
which reiterates its high relevance for different policy objectives to rule of law104 The World Economic Forum’s Global
Competitiveness Report for 2012-2013, which considers performance on various indicators against 144 countries worldwide
(with 1st being best) has Serbia ranked 130th on property rights, 116th on intellectual property protection, 129th on judicial
independence, 132nd in favouritism in decisions of government officials, 133rd in the efficiency of the legal framework in
challenging regulations, and 138th in the efficiency of the legal framework in settling disputes105.
104Ibid.
105Perhaps surprisingly by comparison, Serbia ranks ‘just’ 86th on irregular payments and bribes, and 85th on the business costs of crime and violence,
which may indicate both the effect of lower levels of corruption within the private sector, and endemic corruption and crime in many other countries
worldwide respectively.
55
B2 HOME AFFAIRS SECTOR
The Home Affair sector deal with security and safety, crime prevention and defence, and it covers policies related to
protection of citizens and the communities, fight against organised crime, drugs, money laundering and terrorism financing,
terrorism, human trafficking, border management and control, including migration and asylum, and protection of human
rights of refugees and IDPs.
Most common types of organized crime in Serbia are: organized narcotics crime, organized financial crime, human
trafficking and smuggling, trafficking and smuggling in firearms, property crime, kidnapping, organized forms of cyber-crime,
corruption and money laundering.
According to the statistical data for organized narcotics crime in 2010, 35 criminal groups were uncovered and a total of 1.7
tons of narcotics seized. This is almost 400 kg more than in 2009, indicating that smuggling of heroin and modified
marijuana was increasing. In the year 2011, 22 criminal groups were uncovered, 5,253 seizures realised in which more than
1.4 tons of narcotics are been seized. In 2012, Ministry in charge of home affairs was involved in 15 operations at regional
and international levels in which significant amounts of cocaine, heroin, marijuana and synthetic drugs were seized in Serbia
and abroad. In addition in the Republic of Serbia, 3 illicit laboratories for manufacturing synthetic drugs were discovered.
Ministry in charge of home affairs has taken extensive measures and activities in the fight against all forms of organized
crime and to improve international police cooperation. There has been an increase of indictments for computer fraud under
the new criminal code; approximately 90 persons were charged with bribery in 2009. In 2011 this number has increased to
126 persons; the number of persons charged with abuse of an official position increased to over 1,500 persons in 2011. As
a result seizure and confiscation of proceeds of crime was €350 million. There has been an increase in detection of illegal
travellers at border points, with the annual figure increasing four times in one year - from 2,797 (2010) to 10,217 (2011), in
the context that the total number of travellers (by land, air and sea) remained the same. However, the EC 2012 Progress
Report concludes that organised crime remains a serious concern in Serbia. Although criminal investigations have been
launched in a number of organised crime cases, final convictions remain rare.
In early 2012, an improved system of electronic record-keeping of offences became operational in the Ministry in charge of
home affairs. Data entry for the relevant operational and strategic analysis was harmonised and improved, enabling
proactive approach in the fight against organised crime and increasing the efficiency through implementation of preventive
and repressive actions.
When it comes to organized financial crime, 10 organized criminal groups were revealed in 2010 (3 organized groups
specializing in money laundering, organized criminal activity in the field of health and 5 groups that were engaged in various
abuses in the trade of excise goods and consumer goods). In 2011, 4 organised groups were uncovered out of which two
were involved in illegally providing of credit for the unemployed citizens and companies, and two for tax evasion. There is a
need that for Law enforcement bodies to develop the ability to conduct proactive financial investigations.
Organised crime still remains a serious concern in Serbia and capacity to carry out complex, in particular financial,
investigations needs to be strengthened. The Financial Investigation Unit (FIU) within Service for Combating Organized
Crime (SCOC) lack sufficient means and technical expertise and this is the reason why additional seminars, workshops and
trainings for police officers are needed.
Steps are being taken to modernise police work, to improve internal coordination, as well as international and regional
cooperation and to bring the police close to the citizen via community policing. Efforts to improve coordination within the
police structures as well as with other stakeholders have resulted in adoption of several key strategies and laws and the
establishment of specialised inter-ministerial structures, such as the Commission for Inter-ministerial Coordination in the field
of Justice and Home Affairs. Also in September 2010the Agreement on the cooperation in fight against of all types of crimes
was signed between Ministry in charge of home affairs, Ministry in charge of finance and Ministry in charge of justice. The
Law on the organisation and competences of the State Organs in combating organised crime,106 corruption and other
severe criminal offences extended the powers of the Prosecutor for Organised Crime and police. Financial investigation,
cyber-crime and drug smuggling units have been established within the Ministry in charge of home affairs allowing greater
specialization and expertise.
106Official Gazette RS, no. 42/2002, 27/2003, 39/2003, 67/2003, 29/2004, 58/2004 – other law, 45/2005, 61/2005, 72/2009, 72/2011 – other law, 101/2011
– other law 32/2013
56
However, capacity to carry out complex financial investigations needs to be strengthened. The level of inter-agency
cooperation, information flow and exchanges between law enforcement agencies needs to be improved. Risk assessments
and crime mapping need to be used more broadly and intelligence-led policing needs to be developed. Identified problem is
the absence of legislative and policy implementation follow-through. An identified factor for (source of) ineffectiveness is
located in the legislative process itself namely weak policy-driven legislation, which is often rushed in attempt to deal with
urgent issues (requiring subsequent amendments) and is not followed up with by-laws and institutional arrangements for
implementation.
With regard to terrorism, the commitment of the Republic of Serbian has been significant. Recent amendments to the
Criminal Code adopted in early 2013 have contributed to Serbia’s compliance with the international anti-terrorism legal
instruments. Serbia is party to 14 of the 18 such instruments. Although it has not ratified the 2005 Amendment to the
Convention on the Physical protection of Nuclear Material, Serbia has largely incorporated the criminalization provision of
these instruments into its Criminal Code. Serbia has also amended its Code of Criminal Procedure and the Law on Mutual
Legal Assistance107 is also applicable to cases of international cooperation in criminal matters related to acts of terrorism.
Institutionally, the National Security Council (NSC) was established in 2012 and has responsibility for overall coordination of
counter-terrorism efforts at the policy level. Also the specialized prosecutor’s office for organized crime, deals with crimes
related to terrorism and its financing. With regard to anti-money laundering and countering the financing of terrorism, Serbia
adopted an AML strategy in 2008.
Regarding the fight against human trafficking, from 2000, there are trends of “internal trafficking” which affected mainly
Serbian citizens. Data for 2010 shows that out of 76 victims 73 were citizens of Serbia and 72 out of 74 in 2011. Last
available statistics indicates that in 2011 the number of victims increased to 88 victims, number of perpetrators significantly
increased to 198, but only 52 criminal charges were submitted and in the end only 14 persons were sentenced. The
Government of the Republic of Serbia established national mechanism for coordination of activities and creation of policies
for fight against human trafficking, acting on two levels – central (strategic) and operative. Within the Ministry in charge of
home affairs, special police units have been formed for fight against human trafficking, within Service of Combating
Organised Crime within the Criminal Police Directorate and the Department for suppression of cross-border crime and
criminal intelligence within Border Police Directorate. In 2012 the Centre for the Protection of Victims of Human Trafficking
was established, as a social welfare institution, with the purpose of providing assistance and support to victims of trafficking,
including child victims of human trafficking. In the same year contact points for prosecution and coordination of human
trafficking cases at all Higher Prosecutor’s Offices in Serbia was appointed. However, main shortcomings of the national
referral mechanism in Serbia is the weakness of the procedures, both for identification and for handling of identified victims;
victims are expected to report the crime and witness before the court, but their protection and their safety need to be
improved. In addition, trials are lengthy and victims are summoned to give statements over a long period of time, sentences
for traffickers are around prescribed minimum and a small number of them end in jail. The EC Progress Report 2012 states
that Serbia remained a country of origin, transit and destination for trafficking in human beings. Government of Serbia has
taken some concrete steps which have been discussed through public debates in February 2013 to implement the action
plan of the national strategy to combat human trafficking but the effective compensation and social inclusion of victims,
through a special fund, in line with existing EU standards remains to be ensured. These issues are tackled by the new
Strategy for prevention and suppression of human trafficking and protection of victims which adoption is expected in 2013.
The total length of the border of the Republic of Serbia is 2,351.7 km. The Republic of Serbia borders with: Hungary,
Romania, the Republic of Bulgaria, the Republic of Macedonia, the Republic of Albania, Montenegro, Bosnia and
Herzegovina and the Republic of Croatia. The total number of border crossings is 94.
The Strategy for the Integrated Border Management (2012) stipulates establishment of the Coordinating Body and the
Operational Working Group for Coordination of Integrated Border Management at the Central Level with its six inter-sectorial
sub-groups. Within the Ministry in charge of home affairs, an information system for the border control, with the use of the
automatic document reading, has been developed and operates at the border crossings.
However the impact of border control measures can only be assured if there is integration of all border services into one
intelligence-gathering and implementation system (border police, customs, phyto-sanitary and veterinary inspections)
covering all the services involved.
As of 2009, The Republic of Serbia faces a new form of illegal migration – secondary illegal migration of nationals of
countries of the Afro-Asian block through the Western Balkan countries, from Greece as the starting point. A multiple growth
trend is caused by the progressive pressure of illegal migration at the Greek-Turkish border, which continued in 2012. In
comparison with 2011, when 10,383 persons were prevented from illegal border crossing (an increase of 459% compared to
2010), in 2012 there were 14,793 people who were prevented (an increase of 42.5% compared to 2011). The largest
number of illegal crossings was prevented on the border with the Republic of Macedonia (8,348), which is the entry point
107Official Gazette of the RS, No.20/2009
57
into the territory of RS. Irregular migrants transit through the state territory in an attempt to illegally cross the border with
Hungary, Croatia and Romania or to stay in the territory of the Republic of Serbia for a certain time and abuse the right to
asylum. The most frequent in this category of illegal immigrants are the citizens of Afghanistan, Pakistan and Somalia.
From April 1, 2008, when the Law on Asylum108entered into force, there was a constant growth of evidenced asylum seekers
in Serbia. In 2008 there were 77 requests recorded, 275 in 2009, while the total number of registered asylum seekers in
2010 was 522exceeding to 3,134 in 2011. Until 2011, the existing capacity for providing accommodation and basic living
conditions were adequate but 600% increase in the number of asylum seekers has produced additional challenges for the
institutions of Serbia. In 2010 and 2011, the arrival of whole families with small children has been recorded which previously
was not the case; the number of minors seeking asylum is increasing and currently amounts to 25%; women asylum
seekers make up 15% ; while in 2011 a constant flow of unaccompanied minors asylum seekers (UMAS) accounted for 4%
of the total population. In 2011 771 persons has been provided with accommodation in the asylum centres. Until September
of 2012, 1,806 persons claimed asylum in the Republic of Serbia and 1,021 of them have been accommodated in the two
asylum centres. The EC 2012 Progress Report states that the number of asylum claims has increased. Criteria for verifying
safe countries of origin and the list of safe third countries remain to be fully aligned with the acquis.
The initial state body deciding on asylum claims is Ministry in charge of home affairs, and the final decision is made by an
independent Asylum Commission of the Government of the RS. The asylum seekers are granted a legal basis to stay and
right to be accommodated in the Asylum Centre (AC). According to the Law on Asylum persons accommodated in AC enjoy
complete freedom of movement, health protection, right on elementary and secondary education, while those outside of AC
have access to financial assistance provided by the Centres for Social Welfare. In 2012, a database of asylum seekers was
set up and ultimately, the Republic of Serbia for the first time granted refugee protection, i.e., shelter (in three cases).
Until 2011, the existing capacity for providing accommodation and basic living conditions to AS were adequate. However,
due to the sudden increase in the number of asylum seekers in 2011 (a 600% increase in the number of AS in relation to
2010), the government of RS decided to increase existing capacities by 180 places by opening another Asylum centre. Apart
from the need to increase the accommodation capacities, additional challenges have emerged, particularly in the provision
of adequate facilities for persons with disabilities, unaccompanied minors seeking asylum, pregnant women and the infirm.
Since April 2009, the reception of underage asylum seekers has been conducted in two centres (in Belgrade and in Nis) for
Accommodation of Underage Aliens Unaccompanied by Parents or Custodians for a short period during (after initial
treatment they are transferred to the two existing Asylum centres). The Centre is a separate unit, founded according to the
Decision on Social Protection Institution Network of the Government of the Republic of Serbia.109
From the point of view of UNHCR’s in order to address the shortfalls in the asylum and refugee protection system, the
national authorities in Serbia would first need to tackle the following challenges: Information flow should be improved in the
area of asylum; Organisational structures are not yet in line with Law on Asylum, the Law on Migration management has
been adopted and systematic monitoring of policies has just started.
In the past two decades, the Republic of Serbia (RS) was challenged to solve the problems of a vast number of forced
migrants. After the disintegration of the Socialist Federal Republic of Yugoslavia (SFRY), a massive influx of refugees came
to Serbia, mostly from Croatia and Bosnia and Herzegovina. According to the Official data (UNHCR and SCRM) states that
there are around 57.247refugees and 210.000 Internally Displaced Persons (IDPs) in Serbia. Following the 1999 conflict, a
large number of Serbs and members of other non-Albanian communities fled Kosovo and Metohija and sought refuge in
Southern and Central Serbia and adjacent countries. Around 210,000 IDPs, mainly residing in Southern and Central Serbia
and Belgrade, have been so far registered on the territory of inner Serbia (not including the territory of Kosovo). As a
response to the protracted Refugees situation after the 1991-1995 conflicts in Former Yugoslavia, “Joint Regional
Programme on Durable Solutions for Refugees and Displaced Persons” known as the “Regional Housing Programme”
(RHP) was initiated. It is a joint initiative of Bosnia and Herzegovina, Croatia, Montenegro and Serbia with the aim to
contribute towards resolving the protracted displacement situation of the most vulnerable refugees and displaced persons
(DPs) and it is expected that 27,000 households will benefit from it.
Although voluntary return is the best solution for refugees and IDPs, only a quarter of refugees realised a durable solution
through return. The situation is worse concerning IDPs. According to UNHCR data, only 17.000 Serbs and other non-
Albanians returned to Kosovo. It is estimated that only 5.000 persons actually achieved sustainable return. Apart from the
refugee and IDP issues, Serbia also faces problems in the field of reintegration of returnees under the readmission
agreements.
IDPs face numerous problems protecting their land, housing property and other acquired rights in Kosovo due to absence of
comprehensive administrative mechanisms for resolving these issues. Freedom of movement in Kosovo is a major
constraint for IDPs in accessing their rights as well as for the lawyers representing them. This is an additional limiting factor
108 Official Gazette of the RS, no. 108/07

109Official Gazette RS, no. 51/08
58
for which providing legal aid to IDPs in Kosovo is not the same as providing legal aid to IDPs in the rest of the Serbia. For
these reasons, international oversight and involvement remains a necessary element in the provision of legal aid to IDPs.
Reforms in the area of defence shall ensure more efficient and economically sustainable system of intervention in regard to
protect support civilians in the case of natural disaster and danger. In this regard the possibility for developing regional
coordinated programs may be assessed. The third mission of Serbian Armed Forces is a support to civil authorities in
fighting safety threats. Ministry of Defence and Serbian Armed Forces do not develop special capacities for involvement in
tasks of protection and rescue, but support civil authorities and persons in charge of protection and rescue with existing
capacity when necessary. Military Security Agency and Military Intelligence Agency perform security activities of importance
for the defence proscribed by the law for the military security services as well as with other laws. 110 The most relevant policy
document in this sector is the Strategy for the National Security of the Republic of Serbia from 2009. Terrorism, organized
crime, corruption, proliferation and trafficking with firearms, problem with the internally displaced persons and refugees as
well as the national and other type of disasters are listed as main challenges for the national security that are to be
addressed via the national security system in its wider and narrow meaning.

Based on the main strategic documents for the sector, which are presented in Annex1, sector and SWOT analysis the
following priorities for the sector have been identified:
(i) Strengthen the security of citizens through democratic, responsible and efficient police service is the main
strategic vision and key priority described in the Development Strategy of the Ministry of Interior which also defines values
and mission for the coming period up to 2016 emphasising also the need to respond to the EU enlargement requirements.
Following priority areas have also been recognized for future development: Organization and management; Security of the
individual, the community and the state; Partnerships on national, regional and international level; System of internal and
external control and transparency in work. This key priority is also based on the improvement and implementation of
strategic and normative framework for crime fighting and prevention;
(ii) Prevention and fight against organised crime, foresees the long-term trends and directions of functioning of the
organised crime structures, as well as the capacities of the Republic of Serbia for prevention and its reduction to the lowest
possible rate. According to the National Strategy on prevention and fight against organised crime the notion of organised
crime is understood as conducting criminal offences by an organised criminal group or its members. As organised crime
group it is considered a group of 3 or more persons, which exist for a certain period of time and acts in agreement with the
goal of perpetrating one or more criminal offences for which a sentence of four year or more severe sanction is proscribed,
with the purpose of gaining, directly or indirectly financial or other gain. The types of organised crime registered in Serbia are
illicit drug trafficking, extortions, kidnapping, blackmailing, human trafficking, smuggling of human, corruption, money
laundering, abuse of the official duty, forfeiture of currencies and other payment instruments, prostitution, illicit firearms and
explosives trafficking, international smuggling of vehicles’ and excise goods as well as high technology crime.
(iii) Safe community based on professional police services and cooperation aiming at reduction and control of security
challenges, to be realised through prevention, community policing, problem oriented work and partnerships with other
stakeholders. The concept of Community Policing is based on participation of citizens in police decision making process as
a modern approach of security. Strategic goals in this regard are defined in the Strategy for the Community policing aiming
to: Modern standards in the police work; Trust of citizens and communities; Continuous cooperation and partnership with the
community; Effective safety prevention; safer communities and decrease of the fear of crime; Problem-oriented approach
and Respect of ethical principles and diversities. Prerequisites for achieving these goals are education and development of
trust between the police and citizen.
(iv) A comprehensive, efficient and effective system to reduce the risk and consequences of natural disasters and
other catastrophes is a strategic priority which includes integrated emergency management in the Republic of Serbia and
contributes to increased security and sustainable development in the region. The National Strategy defines and determines
the national coordinating mechanisms and program guidelines for reducing disasters caused by natural hazards and the
risks of accidents, protection, response and recovery. The Strategy shall ensure meeting of the recommendations of the
European Union for development of the national security systems. In order to develop an integrated protection and rescue
system, greater technical innovations and equipment is needed, as well as the improvement of the infrastructure, information
and technological systems accompanied by the application of modern technology and standards of the European Union.
110The Constitution of the Republic of Serbia, Law for the Defence, law for the army of Serbia, Law for the fundaments of Regulating the Security Agencies
in the Republic of Serbia, Law for the Military Security agency and Law for the Military Intelligence Agency, Criminal Code, Law for the Criminal
Procedures and other laws.
59
Also in the Republic of Serbia there is no single number that citizens can call in a case of emergency as each emergency
service has its own emergency number and a dispatch centre. Moreover, the system for identification / location of the caller
need to be functional and the database for tracking all risks, events, emergencies and disasters have not been properly
developed. The Republic Headquarters for Disaster Management shall annually prepare and publish reports on the
implementation of the Strategy and the Report shell be made public.
(v) Sustainable Integrated Border Management that will ensure comprehensive and efficient safety and security of
movement of citizens and goods through the borders as well as securing efficient functioning of IBM will be provided through
adequate infrastructure and technical conditions, corresponding to EU standards and recommendations. Areas of common
interests to all border services will be developed and managed through further harmonised and synchronised sector
strategies, capacity building, infrastructure, equipment and information technology and telecommunications systems.
(vi) Migration management and Illegal migration is a key priority for the development of a strategically, legally and
institutionally arranged domain of migration. A planned, organized and integrated migration management implies the
monitoring of external and internal migration trends and the implementation of activities that will encourage regular
migration, while preventing illegal and irregular migration. Some of the basic elements of the migration management and
combating illegal migration are the visa policy, the integrated border management, the regulated stay of foreigners. The
precondition for the successful migration management is to ensure an effective coordination between institutions, the central
ones that are responsible for creating policies as well as for the operating ones which will conduct them as well establishing
system for monitoring of policies and measures. This key priority also contains actions to be taken in order to ensure
coordinated, timely and comprehensive response to the problem migrants
(vii) Respond to the needs of the IDP’s and refugees is a key priority for resolving their problems as it is stipulated in the
National strategy for resolving the problems of refugees and internally displaced persons 111. This Strategy is a framework for
generating initiatives and implementing activities with the goal to resolve problems of refugee and IDP issues for the period
2011-2014 and cover two target groups: a) Refugees in accordance with the Status defined by the Law on Refugees112 and
b) IDP from the territory of Kosovo and Metohija who are temporary staying in the Republic of Serbia out of the territory of
Kosovo and Metohija. This Strategy defines two directions for sustainable actions: to support the return or the integration. In
addition, the strategic goal is also to develop the conditions for the return of refugees in the Republic of Croatia and Bosnia
and Herzegovina and the institutional mechanisms for full realisation of rights in countries of origin. The second strategic
goal is to create the conditions for refugees, in particular the most vulnerable groups of refugees (individuals and families)
who decide to stay in the Republic of Serbia, to resolve their problems and to support their integration in local communities.
(viii) Fight against trafficking in human beings with special emphasis on the protection of human rights of victims is the
strategic objectives in the fight against trafficking in human beings. The vast majority of the victims, 90%, are from Serbia,
while the others are from the Western Balkan and former Soviet Union Countries. The MoI data shows that the most
frequent occurrence in human trafficking is sexual exploitation. Trafficking humans is also used for the purposes of labour
exploitation, to use the victims to commit criminal acts, forced begging and forced marriage. Considering the typologies and
the method used for this type of crime it is not always an organized crime activity which can also be prevented by other
priorities for this sector as defined above. These priorities are grouped into five areas: institutional framework, prevention,
assistance, protection and reintegration of victims, international cooperation and monitoring and evaluation of results.
In order to support national strategic objectives presented above and to focus international assistance on the most pressing
issues, the NAD sets out two following priorities:
NAD Priority 1 Improving of overall security and fight against crime in line with National Strategic priorities for the sector as
identified in (i), (ii), (iii), (iv). The NAD envisages attainment of this priority by focusing and implementation of strategic and
normative framework for crime fighting and prevention and by strengthening the capacities of state authorities to efficiently
process cases of organised crime, corruption, money laundering and terrorism financing, terrorism, war crimes and other
criminal acts.
NAD Priority 2 Ensuring integrated border management and management of migration flows is in line with National
Strategic priorities for the sector identified in (iv), (v), (vi), (vii). This NAD priority directly addresses key themes covered by
the integrated border management national priority. More specifically, the measures referring to this priority will target
support to: implementation of the IBM Strategy and to enhancing integrated border mechanisms. In the first case,
improvement of the organisation and management of borders by developing operational action plans of relevant border
services and securing coordination in their implementation will be realized. The second measure will focus on improving
migration management capacities of all competent institutions on national and local level including those responsible for
providing education, health protection, employment, social welfare and administrative (such as issuance of documentation)
services. Improvement of mutual horizontal and vertical coordination of all institutions involved in Migration Management as
well as strengthening their capacities
111 For the period 2011 – 2014

112 Official Gazette of RS, N°18/92, 45/02 –SUS and 30/10
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The EU Strategy for Danube Region addresses a wide range of issues and proposed areas of cooperation that are divided
among 4 pillars out of which the “Strengthening the Danube Region” corresponds to the sector. Priority areas relevant for
the sector are “To step up institutional capacity and cooperation” and “To work together to promote security and tackle
organised and serious crime”.
Also, Serbia participates to the Regional Cooperation Council. RCC developed Strategic Document on Justice and Home
Affairs 2011-2013 and the Action plan.113 RSD converges and integrates the most relevant, strategic targets and activities of
several programmatic documents (strategies, action plans or policies), from the region.114
The European Partnership with Serbia of 18 February 2008 (2008/213/EC) identifies a set off short-term and medium term
priorities in the area of in the justice, freedom and security related to Visa, border control, asylum and migration; Money
laundering; Drugs; Police; Fight against organised crime and terrorism. Under Fight against organised crime it is stated: a)
“Adopt outstanding legislation, b) develop the capacity to seize assets, c) implement a national strategy against organised
crime and d) strengthen criminal intelligence; Continue the fight against trafficking of human beings, including
implementation of the strategy for prevention of trafficking and provision of adequate assistance and protection to victims”.
The short-term priority within the Justice, freedom and security (Visa, border control, asylum and migration) highlights the
importance to implement the Integrated Border Management (IBM) Strategy and strengthen cooperation between the IBM
agencies. The medium-term priority is to continue to strengthen the capacity of the Border Police and the Customs Service,
improve facilities at the border crossing points and enhance cooperation with the neighbouring countries in the fight against
human trafficking.
The Stabilization and Association Agreement (Article 6), states “Serbia commits itself to continue to foster cooperation and
good neighbourly relations with the other countries of the region including an appropriate level of mutual concessions
concerning the movement of persons, goods, capital and services as well as the development of projects of common
interest, notably those related to border management and combating organised crime, corruption, money laundering, illegal
migration and trafficking, including in particular in human beings, small arms and light weapons, as well as illicit drugs. This
commitment constitutes a key factor in the development of the relations and cooperation between the Parties and thus
contributes to regional stability”. Also, Article 80 – Reinforcement of institutions and rule of law (Title VII, Justice, Freedom
and Security,) states that cooperation shall be established with the aim of strengthening the independence of the judiciary
and improving its efficiency, improving the functioning of the police and other law enforcement bodies, providing adequate
training and fighting corruption and organised crime. Other relevant articles are: Article 82 - Visa, border management,
asylum and migration; Article 83 - Prevention and control of illegal immigration, readmission; Article 84- Money laundering
and financing of terrorism; Article 85 - Cooperation on illicit drugs; Article 86 - Preventing and combating organised crime
and other illegal activities; and Article 87 - Combating terrorism.
A flagship initiative of the Sarajevo process, Western Balkan Regional Housing Programme demonstrates the renewed
commitment of four partner countries (Serbia, Montenegro, Croatia and Bosnia and Herzegovina) to provide all necessary
support required to end the displacement of refugees, returnees and displaced persons and to enable them to live as equal
citizens, without discrimination. The commitment was confirmed during the Ministerial Conference held in Belgrade in
November 2011 when Joint Ministerial Declaration was signed for “Joint Regional Programme on Durable Solutions for
Refugees and Displaced Persons”.
With respect to fighting threats to public security and/or order as well as with respect to prevention, detection and police
investigation of criminal offences countries SEE countries have adopted the Police Cooperation Convention in Southeast
Europe.115
In addition under the auspices of the Southeast European Cooperative Initiative (SECI) the SEE countries have adopted the
Convention of the Southeast European Law Enforcement Centre 116 that establishes coordinated support to the member
countries in investigations and crime prevention.
B2.3. EU Agenda
Europe 2020
113 The Strategic Document was endorsed by the Ministers in Budva, Montenegro, on 18 March 2011.
114 See: http://www.rcc.int/docs/0/183/regional-strategic-document-on-justice-and-home-affairs-2011-2013-and-the-action-plan-for-its-implementation
115 Vienna, 5th of May 2006,
116 Bucharest, 10th December 2009
61
The Communication from the Commission on Europe 2020 sets out a strategy for smart, sustainable and inclusive growth.
The flag ship initiative European Platform against Poverty and Social Exclusion is stressing the need to closely integrate
social inclusion and antidiscrimination, addressing among other issues, migration management, integration of migrants,
upholding human rights and antidiscrimination policy.
The aim of the European Union’s home affairs policy is to create an area without internal borders where people may enter,
move, live and work freely, confident that their rights are fully respected and their security assured. The strategic framework
is based on the Tampere (1999-04), Hague (2004-09) and Stockholm (2010-14) programmes – An open and secure Europe
serving and protecting citizens, and contains several strategies and policies tackling individual safety and security issues:
EU Internal Security Strategy “Towards a European Security Mode”, European Security Strategy (2003), Strategy for
effective implementation of Charter of fundamental rights, Strategy on the external dimension of the area of freedom,
security and justice (2005), Towards a general policy on the fight against cybercrime (2007), EU Drugs Strategy (2005 –
2012), EU Strategy towards the Eradication of Trafficking in Human Beings (adopted in 2012), Directive on sexual abuse,
sexual exploitation of children and child pornography, Cyber Security Strategy (2013),Third Anti-Money Laundering
Directive (adopted in 2005), Revised Strategy on Terrorist Financing (adopted in 2008) etc. Strategic framework derives
from Title V of the Treaty on the Functioning of the European Union, which regulates the “Area of freedom, security and
justice”. The EU Internal Security Strategy (“Towards a European Security Model”) sets out challenges, principles and
guidelines for dealing with security issues within the EU. To implement this strategy, the Commission adopted the
Communication "EU Internal Security Strategy in Action - Five steps towards a more secure Europe" in November 2010. It
proposes 41 actions targeting the most urgent security challenges that Europe is facing. The European Union’s (EU)
priorities for developing an area of justice, freedom and security during the period 2010-14 are set out in the Stockholm
Programme that provides a roadmap for European Union (EU) work in these areas. 117
Chapter 24: Justice Freedom and Security
EU Home Affairs policy is grouped under two fields: migration and asylum, and internal security. The first includes issues
related to legal and irregular migration, integration, readmission and return. The second encompasses the fight against
organized crime and terrorism, police cooperation and the management of the EU's external border with a view to improving
the protection of citizens and the fight against organised crime and terrorism. Within the spirit of solidarity, the EU strategy
aims to enhance police and judicial cooperation in criminal matters, as well as cooperation in border management, civil
protection and disaster management. The EU internal security strategy consist of a pro-active, horizontal and cross-cutting
approach with clearly divided tasks for the EU and its countries focused on the fight against cross-border crime, such as
trafficking in human beings; sexual abuse, sexual exploitation of children and child pornography; cybercrime; economic
crime, corruption, counterfeiting and piracy and drugs.
Supporting and promoting the rights of persons within the Union, tackling discrimination and inequalities and promoting
citizenship contribute to the promotion of the specific objectives and flagship initiatives of the Europe 2020 Strategy.
The NPAA 2013 – 2016 defines priorities and measures for the forthcoming period for the Chapter 24:
External border and Schengen
In regard to the border management the priorities are related to development of organisational structure and operational
effectiveness of border police at all levels of organisation in accordance with the best EU practices and standards; Updating
the curricula for specialist training of border police; Building and modernising facilities and infrastructure at border crossings,
with the goal of faster movement of people and goods, and raising the quality of border controls; and further modernisation
and improvement of infrastructure and equipment at border crossings, for the purpose of surveillance and providing state
border security as well as other societal issues such as human rights, regional Partnerships and increased engagement by
CSO. Also, it is planned to complete activities on the establishment and operation of joint contact services/centres on the
borders with neighbouring countries. Establish joint patrols and joint border crossings where the need arises.
Migration
The priorities for Migration management are completing of the regulatory framework for implementation of the Law on
Foreigners; Creating a Central data base of foreigners connected to all the authorities involved in visa issuing procedures,
residence and work permits (Ministry in charge of foreign affairs, Ministry in charge of home affairs, National Employment
Service); Issuing biometric documents for foreigners and development of a new Strategy and Action Plan to Combat Illegal
Migration; and improving the position of particularly vulnerable groups, especially social inclusion of children with disabilities
and adults with intellectual disabilities and mental health problems, as well as victims of human trafficking
Visa policy
For the Visa policy, establishment of a full visa information system that would be linked to diplomatic missions, Ministry in
charge of foreign affairs, Ministry in charge of home affairs, border crossings and area police administrations is priority.
117http://europa.eu/legislation_summaries/human_rights/fundamental_rights_within_european_union/jl0034_en.htm
62
Asylum
During forthcoming period, priority will be full harmonisation of national legislation in the field of asylum with all relevant EU
directives, as well as full implementation of all standards that apply to this area in the territory of EU member states. In
addition, full consideration will be given to expanding the existing capacities to accommodate asylum seekers, as well as to
improve the efficiency of the procedure to test the merits of asylum applications (to reduce the time required for the
processing, while improving the quality of processing of application), which would, among other things, lead to the fact that,
in the ordinary state of things, decrease risks of lack of capacities.
Police cooperation and fight against organized crime
Legal framework for the police cooperation and the fight against organised crime is planned to be completely set up by
2016, by adopting organisational structure and to develop administrative capacities, especially databases needed to
establish the NCIS and to have it implemented in at least two organisational units of the Ministry in charge of home affairs.
In relation to Cooperation in the fight against drugs planned activities are: Drafting of a strategy for supervision in the field of
controlled psychotropic substances and precursors; Amendments to the Law on psychoactive controlled substances in
accordance with Council Decision 2005/387/JHA; Amendment of the Law on substances used in the illicit production of
narcotic drugs and psychotropic substances (precursors) in accordance with Regulation (EC) No 273/2004; Drafting of by-
laws related to the Law on psychoactive controlled substances; Drafting of by-laws related to the Law on substances used in
the illicit production of narcotic drugs and psychotropic substances (precursors); Establishment and institutionalisation of a
national centre for the collection, processing and reporting; Drafting of by-laws regulating the field of drug abuse prevention,
treatment and rehabilitation; Evaluation of the National Strategy for the Fight against Drugs 2009-2013; and Implementation
of the ESPAD survey.
In the area of Customs cooperation activities are going to be focused on revision of the Strategy on Information and
Communication Technology of the Customs Administration for the period 2011–2020.
Judicial cooperation in criminal and civil matters will focus on drafting proposals of basis for negotiations and conclusion of
agreements on legal assistance in criminal and civil matters, extradition and mutual enforcement of court decisions in
criminal and civil matters with a number of other countries will be implemented in the future. The Ministry in charge of justice
will consider the possibility to reach full compliance of the Criminal Code with relevant international law sources, primarily
with acquis communautaire during the period 2014-2016. The Directorate for Management of Seized Assets will, in order to
facilitate the management of assets located outside of Belgrade, open organisational unit in Nis and Novi Sad. Moreover
Special investigative techniques should be further developed118.
Effective democratic oversight over the use of special investigative measures – (SIM) need to be established considering the
fact that SIM are used by the law enforcement agencies. In this regard the Parliament needs to develop its ability to the use
of the SIM.
The Ministry in charge of defence plans to sign an administrative agreement with the European Defence Agency and
implementation of this agreement is planned for 2014.
The SWOT analysis of the HA sector has been undertaken additional to the situation analysis presented in previous
sections, to set out the long term objectives and medium term strategic priorities and realistic and targeted measures.
 National and EU approximation strategies and other  Weak institutional cooperation and information flow for
policy documents in place fight against organised crime, money laundering, human
 Most of EU legal requirements and other international trafficking and all other areas of the sector of Home
standards addressed by country policy documents Affairs
 Specific sector plans for the police cooperation and  Lack of systematic planning documents and sub-laws
the fight against organised crime elaborated and regulations and procedures for fight against organised
planned to be completely set up by 2016 crime, money laundering, human trafficking and all other
 Sufficient and well trained personnel in place within areas of the sector of Home Affairs
118 See NPAA, page 468 and page 469
63
the sector  Absents of systematic monitoring of policy
 Existence of Strategies in the Home Affaire sector implementation
 Lack of full implementation of the criminal law
 Lack of implementation of strategic framework for home
affairs sector
 Lack of inter and intra-institutional coordination for the
implementation of the Strategic framework
 Not enough capacities for Asylum seekers
accommodation
 Inadequate professional qualification, and specialized
personnel, unpreparedness and a low level of the local
self-government capacity for prevention of the risk and
national disasters
 An acceleration of the EU accession process  Low results in fighting all forms of crimes
 Availability of financing from EU and bilateral funds  Not adequate response to emergency situation
 To develop clear organizational and coordinating  Low technical and human capacities for the border
institutional capacity within the relevant stakeholders management, for the prevention and the fight against
structures responsible for the fight against organised crime.
crime  Increased number of refugees as result of the extension
 To develop clear organizational and coordinating of the Schengen border
institutional capacity within the relevant stakeholders  Increase of illegal migrants
structures in the areas of the Home Affairs sector  Insufficient capacity in the neighbouring countries that
 To enhance competences for the efficient have not started the process of EU integration
implementation of the policy and legal framework of  Unclear legal framework for coordination of the
the relevant stakeholders organised crime investigations
 Established sustainable financing of an integrated
protection and rescue system
 Improved functional cooperation of protection and
rescue system entities at the national and local level
To reflect the above and guide assistance programming the overall objective is formulates as follow:
Enhance safety and security at the individual level, different social groups and communities and the state
This overall objective is based on further promotion of a safe and secure environment as necessary precondition for the
economic, cultural and social growth. To pursue this, a comprehensive, coherent and effective response is needed to
address the safety and security challenges. Based on two Home Affair priorities the focus is put on increasing effectiveness,
harmonization of sector strategic and legal frameworks, integration and coordination of sector measures and approaches.
Priority 1: Improving the overall security and fight against crime
To achieve this priority an overarching precondition needs to be met: the legal and strategic framework in the sector needs
to be improved, and institutional organisation and coordination strengthened. To provide a secure and safe environment,
especially at the individual level as well as different social groups and communities, an efficient and effective response is
needed in addressing the threats of serious and organized crime, money laundering and terrorism financing, terrorism,
cybercrime, trafficking in human beings and other threats and swift respond to emerging crises caused by man-made or
natural disasters.
Priority 2: Ensuring integrated border management and management of migration flows
Improve operational effectiveness of border police and related services at all levels, with the aim of fostering movement of
people and goods, but also securing safety and protection from all cross-border criminal activities which could jeopardize
safety and stability in the region. The management of migration flows and security threats present challenges that are going
to be addressed by ensuring efficient functioning of integrated border management. Comprehensive, coherent and effective
measures are going to be implemented to properly address the challenge of migration and address illegal migration. Also,
more protective and efficient Asylum System will be set-up and measures implemented with the respect fundamental rights
and needs of all migrants (including IDPs, Refugees and Returnees).
64
Priority 1: Improving the overall security and fight against crime

Measure 1.1: Improving and implementing strategic and normative framework for crime fighting and prevention
This measure will support prevention and fight against crime by further aligning of the policy and legislative framework with
the Chapter 24 of the Aquis, its effective implementation and further approximation with other international standards. It will
be realized through strengthening institutional capacities for strategic planning and development of a coherent strategic
framework within the ministry in charge for home affairs, as well as advancing implementation of the strategic and legal
framework for the prevention and fight against crime. This measure will also support implementation of Action plans, both in
human and technical terms, through the system for monitoring, evaluation and reporting. Also, it will strengthen the
capacities of relevant ministry in charge for home affairs organisational units directly responsible for the implementation of
the above. This measure will support development of the efficient coordination and cooperation within the ministry in charge
for home affairs and related institutions and bodies, as well as establishing an efficient monitoring of the implementation of
the strategies and laws. The framework Strategy for this measure is the Development Strategy of Ministry of Interior (2011 –
2016) with the Action Plan for the implementation of the Strategy.
Measure 1.2: Strengthening the capacities of state authorities to efficiently process cases of organised crime,
corruption119, money laundering, terrorism financing, terrorism, war crimes and other criminal acts
These measures will strengthen legal and institutional capacities, in order to carry out complex investigations and improve
performance in combating all forms of crime. Special attention should be given to, proactivity, more efficient information
exchange, creation of a national Criminal Intelligence System, strengthening of analytical work, improving forensic capacities
for crime scene investigation and forensics analyses, improving capacities for financial investigation, risk assessments,
cybercrime, crime statistics, crime mapping, data collecting and processing, and establishing uniformed databases in order
to develop ILP-Intelligence-led Policing as a policing model built around the assessment and management of risk. Moreover,
ILP should be connected to Strategic decision making and Long Term planning. The measure should improve coordination
between all relevant stakeholders, including those within the ministry in charge for home affairs. As mentioned above,
according to the National Strategy on prevention and fight against organised crime the notion and the types of organised
crime are determined as conducting criminal offences by an organised criminal group or its members, and organised crime
group it is considered a group of 3 or more persons, which exist for a certain period of time and acts in agreement with the
goal of perpetrating one or more criminal offences. Specific requirement according to the Criminal code is a sentence of four
year or more severe and the purpose of gaining, directly or indirectly financial or other gain. All this material elements will
need to be accordingly applied within the clear procedure for investigation and prosecution, acquiring for further institutional
and legislative developments.
Measure 1.3 Strengthening the capacities of police, state authorities, local municipalities, minorities and civil
society for the comprehensive and efficient protection of human and minority rights, safety and security of citizens.
This measure will ensure strengthening of Community Policing in the Republic of Serbia through development of police
competences, capabilities and ethics in respecting human rights, diversities and professional and lawfully action;
Establishment and development of partnerships with local communities’ and their inclusion in solving safety issues; Joint
development of prevention and problem-oriented work of the police and the community. Through the implementation of the
Community Policing Strategy with Action Plan and improved professional knowledge, conditions will be created for the new
police culture to act proactively and ensure the safety of the community by respecting the view of citizens. This measure
include also: the development of prevention for the overall security protection of children, students, women and other
potential victims of violence in the family; minority groups and other vulnerable groups; the efficient prevention and fight
against violence in public and sport events; development of the method of Problem oriented work of the police; the efficient
control of police authorities (during arrests and detention), the development of professional and ethical police capacity
building with the goal of strengthening the professional integrity and responsible police work.
Measure 1.4: Enhancing capacities of state authorities for the efficient reaction in emergency situation and effective
protection of citizens
This measure will continue to develop and support implementation of the efficient and effective integrated protection and
rescue system in emergency situations, trough reduction of risks and consequences of natural disasters and other
catastrophes, in local, national and regional level. The measure will: strengthen identification, assessment and monitoring of
the risks and enhance early warning by developing and implementing standards and assessment methodology for the
identification of risks from natural disasters and other catastrophes in line with EU recommendations120 for development of
Refer to Justice Priority 1., Measure 1.3

119
By virtue of its Council Decision 2007/779/ЕЗ, the European Union established a Civil Protection Mechanism of the EC (hereinafter referred to as: the
120
Mechanism). The Mechanism is aimed at facilitating cooperation in civil protection emergency assistance interventions, when preparedness of the country
65
the national security systems: the establishment of institutional, organizational and personnel requirements for implementing
protection in emergency situations; providing well-trained personnel; establishment and training of the existing fire and
rescue units establish 112 emergency call system and support reorganization of monitoring, early warning alert system, as
well as reduce risk factors by improving methods for the forecasting assessment and socio-economic analysis of multiple
risks; and establish efficient emergency reaction at all levels. This measure will support building of the mechanism for inter
institutional coordination in quick response to the emergency situations, especially of all key stakeholders, such as Ministry
of Defence, as well as enhancement of their capacities related to emergency response mechanisms. Further development of
the procedures for weapons and munitions control and implementation of activities for cleaning unexploded ordnance,
storage and destruction of explosive devices.
Priority 2: Ensuring integrated border management and management of migration flows
Measure 2.1: Enhancing integrated border management (Implementation of the IBM Strategy)
This measure will contribute to the implementation of regulatory framework harmonized with EU models, standards and
recommendations, as well as with recommendations for Western Balkans 121, in order to secure safe and protected borders
and suppress all cross-border criminal activities which could threaten safety and stability in the region. The measure will be
focused at improvement of the organisation and management of borders by developing operational action plans of relevant
border services and securing coordination in their implementation – reorganisation of border services and development and
implementation of joint risk assessment. It will harmonize the existing administrative procedures, develop the missing ones
for joint operation of border services in regular operation and in emergency situations and ensure their practical
implementation. The measure will also contribute to the development of the system for planning of personnel in border
services, adapt existing training models to training programmes of border services in EU member states and implement the
training program. Also, measure will ensure synchronized development of the telecommunications and information
technologies in the part relating to the support system of integrated border management. The impact of border control can
only be assured if there is an integration of all border services into one intelligence-gathering and implementation system
(border police, customs, phyto-sanitary and veterinary inspections) covering all the services involved.
Measure 2.2: Improving migrations management mechanisms
This measure will support further capacity building in the area of migration management and will focus on coordination of all
relevant institutions, contributing to the improvement of migration management system in the Republic of Serbia and its full
compliance with the EU standards and coordinated migration policy implementation, from country entrance to the integration
of some categories of migrants. The focus will be on improving migration management capacities of all competent
instantiations on national and local level responsible for providing education, health protection, employment, social welfare
and administrative (such as issuance of documentation) services. Also, statistical data gathering and sharing, monitoring of
the migration flows will be improved and existing regulations will be aligned with the EUROSTAT standards. The
mechanisms for reporting towards EUROSTAT, European Migration Network and other relevant networks will be developed
as well as exchange the best practices and relevant experience. This measure will support further development of legal and
strategic framework and creation of mechanisms for successful implementation of the policies in the area of asylum, illegal
migrants and labour migrants align with the aquis with the special emphasis on creation of necessary preconditions for the
unimpeded exercise of all migrants’ rights122. To encourage synergy between migration and development a comprehensive
partnership with the countries of origin and transit of legal and irregular migration will be created as well as exchange of the
experience and cooperation with the EU MS. To prevent secondary migration additional measures for successful
reintegration of the returnees according readmission agreements will be developed and implementation capacities of the
competent institutions on local and national level, responsible for the migration management, employment, health protection,
local government, internal affairs, social welfare enhanced. Also, programs and effective mechanisms for voluntary return of
persons who stay illegally on the territory of the Republic of Serbia will be established. Provision of adequate conditions for
accommodation of the asylum seekers and persons granted protection, compliant with the EU standards in terms of quantity
and quality and establishment of the procedures and necessary infrastructure for assistance in the crisis situations caused
by the unexpected migration flows through construction of necessary facilities. Through this measure a voluntary sustainable
return of internally displaced persons from Kosovo and Metohija to the places of their origin will be supported. Also, all those
IDPs, refugees and people from readmission who have unresolved legal issues (property rights, violation of human rights,
lack of personal documents etc.) and issues related to supporting of their return will be supported through free legal
assistance. Information flow and Institutional cooperation will be improved; Organisational structures align with the Relevant
Law and systematic monitoring of policies and implementation of measures will be further developed.
Regional, Cross-Border and Transnational Themes in the Home Affairs sector
affected by a disaster is not sufficient for an adequate response due to insufficiently available resources. As Article 10 of the Decision foresees that the
Mechanism should be open for participation of future member countries,
121 The Guidelines for Integrated Border Management in the Western Balkans were first established by the European Commission (EC), 2004, updated
2007
122 See NPAA, page 459 and page 463
66
MB IPA
The priority in regional cooperation with support of instrument such as MB IPA are to create the necessary legal,
institutional, financial and human resources to ensure efficient regional police cooperation particularly in the area of border
surveillance, migration management, witness protection, fight against organized crime and emergency situations
management.
The Regional Programme “Joint Program for Priority Durable Solutions for Refugees and Internally Displaced Persons –
Regional Cooperation” is providing durable housing solutions for the displaced population and significantly ameliorated
access to their rights.
To resolve the protracted displacement situation, the four Partner Countries (Bosnia and Herzegovina, Montenegro,
Republic of Croatia and Republic of Serbia) together with the international Community, have launched a regional initiative
aimed at ensuring the voluntary return and reintegration or local integration of refugees and internally displaced persons
(IDPs) in need. As part of this regional initiative, the Partner Countries have developed a Regional Housing Programme
(RHP) which will provide durable and sustainable housing solutions to an estimated 27.000 households or 74.000
individuals. The RHP should be implemented over a five-year period, beginning in 2012. According to initial estimates, the
total investment cost of the Programme should amount to EUR. 583 million and be spread over the 5-year period.
CBC
In this sector possible areas of CBC and TN programmes are connected with the ERDF thematic objective 5. Promoting
climate change adaptation, risk prevention and management plans is related to emergency management measures with
special focus on forest fire, flags and other natural disasters and catastrophes. Fight against organized crime, such as
trafficking or cooperation between border authorities are of particular importance for implementation of thematic objective 11
– Enhancing institutional capacities and en efficient public administration with specific focus on authorities dealing with
integrated border management.
Transnational Themes
Under the Action Plan EU Strategy for Danube Region: “To support the Danube states in the administrative cooperation
and improvement of qualifications of law enforcement, judicial authorities and other services”, the priority is to improve
Danube region cooperation in areas of: Target collection and sharing of key criminal information; Identifying most significant
threats; Serious and Organised Crime Threat Assessment (OCTA); Prosecution of Internet crime (cybercrime); Customs
information; Demining in the mine-suspected areas, Managing migration.
In the context of sector approach, following institutions are responsible for the Home Affaires sector: Ministry in charge of
home affairs (including General Police Directorate, Criminal Police Directorate), Ministry in charge of justice (including
Directorate for Management of Seized Assets and State Prosecutor Office), Ministry in charge of foreign affairs, Ministry in
charge of defence (including Defence Inspectorate, Military Security Agency, Military Intelligence Agency), Ministry in charge
of finance (including the Customs Administration, Administration for preventing money laundering), Public Agencies (Anti-
Corruption Agency, Security-Information Agency), Serbian Commissariat for Refugees and Migration, and Office for Kosovo
and Metohija. The lead institution for the sector is the Ministry in charge of home affairs.
In context of sector approach, the Ministry coordinates the work of all relevant institutions in the sector in regard to planning,
programming, implementation and monitoring of the Home Affairs sector measures/operations which will be supported by
EU funds and other international development assistance. Responsibility for formal submission and later implementation of
measures/operations depends of their content and responsibility of institutions involved in the Home Affairs sector.
and international assistance and to increase the efficiency and effectiveness of development assistance, additional
mechanisms have been introduced, that is to say, the Sector Working Group (SWG) for Home Affairs 123 has been
established. The SWG for Home Affairs is responsible to coordinate activities related to planning, programming and
monitoring of EU funds and international assistance, to propose relevant measures and activities and to support the
introduction of sector approach in Home Affairs sector. The functioning, management, organisation and composition of SWG
are more precisely defined by the Rules of Procedure for Sector Working Groups for the Programming and Monitoring of the
EU funds and development assistance. The institutions participating in the SWG are the Ministry in charge of home affairs,
67
Ministry in charge of justice and public administration; Ministry in charge of finance, Ministry in charge of economy, Ministry
in charge of foreign affairs, Ministry in charge of defence, Office responsible for Kosovo and Metohija, Commissioner for
Refugees and Migration and Office responsible for European integration affairs (SEIO). Members of the SWG are officially
Under the Rules of Procedure for Sector Working Groups, SEIO125 is responsible for coordination and ensuring the efficient

68
B2.7. Indicators for measuring progress
PRIORITY 1: Improving the overall security and fight against crime

Baseline Target
(2012)
2013 2014 2015 2016 2017 2018 2019 2020
incre increa incre increa incre incre increa incre Ministry in charge for home
1.1. The level of security perception by citizens % 58% OSCE-report
ased sed ased sed ased ased sed ased affairs
Tem
Posit Posit Posit porar
Positi Positiv
ive ive ive ily
1.2 The level of security according to the national ve e Annual EC Report Ministry in charge for home
Y/N asse asse asse close
institutions, Number of crimes recorded by the MoI asses assess on progress affairs
ssme ssme ssme d
sment ment
nt126 nt nt chap
ters
MEASURE 1.1: Improving and implementing strategic and normative framework for crime fighting and prevention

Baseline Target
(2012)
2013 2014 2015 2016 2017 2018 2019 2020
1.1.1. % of adopted legal acts as envisaged by the NPAA 100 100 100 SEIO annual report
% 100% 100% SEIO
measures annually. % % %
Percentage of approximation in accordance to Chapter 24 100
% XX
of the Aquis %
Republic Public Prosecutor’s
1.1.2. Number of criminal offences recorded by police Index 100 (Index
100 95 90 85 83 80 75 70 65 EUROSTAT reports Office/ Ministry in charge for
according to EUROSTAT methodology of offences)
home affairs
1.1.3. % of implementing activities from Action plan of MoI incre Incre incre increa 100 MoI – report on Ministry in charge for home
% 80%
development strategy (2011-2016) annually ased ased ased sed % implementation affairs
No of the incre regula regul Ministry in charge for home
1.1.4.. Established and effective system for monitoring 1 increa incre increa incre incre MoI annual report
Strategies ased r ar affairs
sed ased sed ased ased
MEASURE 1.2: Strengthening the capacities of state authorities to efficiently process cases of organised crime money laundering and terrorism financing, terrorism, war crimes and other criminal acts
Baseline Target Means of Institution in charge for

Indicator Unit
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification reporting
126 Positive assessment in EC progress report, screening report and monitoring report.
69
No
Statist
Statist stati
Statis ics Stati Mappi Mappi
ics Statist stics
tic metho stic ng of ng of
No metho ic for
data dolog data organi organi
statistics dolog data all
collec y colle sed sed
1.2.1. Establishing transparent record of organised crime for all y collec type Ministry in charge for home
No ted establ cted group group MoI annual report
activities types of establ ted on s of affairs
on ished on s on s on
organise ished nation orga
centr on natio nation nation
d crime on al nise
al nation nal al al
centra level d
level al level level level
l level crim
level
e
No
statistics
for all Ministry in charge for home
1.2.2. The number of prosecutions launched No RPP report
types of affairs
organise
d crime
Establ
ished
1.2.3.Number of proactive intelligence-led cases No MoI annual report Ministry in charge for home
No % transp
compared to re-actively opened cases record affairs
arent
record
eur/din Establ
No Directorate for Seized
value of assets ished
transpar increa increa increa incre Assets / Ministry of
1.2.4. Amount of assets frozen acquired transp Ministry in charge for justice
ent sed sed sed ased Justice and State
through criminal arent
record Administration
activities record
MEASURE 1.3: Strengthening the capacities of police, state authorities, local municipalities, minorities and civil society for the comprehensive and efficient protection of human and minority rights, safety and
security of citizens.

Baseline Target
(2012)
2013 2014 2015 2016 2017 2018 2019 2020
1.3.1. .% of implementation of the activities provided in the 100 Ministry in charge for home
% 0% 30% 50% 75% MoI annual report
Community Policing Strategy and Action Plan 80% % affairs
No of appointed
1.3.2. The training for policemen allocated to implement
officers who Ministry in charge for home
police work programme within community is established 0 100 300 500 700 850 MoI annual report
passed the affairs
and performed
training
1.3.3. Police stations/units working with community and No of police 0 170 MoI annual report Ministry in charge for home
70
partnerships with local communities stations affairs
Functional and efficient working with
community on
all levels
Decreasing of
the incidents OSCE research Ministry in charge for home
1.3.4 Greater trust of citizens in police force 41% 50% 55% 60% 65% 70% 75% 75% 80%
within the public affairs
security
MEASURE 1.4: Enhancing capacities of state authorities for the efficient reaction in emergency situation and effective protection of citizens

Baseline Target
(2012)
2013 2014 2015 2016 2017 2018 2019 2020
No of
1.4.1. The number of established units responsible for Ministry in charge for home
established 159 162 165 168 172 177 182 184 186 MoI annual report
emergency responses affairs
units
Ministry in charge for home
1.4.2. Respond time of emergency respond units Minutes 9,7 9,5 9,0 8,5 8,0 7,5 7,0 6,5 6 MoI annual report
affairs
1.4.3. Number of confiscated small arms and light Ministry in charge for home
No 1292 MoI annual report
weapons affairs
PRIORITY 2: Ensuring integrated border management and management of migration flows
Indicator Unit Baseline Target Means of Institution in charge for

(2012) Verification reporting
2013 2014 2015 2016 2017 2018 2019 2020
2.1. The level of illegal migrants reduced. No 20,000 decr decrea decr decrea decr decr decre decre MoI annual report / Ministry in charge for home
(2010/20 ease sed ease sed ease ease ased ased Commissioner for affairs
11) d d d d Refugees annual
report
2.2. Improved infrastructure and equipment on border- Y/N Coordina Posit Positiv Posit Positiv Posit Posit Positiv Positi Ministry in charge for home
crossings tion body ive e ive e ive ive e ve EC Report on affairs
to asse assess asse assess asse asse asses asse implementation of
impleme ssme ment ssme ment ssme ssme sment ssme EU pre-accession
nt nt127 nt nt nt nt conditions
integrate
d border
manage
ment
became
operation
127 Positive assessment in EC Progress Report, Screening Report, Monitoring Report
71
al
MEASURE 2.1: Enhancing integrated border management (Implementation of the IBM Strategy)

2013 2014 2015 2016 2017 2018 2019 2020
2.1.1. Reduced Number of recorded illegal border No 3083 decr decrea decr decrea decr decr decre decre MoI annual report Ministry in charge for home
crossings ease sed ease sed ease ease ased ased affairs
d d d d
2.1.2 number of adopted operational action plans of No Strategy Actio Report of coordinative bodies /
relevant border services for securing reorganization of for n coordinative bodies Ministry in charge for home
border services integrate Plan affairs
border adop
manage ted
ment and
adopted imple
ment
ed
2.1.3.% of number of border crossings covered by % 80% 85% 90% 95% 100% MoI annual report Ministry in charge for home
synchronized IT system affairs
MEASURE 2.2: Improving migrations management mechanisms

2013 2014 2015 2016 2017 2018 2019 2020
2.2.1. Number of signed protocols on readmission and No 26 incre increa incre increa incre Reports of MFA and
Bilateral readmission agreements ase se ase se ase MoI Ministry in charge for home
affairs
2.2.2. Harmonisation of Statistical methodology for 17745 decr decrea decr decrea decr decr decre decre Eurostat Report Ministry in charge for home
gathering data of the Migration flows with Eurostat (Eurostat ease se ease se ease ease ase ase affairs / SCRM
requirements. Report
2012)
2.2.3. Joint system for monitoring, collection, organisation Y/N Establish Adop Secure Data Statisti Stati Stati Statist Statis Migration profile of SCRM
and exchange of data on migrations is functional ed legal ted d from cal stical stical ical tical RS
grounds sub- technic relev data data data data data Annual SCRM report
legal al ant secure secu secu secur secur
acts capacit recor d red red ed ed
for ies for ds
Law Law enter
imple imple ed
ment mentat into
ation ion syste
72
m
2.2.4. Number of Councils for Migration established in No 20 20 20 20 20 20 20 20 20 Annual Report from SCRM
accordance with the Law on Migration and supported by SCRM
the budget
2.2.5. Number of Informal Collective Centres decreased No 40 36 32 28 24 20 Annual Report from SCRM
SCRM
2.2.6. Total number of resolved cases of IDP’s (legal and No 620 1100 1650 2250 2850 3450 4000 4600 5200
other according to their needs) from Kosovo and Metohija Annual Report from SCRM
SCRM
2.2.7. Number of sustainable returnees to Kosovo and No 442 200 300 300 300 300 300 300 300 Annual Report from OKiM
Metohija annually SCRM and OKiM
73
According to the ISDACON database, the Home Affairs sector has received substantial assistance from the international
donor community over the period 2007-2012, with estimated total disbursement amounting to 88.25 million EUR. Largest and
most important donor in the sector has been the EU with total disbursement within IPA component I amounting to 29.4
million EUR in the period 2007-2013.
In the seven annual 2007 – 2013 programmes, IPA component I financed projects oriented towards the introduction of
case management system in the courts and prosecution, criminal asset confiscation, reform of the penitentiary system and
strengthening of alternative sanctions, the fight against corruption, the fight against money laundering and terrorism financing
prevention and suppression of illegal migrations, improving border control standards, development of the information system
for border crossing control, strengthening of Ministry in charge of home affairs. Furthermore IPA support focused on creating
adequate living conditions and safeguarding integration of forced migrants who choose to stay in Serbia while supporting the
sustainable return of those wishing to return to Kosovo, and also on putting in place a system for monitoring legal migration
by establishing a Central database. Support was also provided on strengthening capacities of law enforcement institutions
(Criminal Police Directorate and Public Prosecutors Office) to investigate and prosecute organised crime, on improving living
conditions, securing integration and access to rights of asylum seekers and on providing legal aid and assistance necessary
for improving the access of IDPs, refugees and people from readmission to property rights, health, education, employment
and social welfare.
The Regional Programme “Joint Program for Priority Durable Solutions for Refugees and Internally Displaced Persons –
Regional Cooperation” is providing durable housing solutions for the displaced population and significantly ameliorated
access to their rights. Several Multi Beneficiary IPA project address relevant issues within Home Affairs sector with a
purpose: to promote a coordinated and harmonized use of witness protection procedural and non-procedural measures, at
regional and European level, to combat organised crime and corruption through reinforcing institutional capacity of Witness
Protection Units and other relevant agencies; to strengthen the operational capacity and capabilities of the Public/State
Prosecutors' Offices in the Beneficiaries in order to prosecute and investigate cross-border organized crime and linked cases
of economic and financial crime and corruption; to bring the Beneficiaries closer to the Community Civil Protection
Mechanism and contribute to the development of their civil protection capacities and collaborate regionally.
In addition to the above-mentioned EU IPA projects, the Home Affairs Sector has benefited from the assistance of other
donors rendered in issue-based projects by the OSCE, USDOJ and World Bank, as well as the projects of the foreign
Embassies to Belgrade, such as the UK, French, German Embassy and Norwegian Government. These project were aimed
at: Strengthening of Laboratory Examinations and Crime Scene Investigations; training professionals working in the field of
human trafficking; Promoting integrated emergency management mechanisms; improvement of the delivery of justice and
juvenile justice system, as well as institutionalisation of victim witness support service network; enhancing core capacities for
strategic planning and management; training on the new Criminal Procedure Code and on financial crime investigations;
expert assistance with drafting and public presentation of Disciplinary Rules, Code of Ethics, etc.
During the past seventeen years significant financial support, provided by various donors, mainly EU and UNHCR and
bilateral donors, was intended towards provision of housing solutions, enhancement of the livelihood, ensuring full access to
the rights of the refugees and IDP’s. Limited support was provided by UNHCR in the area of asylum system. Government of
Swiss Confederation (SDC) should support the CRS in providing psychosocial support to the asylum seekers through various
occupational activities and promotion of tolerance in local communities. Also a surveillance system shall be supplied in order
to improve security of accommodated asylum seekers.
As recommended in the Report on the “Evaluation of the effectiveness and efficiency of development assistance to the
Republic of Serbia per sector”, the programming of future international assistance to the home affairs sector should firmly link
the institutional/technical aspects of reform and support to home affairs within the context of improved quality of life.
Assistance should incorporate conditionalities for the beneficiary to develop out-reach mechanisms and to communicate the
benefits of reform to the general public. Generally, there has been less foresight and investment in determining the
capacities to ensure compliance with, and enforcement of, new legislation or policies. The financial and administrative
implications of implementing new legislation, procedures, or institutions must be in place before further funding is committed
and the Ministry in charge of finance. This also requires increased financial planning and budgeting capabilities by all home
affairs institutions to effectively manage resources and deliver policies.
74
B3. PUBLIC ADMINISTRATION REFORM SECTOR
In broadest terms, public administration reform (PAR) sector involves a wide range of public sector institutions, including the
executive power branch at the central level (ministries and bodies within ministries, special organisations, governmental
services, public agencies, public institutions, etc.), autonomous provinces, local government authorities (City of Belgrade as
a particular territorial unit, 23 towns and 150 municipalities), and public utilities and services, as well as National Assembly as
legislative form of state authority. Sector covers the on-going process of public administration reform in Serbia, i.e. a number
of areas related to ensuring effective management and efficient functioning of administration at all administrative levels,
financial management and control, and other areas that allow undisturbed functioning of public bodies (such as procurement,
information management, statistics, human resources, e-government). Public administration reform involves all levels of
government, including the process of transferring responsibilities from the central level. Introduction of indirect management
systems for EU funds is also part of this sector. Public administration reform includes also areas covered by independent
state bodies, such as the state audit, parliamentary competences, central monetary policy and banking, and the relevant
reform aspects concerning anti-corruption, protection of citizens' rights, and access to information of public importance.
The modernisation of the public administration is being addressed partly through preparation of a legal framework allowing
the introduction and putting into operation of e-government procedures. Main innovations so far concerned the introduction of
general standardised operations for payments of services; mechanisms and instruments to facilitate business start-ups,
registration and management; facilitation of tax administration and collection etc. Progress was achieved in improvement of
existing and introduction of new registers (taxpayers registry, unified address code, etc.). A range of functional analyses was
planned to be conducted in individual institutions, including the drafting of a joint methodology. This was been partly carried
out and shall be continued in the future.
With a view to promote professionalisation of public administration, activities were directed towards the upgrading of the
hiring system compared to the former period. The attention was primarily paid to the HRM system reform and the
professional development of civil servants. A new training programme for civil servants was adopted by the government in
2013 and several training courses were delivered. The training also contributed to significant improvement in EU Funds
management. However, only a small percentage of civil servants, and in particular a very small percentage of managers,
took part in training. Induction training is not organised in a systematic manner; special programme for managers is under
preparation. It is expected that according to the Strategy for professional training of civil servants in the Republic of Serbia
the Ministry in charge of public administration would take leading role in the development of the civil service training.
The recruitment and career system is not yet fully merit-based. Transparency of appointments has been enhanced; new
competency framework and career development system has been drafted and needs to be incorporated into the legal
system. Local government does not have a merit-based and professional human resources service. Selection procedures
are not applied uniformly and managers still have significant discretion when choosing candidates from lists drawn up by
selection panels following competitions. Temporary employees are still not recruited according to competitive criteria and
those contracts are allocated without internal or public competition.
In the area of administrative simplification and creating a business-friendly environment, important are the functions and
tasks concerning regulatory reform and regulatory impact assessment, performed in coordination of all bodies throughout the
process of drafting regulation. With this regards, during year 2009 a single process has been undertaken for repeal or
amending (the guillotine) of legal acts detrimental for the national economy or simply outdated and superfluous.
Nevertheless, not all of the recommendations provided to the Government of Serbia have been implemented yet, hence it is
expected that the remaining recommendations will be implemented and introduced into the existing legal system in the
forthcoming period128.
Reform measures leading towards decentralisation have so far been driven by the priority topics on the Government
agenda in certain areas (such as finances), thus leaving significant room for improvements with the view of carrying out more
systemic and comprehensive decentralisation. Administration and management capacity at local level are relatively weak
and significant disparities between persist between local self-government units (LSGs). The Law on Civil Servants does not
apply to local government employees. There is no available overview of the functions delegated to municipalities;
128 Office for Regulatory Reform and Regulatory Impact Assessment is in charge for controlling the implementation of regulatory impact assessment
throughout the whole administration, as it has taken over competences previously embedded with the Secretariat of the Council for Regulatory Reform of
the economic system of the Republic of Serbia (this Council was an ad hoc body of the Government). The Office has likewise taken over the tasks
previously performed by the Unit for implementation of the comprehensive regulatory reform (also established as an ad hoc governmental body), concerning
the monitoring of the enforcing the recommendations of this Unit. In accordance with the amended Law on Ministries from August 2013, (Article 10.) it is
envisaged also that certain competences concerning PA tasks in regulatory impact assessment are performed by the Ministry of Justice and Public
Administration.
75
responsibilities have continued to be transferred without ensuring sufficient capacity and resources at local level. Concerning
the National Council for Decentralization attempts are being made during year 2013 for the revival of its role with regards to
development and implementation of the Serbian Decentralization Strategy. It is expected that the reactivated Council shall
have more solid technical links with the Ministry in charge of local self-government which is performing professional and
administrative tasks on behalf of the Council and that this shall altogether improve the process concerning the respective
decentralization Strategy.
A series of activities have been undertaken in the area of strategic planning and coordination of public policies. The
guidelines for drafting the strategic documents were provided in the form of recommendations, and the uniform information
system was introduced for the collection of data required for the government work program. Also, the draft Methodology for
Integrated Strategic Planning was prepared, and its consolidation with the methodological instruction for elaboration of
programme budget as well as its formalization is expected in the upcoming period. Still, upgrading of strategic planning and
coordination of public policies within the Government should be considered the priority task in the forthcoming public
administration reform process. Attention shall be awarded to the strengthening of the link between political priorities and
administrative planning, as well as improving coherence of strategic planning and the budgetary planning cycle. The policy
planning and coordination system needs to be improved to steer policy development and produce consistent work plans for
the public administration.
While the legislation also requires merging the strategic planning and implementation of public policies with the budget
process within the government and in the Parliament, including mandatory three-year budget planning and disclosure of
capital expenditures, and introduction of program budgeting by 2015, the administrative capacity of the institutions to perform
effective, efficient and accountable fiscal and financial management in accordance with the improved legal framework needs
to be further strengthened at all levels of government. The Statistical Office of the Republic of Serbia (SORS) has to increase
preparations for the comprehensive delivery of national accounts data according to ESA 95 and its transmission programme.
Although SORS for two years already produces data on GDP on regional level, the issue of the regional statistical
classification (future NUTS) remains open until the political consent is reached concerning regional structure.
A legal and institutional framework for public finance management was established and is largely consistent with European
and international standards. The Government adopts every year the Fiscal Strategy for the next three budget years, defining
macroeconomic and fiscal framework, strategy of public debt management and structural reform of business and public
sector, priority fields of financing and mid-term framework of expenditures, including explicit fiscal rules. Still Serbia is facing
serious difficulties in maintaining a sustainable fiscal position. The actual budget deficit was 5.7% in 2012 compared to a
planned budget deficit of 4.25%. The general state debt was 61% of GDP in year 2012, which is far in excess of the fiscal
rule that permits a maximum debt to GDP ratio of 45%. Improvements in fiscal management are needed to fully reap the
benefits of the tight fiscal legislation.
The legal framework in the area of public procurement and public private partnership was improved. The Republic
Commission for the Protection of Rights in Public Procurement Procedures, a second-instance body in the review procedure,
has considerably strengthened its administrative and enforcement capacities, and has been given additional responsibility to
decide on complaints in relation to the award of PPPs and concessions. It needs to build a solid enforcement record, by
further ensuring that its decisions are implemented. Likewise, with the new Law on PP additional competences have been
assigned to the PPO (Public Procurement Office), and the functions of Body for centralized procurement awarded to the
AJSRB (Administration for Joint Services of the Republic Bodies). Also the enforcement record and administrative capacities
of the Budgetary Inspection of the Ministry of Finance in charge of supervision of public procurement needs to be
substantially strengthened. Intergovernmental Commission for Public Private Partnerships (CPPP) as an independent public
body was established to provide professional assistance in implementation of PPP projects and concessions. Implementing
PPPs is still very modest, and the administrative staff needs to be trained on the award of PPP contracts.
After adoption of the Regulation on Decentralized Management of EU pre-accession assistance under IPA129, Serbia
started final stages of establishment of the system for managing the European Union development assistance funds as well
as responsibilities and relations between the authorities and responsible persons regarding preparation, coordination,
implementation, monitoring and reporting on the implementation. By submitting the request for conferral of management
powers and by delivering accreditation package for IPA in June 2012, the fourth out of five stages for establishing
decentralized management of EU funds has been closed. The last fifth stage, meaning verification and conferring
management powers by EC to the Republic of Serbia to manage funds commenced in November 2012 by intervention of
verification auditors of the European Commission and continued in spring 2013 on the basis of draft verification audit report.
The estimated time for completion of all stages is six to eight months period. It is expected that by the end of 2013 Republic
of Serbia should be capable to manage IPA funds.
In the area of control mechanisms, implementing legislation on internal audit (IA) and financial management and control
(FMC) was further aligned with international standards, and the Central Harmonization Unit (CHU) continued to focus on
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Official Gazette of RS No 70/2011and 49/2012
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technical activities, especially training and certification of internal auditors. The State Audit Institution (SAI) continued to
gradually build up its capacities. It has only operated for four years and is still in the development phase, while the audit
coverage remained rather limited, but gradually expanding, with performance audits not yet started. In taxation, the biggest
progress was made in the area of operational capacity and computerization of the Serbian Tax Administration (STA), while
effective tools to fight tax evasion and fraud and reduce the informal economy need to be further developed. Good progress
was made in the area of the Customs with the adoption of new laws and continued efforts to enhance administrative
capacity, in particular in the audit and post-clearance sector.
Independent control bodies are well established and they constitute a part of the permanent administrative landscape for
keeping the government accountable. The Ombudsman’s Offices continued to be effective and have increased their
accessibility. The number of citizens’ complaints has increased and the largest number of reported violations relates to
violation of the right to good governance. The Commissioner for Information of Public Importance and Personal Data and
Protection continued to be active. Some progress has been made in the implementation of legislation ensuring access to
information of public importance. However, implementation and following the recommendations of independent control
bodies needs to be significantly improved. With this respect it is important to continue ensuring various conditions (legal,
political, organizational), that would enhance their position and performance. National Assembly, in performing its legislative,
control and electoral function, regularly reviews both on committees’ and plenary sessions, the annual reports of independent
control bodies and adopts conclusions obliging PA bodies to improve state of play in certain areas by observing
recommendations formulated in those reports. Creating mechanisms and conditions to follow-up the recommendations of
independent control bodies is crucial challenge in the forthcoming period.
The 2010 Public Expenditure and Financial Accountability Assessment (PEFA) report highlighted important challenges
which largely remain valid to date. The weakest area seems to be budget planning, including policy based budgeting and
planning for investment cycles. Important steps in this direction are being currently undertaken with preparations for program
budgeting which is legally mandated to be introduced in year 2015 for all budget beneficiaries. The report is more positive
regarding capacity and modernization of tax and customs administration. Also public internal financial control is in place, but
needs further development, capacity building, and putting more stress on management accountability. In public procurement,
lack of capacity and necessity of a better designed complaint procedure is highlighted.
Recent SIGMA Assessments also observe that there is not enough awareness of the need to support the programme
budgeting with other public management reforms and that the costing of capital projects still remains weak. It is pointed out
that the capacity for budget preparation and forecasting is insufficient. The SIGMA findings also stress that there is not
enough time in the current budgetary procedure for the National Assembly to properly review the budget submission, nor is
their sufficient technical capacity to do so. There is also a lack of feedback on how the findings from various types of financial
controls are further used in addressing the recognized systemic shortcomings. Overall, SIGMA still emphasizes the lack of
coherence between different strategies and policies, including the preparation and implementation of the PAR Strategies.
The EC 2012 Progress Report concludes that, overall, public administration reform is proceeding at a slow pace, and lists a
number of challenges. The legislative framework needs to be completed and fully aligned with international standards.
Implementation of the existing laws and public administration reform strategy needs to be improved. Merit-based recruitment
and promotion systems should be developed and implemented. The follow-up of the recommendations of independent
control bodies needs to be stepped up.
As parts of PAR policy are directly linked to the government’s priorities set in the context of the current economic crises, it is
not surprising that first-and-foremost the ‘public administration’ must reduce bureaucracy and eliminate unnecessary state
authorities and inefficient state expenditures. Also the recent Fiscal Strategy announced structural measures serving to limit
the rise of wages and pensions, as well as the standardization of rules for wage establishment in the entire public sector. It
also counts on rationalization of the existing number of employees in government agencies and public services at republic,
provincial and local levels, principally in education, healthcare, public agencies and local administration. The draft new PAR
Strategy and Action Plan take those points seriously into consideration.

Based on The draft Public Administration Reform Strategy, other strategic documents for the PAR sector as presented in
Annex1, notably the Fiscal Strategy 2014-16, and the sector and SWOT analyses, the following 5 priorities for the PAR
sector have been identified as those best aggregating the multitude of national objectives:
(i) Enhancement of Efficiency and Effectiveness of Public Administration – This broad priority includes
organizational measures to improve the processes within the administration, stepping-up of decentralization process,
reducing public expenditure for administration, as well as the reduction of administrative burden for people and
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business. Optimization of administrative procedures and elimination of unnecessary administrative barriers may require
the enactment of new laws, but also the upgrading of existing legal regulations and implementing the appropriate
organizational measures, together with the broadest possible use of modern IT to support the acceleration and
streamlining of the procedures and strengthening of operative capacities of the public administration. To improve
administrative decision-making, it is necessary to ensure appropriate training in the professional development of public
administration employees. The streamlining of such administrative procedures at the level of the central administrative
system, system of local self-government, and public services will contribute to creating the environment that will be
favourable for running business and promoting the private investments. As regards improvement of the vertical
organizational structure of the PA system, the Republic of Serbia Constitution provides the possibility to legally entrust
certain activities, through public authority, to “companies, organizations and individuals”, meaning that within the de-
concentration process after completing the appropriate functional analysis, certain activities could be transferred to
private law entities (upon appropriate verification by the public administration bodies), while certain activities could be
entrusted to the private sector. Beside this, detailed analysis of the status of wide range of public administration bodies
should be made to determine appropriate organizational forms on central and local level of administration system. In
respect with the operation of the State Administration system, the crucial issue is to ensure appropriate organization of
the system at the central level, and to connect and synchronize the performance of the State Administration system at
both the central and sub-national levels. Thorough legal and status analysis of organizational forms among the State
Administration bodies should lead to improved organizational structure of the public administration system by arranging
the existing organizational forms and consistent control of establishing new organizational structures in the whole PA
system. Apart from decentralization efforts, achieving a more balanced development of regions is the priority task
shared by all levels of administration. This can be achieved by determination of the regional development role in the
process of planning, designing, coordination and enforcement of public policies; improvement of regulations in order to
stimulate regional growth aimed at overall socio-economic sustainable development; improving coordination and
enforcement of public policies on the local level and between central, regional and local level.
(ii) Professionalization and Modernization of Public Administration – Here the efforts should involve increasing
capacity of public administration at all levels of government, spreading the use of modern e-government solutions, and
depoliticizing the process of administrative appointments and decision-making, but also improving the professional
development system. Further development of the HRM system is one of the most important activities and priorities in
the process of public administration reform. It is accordingly crucial to ensure the continuation of HRM system
development in the administration, first of all by way of further de-politisation in the civil servants' system and full
implementation of the “merit principle“ by introducing the basic responsibilities of civil servants, in respect to hiring and
promotion. Beside the development of the civil service system at the central level, the proper functioning of the public
administration system also requires the alignment and enhancement of HRM and professional development in the
entire public administration system. A sound civil service system requires the aligned and equal status of employees at
all levels of public administration in respect with the professionalization process. It is also necessary to ensure
profesionnalisation of public enterprises, in accordance with the principles of corporate governance, which includes
improved financial reporting as well as training on corporative management and licensing the directors and members of
boards of directors. The use of information and communication technologies (ICT) in the process of PA system
operations is closely related to the enhancement of efficiency and effectiveness of the public system as a whole. In
particular, the ICT supports the development of the PA model where all the organizational systems cooperate in order
to ensure better fulfilment of their functions or the set goals. It is provision of technical support for quality administrative
decision making at all levels of the public administration system. The main challenges in e-Government development
are not technical (even though this aspect should not be neglected), but primarily refer to the change in culture and
understanding among the state and/or public and legal bodies, and among public servants and citizens. This requires
coordinated action at the level of the state and individual institutions, with consistent implementation of several key
aspects of planning and implementation of this process including adoption of new strategy and action plan for
development of e-Government.
(iii) Improvement of Strategic Planning and Policy Coordination – The process of strategic planning and creation,
coordination and implementation of public policies at the central, regional and local level, should be enhanced and
further developed, as well as its connection with the budget preparation and implementation, due to the relevance of
these processes for the overall functions of the state and their impact at all levels of administration. This priority refers
to the improvement of strategic planning at the central level; introduction of Sector Approach; enhancement of creation,
coordination and implementation of public policies at the central level and between the central, regional and local
levels; connecting these processes with the public finance processes (e.g. in budget preparation and execution);
improving control and monitoring processes for enforcement of public policy; coordinating implementation of public
policies at the central level and between the public administration and/or local self-government and various
organizational forms at which the public interests are achieved and public authority performed (such as various
councils, commissions, etc.).
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(iv) Improvement of Public Finance Management – Fiscal Strategy puts strong priority on deficit reduction through
adequate changes in tax policy and through fiscal adjustment on the expenditure side. Fiscal consolidation on the side
of revenues envisages an increase of direct taxes (profit) and taxes payable on consumption (VAT, excises). The
expenditures policy will be directed towards lowering the relative share of current public spending through limiting the
rise of wages and pensions as the largest categories of public expenditures, and by relative reduction in discretionary
expenditure categories. The growth of the central government debt should be decelerated and, in the long run, the
level of debt should be brought down to about 45 % of GDP. Beyond these general fiscal rules, this priority also has a
broader meaning of enhancing efficiency and effectiveness of public finance by establishing connection to the system
of strategic planning and preparation, coordination and implementation of public polices; development and introduction
of programme budgeting; improved transparency, efficiency and effectiveness of the public procurement system;
improvement of regulatory framework of financial management and control; improvement of efficiency, effectiveness,
capacities, working conditions and organisation of financial control, internal audit and the Central Harmonisation Unit.
Improvement of local public finance management and responsibility is of crucial importance here, as the local
governments are responsible for 70% or more of PA services to the citizens. This shall be ensured by way of limiting
growth of employment, salary and subsidies in LSGs, increased efficiency of services rendered by LSGs through larger
investments in local development, also by delegating certain competences from the Republic to LSGs in the field of
transport infrastructure, education, health care and social welfare; expedited restitution of property to local self-
governments; improvement of local business climate through elimination of administrative barriers and combating
corruption. The Law on LSG financing will be amended in order to tighten fiscal responsibility of LSGs and to establish
a link between the volume of assets being transferred to a LSG unit and the volume of original revenues collected in
the territory of that LSG. Harmonization of working practice at the local level by consistent operational standards and
processes is also necessary. Finally, reforms of enterprises in state ownership in order to raise efficiency and
professionalize the public sector should be accelerated. The reform of the sector of state-owned and public enterprises
relates to: completion of the process of restructuring of state-owned enterprises (as stipulated in Law on Privatization);
acceleration of the process of privatization and finalization of the restructuring of the remaining companies in the
Privatization Agency portfolio; improvement of the rules for corporate management of public enterprises; improved
transparency in operation of state-owned enterprises by regular disclosure of their financial results, strengthening of
managing personnel’s professionalism and of operational independence of state-owned enterprises by selection of
managers exclusively on the basis of professional criteria and licencing members of board of directors and general
managers of these enterprises in the field of corporate management.
(v) Strengthening Transparency and Accountability of Public Administration – Special attention has to be paid to
ensuring conditions (legal, political, organizational, material and spatial) to enhance position and performance of
independent control bodies. The laws regulating the status and the work of independent control bodies still have
different shortcomings and therefore efforts should be made to ensure further improvements. It is particularly important
to ensure that appropriate actions are taken by individual PA bodies following the final decisions of independent
bodies. The National Assembly should discuss in depth their annual reports and predominantly support the proposals
and amendments of regulations proposed by these bodies. Improved legal, institutional and organizational framework
for operation of independent control bodies and strengthened inter-institutional cooperation of independent control
bodies and bodies in the public administration system are key ingredients of public administration reform activities.
The current sector strategic framework and the draft PAR strategy are based on European principles of establishing legal
dependable, open, transparent, accountable, efficient and effective PA system. The vision within the new draft PAR strategy
is that PA will function professionally, efficiently, effectively, and transparently during delivering its quality public services to
meet the needs of citizens and other entities. The PA will thus provide support to the continuous and sustainable social and
economic development of the Republic of Serbia.
In order to streamline the broad array of national strategic objectives and to focus international assistance on the most
pressing issues, the NAD sets out three priorities:
NAD Priority 1 ‘Increased effectiveness and efficiency of public administration’ is in line with the first priority based on
national strategic documents, as presented above.
NAD Priority 2 ‘Strengthening strategic planning and coordination of public policies’ will contribute mainly to the achievement
of the third strategic priority as explained above.
NAD Priority 3 ‘Improved transparency, efficiency and accountability in public finance management’ will contribute to the
achievement of the fourth strategic priority.
Particular goals of the strategic priorities as presented above, as well as the main weaknesses of the PAR sector, are
addressed by individual measures within NAD priorities as presented further below. Most of the issues addressed by the
second and fifth strategic priorities (HRM, capacity building, transparency, accountability and control mechanisms) are
treated as horizontal issues and addressed by several measures within or across individual NAD priorities.
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The EU Strategy for Danube Region adopted in 2011, addresses a wide range of issues and proposed areas of
cooperation that are divided among 4 pillars out of which Pillar 4 “Strengthening the Danube Region” includes the priority
area "Stepping up Institutional Capacity and Cooperation", which addresses also the PAR sector. Structures and capacity for
private and public sector decision-making need to improve, including good planning and international cooperation, and
supported by the macro-regional approach. The optimal use of resources is essential. Exchange of good administrative
practice is important to make the region safer and more secure, and to reinforce its integration into the EU. In 2010 the
Government of the Republic of Serbia adopted a decision concerning the development and future implementation of the
Danube Strategy. This decision has been adopted prior to final adoption of the strategy in order to define Serbia’s priorities
and pillars and to confirm Serbia’s strategic commitment for its effective membership in the European Union. Within its
priority areas there are several aimed at improvements within the PAR sector, inter alia: development of ICT, cooperation
between administrations on central, regional and local levels, establishment of national port directorate as a state regulatory
body in the area of port management, etc.
The European Partnership in the public administration reform area defines as one of its medium term priority to "continue
full implementation of civil service and public administration laws, implement measures to develop human resources in the
civil service, strengthen the policy-making and coordination capacity of the public administration..."
Stabilisation and Association Agreement between the EU and the Republic of Serbia, article 114. (Chapter VIII –
Cooperation Policies), dedicated to Public Administration, emphasizes that the cooperation between EU and Serbia: "shall
aim at ensuring the development of an efficient and accountable public administration in Serbia, notably to support rule of
law implementation and the proper functioning of the state institutions for the benefit of the entire population of Serbia and
the smooth development of the relations between the EU and Serbia. Cooperation in this area will mainly focus on institution
building, including the development and implementation of transparent and impartial recruitment procedures, human
resources management and career development for the public service, continuous training and the promotion of ethics within
the public administration. Cooperation shall cover all levels of public administration...”
B3.3. EU Agenda
The commitment of the EU to jobs and smart, sustainable, inclusive growth is demonstrated by its 2020 Strategy. It will
influence the reform of Public Administration in subtle ways linked to improvements in training and education, access to the
high speed broadband, improvements in social inclusion, for example for young and old people and ethnic minorities. Many
of the changes proposed by the EU 2020 Strategy require integrated action among different policy sectors and different
actors (public, private and civil society organisations). PAR sector will directly contribute to achieving EU 2020 objectives by
improving business environment and functioning of the internal market.
The required actions for legal approximation are set in the National Programme for the Adoption of the Acquis 2013-2016
(NPAA). While public administration reforms do not constitute a separate chapter within the NPAA, the draft PAR Strategy
makes reference to standards of the European Administrative Space, and of course the capacity of public administration will
have to be increased also with a view to successfully manage the negotiation and legal approximation process. Moreover,
many features of the Political criteria within the NPAA are relevant for the PAR sector, such as the sections on Constitution,
National Assembly, Government and Public Administration and the NPAA presents challenges and major planned steps
ahead. Several chapters in the NPAA do address the area of modernisation of PA as well as public finance management and
these chapters, with main direction of EU policies and main relevant acquis, are described below drawing on the NPAA as
the main reference.
Chapter 10. – sub-chapter 10.2. on Information society
The field of information society in the Republic of Serbia is primarily regulated by Law on Electronic Commerce (“Official
Gazette of RS”, No. 41/2009), Law on Electronic Signature (“Official Gazette of RS”, No. 135/2004) and Law on
Electronic Document (“Official Gazette of RS”, No. 51/2009). Although alignment with the acquis in the area of information
society is moderately advanced further alignment with the conditional access and e-commerce EU legislation is needed.
Direction of EU policies
The Digital Agenda presented by the European Commission forms one of the seven pillars of the Europe 2020 Strategy
which sets objectives for the growth of the European Union (EU) by 2020 and proposes to better exploit the potential of
Information and Communication Technologies (ICTs) in order to foster innovation, economic growth and progress. The main
direction in this area means participation of all individuals and communities in all aspects of the information society aiming at
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reducing gaps in ICT usage and promoting the use of ICT to overcome exclusion, and improve economic performance,
employment opportunities, quality of life, social participation, etc..
Main Relevant acquis
Law on Electronic Commerce: Directives 2000/31/EC, 98/48/EC, 98/34/EC, 98/48/EC, 98/34/EC
Directives regulate certain legal aspects of information society services, in particular electronic commerce, in the Internal
Market and lay down a procedure for the provision of information in the field of technical standards and regulations. The Law
on Electronic Commerce is generally aligned with some amendments still pending.
Law on Electronic Signature and Law on Electronic Document: Directive 1999/93/EC
According to NPAA it is planned to determine a national trusted services list, develop National framework of interoperability,
legally regulate registered electronic mails, commission of payment fees and debit cards fees (envisaged to adopt Law on
Payment Services and Electronic Money) for the purpose of further harmonization with EU legislation. The Statistical Office
of the Republic of Serbia is planning to continue conducting regular annual research on use of ICT in the Republic of Serbia,
in households/individually and in companies which have been regularly conducted from 2006 and both were conducted also
in 2012 and are fully harmonized with the basic Regulation (Regulation (EC) No 808/2007/EC and other regulations that
represented amendments).
Chapter 17: Economic and monetary policy

The Republic of Serbia has established a legal framework consisting of ten system laws 130 that regulate economic and
monetary policy, banking and tax system. The amendments to the Law on the National Bank of Serbia were adopted in
year 2012. Other system laws subject to harmonization in the area of economic and monetary policy are mostly aligned with
the acquis.
The Government adopts every year the Fiscal Strategy for the next three budget years, defining macroeconomic and fiscal
framework, strategy of debt management and structural reform of business and public sector, priority fields of financing and
mid-term expenditure framework, including explicit fiscal rules.
The National Bank of Serbia (NBS) adopts every year the Monetary Policy Programme which contains basic targets and
tasks of NBS for the next year, in accordance with the Memorandum on Inflation Targeting as Monetary Strategy and
agreement of NBS and Government on Inflation Targeting (since 2009), as well as Memorandum of NBS of targeted inflation
rates for mid term.
In the pre-accession phase of the EU integration, the economic and monetary policy will be defined in the mentioned
documents that do not have the force of a law. Drafting of these documents is consistent with the practice of EU countries
and proved to be efficient in the creation of predictable economic and monetary policy framework in the medium term.
Economic policy: Candidate countries are expected to meet economic criteria established by the Copenhagen European
Council (1993) and strengthened by the Madrid European Council (1995) as regards the existence of a functioning market
economy and the capacity to cope with competitive pressure and market forces within the EU. In the period 2014-2016
(NPAA) Serbia will continue to participate in pre-accession economic policy surveillance by adopting Fiscal strategy and
preparing Pre-accession Economic Programme. In this respect the capacity for economic policy formulation and coordination
needs to be improved and aligned with the EU acquis.
Monetary policy: In the period 2014-2016 (NPAA) the NBS will continue, to the possible extent, further harmonization of its
monetary policy operations and instruments with the ECB operations and instruments defined in ECB guidelines on
monetary policy instruments and operations in Eurosystem (ECB/2001/14 and ECB/2012/25) and other relevant EU
regulations. Final alignment of monetary instruments and operations is related to pre-integration of NBS monetary operations
in Eurosystem.
Community law, including European Central Bank Guidelines (ECB/2000/15, ECB/2006/4, ECB/2008/5, ECB/2009/11 and
ECB/2003/12) regulate management of foreign exchange reserves of the ECB and central banks of domicile countries. The
130the Law on the National Bank of Serbia, the Law on Banks, the Law on Tax Procedure and Tax Administration, the Law on Budget System, laws
regulating fiscal, customs and financial system, the Law on Public Debt, the Law on Public Enterprises, the Law on Public Procurement, the Law on the
State Audit Institution, etc
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NBS regulations on foreign exchange reserves management will be further (but not completely) aligned with the ECB
Guidelines.
Chapter 18: Statistics

Official statistics of the RS is governed by the Law on Official Statistics131 while the major statistics actions are governed
by special laws that regulate population and housing census and agricultural census (from 2012).
The main objective of official statistics is to establish and maintain national accounts and government statistics according to
International System of National Accounts (SNA) and European System of Accounts (ESA), as well as statistical reporting on
key economic aggregates and social development indicators, including agriculture and regional development.
Main Relevant EU acquis
Official Statistics: Council Regulation (EC) No 322/97 on Community statistics, (EC) No 223/2009 and (EC) No 1059/2003
The Law on Official Statistics is harmonised with the EC regulations on community statistics, as well as the Fundamental
principles of official statistics, UNSCE 1994 and European Statistics Code of Practice. According to the NPAA, Serbia is
expected to adopt new legislation for keeping of the register of territorial units, to be harmonized with (EC) No 1059/2003
(NUTS classification).
Chapter 22: Regional policy and coordination of structural instruments
The legislative framework includes the Law Ratifying the Framework Agreement between Serbian Government and
European Commission on rules of cooperation concerning EC-financial assistance to the RS under the IPA ; the Decree on
the Decentralised Management of EU Pre-accession Assistance under the IPA and the Law on Regional
Development
After adoption of the regulation on decentralized implementation system (DIS) for managing the EU development assistance
funds under the IPA, Serbia started final stages of establishment of the system for managing the EU development assistance
funds. It is expected that by the end of 2013 RS should be capable to manage IPA funds.
The Law on Regional Development is in process of amending to provide establishing of a system to manage national
regional development policy to be complementary to the system of planning the national budget and to the system managing
EU pre-accession funds. On passing this Law the following will be taken into consideration: provisions from Framework
Agreement, Framework Regulation and EC Regulation (EC) No. 718/2007 on implementation of Council Regulation (EC) No.
1085/2006 on establishing IPA. Also taking into consideration that in 2013 a Council Regulation (EC) on establishing IPA II
related to period 2014-2020, relevant provisions of this act will also be considered. The Law on Managing Programs
Financed from the IPA shall be adopted to regulate ways of managing programmes financed by pre-accession assistance
funds and determine responsibilities and the relation of bodies and their responsible persons concerning the programming,
implementation, monitoring, and reporting on program implementation. Finalization and adoption of law is planned after
adoptions of new IPA Regulations for financial perspective 2014-2020.
Chapter 32: Financial control

The legislative framework includes the Law on State Audit Institution132, the Law on the Budget System133 and
implementing bylaws that are regulates internal financial control.
The SAI is a full member of the International Organisation of Supreme Audit Institutions - INTOSAI since November
2008 and the European Organisation of Supreme Audit Institutions - EUROSAI since June 2009, thus well positioned to
harmonise legal acts and its work with the International and EU standards.
Public internal financial control (PIFC), including internal audit (IA) and financial management and control (FMC), is aiming to
ensure that the financial management and monitoring of national public funds, with foreign funds, complies with the relevant
legislation, budget, and the principles of sound financial management, efficiency, effectiveness, economy and publicity.
131 Official Gazette of RS No. 104/2009

132 Official Gazette of RS No. 101/05, 54/07 and 36/10
133 Official Gazette of RS No. 54/2009, 73/2010, 101/2010, 101/2011, 93/2012 and 62/2013
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External Audit: Candidate countries are expected to apply the standards defined by the INTOSAI, especially the Declaration
of Lima and the Mexico Declaration that provide functional, institutional and financial independence of SAI and its obligation
to be responsible only to the National Assembly. The EC Progress Report on RS for year 2012 states that The Law on State
Audit Institution does not provide for full financial and operational independence of the SAI in line with the standards of the
INTOSAI.
Internal financial control in public sector: Implementing legislation on IA and FMC was further aligned with international
standards in December 2011. With the amendments of the Budget System Law in 2012, better definition of managerial
accountability is ensured. In the period encompassed with NPAA, monitoring of modifications to standards of IA, FMC and
best practice will be continued, with building of these into the established legislation for PIFC.
Chapter 33: Financial and budgetary provisions

The relevant legal framework for financial and budgetary provisions is the Budget System Law, the Public Debt Law and
implementing bylaws that secure implementation of these laws and their alignment with acquis, which is on a satisfactory
level.
The amendments to the Budget System Law, from 2009 onwards particularly insisted on fiscal responsibility and
strengthening of fiscal discipline to ensure sustainability of public finance in the mid-term. The Public Debt Law provided
establishment of the public debt management and reporting at all level of governments in order to monitor and manage level
of total public debt in Serbia.
Main Relevant EU acquis
In the period 2014-2016 (NPAA) an analysis of the Law on Budgetary System and its bylaws will be undertaken in order to
formulate further directions for full harmonization of budget accounting regulations with International Accounting Standards
(IAS).
Chapter 16. Taxation
Thirteen main laws create Serbian taxation legislation, out of which five regulate taxation areas which are the subject of
regulation of the EU Directives. These laws will be subject to further alignment in full harmonisation with the EU acquis.
While taxation regulation is not a subject of full harmonisation within the EU, there are important on-going policy coordination
initiatives. The main objective is the elimination of tax obstacles to all forms of cross-border economic activity within the
Internal Market, reducing harmful tax competition and promoting cooperation between tax administrations. Policy
coordination efforts are also aimed at ensuring that tax policy supports wider EU strategic objectives, set out in the Europe
2020 strategy.
Value Added Tax (VAT): Directives 2006/112/EC, 2009/132/EC, 86/560/EEC, 2007/74/EC, 2006/79/EC and 2008/9/EC
Directives aim to regulate a common framework for national VAT legislation, and the Law on VAT134 is largely harmonised.
Partially harmonised are provisions laying down principles for the definition of the place of supply of services, list of goods
and services subject to lower VAT rate, and certain provisions on exemptions without the right on deduction of VAT input tax.
Excise Duties: Directives 2011/64/EU, 2003/96/EC, 95/60/EC, 92/83/EEC, 92/84/EEC, 2008/118/EC and Commission
regulation (EC) No 3199/93
Directives aim to regulate the general arrangement, structure and rates of excise duties. The Law on Excise Duties135 is
partially aligned. Further harmonisation is needed in levels and scope of duties and operational aspects of their application.
Tax on Profit of Legal Persons: Directives 2003/49/EC, 2009/133/EC and 90/435/EEC modified by 2011/96/EU
Directives aim to regulate specific features in taxation of corporate capital restructuring, subsidiaries, interest and royalty
payments. The Law on Tax on Profit of Legal Persons136 is generally aligned with some amendments still pending.
Tax Procedure and Tax Administration137: Directive 77/799/EEC modified by 2004/106/EC and repealed by 2011/16/EU,
2003/48/EC and 2008/55/EC
134 Official Gazette of RS No. 84/04, 86/04 – corrigendum., 61/05, 61/07 and 93/12
135 Official Gazette of RS No. 22/01, 73/01, 80/02, 43/03, 72/03, 43/04, 55/04, 135/04, 46/05, 101/05, 61/07, 5/09, 31/09, 101/10, 43/11, 101/11, 6/12, 43/12,
76/12, 93/12, 119/12, 8/13 and 47/13
136 Official Gazette of RS No. 25/01, 80/02, 80/02, 43/03, 84/04, 18/10, 101/11, 119/12 and 47/13
83
Directives aim to regulate the rules and procedures for cooperation among Member States in exchanging information
relevant to the administration and enforcement of taxation. The Law on Tax Procedure and Tax Administration138 should
still be aligned.
Chapter 29: Customs union
Customs are regulated by three laws and implementing bylaws that are largely approximated with acquis.
The main objective is the removal of customs duties on products as the first important step towards a free trade area of
Serbia with the EU. Stabilization and Accession Agreement also contains provisions for administrative cooperation on
customs (Protocol 6), as well as rules of origin which have to be observed in order to benefit from the trade preferences
(Protocol 3).
Main Relevant Acquis
Customs: EU Combined Nomenclature 32012R0927 and respective Commission Regulations
The Law on Customs139 is generally aligned with the Nomenclatures. Serbia needs to ensure its proper application at the
administrative borderline with Kosovo, implementation of customs-related security legislation and upgrade processing
system.
Chapter 5: Public procurement
The legislative framework includes the Law on Public Procurement140 and the Law on Public-Private Partnership and
Concessions141.
The reform of public procurement legislation is a priority in the 2011 Single Market Act. The objective is to introduce flexible,
simple instruments which allow public authorities to conclude transparent, competitive contracts at the best value for money.
It should also support specific policy goals, such as green procurement, support to SMEs and strengthening competition.
Public Procurement and Public-Private Partnership: Treaty on the Functioning of the European Union (Article 26 and
114), Directives 2004/18/EC, 2004/17/EC, 2007/66/EC, 2009/81/EC, 92/13/EEC, and 89/665/EEC, and Regulations (EC) No
2195/2002 and (EC) No 1564/2005
Directives aim to regulate the rules and procedures for the awarding of public contracts and legal protection of business
entities in public procurement procedures. The new Law on Public Procurement implemented most of the EU framework.
Attention should be paid to safeguarding against corruption and misuse of public funds in procurement.
The SWOT analysis of the PAR sector has been undertaken in addition to the situation analysis presented in previous
 The basic legal and institutional framework largely in  Complexity and instability of public administration
place structure with unclear delineation of competencies
 A well-coordinated process of PAR strategy formulation  Inadequate coordination of public bodies in planning
under-way involving all major stakeholders and formulating of policies and strategies
 A clear mid-term fiscal strategy adopted by government  Lack of policy-based budgeting
137 Official Gazette of RS No. 80/2002, 84/2002 - corrigendum., 23/2003 - corrigendum., 70/2003, 55/2004, 61/2005, 85/2005 – other statute, 62/2006 -
other statute, 63/2006 - other statute, 61/2007, 20/2009, 72/2009 - other statute, 53/2010, 101/2011, 2/2012 - corrigendum., 93/2012
138 Official Gazette of RS No. 80/2002, 84/2002 - corrigendum., 23/2003 - corrigendum., 70/2003, 55/2004, 61/2005, 85/2005 – other statute, 62/2006 -
other statute, 63/2006 - other statute, 61/2007, 20/2009, 72/2009 - other statute, 53/2010, 101/2011, 2/2012 - corrigendum., 93/2012 and 47/13
139 Official Gazette of RS No. 18/2010 and 111/2012
84
 Capacity for aid absorption at sub-national levels of  Weak progress of decentralisation process and uneven
government capacity at sub-national levels of government
 Acceleration of reforms by the start of formal negotiation  Lack of commitment to continuous public
process for EU accession administration reforms
 Stimulating investment by creating business-friendly  Continuation of economic crises leading to insufficient
administrative environment funds for public administration reforms
 Bringing public administration services closer to citizens  Inefficient spending of public funds
 General support for further modernisation and  High internal and external turnover of staff in public
professionalization of civil service administration
 Improving conditions for attracting investments by  Insufficient quality of public services at the local level
increasing effectiveness and capacities of sub-national
levels of administration
 Introduction of all elements of Sector Approach
To reflect the above and guide assistance programming, the overall objective for the PAR sector is formulated as follows:
Achieving standards of ''Good Governance'' by creating efficient, effective, transparent and professional public
administration that fits the needs of the citizens and business and contributes to sustainable social and economic
development of Serbia.
Public Administration Reform is an on-going process, as is the process of state development and society in general. The
finalization of the former public administration reform phase is now to be followed by the phase of completing and “fine
tuning” of the adopted legal framework, institutional and professional building of administrative capacities, and in particular
expanding reform processes to the entire public administration, as well as linking the public administration reform process
with the process of European integration. This phase of further reform activities is therefore aimed at continuing the
enhancement of public administration system operation (its reform) and connecting this process with the process of
European integration, but also to the process of rationalization of public expenditure. The forthcoming period in this process
may therefore be designated as the period of implementing the adopted legal framework in practice, but also of broadening
the coverage of reform processes towards entire public sector.
This overall objective aspire to create the entire public administration as an efficient, effective and professional mechanism
that fits the needs of the citizens and other stakeholders, offering its quality public services in a transparent and professional
manner to achieve the standards of the so-called “Good Governance” within the “European administrative space”. The public
administration will thus, in a meaningful way support the continuous and sustainable social and economic development of the
country.
Implementation of this objective means concentrating resources for all identified measures, which will allow addressing most
acute challenges for PAR Sector in the forthcoming period. Such actions are proposed to be split into several priorities:
Priority 1: Increasing the effectiveness, efficiency and transparency of public administration
During the implementation period of PAR Strategy from 2004-2012, legal and institutional framework for implementing
efficient reforms in public sector was set up. The following phase of public administration reform will focus on fine tuning legal
framework alongside with further improvement of efficiency and effectiveness of public administration. This priority focuses
on quality improvement of services to produce results that meet the needs of society while making the best use of resources
at their disposal. Comprehensive reorganization of the public administration system is required at all levels of the
administration system, the rationalization of the system, certain level of devolution of competencies down to the lower levels
of the administration system, further upgrading of the administrative procedures and proceedings are activities predicted
within this priority to achieve one of main principles of good governance – effectiveness and efficiency, aiming to create
public administration capable to react to the changing conditions and the growing demands of the general public.
Priority 2: Strengthening strategic planning and coordination of public policies
Strategic planning and coordination of public policies needs to be improved in a way which ensures consistency of setting
government mid-term strategic objectives and formulating action and investment plans with the mid-term fiscal framework.
This improvement needs to be achieved at all levels of government, through revision of existing strategic framework,
establishment of the rules and procedures for preparing strategic plans and public polices, prioritizing actions and projects for
their implementation, planning resources for its financing and monitoring results and impact. The synchronization of mid-term
budget planning with strategic and action planning at all level of governments ensures consolidation of public finances on
both central and local levels, with the aim of reducing the fiscal deficit and changing the structure of spending, by decreasing
current budget spending and increasing capital expenditures.
Priority 3: Improving transparency, efficiency and accountability in public finance management
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During the last decade Republic of Serbia adopted a number of important laws for establishing transparent, efficient and
accountable public finance management at all levels of government. Successive implementation of the legislation regulating
public finance management is directly related to the administrative capacities and technical knowledge of civil servants at all
levels of government. Ambitious national economic and fiscal policy goals and related activities towards EU accession call
for substantial strengthening of administrative capacities and technical knowledge in areas of budget planning and execution,
monitoring, accounting and reporting, public procurement and public private partnership, and financial and budget controls at
all levels of government.
Priority 1: Increasing the effectiveness, efficiency and transparency of public administration
Measure 1.1 Reorganising structures and optimising processes of public administration at all levels
The measure is related to further improvement of organisational structure and the efficiency and effectiveness of authorities
of PA and subordinate bodies (i.e. holders of public responsibilities such as public agencies, public funds and foundations,
councils, commissions, public officers - public enterprises, etc.) and will support effective usage of new tools envisaged by
the PAR Strategy and related Action Plan. In the time horizon preceding the implementation of this measure, the two
analyses affecting the overall reorganization of the public administration in broad sense are supposed to be implemented:
the analysis of operations and the analysis of legal and status organizational forms on central and local level of
administration system. In accordance with these two key analyses, data base of all public administration will be prepared
with detailed information on type of authority, scope, operations, finance, and other things that should lead to the definition of
recommendations for a new legal framework which should define the structure of the entire public administration. In that way,
supervision of the legality of public administration bodies will be performed. Beyond that, the measure will help actual
reorganisation by cross-checking the existing pieces of legislation and identifying proper amendments and/or by drafting new
legislation. Furthermore, new organisational schemes (and the consequent reduction of the total number of PA and
subordinate bodies) will have to be properly documented and made publicly available, with punctual mapping of all PA and
subordinate bodies and with the exact numbers of employees engaged therein. Resources will also have to be invested in
the revision and the evaluation of the undertaken reorganisation. The Constitution of the Republic of Serbia provides the
possibility to legally entrust certain public activities to companies, organizations and individuals, which in process of
decontcentration means that one part of these public administration activities, after completing appropriate functional
analysis, will be transferred to private law entities (upon appropriate verification by the public administration bodies) and
certain activities could potentially be entrusted to the private sector.
With the aim of optimising processes at various levels of public service, the PAR Strategy and the Action Plan envisage
establishing appropriate system and methodology of conducting the supervisory function over public agencies and other
subordinate bodies. Related legislation will have to be adapted to reflect new horizontal functions and systematise the de-
concentration of administrative powers, so the measure can be deployed in this direction and also for assisting the PA and
subordinate bodies in assuming the future tasks. As the accession negotiations are expected to take off and advance
forward, it is reasonable to anticipate their influences towards the adjustments of the organisational structures in horizontal
and sectorial policy areas resulting from the process of EU integration, whereby the present measure will provide for the
necessary expertise in coping with such requirements.
Measure is also seen as support for further improvement of quality of administrative decision making and on streamlining the
administrative procedures which may require the enactment of new laws, but also the upgrading of existing legal regulations
and implementing the appropriate organizational measures, together with the broadest possible use of modern IT. To
improve administrative decision-making, it is necessary to ensure appropriate training in the professional development of
public administration employees. This particularly refers to the staff that directly take decisions in the administrative
procedures (at the first and the second instance), and to administrative inspectors. The streamlining of such administrative
procedures will contribute to creating the environment that will be favourable for running business and promoting the private
investments. Such an approach will encourage investment in the business sector and considerably decrease costs of
procedures and costs incurred by natural persons / clients in administrative procedures.
In line with the future amendments of the Law on Regional Development this measure will encompass creating conditions for
establishment of regional development actors, including assistance for modifications of regional development legislation and
development of institutional capacity of regional development actors.
Measure 1.2 Transferring functions of public administration closer to citizens and businesses within de-
concentration and decentralisation process
This measure refers to implementation of the strategic and legal framework concerning decentralisation and de-
concentration process. The measure will support strengthening capacities at sub-national level (administrative districts and
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local self-government) in order to meet the challenges of transferring the administrative powers especially, but not only, in
the area of financial and public property management, environment, education, social inclusion and health. In addition, this
measure may intervene in making comparative analysis of the de-concentration models in EU countries, as well in the
improvement of the legal framework to strengthen administrative districts in order to bring functions of public administration
closer to citizens. Administration on national and sub-national levels are the protagonists of new legal solutions and the main
interlocutor to citizens and business which is why it needs to be supported in developing essential client orientation.
Economic and social prosperity and balanced territorial development depend on central government decision-making as
much as on the efficiency of other levels of administrative decision making (coordinated top-down and bottom up). Therefore
this measure should support de-concentrated and decentralised administration structures to further strengthen ownership
over economic functions they are awarded, meaning proper understanding of their roles in improving business environment
and importance of strategic and operational planning recognizing and removing obstacles for implementation of local action
plans and ensuring sustainability of mechanisms established for those purposes.
Measure 1.3 Improving human resources management/development system at all levels of public administration
The measure is aimed to continue the development of HRMD system within the civil service at central level of public
administration, as well as establish and bring closer the concept of public officers to entities at all levels including public
agencies, public funds and other organizational forms that ensure achievement of public interest. One of the starting points in
this direction is analysing existing legal framework which regulates working-legal status of the employees in civil service.
Further development of the HRM system requires further professional development and de-politisation in the civil servants'
system and full implementation of the “merit principle“, whereby the introduction of basic responsibilities of civil servants, in
respect with hiring and promotion, represents one of the directions. In that sense, final course of action will depend on
previous analysis and recommendations for improvement of civil service system. Also, this measure applies to the
implementation of Strategy for professional training of civil servants in the Republic of Serbia and furthermore it would
support implementation of appropriate strategy on professionalization of employed in local self-government units, expected
to be adopted in 2013. This support will be focused on strengthening capacities of managers and human resources sectors
through trainings related to employment, evaluation system, wages and benefits, career development, and other fields,
including expanding informal education forms (giving instructions – coaching, mentorship, e-education). Special attention will
be directed to creating comprehensive and continual training programme for employees on managing positions. A sound and
efficient system of strategic human resource management also implies use of modern information technology (“e-
government”) and the connection of the whole system of public administration. In that view, the development of integrated
and joint system for HRM at all levels of government (system of recording civil servants) is a prerequisite for establishing
efficient and professional public administration.
Measure 1.4 Modernising delivery of public administration services through further improvement of information and
communication technologies at all governance levels
This measure should focus on implementation of the new Strategy for development of e-Government and related Action
plan. The precondition for further implementation and in particular for international assistance with this regards, will be
defining of appropriate institutional framework and further improvement of coordination and cooperation between the PA and
subordinate bodies concerning the development of e-Government, which is one of the key challenges in the forthcoming
period. The measure will assist in further improvement of existing services and development of the new ones within general
system of e-government. Measure is aiming at implementation of plan for optimisation of state ICT infrastructure, e-invoicing
and e-payment systems for public administration services. The unified (standardised) electronic document management
system of the state administration bodies needs to be introduced and implemented. Support under this measure will also
focus to improvement of electronic registries service on local level and introduction of medical records system. Further
development of capacity for collection and electronic processing of data, as well introduction of uniform procedures to that
end is also planned under this measure. Moreover, it is necessary to ensure for all interested bodies an access to the data
base and to establish an effective system of information/data sharing between governmental institutions in line with
European standards. The extensive use of ICT and e-government must also contribute to improved communication and
information to the public.
Measure 1.5 Strengthening control mechanisms of the functioning of public administration and increasing its
transparency
This measure is aimed on further improvement of work of independent control bodies (Public Procurement Office, the
Ombudsman, the Anti-Corruption Agency, the Commission for the Protection of Competition, the Commissioner for
Information of Public Importance and Personal Data Protection, the Commission for Protection of Bidders Rights,
Commissioner for Gender Equality, the State Audit Institution, and others) and on creating conditions to efficiently implement
their recommendations. Despite improvement of the process and institutional framework of external PA control during the
previous phase of PAR there are still pertaining problems arising from the existing legal and institutional framework. Support
under this measure should be focused to ensure different conditions (legal, political, organizational), that would enhance their
position and performance. Efforts should be made to eliminate different shortcomings in legislative framework regulating the
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status and the work of independent control bodies. The measure will assist in enhancing the framework of instance control
and official supervision to enable more efficient, rationale, cost-effective, faster and accurate work of the PA. Special
attention should be paid on ensuring appropriate actions by individual, primarily PA bodies, following the final decisions by
the resolutions of the independent control bodies, which is particularly highlighted in the EC Progress Report for 2012, in
order to increase transparency and accountability of public administration. This measure will also provide support to
strengthening the capacity for transparent legal process, especially including regulatory impact assessment, involvement of
public, and oversight over implementation of legislation.
Priority 2: Strengthening strategic planning and coordination of public policies
Measure 2.1 Improving administrative capacity for effective and efficient strategic and fiscal planning and their
coordination
The measure is aimed to improve the institutional capacity and procedures for assuring consistency between mid-term policy
strategies, investment plans and the mid-term fiscal framework, as well as preparing consistent implementation work plans at
all levels of public administration, including subordinate bodies such as public agencies, public funds and foundations, and
other organizational forms that ensure achievement of public interests. From the organisational point of view, there is still the
need to better incorporate, establish or reinforce strategic and financial planning functions throughout PA bodies and interlink
them with EU integration/policy co-ordination functions/units. This should result in reducing the fragmentation of coordination
centres. The measure needs to be deployed towards improving the institutional and administrative capacities in introduction
of Sector Approach, drafting laws and other regulations, ensuring primarily efficient implementation. This would also include
improving the mechanisms of consultation between bodies of various constitutional forms of territorial organisation (State,
Province, City, Municipality), as well as with civil society and private sector regarding policy formulation and adoption of
legislation. The measure should finally result in the creation of plans for implementation of selected mid-term policy
strategies with projections of their total costs and benefits/revenues as well as producing adjusted, realistic and transparent
annual legislative plan.
With this measure also capacities of public servants will be further developed through intensive training in: formulating
policies/strategies, drafting laws and regulations; prioritisation and sequencing of programmes, projects and measures based
on calculation of all costs and benefits resulting from their realisation; mid-term capital budgeting; defining action plans for
realisation of policies/strategies adjusted to available financial resources; identifying and formulating adequate indicators and
ensuring monitoring functions; efficient cooperation in prioritisation of specific programmes, projects and measures.
Important integral part of the measure is monitoring public policy impacts (MPI), which is fundamental precondition for
efficiency and effectiveness improvement of public policies in reaching their objectives. MPI has specific requirements, such
as capacities for management and coordination, for survey design and data collection, for data analysis and for preparing
reports and communicating the results of MPI to the policy makers (National/Local Assembly, Government) and other
stakeholders (civil society and private sector).
Measure 2.2 Improving institutional and technical capacity for monitoring and forecasting socio-economic
developments
The measure is aimed at improving administrative capacities and technical knowledge in those areas of statistics, analysis
and forecasting that are of key importance for formulating sound evidence-based economic and development policies. In the
area of statistics, these foremost include national accounts and government statistics according to SNA and ESA standards,
as well as statistical reporting on key economic aggregates and social development indicators, including agriculture and
regional development. In the area of analysis and forecasting, the priority is on business cycle and competitiveness analysis,
forecasting short-term and mid-term economic developments, and projecting long-term demographic, social and economic
trends. Procedures for assuring transparency, independence and credible public communication also need to be improved.
Timely production and updating of data and forecasts will provide for continuous adjustments of parameters for making policy
choices and also facilitate accession negotiations with the EU.
Priority 3: Improving transparency, efficiency and accountability in public finance management
Measure 3.1 Improving budget planning and preparation process
This measure complements measure 2.1 by establishing links between mid-term strategic policy formulation and annual
budget planning and execution cycle. It aims to improve the institutional capacity and procedures for assuring consistency
between the fiscal rules and rolling three-year expenditure ceilings (mid-term expenditure framework), determined as part of
the annual fiscal strategy, and the strategic policy objectives and priorities. The key activity is developing procedures and
capacities for program budgeting and performance based budgeting, based on monitoring execution and measuring
effectiveness of policies, and establish them as integral parts of the budget preparation process. Improving the quality of
regulatory impact and cost-benefit analysis will contribute to informed policy decisions. Ensuring effective planning and
management of EU funds will also help bringing closer together the strategic and short-term perspectives.
Measure 3.2 Strengthening revenue management
88
The measure is aimed at capacity building and modernisation of public administration bodies in charge of public revenue
management and administration in order to increase revenue stream, by improving the efficiency, accuracy and timeliness of
public revenues collection and reducing tax evasion and grey economy. The emphasis is on the improvement of: proper and
efficient revenue collection, transparent rules and voluntary compliance, servicing, audit and risk assessment of the
taxpayers. Further strengthening of operational processes and IT system management of the administrative bodies in charge
of public revenue management and administration is also predicted.
Measure 3.3 Strengthening public expenditure management and budget execution
The measure is aimed at strengthening administrative capacities and technical knowledge in areas of budget execution,
monitoring, accounting and reporting, public procurement, public private partnership, and financial and budget controls at all
levels of government. In the area of budget execution, the priority is on improving efficient and responsible spending of
approved budget appropriation, forecasting commitments during a budget year, recording and managing of arrears,
permanent monitoring and reporting of budget execution and modernising IT systems for budget execution. Enhancing
administrative capacities for responsible and cost effective public procurement complements the efforts for improving
efficiency and responsibility of budget execution. This measure also includes developing skills for defining, promoting,
negotiating and implementing large public private partnership projects and concession schemes that produce long-term
impacts on expenditure management. Further aligning of budget accounting and reporting with international standards is
very important for increasing its transparency, visibility and accessibility to citizens and decision makers (correlation with
measure 1.5.). The area of internal audit, internal and external financial and budget controls, including state aid control, need
to be improved by means of strengthening performance control and by extending them to local governments and public
enterprises. The financial control and inspection mechanisms have to be streamlined. Improvement of public expenditure
management will significantly contribute to achieving savings in current expenditures in order to increase capital
expenditures at all levels of government, and to containing debt to GDP ratio at a sustainable level.
Regional, Cross-Border and Transnational Themes in Public Administration Reform Sector
Instruments of importance for regional cooperation, such as Multi-Beneficiary IPA support (MB IPA), CBC and Trans National
MB IPA
In PAR Sector, the support through MB IPA should be channelled towards flexible, demand-driven and short-term
cooperation actions notably through SIGMA support, TAIEX facility and ReSPA framework. Thus, the cooperation, contacts
and exchange among IPA II beneficiaries will be mainly provided for various issues of common interest for improving public
sector reform and governance and alignment of the public sector with European governance principles, but without
programming of standard projects, except in the case of statistical cooperation where regional assistance should continue in
traditional manner under the egis of EUROSTAT.
CBC
Support for Cross-Border Cooperation (CBC) should also contribute to important areas of PAR sector. Possible areas of
CBC and TN programmes, connected with the ERDF thematic objective 11 – Enhancing institutional capacities and an
efficient public administration - are investing in promotion of legal and administrative cooperation and cooperation between
citizens and institutions, with special focus on urban and spatial planning and enabling business-friendly environment.
Customs cooperation and investing in border crossing points are important for building capacity to participate in the Internal
Market.
Transnational Themes
Action Plan of the EU Strategy for the Danube Region includes actions and examples of programmes that are directly
relevant for the PAR sector. The action “To combat institutional capacity and public service related problems in the Danube
region” aims at improving the quality of public services and optimizing governance mechanisms for international cooperation
at all levels of government. It includes, among others improving public finance management. Another important area is
promoting use of ICT in public and private services, including e-government and promotion of electronic signatures.
For the PAR sector in the Republic of Serbia, in context of Sector Approach, following institutions are responsible: Ministry
responsible for Public Administration, Ministry responsible for Finance (including Sector for international cooperation, CFCU
and NF), Ministry responsible for Regional Development, Ministry responsible for Local Self-Government, Ministry
responsible for Telecommunications, General Secretariat of Government of Serbia, Human Resource Management Service,
High Civil Service Council, Republic Secretariat for Legislation, Republic Statistical Office, National Bank of Serbia and the
National Assembly. The lead institution for the sector is the Ministry in charge of Public Administration.
89
In context of Sector Approach, the Ministry coordinates the work of all relevant institutions in the sector in regard to planning,
programming, implementation and monitoring of the process of public administration reform and measures/operations which
will be supported by EU funds and other international development assistance. Responsibility for formal submission and later
implementation of measures/operations depends of their content and responsibility of institutions involved in the PAR sector.
The Ministry responsible for Public Administration is in charge for the policy making in the area of system of central state
administration, organization and work of the ministries and special organizations, proposing and drafting the laws and other
legislation in the area of public administration, ombudsman, administrative inspection, administrative procedures and
administrative disputes, labour relations in central state administration and HRM and HRD of civil servants. As the PAR
sector includes public finances, Ministry responsible for Finance has important role in coordinating activities in the process of
public finance management reform (Priority 3). It is appropriate to highlight the roles of the General Secretariat of the
Government (Measure 2.1) and the National Assembly (Measure 1.5.).
mechanisms have been introduced, that is to say, the Sector Working Group (SWG) for Public Administration Reform 142 has
been established. The SWG for PAR is responsible to coordinate activities related to planning, programming and monitoring
of EU funds and international assistance, to propose relevant measures and activities and to support the introduction of
Sector Approach in PAR sector. The functioning, management, organization and composition of SWG are more precisely
defined by the “Rules of Procedure for Sector Working Groups for the Programming and Monitoring of the EU funds and
development assistance”. The national institutions participating in the SWG are the Ministry responsible for public
administration, the Ministry responsible for regional development and Local Self-Government, the Ministry responsible for
finance, the Ministry responsible Telecommunications, the Ministry responsible for defence, General Secretariat of
Government of Serbia, Human Resource Management Service, Republic Secretariat for Legislation, Republic Statistical
Office, Republic Geodetic Authority, National Assembly, National Bank of Serbia, Public administration body responsible for
Gender Equality, Public Procurement Office, Office for Regulatory Reform and Regulation Impact Assessment, Republic
Commission for the Protection of Rights in Public Procurement Procedures, Anti-Corruption Agency, Intellectual Property
Office, Standing Conference of Towns and Municipalities and Office responsible for European integration affairs (SEIO).
Members of the SWG are officially appointed representatives of the above mentioned line ministries, at the level of State
Secretary or Assistant Minister, or appointed Senior Programming Officers (SPOs) and the Serbian EU Integration Office.
needs and requirements of each SWG meeting and take part in consultation processes for analysing sector priority goals,
expected assistance during the planning period. The Leading donor(s) is responsible to support the work of the SWG and
represent the interests of donors active in particular sector.
the respective sectors, SEIO established a consultation mechanism with the Civil Society Organisation (CSOs).143 This
particularly programming and monitoring of the Instrument for Pre-Accession Assistance (IPA). The SECO represents a
consortium of maximum three CSOs as partners, one of which is clearly indicated as leading partner. The SECO consortium
for the PAR sector tends to actively contribute to the creation of recommendations within the network and to influence official
documents and priorities for financing from EU funds and development assistance. Members of SECO are participating at
the SWG meetings based on the needs and requirements of each SWG meeting and take part in consultation processes for
analysing sector priority goals, measures and operations for financing from EU funds and international assistance. Other
relevant stakeholders (agencies, public enterprises, private and academic sector, CSOs, etc.) can participate at the SWG
meetings based on the topic, needs and requirements of each Sector Working Group meeting.
Under the current Rules of Procedure for Sector Working Groups, SEIO144 is responsible for coordination and ensuring the
efficient functioning of all activities of the Sector Working Group. Coordination and leadership of the SWG is supported by a
Task force consisted of representatives from the Sector Lead Institution, Lead donor and SEIO. SWG is also acting as
Sectorial Monitoring Subcommittee for IPA.
142 Act on establishing the SWG from 5.11.2012. No: 119-01-68/2012-03

90
PRIORITY 1: Increasing the effectiveness, efficiency and transparency of public administration
Baseline Target Institution in charge for

Indicator Unit Means of Verification
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
- 0,15 Ministry in charge for public
1.1 WB Governance Effectiveness indicator for Serbia Index - 0,10 - 0,06 - 0,01 0,05 0,12 0,2 0,3 0,4 WB website
(2011) administration
Government work
1.2 Positive evaluation of progress in implementation of
Y/N N Y Y Y Y Y Y Y Y reports SEIO
Public Administration Reform process
EC Progress Report
MEASURE 1.1: Reorganising structures and optimising processes of public administration at all levels
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
1.1.1 PA bodies and organisations included in database of Ministry in charge for public
% NA 100% Annual work report
operations and organizational forms administration
1.1.2 Adopted Laws in line with NPRD and RDS No NA NPRD progress report Ministry in charge for RD
MEASURE 1.2: Transferring functions of public administration closer to citizens and businesses within de-concentration and decentralisation process
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
Annual work reports of
1.2.1 Management capacities and services to citizens in Ministry in charge for social
No NA institutions in charge for
social protection/welfare issues improved in LSG units policy, SCTM
reporting
Annual work reports of Ministry in charge for
1.2.2 Management capacities and services to citizens in
No NA institutions in charge for environmental protection,
environmental protection improved in LSG units
reporting SCTM
1.2.3 Management capacities and services to citizens in Ministry in charge for LSG,
No NA Annual work report
local economic development improved in LSG units SCTM
MEASURE 1.3: Improving human resources management/development system at all levels of public administration
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
1.3.1 Establishment of HRM function in LSG units in
% NA 100% Annual work report Ministry in charge for LSG
accordance with the Law on LSG units employees
1.3.2 Filling-in positions via public competition in accordance
Human Resources
with the Law on Civil Servants (ratio between the total No if
% NA 36% 45% 55% 65% 75% 85% 95% 96% HRMS records Management Service
positions and the No of positions filled-in by means of public
(HRMS)
competition)
1.3.3 Reliability of data in the official Human Resources Human Resources
Annual reports
Management IS (HR MIS) as measured by frequency of % 51.3% 60% 80% 100% Management Service
generated from HR MIS
updating the inputs to the system by state administration (HRMS)
91
bodies.
MEASURE 1.4: Modernising delivery of public administration services through further improvement of information and communication technologies at all governance levels

(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
EC Annual Report on
the level of
1.4.1 EC indicator on the level of development of e-
% NA145 83% development of e-Gov Ministry in charge for PA
Government services
services (eGovernment
Benchmark)
Annual work report of
1.4.2 Number of established/improved “one stop-shop” Ministry in charge for LSG,
No NA Ministry in charge of
locations in LSG units SCTM
LSG, SCTM
Yes/ Annual work report of Ministry in charge for public
1.4.3 Functioning of the unified register of citizens N N Y146 Y147 Y148 Y Y Y Y
No Ministry in charge of PA administration
MEASURE 1.5: Strengthening control mechanisms of the functioning of public administration and increasing its transparency

(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
National Assembly
1.5.1 Ratio between the number of recommendations issued (alternatively –
Annual Report to
by independent control bodies and the number of such % NA Ombudsman or other
National Assembly
recommendations actually independent control
bodies)
1.5.2 The role of independent control bodies positively Yes/
N Y Y Y Y Y Y Y Y EC Progress Report SEIO
assessed No
PRIORITY 2: Strengthening strategic planning and coordination of public policies

(2012) 2013 2014 2015 2016 2017 2018 2019 2020 reporting
0.01 Ministry in charge for
2.1 Regulatory Quality (World Bank Governance Indicator) Index 0.15 0.22 0.30 0.37 0.44 0.51 0.59 0.66 World Bank website
(2011) economy
Ministry in charge for
2.2 Share of capital expenditure in national budget % 3.5 3.6 3.5 3.7 3.9 4.2 4.5 5 5 Public Finance Bulletin
finance
145
The EC has encompassed the Republic of Serbia in the respective eGov benchmarking only from year 2013, so the comparative data with the EU MSs for the Republic of Serbia shall be available only after year 2013.
146
In year 2014, the following is anticipated: Adoption of the Law on Unified Register of Citizens; Establishing and Implementation of this Register; alignment of the e-Infrastructure for provision of e-services with the objective of ensuring
establishing and implementation of the Unified Register of Citizens.
147
In year 2015, the following is anticipated: reengineering of information systems for recording citizens’ data; Migration of existing systems and integration with the Register of Citizens
148
In year 2016, the following is anticipated: integration with other registries (data sources ion citizens) established in line with the viable legislation.
92
MEASURE 2.1: Improving administrative capacity for effective and efficient strategic and fiscal planning and their coordination
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
PEFA Assessment and
2.1.1. Multi-year perspective in fiscal planning, expenditure Scor Ministry in charge for
C B B+/A PFM Performance
policy and budgeting (PI-12) e finance
Report
2.1.2. Percentage of direct budget beneficiaries where
approved financial plans are compliant with the methodology % NA 70 80 Report of GS General Secretariat
of strategic planning
2.1.3 Realization of planned expenditures in strategic
% NA 50 75 Report of GS General Secretariat
documents
MEASURE 2.2: Improving institutional and technical capacity for monitoring and forecasting socio-economic developments
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 reporting
%.po SORS publication of
2.2.1 Size of revisions of data on government deficit NA 1.5 1.25 1.0 0.75 0.5 SORS
ints National Accounts
2.2.2 Mean absolute error of GDP growth forecasts for the %.po Ministry in charge for
NA 2.5 2.25 2.0 1.75 1.5 1.35 Fiscal Strategy
next year ints finance
PRIORITY 3: Improving transparency, efficiency and accountability in public finance management

(2012) 2013 2014 2015 2016 2017 2018 2019 2020 reporting
Statistical Office RS & Ministry in charge for
3.1 Fiscal surplus/deficit as a share of GDP % -6.4 -5.6 -4.2 -2.3
Public Finance Bulletin finance
International Budget Ministry in charge for
3.2 The Open Budget Index Index 39 45 55 65 70
Partnership Webpage finance
MEASURE 3.1: Improving budget planning and preparation process
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
PEFA Assessment and
Scor Ministry in charge for
3.1.1 Classification of the budget (PI-5) B A A PFM Performance
e finance
Report
PEFA Assessment and
3.1.2 Transparency of Inter-Governmental Fiscal Relations Scor Ministry in charge for
B A A PFM Performance
(PI-8) e finance
Report
3.1.3 Percentage of budget based on precise performance Ministry in charge for
% NA 50 50 60 70 80 Public Finance Bulletin
indicators finance
Office for Regulatory Office for Regulatory
3.1.4 Percentage of new laws with ex-ante regulatory impact
% NA 40 65 Reform and Regulatory Reform and Regulatory
assessment
Impact Assessment Impact Assessment
93
webpage (to be
included)
MEASURE 3.2: Strengthening revenue management and administration
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
PEFA Assessment and
3.2.1 Transparency of taxpayer obligations and liabilities (PI- Scor Ministry in charge for
B+ A A PFM Performance
13) e finance
Report
PEFA Assessment and
3.2.2 Effectiveness in collection of tax payments (PI-15 D+ B A PFM Performance
e finance
Report
World Bank Doing
3.2.3 The "Paying Taxes" Indicator of the Doing Business Ministry in charge for
Index 49.5 50 52.5 55 60 65 70 70 70 Business Report
Report finance
webpage
World Bank Doing
3.2.4 The "Trading Across Borders" Indicator of the Doing Ministry in charge for
Index 63.3 64 66 69 72 75 75 75 75 Business Report
Business Report finance
webpage
MEASURE 3.3: Strengthening public expenditure management and budget execution
Target
Baseline Institution in charge for
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
76% Public Procurement
3.3.1 Use of competitive procedures expressed as % of total % 78 80 83 86 90 90 90 90 Public Procurement Office
(2010) Office Annual Report
PEFA Assessment and
3.3.2 Scope, nature and follow-up of external audit (PI-26) C B B+/A PFM Performance
e finance
Report
PEFA Assessment and
3.3.3 Effectiveness of Internal Audit (PI-21) B A A PFM Performance
e finance
Report
3.3.4 Volume of External Audit as a share of the total budget
% NA 75 90 SAI annual report State Audit Institution
expenditure
* For all PEFA indicators, the baseline year is 2010
94
According to the ISDACON database, the PAR sector is the second largest recipients of assistance from the international
donor community over the period 2007-2012, with estimated total disbursement amounting to € 1.078 million. Largest and
most important donor in the sector has been the EU with total disbursement within IPA component I amounting to 86 million
EUR in the period 2007-2013.
In the seven annual programmes 2007-2013, IPA component I has been focused both on the specific technical support in
targeted areas (financial control, revenue administration and financial supervision, statistics, etc.) and horizontal reform of
the public administration in general, on central and local level. The approach of IPA assistance has been multi-faceted, with
single projects consisting of different connected components covering reform of institutional structures, strengthening human
resources and initiation of new systems and tools. IPA contributed to enhancement of the budget execution and budget
oversight components of the budget cycle, through support to public procurement and PIFC, and increased capacity of the
SAI. IPA assisted the achievement of PAR sector objectives in revenue administration and financial supervision, through
establishing institutional structures in the Tax and Customs Administrations, as well as through development of human
resources, systems and tools. As far as horizontal reform of the public administration on central level is concerned, IPA
supported to the establishment of merit based recruitment system, role of the HRMS, and provided an operational and
legislative basis for e-Government. On the local level of government the creation of legislation and the decentralization
strategy has been funded by the IPA in parallel with the creation of systems and tools and extensive human resource
development (in the fields such as public finance, budget, debt, projects, assets management etc.). IPA 2013 support aims
to strengthen public administration reform, in particular public finance, in the areas of financial control, revenue
administration and financial supervision. IPA 2013 support will especially focus on strengthening further modernization of the
Customs Administration; ensuring the more effective performance of the PIFC by fostering institutional capacities of budget
users and strengthening the institutional, organisational and methodological framework of the public procurement system
(both by enforcing the relevant legislation and by improving PP stakeholders’ professionalism, management competences
and technical capacities). The support through Multi beneficiary IPA in the PAR sector was mainly directed at the
enhancement of capacities of public administration, particularly in the areas of law enforcement, harmonization of national
statistical systems with the EU acquis but also through training and preparation for participation in Community Agencies.149
Besides the IPA funds from EU the main sources of international support to PAR sector are bilateral assistance from the
USA, Germany, Switzerland, Sweden, Norway and United Kingdom. These funds of bilateral donors have contributed
PAR sector thought enhancing of sustainable local development, building program for budgeting and macroeconomic
forecasting models, development of statistics, preparations for better programming and monitoring of EU assistance, reform
of the financial sector, actual implementation of the PAR, and long term assistance to the SAI.
According to the report150, the relevance of the measures was very high. Most interventions in the PAR sector were
expected to increase the capacity and capabilities of beneficiaries, and in some cases to provide new or more efficient
services or produce specific deliverables. This has largely occurred, often aided by IT solutions. The 2004 PAR Strategy laid
down benchmarks against which the effectiveness of ODA can be measured at a more strategic level, through the five
principles of rationalization, modernisation, professionalization, de-politicisation, and decentralisation. Taking the project-
level and strategic assessments together, the overall performance on effectiveness is medium. In respect to EU support,
as the most substantial donor for PAR, the sample of ROM reports analysed for this sector records a substantial proportion
of projects with management problems, higher than any other sector. In this light, the performance on efficiency is
considered on balance as low-medium. The strengthening of statistics, taxation, customs, treasury, financial control,
external audit, ombudsman and EU programming and management functions through ODA 2007-2011 appears to have set
in train an enduring and systemic change in the responsible bodies (SORS, MFE and various Administrations, SAI, SEIO,
etc.), not least in the expectations created by users (other ministries and agencies, municipalities, the public, and of course
EU institutions). However, this does not mean these benefits cannot be reversed, especially through organisational
engineering (merging or abolishing institutions), staff reductions or shortages, failure to follow-up primary legislation with by-
laws, or shortfalls in on-going finance from national budgets. Moreover, a great deal of ODA during 2007-2011 took the form
of technical assistance to write laws, conduct analysis, generate strategies, and produce project documentation which did
not obviously have a sustainable effect on capacity development as the same institutions have repeated their requests for
help with preparing new laws, strategies and other documents, suggesting that little has been done to actually ensure that
competences in planning, analysis and drafting have been retained. In this light, sustainability is considered to be low.
The consequences of ODA interventions, some of which have not been finalised, have still to be fully felt; hence impact is
assessed overall as very low.
149 EUD PAR sector evaluation has not been finalised yet, it is under preparation and will be finalised during 2013.
150 Evaluation of effectiveness and efficiency of development assistance to the Republic of Serbia per sector’, draft final report, SIDA 2013
95
As recommended in the Report, the priority for the next period should be to empower the Government in taking forward
policy planning and coordination, successful Government-wide introduction of programme budgeting from 2015,
continue support to the Tax and Customs Administrations to meet EU standards and improving the service to citizens
and businesses through e-Government. Better strategy development, a clearer division of functions and dialogue across
institutions (including dialogue between central and local levels), and the introduction of a culture of monitoring and
evaluation with underpinning systems will be the preconditions for successful introduction of programme budgeting. The
programme budgets will put the onus on financial management and control in a number of respects: demands on public
sector managers to exercise judgment on the management element of FMC (economy, efficiency and effectiveness); need
to decide on budget execution based on real-time information, to understand the effects of spending, and to increase the
importance of the SAI moving into performance audit, as a management tool to improve decision-making.
96
B4 COMPETITIVENESS SECTOR
Competitiveness is a wide-ranging sector encompassing issues that affect the capacity of the economy to make the most of
its assets: free movement of goods and capital, adequate competition policy, regulated company law, consumer protection
and safe products, provision of services, high quality research and development, advanced innovation policy and reformed
intellectual property rights laws. Improvements in ICT, foreign direct investment, development of clusters and business
networks are embedded in the competitiveness sector with regional development as a cross cutting theme. Enterprise
development stands at the core of the sector and its productivity levels directly affect the country’s economy.
The increasing need for companies to become and remain competitive is driven by the globalization of markets. Many
countries have responded by strengthening their economies including making concentrated efforts to shift towards
knowledge based economy, attracting investment and increasing their exports. These changes establish the essential
prerequisites for long-term economic development. Becoming more competitive is of particular importance for small
countries whose internal market is not adequate to fuel economic development. Competiveness is therefore a crucial issue
for Serbia.
A competitive economy is one that experiences high and sustained productivity growth leading to an increase in standards
of living. Many factors determine productivity performance151. These include the level of competition, opportunities provided
by market reforms to stimulate investment and the ability to innovate, both through increased investment in R&D and human
capital development, notably through education and training. Other important factors include the capacity to rapidly
transform technological and non-technological innovations into economic goods and the reorganisation of working practices
through the adoption of information and communication technologies and access to modern infrastructure. Competition
regulations and consumer protection rules play a role in ensuring that competitive market pressure operates fully, thus
maintaining incentives for higher productivity. Finally, an integrated market for goods and services is necessary to ensure
that all potential gains are realised.
Serbia has experienced steady growth until the global economic crisis started in 2008. At this point the national economy
shrank rapidly and in 2009 it went in to recession. Recovery commenced in 2010 and registered a real 1% growth of GDP
(3.5%)152, due in a large part to increased exports to the EU. The national economy slowed down again in mid 2011 due to
the negative effects of a second wave of global economic crisis and difficulties in the Euro zone. However, despite the
worsened economic circumstances in 2011, real GDP growth of 1.6% was achieved in Serbia. This was based on growth in
industrial and agricultural production, the building industry, transport and telecommunications, and on an increase in
investments. The highest positive contribution to the growth of gross added value of 1.5%, derived from the information and
communications sub-sectors and from industry while the largest negative contribution originated from the wholesale and
retail trade sub-sector. In terms of regional distribution, the Belgrade Region participated in the GDP share with almost 40%,
while Sumadija and Western Serbia Region contributed with only 19% and Southern and Eastern Serbia Region with less
than 15%. The modest economic growth was not sufficient to reduce unemployment; according to the April 2013 Labour
Force Survey the rate of unemployment rose to 24.1%153 and represents one of the key economic policy challenges for the
country.
The industrial structure of Serbian GDP based on GVA consists of: real estate, renting and business activities (18%),
Manufacturing (17%), Wholesale retail trade & repairs (13%), Agriculture, forestry, water & fishing (11%), Transport, storage
& communications (9%), Health & social work (6%), Education (5%), Construction (5%), Public administration, defense &
social security (4%), Utilities (electricity, gas & water supply) (4%), Financial intermediation (3%), Other community, social &
personal service activities (3%), Mining & quarrying (1%) and Hotels & restaurants (1%). It is evident that services provide
the largest share of GVA, which is comparable with European economies – industry as a whole is very close to the EU 27
average (18%)154. In terms of labour productivity, Serbia is lagging behind the EU: at the end of 2011, the EU average
productivity was three times higher than in Serbia155. However, the trend in the period 2005-2011 records increase in share
151 Communication from the Commission to the Council and the European Parliament: Some Key Issues in Europe’s Competitiveness – Towards an
Integrated Approach (2003)
152 Fiscal Strategy for 2013, with projections for 2014 and 2015
153 Unemployment rate in Belgrade Region stands at 19%, Vojvodina Region 24,%, Sumadija and Western Serbia Region 25,9% and Southern and
Eastern Serbia Region is experiencing staggering 26,3%.

154 Eurostat data
155 Serbian Enterprises and Global Competition Challenges, Dejan ordevic, Dragan Cockalo, Savina urin using National Bureau of Statistics of Serbia;
EUROSTAT as sources
97
of Serbian productivity in the EU average from 17% to almost 32%156 showing a steady improvement in manufacture
efficiency157. There is a strong correlation between GVA of sectors of the Serbian economy and the number of persons
employed in those sectors. The biggest discrepancies are recorded in real estate, renting and business activities, and
agriculture (where % of GVA exceeds the share of employed persons by far), as well as manufacturing (the greater
percentage of employed persons, compared to GVA, could be explained through labour-intensive food and other processing
activities)158.
In this respect, the SME sector that accounts for 99,8 % of all enterprises generates only 55.2% of gross value added.
Serbia’s SME base is relatively similar in structure to the EU-27, but its productivity is considerably lower. Average GVA per
employee in the European SME is 41.3 159 whilst in Serbia it counts only for 10.9160. Turnover and profit per employee is
equally low compared to EU average making the Serbian SME sector uncompetitive and diminishing its contribution to the
economy. In terms of regional distribution within Serbia, the share of Belgrade-based enterprises in total turnover of
enterprises was 46% in 2010, while the contribution of enterprises from Southern & Eastern Serbia was only 10.1%. The
difference in turnover between Belgrade and Southern & Eastern Serbia was more than 4.5 times. The share of Šumadija
and Western Serbia is also weak with 15.3%, while the share of Vojvodina was 28.5% in 2010. Analysed by the level of GVA
per person employed, the SME sector in Belgrade Region is 2.0 times higher than the Sumadija and Western Serbia
Region, and 1.7 times higher than the South and East Serbia Region161.
In the period 2009-2011, employment in the Serbian SME sector had a faster drop compared to the non-financial sector’s
average (-5.8% as compared with -4.8%, respectively), however, this did not lead to any real increase in productivity as
measured in GVA per employee (-0.8% to 0.5%, respectively). Thus, SMEs still account for the least profitable part of
economy with profitability rate of 36.1% compared to 42.9% in large enterprises.
By modernising existing production methods, Serbian enterprises would be able to expand their product range to compete
with imports. In that respect, machinery and equipment represent a significant element of production efficiency; state of the
art machines contribute to better quality products and higher productivity. The average machine in Serbia is 30 years old.
Serbian economy is, in that respect, 29.5 years behind European Union, which was confirmed on the representative sample
of 154 companies in textile, food processing, pharmaceutical, machinery, chemical and building material industries 162.
According to the survey, pharmaceutical companies, companies in food processing sector and those with foreign capital had
the most advanced equipment. The opposite result was noted in the metal industry, with 35 years old machines on average-
more than double compared to the EU countries. The obvious cause for obsolete equipment is the fact that Serbian
companies are highly reliant on internal sources of finance. Around 70% of SMEs are financed from their own sources, both
in the case of working capital (73%), and investments (69%). External sources of finance are used by only 26% of SMEs
and lack of finance is one of the most frequently articulated problems in performing business activity163 (ranked 2.5). There
is a strong need for better access to diverse funding mechanisms and improved support to ensure funding can be secured
and utilised. This would enable investment into the manufacturing and production base, including adoption of new
technologies. Such modernisation and improvements to products and processes would translate as an associated
improvement in productivity and quality, making Serbian companies more competitive.
Another important contributor to productivity gains is access to modern business support infrastructure with common
facilities and adequate services that cut costs and provide cooperation opportunities between enterprises. A report prepared
for the National Agency for Regional Development in 2011, identified 92 industrial zones, 2 technology parks (with 4
planned), 4 free zones and 66 brownfield business locations in Serbia. The allocation from the National Investment Plan
(NIP) for industrial zones investment 2007-2010 was over EUR 20 Million. The municipalities have allocated significant
amounts of land for business use, but in practice, a low percentage of this land has actually been developed, with
operational business premises for start-ups or other business development purposes. The quality of available infrastructure
and services is not standardized, primarily due to differences in their stages of development; constrained with lack of
financial resources, unresolved property relations, lack of awareness about the benefits of such infrastructure, lack of
professional staff etc. Furthermore, the economic potential of existing premises has not been fully utilized due to the lack of
complimentary offer that would address the need of companies, especially innovative ones in constant need of knowledge
intensive business services. Therefore, it is necessary to increase the occupancy ratio inside the business sites, through
attracting the enterprises to benefit from the enhanced synergy and the advantage of common use of shared facilities and
high quality services inside the business sites. In effect, the companies would be able to raise efficiency levels, production
rates and possibilities to succeed in domestic and international market.
156 Serbian Enterprises and Global Competition Challenges, Dejan Đordevic, Dragan Cockalo ,Savina Đurin using National Bureau of Statistics of Serbia;
EUROSTAT as sources
157 There is no available data for MFP ( multi factor productivity) for Serbia
158 Draft Operational Programme for Economic Development Serbia 2012 – 2013
159 In 000 Eur
160 Ibid
161 Report on SMEs and Entrepreneurs 2012, MFE and NARD
162 Serbian Enterprises and Global Competition Challenges, Dejan ĐORĐEVIC, Dragan COCKALO, Savina ĐURIN
163 Conditions, needs and problems of SMEs 2012, NARD 2013
98
Another type of infrastructure contributing to productivity growth and consequent export gains is broadband connectivity.
According to the International Telecommunication Union (ITU) Serbia has taken up the 57th position with 10.8 subscribers
per 100 inhabitants; the penetration rate of telecoms services in 2012 was 19%, showing a significant space for
improvements.The international studies show that manufacturing sector enterprises with internet access enabled by
broadband generate 6 % more foreign sales, while in the service sector, the results are even more favorable with 7.5 - 10 %
increase in export.
It should be noted that Serbian exports are mostly dominated by raw products and semi-finished goods that have relatively
low market value. A significant change in export structure is necessary such that there is growth in the share of finished or
semi-finished products. Only one in five companies marketed a new product/service in 2012, i.e. introduced a new
production process164. One in seven had cooperation with other business entities or institutions in the field of innovation. It is
necessary to improve a weak Serbian export offer through the increased quality of their products and services. This to a
large extent depends on the inflow of investments (especially foreign direct investment) and proper market intelligence, but
also on the commercialization of domestic research though increased technology transfer and associated innovation activity.
According to the Global Competitiveness Report 2013-2014, Serbia has limited capacities in almost all aspects of innovation
and technology transfer165. Improved commercialisation of domestic research will require an improvement to the quality of
the R&D being performed and a rebalance towards basic (fundamental) and more applied R&D in the public research
organisations (Universities and Research Institutes). It will require a shift away from research for teaching towards a
stronger culture of research that meets international publication standards, protection of research outputs using the
patenting system and commercialisation of the research through technology transfer and knowledge exchange activities;
these are at a very low level in Serbia at present. This reflects both the low quality and industrial applicability of the research
and also to lack of supporting structures to better align the research focus to the needs of commercial enterprises that affect
the transfer e.g. technology transfer offices, incubators and industrial liaison officers. Serbia’s prolonged under-investment in
its public R&D infrastructure has been coupled with a lack of modernisation of the education system, including that of PhD
students and a loss of talented researchers to other countries. The low level of assistance available from the public R&D
organisations has an associated effect on enterprises who might otherwise invest in R&D activities with a national public
partner.
Of the 0.78% of GDP invested in Research and Development (R&D) in Serbia during 2011166, the largest share came from
Government expenditure which contributed 0.26% of GDP. Higher education R&D contributed 0.44% of GDP, while the
business sector R&D contributed only 0.08% of GDP. Insufficient investment in R&D is linked to due to lack of available
funding for firm level innovation coupled with low level of assistance from public research organisations as outlined above.
This has resulted in a low level of development in domestic technologies meaning that Serbian enterprises largely depend
on imported technologies but as shown below, their present capacity to adopt and adsorb modern technologies remains low
regardless of their availability.
In the Global Competitiveness Report 2012-2013, Serbia is ranked 127 of 144 on the availability of latest technologies, while
the low capacity of Serbian companies to absorb technologies places the country on the 142 nd place (out of 144).
Furthermore, the transfer of technology from foreign direct investment (FDI) is ranked 132, showing Serbia’s poor record in
harvesting latest technologies from international investors. New high technology goods and services originating from the
outputs of national R&D remain low.
Over the past years several EU and bilateral technical assistance projects have been implemented to reform the legislative
and institutional framework in the areas most relevant for the competitiveness sector (free movement of goods, services,
capital, company law, competition and state aid, consumer protection), but effects remain limited and often unclear. In some
of the areas legislative reforms have happened several times, negatively affecting the business environment due to
decreased predictability and legal certainty and increased regulatory risk, thus increasing the costs for companies’ doing
business. For instance, the Law on Competition Protection was passed in 1996, 2005 and then in 2009; the Law on
Consumer Protection was passed in 2002, afterwards in 2005 and then again in 2010, with new amendments of both laws
expected in 2013. Despite the fact that numerous new institutions have been established and numerous civil servants
employed, implementation of these laws remains flawed and enforcement weak.
According to the latest Global Competitiveness Report (2012-2013), Serbia ranks 95 out of 144 countries (unchanged from
2011-2012). This ranking signals the need for further improvements and structural change in every aspect of the economy.
Individual indicators suggest that Institutional improvements are particularly needed: the burden of government regulation is
ranked 136 (out of 144) and efficiency of the legal framework in settling disputes is 138 (out of 144). Also, the Doing
Business Report 2013 shows that Serbia has improved its ease of doing business rank by 6 places, (ranked 92nd in 2012 to
86th in 2013) and was highlighted as one of 10 economies improving the most across 3 or more areas. The major
improvement has been in the area of business start-ups – recording a positive change in rank of 49 places. This is largely
164Conditions, needs and problems of SMEs 2012, NARD 2013

165Capacity for innovation-133, Company spending on R&D- 127, University industry collaboration in R&D-104
166 Statistical Office of the Republic of Serbia
99
due to the reduction in the number of steps needed to open a business in Serbia and the removal of any requirement for
paid-in minimum capital167. However, once a business is established, it is faced with an overwhelming bureaucratic burden
related to labour legislation, tax payments, and many other administrative obligations. Furthermore, in spite of the significant
rise in ranking in the area of resolving insolvency – up 17 places to 103rd place, there is still much scope for improvement.
In Serbia, it takes 635 days to resolve a dispute and enforce a contract, with 36 procedures and 31.3% cost of the total
value of the contract.
Significant efforts have been invested in reducing administrative and regulatory burden on businesses, including reviews of
current stock of legislation, and introduction of regulatory impact assessment (RIA). Nevertheless, the work on creating
business enabling environment in Serbia is far from complete and such efforts need to be maintained in the future, since it
remains affected by low degree of predictability, lack of transparency, inconsistency in the implementation of legislation and
government interference in the market. The overall operating environment for enterprises remains a major challenge; market
distortions and anti-competitive actions need to be addressed and the environment for doing business improved. Particular
attention should be given to ensuring better connections between the intensive regulatory activity performed as part of the
EU acquis transposition process and ensuring maximum regulatory and administrative simplicity through effective RIA (both
ex-ante and ex-post impact analyses) but also through the use of other legislative techniques. Administrative and regulatory
simplification will be addressed through the Public Administration Reform sector, whereas the Competitiveness sector aims
to ensure proper application of these processes on the operating environment for businesses.
Serbian companies are frequently not even aware or able to recognise anti-competitive behaviour, given that until the
beginning of transition such behaviour was a standard in inter-business interactions168. Such anti-competitive culture can be
considered as the major legacy of centrally planned economy. The last decade of the twentieth century, along with war and
economic sanctions, brought about selective and privilege-based opening of the market, where for example the right of
import and export was awarded only to a selected number of actors, which aggravated the already existing economic
problems, inter alia by stimulating the informal sector. Finally, additional anti-competitive effects resulted from the problems
of the privatisation process, in which the already divided-up markets (as a phenomenon of the centrally planned economy –
e.g. assigning one local market to one local retailer) were simply taken over by private owners, often without any incentive or
tendency in the relevant market to stimulate competition. In effect, the market was distorted and the state has been unable
to effectively address the challenges due to insufficient capacity to analyse and understand its underlying causes.
Furthermore, lack of evidence based policy making, weak reliance on analysis as a basis for shaping policies and
fragmented approach of the state to the competitiveness sector underline the state’s failure to effectively address these
issues in the previous period. Problems have frequently been made worse by introduction of new distorting and non-EU
compliant legislation in specific sectors without properly assessing and understanding the linkages and impacts of such
lateral legislation with the key competitiveness related policies (e.g. introducing new non EU-compliant state aid schemes
under the pretext of the economic crisis, thus creating new distortions in the market). Thus, a more comprehensive,
analytical and focused approach is needed in the future in order to ensure synergic action of the state in policies affecting
the competitiveness sector.
In the area of free movement of goods, a significant part of the relevant acquis communautaire has already been
transposed into the Serbian legal system, by which the basic legal framework has been put in place. The basic institutional
structures have been created. After the completion of the legislation transposition, further work needs to focus on
improvement of institutional structure, implementation/enforcement of harmonized legislation, as well as on the non-
harmonised areas of technical regulations to make sure these regulations do not become barriers for the free movement of
goods with the EU.
Numerous Serbian products that would otherwise be suited for export score low in terms of conformity with international
standards, which in turn decreases their likelihood of entering new markets. In regards to approved applications for grants to
exporters, more than 60% constitute certification, standardisation and introduction of quality systems, specifically in sectors
noted as having a comparative advantage (e.g. food and beverage production, automobile manufacturing and wood
processing). Still, additional work needs to be invested in further transposition of EU technical regulations and enforcement,
particularly through strengthening capacities in quality infrastructure services, completion of the market surveillance system
and reform of inspections.
The general framework for provision of services remains an untreated issue in the Serbian legal system, especially
requirements of the Directive 2006/123/EC on services in the internal market, despite the fact that its provisions are complex
and its overall transposition is quite demanding. Experiences show that this process was protracted even in the majority of
EU Member States. At the moment, even the assessment of the gaps in transposing the Directive and strengthening
coordination for future establishment of the ‘Point of Single Contact’ has not been initiated.
167 The paid-in minimum capital requirement reflects the amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up
to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita; Doing Business Report 2013
168 e.g. in the socialist way of thinking it would have been considered even ethically wrong to set the price without consulting with other socially owned
enterprises in the same sector, who were in any case not considered competitors on the market
100
With regards to Company Law the Agency for Business Registers founded a one-stop registration system in 2009, which
facilitated the procedure of entering the Company Register and applying to the tax authority, and social and health insurance
funds. In the future, the focus should be on the enforcement of existing regulations. For the period 2014-2016 the electronic
registration process is planned to become fully operational, and new registers are to be established. There is a possibility of
amending the Law in order to ensure corporative management in companies in which the state is the owner and are not
public enterprises.
In the area of free movement of capital the principle of gradual liberalisation of capital movement has been endorsed.
Thus, the liberalisation of long-term capital operations has been ensured, while deposit operations of residents were partially
liberalized.
With regard to competition, after initial legal and institutional problems with the Law from 2005, new EU-harmonised
legislation is in place and has proven to be satisfactory, although the track record in implementation needs yet to be
improved. The Commission for Protection of Competition (CPC) still lacks predictable and adequate financial resources in
order to be able to, inter alia, hire highly qualified lawyers and economists with the required knowledge and skills to carry out
the institution’s demanding responsibilities. A particular problem is insufficient performance of sectoral analyses, only a few
of which have been completed so far, as well as drafting of guidelines for CPC procedures. There is a strong need for
training of judges and the private sector, as well as advocacy efforts in competition policy. Although the basic legal and
institutional framework in the area of state aid is in place, further efforts are needed in its enforcement, including awareness
raising and training in the public sector, as well as reducing the overall level of state aid in Serbia. Compliance with state aid
rules and preventing further market distortions should be the focus of additional efforts. Additional alignment of instruments
of state assistance and EU is also required, particularly for regulations on grants assignments and investors’ incentive, as
well as adoption of new Directive on analysis of state assistance effect.
Even though most of the consumer protection acquis has been transposed into Serbian legislation, numerous problems
have arisen in the implementation phase. Problems are mainly related to the weak administrative capacity, poor
understanding and capacities for compliance in the companies, inefficient and untrained judiciary. Despite the fact that the
Law on Consumer Protection refers to alternative resolution of consumer disputes, in practice there are no such
mechanisms (including online mechanisms), which specifically obstructs protection in regards to small claims. Consumer
organizations remain underdeveloped. Additional efforts are necessary in regards to the regulation and protection of
vulnerable consumer groups. Although the National Council for Consumer Protection was formed in 2012, it is still not
acknowledged as a central coordinating body having in mind the multi-sectoral significance of the consumer policy.

Based on the main strategic documents for the sector, which are presented in Annex 1, sector and SWOT analysis the
following priorities for the Competitiveness sector have been identified:
(i) Dynamic and stable economic growth based on an increase in investment and exports – aims at revitalisation,
rehabilitation, restructuring and modernisation of export-oriented production in Serbia and further support to attracting
inward investment. The priority is focusing on increasing export competitiveness of industrial products and services with
high value added which are based on knowledge, innovation and research. Economic growth and increase in
competitiveness of the economy represent a realistic basis for increase in employment and living standard of the
population. Employment and living standard are expected to grow faster with further progress in transition and
restructuring of the economy, removal of institutional and structural constraints and more efficient economic policy
management, faster growth in employment and living standards.
(ii) Creation of a National Innovation System and development of national research excellence – is aiming at the
development of Serbia as an innovative country, where scientists attain European standards, contribute to society’s
overall level of knowledge and advance the technological development of the economy. This will be achieved through
promotion of applied research and technology transfer and stimulating partnerships between the public R&D sector and
industry. Furthermore, the priority is envisaging actions of reorganising existing R&D institutes, ensuring application of
knowledge based innovations into products and services in order to position Serbia as knowledge based and
competitive economy.
(iii) Harmonisation of national legislation with the Aquis to facilitate reforms aimed at creating friendly business
environment and integration in the EU – is striving to create an institutional framework and business environment to
further stimulate industry and entrepreneurship development through reducing or eliminating administrative and
legislative barriers limiting Serbia to have a functioning economy with open market.
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The challenge in achieving these national priorities is that they will require the integration of a wide range of actions across
the whole sector and harmonization with other sectors. The analysis carried out suggests that to focus on only one or two of
these priorities at the expense of others will create problems within the sector, rather than providing sought-for solutions.
NAD Priority 1 Raise levels of productivity and improve the quality of products and services will support the implementation
of Priorities (i) and (ii) by focusing on constant improvements in products and services of Serbian companies to increase
their competitiveness and ability to meet international standards.
NAD Priority 2: Improve innovation levels and enhance quality of public and private sector is in line with Sector Priority (iii)
and has the same objective i.e. to contribute to the development of Serbia as knowledge based economy. The NAD
envisages attainment of this priority by focusing investments on increasing the quality of R&D and promoting applied
research and technology transfer.
NAD Priority 3: Improve operating environment for doing business, with emphasis on evidence based policies and regulatory
simplification will contribute to the achievement of Sector Priority (iii) by focusing on transposition and enforcement of the EU
acquis in the areas of competition (incl. state aid), consumer protection, company law and free movement of goods, capital
and services. In parallel, it will support creation of business-enabling environment though interventions in the current
administrative and regulatory frameworks to help Serbia become a country where it is easy to invest, innovate and create
businesses by eliminating administrative obstacles and through a new incentive labour legislation and more efficient
regulations in the area planning and construction
EU Strategy for the Danube Region promotes socio-economic development in the ‘Danube region and the
Competitiveness Sector priorities and measures are correlating with pillar 3, Building Prosperity in the Danube Region
aiming at developing the knowledge society through research, education and information technologies and supporting the
competitiveness of enterprises, including cluster development. Serbia adopted a governmental decision in 2010169, which
defines its own priority pillars for the Danube Serbia Region, aiming to achieve objectives by facilitating economic
development and strengthening regional cooperation and partnership in the Danube region as well as by creating a
knowledge-based economy through cooperation in the Danube region and the active role of science in achieving the
objectives of the Strategy.
The European Partnership with Serbia from 18 February 2008 (2008/213/EC) sets out a number of relevant short and
medium term priorities, including improving bankruptcy procedures in order to speed up market exit of unviable enterprises
and to foster structural  change and completing the liberalisation of remaining administered prices with the view of
improving the efficiency of market mechanisms and resource allocation. In the issues related to internal market, the
document envisages continuing the alignment of the legal framework on standardisation, certification, metrology,
accreditation and conformity assessment with European standards; adopting European standards and establishing a
national coordination body for quality infrastructure responsible for strengthening the entire area. The administrative capacity
in the area of consumer protection should be strengthened. A system of international payment operations in line with
international rules should be set up. There should be further actions and strengthening the systems of state aid regulation,
and merger control procedures in through strengthening of the Competition Commission. The European Partnership defines
the necessary improvements related to R&D through strengthening the protection of intellectual property rights (IPR) and
administrative capacity for the granting of patents and sustainable implementation and enforcement of IPRs. Serbia should
implement the European Charter for Small and Medium-sized Enterprises and reduce administrative barriers for SME's, as
well as strengthen the SME Council as an instrument for public-private and inter-ministerial cooperation to influence the
 design and delivery of SME policies.
Stabilisation and Association Agreement (SAA) between Serbia and the EU has been signed in 2008, obliging to
establish of a free trade area and harmonization of legislation with the EU law. The agreement created a free trade area
between Serbia and the EU for a transitional period of six years. The deadline for trade liberalization is determined in
accordance with the capacity of Serbian industry and agriculture to adapt to free trade but also with Serbia's desire for faster
completion of reforms and accession to the EU. The pace of liberalization and the degree of protection depend on the
degree of product sensitivity for Serbian industry. Furthermore, the SAA foresees the commitment of Serbia to harmonize
domestic legislation with the acquis. The identified priority areas having a direct impact on creating the free trade area
between the EU are the protection of competition and control of state aid (subsidies), intellectual property rights, public
procurement, standardization and consumer protection.
Small Business Act (SBA)
169
Participation of the Republic of Serbia in the Development of an Overall EU Strategy for the Danube Region, 10 June 2010
102
The Small Business Act for Europe reflects the Commission's political will to recognise the central role of SMEs in the EU
economy and puts into place a comprehensive SME policy framework for the EU and its Member States. It aims to improve
the overall approach to entrepreneurship, permanently anchor the 'Think Small First' principle in policy making from
regulation to public service, and to promote SMEs' growth by helping them tackle the remaining problems that hamper their
development. It is based on 10 principles which should guide the design and implementation of policies both at EU and
national level. These principles include creating a stimulating environment in which entrepreneurs can thrive, designing rules
according to the “Think Small First”, making public administration responsive to SMEs’ needs, facilitating SMEs’ participation
in public procurement and better use of State Aid possibilities for SMEs, facilitating SMEs’ access to finance and developing
a legal and business environment supportive to timely payments, helping SMEs to benefit more from the opportunities
offered by the Single Market, upgrading knowledge and skills, innovation, eco- innovation and supporting SMEs and their
participation on markets. Serbia has made a significant progress in the restructuring of its SME Policy and areas where
Serbia performs on a par with the EU average include Entrepreneurship and Access to finance. However, there is room for
further improvements in areas such as Responsive administration, Internationalisation, Environment, Skills and Innovation,
and Second Chance.
The Central European Free Trade Agreement (CEFTA) was signed under the auspices of the Stability Pact for South
Eastern Europe, in 2006. The Western Balkan countries have created a free trade area. They have joined forces in pursuing
economic development taken responsibility for the future of the entire region, and its European perspective.
Other Free Trade Agreements - At the moment over 86% of Serbia's foreign trade is performed between countries and
trade blocs with whom it has free trade agreements (almost 95% of Serbia's exports, out of which 57% goes to the EU and
around 30% to CEFTA). Other free trade agreements signed by the Republic of Serbia are with EFTA countries, Turkey,
Russian Federation, Belarus, and Kazakhstan (the three latter countries formed a customs union meaning that the Republic
of Serbia harmonized its free trade regime with the entire union of Russia, Belarus and Kazakhstan). Negotiations on a free
trade agreement are undergoing with Ukraine, while the process of Serbia's accession to the WTO is near its finalization.
B4.3. EU Agenda
The Single Market is the foundation of the European integration process. It adds €600 billion a year to the EU economy, and
since 1992 it has helped create almost 3 million new jobs in Europe 170. A functioning and integrated Single Market plays a
key role in achieving the goals and targets of the EU 2020 strategy that wants to turn the EU into a smart, sustainable and
inclusive economy, delivering high levels of employment, productivity and social cohesion. However, the integration in the
Single Market requires legislative adjustments and economic incentives in Member States. Equally, legislative changes,
strong institutions and structural economic reforms pave the way for Candidate Countries to move closer to EU accession.
“Smart growth” as one of the Europe 2020 goals is aiming to improve EU’s performance in creating new products and
services that generate growth and jobs and help address social challenges and in using information and communication
technologies. To be able to achieve the smart growth, the EU should invest 3% of GDP in R&D and innovation and achieve
75% employment rate for women and men aged 20-64. This is reflected in the three flagship initiatives:
 “Digital agenda” which is setting the agenda for creating a single digital market based on fast/ultra fast internet
and interoperable applications with broadband access for all by 2013, much higher internet speeds for all and
internet connections above 100Mbps for 50% or more of European households by 2020;
 “Innovation Union” is focusing on strengthening every link in innovation chain, from basic research to
commercialisation and refocusing R&D and innovation policy on tackling challenges such as climate change,
energy and resource efficiency, health and demographic change;
“An industrial policy for the globalization era” is setting the grounds for the Commission to draw up a
framework for a modern industrial policy, to support entrepreneurship, to guide and help industry to become fit to
meet these challenges, to promote the competitiveness of Europe’s primary, manufacturing and service industries
and help them seize the opportunities of globalisation and of the green economy.
Chapter 20: Enterprise and Industrial Policy
The Europe 2020 strategy and flagship initiatives will be realised through funding of instruments and programmes under the
Multiannual Financial Framework 2014-2020, including the Structural Funds with the European Fund for Regional
Development in particular. The instruments are outlining actions towards creating an environment favourable to business
creation and growth with the Small Business Act (SBA) and reinforcement of the „Think Small Principle“ in policy making as
170 20 years of single market in Europe: achievements, challenges and recommendations, Guido Lobrano
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the nucleus of the national SME development. Support will be given to the economic exploitation of new ideas and business
models and fostering the creation of new firms. The provision of financial instruments for SMEs will feed into the promotion
of more dynamic and internationally competitive SMEs and raise their confidence in creating state of the art products and
services.
Serbia’s NPAA priorities follow the direction of the EU policy foreseen for competitiveness in the new financial perspective.
Serbia will step up its efforts in improving business environment, such as procedures for obtaining building permits and
reform inspection services. The Government will develop a long term Action plan for improvement of business environment
for the forthcoming period. The starting point will be previous work on promotion of business environment and regulatory
reforms, as well as the relevant EU regulations. Special focus will be on elimination of administrative barriers and charges
for SMEs as a continuation of the process initiated in 2012. Serbia will work on implementation of new Strategy for
development of entrepreneurship and competitiveness 2014-2020 to emphasise development of SME and follow the Small
Business Act along with the Strategy and policy of industry development , which is in line with the EU flagship initiative of
“An industrial policy for the globalization era”.
Chapter 25: Science and Research
The “Smart growth” priority actions will further promote business and technological research and innovation in the EU
Member States, with a strong focus on leveraging private sector investment in R&D in order to address SME-specific
problems. Additionally, the investments will focus on enhancing research and innovation infrastructure and capacities to
develop excellence in science base to be able to maintain Europe's competitive edge. Finally, enhancing accessibility and
quality of ICT through extending broadband deployment and development of ICT products and services will enable Europe's
citizens and businesses to get the most out of digital technologies.
According to the NPAA, Serbia will further focus its R&D and innovation policy implementation towards “Innovation Union
initiative”. It is anticipating support for development and adoption of new technologies; networking and career development
of researchers, access to and development of priority research infrastructures, as well as promotion of business research
and innovation in enabling technologies, services and emerging sectors. It is giving a strong focus on leveraging private
sector investment in R&D to address SME-specific problems and providing support for innovation in SMEs with high growth
potential.
The abovementioned instruments are pushing for structural economic changes that should result in increased
competitiveness of the EU economy. Serbia, as a Candidate Country, is streamlining its policy actions in the same
directions, while at the same time it is continuing with harmonisation of its legislation and creation of legislative preconditions
for joining the Single Market.
Chapter 1: Free Movement of Goods

One of the cornerstones of the Single Market is free movement of goods based on prevention of new barriers to trade,
mutual recognition of exceptional restrictions and technical legislation harmonization across EU. Harmonized European
product legislation is based on the so-called "old" and "new" approach, imposing exact and general product requirements.
TFEU, specifically in Articles 34 - 36, 114(4) - 114(9), and 346 - 348 and Commission Directive 70/50/EEC, along with new
package of measures for product trade adopted in 2008 (768/2008/EC, 765/2008/EC and 764/2008/EC) are the main parts
of legislation. The Regulation 764/2008/EC gives the application of national technical rules to products that are to be lawfully
marketed in other Member States171. Procedural measures require administrative capacity as denoted in Directive 98/34/EC
for the provision of information in the field of technical standards, regulations and rules, which was amended by Directive
98/48/EC, Regulation 765/2008/EC, and in Council Directive 93/7/EEC on the return of cultural objects unlawfully removed
from the territory of a Member State172.
Serbia is in the process of preparing the Quality Infrastructure Strategy for 2014-2020. Once the Strategy is adopted, action
plans for its implementation will be prepared and implemented with the aim of strengthening capacities of ministry in charge,
standardisation institutions, accreditation, and metrology and bodies for evaluation of harmonization between products and
regulations. At the same time, the amendments to the Law on Standardisation and the Law on Metrology will be made to
make it compliant with EU acquis and enabling the Serbian Standardisation Institute to become member of CEN and
CENELEC. Following completion of harmonisation of product safety regulations with European harmonised legislation by
2015, a plan for adjustment of the non-harmonised area will be prepared and implemented, beginning with compliance
assessment of Serbian technical regulations with provisions of Articles 34-36 of TFEU.
171 The product legislation related to the new approach is embodied in the Decision 768/2008/EC on a common framework for the marketing of products
along Regulation 765/2008/EC setting out the requirements for accreditation and market surveillance relating to the marketing of products.
172 Also a relevant piece of legislation is the Regulation (EU) No 1025/2012 on European standardization, amending Council Directives 89/686/EEC and
93/15/EEC and Directives 94/9/EC, 94/25/EC, 95/16/EC, 97/23/EC, 98/34/EC, 2004/22/EC, 2007/23/EC, 2009/23/EC and 2009/105/EC and repealing
Council Decision 87/95/EEC and Decision No 1673/2006/EC.
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Chapter 3: Right of Establishment and Freedom to Provide Services
Regarding the right of establishment and freedom to provide services, Articles 49 and 56 of the TFEU represent the primary
sources of legislation. The Directive 2006/123 (Services Directive) requires the Member States to simplify procedures and
formalities that service providers need to comply with. Member States need to implement legislative and non-legislative
measures due to its horizontal nature. Additionally, the chapter covers regulated professions and denotes rules for mutual
recognition of qualifications among Member States in the Directive 2005/36/EC on the recognition of professional
qualifications. In terms of sectoral directives, the Postal Services Directive (Directive 97/67/EC as amended by Directive
2002/39/EC and by Directive 2008/6/EC) requires opening of the postal services, which are to be opened in an incremental
and exact manner.
The NPAA foresees the development of a special law on services by the fourth quarter of 2014 which will transpose the
Services Directive 2006/123. It also envisages a special law on the recognition of qualifications for regulated professions
(harmonisation with the Directive 2005/36/EC) for the fourth quarter of 2013. In the second quarter of 2013 (30th April 2013),
the Strategy of Development of Postal Services in Serbia 2013-2016 was adopted.
Chapter 4: Free Movement of Capital
The obligation of the Member States on free movement of capital is to remove all restrictions of movement of capital within
the EU but also in regards to third countries, with certain exceptions laid down in the acquis. To create a single market for
payments across the Union, the Directive 2007/64/EC on payment services in the Internal Market established a wide-
ranging spectrum of rules. In this way, the basis for the Single Euro Payments Area is provided. Because of Regulation
924/2009/EC which applies to all electronic payment, cross-border electronic payments in euro are facilitated. In order to
battle financial crime, administrative and enforcement capacities were created. The SAA made references to obligations
Serbia has to fulfil.
The free movement of capital is placed in Articles 63 to 66 of the TFEU, whereas the types of capital movement are
elaborated in Annex I of the Directive 88/361/EEC. Other relevant legislation that must be transposed and enforced include:
Directive 2007/64/EC on payment services in the Internal Market (PSD), Regulation (EC) No 924/2009 on cross-border
payments in the EU, Directive 2009/110/EC on the taking up, pursuit of and prudential supervision of the business of
electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC. Other
pieces of legislation of importance are: the Commission Directive 2006/70/EC laying down implementing measures for
Directive 2005/60/EC as regards the definition of ‘politically exposed person’, the technical criteria for simplified customer
due diligence procedures and for exemption on grounds of a financial activity conducted on limited basis as well as the
Directive 2005/60/EC on the prevention of the use of the financial system for the purpose of money laundering and terrorist
financing. In addition, relevant are also Regulation (EC) 1889/2005 on controls of cash entering or leaving the Community,
Regulation (EC) 1781/2006 on information on the payer accompanying transfers of funds, Joint Action 98/699/JHA on
money laundering, the identification, tracing, freezing, seizing and confiscation of instrumentalities and the proceeds from
crime, Council Framework Decision 2001/500/JHA and Council Decision 2000/642/JHA concerning arrangements for
cooperation between financial intelligence units of the Member States in respect of exchanging information.
NPAA envisages drafting new law regulating payment services during 2013. In the same period the Law on Settlement
Finality in Payment and Securities Settlement Systems will be drafted, transposing the Directive 98/26/EC. The National
Strategy for Combating Money Laundering and Terrorist Financing will be adopted in 2013, together with an Action Plan. In
the mid-term period (2014-2016) the new Law on Foreign Exchange Operations harmonised with the Directive 88/361/EEC
will be drafted and adopted.
Chapter 6: Company Law
The first directive on company law encompassed safeguards providing for mandatory disclosure requirements, and
safeguards in respect of subsidiaries. Furthermore, the second directive introduced rules on the establishment of public
limited liability companies and the preservation or fluctuation of their capital. The third and the sixth directives harmonize
national rules in regards to domestic mergers and divisions of public limited liability companies, so as to protect stakeholders
and creditors. Finally, whereas the tenth directive contains rules and procedures facilitating mergers of public and private
limited liability companies across borders, the thirteenth directive harmonizes the rules to expedite takeovers within the EU.
Chapter 7: Intellectual Property Law
The protection of intellectual property represents an essential ingredient of the success of Single market. It promotes
innovation and creativity, creates employment opportunities and increases competitiveness. This part of the Aquis specifies
harmonised rules for the legal protection of copyright and related rights.
NPAA envisages the amendments of the Law on Copyright and Related Rights that will comply with the Directive
2011/77/EC regulating longer deadlines for protection for certain related rights than those required by the Directive
2006/116/EC. Amendments to the law will take into account the comments of the expert services of the EC about the
conformity of laws with Directive 96/9/EC and Directive 2009/24/EC. It is planned to further align the legislation with the
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Directive 2004/48/EC of the European Parliament and of the Council of Ministers of 29 April 2004 on the implementation of
intellectual property rights. Furthermore, continuous capacity building of public administration is planned to progress with the
alignment of national legislation and its enforcement.
Chapter 8: Competition Policy

The competition policy related acquis contains rules and procedures directly applicable across the Union and encompasses
anti-trust and state aid control policies. In regards to Serbia, obligations stem from the IA and the SAA in this area.
The major sources of law that need to be taken into account in the competition area are: Article 37 (State monopolies of a
commercial character), Articles 101-105 (Rules applicable to undertakings), Article 106 (Public undertakings and
undertakings with special or exclusive rights) and Articles 107-109 (Rules applicable to state aid) of the Treaty on the
Functioning of the European Union (TFEU), Interim Agreement on trade and trade-related matters between the European
Community and Serbia- Protocol No 27 in relation to the Article 3 TFEU.
NPAA envisages the revision of the Law on Protection of Competition by the end of 2013 in order to further improve the
legal framework, considering the achieved level of legal transposition and relevant administrative and judicial practice, as
well as the deficiencies listed in the EC Annual Progress Report for 2012. Further transposition will be achieved through
bylaws until 2016.
In the area of state aid, the NPAA foresees achievement of full compliance of state aid schemes with EU law, further
activities regarding the strengthening of the independence of the Commission for State Aid Control, as well as provision of
training to state aid grantors.
Chapter 9: Financial services
EU acquis related to finance services include rules on giving authorisations, work and supervision of financial institutions in
the fields of banking, insurance, voluntary pensions, investment services and security market and infrastructure of financial
market. Financial institution can operate throughout EU according to the “system of unified passports” and with principal of
“country of origin control”, either through branching or through providing cross-border services.
National programme for adopting acquis (2013-2016) envisages that in period 2014-2016 NBS should access passing
legislations and therefore harmonise with Basel III standards according to Regulation on capital demands IV applicable from
1st January 2014. The improvement of providing financial services will also continue in the fields of banking and insurance,
as well as in other fields
Chapter 28: Consumer and Health Protection

The consumer and health protection chapter of the acquis provides a thorough framework of the mechanisms and policy
instruments necessary to govern financing, enforcement and supervision. This chapter also covers general aspects of
general consumer safety, from product quality to commercial practices, in order to ensure corporate responsibility
throughout the production chain, product placement in the market and competition within the community market. The legal
framework covers a wide range of consumer and health issues that need to be addressed in the national legislations and
their enforcement ensured173.
The NPAA states that further alignment of EU acquis (especially the newly adopted and the legislation under preparation in
the EU) will be achieved through a revision of the Law on Consumer Protection by the end of 2013. The new Strategy for
Consumer Protection (2013-2018) was adopted on 31st July 2013 (RS Offical Gazette 71/2013), together with the first
annual plan for its implementation. Amendments to the Law on Protection of Users of Financial Services will be drafted and
adopted in the period 2014-2016.
Chapter 22: Regional Policy and Coordination of Structural Elements
Concerning Chapter 22 Regional Policy and Coordination of Structural Instruments, the Government of the Republic of
Serbia and the European Commission signed the Framework Agreement on 29 November 2007 validated in the National
173 Article 169 of the TFEU, European Parliament resolution on a strategy for strengthening the rights of vulnerable consumers (2011/2272(INI)); Directive
85/577/EEC on contracts negotiated away from business premises, Directive 93/13/EEC on unfair terms in consumer contract, Directive 97/7/EC on the
protection of consumers in respect of distance contracts, Directive 1999/44/EC on certain aspects of the sale of consumer goods and associated
guarantees, Directive 2005/29/EC on unfair business-to-consumer commercial practices in the internal market, Directive 2008/48/EC on consumer credit,
Directive 2011/83/EU on consumer rights, Proposal for a Regulation of the European Parliament and of the Council on a Common Sales Law
COM/2011/0635 final, Proposal for a Directive of the European Parliament and of the Council on alternative dispute resolution for consumer disputes and
amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (Directive on consumer ADR), Proposal for a Regulation of the European Parliament
and of the Council on online dispute resolution for consumer disputes (Regulation on consumer ODR).
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Assembly of the Republic of Serbia on 26 December 2007 by adoption of the Law Ratifying the Framework Agreement174
between the Government of the Republic of Serbia and the Commission of the European Communities on the Rules for
Cooperation concerning EC-financial Assistance to the Republic of Serbia in the Framework of the Implementation of the
Assistance under the Instrument for Pre-accession Assistance (IPA). The Serbian Government adopted the Regulation on
Decentralized Implementation System175 for managing the European Union development assistance funds under IPA.
Five components from the current regulation for 2007-2013 cycle, in period 2014-2020, are changed into policy areas: (a)
the transition process towards Union membership and capacity building; (b) regional development; (c) employment, social
policies and human resources development; (d) agriculture and rural development and (e) regional and territorial
cooperation. The main principle of IPA II will be Sector Approach.
EU priorities for IPA will be defined in Join Strategic Framework (JSF) with the aim of better harmonisation of financial aid
with the EU enlargement strategy. Priorities for separate countries will be defined in CSP prepared by European
Commission, and it will be based on NAD and relevant national ministerial strategies.
The SWOT analysis of the competitiveness between sectors has been undertaken in addition to the situation analysis
presented in previous sections, to set out the long term objectives and medium term strategic priorities and realistic and
targeted measures.
SME Development SME Development
 There is national policy for SME establishment and  Production of goods and services is at a low level (as
growth, and the creation of new Strategy for demonstrated by productivity indicators) and the quality
entrepreneurship and competitiveness development of goods and services is low (as demonstrated by
2014-2020 is underway, with emphasis on SME import/ export indicators)
 The Government’s policy documents on SMEs based  Low cross-sectoral cooperation in SME development
on Think Small Principles confirm its commitment to R&D and Innovation
SME development  The overall standard of publically funded R&D is at a
 Progress in improving the enabling environment for low level compared to international standards (as
SME establishment and growth revealed by publications and citations).
R&D and Innovation  Applied R&D outputs from Public Research
 Improved laws on patents and emergence of a strong Organisations are not suitable for commercialisation
innovation support organisations and supporting EU and do not provide a basis for new products and
funded projects services that can be protected to offer a market
 Strong tradition in research and development enabled monopoly and competitive advantage (as revealed by
existence of centres of scientific excellence (Belgrade, low levels of PCT patent applications and granted
Novi Sad, Niš); patents in other national territories and also by the low
 Doubling of student numbers since the 1990s, and level of university spinouts and start-ups and licensing
over 10,000 university teaching staff deals)
Functional market  Fragmented and underperforming National Innovation
 Significant part of EU legislation transposed, basic System
legal framework established (except for area of Functional market
services)  Legacy of centrally planned economy – anti-
 Majority of institutions already established and some competitive culture, insufficient capacity of public
of them already tested for their effectiveness (except administration, lack accountability and responsibility,
for area of services) poor policy making system, high level of corruption,
large informal sector – grey economy
SME Development  Continued economic crisis makes SME development
 Boosting sectors where Serbia has existing or extremely difficult and reduces government resources
emerging comparative advantage, such as food and for SME support
drink production, automotive manufacturing and wood  Pressure to pursue austerity measures in public
processing spending resulting in decreasing support for SME and
 Self-employment and start-ups increasingly seen as a R&D
174 Official Gazette of RS - International Agreements, no. 124/07).

175
Official Gazette of RS Nos 70/2011, 49/2012
107
creative opportunity to develop a new business idea or  Slowdown of the EU integration process and
innovation, rather than a reaction to lack of jobs weakening of its driving force for reforms
elsewhere  Persisting market distortions in case of failure to
 Inward investing businesses tend to use local supply address problems of corruption
chains to cut production costs which allows greater  Pressure to pursue austerity measures in public
embedding of FDI; spending resulting in decreasing support for SME and
 Foreign trade agreements lead to increased foreign R&D
direct investment  Renewed brain drain of researchers to better funded
R&D and innovation laboratories and universities outside Serbia.
 Restructuring of the Public Research organisations and
investment in to new models of operation accompanied
by modern facilities
Functional market
 Most of the relevant areas of the acquis are very visible
to policy makers and fall into priority areas under the
SAA
 Availability of financing from the EU
 Better link between economy and education
These medium-term challenges identified in the sector background and SWOT have been articulated in the overall objective
and a series of strategic priorities. The following objective has been identified for the Competitiveness Sector:
 To increase the competitiveness and innovation of enterprises within a well functioning market economy
This objective sets a clear direction and signals Serbia’s determination to strengthen its private sector to have more
significant impact on the economy by increasing its ability to compete with others and capacity to innovate and by ensuring
the integrity of the open market. The objective will be implemented by means of three priorities:
Priority 1: Improving the quality of products and services and raising levels of productivity
This priority aims to improve the competitiveness of the Serbian enterprises, by increasing the quality of products and
services and levels of productivity. “Productivity is what determines long-term export and output growth” and the crucial
ingredient is the adoption of new technologies and constant improvements in products and processes. For this to happen,
Serbian enterprises need better access to finance, appropriate modern infrastructure and an updated manufacturing and
production base and targeted supporting services to enable adoption and impactful usage.
Priority 2: Improving innovation levels and enhancing quality of public and private sector R&D
The aim of the priority is to contribute to the development of Serbia as an innovative country, where scientists attain
European standards, contribute to society’s overall level of knowledge and advance the technological development of the
economy. This will be achieved by stimulating and ensuring a national source of new high technology goods and services
originating from the outputs of national R&D activities and to enable them to be transferred successfully to the commercial
sector and commercialised for economic, environmental and public benefit. The priority will seek to improve public sector
understanding of the business sector needs for new technological solutions as well as create opportunities to increase the
level of applied research particularly in inter-disciplinary areas that have the potential for significant impact on
competitiveness of Serbian enterprises and the national economy.
Priority 3: Improving operating environment for doing business through evidence-based policies and regulatory
simplification
This priority seeks to ensure that proper transposition and application of the EU acquis in the areas of competition (incl. state
aid), consumer protection, company law and free movement of goods, capital and services is used as a tool to create a well
functioning market economy. In parallel, it strives to create business enabling environment though interventions in the
current administrative and regulatory frameworks. It addresses both public sector deficiencies related to policy and
legislative design and implementation as well as the private sector deficiencies related to compliance with the legal
frameworks. Throughout this priority the different areas encompassed will be given different treatment, depending on the
stage of legislative transposition, state of development of institutions for implementation and enforcement.
Priority 1 - Improving the quality of products and services and raising levels of productivity
Measure 1.1 Providing of and accessing to finance
This measure will improve the accessibility and use of funds needed to finance growth and innovation. Enterprises requiring
108
financial investment for growth and those who are unable to qualify for a bank loan (unfit to secure the necessary collateral,
have short credit history, who’s anticipated time to make a return on investment exceeds standard debt financing
requirements etc.) require other forms of financing not sufficiently developed in Serbia, including access to equity (venture)
capital. Also, funding for loan guarantees will be enlarged, which will decrease price of bank loans. The ways of increasing
capacities of SME will be sought in order to understand specific requests of financial institutions and characteristics of
different financial instruments and be able to meet their requests. Cooperation with European Investment Fund, European
Investment Bank, European Bank for Reconstruction and Development and other institutions will be developed with the aim
of most favourable funding of SME growth.
Measure 1.2 Ensuring access to sustainable modern infrastructure
The measure will strengthen economic activity and output by ensuring access to the modern infrastructure necessary to
improve and maintain the competitiveness of enterprises across Serbia. Support under this measure will focus on the
improvement of the efficiency (capacity, quality and attractiveness) of existing infrastructure and establishment of new
infrastructure, where the lack of such infrastructure is an impediment to export, enterprise development and inward
investment. Activities will be focused on finalization of project documentation partly developed by other sources, construction
and making sure the facilities are operational. It will include industrial zones, industrial parks, business zones, business
incubators and development of broadband connectivity 176. All steps will follow procedure and criteria for identification and
selection of investment projects set by NIPAC TS.
Measure 1.3 Ensuring a competitive manufacturing and production base
This measure will focus on revitalisation, rehabilitation and modernisation of export-oriented sectors in Serbian industry, as
defined in the national industrial policy. This will be achieved by supporting SMEs to upgrade their products and services
and introduce modern and up-to-date production methods, processes and standards enabling them to compete with
international counterparts. The measure will help Serbian companies strengthen their business linkages by undertaking
necessary steps to integrate into international value chains and exploit potential for growth through activities of clusters and
business support organisations. The measure will support Serbian companies to become competitive through increasing
capacities to have high quality and safe goods, services and management systems that comply with technical standards and
create confidence among consumers. The measure will further develop complementary business advisory support through
introduction of high added value services aimed to increase SME’s market intelligence, operational capacity, productivity
and maximization of production potential and providing comprehensive export information packages for SME
internationalization.
Priority 2 - Improving innovation levels and enhancing quality of public and private sector R&D
Measure 2.1 Increasing the quality of the R&D base to pursue economic development
This measure focuses on raising the quality of R&D from Publicly Funded Research Organisations (PROs) to International
standards through investment in R&D infrastructure including Centres of Excellence, technological parks and supporting
academic research centres, development of human capital and integration of Serbian researchers from the Diaspora into
national R&D activities and international collaborations with other Research Institutes and the private sector. It focuses on
supporting applied research activities that have the potential to achieve scientific excellence and to make a significant
impact on the Serbian economy. Focus on economic impact will be ensured through competitive financing of R&D and
Innovation projects, systemic support to international exchange and high quality international collaboration. It will also
encourage use of both patent and publication systems, licencing systems and recognition of other commercialisation
activities including support for enterprise R&D to reward academic achievement and career development. The measure will
further increase the capacity of national institutions through creation of monitoring and evaluation framework to measure
impact of investment in research. All steps related to infrastructure will follow procedure and criteria for identification and
selection of investment projects set by NIPAC TS.
Measure 2.2 Widening the diversity of support mechanisms for commercialization
The measure addresses the fragmented and inadequate national Innovation System (NIS) by supporting the activities of
organisations that promote applied research and technology transfer and stimulate partnerships between the public R&D
sector and industry such as technology transfer offices. It will diversify the number and type of innovation support
organisations and improve their capacity to deliver a range of innovation support services. It should also stimulate the
development of Global and Sector specific Innovation Systems to expanded reach and ensure specialisation.
Priority 3 - Improving operating environment for doing business through evidence-based policies and regulatory
simplification
176According to the World Bank surveys, 10% increase in broadband penetration is followed by an increase in GDP of 1.3%. Estimations
are that for every job cut by the introduction of information technology, 2,6 new jobs are created
109
Measure 3.1 Improving the policy, regulatory and institutional frameworks by applying evidence-based approach to
policy making and administrative and regulatory simplification
This measure will support the creation of policies and legislation in the relevant areas (free movement of goods, company
establishment and provision of services, free movement of capital, company law, financial services, competition including
state aid and consumer protection) that are based on proper research of problems in the operating environment for
businesses in Serbia, identification of solutions based on evidence, as well as robust regulatory impact analysis (RIA) as an
important element of evidence based policy making. This means that research and analyses will be supported to underpin
development of future legislative and institutional solutions, thus ensuring that the most efficient, cost-effective, sustainable
solutions are adopted in the policy making and legislative drafting process, depending on the specific needs of individual
areas. Furthermore, emphasis will be placed on business enabling environment reforms, through regulatory and
administrative simplification (cutting red-tape) at national and sub-national levels, introducing e-government solutions
wherever possible. In the same vein, support will be provided to sound and evidence based monitoring and evaluation of
adopted policies and legislation.
Measure 3.2 Improving administrative capacity with attention to proper estimation of necessary staff, other
resources, knowledge and skills in the administration and judiciary
This measure builds on the Measure 3.1 by ensuring that the policies and legislation that are properly created and for the
implementation of which a proper institutional framework has been designed can in effect be implemented and enforced by a
capable and skilful administration and judiciary. Particular focus in the implementation of this measure needs to be given to
precise estimation of the staff and other resources (e.g. via functional reviews), as well as knowledge and skills, needed for
effective and efficient implementation of the policies and legislation. Attention will also be given to the reform of inspections,
focused on ensuring their effectiveness in fighting grey economy, to consolidation of the market surveillance system, as well
as strengthening administrative capacities for effective fighting against breaches of IPR rules. Additionally, the measure will
support strengthening of capacities responsible for establishing of efficient system related to financial services.
Capacities of civil society organisations, in particular consumer organisations, will also be strengthened, in view of their role
in ensuring proper implementation of the legislation.
Measure 3.3 Improving framework conditions and capacities of companies for complying with the EU-harmonised
legislation
This Measure addresses the problems related to the functioning of the market economy in Serbia from the side of the private
sector. While the Measure 1.3 aims to provide classical business support mechanisms to companies, this Measure focuses
on full implementation of technical regulations harmonised with the EU regulations and raising the capacities of the
companies to fully comply with the intensively evolving regulatory framework in the EU accession process. Through it,
support will be offered to relevant providers of support services to companies in order to develop effective and up-to-date
training and advisory programmes in the areas of competition, intellectual property consumer protection and quality
infrastructure as areas where companies directly implement the legislation, thus enabling the companies to better comply
with the new and more demanding operating environment, including through self-regulation.. At the same time, along with
the strengthening of the capacities for compliance of product evaluation in laboratories for standardization, this measure will
help Serbian companies to become more competitive. Also, the training and consulting services provided by this measure
will help Serbian companies to identify and utilise the benefits and opportunities of full compliance with the new legislation in
the mentioned areas, including the ones positively affecting their export capabilities. Particular care will be taken to apply
state aid rules, so as not to create further market distortions.
Regional, Cross-Border and Transnational Themes in the Competitiveness sector
Priorities related to the MB IPA include increase in regional competitiveness through better access to finance for SMEs in
close cooperation with the IFIs. The attention should be given to further strengthening of WB EDIF 177 and its ability to
provide required support for SMEs. The support should provide further capacity building to quality infrastructure institutions
and market surveillance and contribute to the full functioning and implementation of the CEFTA agreement, as well as its
competition, state aid, consumer protection and IPR related aspects. Having in mind that CEFTA is more than a simple free
trade agreement consisting in elimination of tariffs and quantitative restrictions and that it in a way prepares the countries of
the WB for future accession to the EU single market, trade related aspects of CEFTA need to be additionally supported and
addressed at the regional level as well.
CBC and Transnational priorities are linked with the following ERDF thematic objectives: Strengthening technological
development and innovation (Thematic objective 1); and Enhancing competitiveness of SMEs (Thematic objective 3).
177 Western Balkan Enterprise Development and Innovation Facility
110
Possible areas of intervention of the high potential for implementation are equipping research infrastructure; innovation or
regional and development projects that result in new or significantly improved products to the market or firm; innovation or
regional and development projects leveraging in private investment. The focus should be on education establishments and
research institutions. It would also be important to leverage private and public investment and support to SMEs and start-
ups. Particular attention should be on development of local business related infrastructure, such as tourism infrastructure.
The priorities should also include support to cross-border initiatives in the area of consumer protection.
Priority areas under the Pillar 3 of the EU Strategy for the Danube Region include the development of the Knowledge
Society (research, education and ICT) and support to the competitiveness of enterprises. Targeted support for research
infrastructure, stronger networking between universities, enterprises and policy- makers, and better use of information and
communication technologies will be the focus of support in order to advance the Region’s growth. The emphasis should be
given to improved information and knowledge exchange between business, academia, administration and citizens. Further
focus should be on stimulating excellence in research and development, cooperation between knowledge providers,
companies and the public sector and the incentives for stronger cooperation should be developed. The development of
clusters and centres of excellence should be fostered and cluster cooperation across borders and sectors should be
facilitated as well as the institutional capacities of business support agencies and industry associations.
Within sector approach, the competitiveness sector in Serbia falls under the competence of the following institutions:
ministry in charge of economy, ministry in charge of finance, ministry in charge of regional development, ministry in charge
of education, science and technological development, ministry in charge of agriculture, ministry responsible for trade,
ministry responsible for information society, Innovation Fund, National Bank of Serbia, Serbian Export Credit and Insurance
Agency, Serbia Investment and Export Promotion Agency (SIEPA), National Agency for Regional Development, Intellectual
Property Office, Institute for Standardization of Serbia (ISS), the Accreditation Body of Serbia (ATS), Directorate for
Measures and Precious Metals (DMDM), Commission for State Aid Control, Commission for Protection of Competition,
National Consumer Protection Council, National Council for Regional Development, as well as new counselling body for
competition yet to be established. The lead institution for the sector is the ministry in charge of economy.
mechanisms have been introduced, that is to say, the Sector Working Group (SWG) for Competitiveness 178 has been
established. The SWG for Competitiveness is responsible for coordination of activities related to planning, programming,
and monitoring of EU funds and international assistance, to propose relevant measures and activities and to support the
introduction of sector approach in Competitiveness sector. The functioning, management, organization and composition of
SWG is more precisely defined by the “Rules of Procedure for Sector Working Groups for the Programming and Monitoring
of the EU Funds and Development Assistance”. The institutions participating in the SWG are public administration body in
charge of European integration, Central bank, ministry in charge of economy, ministry in charge of trade, ministry in charge
of telecommunications, ministry in charge of information society, ministry in charge of agriculture, ministry responsible for
science and technological development, ministry responsible for regional development, ministry responsible for local self-
government, ministry in charge of labour and employment, public body in charge of intellectual property and public body in
charge of gender equality.
the respective sectors, SEIO established a consultation mechanism with the civil society organisation (CSOs)179. This
mechanism is based on the consultative process with Sectoral Civil Society Organisations (SECOs) and serves as a
platform that enables exchange of information and contribution of CSOs, including business associations, in relation to
planning development assistance, particularly programming and monitoring of the Instrument for Pre-Accession Assistance
(IPA). The SECO indicates a consortium of maximum three CSOs as partners, one of which is clearly indicated as leading
partner. SECO is composed of the CSOs that have significant experience with public advocacy, analyses and research in
the sector, as well as experience in direct work with service providers and beneficiaries. They are influencing public policy
due to their successful networking and partner work with other local and international civil society organisations well as
178
Act on establishing the SWG from 5.11.2012. No: 119-01-68/2012-03
111
constructive cooperation with state institutions and the constant monitoring of their work. Members of SECO are participating
at the SWG meetings based on the needs and requirements of each SWG meeting and takes part in consultation processes
for analysing sector priority goals, measures and operations for financing from EU funds and international assistance. Other
relevant stakeholders (agencies, private and academic sector, CSOs, etc.) can participate at the SWG meetings based on
the topic, needs and requirements of each Sector Working Group meeting.
Force made up of representatives from the Sector Lead Institution, Lead donor and SEIO.SWG is also acting as a Sectoral
180
Sector for Planning, Programming, Monitoring and Reporting on EU Funds and Development Assistance
112
PRIORITY 1: Improving the quality of products and services and raising levels of productivity
Baseline Target Institution in charge of
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
15,341.8 15,86 16,497. 17,157 17,844 18,557 19,300 20,07 Ministry in charge of
1.1 Gross value added (GVA) per employee Euro 15,041
2 3.44 98 .90 .21 .98 .30 2.31 economy
Statistical yearbook181
Millions of 10,68 11,865. 13,182 14,646 16,271 18,077 20,08 Ministry in charge of
1.2. Annual value of export 8,843 9,656.56
euros 0.15 65 .73 .02 .73 .89 4.53 economy
1.3. Report of World Economic Forum Global competitiveness Ministry in charge of
Score/Rank 3,9/95 3,8/101 3,7/99 3,7/98 3,6/97 3,6/96 3,5/95 3,4/94 3,1/90
(Global Competitiveness Index) index economy
MEASURE 1.1: Providing of and accessing to finance
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
Global competitiveness Ministry in charge of
1.1.1. Availability of financial services Score/rank 4.0 /97182 3,9/99 3,8/97 3,8/96 3,7/95 3,6/94 3,6/93 3,5/92 3,1/89
index economy
3,5/11 3,4/10 3,3/10 3,2/10 3,2/10 3,2/10 Global competitiveness Ministry in charge of
1.1.2. Affordability of financial services Score/rank 3.7 / 100 3,6/112 3,5/109
0 8 7 6 5 1 index economy
MEASURE 1.2: Ensuring access to sustainable modern infrastructure
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
Annual Reports of the
1.2.1. Establishment of viable business Ministry in charge of
Number Ministry in charge of
infrastructure183 regional development
regional development
Annual Reports prepared
1.2.2. Prepared projects of business related Ministry in charge of
Number/Value by the Ministry in charge
infrastructure184 regional development
of regional development
1.2.3. Number of companies and enterpreneurs Annual Report of relevant Ministry in charge of
which use objects of business infrastructure ministries regional development
MEASURE 1.3: Ensuring a competitive manufacturing and production base
Indicator Unit
Baseline Target Means of Verification
Institution in charge of
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 reporting
Ministry in charge of
1.3.1. Trade balance with EU Millions of USD 4,355 4,237 4,025 3,824 3,632 3,451 3,278 3,114 2,959 Statistical yearbook
economy
181 Data on indicator are available in web database of Statistical office of the Republic of Serbia
182 Number of countries varies in the annual reports. Therefore, rank and score should be used simultaneously.
183 Infrastructure built is viable and sustainable (in terms of operation and maintenance) in the context of the feasibility study and strategic assessment criteria set by the NIPAC TS
184 Projects ready for approval and implementation including all required documentation (designs, studies, impact assessments and permits) and other conditions (including site ownership, identified and functioning operator and strategic
assessment criteria set by the NIPAC TS)
113
1.3.2. Firm-level technology absorption Score/rank 3.6/142 3,7/137 3,6/135
1.3.3. FDI and technology transfer Score/rank 3.8/123 3,9/115 3,7/113
PRIORITY 2: Improving innovation levels and enhancing quality of public and private sector R&D
Target Means of Institution in charge of
Indicator Unit Baseline (2012)*
2013 2014 2015 2016 2017 2018 2019 2020 Verification reporting
GERD/GDP
(2011) Ministry in charge of science
0.777% Statistical
2.1.Gross Domestic Expenditure on R&D (GERD) % of EU27 and technological
38.3% yearbook
average development
(2011)
Ministry in charge of science
2.2. Business Enterprise Expenditure on R&D BERD/GDP Statistical
0.073% and technological
(BERD) (2011) yearbook
development
MEASURE 2.1: Increasing the quality of the R&D base to pursue economic development
Target Means of Institution in charge of
Global Ministry in charge of science
2.1.1. Quality of scientific research institutions† Score/ rank 3.6/ 67 Competitiveness and technological
Index (2.33) development
2.1.2. University-industry collaboration in R&D Score/ rank 3.2/ 99 Competitiveness and technological
Ministry in charge of science
Global Innovation
2.1.3. University/industry research collaboration Score/ rank 40.5/ 78 and technological
Index (5.2.1)
development
MEASURE 2.2: Widening the diversity of support mechanisms for commercialization
Baseline (2012)* Target Means of Institution in charge of
Indicator Unit
2.2.1. Capacity for innovation Score/ rank 2.5/120 Competitiveness and technological
2.2.2. Innovation linkages Score/ rank 27.1/ 114 Competitiveness and technological
PRIORITY 3: Improving operating environment for doing business through evidence-based policies and regulatory simplification
Target Means of Institution in charge for
114
Global
3.6 out of 7/ 136
3.1. Goods market efficiency Score/Rank Competitiveness Ministry in charge of economy
out of 144
Index (6)
Global
2.4 out of 7/ 136
3.2. Burden of Government regulation Score/Rank Competitiveness Ministry in charge of economy
out of 144
Index (1.09)
WB Doing
3.3. Ease of Doing Business Rank 86 out of 185 Ministry in charge of economy
Business Index
MEASURE 3.1: Improving the policy, regulatory and institutional frameworks by applying evidence-based approach to policy making and administrative and regulatory simplification
Global
2.8 out of 7 /142
3.1.1. Effectiveness of anti-monopoly policy Score/Rank Competitivenes Ministry in charge of economy
out of 144
s Index (6.03)
Global
3.1.2 Number of procedures required to start 7 out of 17/ 74
Score/Rank Competitivenes Ministry in charge of economy
a business out of 141
s Index (6.06)
Global
3.1.3 Transparency of Government policy Competitiven
Score/Rank Ministry in charge of economy
making ess Index
(1.12)
MEASURE 3.2: Improving administrative capacity with attention to proper estimation of necessary staff, other resources, knowledge and skills in the administration and judiciary
Global
3.2.1. Favouritism in decisions of 2.3 out of 7/132
Score/Rank 127 122 117 112 107 102 97 92 Competitivenes Ministry in charge of economy
government officials out of 144
s Index (1.07)
“Some
3.2.2 Progress in assessment of Serbia’s
progress” in EC Progress
capacity to take on the obligations of EU 5/6 6/6 6/6 6/6 6/6 6/6 6/6 6/6 6/6 SEIO
6 chapters (6 Report
membership in 6 relevant chapters
out of 6)
MEASURE 3.3: Improving the framework conditions and capacities of companies for complying with the EU-harmonised legislation
115
Global
3.3.1. Government provision of services for 2.8 out of 7/ 126
Score/rank Competitivenes Ministry in charge of economy
improved business performance out of 139+
s Index (1.13)
3.3.2. Infringements of competition Annual Report
Number Ministry in charge for trade
legislation by companies of CPC
3.3.3 Misdemeanours proceedings in Market
consumer protection area initiated by the Number 9.835 9.000 8.900 8.500 8.000 7.500 6.500 6.000 Inspectorate Ministry in charge for trade
Market Inspectorate Report
116
According to the ISDACON database, the competitiveness sector is among the largest recipients of assistance from the
international donor community over the period 2007-2012 with estimated total disbursement amounting to €993.46 million.
In the seven annual programmes 2007-2013, IPA component I is financing projects in the competitiveness sector worth
around € 120.83 million, focused on the effective operation of markets: strengthening the market surveillance system for
non-food and food products, through transposing EU directives, establishing an appropriate management system,
harmonising guidelines for inspectors and delivering training, and raising public awareness; enhancing consumer protection
in Serbia, , facilitating institutional cooperation, developing information systems for policy makers, and implementing an
information campaign on consumer rights; and supporting the enforcement of intellectual property rights. IPA assistance is
also improving the quality, range and availability of business support services, supporting cluster development, supply chain
development, export promotion and innovation within SMEs and technology transfer through an enhanced institutional
framework, improvement in the business support infrastructure, strengthening conformity assessment structure and
development of instruments for financing SMEs innovations as well as supporting activities linking tourism potential to
economic development and increasing the attractiveness of Serbia Danube Region. IPA 2013 support aims to strengthen
the role of public sector in creating preconditions for modernisation and growth of Serbian economy by focusing on business
environment, competitiveness of enterprises, as well as R&D and innovation capacities and cooperation. IPA 2013 support
will especially focus on strengthening the business environment and provision of conformity assessment infrastructure,
creating a strategic framework for R&D and innovation, and promoting cooperation between research institutions and private
sector. The IPA Multi-beneficiary programmes implemented in 2007-2013 aimed at strengthening the innovative capacity
of the Western Balkans by stimulating R&D using the regional potential. It encouraged co-operation and gradual
liberalization of trade in services and contributed to the implementation of the Small Business Act for Europe, especially by
improving the overall policy approach to entrepreneurship. Furthermore, the Multi-beneficiary IPA facilitated the
harmonisation of the legislative framework and implementing mechanisms in the field of free movement of goods to enhance
trade within the region and between the region and the EU. Finally, MB IPA’s support through Western Balkans Investment
Framework helped the preparation and implementation of the priority infrastructure investment projects and provided the
necessary means to the economic actors, i.e. financial institutions and businesses to enable them to offer competitive
products and services and to face challenges following the economic crisis.
In relation to other donors, promotion of national growth by increasing the competitiveness of Serbian SMEs, strengthening
business environment, supporting firms to attain international standards and certification, supporting sales and marketing
(trade shows and market research), creating industry groups and associations, stimulating business clusters, establishing
cooperative network of public and private actors, and encouraging e-government through website standardisation have been
supported by donors, such as Germany, Austria, Denmark, Italy, Slovakia, Switzerland, United States, and the World Bank.
The competitiveness sector will require additional support both from national budgetary resources and international funding.
The wide spectrum of activities expected for implementation requires continuous financing.
A recent SIDA Report on “Evaluation of effectiveness and efficiency of development assistance to the Republic of
Serbia”185has found the relevance of the assistance to be very high and in line with the national strategies and donor
objectives. Nevertheless, one of the main constraints is the lack of clear and consistent development vision of the
Government about desirable outcomes in the competitiveness sector. The effectiveness was high, producing many results
that contributed to targeted objectives of the competitiveness sector. The interventions have contributed to the capacity of
the Government to improve the environment for doing business although not in areas connected with the implementation of
new legislation/policies and the sustainability of achieved results. The SIDA Report emphasized high level of efficiency in
implementation of projects from this sector. However, efficiency was affected by many factors, from the lack of consistent
development agenda (lack of continuity), through difficulties in inter-ministry coordination and cooperation, to weak capacity
of public administration to promptly respond to the demands within the project cycle. While impact of the assistance has
been evaluated as low partially due to the economic crisis, some positive examples such as removed business barriers or
direct support to the private sector were recorded. Sustainability of development assistance was considered as medium,
and is highly dependent on the Government’s capacity to incorporate achieved results into policy interventions, or the
political willingness to support the institutions and services developed with assistance.
As recommended in the SIDA Report, there is a need to have an overall consensus on long-term sector-based
development priorities. In addition, there is a need to improve the supportive policy framework for business clusters,
business incubators, industrial, science and technology parks, regional development, e-commerce and broadband
infrastructure. The Government should combine policy change with direct financial and non-financial assistance to
185 SIDA, Evaluation of effectiveness and efficiency of development assistance to the Republic of Serbia per sector, Final Report
117
companies, especially in strategic sectors (agriculture) or in geographic areas of special interest (such as disadvantaged
areas with high unemployment rates).
The development assistance should continue to focus on: developing the quality of business advisory services to private
sector entities; export promotion and market penetration; FDI and inward investments; development of business
infrastructure; technology transfer and increasing productivity and innovation. But future support must be market oriented
with clear evidence of the same. Development assistance should also support government initiatives to develop a
knowledge-based, innovation-driven economy (technology transfer, strengthening links between research and the private
sector) to avail of well identified and informed new market opportunities. Activities to address obstacles in building
broadband infrastructure across the country are critical in this regard. Creating a business-friendly climate should remain
an absolute priority for future development assistance. Support priorities should be ensuring fair competition, creating a
predictable and transparent legal system,186 fighting corruption (particularly interference with foreign investors) and reform of
the public administration. Addressing these issues requires coordination with reform activities in other sectors, primarily with
the Public Administration Reform and the Rule of Law.
In addition, there is an ongoing evaluation lunched by EU Delegation in this sector. The report on Technical Assistance for
Evaluation of Competitiveness Sector Implemented and Financed by IPA Programmes and other Donors in the Republic of
Serbia is in progress.
Special attention is warranted for territorial development with the overall aim of reducing the high regional disparities in
Serbia. These initiatives should have a strong economic and market rationale to ensure sustainability.
Development assistance needs to further strengthen the government capacities for market surveillance, product safety
and consumer protection. Building laboratories for quality control and advancing policy framework and human capacities
within inspectorates should be continued but with a greater focus on implementation and data evaluation to inform future
standards and policy.
186 There are cases of partial implementation of the legislation, which create instability and insecurity in doing business.
118
B5 ENERGY SECTOR
The Energy sector encompasses electricity and heat, coal, oil, gas and renewable energy sources.. Given the inherent
environmental externalities of the energy sector, mainstreaming of environmental priorities into variety of instruments in
energy policy and operation of energy utilities is of great importance.
Production of primary energy involves exploitation, i.e. use of domestic coal resources, crude oil, natural gas and renewable
energy resources (hydro potential, geothermal energy and biomass). In 2011 Serbia produced 11.163 Mtoe (million tons of
oil equivalent) of primary energy. This production satisfied almost 70% of total primary energy needs. The structure of
domestic production of primary energy: coal production is 7,823 of total domestic production of primary energy, and the rest
refers to crude oil production, hydro potential, oil production, wood fuel and natural gas. Total production of primary energy
in 2011 was 16,192 Mtoe. Import dependence of Serbia in 2011 was 30.28%. In 2011, mostly imported were oil and its
derivatives 52%, natural gas 24 %, coal 14%, etc. The production and consumption of electric energy are basically
balanced. Serbian electroenergetic system is relatively well connected with the neighbouring countries; however, there has
to be better integration in order to improve unobstructed functioning of regional and European electric energy market.
Energy in Serbia is mostly consumed by households 187and less energy is used in activities contributing to the creation of
GDP and employment .Total final energy consumption in Serbia in 2011 amounted to 9.252 Mtoe. “Household sector has a
share of 35% in final energy consumption, industry 29.3%, transportation 21.4% and the rest is consumed through public
and communal activities, agriculture and energy consumption for non-energetic purposes.”
Oil derivatives are the largest energy source in the structure of final energy consumption (accounting for 30% of total final
energy consumption), followed by the electricity (27%) and fuel wood (12%) 188. Buildings are actually the largest consumers
of energy in Serbia together with private cars. Age and energy efficiency of the building stock and car fleet are unfavourable.
Systems for household heating using fuel wood (which is the heating technology used by the majority of households) are of
very low efficiency which places a huge demand for fuel wood and pushes the price of wood up and places a high burden on
the wood processing industry. At the same time this inefficiency means that households supplement their heating by using
electricity and reducing the security of supply. More than 50% of electricity consumed is used by households. 189 Almost all
domestic hot water preparation is done using electricity. The average Serbian household uses more than 4,700 kWh of
electricity annually, ranking among the highest average electricity consumption per dwelling in Europe. 190 Residential energy
efficiency needs to be addressed in the early stages of sector modernization if energy policy objectives are to be met. Heat
distribution and consumption in the district heating systems can also be described as inefficient. Consumer debt to the
utilities providing electricity and heating are extremely large, as is the debt of the heat providers to the fuel suppliers which
are almost equal to the combined annual revenues of all the utilities. The Government of Serbia issued a decree on
vulnerable energy customers in 2013 which marks the beginning of the fight against energy poverty in the country.
In 2011, the share of renewables in the final energy consumption was 17.5%, with main contributions from fuel wood
(around 10%) and slightly more than 7% electricity produced in hydro power plants. The targeted National share of
renewables in final energy consumption191 for the year 2020 is 27%. The target is to increase the use of renewable energy
by 6% comparing to the share of renewables from 2009, which has been selected as the base year. The developing policy
framework for the energy sector reflects the identified needs of increasing energy efficiency and usage of renewable energy
sources. National Renewable Energy Action Plan has been adopted by the Government in June 2013. . In 2013 Serbian
Government adopted the First National Action Plan for Energy Efficiency for the period 2010-2012 (I APEE).This action plan
set indicative objectives for this period worth 1.5% of final energy consumption comparing to baseline year 2008 (0.1254
Mtoe) i.e. the aim of minimum 9% savings in consumption of final energy in the next 9 years of application (until 2018). A
short-term objective of 1.5% should be achieved through implementation measures for improvement of energy efficiency in
households, public and private sectors (0.0235 Mtoe), industry (0.0566) and transportation (0.0453 Mtoe). The Second
Action Plan for Energy Efficiency for the period 2013-2015 (APEE) is prepared and should be adopted in third quarter of
2013. The second APEE sets indicative objectives for the period 2013-2015 and the re-distribution of objectives to
consumption sectors and measures of improving energy efficiency per sector is done. The Law on Efficient Use of Energy
18735% of final energy consumption in 2010. Household’s consumption in the Energy balance for 2011 presented together with agriculture, public and
communal activities and other as “Others”.
188Coal accounted for 11% while heat and natural gas added 10% each
189Source: EPS, MEDEP
190Calculations based on EPS and MEDEP data on consumption and 2011census data on household numbers.
191
Calculated in in accordance with Directive 2009/28/EC
119
adopted in March 2013 introduced the instruments to lead to energy savings according to APEE and to fulfilling obligations
to Energy Community regarding implementation of relevant directives. The Law defines: obligation of establishing system of
energy management, founding a fund for energy efficiency, energy checks, energy preservation, request for ecodesign,
criteria of energy efficiency in public provisions, energy services and ESCO, requests in production, transfer and distribution
of energy and in transportation.
Level of coal consumption and energy intensity of Serbian economy are above European average and it is expected from
New Energy Strategy (which covers at least 15 years)192 to seriously tackle these issues.
Energy is supplied to the final consumers via a system of transmission/transport and distribution networks. Losses in the
distribution amounted to 13.6 % and in transmission of electricity losses amounted to 3.14 % in 2011193, whilst losses in
transport and distribution of natural gas amounted to 23 million Stm3 194 representing 1% of gross inland consumption.
It is important to notice that harmonization of the national legislation with the EU acquis and standards in the energy sector
will require considerable efforts of all levels of administration and require massive capital investments. However, the benefits
so gained have been assessed as being much greater than investments required195. The Ministry in charge of Energy has
intensified the preparation of legal and policy documents over 2012-2013 in order to create the strategic framework for
accelerating the modernization of the sector. There is also a need to build the capacities of professional organizations (and
the interested public) to participate in the process of policy making, implementation and monitoring in order to provide
professional support to policy making efforts of the administration and thereby contribute to the modernization of the sector.
The Ministry has come up with a long list of 46 priority projects for this sector 196 containing projects in various stages of
development, grouped in three clusters (strategic, national and local) with financial requirements totalling to more than 12
billion €, of these electricity production projects totalling to nearly 11 B€ (92%)197.
Significant financial needs are necessary to implement measures for environment protection in Serbian energy sector plants
and therefore harmonize their work with corresponding national and EU legislation regarding environment protection. The
amount of these means is defined in Energy Community document called Study on the need for modernization of large
combustion plants which states that these means in the view of harmonization of limits according to Directive on large
combustion plants 2001/80/EC is around 650 million €; with limits according to The Directive on industrial emissions
2010/75/EC is about 700 million €.
Further harmonization of legislation and standards is needed in order to facilitate investments in these or other possible
projects, given that the Serbian energy market is supposed to be increasingly integrated into pan-European energy markets.
According to EC 2012 Progress report, further efforts are needed to achieve real market opening, unbundling and cost-
reflective tariffs. Institutional and structural changes of the energy companies, in particular EPS and Srbijagas, will be
needed to ensure that investments in energy activities are in line with EU standards for energy, environment and competition
and take account of relevant social aspects.
(i) Continuous technological modernization of existing energy facilities/systems/sources in the subsectors of oil,
natural gas and coal; with open pit and underground exploitation within the electric energy sector;
modernization of thermo power plants, hydropower plants and combined power and heat plants and the
transmission and distributions systems.
(ii) Rational use of quality energy sources and improvement of energy efficiency in energy production, distribution and
final consumption.
(iii) Use of renewable energy sources and new more efficient and environmentally friendly energy technology and
facilities/equipment.
(iv) Extraordinary/urgent investments in new power sources with new gas technologies (combined gas-steam thermo-
power facilities)
(v) Constructing new energy infrastructure facilities and electric and thermal power sources within the energy sectors
of Serbia, as well as capital-intensive energy infrastructure, within the frameworks of regional and pan-
European infrastructure systems connected with Serbian systems.
192 Condition according to Law on Energy

193 Percentage of gross consumption Source: Regulatory Energy Agency
194Source: Regulatory Energy Agency
195Environmental Approximation Strategy
196 Without those proposed for the support though IPA 2013 framework
197 Source: MEDEP, own calculations based on MEDEP data.
120
It is important to mention that a draft of Serbian Energy Development Strategy until 2025 is prepared with projections until
2030, and its adoption by the Government is expected by the end of 2013, and by the Parliament by the beginning of 2014.
The new Energy Strategy is defined by three basic priorities of further development in Serbian energy sector: the
development of domestic and regional market, securing energy safety and sustainable development. The document is
entirely aligned with all obligations stipulated in the Energy Community Treaty.
Taking into account national strategic framework, SWOT analysis and the facts that the current national strategic framework
has been created before the establishment of the Energy Community Treaty the following NAD priorities have been
identified.
NAD priority 1: “Improved policy, institutional and legislative framework to ensure a sustainable development in the energy
sector” is identified as the priority given the fact that the weaknesses in these frameworks create obstacles for the
advancement of the national priorities (i)-(v) identified in the national strategic document.
NAD priority 2: “Secure reliable, high quality and efficient energy supply chain” identifies that technological upgrade, more
efficient use of energy and deployment of renewable energy sources are all needed in order to achieve the priorities (i), (ii),
(iii), of the national energy strategy.
NAD priority 3: “Mitigate adverse impact of energy sector to the environment through reduction of pollution, soil remediation
activities and preparatory activities aiming to facilitate future sustainable energy production” focuses on the resolution of the
environmental problems in energy sector and on utilization of proper management techniques preventing the creation of new
environmental degradation so as to contribute to national priorities (ii), (iii), and (v).
When developing NAD measures for implementation of priorities, following targets set in national documents were taken into
account for the period 2014 - 2020:
 National indicative energy savings target of not less than 9% of the final inland energy consumption for the period
from 2010 to 2018 (1% annually on average ), which means that the country should ensure energy savings
amounting to 0.752Mtoe
 The share of renewable energy sources in the electricity sector will amount to 37 %, in the heating and cooling
sector it will amount to 30 % and in the transport sector to 10 %, in 2020. All these individual goals will enable
meeting the joint target of 27 % in GFEC.
The Energy Strategy of the Energy Community with the strategy paper accompanied by Projects of the Energy
Community Interest (PECIs) and associated policy measures. Main objectives are the creation of a competitive integrated
regional energy market, attracting investments in the energy sector and providing secure and sustainable energy supply to
customers.
The EU Strategy for Danube Region aims at boosting the development of the Danube Region and was proposed by the
European Commission on 8 December 2010. Member States endorsed the EU Strategy for the Danube Region at the
General Affairs Council in 2011.The Strategy articulates four main pillars, out of which the Pillar I: Connecting the Danube
Region and more specifically through the Priority area (2): Encouraging sustainable energy addresses the energy sector.
Serbia adopted a governmental decision in 2010 198, which defines its own priority pillars for the Danube Serbia Region,
aiming to achieve better utilization of the Danube potentials as a resource significant for sustainable development of the
Republic of Serbia among other through the development of the transport and energy systems, and information and
communication technology (ICT) along the Danube.
The Law on ratification of the Treaty establishing the Energy Community 199ratifies this Treaty and integrates important
parts of EU acquis in energy, environment and competition into Serbian national legislation. This treaty also regulates the
obligatory application of Directive on large combustion plants 2001/80/EC until the end of 2017.The Stabilization and
Association Agreement sets out the directions of cooperation as follows: planning of energy policy, modernisation of
infrastructure, improvement and diversification of supply and improvement of access to the energy market, facilitation of
transit, transmission and distribution and improvement of energy interconnections of regional importance with neighbouring
countries; the promotion of energy saving, energy efficiency, renewable energy considering the environmental impact of
energy production and consumption; the formulation of framework conditions for restructuring of energy companies and
cooperation between undertakings in this sector. The European Partnership with Serbia from 18 February 2008
(2008/213/EC) (under: Sector policies – Energy) sets out a number of priorities, including: the obligations arising from the
Energy Community Treaty.
198 Participation of the Republic of Serbia in the Development of an Overall EU Strategy for the Danube Region, 10 June 2010
199Official Gazette of the Republic of Serbia, No. 62/06
121
Other international agreements
 The Law on Ratification of the Agreement Between the Federal Government of the Federal Republic of Yugoslavia and
the Government of the Russian Federation on Cooperation on the construction of the Gas Pipeline on the Territory of
Federal Republic of Yugoslavia.200
 Law on the Ratification of the Agreement between the Federal Government of the Federal Republic of Yugoslavia and
the Government of the Russian Federation on Cooperation in the Oil and Gas Sector201
 The Agreement on Economic and Technical Cooperation in the Field of Infrastructure between the Government of the
Republic of Serbia and the Government of the People’s Republic of China 202
 The Law on the Ratification of the Statute of the International Renewable Energy Agency (IRENA)203
 The Law on Ratification of the Agreement between the Serbian Government and the Government of the Republic of
Italy on cooperation in the field of energy204
 The Law on Ratification of the Agreement between the Serbian Government and the Government of the Russian
Federation on natural gas delivery from the Russian Federation to the Republic of Serbia205.
B5.3. EU Agenda
"Resource efficient Europe" is one of the seven flagship initiatives as part of the Europe 2020 Strategy aiming to deliver
smart, inclusive and sustainable growth. It aims “to help decouple economic growth from the use of resources“ by supporting
the shift towards a low carbon economy, increasing the use of renewable energy sources, reducing CO 2 emissions and
promoting energy efficiency and Chapter 21. Trans-European networks (TEN-E Energy networks)
Chapter 15. Energy

Energy 2020: The Strategy for competitive, sustainable and safe energy is one of the key proposals stemming from this
initiative aiming to facilitate reduction of greenhouse gas emissions by 20% compared to 1990 levels by 2020 to
increase the share of renewables in final energy consumption to 20%; and to achieve 20% increase in energy
efficiency. Other key initiative relevant for the sector is European Energy Efficiency Plan 2020.
Internal energy market: Directive 2009/73/EC aims at introducing common rules for the transmission, distribution, supply
and storage of natural gas. It concerns mainly natural gas, liquefied natural gas (LNG), biogas and gas from biomass.
Directive 2009/72/EC is aimed at introducing common rules for the generation, transmission, distribution and supply of
electricity. It also lays down universal service obligations and consumer rights, and clarifies competition requirements. 206
Regulation (EC) No 715/2009 aims at laying down rules for natural gas transmission networks, gas storage and liquefied
natural gas (LNG) facilities. It concerns access to infrastructures, particularly by determining the establishment of tariffs
(solely for access to networks), services to be offered, allocation of capacity, transparency and balancing of the network.
Regulation (EC) No 714/2009 aims at laying down rules for cross-border exchanges in electricity with a view to improving
competition and harmonization in the internal market for electricity.
Energy efficiency: According to Agreement on Energy Community and relevant decision of Council of Ministers, the
Republic of Serbia is to implement the following directives: Directive 2006/32/EC defines energy services and efficiency of
final consumers; Directive 2010/31/EU aims to promote the energy performance of buildings and building units and
Directive 2010/30/EU aims to implement energy marking and standard information about energy consumption and other
resources concerning products which impact energy consumption and relevant delegated regulations. Although Directive
2006/32/EU is replaced by Directive 2012/27/EU on energy efficiency, the Republic of Serbia, as a contracting party in
Agreement on Energy Community, still applies the old directive in next 2-3 years. (The Council of Ministers’ decision
regarding implementation of Directive 2012/27/EU is expected end 2014, but the transition period will last for a few years).
200 FRY Official Gazette- International Treaties, No.4/96 of September 6, 1996

201 Official Gazette of the Republic of Serbia– International Treaties, No. 83/08 of September 18, 2009
202not published yet
203 Official Gazette of the Republic of Serbia– International Agreements 105/09 of December 24, 2009.
204Official Gazette of the Republic of Serbia– International Treaties, No. 7/2012
205 Official Gazette of the Republic of Serbia– International Treaties, No. 3/2013
206Under the Energy Community Treaty Serbia is not yet obliged to comply with this Directive. The Directive currently relevant for Serbia is Directive
2006/32/EC
122
Directives 2006/32/EC and Directive 2012/27/EU aim at establishing a common framework of measures for the promotion of
energy efficiency within the Union in order to ensure the achievement of the Union’s 2020 20 % headline target on energy
efficiency and to pave the way for further energy efficiency improvements beyond that date. They lay down rules designed to
remove barriers in the energy market and overcome market failures that impede efficiency in the supply and use of energy,
and provides for the establishment of indicative national energy efficiency targets for 2020. Directive 2010/30/EU establishes
a framework for labelling and consumer information regarding energy consumption for energy-related products. Directive
2006/32/EC is one of the basic directives in the field of energy efficiency and it regulates: energy saving obligation of 9% in
9 years of application of this directive for EU member states; obligation of submitting statistics on energy consumed by
energy distributer, distribution system operater and companies for energy retailing; introduction of financial instruments for
EE enhancement and creation of ESCO agreement model; introduction of measuring devices and payment based on actual
energy consumption; mandatory content of action plans for energy efficiency; calculation of savings based on „bottom-up“
and „top-down“ methodologies and the list of proper measures of energy efficiency in residential sector, transport and
industry.
Renewable energy: Directive 2009/28/EC establishes a common framework for the promotion of energy from renewable
sources. It sets mandatory national targets for the overall share of energy from renewable sources in gross final
consumption of energy and for the share of energy from renewable sources in transport. It lays down rules relating to
statistical transfers between Member States, joint projects between Member States and with third countries, guarantees of
origin, administrative procedures, information and training, and access to the electricity grid for energy from renewable
sources. It establishes sustainability criteria for biofuels and bioliquids.
Security of supply, external dimension and enlargement :Directive 2005/89/EC establishes measures aimed at
safeguarding security of electricity supply so as to ensure the proper functioning of the EU internal market for electricity, an
adequate level of interconnection between Member States, an adequate level of generation capacity and balance between
supply and demand. Directive 2009/119/EC obliges member states to keep minimal stocks of oil and/or its derivatives
aiming at high safety level of distribution of oil and its derivatives. Regulation (EU) No 994/2010 aims to safeguard the
security of gas supply by ensuring both prevention and a coordinated response in the event of a supply disruption and by
securing the proper and continuous functioning of the internal gas market.
Industrial emissions: Directive 2010/75/EU aims to establish a general framework for the control of main industrial
activities giving priority to intervention at source, ensuring prudent management of natural resources in order to prevent,
reduce and as far as possible eliminate pollution arising from industrial activities in compliance with the “polluter pays”
principle and the principle of pollution prevention.
The reform and development of the energy sector in Serbia is dependent on EU accession of Republic of Serbia and
international development assistance. Main document which is steering the process of approximation of the legal provisions
with the EU Acquis is the National Plan for the Adoption of the Acquis (NPAA) which was adopted in March 2013.
Serbia energy market is scheduled for full integration in single pan-European energy market while Serbian institutional and
regulatory framework is to become fully harmonized in order to enable investments, economic development security of
energy supply and social stability. While this process is part of the overall accession process it is further strengthened
through participation in the Energy Community Treaty. A huge effort in terms of legislative work, administrative capacity and
resources, but also of political and social perception is required for the successful achievement of the accession goals in this
sector.
Chapter 21. Trans-European networks (TEN-E Energy networks)
Energy infrastructure priorities for 2020 and beyond – A Blueprint for an integrated European energy network is one
of the key proposals under the “Resource efficient Europe” flagship initiative. This Communication outlines a Blueprint which
aims to provide the EU with a vision of what is needed for making EU networks efficient. It puts forward a new method of
strategic planning to map out necessary infrastructure and qualify which ones is of European interest on the basis of clear
and transparent methodology and provide a toolbox for to ensure their timely implementation, including ways to speed up
authorizations improve cost allocation and target finance to leverage private investment.
Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-
European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC)
No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 lays down guidelines for the timely development and
interoperability of priority corridors and areas of trans-European energy infrastructure set out in Annex I ("energy
infrastructure priority corridors and areas"). It aims to do so though: addressing the identification of project of common
interest, facilitating the timely implementation of these projects, provides rules and guidance for cross border allocation of
costs and risks-related incentives, and determines the conditions for eligibility of projects for EU financial assistance.
123
Chapter 27. Environment
Environmental acquis constitutes large part of the acquis that has already become part of the national legislation through the
framework of the Energy Community Treaty. Acquis covering industrial emissions, air, water, climate change and waste are
most relevant for the energy sector.
The NPAA 2013 – 2016 defines the following priorities in forthcoming period: energy market and security of energy supply,
energy efficiency and renewable energy sources as priorities.
Assembly of the Republic of Serbia on 26 December 2007 by adoption of the Law Ratifying the Framework Agreement 207
The SWOT analysis of the energy sector has been undertaken additional to the situation analysis presented in previous
 Formal compliance with the EU acquis in part of the  Weak institutional framework for policy implementation
energy legislation. and strategic planning in the energy sector.
 Relatively well interconnected electricity transmission  Status of the public electric utility prevents commercial
system with the neighbouring countries. operation.
 Sound, historically built-up, technical capacities in the  Weak payment discipline which results in accumulated
power sector. debts to utilities and energy source suppliers
 Significant renewable energy potential with growth  Low energy efficiency in most areas (electric generation
possibilities. and distribution, district heating, existing buildings,
industry, transport).
 There is fuel poverty209 across the population.
 Fossil fuel subsidies pose barriers to entry for new
technologies
 High energy and carbon intensity of the economy.
 Weak public participation in energy policy making.
 Weak capacities for policy implementation and
monitoring
 Land locked country, with limited options for oil and gas
supply
 The EU accession can provide significant innovation in  Decreased affordability of energy for households and
the institutional, policy, legal and technological aspects, businesses
thus unlocking potential for commercial investments in  The need of huge investments for energy efficiency and
the energy sector. mitigation of electric generation-derived pollution is not
 The growing awareness on energy efficiency and matched by suitable funding.
renewable energies use at Municipal level may drive  The dominant role of lignite in electric generation may
207Official Gazette of RS - International Agreements, no. 124/07

208
209Inability of households to afford adequate service, primarily heating at reasonable cost, given their income.
124
better energy policy development and implementation of represent a risk for the long term security, particularly if
energy policies. the environmental problems remain unsolved.
 Enhanced public participation may improve the quality of  Proposed environmental compliance measures not
public policies. economically viable.
 Large areas for improvement of energy efficiency in all  Shifting of responsibilities or energy efficiency to
sectors. municipalities not accompanied with adequate capacity
 The technology transfer in key areas may produce large development and funding.
economic benefits (exploiting efficiently the value chain
of biomass for heating purpose, new technologies in
district heating, Cogeneration of heat and power (CHP)
and solar photovoltaic elements (PV).
 Potential contribution of energy efficiency measures and
renewable energy deployment to macroeconomic
improvements ( such as trade balance, foreign
exchange reserves)
Overall objective reflecting the analyses of the sector while at the same time mirroring strategic documents of the Republic
of Serbia and EU is defined as follows:
Overall objective 1: Integration into European energy markets by achieving secure, safe, reliable and quality supply
of energy and energy sources following principles of sustainable development
Living standard of households and economic activities are not possible without safe and reliable supply of energy and
energy sources. Sophisticated industrial equipment and household appliances require high quality of energy supply. Since
Serbian enterprises are selling goods and services competing with global competitors, competitiveness of energy markets
ensures that costs of energy supply to the end users are minimal and at the same time the investments in the energy
infrastructure are optimal from the wider perspective. Integration of national energy markets into single European energy
market also requires certain investments in trans-European networks. Energy efficiency and renewable energy deployment
may both contribute to the security of supply and to minimization of harmful environmental impact of energy sector activities
thus crucially contributing to the sustainable development in the energy sector.
Priority 1: Improving policy, institutional and legislative framework to ensure a sustainable development in the
energy sector
Serbian energy sector is lagging behind in terms of technological development. Social policy implementation has been
associated with prices not covering the costs of energy production and delivery. Serbian energy entities did not commercially
operate for decades. In addition, complicated procedures effectively pose barriers to entry for the new market entrants.
Technological upgrade needs to be achieved simultaneously with the requirements posed by the process of EU integration
and commercialization of utility operations. Strengthened policy, institutional and legislative framework is needed to enable
achievement of these goals. Implementation of new legislation requires capacities to develop bylaws needed for the
operationalization of the legislation as well as skills and means required for actual implementation and oversight. Strategic
planning capacities for the sector development and inter-sector and intra-sector coordination need to be upgraded to
facilitate sustainable development in the energy sector.
Priority 2: Securing reliable, high quality and efficient energy supply chain.
Inefficient and outdated technologies still deployed in the energy sector may represent a threat to security, reliability and
quality of energy supply. Given limited options for domestic energy production and unfavourable conditions for energy
imports, the integration into European energy markets, increased energy efficiency and deployment of locally available
renewable energy resources are required for the achievement of this policy goal which is a precondition for the overall
development. Increased focus is needed to improve the quality of energy supply.
Priority 3: Mitigating adverse impact of energy sector to the environment through reduction of pollution, soil
remediation activities and preparatory activities aiming to facilitate future sustainable energy production.
Given the structure of the primary energy production in Serbia and huge investment backlogs in the past there is a clear
need for concentrated support to priorities as formulated above. Detrimental effects of energy production need to be
mitigated in order to reduce the costs of the pollution arising within the health, agricultural and other sectors in the country
and outside its borders. Compliance of the operations of utilities in energy in mining with the requirements of the IPPC law is
a prerequisite for mitigation of adverse impacts of its operations on the environment.
125
Priority 1: Improving policy, institutional and legislative framework to ensure a sustainable development in the
energy sector
Measure 1.1: Supporting the enforcement of national legislation in energy sector and improving monitoring and
reporting mechanisms for policy implementation and law enforcement at central and local level
This measure is aimed to support legislation enforcement ensuring fulfilment of the objectives set by the major current
legislative framework in this sector. It enables physical improvements in the sector, achievement of the national energy
policy goals and European integration targets as well as establishing preconditions for regular policy cycles changes through
support to policy monitoring, reporting and evaluation. The measure focuses on support to development and implementation
of by-laws for operationalization of national legislation focusing mostly but not exclusively to Serbian Energy Law and Law
on Efficient Use of Energy; Support to development of capacities for strategic planning in the energy sector in all sub-sectors
including the establishment of the national institution with the purpose to develop and disseminate knowledge, skills and
good practice towards a safer, more secure and sustainable energy system and to promote public interest through strategic
energy planning based on the best models, genuine national needs, circumstances and good past practices. This measure
would also include support to the monitoring of the implementation of the new generation of strategic documents defined in
the Energy Law: Energy strategy until 2025 with projections to 2030, national energy efficiency action plans and National
renewable energy action plan. It is targeted to establish a functional procedure for monitoring the implementation, evaluation
and revision of those documents. Technical assistance in this respect will also be provided to further development of
national energy statistics and improvement of its quality through support to the Statistical office, Energy Regulatory Agency
and Ministry in charge of energy. Support to the capacities of inspectorates is also part of this measure as well as support to
local energy planning.
Measure 1.2.: Further supporting Serbian energy market to enhance its internal and regional competitiveness
This measure aims at support to increased market competitiveness through implementation of the third energy package and
simplification of permitting procedures lowering barriers to entry energy market. The measure focuses on support to the
unbundling of relevant public entities in energy sector. The measure is intended to seek for assistance in cutting red tape in
permitting procedures in order to improve business environment aimed at facilitating investments in energy sector.
Priority 2: Securing reliable, high quality and efficient energy supply chain
Measure 2.1: Improving the security of energy supply in electricity transmission and gas transport enabling
regional energy market integration and establishment of emergency oil stocks
This measure aims to promote security of supply in gas and electricity sectors by improving integration of Serbian market
into regional and EU markets. The measure targets to improve gas transport interconnection capacities needed to improve
security of the gas supply to the country. Support to increased electricity interconnection capacities and improved grid
management will enable better optimization of the available resources on a regional scale and may facilitate investments of
regional relevance in electricity production. Furthermore, establishment of emergency oil stocks will improve security of
supply in the Republic of Serbia and region. Main support activities under this measure aim at preparation of required
missing technical/project documentation in line with national regulation and relevant international/EU standards, as well as
subsequent support to construction of public open-access infrastructure and supply of equipment required and creation of
conditions for the establishment and operations of emergency oil stocks.
Measure 2.2: Enhancing sustainable use of all renewable energy sources with focus on biomass
This measure aims to support other policy tools in addition to already existing feed-in tariff that contribute to security of
supply and sustainable development in the energy sector through enhanced use of available renewable energy potential.
Particular focus will be given to biomass as most abundant renewable source with potential for growth, large positive social
and environmental externalities and beneficial effect on the employment and economic balances. The measure focuses on
the assessment of most lucrative options for biomass utilization in district heating and support to heat only or combined heat
and power production through technical assistance in the form of support to required technical/project documents and
construction of plants. Legal and technical support for organizational and structural changes in the utilities including
development of appropriate public-private partnership models or other institutional forms suitable to accommodate required
investments is needed. Supply side activities that might be supported include, but are not limited to the following: support to
harvesting of low quality forest wood, forest residues and waste from wood processing industries; support to wood chipping
or other economically justifiable transformation of biomass, support to establishment of fast growing short-rotation energy
plants on marginal and low quality land avoiding conflicts with food production; support to establishment of companies
enabling links between the producers and biomass energy users. Resource assessments and legal and technical support to
business development on the supply side might also be required. Another form of support could be assistance in
accreditation of control unit and development of certifications for laboratories which will supervisor the use of biofuel as
126
important source of RES in energy mix supposed to contribute to reaching goal of 27% of RES in GFEC by 2020. The
measure may also support usage of other energy renewable resources.
Measure 2.3: Increasing energy efficiency in district heating systems and energy consumption sectors with focus
on public and residential building sectors
This measure should support implementation of Law on efficient energy use and implementation of action plans. The
measure will secure implementation of other measures in energy consumption sector, defined in APEE, as well as
improvement of energy efficiency in district heating sector. In district heating system the focus is on supporting
establishment of consumption measuring on facility level (sub-station) in existing facilities, which enables payment per
facility consumption in places where this kind of infrastructure is still not operable.
The support for comprehensive analysis of available alternatives for heating energy production and operationalization of
chosen options. The support for development of computer tools which will enable optimal and enhanced distribution of
heating energy and supply management (including but not limited to introduction quantitative regulation) would build up on
completed enhancements of system for heating distribution, which enables use of total saving potential encouraged by
earlier interventions and replacement of fuel. Regarding application of National Energy Efficiency Action Plan, the support is
needed for implementation of measures in all energy-consuming sectors, especially emphasising public and residential
sector. Work on energy efficiency in public sector will continue through identification of projects which implementation is the
most beneficial in sense of energy efficiency , with possible support for creating environment for operation of companies
which provide energy services to achieve greater energy efficiency and reduce consumption (ESCO companies). The
support for introducing system of energy management, especially in public and communal sector should also be
encompassed within this measure. The measure also aims at supporting better use of existing supporting mechanism. It is
necessary to support residential sector to improve energy efficiency by securing useful advice, soft loans (grants for the
most vulnerable population) for energy efficiency interventions on facilities and supporting mechanisms for replacement of
inefficient systems for HVAC (heating, ventilation, and air conditioning), , as well as home appliance (including possible
support through leasing schemes). This measure also can support capacities of service sector: craftsmen, engineers,
architects, banks. It is necessary to seek potential synergy with legalisation process.
Priority 3: Mitigating adverse impact of energy sector to the environment through reduction of pollution, soil
remediation activities and preparatory activities aiming to facilitate future sustainable energy production
Measure 3.1 Decreasing pollution from the energy sector impacting air, water and soil quality
This measure aims to provide for the opportunity to remedy some of the environmental degradation caused by the activities
in the energy and energy mining sectors and not compensated for in the past. This should be done without detrimental
effects for emerging of competitive energy markets at national and regional level and having in mind backlog of investments
in environmental protection in the energy sector. The measure focuses on support to preparation of lacking technical/project
documentation in accordance with national legislation and EU/international standards necessary for further investments with
the comprehensive analyses of available alternative solutions. Support to creation of infrastructure necessary for the
fulfilment of mitigation measures required for obtaining of the integrated pollution prevention and control permit (IPPC
permit), including possible use of waste energy where appropriate. This measure include activities on defining management
procedures in exploitation and all technological phases of energy mining operations, mining waste management, land
degradation, land pollution, protection of water and water quality monitoring as well as monitoring and analysis of
wastewater from active and abandoned mines. In addition, this measure includes air pollution, monitoring and protection
from emissions of hazardous substances and wind erosion on tailing dump. This measure is necessary to include
identification of suitable geological formations for storage of CO2 and other substances extracted in mines and thermal
power plants.
Regional, Cross-Border and Transnational Themes in Energy sector
In order to strengthen cooperation and spur the integration of the regional energy market, Serbia’s priorities in addressing
MB IPA, relate to projects with a clear regional/cross border impact. Support is expected for project preparation and
technical design JASPERS and implementation of investments under WBIF. Having in mind regional context and necessity
for good coordination, JASPERS (Joint Assistance to Support Projects in European Regions) should support and advice on
project preparation and financial engineering issues.
CBC and Transnational programmes in energy sector can contribute to achieving NAD sector goals and the ERDF
thematic objectives 4 – Supporting the shift towards a low-carbon economy in all sectors. Given the needs and resource
availability biomass energy issues may be addressed most efficiently through these programmes.
127
The implementation of the objectives of the EU Strategy for the Danube Region, namely those relating to the Pillar I
“Connecting the Danube Region” and more specifically the Priority area (2) Encouraging sustainable energy - requires
concerted actions to explore an increased energy production originating from local renewable energy sources. Efforts should
concentrate upon the economic utilization of renewable energy sources and on the preparation of respective projects based
on adequate analytical studies. Serbia's focus in this respect is described through actions foreseen by Measure 2.2:
Enhancing the use of all renewable energy sources with focus on biomass.
The energy sector of the Republic of Serbia in context of Sector Approach is managed by the following institutions:
Ministries in charge of energy, environment, mining and natural resources, agriculture, water management and forestry,
regulatory energy agency, provincial and local authorities. The lead institution for the sector is the Ministry in charge of
energy.
programming, implementation and monitoring of the Energy sector measures/operations supported by EU funds and other
international development assistance. Responsibility for formal submission and later implementation of measures/operations
depends of their content and responsibility of institutions involved in the Energy sector. Energy Agency of the Republic of
Serbia has got a wide range of different competencies, including those regarding price regulation, licencing energy entities
for energy activities, proposing and approving of by-laws, rendering decisions based on complaints, supervision of energy
market and implementation of certain international agreements. In order to improve and coordinate activities related to
planning, programming, implementation and monitoring of EU funds and international assistance and to increase the
efficiency and effectiveness of development assistance, additional mechanisms have been introduced, that is to say, the
Sector Working Group (SWG) for Environment and Energy 210 have been established. The SWG for Environment and Energy
is responsible to coordinate activities related to planning, programming and monitoring of EU funds and international
assistance, to propose relevant measures and activities and to support the introduction of Sector Approach in Energy sector.
In addition, the SWG for Energy will assist in selection of infrastructure projects for funding. The functioning, management,
organisation and composition of SWG is more precisely defined by the Rules of Procedure for Sector Working Groups for
the Programming and Monitoring of the EU funds and development assistance. The institutions participating in the SWG are
Ministries in charge of energy, environment, natural resources, mining, spatial planning, regional development and local self-
government as well as for economy and finance and Office responsible for European integration affairs (SEIO). Members of
the SWG are officially appointed representatives of the above mentioned line ministries, at the level of State Secretary or
Assistant Minister, or appointed Senior Programming Officers (SPOs) and the Serbian EU Integration Office.
the respective sectors, SEIO established a consultation mechanism with the civil society organisation (CSOs)211. This

211Introduced in 2011
212Sector for Planning, Programming, Monitoring and Reporting on EU Funds and Development Assistance
128
129
PRIORITY 1: Improving policy, institutional and legislative framework to ensure a sustainable development in the energy sector
Indicator Unit
(2012)* 2013 2014 2015 2016 2017 2018 2019Verification
2020 reporting
Annual report of the
SEIO
Reports from the
1.1. Percentage of annual completion of secondary legislation sessions of the
envisaged for the operationalization of % Government of
energy
a) Energy Law and b) Law on efficient use of energy Serbia
Official Gazette of
the Republic of
Serbia
EU Progress
Report
Energy Community
1.2. Percentage of legal acts envisaged to be adopted in the Ministry in charge for
% reports
NPAA on the annual level energy
Regulatory Agency
reports
NPAA
Reports from the
sessions of the
1.3. Percentage of required due monitoring reports for
Government of
implementation of policy documents ( documents defined in Ministry in charge for
% Serbia
the Article 3. of the Energy Law) prepared, approved and 33.33% energy
Official Gazette of
publicly disseminated in time ( all three)
the Republic of
Serbia
MEASURE 1.1: Supporting the enforcement of national legislation in energy sector and improving monitoring and reporting mechanisms for policy implementation and law enforcement at central and
local level
Indicator Unit
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 Verification reporting
Annual report of the
SEIO
1.1.1. Number of bylaws annually prepared under support Ministry in charge for
Number N/A214 Reports from the
activities213 energy
sessions of the
Government of
213Throughout the table with indicators programmes and projects implemented with international support are referred to as support activities.
214
Baselines for measure indicators associated with future support activities are not applicable
130
Serbia
Official Gazette of
the Republic of
Serbia
Reports from the
sessions of the
1.1.2. Number of monitoring reports of policy documents
Government of Ministry in charge for
prepared, adopted and disseminated under the support Number N/A
Serbia energy
activities.
Energy Community
reports
Reports from the
sessions of the
Government of
1.1.3Institution for strategic planning established N/A N/A Serbia
energy
Official Gazette of
the Republic of
Serbia
1.1.4 Number of indicators monitored and values published Web site of the
under the support activities, in policy implementation reports Number N/A Ministry in charge
energy
in line with international standards( EU, IEA) of energy
MEASURE 1.2: Further supporting Serbian energy market to enhance its internal and regional competitiveness
Indicator Unit
Reports from the
sessions of the
Government of
Serbia
Report from the
1.2.1. Gas sector compliant with the “third package” Ministry in charge for
N/A No Parliamentary
provisions energy
session
Official Gazette of
the Republic of
Serbia
Utility Statutory Act
Official Gazette of
the Republic of
Serbia
1.2.2. System of obligatory emergency oil stocks established N/A No Republic
energy
Directorate for
Commodity
Reserves reports
1.2.3. Amount of oil in oil derivatives stocks Million N/A Republic Ministry in charge for
131
Tonnes Directorate for energy
Commodity
Reserves reports
PRIORITY 2: Securing reliable, high quality and efficient energy supply chain
Indicator Unit
Energy
balance(Official
Gazette of the
Republic of Serbia,
Statistical Office)
2.1.Installed capacity for electricity production MW e 7,204 Energy Community
energy
Reports,
Regulatory Energy
Agency of Republic
of Serbia reports
IEA reports
Energy balance
(Republic of Serbia,
Statistical Office)
2.2.Net energy import dependency (percentage of total Energy Agency Ministry in charge for
% 32,32
primary energy supply) reports energy
Energy Community
Reports
IEA reports
Full list EMS reports
2.3. Mid-Monthly Net Transfer Capacity-NTC (per border per Ministry in charge for
MW available Energy Community
direction) energy
215 Reports
EMS reports
Energy Community
2.4. Number of interconnectors (electricity) Number 25 Reports
energy
Regulatory Agency
Report
Reports of public
company in charge
Million
of gas, Energy Ministry in charge for
2.5. Available Gas transport Capacities Stm3/da 20.19
Agency of Republic energy
y
of Serbia Report,
Energy Community
215
Annual Report of Regulatory Agency
132
Reports
Utility in charge for
gas transport Ministry in charge for
2.6.Number of interconnection pipelines (natural gas) Number 2
reports, Energy energy
Community Reports
Energy balance,
Energy Agency of
2.7. Share of the renewable energy sources in the Goss Final Republic of Serbia
Energy consumption (%) with sector breakdown (electricity, % 19.98 17,8 19.3 19.7 20.9 21.8 23.1 24.3 25.6 Report, Energy
energy
heat, transport) Community
Reports, IEA
Reports
Energy balance,
Energy Agency of
Republic of Serbia
10.40 10.28 10.17 10.06 Ministry in charge for
2.8. Gross final energy consumption Mtoe 9.528 9.947 9.834 9.721 9.608 Report, Energy
0 7 4 0 energy
Community
Reports, IEA
Reports
2.9. Electricity distribution network losses (percentage of gas transport Ministry in charge for
% 13.45
gross consumption) reports , Energy energy
Community Reports
Reports of remote
heating system,
2.10. Gas distribution network losses (percentage of gross Ministry in charge for
% 1.4 reports of business
consumption) energy
association
“Toplane Srbije”
Energy balance,
Energy Agency of
Republic of Serbia
.2.11. Heat distribution network (percentage of gross Ministry in charge for
% - Report, Energy
consumption) energy
Community
Reports, IEA
Reports
MEASURE 2.1: Improving the security of energy supply in electricity transmission and gas transport enabling regional energy market integration
Indicator Unit
EMS reports
Energy Community Ministry in charge for
2.1.1. Incremental change in NTC (per border per direction) MW N/A
Reports energy
133
gas transport
reports Ministry in charge for
2.1.2. Incremental change in gas transport capacity Stm3 N/A
Energy Community energy
Reports
Energy Agency of
2.1.3 ENS (share of undelivered electricity due to the outages Republic of Serbia Ministry in charge for
% 0.005
in total delivered electricity) Report energy
EMS reports
Energy Agency of
Republic of Serbia
2.1.4. Indicator for the measurement of the quality of supply Report Ministry in charge for
TBD N/A
and delivery of natural gas216 Utility in charge for energy
gas transport
reports
MEASURE 2.2: Enhancing sustainable use of all renewable energy sources with focus on biomass
Indicator Unit
NR Energy balance
NREAP report
Association of
district heating
2.2.1.Installed heat only production capacity based on Ministry in charge for
MWth 0 0 0 18 18 37 56 75 100 plants annual report
biomass under the support activities energy
Ministry in charge
of energy
Project/ programme
reports
Energy balance
NREAP report
2.2.2. Installed electricity production capacity based on Ministry in charge Ministry in charge for
MWe N/A 0 0 0 0 0 10 15 20
biomass in CHP facilities of energy energy
Project/programme
reports
2.2.3. Installed surface of solar-thermal capacities under Project/programme Ministry in charge for
m2 N/A
support activities reports energy
Project/programme
2.2.4. Installed heat production capacity based on geo- reports Ministry in charge for
MWth 11.6 11.6 13.6 15.5 15.5 17.5 17.5 19 19
thermal energy under support activities Association of energy
district heating
216Regulatory energy agency in its Annual report for 2012 announces upcoming introduction of such indicator.
134
plants annual
report
NREAP report
Official Gazette of
the Republic of
2.2.5 Number of accreditations for control unit and
Serbia
certifications for laboratories which will supervise the use of Ministry in charge for
Number 0 Annual report of
biofuel in the transport sector developed under the support energy
Ministry in charge
activities
for biofuels
Official Gazette of
the Republic of
2.2.7. Number of control units which will confirm sustainability Serbia Ministry in charge for
Number 0
criteria for biofuels and bioliquids Annual report of energy
Ministry in charge
for biofuels
MEASURE 2.3: Increasing energy efficiency in district heating, public and residential building sectors
Indicator Unit
Reports of Ministry
in charge of energy
District heating
2.3.1. District heating systems efficiency improvements in plant reports
district heating systems subject to support (measured as ratio Programme Ministry in charge for
% 77 78 80 82 83 84 85 85 85
of metered heat at the substations level in total thermal input implementation energy
of the plants) reports
Association of
district heating
plants report
Programme
implementation
reports
Reports of Ministry
in charge of
2.3.2. Number of buildings improving at least 1 class of EP construction Ministry in charge for
Number N/A
under the support activities Reports on energy
implementation of
Energy Efficiency
Action Plan
Reports of Ministry
in charge of energy
2.3.3.Average reduction of specific energy use in public KWh/m2 Programme Ministry in charge for
N/A
buildings subject to assistance; absolute (kWh per square % implementation energy
135
meter of heated space temperature weighted) and relative (% reports
of baseline total consumption, temperature weighted) Reports of Ministry
in charge of
construction
Reports on
implementation of
Energy Efficiency
Action Plan
Reports of Ministry
in charge of energy
Programme
implementation
reports
2.3.4. Number of households received grants/soft loans for Reports on
building energy efficiency improvements and total amount of Number N/A implementation of
energy
grants/soft loans disbursed under the support activities Energy Efficiency
Action Plan
Reports of Ministry
in charge of energy
NPEARD report
Programme
implementation
2.3.5. Number of individual fuel wood heating devices Ministry in charge for
Number N/A reports
replaced through support programmes energy
Reports of Ministry
in charge of energy
Number
of Reports of
compan Business Register
ies Agency, Reports on
register implementation of
2.3.6 Number of public ESCO s established under the
217 Ministry in charge for
ed for N/A Energy Efficiency
support programmes energy
providin Action Plan,
g Reports of Ministry
energy in charge of energy
services
(ESCO)
PRIORITY 3: Mitigating adverse impact of energy sector to the environment through reduction of pollution, soil remediation activities and preparatory activities aiming to facilitate future sustainable
energy production
217Energy saving company as defined in the Law on efficient use of energy
136
SEPA reports
Environmental
Inspectorate
reports till
3.1. Installations from energy sector from IPPC list exceeding establishment of Ministry in charge for
Number N/A N/A N/A 0 0 0 0 0 0
ELVs218 prescribed in IPPC permit continuous energy
environmental
monitoring
IPPC department
data
SEPA reports
Environmental
Inspectorate
reports till
3.2. ELVs exceeded in energy sector installations from IPPC establishment of Ministry in charge for
Number N.A N.A N.A 0 0 0 0 0 0
list. continuous energy
environmental
monitoring
IPPC department
data
MEASURE 3.1: Decreasing pollution from the energy sector impacting air, water and soil quality
Indicator Unit
N/A N/A N/A N/A N/A N/A N/A N/A Programme
implementation Ministry in charge for
3.1.1. Surface of remediated soil in support activities ha N/A
reports energy
SEPA reports
N/A N/A N/A N/A N/A N/A N/A N/A Programme
implementation
reports
Substan
3.1.2. List of reduced/avoided/disposed quantities of polluting SEPA reports
ce Ministry in charge for
substances due to support activities (list per substance N/A Environmental
depend energy
including CO2 reductions) in the energy facilities. inspectorate reports
ent
until establishment
of continuous
monitoring
218Emission limit values
137
In the period 2007-2012 the Energy sector received support of total €654 million219, while total international support in the
period 2001-2012 amounted to 1,277 billion €.220 The needs of this sector considerably exceed the amount of international
assistance received.
Total disbursement within IPA component I is amounting to € 77.4 million in the period 2007-2013 for the Energy sector
(harmonization with EU Energy acquis implementation of requirements of the Energy Community Treaty, law enforcement in
the field of industrial pollution control to enhance capacity for aligning legislation with the EU environmental directives
especially for Industrial Pollution Prevention and Control (IPPC). Capacity building in developing and implementing
regulatory policies and strategies and overseeing the necessary reform of the energy sector, strengthening the capacities of
gas transmission system operator, promotion of measures to stimulate energy efficiency and use of renewables, protection
of environment aimed at reducing emissions from thermal power plants in Serbia for improving air quality and water quality
by building waste water treatment plants in line with EU directives, contributing to security of electricity supply in South
Serbia, implementation of the energy component of the National Strategy for Sustainable Development. The IPA Multi-
beneficiary programmes 2007-2013 provided support for the Energy Efficiency Finance Facility (EEFF), the Infrastructure
Project Facility including Technical Assistance, the Infrastructure Project Facility - Municipal Window, the Horizontal Support
to Coordination with the International Financial Institutions (HSC) in the IPA beneficiaries and to Participation in the EFSE.
Through the Strand II – Energy efficiency, priority was given to promotion of investments in energy efficiency and renewable
energy in the SME and public sectors by capitalising on actions supported by the National programmes, which aimed at (i)
increasing public awareness regarding energy efficiency and the potential for energy savings; (ii) implementing legislation
with regards to the Directive on energy performance of buildings, and the energy end-use efficiency and energy services
(including renewable energy). Also support was given to the Energy Community Secretariat. Currently, the support is
focused on facilitating the access to finance for investments in priority infrastructure projects in the region, reflected in the
development and implementation of relevant investment strategies. The promoting of investments in energy efficiency and
renewable energy sources has emerged as a potential key driver of recovery from the economic crisis and sustained
economic growth.
The bilateral donor community has been prominent in resourcing projects in energy sector, including Austria, Czech
Republic, Germany, Japan, Netherlands, Spain, Sweden, Switzerland, Norway etc. Areas supported by the bilateral donors:
strategic planning, and the foundations of expecting Law on efficient use of energy and improving municipal planning in
energy efficiency (Norway), capacity-building for monitoring and evaluation of energy efficiency policy (Germany); study of
energy management and Flue Gas Desulphurization Project for Nikola Tesla Power Station(Japan); modernization of the
monitoring and control system in a thermal power plant (Switzerland); giving guidance on the implementation of EU
renewable energy directives focused on biomass and bio fuels, but also Biogas and electricity/heat production from organic
waste and Utilization of Geothermal Warmth for Heating Public Buildings in Serbia (Netherlands); while Spain funded
feasibility study for GHG emission reduction, as well as Development of capacities to use and promote the solar energy in
Serbia. Soft loans have been provided by EBRD, KfW (Germany) and the World Bank.
A recent SIDA Report on “Evaluation of effectiveness and efficiency of development assistance to the Republic of
Serbia”221has found the relevance of the assistance to be very high, effectiveness has been better evaluated for the policy
development projects and capacity building to regulatory bodies with support to the Energy Agency as positive example. In
the case of the institution-building activities under ‘policy framework’ and ‘internal energy market’, the efficiency of resource
use seems to be high: the benefits to Serbia not just immediately (in terms of objectives met), but also longer-term
(assuming the outcomes are operationalized) are proportionately significant when compared with the inputs. While impact
of the assistance has been evaluated as low partially also due to the relatively short period covered by the evaluation some
positive examples are outlined such as the actions taken in Vrbas and Kula to improve municipal energy management,
satisfy the upcoming law on rational use of energy and achieve savings. Sustainability of the assistance has been
evaluated as low primarily due to the fact that regulatory framework for energy still falls short of fully sustainable system with
tariffs below the level of cost recovery, and the costs of environmental damage not fully reflected in charges or a system of
sanctions. EUD sector evaluation is on-going and will be finished during 2013, providing more insight into the aid
effectiveness.
Evaluation report recommends that the strengthening of institutions responsible for policy, regulatory oversight and
implementation (or reorganization, in the case of energy liberalization) should be synchronized with infrastructure
development, given the two are inextricably linked. The major challenges for the next phase of ODA will be to advance
219Source: Isdacon: http://www.evropa.gov.rs/Evropa/PublicSite/index.aspx

220ibid
221 Evaluation of Effectiveness and Efficiency of Development Assistance to the Republic of Serbia per Sector (April 2013), SIDA
138
substantially (but not complete, as the timescales will run into the 2020s and beyond) the upgrading of environmental and
energy infrastructure in a systematic, sequenced, and coordinated way.
Another recommendation from the evaluation states that in order to be financially viable on a long-term basis, the pre-
conditions for these infrastructure investments will be: measurement and charging systems that reflects both usage
(reducing over-consumption and supply inefficiencies) and full cost recovery; the break-up of state monopolies in energy to
inject competition into pricing; creation and application of unified tariff system for production, distribution and supply of
heating energy; expanding existing system of district heating, institutional system networking, promotion of energy sources
alternation and their efficient use, raising capacities of LSG regarding market regulation and a social welfare policy that
subsidizes poorer households to prevent the effects of sustainable pricing from driving up fuel and other forms of poverty.
139
B6 ENVIRONMENT AND CLIMATE CHANGE
The scope of the Environment and Climate Change sector is defined to reflect national priorities, as well as the needs
arising from the EU accession process driven by preparations to negotiate on chapter 27 Environment. The sector includes
following subsectors:
 horizontal requirements (EIA, SEA, public participation, etc.);
 air quality;
 waste management;
 water quality;
 nature protection;
 industrial pollution prevention and control;
 chemicals;
 noise;
 climate change.
The Serbian Environmental and Climate Change sector, whilst having advanced in recent years, still needs significant
improvement in order to fulfil European environmental requirements. The EC Progress Report for 2012 for Serbia 222,
recognizing that some progress was achieved and Serbia has started to address its priorities in the field of the environment
and climate change, calls for significant further efforts in order to implement the national legislation, especially in the areas of
water management, industrial pollution control and risk management, nature protection and air quality. It also points out that
the strengthening of the administrative capacity should remain a priority. Despite high levels of investment, due to the huge
national needs, environmental infrastructure in Serbia needs additional investments and further enhancement.. This is
particularly evident in subsectors like waste water collection and treatment, waste treatment and disposal, air pollution
abatement.
Horizontal environmental requirements have been transposed into Serbian law to a great extent. The Environmental
Impact Assessment (EIA) and Strategic Environmental Assessment (SEA) Directives have been fully transposed into
national legislation and have been implemented; the Public Participation Directive was fully transposed in 2008 and
subsequently implemented; transposition of the Environmental Information Directive is due with the adoption of the Law on
ratification of the Protocol on Pollutant Release and Transfer Register to the Convention on Access to Information, Public
Participation and Decision-making and Access to Justice in Environmental Matters, in October 2011. Systematic transfer of
Responsibility Directive in environment has not started, but comparing domestic legislation with the Directive, it has been
determined that 60% of it has been transposed. According to NPAA, the plan of transposition and implementation will be
created by the end of 2014. A certain progress is visible in transposition)of INSPIRE (considered as 18% transposed,
planned for full transposition in 2020). The EC Progress Report for 2012 highlighted that recently some progress has been
made with regard to horizontal legislation by adoption of the National Strategy for Sustainable Use of Natural Resources and
Goods in 2012, the adoption of the National Environmental Approximation Strategy in 2011, and the ratification of the
Pollutant Release and Transfer Register (PRTR) of the UN Economic Commission for Europe.
According to the Law on environmental protection and National Program for environmental protection (which implementation
secures and enables planning and managing environmental protection) what follows is creating of five year action plan for
realization of the National program.
Air quality. Monitoring and evaluation of air quality is fully operable by regulated implementation of Law on quality
protection (OGRS 36/09 and 10/13) which implemented EU Directive 2008/50/EC (on Ambient air quality and Cleaner air for
Europe) and other regulations to harmonize domestic and EU practice.
According to the results automatic air quality monitoring in 2011 and 2012 stated in the reports of Environmental protection
agency, in every agglomeration, Belgrade, Bor, Nis and Novi Sad in 2011 the air was of III category – excessive air pollution
(tolerance value were exceeded for one or more polluting matters). In agglomerations Belgrade, Bor, Kosjeric and Pancevo
in 2012 air was of III category - excessive air pollution. Tolerance value in Belgrade were exceeded for concentration of
suspended particles PM10 and nitrogen oxides; In Kosjeric and Pancevo these were exceeded for concentration of
suspended particles PM10, and in Bor air was excessively polluted with sulphur dioxide.
222{COM(2012)600 final},
140
2011 results indicate exceeding Lv and Tv; Limit and tolerance values in 2011 were exceeded in 22 annual values from the
total of 124 measured at 39 measuring stations. In 2012 the results indicate exceeding in Lv and Tv;Exceeding tolerant
values (Tv) or exceeding limit values (Lv), of polluting matter in 2012had 17 annual values out of total 114 measured in 41
measuring station.
Figure 4. Categories of air quality in 2011 according to Article 21 of Law on air protection.
Belgrade and other urban agglomerations often had daily PM10 and nitrogen oxides above Tv, which testifies on presence
of “polluted” and “very polluted” air. Dominant polluting matter in Bor is sulphur dioxide (Table B6.1).
Table B6.1.The rate (%) of air quality classes based on daily pollutants’ concentration levels in 2011 223
Belgrade Novi Sad Nis Bor
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
CO 93 4 2 1 0 97 1 1 0 0 95 3 2 0 0 100 0 0 0 0
SO2 84 9 6 1 0 99 0 0 0 0 97 1 0 1 0 37 7 11 12 33
O3 36 22 34 8 0 44 23 28 6 0 52 35 13 0 0 28 27 42 3 0
NO2 25 36 25 10 5 56 19 8 4 13 68 26 5 1 0 90 8 1 0 0
PM10 12 14 20 21 34 30 28 24 15 3 6 20 28 16 30 22 24 29 18 7
Excellent 1 Good 2 Acceptable 3 Polluted 4 Excessively polluted 5
The suspended particles PM10 influence dominantly on air quality in 2011 and 2012 in all urban agglomeration.
The main sources of air pollution are transport and industry: thermal power plants, oil refineries, chemical facilities, metal
and mineral industries. In addition, inadequate storage and disposal of by-products, such as ash from power plants and
tailings from the open cast coal mines further contribute to the level of air pollution. Air pollution is mainly caused by
outdated technology and lack of pollution abatement installations, as well as poor quality heating fuel in household
installations. Transposition of EU Directives in the air sector is either completed or at an advanced stage, except in case of
the Sulphur Content Liquid Fuel Directive where the level of compliance is quite low (6%). Most (95%) of the new Ambient
Air Quality Directive was already transposed in 2009 (The Law on Air Protection), and compliance with the remaining
223
Serbian Environmental Protection Agency, 2012
141
Directive provisions will be achieved through amendments of existing regulations scheduled for 2013.The implementation of
the new Ambient Air Quality and Cleaner Air for Europe Directive is relatively advanced, as is the implementation of the 4 th
Daughter Directive (competent authority designated; zones and agglomerations established; assessment regime in place;
system for assessing ambient air quality and for maintaining air quality where levels are lower than limits established).
Notable progress in implementation has occurred through preliminary assessment of air quality in line with the Law on Air
Protection and the establishment of a monitoring system in line with the Directive requirements. Moreover, local self-
governments, in cooperation with the Ministry in charge of environment, are preparing a pilot plan for air quality in Belgrade,
Novi Sad and Bor. The National Emission Ceilings Directive is partially transposed (75%) and some implementation
measures have been introduced (relevant authorities have been identified, informational database has been established and
penalties have been determined). Full transposition and implementation is determined by the ratification of the Gothenburg
Protocol.
In spite of the fact that national legislation have been developed and defined and the strategy for waste management has
been revised over the last couple of years, the provision of well-developed and properly equipped waste collection systems
remains as one of the main challenges facing this sector. The total of generated household waste increased from 1.73
million tons in 2007 to 2.71 million in 2011. The collection rate of household waste has increased from 60% to 72%. So far,
nine landfills complying with EU requirements have been built and are in operation, and the remaining waste is disposed on
landfills without pre-treatment before disposal on sites that often operate without valid permits and are not equipped with
leachate collection systems, bottom linings and landfill gas collection systems. Much of the municipal waste also goes to
dumpsites. There are more than 3,500 dumpsites in Serbia. The existing level of recycling or re-use of waste is insufficient.
It is estimated that recycling rate in Republic of Serbia has increased for 10%-15% comparing to the period before adoption
of Law on waste management and all of its bylaws. In Serbia, most recycled of all hazardous waste are used oil, EE-waste,
fluorescent tubes containing mercury, waste batteries, and in lower proportion end of life vehicles. Waste batteries
(especially ones used in households) are barely recycled. Waste from chemical industry (organic and non-organic origin) is
treated in only couple of plants by process of neutralization and solidification and hazardous contaminated waste packaging
is treated by liqud nitrogen and solid carbon dioxide or by washing method. The new EU Directive on Waste 2008/98/EC
that will repeal a number of waste directives is already transposed at 78%, mainly by the provisions of the Law on Waste
Management224, the Law on Integrated Prevention and Pollution Control225, and certain by-laws. The transposition of the
regulation of special wastes is also advanced (Batteries Directive 73%; Packaging waste 100%; PCB/PCT 70%; End-of-life
vehicles 100%, etc.). Moreover, full transposition of the Landfill Directive was completed in 2010. However, the ROHs
Directive is in initial phase of transposition with only 6% transposed so far, and the WEEE Directive transposition status is
that 61.5% of reported legislative alignment has been carried out. The worst situation is in the area of mining waste:
although the new Law on Mining and Geological Researches226 ensured certain progress in transposition of the Mining
Waste Directive, the by-laws that should regulate issues relating to requirements, criteria, procedure and manner of
disposal, management and categorization of mining waste, as well as reporting on mining waste, are still to be adopted.
The Republic of Serbia still faces many challenges in terms of water quality. Although the concentrations of surface water
BPK5 indicators indicate that ammonia ion, nitrate and orthophosphate concentrations were mainly within the acceptable
limits, water in the Vojvodina basin had 43% of samples categorized as ‘extremely bad’ and ‘bad’ water quality. Maximal
tolerated concentrations and average annual concentrations of some heavy metals in the majority of lakes and water supply
accumulations are over the tolerated limits. The water supply network consists of 33,228 km of pipes with some 79% of the
country’s population is connected to the public water supply (92% in Vojvodina). However, the quality of the water in the
supply system suffers from high levels of pollution, the key sources being untreated industrial and municipal waste water,
drainage water from agriculture, leachate from landfills, and pollution related to river navigation and the operation of thermal
power plants. Approximately 67% of total wastewaters discharged into recipients are generated by households and 19%
come from industry. Although increasing, the proportion of households connected to the public sewage network is still low:
with only 36% in Central Serbia and 23% in Vojvodina. The rest of generated wastewater goes into septic tanks or directly
into groundwater. The problems of wastewater are even more serious in industry and mining. Only 15% of total waste water
gets treated at the level of primary treatment of which 11% also undergoes secondary treatment and 3% through tertiary
treatment. Only 5% of industrial waste water is put through all the recognized stages of treatment (physical, biological and
chemical). Waste water facilities exist in 21 municipalities (out of 219 registered agglomerations in Serbia); even the largest
cities in Serbia (Belgrade, Niš and Novi Sad) release their waste water untreated into the receiving waters. As a result, some
locations in the Republic of Serbia (e.g. Grand Bačka Canal, Palić and Ludaš lakes, wastewater canal in Pančevo) are
heavily polluted by unprocessed industrial and communal wastewaters. Transposition of EU Directives in the water and
wastewater sector is still limited and can be considered as a work in progress. The best results were obtained in the
transposition of Water Framework Directive (80% of reported legislative alignment); Drinking Water Directive (76%); and
Floods Directive (70%). The legislation on emission limit values (ELVs) for water pollutants and deadlines for complying with
them, (as well as the parameters for ecological and chemical status of surface waters and of chemical and quantitative
224
Official Gazette of the Republic of Serbia, No. 36/09, 88/10
225
Official Gazette of the Republic of Serbia,, No. 135/04
226
Official Gazette of the Republic of Serbia, No. 88/11
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status of ground waters) has been fully aligned. However, a lot still has to be done on further transposition of EU
requirements regarding Urban Waste Water, Nitrates and Bathing Water Directive. When it comes to further transposition of
EU requests regarding water quality standards and Ground Water Directive, it should be mentioned that not much work on
these transpositions has left. Namely, Water Quality Standard (EQS for water) is regulated in our legislation by Regulation
on limit values of polluting matter in surface and ground waters and sediments and deadlines for the achievement thereof
(Official Gazette of RS, 52/12), which transposed the provisions of many EU directives regulating this field.
In addition, EQS for surface waters related to priority and priority hazardous substances are defined by Regulation on limit
values of priority and priority hazardous substances which pollute surface water and deadlines for the achievement thereof
(OGRS, 35/11). Currently the creation of Regulation on amending this Regulation is underway, which will transpose majority
of requests from the directive 2008/105/EC.
This regulation is applicable with Rules on parametres of ecological and chemical status of surface waters and parametres
of chemical and quantitative status of ground waters (OGRS, 74/11).
According to these regulations, monitoring of surface and ground waters and sediments has been applied in our country
from 2012 and it is majorly harmonised with the Framework Water Directive: the completion of harmonisation is expected by
the end of 2015. In addition, environmental protection is entirely regulated in our legislation by Regulation on limit values of
polluting matter in surface and ground waters and sediments and deadlines for the achievement thereof (Official Gazette of
RS, 52/12).
Namely, this Regulation stipulates EQS of basic parametres of ground water quality according to Directive 80/68/ EEC on
ground water protection from pollution caused by certain dangerous substances, and obligation of performing basic (zero)
measurement of polluting matter in ground waters in order to determine EQS of polluting matter minimal pollutant list defined
by Directive 2006/118/EC on ground water protection and from pollution and deterioration in quality. In addition, this
Regulation forbids indirect and direct emission of polluting matter from the List I and indirect and direct emission of polluting
matter from the List II into ground water, during zero monitoring, according to provisions of Directive 2006/118/EC.
Current problems in nature protection mostly lie in inefficient management practices in protected areas, including the
conflict of interest for sustainable use of resources, inefficient planning and budgeting, etc. The biological diversity of Serbia,
both in terms of ecosystems and species is extremely high. The total area of protected land in Serbia is 527,152 ha,
including five national parks (30% of total protected land area), 14 nature parks (30%), landscape parks, and nature
reserves (18%), cultural monuments and areas of cultural and historic importance. Currently, 5.91% of the Serbian territory
is under some form of protection. In the period 1980 – 2006 average rate of protection was 13,000 ha annually, but this has
significantly decreased over recent years. The Spatial Plan for Serbia (2010) 227 declared a target of 10% protected land until
2015 and 12% until 2021. However, the potential 61 EMERALD areas are estimated to cover 1,019,269 ha, which
constitutes 11.54% of total area of the Republic of Serbia and a by-law for their classification was passed in 2010. Moreover,
the government has almost fully harmonized national regulations with EU nature protection directives (95 – 100%
harmonized) and initiated NATURA 2000 network identification.
Industrial pollution in Serbia has significant impacts on the environment and on health. 75% of the inorganic discharges
are generated by 10 of about 250 industrial installations – in particular, the steel factory in Smederevo, the Nikola Tesla A
and B thermal power plants in Obrenovac, the non-ferrous metallurgy plant Zorka in Šabac, the Kostolac thermal power
plant, the Bor and Sjenica mines, and the Kolubara open-pit mine. The main point sources of organic discharge in Serbia
are around 130 pig farms representing 1.2 million head. The Government is currently in the process of harmonizing national
legislation with European directives in this sector: Certain provisions of the Industrial Emission Directive have been
transposed by transposition of previous directives from this field. The IPPC directive is fully transposed; the majority of the
VOCs Solvent Directive is transposed and the transposition of the Industrial Emission Directive is already well advanced.
However, the SEVESO Directive is still not yet fully transposed, although some progress has been made. The majority of the
EMAS regulation is still missing. EU Progress Report for 2012 highlighted that the integrated approach to permitting must be
further institutionalized and the administrative capacity strengthened.
The area of chemicals is reported to be almost fully regulated in accordance to the EU legislations andrequirements.
However, when EU created new regulation on biocidal products applicable from 1. September 2013, some further
harmonisation in biocidal products has become necessary. Besides, since relevant EU legislations constantly adapt to
scientific and technical development, it is necessary to ensure continual monitoring of harmonisation of national legislations.
The procedures centralised in EU are not used in Serbia. These procedures are chemical risk assessment and risk
assessment of active substance in biocidal product. However, biocidal products risk assessment is performed nationally,
therefore defined by national legislation. Regulatory risk assessment of biocidal products is based on procedures which
have not been done in our country by far and specific professional knowledge. Adequately trained people are crucial for
these procedures. Therefore, further strengthening of institutional and administrative capacities is necessary, with special
emphasis on building capacities for risk assessment.
227Official Gazette of the Republic of Serbia, No.88/2010
143
Law enforcement has improved with the implementation of annual plans for the inspection related to appropriate application
of provisions which regulate chemicals management. After changes of the Government and amendment of the ministry law,
Agency for Chemicals has been abolished and its responsibilities have been transferred to the Ministry in charge of
environment. Noise in environment is a growing issue in Serbia, especially in cities. The main cause of noise are traffic and
industry. In 2002 EU member states passed the Environmental Noise Directive 228, which envisages strategic noise mapping,
and relevant action plans. Serbian legislation on noise protection is fully harmonised with the EU regulations, however the
implementation is still to be strengthened, particularly in the area of strategic noise mapping and the drawing-up of
corresponding action plans.
Climate change. Serbia has been a member of the UN Framework Convention on Climate Change since June 2001. The
Kyoto Protocol came into force in January 2008. The provisions of major multilateral agreements, including the Vienna
Convention and the Montreal Protocol are also fully transposed into national regulation. The Initial National Communication
of the Republic of Serbia was adopted by the Government and submitted to the UNFCCC in 2010, whilst preparation of the
Second National Communication started in September 2012 and it should be finalized not later than in June 2015. According
the Initial National Communication, the total Green House Gas (GHG) emissions in the referent year 1990 (not taking into
account the amounts removed by forests) was 80,803 GgCO2eq. Total GHG emissions per capita in 2004 were reported as
under 5 tons of CO2eq, i.e. around 40% of the EU25 average, or 70% of the SEE country average229 The largest share came
from the energy sector (77.69 % of total emissions) and agriculture (14.64 %). The emissions from municipal dumps and
from sludge waste were collectively 2.39 % of the total GHG emissions. The total carbon dioxide emission in 1990 was
62,970Gg, of which 84.1 % originated as a result of fossil fuel combustion in the energy sector. The total GHG emissions in
1998 had a significant trend of decrease (–21.8%) in relation to 1990. There was an increase in mean annual temperatures
in almost all parts of Serbia, except southeast part of the country, up to 0.04°C/year. A decrease in precipitation was
observed in winter and spring in northern and eastern Serbia. Assessment of climate change in the future obtained by
regional climate model integrations show that further annual mean temperature increases can be expected. As noted in the
EC Progress Report for 2012, there is a need for setting a more strategic approach for the country. To date, there is no
comprehensive strategic document dealing with climate change, however, the preparation of a national Climate Change
Strategy is expected to start in 2013. In addition, the level of integration of climate change into national development
strategies (including both comprehensive and sectorial) is still insufficient (with the exception of the National Sustainable
Development Strategy). There is a lack of capacityand absence of some data for the establishment of a GHG inventory;
furthermore there are insufficient studies of climate change impacts and the possibility of adaptation to changed climate
conditions. Even though the national Regulation on the methodology for data collection for the preparation of a GHG
inventory has been adopted by the Serbian Government, a system for economy-wide and systematic data collection on
GHG emissions (and other information relevant to climate change) has not yet been fully established and needs to be
improved in order to align with EU requirements on monitoring, reporting and verification. The EC Progress Report for 2012
when referring to climate change highlights that limited progress was achieved in alignment with the climate acquis.
Transposition of the Emission Trading Directive has not yet started; transposition of Geological Storage of Carbon Dioxide
Directive was initiated by the adoption of the Law on Mining and Geological Researches, and it is assessed as being only
17% transposed; a similar situation exists with the transposition of the Quality of Petrol and Diesel Fuels Directive. Although
initial steps to identify stationary installations for the purpose of future implementation of an emissions trading system were
taken, further efforts should be made. In the case of Consumer Information Directive, implementation has not yet started, as
there is no legal background in existing legislation, which could provide a basis for the implementation of Directive
provisions.
Proper institutional and administrative capacity to implement, monitor and enforce environmental and climate
change legislation is still a “work in progress” and should be improved. The administrative capacity of governmental
institutions needs to be improved in the area of environmental protection. Water issues are split across several ministries
and agencies., A relevantly good cooperation has recently been established between these institutions although there still is
an issue about overlapping of competences and unclear definition of competencies in the areas covered by the ministries,
especially ministries in charge of energy, development, environment, agriculture, forestry, water management, natural
resources mining and spatial planning. The EC Progress Report for 2012 stressed that ‘’the strengthening of the
administrative capacity should remain a priority for Serbia’’. Particular attention should be paid to local self-governments and
their role in the implementation of environmental legislation. The process of decentralization brought a whole spectrum of
new environmental responsibilities to the local government level and this process is expected to continue. Local
environmental institutions should be given particular attention in future capacity building and strengthening.
Environmental investment in Serbia is low. The major sources of financing for the environment and climate change
sector are the state budget and incomes from fees. Currently the estimated expenditures of the budget of the Republic, AP
Vojvodina and towns and municipalities budget for environment are 0.3% of GNP. In the period of 2007 -2012, 275M€ were
allocated through all types of development assistance. The peak of absorption was achieved in 2011 with 46.62 M€.
228 Directive 2002/49/EC

229 Data from the Fourth Assessment of European Environment (European Environment Agency)
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According to the National Programme for Environmental Protection, expenditure in environment protection should grow up to
the level of 1.2% of GNP by 2014 and up to 2.4% of GNP by 2019. These projections are based on a 5% GNP annual
growth rate and are seriously threatened by current macroeconomic trends. Moreover, the recent abolishment of the
Environment Protection Fund and significant reduction of Budget funds for waters of Republic of Serbia has made
environmental investment more complicated.

priorities for the sector are grouped in a way to reflect three main types of actions following the principle of concentration:
(vi) Full and high quality approximation to the EU environmental and climate change acquis – EU environmental
policy is very extensive, covering all most important environmental and climate change aspects. Approximation
process requires complete updating of the national environmental legislation, establishment and strengthening of
institutional system, planning and development of costly environmental infrastructure. Serbia is aiming to implement
environmental chapter requirements by 2019 except these having transitional arrangements (mainly related to
implementation of high cost directives). Such goal establishes very tight timetable for large number of activities.
Despite considerable progress has been made in transposition of the environmental Acquis, much efforts are still
needed to finalise transposition process and ensure of implementation of transposed requirements. Only demands for
investment into waste and water infrastructure makes about 4 billion Euro (even significantly more by some analysis).
Therefore the National Environmental Approximation Strategy requires that the implementation would be focused on
EU requirements and work on approximation and on implementation of the Acquis would have a priority over other
national agendas including necessary reallocation of financial and staff resources to reflect this preference.
(vii) Combating climate change – Serbia as all other countries in the region is exposed to climate change effects,
including droughts, floods and other disasters. Although there is as yet no strategic framework, the country is taking
actions to develop adaptation policies and contribute to global actions in reducing greenhouse gas emissions. Number
of important actions for mitigation and adaptation are foreseen in the Initial National Communication of the Republic of
Serbia under the United Nations Framework Convention on Climate Change. This document foresees activities in
establishing better information basis by improving statistics and updating inventory of greenhouse gases, establishing
climate change impact monitoring and reporting. Vulnerability assessment is completed for various sectors in order to
enable a better inclusion of climate change issues in other sectorial policies, establish policies and instruments in
different sectors for mitigation of consequences and adaptation to changed climate conditions and prepare economy
sectors to participate in Kyoto protocol mechanisms. Raising public awareness about climate change will support the
implementation of climate change policies. In order to guide and organise national efforts in more efficient way Serbia
is developing the Second National Communication of the Republic of Serbia under the United Nations Framework
Convention on climate change and it has initiated creation of National Climate Change Strategy.
(viii) Environmental quality - Serbia is aiming for implementation of wide agenda of measures improving environmental
quality. This includes ensuring that drinking water in settlements meets quality standards of the EU Drinking Water
Directive, extension of centralised water supply to selected rural areas with the most unsatisfactory water quality,
improvement of water quality in water courses by reducing discharges of untreated industrial and municipal
wastewater by extension of sewerage system to cover 65% of population by 2019 and providing wastewater treatment
in agglomerations having significant impact on the recipient waters, especially in sensitive areas. It is aimed to
introduce separation and treatment of hazardous household and industrial waste as well as other special waste
streams, provide regional municipal waste management centres in each region in accordance with the EU Landfill
Directive, encourage waste recycling, close and re-cultivate existing non-compliant landfills and dumpsites. Goals are
established to improve air quality by decreasing emission from energy, industry and transport sector, to establish
ambient air quality in accordance with EU Directives in particular taking action in agglomerations where limit values
are exceeded, to strengthen institutional and administrative capacities for air quality and climate change issues.
Establishing eco-corridors, specific safety zones, monitoring and prevention of effects from economic activities,
preservation of protected plant and animal species, will protect rich biodiversity of the country. It is also aimed to
improve management systems in protected areas and further extend network of protected areas.
NAD Priority “Create and strengthen policy, regulatory, financing and monitoring mechanisms for ensuring sustainable
development including awareness raising in regard to environmental issues ”contributes to sector priority (i) listed above.
NAD Priority “Support climate change adaptation, mitigation and risk prevention” is in line with sector priority (ii) listed above.
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NAD Priority “Ensuring environmental sustainability through sound management of natural resources and reduction of
pollution” is in line with sector priorities (i) and (iii), listed above.
When developing measures for implementation of priorities, following targets set in the National Environmental
Approximation Strategy were taken into account for the period 2014 - 2020:
To transpose the EU environmental requirements into national legislation by 2014 and fully complete the process
not later than 2019
 To establish required institutions by 2016 and complete capacity building programme no later than 2019
 To implement EU requirements by 2019 except of these with agreed transitional periods
 To make substantial progress in establishing environmental infrastructure until 2020 and complete development of
infrastructure by 2030
Regional and transnational strategies
In the EU Strategy for the Danube region environment is one of the challenges: the Danube Region is a major
international hydrological basin and ecological corridor. The pillar II: Protecting the Environment in the Danube Region
focuses on three Priority Areas: (1) To restore and maintain the quality of waters; (2) To manage environmental risks and (3)
To preserve biodiversity, landscapes and the quality of air and soil. The Strategy proposes an Action Plan targeted to
achieve the environmental targets set out in the Danube River Basin Management Plan, reduce the nutrient levels in the
Danube River, implement Danube wide flood risk management plans achieving significant reduction of flood risk by 2021,
taking into account potential impacts of climate change, draw up effective management plans for all Natura 2000 sites,
reduce the area affected by soil erosion. Serbia adopted a governmental decision in 2010 230, which defines its priority pillars
for the Danube Serbia Region, aiming to achieve objectives of environmental protection and sustainable utilization of natural
resources.
The European Partnership with Serbia from 18 February 2008 (2008/213/EC) (under: Sectorial policies – Environment)
sets out a number of short and medium term priorities, including: strengthening of the administrative capacity within the
relevant government bodies and further alignment with EU standards in the environmental sector, with the emphasis on
implementation of environmental policy. The Stabilization and Association Agreement (Title VIII, Cooperation policies,
Article 111 – Environment) states that cooperation shall be established with the aim of strengthening administrative
structures and procedures to ensure strategic planning of environmental issues and coordination between relevant actors
and shall focus on the alignment of Serbia's legislation to the Community acquis. Special attention shall be paid to the
implementation of the Kyoto Protocol. Under Article 116, financial assistance may cover all sectors of co-operation, paying
particular attention to “approximation of legislation, economic development and environmental protection”. By adhering to
the Energy Community Treaty signed in October 2005, Serbia agreed to respect EU environmental acquis and Kyoto
protocol.
Convention on protection of trans-boundary watercourse and international lakes of the United Nations Economic
Commission for Europe (UNECE) (ratified by Serbia in 2010) is the base of cross-border cooperation regarding waters, both
bilateral and multilateral.
B6.3. EU agenda
“Sustainable growth” - promoting a more resource efficient, greener and more competitive economy - is one of the main
priorities of Europe 2020. This is reflected in one of the seven flagship initiatives put forward by the EC, namely "Resource
Efficient Europe" which sets out an agenda to make Europe's economy more sustainable by 2050 with the aim of
decoupling economic growth from the use of resources, supporting the shift towards a low carbon economy, increasing the
use of renewable energy sources, reducing CO2 emissions and promoting energy efficiency.
A common approach to the follow-up to Rio+20 (in particular the Sustainable Development Goals and the review of the
Millennium Development Goals- MDGs) is proposed in the EC Communication entitled “A Decent Life for All”. The overall
objective of this new post-2015 framework should be to ensure a "decent life for all" by 2030, ending poverty in all its
dimensions (economic, social, environmental) and giving the world a sustainable future. This framework would include a
limited set of goals covering basic human development (based on updated existing MDGs and also reflecting issues such as
social protection), drivers for sustainable and inclusive growth and development to ensure structural transformation of the
economy, the creation of productive capacities and employment and the transition to an inclusive green economy capable of
addressing climate challenges, and the sustainable management of natural resources.
230
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Other important initiatives shaping EU policy in environment and climate change include the EU Biodiversity Strategy
which aims to halt the loss of biodiversity and ecosystem services in the EU by 2020 and a strategy for water - the Water
Blueprint with a time span which stretches to 2050 which aims to ensure that a sufficient quantity of good quality water is
available to meet the needs of citizens, the economy and the environment throughout the EU. The Water Blueprint outlines
actions on better implementation of the current water legislation, more effective integration of water policy objectives into
other policies as well as filling some gaps, in particular regarding water quantity and efficiency.
The European Commission has proposed a new Environment Action Programme for the EU "Living Well, Within the
Limits of our Planet". It will guide environment policy up to 2020. Protecting natural capital, encouraging more resource
efficiency and accelerating the transition to the low-carbon economy are key features of the programme, which also seeks to
tackle environmental causes of disease. The programme contains 9 priority objectives, including protection, conservation
and enhancement the EU’s natural capital, turning the EU into a resource-efficient, green and competitive low-carbon
economy, safeguarding the EU’s citizens from environment-related pressures and risks to health and well-being. Actions
also will be taken to maximise the benefits of the EU’s environment legislation, improve the evidence base for environment
policy, to secure investment for environment and climate policy.
Initiatives under way include a review of air policies, preparations for a comprehensive package on waste, discussion on the
Common Agricultural Policy proposals containing 3 main environmental elements, namely: cross -compliance rules,
‘greening’ and rural development.
Environmental Acquis - Based on six Environmental Action Programmes the EU has adopted some 200 pieces of
environmental legal acts aimed at improving the quality of the environment. This environmental acquis is summarised in
Chapter 27, which includes the following legislative areas: (i) horizontal requirements, (ii) air quality, (iii) waste management,
(iv) water quality, (v) nature protection, (vi) industrial pollution prevention and control, (vii) chemicals, (viii) noise, (ix) climate
change. Currently, for the purpose of monitoring progress, Serbia is requested by the EC to report on the implementation of
more than 80 directives and regulations, essentially this constitutes the main national approximation agenda for this sector.
Some problematic areas for national approximation to the EU environmental acquis and the activities foreseen to implement
EU requirements foreseen in the NPPA include the following:
Horizontal Legislation - This cross-sectorial part of the EU environmental acquis needs to be fully implemented by the date
of accession and will require significant development in national capabilities. Horizontal legislation includes major pieces of
legislation related inter alia to environmental impact and strategic environmental assessments; public participation in the
decision-making process; and access to information on environmental matters. Under this sub-sector, besides an extensive
legislative programme, the NPAA foresees a number of important policy actions including: (i) the adoption of the Action Plan
for the Implementation of the National Environmental Protection Programme for a five-year period (in compliance with the
relevant EU strategic documents which include the Sixth EU Environment Action Programme, the EU Sustainable
Development Strategy, the Millennium Development Goals and the Rio Declaration); (ii) adoption of the National Spatial
Data Infrastructure Strategy for the period 2013-2015; (iii) adoption of the Programme for Managing the National Information
System for Environmental Protection; (iv) establishing systematic monitoring for sustainable production and consumption; (v)
development of guidelines on public participation in decision-making in environmental matters; (vi) development of a manual
on legal protection in environmental issues. Information related activities are foreseen to be guided by the development of
the ‘Integrated Strategy for the Establishment of a National System of Environmental Monitoring in the Republic of Serbia’.
Air Quality - Challenges include reducing emissions from stationary sources such as power plants and local district heating
installations, adapting oil refineries to meet EU standards, control of volatile organic compound emissions resulting from the
storage of petrol and its distribution, reinforcing institutions for monitoring and data collection, addressing growing pollution
from traffic in the cities. Responding to challenges of this subsector the NPAA foresees the development of number of legal
acts and other actions which will create a regulatory basis for implementation of requirements including (i) the revision of the
existing ‘Regulation on Limit Values of Pollutants in the Air’; (ii) the adoption of the ‘Regulation on Limit Values of Pollutants
into the Air from Stationary Pollution Sources other than Combustion Plants’; (iii) the establishment of the categories of air
quality in the zones and agglomerations on annual level through the adoption of the ‘Regulation on Categories of Air’; (iv)
the adoption of the air quality plan for the agglomeration of Bor and the development of air quality plans for the cities of
Belgrade and Novi Sad; (v) the adoption of the ‘National Programme for Gradual Reduction of Maximum Annual National
Emissions of Pollutants’; (vi) the adoption of the ‘Plan for the Implementation of EU Legislation Relating to the Sulphur
Content of Certain Liquid Fuels’, (vii) the adoption of a system for control and monitoring of the liquid fuel market.
Waste management – Implementation of the Landfill Directive requires important investments for the establishment and /or
upgrading of landfill sites. Other challenges include implementation of packaging waste requirements on standards for the
design of packaging and specific targets for the recycling and recovery of waste packaging, waste electrical and electronic
equipment legislation requiring the establishment of a system for collection, recycling and recovery of electrical goods and
specified targets for managing other waste streams. The NPAA foresees the development of the ‘Implementation Plan for
the Landfills Directive’, which will include an assessment of all the infrastructure needs for land-filling of waste, and will also
include important actions for implementation of the Waste Framework Directive and requirements for dealing with packaging
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waste. Packaging waste management will further be addressed by adopting the ‘Regulation on the Establishment of a Plan
to Reduce Packaging Waste’ (2014-2018). The NPAA foresees the development of plans for the management of specific
waste flows such as electrical and electronic waste, used batteries and accumulators, waste oils and asbestos. Priorities for
investment in the waste management sub-sector are related to the development of infrastructure for the establishment of
regional waste management systems.
Water - Major investment programmes are required for the management of wastewater and for improving the quality of
drinking water. Implementation of the Water Framework Directive requires heavy preparatory work and a strong institutional
set-up. Challenges also include implementation of the Nitrates Directive particularly defining vulnerable zones and
establishing action plans to be implemented by farmers. Combating relatively slower progress in the water sector the NPAA
foresees extensive measures for legal transposition and implementation planning. Activities include development of the
‘Strategy for Water Management in the Territory of the Republic of Serbia’, which will establish the long-term directions for
water management. This strategy will be followed by the adoption of the Water Management Plans. Few plans for water
management will be created, one of which will be the Danube river basin management plan prepared by ministry in charge
of agriculture, forestry and water management –Water Directorate, while others are prepared by Srbijavode, Vode Vojvodine
and Beogradvode for the basin areas of their competence according to the Article 34 of the Law on Waters (OGRS 30/10.
and 93/12). The plans for implementation are expected for the following: Urban Waste Water Treatment Directive
(91/271/EEC), Nitrates Directive, Water Pollution Prevention Plan and Flood Risk Management plan. It should be
emphasised that implementation of ELV Directive and general water preservation significantly depend on Water Pollution
Prevention Plan. Ministry in charge of agriculture, forestry and water management –Water Directorate (one of the examples
of good cross-ministerial cooperation) is competent for its preparation according to the Law on Waters (OGRS 30/10 and
93/12); passing the Law on Waters was planned for the end of 2012 but it was delayed for the end of 2014. Measures are
also foreseen for strengthening of administrative capacities including establishing of the National Water Conference which
will enable the participation of the public in water management decisions for each water area, strengthening inspection
capacities to perform supervision of the quality of discharged waste waters and the quality of ground waters, extending
monitoring network and providing improved legal basis. Attention will be focused for the implementation of investment
projects in agglomerations above 2000 PE (population equivalents).
Industrial Pollution Control and Risk Management - The Directive on Industrial Emissions concerns a large number of
firms and installations and large-scale investments which need to be made compliant with the requirements of the Directive.
The NPAA foresees further transposition of the industrial pollution requirements into the national law including (i) the
development of an approach for the harmonization of national legislation with EU legislation in the scope of the new
Industrial Emissions Directive; (ii) the development of a programme for the prevention and control of industrial pollution; (iii)
the management of chemicals aimed at decreasing industrial pollution and commencement of operations in accordance with
the terms prescribed by integrated permits; (iv) creation of conditions for the implementation of the EMAS system. As a
capacity building measure, it is foreseen to develop examples of three integrated permits for selected industrial facilities. In
addition, a number of planned measures are related to the implementation of the Seveso Directive including identification of
Seveso facilities, (i.e. plants, the activities of which can result in chemical accidents with cross-border effects), strengthening
of capacities to develop Safety Reports and Emergency Plans for three Seveso facility operators.
Nature Protection - The definition and designation of Natura 2000 sites has proved to be very difficult, this is coupled with
the poor implementation of existing laws on nature protection. The Natura 2000 network is a key component in the
protection of the rich bio-diversity and ecosystems of the countries and needs to be completed by the date of accession. The
NPAA foresees the adoption of a revised ‘Strategy on Biological Diversity’, the harmonization of the methodology for
defining indicators in the field of biodiversity, forestry, hunting and fishing in accordance with the requirements of the Birds
Directive and the Habitats Directive, development of a methodology for mapping types of habitat and species from the
directives annexes and training of teams for the mapping types of habitat and species, improvement of the NATURA 2000
information system, development of a draft list of potential NATURA 2000 locations, capacity building for efficient
implementation of CITES requirements.
During the period 2014 – 2016, the main focus of the NPAA is to finalise transposition of the environmental acquis, prepare
planning documents to guide implementation, establish and strengthen the administration and to further progress with the
development of required infrastructure.
231Official Gazette of RS - International Agreements, no. 124/07).
148
A SWOT analysis of the Environment and Climate Change sector has been undertaken in addition to the situation analysis
presented in the previous sections in order to set out the long term objectives, medium term strategic priorities, realistic and
targeted measures. This analysis is presented below.
 ; Basic/roof strategic documents are established  Division of responsibilities among several institutions
 Most of EU framework legislation transposed, basic making coordination process difficult
legal framework established  Lack of Action Plan for realisation of National
 Coordination mechanisms established for Chapter 27 Environmental Protection Programme
Environment  Lack of tactical and operational level documents,
which would allow to produce high quality pipelines of
investment projects and guide institutional activities
and investments
 Lack of planning documents and identified policies in
water sub-sector
 Lack of reliable statistics on environment and climate
change
 Unclear financial mechanisms for environmental
protection (including implementation of polluter pays
principle)
 Insufficient capacities and capabilities for project and
financial planning
 Weak capacities at local self-government level to
manage, finance and implement competences passed
by laws in environmental sector
 Insufficient guidance and support to municipalities
from central government in particular regarding
implementation of investment projects
 Assumed leading role for chapter 27 from the  Unclear financing mechanism and under-financing of
institution responsible for environment and established environmental infrastructure projects
institutional structure for internal and external  Unclear start of EU negotiations and slowdown in EU
coordination approximation process
 Availability of financing from EU /bilateral funds and  Lack of stability and changing policies in sectors which
development banks for environment require long term planning (e.g. waste management)
 Establishment, consolidation and acceleration of the  Lack of stability in administration responsible for the
EU accession process for chapter 27 sector
 Lack of progress in establishing decentralised
implementation system
 Lack of capacity to take decisions and set priorities for
actions
232
149
To reflect the above and to guide the future programming of assistance programmes, the overall objective for this sector is
formulated as follows: To improve environmental quality by means of: aligning policy and regulatory mechanisms
with the EU environmental acquis; more responsible management of natural resources and developing
environmental infrastructure.
The implementation of the above objective requires that available resources should be concentrated on measures which will
allow addressing the most acute pollution problems and will allow the country to prepare for negotiations and implementation
of most EU requirements for this sector. Such actions are proposed under three priorities, these are described below:
Priority 1. Creating and strengthening policy, regulatory, financing and monitoring mechanisms for ensuring
sustainable development including awareness rising in regard to environmental issues
During the last decade the country developed a number of important policy documents which ensure strategic guidance in
the sector. It is very important, that tactical and operational planning supports this strategic guidance and helps to target
actions so as to ensure the more efficient use of resources. Policy implementation is directly related with the regulatory
mechanism. Ambitious national environmental policy goals and related activities towards EU accession call for a substantial
revision of the regulatory framework, particularly in terms of the adoption of laws for the transposition of EU requirements
and for the strengthening of enforcement capacities. Much has already been done in establishing the required framework,
but some needs remain particularly in relation to the development of secondary legislation. One major challenge is the
management of infrastructure development. As estimated in the NEAS, the water and waste management sub-sectors alone
require some 4 B€ billion EUR of investments to comply with the EU requirements. The scale of investment needed calls for
the reassessment of all infrastructure needs and the development of sound environmental financing mechanisms for the
identification, preparation and implementation of investment projects, both at central and local levels. Priority setting and
sound decision making, requires reliable information and related monitoring and data processing capacities. Information is
also an important part in awareness rising. Public support for Governmental goals in the Environment and Climate Change
sector is an essential part making all plans implementable.
Priority 2. Supporting climate change adaptation, mitigation and risk prevention
Apart from activities aimed at reducing GHG emissions, for Serbia it is of vital importance to carry out research in relation to
assessing national vulnerability to global environmental change and to confront the probable consequences of climate
change through adaptation. Adaptation is a cross-cutting issue which must be taken into consideration in policy documents
of many sectors, such as natural resources, agriculture, energy, transport, water to the effects of climate change. Support is
needed to tackle this issue in a systemic, continuous and coordinated way; first of all, by improving information basis for
decision making, developing strategic documents in this sector and integrating climate change into sectorial policies.
Strategic documents will provide guidance on most important actions to be taken including development of infrastructure
where necessary. Mitigation and risk prevention actions such as measures to reduce emissions, prevent or reduce impacts
of floods, droughts and other climate change effects will require substantial financial resources for both soft and hard
measures and well-targeted donor assistance will be essential in this respect.
Priority 3. Ensuring environmental sustainability through sound management of natural resources and reduction of
pollution
Natural resources are very vulnerable assets and need special attention in terms of their protection and use. Serbia’s natural
habitat, bio- and geo-diversity must be conserved, while its land, water and air must be protected from the detrimental
effects of daily activities performed particularly in the energy, transport and industrial sectors, but also by households.
Excessive use of natural resources brings into question the aspect of sustainable development, especially regarding
renewable resources. It is of the utmost importance to ensure that people receive clean water to drink; that industry can
access water supplies for production; that the management of all waste is efficient, sustainable, and (in the case of
hazardous waste) safe. The priority of protection and sustainable use of natural resources is realised primarily through
creation and actualisation of action plans, programmes and projects for separate resource or good – by spatial mapping and
monitoring of separate resources and goods, which enables more efficient management of protected areas, bio-resources
and natural goods. Huge investments are needed to extend and modernize Serbia’s out-dated environmental infrastructure.
Additional investment programmes are necessary to prevent the existing run-down water supply and wastewater systems
from deteriorating further. This task is also related to achieving progress in the implementation of EU requirements in
particular, heavy cost directives. It is estimated that for water and waste management infrastructure there is a need for an
annual investment of about 235 M€ in order to achieve the implementation of the Landfill and Urban Waste Water Directives
by 2030. Such demands call for a very selective approach to eligible sectors and projects. Considering the high demands for
investment it will be important to achieve an indicative division of resources between the sub-sectors which would allow for
the better planning of investment project pipelines and for the timely preparation of projects for financing. On the basis of
needs analyses in the sub-sectors it is estimated that for the period until 2020 about 30% of investment resources should go
to implement waste management requirements and the remaining 70% should be allocated to water and waste water
management. While meeting large demands for environmental investment all possible financing sources will be taken into
account, including grants and loans from national and international institutions, beneficiaries’ own resources, private sector
150
resources. Where possible and feasible in waste management sector, priority will be given to private sector participation in
order to save public resources for other environmental investment.
Priority 1 - Creating and strengthening policy, regulatory, financing and monitoring mechanisms for ensuring
sustainable development including awareness rising in regard to environmental issues
Measure 1.1.Strengthening multiannual planning, legal reforms and institution-building related to environmental
protection
This measure will support completion of the strategic framework by preparing the missing sector specific planning
documents and other planning documents addressing priority needs. It will be taken into account that some plans like
directive specific implementation plan for Landfill directive is being developed by on-going activities, as well as some other
are planned to be developed with secured assistance funds during 2013 – 2014. After implementation of the measure all
directive specific implementation plans to support implementation of heavy investment cost directives will be developed and
serve for planning and prioritisation of strategic investment projects as well as serve as background for development of
negotiations position for Chapter 27.Particular focus will be placed on the water sector in order to bring this subsector up to
required level for river basin management and investment planning. Other planning documents will be developed to close
gaps identified in implementation of the National Environmental Approximation Strategy. Such evaluation will be achieved
during 2013.
In addition, developing primary and secondary legislation to complete transposition process will be supported. As stated in
the NPAA, large number of legal acts shall be developed to complete the transposition process. During the period of
implementation of this measure all remaining legal gaps will be closed by supporting development of draft legal acts in
particular related to the implementation of the acquis, organising stakeholders discussion and providing explanation of
requirements for citizens and implementing institutions, in particular at local level;
Strengthening of technical and institutional capacities in priority areas will be integral part of this measure. It is planned that
Institutional development plan will be prepared during 2013 - 2014. It will assess all needs for establishment and
strengthening of institutions, identify number of staff necessary to employ for different tasks, required qualification and
experience, necessary training programmes to support capabilities development. The measure will support the
implementation of the Plan and other needed activities in order to achieve the required level of institutional capacities by
2019 the latest. Also considering that demands for environmental investment are very high and implementation periods will
continue for at least next fifteen years, implementation of the measure will allow establishing effective institutional and
procedural system for investment project cycle management of strategic projects in environmental sector. Activities will
include support in streamlining all national environment related investment efforts to achieve progress in implementation of
heavy cost directives, support to municipalities, regional waste management centres and other beneficiaries in identifying,
preparing and implementing environmental investment projects. After implementation of the measure environmental
institutions will be ready to meet increased financing for environmental projects after membership;
Support is needed for activities that raise awareness and provide information for actors in transport, energy and other
sectors, business community (which facilitates integration of environmental concerns into other sectorial policies),
municipalities, CSOs and other relevant stakeholders and citizens related to environmental protection and implications of the
climate change requirements. Activities will target various groups addressing special topics including support for
implementation of EIA requirements in particular at local level, campaigns for citizens to promote waste separation and
recycling, awareness about responsible behaviour towards environment, sustainable consumption patterns, climate change
mitigation and adaptation measures and other. Activities will also include assessment of impacts from various sectors and
suggest measures to reduce negative effects by greening sectorial policies.
Measure 1.2. Developing integrated monitoring and information systems on environmental quality, improving
reporting and strengthening law enforcement
This measure will support extension/ alignment/ integration of the fragmented components into one fully operational
comprehensive environmental monitoring and laboratory control system including support to capacity building for self-
monitoring (emission monitoring performed by facility operators). Activities will include assessment of current monitoring
capacities and functions carried by various institutions in particular Serbian Environmental Protection Agency identifying
remaining gaps and establishing legal requirements, procedures and infrastructure to fully comply with the EU requirements
and being able to provide comprehensive information to the public and decision making processes. Particular attention will
be paid to monitoring and self-monitoring requirements for measuring emission in areas with increased levels of pollution.
It will also support upgrading the system of data collection and reporting on air and water quality, waste management,
climate change, noise, soil contamination, etc. so as to comply with reporting requirements (E-PRTR, CLRTAP, GHG,
151
emission trade, other obligations for reporting under the EU requirements) and support the evidence based decision making
including investment planning in the sector. Activities will include assessment of data collection practices in order to develop
proposals for efficient data collection and the processing system. It will include improving statistics for waste management
and water management in order to improve reliability of data when planning sectorial policies. Special attention will be paid
to data and information required for investment planning.
Building capacities to enforce the legislation (including strengthening of environmental inspection at all levels) will be integral
part of this measure. Activities will continue strengthening of environmental inspection capacities at all levels including
training of relevant staff, development of procedures and IT solution to increase efficiency of inspections, providing IT
software and hardware, transport means and other equipment.
Priority 2 - Supporting climate change adaptation, mitigation and risk prevention
Measure 2.1. Supporting implementation of Climate change strategy with action plan
This measure will support implementation of Climate change strategy with action plan. It is foreseen to develop the Climate
Change Strategy and the Action plan during 2013 – 2015 which will include targets for reduction of emissions by 2020 and
2030, related measures for mitigation and adaptation as well as actions to achieve established targets. Activities will support
implementation of identified priority actions.
Identification and inclusion of climate change issues/requirements into sectorial policies and establishment of required
infrastructure and other solutions for adaptation measures will make important part of this measure. The Climate change
strategy will foresee targets and actions needed in various sectors. Activities will assist in designing policies and instruments
to be used in different sectors for climate change mitigation and adaptation by supporting relevant sectorial institutions. They
will help to review the current status and propose changes in sectorial policies in order to implement requirements from the
Climate change strategy with the Action plan and other documents. Activities might also include development of
infrastructure projects documentation in line with identified priorities from the Climate Change Strategy.
Priority 3 - Ensuring environmental sustainability through sound management of natural resources and reduction
of pollution
Measure 3.1. Ensuring conservation, sustainable use and more efficient management of natural resources, (nature
protection, biodiversity, remediation of contaminated sites)
This measure will provide support to the implementation of practices for sustainable use of natural resources, remediation of
contaminated sites and reduction of harmful effects of the industry. Activities will include support to responsible institutions to
assess the situation, identify problems and foresee measures to address priority problems. Activities will also include
development of project documentation for implementation of priority measures.
Support will also include further development of the network of protected natural areas as the basis for the NATURA 2000
network, improved management system of protected areas. Activities include support to finalising assessment of NATURA
territories, development of proposals for establishment of protected areas, development of required planning documentation
for establishment and management of protected areas. Activities will also include support for strengthening administrations
of protected areas by providing training, IT software and hardware for data management, monitoring equipment and
transport. This will also include activities to improve capacities of related inspection functions both in protected areas
administrations and other institutions carrying such functions. Proper attention will be paid to identify threats to biodiversity
protection from intensifying agricultural practices, development of infrastructure and other economic activities and actions
will be taken to ensure required level of protection through land use planning, environmentally responsible agriculture,
improved application of the EIA requirements, etc.
Measure 3.2. Developing and improving waste management systems
This measure includes support for implementation of waste prevention and reduction policies, increase in collection and
recycling, establishment of priority components of regional waste management systems, including development of new
landfills and related infrastructure, closing and re-cultivation of non-compliant sites, establishment of facilities for treatment of
hazardous waste, establishing systems for collection and treatment of special waste streams. Activities will include
development of project documentation and implementation of investment projects supporting establishment of regional
waste management systems and other priority infrastructure including project preparation, implementation, coordination and
supervision. Priority investments will be directed to establish regional waste management systems including establishment
of new landfills and related infrastructure, closure of non-compliant landfills, improving waste collection and sorting system
(collection trucks, containers, recycling yards, secondary separation lines, transfer stations), providing biodegradable waste
composting sites. This measure will also include related studies, development of planning and other documents needed to
ensure investment project sustainability. Activities will be targeted to implementation of Landfill directive and other EU high
cost requirements. All steps will follow procedure and criteria for identification and selection of investment projects set by
NIPAC TS.
152
Measure 3.3. Enhancing water management (water supply and waste water management)
Support will be provided for extension and optimization of the public water supply networks and treatment facilities,
construction and upgrading of municipal wastewater collection (sewage) and treatment systems. Activities will include
development of project documentation and implementation of investment projects implementing Drinking water and Urban
Waste Water Directives, but also other identified priority needs. Support will be provided to municipalities for project
preparation, implementation, coordination and supervision as well as other functions related to investment project
management. All steps will follow procedure and criteria for identification and selection of investment projects set by NIPAC
TS.
Measure 3.4. Improving air quality through reduction of harmful emissions
This measure is addressing increased air pollution in hot spots areas , procedures for issuing integrated permitting, planning
and implementation of priority actions to reduce harmful emissions. Activities will include identification of measures to reduce
pollution in hot spot areas, assist in procedure of issuing integrated permittingrequirements, and identify priority investment
projects to reduce pollution. Activities will also assist in developing project documentation and implementation of priority
investment projects. All steps will follow procedure and criteria for identification and selection of investment projects set by
NIPAC TS.
Regional, Cross-Border and Transnational Themes in Environment and Climate Change sector
Within regional priorities addressed by MB IPA in the environment sector, Serbia is supporting those related to the project
preparation and implementation of investments under WBIF. To complement national efforts, the focus is on infrastructure
investments related to water management and water quality improvement which have regional environmental impact.
Additional regional interest of Serbia is possibility to finance climate change projects and include climate change
considerations under various projects through climate change window to be adopted by WBIF. Having in mind regional
context and necessity for good coordination, JASPERS (Joint Assistance to Support Projects in European Regions) should
support and advice on project preparation and financial engineering issues.
In the Environment sector CBC and Transnational possible areas of intervention supporting thematic objective 6.
Protecting the environment and promoting resource efficiency and with the high implementation potential are: waste
recycling; improving water supplies; reduction of leaks and wastage and improved wastewater treatment. In pursuing the EC
recommendations for the Western Balkan countries relating to the environment sector, IPA CBC can also be used for
support in the development of cross-border environmental protection plans, risk assessments and monitoring plans for
selected cross-border areas.
Transnational priorities in the environmental sector are related to the sustainable growth by accelerating the development of
critical infrastructure and helping businesses develop and adopt renewable & green technologies. The actions proposed for
the implementation of the Pillar II of the EU Strategy for the Danube Region relating to environmental protection will make
a direct contribution to the Europe 2020 Strategy. They address specifically the goals of tackling climate change challenges,
of developing sustainable use of resources (which include water, nature and land for instance) and of securing quality of life.
This requires a regional approach to nature conservation, spatial planning and water management. Pollution does not
respect national borders. Major problems such as untreated sewage and pollution from fertiliser and soil run-off make the
Danube highly polluted. The environmental impact of transport links, tourist developments, or new energy-producing
facilities must also be considered, evaluated and eventually mitigated.
Environmental policy of the Republic of Serbia at the national level is predominantly addressed by the following institutions:
the ministry in charge of the environment, the ministry in charge of natural resources, the ministry in charge of water, the
ministry in charge of health, the ministry in charge of urbanism and construction, the Serbian Environmental Protection
Agency, the Statistical Office of the Republic of Serbia, the Republic Hydro meteorological Service, the Institute for Nature
Protection, the National and Regional Public Health Institutes. The lead institution for the sector is the Ministry in charge of
environment.
In context of Sector Approach, the Ministry in charge of environment coordinates the work of all relevant institutions in the
sector in regard to planning, programming, implementation and monitoring of the Environment sector measures/operations
which will be supported by EU funds and other international development assistance. Responsibility for formal submission
and later implementation of measures/operations depends of their content and responsibility of institutions involved in the
Environment sector.
153
Water issues are split across several ministries and agencies, so cooperation between actors is vital in order to achieve a
coordinated approach. This is of particular important because investment needs in water sector make up the bulk of all
needed funds for eventual national compliance with the requirements of chapter 27.
Certain jurisdictions in the field of environmental protection were transferred to the Autonomous Province of Vojvodina,
namely the Provincial Secretariat for Environmental Protection and Sustainable Development, which is responsible for
environmental planning, programming, monitoring and implementation on the territory of the province. It should provide
integration of protection and improvement of environment in all sectorial policies by implementation of mutually agreed plans
and programs and implementation of regulations through a system of permits and the enforcement of technical standards
and regulations, and by funding, measures for environmental protection. However, local secretariats for environmental
protection in the municipalities have limited responsibility in environmental issues, which includes air protection, noise
protection, municipal waste management, urban planning, construction permits for small objects and the strategic
environmental assessment of plans and programmes, environment impact assessment of projects as well as issuing of
integrated permits within their competence.
Considering the complexity of the Environment and Climate Change sector there is a strong need to further strengthen inter-
institutional cooperation and coordination processes. In order to improve and coordinate activities related to planning,
programming, implementation and monitoring of EU funds and international assistance and to increase the efficiency and
effectiveness of development assistance, additional mechanisms have been introduced, that is to say, the Sector Working
Group (SWG) for Environment and Climate Change 233. The SWG for Environment and Climate Change is responsible to
coordinate activities related to planning, programming, and monitoring of EU funds and international assistance, to propose
relevant measures and activities. The functioning, management, organisation and composition of SWG is more precisely
defined by the Rules of Procedure for Sector Working Groups for the Programming and Monitoring of the EU funds and
development assistance. The Sector Working Group for Environment and Climate Change comprises of representatives
from European Integration Office, the Ministry in charge of the environment, the Ministry in charge of finance and economy,
the Ministry in charge of natural resources, mining and spatial planning, the Ministry in charge of agriculture, forestry and
water management, the Ministry in charge of transport, the Ministry in charge of construction and urbanism, the Ministry in
charge of regional development and local self-government, the Ministry in charge of health, the Ministry in charge of home
affairs, the Republic Hydro-meteorological Service, the Republic Statistical Office, the Republic Geodetic Authority, the
Institute for Standardisation of Serbia, the Institute for Nature Protection, the Republic Legislation Secretariat. Members of
the SWG are officially appointed representatives of the above mentioned line ministries at the level of State Secretary or

235
154
155
PRIORITY 1: Creating and strengthening policy, regulatory, financing and monitoring mechanisms for ensuring sustainable development including awareness rising in regard to environmental issues
Target Institution in
Baseline Means of
Indicator Unit charge for
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
reporting
Ministry in
EU Common
1.1 Closing of chapter 27 Environment NA NA YES charge for
Position
environment
MEASURE 1.1: .Strengthening multiannual planning, legal reforms and institution-building related to environmental protection
Baseline Means of
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
reporting
Ministry in
1.1.1 Legal acts adopted in particular year compared with %
- 100 100 100 100 100 100 100 NPAA charge for
envisaged to be adopted in the NPAA (annual)
environment
Ministry in
1.1.2 Number of sub-sectors fully covered with planning MEDEP
Number - 1 2 4 7 9 charge for
documents annual report
environment
1.1.3 Share of measures implemented from the Ministry in
MEDEP
Institutional Development Plan compared with total number % NA NA NA 10 30 60 80 100 charge for
annual report
of measures236 environment
MEASURE 1.2: Developing integrated monitoring and information systems on environmental quality, improving reporting and strengthening law enforcement
Baseline Means of
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
reporting
Ministry in
1.2.1 Number of subsectors fully covered with monitoring MEDEP
Number 2 2 3 4 5 6 7 9 charge for
programmes annual report
environment
PRIORITY 2: Supporting climate change adaptation, mitigation and risk prevention

Baseline Means of
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
reporting
2.1 Emission of greenhouse gases Tonnes NA237 Inventory Ministry in
236Plan to be developed by IPA 2013

237There are no official data. National GHG emissions for the period that includes 2012 are currently under calculation. Mitigation potential for the period until 2020 will be assessed based on these calculations,
afterward.
156
of CO2 charge for
equivale environment
nt
MEASURE 2.1: Supporting implementation of Climate change strategy and action plan
Baseline Means of
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
reporting
MEDEP Ministry in
2.1.1Share of measures implemented from the National
% NA NA NA 0 ? ? annual charge for
Climate Change Strategy238
report environment
Initial
Ministry in
2.1.2 Number of sectors which integrate climate change National
Number 9 charge for
issues into sectorial strategies Communicat
environment
ion
PRIORITY 3: Ensuring environmental sustainability through sound management of natural resources and reduction of pollution
Baseline Means of
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
reporting
Annual
Ministry in charge
3.1 Serbian Water Quality Index Number 82.1 82,3 82,5 82,7 82,9 83,2 Report
for environment
SEPA
Annual
report on air
Ministry in charge
3.2 Air quality index SAQI_11 Number NA quality in the
for environment
RS prepared
by SEPA
Annual
Report
SEPA
3.3 Share of established protected areas compared to Ministry in charge
% 5,92 10,00 Institute for
overall territory for environment
Nature
Conservatio
n of the RS
MEASURE 3.1: Ensuring conservation, sustainable use and more efficient management of natural resources, (nature protection, biodiversity, remediation of contaminated sites)
Institution in
Baseline Means of
Indicator Unit Target charge for
(2012) Verification
reporting
238Expected in 2015.
157
2013 2014 2015 2016 2017 2018 2019 2020
MEDEP
Inventory
3.1.1 Share of identified and mapped habitat types and Ministry in
Institute for
species and their habitats (national and international) as Number NA 30 50 60 80 100 charge for
Nature
required by EU legislation environment
Conservation
of the RS
Report of the
MEDEP
Ministry in
3.1.2 Issued IPPC permits from all IPPC installations for (Department
% 40 45 50 55 60 70 80 100 100 charge for
particular year of the
environment
integrated
permits)
MEASURE 3.2: Developing and improving waste management systems
Institution in
Means of
Baseline Target charge for
(2012) reporting
2013 2014 2015 2016 2017 2018 2019 2020
Ministry in
Environment
3.2.1 Households provided with waste collection system % 77,3 82 87 charge for
al statistics
environment
Ministry in
3.2.2 Rate of municipal waste delivered to compliant MEDEP
% 22 27 32 charge for
landfills compared to overall municipal waste assessment
environment
MEASURE 3.3: Enhancing water management (water supply and waste water management)
Institution in
Means of
(2012) reporting
2013 2014 2015 2016 2017 2018 2019 2020
Environment
al statistics
Wastewater Ministry in
3.3.1 Households connected to waste water collection
% 51,7239 discharged charge for
network
in the environment
Republic of
Serbia
Environment Ministry in
3.3.2Share of treated wastewater in total wastewater
% 15,7240 al statistics charge for
Discharge
Wastewater environment
239Data for 2011.

240Data for 2011.
158
discharged
in the
Republic of
Serbia
Ministry in
Environment
3.3.3: Share of population served by water supply % 92,5241 charge for
al statistics
environment
MEASURE 3.4: Improving air quality through reduction of harmful emissions
Institution in
Means of
(2012) reporting
2013 2014 2015 2016 2017 2018 2019 2020
+7%
(SO2); Annual report
Ministry in
3.4.1 The annual change of the amount of selected +15% on air quality
% charge for
pollutants emitted into the air (SO2, NOx, PM10) (NOx) in the RS -
environment
N/A SEPA
(PM10)242
241Data for 2011.

242All data for 2011.
159
According to the ISDACON database, in the period 2007-2012, a total amount of about 275 M€ was allocated for
environment sector (including water supply and sanitation) from the international donor community. The largest and most
important donor in the sector has been the EU, with total disbursement within IPA component I amounting to 206.42M€ for
environment sector for the period 2007-2013.
In the six annual programmes 2007-2013, IPA component I is including projects for waste water treatment, municipal and
hazardous waste management, capacity building (which together account for almost 80% of funding). IPA has been helping
to approximate Serbian legislation with the EU environmental acquis and increasing the capacity of various national
institutions to implement transposed requirements. Support included (I) strengthening of the Serbian Environmental
Protection Agency (SEPA) as a national focal point for cooperation with European Environment Agency in the realisation of
Serbia’s international environmental protection obligations; (II)strengthening administrative capacities for air quality
management system in Serbia; (III) strengthening capacities for protected areas in Serbia to comply with Natura 2000
requirements; (IV), strengthening chemicals management system; (V) strengthening environmental inspection at national,
provincial and local levels to enforce requirements. In addition, IPA has financed development of planning documents
including sewerage and wastewater master plan for the West Morava river basin, a study of flood prone areas to aid policy
development. IPA supported investment projects aimed at reducing emissions from thermal power plants in Serbia in line
with EU directives, municipal and hazardous waste management, as well as capacity-building to implement acquis and
conventions in nature protection to support NATURA 2000 network and implementation of CITES convention; creation of the
monitoring, reporting and verifying system for the implementation of the EU Emission Trading Scheme; establishment of an
integrated environmental monitoring system for air and water quality; development of infrastructure for Regional Waste
Management Centres in Kalenic and Subotica and reconstruction of Electrostatic precipitators at TPP Nikola Tesla A3 and
TPP Morava. IPA 2013 will support further alignment with EU environment Aquis, with the specific focus on development of
institutional capacities and enforcement of national legislation and strategic planning; alignment with EU climate Aquis and
fulfilment of the UNFCCC requirements through introduction of a mechanism for monitoring and reporting GHG emissions
and for reporting other information relevant to climate change on regular basis; development and improvement of waste
management system; upgraded environmental infrastructure through investments into wastewater treatment facility. About
33 million euro is planned to be allocated for the environment and climate change sector during 2007 – 2013 from the MB
IPA funds. Activities financed under this instrument include support to regional initiatives such as DABLAS (Danube and
Black Sea) Task Force, which was set up with the aim to provide a platform for co-operation for the protection of the water
and water-related ecosystems in the Danube and the Black Sea and the SAVA River Basin Management Plan aiming to
improve integrated water management of the Sava river basin following the approach of the EU Water Framework Directive
and Floods Directive and establishing cooperation mechanisms between the countries of the Sava basin in the areas of
water protection, flood risk management and sustainable navigation. Support was also provided for establishment of
regional cooperation mechanism, the Regional Environmental Network for Accession (RENA) which facilitated the transfer
and exchange of experience on environmental matters and climate change in the pre-accession context in areas such as
strategic planning and investment, climate change, cross-border cooperation and multilateral environmental agreements and
will include the Environmental Compliance and Enforcement Network for Accession (ECENA). Such cooperation is further
extended through follow-up program Environment and Climate Regional Accession Network (ECRAN). The overall objective
of the ECRAN project is to build on the results of RENA by continuing to strengthen the regional cooperation between the
candidate countries and potential candidates in the fields of environment and climate change given their prospect of
accession to the European Union. Several important activities assisting countries to prepare for adaptation to climate
change effects and supported by the MB IPA include building resilience to disasters and development of prevention,
preparedness and response to floods systems in the Western Balkans and Turkey. They are targeted to reduce vulnerability
of IPA countries to natural disasters, increase their resilience to climate change, reduce negative impact that floods have in
the target region and its EU neighbours by facilitating the beneficiaries to better deal with floods' risk management and
creating capacities for effectively and efficiently deal with this kind of hazards at regional level.
The bilateral donor community has been prominent in resourcing projects in this sector. Some examples of activities are
presented below. The Swedish Government has aided chemicals risk management, implementation of the National
Sustainable Development Strategy, Strategy for Sustainable Development Natural Resources and Goods, preparation for
EU negotiation process in environment sector, strengthening of projects management capacity at central level, support to
Duboko regional Landfill and environmental waste and wastewater infrastructure. Spain funded preparation of the feasibility
study for the construction of the Kolubara District Regional Landfill and feasibility study for GHG emission reduction, as well
as development of capacities to use and promote the solar energy in Serbia. The UNDP has been active in strategies and
studies for biodiversity, preparation of national communication, Vlasina lake ecotourism promotion and environment
protection, strengthening capacities of protected areas managers and promoting renewable energy and sustainable
transport, assisted with recovery of Grand Backa Channel project, by financing communal and industrial wastewater
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collection for the municipalities of Vrbas and Kula. Soft loans have been provided by EBRD, KfW and the World Bank. The
German Government has been most active in the water sector, with €92 million of subsidised loan and grant finance for
water supply projects in 17 municipalities to date. GIZ supports waste and wastewater sector in 5 pilot municipalities.
UNECE will support Wood-based energy for sustainable rural development. Central-European Initiative supports BIOM
ADRIA project. Design and construct waste transfer station Koceljeva is financed by PSO project Holland.
According to the SIDA Report on Evaluation of effectiveness and efficiency of development assistance to the Republic of
Serbia per sector243, a high level of aid effectiveness in the Environment and Climate Change sector was reported in policy
development, capacity building and proportionately small supplies and works contracts (more specifically: IPA-financed TA
to prepare the EAS; transpositions of legislation; strengthening of environmental inspection, nuclear decommissioning and
establishing systems for air quality monitoring). Effectiveness of medium term (5 – 7 years) environmental infrastructure
projects varied to a great extent. Overall, effectiveness proposed to be considered as medium to high, to reflect the full
spectrum of sector interventions, which have ranged from the highly beneficial (meeting all objectives) to the partly
successful (meeting some) and incomplete.
In the case of the institution-building activities targeted at developing a sector policy framework the efficiency of resource
use was judged to be high: the immediate benefits (in terms of objectives met), and also longer-term benefits (assuming the
outcomes are operationalized) are proportionately great when compared with the inputs. Major infrastructure project
(including primarily, but not exclusively, water supply and/or wastewater networks, and/or waste management solution) were
considered to be less efficient, due to their higher costs in all project phases inefficiencies stem from the fact that often
individual loans, or even entire lending programmes (such as water management), are approved before projects are
selected, leading to problems in the absorption and disbursement of allocated funding because project documentation is
often seriously under-developed. Overall, efficiency in the sector proposed to be considered as medium.
Although the impact of specific development projects in this sector can be considered as significant (for example: access to
clean drinking water for households in medium-sized cities; reduced pollution from power plants as measured by a network
of air monitoring stations; innovative waste management solutions), these localized innovations are rarely promoted on a
systematic basis, county-wide, to other potential beneficiaries. Thus, the overall impact of aid in the Environment and
Climate Change sector proposed to be considered as being low.
In addition, there is an on-going evaluation lunched by EU Delegation in this sector. The report on Technical Assistance for
Evaluation of Competitiveness Sector Implemented and Financed by IPA Programmes and other Donors in the Republic of
Serbia is in pro
243
Evaluation of Effectiveness and Efficiency of Development Assistance to the Republic of Serbia per Sector (April 2013), SIDA
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B7 TRANSPORT SECTOR
Transport sector is including rail, road, inland waterways, civil aviation and intermodal transport modes. There are priorities
defined to improve functioning of the transport system as a generator for the economic and social development. Needs are
underlined from the national strategic and planning documents as well as from EU accession requirements.
Transport sector is contributing to the competitiveness of the economy and trade, better education possibilities, agriculture
production, placing of products on the market etc. The transport sector is based on the three main cornerstones: quality and
capacity of the infrastructure; quality, capacity and performance of the rolling stock and level of the services provided by the
institutions operating in the system.
In the previous years, significant efforts were invested in administrative capacity strengthening in accordance with the
adoption of the EU Acquis, introduction of contemporary working practices, preparation of the technical documentation and
improvement of the infrastructure. However, EC Serbia progress report 2012 confirms that further alignment with the EU
Acquis is still necessary, mainly in the fields of road safety and accident investigation procedures. Also, railway reform
process should be strengthened with a special attention to the fair market access, the separation of infrastructure manager
from railway operations, as well as the implementation of a properly defined regulatory body. In the field of safety, a safety
management system has to be implemented within the infrastructure manager and the railway undertakings operating on the
Serbian railway network.
Further reform steps could be summarised as follows:
 Restructuring of the public enterprises working in the transport sector, with the focus on railway transportation and
introduction of result oriented management;
 Introduction of the cost-effective working methods which should contribute to better quality of transport
infrastructure performance based on maintenance principles;
 Implementation of the measures which would improve intermodality features within Serbian transport system.
 Introduction of a purposeful infrastructure investment planning taking into account spatial planning features and
consequently effective modernization of transport infrastructure.
Restructuring of the public enterprises operating in the transport sector is mainly related to the enterprises operating within
the frame of railway transportation. Railway subsector is defined by Directives and Regulations, which are commonly
recognized as railway packages. At present, so called 3rd Railway package is valid and Serbian railway subsector should
stream towards transposition of its provisions in Serbian transport sector and the 4 th one will have to be implemented in the
coming years. Council Directive of 29 July 1991 on the development of the Community's railways (91/440/EEC), which was
amended three times meanwhile (2001/12, 13 and 14/EC, 2004/51, 2007/58 and 2012/34), represents the core of the
railway regulation. So far implemented activities related to introduction of EU standards resulted in transformation of the
Serbian Railways from the public enterprise to the joint stock company (JSC).
However, JSC Serbian Railways is still functioning as a historical railway company, meaning that Infrastructure Manager
functions are not separated from the Railway Undertaking functions, which is a precondition for the implementation of the
provisions of the EC Railway packages. The new Law on Railways has recently been adopted by the Parliament. The
Railway law should provide the overall legal basis necessary for continuation of the institutional reforms in the railway
transport subsector. Functional separation of the historical railway company in subsidiary companies is dependent on
adoption of the founding acts of new subsidiary companies.
Once founding acts are adopted, numerous activities related to setting up of subsidiary companies and its functions would
have to be done. Those activities are related to preparation of the systematization acts of the subsidiary companies,
separation of assets among the holding and subsidiary companies, definition of the work plans for the subsidiary companies,
management capacity strengthening following the new working modalities etc. Practically, transposition of the railway
packages will initiate fair allocation of the railway infrastructure capacities, definition of the levying of charges for the use of
railway infrastructure and safety certification, licensing of railway undertakings. In addition to this, preparation of technical
documentation and implementation of the railway infrastructure projects would be affected by the interoperability standards
related to the trans-European high-speed rail system and the trans-European conventional rail system.
Above mentioned principles, which are cornerstones of the European railway system are not yet implemented in Serbia.
Taking this into account, together with the fact that, in Serbia, speed of trains exceeds 100 km/h on only 3.2% of the lines,
while on approx. 50% of rail network, technical conditions of the lines allows maximum speed of up to 60 km/h, logical
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conclusion is that in the railway sub sector serious reform steps must be done and should go in line with the investments in
railway infrastructure. Investments in railway infrastructure should be driven by cost-effectiveness and based on the realistic
investment plan. General Transport Master Plan (GTMP) 2009 - 2027 estimates that investments in railway infrastructure
would cost nearly EUR 5 billion. Investment plan/Action Plan, based on a technical and economic evaluation of the “project
pipeline” over the period 2012-2021 with a more detailed assess of the “key priority projects” that can be activated during the
period 2012-2016 is under preparation and should be adopted in the second half of 2013. Railway modernisation in line with
the contemporary railway principles would require new skills and working profiles to be developed within the institutions
dealing with the railway transport issues. This process should be followed with the specifically tailored social program. JSC
Railways of Serbia still employs 18,280 people244.
For the purpose of completion and/or modernisation of the Road transport network, since 2007, the Republic of Serbia
borrowed EUR 1.3 billion, mainly for completion of the road Corridor X, considered to be the corridor which should boost
economic development. Due to ineffective investments planning, slow preparation of technical documentation and
unresolved land property issues, construction works are not progressing as it was planned. On some of the sections works
haven’t commenced yet. Also, construction of the Route 4 (so called Corridor XI) has started, while investments in the road
transport infrastructure in Belgrade, which should contribute to better interconnection with the transport corridors passing
close to Belgrade, are on-going.
Apart from the construction of the road network issues, existing road network should be permanently compliant with the
standards valid for the given category of the road. Quality of road network is related to the maintenance principles which are
applied. Having this in mind, reform agenda in the road sub sector should include introduction of more cost-effective working
methodologies, such is Performance-Based (Management and) Maintenance of Roads contracting (PBMR contracting). In
that respect, Word Bank supported pilot programme related to the reorganization of the road network maintenance practice
which resulted in savings at the level of approximately 40% in the area included in the pilot programme.
According to the financial report of the Public Enterprise (PE) Roads of Serbia for 2011, for the maintenance of the 17,000
km of the road network which is under the responsibility of the PE Roads of Serbia, approximately EUR 169 million were
invested. New concept to increase efficiency and effectiveness in maintenance of roads has been established. Application of
this concept should provide that physical condition of road network subject to the contract is adequate for the needs of road
users and in consistency with the invested funds at any moment along the contract duration. The required service quality
level is stipulated through values of specific measurable performance indicators. Introduction of the PBMR is very much
important knowing that the Serbian road network is at the level of medium developed European countries; more than half of
local roads are not appropriate for needs of modern traffic; 32% of highways and regional roads are over 20 years old and
only 14% were constructed less than 10 years ago. Quality of roads is reduced due to lack of investment and maintenance.
Serbia has favourable economic and geographic features for cargo Inland waterways transport. The total length of Serbian
inland waterways, at the average water level, is about 1,680 km which gives opportunity for transportation of goods of high
volume cost-effectively and in an ecologically sustainable manner. The most important ports on the Danube River are:
Belgrade, Pančevo, Smederevo and Prahovo. Only ports of Belgrade and Pančevo have capacity to perform container
transhipment but with many difficulties caused by inadequate equipment and no opportunities for spatial expansion. That
was the reason that there has not been any transhipment of containers in recent period. All the listed ports are of private
ownership. However, the EU Strategy for Danube Region, as a macro-regional strategy, considers development of transport
system as one of important elements for the economic prosperity for the region.
Advantages which the Danube River (Corridor VII) is offering in terms of economic and environmentally friendly
transportation and its closeness with the main road and rail Pan-European corridors and routes should initiate further
development of intermodal terminals (transhipment zones) along the Danube. Those terminals should provide transportation
reliability, speed, capability of “door to door” cargo transportation, safety, security, flexibility, availability and energy
efficiency. Inland waterway investments have to be positioned in a regional context and integrated with the strategies of
neighbouring countries
The navigation conditions on the Danube River in Serbia are influenced by the critical sections (bottlenecks) on the fairway,
unexploded ordnances (UXOs), sunken vessels dating from World War II and necessity for an overhaul of the navigation
locks Iron Gate I and Iron Gate II (Djerdap Dam). The maximum draft of the vessels plying the Danube is between 2.5 and
4.5 m; this requires a minimum water depth in the range of 3.2 to 6 m. According to the Danube Commission
recommendation, the minimum depth of the fairway needed for safe navigation is 2.5 m below the Low navigation level
(ENR - Etiage navigable et de régularisation)245. The majority of the bottlenecks occur on the stretch between km 1430 and
1250. On this stretch with a length of 180 km, 24 bottlenecks 246 have been identified representing the bottlenecks and
restrictions for an efficient and safe navigation of standard convoys, relates to sharp bends or narrow cross-sectional
244 Source: web site of JSC Railways of Serbia

245 Recommendations for defining the fairway dimensions, hydrotechnical and other structures on the Danube River, Danube Commission, Budapest, 1988,
2012
246 Feasibility Study for River Training and Dredging Works on Selected Locations along the Danube River, the Republic of Serbia, IPA 2010 funded project
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profiles. Navigation is specifically hindered on the Danube sections which are belonging to Serbia. In addition to the
improvement of navigation on Danube River, navigation conditions should be also improved on Sava River following the
Sava River Basin Master plan defined and consulted within the Sava Commission.
When it comes to Inland waterways, a specific attention should be put on environmental monitoring issues. Recognizing
potential environmental aspects in a number of new waterway projects along the Danube and the Sava river, the
International Commission for the Protection of the Danube River (ICPDR) has linked up with the Danube Navigation
Commission and the International Sava River Basin Commission in 2007 and agreed a “Joint Statement on Guiding
Principles on the Development of Inland Navigation and Environmental Protection in the Danube River Basin”. The final
document was adopted in December 2007/January 2008 by the ICPDR, the Danube Commission and by the International
Sava River Basin Commission. The “Joint Statement” is a guiding document for the maintenance of existing waterways and
the development of future waterway infrastructure. It is perceived as a milestone that leads to the integration of ecology into
waterway development.
The Directorate for Inland Waterways, Plovput, recently integrated within the Ministry in charge of transport, is responsible
for maintaining navigability but has a very limited budget of less than EUR 2 million per year. The main challenge facing the
sector is to increase investment to realise the potential of inland waterways and to ensure that Plovput has the resources
necessary to carry out its mandate.
Concerning the Civil Aviation, Serbia is on the crossroad of the main aviation routes. National air operator JAT is facing
financial problems and restructuring is necessary. Having in mind regional and worldwide context of air transportation,
quality, reliability, performance and connectivity of air services should be improved following the commonly recognized
standards. One of the European Common Aviation Area (ECAA) Agreement’s requirements, to which all of the ISIS
(Implementation of Single European Sky In South East Europe) Beneficiaries are signatories, is to start reorganisation of
the airspace, which will lead into creation/establishment of a Functional Airspace Blocks. Also, EU requirements must be
followed concerning the licensing of pilots and certifications of technicians.
Serbia has four airports for commercial purposes: Belgrade, Niš, Vršac, while Kraljevo airport is under reconstruction also to
be used for commercial purposes. Belgrade Airport “Nikola Tesla” and Niš Airport “Konstantin Veliki”, being a part of the
Core Regional Transport Network, are used for international flights. According to the Civil Aviation Directorate of Serbia
there are 22 more certified airports. Several military airports operated by the Military of Serbia also have potential for further
network development as civil or combination civil-military category airports. “Nikola Tesla” Airport in Belgrade is the largest
airport in the Republic of Serbia, with over 90% of passenger and freight traffic. The airport can accommodate 5.5 million
passengers per year but actual passenger traffic is well below. Improving airport infrastructure, meeting the standards of the
European Common Aviation Area Agreement (ECAA) and alignment with the Single European Sky legislation are the main
challenges facing the sector.
In general, there is a particular need for greater multi-modality and better interconnection with other river basins and
modernizing and extending infrastructure in transport modes. Implementation of competitive and environmentally-friendly
transport solutions will efficiently combine transport modes by road, rail and inland waterways. Serbia intends to strengthen
its capacities for intermodal transportation through construction of an intermodal terminal in the vicinity of Belgrade.
Strengthening of the Intermodal transportation capacities does not depend solely on the construction of the intermodal
centres but also on the effective combination of soft measures such as capacity building of the institutions responsible for
managing intermodality issues. Setting up the legal framework to support development of intermodal transport, that will
define incentives to road carriers for using the intermodal facilities, provision of trainings to intermodal centres operators and
better alignment of various transport modes, is also of great importance. At present, the tariff policy and the existing legal
framework do not stimulate the use of intermodal transport.
There are only three partly developed intermodal terminals in Serbia: the RIT (Railway Integral Transport, having capacity
of 10,000 TEU a year) nearby the central railway station in Belgrade; in the port of Belgrade (capacity of 12,000 TEU a
year), and in the port of Pančevo (capacity of 5,000 TEU a year). These employ mostly multifunctional equipment and
universal devices which enable trans-shipment of containers and some hucke-pack transport units. Complementarily to what
has been said, better interconnectivity between transport corridors and routes with the urban and suburban transportation
systems should be ensured in the future. Having in mind global trend of daily commuters to urban areas, as well as other
aspects of urban and suburban transport the mobility issues are requiring the adoption of holistic and systemic approach.
Finally, prioritisation and planning of transport sector development should be based on the main principles for integration of
SEE transport market into the European Union transport market. Those principles could be summarized through the
continuation of the adoption of the transport EU Acquis, the harmonization of technical standards of interoperability, safety,
and security with the respect of public procurement principles and environment issues. Also, implementation of transport
sector social policy principles should be précised and respected.
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Based on the main strategic documents for the sector which are presented in annex 1 and SWOT analysis, the following
priorities for the sector have been identified:
(i) Transport network of the Republic of Serbia is integrated into Tran-European transport network. In order to
achieve the goal, it is necessary to perform rehabilitation, reconstruction and construction of Pan-European
Corridors VII and X, on the system approach, develop and rationalize transport network, respecting sustainable
development of the Republic of Serbia.
(ii) Efficient usage of comparative advantages of each mode of transport. In order to achieve the goal it is
necessary to consider and reduce external expenses, introduce fair charge determining and charging for
infrastructure use for all modes of transport. Strengthening intermodal transport is necessary for orientation of
transport demands towards more socially acceptable modes of transport;
(iii) Upgrading of service quality of transport system. In order to achieve the goal, it is necessary to increase the
effectiveness of all transport modes and the transport system as a whole by better organization of transport
operations based on economical, safe and environment protecting aspects and by application of goal oriented
planning and managing of transport flows. It is necessary to develop a unique transport system harmonized with the
users’ requirements and efficient and effective fulfilment of the demand for individual mobility;
(iv) Increase of traffic safety and security of transport system. In order to achieve the goal, it is necessary to
decrease the number of fatalities on roads and number of accidents in inland waterway, railway and air transport in
the Republic of Serbia. Transport of dangerous goods is in accordance with the EU directives and ADR 247, RID248
and ADN249 regulations;
(v) Strengthening of the transport market and its gradual deregulation. In order to achieve the goal, it is
necessary to: provide conditions for better competitiveness among transport modes and within the modes on the
transport market; establish regulatory, operational, and managing functions in the sphere of transport; perform
gradual and justified deregulation and liberalization of the transport market and compensation of the measures;
strengthen local operators’ competitiveness on domestic and international market; perform cooperation among
state bodies and companies in the sphere of transport to develop transport market;
(vi) Decrease of negative impact of transport on the environment, in accordance with principles of sustainable
development. In order to achieve the goal, it is necessary to develop the transport system of the Republic of Serbia
in line with principles of sustainable development, environment protection (decrease of air pollution, noise and
causes of global warming) and social responsibility;
Establishing stable financing of the transport sector development. In order to achieve the goal, it is necessary to make
conditions for sustainable development of the transport system by stable financing resources from the budget and other
financing resources and ensure efficient transport system management and efficiency and effectiveness of urban and
suburban traffic. The challenge in achieving these national priorities is that they will require the integration of a wide range of
actions across the whole sector bearing in mind the necessary complementarity between the transport modes.
NAD Priority 1: Increase the effectiveness of the transport system by strengthening the policy and institutional framework,
management capacities and implementation mechanisms is considered as horizontal and contributes to all the Sector
priorities listed above.
NAD Priority 2: Improve the capacity and quality of transport infrastructure and services within the Pan-European Transport
Corridors and the South East Europe Core Regional Transport Network contributes to the priorities (i), (ii), (iii), and (iv)
NAD Priority 3: Promote a sustainable urban and suburban transport contributes to the priorities (I), (ii), (iii) and (vi).
Development of the Serbian transport system is not considered only from the national perspective, but rather from the
regional and wider. Institutions dealing with the transport sector lead by the Ministry in charge of transport are actively
involved in the preparation of the Multi-annual Plan 2012-2016 on the SEE Core Regional Transport Network and the
related Memorandum of Understanding on the SEE Core Regional Transport Network. In 2012 the Republic of Serbia
contributed to the preparation of the SEETO "Five Years Development Plan 2013". In addition, revision of the Regional
247 ADR is short for the French title of the European regulations regarding the international transport for dangerous goods on the road: “Accord européen
relative au transport international des marchandises Dangereuses par Route”.
248 Regulations concerning the International Carriage of Dangerous Goods by Rail
249 Accord européen relative au transport international des marchandises Dangereuses par voies de Navigation intérieures)
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Balkans Infrastructure Study (REBIS) is expected to start mid-2013, which will be opportunity for the responsible
institutions from the Republic of Serbia to fit their policy principles in the regional context.
The EU strategy for Danube region, adopted in 2011, aims at boosting the development of the Danube Region. This
Strategy articulates four main directions of joint actions, out of which the first explicitly refers to the transport sector:
“Connecting the Danube region by improving the mobility and interoperability on internal navigable waterways, road, rail and
air transport”.
EU documents and International Agreements related to the sector
The European Partnership with Serbia (2008/213/EC) (under: Sector policies – Transport) sets out following priorities:
further implementation of the Memorandum of Understanding on the Development of the South East Europe Core Regional
Transport Network and strengthening cooperation with SEETO, taking measures to improve road safety conditions,
restructuring the railway sector and developing inland waterway transport, including the setting-up of river information
services.
The Stabilization and Association Agreement (Title VIII, Cooperation policies, Article 108 -Transport) states that the
objective of the cooperation should be to achieve operating standards comparable to those in the Community as well as to
develop a transport system in Serbia compatible and aligned with the Community system and improving protection of the
environment in transport. Cooperation may notably aim at restructuring and modernizing the Serbian transport system,
improving the free movement of passengers and goods, enhancing the access to the transport market and facilities,
including ports and airports. Furthermore cooperation may support the development of multi-modal infrastructures in
connection with the main Trans-European networks.
Rail transport (Corridor X)
Serbia is member of the Intergovernmental Organisation for International Carriage by Rail (OTIF) and signed the related
convention (COTIF).
Intermodal transport (Corridor X)
The field of intermodal transport is regulated by laws confirming bilateral agreements between the Republic of Serbia and
Hungary and the Republic of Bulgaria and Croatia, concerning international combined freight transport and logistical centres.
European Agreement on Important International Combined Transport Lines and Related Installations (AGTC) and Protocol
on Combined Transport on Inland Waterways accompanying this European agreement are also applied.
Waterways transport (Corridor VII)
Serbia is member of the European Agreement Concerning the International Carriage of Dangerous Goods by Inland
Waterway (ADN).
Road transport (Corridor X)
The Agreement on international road transport of goods and passengers with the Republic of Slovakia is signed. After this
agreement enters into force, only the transport to/from third countries will be under permits regime.
The Agreement on international road transport of goods and passengers with Hungary is ready to be signed.
The Agreement on international road transport of goods and passengers between Serbia and Ukraine is ratified, as well as
between Serbia and Latvia.
The Agreements on international road transport of goods and passenger between Serbia and Italy and between Serbia and
Germany are initiated.
Serbia is member of the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR).
Serbia is member of the European Agreement Concerning the Work of Crews of Vehicles Engaged in International Road
Transport (AETR).
B7.3. EU Agenda
Chapter 14. Transport policy

According to the white paper “Roadmap to a Single European Transport Area – Towards a competitive and resource
efficient transport system”, the main directions of the EU policies in transport sector are to create conditions for free
movement of people and goods within Serbia and abroad using road, rail, inland waterways, air modes and intermodal
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transportation. Scope of the transport sector includes capacity and quality of infrastructure, quality of transport services,
including the interoperability of different modes, networks and systems.
- Railways restructuring and liberalisation: EC directives 91/440, modified by 2001/12,13 and 14, 2004/51, 2007/58
and 2012/34 EU
These directives aim to implement the main structural and organisational changes in the railway sector, i.e. to organise a
full separation between railway operations and infrastructure management in order to allow the coming of new operators
on the railway network. These directives aim also to create fair competition between railway undertakings though the full
opening of the railway market (including publication of network statement, rules for allocation capacity and methodology
for infrastructure charging). Even these directives are transposed into Serbian transport legislation, the related law is not
yet adopted by the Government and the requested changes are not concretely implemented in the railway sector. It is
one of the priorities of the period 2014/2020.
- Railways safety and interoperability: Directives 2004/49, 2007/58, 2007/59, 2008/57, 2008/110 and Commission
regulation 36/2010
These directives aim to improve the level of safety of the railway sector and to allow the interoperability between
different systems and standards, keeping the same level of safety. The main consequence is the necessary creation of a
National Safety Authority (railway directorate in Serbia), the publication of the technical specifications of interoperability
and the implementation of a Safety Management System within the infrastructure manager and the railway undertakings
operating on the Serbian network. This last requirement is not yet fulfilled in Serbia. It is one of the priorities of the period
2014/2020.
- Inland Waterways and Maritime: Regulations 789/2004, 2919/85, Directives 2006/87 ,87/540/EC, 2009/46/EC, 2005/44
and 2009/56/EC, 91/672 and 96/50, STCW Convention, Directive 2012/35 amending Directive 2008/106
In the last two years, 3 laws (Law on Maritime Navigation, Law on Amendments on the Law on Navigation and Ports on
Inland Waters and Law on Vessels Nationality and Registration) including the EU requirements and fixing the conditions
of navigation on the Serbian waterways and the conditions of entrance in the ports were approved by the Government
and adopted by the Parliament. For technical purposes, some secondary legislation has still to be drafted.
- Civil Aviation : Regulations 549, 550, 551/2004, 219/2007, 300/2008, 1070/2009, 185 and 691/2010
The Law on Obligations and the Basics of Property Relations in Air Transport, aiming to align national provisions with
the EU legislation on passengers’ rights, was adopted in November 2011.The Law on amendments of the air transport
law takes into account comments from the ECAA and from the EC Progress Report. A specific attention has to be paid
at the legal framework for licensing pilots and certifying technicians.
Further national provisions intending the alignment with the Single European Sky legislation has been achieved, in
particular concerning the provision of air navigation services (ANS), the methodology for determining and calculating the
ANS charges, the regulation of air space management, and the interoperability of the ATM systems.
- Road transport : 2003/59/EC, 96/53/EC, 1999/62/EC, amended by 2006/38/EC, 2008/96/EC, 2004/54/EC, 2004/52/EC
and decision 2009/750/EC, 2004/18/EC, 2002/15/EC, 2006/22 EC, Regulation 561/2006
Improvement of the road safety system, in cooperation with the Road Traffic Safety Agency and in accordance with the
Directive on the initial qualification and periodic training of professional drivers (2003/59/EC). The law on the working
time of drivers and tachographs will be developed and adopted.
- Intermodal transport : Directive 92/106/EC, 2006/103/EC
The necessary legal framework for the development of intermodal in Serbia has still to be improved and submitted to the
Government.
- Transportation of dangerous goods : Directive 96/35, 2008/68/EC, 95/50/EC, 2010/61/EU
Even the transportation of dangerous goods authority was recently established in January 2013, an important volume of
secondary legislation has still to be drafted for putting the Serbian organization in accordance with the EU requirements.
The development of the transport system in Serbia is very much dependent on the EU accession path of the Republic of
Serbia. Main document which is steering the process of approximation of the legal provisions with the EU Acquis is the
National Plan for the Adoption of the Acquis (NPAA) which was adopted in March 2013.
The NPAA 2013 – 2016 specifies obligations concerning the incorporation of the EU transport Acquis provisions into the
domestic legal system and the tasks to fulfil criteria for accession. Mid-term priorities are defined for the areas of transport
policy and transport networks; legal and institutional frameworks and include adoption and implementation of legislation and
capacity building to meet the future requirements. The main provisions of the EU Regulations and Directives (as listed in the
section B.3) have been transposed into Serbian transport legislation, by means of 10 main laws and some 100 bylaws.
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However, an important volume of secondary legislation has still remains to be transposed and adopted in the coming years
in order to fully harmonise with the EU Acquis.
Chapter 21: Trans-European networks
The direction of the Europe 2020 strategy, adopted by the EU’s European Council of Ministers, indicates that transport,
environment and competitiveness will remain pivotal to ensuring Europe’s future prosperity and hence will play a guiding role
in the governance of future EU funds. Serbia needs to be fully up-to-date in its strategic planning and put in place an active
pipeline of potential projects for funding, which correspond with this agenda.
- Decision No 884/2004/EC of the European Parliament and of the Council of 29 April 2004 amending Decision No
1692/96/EC on Community guidelines for the development of the trans-European transport network;
- Decision No 1692/96/EC of the European Parliament and of the Council of 23 July 1996 on Community guidelines for
the development of the trans-European transport network as amended in 2001 and 2004.
In the frame of the Trans-European transport networks (TEN-T), the SEETO transport network has been integrated into
Serbia’s Strategy for the development of railway, road, waterway, air and intermodal transport from 2008 to 2015. Several
major projects for corridor X (road and rail) are programmed, planned and/or prepared. Serbia is continuing to develop its
transport networks and to participate actively in the work of the South East Europe Transport Observatory. However, major
challenges remain in terms of financing the new interconnections between transport networks.
The SWOT analysis of the transport sector has been undertaken additional to the situation analysis presented in previous
 Adoption and on-going execution of the Development  Low level of intermodal transport due to a lack of
strategy for railway, road, waterway, air and legal basis
intermodal transport in RS 2008-2015 and related  Restructuring of the railway company in early stage
Action Plans  Some previous infrastructure projects failed or were
 The package of laws is in place delayed due to a lack of documentation, land
 The transport Acquis is largely transposed expropriation issues
 Well recognized contribution of the transport sector to  Many institutions of different level involved in the
the economic development of Serbia projects / lack of coordination
 Existence of a General Master Plan for Transport  Some standards not easily reachable in Serbia
(GMPT) (2009-2027) that is developed as a  National budgets not sufficient for Co-financing
comprehensive plan of future investments in transport  Low levels of maintenance and infrastructure
infrastructure development for decades

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 Existence of an Investment Plan in Railway  Lack of project preparation facility
Infrastructure (2012-2021)  Outdated technology, infrastructure quality below EU
 Existence of a draft National Road Safety Strategy standards
and Action Plan (2013-2020)  Transport network limitations (speed limits, single rail
 Two main TEN-T corridors crossing Serbia (X and lines, non-electrified rail lines, gauge UIC-C standard,
VII) critical sections and UXOs in the Danube and Sava,
 Skilled labour force poor infrastructure of ports, etc.)
 Strong political support to transport infrastructure,  Lack of forecasts for consideration of transport’s
priority taken to activities within the Pan-European future development which takes into account the
Corridors X and VII and the Route 4 of the Core recent global financial and economic crisis
Regional Transport Network
 A strategic location of Serbia within the South East  Losing qualified staff because of low motivation and
Europe core regional transport network low wages
 Increase of the economic activity associated with the  Change of government priorities
Corridors X and VII  Global economic crisis
 Corridor X is a high Government priority  Losing traffic volume by slow harmonization of
 Acceleration of the EU accession process after legislation and implementation of European standards
granting the status of candidate country leading to use of alternative routes and modes
 New challenges resulting from participation in  Economic recession and budgetary cutbacks
European and regional cooperation  Difficulty for preparing necessary documentation in
 Sustainable transport promoted by the EU due time
 Demand from the European Union to complete the  Losing funds because slow or delayed project
TENT and the Core Regional Transport Network and documentation
to improve the European mobility and interoperability;  Unclear share of responsibilities between the
 Increasing demand for fast transportation (including stakeholders
urban and suburban transport) within the country in  Lack of interoperability and coordination between
relation with the growth of the economy transport modes including urban transport
 Transport projects reducing pollution, consumption,  Potential loss of habitat connectivity and potential
accidents conflict with the nature conservation objectives.
 Neighbouring countries are EU member states
 IFIs’ interest in financing/co-financing of infrastructure
Bearing in mind that the transport policy of Serbia is driven with the aim of economic and social development, following the
EU Transport policy (Chapter 14 and 21), the overall objective of transport sector for the period 2014-2020 is as follows:
Efficient, quality, reliable and sustainable services contributing to a comprehensive and safe transport system of
the Republic of Serbia as an integral part of the Trans-European Transport Network. Economic development of Serbia
is dependent on strong transport connections which are recognised as a generator for overall regional growth. Serbia aims
to effectively contribute to transportation over a pan European corridors and routes, carrying freight and passenger, with
high efficiency and low emissions, making extensive use of existing infrastructure, completing missing links, alleviating
bottlenecks and using more efficient services in multimodal transportation. Economy boost depends on fast, safe, reliable
and environmentally and biodiversity friendly transportation which will ensure smooth flow of freight and mobility of people.
Also transport services should be provided in line with the EU standards and best practice principles.
To reflect the above and guide assistance programming the priorities are formulated as follows:
Priority 1: Increasing the effectiveness of the transport system by strengthening the policy and institutional
framework, management capacities and implementation mechanisms
The implementation of the transport policy and the quality and efficiency of services provided is actively contributing to the
competitiveness of the economy, job creation and lessening of regional disparities. This entails effective strategic/policy and
operational planning, so as to assess priorities for the short, mid and long-term horizon, always considering the regional
impact of the given intervention and the effects which given priorities have in the transport modes concerned. Transport
system should be strengthened by taking into account market opening features, interoperability and safety issues, driven
with the vision of economic development of the country. Institutions responsible for transport planning should strengthen
their capabilities for optimal combining of various modes of transport within the transport chain, including setting up the legal
framework for supporting the development of intermodal transport by defining incentives to road carriers for using the
intermodal facilities.
Priority 2: Improving the capacity and quality of transport infrastructure and services within the Pan-European
Transport Corridors and the South East Europe Core Regional Transport Network
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The improvement of the transport infrastructure and the organization of a safe and sustainable transport system will
enhance the competitiveness of the whole sector and enable a better territorial integration within the country and beyond its
borders. Serbian transport, represented by all transport modes, is still not advanced satisfactorily so as to meet EU
standards both in terms of the quality of infrastructure, but also the quality of services. Thus, the priority for the oncoming
period remains the construction of missing network links and modernization/reconstruction of the transport infrastructure and
rolling stock and ITS (intelligent transport system), including preparation of the necessary technical and planning
documentation needed for the execution of the works. Transport infrastructure development and transport services should
be result-oriented towards economic prosperity of the country while maintaining its natural capital.
Priority 3: Promoting the sustainable urban and suburban transport
The link between urban and suburban transport and the trans-European transport network is a major topic given that
one/two of the international corridors pass through major Serbian cities. Since urban mobility and long-distance transport
obviously are a huge challenge, urban and suburban areas are expected to provide efficient interconnection points for the
trans-European transport network and offer efficient ‘last mile’ transport for both freight and passengers. Moreover, cities
suffer most from congestion, poor air quality and noise exposure. Strategic integrated transport planning in form of
sustainable urban mobility plans for Serbia’s largest cities and the implementation of the ensuing urban transport policy
could reduce traffic congestions, positively address environmental and energy consumption issues and improve safety and
security.
Priority 1. Increasing the effectiveness of the transport system by strengthening the policy and institutional
framework, management capacities and implementation mechanisms
Measure 1.1: Strengthening capacity of the administration for strategic/policy planning and transport management
The measure will contribute to the strengthening of the administrative capacity of the Ministry in charge of transport and the
related institutions, in order to continue the harmonization of the Serbian transport legislation with the EU Acquis. Once the
primary legislation is already well adjusted with the Acquis, the assistance will focus on the secondary legislation. The
effectiveness of this action will be measured trough the improvement of the technical and administrative capacities of
ministry and bodies/institutions recently established (or to be established), as requested by the EU legislation. Sustainable
mechanisms for licensing of pilots and certifications of technicians, in accordance with the EU requirements will be
established. In the frame of the foreseen market liberalization, assistance will be given to the Railway Directorate acting as
regulator of the railway market. Intermodal transport will be developed and promoted through the implementation of an
incentive legal framework and the creation of the basic principles aiming to increase the modal split of the transport modes
in favour of the less polluting modes (rail, waterways).
Measure 1.2: Setting up organizational and structural changes of the public enterprises operating in the transport
sector aiming at commercialization of their activities in accordance with the EU requirements
The measure will support reorganization of the Public Enterprises acting in the field of transport in accordance with the EU
legislation and following the provisions of the EU directives. These Public Enterprises will have to respect the liberalization
process and to set up a management system aimed at the commercialization of their activities in accordance with the EU
requirements. A specific assistance will be provided to the railway sub-sector for enhancing the railway reform process. A
specific attention has to be given to the mandatory separation of the infrastructure management from the operations, as
requested by the EC directives 91/440, modified by 2001/12, 2004/51, 2007/58 and 2012/34 EU, including also issue of
Public Services Contracts related to Passenger transport as requested by the EC Regulation 1370/2007. The key element is
the strengthening of management capacities in terms of introduction of transport market liberalization elements (publication
of the Network Statement including rules for allocation of capacity and methodology for infrastructure charging) which should
lead towards effective railway transport system functioning as an open market and financially self-sustainable institutions
dealing with the transport sector. Effective transport system calls for introduction of contemporary management principles
(i.e. performance based maintenance, investment planning on the basis of the actual needs…).
Priority 2. Improving the capacity and quality of transport infrastructure and services within the Pan-European
Transport Corridors and the South East Europe Core Regional Transport Network
Measure 2.1: Modernizing the railway infrastructure
This measure will support, mainly in relation to Pan European corridor X, the further development of the railway
infrastructure, capacity, safety and quality of services through reconstruction/upgrading/ modernization of specific sections
(including bottle necks) with the focus on the railway lines which are contributing to the economy boosting and job creation,
as well as a better connection within the main urban centres and neighbouring countries. Activities will include project
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preparation for reconstruction and modernisation of railway infrastructure and purchase of equipment for railway lines. This
will be undertaken along with improvement of path elements for running of double track traffic following the ERTMS level 1
standards and rulebooks on technical and other conditions for designing and construction of railway lines and facilities,
devices and structures on main railway lines. When necessary, the measure will support the related works. All steps will
follow procedure and criteria for identification and selection of investment projects set by NIPAC TS.
Measure 2.2: Improving the road transportation taking into account social, capacity and safety features
This measure will support continuation of the construction of the highway E763, Belgrade –Vrbnica (South Adriatic) which is
Route 4 (SEETO) known in Serbia as a working title „Corridor XI“. This respective section of the road network is recognized
as one of the most challenging when it comes to safety aspect of transportation, but as well as one of the routes that can
create conditions for economic development. Furthermore, continued construction activities on the Belgrade bypass should
be supported through this measure. Namely, completion of the bypass would create possibility for city development and
creation of news zones with the business development potential. All steps will follow procedure and criteria for identification
and selection of investment projects set by NIPAC TS.
Measure 2.3: Strengthening capacities for an efficient intermodal transport aiming to increase the modal split of the
transport modes in favour of the less polluting modes (rail, waterways)
This measure will support setting up infrastructure necessary for accelerating the development and better facilitation of
intermodal transportation. A particular focus will be given to the construction of the intermodal terminal in Belgrade. As a
reaction on the growing demand concerning the effective combining of various transport modes using the IPA 2008 program
documentation for construction of the Intermodal terminal in the vicinity of Belgrade has been prepared. Intermodal terminal
in the vicinity of Belgrade should have capacity of 80,000 TEU (Twenty-Foot Equivalent Units /intermodal shipping
container). Also, further development of intermodal transportation would be examined with the focus on ensuring effective
supply chain.
Measure 2.4: Improving navigation conditions within inland waterways

The measure will support the implementation of hydro technical works and dredging of the river beds to eliminate critical
sectors of the fairway, as well as other bottlenecks dangerous for navigation. Specific focus remains on the Danube, the
Sava and the Tisa rivers following the integrated approach. Activities will be focused in first instance on finalization of project
documentation for the remaining sectors critical for navigation, having in mind that through IPA 2010 funded projects
documentation will be prepared for up to 6 critical sections, while 24 critical sections are identified. Implementation of hydro-
technical works on the Danube and Sava will follow, where necessary. These are special engineering and construction
activities, aiming to absorb river dynamics and maintain navigable conditions on rivers, and include construction of
revetments, groins, training walls and dredging of river drifts. In relation to the Tisa, measure will include only project
preparation actions. Deployment of remote AtoNs, mainly on the Corridor VII, is integral part of the measure. It will contribute
to the implementation of the objectives of the EU Strategy for the Danube Region, as described below. All steps will follow
procedure and criteria for identification and selection of investment projects set by NIPAC TS.
Priority 3. Promoting the sustainable urban and suburban transport
Measure 3.1: Improving efficiency of the urban and suburban transport and its connectivity with national and
international transport corridors following integrated approach in urban and suburban transport planning.
This measure will support urban and suburban transport development through improvement of connectivity between various
transport modes, urban and suburban system following interoperability standards, alignment of timetables and tariff systems,
improving its connectivity with the rail and road transport Corridors and Routes (Corridor X and Route 4). Specifically, this
measure should contribute to gradual integration of transport, urban and economic planning. Through this measure
Sustainable Urban Transport Plans shall be prepared for the biggest agglomerations in Serbia, in particular those along the
pan-European corridors crossing the Country, X and VII. The SUTPs should ensure a more long-term strategic approach
covering both urban passenger and urban freight transport and where the integration of land use and transport planning is
regarded as a critical factor.
Measure 3.2: Improving implementation and development of adequate urban and suburban mobility measures in
order to decrease congestion and to improve safety
This measure will enhance the use of intelligent transport systems (ITS) in order to provide better and more comprehensive
information to all users, make the use of transport networks more coordinated/efficient, safe and thus environmentally
friendlier. This measure will also allow a gradual introduction of urban and suburban traffic management and control systems
through the optimum utilization of data related to urban traffic (congestion, peak hours, works,) in order to improve the
fluidity and the safety, to avoid traffic jams and to reduce consumption and pollution.
Regional, Cross border and Transnational Themes in Transport sector
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To implement the EU transport policy concerning the Western Balkans region, it is to be expected that the Transport
Community treaty will be signed. It is expected that the Transport Community would provide operators and investors in the
transport sector with legal certainty, thereby stimulating and speeding up the necessary investments and economic
development.
Assistance through the Multi-Beneficiary IPA in the oncoming period, should support the intended proactive/leading role of
Serbia in this respect, and the concerted project preparation (pipelines of projects) to implement the SEETO five years
multi annual plan 2013 and the revision of the REBIS study. Technical projects preparation and implementation of
infrastructure development projects of regional interest will require substantial additional technical and financial assistance
from international partners, IFIs and bilateral donors (WBIF – joint grant +loans).
Having in mind regional context and necessity for good coordination, JASPERS (Joint Assistance to Support Projects in
European Regions) should support and advice on project preparation and financial engineering issues.
IPA CBC in pursuing the EC recommendations for the Western Balkan countries in the transport sector, should specifically
refer to improving border management and increasing the capacity of border crossings in order to speed up and improve the
quality of transport at regional level and the development of the road infrastructure which would ensure better social living
conditions through better connectivity with the education centres and economy centres and increase in cargo transported on
inland waterways (ERDF thematic objective 6 – Promoting sustainable transport and removing bottlenecks in key network
infrastructures).
In order to contribute to the implementation of the objectives of the EU Strategy for Danube Region, namely those relating
to the Pillar I “Connecting the Danube Region” and more specifically the Priority area (1) To improve mobility and
multimodality (inland waterways, road, rail and air links), TA for technical project preparation and assistance for works and
supply is needed for projects aimed at promoting multi-modality (linking ports with rail and road transport), improving
navigation conditions (bottlenecks, dredging), logistics management and better equipment (vessels, navigation aids) as well
as HR development for inland navigation.
The transport sector of the Republic of Serbia is managed by the following institutions: Ministry in charge of transport
(including the Authority for Determination of Seaworthiness, Directorate for Inland Waterways and the Authority for
Transportation of Dangerous Goods), Directorates (Directorate for Railways, Directorate of Civil Aviation), Public Agencies
(Road Traffic Safety Agency, Port Governance Agency) and Transport Public Enterprises (Public Enterprise ”Roads of
Serbia”, JSC Serbian Railways, the Corridors of Serbia, JAT Airways and the Belgrade Nikola Tesla Airport). The lead
institution for the sector is the Ministry in charge of transport.
programming, implementation and monitoring of the Transport sector measures/operations which will be supported by EU
funds and other international development assistance. Responsibility for formal submission and later implementation of
measures/operations depends of their content and responsibility of institutions involved in the Transport sector.
Directorates, Public Agencies and Transport Public Enterprises, as well as the AP Vojvodina and local self-government
authorities are supporting the processes of policy making, designing strategic and legislative framework as well as they
participate in their implementation and monitoring. They are also, based on respective legislation, responsible for
maintenance and supervision of transport infrastructure and management of operations and actions within the transport
sector as a whole, and in particular relevant sub sectors such as roads, railways (including inter-modality), inland waterway
and air transport.
mechanism has been introduced, that is to say, the Sector Working Group (SWG) for Transport252 has been established.
The SWG for Transport is responsible to coordinate activities related to planning, programming and monitoring of EU funds
and international assistance, to propose relevant measures and activities and to support the introduction of Sector Approach
in Transport sector. The functioning, management, organisation and composition of SWG are more precisely defined by the
<Rules of Procedure for Sector Working Groups for the Programming and Monitoring of the EU funds and development
assistance>. The institutions participating in the SWG are Ministry in charge of transport, Ministry in charge of construction
and urban planning; Ministry in charge of finance and Office responsible for European integration affairs (SEIO). Members of
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the SWG are officially appointed representatives of the above mentioned line ministries, at the level of State Secretary or
force made up of representatives from the Sector Lead Institution, Lead donor and SEIO. SWG is also acting as Sectorial

173
PRIORITY 1: Increasing the effectiveness of the transport system by strengthening the policy and institutional framework, management capacities and implementation mechanisms
Target
Baseline Means of
Impact Indicator Unit Institution in charge for reporting
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
1.1 MOT and transport institutions in charge of transport
Yes/No No Yes NPAA Ministry in charge of transport
organized in accordance with the EU Acquis
Statistical
Millions of 6.592
1.2 Number of passengers – kilometers (PKM) 6.600 6.700 6.800 Yearbook of Ministry in charge of transport
PKM (2011)
Serbia
Statistical
Millions of 6.936
1.3 Volume of tons- kilometers (TKM) 7.000 7.500 8.000 Yearbook of Ministry in charge of transport
TKM (2011)
Serbia
MEASURE 1.1: Strengthening capacity of the administration for strategic/policy planning and transport management
Baseline Target Means of
Outcome Indicator Unit Institution in charge for reporting
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
1.1.1 New EU legal acts transposed in Serbian legislation Number 0 5 10 15 SEIO
MEASURE 1.2: Setting up organizational and structural changes of the public enterprises operating in the transport sector aiming at commercialization of their activities in accordance with the EU requirements
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
Official
1.2.1 Network statement published Yes/No No No Yes Ministry in charge of transport
Gazette
1.2.2 Number of licenses delivered by the Railway Official
Number 5 6 6 7 7 8 RD
Directorate to Railway undertakers Gazette
Official
1.2.3 Performance based contracts related to road network
Number 0 1 2 3 Gazette Ministry in charge of transport
maintenance concluded
PE/RS
PRIORITY 2: Improving the capacity and quality of transport infrastructure and services within the Pan-European Transport Corridors and the South East Europe Core Regional Transport Network
Impact Indicator Unit
Volume/ Statistical
2.1 Geo economical integration of Serbian transport 24.706
Thousand 25.000 26.000 27.000 Yearbook of Ministry in charge of transport
network into TENT (2011)
Tons Serbia
MEASURE 2.1: Modernizing the railway infrastructure
Outcome Indicator Unit
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification reporting e
Annual
2.1.1 Length of reconstructed and modernised railway
Report
lines compliant with EU interoperability and safety Km 0 50 80 110 Ministry in charge of transport
Serbian
standards
Railways
2.1.2 Average maximum speed for passenger train on the Annual
Km-h 80 100 120 120 Ministry in charge of transport
Corridor X Report
174
Serbian
Railways
Annual
Minutes/train Report
2.1.3 Passenger trains compliance with the time table 15 15 12 12 12 10 Ministry in charge of transport
delayed Serbian
Railways
Annual
Report
2.1.4 Black spots eliminated Number 0 1 2 3 Ministry in charge of transport
Serbian
Railways
MEASURE 2.2: Improving the road transportation taking into account social features, capacity and safety features
Annual
report of PE
2.2.1 Black spots eliminated Number 0 Ministry in charge of transport
Roads of
Serbia
Annual
report of PE
2.2.2 Length of newly constructed roads Km 0 Ministry in charge of transport
Roads of
Serbia
Annual
Number of
2.2.3 Technical documentations for projects prepared and report of PE
completed 0 Ministry in charge of transport
approved Roads of
dossiers
Serbia
Annual
report of PE
2.2.4 Length of roads under ITS control km 0 Ministry in charge of transport
Roads of
Serbia
MEASURE 2.3: Strengthening capacities for an efficient intermodal transport aiming at increasing the modal split of the transport modes in favour of the less polluting modes (rail, waterways)
Statistical
2.3.1 Volume of goods transported by intermodal transport TEU 50000 100000 110000 120000 Ministry in charge of transport
Yearbook
MEASURE 2.4: Improving navigation conditions within inland waterways
Statistical
2.4.1 Critical sections on Danube eliminated number 0 2 4 6 Ministry in charge of transport
Yearbook
Statistical
2.4.2 AToNs installed number 0 80 220 280 Ministry in charge of transport
Yearbook
PRIORITY 3: Promoting the sustainable urban and suburban transport

Impact Indicator Unit
3.1 Modal split between Public Transport and private Statistical
Percentage Ministry in charge of transport
vehicles Yearbook
175
MEASURE 3.1: Improving efficiency of the urban and suburban transport and its connectivity with national and international transport corridors following integrated approach in urban and suburban transport planning.
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
3.1.1 Synchronization of time table of various
number 0 1 2 3 Ministry in charge of transport
transport modes
3.1.2 Harmonization of Tariffs policy of various
number 0 1 2 3 Ministry in charge of transport
transport modes
MEASURE 3.2: Improving implementation and development of adequate urban and suburban mobility measures in order to decrease congestion and to improve safety
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 Verification
3.2.1 ITS system installed in city municipalities number of
0 1 Ministry in charge of transport
(largest cities - Belgrade, Nis, Novi Sad) municipalities
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According to ISDACON database the total disbursement (CARDS, IPA, bilateral donors and soft loans) in transport and
storage sector reached in the period of 2007-2012 an amount of € 1179 million. Transport funding is driven by infrastructure
investment, with roads rehabilitation accounting for over €0.5 billion and railways for €143 million, reflecting the status of
road transport as the dominant mode and its huge capital investment needs, and the location of Serbia on the European
transport network translating into strong international pressure to complete Corridor X.
Total disbursement within IPA component I amounted to 104.8 million EUR in the period 2007-2013. The EU has increased
support for capacity building activities including harmonization process through projects such as Implementation of the
European Common Aviation Area Agreement in air transport and twinning with regard to the Acquis communautaire.
Substantial funds were allocated to improvement of the navigation conditions on the Danube, to the railway track condition
analysis, the development of technical documentation for intermodal terminal establishment, preparation of documentation
for railway infrastructure modernization, as well as support to project management and supervision of construction works on
the road corridors, including the construction of Žeželj bridge on the Danube River in Novi Sad, co-financed by the national
funds. Assistance is provided to Serbian Railways JSC in restructuring of selected fields (IPA 2008) as well as well as to the
Railway Directorate (EBRD, 2011) and the PIU within JSC Railways of Serbia (EBRD/WBIF, 2011). The IPA Multi-
beneficiary programmes 2007-2013 provided support for the transport sector mainly through the Infrastructure Project
Facility (IPF). IPF support was concentrated on the preparation of the documentation for the investment projects in railway
sub sector. Also, through Western Balkan Investment Framework (WBIF) EIB is providing support to the Ministry in charge
of transport and Serbian Railways JSC aiming at definition of the Investment plan in railway infrastructure and revision of the
railway component of the Development strategy for railway, road, waterway, air and intermodal transport in RS 2008-2015.
Other donors supporting transport sector are Norway, the Netherlands, Italy, Switzerland, the Czech Republic and Canada.
On the initiative of SEIO, then Ministry in charge of transport developed a formal mechanism to ensure the most effective
coordination of active donors. At present the Donor Coordination Group for Transport is represented by the Ministry in
charge of transport, institutions dealing with various issues in the transport sector, SEIO and main donors.
Of the total estimated disbursement, the highest level was recorded in the road transport (57%), followed by rail (15%), air
transport (10%), general transport policy issues (7.5%), inland waterways transport (1.5%) and intermodal transportation
(0.2%). Also, in transport sector almost 9% of disbursed funds are invested in areas which belong to transport sector but
cannot be linked with any of above mentioned transport modes.
SIDA Report on “Evaluation of effectiveness and efficiency of development assistance to the Republic of Serbia”15 has found
that the assistance provided in the transport sector is very relevant, while the activities have been effective in building the
transport policy framework within in the framework of EU accession. However, public sector transport companies are
overstaffed with low productivity levels. On the other side, effectiveness is only realized after a period has lapsed and other
infrastructure components are in place. Concerning efficiency of resource use the overall levels of capital funding required
for rehabilitating the road and railways networks is considerable. Efficiency is very much caused by the week technical
project identification and timely project preparation. Assistance has been efficient in developing the sector’s regulatory
framework particularly dealing with civil aviation, safety and inland waterway navigation. There has been an incremental
impact of assistance in the transport in terms of improved transport times, safety standards, improved access and increased
revenues (tolls). Sustainability of assistance is dependent on the continued funding and maintenance of transport
infrastructure after donor funding has ceased. The factors determining sustainability, particularly for Corridor X, are future
traffic flows and the overall financing model for Serbia’s overall transport system.
Also, Evaluation of Transport sector implemented and financed by IPA Programme and other Donors in the Republic of
Serbia for the period 2007-2011 was performed. Preparation of the evaluation report is in the final phase. However, following
the evaluation criteria key findings are that relevance of the assistance was highly satisfactory and according to plan aiming
at achieving the goal of EU accession. Effectiveness of assistance provided is evaluated as satisfactory, while overall
impact of the assistance provided and sustainability of the assistance in the transport sector are evaluated as less than
satisfactory. On the basis of these findings, it has been recommended that more strategic vision in programming is
necessary, as well as more synchronisation between the projects during the selection. This should result in better
sustainability of the assistance. Constant improvement of monitoring system is also recommended with the more precise
definition of the performance-based indicators.
Serbian transit traffic forecasts for Corridor X are highly dependent on external economic growth and the on-going financial
crisis may impact in the future on capacity utilisation of transport investments. Under these circumstances, it is important for
the viability of investments to better integrate bordering economies within an overall corridor development framework. This
sees Corridor X as a ‘development’ axis which allows interaction between urban nodes/growth along but also outside the
corridor.
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Such a strategic development perspective towards transport needs to be linked with efficiency in the use of public funds to
finance infrastructure. There are limited funds available for the transport sector, mainly from IFI/external loan sources.
Taking external loans to fund infrastructure has costs and risk implications for the Serbian economy. These costs can be
recuperated and risks ameliorated if loans are utilised on productive infrastructure assets that promote economic
development and employment generation. Once a decision to loan finance is made, the conditions of the loan arrangement
have to be met as efficiently as possible, which has not been the case with transport sector loans in Serbia to date. The lack
of technical project documentation, failure to produce building permits, disputes over land ownership, the need to purchase
land, non-transparent procurement, weak project management, disputes between contractors and financers leading to
payment disputes, all contribute to project delays.
The investment demands for the rehabilitation of Serbia’s overall transport network are substantial. Low economic growth
and other demands on the public finances mean that sufficient tax revenues cannot be generated to fully meet projected
costs. To date, there has been an over-reliance on external loans, with Serbia exceeding its debt threshold, and hence the
transport sector needs new sources of private finance, alongside liberalisation of transport operations as part of an overall
national financing framework. It is recommended that concession agreements with the public sector are developed, as an
incentive for private sector partners to meet contractual obligations and avoid financial losses by maintaining infrastructure
assets more successfully than the public sector. The alternative is to continue to debt finance transport infrastructure with
the associated risks for national finances.
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B8 HUMAN RESOURCES AND SOCIAL DEVELOPMENT
The Human Resources and Social Development (HRSD) sector encompasses employment, labour market issues,
education, social inclusion, health and youth. Human and minority rights per se are not considered a part of the SD sector,
rather Justice, but they are viewed as a cross-cutting issue underlining the policies in the sector. Likewise, gender equality is
embedded in all strategic priorities and policies of the sector. The HRSD sector targets sub-sector specific groups and
cross-cutting groups whose needs and interests are mainstreamed in the priorities and measures in employment, education,
social policy and health. Cross-cutting groups refer to vulnerable and underserved categories of the population, including
especially: Roma, People with Disabilities (PwD), women and groups with multiple dimensions of vulnerability (for example:
Roma women with disabilities), refugees and IDPs.
Labour market policy is closely connected with economic development and should reflect the needs of the market economy,
in particular whether labour is mobile, adaptable and skilled, as well as to support development of a flexible labour market.
This includes the need to promote entrepreneurship, innovations, export, and development of a knowledge-based economy,
improve the business environment, and strengthen links between education and entrepreneurship. The labour market
characterizes the situation of employment, unemployment rates, profiles of the unemployed, active labour market policy
measures, wage developments, labour relations and working conditions.
From different perspectives education can be perceived as formal and non-formal, pre-university and higher education;
looking at the levels, it can be divided into primary, secondary and tertiary education; or from the subsystems viewpoint, it
comprises pre-school, primary, secondary general and art education, secondary vocational education, academic studies,
vocational studies and adult education; but from a holistic point of view, education represents the whole system,
encompassing all of the above mentioned elements and related policies.
Social welfare (coverage of social services and cash benefits at the central and local levels) for the poorest citizens is
guaranteed through more efficient financial support and the development of a network of integrated community-based
services and quality assurance. Social inclusion is an integral component of this sub-sector, setting priority directions of
social policy. Thus, specific strategies and action plans are dedicated to improving the position of vulnerable and
disadvantaged groups including children, women, people with disabilities, elderly citizens, Roma, refugees and IDPs,
returnees and migrants. The promotion of human and minority rights is mainstreamed in every area of social policy.
The healthcare system in the Republic of Serbia is organized into primary, secondary and tertiary care levels and consists of
state-run institutions and privately-run facilities. There are a total of 355 state-run healthcare facilities that are designated
according to the Network Plan of the Ministry in charge of health and include 158 primary health care centres, 41 general
hospitals, 36 specialized hospitals for acute and chronic diseases and rehabilitation and four clinical hospital centres. In
2012, the total number of hospital beds in the system was 41,268, i.e. 5,7 beds per thousand citizens. This accounts for 570
hospital beds per 100,000 citizens, which is the same as the EU average (570) and less than the WHO European Region
average (668). The Ministry in charge of health is responsible for the development and implementation of health policy, while
the Institute for Public Health, “Dr. Milan Jovanovic Batut,” is accountable for collecting the health data that is used to
monitor and report on a vast array of health indicators. The Health Insurance Fund (HIF) administers the allocation of the
compulsory financial deductions that are derived from workers’ salaries and other sources to then be distributed through the
healthcare system to ensure that every citizen in the Republic of Serbia is entitled to basic health coverage. .
The situation in the labour market and employment has been affected by the global economic crisis, the overall mismatch
of supply and demand and other internal negative trends. According to the last LFS the overall employment rate of people
aged 15 and more decreased from 37.9% in 2010 to 35.5 in 2012. The latest nation-wide gender-sensitive data for October
2012 unfolds gender-gaps between employment of women at 28.7% and employment of men at 42.8%. Unemployment rate
of people aged 15 and more slightly diminished from April to October 2012 calculated in total at a national average of 23.9%
, i.e.24.9 for women and 23.2 for men. Statistics show slight positive trends also in youth employment that has increased to
14.7% (0.4% more from April 2012 when it was 14.3%) but at the same time, the unemployment youth rate increased in
October 2012 up to 51.2% (increase of 0.3% in comparison to April 2012 when it was 50.9%). However, inactivity rates are
highest amongst the youth, who together with women, Roma people, low-skilled individuals with secondary education or
less, people with disabilities and with multiple vulnerabilities (ethnic and socio-economic backgrounds) are the most
disadvantaged on the labour market and the least employable. Regional uneven social and economic developments
account for differences in the economic activity of the working age population between urban and rural areas and for varying
levels of unemployment throughout Serbia.
Besides uneven socio-economic development in Serbia, the effects of the global economic crisis and varying and multiple
levels of social vulnerability, other factors negatively affect the labour market and employment rates. Labour mobility is very
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low in Serbia while by contrast, Serbia’s outward-migration is very high and remittances constitute an important share of
income. Regional mobility as an important instrument for balancing demand and supply of the workforce is not analysed due
to a lack of appropriate data. However, tendencies of internal migration show that people migrate from economically
undeveloped regions to regions with greater employment possibilities (from rural to urban areas, for instance).
Unfavourable demographic trends also contributed to the worsening of the main labour market indicators in Serbia.
Furthermore, the informal labour market has been traditionally high in Serbia and it is seems to account for 20% of
employment. However, this figure is expected to be higher and to include a larger share of older workers, better educated
persons with secondary education or more, self-employed persons and unpaid family workers.
The National Employment Strategy 2011-2020 has the objective of increasing the employment rate in Serbia and sets four
strategic priorities (described in the strategic framework section, B8.2). One of these priorities recognizes informal
employment and the labour market mismatch of skills and competences as key structural problems. Employment policies,
especially through active labour market measures and programs, concentrate on reducing market dualities and mismatch.
However, despite progress in the structuring, designing, targeting and implementation of ALMPs, structural problems have
not been eliminated. Aligning the needs of the heterogeneous group of unemployed and the market requirements through
relevant ALMPs remains an actual challenge; further individual tailoring of ALMPs is required to strengthen targeting and
effectiveness. Another weakness of the employment policy is its low coverage: only 16.7% of the registered unemployed
benefited from ALMPs in 2010, and just a reduced fraction of them were involved in training and retraining courses (0.63%).
The main constraint is the small annual budget for ALMPs, which represented only 0.1% of GDP in 2012. In order to
strengthen the impact of employment policies, it is compelling to broaden the coverage and the targets of ALMPs. Budget
allocation also needs to reflect the focus on activation policy measures over passive labour market measures.
In the area of health and safety at work Serbia has adopted rules further aligning its legislation with the acquis. It is
necessary to continue to further the approximation of legislation in this field and the next important task of the labour
protection system is to ensure a safe work environment and secure the effectiveness, quality and enforcement of labour
protection policy.
The overall education level of the Serbian population is low, with a high percentage of illiterate and low qualified adults. Out
of the population age 15 years and older, 34.44% have primary education or less (ISCED levels 0-2), including 2.68% with
no education; 48.93% have secondary or post-secondary, non-tertiary education (ISCED levels 3-4); and 16.27% have
tertiary education (ISCED levels 5 or 6). Despite the fact that from year 2001 reform attempts have been made, the
education system as a whole still faces numerous challenges.
One of the key and overarching challenges is the quality of education. International surveys (PISA and TIMMS) show that
many students aged 15 are functionally illiterate (one third of the population according to PISA, 2009); that the students'
knowledge is mainly of a reproductive type; that the degree of applicability of this knowledge is below world and regional
averages; that there is a very small proportion of students in the highest categories of knowledge (less than 1%) and an
alarmingly large proportion in the lowest categories of achievement. These disquieting results are directly linked to outdated
curricula and obsolete teaching methods, with little stress on the acquisition of transversal key competences as well as to
poor implementation or lack of quality assurance standards and an accreditation system at all levels and segments of the
education system. Some of the quality assurance elements have already been implemented or are in the process of
adoption, but still there are gaps that are hampering the overall quality of the system. Students’ assessment and
examination systems in pre-university education need to be strengthened, qualification standards and outcome based
curricula for all profiles are not developed as well as a monitoring and evaluation system, an accreditation system is not in
place, the quality assurance system in higher education has to be further improved in line with quality reference and with
EHEA255. The quality of teaching and to that effect, of teachers, is undoubtedly a factor in the quality of education, which
stresses the importance of teachers’ education (initial and in-service, further education) and development of a teaching
career.
Regarding the coverage and access to all levels of education, the situation is not favourable, especially for vulnerable
and disadvantaged groups. In preschool education for school year 2009/10, the coverage of children was the following:
under 3 years of age was 15%; 3-4 years of age 34.80%; 4-5 years of age 39.83%, while the coverage of children between
the ages of 5.5 -6.5 (compulsory Preschool Preparatory Programme), was 87.82%256. All children are not covered by
primary education: around 5% of a generation does not go to school (percentage of enrolment in primary schools for 2009
was 95.2%257). In recent years, the enrolment rate in secondary schools has been increasing (with 76.40% in 2005 to
81.58% in 2008), and according to data from the 2009/2010 school year, the share of students attending secondary
vocational schools was around 72.59%, secondary general gymnasiums 25.38% and art schools 2.03%. Drop-out rates at
all education levels, and particularly among vulnerable groups, represent a serious concern for Serbia since the
255 European Higher Education Area

256 Statistical Office of the Republic of Serbia
257 Ibid
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consequences of not finishing school are sombre and costly to both society and individual students. According to the First
National Report on Social Inclusion and Poverty Reduction in the Republic of Serbia (2011), the early-school leavers’ rate in
Serbia in 2010 was estimated at 30%258. The highest drop-out rates are recorded during the year of transition from primary
to secondary school259. The higher early-school-leavers rates are with children from vulnerable and disadvantaged groups,
in particular, children from poor and low educated families, Roma families, rural regions and children with disabilities.
It is estimated that slightly less than 23% of people aged 30 to 34 hold higher education degrees, and in the last few years,
about 40-42% of 19-year olds have been enrolled in the basic academic studies. The average duration of study before
application of the Bologna Declaration ranged from seven to eight years. Early-school-leavers levels from 2000 to 2004
ranged from 43% to 24% (with a favourable trend of decline). Higher education is being reformed in line with the Bologna
process; however, participation rates are a fraction of EU-27 levels.
The EC Progress Report for Serbia 2012 noted that despite the progress achieved in making the education system more
socially inclusive and in introducing quality assurance standards in elementary education, implementation of higher
education reforms remains a challenge and reforms in the VET sector still need to be sped up. Further steps remain to be
taken to implement a strategy of reforming the education and training system in order to improve its performance and
respond better to labour market needs.
Possibly the most significant issue in the Serbian education system is its relevance. The general observation is that the
education system does not prepare students well for the world of work; it is not sufficiently responsive to the needs of the
economy and does not offer enough training opportunities for workers to upgrade their skills and improve their employment
prospects. The reform of the VET sector started with the revision of educational profiles in line with market needs and the
introduction of experimental classes (58% of vocational schools have at least one experimental class which covers around
15% of students in the system). Pilot-testing in selected VET schools has been carried out and has resulted in higher
teaching standards in participating schools, but the scale of improvement remains modest compared to the needs of the
sector. To date, 67 out of 347 educational profiles across 15 occupational sectors have been fully updated in line with
revised occupational standards agreed upon with social partners from the relevant industries. Since 2010, 35 revised
profiles were mainstreamed in schools. Despite achieved results, the overall assessment is that the VET sector is changing
very slowly, with very weak governance and resistance to change embedded within the system, an inadequate network of
schools and an enrolment plan that does not follow labour market needs, and a regulatory and quality control system in
rudiment.
The establishment of the National Qualifications Framework (NQF) for lifelong learning provides support to the
development of a modern, relevant and flexible system of education. NQF will help maintain the education system
responsive to the needs of the economy and facilitate the mobility and progression of students throughout the education
system. The NQF document for the levels I to V in secondary vocational education (formal and non-formal) is developed.
NQF for higher education (levels VI to VIII) is being developed separately, however it would be beneficial if a unified Serbian
Qualifications Framework is established, which would include both formal secondary general education and higher
vocational and academic education. In 2012, four Sector (Skill) Councils were established as a way to implement the social
partnership concept in VET and reduce the mismatch between education and economic needs. However, establishing the
NQF system will require substantial changes in the education system with regard to creating a system for certification of
prior learning (recognition of non-formal and informal learning), a qualification credit system and accreditation of providers.
Also, a quality assurance system is an integral part of NQF and it refers to all segments of education, the qualification
development process, the development of education programmes according to the qualification standards, assuring quality
in the process of acquiring qualifications and assessment of the achievements - standardisation of examinations for the
acquisition of qualifications. In the absence of an operational and functional National Qualifications Framework, and without
a quality assurance system, there is little incentive for the development of education and training offers outside the
mainstream education system (adult education). Systematised data on existing training in the market does not exist, nor is
there any data on the number of adults enrolled in the system of secondary vocational education. According to 2008
Eurostat data, only 3% of adults (25 - 64 years of age) in Serbia participated in some of the adult education programmes.
In social policy, efforts are concentrated on the implementation of the Law on Social Welfare (2011), centred on the
decentralisation of services delivery and the creation of better linkages between education, health, housing and labour
market policies to address the needs of vulnerable groups and facilitate their activation in the labour market and their social
inclusion. Development of more efficient financial support, promotion of active inclusion and service delivery decentralisation
were furthered to provide better protection to the poorest. Progress in the decentralisation of social welfare is recognized
through the reform of the Centres for Social Work, the development of a regulatory framework and the initiated
transformation of residential institutions.
258Early school leavers, not in training, % of persons aged 18-24 with primary education (ISCED 2) not in education or training.
259Gross attendance rate i.e. share of children in regular secondary education, regardless of year of birth in the population of appropriate age. The
coverage of children with secondary education was 84.4% in 2009/2010. Source: MoES
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In the context of the economic crisis, it is reported that 9.2% of the population in Serbia lived under the absolute poverty line
in 2010, an increase of 2.3% compared to 2009. Statistics on the overall population from 2011 include: a decrease in the
employment rate to 45.3%; an increase in the unemployment rate to 24.4% and inactivity to 40.1%. The long-term
unemployment rate climbed to 13.4% (2010), compared to 3.3% in the EU-27.
Roma people are one of the poorest and most disadvantaged groups in Serbia with a poverty rate of 49.2% due to acute
and complex social problems. The EC 2012 Progress Report states that there are around 66,000 refugees and 210,000
internally displaced persons in Serbia. The analyses260 of the needs of refugees show that the level of unemployment within
this category is 33%; and 29% of refugees have a monthly income of only 48 Euros, putting them in the category of people
living below the poverty line. A targeted survey261 estimates unemployment among IDPs from Kosovo at 40.7%, 16% of IDP
households do not have any source of income. PwD are at a greater risk of poverty and social exclusion, facing numerous
barriers in accessing education, employment and healthcare. Although significant efforts and resources have been invested,
the availability of community-based (CB) social services across the country is still limited to respond to the needs of
disadvantaged groups. The necessities of persons with mental health problems, single parents, the elderly in rural areas, ex-
offenders, drug addicts, etc. are not fully covered since adequate local services are often unavailable. 21.2% of all LSGs do
not have home care services and only 38.8% have day care centres for children with disabilities. When such services do
exist, they are often not mainstreamed, i.e. licensed or recognised by the LSGs and beneficiaries. The development of
integrated social services and CB solutions geared to socio-economic inclusion needs to be further supported.
Social welfare expenditures at the central level represent 90% of the total social welfare budget. Services account for 32.4%
and cash benefits for 67.6%. Out of the total social services at the central level, residential care represents more than 70%.
This ratio gives an indication of the excessive weight of residential care and the underdevelopment of community-based
services in Serbia. On the contrary, 86% of local social policy budgets are used to cover social welfare services and the
remaining 14% for cash benefits. In practice, the latter has little impact on the welfare of beneficiaries, since they are only
supplementing central cash benefits.
Lately, the Ministry in charge of social policy has designed a key mechanism to further the development of CB social
services, consisting of a national regulatory framework. This quality assurance system sets national minimum standards,
monitoring mechanisms and licensing procedures for service providers and professionals. Licensing is fundamental to
expand CB services since it facilitates investment by LSGs and encourages organisations to provide services in the
community. Further support to the implementation of the licensing system and to the continuous development of standards
for new social services is still required.
The greatest degree of decentralisation in the healthcare system in Serbia has been achieved at the primary healthcare
level, as local self-governments have taken on responsibility for primary healthcare institutions. Primary healthcare centres
are generally the first point of contact that patients have with a health facility and with a selected physician at the level of
primary healthcare.. Patronage services, which are particularly important for people residing in rural or remote areas, are
also organised through primary healthcare institutions. Since patronage services are often used by the elderly who may live
alone and have difficulty reaching a healthcare facility, this is one means by which to address social inclusion in healthcare.
The population in Serbia is ageing with one sixth of its total population now older than 65. This is comparable to
demographic trends in the EU-27, although Serbia’s population under the age of 14 (15.5%) is below the European average
(17%) and birth rates are persistently decreasing. As such, Serbia was distinguished as the sixth “oldest” country in the
world in 2009262. The average life expectancy in Serbia, in 2012, shows a slightly growing tendency in years: general –
74.74 years; separately – 72.22 for men and 77.29 for women. According to projections by the Statistical Office of the
Republic of Serbia, the population decline is expected to continue for the next few decades. These are important factors to
consider when developing longer-term SD/HRD policies, particularly with regard to those that aim to improve the health
status of the population.
The basic characteristics of Serbian population are changes which brought population to the edge of demographic old age,
which is a consequence of different tendencies in creating vital events. The data for period 2008-2012 show the decrease in
birth rate in Serbia: decrease in liveborn children from 69,083 to 67,257, i.e. decrease in liveborn rate per 1000 people from
9.4 to 9.3 in 2012. Similarly, the population growth per 1000 people for the observed period shows decrease from 4.6 to 4.9
in 2012. Death rate of infants is significant and visible indicator of both health condition and health protection of population
as well as the conditions in social, economic and other spheres of community. In this period, the rate of dead infants per
1000 liveborns decreases from 6.7 to 6.2. Solving these issues requires sector approach, especially because labour
participation and functional social protection system are necessary to secure elderly people to count on pension and health
protection when they need it the most. Without access to necessary social benefits and health protection, elderly people can
260 Refugee Needs Assessment in the Republic of Serbia and Assessment of needs of internally displaced persons in Serbia completed by the
Commissariat for Refugees in cooperation with the UNHCR and IoM between 2008 and 2010.
261
The condition and the needs of IDPs in collective centres in the RS, completed by the Commissariat for Refugees in cooperation with the UNDP in
December 2009.
262 “Demographic Review: Serbia in the Mid-21st Century – Depopulated and Old?”, No.25/2007
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be exposed to poverty and social exclusion. Among other challenges, it is necessary to strengthen capacities of health care
system to meet the requirements of geriatric patients, especially at primary protection level.
Chronic non-communicable diseases are presently the leading cause of illness, disability, and premature death (before the
age of 65) in the Republic of Serbia. In 2012, chronic non-communicable diseases were the cause of death in approximately
85% of cases. Vascular diseases (53.7%), tumors (21.2%), respiratory system diseases (4.9%), symptoms, signs and
pathological, clinical and laboratory results (4.5%), digestive system diseases (3.3%) are the main causes of death. Out of
these diseases, cardio-vascular were the cause of 53.7% of deaths, while malignant tumors caused 21.2% of fatalities.
Risk factors associated with chronic non-communicable diseases include smoking, hypertension, high cholesterol, obesity,
irregular diet, physical inactivity, environmental risks, as well as alcohol and substance abuse. In 2006, 33.6% of adults and
15.5% of young people between the age of 15 and 19 in Serbia smoked; 46.5% of adults had hypertension or were at risk
for developing high blood pressure; 18.3% of adults and 6.4% of children and youth between 7 and 19 years of age were
obese; 74.3% of adults were physically inactive; and 40.3% of adults consumed alcohol on a daily basis or occasionally. A
positive trend has been noted with a decrease since 2000 in the total number of smokers, a reduction of 6.9% among adults
and 7.4% among youth. During the same period, however, the instance of adult hypertension grew by 2%. Nevertheless, the
EC Progress Report for Serbia 2012 asserts that there is still a long way to go before complete alignment with EU tobacco
legislation can be achieved in Serbia.
One development in the effort to combat social exclusion in healthcare has been the recent introduction of Roma health
mediators. The education and employment of Roma health mediators was made possible through projects funded by the EU
and by the Fund for an Open Society. Among other things, Roma health mediators contributed to increase in healthcare
accessibility, to educate the Roma population about their right to healthcare as a necessary means of improving their overall
health status, particularly with regard to women and children, as well as active help in getting personal documents.
B8.2. Strategic Framework

Based on the strategic documents (presented in Annex I) and the sector and SWOT analyses, the following priorities for the
sector have been identified as those best aggregating the multitude of national objectives:
The strategic framework related to the employment sub sector indicates how Serbia will proceed towards achievement of the
common goals of the EU. Priorities are to increase employment in less developed areas and develop regional and local
employment policies; human capital development and greater social inclusion; improvement of institutions and labour market
development; and a reduction of labour market dualities.
The strategic framework for the education sub sector identifies four main objectives for long-term development of the
education system in Serbia: 1. Improvement of the education process and outcomes up to the maximally achievable level –
a level that is the result of overall scientific knowledge and educational practice; 2. Greater involvement of Serbian citizens
at all levels of education, from preschool to lifelong learning; 3. Achievement and sustainability of education relevance, and
the structure of the education system which is in accordance with the individual development needs as well as economic,
cultural, research, educational, public, administrative and other systems; and 4. Improved efficiency of the use of
educational resources, i.e. completing education in a planned time frame, with minimal prolongation and a reduction in early
school leaving.
The sub-sector of social policy encompasses priorities such as: improving labour conditions, strengthening social dialogue,
enhancing social protection, inclusion and protection of vulnerable groups (including women with multiple dimensions of
vulnerability), addressing poverty reduction and youth, and supporting protection of economic and social rights. Current
activities are geared towards the improvement and update of the now out-dated strategic framework. The new Social
Welfare Development Strategy for the period 2013-2020 will include priorities covering the improvement of children's rights,
support for families with children, protection of and support to the elderly, further deinstitutionalization and development of
foster care.
The overall priority in the sub-sector of health is to continuously improve the health of the population and build the efficacy of
the healthcare system through optimization of the network of healthcare facilities. The priority covers a range of factors and
calls for actions in many areas that have been identified in specific strategic objectives. These include the monitoring,
evaluation and analysis of the health needs and expectations of the community; the prevention and control of communicable
and non-communicable diseases and injuries, as well as the associated risk factors; the promotion of healthier lifestyles; the
promotion, development and assurance of healthier and safer environments for life and work; promotion, development and
support for better health at every age; promotion, development and support for actions that improve the health status of
vulnerable populations; and continuous support for the development of accessible, high quality health protection. Actions
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related to the monitoring and improvement of human resources capacities and building of partnerships between the state,
private sector and civil society are also fundamental to advancing healthcare reforms.
In order to streamline the broad array of national strategic objectives and to focus international assistance on the most
pressing issues, the NAD sets out following priorities:
Priority 1, Strengthen the establishment of an efficient, stable and sustainable growth trend in employment, will enhance the
effectiveness, targeting and coverage of ALMPs, further develop in-place local mechanisms to stimulate activation and
employment in underserved areas, promote youth employment and entrepreneurship (especially the NEET group) and
increase on-the-job safety.
Priority 2, Build a knowledge-based society, will enhance formal and non-formal education to improve the efficiency and
relevance of pre-university education, heighten inclusion in schools, pursue the development of a National Qualification
system for lifelong learning and raise the quality of tertiary education.
Priority 3, Increase the effectiveness and equity of social welfare, will introduce more effective targeting of welfare
beneficiaries, strengthen the implementation of CB solutions for social inclusion, promote activation measures and develop
social economy.
Priority 4, Improve the health status of the population by strengthening the accessibility, availability, affordability and
efficiency of healthcare services, recognizes cross-sector linkages (with social policy, labour and employment and
education) and covers reducing the prevalence of non-communicable diseases and strengthening of healthcare
management capacities.
The NAD priorities are harmonised with the objectives defined in the strategic framework and concur with the achievement
of national objectives as stated above, however, the extent to which the priorities and measures proposed in the NAD will
contribute to fulfilling these priorities will depend upon available resources.
The EU Strategy for Danube Region addresses a wide range of issues and proposed areas of cooperation that are divided
among 4 pillars out of which the “Building prosperity in the Danube Region” corresponds to the sector. Priority areas relevant
for the sector are “To develop the knowledge of society through research, education and information technologies” and “To
invest in people and skills”. Serbia adopted a governmental decision in 2010263, which defines its own priority pillars for the
Danube Serbia Region, aiming to achieve objectives by creating a knowledge-based economy through cooperation in the
Danube region and the active role of science in achieving the objectives of the Strategy. This will be necessary to achieve
sustainable development that can cope with the socioeconomic, demographic, ecological, and technological challenges of
the future that can better react to changes.
International agreements related to the sector
The European Partnership with Serbia from 18 February 2008 (2008/213/EC) under European Standards, Education and
Research sets out number of short and medium-term priorities, including: continue efforts to improve the education system;
establish better links between vocational and higher education and the labour market and economic needs; strengthen
administrative capacity and improve coordination among relevant bodies, adopt a national qualification framework for
vocational and education training; promote regional cooperation in the field of higher education; and develop adequate
structures and capacity in the field of health protection. The Stabilisation and Association Agreement (Title VIII,
Cooperation Policies, Article 102 – Education and Training) states that the aim of cooperation is raising the level of general
education and vocational education and training in Serbia as well as youth policy and youth work, including non-formal
education. A priority for higher education systems shall be the achievement of the objectives of the Bologna Declaration in
the intergovernmental Bologna process. Also cooperate will aim to ensure that access to all levels of education and training
in Serbia is free of discrimination on the grounds of gender, colour, ethnic origin or religion. Also, with regard to employment,
cooperation shall focus notably on upgrading job-finding and careers advice services, providing back-up measures and
promoting local development to assist industrial and labour market restructuring. Cooperation shall also seek to support the
adaptation of the Serbian social security system to the new economic and social requirements, and shall involve the
adjustment of the legislation in Serbia concerning working conditions and equal opportunities for women and men, for
people with disabilities and for people belonging to minority and other vulnerable groups as well as the improvement of the
level of protection of the health and safety of workers, taking as a reference the level of protection existing in the
Community. Conventions related to Human Rights, social development and Employment are cross-cutting. (Human Rights
Convention; European Convention on the Protection of Human Rights and Fundamental Freedoms; Lanzarote Convention;
Convention on the Right of the Child; Convention on Preventing and Combating Violence against Women and Domestic
Violence; European Social Charter; Maternity Protection Convention; Private Employment Agencies Convention No. 181
and Labour Administration Convention, No. 150 concerning Private Employment Agency.
263
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B8.3. EU Agenda
The Europe 2020 strategy for smart, sustainable and inclusive growth embraces a balanced vision of economic growth and
social progress. Key Europe 2020 targets relevant for the HRD sector are:
 Employment – Raise the employment rate of the population aged 20-64 from the current 69% to at least 75%;
 Education - Reduce the share of early school leavers to 10% from the current 15%, and increase the share of the
population aged 30-34 having completed tertiary education from 31% to at least 40%;
 Social inclusion - 20 million less people at risk of poverty
Three out of the seven flagship initiatives contains a coherent set of proposals for action at the EU and national level in the
employment and social fields:
 "An agenda for new skills and jobs" to modernise labour markets and develop skills throughout the lifecycle with
a view to increase labour participation and better match labour supply and demand, among others, through labour
mobility;
 "Youth on the move" to enhance the performance of education systems and facilitate access into labour market;
 "European platform against poverty" to ensure social and territorial cohesion such that the benefits of growth
and jobs are widely shared and people experiencing poverty and social exclusion are enabled to live in dignity and
take an active part in society.
 “AN EU Framework for National Roma Integration Strategies up to 2020” to improve the socio-economic
situation of Roma people by eliminating all forms of discrimination against them, ensuring their equal access to all
fundamental rights as enshrined in the EU Charter of Fundamental Rights and breaking the vicious cycle of
poverty
The Strategic framework for European cooperation in education and training (ET 2020) until 2020 aims at supporting further
development of educational and training systems in a lifelong learning perspective, covering all levels and contexts
(including non-formal and informal learning). The education and training systems should better provide the means for all
citizens to realise their potentials, as well as ensure sustainable economic prosperity and employability. It sets four strategic
objectives: a) making lifelong learning and mobility a reality; b) improving the quality and efficiency of education and training;
c) promoting equity, social cohesion and active citizenship; and d) enhancing creativity and innovation, including
entrepreneurship, at all levels of education and training.
Chapter 2. Freedom of Movement for Workers
NPAA measures for 2014-2016 in the area of employment and work of foreigners relate to completing the legislative
framework through the adoption of bylaws for the implementation of the new Law on Employment of Foreigners. By-laws will
be passed to allow the implementation of migration management, which will further harmonize the legal framework in this
field.
Chapter 19. Social Policy and Employment
A common framework and objectives in social policy are represented in the Law on Social Welfare adopted and entered into
force on April 12, 2011. The Law introduces new groups of beneficiaries that used to be insufficiently represented in social
welfare practice, such as victims of domestic violence, abuse, and neglect and self-neglect, and of human trafficking. The
Law is harmonized with international legislation: The EU Charter of the Fundamental Social Rights, International Covenant
on Economic, Social and Cultural Rights, International Covenant on Civil and Political Rights; International Convention on
Elimination of All Forms of Racism and Racial Discrimination, Convention of the Rights of Persons with Disabilities and The
United Nations Convention on the Rights of the Child; the Lisbon Strategy; and the Convention on Action against Trafficking
in Human Beings of the Council of Europe. The measures planned for 2014-2020 reported in the NPAA according to the
expectations that the Republic of Serbia is to fulfil in terms of social inclusion, are to: put in place a fully comparable system
of monitoring and reporting on the status of social exclusion and poverty, strengthen and build the capacities of public
administration and local authorities for implementation and reporting on the social inclusion process and establish a
sustainable unit to coordinate the implementation of the measures and report on the progress of social inclusion in Serbia.
Social inclusion policies should become an integral part of regular activities of the relevant institutions at all levels.
According to the NPAA, 2013-2016, with a view to harmonization of the national legislation with EU legislation, the following
issues will be addressed: protection of workers from the risks related to exposure to asbestos at work and implementing the
2010 Framework Agreement on prevention of sharps injuries in the hospital and healthcare sector. Employment policy
priorities in the forthcoming period will be primarily oriented to: further develop the system for monitoring and evaluation of
active employment policy measures and for forecasting of labour market trends; enhance the system of training to provide a
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more efficient response to labour market needs; create active employment policy measures and target them to hard-to-place
individuals; strengthen capacities at the local level and support further decentralization of employment policy; and target
active employment policy measures at less developed regions to promote balanced and coherent regional and economic
development.
Cooperation between social policy and employment is guaranteed through the European Social Charter (revised) on 29 May
2009, signed by the Republic of Serbia.
Chapter 26. Education and Culture
As regards the right to education, the legislative framework is harmonised with international standards. As defined in the
NPAA 2013–2016, the process of approximation to the European regulations and standards at all levels of education will
continue with adoption of the new Law on Secondary Education (harmonization with the Council Decision 63/266/EЕС -
31963D0266), Law Amending the Law on Higher Education (providing for a more efficient and qualitative higher education
system, increased availability, mobility and further alignment with the EU standards), Law on Certification of Qualifications
for Regulated Professions (approximation to the Directive 2005/36/EC on certification of professional qualifications –
32005L0036) and corresponding implementing legislation. The areas of education, training and youth are primarily a part of
national competencies. However, the common framework and objectives in education and training are related to the
Bologna Declaration, Copenhagen Declaration and Communiqué from Bruges.
Chapter 28. Consumer and Health Protection
The recently established Directorate for Biomedicine will help to advance the Republic of Serbia to align more closely with
the Consumer and Health Protection chapter of the EU acquis. As stated in the NPAA 2013–2016, strengthening the
technical and administrative capacity of this body within the Ministry in charge of health will enable the healthcare system to
perform more organ transplantations in-country, as well as to make it possible for Serbia to become eligible for exchange of
organs with other countries by meeting the conditions that the international foundation Eurotransplant sets for new
members, thereby also reducing the rising healthcare expenditures that presently go towards performing transplantations
abroad. Building the capacity of the Directorate for Biomedicine will also help Serbia to approximate to the EC Directives that
set the standards for ensuring the quality and safety of testing, processing, donation, procurement, preservation, storage
and distribution of human blood and blood components, organs, tissues and cells. Implementation of the Laws on Organ
Transplantation, on Cell and Tissue Transplantation and on Infertility Treatment by Applying in vitro Fertilization
Procedures264 are underway with the adoption of numerous Rulebooks that have been partially harmonized with the relevant
EU Directives in these fields.
Additionally, NPAA measures to improve the health status of the Roma population in the upcoming period comprise further
improvements in the work of Roma health mediators, including: expanding the work of health mediators so that they will
reach out to street children, the homeless and vulnerable groups living in rural environments; and the development of a
monitoring system for the work of health mediators.
It is foreseen to create Action plan for continuation of activities regarding screening based on the place of screening, as well
as adoption of internal documents for screening reports. In order to implement provision of International Health Regulations
into our legislation, it is necessary to pass a bylaw which will define provision implementation according to IHR. The
implementation of IHR is an important measure for period 2014-2016.
assistance with the EU enlargement policy. The priorities for individual countries will be identified in the Country Strategy
Paper (CSP) prepared by the European Commission and the basis for this will be NAD and relevant national sector
strategies.
Concerning Chapter 22, Regional Policy and Coordination of Structural Instruments, the Government of the Republic of
Assembly of the Republic of Serbia on 26 December 2007 by adoption of the Law Ratifying the Framework Agreement265
Five components from the current regulation for the 2007-2013 cycle, in the period 2014-2020, are changed into policy
areas: (a) the transition process towards Union membership and capacity building; (b) regional development; (c)
264 Official Gazette of RS”, No. 72/09

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employment, social policies and human resources development; (d) agriculture and rural development and (e) regional and
territorial cooperation. The main principle of IPA II will be a sector approach.
The SWOT analysis of the human resource and social development sector has been undertaken additional to the situation
analysis presented in previous sections, to set out the long term objectives and medium term strategic priorities and realistic
and targeted measures
• Established legal and strategic framework for HRD policy • Living standards and income levels (GDP per person)
• Social and Economic Council operational at national remain low relative to EU-27
level • Recent economic growth driven by consumption (leading
• Lessons learned from previously implemented projects in to high import levels), more than production, suggesting
the fields of employment, VET, adult education, Roma structural imbalance
Education, vulnerable groups, young people, outcome- • Gains in GDP largely through productivity improvements,
based curricula rather than job creation
• Good cooperation among HRSD sector line ministries • Impact of current global financial and economic crisis on
• Developed network of institutions at the local level Serbian economy and jobs (high unemployment)
• Citizens are supportive of HRSD sector reforms • Skills mismatch on the labour market
• Continuous support from the donors community • Severe constraint on State Budget resulting from higher
welfare expenditure and falling tax and other revenues
• Regional disparities in levels of employment,
unemployment, education and social inclusion
• Slow implementation of existing laws, policies and
strategies
• Very slow integration of pilot projects into system
(mainstream activity funded through State Budget)
• Underdeveloped mechanisms for inter-sectorial
cooperation (between ministries) and with stakeholders
• Low level of social dialogue in designing policies,
including engagement with employers and lack of capacity
at local level to operate Social and Economic Councils
• Insufficient decentralisation of service delivery and weak
costumer focus
• Underdeveloped links between education, employment
and economic development and innovation policies, and
with industrial restructuring
• Recovery expected to be led by investment, exports and • Unfavourable demographic trends – low birth rate,
job creation, as well as higher levels of personal spending ageing population, outward migration from Serbia (brain
• Growing SME, which is rapidly developing, sector offers drain), depopulation of rural areas and inflow to cities and
new work opportunities major towns
• Increase in foreign direct investment during 2000s • Public and private investments in human capital cut as a
continues and generates new employment result of crisis
• Scope to use Public-Private Partnerships to invest in • Weaker than expected recovery from current world
infrastructure and service delivery • Financial and economic crisis undermining business and
• Scope to increase social dialogue through the investor confidence.
development of Social Economic Councils and local • Insufficient future economic growth generates too few
employment councils at local level jobs
• Measures introduced to enhance productivity and • Recovery is strong but fails to convert into job generation
competitiveness of the Serbian economy (only higher productivity among existing employed
• Upcoming amendments to the Labour Law will promote instead, due to capital investment)
greater labour market flexibility in line with EU trends • Further restructuring of the economy worsens labour
• High resilience and adaptability of population to market situation in the short-term, including redundancies
economic fluctuations from privatisation of state-owned enterprises (process of
• Political will to carry out economic, social and privatisation not yet finished)
institutional reforms and pursue EU integration • Underdeveloped transport, environment, economic and
• Greater access to and involvement in EU programmes, social infrastructure: lack of investment holds back job
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including Lifelong Learning, Marco Polo, Youth in Action, creation
etc. • Underdeveloped links between education, employment
• Sharing of best practice from EU and other countries in and economic development and innovation policies, and
particular regarding lessons learnt from previous and on- with industrial restructuring
going projects • Reverse in the trend of falling poverty levels
• On-going support of EU and bilateral donors • Increase in regional inequalities and disparities in levels
of employment, unemployment, education and social
inclusion
To reflect the above and guide assistance programming the overall objective is formulated as follows:
To contribute to smart, sustainable and inclusive growth enabling greater opportunities for a better standard of
living
In order to pursue further and achieve a smarter, more sustainable and inclusive growth in Serbia, it is necessary to
strengthen socio-economic development, reaching higher levels of employment, a more educated and employable labour
force and enhanced social inclusion of people from disadvantaged groups. To this end, greater coherence, harmonization
and integration in sector policies will be strengthened.
Priority 1 - Strengthening the establishment of an efficient, stable and sustainable growth trend in employment
The impact of employment and labour market policies needs to be further strengthened, despite positive achievements are
recognized and identified. To achieve stronger and more impactful results, there has to be an enhanced focus on the
category of unemployed, especially youth, through well-targeted and tailored measures. Insufficient decentralization of
employment policies and modest allocation of resources have limited the impact. Levels of efficiency and effectiveness of
employment measures and programs and social dialogue have to increase and problems with occupational safety and
health have to be addressed further.
Accent should be put on combining, harmonizing and integrating employment, education and social inclusion policies to
bring more people to the labour market. However, there is also a need for a more strategic approach to employment policy
by linking it to other policies at the national level (FDI promotion, R&D, SME development) through a concerted effort to
develop certain sectors and/or regions as future sources of growth.
Priority 2 - Building a knowledge-based society through enhancement of formal and non-formal education
The overall performance of education system in Serbia need to be improved as it does not prepare students well for the
world of work, it is too often based on outdated teaching methods and there is absence of quality control system and
mechanism. In this context, emphasis is put on strengthening quality assurance system and development of an effective
pre- and in-service teacher training for all levels of education given its importance for raising the quality of education. Also,
special consideration is given to the implementation of inclusive education, to increase coverage and enrolment and to
decrease dropout rate in the education system among children from vulnerable and socially excluded groups. Continuing
skills mismatch on the labour market raise the issue of education relevance which will be tackled with the concerted effort to
implement concept of life-long learning as a means to increase the flexibility and employability of the labour force.
Priority 3 - Increasing the effectiveness and equity of social welfare
The overall impact of social welfare and policy needs to be significantly strengthened. In terms of relevance and
effectiveness, social inclusion policies have to be better targeted to relevant vulnerable groups and to increase their access
to education, social and health systems and employment prospects. At present, there is a mismatch of social budget
allocation and reaching of targeted beneficiaries. Generally, social welfare has to be more decidedly and significantly aim at
the activation of the working age beneficiaries in the labour market. In this respect, procedures and mechanisms for
coordinating the provision of social services between various sectors are not sufficiently utilised; community-based social
services remain insufficient to respond to the needs of disadvantaged groups; the capacity of local self-governments to steer
social inclusion policies is still in its infancy and the regulatory framework needs to be built up as the range of services
expands. Despite isolated examples, there is still no comprehensive attempt at integrating employment, social and health
policies, a difficult step but widely acknowledged as the best means to respond to the priorities of vulnerable and
disadvantaged groups.
Priority 4 - Improving the health status of the population by strengthening the accessibility, availability, affordability
and efficiency of healthcare services
The healthcare system needs to provide quality, affordable, efficient services that are equally accessible to all citizens.
Quality of healthcare services delivery should be assessed regularly to determine where improvements may be warranted.
Special programmes should be developed or strengthened to provide for the most suitable healthcare that is tailored to the
specific needs of vulnerable groups. Standards for good clinical practice are needed and professional development for staff
at various levels of healthcare delivery is necessary.. Prevention and decrease in risk factors for suffering from chronic, non-
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communicable diseases should be emphasised.Systemic data collection practices will be strengthened to facilitate
evidence-based decision-making in healthcare. Management capacities will be built to improve the efficiency and efficacy of
healthcare services delivery at all levels and to contribute to enhancing the health status of the population. Patients’ rights
will be promoted throughout the healthcare system.
Priority 1. Strengthening the establishment of an efficient, stable and sustainable growth trend in employment
Measure 1.1: Further promoting the implementation of Active Labour Market Programs, reinforcing their
effectiveness, targeting and coverage of services
The activities that will be implemented through this measure will advance the implementation of existing ALMPs,
strengthening their effectiveness by better targeting and promoting tailored approaches to individual needs. The realization
of this measure will be based on the further development of: data analysis and forecasting, activation and better targeting,
active labour market measures and programs (with special emphasis on hard-to–employ groups), monitoring and evaluation
system. To this end, additional activities will be implemented by the Ministry in charge of labour, employment and social
policy and the NES, in the field of analysis and forecasting of LM data in order to fully align with the international standards
in this area and to complete preparations for the joining to the EURES network. Evidence–based data will be strengthened,
especially in the field of career guidance and counselling and mediation. Counselling and mediation will be enhanced and
service delivery diversified and tailored directly to the needs of the beneficiaries and in line with the business sector
demands. This will be achieved through the further expansion of the services offered by job clubs to better correspond to the
needs of different target groups. Considering the area of employment affairs, conducted by private employment agencies
(dissemination of information regarding employment opportunities, job matching, vocational guidance and counselling etc.),
cooperation between NES and these operators will be further developed and promoted (i.e. development of IT software to
create a unified data base through which NES will collect and utilize data generated from agencies, on a regular basis, joint
trainings in the common fields of activities). Additional recourses for the implementation of the active labour market policies
and measures will be focused toward reaching an increase in employability and employment. Emphasis in this realm will be
given to the disadvantage and hard-to employ groups of unemployed (youth, persons with low/no qualification, long-term
unemployed, PWDs, Roma, elderly, rural populations, refugees and IDPs). To increase the effectiveness of ALMPs, the
monitoring and evaluation system will be mainstreamed more coherently and consistently. Achieving of all of these elements
will be supported by the capacity and institution building of the labour market institutions specifically in the above mentioned
fields, in order to assure harmonization of the adopted policy approach with current situation in the labour market. Further
strengthening of the sectorial cooperation between relevant ministries, institutions and stakeholders (local bodies, social
partners, civil society sector, existing networks of relevant actors...), along with the harmonization of strategic framework and
the integration of services and their delivery will also be in the focus of this measure, thus contributing to the improvement of
the situation in the social development sector.
Measure 1.2: Reducing regional disparities through integrated and coordinated support to generate employment
Unemployment and social deprivation represent consequence of wider social and economic issues requiring
integrated/combined solutions and active involvement of wider range of stakeholders, especially at the local level. As a start,
the establishment of local employment councils (LECs) represents an innovative approach in the designing and
implementation of local employment policy (the needs and opportunities of local labour markets are considered). Also,
Serbia is faced with regional gaps, discrepancy between the development levels of the regions/municipalities. International
development assistance supported the process of decentralization of the employment policy (establishment and capacity
building of LECs members and creation of inter-municipal employment priorities). It is however assessed that additional
activities need to be implemented. Thus, LSGs still in the process of developing Action Plans will be supported in the
preparation. Further, a Grant Scheme will be structured and defined targeting LSGs and Local Employment Councils to
empower the implementation of the joint inter-municipal employment action plans. The central methodology or the
implementation of the Grant Scheme and the realization of employment action plans will be based on sector-wide and
integrated approaches combining necessary resources, services and relevant actors, accompanied with the efforts toward
strengthening social partnerships, building capacity of local self-governments and local bodies/councils/actors, will
complement to the design and implementation of local employment policies and contribute to the overall economic, social
and regional development.
Measure 1.3: Improving labour policy, work environment and working conditions
This measure will both align the labour legal framework with EU regulations and support the enforcement of on-the-job
health and safety rules through the respect of procedures and mechanisms and capacity building in occupational safety and
health (OSH). The relevant Ministry will further harmonize the national legal framework with EU regulations, directives and
standards, procedures and enforcement mechanisms. The relevant Ministry and other labour institutions and organizations
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will be supported through activities such as administrative capacity building, information systems upgrade as well as
development and improvement of programmes, procedures and mechanisms of enforcement. In the area of OSH this
measure will support enterprises and institutions to enforce health and safety rules, to enable an overall reduction of
occupational accidents and illnesses and illnesses related to work and inform in order to apply measures of prevention.. This
will include the implementation and mainstreaming of adequate safety monitoring mechanisms at the level of individual
enterprises, activities concerning awareness raising and enhancing knowledge of all actors in health and safety at work;
OSH education modalities in line with EU standards and practice, support for solving health and safety at work problems
related to injuries at work, occupational and work-related diseases and sick-leave, return to work problems, workers with
disability; development and provision of preventive programs. In addition, the compulsory occupational accident insurance
will be activated. To improve the work environment and working condition, social dialogue mechanisms that trigger
partnership building and foster employment, competitiveness and productivity, will be further developed and empowered at
the local and national level. To this end, independent and representative social partner organizations (public, private,
workers stakeholders) will be supported and enabled to participate more actively in social dialogue. A Grant Scheme will be
structured and defined targeting social partners to: enhance their organizational abilities to contribute to the quality and
continuity of the bi- and tri-partite social dialogue process, to provide support for territorial and sector networking and support
activities that will empower them to participate actively in the EU negotiation process.
Measure 1.4: Enhancing youth employability and facilitating their access to the labour market
This measure implies offering further education, (re)training or ALMP measures for young people, in particular for those not
in employment, education or training (“NEET group”), also covering early school-leavers. It should also support further
development of evidence-based, comprehensive and cross-sectorial policies that include measures to re-engage young
people who have dropped out of education and to strengthen the link between education/training systems and the
employment sector. All this will be supported by enhancing effective coordination and partnerships across policy fields
(employment, education, youth, social policy, etc.) in terms of boosting quality employment opportunities, apprenticeships
and traineeships, but also to help smooth the transition from unemployment, inactivity or education into work. Important
pillars will consist in fostering entrepreneurial mind-sets, generating start-up support services, facilitating the availability of
microfinance, and increasing awareness of the possible chances and perspectives connected with self-employment of
young people, including youth entrepreneurship, social entrepreneurship and cooperatives. This will entail also ensuring that
young people have full access to information about this services and possibilities and available support. by: strengthening
cooperation between employment services, career guidance and counselling providers, education and training institutions,
employers, CSOs and youth support services (Local Youth Offices, Youth Clubs, Youth NGOs…); and making full use of all
relevant information channels and social media. In order to formalize the status of the heterogeneous groups in NEETs and
promote their registration in NES more effective outreach strategies towards young people will be designed and realized
according to the needs and priorities of the target groups, including information and awareness campaigns, and social
media. Also, incentives and pathways to re-enter education and training programmes will be planned and offered to low
skilled youth provide learning environments responding to their specific needs where they will build their key competences.
All this should be followed by recognition and validation of non-formal education and informal learning. On the other side,
this measure should support regular channels of communication with employers (e.g. Sector Skills Councils) as well as to
establish environment that encourage employers (i.e. recruitment subsidies) to create new opportunities for young people,
such as an apprenticeship, traineeship, internships or job placement, particularly for NEETs, in line with the applicable
official legislation
Priority 2. Building a knowledge-based society through enhancement of formal and non-formal education
Measure 2.1: Raising the quality and efficiency of the pre-university general education
The measure will build upon already establish quality assurance elements in education system, by developing standards for
facilities, equipment and didactic materials and professional competencies of educators. Based upon quality standards,
development and implementation of the national system for accreditation of institutions /schools in pre-university general
education will be supported. The actions related to quality assurance system under this measure will take into consideration
all elements of education process, education programmes, teaching/learning process as well as the education outcomes
and student achievements. Also, system of students’ assessment will be enhanced by introducing diverse methods of
assessment and by improving examination system. Furthermore an implementing mechanisms, legal framework and
operational structure to control the adherence/ compliance with these standards will be setup and in that respect the
capacities of the Ministry (pedagogical advisors and regional school administrations) and Institute for Education Quality and
Evaluation will be strengthen. This measure will be focus on raising the quality of teachers’ education (pre-service and in-
service) to enhance professional competencies of educators. As integral element of quality in education, the system of
teachers’ professional/career development (in-service training) based upon professionalization and evaluation will be
reinforced. Monitoring and Evaluation framework for teachers’ professional development will be developed. Set of criteria
focused on performance and achievements will be developed for the evaluation of teachers from the introduction into work,
through acquisition, renewal and loss of license, together with marking and monitoring system. Capacity building of teachers
will focus on application of new methods of teaching, continues student assessment, active learning, students’
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competencies, use of ICT and assisting technology. Capacity building for pedagogical advisors and regional school
administrations should be provided. Also, integration of these principles and models in initial teachers’ education will be
facilitated.
Measure 2.2: Increasing participation and access to education
This measure will support inclusive education and to increase coverage and enrolment in the education system among
children from vulnerable and socially excluded groups, especially Roma children, children with disabilities, children from
poor families and from rural/undeveloped areas. Building upon previous successful experience, the implementation of the
model for functional and efficient coordination between all relevant stakeholders (education, health and social services) on
local and national level will be supported. In that respect capacity building of local self-governments, social, health and
education institutions will be carried out, to actively support early development of children, monitor admission to schools,
implementation of inclusive policy and implement corrective mechanisms. Inclusive and pro poor measures will be piloted at
the local level and introduced to the system. Additional support to the Inter-sectorial Committee for Assessing Needs for
Additional Support to Child and Pupil (IRK) should be provided. To decrease school drop-out rates of vulnerable children
(especially Roma children, children with disabilities, etc.) early warning system will be developed and innovative approaches
will be introduced at the school level (e.g. remedial teaching, pedagogical assistance, teaching and learning styles, assistive
technologies…). With the regard to VET schools, support will be provided for development of individual teaching plans and
programmes and their implementation and for introduction of carrier guidance and counselling system. Also, supporting
mechanisms to empower parents’ active participation in the education of their children and to contribute more actively to the
in-place social inclusion processes in schools will be implemented. On the national level capacities of the relevant line
ministries will be strengthen to systematically plan financial and human resources for additional support for children from
vulnerable groups as well as to develop enabling legal environment for implementation of inclusion policy and affirmative
measures.
Measure 2.3: Establishing functional National Qualification Framework for lifelong learning
This measure will continue the development of the National Qualifications Framework (NQF) system aimed at facilitating
access to, mobility and progression within the education and training systems and ensuring that qualifications are relevant,
responding to labour market demands and available. Sustainable system of social partnership of stakeholders that links
education policies with labour market forecasting and involves social partners in the programming, realisation and
development of VET, as well as in defining and regularly updating standards of qualification in demand on the labour market
will be institutionalised and legally regulated. The measure will also help develop a transparent credit transfer system and
system for the recognition of prior learning (recognition of competences and qualifications acquired through non–formal and
informal learning and certification of prior learning). The capacity of the key national institutions for NQF system
management, will be strengthened, namely the Council for Vocational Training and Adult Education to steer and oversee the
NQF process, the VET and Adult Education Centre to organise the NQF process and manage the work of Sector (Skill)
Councils. The measure will help setting up an accreditation and licensing system, by developing standards for the
accreditation of providers and quality assurance system, including standards for education programmes and exams for
obtaining the qualifications. The network of vocational schools and offer of educational programmes (profiles) will be
harmonised with the need of economy. VET schools will be equipped and modernised, in particular, by introducing flexible
organisation of the teaching process, developing a standard of qualifications and associated competency based curriculum
in line with NQF requirements and preparing for licensing and accreditation. The management of VET system will be
improved by establishing monitoring and evaluation system (instruments, procedures, responsible bodies) and by defining
and regulating clear roles and responsibilities.
Measure 2.4: Raising the quality and participation in tertiary education
This measure will contribute to further improvement of the quality assurance system, in line with quality references and with
the European Higher Education Area (EHEA) by upgrading and merging external and internal quality assurance and control
system, development of specific standards and measures for doctoral studies and teachers’ education and improvement of
accreditation system. Higher education programmes will be developed in line with the needs of the economy and links
between higher education institutions and business and industry will be established, with a view to promoting the
development of technologies and innovations. The capacities of higher education institutions to implement curricular reform,
focusing on outcomes and introducing research element into structure, teaching methods and the use of new teaching
materials according to the three-cycle system, the European Credit Transfer System (ECTS) will be upgraded.
Priority 3. Increasing the effectiveness and equity of social welfare
Measure 3.1: Improving the relevance and accessibility of social welfare investments through more efficient and
effective use of social protection means (measures for poverty reduction) and modernizing the state mechanisms
for providing support to vulnerable population
The measure will contribute to the further rationalization and prioritization of social budgets in order to: more efficiently and
coherently target and reach beneficiaries, and support more concretely the integration of employment, education and social
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inclusion interventions. The realization of this measure will be based on the further development of: data analysis, evidence
based research, forecasting, monitoring and evaluation system. Better targeting of beneficiaries will be achieved by
connecting all available databases, and developing protocols between services. Harmonization, integration and
strengthening of system mechanisms will help to secure quality in implementation, and to build its capacity to monitor and
evaluate social expenditures in order to make the best use of available resources. This measure will also contribute to the
establishment of an EU-wise comparable social statistics system in Serbia. A sector-wide approach will constitute the
principle and the methodological basis for the realization of this measure that will focus on capacity building of institutions
and service-providers. In order to accomplish this, the Ministry in charge of social policy, the Institute of Social Protection,
the Social Welfare Chamber and other relevant national and local institutions and organizations will be supported by the
capacity and institution building for monitoring and evaluation of the allocation of social investments at the design, planning
and implementation level.
Measure 3.2: Advancing the efficiency of social protection and social inclusion through innovations
The measure will contribute to the continuous development of and support to community-based approaches by:
strengthening, scaling and integrating the implementation of existing CB solutions and stimulating the realization and growth
of innovative and integrated ones. The logic of this measure is to pilot and refine the practice of integrating social,
employment, health and education services and products at the local level to achieve higher impact in social inclusion.
Also, this measure will directly facilitate the realization of article 86 of the Social Protection Law that foresees cooperation
between Centres for Social Work and Employment services in the implementation of social inclusion measures combining
the right to economic social assistance with the ability to work. The adequate blend and ratio of welfare/unemployment
assistance, income support, job-seeking, job coaching, training, etc. will be designed according to individualized case-
management. Adequate programs creating job opportunities and raising the employability of job-seekers who qualify for
activation support will include social assistance services, employment and training services, housing support and social
housing, childcare, long-term care services and health services.
Social welfare services and institutions together with LSGs will further build capacities and opportunities for the
establishment of a stronger social economy at the local level. Tax reductions and investments in human capital; the
opportunity of access to financial resources for social entrepreneurs; the business and marketing of start-ups; and the
further replication and scaling of social enterprises will be facilitated. Mutual-learning will be employed as a tool to further
build public-private and wider social partnerships. Capacity building and networking of stakeholders (CSOs, businesses,
Youth offices, Social Entrepreneurship Centres, and government institutions) will further promote social economy practices.
The measure will include the replication, multiplication and transfer of good practice, scaling, growth and establishment of
cooperatives, social enterprises/businesses, start-ups incubators and accelerators of social entrepreneurship and
community-based services. The latter will consist of housing programmes for the homeless and the most vulnerable
categories, integrated solutions for the prevention and monitoring of all forms of discrimination and violence, enhanced
inclusion of persons with disabilities, inter-municipal cooperation with regard to more efficient and cost-effective
implementation of CB services. Grant Schemes as tools for the production of social innovations/CB solutions at the local
level will be elaborated by the Ministry in charge of social policy as a leading institution in cooperation with education,
employment and health representatives.
Priority 4. Improving the health status of the population by strengthening the accessibility, availability, affordability
and efficiency of healthcare services
Measure 4.1: Reducing the prevalence of non-communicable diseases through further implementation of
prevention programmes aimed at decreasing the associated risk factors
This measure will support the addressing chronic non-communicable diseases by facilitating the development of evidence-
based programmes to reduce the impact of the numerous risk factors that jeopardize their well-being. The measure will
strengthen the capacities of the national Institute of Public Health and the network of 23 regional public health institutes to
systematically collect data on the risk factors associated with non-communicable diseases (smoking, alcohol consumption,
irregular diet, physical inactivity, obesity, high stress, etc.) and produce regular reports with this integrated data. Public
awareness campaigns will continue to be designed and implemented to help promote healthier lifestyles. Beginning at the
primary healthcare level, the capacities within the healthcare system will be reinforced to encourage prevention. Moreover,
capacities of inspectors responsible for ensuring the effective implementation of anti-smoking laws will also be strengthened.
With regard to the risk factors of alcohol consumption and substance abuse, further efforts will be made in the arena of
occupational health to incorporate research on work-related injuries and diseases as well as to study the incidence of
alcohol and substance abuse at the work place. A registry of occupational health injuries and diseases will be developed
and updated on a regular basis.
Measure 4.2: Strengthening healthcare management capacities and introducing new technologies in order to
provide better conditions for treatment and rehabilitation and to improve the efficiency of the healthcare system
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To help the healthcare system function more effectively, this measure will support operations that facilitate more efficient
delivery of healthcare services. The measure will support the system of patronage services, especially in rural and remote
areas for those who do not have easy access primary healthcare centres. This is particularly relevant for the elderly who
require home healthcare over the longer-term. Planning and management capacities will be strengthened at all levels of the
healthcare system to help decrease the long waiting lists that are presently commonplace for many diagnostic and treatment
procedures. Systematic changes in healthcare management approaches will be instituted to help improve the efficiency and
accessibility of healthcare services delivery, especially when it refers to enhancement of capacities in prevention and control
of contagious diseases. Because of the age and excessive use of much of the healthcare equipment across the country,
priority lists of equipment that is most urgently needed will be prepared and educational programmes will be implemented to
build the capacity for staff in healthcare institutions to use any new equipment properly. Monitoring and evaluation of health
care delivery will be conducted through the effective utilisation of surveys and health information systems. Patients’ rights
will be promoted at all levels.
Regional, Cross-Border and Transnational Themes in Human Resources and Social Development sector
Programmes, should be provided to those actions where the benefit of a regional approach is obvious.
Multi-Beneficiary IPA
In the coming years, support from MB IPA should facilitate the completion of research that will serve as a basis for furthering
social inclusion policies and practices. This will comprise the preparation of demand driven social inclusion analyses,
screenings and studies which will generate information about the situation of the socially excluded and the types of
interventions that are most needed. The Regional Housing Programme will also require further support to provide long-
lasting, sustainable housing solutions for the most vulnerable, particularly the remaining refugees and IDPs in the partner
countries of Serbia, Bosnia-Herzegovina, Montenegro and Croatia as part of the Sarajevo Process.
IPA CBC
Cross Border and Transnational Priorities are linked with the following ERDF thematic objectives: Promoting employment
and supporting labour mobility (Thematic objective 8), Promoting social inclusion and combating poverty (Thematic objective
9) and Investing in education, skills and lifelong learning (Thematic objective. 10). In the context of CBC, possible areas of
interventions are strengthening people-to-people cooperation and local social initiatives and improving all aspects of
inclusion of the vulnerable groups particularly Roma. The translation and implementation of national commitments for Roma
inclusion into local action need to be supported, with the aim to ensure equal access of Roma to education, employment,
healthcare and social welfare. In particular, support the employment of Roma (with a focus on women) through self-
employment, entrepreneurship, business incubators and civil society. Specific focus should be on bilingual (minority
languages) education, strengthening understanding, communication and cooperation in border communities; enhancing
social inclusion at the primary school level by more broadly introducing Roma mediators and pedagogical assistants (to
support the inclusion of children with disabilities); building partnership with economy for sustainable development of VET;
promotion of the importance of organ donation and transplantation; and small scale activities to improve women’s
employability.

Within the education sub-sector, emphasis is on the activities that strengthen cooperation among universities and research
facilities; upgrading of research and education outcomes; strengthening capacities of research infrastructure; cooperation
between key stakeholders of labour market, education and research policies in order to develop learning regions and
environments; implementation of the European Qualification Framework and lifelong learning (LLL) policies and exchange of
best practices.
The Human Resource and Social Development sector in the Republic of Serbia, in the context of a sector approach, is
managed by the following institutions: the Ministry in charge of education (Institutes for Improvement of Education and for
Education Quality and Evaluation and educational institutions), the Ministry in charge of labour, Ministry in charge of
employment and Ministry in charge of social policy (NES, Inspectorates and institutions for social protection, welfare and
employment at the national and local levels), the Ministry responsible for health policy development and implementation (the
national Institute for public health and a network of regional public health institutes, the Directorate for Biomedicine, the
Agency for Accreditation, inspectorates, the health insurance sector, and primary, secondary and tertiary health institutions).
The lead institution for the sector is the Ministry in charge of employment. .
193
In the context of a sector approach, the Ministry coordinates the work of all relevant institutions in the sector regarding
planning, programming, implementation and monitoring of the HRSD sector measures/operations which will be supported by
EU funds and other international development assistance. Responsibility for formal submission and later implementation of
measures/operations depends upon their content and the responsibility of institutions involved in the HRSD sector.
Group (SWG) for Human Resources and Social Development 267 has been established. The SWG for HRSD is responsible
for coordinating activities related to planning, programming and monitoring of EU funds and international assistance, for
identifying relevant measures/operations and activities and for supporting the introduction of a sector approach in the HRSD
sector. The functioning, management, organization and composition of the SWG is more precisely defined by the “Rules of
Procedure for Sector Working Groups for the Programming and Monitoring of the EU funds and development assistance’’.
The national institutions participating in the SWG are the Ministry in charge of labour, the Ministry in charge of employment,
the Ministry in charge of social policy, the Ministry in charge of education, the Ministry in charge of health, the Ministry in
charge of youth, the Social Inclusion and Poverty Reduction Unit, the Ministry in charge of Regional Development and Local
Self-Government, the Office for Human and Minority Rights, the Office of the Commissioner for Equality, the Directorate for
Gender Equality, the Ministry in charge of Finance and Economy (CFCU and NF) and the Serbian EU Integration Office
(SEIO). Members of the SWG are officially appointed representatives of the above mentioned line ministries, at the level of
State Secretary or Assistant Minister, or appointed Senior Programming Officers (SPOs) and the Serbian EU Integration
Office.
needs and requirements of each SWG meeting and taking part in the consultation processes for analysing sector priority
goals, measures and operations for financing from EU funds and international assistance, as well as securing data on the
particularly programming and monitoring of the Instrument for Pre-Accession Assistance (IPA). The SECO includes a
consortium of a maximum of three CSOs as partners, one of which is clearly indicated as leading partner. SECO is
composed of the CSOs that have significant experience with public advocacy, analyses and research in the sector, as well
as experience in direct work with service providers and beneficiaries. They are influencing public policy due to their
successful networking and partner work with other local and international civil society organisations as well as constructive
cooperation with state institutions and the constant monitoring of their work. Members of SECO are participating at the SWG
meetings based on the needs and requirements of each SWG meeting and take part in the consultation processes for
analysing sector priority goals, measures and operations for financing from EU funds and international assistance. Other
relevant stakeholders (agencies, private, academic sector, CSOs, etc.) can participate at the SWG meetings based on the
topic, needs and requirements of each Sector Working Group meeting.
Under the Rules of Procedure for Sector Working Groups, SEIO269 is responsible for coordination and for ensuring the
Task force made up of representatives from the Sector Lead Institution, Lead donor and SEIO. The SWG is also acting as
the Sectorial Monitoring Subcommittee for IPA.

269
194
195
Priority 1: Strengthening the establishment of an efficient, stable and sustainable growth trend in employment
Baseline Target
Indicator Unit Means of Verification Institution in charge
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
24.5% for 10.8% in
the age 2020 for the
13,15% Evidence-based reports,
1.1. Unemployment rate – share of the unemployed in group 15- age group
evaluations, analysis by NES, Ministry in charge of
working age population unemployment 64 15-64
relevant line ministries; EU Labour and
(disaggregated by sex, age, educational attainment and rate 23.1% for 8.26% in
progress reports; Statistical Employment
region) the age 2020 for the
11,44% Office of the Republic of Serbia
group 20 age group
to 64 20-64
47.3% for
the group Evidence-based reports,
1.2. Activity rate – share of active population in total
15 and up 68.8% evaluations, analysis by NES, Ministry in charge of
working age population
activity rate average in relevant line ministries; EU Labour and
(disaggregated by sex, age, educational attainment and
60.4% for 2020 progress reports; Statistical Employment
region)
the group Office of the Republic of Serbia
20 to 64
MEASURE 1.1: Further promoting the implementation of Active Labour Market Programs, reinforcing their effectiveness, targeting and coverage of services
Baseline Target
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
% of total
number of Evidence-based reports,
1.1.1. Share of unemployed persons included in ALMP Ministry in charge of
registered evaluations, analysis by NES,
on an annual basis (disaggregated by sex, age, 17% 23% 25% Labour and
unemployed relevant line ministries; EU
education and region) Employment
participated in progress reports;
ALMPs
% of Evidence-based reports,
1.1.2.. Share of hard-to-employ individuals covered by Ministry in charge of
unemployed evaluations, analysis by NES,
ALMPS (disaggregated by sex, age, education and 71% 80% 90% Labour and
persons included relevant line ministries; EU
region) Employment
in ALMPs progress reports;
% of Evidence-based reports,
1.1.3. Share of persons employed after participation in Ministry in charge of
unemployed evaluations, analysis by NES,
ALMPs (disaggregated by gender, age, ethnicity, 21% 25% 28% Labour and
persons included relevant line ministries; EU
education and region) Employment
in ALMPs progress reports;
MEASURE 1.2: Reducing regional disparities through integrated and coordinated support to generate employment
Baseline Target
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
196
Employm
ent-to-
populatio
n ratio
(15-64):
Belgrade
46.9%
1.2.1. Employment-to-population ratio by employment -
SORS Labour and
regions (disaggregated by gender) ratio Vojvodina
Employment
43.2%
Sumadija
47.3%
South-
east
Serbia
49.7%
Unemploy
ment – to-
populatio
n (15-64)
Belgrade
21.6%
Vojvodina
1.2.2. Unemployment rates by regions % of 26.7%
SORS Labour and
(disaggregated by sex) unemployment Sumadija
Employment
and West
Serbia
23.7%
South-
east
Serbia
26.2%
MEASURE 1.3: Improving labour policy, work environment and working conditions
Baseline Target
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
Evidence-based reports Ministry in charge of
1.3.1. Labour by-laws and directives aligned with the
Yes/No No Yes published in official gazettes of Labour and
acquis
the Republic of Serbia Employment
1.3.2. Enterprises respecting and enforcing on-the-job Labour report of the Labour
% 60 80 Labour and
safety measures Inspectorate
Employment
40
10 Ministry in charge of
1.3.3. Percentageof decrease in accidents on-the-job (comp Labour report of the Labour
% (compare Labour and
due to respect and enforcement of safety measures ared to Inspectorate
d to 2011) Employment
2012)
197
MEASURE 1.4: Enhancing youth employability and facilitating their access to the labour market
Baseline Target
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
Evidence-based data from NES Labour and
1.4.1. Share of youth (15-30) from the NES register that
and relevant institutions; Employment with
found employment (disaggregated by sex, education % 41% 49% 55%
Ministry in charge of Youth and the Ministry in
level, unemployment spell, district, and region)
Sports; charge of youth
policy
30.7% youth
Labour and
1.4.2. Youth activity rate (15-24) (disaggregated by sex, % activity rate in activity rate Strategies, ALMPs, NES,
29.6% 30.1% Employment with the
education level, and region) youth (15-24) in SORS
2020
youth policy
Labour and
1.4.3. Percentage of youth participated in education and Youth policy Gazette; LFS; Employment with
%
training employed and got employed afterwards SORS the Ministry in
charge of youth
policy
1.4.4. Number of youth included in ALMPs Labour and
Number of youth
(disaggregated by sex, education level, unemployment 60,000 72,000 76,000 Evidence-based data from NES Employment with the
in ALMPs
spell, district, and region) Ministry in charge of
youth policy
Priority 2: Building a knowledge-based society through enhancement of formal and non-formal education
Baseline Target Institution in
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 charge
2.1. % of children (in generation) covered by Ministry in charge
% 95,2 271 97 ≤ 98 SORS/EMIS
primary education270. of education
2.2. % of students (in generation) completing four- Ministry in charge
% 76 88 ≤ 95 SORS/EMIS
year secondary schools of education
2.3. % of citizens age 30 – 34 with tertiary Ministry in charge
% 23 30 38,5 SORS/EMIS
education of education
MEASURE 2.1: Raising the quality and efficiency of the pre-university general education
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 charge
2.1.1. % of schools achieving quality standards on % 40 60 70 IEQE report Ministry in charge
270 All data disaggregated and by generation (age group)

271 SORS for 2009
198
the level 3 and 4 of education
2.1.2.Basic level of education standards achieved IEQE Final Exam evaluation Ministry in charge
% 75 90 95
by students in primary education report of education
2.1.3. Intermediate level of education standards IEQE Final Exam evaluation Ministry in charge
% 30 50 60
achieved by students in primary education report of education
2.1.4. Advanced level of education standards IEQE Final Exam evaluation Ministry in charge
% 15 20 25
achieved by students primary education report of education
2.1.5. Intermediate level of education standards
Ministry in charge
achieved by students in general secondary % - 60 65 IEQE evaluation report
of education
education
MEASURE 2.2: Increasing participation and access to education

(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 charge
Ministry in charge
2.2.1. Increase coverage of preschool education % 41.36272 50 SORS/EMIS
of education
Ministry in charge
2.2.2. Reduce dropout rate in primary education % 10 - 15 8 ≥5 SORS/EMIS
of education
Ministry in charge
2.2.3. Reduce dropout rate in secondary education % 10273(30) 15 ≥5 SORS/EMIS
of education
MEASURE 2.3: Establishing functional National Qualification Framework for lifelong learning
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 charge
2.3.1. Established a continuing work of all Sector Ministry in charge
No. 4 6 10 14 16 20 Report IIE
(Skill) Councils. of education
Report on the Ministry in charge
2.3.2. Accredited external assessors % 0 30 50
implementation of Strategy of education
2.3.3. Institutions accredited for recognition of prior Report on the Ministry in charge
No. 0 6 10
learning implementation of Strategy of education
2.3.4. Vocational education programmes according Ministry in charge
% 10 20 40 50 60 80 100 Education Gazette
to the qualification standards. of education
2.3.5. % of population covered by adult education Ministry in charge
% 3 5 ≤7 SORS/EMIS
and lifelong learning programmes of education
MEASURE 2.4: Raising the quality and participation in tertiary education

Indicator Unit Baseline Target Means of Verification Institution in
272 SORS for 2009/2010 school year

273 EUROSTAT for 2010
199
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 charge
2.4.1 % of generation enrolled into higher Ministry in charge
% 35 ≤ 50 SORS/EMIS
education institutions of education
2.4.2. % of enrolled students completing higher Ministry in charge
% 40 70 SORS/EMIS
education on time or within one year of delay of education
Ministry in charge
2.4.3. Dropout rate in HE % 43 (24) ≥ 15 SORS/EMIS
of education
Priority 3: Increasing the effectiveness and equity of social welfare

Baseline Target
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
Increa
3.1. Social welfare beneficiaries to population ratio, se in Evidence-based data
Ministry in charge of social
disaggregated by gender, age, ethnicity and % 8.8 the by relevant institutions;
policy,
territory ratio HBS; SORS
%
3.2. % of relative at-risk-of-poverty gap (eliminated
by social transfers) disaggregated by gender,
ethnicity, age and territory (effectiveness- It shows Decre
the allocation of social transfers by the level of the % ased HBS; SORS
policy,
household income and thus supports development by %
of interventions in the domain of targeting of social
transfers)
MEASURE 3.1: Improving the relevance and accessibility of social welfare investments through more efficient and effective use of protection means (and measures for poverty reduction) social
and modernizing the state mechanisms for providing support to vulnerable population
Baseline Target
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
Yes
No
(comp
(partially Evidence-based reports Ministry in charge of social
3.1.1. Quality assurance mechanisms established Yes/No letely
establish by relevant institutions policy
establ
ed)
ished)
Evidence-based reports
by relevant
3.1.2. EU-wise comparable social statistics system Ministry in charge of social
Yes/No No Yes institutions/data in
established policy
integrated database,
SORS
3.1.3. Share of social transfers (other than
pensions) in household income by income decile % SORS; HBS
policy
(disaggregated by household types)
3.1.4. % total realized social transfers (excluding Ministry in charge of social
% HBS; SORS
pensions) distributed to population at risk of policy
200
poverty
MEASURE 3.2: Advancing the efficiency of social protection and social inclusion through innovations
Baseline Target
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
3.2.1. Ratio of beneficiaries covered through the
CB services (compared to the total social welfare Ministry in charge of social
% and data from relevant
beneficiaries at the local level, disaggregated by policy
institutions; SORS
gender, ethnicity, and area)
% of
employed
working in
social
Ministry in charge of labour
3.2.2. companies 0% 1% SORS data
and employment
comparing to
the total
number of the
employed
3.2.3. Accreditation and licensing system Ministry in charge of social
Yes/No No Yes and data from relevant
established policy
institutions
3.2.4. Share of unemployed social protection
Evidence-based
beneficiaries registering with NES as a result of the
Increa reports. data by Ministry in charge of social
“mix activation” measures (Disaggregate by %
se % relevant institutions; policy
gender, age, education, ethnic affiliation, forced
LFS, NES, SORS
migrant status and with reference to PwD)
Priority 4: Improving the health status of the population by strengthening the accessibility, availability, affordability and efficiency of healthcare services
Baseline Target
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
regular national public
4.1 Mortality rate (SDR)274 of the population from
No. 28.43 18.56 health reports, WHO Ministry in charge of Health
ischemic heart disease, age 0-64 per 100,000
data for Serbia
4.2 Mortality rate (SDR) of the population from 167.9
No. 204.18 health reports, WHO Ministry in charge of Health
malignant tumours, all ages per 100,000 7
data for Serbia
4.3 Infant mortality rate per 1000 live births No. 6.3 4.06 health reports, WHO Ministry in charge of Health
data for Serbia
MEASURE 4.1: Reducing the prevalence of non-communicable diseases through further implementation of prevention programmes aimed at decreasing the associated risk factors
Indicator Unit Baseline Target Means of Verification Institution in charge
274 Standardised death rate
201
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
4.1.2 Mortality rate (SDR) from smoking related 194.6
No. 300.47 health reports, WHO Ministry in charge of Health
causes per 100,000 6
data for Serbia
4.1.2 Regular, daily smokers, age 15+ regular national public
% 26.2 23 Ministry in charge of Health
health reports
4.1.3 Proportion of the population that is obese,
275 regular national public
% 23 17 Ministry in charge of health
age 20+ health reports
4.1.4 Proportion of adult population that exercises regular national public
% 25.5276 Ministry in charge of health
3 or more times per week health reports
MEASURE 4.2: Strengthening healthcare management capacities and introducing new technologies in order to provide better conditions for treatment and rehabilitation and to improve the efficiency of
the healthcare system
Baseline Target
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
4.2.1 Proportion of surveyed population that is regular national public
satisfied with the amount of time that a primary % 80 health reports and Ministry in charge of health
care physician devotes to talking with the patient surveys
4.2.2 Number of medical doctors per 100,000 332.6 regular national public
No. 308.76 Ministry in charge of health
citizens 8 health reports
4.2.3 Waiting time of more than 3 days for an
% 10.4 health reports and Ministry in charge of health
appointment with doctor of general medicine
surveys
275Most recent WHO data available was from 2008.

276 Most recent Batut data available was from 2006.
202
According to the ISDACON database, the Human Resource and Social Development sector has received substantial
assistance from the international donor community over the period 2007-2012, with estimated total disbursement amounting
to 425 million EUR Largest and most important donor in the sector has been the EU with total disbursement within IPA
component I amounting to 213 million EUR in the period 2007-2013.
In the education sub-sector, assistance under IPA I has been focused on strengthening institutional capacities and support
to VET reforms and development of the National Qualifications Framework, design and implementation of quality assurance
systems in primary and secondary education (and VET), support to early inclusion of vulnerable children in the education
system, establishment of a system of “second chance” – functional elementary education for adults, and improvement of the
quality of higher education teaching and infrastructure. In the social inclusion sub-sector, assistance under IPA I has been
directed to support the integration of refugees, internally displaced persons (IDPs) and returnees through housing and
income generation support and legal aid. The assistance has also targeted the social inclusion of vulnerable groups by
strengthening national and local institutions that oversee and provide community-based social services for different target
groups (including children and persons with mental illness and mental disability). IPA has provided support to health care
sub-sector reforms in Serbia through support to the development of quality standards for health care, improvement of
Emergency Medical Service, support to the implementation of the hospital information system, design of the treatment of
infectious waste in the primary health care, implementation of organised screening programmes for breast cancer, cervical
cancer and colorectal cancer, development of palliative care and improvement of the system for prevention of drug abuse in
line with EU standards. For employment and labour market policy sub-sectors, assistance under IPA 2012 supported the
National Employment Service (NES) to upgrade analysis and forecasting of labour market trends, improve efficiency in
employment policies towards vulnerable groups and monitoring and evaluation of active labour market programmes. IPA
2013 supported efficient and effective matching of supply and demand and overall functioning of the labour market, with
special emphasis on the inclusion of the PWDs; community services in the area of education and social welfare at the local
level in order to promote implementation of the social inclusion and poverty reduction policies; and further development and
realisation of sustainable and inclusive models for resolving housing and improvement of physical infrastructure in selected
Roma settlement.
Multi-Beneficiary IPA funds for the Western Balkans and Turkey have enabled Serbia to participate in numerous
programmes since 2007, including the following in the HRSD sector: Erasmus Mundus Actions 1 and 2 (2007-2013) are
building understanding and mutual enrichment between the European Union and Serbia by promoting the mobility of
students and academic staff in higher education; Tempus (2007-2012) has achieved positive results in terms of encouraging
reform and the process of modernisation in individual universities, faculties and departments in Serbia, particularly with
regard to exposing university staff to higher education institutions in an EU environment and to implementing the Bologna
process; Regional Support for Inclusive Education (2012) will endeavour to promote inclusive education and training through
awareness-raising, mutual learning and capacity building measures; Youth in Action has supported non-formal education
and youth by supporting exchanges of young people and those active in youth work and youth organisations as well as
initiatives that reinforce young people’s mutual understanding, sense of solidarity and tolerance (2007-2013); and the
Regional Housing Programme (2012-2013), as an integral part of the Sarajevo Process consisting of four Country Housing
Projects in the partner countries of Serbia, Bosnia-Herzegovina, Montenegro and Croatia, that will contribute to resolving the
protracted problem of the remaining refugees and IDPs by providing long-lasting, sustainable housing solutions.
Other donors, namely the World Bank, EIB, UN organisations (UNDP, ILO, UNICEF, IOM, etc.) and bilateral aid from
Austria, Germany, Italy, Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom, have been supporting
reforms in the HRSD sector. VET reform is complemented by bilateral support from the German government and Austrian
government, while the establishment of the teacher training system is supported by the Swiss government. The Norwegian
government supports the improvement of regulatory mechanisms in social welfare. Support has been provided through the
ILO, UNDP and Spanish and Italian Governments, which will build the capacity of labour market institutions in designing,
monitoring, implementing and evaluating active policies on youth employment and to establish a Youth Employment Fund.
The World Bank’s Delivery of Improved Local Services programme will increase the capacity of institutional actors and
beneficiaries to improve access to health, education and social protection services in a decentralizing environment, while
improving the efficiency, equity and quality of local delivery. The joint DfID/NMFA programme, for the implementation of the
Social Welfare Development Strategy supported local social planning: 28 LSG strategies (out of which two are inter-
municipal cluster strategies) with budgets and action plans; four large city strategies with action plans and budgets; 37
community-based social services (out of which 6 are inter-municipal); 31 LSGs with allocated budget resources for the
implementation of local strategies.
The Report on the “Evaluation of the effectiveness and efficiency of development assistance to the Republic of Serbia per
sector,” assesses relevance of the assistance to the HRSD sector as very high. The overall conclusion related to the
203
effectiveness and efficiency is that it is medium, while the overall rating of the impact and sustainability is low. As
recommended in the Report in the employment and labour market sub-sector, support should be geared towards the
implementation of ALMPs with the aim of reaching as many unemployed as possible with well-targeted measures taking into
account the needs of individuals and specific groups in the local economy. Focus should be on combining employment,
education and social inclusion policies to bring more people to the labour market. However, there is also a need for a more
strategic approach to employment policy by linking it to other policies at the national level (FDI promotion, R&D, SME
development). Social dialogue should be given higher priority and issues of informal economy. In the education sub-sector
and VET, further support should be given to the development of an effective in-service teacher training for all levels. A
financially-viable system for updating/raising the skills and competences of teachers in line with modern standards is still to
be developed and implemented. There is also a case for applying the principles and methods of inclusive education to the
VET sector. Finally, a concerted effort to establish a process of life-long learning is needed. Regarding social inclusion
sub-sector, support should build on the results and best practices of pilot projects to reach out to new target groups and
address their needs with personalized measures and advice. The emphasis should be on labour market integration. The
long-term goal should be to achieve the progressive integration of employment, social and health services through the
development of joint national standards and financing mechanisms. Serbia should also strengthen its capacity to monitor
and evaluate social protection expenditures. Regarding the healthcare system, the priority should be to complete the reform
of the payment system and improve the efficiency of existing health expenditures277.
277 The EUD sector evaluation is under preparation.
204
B9 AGRICULTURE AND RURAL DEVELOPMENT SECTOR
B9.1. Scope and background of the sector of Agriculture
The agricultural and rural development sector encompasses agricultural production, forestry, fisheries, food safety, animal
welfare, and rural development. The importance of agriculture for the Serbian national economy is high, which is confirmed
by data on the sector's share in GDP, employment and exports (Table B9. 1). This state of affairs is the result of two basic
factors; firstly the rate of restructuring in other sectors has been slow, resulting in low investment activity and consequently
low employment opportunities in non-agricultural sectors; secondly, the high availability of rich natural resources for
agricultural production in Serbia278.
The structural features of the agro-food supply chain in Serbia point to a dual structure in every part of the chain.
Serbia's farm structure is complex, ranging from small subsistence agricultural households and small semi-subsistence
farms to large family farms, as well as privatized large enterprises with a mixed ownership structure. At the primary level,
farms are highly fragmented, with a large part of the farm holdings being (semi-) subsistence. Some recent research (LSMS,
2008, WB and RSO) estimated that about 60% of farm holdings do not have surplus production to sell or sell on the market
only infrequently. By contrast in the northern part of the country there are large farms which are well equipped and whose
production is organized on the principles of modern management. However, according Census of Agriculture 2012279, farms
above 20 ha represents 2% of the holdings and use over 30% of the UAA (UAA - Utilised Agricultural Area). Regional
differences in the structure of land, farm size, yields and production, are large and arise from heterogeneous natural
conditions. A large number of small to very small firms dominate both the upstream and downstream industries. Next to
these there are only a few medium to large scale operators. The structure of the food processing industry varies across
branches. Nevertheless, only a few companies account for a major share of turnover. The number of enterprises registered
in the food, drinks and tobacco sector (NACE 15 and 16) is about 3,300 280. The number of enterprises has increased since
the mid-2000s. Around one third of this number can be found in the meat and bread manufacturing.
The last decade was characterized by substantial annual fluctuation of agricultural production (which generally
remained lower than in the pre-transition period). Agricultural production in Serbia is of a typically extensive nature and
strongly influenced by the weather conditions, especially droughts (Table B9.1). Yields and production vary considerably and
are still lower than the yield of the pre-transition period. Yields are close to regional averages and significantly below the
EU27. In terms of the value of agricultural production the most significant part is crop production, within which cereals
dominate. Livestock production is steadily declining and reached its lowest level in decades.
A large part of the agricultural sector is not integrated in the agro-food supply chain, either by contracting or by (any other
means of) sustainable commercial relationships. Home consumption and direct sales of food (the informal economy) is
highly significant in Serbia. The position of small scale operators is critical as they have to comply with the requirements of
an increasingly demanding retail chain. These requirements are driven by the coinciding forces of increasing consumer
awareness and public policies aiming at establishing the legal framework for food safety and quality standards. Even the
larger enterprises have difficulties in adapting to EU requirements, given the limited number of licenses for export to the EU
within the meat and dairy sectors. Therefore, a major challenge for the farming and processing sector is to meet the growing
number of EU requirements and standards all along the food supply chain. Failure to meet such requirements may result in
deceasing exports and increasing import penetration.
A number of associations at the national, regional and local levels are involved in the development of agriculture and rural
development. Networking of producers' associations of different profiles of activity has started, but a central institution at the
national level does not yet exist. Many of such associations keep a low profile and are only occasionally present in public
decision making processes.
Crop production is a high and increasing share in Serbia's agricultural production, with maize, wheat and fruit as major
crops. Maize is Serbia's biggest single commodity with an average production of 5.6 million tonnes during last decade,
which was produced on approximately 1.2 million ha. Fruit and vegetable production accounts for about 12% of the value of
agricultural output, and positive trends were recorded in the past years. In this sector significant progress has been made in
the improvement of standards in primary production and processing and in the linkages between them. The industrial crop
production (oilseeds and sugar beet) accounts for 7% of the total value of agricultural production of Serbia. Opening of the
foreign market, budgetary support, export subsidies and privatization of the processing capacities contributed to fast
278Berkum Siemen Van and Natalija Bogdanov (2012): Serbia on the Road to EU Accession: Consequences for Agricultural Policy and the Agri-food Chain,
CABI, Oxfordshire, UK
279 Statistical Office of the Republic of Serbia (2013): Census of Agriculture 2012 in the Republic of Serbia – First results, Belgrade
280Government of Republic of Serbia (GoRS), Answers to the Questionnaire of EC, chapter 20, 2011: 448-449
205
revitalization of industrial crop production. More than in other segments of the food chain in Serbia, this sector has set up a
trade chain with a positive impact on the growth of the area cultivated and of total production.
Livestock's share in the sector's total agricultural production value declined, largely because of developments in the meat
sector, where the contribution of both pig meat and beef production shows a downward tendency in recent years. Despite its
importance to the rural and domestic economy, the number of all livestock has been decreasing over a last two decades.
During the period 2000-2009 the number of cattle decreased from 1.25 million head to 1.00 million head. The decline
particularly occurred in the milking cow herd, of which the numbers fell from 750,000 animals in 2000 to less than 500,000 in
2012. The main reasons for the reduction of livestock production were the decline in consumption, fluctuating feed prices
and a limited external market. In recent years there have been substantial efforts by the state to revitalize livestock
production. However, next to the unfavourable economic situation for cattle breeding, the privatization process resulted in a
further reduction of the number of cattle.
Serbia has a potential for the growth of the currently export driven organic farming sector. The highest growth potential is
mainly in rural areas where conventional production is not competitive or where there are no nearby sources of pollution.
Furthermore, during the past two decades Serbian farmers could not afford synthetic inputs, which has resulted in low levels
of prohibited residues and implies that in Serbia conversion periods are shorter than in the most developed countries.
However, the potential for growth of this sector is limited by the reduced agriculture budget for organic production, capital
constraints and a poor supply chain organization, as well as the lack of professional counselling in this sector, which leads to
inefficient production, processing and marketing.
Serbia is in the process of shifting from an analogue to a digital cadastral register. The digital real estate cadastre should
solve numerous problems (archiving, maintenance, distribution of the data), and contribute to a more reliable, efficient and
comprehensive database on land use. Up to now, the land consolidation has been carried out on 1.879 million hectares of
agricultural land, or about a third of the agricultural area in Serbia. Land consolidation covers most of the countryside in
Vojvodina (60% of all territory in Vojvodina), followed by Central Serbia (about 9%) and least in Kosovo (5%). In the whole
territory of Serbia, a single record of fixed assets was established on an area of about 87% of the territory 281.
Serbia's territory is very rich in biodiversity. The main threats to existing biodiversity which result from agricultural
activities are natural habitat destruction, over-exploitation of natural resources and the effects of overusing agro-
machinery and agrochemicals, although the latter is rare in Serbia, and also a major problem could be the abandonment of
traditional agricultural practices which holistically contribute to the preservation of agro-ecosystem. Degradation (e.g. water
and soil pollution) or exhaustion (e.g. overgrazing) of natural resources and the related biodiversity loss are examples of the
negative externalities of agriculture production, by contrast traditional harvesting and grazing practices in Serbia as well as
the introduction of a set of agro-ecological measures represent an opportunity to support development and preservation of
rural areas within the limits of the natural resources available. Serbia has demonstrated its interest and commitment to
protect the environment and the country's biodiversity and rural areas through the ratification of international agreements
and their adoption into the national legal framework. However, some EU directives in the field of environment (e.g. Nitrates
Directive) have not been implemented yet. In the programme for financial support to agricultural production in Serbia, cross-
compliance measures with environmental, animal welfare, public, animal or plant health standards do not yet exist.
Generally, Serbia is facing difficulties in implementing policies and strategies for adequate environmental protection. Besides
a lack of financial resources, the national legal framework is of recent date and lacks appropriate institutional structures for
implementation and enforcement of regulations, especially in the sense of devising the Republic of Serbia National agro-
ecological programme. The central collection of data and monitoring of environmental indicators is either completely missing
or is fragmented among diverse projects, thus making their systematisation and opportunity for in-depth analysis more
difficult. Finally, investments in agriculture and rural development through a series of agro-ecological measures, as well as
irrigation systems, drainage and flood protection, or for waste management systems (in slaughterhouses) would contribute
much to reaching environmental protection targets. However, the existing economic instruments for encouraging farmers
and other actors in the agri-food supply chain to be environmentally responsible are too weak or still inaccessible to an
average farmer to promote the necessary investments in sustainable environmental and natural resource management.
Although much EU legislation and many procedures have been transposed into rules and guidelines for all participants in
the Serbian agri-food chain, legislative and administrative changes alone do not guarantee proper implementation of the EU
veterinary and phytosanitary acquis. The implementation of regulations with the rigour and expertise needed for them to
function requires appropriate institutions and effective organizations, and sufficient time to build up necessary expertise.
Twinning projects focusing on capacity improvements in these areas have been started recently. Yet, the complexities are
high, while inspectors, extension officers and farmers all need to be trained; building up the capacities to implement the
regulations on animal and plant sanitary control just takes time. It should be noted that there are important differences
between the plant and animal sectors. Currently, Serbia's animal sector is very little involved in international trade since it is
envisaged that animal products would not be competitive on the EU market. However, even with small export flows to the
281
Ibid.
206
EU, the country's health status should be indisputable and up to EU standards in order to maintain the confidence of trading
partners in the EU market for animal products. The small-scale and fragmented structure of Serbia's agriculture - at the
primary, processing and trade levels- makes monitoring and control on animal and plant health diseases difficult.
Furthermore, investments in production facilities and methods that help to achieve higher standards fall short of what is
necessary in order to comply with EU requirements.
Rural areas in Serbia are highly diverse in economic, social and demographic terms, due to differences in their geo-
morphological characteristics (mountainous, hilly, plain areas), composition of population, economic structures,
environmental conditions, transport accessibility, and employment and income possibilities. Rural regions in Serbia cover
85% of the total territory, with the 55% of the population living in rural areas generating some 40% of the country's gross
domestic product (GDP)282.
During the last two decades a number of social, economic and political changes affected population numbers and
structures. In total, during the period 2002-2011, the population in Serbian rural areas declined by 10.9% compared to an
overall 4.1% decline in the country's total population 283. Unfavourable demographic trends have resulted in a negative
education structure of the rural labour force, whose performance cannot meet the needs of the present labour market.
Unfavourable demographic trends are also determined by gender imbalances in rural areas. The share of the female
population in the reproductive and working age (20-59 years) in the total rural population is 48%, which is lower than the
equivalent figure for the urban population (52%). The decline of the number of women in the rural population leads to falling
birth rates causes changes in the structure of agricultural production (e.g. reduction of production of vegetables, flowers and
dairy products) and reduces the possibility of diversification of farm incomes through food processing.
Modest knowledge and lack of additional skills characterizes the rural population in general, confirmed by LSMS 2007
data (LSMS – Living Standard measurement Study), according to which 97% of rural population did not attend additional
training and education courses, and 54% have no special knowledge or skills. As a result of poor education and low training
levels, the knowledge and skills of the rural labour force are inadequate for the requirements of modern technology and
adversely affect the overall capacity of the labour force in rural areas. The low quality of the workforce can be considered as
one of the factors hampering economic development in rural areas because investors tend to avoid places without a high-
quality and skilled labour force.
The industrial structure of Serbia's rural areas is highly dependent on the primary sector, especially on agriculture,
and is still based on the depletion of natural resources. The main characteristics of Serbia’s rural economy are that it has: (i)
a high share of agriculture, the food industry and mining; (ii) a low participation of the tertiary sector in the GDP (iii) low
levels of entrepreneurship. These characteristics reflect the underdeveloped structure of the rural economy.
Overall poverty in Serbia is strongly dependent on the characteristics and intensity of rural poverty. Regional differences in
rural poverty rates are significant and follow the relationship that exists between regions in terms of overall poverty: the most
unfavourable situation being in southern and eastern Serbia, and the more favourable being in Vojvodina.
Rural infrastructure demands significant investments for the establishment of new systems and for the revitalization and
expansion of existing systems. Adequate rural infrastructure is an important factor in improving the quality of life for the rural
population and it also has a stimulating effect on potential investors. Municipal governments have the greater part of
administrative responsibility for infrastructure investments; however, local government has insufficient financial resources in
relation to the scope of investments needed. .
There have been large fluctuations in level and structure of, budget support to the agricultural sector in recent
years. Over the last decade there has been no stability in the total budget for agricultural support measures, which is an
indication that policy is still in transition. Financial resources change depending on the annual state budget and the share of
agriculture it contains (from 5% of total budgeted in 2004 to 2.5% in 2010). The model of agricultural support applied in
Serbia is different from EU practice within the Common Agricultural Policy (CAP) and will have to be adjusted in the future.
Adjustment will require new (accredited) institutions, greater access and transparency of support for a wider range of users.
Support for rural development has become more actively implemented since 2004. Most of the funds have been used to
support improving competitiveness of farms, and the basic mechanism has been the use of subsidised interest rates on
loans for farm mechanization and equipment and the allocation of grants for village and agriculture development. There are
some elements of support which are based on the model of the EU directive on ‘Less Favourable Areas’(LFA) but such
support has been applied without clearly defined rules. In recent years there have been some attempts to deal with some
sensitive social issues through support for rural development, but this practice was subsequently abandoned (e.g. support
for Roma population in rural areas, refugees, non-commercial farms, agricultural cooperatives and other forms of business-
economic and interest-based associations of manufacturers).
282 National Programme for Rural Development 2011-2013, Official Gazette of the Republic of Serbia, No.15/11. In this document the OECD definition of
rural areas has been used. Official results of the 2011 Census indicate that in Serbia there is about 40% of the rural population.
283 Statistical Office of the Republic of Serbia (2011): Census of Population, Households and Dwellings in the Republic of Serbia – First results, Belgrade
207
With regard to preparedness for LEADER, there has been strong bottom up planning facilitating and developing the
formation of local partnerships and preparing embryonic groups for the selection process as pLAGs (potential Local Action
Groups). It is expected that at least 15-20 pLAGs will meet the criteria of selection. However, as yet, such groups have no
experience in generating and programming suitable project ideas. This can only happen in 2013 if some seed funding is
made available from the national budget, as has been advocated, to enable these groups to put into practice much of the
training and facilitation that has been provided. No institutional mandate has been built (the latest plans for a ‘Leader
Advisory Board’ have failed owing to the lack of commitment and decision by the Ministry for a national inter-agency forum
on rural development, as did the earlier plans for a ‘National Leader Group’). Neither have the mechanisms been developed
within DAP for the development of procedures for the implementation of LEADER measures. This means that there remains
much work in building the LEADER institutional framework, and planning and lobbying for timely implementation of LEADER
in the period 2014–2020. There is also a need for further technical support to ensure there are fully developed LAGs able to
prepare and implement measures.284
Some progress has been made in the area of institutional building and preparation of strategic documents and legislation
related to the use of pre-accession EU funds. This is particularly so for the agriculture and rural development sector
operating in a context of adapting to the EU acquis, addressing the defined requirements related to establishment of
structures and systems required for managing the CAP, managing rural development activities and establishing all IPA Rural
Development (IPARD) structures. Nevertheless, the major constraint remains the deficiency of human resources. Improving
human resources in the administration should have priority, as well as better coordination between the various governmental
bodies.
EC 2012 Progress Report for Agriculture and Rural Development (Chapter 11) concludes that progress has been made in
the area of agriculture and rural development and with regard to agricultural statistics. IPARD structures and resources have
advanced well, but additional capacity building is still essential, while development and alignment with the EU acquis
remains at an early stage. In the area of food safety, veterinary and phytosanitary policy (Chapter 12) Progress Report
states that some progress was made but further strengthening of the administrative capacity of the institutions involved in
monitoring food chain safety is needed. Efforts are needed for upgrading of food and feed establishments, the management
of animal by-products and genetically modified organisms. Overall this sector has been assessed as moderately advanced.
With regard to Fisheries (Chapter 13) Progress Report concludes that some progress can be reported with the signing of
some international agreements. However, the collection of market data needs to be improved and a national catch
certification scheme for imports and exports of fishery products needs to be established. Overall, preparations in the area of
fisheries are moderately advanced.
Table B9.1. Key Agricultural Statistics
Units 2005 2006 2007 2008 2009 2010 2011
Gross value added of the agriculture, forestry, hunting and fishery sector (A)
- GVA (at current prices) mill. EUR 2.097,7 2.261,8 2.524,8 3.003,1 2.320,4 2.378,9 2.788,0
- share in GVA of all activities % 12,2 11,4 10,4 10,7 9,3 9,9 10,4
Employment in the agriculture, forestry, hunting and fishery sector (A)
- number 000 619,6 530,2 540,5 696,9 614,1 522,7 466,2
- share in total employment % 23,2 20,5 20,8 21,4 23,8 21,9 21,0
Trade in food and agricultural products
- export of agri-food products mill. EUR 713,7 991,9 1.217,8 1.327,9 1.380,6 1.672,5 1.919,6
- share in export of all products % 20,27 19,44 18,93 17,87 23,15 22,62 22,74
- import of agri-food products mill. EUR 622,0 721,1 604,4 758,4 710,7 896,4 1000,5
- share in import of all products % 7,4 6,9 4,3 4,6 6,7 7,2 7,0
- trade balance in agri-food products mill. EUR 91,7 270,8 613,4 569,5 669,9 776,0 919,1
Share of food, beverages and tobacco
% 25,6 23,6 21,9 22,5 22,6 22,3 :
in total household’s expenditures
Change in volume of Gross Agricultural Output (GAO)
- Total % -3,4 -2,6 -11,7 13,7 1,3 1,1 -1,1
- Crops % -5,7 -3,0 -18,0 23,0 3,6 1,1 -1,8
- Livestock % 1,1 -3,0 0,0 -3,0 -3,5 1,1 0,2
Share of crop and livestock output in total Agricultural Goods Output
- Crops % 67,3 63,7 62,0 68,7 69,3 68,4 68,4
- Livestock % 32,7 36,3 38,0 31,3 30,7 31,6 31,6
Source: Experts elaboration based on Statistical Office of Republic of Serbia
284“TechnicalAssistance for Evaluation of Agriculture and Rural Development Sector Implemented and Financed by IPA Programme and Others Donors in
the Republic of Serbia”, Evaluation Report, January 2013.
208
B9.2. Strategic Framework

following four priorities for the sector have been identified:
(i)Increasing competitiveness of the agri-food sector – is of great importance for the future of this sector, with respect of
integration processes of the country into international market (WTO accession, Stabilization and Association Agreement with
EU and joining to CEFTA) and necessary liberalization and opening of the market for foreign competition. Increasing
competitiveness will lead in the long term to an increase in the standard of living of the population. Increased
competitiveness of agriculture, food processing and forestry requires a focus on farm structures, quality standards,
marketing of agricultural and food products, markets for land and credit, supporting the formation of farmers’ associations;
increasing the area under forest through supporting forestry activities and offering help to afforested land on which trees can
be raised economically and in an environmentally sustainable manner. Only through increasing competitiveness can Serbian
farmers survive and progress in the highly competitive EU internal market.
(ii)Sustainable rural development – improving rural development shall be achieved by stimulating employment and
economic growth and rising living standards in rural areas, with special benefits for depopulated border and mountain areas.
Particular attention shall be paid to elderly agricultural workers and other vulnerable categories. So, focus is also on the part
of rural population which is not living from the agricultural income only but, also form the money earned in non-agricultural
activities performed in rural areas. In reality, these are activities which lead the improvement of life and entrepreneurship in
villages, and most often include: investment in means of agricultural production and processing, education and training of
the rural population, developing rural tourism, promotion of traditional knowledge and cultural values, protecting the natural
environment and agro-eco system, etc. Nevertheless, supporting the formation of regional and local institutions to support
rural development; advancing cooperation between the Ministry of Agriculture and local self-government institutions with the
goal of supporting rural areas; increasing investment in rural development; focusing support for diversification of activities in
rural areas are inevitable elements of sustainable rural development. Forestry also represents an essential part of the effort
that is being put into the recovery and development of rural areas.
(iii) Improving food safety, animal health and welfare and plant health according to EU requirements–Achievement of
this priority will surely lead to: improving consumer safety, greater profitability and competitiveness of the food industry,
increasing exports by fulfilling the requirements of importing countries, substituting imported articles by domestic products of
a similar level of safety, reducing control costs, and thus cheaper production, ensuring international integration (membership
of EU and WTO).Formation of a comprehensive, coordinated and integrated national surveillance system for plant and
animal diseases is the basis for preserving the health of animals, plants, people and the natural environment, and for the
production of safe food. The biggest responsibility for lies within the institutions which are responsible for creation of legal
regulations and advancing the capacity of the inspection services responsible for securing that the food is entirely safe. At
the same time it is necessary that all participants in the chain accept their share of responsibility in achieving this goal. The
scientific and research organizations and advisory services also have an exceptionally important role in education, raising
awareness and spreading information throughout the whole chain. Various structural measures in the direction of supporting
investments in modern buildings which ensure a higher level of food safety and introduction of standards,: establishing a
system of reference laboratories in the chain of food safety; full implementation of strategies for integrated border
management, especially in the area of competence of the veterinary and phytosanitary inspectorates and introduction of
plant passports are also necessary actions to be dealt with in order to secure achievement of this priority.
(iv) Enhancing agro-environmental and biodiversity protection - Given the determination of Serbia to become a
member of the EU, it is essential to create new and harmonize existing standards with EU policy, and to define the basic
direction of policy of protecting the environment from the negative effects of agricultural production. The priority is reliant on
identification of specific threats and pressures on biodiversity from the agriculture and forestry sector; enlargement of
organic production which is of importance for the production of high-value and quality food, support for maintaining genetic
resources of autochthonous breeds/cultivars due to the preservation of biodiversity and genetic variation. Autochthonous
breeds of domestic livestock are a part of the cultural and historic inheritance and a source of genetic diversity. Forests have
an irreplaceable role in mitigating anthropogenic climate change, connected with the absorption of carbon. It is necessary to
pay attention that the capacity of forests in this respect is continually increased, and finally, introduction of a series of agro-
ecological measures contributing to the preservation of complete agro-ecosystems (high nature value farmlands) in a wider
sense is an irreplaceable activity, crucial to preservation of unique sites and habitats of plants and animals, in accordance
with the European regulation (NATURA 2000).
The current sector strategic framework and the proposal of a new agriculture and rural development strategy (2014-2024)
are based on principles of sustainable development and use of natural resources and gradual harmonization with the EU
policy framework. The vision within the new strategy is that agriculture should become a sector whose development is based
on knowledge, modern technologies and standards, that produces competitive and innovative products and ensures a
209
sustainable and stable income for farmers, while natural resources, the environment and the cultural heritage of rural areas
are used in a way to make rural areas tempting places to live and work.
The challenge in achieving these national priorities is that they will require the integration of a wide range of actions across
the whole sector. The analysis carried out suggests that to focus on only one or two of these priorities at the expense of the
others will create problems within the sector, rather than providing sought-for solutions.
NAD Priority 1 ‘Increased competitiveness of agribusiness sector and created conditions for the sustainable growth of
farmers' income ’is in line with Sector Priority (i), listed above, and has same objective i.e. to achieve a more competitive
agri-food sector. The NAD envisages attainment of this priority by focusing investments on agricultural production
/processing and on improving applied research / transfer of knowledge.
NAD Priority 2 ‘Improved quality of life of the rural population and attractiveness of rural areas’ will contribute to the
achievement of Sector Priority (ii) above, by focussing on the creation of conditions for improving rural infrastructure and by
supporting the diversification of rural economies with the creation of new jobs. The priority also addresses opportunity for
rural community development by further development of pre-LEADER initiatives and supporting wider implementation of
agro-environmental actions.
NAD Priority 3 ‘Strengthened administrative capacities for alignment of agriculture (CAP Pillar 1) and rural development (IPA
RD & CAP Pillar 2) policies and institutions with EU acquis’ is considered as being horizontal / cross-cutting and is in line with
the four Sector Priorities listed above.
NAD Priority 4 ‘Improved standards and systems for food safety, plant health, animal health and welfare (with ref. to
alignment to acquis)’ will enable setting out standards and systems in the areas of food safety, veterinary and phytosanitary
control, animal welfare while building relevant capacities for their implementation, and is in line with Sector Priority (iii)
above.
Regional and transnational strategies
EU Strategy for the Danube Region promotes ecological and socio-economic development in the Danube region and the
Agricultural and Rural Development Sector priorities and measures are correlating with Pillar 1, Connecting the Danube
Region, aiming to: improve regional/ local cross-border infrastructure and the access to rural areas; set -up a cooperation
mechanism of cities and villages in the region with the view to commit to greenhouse gas emissions reduction, exchange
best practices and test pilot projects on energy efficiency and renewable energy; and build on the renewable energy
cooperation of rural areas. The Agricultural and Rural Development Sector priorities and measures are also correlating with
Pillar 2, Protecting the Environment in the Danube Region aiming to: foster and develop an active process of dialogue and
cooperation between authorities responsible for agriculture and environment to ensure that measures are taken to address
agricultural pollution, and establish buffer strips along the rivers to retain nutrients and to promote alternative collection and
treatment of waste in small rural settlements. Serbia adopted a governmental decision in 2010285, which defines its own
priority pillars for the EU Strategy for Danube Region, aiming to achieve objectives by facilitating economic development and
strengthening regional cooperation and partnership in the Danube region as well as by creating a knowledge-based
economy through cooperation in the Danube region and the active role of science in achieving the objectives of the
Strategy. The Agricultural and Rural Development Sector Priority 2 ‘Improved quality of life of the rural population and
attractiveness of rural areas’ will contribute to the priority area- Economic development and strengthening regional
cooperation and partnership in the Danube region, under Pillar 3, Socio-Economic Development, by focussing on
improvement and development of rural infrastructure, diversification of rural economy and creating new off-farm employment
opportunities and strengthening local community initiatives.
The European Partnership with Serbia from 18 February 2008 (2008/213/EC)(under: Sectorial policies – Agriculture)sets
out a number of short and medium term priorities, including: (i) strengthening the administrative capacity needed to
formulate and implement agricultural and rural development policy;(ii) updating legislation and strengthening implementation
and controls in the areas of food safety and veterinary and phytosanitary issues;(iii) expanding animal identification and
registration to all relevant species;(iv) upgrading veterinary, phytosanitary, wine and sanitary laboratories, inspectorates and
controls at external borders). The Stabilization and Association Agreement (Title VIII, Cooperation policies, Article 97 –
Agriculture, and the agro-industrial sector) states that cooperation shall be developed “in all priority areas related to the
Community acquis in the field of agriculture, as well as veterinary and phytosanitary domains”, and also with the aim of
“modernising and restructuring the agriculture and agro-industrial sector, in order to reach community sanitary requirements
and to improve water management and rural development as well as to develop the forestry sector in Serbia”. The same
article also determines that “supporting the gradual approximation of Serbian legislation and practices to the Community
rules and standards” should be undertaken.
285
210
Preferential access to the main markets is possible through the Stabilisation and Association Agreement with the EU (SAA);
bilateral Free trade Agreements; The European Free Trade Association (EFTA); the Central European Free Trade
Agreement (CEFTA); and the General System of Preferences with the USA (GSP).
Under the SAA which was signed with the EU in 2008, Serbia will phase out tariffs on industrial and most agriculture
products from the EU by 2014, whilst receiving unlimited duty-free access to the EU market for all basic agricultural products
with the exceptions of baby-beef, sugar and wine, for which duty-free quotas are applied. Implementation of the agreement
began in January 2009 under Serbia’s unilateral ‘Implementation Agreement’ pending ratification of the SAA by all EU
Member States and the European Parliament which is expected in 2013. The established quotas are for 180 000 tonnes of
sugar and sugar and 8,700 tonnes of baby-beef. As regards the reciprocal concessions for wine, Serbia was given a duty-
free Tariff Rate Quota (TRQ) of 63,000 hl, of which 53,000 hl must be quality wine and 10,000 hl bulk wine. The Community
obtained an annual duty-free quota of 25,000 hl for quality wines. Moreover, trade liberalization within the Russia,
Belorussia, Turkey and Kazakhstan has been achieved through bilateral free trade agreements, in which significant
agricultural concessions have been approved. Trade in agricultural products is regulated by separate agreements with each
of EFTA members (Switzerland, Norway, Iceland, and Liechtenstein), providing for mutual concessions for specified
products.
Serbia joined the Central European Free Trade Agreement on 6 September 2007. For agricultural products, as of the day
the Additional Protocol to the CEFTA Agreement came into force (15 December 2011 for Serbia), the Republic of Serbia to a
greater extent, and in some segments fully liberalized mutual trade with all CEFTA Parties. . This liberalisation is important
for the CEFTA region as it seeks to benefit from the significant opportunities which exist in agricultural trade and subsequent
improvement in the competitiveness of the regional economy. Serbia has completed multilateral talks for WTO membership
and reached 12 bilateral agreements with those members that required them. As part of its preparations for WTO
membership, Serbia still needs to conclude trade arrangements with the U.S., Ukraine, Brazil, India and the Dominican
Republican in terms of trade in certain agricultural products.
Currently Serbia has active international agreements on scientific and technical cooperation in the field of agriculture with,
the Republic of Tunisia, the Republic of Argentina, the Republic of India, Montenegro, Bosnia and Herzegovina, Macedonia
the Federative Republic of Brazil, the Islamic Republic of Iran, the State of Israel and some other countries. One of the
reasons for the institutionalization of such cooperation through international agreements is large number of existing and
future projects between Serbia and the other signatories of these agreements, in the field of agribusiness, from veterinary
medicine to water resources, through cooperation in the field of phytosanitary issues, analysis of agrarian policy, as well as
agricultural extension services. In this way, formal dialogue becomes possible by adequate monitoring of existing projects
and the timely identification of new opportunities for cooperation. Also, this kind of cooperation aims to facilitate scientific
cooperation, between the countries in the field of agriculture, between the relevant institutions and the transfer of knowledge
from these countries to our country.
In addition Serbia is a signatory to the following conventions: the European Convention for the Protection of Pets; the
International Convention for the Protection of New Varieties of Plants; the European Convention for the Protection of
Vertebrate Animals Intended for Experimental and other Scientific Purposes; the Convention on the Protection and Use of
Trans-boundary Watercourses and International Lakes.
B9.3. EU Agenda
Agriculture plays a key role in ensuring smart, sustainable and inclusive growth, identified by EU 2020 strategy which five
objectives and targets (employment: 75% of the 20-64 year-olds to be employed; R&D/innovation: 3% of the EU's GDP
(public and private combined) to be invested in R&D/innovation; climate change/energy: greenhouse gas emissions 20 -
30% lower than 1990; 20% of energy from renewable sources; and 20% increase in energy efficiency; education: reducing
school drop-out rates below 10%, and at least 40% of 30-34–year-olds completing third level education; poverty/social
exclusion: at least 20 million fewer people in (or at risk of) poverty and social exclusion)) will have significant impacts on the
agriculture and rural development sector. By responding to these challenges, the CAP will contribute to the objectives of the
EU 2020 Strategy by means of:
Smart growth - i.e. increasing resource efficiency and improving competitiveness through: technological knowledge and
innovation; developing high value added and quality products; developing green technologies and using ICT; investing in
training; providing incentives for social innovation in rural areas; improving uptake of research;
Sustainable growth - i.e. maintaining the food, feed and renewable production base; ensuring sustainable land
management; providing environmental public goods; addressing biodiversity loss; fostering animal and plant health;
increasing resource efficiency through technological development; further reducing emissions and fully developing the
potential of rural areas
211
Inclusive growth- i.e. unlocking economic potential in rural areas; developing local markets and jobs; accompanying the
restructuring of agriculture; supporting farmers' income to maintain a sustainable agriculture.
Chapter 11 Agriculture and Rural Development
A number of strategic documents have been adopted in the period 2008-2013 in the process of harmonisation with the
acquis contained in this chapter which represents one of the most challenging chapters in terms of transposition, taking into
account both the scope and size of legislation, but also the importance of this sector for the Serbian economy.
The main directions of the EU policies in agriculture and rural development sector are presented in the European
Commission Communication on "The Common Agricultural Policy (CAP) towards 2020 - Meeting the food, natural resources
and territorial challenges of the future”, which presents the direction of reforms for the various different regulations and
implementing acts which are expected to be in place by the end of 2013, with a view to implementing overall CAP reform
from 1st January 2014.
At the time of writing of this document, proposed changes of the regulations under the new CAP post- 2014 are the
following. Direct payments (Pillar 1) will be redesigned so that national envelopes for direct payments will be structured in
the following manner. The Basic Payment Scheme (comprising of up to 70% of available national funding 'envelope') will
replace the mix of Single Payment Schemes currently operating in different EU Member States. A Greening Payment will be
introduced as compulsory for all Member States and will comprise 30% of the national envelope. Up to 5% of national
envelopes may be granted to ‘Areas with natural constraints’ whilst ‘Young farmers’(new entrants with less than 40 years)
may receive up to 2% of the national envelope for the first 5 years. Support to the ‘Small farmers’ scheme of up to 10% of
national envelopes may be granted to farmers annually as a fixed entitlement of between 500 € and 1 000 €. Lastly there will
be a ‘Coupled’ option of up to 5% of national envelopes, or in some cases more, which will allow Member States to have the
option of providing limited amounts of "coupled" payments, i.e. payments linked to specific products. All Direct Payments will
continue to be linked to cross compliance.
Rural development (Pillar 2) measures will continue to be co-financed by Member States and by the EU through the
‘European Agricultural Fund for Rural Development (EAFRD)’, which will form part of a new Common Strategic Framework
with other European Funds for economic development. The new programming period will have 6 priorities and Member
States will need to meet targets in all six priority areas, with 5% of funds held back in a ‘Performance Reserve’ to encourage
this. At least 25% of the Rural Development funding envelope for Member States’ must be allocated to issues related to land
management and climate change measures, including organic farming. The first set of areas of intervention focus on
fostering innovation and the knowledge and the importance of advisory services in innovation. Under the second area of
interventions Rural Development Programmes will continue to support quality schemes for agricultural products and
foodstuffs and areas facing natural or other specific constraints. Measures of particular relevance for promoting food chain
organisation and risk management in agriculture are designed to improve the position of farmers in the food supply chain
and also to cope better with the uncertainty created by problems of weather, animal disease and market volatility. In
addition, a set of interventions are planned to support restoring, preserving and enhancing ecosystems which are dependent
on agriculture and forestry and to promote resource efficiency and the shift towards a low carbon and climate resilient
economy in agriculture, food and forestry sectors. Measures of particular relevance for the promotion of social inclusion,
poverty reduction and economic development in rural areas include support for basic services and village renewal in rural
areas and LEADER-type interventions. In summary, the EU priorities set for Rural Development Programmes cover the
following: advisory services; farm management and farm relief services; investments in physical assets; farm and business
development; LEADER activities.
The acquis covering Horizontal issues, Common market organisation and Rural development is currently in the
process of being changed as described above. Current acquis are: Regulation 73/2009 –establishing common rules for
direct support schemes for farmers under the Common Agricultural Policy, 834/2007 -on organic production and labelling of
organic products, 718/2007 -on the application of Council Regulation (EC) no.1085/2006 establishing an instrument for pre-
accession assistance (IPA), 1698/2005 -on support for rural development by the European agricultural Fund for rural
Development. The NPAA states that in the area of agriculture and rural development basic adjustments were made by
the Law on Incentives in Agriculture and Rural Development, which is partly in line with European legislation. In this way, the
ambience is created that the existing support system became predictable for many years with a view to facilitating the
planning of primary agricultural production, securing stable producers income and respecting of quality standards. The law
stipulates that agricultural support in Serbia follows the basic orientation of the CAP in terms of the transition from
production-related (coupled payment) towards decoupled payment but stay itself with a certain level of production-related
direct payments (in the areas of production where necessary). In addition, this law was first created conditions for partial
implementation of mechanisms for "cross-compliance" and modulation of the EU’s CAP. Detailed application of these
mechanisms will be implemented gradually, given that we still have not created the conditions for the full implementation of
these mechanisms at farms, the recipients of direct payments. The use of this mechanism in Serbian agriculture will require
a detailed and comprehensive training of farmers, with the lead role in education had professional advisory services. In the
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domain of agricultural markets in recent years Serbia started with the adoption of laws and regulations applicable to the
European rules, in accordance with Council Regulation (EC) No 1234/2007 establishing a common organization of
agricultural markets and specific provisions for certain agricultural products (Single CMO Regulation) (Council Regulation
1234/2007, 32007R1234R (07)).
Quality policy: Regulations 1151/2012, 479/2008 and 110/2008. An essential goal of agricultural quality policy is to
establish quality schemes, to inform buyers and consumers about product characteristics and farming attributes to provide
buyers and consumers with accurate, useful and guaranteed information. The regulations listed above cover aspects of
support schemes for: protected designations of origin and protected geographical indications (PDOs and PGIs);, traditional
specialities guaranteed scheme (TSGs), including protected designations of origin and geographical indications;, traditional
terms, labelling and presentation of certain wine sector products and spirit drinks. The NPAA states that special progress is
evident in the field of harmonization in the area of geographical origin of agricultural and food products, which is defined by
the Law on Indications of Geographical Origin (Official Gazette of RS 18/10). Significant progress has been achieved in the
areas of viticulture and wine production, especially in matters of harmonization with EU regulations and attainment of EU
standards related to geographical origin of wine, declaration and quality. In the field of production of alcoholic beverages
during the period 2008-2012 the Republic of Serbia adopted a number of regulations relating to the organization of the
market spirits and other alcoholic beverages, thereby transposing the part of EU acquis concerning the sector of alcoholic
beverages in its own legislation. Progress is not satisfactory and is currently conducting a revision of the draft law.
Organic farming: Regulations 834/2007, 889/2008 and 1254/2008. These regulations provide rules for organic farming
and production. Organic production is supported by European financial support, policies and laws and these are designed to
reinforce consumer confidence whilst creating the conditions for fair competition among organic producers in the EU
countries. The NPAA states that from January 2011, organic farming in Serbia is regulated under the Law on Organic
Production (Official Gazette of RS 30/10) and the Rulebook on Control and Certification in Organic Production and Methods
of Organic Production(Official Gazette of RS 48/11 and 40/12) which were prepared in accordance with Council Regulation
No,834/2007, 889/2008, considering that certain provisions of the EU regulations have not been transposed into the current
Law, that appropriate penal provisions are lacking, that the legal framework does not provide an efficient control system.
Draft Law on organic production and organic products has been prepared and is expected to be adopted in 2014.
Chapter 12: Food safety, veterinary and phytosanitary policy
Harmonisation with the acquis in Chapter 12 has been extensively carried out by the Serbian authorities to ensure
transposition of that part of EU framework legislation which focus on the removal of potential barriers to trade with EU.
Since 2000, when the European Commission (EC) adopted the ‘White Paper on Food Safety’, there have been no major
changes in the food safety policy area. At that time the EC modernised the then existing legislation into a coherent and
transparent set of rules, which reinforced controls from ‘’the farm to the table’’ in order to guarantee a high level of human
health and consumer protection.
In the policy area of animal health the EC is working on the implementation of the ‘Animal Health Strategy (2007-2013)’,
which focuses on the preventive approach and the strengthening of existing mechanisms. A key element of this strategy is
to establish an overarching legal framework which supports the livestock sector and ensures smooth a functioning, regulated
EU market for live animals and their products. The emphasis of this strategy is to simplify legislation and to reduce the
associated administrative burden. The intention of the overarching legal framework is to increase internal coherence
between animal health issues and closely related areas such as EU veterinary expenditure, official controls by competent
authorities, zoonosis, and veterinary medicines. With regard to animal welfare, the EU ‘Animal Welfare Strategy 2012-2015
‘is the main policy document which aims to ensure: that animals do not endure avoidable pain or suffering; that the owners
/keepers of animals respect minimum welfare requirements; that proper information and education on animal welfare issues
is made available to citizens and operators alike.
Feed, plants and plant reproductive material are essential sub-sectors for the safety and security of the food chain. In this
area the EC has prepared new legislative proposals for Plant Health and Plant Reproductive Material replacing the former
directive with a new regulation. The existing legal framework will be replaced with four regulations these are: the Regulation
on plant health (hazardous organisms, outbreaks, import, intra EU trade), the Regulation on official controls (compliance
checks), the Regulation on expenditures (Co-financing of the EU) and the Regulation on plant reproductive material.
On 6 May 2013, the European Commission proposed a package of legislative measures to strengthen the enforcement of
health and safety standards for the whole agri-food chain. Once adopted, the package will bring around 70 legislative
measures down to four Regulations. New elements of the proposed package which contribute to better enforcement of agri-
food chain rules will benefit the public at large by increasing food safety as a whole and the protection that those rules afford
against plant and animal health, animal welfare and the environment, include: (i)The requirement to perform regular,
unannounced official controls directed at identifying intentional violations and (ii) Financial penalties that offset the economic
advantage sought by the perpetrator of the violation. The package also gives the Commission more powers to oblige
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member states to carry out controls and tests within a co-ordinated control plan of limited duration to ascertain the extent of
specific shortcomings along the food chain and to establish permanent specific control requirements in relation to specific
sectors and/or newly identified risks which emerge along the food chain or which emerge from new patterns of production or
consumption of food. The package proposed by the Commission consists of the following proposals for: Regulation on the
production and making available on the market of plant reproductive material; Regulation on official controls and other
official activities performed to ensure the application of food and feed law, rules on animal health and welfare, plant health,
plant reproductive material and plant protection products; Regulation on animal health; Regulation on protective measures
against pests of plants. It aims to put in place a robust, transparent and sustainable regulatory framework. The Commission
expect that the package will enter into force in 2016. Food safety and control: Regulations 178/2002, 852/2004, 853/2004
and 183/2005. These regulations provide rules for food and feed safety and they were integrated into the national Law on
Food Safety which is harmonised with the EU acquis. Further harmonisation with EU acquis is focused on the alignment
through by-laws which aim to ensure the effective implementation of framework laws. The NPAA states that The Law on
Food Safety created a legal basis for the transposition of regulations from the so-called EU ‘Hygiene Package’ (Regulations
178/2002, 852/2004, 853/2004, 854/2004 and 183/2005).
Plant Health: The acquis on Plant Health is currently being changed; the outline of these changes is described above. The
NPAA states that in the period 2008-2012, in the field of plant health, the Law on Plant Health (Official Gazette of RS41/09)
and 29 bylaws were adopted and a legal framework was established for the system of plant health, harmonised with Council
Directive 2000/29 Celex 32000L0029.
Plant Protection Products and Residues: Directives 2009/128 and 2009/127; Regulations 1107/2009, 1185/2009 and
396/2005. In 2009 EU adopted new legislative framework governing: (i) the evaluation and approval of active substances at
EU-level (ii) authorisations of plant protection products at the level of EU member states (iii), statistics in the area of sales
and use of plant protection products and (iv) sustainable use of plant protection products. One of the major challenges for
Serbia in the forthcoming period in this policy area will be the alignment of Serbian legislation which is related to the food
and feed residue monitoring system. The NPAA states that the Law on Plant Protection Products is partly harmonised with
previous Council Directive 91/414/ЕЕC concerning the placing of plant protection products (PPP) on the market and with the
basic provisions of Regulation of the European Parliament and of the Council 396/2005/ЕC on maximum residue levels of
PPP in or on food and feed.
Veterinary policy: Directives 2001/89/EC, 77/391/ЕЕC, 2005/94/EC, 92/35/EEC, 92/66/EEC, 2003/85/EC, 2008/71,
98/58/EC, 86/609/EEC, 1999/22/ЕC, 91/496/ЕЕC, 97/78/ЕC and 96/93/ЕC; Regulations 1266/2007 and 1177/2006,
999/2001, 1760/2000, 504/2008, 21/2004, 854/2004, 998/2003 and 288/2004; Commission Decisions 2003/803/EC,
93/119/EC, 2007/275/EC. The overall aim within this policy area (according to the EU Animal Health Strategy) is to put
greater focus on precautionary measures, disease surveillance, controls and research, in order to reduce the incidence of
animal disease and minimise the impact of outbreaks when they do occur. The NPAA states that The Law on Veterinary
Matters, the Law on Food Safety and the Law on Animal Welfare have created a legal basis for the transposition of
veterinary regulations, the so-called ‘Hygiene Package’, a set of regulations covering feed and animal by-products, animal
health protection and animal welfare, international trade, certification and veterinary control. Bylaws are accompanied by
appropriate guides, manuals and instructions to facilitate the implementation of regulations and compliance with EU
regulations. In accordance with the Law on Medicines and Medicinal Products a number of regulations were adopted in this
area. The Law on Animal Welfare was adopted which was prepared in accordance with EU regulations, and with the
European Convention, the recommendations of the European Federation of Veterinarians (FVE), as well as the
recommendations of the World Organization for Protection Animal Health (OIE).
Genetically Modified Organisms: Regulations 1829/2003 and 1830/2003. The acquis in this policy area is designed to
ensure strong protection of human life, health and welfare, to protect the environment and to defend consumer interests
(thereby ensuring the effective functioning of the internal market). In mid-2010, the EC proposed new rules for the
authorisation of GMOs. If adopted, EU countries will be able to restrict or ban GMO cultivation on their territory. They will be
able to use any acceptable reason under the Treaty without undermining the EU risk assessment which remains unchanged.
The NPAA state that until regulations have been adopted in accordance with the new law governing genetically modified
organisms, the regulations adopted in accordance with the old Law on Genetically Modified Organisms (Official Journal of
FRY 21/01 and Official Gazette of RS, 101/05‒other law) will apply if they do not contradict the new law governing
genetically modified organisms.
Chapter 13 – Fisheries
Commission Decision 93/140/EEC; Regulations 1250/2008, 762/2008. Segments of legislation from the chapter on
Veterinary Policy and Food safety along (Chapter 12) with part of the acquis of Chapter 13 are applicable to Serbia. This
relates in particular to legislation dealing with: health; general and special hygienic requirements; organisation of official
controls for establishments authorised to export fishery products and to produce safe food for export in the EU.
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B.9.4. Overall objectives and priorities in the sector (2014-2020)
The SWOT analysis of the agriculture and rural development sector has been undertaken additional to the situation
analysis presented in previous sections, to set out the long term objectives and medium term strategic priorities and realistic
and targeted measures.
 The potential for the production of high value added  Fragmented , not consolidated parcels
products, including organic  Technical and technological obsolescence and inefficient
 Well positioning and competitiveness on the regional system of agricultural knowledge transfer
market + trade agreements with the EU, Russia and  Extension services not modernised for new challenges
CEFTA countries and expectations of farming community
 Richness of natural resources (soil), cultural heritage  Low awareness concerning environmental issues
and biodiversity  Food safety standards not yet improved and aligned with
 Potential for direct marketing and creation of value EU requirements
added products in farm households  Lack of educated, trained and skilled labour force in rural
 Some of EU framework legislation already transposed sector
to national legislation  Lack of continuation of local area partnerships
 The Food Safety Law already includes most of the development and improvement
principles required in the acquis  Lack of awareness of agri-environment al needs
 Progress with regard to alignment with the CMOs, rural  Large part of the agricultural sector is not integrated in
development policy, as well as food safety, veterinary the agri-food supply chain
and phytosanitary policy.  Lack of interest in cooperation among farmers and rural
 Progress in the preparations for the management and entrepreneurs
control system under the IPARD.  Unused natural resources and cultural heritage of rural
areas
 Undeveloped or neglected rural physical and social
infrastructure
 Low administrative capacity in terms of number of
employees and their quality for effective policy planning,
implementation and monitoring meeting EU requirements
 Insufficient access to finance and limited investment
capacities
 Lack of statistical basis for the policy comparable to the
EUROSTAT
 The weak resilience of agriculture to the climate changes
 The possibility of export growth, especially of products  Trend in climate change which may cause long term fall
of higher added value of agricultural productivity
 The possibility of attracting FDIs  Insufficient resources of the national budget to support
 Increasing market of existing upstream and agricultural policy and insufficient financial assets of
downstream industries private sector
 Ability to generate new jobs and growth of employment  Insufficient capacities for pulling of resources and
through diversification of goods and services provided absorption of EU funds
by farms  Increased competition on the domestic and regional
 The growth of attractiveness of rural areas for markets and with EU Member States through the
investment and living progressive implementation of the Interim Agreement
 Availability of financing from EU pre-accession and and regional SAAs.
bilateral funds  Continuation of the intensive depopulation of villages and
 Acceleration of EU accession process its consequences
 Uncertainty of the path of reforms towards legal EU
approximation
 Lack of stability and often changing sector’s policy and
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administration responsible for policy implementation
 National strategy and supporting documents adoption
delayed
 Lack of progress in establishing sustainable partnership
of local stakeholders
To reflect the above and guide assistance programming the overall objective is formulated as:
Viable and competitive agriculture sector that respects high environmental, quality and food safety standards
ensuring at the same time improved quality of life in rural areas
This objective sets a clear direction to develop a sustainable and efficient agricultural sector in order to increase and
strengthen competitiveness on regional and world markets; harmonize the supply of agricultural and food products to the
demand of the domestic and foreign consumers, including their wishes for high food quality, food safety, and hygiene;
promote the life quality of the population in rural areas and environment protection; strengthen capacities for adjusting the
agricultural and rural development policy to comply with CAP standards.
The stated objective can be realized through the implementation of a range of measures and activities merged into four
priorities:
Priority 1: Increasing the competitiveness of agribusiness sector and created conditions for the sustainable growth
of farmers' incomes (with ref. to IPA RD axis 1)
Objectives of the priority are: improvement of agricultural holdings by modernisation and applying EU standards in
production practices; development of agri-food chain by improving handling, processing and marketing of produce and food
products in accordance with EU standards; stimulation of farmer and rural agri-business co-operation; improvement of
agricultural extension services by better uptake of research, applying innovative solutions and knowledge transfer to
agricultural producers.
Despite the importance of agriculture in the Serbian economy, agricultural production in many areas remains weak and
uncompetitive; a result of historically low levels of investment, large numbers of very small farms, and an uncertain land
market. A key characteristic of Serbian agriculture is the variability between different production sectors, some of which are
more competitive than others. Examples are vegetables, sugar and some vegetable oils; but certainly the fruit sector
(especially various types of berries) has achieved a strong export position. Current deficiencies in the country’s primary
agricultural produce and food handling system and shortage of compliance with international standards are impediments for
a more competitive presence of Serbian agricultural produce on international markets. Liberalisation process would subject
the Serbian food supply chain to competition from mature industries and highly efficient, well-organized international
business. For the same reasons income of farmers in the coming period will be exposed to great risks. The economic
position of primary producers is unfavourable, while the investment needs that would contribute to agricultural productivity
growth are high. Without investment support Serbian farmers will not be able to achieve sustainable income growth and deal
with foreign competition. To be ready for such competition, the Serbian agri-food chain has to tackle a number of serious
bottlenecks. Agricultural extension services need functional modernisation and build capacities to advice on modern
technologies as well as implementation of agricultural policy.
The approach is to support development of high value added agricultural production by modernization of the sector (primary
agriculture and processing facilities) and meeting EU quality standards and good practices in production, harvesting,
handling, processing and storage; develop organic farming, facilitate access to market for organic products and raise public
awareness; foster innovations and their transfer through improved agricultural extension and advisory system; facilitate
farmers and agri-food operators towards better access of products and semi-products to raw material market, stimulate
farmer and rural agribusiness co-operation.
Priority 2: Improving the quality of life of the rural population and attractiveness of rural areas (with ref. To IPA RD
axes 2 and 3)
Objectives of the priority are: improvement and development of rural infrastructure for quality life and better business;
diversification of rural economy and creating new off-farm employment opportunities; development of local area based
initiatives and wider implementation of agri-environmental actions;
Achieving sustainable growth of rural economy is one of the key national priorities, due to already high urban/rural gap that
continues to grow. Lack of new jobs and insufficient overall capacities for gainful employment cause a high dependence of
rural economy on agriculture and contributes to rural poverty. Such dependences increase pressure on local resources and
agri-environment. Low wages and the limited number of jobs in rural areas are the main reasons behind the out-migration
process from the countryside to in-country and overseas urban centres, dominantly driven by young people and threatening
further depopulation of rural areas. Physical rural infrastructure and services are in decline and need renovation and
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reconstruction in order to support increase of rural living standards and access to several markets (local, urban, labour, etc.).
Modern infrastructure is one of the most important prerequisites for further capital investments.
Significant is shortage of off-farm working possibilities in rural areas. Rural business needs support for manufacturing and
provision of services in rural areas and for establishing co-operation networks with already existing small and medium-
enterprises to stimulate growth of the rural economy.
Small-scale handling and processing of agricultural products, production of traditional products, protection of product name
and origin, collecting natural (wild) fruit, growing spices, medicinal and aromatic plants etc. has been perceived as potential
opportunity. Needs have been identified for construction, reconstruction and adaptation of authentic traditional buildings
which may be used as accommodation renting, catering facilities, mills, wine cellars and development of recreational areas
for the purpose of tourism activities and production of traditional crafts. Improvement of rural infrastructure, better conditions
for the valorisation of natural resources and rural heritage, development of local products as well as easier access to
financial capital, goods, services and knowledge, are the key directions to achieve the sustainable development of rural
areas.
The approach is to assist improving physical rural infrastructure and services by investing in the renovation and
reconstruction of water supply and sewage systems, small scale waste water treatment, local roads incl. forest roads
through development of plans, technical designs and relevant project documentation. Creation of off-farm work possibilities
incl. valorisation of natural resources and rural heritage, agro-tourism or non-agricultural micro-businesses development,
development of local products and craft; increase of services in rural areas and stimulation of co-operation between small
and medium- enterprises for growth of the rural economy; facilitating access to financial capital, goods, services and
knowledge for rural dwellers. Strengthening local community initiatives based on LEADER approach; wider implementation
of agri-environment actions aimed at conservation of both agro-biodiversity and biodiversity of wildlife by means of indirect
activities of protection of habitats and authentic high nature value farmlands.
Priority 3: Strengthening administrative capacities for alignment of agriculture (CAP Pillar 1) and rural development
(IPA RD & CAP Pillar 2) policies and institutions with EU acquis (with ref. to administration capacity building)
Objectives of the priority are: Improvement and strengthening of administrative and institutional capacities for alignment of
agriculture and agricultural market organisation with EU acquis; Improvement and strengthening of administrative and
institutional capacities for alignment of rural development with EU acquis.
The administrative capacities and institutional framework of the country's agriculture and rural sector need to be in place to
effectively apply the policies related to agriculture as well as to appropriate market functioning that allows the agri-food chain
to compete on the domestic and external markets. Preparations observed so far have concentrated on adopting the
legislative requirements of the EU acquis and first steps in the establishment of new and the improvement of existing
institutions. A large number of laws and regulations have been passed, but their effective implementation is at an early stage
in several areas. National Codex Alimentarius (NCA) has been introduced and a preparation for establishing the NCA
Committee is underway in order to raise the overall level of security, communication, safety, health protection and
consumers’ interest in the area of food safety and quality and providing information and notifying of standards, guidelines
and recommendations designed by NCA. .
Since the new measures will be part of rural development priorities in the new programme (IPARD II), rural policy
implementing structures need additional support in terms of operative programmes and the implementation of agricultural
policy, as well as adjustment to the CAP. Quite large differences still exist comparing with EU requirements. There are still
deficiencies in agricultural policy analysis, monitoring and evaluation.
The priority will assist in development of administration and control systems (IACS, Farmer Identification, LPIS) and
improvement of the scope and coverage of the market data collection in line with EUROSTAT methodology (based on the
achieved results from IPA 2012 assistance). Less favoured areas (LFA) in Serbia will be defined and outlined. The system
for management and support for area based initiatives (Local Action Groups based on LEADER principles) needs
improvement and continuation of development. There is not yet a system enabling implementation of certain number of agri-
environmental measures, especially in the sense of development of LPIS system which will provide insight into the high
nature value farmlands, and the implementation of the Nitrates directive which defines the nitrate vulnerable zones or the
zoning of Serbia’s environmental measures in accordance with the regulation Natura 2000.
There is lack of efficient system to monitor and analyse public expenditure on agricultural and rural development and CMO
measures as well as system for identification and registration of payment entitlements accompanied by administrative
controls. In the near future the responsible institutions Managing Authority (MA) 286 and Paying Agency (PA)287 will increase
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Managing Authority tasks will be performed by the Rural Development Department in the Ministry of Agriculture, Forestry and Water Management
287
Paying Agency tasks will be performed by the Directorate for Agrarian Payments in the Ministry of Agriculture, Forestry and Water Management
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number of employees regarding workload analysis for a new set of measures. All employees will need to be trained for
specific duties and the institutions strengthened.
The approach is to improvement of the administrative capacities and institutional framework of the country's agriculture and
rural sector for further alignment with EU acquis; strengthening analytical capacities for policy formulation and development;
strengthening of agriculture and rural policy planning, management and implementing structures - Managing Authority (MA)
and Paying Agency (PA) - and their capacities and resources; gradual building of administration capacity, management and
control mechanisms for implementation of the agricultural policy and common market organisation.
Priority 4: Improving standards and systems for food safety, plant health, animal health and welfare (with ref. to
alignment to acquis)
Objectives of the priority are to set out standards and systems for food safety and build relevant capacities for their
implementation.
Competition on the fairly saturated EU food markets is increasing with respect to quality and safety. Setting standards on
food quality and food safety and incentive to the participants on the market to accept the rules are important public
responsibilities that are increasingly incurred by the Serbian government authorities. If the Serbian agri-food chain wants to
take part in the expected expansion of the modern retail sector, it has to match the quality of its supply with the market
demanded quality. Much legislation and many procedures have recently been transposed into rules and guidelines for all
participants in the agri-food chain. Yet, a legislative and administrative change has not yet been completed and alone do not
guarantee a proper implementation of the veterinary and phytosanitary legislation aligned with EU acquis. The
implementation of regulations with the rigour and expertise necessary for them to function needs building appropriate
institutions and development of effective organizations, quality human resources and the time to build up the expertise in
this area. Twinning projects focusing on capacity improvements in these areas have been started only recently. Yet, the
complexities are high, while inspectors, extension officers and farmers need to be trained. Building up the capacities to set
out standards and implement the regulations on animal and plant sanitary control requires sufficient time and availability of
financial resources.
The approach is to building and improvement of systems and standards in the food safety system incl. food, feed and animal
by-products in the process of alignment to EU acquis; building and improvement of systems and standards for the plant
health and plant protection products; building and improvement of systems and standards for the veterinary services, animal
health and welfare; building and improvement of necessary capacities, both human and institutional to make the standards
implementable and the systems efficient.
Priority 1: Increasing the competitiveness of agribusiness sector and created conditions for the sustainable growth
of farmers' incomes (with ref. to IPA RD axis 1)
Measure 1.1.Investing in agricultural holdings, processing and marketing of agricultural produce, introducing EU
standards for agricultural produce and food
This measure is aimed to support the modernization and restructuring of farms and processing plants specialized in
production and processing of fruit-vegetables, milk, meat, and other products reflecting regional production conditions in
Serbia, in order to increase their competitiveness through more efficient use of production resources, including introduction
of new technologies, improvement of safety and quality conditions for agricultural produce as well as harmonization of
agricultural production with hygienic, plant and animal health and environmental requirements.
Support will be provided for investments in the modernization and development of the processing plants and food business
operators, and preparing the products for sale on the market. The measure will support the plants processing animal and
non-animal products by purchase of storage and cooling facilities, handling and packaging, labelling and other type of
equipment in the food processing chain as well as introduction of modern or special processing technologies. Support will be
provided to development of innovative solutions in food and feed production.
Agricultural producers and agri-business co-operation will be supported in order to strengthen their competitiveness through
adaptation of the production and output of group members to market requirements; joint placement of products on the
market, including preparation for sale, centralization of sales and supply to bulk buyers.
This measure refers to IPA RD II measures: 101, 102and 103
Measure 1.2.Fostering innovations, uptake of research and knowledge transfer by means of extension service
Support under this measure envisages strengthening the role of extension service in knowledge transfer and providing
support to farmers to produce innovative high quality competitive products. Support will be provided for establishment of the
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functional system of agricultural extension service which should improve uptake of the applied research by farmers and
private forest owners and help to establish data collection systems (Crop Progress Report, Agricultural market information
system, etc.).
The network of demonstration units will be established to improve transfer of modern technologically advanced farming and
processing practices (incl. organic production) from research to primary agriculture and strengthen cooperation between
farmers, agribusiness and knowledge centres. More efficient tailor made advisory services will be developed. Provision of
advice on accessibility of agricultural and rural development policy assistance for agricultural producers and rural dwellers,
income and cost calculations with regards to applied new technologies, machinery and equipment.
Support to development of innovative solutions in food production will be provided by encouraging cooperation between
producers and research and technological development providers in order to acquire the necessary technological
knowledge. Special attention will be given to enhance the awareness about importance of the technological development for
increase of farmers’ income.
This measure refers to IPA RD II measures: 303 and new measure: Advisory services” – an IPA RD measure number not
yet determined.
Priority 2: Improving the quality of life of the rural population and attractiveness of rural areas (with ref. To IPA RD
axes 2 and 3)
Measure 2.1. Creating conditions for improvement of rural infrastructure
This measure increases the readiness of Serbian authorities to utilize future funding for investments into physical
infrastructure in rural areas. The measure will assist preparation of the planning and project documentation necessary for
future infrastructure development concerning projects on rehabilitation of local roads incl. construction of fire prevention
roads with elements of forest paths, construction of sewage systems and, where applicable, of small scale wastewater
treatment plants. Local access to information and communication technologies will be supported. The measure will assist
development of forest infrastructure, its planning and construction, as well as development of sustainable forest
management for biomass utilization. Assistance will enable preparation of documentation necessary for landscaping rural
areas.
This measure refers to IPA RD II measures: 301
Measure 2.2. Supporting diversification of rural economy and creation of new jobs
The measure will support diversification of economic activities and development of alternative employment possibilities,
create additional sources of income for farming families and rural population. It will assist development of specialized
products and access to markets outside of the conventional food chain, manufacturing traditional food, goods and services,
development of agro-tourism and recreational areas and services.
Supported will be activities that raise awareness and provide information for all potential actors/beneficiaries concerning
activities related to project preparation and business planning for small-scale processing of agricultural products, protection
of product name and origin, collecting natural (wild) fruit, growing spices, medicinal and aromatic plants etc. Utilisation of
forest products is important for rural development (biomass and fuel-wood, non-wood forest products, charcoal etc.).
Support to construction, reconstruction and adaptation of authentic traditional buildings (accommodation capacities, catering
facilities, mills, wine cellar), production of old crafts is also envisaged.
This measure refers to IPA RD II measures: 302
Measure 2.3. Improving the Local Action Groups (LEADER similar) and introducing agri-environmental actions
Established Local Action Groups will be supported in order to strengthen their administrative and managements capacities.
Development of local area based partnerships based on the key LEADER features will be promoted and supported.
Concerning agri-environmental actions organic production will be supported as well as maintain of autochthonous genetic
resources of domestic animals and agricultural cultivars, while other actions with regards to improvement of biodiversity of
wildlife and the preservation of its habitats, preservation and nurture of high nature value farmlands, preventing water and
soil pollution, promoting traditional harvesting and grazing practices will be defined and implemented to the extent which is
feasible at the given moment. Awareness will be raised of farming community and rural dwellers with regards to agri-
environment and preservation of natural resources.
This measure refers to IPA RD II measures: 202 and 201 (agro-environmental actions)
Priority 3: Strengthening administrative capacities for alignment of agriculture (CAP Pillar 1) and rural development
(IPA RD & CAP Pillar 2) policies and institutions with EU acquis (with ref. to administration capacity building)
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Measure 3.1.Improving rural development analytical, programming, programme management and implementation
capacities
This measure intended to support current efforts to improve accessibility and transparency of granting processes; and
strengthen the monitoring and evaluation (M&E) of the distribution, use, and impact of rural development measures under
IPARD and future EU Rural Development Programme. Programming and the rural development programme management
capacities will be strengthened within Managing Authority (MA) support to accreditation of institutions MA, PA) and
measures will be provided.
Harmonisation through identification of missing legal and institutional framework necessary to implement agri-environmental
measures, by determining the scope of support and potential beneficiaries. Establish preconditions for proper design of
improving the knowledge base for agri-environmental measures implementation such as: mapping of Highly Nature Value
Farming, European landscapes and forestry areas (including Natura 2000 sites), developing of Integrated Forest Information
System (IFIS), and identifying Nitrate vulnerable zones. Training and advisory support to beneficiaries with regards to
applying for agri-environmental measures and following good agricultural and forestry practice. Further development in line
with National Action Plan for the Development of Organic Farming in Serbia, support to Ministry of Agriculture, Forestry and
Water Management in the process of Serbia's accession to the third countries EU list.
Through this measure support will be provided to Paying Agency (PA) staff to effectively analyse various aspects of
applications for financing (technical, financial and economic viability, risk assessment and management, contracting and
procurement aspects) through provision of training and technical advice. Guidance and support to potential rural
development programme final beneficiaries will be provided through training, publicity and awareness raising campaigns on
the rural development programme. Support to final beneficiaries will be organised through the structure of extension
services (national and provincial) and other operators as: civil society organisations, agricultural schools and institutes and
specifically through already established Rural Development Network in Serbia. This measure envisages further support to
development of future LEADER programme management structure and to building implementation mechanism for agri-
environmental measures under IPARD (being developed under IPA 2012).
Measure 3.2 .Improving administrative capacities for agricultural and food policy and CMO
This measure will strengthen the capacity to effectively implement and administer alignment of agriculture with Common
Agricultural Policy. Analytical capacities of Serbian authorities will be enhanced to plan, monitor and evaluate agricultural
policy and assess the effectiveness of implemented measures. Support will be provided for development of agricultural
policy indicators in accordance with EU requirements including improvement of the scope and coverage of the market data
collection in line with EUROSTAT methodology; setting up the Integrated Administration and Control System (IACS)
including its subsystems incl. farmer identification system, further development of Land Parcel Identification System (LPIS)
based on the achieved results from IPA 2012 assistance; development of procedures to monitor and analyse public
expenditure on agricultural and rural development measures; implementation of Common Market Organisation (CMO)
measures. The system for identification and registration of payment entitlements will be developed, as well as relevant
administrative controls and on the spot check system. Less favoured Areas (LFA) will be defined with an action plan
enabling its introduction to the agricultural support policy. Support will be provided to Land Management Directorate for
continuation of land consolidation activities.
It envisages further capacity building activities for administration in monitoring of standards implementation. The support of
strengthening the administrative and operational capacities for implementing national food quality policy in order to ensure
effective implementation of specific EU quality schemes (e.g. PDO, PGI, TSG, organic farming, marketing standards) and
establishing an efficient control system for these products. Since National Codex Alimentarius Point within Ministry in charge
of agriculture and rural development has been recently established administrative capacities for functioning of National
Codex Committee will be strengthened. Support will be provided in particular to wine sector in prevention of frauds through
performing the isotopic analyses and improving of knowledge of wine production and marketing, as well as the support for
further zoning of viticulture areas and strengthening capacities of the association of grape and wine consumers and
designations of geographical origin of wine. It will also cover the system of control and supervision over organic production
and marketing of organic products.
Priority 4: Improving standards and systems for food safety, plant health, animal health and welfare (with ref. to
alignment to acquis)
Measure 4.1 Building standards and capacity for veterinary services, animal health and welfare
This measure will focus on the completion of alignment with EU acquis in the area of veterinary and animal health. It will
provide support to the Veterinary Directorate in determining potential gaps in procedures for official controls in food and feed
and strengthening system for animal feed controls. Taking into account the priorities foreseen under the NPAA the focus on
alignment will be with regards to improvement of animal welfare standards. Awareness raising and educational campaigns
will be conducted for farmers. Financed will be the programmes for eradication and control of animal diseases and
Veterinary Medical Products control.
220
Measure 4.2 Strengthening food safety system
This measure will assist the completion of necessary legal and administrative framework of food safety and in particular
strengthening the system of risk analysis and food and feed labelling in line with EU legislations. Completion of development
of the system will be accompanied with awareness raising and educational campaigns; improvement and further
development of the animal-by products management system, categorization of establishments and strengthening of the
Rapid Alert System for food and feed. Supported will be capacity building, training and equipping of the inspection service
for food safety as well as training and awareness raised of food business operators. Further development of food chain
laboratory system will be financed (providing training for introduction and development of new diagnostic protocols and
methods; equipment supply, etc.).
Measure 4.3. Building plant health and plant protection product standards and administrative capacities
This measure will support alignment with the aquis in phytosanitary field with attention for on-going changes at the EU level.
Alignment of the legislation will be focused on the preparation/changes of legislation in accordance with EU plant health,
seed and planting material regulation that will enter into force in 2016. This applies to protective measures against harmful
organisms and making available on the market of plant reproductive material. Support for plant health protection, improving
plant passport system, as well as development and introduction of diagnostic protocols and confirmation, as well as
upgrading of keeping registers in phytosanitary area, regarding introduction of specific software for the electronic
management of databases is needed. This measure will support implementation of the new Law on plant protection products
in particular the establishment of residue monitoring, plant protection products in food and feed, in compliance with the EU
requirements. Supported will be strengthening of authorisation for put on the market, post-registration control and collecting
data on circulation and use of plant protection products, as well as sustainable application of plant protection products,
including Awareness raising on integrated managements of hazardous organisms and educational campaigns for farmers.
Regional, Cross Border and Transnational Themes in Agriculture and Rural Development sector
Programmes, should be provided to those actions where the benefit of a regional approach is obvious.
Multi-beneficiary IPA
Through Multi-beneficiary assistance support should be provided to those actions which require cooperation of all parties in
order to achieve the positive outcome in the region. These actions include cooperation among countries in fight against
animal and diseases and alignment of eradication and control programmes. Some of these activities are already covered
through cooperation agreements existing on bilateral level, but through IPA programmes these should be brought to regional
level.
Although significant results were achieved in previous years in this field (eradication of rabies and classical swine fever), the
continuation should be ensured, notably for priority diseases which exist in surrounding region (FMD- Foot and mouth
disease, ASF- African swine fever, PPR- Peste des petits ruminats). Activities should be envisaged for development of short
and long term strategic plans for regional cooperation and collaboration in the control and eradication of animal diseases
within the Western Balkans. In particular, the actions will be focused on enhancing the laboratory networking, harmonised
surveillance procedures, sharing of epidemiological information and common animal disease control strategies.
Another aspect of regional cooperation is related to land and sustainable forests management (SFM). This action should be
focused on the joint efforts aimed to prevent land pollution and joint surveillance of forests aimed to prevent forests fires, and
improvement SFM especially with coppice and private forest with focus on energy purposes).
Cross-border cooperation
IPA CBC programmes should be more focused on implementation of the joint elements of rural development programmes of
participating countries, namely those related to investments into physical infrastructure of joint interest (local roads,
sewerage, cultural/touristic objects), but also to the actions covering diversification of activities of rural economies. The main
rationale for this approach lies in fact that major part of the territory benefiting from CBC support belongs to rural areas.
Aspect of regional cooperation are: Forest Fire Prevention and Control in Western Serbia; Usage of irrigation potential of
rivers (especially Drina); Conservation of agro-biodiversity in cross border region; Support to producers of strategically
important products for export, such as berry-like fruit in Western Serbia.
Trans National Programmes
In order to contribute to the implementation of the objectives of the EU Strategy for Danube Region, namely those relating
to the Pillar I “Connecting the Danube Region” and more specifically the Priority area (1) To improve mobility and
multimodality (improve the regional/ local cross-border infrastructure and the access to rural areas) and Priority area (2) ‘To
encourage more sustainable energy’ (set-up a cooperation mechanism of cities and villages in the region with the view to
commit to greenhouse gas emissions reduction, exchange best practices and test pilot projects on energy efficiency and
221
renewable energy and build on the ‘Renewable Energy Cooperation of Rural Areas), TA for technical project preparation
and assistance for works and supply is needed for projects aimed to support village development in the Danube region
through investment in rural tourism and infrastructure, encourage diversification of rural economy and improve the efficiency
of the local economy by strengthening the capacity of local communities and the development of tourism (rural, agricultural,
environmental), the development of local trade, and improving agricultural production in the Danube region.
The agriculture and rural development sector in the Republic of Serbia, in the context of Sector Approach, is in the
responsibility of the Ministry in charge for agriculture and rural development and its constituent Directorates which are: the
Veterinary Directorate, the Phytosanitary Directorate, the Agricultural Land Directorate, the Directorate for Agrarian
Payments, the Directorate of National Reference Laboratories and the Forestry Directorate; together with the inspection
services of the Ministry. In addition, the following institutions are involved in operation of the sector: the Provincial
Secretariat for agriculture, forestry and water management, the Agricultural Extension Service (on republican and provincial
level), the local authorities, national scientific and educational institutions (secondary and tertiary education) and the
Intellectual Property Office (specifically for indications of geographical origin). The lead institution for the sector is the
Ministry in charge of agriculture and rural development.
In the context of Sector Approach, The Ministry coordinates the work of all relevant institutions in the sector in regard to
planning, programming, implementation and monitoring of the Agricultural and Rural Development Sector
measures/operations which will be supported by EU funds and other international development assistance. Responsibility
for formal submission and later implementation of measures/operations depends of their content and responsibility of
institutions involved in the Agricultural and rural Development sector.
and international assistance and to increase the efficiency and effectiveness of development assistance, a Sector Working
Group (SWG)288 for Agriculture and Rural Development has been established. The SWG for Agriculture and Rural
Development is responsible for the coordination of activities related to planning, programming and monitoring of EU funds
and international assistance. In addition, the SWG is responsible for proposing relevant measures and activities and to
support the introduction of the Sector Approach into the Agriculture and Rural Development sector. The functioning,
management, organisation and composition of SWG is more precisely defined by the ’Rules of Procedure for Sector
Working Groups for the Programming and Monitoring of the EU funds and development assistance’. The institutions
participating in the SWG are as follows: the Ministry in charge of agriculture and rural development, the Ministry in charge for
energy, Ministry in charge for environmental protection, Ministry in charge for urban and spatial planning; the Ministry in
charge for natural resources, the Ministry in charge for regional development, Ministry in charge for local self-government,
the public administration body in charge for gender equality and the Office responsible for European integration affairs
(SEIO). Members of the SWG are officially appointed representatives of the above mentioned line ministries and institutions,
at the level of State Secretary or Assistant Minister, or appointed Senior Programming Officers (SPOs) and SEIO.
In order to enable a more inclusive and transparent dialogue, consultation and communication with all relevant stakeholders
in the respective sectors, SEIO has established a consultation mechanism with civil society organisation (CSOs) 289. This
platform that enables exchange of information with, and contributions from CSOs, in relation to the planning of development
assistance, particularly the programming and monitoring of the IPA. SECO represents a consortium of maximum three
CSOs, where one is defined as Leader of the consortium. SECO is composed of the CSOs that have significant experience
with public advocacy, analyses and research in the sector, as well as experience in direct work with service providers and
beneficiaries. They are influencing public policy due to their successful networking and partner work with other local and
international civil society organisations well as constructive cooperation with state institutions and the constant monitoring of
their work. Members of SECO are participating at the SWG meetings based on the needs and requirements of each SWG
meeting and takes part in consultation processes for analysing sector priority goals, measures and operations for financing
from EU funds and international assistance. Other relevant stakeholders (agencies, private, academic sector, CSOs, etc.)
can participate at the SWG meetings based on the topic, needs and requirements of each Sector Working Group meeting.
288
Act on establishing the SWG from 5.11.2012. No: 119-01-68/2012-03
289
Introduced in 2011
222
force made up of representatives from the Sector Lead Institution, Lead donor and SEIO. SWG is also acting as Sectorial
290
223
PRIORITY 1: Increasing the competitiveness of agribusiness sector and created conditions for the sustainable growth of farmers' incomes (with ref. to IPA RD axis 1)
Baseline
Indicator Unit Means of Verification charge for
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
reporting
1.1 Change in volume of Gross Agricultural Output Statistical Office
-1.1
(GAO) - Annual Growth Index, change from previous % Statistical Yearbook of the Republic
(2011)
year of Serbia
Statistical Office
1.2 Change in volume of Manufacture of food products - - 2.9
% Statistical Yearbook of the Republic
Annual Growth Index, change from previous year (2011)
of Serbia
MEASURE 1.1: Investing in agricultural holdings, processing and marketing of agricultural produce, introducing EU standards for agricultural produce and food
Baseline
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
reporting
Ministry in
charge for
Paying Agency (PA)
1.1.1 Nr of supported farm holdings Nr farm agriculture and
progress report
rural
development
Ministry in
charge for
Nr
1.1.2 Nr of supported processing businesses PA’s progress report agriculture and
enterprise
rural
development
Ministry in
charge for
1.1.3 Nr of established farmer groups Nr group PA’s progress report agriculture and
rural
development
MEASURE 1.2:.Fostering innovations, uptake of research and knowledge transfer by means of extension service
Baseline
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
reporting
Ministry in charge for Ministry in
1.2.1 Nr of participants of modern curricula based Nr Agriculture, Forestry charge for
training courses participant and Water agriculture and
Management, , rural
224
Department for Rural development
Development Report
Ministry of
Ministry of Education,
Education,
1.2.2 Public investment in agricultural research as a Science and
% Science and
percentage of GDP Agriculture Technology
Technology
Development report
Development
PRIORITY 2: Improving the quality of life of the rural population and attractiveness of rural areas (with ref. To IPA RD axes 2 and 3)
Baseline
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
reporting
Statistical
Household Budget
86.4 Office of the
2.1 Rural households above poverty line % Survey / (SILC
(2010) Republic of
potentially)
Serbia
MEASURE 2.1: Creating conditions for improvement of rural infrastructure
Baseline
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
reporting
Ministry in
Agriculture, Forestry
charge for
2.1.1 Nr of mature projects ready for financing and Water
Nr project agriculture and
Management, PA,
rural
Department for rural
development
development report
MEASURE 2.2: Supporting diversification of rural economy and creation of new jobs
Baseline
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
reporting
Ministry in
charge for
2.2.1 Nr of implemented economic diversification projects Nr project PA’s progress report agriculture and
rural
development
% of total Statistical
employed 58.3 Office of the
2.2.2 Employment of rural population out of Agriculture Labour Force Survey
rural (2012) Republic of
population Serbia
MEASURE 2.3 Improving the Local Action Groups (LEADER similar) and introducing agri-environmental actions
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 charge for
225
reporting
Ministry in
charge for
and Water
2.3.1 Nr of registered new LAGs Nr LAG agriculture and
Management
rural
Department of Rural
development
Development report
Ministry in
charge for
2.3.2 Nr of supported agri-environmental actions Nr project PA progress report agriculture and
rural
development
PRIORITY 3: Strengthening administrative capacities for alignment of agriculture (CAP Pillar 1) and rural development (IPA RD & CAP Pillar 2) policies and institutions with EU acquis (with ref. to
administration capacity building)
Baseline
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
reporting
Ministry in
charge for
and Water
3.1 Signed IPA RD conferral of management YES/NO YES agriculture and
Management,
rural
Department of Rural
development
Development report,
3.2 Closed Chapter11 of the acquis YES/NO YES SEIO report (NPAA) SEIO
MEASURE 3.1: Improving rural development analytical, programming, programme management and implementation capacities
Baseline
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020
reporting
Ministry in
charge for
3.1.1 Relevant institutions ready for implementation of
YES/NO YES agriculture and
IPA RD
rural
development
Ministry in
charge for
3.1.2 Defined IPA RD measures accredited YES/NO YES agriculture and
rural
development
MEASURE 3.2: Improving administrative capacities for agricultural and food policy and CMO
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 charge for
226
reporting
Ministry in
charge for
3.2.1 % of implemented EU aligned ARD sub-sector and Water
% agriculture and
policies against planned Management
rural
Department of Agrarian
development
Policy report
PRIORITY 4: Improving standards and systems for food safety, plant health, animal health and welfare (with ref. to alignment to acquis)
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 for reporting
4.1 % of adopted EU aligned regulations against annual SEIO annual report on
% SEIO
NPAA NPAA
Agriculture, Forestry and Ministry in charge for
4.2 % of implemented EU aligned regulations against nr
% Water Management agriculture and rural
of adopted
Legislative Department’s development
report
Measure 4.1 Building standards and capacity for veterinary services, animal health and welfare
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 for reporting
4.1.1 % of implemented EU aligned veterinary, animal Ministry in charge for
Veterinary Inspection’s
health and welfare standards and control systems % agriculture and rural
registrar of laboratories
against planned (3) development
4.1.2 % of laboratory tests meeting requirements of Veterinary Inspection’s
% agriculture and rural
adopted standards against baseline(2) registrar of laboratories
development
4.1.3 Change in number of animal disease and zoonosis Veterinary Inspection’s
incidents against baseline registrar of disease
development
MEASURE 4.2: Strengthening food safety system
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 for reporting
Ministry in charge of Ministry in charge for
4.2.1 % of implemented EU aligned food safety
% agriculture, forestry and agriculture and rural
standards and diagnostic protocols against planned(3)
water management development
Ministry in charge of Ministry in charge for
4.2.2 Nr of laboratory tests meeting requirements of
agriculture, forestry and agriculture and rural
adopted food safety standards and protocols Nr test
water management development
4.2.3 Change in foodborne illness incidents against Ministry of Health annual Ministry in charge for
%
baseline report Health
227
MEASURE 4.3: Building plant health and plant protection product standards and administrative capacities
(2012)* 2013 2014 2015 2016 2017 2018 2019 2020 for reporting
4.3.1 % of implemented EU aligned phytosanitary plant Ministry in charge for
Plant Protection
health and plant protection products standards and % agriculture and rural
Directorate’s report
control systems against planned development
4.3.2 Nr of laboratory tests meeting requirements of Plant Protection
Nr test agriculture and rural
adopted EU aligned standards Directorate’s report
development
4.3.3 Decrease of harmful organisms incidents Plant Protection
Directorate’s report
development
228
Estimated total disbursement of around 91 million EUR of ODA funding during 2007-2012 (source ISDACON) putting the
Agriculture and Rural Development (ARD) Sector on the 8 place among the all recipients of assistance from the
international donors. There are three main sources of international support: EU through IPA funds; Bilateral Assistance –
from EU countries through their developing agencies (Germany, Netherlands, Denmark, Sweden, Austria, Italy, etc.) and
other countries (USA, Japan, Norway, Switzerland); and international organizations and IFI’s through credit lines, loans and
grants (UNDP, FAO, EBRD, WB, USAID, USDA, Germany etc.). Largest and most important donor in the sector has been
the EU with total disbursement within IPA component I amounting to 58 million EUR in the period 2007-2013.
IPA I financial support, for ARD sector in 2007-2012, was provided for various activities e.g. the establishment of the
Serbian Farm Accountancy Data Network (FADN), support to National Reference Laboratories Directorate, Support for
Food Safety, Animal Welfare and Control/Eradication Classical Swine Fever and Rabies (Multi- Beneficiary Programme,
2008, for Western Balkans), development of a sustainable inspection services information system for the Ministry in charge
for agriculture and rural development, Institutional Capacity Building and Support to Agriculture and Rural Development in
Serbia for IPARD implementation and etc. IPA 2013 support to the ARD sector is focusing on further enhancement of food
safety and disease control systems, modernization of agricultural and food sector and development of rural areas with
protected environment but also with the aim of securing improvement of quality of life of rural population.
Whilst all donors expressed their support for Serbia in its key objective of EU integration and harmonisation, and in
accordance with national priorities from the National Agriculture strategy (2005), their programmes and projects were often
of a more specific nature, addressing market reforms and competitiveness (e.g. the large USAID Agribusiness Project, or
the work with the extension services by the World Bank STAR Project) or had tangible project objectives working to improve
one commodity (e.g. the Fruits and Berries project financed by Denmark). 291 But in most cases, according to the report
“Evaluation of effectiveness and efficiency of development assistance to the Republic of Serbia per sector” 292, besides that
relevance of ODA overall is considered to be high, the effectiveness of the support is more visible at the local level and
with bilateral projects while effectiveness of the support at the central level has been less successful. In addition efficiency
at this level remains problematic due to lack of managerial capacity of ministry officials, the adoption of a reactive (passive)
approach, and the unclear division of responsibilities for achieving efficiency savings and overall can be consider being law.
So while individual projects may have achieved their objectives (effectiveness) and gone on to achieve outcomes (impact) in
their own narrow sense, the overall impact on the ARD sector is quite weak and the sustainability of outcomes will be
difficult to achieve.
Besides main recommendation, given in the SIDA report on the “Evaluation of the effectiveness and efficiency of
development assistance to the Republic of Serbia per sector” (concentrate and integrate ODA to maximize impact;
strengthen policy planning and coordination at the centre of Government; apply the most effective and efficient modalities
based on agreed rules; establishing a culture and embedding a system of monitoring and evaluation) which are relevant for
all sectors, the evaluation report are also proposing specific sector recommendations. In aim to have big contribution of
agriculture and rural development sector in achievement of macroeconomic stability and economic recovery of Serbia, the
sector need more creative development vision. According to evaluation reports, to be more competitive, the sector needs to
start producing more high value products, restructuring, increasing investment and output, productivity and quality. ODA
support will help reorientation of the sector in following areas: market research (to determine new markets and future food
demand); strengthen research and development (R&D) in aim to produce high value products; support agri-business SMEs
as source of employment in rural areas; intensive waterway network for irrigation purposes; and strengthening extension
service as main channels for dissemination of knowledge to farmers. In general Serbia should improve efficiency of the
governance of the accession process, result-based management, increase efficiency of interventions and use more
opportunities for regional (in former Yugoslav republics) sharing of learning and experiences along the road to accession.
291 Technical Assistance for Evaluation of Agriculture and Rural Development Sector Implemented and Financed by IPA Programmes and other Donors in
the Republic of Serbia. Evaluation Report (EU Delegation, January 2013)
229
B10. CULTURE THEMATIC AREA
B10.1. Scope and background for the thematic area
The Scope of the area reflects national priorities as well as needs arising from the EU accession process led by the
preparation to negotiate on chapter 26 - Education and culture. For the cross-cutting area of culture following themes and
sub-areas are of special concern:
 contemporary art and culture
 creative industries
 cultural heritage
 intercultural dialogue
 human and civil rights
 public interest
 regional and international cooperation
 culture & education
 cultural tourism and culture & business.
The government announced the established cultural policy based on law on Culture, as well as on international conventions
(Council of Europe and UNESCO) ratified by Serbia. In strategic and operational terms, the focus will be on the adoption
and ensuing implementation of the Culture Development Strategy 2013-2023 and on addressing the problems of public
cultural institutions, primarily the ineffective investment policy relating to the modernization of major national cultural
institutions, but also inefficient management, both in the administration dealing with the cultural policy and in cultural
institutions. The aim is to further develop and revitalise the cultural infrastructure and reconsider the management approach
and petrified practices in cultural institutions. Needless to emphasise, cross-sector cooperation is an essential part of
modern definition of cultural policy. Regardless of this fact, the overall potential of culture as a factor of social and economic
development is by far not exploited sufficiently.
Although culture in Serbia is facing serious constraints concerning financial problems and lack of a national cultural strategy,
some system areas are more sustainable than others and show essential vitality. The role of the civil sector in this process
is highly significant: CSOs have realised many interdisciplinary projects on human rights, intercultural dialogue,
reconciliation and regional cooperation, audience development, inclusion, gender and LGBT issues. Bearing in mind that
the civil sector is more adaptable to new cultural currents, its impact on the cultural system and public sphere becomes
stronger. The public sector also comes up with some important initiatives in respect to modern approaches to implementing
the cultural policy through more efficient and effective management and program concepts (e.g. Belgrade Philharmonic
Orchestra, research institutes and centres). Each for their part, public and civil sector, is giving impulse to education and
capacity building. Public, civil and private sector cooperation is present, but still not strategically positioned to make the
synergies more effective.
One of the major challenges is the decentralization of the cultural system. As a response, several local cultural strategies
(Belgrade, Kragujevac, Nis, Novi Sad) and strategic plans for a number of local cultural institutions (Leskovac, Pirot, Vranje,
Zajecar) have been adopted. More are still under development. Local civil sector organisations are also very active in
contributing to this process.
The public budget for culture in 2013 decreased to a very low percentage (0.62%), which has provoked strong reactions and
public debates. In accordance with this trend and raising the concept of self-sustainability, the cultural organizations started
turning to the culture market, which is still undeveloped and unregulated. These circumstances have severely threatened
the cultural organizations well-functioning. Financial problems are also heavily impacting the programme quality, production
standards and enthusiasm of professionals. Furthermore, sponsorships and other types of co-opting the business sector to
support the culture development were drastically reduced due to the economic crisis.
The growth of the creative industries (covering topics relating to cultural heritage and contemporary culture) is not fully
satisfactory, yet there are some initiatives in this field. The results of a study of the Creative Economy Group performed
within the project Creative Serbia 2020 relating to size and performances of the target group in this sub-area is promising:
full time employment of 150,000 person (creative and complementary industries - about 7.3% of total employment); 8,230
enterprises, 750 entrepreneurs, about 10 relevant civil initiatives; 9.8 billion EUR total turnover which makes 16.8% of total
turnover of economy; contribution of core creative industries is 2.9% of total GVA, supporting services 6.9% of GVA and
productivity 35% higher than the average of the Serbian economy (2010).293
293 Creative Economy Group, 2011
230
In the field of cultural heritage the institutional support is focused upon: the research, protection, presentation and
sustainable use of immovable and archaeological heritage, intangible heritage and museums assets, archives and libraries
assets. Although culture is a rather marginalized theme when it comes to ODA, some initiatives stand out like the Project of
Rehabilitation of Senj mine which is the sole project in the Republic of Serbia financed by the European Parliament within
the Pilot scheme for preserving and restoring cultural heritage in the Western Balkans and the Ljubljana process as a joint
initiative of the Council of Europe and EU.
Major problems in this field are related to the lack of strategic direction, deficient law enforcement, the scarce resources
reflected in outdated research, presentation, audience development, animation, and mediation activities. Some of these
depend on well-developed and comprehensive digital registries. The state of affairs in Serbia conversely indicates to varying
levels of digitalization in a range of sub-areas often bypassing the central registries. Another problem refers to inefficient
work and lack of proper management in cultural institutions. The Ministry in charge is neither monitoring nor evaluating the
achievement of their results, although almost 69% of the Ministry's budget294 is transferred to them. There is much scope for
improvement in this respect.

Given that there is no strategic framework as yet in place for the field of culture main departure points in setting directions of
the cultural policy are based on the Law on Culture and ratified International Agreements and Conventions as listed in the
Annex.
Based on that, ten principles of cultural development are articulated as being priority:
 Freedom of expression in cultural and artistic creation;
 Autonomy of social subjects in culture;
 Openness and availability of the cultural content to the public and citizens;
 Respect for the cultural and democratic values of European and national traditions and diversity of cultural
expression;
 Integration of cultural development into social-economic and political long-term development of the democratic
society;
 Democratic cultural policy;
 Equality of social subjects in the process of establishment of institutions and other legal entities in culture and
equality in the working process of all institutions and other subjects in culture;
 Decentralization of the decision-making process,
 Organizing and financing of cultural activities;
 Encouragement of cultural and artistic creation and preservation of cultural and historical heritage;
 Encouragement of sustainable development of the cultural environment as an integral part of the living
environment.
The Culture Development Strategy covering the period until 2023 is currently under preparation and will be in line with the
above principles. The Strategy will give an analysis of the current state, main postulates of culture development, objectives,
priority areas and cross-bordercooperation; Strategic directions and instruments covering cultural property protection, in the
country and abroad, promotion of cultural creativity and production (including national minorities), work of institutions and
other actors in the field of culture and capital investments for the institutions; human resources and their education, scientific
and research work, amateurism and inter-sector cooperation (stimulating tax, entrepreneurship). The adoption of the
Strategy is planned in 2013 as per NPAA.
In view of the above principles, the area and SWOT analysis, the NAD priority 1 has been defined as: ‘’Develop a system
which enables the implementation of EU standards in culture and fosters cultural diversity on the territory of Serbia’’. The
attainment of this priority is envisaged through two types of actions. The first relates to the further development of cultural
policy instruments – legal, financial and organisational - with a particular focus on better management of public institutions
and cultural organisations, whereas the second type of actions concentrates on the preservation of cultural heritage and
support to cultural production and creativity in arts.
EU Strategy for the Danube region aims at boosting the development of the Danube Region and was endorsed in 2011.
The Strategy articulates four main pillars of joint actions, out of which the first - Connecting the Danube Region within
294Ministry of Finance, Law on the Budget of the Republic of Serbia for 2013.
231
Priority 3: To promote culture and tourism, people to people contacts refers to development in this area. Several actions are
proposed relating to culture: to build on cultural diversity as strength of the Danube Region; to enhance cooperation and
contacts between people of different origins, to encourage creativity, and provide a driving force for cultural innovation and
economic development, based on heritage, traditions and tourism; to promote cultural exchange and exchange in the arts;
to collect existing data on cultural activities and establish a comprehensive data base giving an overview of cultural activities
in the Danube Region.
The Stabilization and Association Agreement (Title VIII, Cooperation policies, Article 103 – Cultural cooperation) states
that cooperation serves to raise the mutual understanding and esteem between individuals, communities and peoples. The
cooperation should promote cultural diversity within the framework of the UNESCO Convention on the protection and the
promotion of the diversity of cultural expressions. Article 4 of the SAA focuses on the cooperation which will promote
the audiovisual industry and encouragement of coproduction in the field of television and cinema.
UNESCO Conventions ratified: Convention on the protection and promotion of the diversity of cultural expressions (2005,
ratified 2009); UNESCO Convention on Protection of the World Cultural and Natural Heritage (1972, notification of
succession 2001); UNESCO Unidroit Convention on stolen or illegally exported cultural objects (1995, notification of
succession 2001); Convention for the Safeguarding of Intangible Cultural Heritage (2003, ratified 2010); Fighting against the
illicit trafficking of cultural property (1970, Notification of succession 2001); Protection of Cultural Property in the Event of
Armed Conflict (1954, Notification of Succession 2001); Protection of Copyright and Neighbouring Rights (1952, 1971,
Notification of succession 2001); UNESCO Convention on the rights of persons with disabilities (2006).Council of Europe
conventions ratified: Convention on the Protection of Human Rights and Fundamental Freedoms (1950, ratified 2004);
European Cultural Convention (1954, ratified 2011); Convention for the Protection of the Architectural Heritage of Europe
(1985, ratified 2001); European Charter for Regional or Minority Languages (1992, ratified 2006); European Convention on
the Protection of the Archaeological Heritage (Revised) (1992, ratified 2009); European Convention on Cinematographic
Co-Production (1992, ratified 2004); Framework Convention for the Protection of National Minorities (1995, ratified 2001);
Council of Europe Framework Convention on the Value of Cultural Heritage for Society (2005, ratified 2010; European
Landscape Convention (2000, ratified 2011).
B10.3. EU Agenda
Europe 2020 sets the direction of EU policies for the period 2014-2020. These are:
 Smart growth – developing an economy based on knowledge and innovation
 Sustainable growth – promoting a more resource efficient, greener and more competitive economy
 Inclusive growth – fostering a high-employment economy delivering economic, social and territorial cohesion
Smart growth means strengthening knowledge and innovation as drivers of our future growth. This requires improving the
quality of education, strengthening research performance, promoting innovation and knowledge transfer throughout the
Union, making full use of information and communication technologies and ensuring that innovative ideas can be turned into
new products and services that create growth, quality jobs and help address European and global societal challenges.
Creative Europe as the new framework programme for Europe's cultural and creative sectors for the 2014-2020 Multi-
Annual Financial Framework (MFF) will help to seize the opportunities of the ‘digital age’ and globalization and reach their
potential so that they can contribute to the Europe 2020 goals for sustainable growth, jobs and social cohesion. This
Programme opens up new international opportunities, markets and audiences and builds on the success of the MEDIA and
Culture programmes in which Serbia too was involved in the period of 2007-2013. Concerning the international dimension,
the current annual calls with a changing country focus will be abandoned in favour of a greater opening of the programme to
acceding, candidate and potential candidate countries, countries of the European neighbourhood area and of the European
Economic Area (EEA). As regards the regional scope of MEDIA, access should be simplified and offer the possibility to
participate to "the greater European audio-visual area", i.e. all acceding, candidate and potential candidate countries295.
Creative Europe programme will be comprised of three Strands:
 A Cross-sectorial Strand addressed to all cultural and creative sectors;
 A Culture Strand addressed to the cultural and creative sectors;
 A MEDIA Strand addressed to the audio-visual sector.
295 COM(2011) 786/2 Creative Europe - A new framework programme for the cultural and creative sectors (2014-2020)
232
General objectives of the new framework programme are: Fostering the safeguarding and promotion of European cultural
and linguistic diversity and strengthening the competitiveness of the cultural and creative sectors with a view to promoting
smart, sustainable and inclusive growth.
B10.4. Overall objectives and priorities in the thematic area (2014-2020)
The SWOT analysis has been undertaken additional to the situation analysis presented in previous sections, to set out the
long term objectives and medium term strategic priorities and realistic and targeted measures.
 New initiatives in the field of interdisciplinary and inter-  Lack of strategic direction and effective cultural policy
sectorial approach to culture (arts, culture, design,  Lack of monitoring and evaluation of policy
architecture, business, creative industries, social implementation
activism, human rights, social responsibility, cultural  Reduced budget for culture, and lack of a regulated
management) - mostly generated by the civil sector culture market (lack of instruments of economic
 Long research tradition in culture stimulus for investment in culture)
 Development of local cultural strategies (city and  Outdated approach to cultural production,
county level) management, and inadequate cultural infrastructure
 Continuous dialogue with neighbouring and other EU  Centralized cultural system
countries  Low level of professional standards in art and cultural
 Rich natural resources combined with interesting production
cultural assets and potentials  Low level of professional standards in protection and
presentation of cultural heritage
 Insufficient cross-sector cooperation and policy
coordination related to culture
 Creation of a regional market based on similar  Fatigue in the cultural scene (lack of funds,
language (film, publishing, performing arts, media) unregulated system)
 Development of regional and international cooperation  Degradation of culture and the value system due to the
with the aim to create internationally recognized political and economic interests
regional identity  Disappearance of the intangible cultural heritage,
 Rich trans-cultural identity of cultural heritage which could be exploited in view of cultural tourism and
 Cultural tourism and local community development cultural industry development
 IPA (in particular CBC and MB) and other international  Protection, preservation and sustainable use of cultural
funding programs heritage endangered due to lack of resources
 Potentials of Creative industries
 Industrial infrastructure legacy
 Capacity building of cultural organizations
Taking into account the Law on culture and international obligations in the cultural policy, the objective for 2014 – 2020
is: Full achievement of professional EU standards in the implementation of the overall cultural policy aimed at
protection of public interest, freedom of expression, cultural identities, social cohesion and regional
development.
In the absence of a culture development strategy, the articulated objective is a response to many assessed weaknesses
both in formulating and implementing a coherent cultural policy. Apart from the strategic framework, what is needed is to
strengthen institutions and other actors in culture to efficiently operate and use the scarce financial resources in the most
effective way and in line with values articulated in ratified international conventions and agreements.
Following priority has been identified in order to contribute to achieving the overall objective and respective reforms in this
area:
233
Priority 1: Developing the system which enables the implementation of EU standards in culture and fosters cultural
diversity on the territory of Serbia
Establishing and implementing EU standards of cultural policy aimed at the protection and preservation of the cultural
identities and cultural heritage, improved social cohesion and international and regional cooperation are key objectives in
this field. In order to improve the cultural system it is necessary to focus upon capacity building of all actors in culture (public
administration at all levels, cultural institutions/associations/private initiatives) with the aim to foster human rights, free
expression, cultural diversity, intercultural dialogue, gender equality and social inclusion. In addition, perceiving culture as
the potential agent in enhancing the competitiveness should be explored in terms of supporting creative industries and
cultural tourism.
B 10.5. Measures for implementation of priorities in the thematic area
Priority 1: Developing the system which enables the implementation of EU standards in culture and fosters cultural
diversity on the territory of Serbia
Measure 1.1. Strengthening professional standards by further development of cultural policy instruments (legal,
financial, organizational, etc.)
In order to help all relevant actors in culture implement the cultural policy in a more coherent and effective way assistance
for capacity and institutional strengthening of public administration at all levels is needed to further develop legal and
financial instruments and mechanisms. Regarding legal instruments, the Ministry announced some changes of the Law on
Culture, in terms of ensuring better implementation. In addition, there is an initiative to partly change several by-laws, after
the adoption of amendments to the Law on Culture. As for financial mechanisms, the Ministry in charge for culture deploys
the instrument of the open call for a variety of programmes and it is vital to introduce monitoring, evaluation and reporting
mechanisms for the assessment of the effectiveness of such support.
One of major problems in implementing the cultural policy is the outdated approach in the management and promotion of
cultural assets and contemporary achievements. For that reason support is needed for improving professional standards
and organizational aspects of work in cultural institutions/associations/private initiatives in terms of fostering modern
concepts for conceiving and implementing projects in contemporary cultural/art production and cultural heritage. Support is
also crucial in introducing a more efficient management in cultural institutions through the development of strategic and
management plans and capacity building to implement them.
Measure 1.2. Preserving the cultural heritage and supporting cultural production and creativity in arts
This measure will support the protection and preservation of cultural heritage and promote contemporary cultural production
for strengthening the cultural institutions and other actors operating in the field of culture in terms of project preparation and
implementation. In order to finally progress with the digitalization of cultural heritage, assistance is vital for completing the
central national registries, envisaging the integration of fragmented systems. In order to promote and popularize culture,
assistance is needed for enhancing the research in culture by promoting partnerships between cultural institutions delivering
topic specific high level trainings and educational institutions (e.g. Institute for Conservation). Revision of outdated
presentation techniques by introducing new exhibition concepts in museums and elsewhere is a priority action for support.
Also, cooperation and support is needed for the exchange and mobility of individuals/professionals and cultural production.
All future investments should be closely linked with the direction of the new strategy and will follow procedure and criteria for
identification and selection of investment projects set by NIPAC TS.
Regional, Cross-Border and Transnational Themes in Culture
IPA Multi-Beneficiary assistance fosters common approaches and regional cooperation in cultural heritage and reappraisal
of history as a means of dialogue, reconciliation and developing good neighbourly relations in the Western Balkans. The
Ljubljana process (EU and Council of Europe) in which Serbia has taken active part already yields results (Franciscan
Monastery in Bac) and there are other projects on the priority intervention list within this framework where support for project
preparation for cultural infrastructure is needed (e.g. Suvaca mill in Kikinda, the Site Justiniana Prima, the Military Institute in
Kragujevac and Foundry Pantelic in Belgrade).
Concerning contemporary cultural and art production the focus of interest is placed on the existing initiatives such as the
Council of Ministers of Culture of South East Europe, the South East Museum Network and the Forum of Slavic Cultures.
According to the declaration adopted by the Council of Ministers of Culture of South East Europe, Serbia got the support
from all countries in the region to initiate the regional mechanism for the Film Fund.
234
Future IPA CBC and transnational assistance will be valuable for the development of “Cultural Routes” and other forms
of cultural heritage clusters and networks in the Danube region to build upon the pilot project “Cultural Route – Fortresses
on the Danube” (involving seven cities on the Danube). Also, to fully reflect national priorities, support is needed for the
development and promotion of projects in contemporary cultural/art production which foster inter-cultural dialogue and liaise
with the business community on both sides of the border. Exchanging best practices related to cultural tourism and
conceiving and promoting joint quality products and services in respective cross-border areas would contribute to the local
development.
Priorities concerning the implementation of the EU Strategy for the Danube Region and in particular those relating to the
Pillar I - Connecting the Danube region through the promotion of culture and tourism and people to people contacts will
among other concentrate on building professional capacities on local and regional level on best cultural practice in
the Danube region, preservation, protection, reconstruction and promotion of cultural heritage and its use for contemporary
production purposes. For Serbia, of particular interest is fostering mobility of artists and cultural operators in
the Danube region (events, festivals, residence programs, etc.), building professional capacities on local and regional level
aimed at the development of regional and international cooperation, thus bundling efforts to create an internationally
recognized regional identity. Also, networking and cooperation with other European cities on the Danube, with the aim of
recognizing European values and mutual European heritage is crucial for the achievement of the Strategy’s objectives.
B10.6.Institutional framework for implementation of thematic area approach
The policies relating to culture are addressed by: the ministry in charge of culture, the ministry in charge of economy, the
ministry in charge of education, the regional secretariat in charge of culture (Vojvodina), local authorities.
Support to policy making and policy implementation in Culture is provided by: the National Council for Culture discussing
cultural policy models and priorities; reinforcing the institutional system and its professional standards (including a return to
functioning of closed institutions waiting for renovation), audience development, digitalization of public "memories",
development of inter-sectorial relations (especially involving business in cultural financing), etc. There are also numerous
other institutions operating in the field of culture: The National Councils of National Minorities (20); Centres for Culture of
National Minorities of Vojvodina (5); Cultural institutions founded by the state (26); Cultural institutions founded by the region
of Vojvodina (13); Cultural institutions founded by cities and communities.
CSO play a significant role in Serbian society in terms of implementation of cultural policies. Concerning the modern
concepts in culture, as well as cultural policy goals, CSOs in Serbia in some cases even manage the functions of public
cultural institutions. There are also different types of private initiatives in culture implementing the culture policy of public
interest complementary to the public/civil sector. They also substantially contribute in developing cultural industries. To a
lesser extent, philanthropy is also present.
Group (SWG) for the area of culture and media296 has been established. The SWG for the area of culture and media is
responsible to coordinate activities related to planning, programming, and monitoring of EU funds and international
assistance, to identify relevant measures/operations and activities. The functioning, management, organisation and
composition of SWG is more precisely defined by the Rules of Procedure for Sector Working Groups for the Programming
and Monitoring of the EU funds and development assistance. The Sector Working Group for the area of culture and media
comprises of representatives from European Integration Office, Ministry in charge of Culture affairs, Ministry in charge of
Telecommunication affairs, Ministry in charge of Youth, Directorate for Gender Equality of the Ministry in charge of Labour,
Employment and Social Policy affairs. The work of this SWG was joined with the work of the SWG for CSOs. Thus, the
representatives from the Office for Cooperation with Civil Society, the Office for Human and Minority Rights, Ombudsman
Office and Commissioner for Protection of Equality also take part at the meetings. Members of the SWG are officially
represent the interests of donors active in particular sectors/areas.
235
Task force made up of representatives from the area Lead Institution, Lead donor and SEIO. SWG is also acting as the
Sectorial Monitoring Subcommittee for IPA TAIB under the decentralised management.

236
PRIORITY 1: Developing the system which enables the implementation of EU standards in culture and fosters cultural diversity on the territory of Serbia
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 reporting
1.1. % of institutions and cultural
Annual Report of the Ministry,
organizations working in line with
100 100 Annual reports of cultural
developed strategic and implementation % N/A N/A 30% 50% 80% 100% 100% Ministry in charge of culture
% % institutions
plans, reporting on the achievement of
cultural organization report
results performed regularly
Annual Reports of cultural
1.2. Degree/Level of digitalization in culture % N/A N/A 20% 30% 50% 75% 85% 90% 100% institutions, Ministry in charge of culture
Ministry in charge of culture
MEASURE 1.1: Strengthening professional standards in order to further develop instruments of cultural policy (financial, legal, organizational, etc.).
Institution in charge for
Indicator Unit reporting
(2012)
2013 2014 2015 2016 2017 2018 2019 2020
1.1.1. M&E model/methodology for all Evaluation reports for
N/A N/A x Ministry in charge of culture
Ministry’s open calls for (co)financing respective open calls
1.1.2. No of cultural institutions with
developed management plans, No of 10 20 26 out Cultural Institutions Report
5 out
cultural institutions with adequate No N/A N/A out out of 26 Cultural organization report Ministry in charge of culture
26
management expertise in steering 26 of 26 (100%) ZAPROKUL
structures
MEASURE 1.2: Preserving the cultural heritage and supporting cultural production and creativity in arts
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 reporting
1.2.1. % of digitalized thematic units within Ministry’s Annual Reports,
Ministry in charge of culture
the Central digital registry for cultural % N/A 75% 100% Annual Report of the National
heritage completed Cultural institutions
Ministry’s Annual Reports,
1.2.2.% of digitalisation of Intangible
Annual Report of the Centre for Ministry in charge of culture
heritage according to the UNESCO % N/A 50% 100%
Intangible Cultural Heritage of
propositions
the Republic of Serbia
Annual Reports of Museums
1.2.3. % of exhibitions introducing new Annual Reports of independent
% N/A N/A N/A 10% 30% 50% 60% 65% 70% Ministry in charge of culture
approaches in cultural presentation cultural scene (coordinated by
NKSS, SEKO et al)
237
Ministry’s Annual Reports,
1.2.4. % of joint projects and events
Annual Reports of independent
between the public and civil sector in the No N/A N/A 50% Ministry in charge of culture
cultural scene (coordinated by
field of culture
NKSS, SEKO et al)
238
The EU supported the developments in the field of culture through the Transnational cooperation programme 2007-2013
“South East Europe” - CULTEMA, the EC Community Programme "EC CULTURE 2007 - 2013", and within the IPA Multi-
Beneficiary assistance the Ljubljana process focused on the reappraisal of history as a means of dialogue in Western
Balkans. Based on the ISDACON data base the estimation of the overall realized international assistance in the period 2007-
2012 amounted to 42.35 million EUR.
Within the bilateral donor resourcing projects in the area of culture in the period of 2007-2013 some most prominent have
been: Italian Government for the modernization/establishment of cultural institutions and for creation of municipal youth
culture and leisure centres; Turkish Government with the support in renovating cultural centres; Swedish Government in the
field of music and cultural heritage without borders; Swiss Government within the Swiss culture program 2007 and 2008;
Japan for the equipment for the National Theatre in Belgrade; USA for the reconstruction of the Youth centre in Belgrade;
Slovak Government predominantly for supporting Slovak minority culture; UNDP also supported the reconstruction of the
cultural monuments. 299
Due to the fact that there has been no strategic framework set by the government for culture in the past programming phase,
the thematic area of culture saw in most cases unsystematic and ad-hoc assistance to individual projects300.
As indicated in the Report: the “Evaluation of the effectiveness and efficiency of development assistance to the Republic of
Serbia per sector”301, culture is the weakest and probably the most marginalized theme within the eight sectors supported by
ODA thus far. Culture is characterized by lack of any systematic approach to development, with changing political visions to
what culture should represent, as well as extremely weak, fragmented and sporadic funding by individual donors. Culture
today struggles with dilapidated institutions, scarce funding, no strategy and weak support from all sources.
The international assistance has not provided significant and coherent support to the government in the development of such
a framework in culture and has not brought any significant contribution to systematic approach to this field.
The relevance of the support may be best evidenced in individual projects supported, whose interventions generally
responded to identified needs of the beneficiaries. The overall conclusion relating to the relevance of the assistance in the
area of media and culture is that it has been high, as it responded to the needs of the government in respective areas, yet
with the lesser degree of support to culture area.
Evaluation of Civil Society, Culture and Media thematic areas Implemented and Financed by IPA Programmes and other
Donors in the Republic of Serbia is in progress.
Together with the civil society, media and culture themes are extremely relevant for the overall democratization and
development of the country, and thus deserve a more integrated approach to programming of assistance. So far, the donor
assistance has been fragmented with some overlaps.
Building upon the results of the mentioned evaluation and pertinent recommendations, Serbian priorities in the next
programming cycle envisage further support which will focus on strengthening all relevant actors to implement the strategic
directions embedded in the Culture Strategy to be adopted in 2013, and help institutions and other actors operating in the
area of culture to develop and implement the cultural policy in a more consistent and efficient and effective manner.
299 ISDACON data base, Serbian European Integration Office

301 In this Evaluation media, culture and CSOs have been considered as one sector.
239
B11 MEDIA THEMATIC AREA
B11.1. Scope and background for the thematic area
The Scope of the area reflects national priorities as well as needs arising from the EU accession process led by the
preparation to negotiate on chapter 10 – Information society and media. This cross-cutting area includes following subareas:
 Media
 Digital Switchover.
In particular, following themes are of special concern: public interest, media policy including the role of the state in the media,
role of public media, public broadcasting services, media literacy, media pluralism, digital broadcasting.
The IREX Serbia Media Sustainability Index302 (2013) lists the subjects with the broadcasting licenses and print media: Radio
Stations: 214 (2 public service + 4 national coverage, 48 regional, 267 local); Television Stations: 111 on air, 134 licensed (2
public service, 4 are national, 30 regional, and 98 local; 39 cable stations); Print: 591 outlets. In comparison to other EU
countries, these numbers by far surpass the needs of the Serbian market size.
From the programme perspective it is irrational to have hundreds of broadcasters. The digitalization of the television system
through multiplexes is expected to offer more channels for distribution at national level, but consequently fewer at local
level.303By digitalising the television transmission, Serbia gains access to 32 frequencies of same quality in contrast to 8
national frequencies used today. However the digitalisation process develops at a very slow pace although substantial
support was provided by EU through IPA 2010. Presently, only some 50% of the IPA funded equipment has been installed.
The reason for not being able to fully utilise this equipment has been the lack of available frequencies as the result of a large
number of issued licenses for analogue broadcasting. To address this problem, the Ministry in charge has initiated changes
to the current Analogue Terrestrial Television Frequency Allocation Plan. These changes should enable the usage of the
freed frequencies for the expansion of the digital network and would enable putting into use the remaining EU funded
equipment. The pilot network covers some 40% of Serbia’s population and will form an integral part of the final digital
terrestrial television network after the transition to digital terrestrial broadcasting of television program is completed. Once
complete, the nationwide digital terrestrial broadcast will be transmitted from 25 locations throughout the country, whereas
the currently developed digital network might be transmitted from only 13 transmitters and 2 gap filler stations. Coverage for
the first and the second multiplex will be at least 95% and 90% of the population, respectively.
It is expected that digital broadcasting will contribute to a strengthened promotion of public interest via media. The public
interest in media refers to the production of: general information, specialised media contents relating to politics, culture,
education, religion, economy, regional and local communities, media contents dedicated to children, media contents of
importance for the protection of cultural heritage and promotion of contemporary culture, contents of investigating journalism,
original audio-visual and radiophonic works on Serbian and minority languages of importance for the media pluralism, media
diversity and media literacy, as well as preservation of Serbian and ethnical minorities identity, fostering the rule of law,
democracy, EU standards, creativity, education/science in media.
At present, the cable TV system is available in 34% of households, satellite reception in 8%, whereas only 1% of households
use Internet TV broadcasting, although the number of public media broadcasting via Internet is increasing. However,
legislation in this field is lagging behind.
When talking about new media platforms, the latest data on internet access is indicative. Presently, 222 providers are
registered with 5,038 million subscribers, which is a growth of 31% as compared to 2011304. Over 1 900 000 persons used
the Internet (almost) every day, which is an increase of over 200,000 compared to 2010 305. In 2011, there were a greater
percentage of male users as compared to female users in all age groups, with the biggest discrepancy of 4.3%, in the 16-24
age groups. While in urban areas the number of households with Internet connection amounts to 51%, in rural areas there
are only 27.2% of households. Yet, the growth rate of Internet connections in 2010 was 1.7% in urban and 3.1% in rural
areas306.
Unsuccessful privatization, unfavourable economic position and financial dependence of most of the media are reflected in
low quality production, proliferation of tabloids and self-censorship. Consequently, efforts need to concentrate on the quality
improvement and diversity of program contents of public interest together with editorial independence both in public
broadcasting services and other media outlets. The liaison with the civil sector for the active support in creating quality
302http://www.irex.org/sites/default/files/u105/EE_MSI_2013_Serbia.pdf
303 COWI Media Study, Final Draft, 2010
304http://www.b92.net/biz/vesti/srbija.php?yyyy=2013&mm=04&dd=17&nav_id=706062
305 An Overview of Telecom Market in the Republic of Serbia in 2011, RATEL, Belgrade, 2012
306An Overview of Telecom Market in the Republic of Serbia in 2011, RATEL, Belgrade, 2012
240
programmes in particular those targeting local communities is essential. Also, media literacy is very low and it is crucial to
join efforts together with the ministry in charge for education, CSOs and other relevant actors in conducting a comprehensive
media literacy analysis and enhance the present level through targeted actions.
The Serbia Progress Report 2012 states that provisions allowing for the financing of certain media from the State budget
remain to be brought into line with the EU acquis as it constitutes State aid. With a view to implementing the Action Plan of
the Media Strategy, expert working group of the Ministry in charge together with representatives of the EU Delegation and
OSCE, as observers, is drafting media regulations, particularly Law on Public Information, Law on Electronic Media and Law
on Public Media Services. Their adoption is expected in 2013 307. Also, the radio spectrum provisions remain to be aligned
with the EU regulatory framework. Switchover from analogue to digital signal remains to be fully ensured. The overall
conclusion is that there was little progress as regards audiovisual policy, particularly in the implementation of the Media
Strategy which aims at aligning with the EU acquis in this area.
Figure B11.1. Program contents share on RTS I in %308

Based on the main strategic documents for the area of media, which are presented in Annex I, and SWOT analysis the
following policy priority directions have been identified:
(i) Public Interest
The production and publication of the following content in the media outlets in the Republic of Serbia in public broadcasting
services and other media outlets is defined as being of public interest (among others such as rule of law, which is already
supported by the on-going assistance project):
 Media content for children and youth;
 Media content of relevance to the preservation of cultural heritage and content promoting artistic and cultural
creativity and the work of cultural institutions;
 Media content for blind and visually impaired persons, persons with hearing impairments and other persons with
special needs,
provided that the production and publication of such content is relevant to the: Preservation and advancement of media
pluralism and media content diversity; Encouragement of media literacy; Encouragement of media creativity and
creativeness;
(ii) Role of the State
Respecting and guaranteeing the freedoms of opinion and expression, the freedom of the media and the right to be informed
are of main concern. Policy priority is to create an environment enabling the independent, autonomous, professional and
sustainable work of media outlets, which respect the broadest spectrum of human rights and are able to contribute to the
citizens’ full participation in social, political and cultural life (among other). A particular focus is strengthening the conditions
307 NPAA 2013-2016, SEIO

308Source: Comparative analysis of program contents, RBA 2009-2011
241
for the protection of the rights of children, youth and groups with special needs in the field of public information. To meet this
end it is necessary to eliminate the discrepancies in the existing legislation and advance the protection of the free flow of
information and freedom of expression, the independence and editorial autonomy of the media and media pluralism.
Although huge efforts are needed to advance with the digitalization process, there is full commitment to the process of
switching from analogue to digital broadcasting within the internationally agreed deadlines. Digital technology will enable the
Republic of Serbia to broadcast up to 20 different programmes in standard resolution within the band of one radio frequency
channel, which will result in the more efficient use of the radio frequency spectrum, greater market competition and greater
opportunities for fostering creativity and preserving cultural identity.
(iii) Role of Media Outlets
The main role of media outlets comprises the preparation and timely dissemination of media content satisfying the broadest
interests and needs of the citizens and thus the achievement of public interest, whilst abiding by the principles of the freedom
of expression and free flow of information and the professional and ethical requirements of impartiality, accuracy, balance
and respect for human dignity. In cooperation with the civil society, the public broadcasting services shall establish forms of
communication with the public, such as the establishment of advisory structures, holding of public debates, panel discussions
and talks providing the public with the opportunity to express its opinions about the programme content and its wishes and
requirements. Also, funding from public revenue is granted for content of public interest produced by media outlets on new
media platforms in accordance with project-based funding principles.
(iv) Public Broadcasting Service
The public broadcasting service institutions: public broadcasting service, shall be established as independent and
autonomous legal entities enabling the realisation of public interest in the area of public informing, and especially the
expression of diverse ideas and opinions and provision of fundamental and comprehensive media service which
encompasses the content related to news, education, culture and entertainment. The public broadcasting services are: the
republic and provincial public broadcasting service. The republic broadcasting service is the Public broadcasting institution
‘Radio Television of Serbia’ (RTS), with a seat in Belgrade. The provincial broadcasting service is the Public broadcasting
institution ‘Radio Television of Vojvodina’ (RTV), with a seat in Novi Sad. The core activity of the public broadcasting service
is the production of radio, television and multimedia content, music production and the provision of audio and audio-visual
media services and releasing of electronic publications as services of public interest. The core activity of the public
broadcasting service especially includes production, purchase, editing and broadcasting of informative, educational, culture-
artistic, children, entertaining, sports, religious and other media content of general interest to the public, especially directed
towards exercising of human rights and freedoms of citizens, exchanging of ideas and opinions, nurturing the values of
democratic society, fostering political, gender, interethnic and religious tolerance and understanding, as well as preserving
the national identity of the Serbian people and ethnic minorities.
(v) Media Literacy
Policy priority is to encourage the development of media literacy by developing the citizens’ individual capacities to use,
understand and critically evaluate the various aspects of media outlets and media content, as well as their social skills to
competently use information and communication services.
(vi) Media Pluralism
The Republic of Serbia shall monitor the development of media on new technological platforms by taking measures
encouraging the preservation and strengthening of media pluralism and media content diversity.
The current strategic framework for the area of media defining the development of the Public Information System in the
Republic of Serbia until 2016 is based on the standards, experience and regulatory framework of the democratic world. It is
based on the Constitution of the Republic of Serbia and the leading commitments of the United Nations, Council of Europe
and European Union. However, one of major challenges remains the slow implementation of priorities together with more
rigorous law enforcement. The analysis carried out, coupled with the principle of concentration and building upon previous
and on-going aid assistance led to the definition of the NAD Priority, accompanied by three measures.
NAD Priority 1: “Strengthen the freedom and professionalization of media and completing the digital switchover within the set
deadline in order to better protect public interest, and foster media literacy and media pluralism” is in line with all the above
policy directions. The attainment of this Priority is envisaged through three types of actions. The first is targeting different
public and other actors in the field of media to fully implement and freely operate within the changing media regulatory
framework. In this respect special focus will be on the local level. The second concentrates upon improved quality media
programmes/contents on all media platforms with special focus on children and youth, culture in media, gender equality and
social inclusion which is directly linked to Policy direction (i) Public interest, (iii) Role of media outlets and (v) Media pluralism.
Also within this type of actions and in close correlation with the above is the support for improved media literacy, linked to
policy priority (iv). The third type of action is related to completion of the digital switchover within the set deadline and
supports the priority (ii) as listed above.
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The European Partnership with Serbia (2008/213/EC) (under: Sector policies – Information society and media) sets out
following priorities for the short and mid-term: ensure that the strategy adopted is put into effect, including adoption and
implementation of the necessary law, strengthen administrative capacity and continue alignment with the acquis for the
audio-visual sector. The Stabilization and Association Agreement (Title VIII, Cooperation policies, Article 4) stipulates the
cooperation which will promote the audio-visual industry and encourage coproduction in the field of television and cinema.
Cooperation could include programmes and facilities for the training of journalists and other media professionals, as well as
technical assistance to the media, the public and private, so as to reinforce their independence, professionalism and links
with European media. Serbia is expected to align its policies on the regulation of content aspects of cross-border
broadcasting with those of the EC and shall harmonise its legislation with the EU acquis. Serbia shall pay particular attention
to matters relating to the acquisition of intellectual property rights for programmes and broadcast by satellite, cable and
terrestrial frequencies.
UNESCO Conventions ratified: Convention on the protection and promotion of the diversity of cultural expressions (2005,
ratified 2009); Protection of Copyright and Neighbouring Rights (1952, 1971, Notification of succession 2001); UNESCO
Convention on the rights of persons with disabilities (2006).Council of Europe conventions ratified: Convention on the
Protection of Human Rights and Fundamental Freedoms (1950, ratified 2004); European Charter for Regional or Minority
Languages (1992, ratified 2006); Framework Convention for the Protection of National Minorities (1995, ratified 2001);
European Convention on Transfrontier Television (1989, ratified 2009).
B11.3. EU Agenda
Europe 2020 sets the direction of EU policies for the period 2014-2020. These are:
 Smart growth – developing an economy based on knowledge and innovation
 Sustainable growth – promoting a more resource efficient, greener and more competitive economy
 Inclusive growth – fostering a high-employment economy delivering economic, social and territorial cohesion.
Smart growth means strengthening knowledge and innovation as drivers of our future growth. This requires improving the
quality of our education, strengthening our research performance, promoting innovation and knowledge transfer throughout
the Union, making full use of information and communication technologies and ensuring that innovative ideas can be turned
into new products and services that create growth, quality jobs and help address European and global societal challenges.
Creative Europe as the new framework programme for Europe's cultural and creative sectors for the 2014-2020 Multi-
Annual Financial Framework (MFF) will help to seize the opportunities of the ‘digital age’ and globalization and reach their
potential so that they can contribute to the Europe 2020 goals for sustainable growth, jobs and social cohesion. This
Programme opens up new international opportunities, markets and audiences and builds on the success of the MEDIA and
Culture programmes in which Serbia too was involved in the period of 2007-2013. Concerning the international dimension,
the current annual calls with a changing country focus will be abandoned in favour of a greater opening of the programme to
acceding, candidate and potential candidate countries, countries of the European neighbourhood area and of the European
Economic Area (EEA). As regards the regional scope of MEDIA, access should be simplified and offer the possibility to
participate to "the greater European audio-visual area", i.e. all acceding, candidate and potential candidate countries 309.
Creative Europe programme will be comprised of three Strands:
 A Cross-sectorial Strand addressed to all cultural and creative sectors;
 A Culture Strand addressed to the cultural and creative sectors;
 A MEDIA Strand addressed to the audio-visual sector.
General objectives of the new framework programme are: fostering the safeguarding and promotion of European cultural and
linguistic diversity and strengthening the competitiveness of the cultural and creative sectors with a view to promoting smart,
sustainable and inclusive growth.
Overview of relevant acquis (Chapter 10)
As foreseen in the NPAA, the national laws should be approximated to the EU legislation, namely the Audio-visual Media
Services Directive, 2010/13/EU and Recommendation on the protection of minors. Like other goods and services, the audio-
visual media are subject to the rules of the single European market. The rules laid down in the AVMS Directive define EU-
wide coordination of national legislation on all audio-visual media; both traditional TV broadcasts and on-demand services.
The EU coordination in that respect concentrates upon: providing rules to shape technological developments, creating a level
playing field for emerging audio-visual media, preserving cultural diversity, protecting children and consumers, safeguarding
309 COM(2011) 786/2 Creative Europe - A new framework programme for the cultural and creative sectors (2014-2020)
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media pluralism, combating racial and religious hatred, guaranteeing the independence of national media regulators. The
AVMSD governs EU-wide coordination of national legislation in the following areas: General principles; Incitement to hatred;
Accessibility for people with disabilities; Principles of jurisdiction; Major Events; Promotion and distribution of European
works; Commercial communications; Protection of minors.
Although the EU Acquis does not specifically regulate national broadcasting, public service broadcasters are those with a
public service mandate. The Protocol on the System of public broadcasting in the Member States sets out the
competencies of the European Union and the Member states in this field. The Commission's task is to verify whether or not
Member States respect the Treaty provisions, especially the State Aid rules in this area. The Principles are laid down in the
Communication from the Commission on the application of State aid rules to Public Service Broadcasting.
Following the implementation of the Action Plan for fulfilment of the European Commission recommendations expressed in
the Serbia 2012 Progress Report, the Council of RBA appointed persons who will exclusively monitor those contents
containing discriminating speech or hate speech and submit reports on this to the Council for decision.
In accordance with the Strategy for the Development of Public Communication System in the Republic of Serbia that defines
a set of media laws, and as defined in the NPAA in the period 2014-2016 the RBA will adopt implementing legislation within
its competences, and in the accordance with Audio-visual Media Service Directive 2010/13/EU. Those documents will relate
to: protection of minors against programmes of broadcasters, media literacy and protection of national culture in
programmes, code of conduct of broadcasters, qualifications of programmes in compliance with EBU standards, conversion
of licenses from analogue to digital broadcasting and managing the timeline of broadcasters in multiplex.
B11.4. Overall objectives and priorities in the thematic area
The SWOT analysis has been undertaken additional to the situation analysis presented in previous sections, to set out the
long term objectives and medium term strategic priorities and realistic and targeted measures.
 The strategic framework in place and legislation  Implementation of the Media Strategy very slow, none
moderately ahead of deadlines being met
 Use of new media platforms is annually increasing  Low level of law enforcement (State Aid)
(growth of 31% as compared to 2011)  Incoherence of certain laws tackling media issues
 Increased use of the Internet (more than 10% in  Lack of transparency of media ownership
comparison to 2010)  Lack of consensus between key stakeholders
regarding burning issues like PBS funding
 The number of weak media and distribution companies
exceeds the capacity of the Serbian media market
 Lack of media space devoted to culture, art, children
and youth
 Unfavourable economic position and financial
dependence of most of the media
 Low quality of media/programme contents
 Low level of media literacy
 Proliferation of tabloids and self-censorship
 Lack of transparency of the advertising market
 Slow progress in the preparation for the digital
switchover
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 Capacity building of institutions, regulatory and self-  Cost of digitalization
regulatory bodies in charge for media  Continued state ownership of media outlets
 The digital distribution system encourages  The negative aspects of privatization and
centralization at regional level commercialization in media
 Encourage PBS to produce quality minority  Degradation of the value system due to the political
programmes across the public broadcasting system and economic interests (over-politisation, vulgarization)
thus increasing the dialogue on shared platforms
Taking into account policy directions of main strategic documents, and development in the area, the objective for 2014 – 2020
is defined as: Full achievement of professional EU standards in the domain of audio-visual services aimed at
protection of democratic values, rule of law, freedom of expression and information, cultural identities, public
interest, social cohesion and regional development.
The implementation of the Media Strategy indicates to a very slow pace of progress in this field. Capacity building among
public authorities, media and information society stakeholders is required to meet EU standards and properly apply new media
laws in their daily work and help citizens to protect their rights to the freedom of expression and information, intellectual
property, and human dignity. Also, the media content in Serbia has deteriorated in quality and there is a noticeable lack of
media content that properly tackles common democratic principles such as transparency, good governance and the rule of
law. Also other contents defined as being of public interest are hugely neglected, such as contents for children and youth,
cultural contents and those addressing social inclusion. The NPAA lists a number of documents pertaining to EU standards in
the area of audio-visual policy which have all been taken into consideration when formulating the objective.
Following priority has been identified in order to contribute to achieving the overall objective and respective reforms in this
area:
Priority 1: Strengthening the freedom and professionalization of media and completing the digital switchover within
the set deadline in order to better protect public interest, and foster media literacy and media pluralism
High on the priority agenda is to ensure enforcement and better monitoring of European media standards (such as media
freedom and pluralism) in the domain of audio-visual media services aiming at protection of public interest, freedom of
expression and supporting the role of media in strengthening the democratic society. In particular, this relates to the adoption
and timely improvement of the regulatory framework (having in mind that technological development is always a step ahead
of development of legal instruments) and implementation of media laws in order to help media operate freely and
responsibly. Two other topics that will be in the focus are the production of high quality media contents of public importance
and improving media literacy. Media literacy builds an understanding of the role of media in society as well as essential skills
of inquiry and self-expression necessary for citizens of a democracy. Finally, it is important to meet the deadline set for the
completion of the switchover to digital broadcasting.
B11.5. Measures for implementation of priorities in the thematic area
Priority 1: Strengthening the freedom and professionalization of media and completing the digital switchover within
the set deadline in order to better protect public interest, and foster media literacy and media pluralism
Measure 1.1: Empowering all relevant institutions, regulatory and self-regulatory bodies, as well as media industry,
media associations
Building upon the results of the on-going IPA 2012 project “Strengthening media freedom” with particular focus on
implementing the Media Strategy, some major laws regulating the area of media, namely the Law on Public Information, Law
on Electronic Media and Law on Public Services are currently under preparation and will be approximated to the Audio-visual
Media Services Directive (Directive 2010/13/EU). Further support is needed for the capacity strengthening of the Ministry,
regulatory and self-regulatory bodies, as well as media industry, media associations and journalists to fully implement and
freely operate within the changing media regulatory framework, with particular focus at the local level. This measure will
specifically target the Ministry in charge for media policy and relevant regulatory bodies (RBA, RATEL), public media, media
associations.
Measure 1.2: Strengthening the democratic society through quality media/programme contents, improved media
literacy and pluralism
Given the all-pervasive commercialization and vulgarization in media coupled with the decline in number and quality of
media/programme contents and consequently weak protection of the public interest, it is exceptionally important to focus on
a set of thematic topics for which assistance is needed. This explicitly refers to the realization of quality programs and
projects which contribute to promotion of the EU integration accession process, culture in media, educational programmes, in
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specific those for children and youth, media literacy, gender equality and social inclusion. The support includes assistance,
cooperation and transfer of knowledge, organization of workshops, round tables, conferences, and diverse studies on media
topics related to the quality media contents. To contribute to improved media literacy, support is necessary to conduct the
media literacy analysis and act in accordance to key findings and recommendations. This would also help in defining
adequate, evidence based targets throughout the coming years. In addition, support will be sought for training in on new
media platforms at the local level. This measure is targeting public media, media associations, cultural institutions,
educational institutions, CSOs.
Measure 1.3: Completing the digital switchover
In order to achieve the set target and complete the digital switchover by June 2015, and build upon the on-going IPA
assistance, support is necessary to expand the network and purchase additional equipment. Assistance will also be sought
for installation of those systems. In order to overcome the problems with the lack of available frequencies which has
substantially impeded the installation the EU funded equipment so far, changes to the current Analogue Terrestrial Television
Frequency Assignment Plan relating to freeing frequencies for the expansion of the Initial network are underway. This will
enable an efficient use of support and accomplishment of the targeted coverage. Given that the public and information
component of the digital switchover, i.e. the way how the change would affect citizens is very important, support will be
sought for an information campaign.
B11.6. Institutional framework for implementation of thematic area approach
The policy relating to media and digital switchover are addressed by: the ministry in charge of media and the ministry in
charge of telecommunications. In the area of media, two institutions form the core of the Serbian regulatory bodies and are
key for policy implementation: the Republican Broadcasting Agency (RBA), the Republican Agency for Telecommunications
(RATEL).
Group (SWG) for the area of culture and media310 has been established. The SWG for the area of culture and media is
responsible to coordinate activities related to planning, programming, and monitoring of EU funds and international
assistance, to identify relevant measures/operations and activities. The functioning, management, organisation and
composition of SWG is more precisely defined by the Rules of Procedure for Sector Working Groups for the Programming
and Monitoring of the EU funds and development assistance. The Sector Working Group for the area of culture and media
comprises of representatives from European Integration Office, Ministry of Culture and Information, Ministry of Foreign and
Internal Trade and Telecommunications, Ministry of Youth and Sports, Directorate for Gender Equality of the Ministry of
Labour, Employment and Social Policy. The work of this SWG was joined with the work of the SWG for CSOs. Thus, the
representatives from the Office for Cooperation with Civil Society, the Office for Human and Minority Rights, Ombudsman
Office and Commissioner for Protection of Equality also take part at the meetings. Members of the SWG are officially
represent the interests of donors active in particular sectors/areas.
institutions and the constant monitoring of their work. Members of SECO are participating at the SWG meetings based on the
measures and operations for financing from EU funds and international assistance. Other relevant stakeholders (agencies,

246
private, academic sector, CSOs, etc.) can participate at the SWG meetings based on the topic, needs and requirements of
each Sector Working Group meeting.
Task force made up of representatives from the area Lead Institution, Lead donor and SEIO. SWG is also acting as the
Sectorial Monitoring Subcommittee for IPA TAIB under the decentralised management.
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PRIORITY 1: Strengthening the freedom and professionalization of media and completing the digital switchover within the set deadline in order to better protect public interest, and foster media literacy
and media pluralism
Baseline Target Means of Verification Institution in charge for reporting
Indicator Unit
2012 2013 2014 2015 2016 2017 2018 2019 2020
within Media literacy analysis (once
1.1. Media Freedom Index313 Rank 63
first 50 produced)
OSCE and EU Reports
Annual Report of the Reporters
without borders Ministry in charge for media
1.2. Media Sustainability Above Above
1.93 2.0 2.2 2.3 2.5 2.5-3.0 3.0 Report of the Council of Europe on
Index314 3.0 3.0
media freedom
AIEM Report
IREX Media Sustainability Index
ITU
RATEL's Overview of Telecom
1.3. ICT Development Index 5.40 5.62 Above market in Serbia, including a set of
5.9 6.2 6.4
(IDI)315 (2011) (2012) 6.50 ICT development indicators (HH1-
HH12)
Statistical Office of Serbia
MEASURE 1.1: Empowering all relevant institutions, regulatory and self-regulatory bodies, as well as media industry, media associations and journalists
(2012)
2013 2014 2015 2016 2017 2018 2019 2020
1.1.1. % of annual adoption of Annual report of the SEIO,

legal acts as envisaged by the Official Gazette of the Republic of
% N/A 100% 100% 100% 100% 100% 100% Ministry in charge for media
NPAA relating to the Serbia
Transposition of AVMSD EU progress report
313
Press Freedom index 2013, Reporters without borders, for freedom of information
314
IREX, December 2012 (The MSI considers all the factors that contribute to a media system—the quality of journalism, effectiveness of management, the legal environment supporting freedom of the press, etc.)
315The IDI Index serves as a benchmarking tool for monitoring the development of information society worldwide. It is composed of 11 indicators divided into three sub-groups: ICT readiness (infrastructure and access), ICT use and intensity
of use (by individuals, households and undertakings) and ICT Capability (skills necessary for the effective use of ICTs. This index has been chosen since it is also covering some aspects of media literacy.
248
1.1.2. Number of RBA N/A
penalties against the To be RBA annual report – the number
broadcasters due to No monitored should raise at first and then Ministry in charge for media
discriminating speech or hate by RBA as decline
speech from 2013
http://tpson.portal.sud.rs/libra_porta
1.1.3. Number of court trials
No 242 (2011) l_full/default.cfm) Ministry in charge for media
against journalists/media
OSCE Report
MEASURE 1.2: Strengthening the democratic society through quality media contents, improved media literacy and diversity
(2012)
2013 2014 2015 2016 2017 2018 2019 2020
(2011)
PBS
1.2.1. % of cultural contents in PBS:
PBS: commercial media,
PBS316 and commercial TV % 4.72% Ministry in charge for media
7% Comparative analysis of program
media production Com:
contents by RBA
0.44%
(2011)
1.2.2. % of children and youth PBS
PBS: PBS:
programs in PBS and commercial media,
% 3.82% Above Ministry in charge for media
commercial TV media RBA Comparative analysis of
Com: 5%
production program contents by RBA
3.30%
(2011)
1.2.3. % of educational- PBS
PBS: PBS:
scientific programs in PBS and commercial media,
% 4.93% Above Ministry in charge for media
commercial TV media Comparative analysis of program
Com: 6%
production contents by RBA
1.07%
1.2.4. Media Literacy analysis x Ministry’s annual report Ministry in charge for media
Media literacy317: Reception
1.2.5. % of daily users by age
m:45% Internet providers,
and gender, using new media
f:36% local media,
platforms (Internet): % Ministry in charge for media
o:45% IPSOS Media CT: Monitoring of the
% of daily users: overall
dn:84% new media usage -2012
population versus digital
natives (12-29) 318
MEASURE 1.3: Completing the digital switchover

Indicator Unit Baselin Target Means of Verification Institution in charge for
316
Data for PBS relate to RTS1 and RTS2, Data for commercial TV encompass: RTV Pink, TV Avala, TV B92, TV Prva- TV Fox, Hepi TV- TV Kosava
317 Media and information literacy (in the absence of an aggregated indicator here the category: Reception of proposed categories by UNESCO has been chosen. Some other aspects are already covered by the IDI index.
318 IPSOS Media CT: Monitoring the use of new media - 2012
249
e (2012) reporting
2013 2014 2015 2016 2017 2018 2019 2020
1.3.1. Coverage of population; 96%;
53%;
Number of fully operational 74+
%; 13+2 70 %; 80%; Country wide digital broadcasting Ministry in charge of
transmitters, 111
No gap 35 45 Ministry’s annual Report telecommunications
Digital broadcasting fully gap
fillers
functioning fillers
250
The EU supported the developments in the field of media in the period of 2007-2013 through improving capacities and
professionalism in media in achieving EU media standards and supporting the role of media in strengthening the civil society
in Serbia. Also in the focus was strengthening media capacities to inform the public on all aspects of EU integration at the
national, regional and local level. OSCE also supported the development of media. The total disbursement of the overall
development assistance in the period 2007-2012 is amounting to 0.86 million EUR.
Within the bilateral donor community the US Government is by far the most prominent donor in this field. The Media support
programme focuses particularly on building sustainability and professional skills of selected local and regional broadcast
media; advocacy and monitoring skills of media support institutions, and encourages quality media coverage of reform and
other issues of concern and interest. It builds upon USAID’s previous media work, by providing support to the transition of
the Serbia’s media into a legally sound, economically viable sector that provides professional and independent news and
information to citizens throughout Serbia. The beneficiaries were the Coalition of national partners: media support
organizations, media associations (Media Coalition consisted of: ANEM, NUNS, UNS, NDNV); local media outlets and local
media. Media Coalition is grouped around the key issues in media development field: Media strategy, Media Law, Broadcast
Media Law etc. Another important bilateral donor in this thematic field is the Slovak Government for support to the Media
Centre in Kovacica319.
The Digital Switchover was supported through IPA with 10,500,000 EUR, yet the implementation lags behind, thus much
effort will be needed if the set deadline (June 2015) for its completion is to be achieved.
Due to the fact that there has been no strategic framework set by the government for area of media in the past programming
phase, the thematic area of media saw in most cases unsystematic and ad-hoc assistance to individual projects. The
adoption of the first Media Strategy, despite its gaps and weaknesses, was a step forward in systematizing this field, as well
as creation of the Media Coalition, which is a strong advocacy and expert body.
As indicated in the SIDA Report on the “Evaluation of the effectiveness and efficiency of development assistance to the
Republic of Serbia per sector”, the assistance was instrumental in developing a more enabling framework for developments
in the area of media.
The relevance of the support may be best evidenced in individual projects supported, whose interventions generally
responded to identified needs of the beneficiaries. The overall conclusion relating to the relevance of the assistance is that it
has been high, as it responded to the needs of the government in the respective area320.
Non-transparent media ownership, political capture and other negative factors influence sustainability of achieved changes
in this area to a great extent. The overall findings relating to the sustainability of assistance in this sector lead to rating the
sustainability of assistance as low-medium.
Together with the civil society, media and culture themes are extremely relevant for the overall democratization and
development of the country, and thus deserve a more integrated approach to programming of assistance. So far, the donor
assistance has been fragmented with some overlaps.
Building upon the results of the Report: “Evaluation of the effectiveness and efficiency of development assistance to the
Republic of Serbia per sector” and pertinent recommendations, the next programming cycle envisages further support to
enhancing media freedom and continuation of assistance to the Government in adoption and particularly implementation of
legislation relating to media freedoms, with full inclusion of representatives of the media sector (both independent and state
owned).
319 ISDACON Data base, SEIO

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B12 CIVIL SOCIETY THEMATIC AREA
B12.1. Scope and background of the thematic area
The civil society is cross-cutting theme for all nine sectors but it is also a separate area with the focus on three main issues:
CSO enabling environment, referring to the set of precondition providing for dynamic, pluralistic and competent civil society;
establishment of permanent dialogue and partnership with public authorities; and CSOs' capacity to perform their roles as
independent development actors more effectively.
Serbia is still a country in transition facing numerous challenges: unemployment rate has significantly increased recently
(25.5 % of the workforce in 2012), the population is ageing (average age is 42, 2 year), informal economy is widespread,
judicial system is under reform, etc. In this context civil society is a crucial component of a democratic system and is an
asset in itself that can contribute to more effective policies, equitable and sustainable development and inclusive growth.
The main challenges facing the area are multi-faceted, including overall weak strategic framework, unsystematic support
from the government, and also varying capacities of organisations and institutions within the area. Civil society is a
heterogeneous sector facing challenges of their own organisational development, financial sustainability and recognition by
the society and particularly the Government.
Recognising the importance of CSOs' participation in policy processes the Government have set up the Office for
Cooperation with Civil Society to assist development of constructive relations between public authorities and CSOs. The
Office for Cooperation with Civil Society was established in 2011, and performs expert, administrative and operational tasks
in the Government domain aimed at creation of an enabling environment for the development of civil society, and
establishing the cooperation of public authorities with CSOs. The Office for Cooperation with Civil Society initiates dialogue
with civil society on matters of mutual interest and strengthens capacities of institutions at both local and national level for
cooperation with civil society. The Strategic Framework for period 2011-2014, as well as the Operational Plan 2013-2014,
issued by the Office has several clear targets to be achieved: establish a National Council for the Development of Civil
Society, develop a Strategy for enabling environment for civil society development; initiate improvement and revision of
legislation relevant for civil society, promote new financing sources as a prerequisite for the long-term sustainability of
CSOs; and further develop an institutional framework conducive to civil society development, as well as standards of
communication, cooperation and participation in the decision making processes between the Government and the CSOs.
In its work the Office rely on various CSOs, networks and initiatives, among which the SECO mechanism (Sectorial Civil
Society Organizations Network) that represents networking in the area of EU integration and civil society involvement in the
international development aid programming process, and KOCDs (Contact Civil Society Organizations) which represents a
network of organisations in the area of social protection for marginalised groups that jointly approach decision-makers in this
area.
A Coordination Body for the EU Accession Process, chaired by the Prime Minister, has been set up to deal with SAA
implementation and the negotiation process. The Office for Cooperation with the Civil Society is a member of the Expert
Group of this Coordination Body. The Prime Minister's Council for EU Integration include representatives of CSOs.
Also, legal framework for associations and foundations has been improved, with legislation on associations, endowments
and foundations, volunteering and the Law on accountancy that will simplify accounting procedures for small associations
and foundations is in preparation. As of December 2010, CSOs are exempted from 2.5% of taxes on gifts and donations on
condition that they are performing activities of public interest but they are still considered as enterprises in all aspects of their
work. Another important law has been passed, the Social Protection Law allowing civil society organisations to compete in
the market as social service providers. Furthermore, a Decree on Incitement Funds or Shortage of Funds for Financing
Programs Carried out by Associations was adopted, establishing criteria, conditions and method for allocation of funds from
the state budget. The adoption of the Decree is of great importance for sustainability and further development of civil society
and civic activism in general.
Although there are significant steps forward more constructive cooperation, the relationship between the government and
CSOs is in most cases still marked by fragmented cooperation and a selective approach. Good practice established by
some institutions should be used and further efforts remain to be made in order to improve the cooperation and develop
partnership. Participation in decision-making processes and monitoring of governance and democratic processes is a key
area where civil society involvement is of utmost importance. Awareness rising among public authorities on the advantages
of cooperation with CSOs in the early stages of policy framing, as well as in implementation and monitoring, should be made
a priority. Furthermore, overall standards and procedures regarding appointment of CSO representatives to various bodies
at national and local level should be discussed and developed, taking into account best practices in neighbouring countries
and CSO proposals.
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Sustainable funding is a huge challenge for Serbian CSOs as they depend on declining international donor support, while
funding from public sources still lacks transparency and clearly defined criteria although steps have been taken in that
direction with the bylaws on transparent funding that needs to be promoted and better implemented especially on the local
level.
At the local level, both the mechanisms for cooperation with CSO and practice remain poor. However, in some municipalities
there are units or responsible persons for cooperation with CSOs, such as Youth Councils and Youth Offices, although
these offices cooperate only with CSOs dealing with youth issues.
After the Law on Associations entered into force, a uniform Register of Citizens’ Associations was established at the
Business Registers Agency (BRA), and currently there are approximately 20,000 registered associations. The results of one
research321 show that the CSO sector is relatively young, because the majority of organizations were founded after 2000,
while only one fourth of organizations were founded before 1990. The majority of CSOs primarily deal with social services,
culture, media and recreation, and environment. The majority of CSOs are based in Vojvodina (36%), followed by Belgrade
(28%), with the remainder spread relatively evenly over Western, Central, Eastern and Southeast Serbia. In Belgrade, the
majority of CSOs are business/professional and other associations (51%) and CSOs involved in the field of law, advocacy
and politics (42%)". Serbian civil society is predominantly based in cities and unevenly represented in the regions. Civil
society in rural areas is very limited and its capacity is not well developed. The CSO Assessment indicated that 20% of
CSOs do not have office space. 30% of CSOs do not have computers, 13% have only one computer for ten or more people,
36% have one computer for three to ten people, 18% have one computer for one to three people, and only 3%have more
than one computer per person.
The practice of networking and establishing partnerships among CSOs as a means to effectively engage on relevant issues,
in particular at transnational level, faces many difficulties partly due to the lack of resources and capacities. The great
majority of CSOs have cooperated with other CSOs within the same place/town and same region in Serbia; however, as the
territorial distance grows, the number of CSOs that cooperate diminishes. This is exceptionally important information in the
context of European Integration, since requirements for cooperation with CSOs from the region and with European CSOs
and networks will increase in the near future. What is cause for greatest concern is the assessment of almost one half of
CSOs that they do not have sufficient capacities for cooperation on projects with other CSOs. Therefore, there is a need to
support and provide funding for existing partnerships and networks, and also to promote concepts based on more flexible,
modern principles. According to the research - Assessment of the Situation in the Civil Society Organizations Sector in
Serbia (2011), 86% of CSOs have cooperated or established partnerships with other organizations. But, 65% of CSOs are
not members of any network. There is a need to promote good networking concepts and possibilities.
The most significant obstacles to the long-term sustainability of CSOs are the low level of state support which is not based
on the well-defined priorities, under-developed business sponsorship, lack of individual giving, the withdrawal of international
donors, and under-developed cooperation with local authorities. Complex procedures and requirements by donors, lack of
information and insufficient experience in project-writing are the most frequent problems faced by CSOs when competing for
project financing. When planning and implementing a project, the dominant problem that the great majority of CSOs
encounters is a lack of financial assets for co-financing.
According to the Annual Summary Report on budget expenditures provided to the associations and other CSOs from
the budget of The Republic of Serbia in 2011, total amount of funds allocated to the associations and other CSOs, taken
from all economic classifications from which funds were being allocated, amounts to 3.052.736.657 RSD. On the other hand,
the report indicates that only 1/3 of the funds were allocated to CSOs, while majority of financial support was provided to
citizen associations, endowments and foundations.
EC Progress Report for Serbia 2012 noted that the Office for Cooperation with Civil Society is active in raising awareness on
importance of involving civil society and citizens in decision-making and that civil society continues to play an important role
in social, economic and political life and in promoting democratic values.

Based on the current strategic documents, which are presented in Annex I and SWOT analysis the following national
objectives referring to the Civil Society Organisations area have been identified:
 Promoting civil society and improving the general society's awareness of CSOs and strengthening mechanisms of
communication and cooperation between the Government and CSOs through regular information to all
321Assessment of the situation in civil society organisations in Serbia, Civic Initiatives and the Office for Cooperation with the Civil Society,
2011
253
stakeholders, cooperation with media, informing the Government institutions about Office and CSOs activities,
improving CSOs’ communication with local administration, and expanding and clarify the concept of civil society to
the institutions
 Strengthening the capacity of institutions and CSOs through building capacities of the Office, development of
Strategy for the Development of Civil Society in Serbia, and building capacities of the institutions and CSOs for
cooperation;
 Improving the framework for transparent and sustainable funding of civil society through development of
performance indicators for civil society, annual report on the development of CSOs in Serbia, improvement of the
legal framework and CSOs financing from public funds, development of new funding sources, and cooperation
with international donors;
 Strengthening the institutional framework for the development of civil society through establishment of National
Council for development of civil society, further improvement of the institutional framework for the development of
civil society, and assessment and identification of shortcomings in the legal framework relevant to CSOs;
 Ensuring the effective participation of CSOs in policy making through participation of NGOs in consultative
processes at the national level, and promotion of good practices cooperation mechanisms at the local level;
Promoting CSOs’ participation in the processes of European integration and cooperation initiatives in the Western Balkans
and the European Union through cooperation with similar institutions in the Western Balkans, ensuring participation of CSOs
in the EU community programs, strengthening regional networks, coalitions and connections with civil society networks in
EU, effective participation and use of pre-accession funds by CSOs, and increasing the capacity of the Office to programme,
manage and monitor the EU funds. Although numerous national sector strategies recognise the importance of civil society
and its active role in achieving set objectives, currently there is no specific strategy for this area. As planned in the Offices’
Strategic Framework 2011 – 2014 the area specific strategy will be developed by 2014 guided by the vision of Serbia as a
developed democratic and solidary society in which all citizens enjoy their rights, freely choose and are able to express their
needs through collaboration and partnerships, develop their potential and realize their right to a quality and dignified life.
The Strategic Framework objectives have been considered as the basis for carrying out strategic area assessment and
identification of priorities.
NAD Priority 1 - To ensure active and equal participation of CSO in policy making, implementation and monitoring on
national, regional and local level will support sustainable development of civil society, partnership between CSOs and the
Government, and further strengthening of CSOs’ capacities to participate in decision-making processes, to monitor and
evaluate the implementation of policies, strategies and laws.
The EU Strategy for Danube Region promotes socio-economic development in the Danube region and the CSO area
priority and measures are correlating with pillar 4 Strengthening the region, aiming at institutional capacity building, including
the establishment of the Danube Civil Society Forum and the improvement of public administration and services. The
Danube Civil Society Forum is the platform for civil society dialogue and networking in the Danube basin. It functions as the
interface for structured consultations between civil society and public and private authorities on the regional, national and EU
level as well as to international and intergovernmental organisations active in the region. The Danube Civil Society Forum
supports civil society organisations in the Danube basin. It aims to promote and enhance civil society participation and
networking in the framework of the European Union Strategy for the Danube Region.
International agreements
The European Partnership with Serbia from 18 February 2008 (2008/213/EC) under Political criteria – Civil and Political
Rights, sets out short term priority to adopt legislation on associations and the legal status of NGOs, encourage the
development of civil society organizations and regular dialogue with civil society on policy initiatives. The Stabilization and
Association Agreement (SAA) stipulates that ''Considering the commitment of the Parties to contribute by all means to the
political, economic and institutional stabilization in Serbia as well as in the region, through the development of civil society
and democratisation, institution building and public administration reform, regional trade integration and enhanced economic
cooperation, as well as through co-operation in a wide range of areas, particularly in justice freedom and security, and the
strengthening of national and regional security“ (pg. 5).
B12.3. EU Agenda
The Europe 2020 strategy for smart, sustainable and inclusive growth requires a coordinated response of all stakeholders,
including social partners and civil society. Civil society is recognised as one on the stakeholders in achieving set objectives.
254
The key aspects that will influence civil society are: monitoring social and economic change, integrated policy development,
the ‘Youth on the Move’ strategy (one of the EU 2020 ‘flagship initiatives’) and reducing poverty and social exclusion. Other
relevant documents are: The Communication from The Commission to The European Parliament, The Council, The
European Economic And Social Committee and The Committee Of The Regions - “The roots of democracy and sustainable
development: Europe's engagement with Civil Society in external relations” COM (2012) 492, “Towards a reinforced culture
of consultation and dialogue - General principles and “Minimum standards for consultation of interested parties by the
Commission” COM (2002) 704, and “Guidelines for EU support to civil society in enlargement countries, 2014-2020” The
Communication puts forward three priorities for EU support: 1. To enhance efforts to promote a conducive environment for
CSOs in partner countries; 2. To promote a meaningful and structured participation of CSOs in domestic policies of partner
countries, in the EU programming cycle and in international processes; and 3. To increase local CSOs' capacity to perform
their roles as independent development actors more effectively. The Guidelines sets out an agenda for support to civil
society within the enlargement policy, defining the areas, modalities and set of objectives, results and indicators which will
allow for the measurement of progress at country level as well across the enlargement region.
Furthermore, the Council of Europe document “Code of Good Practice for Civil Participation in the Decision-making
Process” is relevant as it covers important subjects such as mechanisms for CSOs participation in decision-making
processes and civil society involvement in public policy. This document lays out the rationale, the framework and the means
for enhanced civil participation.
Chapter 23. Judiciary and Fundamental rights
The National Assembly of the Republic of Serbia adopted in 2009 the Law on Associations 2, which regulates the
constitutionally guaranteed freedom of association and represents a sound legal framework for the establishment, operation
and activities of domestic and foreign associations in the Republic of Serbia. The provisions of the Law largely stimulate the
development of civil society organizations in Serbia, since the association is defined as a voluntary, non-governmental, non-
profit organisation, based on freedom of association of more individuals or legal entities, established for the purpose of
achieving and improving a common or general purpose or interest which are not prohibited by the Constitution or law. The
institutional framework for the systematic and continuous dialogue with civil society was established in January 2011, with
the establishment of the Office for Cooperation with Civil Society. The establishment and the scope of the Office are defined
by the Regulation on the establishment of the Office for Cooperation with Civil Society 322. As defined in NPAA 2013 – 2016,
in the forthcoming period activities will be focused on amending the law in order to create an enabling environment for civil
society, and initiating laws governing standards of cooperation between civil society and state institutions, and standards of
participatory process with civil society in drafting legislation. Furthermore, the National strategy for the creation of an
enabling environment for the development of civil society will be developed, regulation and transparent national funding
mechanisms and procedures for the co-financing of EU projects will be improved. As part of institutional development, the
establishment of the Council for development and cooperation with civil society is foreseen.
B12.4. Overall objectives and priorities in the thematic area (2014-2020)
The SWOT analysis of the civil society area has been undertaken additional to the situation analysis presented in previous
sections, to set out the medium term strategic priorities and realistic and targeted measures
The Civil Society SWOT analysis reported below identifies the challenges that the CSO area priority aims at overcoming.
 Established Office for Cooperation with the Civil  Relationship between the government and CSOs is still
Society; not systematized;
 The existence of local foundations;  Lack of awareness among public authorities on the
 Ability to attract/recruit volunteers and activists; advantages of cooperation with CSOs;
 CSOs are flexible and can respond quickly;  Under-developed cooperation with local authorities;
 CSOs identify and advocate for important issues;  Influence of networks in Serbia is small;
 Previous successes and contribution to the democratic  Limited sustainability;
changes.  Weak CSO governance, transparency, and
accountability.
322 Official Gazette of the Republic of Serbia, No. 26/10
255
 Improved legal, financial, fiscal, and institutional  Insufficient level of state support;
framework for associations and foundations;  Absence of planning the financial allocations based on
 Availability of financing from EU and bilateral donors; priorities, as well as absence of monitoring the impact
 Growth of new media and social networking; of supported actions
 Development of the National Strategy for CSO  Insufficient experience and capacities of CSOs;
development and establishment of the Council.  The personal Income Tax Law does not envisage any
tax benefits for giving to public benefit;
 Underdeveloped mechanisms for donations and
philanthropic giving;
 Legal framework does not encourage corporate
giving/socially responsible business.
To reflect the above and guide assistance programming the overall objective is formulated as follows:
Sustainable, dynamic, pluralistic and competent civil society as a constitutive element of participatory democracy
The overall objective is integrating culture of consultation, dialogue and partnership into public life, thus promoting
democratic values and active citizenship. Involving all interested parties in policy formulation process secures wide social
consensus on fundamental rights and developmental objectives of the society.
Priority 1. Ensuring active and equal participation of CSO in policy making, implementation and monitoring on
national, regional and local level
The ability of CSOs to participate in different domains of public life depends on a set of preconditions. Therefore the priority
aims at creating enabling environment for sustainable development of civil society and their active and equal participation in
policy making, implementation and monitoring. Also, improving the capacity of policy makers and civil servants to work with
CSOs will strengthen democratic institutions and reforms and increase trust and competencies to build up dialogue and
opportunities for partnerships. The CSOs also have a role to play as independent development actors and in that respect
their capacity to perform their roles more effectively will be strengthened.
Priority 1. Ensuring active and equal participation of CSO in policy making, implementation and monitoring on
national, regional and local level
Measure 1.1. Creating an enabling environment for the sustainable development of civil society and partnership
with the Government
This measure is addressing institutional, legal and financial preconditions necessary for the sustainable development of civil
society thus enabling establishment of partnership and permanent dialogue between public authorities and CSO. The
measure will support implementation of the National strategy for enabling environment for civil society development,
including development of monitoring, evaluation and reporting mechanisms. It will also support CSOs in their efforts to
monitor the Office work and implementation of the Strategy, including production of the shadow reports for Government
actions in different areas. Activities will include improvement of institutional (Council for Cooperation with CS), legal
(Integration of cooperation with CS into laws/regulations, amending regulation to create a more enabling environment for
development of CS and for the exercise of the rights of freedom, expression, assembly, association etc.), fiscal and financial
framework (philanthropy and favourable tax laws), non-financial support (legislation allowing state and local authorities to
allocate state property, renting space without financial compensation - time-bound, free training, consultations and other
resources, to CSOs) as well as transparent state funding for CS development in accountable manner and its participation in
the decision-making process. Enhancement and institutionalization of the permanent dialogue, partnership and cooperation
between the Government and civil society, both on national and local levels (cooperation, communication, consultation and
participation) in creation and monitoring of public policies by creating applicable models and mechanisms (standards and
bylaws). Also, actions will aim to develop public-private partnerships and mechanisms for cooperation between local self-
governments and CSOs. A supportive environment for CSO involvement in service provision should be further strengthened.
Capacity building for Government institutions and National Assembly to better understand the benefits of CSOs’ constructive
participation in the process of development, implementation and monitoring of national strategies, at all levels. In order to be
able to efficiently fulfil its mandate based on the training needs assessment, capacity building of the Office for Cooperation
with the Civil Society and other public institutions will be supported, so as to raise the understanding of the cooperation
mechanisms and dialogue in the overall process of policy making and implementation.
Measure 1.2. Further strengthening of CSOs’ capacities to participate in decision-making processes, to monitor and
evaluate the implementation of policies, strategies and laws
256
The CSOs must overcome capacity constraints ranging from limitations in technical management and leadership skills,
fundraising, to organisational and issues of internal governance. Through grant schemes for CSOs, this measure will
support capacity building of civil society organisations to participate in the decision-making processes and implement sector
policies; to monitor and evaluate the effects as well as to monitor and actively participate in the EU negotiations processes,
to strengthen membership base, by higher internal governance standards, including democratic structures, monitoring and
evaluation, financial management, transparency, geographic outreach and cooperation. Moreover, CSOs should be
supported to increase their effectiveness by increasing their capacity for analysis, monitoring and advocacy as well as
networking, partnership, coalition-building and active involvement in the policy and law making processes. Finally, financial
sustainability requires improved capacity for diversified fundraising targeting public as well as private sources of income. On
the national level, further capacity building will be carried out for SECO members for participation in the planning of
development assistance, particularly programming and monitoring the use of the Instrument for Pre-Accession Assistance.
In addition, the capacity building should be provided for SECO members to be able to participate in the consultative
processes. Also, actions are aiming at increasing the role of local CSOs, non-formal groups and citizens’ initiatives in
influencing the local and national level policies with consideration to constituency building and representativeness, which
should be done in particular through re-granting and flexible support mechanisms to respond to their immediate needs.
Support to existing and new networks, coalitions and alliances of civil society organisations at local and national level, as
well as the region of WB and Turkey and the EU level in tackling local, national, regional and transnational challenges. In
addition, raising awareness and development of Corporate Social Responsibility, private and corporate philanthropy, as well
as of social entrepreneurship will be supported.
Regional, Cross-Border and Transnational Themes in CSO
The focus will be on development of cooperation with Governmental institutions dealing with CS issues in the WB region and
Turkey. It will also facilitate communication, cooperation and partnership between the Office for Cooperation with Civil
Society and EU organisations and institutions dealing with CS issues. Communication, cooperation and information flow
between and with CSOs in West Balkan region and Turkey, and EU Member States is to be strengthen and common actions
implemented. On the regional level focus will be on development and implementation of mechanisms for monitoring the
enabling environment for civil society development.
MB IPA
Following the experience so far with implementation of Civil Society Facility, focus should be on: civic initiatives and
capacity-building enforcing the role of civil society at local, national and regional levels; joint activities between civil society
organisations in different (potential) candidate countries and EU countries to develop networks and promote knowledge
transfer and People-2-People programme – visits to EU institutions and knowledge sharing between the EU and civil society
bodies in current and future EU countries.
CBC and TNP
In the context of regional cooperation and development emphasis should be on the development of civil society and local
communities by fostering common regional identity, stronger social and cultural ties between communities in the border area
and joint capacity-building actions undertaken in relation to civil society, establishing partnerships and models for co-
operation based on best practices and common needs and people-to-people actions. It is expected that the CSO will support
implementation of other sector specific themes.
The emphasis is on the active participation in the “Danube Civil Society Forum” aiming to promote and enhance civil society
participation and networking in the framework of the European Union Strategy for the Danube Region.
B12.6. Institutional framework for implementation of thematic area approach
The Civil Society area in the Republic of Serbia is steered by the Office for Cooperation with the Civil Society, with the
support and assistance of SECO mechanism (in the field of planning and programming of international assistance), CSOs’
networks and individual CSOs.
The coordinating institution for the civil society area is the Office for Cooperation with the Civil Society. The Office within its
regular mandate initiates the adoption of regulations, other general instruments and public policy documents relevant to the
legal and tax-related status of CSOs and monitors and is responsible for the implementation of the regulations and policies.
The Office also initiates dialogue with the civil society on policy issues, collects and distributes information relevant to CSOs,
and undertakes other measures and activities aiming at raising capacities and sustainability of CSOs. The Office
257
coordinates and encourages cooperation between ministries, other Government agencies and local government bodies with
CSOs and conducts activities related to the training and professional advancement of the staff in public administration and
local governments, as well as other stakeholders, including also raising awareness among public administration on the
benefits of cooperation with CSOs.
In the field of planning and programming of EU funds and international development assistance, a consultative mechanism
with civil society organisations (CSOs) – SECO mechanism - was established in 2011. SECO mechanism is based on the
consultative process with Sectorial Civil Society Organisations (SECOs) and serves as a framework that enables exchange
of information and contribution of CSOs in relation to planning of development assistance, particularly programming and
monitoring of the Instrument for Pre-Accession Assistance (IPA). SECO represents a network, led by consortium of
maximum three CSOs, where one is defined as Leader of the consortium. The mechanism systematically and transparently
involves the CSO sector in an inclusive debate and dialogue, with Government representatives, on the EU funds and
development assistance planning and programming processes. It serves as a platform that enables CSOs to influence and
to provide recommendations for further improvement of the strategic documents related to planning and programming of
international development assistance (i.e. “National Priorities for International Assistance”). In this regard the SECO for Civil
Society, Media and Culture has been established and its primary goal is to enable the inclusion of CSOs into the European
integration and IPA fund programming processes in a systematic and transparent way.
Group (SWG) for Civil Society, Media and Culture323 has been established. The SWG for Civil Society, Media and Culture is
responsible for coordinating activities related to planning, programming and monitoring of EU funds and international
assistance and proposing relevant measures and activities contributing to the improvement of CSO functioning. The
functioning, management, organisation and composition of the SWG is more precisely defined by the “Rules of Procedure
for Sector Working Groups for the Programming and Monitoring of the EU funds and development assistance”. The national
institutions participating in the SWG are the Office responsible for cooperation with civil society, Ministry in charge of labour,
employment and social policy, Ministry in charge of finance and Ministry in charge of economy, Office responsible for the
protection of rights of citizen, Commissioner responsible for the Protection of equality and office responsible for European
integration affairs (SEIO). Members of the SWG are officially appointed representatives of the above mentioned institutions,
at the level of State Secretary or Assistant Minister, or appointed Senior Programming Officers (SPOs) and the Serbian EU
Integration Office.
Monitoring Subcommittee for IPA TAIB under the decentralised management.

258
PRIORITY 1: Ensuring active and equal participation of CSO in policy making, implementation and monitoring on national, regional and local level
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 for reporting
1.1. A number of laws, bylaws, government
procedures and decisions developed for open, Official Gazette
Office for Cooperation
regular and transparent communication and No 0 1 2 3 3 3 3 4 5 LMs reports
with Civil Society
cooperation between government institutions OCCS report
and civil society organisations
MEASURE 1.1: Creating an enabling environment for the sustainable development of civil society and partnership with the Government
(2012) 2013 2014 2015 2016 2017 2018 2019 2020 for reporting
1.1.1. Number of regulations amended to Official Gazette,
create more favourable financial and tax No 0 3 LMs report,
with Civil Society
regime for CSOs and other associations OCCS report
Law on Budget,
1.1.2. % of national budget disbursed for CSO Office for Cooperation
% 0.60% 0.85% Law on Final Account,
institutional and project support with Civil Society
OCCS’s Annual Summary Report
Law on Budget,
Decision on Budget,
1.1.3. % of local budgets disbursed for CSO Office for Cooperation
% 2.58%326 2.65% Law on Final Account, /Decision
institutional and project support with Civil Society
on Final Account
OCCS’s Annual Summary Report
MEASURE 1.2: Further strengthening of CSOs’ capacities to participate in decision-making processes, to monitor and evaluate the implementation of policies, strategies and laws.
Baselin Target
Institution in charge
Indicator Unit e Means of Verification
2013 2014 2015 2016 2017 2018 2019 2020 for reporting
(2012)
Not
less Serbian Business Register Office for Cooperation
1.2.1. Number of CSOs registered No 20,000
than Agency with Civil Society
25,000
1.2.2. % of CSOs capable to ensure CSOs narrative and financial
sustainable financing through diverse % 6% 20% reports,
with Civil Society
resources Multiannual research report
326 The data was received from the Treasury. The data may differ from the cities and municipalities’ accounting data, if they failed to record the data on payments correctly.
259
1.2.3. % of CSOs involved in domestic and CSOs reports, Office for Cooperation
No 35% 50%
foreign coalitions and networks Multiannual research report with Civil Society
260
According to the ISDACON database, the civil society area has received substantial assistance from the international donor
community over the period 2007-2012, with estimated total disbursement amounting to €64.45 million. Largest and most
important donor in the sector has been the EU with total disbursement within IPA component I amounting to 11 million EUR
in the period 2007-2013.
In the six annual programmes 2007 – 2013, IPA component I supported civil society in establishing partnership and
networking with European and regional counterparts, promoted anti-discrimination and tolerance, cultural diversity and
pluralism, policy dialogue with Serbian authorities, improved CSOs’ capacities to formulate public policy, policy analyses and
advocacy, as well as developing, implementing and monitoring policies and actions that harmonise with EU standards at the
local level. Also, under multi-beneficiary IPA, the civil society facility projects (IPA 08 - €16.5 million, IPA 09 - € 10 million,
IPA 11-13 - €7.5 million) have provided technical assistance to CSOs and supported ‘People 2 People’ activities and
partnership actions.
Bilateral donors in Serbia are still very active in their support to CSOs to promote the development of democracy and
support CSOs through various individual projects. Donors have supported strengthening of the role of civil society in shaping
poverty-related policies and practice through provision of community-based social services, public-civil society partnership,
gender mainstreaming in sector policies, and promoting civil society advocacy to improve legal and regulatory framework,
such as USAID’s recently completed $27.5 million programme Civil Society Advocacy Initiative, and by the means of UN
Agencies (such as UNDP). The World Bank has been running a Small Grants / Civil Society Fund Program for Serbian
CSOs and the Regional Environmental Sector for Central and Eastern Europe (REC) has completed the SECTOR
Framework Programme (Supporting Environmental Civil Society Organisations in South Eastern Europe) and has initiated
the SENSE (Strengthening of environmental civil society in Serbia” in cooperation with the Swedish International
Development Cooperation Agency (SIDA). Also, the Norwegian Ministry of Foreign Affairs has programs of support to
CSOs. USAID's new Civil Society Forward continues to support CSOs' improving their sustainability.
The “Evaluation of the effectiveness and efficiency of development assistance to the Republic of Serbia per sector” 327
assess the relevance of the assistance as high, as it responded to the needs of the government in all respective areas.
Overall conclusion related to the efficiency is that it is high, while overall rating of the impact and sustainability is low-
medium. As recommended in the Report further project-based approach to the CSO area in 2014-2020, should be
dedicated to ensure there is continues to the improvements in donor coordination with ministries, OCCS and other
stakeholders and a common vision for each theme on where the support and goals of the assistance should go with regards
to empowerment of civil society as extremely relevant for the overall democratisation and development of the country.
International assistance to civil society should be continuous and should focus on further support to building capacities and
tools of civil society to monitor the implementation of policies and legislation, as well for contributing to policy making as
such. Also, there needs to be a greater focus on further strengthening of the enabling environment (legal and institutional,
but also financial framework) as well as investment in capacities of organisations within sectorial networks in all relevant
areas, as a large number of CSOs, particularly at local level, do not have extensive experience with sector-based
networking.
327
Evaluation of Effectiveness and Efficiency of Development Assistance to the Republic of Serbia per Sector (April 2013), SIDA
261
SECTION C: COORDINATION AND IMPLEMENTATION
C.1 The role of SEIO/NIPAC
The Serbian aid coordination mechanism was established by the SEIO which is responsible for ensuring the effective and
efficient use of international assistance to support the achievement of national strategic development priorities 328.
In its aid coordination role, SEIO is responsible for the following tasks:
 preparation of strategic planning documents defining national development goals and priorities for the
programming of international assistance;
 consultation with, and coordination of stakeholders329 in order to identify sectorial, inter-sectorial and regional
strategies, priority needs and identifying adequate programmes and projects to be financed by international
assistance;
 providing information to, and cooperation with the donor community to enable alignment of international assistance
with national priorities;
 participation in the design of donor strategies and planning of programmes and projects financed by assistance;
 monitoring of programme and project implementation by means of: reports from the beneficiaries; donor reports;
on the spot checks and the commissioning of evaluation reports;
 harmonization of international assistance programmes and projects with the national priorities and ensuing
cooperation with stakeholders;
 development and improvement in the management of international assistance; data gathering, analysis and
preparation of reports on the use of international assistance (via ISDACON);
 reporting to relevant bodies, the Government and international institutions on the implementation of projects
financed by EU funds and international assistance.
National IPA Coordinator (NIPAC) is Government’s officer, who is the main interlocutor between the Serbian government
and the EC regarding IPA and is responsible for ensuring the overall coordination of IPA assistance and its linkage to the EU
accession process330. SEIO department ‘Planning, Programming, Monitoring and Reporting on EU Funds and Development
Assistance’ provides the Technical Secretariat to support the NIPAC. The NIPAC draws-up and, subject to examination IPA
Monitoring Committee, submits to the EC annual and final reports on IPA implementation.
The NIPAC function will continue under IPA-2 (2014-20), specifically the (draft) Rules of Application states that:
‘The NIPAC will be the main counterpart of the Commission for the overall process of: strategic planning,
coordination of programming, monitoring of implementation, evaluation and reporting of IPA assistance. The
NIPAC shall ensure coordination within the national administration and with other donors and a close link between
the use of IPA assistance and the general accession process.’ (Article 4)
In order to support the functions of the NIPAC the Technical Secretariat is responsible for:
 Coordination of programming of IPA funds, as well as identification and determination of funding priorities under
IPA;
 Providing support to the National IPA Coordinator in establishing the procedure for programming and monitoring
under IPA and roles and responsibilities of the institutions in the programming and monitoring process;
 Coordination of the programming process, monitoring the programming process and supporting the institutions
involved in programming;
 Providing technical support to the National IPA Coordinator in establishing, chairing and organising the work of the
IPA Monitoring Committee, TAIB Monitoring Committee and relevant Sectorial Monitoring Subcommittees;
 Assisting the National IPA Coordinator in preparation of Annual and Final IPA Implementation Reports, as well as
preparation of Annual and Final TAIB Implementation reports;
 Collecting and analysing regular sector supports and projects monitoring reports in terms of achievement of
purpose and objectives;
 Preparing the regular monitoring reports for the TAIB Sectorial Monitoring Subcommittees;
 Organising and implementing the procedure of monitoring the implementation of sector supports and/or projects,
as well as supervising the implementation of recommendations provided during monitoring. Monitoring of
328
The Decree amending the Decree on establishing European Integration Office from June 2010 (Official Gazette of RS, no. 126/07,
117/08, 42/10, 48/10 and 106/12), defines scope of work of the European Integration Office
329
Stakeholders’ institutions are: authorised bodies and public administrations, local self-government and other relevant institutions.
330
Minister without portfolio responsible for European integration is the designated NIPAC, and before him was the Head of European Integration Office.
262
implementation is performed until minimum one year after the execution of the latter contract within sector support
and/or project;
 Monitoring the fulfilment of preconditions for the initiation of public procurement procedures;
 Consultations with the Programme Authorising Officer with regards to planning of procurement funded by IPA and
monitoring the implementation of procurement and contracting;
 Implementing adequate measures aimed at ensuring the publicity and visibility of activities funded by IPA,
including developing and monitoring the implementation of the IPA Communication Strategy;
 Organising the process of evaluation of IPA programmes in order to assess the level of achievement of
programme purpose and objectives as well as supervising the implementation of recommendations resulting from
the process of external evaluation of IPA programmes.
C.2 Sector Coordination
Sector Working Groups (SWGs) were established to provide a mechanism for consulting and coordinating the various
institutions responsible for sector management during the programming and monitoring of international assistance. SWGs
ensure transparent and inclusive dialogue between all relevant stakeholders around national strategies for each specific
sector /thematic area331, and thereby ensure effective participation and coordination of all relevant institutions within a given
sector. Donor and IFI representatives participate in the work of SWGs during the programming of international assistance
taking an active part in the preparation of projects /programmes. SWGs therefore serve as platforms for donor and IFI
coordination and consultation at the sector level and thereby provide a means for achieving one of the EC’s objectives for
introducing a Sector Approach, namely the establishment of a sector policy dialogue 332 between donors and beneficiary
administrations. Coordination and cooperation with other state institutions, public enterprises, local self-government bodies
and Autonomous Provinces is secured by the responsible line ministries which are members of the SWGs.
The composition, functioning, management and organisation of SWGs are regulated by the ‘Rules of Procedures for Sector
Working Groups’ which are adopted by NIPAC and which identify the functions of the leading national institution (the sector
lead institution) and the lead donor in each SWG. Coordination and leadership of the SWG is supported by a ‘task force’
made up of representatives from the sector lead institution, the lead donor and SEIO. SEIO provides the secretariat of each
SWG and it is responsible for ensuring the efficient functioning and coordination of their activities. Members of the SWG are
Senior Programme Officers (SPOs) or officials of equivalent rank from the sector line ministries together with representatives
of other relevant national organisations and institutions, including the Parliament, the National Bank and SEIO. SWGs are
established for the period of four years and meet regularly at least four times a year but often more frequently if necessary.
In order to establish transparency and to enable scrutiny of the planning, programming and monitoring of international
assistance by the wider public, SEIO have established a statutory consultation process with the representatives of CSOs.
Sector Civil Society Organisations (SECOs) have been identified and selected to take part in the work of SWGs. They act as
representatives of the wider community of both national and international CSOs. The number of SECOs corresponds to the
number of SWGs and SECOs regularly participate in SWG meetings during the programming and monitoring phases of the
international assistance project /programme cycle. In this way, SECO mechanism serves as a platform for exchange of
information and contribution of the many CSOs which have an interest in each of the sectors /thematic areas.
Indeed, the mechanism sees CSOs as the main interlocutors through a form of representation based on sector
specialisation: each SECO comprises up to three CSOs which are particularly active, representative and involved in the
development of a given sector. These CSOs are selected based on public invitation and one in each group is designated to
act as the rapporteur for the whole group. SECOs are visible and oriented to the maximum transparency and participation. A
dedicated website333 is active and it is regularly updated with information about important developments of this consultative
process.
C3 Sector Lead Institution
The lead national (sector) institution is the ministry responsible for coordinating the activities of all relevant institutions
related to preparation, implementation and monitoring of sector projects /programmes to be supported by international
assistance. This institution has the main responsibility of leading the relevant institutions in the process of policy making,
implementation, monitoring and reporting within each sector. This is a significant responsibility since achieving reform results
within sectors/ thematic areas requires long-term governmental ownership, leadership and political will. The first and crucial
331 Sector Working Groups are the following: Justice; Home Affairs; Public Administration Reform; Competitiveness; Human Resource and Social
Development; Agriculture and Rural Development; Environment and Climate Change; Energy; Transport; Culture and Media; CSOs.
332 Sector Approach in Pre-Accession Assistance. Ref. Ares(2013)65573 – 18/01/2013. Section 2
333
www.cdspredlaze.org.rs
263
role of the sector lead institution is to guide the efforts within the sector, with the power to make decisions, control resources
and coordinate all participating institutions in providing inputs to achieve the desired long and medium-term sector impacts.
The lead institution plays a predominant role in most of the institutional functions for the sector and takes overall
responsibility within the government for:
 the strategic and policy planning and implementation;
 the delivery of strong internal and horizontal intergovernmental coordination arrangements as well as good vertical
coordination of national, regional and local activity;
 the coordination of the necessary partnerships between government, the professional, CSOs and donor
communities;
 the finalisation of a comprehensive legislative framework;
 the provision of sustainable sources of annual funding and a rational framework for resource allocation;
 the setting-up of a regular performance monitoring and evaluation framework.
Taken all together, the above institutional functions represent the main criteria for identifying the sector lead institutions i.e.
they need to have both the legal mandate and the capacity to perform these functions and to organise, coordinate and
manage sector reforms.
In addition, sector lead institutions should take a greater role in the upcoming EU accession negotiations. The table
presented in Annex 6 shows the sector lead institutions for each sector /SWG in comparison with the institutions which
provide the presidents of the working groups established for each chapter of the acquis. Inspection of this table shows that
in all but one sector there is a direct correspondence between the institutions leading the negotiations and SWG sector lead
institutions. The one exception is the sector of Public Administration Reform (PAR) where the sector lead institution is the
Ministry in charge of Public Administration despite the fact that the negotiations on all the chapters covered by the sector are
led by the ministry responsible for Finance. The chapters covered by the PAR sector are concerned solely with public
finance management whilst there is no acquis that deals with PAR. However, there is the EC initiative to establish thematic
PAR group where PAR related issues will be discussed. In addition, there are two main reasons for the institutional lead to
be taken by the Ministry responsible for Public Administration, these are as follows:
(i) PAR is considered to be an essential requirement for the negotiations on all the chapters of the acquis and in this
sense it underpins all the sectors and is cross-cutting.
(ii) PAR is an SAA obligation, since under Article 114 (Public Administration) of the SAA, ‘Serbia must ensure the
development of an efficient and accountable public administration, notably to support rule of law implementation,
the proper functioning of the state institutions’.
C4 Implementation modalities
International assistance encompasses the support of bilateral and multilateral partners and IFIs 334 which is provided in the
form of grants and concessional loans, provided that the grant element in the total approved funds is at least 25%. 335
Implementation modalities of development assistance vary depending on the type of assistance and whether it is provided in
the form of grants or concessional loans. In the case of bilateral and multilateral grants, implementation modalities fall into
two groups:
 The first group tends to manage their projects directly by their own development agencies (e.g. Germany/GIZ,
USA/USAID, Sweden/SIDA, Switzerland/SDC, Japan/JICA);
 In the second group, bilateral grants show a gradual shift from implementation through development agencies (or
direct implementation by bilateral/multilateral donors) towards a more significant use of national administrative
systems and structures (e.g. Norway, Sweden, USAID). This is in line with the Paris Declaration (indicator 5b, see
Table 4, Section A.4.3).
In some cases donors are providing support by using international organisations as implementing partners or they pool their
own funds (e.g. Multi Donor Trust Fund in Justice Sector). Development assistance can be also implemented in a form of
budgetary support. General budget support is un-earmarked contributions to the government budget to support the
implementation of macroeconomic reforms (structural adjustment programmes, poverty reduction strategies). Sector budget
support, like general budget support, is an un-earmarked financial contribution to a recipient government’s budget. However,
in sector budget support, the dialogue between donors and partner governments focuses on sector-specific concerns, rather
than on overall policy and budget priorities.
334 Funds/donations of private and NGO sector are not included

335 OECD definitions of official development assistance
264
Implementation modalities for IFI and bilateral loans strongly depend on the agreements reached between the government
and the particular financial institution or donor government providing the loans. This implies that implementation of IFI/
bilateral loans is strictly regulated and agreed between two sides regardless of how it is managed by national institutions.
The management of IPA funds has, to date, been managed by the EU Delegation. However, the Serbian authorities are
currently at an advanced stage of preparations for the conferral of management responsibilities for IPA funds under the
decentralised management system (DMS). The preparation process for the conferral of management involves five distinct
stages, these are:
Stage 0: Establishment of the management and control system
Stage 1: Gap assessment
Stage 2: Gap plugging
Stage 3: Compliance assessment
Stage 4: National accreditation and submission of DMS application for conferral of management with ex-ante
controls
The necessary structures (National Fund, Central Financing and Contracting Unit, NIPAC TS, CBC Body, Operating
Structures and Audit Authority) have been established and DMS posts (Competent Accrediting Officer, National Authorising
Officer, Programme Authorising Officer, NIPAC, Head of Operating Structures, Senior Programme Officers) have been
appointed. It is expected that by the end of 2013 the Serbian administration will take on the tendering, contracting and
payment responsibilities for IPA from the EU Delegation.
The EU Programmes are managed by responsible line Directorate Generals, while responsibility for implementation of
individual projects lies at project applicants.
C5 Instruments for aid effectiveness
The aid coordination mechanism in place aims at improving aid effectiveness, speeding up reforms and streamlining
external funding towards national priorities and objectives. Within the existent aid coordination mechanisms three key
instruments are developed to assist alignment of donor resources to national priorities:
 This document, the NAD, which aligns international assistance with national priorities through sector approach.
 Action Plan for Programming of International Assistance which is prepared by SEIO, aims to organise and
efficiently implement the process of programming and reporting on the international development assistance. It
ensures synchronization of development aid programming with specific donor calendars, national planning and
budgeting processes. The Action Plan defines the instructions and procedures for all actors to follow in the
process of programming EU funds and development assistance and describes the different roles and
responsibilities in the programming and reporting processes.ISDACON (www.evropa.gov.rs) serves as an IT
support to the management of international assistance and to the increase of its effectiveness. The system
provides comprehensive data and reports on international assistance, with the purpose of ensuring efficiency in
programming, securing timely and effective communication and exchange of information between the users and
enabling transparent use of international assistance. The system is going to become a monitoring tool for EU
funded projects under the new financial perspective 2014-2020. It includes an aid management platform and a
website for sharing information on EU funds and development assistance.
265
ANNEXES
ANNEX 1 - STRATEGIC AND LEGAL FRAMEWORK
This Annex contains the appropriate strategies for the period the document ‘National Priorities for International Assistance to
the Republic of Serbia 2014-2017, with 2020 Projections’ is related to.
JUSTICE SECTOR
Strategic Framework
New National Judicial Reform Strategy 2013-2018336 was adopted in 2013. The new Strategy is further strengthening key
principles that will improve the judicial system regarding its independence, impartiality and quality of justice, competence
accountability and efficiency. Specific measures will be dealing with the improvements in the legislative framework, reduction
of existing backlog of pending court and enforcement cases and the length of court proceedings, which should simplify and
streamline rules of procedure, smooth introduction of new legal professions, better internal organisation of courts and
increased efficiency of individual judges and prosecutors. Also the ICT Strategy, as referred in the National Judicial Reform
Strategy, is in the process of drafting and it will in detail define dynamics and time frame for establishment of the ICT system
in the judiciary.
National Anti-Corruption Strategy337 for 2013 - 2018 is adopted and will serve as a foundation for the new Action Plan as
a key document in the process of the fight against corruption. The Strategy is structured around following priority areas:
Public Finances, Public Enterprises, Financing of political parties, Urban and Spatial Planning, Justice, Right of Access to
Information of Public Interest, Police, Education and Sport, Media, prosecution of criminal offences of corruption, Public
Procurement, Healthcare, Whistle-blower protection. Serbia has adopted the National Strategy for the Fight against
Organised Crime338 in 2009.
In addition, Serbia adopted in 2010 the Strategy for Development of the Free Legal Aid System 339 and the Strategy for
Reducing Overcrowding in Institutions for Enforcement of Criminal Sanctions 340 for the period from 2010 to 2015. New
Strategy for the Development of the System for Execution of Criminal Sanctions in the Republic of Serbia for the period
2013 to 2020 is being in the process of preparation and its adoption is expected in the 2013 and some of determined
priorities are: further development and widely implementation of alternative sanctions, creation of measures for the
execution of alternative measures and sanctions, introduction of new ways of alternative sanctions, training for judicial
function bearers, probation officers, police officers, etc., further development of the post penal care of convicted persons as
support to implementation of the new legislation and introduction of the new ICT.
Strategy of the Reform of Penitentiary System in Serbia was adopted in 2005 and it defined modern instruments and
working methods to build the capacity of prison staff and to contribute to the development of a safe, secure and transparent
environment for persons detained in prison. The new draft Strategy defined several the most important areas that need to be
developed and relevant priorities and made connection for harmonization of the penal system reform with reforms related to
other institutions of the judicial system and state authorities. Relevant policies promoting H&MRs refer to enhancement of
the socio-economic position and participation, representation, protection and decision-making mechanisms of minority and
vulnerable groups. Strategic documents include: Strategy for Sustainable Survival and Return to Kosovo and Metohija (2010
– 2015); The National Strategy for Improved Status of Women and Gender Equality Promotion (2009 – 2015); The Strategy
for Improvement of The Status of Roma in The Republic of Serbia (2009 – 2012) outdated-the new strategy is under
development; National strategy for prevention and combating violence against women (2011 -2014); National strategy for
resolving the problems of refugees and internally displaced persons (2011 – 2014); Strategy for fight against trafficking in
human beings (2006-implementation period unknown); Strategies for prevention and suppression of human trafficking and
protection of victims in Serbia, (2013-2017 to be adopted); Antidiscrimination Strategy 2013-2018 (to be adopted in 2013).
Regarding the protection of minorities, Serbia has undertaken, in preparation of the 2014 elections to the Minority
Councils, a revision of the 2009 Law on the National Minority Councils 341, in order to address some of the shortcomings.
This follows the recommendations by the Ombudsman and the Commissioner for free access to information of public
336Official Gazette of the RS“, No. 57./2013

337Official Gazette of the RS“, No. 57./2013
338Official Gazette of the RS“, No. 23/2009
340“Official Gazette of the RS“, No. 53/10
341“Official Gazette of the RS“, No. 72//09
266
importance and personal protection in particular regarding the electoral process and the rules governing the constitution of
the Councils. Serbia also took steps to improve the implementation of the legal framework throughout its territory.
Legal Framework
The judicial system legislative framework relies upon: Law on the High Judicial Council 342, Law on Judges343, Law on
Organization of Courts344, Law on the State Prosecutorial Council345, Law on Public Prosecution,346 Law on the Seats and
Territorial Jurisdiction of Courts and Public Prosecutor's Offices 347, Law on the Judicial Academy348, Misdemeanour Law349,
Civil Procedure Code350, Law on Non-Contentious Proceedings351, Law on Enforcement and Security352, Law on Public
Notaries353. In accordance with relevant laws, the High Judicial Council, State Prosecutorial Council and Judicial Academy
were established and new reduced judicial network has been introduced, characterized by drastic reduction in the total
number of courts and prosecutors and in line with this reduced number of judges and public prosecutors. The Law on
Organization and Jurisdiction of Government Authorities in Suppression of Organized Crime, Corruption and Other Severe
Criminal Offences (as lastly amended in 2011); the Law on Civil Servants (2006, as amended in 2009); and the Law on
Mutual Legal Assistance in Criminal Matters (2009).
Fight against corruption is based on the following legal framework: Law on Anti-Corruption Agency354, Law on organisation
and jurisdiction of state authorities in combating organised crime, corruption and other severe criminal offences 355, Criminal
Code356, Criminal Procedure Code357, Law on financing of political activities358, Law on Seizure and Confiscation of the
Proceeds from Crime359, Law on Liability of Legal Entities for criminal offences360, Law on execution of criminal sanctions361,
Law on Civil Servants362, Law on Free Access to Information of Public Importance363. Furthermore, the Republic of Serbia
can further benefit from the proper implementation of the United Nations Convention against Corruption. This is the only
international convention that establishes the key principles of prevention and criminalization of corruption, international
cooperation in this area as well as asset recovery. Serbia ratified the Convention in 2005. The Government should aim at
full-fledged implementation of the Convention and the Protocols – in order to further strengthen the preparedness for
meeting the requirements of the EU acquis, in particular chapters 23 and 24.
Human rights protection instruments have been transposed in the Serbian legal system and incorporated through the
following legal framework: Law on Free Access to Information of Public Importance strengthening the enforcement of the
Commissioner’s for Information of Public Importance and Personal Data Protection decisions, Law on the Prohibition of
Discrimination364 (2009), (the National Assembly elected the Commissioner for Equality in May 2010).
HOME AFFAIRS SECTOR
Strategic Framework
The Development strategy of Ministry of Interior (2011 – 2016) provides general direction for development of Ministry in
charge of home affairs. Following areas have been recognized for future development: Organization and management;
Security of the individual, the community and the state; Partnerships on national, regional and international level; System of
internal and external control and transparency in work. These objectives will be achieved through specific activities and
tasks that will be part of the Action Plan for the implementation of the Strategy.
342“Official Gazette of the RS“, No.(116/2008, 101/2010 and 88/2011)

343“Official Gazette of the RS“, No.( 116/2008, 58/2009 CCD, 104/2009, 101/2010, 82/2012 Constitutional Court Decision, 121/2012, 124/2012 –
Constitutional Court Decision,)
344“Official Gazette of the RS“, No(. 116/2008, 104/2009, 101/2010,31/2011-other law, 78/2011-other law 101/2011)
345“Official Gazette of the RS“, No(. 116/2008, 101/2010,88/2011)
346“Official Gazette of the RS“, No. 116/2008,104/2009, 101/2010, 78/2011-other law, 101/2011, 38/2012-CCD 121/2012)
347“Official Gazette of the RS“, No. (116/2008)
348Official Gazette of the RS“, No. (104/2009)
349“Official Gazette of the RS“, No. (101/2005,116/2008 and 111/2009)
350“Official Gazette of the RS“, No.( 72/2011)
351 “Official Gazette of SRS”( No. 25/82, 48/88,) “Official Gazette of the RS“,46/95, 18/2005, 85/2012)
352“Official Gazette of the RS“, (No. 31/2011 99/2011-)other law
353“Official Gazette of the RS“,( No. 31/2011,85/2012and 19/2013)
354“Official Gazette of the RS“, No.( 97/2008,53/2010 and 66/2011 CD)
355“Official Gazette of the RS“, No. 42/2002, 27/2003, 39/2003, 67/2003,29/2004, 58/2004, other law, 45/2005, 61/2005, 72/2009, 72/2011,other law
101/2011,other law32/2013)
356“Official Gazette of the RS“, No. 85/2005, 88/2005,107/2005, 72/2009,111/2009,121/2012)
357“Official Gazette of the RS“, No. 72/2011,101/2011.121/2012 and 32/2013)
358“Official Gazette of the RS“, No. 43/2011)
360“Official Gazette of the RS“, 97/2008
361“Official Gazette of the RS“, No. 85/2005, 72/2009 31/2011
362“Official Gazette of the RS“, No. 120/2004, 54/2007, 104/2009, 36/2010
363“Official Gazette of the RS“, No. 120/2004, 54/2007, 104/2009, 36/2010
267
To enhance the efficient prevention and fight against organised crime, Serbia has adopted the National Strategy for the
Fight against Organised Crime in 2009365. The Strategy, foresees the long-term trends and directions of functioning of the
organised crime structures, as well as the capacities of the Republic of Serbia for prevention and its reduction to the lowest
possible rate.
The Integrated Border Management Strategy366, was adopted in 2012, and defines areas of common interest for all four
border services (border police, customs and the two inspection services), relating to the field of joint training, infrastructure,
equipment and information technology and telecommunications systems. It is a document that determines the policy
regarding establishing a system of integrated border management, sets a framework for the elaboration of harmonised and
synchronised sector strategies and for implementation plans, defines roles and responsibilities of the state authorities and
relevant border services, identifies strategic goals, and decides on basic directions for actions during the process of
establishing and implementation the long-term sustainability and stability of the established system of integrated border
management.
The Community Policing Strategy with Action Plan, adopted on 30 April 2013 includes a new methodology of Police
work including significant emphasis on Prevention at local level. The Community Policing Strategy represents further
elaboration of the idea on the establishment of new ways of cooperation between the police and the citizens, the community
and the institutions, aiming at reduction and control of security challenges, risks and threats directed towards the community,
the groups and individuals within the Republic of Serbia.
Overall objective of the Strategy for emergency Management and civil protection367 is to develop a comprehensive,
efficient and effective system to reduce the risk and consequences of natural disasters and other catastrophes, thus
integrated emergency management in the Republic of Serbia, which contributes to increased security and sustainable
development in the region.
The overall objective of the Strategy for fire protection368 is to improve fire safety by taking preventive measures and
implementation of the security measures of all subjects. Main areas of action include legal and regulatory environment,
preventive actions, reactive action, cooperation of all factors, especially the cooperation with international actors,
assessment of capacity in knowledge, skills and the necessary equipment.
Maine objectives of National Defence Strategy369 are: efficient defence system, peace and a favourable security
environment, and integration into European and other international security structures and participation in NATO's
Partnership for Peace.
National Security strategy370 (2009) objectives are to improve the safety of citizens, society and the state, strengthen
national security institutions, implement effective preventive measures and activities, as well as adequately addressing
security risks and threats in order to protect national interests.
Small arms and light Weapons control strategy371 overall objective is to establish a uniform system of effective control of
small arms and light weapons in the Republic of Serbia, which will reduce the number of weapons in illegal possession,
misuse of legally held weapons and increase the overall security of the citizens and the society as a whole.
National strategy for resolving the problems of refugees and internally displaced persons 372 is a framework for
generating initiatives and implementing activities with the goal to resolve problems of refugee and IDP issues.
National strategy for prevention and combating violence against women (2011) has overall goals to: Establish a
system of primary, secondary and tertiary prevention; improve the legislative framework for the protection of women from
violence; improve multi-sectorial collaboration, institutional capacity building and development of services; improving the
system of measures of protection and support for victims of violence.
The Strategy for Combating Illegal Migration in the Republic of Serbia 373 recognizes as one of its fundamental values,
the protection of persons submitting requests for asylum and as a specific goal, define the necessity for the, “development of
a system of measures for political migrants – asylum seekers.” Main objective of Strategy is significant improvement of
effectiveness and efficiency in combating illegal migration.

366 For the period
368 For the period 2012-2017
369 Adopted in 2009
370 For the period
268
Strategy for fight against trafficking in human beings374 (2006) contains series of measures and actions to be taken in
order to timely and comprehensive respond to the problem of human trafficking in the country, with special emphasis on the
protection of human rights victims. The strategic objectives in the fight against trafficking in human beings are grouped into
five areas: institutional framework, prevention, assistance, protection and reintegration of victims, international cooperation
and monitoring and evaluation of results. Strategy for prevention and suppression of human trafficking and protect victims in
Serbia, 2013-2018 has been developed. The Action Plan for the implementation of this Strategy has been prepared as well.
National Strategy against Money Laundering and Terrorism financing375, was adopted in September 2008 and includes
steps for improvement of legislative, institutional, and operational framework for fight against money laundering and the
financing of terrorism. The Action Plan for the implementation of the Strategy was adopted in 2010.
National Anti-Corruption Strategy376 for 2013 - 2018 will serve as a foundation for the new Action Plan as a key document
in the process of the fight against corruption. Draft Strategy is structured around following priority areas: Public Finances,
Public Enterprises, Financing of political parties, Urban and Spatial Planning, Justice, Right of Access to Information of
Public Interest, Police, Education and Sport, Media, prosecution of criminal offences of corruption, Public Procurement,
Healthcare, Whistle-blower protection.
In July 2009, the Republic of Serbia adopted the Migration Management Strategy377, addressing all aspects of migration,
with the aim to monitor and manage migration in line with European standards and regulation in this area.
Main priority of the Strategy on the Reintegration of Returnees Based on the Readmission Agreements 378 is
sustainable integration of returnees into the community, respecting social and cultural diversity.
Legal framework
Constitution of the Republic of Serbia379 contains norms for establishing the basic constitutional values such as human
rights, human freedom, the rule of law, market economy, social justice, civil rights on provincial and local self-government..
Almost all freedoms and rights in the sphere of individual and political rights are elaborated in the Constitution, including the
protection of the moveable and immoveable property rights.
The amendments to the Criminal Code380 introduced changes in the matter of regulating criminal terrorism, primarily for the
purpose of synchronising the Criminal Code with the relevant international legal instruments/sources in the area. The
Criminal Code has introduced new offences such as public instigation of terrorist acts and recruitment and training of
terrorist acts. While Serbia is a party to 14 of the 18 international counter-terrorism legal instruments, there is still a need to
ratify the remaining four instruments.
The Criminal acts Procedure Code381 introduced significant changes to the criminal procedure system in Serbia, introducing
prosecutorial investigation. The new CPC came into force on 15 January 2012 initially only in specialised prosecutors’
offices and courts dealing with war crimes and organised crime, but it was planned that its implementation starts also in
prosecution offices and courts of general jurisdiction as of January 2013.
The Law on Mutual Legal Assistance in Criminal Matters382 regulates in a complete manner all forms of mutual legal
assistance in criminal matters (extradition, mutual execution of court decisions in criminal matters, transfer and takeover of
prosecution, general aspects). ). In the context of the UNCAC review process, what was highlighted as good practice was
the fact that the Law on Mutual Assistance in Criminal Matters was comprehensive and coherent and regulates in a detailed
manner all forms of international cooperation used by the Serbian authorities. With regard to terrorism, it should be ensured
that the law specifies that terrorist offences should be exempted from the application of the political offence exception.
The Law on psychoactive controlled substances sets the conditions for the production and marketing, import, export or
transit of psychoactive controlled substances, requirements for job execution. The Law on substances used in the illicit
production of narcotic drugs and psychotropic substances (precursors) 383 sets the conditions for production and marketing,
import, export, transit of precursors, as well as the performance requirements in this area in accordance with the 1988
United Nations Convention.
Law on Asylum384 defines the process for obtaining right to asylum protection, defines the responsibilities and rights of
asylum seekers, persons seeking asylum, persons who have been granted refuge, subsidiary or temporary protection within
374 For the period

379 Official Gazette of the Republic of Serbia, No 98/2006
380 Official Gazette of the Republic of Serbia, No. 85/2005, 88/2005 – corr. 107/2005, 72/2009, 11/2009, 121/2012
381 Official Gazette of the Republic of Serbia, No.125/2005
383 Official Gazette of the Republic of Serbia, no 107/05
269
the asylum process, precisely defines the competencies of institutions involved in the process of resolving asylum claims,
providing basic living conditions and the protection of the human rights of asylum seekers. By means of this law a twofold
administrative procedure has been envisioned regarding the resolution of asylum claims, the possibility of appealing to the
Administrative Court as a tertiary judicial instances, provision of the accommodation and basic living conditions of asylum
seekers within the Asylum Centre as also the integration of those persons who have been granted subsidiary, temporary
protection or asylum.
Law on Foreigners385 Is, “lex generalis,” in the event of deficiencies in the scope, content, type of rights and responsibilities
of asylum seekers, persons seeking asylum, persons who have been given refuge, subsidiary protection or else temporary
protection within the asylum procedure.
Law on Protection of the State Border386 regulates the protection of the national borders, organizations and means of
achieving protection. The Law in question stipulates that the Border Police has the authority to perform controls of persons,
means of transport and goods found on public roads and facilities of importance to border flows within the place of the
border crossing and at other locations between borders crossings, on tributary roads located alongside the national frontiers
in order to stop and or uncover illegal migration and suppress cross border crime. With this law, the Republic of Serbia
established an effective system of protection of the state border and a high standard of border control, and cooperation of all
authorities involved in the operation is regulated. A set of seven accompanying by-laws was adopted in December 2012.
The Law on Migration Management387 adopted in November 2012 sets a competent authority for the integration of persons
with granted asylum (that is the Commissariat for Refugees and Migration), thus filling in the previously existing legal gap.
Regulatory and legal framework for defence system consists of several laws: Law on Defence 388, Law on Serbian Armed
Forces 389 and Law on Organisational Principles of Security Services of the Republic of Serbia 390. In the field of defence and
security the following laws are relevant: Law on Engagement of the Serbian Armed Forces and other Defence Forces in
Multinational Operations outside the Republic of Serbia borders391 and the Law on Military Security Agency and Military
Intelligence Agency392, Law on Civilian Service393 Law on Conscription, Compulsory Labour and Requisition394. Regulatory
and legal framework created conditions for defence system reform and strengthen mechanisms of democratic and civilian
oversight of the Serbian Armed Forces.
Other relevant laws are: Law on Execution of Criminal Sanctions 395, Law on Seizure and Confiscation of the Proceeds from
Crime, Law on Organisation of Courts396, Law on Public Prosecution397, Law on the Police398, Law on the organisation and
responsibilities of the State institutions in suppressing organised crime, corruption and other severe criminal offences 399,
Customs Law400 and Law on State Border Protection401.
PUBLIC ADMINISTRATION REFORM SECTOR
Strategic Framework
Strategy for Public Administration Reform in the Republic of Serbia (2004-2008) was the first basic strategic document
in the field of public administration. Activities in the implementation of this strategic document were defined in the Action
Plan for Implementation of Public Administration Reform which is the integral part of the Strategy. So far, the Government
adopted two Action Plans – first for the period 2004-2008 and second for 2009-2012. A coordination structure for the
development of the new PAR draft strategy for 2013-2016 is now fully operational. Several meetings have taken place of
the inter-Ministerial project group and amongst the 7 Working Groups during the last months and the new draft version of the
PAR strategy was developed, including a draft action plan. New strategy for public administration with an action plan will
cover broader field known as public administration – state administration, local self-government and other forms of
exercising public authority, while keeping continuity with the previously adopted principles of public administration reform. An

388 Official Gazette of the Republic of Serbia, no 116/07, 88/09, 104/09
389 Official Gazette of the Republic of Serbia, no 116/07, 88/09 and 101/10
390 Official Gazette of the Republic of Serbia, no 116/07 and 72/12
395 Official Gazette of the Republic of Serbia, No. 85/2005 and 72/09
396 Official Gazette of the Republic of Serbia, No. 116/2008, 104/2009 and 101/2010
398 Official Gazette of the Republic of Serbia, No. 101/05 and 63/2009 – decision of the Constitutional Court
399 Official Gazette of the Republic of Serbia, No. 42 /02, 27/03, 39 /03, 67 /03, 29/04, 45/05, 72/09
270
attempt is being made that main reform directions, currently outlined in various strategies, are brought together within the
scope of new PAR Strategy and Action Plan.
Strategy for Professional Development of Civil Servants in the Republic of Serbia 402 (2011-2013) with Action Plan
provided basic guidelines for establishing a new – integrated, comprehensive and sustainable system for professional
development of civil servants, completely in function of achieving the goals of the public administration reform. Creating a
professional public administration is the key condition for success of the public administration reform, and, having in mind
the absence of a systemic and suitable approach in resolving the issues of professional development of civil servants, this
strategy tried to fill the gap. Other important reason for introducing the new system for professional development is the
establishment of standards of quality and contents of the professional development programmes for civil servants, general
as well as individual.
Strategy for Development of e-Government403 (2009-2013) with the Action Plan sets out the objectives of the introduction
of government which should allow more efficient and effective operation of administrative bodies and public authorities in the
provision of public services to citizens, companies and other organizations. The new Strategy and an action plan for e-
Government development for 2014-2018 is planned to be adopted by end 2013.
National Anti-Corruption Strategy404 for 2013 - 2018 has been adopted and will serve as a foundation for the new Action
Plan as a key document in the process of the fight against corruption. Draft Strategy is structured around following priority
areas: Public Finances, Public Enterprises, Financing of political parties, Urban and Spatial Planning, Justice, Right of
Access to Information of Public Interest, Police, Education and Sport, Media, prosecution of criminal offences of corruption,
Public Procurement, Healthcare, Whistle-blower protection
The decentralization strategy was expected to be drafted under coordination of the Ministry in charge for regional
development and local self-government and adopted by the Government by mid-2014. Nevertheless, the principles of
balanced regional development are included in several strategic documents, mentioned below. Regarding fiscal dimension
of the decentralization, both the Fiscal Strategy and the PEP announce more efficient mobilisation of capacities of local
public finances and fostering the fiscal responsibility of local self-government. Measures envisaged improving management
of local public finances concern setting the limitation to growth of wages and subsidies on the local level and transfer of
competences from Republic to LSG units in the areas of transport infrastructure, education, social and health protection to
local level.
Regional Development Strategy of the Republic of Serbia 405 (2007-2012) was the first strategic document defining in a
comprehensive and consistent way basic development priorities of the country’s regional development and the ways of
reaching these priorities. According to the Strategy the main regional development goals are: sustainable development,
enhancing regional competitiveness, alleviating regional disproportions and poverty, stopping negative population trends,
continuation of the decentralization process, building institutional regional infrastructure. A new regional development
strategy is still in the drafting phase and it is up to be approved in 2013.
National Sustainable Development Strategy406 (2008-2017) as well underlines that the regional and local aspects of
sustainable development should include establishing a better organized and coordinated local government, local
administration and public utility companies, the development of local economy on the basis of available natural resources
and measures to support the promotion of sustainable use of resources; strengthening the institutional capacity of local self-
government and increased capacity of staff in appointed and elected positions in municipal administrations; and promoting
the development of local management for sustainable development through the development of local strategic and
development plans.
The draft Strategy for restructuring of public utility companies (PUC) in Serbia (2011) has been prepared with the
objective of gradually transforming PUC’s which are the responsibility of local governments into financially sustainable,
market-oriented companies that provide high quality services to its clients. This should be achieved by introducing a
common methodology for tariff-setting and business standards, improving operational efficiency, increasing capital
investment, also with participation of private capital, and putting in place transparent ownership and governance structures.
Fiscal Strategy407 (2014-2016) defines the objectives and guidelines of the Government’s economic and fiscal policy,
setting the path of fiscal consolidation and the three year expenditure ceilings. Responsible use of public funds and
increasing value for money is a general requirement on public administration which connects the overall administration
402 Official Gazette of RS No 56/2011

403 Official Gazette of RS No 83/09 and 5/10
404
Official Gazette of the RS“, No. 57/2013
405 The concept of the region in the Strategy implies “a local government unit on the territory of the administrative district” and does not match with the EU
definition, where the region is defined as an economic region. The concept of the region in the Strategy implies “administrative district” defined under Article
38 of the Law on State Administration (Official Gazette of RS No 79/2005, 101/2007 and 95/2010).
407 Serbian Government adopted Fiscal strategy for 2014 with projections for 2015 and 2016 on the Sitting form the 1 st of November of 2013
271
reform to the area of public finance management. Fiscal Strategy and the PEP prioritize establishing sustainable medium-
term expenditure framework, executing the structural reforms plan and the public debt reduction through inter-institutional
fiscal coordination, introduction of program budgeting, improving the system of capital investment budgeting, and developing
a transparent system of planning, awarding and control of spending on all budget subsidies. The special emphasis is on the
improvement of the system of controlling the number of employees and the salary mass amount in the public sector.
Tax Administration Development Strategy (2010-2014) and the Customs Administration Business Strategy408 (2011-
2015) address the key public administration bodies responsible for increasing revenue efficiency, reducing grey economy
and taxes and contributions evasion, and improving business environment.
Strategy for Development of Public Procurement (2011-13)409 aims at increasing transparency and efficiency of the
public procurement system and contributing to better public expenditure management.
Strategy of Internal Financial Control in the Public Sector (2009-2014)410 sets the framework for development of internal
financial control mechanism. As the Internal Audit has been the main focus of PIFC development, with the new PIFC
strategy for years 2014-2019 (under preparation) more weight has to be given to encouraging the managerial accountability
underpinned by financial management and control systems, and broadening the outreach of internal audits to local-level
institutions.
Strategy of the Ministry of finance for Successful European Integration Process (2011)411 has the main objective to
assist the ministry in its preparation for negotiations and for the screening in EU accession areas under its competence, and
to support the process of the institutional strengthening of the ministry.
Strategy of Regulatory Reform (2008-11) 412 is the key national document in the area of reducing bureaucracy and
improving public administration's contribution to national competitiveness. The Office for Regulatory Reform and Regulatory
Impact Assessment has published a draft strategy for 2013-16. Its main goals are creation of a business-friendly
environment, reduced legal uncertainty, and improved national economic competitiveness.
Legal framework
Legal framework for the organisation and functioning of the public administration in Serbia is comprised of a set of laws,
adopted since 2004 to date, in accordance with the Strategy for Public Administration Reform. Basic laws that govern the
functioning of the administration on the state level are Law on Government413 and Law on Public Administration414 with a
set of different governmental regulations. These laws were adopted in 2005 and set basic principles and rules for
professional and impartial functioning of the administration. The scope of work and responsibilities of the ministries, special
organisations is prescribed by the Law on Ministries415. This law has been changed significantly after each parliament
elections. Labour relations in administration at central level are governed by The Law on Civil Servants416 adopted in 2005,
which regulated in a comprehensive manner the rights and duties of civil servants in the Republic of Serbia, in accordance
with principles of the European Administrative Space. The salaries of the civil servants are regulated by the Law on
Salaries of Civil Servants and Other Employees417 which was adopted in 2006. The Law on Public Agencies 418
prescribes general rules for establishing para-governmental agencies. Other important pieces of legislation are Law on the
Ombudsman419, Law on Free Access to Information of Public Importance 420 and Law on Anti-Corruption Agency421.
The Law on Administrative Inspection adopted on 17 November 2011422 determines organization, operation and manner
of operation of administrative inspection, rights, duties and responsibilities of administrative inspectors and other matters of
importance for the work of administrative inspection as a form of internal monitoring of proper implementation of the law. The
legislative framework is still incomplete. New legislation on general administrative procedures and on local government
employees and salaries is yet to be adopted. Also the Law on Administrative Disputes423 still needs to be fully aligned
with European standards for judicial review of administrative acts.
408 Tax and Customs administration development strategies are certainly important internal organizational documents, not published in the Official Gazette
411 The Strategy was adopted by the ministry in charge of finance in March 2011, but not published in the Official Gazette
413 Official Gazette of RS No 55/05, 71/05 – corrigendum, 101/07, 65/08, 16/11, 68/12, 72/12 and 74/12 – CC
414 Official Gazette of RS No 79/05, 101/07 and 95/2010
415 Official Gazette of RS No 72/12
416 Official Gazette of RS No 79/05, 81/05 – corrigendum, 83/05 – corrigendum, 64/07 and 67/07 – corrigendum, 116/08 and 104/09
417 Official Gazette of RS No 62/06, 63/06 – corrigendum and 115/06 – corrigendum, 101/07 and 99/10
418 Official Gazette of RS, No 18/05 and 81/05 – corrigendum
420 Official Gazette of RS No 120/04, 54/07, 104/09 and 36/10
421 Official Gazette of RS No 97/2008, 53/2010 and 66/2011
422 Official Gazette of the Republic of Serbia” No 87 from 27 November 2011
423 Official Gazette of the Republic of Serbia No. 111/2009
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The Law on Regional Development424, adopted in 2009, defines five statistical regions and their names and defines the
following: the way of establishing the areas that constitute a region and the way of establishing local self-government units
that constitute an area, the indicators of the regional development level and local government units; classification of regions
and local government units per its development level; existence of development-related documents at the national and
regional levels; regional development subjects; measures and incentives and sources of financing for implementation of
regional development measures. Local government system is governed by the Law on Local Self-Government425 and the
Law on Local Elections426. System and organization of local government is directly dependant on the Law on Territorial
Organisation of the Republic of Serbia427 and the Law on the Capital City428 In accordance with constitutional
authorization, the Law on the Communal Police429 was adopted. Elements of fiscal decentralization are regulated by the
Law on Financing of Local Self-government Units430, adopted in 2006 and amended in 2011, with the aim to establish
transparency in providing municipalities with additional funding through allocations stemming from the personal income tax.
In addition, the law was amended in 2012 with the aim to limit certain local fees and to abolish local para-fiscal levies.
The Budget System Law431 established numerical fiscal rules and procedures, including the setting-up of a Fiscal Council,
which determine the path of expenditure-driven fiscal consolidation. It also formalized a multi-annual budgetary process,
which is supposed to underpin a more rigorous and efficient medium-term planning. Within the public finances management
system, amendments to the Budget System Law have a significant role as they improve the system of controls of the
number of employees and the mass amount of salary in the public sector. Within three fiscal years (2014-2016), apart from
the implementation of the restrictive indexing of salaries and pensions, significant effects are expected to be seen from the
improved system of controls of salaries and number of employees in the public sector based on the single register and
centralised calculation of payroll for all the public sector employees.
The Law on Public Private Partnerships (PPPs) and Concessions 432, adopted in 2011, introduced the concept of PPP
with clearly defined rules of procedure. The law established an intergovernmental Commission for Public Private
Partnerships (CPPP). Implementing the Law is still missing and the staff of the ministry in charge of finance needs to be
trained on the award of PPP contracts. The Law on Utility Services433, adopted in November 2011, regulates in detail the
provision and of public utility services as well as public private partnership in this area. The Law on Public Property 434,
adopted in November 2011, decentralizes public ownership entitlements into state, provincial and municipal property, and
provides specific rules for use and disposal of public property. The new Law on Public Procurement435 which was adopted
in December 2012 further harmonized the Serbian regulations with the acquis governing public procurement. The adoption
of a new Law and its implementation should significantly meet the priority related to the reduction of corruption in public
procurement and the priority related to taking appropriate measures by the authorities in case of misuse of public funds.
The legal system that regulates the segment of Serbian public administration is currently at a relatively high regulatory level.
From that point of view, the forthcoming normative activities in the public administration reform process will be chiefly
concentrated on finalizing certain elements of normative system. Following the completion of the 'legislative phase' of the
public administration reform process, the focus shall be on the organizational and functional projects related to the
consistent and proper implementation of bylaws and other adopted regulations and public policies. This phase of further
reform activities is therefore aimed at continuing the enhancement of public administration system operation (its reform) and
connecting this process with the process of European integration.
COMPETITIVENESS SECTOR
Strategic Framework
Overarching strategy for competitiveness has been provided in the Strategy for Industrial Policy (2011-2020).436 It has
identified goals of industrial restructuring through dynamic and sustainable industrial growth and the pro-active role of
Government. It emphasises the need for institutional set-up, improvement in the competitiveness of Serbian industry, faster
development of entrepreneurship, exports increase and restructuring, reform of the education system in line with labour
market demand, active and dynamic cooperation of science and industry, support to innovation, research and development,
new investment in new products, employment and labour market policy reform, balancing Government’s role in stabilisation,
development and social issues, development of the regional industrial centres and regional economic infrastructure,

425 Official Gazette of Republic of Serbia, No 129/07
426 Official Gazette of RS, No 129/07, 34/10 and 54/11
429 Official Gazette of RS, No 51/09
430 Official Gazette of the Republic of Serbia No. 62/2006, 47/2011 and 93/2012
431 Official Gazette of the Republic of Serbia No. 54/2009, 73/2010, 101/2010, 101/2011 and 93/2012
436 Official Gazette of the Republic of Serbia No. 55/05, 71/05 – correction, 101/07, 65/08 ,16/11
273
improvement in energy efficiency and environment protection. The Strategy envisages the process of consistent
implementation of structural reforms and adjustments in order to create business environment where social partners (private
enterprises, government institutions and civil organisations) work together to achieve abovementioned goals. Its
implementation requires synergy of 13 different policies - education, technological development, research and development,
restructuring and privatisation, foreign investments, ICT, entrepreneurship, employment, energy efficiency, environmental
protection, protection of market competition, regional development, promotion of corporate management.437
National strategies that align with and support the Strategy for Industrial policy are outlined below:
The Strategy for Development of Competitive and Innovative Small and Medium-sized Enterprises (2008-2013)438 has
been implemented on the basis of a five years’ Operating plan and a yearly budget allocation for its measures and specific
programmes. The aim of the Strategy is to develop entrepreneurial economy based on knowledge and innovation thus
creating a sustainable, competitive and export oriented SME sector and is based on the Think Small First Principle. The
Strategy was prepared in a consultative process directly including SMEs and their representatives aiming to address their
needs. It is built on 5 pillars covering promotion & support for entrepreneurship and establishment of new enterprises, human
resources for a competitive SME sector, financing SMEs and taxation of SMEs, their competitive advantage on export
markets and legal, institutional and business environment. The comprehensive Strategy for the Development of
Entrepreneurship and Competitiveness for 2014-2020 is being prepared, with special emphasis on SME development and
initial basis being the Small Business Act.
The Strategy of Scientific and Technological Development of the Republic of Serbia (2010-2015)439 has defined
Government objectives to create a national innovation system by promoting applied research and technology transfer and
creating partnerships between the public R&D sector and industry. It envisages goals of reorganising existing R&D institutes,
ensuring application of knowledge based innovations into products and services that will enhance the Serbian knowledge
based economy and its competitiveness.
The Strategy for the Intellectual Property Development (2011-2015)440 has defined Serbia’s objective of having the level
of protection of intellectual, industrial and commercial property similar to the one existing in the European Union, including
the efficient means for the enforcement of those rights, as well as mechanism of permanent harmonization of domestic
regulations with the new EU regulations in the area.
The Strategy of Development and State Support for the Information Technology Industry441 has defined the IT as one
of the leading drivers of competitiveness and innovation. It envisages support for IT entrepreneurship and Start-ups through
grants, development of business incubators and technology parks. It is focused on tax relief for software companies and
support for exporters of software products and solutions. Improvement of legal framework is planning to create better
conditions for electronic payment services, exchange of electronic accounting documents and the e-government while the
changes in the education system should enable youth to acquire useful and up-to-date IT knowledge and skills.
Strategy for Development of Information Society in the Republic of Serbia until 2020 442 defines following priority areas:
electronic communications; e-government, e-health and e-justice; ICT in education, science and culture; electronic
commerce (e-commerce); business sector ICT; information security.
The Strategy on Market Surveillance443 is focused on establishing an efficient market surveillance system for achieving
product safety with minimal burden on the economy. It has defined the main priorities regarding the harmonization of the
legal framework and enforcement of the laws and regulation through competent authorities and institutions. It involves not
only introducing new standards and legislation that products must comply with, but also a new approach to market
surveillance. The new approach to technical harmonisation within the EU is based on the principle of harmonising the
essential requirements of products and then applying the "general reference to standards" formula and the principle of
mutual recognition in order to eliminate technical obstacles to the free movement of goods within the EU.
The National Strategy for Tourism Development until 2015 prioritises key areas to stimulate economic growth,
employment and quality of life, including development of a positive international image of the country, ensuring the long term
protection of natural and cultural resources, and achieving international quality standards.
Regulatory Reform Strategy in the Republic of Serbia for the period 2013 – 2015 is based on principles of legal
certainty and predictability, as well as dismissing unnecessary administrative procedures (cutting the red tape), having in
mind international experiences in regulatory reform and more specifically the principles of "good regulation" established by
OECD. In order to simplify the regulatory environment, the Strategy reflects upon the results of the implementation of the
437 NPAA
438 Official Gazette of the Republic of Serbia No. 55/05, 71/05 - correction, 101/07,65/08
439 Official Gazette of the Republic of Serbia No 13/10
440 Official Gazette of the Republic of Serbia, No 55/05, 71/05, amendment 101/07, 65/08 and 16/11
441 Official Gazette of the Republic of Serbia No. 55/05, 71/05 – icorrection, 101/07, 65/08, 16/11, 68/12 – 72/12
443 Official Gazette of the Republic of Serbia”, No. 55/05, 71/05-ammended, 101/07 and 65/08
274
previous Strategy for the period 2008 - 2011 so as to draw conclusions and avoid previous determined deficiencies.
Similarly, it turns to the results of the implementation of the Comprehensive Regulatory Reform in Serbia (SRP). The goals
of the Strategy are the promotion of economic development, competitiveness, legal certainty of doing business, decrease of
administrative costs, improvement of Serbia's international rating in terms of the quality of the business environment, and
ensuring transparency and public participation in regulatory reform.
The Fiscal Strategy for 2014 with the projections for 2015 and 2016444 comprises of the macroeconomic framework,
fiscal framework, strategy for managing public debt and structural reforms in the given period 2014-2016. Under the
structural reforms of the real sector, the Strategy focuses on improvement of business and investment environment, through
reducing the costs and risks of doing business that will consequently strengthen private sector and encourage investment
and employment.
The National Plan for Regional Development should be adopted in 2013 covering the period of 2014-2022 and defining
the strategic framework for reducing regional disparities across Serbia.
The Strategy for the Development of Quality Infrastructure in Serbia (2014-2020) is being drafted and adopted by the
Government in early 2014. The drafting process is led by the ministry in charge of economy, in close cooperation with all
interested parties (ISS, ATS, DMDM, conformity assessment bodies, chambers of commerce etc.). The preparation is being
preceded by a comprehensive analysis of existing conditions in the functioning of the quality infrastructure and
benchmarking with countries from the region and the EU. The Strategy is identifying priorities and measures for further
improvement of Serbia’s quality infrastructure needed to increase the number of products with potential for exports
complying with international quality and conformity standards.
The Consumer Protection Strategy (2013-2018) draft which has already been publicly consulted is expected to be
adopted by the Government by mid-2013. The Draft Strategy rests on six objectives, which relate to: enhancing consumers’
interests through legislative improvements (including further EU law transposition), better integration of consumer policy into
other state policies, further improvement of institutional framework, building up effective market surveillance, strengthening
of consumer organisations and position of individual consumers as well as establishment of framework for regional and
international cooperation.
Legal Framework
The Law on the Registration of Business Entities 445 determines the conditions, subject matter and procedure for the
registration in the Register of business entities, as well as the way of operation of the Register of business entities. The Law
on Companies446 and the Law on the Registration in the Serbian Business Registers Agency 447 were enforced in the
first half of 2012. They fully implement European corporate directives (Second Directive 77/91/EC and by amending
Directive 2006/68/EC, Directive 2005/56/EC on cross-border mergers of companies with limited liability, 2007/36/EC
Directive on Shareholders' Rights, Directive 2007/63/EC amending the third and sixth directive, Directive 2009/101/EC
(codified First Directive), Directive 2009/102/EC on single-member private limited liability companies).
The research activity is regulated in the Law on Scientific and Research Activity448 which defines the basis by which
scientific and research activity in Serbia is financed in accordance with the State budget. On the other hand, the legal
framework for the formation of the national innovation system in Serbia is established through the Law on Innovation
Activity449. The law enables the formation of organizations for support of innovation activities and technology transfer
centres, defines intellectual property rights, and established Innovation Fund. The legal framework regarding inventions is
defined in the Patent Law 450 defining the legal protection of inventions.
For the purpose of electronic documents protection, the Law on Electronic Signature 451 was adopted. For electronic data
storage it is essential that the data is signed with an electronic signature, which secures appropriate functions, such as
authenticity, integrity and legality, in accordance with the legislation. It determines the use of an electronic signature in legal
matters, as well as the rights, commitments and responsibilities with respect to electronic certificates. The Law on
Electronic Document452 regulates the conditions and procedures for using electronic documents in legal commercial,
administrative, judicial and other proceedings, as well as the rights, liabilities and responsibilities of other legal entities in
regard to the electronic document.
444 Serbian Government adopted Fiscal strategy for 2014 with projections for 2015 and 2016 on the Sitting form the 1 st of November of 2013
446 Official Gazette of the Republic of Serbia, No. 36/11, 99/11
449 Official Gazette of the Republic of Serbia, No. 110/05 and 50/06 – correction and 18/10
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The Law on Electronic Commerce453 for the first time introduces into the legal system of Serbia the possibility of
concluding and realizing a legal contract exclusively by electronic means in trading of goods and services, that is, creates
the legal basis for concluding a contract in electronic format. This provides for legal protection in online trading, i.e. the
option that any contractual party, service provider, i.e. seller or buyer, may exercise the protection of their rights before the
court of law. In that sense, the most significant element of the proposed law is concretization of a special form of contract -
the contract in electronic format, which is concluded under the conditions and in the manner envisaged by this law. The Law
transposes relevant directives, namely the Directive 2000/31/ЕC on electronic commerce, as well as Directive 98/48/ЕC
amending Directive 98/34/ЕC.
The legal provisions of achieving balanced regional development are set in the Law on Regional Development454 which
defines the goals of stimulation of the regional development, amongst others: overall socio-economic sustainable
development; reduction of regional and inter-regional disparities in the socio-economic development and living conditions
with an accent on the stimulation of the underdeveloped, depressed industrial and rural areas; reduction in negative
demographic migrations, development of the economy based upon knowledge, innovation, modern scientific and
technological achievements and management as well as the development of competitiveness on all levels; establishment of
the legal and institutional framework for planning, organising, coordinating and realisation of development activities; initiating
inter-municipal, interregional, cross-border and international cooperation in matters of common interest; more efficient usage
of domestic natural resources and goods, as well as foreign ones at the republic, provincial, regional and local level.
Furthermore, the Law on Spatial Plan of the Republic of Serbia 455 2010-2014-2020 determines a long term basis of
organization, setup, usage and protection of the territory of the Republic of Serbia with the aim of coordination of economic
and social development with natural, ecological and cultural potentials and limits.
The Law on Foreign Investments456 establishes guaranteed rights of foreign investors who invest in the economy of
Serbia. The Law promotes conditions for stimulating foreign investment in order to generate efficient development of Serbian
economy, to strengthen its competitiveness, to establish a wider presence of Serbian economic entities in the international
trade, to import new equipment and contemporary technologies, to modernise business and increase export volume, all for
the purpose of achieving economic progress in Serbia.
The general Serbian Market Surveillance framework is regulated by the Law on Market Surveillance457 which is
incorporating relevant provisions of the EC Regulation 765/2008. It establishes a clear distinction and different provisions for
“inspection” and “market surveillance”, provides guidelines and responsibilities for cooperation, information exchange,
implementing, planning and monitoring activities of market surveillance and coordination.
The most relevant pieces of legislation in terms of free movement of goods are the Law on Technical Requirements for
Products and the Assessment of Compliance458 and Law on Standardization459. The former is aimed to be a solid basis
for an efficient and effective transposition of EU technical directives pertaining to the old and new approach, as well as for
national technical regulation in regards to products, which are not included in the legal acts on the EU level. More
specifically, Decision 768/2008 EC, Regulation 765/2008/EC and Regulation 764/2008/EC were taken into consideration
during the process of legal drafting. The Law on Standardization was envisioned as providing the necessary conditions for
an accelerated and effective adoption of EU standards.
The Law on General Product Safety460 was adopted in 2009 so as to incorporate provisions comprised in above all
Directive 87/357/EEC on misleading products and Directive 2001/95/EC on general product safety. It is applicable to all
products under the condition that their safety is not regulated by a specific legal provision or when a specific legal act did not
encompass all the provisions of this Law on the obligations of producers and distributors, of exchange of information and
oversight, or did not include all types and categories of risk.
The Law on Metrology461 and the Law on Accreditation462 which was adopted in compliance with Regulation
765/2008/EC transpose relevant EU regulations in the area and provide the basic horizontal framework in their respective
areas.
The Law on Foreign Exchange Operations463 regulates the movement of capital by endorsing the principle of gradual
liberalisation of capital movement. In this vein, the liberalisation of long-term capital operations ensued, while deposit
operations of residents were partially liberalized, whereas short-term capital operations were accompanied by limitations.

276
In regard to competition, the Law on Protection of Competition464 prescribes notable changes in regards to the
independence and organization of the Commission for Protection of Competition (e.g. appointment of the President and
Council of the Commission.
In terms of state aid, the Law on State Aid Control465 reflects compliance with EU secondary legislation such as
Regulation 70/2001/EC and Regulation 800/2008/EC declaring certain categories of aid compatible with the common market
in application of Articles 107 and 108 of the TFEU.
The Law on Consumer Protection466 transposes a dozen EU directives. It regulates consumer rights, conditions and
means of their protection, rights and obligations of consumer organisations and associations, out-of-court consumer dispute
settlement, and rights and obligations of state authorities in terms of consumer protection.
The Law on Trade467 regulates conditions and manner for conduct and development of trade on the integrated market of
the Republic of Serbia, as well as market protection, protection from unfair market competition, and surveillance. The Law is
in compliance with Directive 98/6/EC of the European Parliament and of the Council of 16 February 1998 on consumer
protection in the indication of the prices of products offered to consumers. Amendment to the Law on Trade468 was adopted
with the aim to further improve business environment and create conditions for more intensive development of trade, to
develop and improve traders business, but also competition between them, all of which affect better position of consumers.
Serbia has adopted several laws relevant to the daily operations of private sector in order to ease their business activities.
The Law Amending the Law on the Republic Administrative Fees revoked the non-tax levies imposed to businesses
and households reduced them and reduced their costs. A total of 138 previously imposed para-fiscal levies and fees (both
republic and local) are revoked, which resulted in simplicity and predictability of the tax system, thus making 30,000
entrepreneurs and small business owners relieved of various levies. The Law Amending the Law on Value Added Tax
enabled SMEs to have the possibility to pay VAT once they have been paid for their goods. Furthermore, the Law
Amending the Law on Local Self-Government Funding revokes the payment of communal tax on business signs and
local communal taxes for small enterprises and limits the amount for others. The Law on the Terms for Settling Financial
Obligations in Commercials Transactions obliges the state and public enterprises to settle their obligations towards
suppliers within 45 days, whereas the private sector is obliged to settle the obligations towards suppliers within 60 days
enabling liquidity and normal business activity.
ENERGY SECTOR
Strategic Framework
Strategy Implementation Programme (Programme) and Energy Balance. The current energy policy in Serbia is
established469 by the Energy sector development strategy for the period 2005-2015470 adopted by the National Assembly.
The Strategy defines key development priorities in the energy sector namely the technological modernization and/or
construction of energy sources/objects, rational use of quality fuels, use of renewable energy sources and new energy
technologies.
Programme for Implementation of the Energy Sector Development Strategy of Serbia 2007 – 2012 expired in 2012
and has not been substituted by a new one which should establish conditions, manner, timeline and measures for Strategy
implementation.
Energy sector development Strategy covering the period until 2025 with projections until 2030 is in the preparation
with the adoption foreseen for 2013 ensuring a smooth transition to a new overarching strategic framework in the sector.
The Energy balance of the Republic of Serbia represents annual energy and/or energy sources needs expressed on a
monthly level to be provided for the reliable, safe and quality supply of the final customer and is to be prepared for every
subsequent year by the end of the current year.
Energy Law also envisages elaboration of national action plans that specify the development objectives and measures for
their implementation.
A simplified version of the National renewable energy Action Plan until 2020 (NREAP) has been prepared. NREAP sets
national goals for the share of energy from renewable energy sources in the sectors of transport, electricity and heating and
cooling until 2020.The adoption of this document is planned within the first half of 2013.
469 As stipulated by the energy law
277
Second Energy Efficiency Action Plan of Republic of Serbia for the period 2013-2015 is in preparation.
The Second National Communication under the United Nations Framework Convention on Climate Change
(UNFCCC) is also in preparation.
The Strategy of the mineral resources management until 2030 defines a dynamic development plan relating to all
aspects of the mining industry until 2030 by setting the long term objectives for mining, geological research of energy,
metallic, non-metallic and mineral raw materials, subterranean waters and geothermal sources.
National Sustainable Development Strategy is an overarching multi-sector document. Key sustainable development
objectives in the energy sector, foreseen by the Strategy are: wider use of renewable energy sources, rational use of natural
resources, implementation of the international conventions, protocols and treaties regarding the climate change, air
protection, harmonization of national legislative with EU regulations.
National Programme for Environmental Protection lays down a set of objectives for Government policy over 2010-2019
at three levels: short-term (2010-2014), continuous (over the whole period of the National Programme), and medium-term
(applying to the 2015-2019 period only). The NPEP covers all aspects of environmental policy and planning, financing and
economic instruments, institutional capacity building, including policy in the areas of energy waste management, primarily by
waste water treatment and air quality.
Other important policy and strategic documents relevant for the energy sector are classified as sector documents of
different sectors and described in relevant sections of the NAD.
Legal Framework
Legislative framework for the energy sector consists of the cross-sector legislation, energy sector legislation and other
sectors’ legislation. Some of main legal documents covering the scope of this sector are:
The Law on Energy471 regulates the following issues: energy policy objectives and the method of its implementation;
conditions for reliable, secure and quality energy and energy-generating products supply; conditions for safe supply to the
customers; conditions for constructing new energy facilities; conditions and manner of performing energy related activities;
manner of organizing and functioning of the electricity and natural gas market; rights and obligations of market participants;
protection of energy customers; manner, conditions and incentives for energy production from renewable energy sources
and combined generation of electricity and heat; rights and duties of governmental bodies and the Energy Agency of the
Republic of Serbia in enforcing this law and monitoring the implementation hereof.
The Law on efficient use of energy472 regulates: conditions and manner for efficient energy use in production,
transmission, distribution and end energy use; energy efficiency policy; energy management system; labelling of energy
efficiency level of products for energy end use; minimal requirements for energy efficiency in production, transmission and
distribution of electricity and heat as well as in gas supply; financial, incentive and other measures in this area as well as
other issues of relevance for the rights and obligations of natural and legal person related to energy efficiency.
The Law on Integrated Pollution Prevention and Control473 also calls for reduced use of energy, sustainable use of
energy and, among others, for reuse of energy.
ENVIRONMENT AND CLIMATE CHANGE SECTOR
Strategic Framework
Current environment policy in Serbia is defined through:
The National Programme for Environmental Protection (NPEP) 2010-2019474, defines strategic objectives for
environment protection policy as well as specific objectives. The NPEP covers all aspects of environmental policy and
planning, financing and economic instruments, institutional capacity-building, education, legislation, monitoring,
enforcement, and policy in the areas of water quality, waste management, chemicals and risk management, air quality and
climate change, nature protection, biodiversity and forests, fisheries, soil protection, noise, radiation, industry, energy,
agriculture, forestry and hunting.
The Environmental Approximation Strategy (EAS) 2011-2019475 covers legislative, institutional and financial components
and is the key document for the harmonization of legislation in the field of environmental protection in Serbia. The objectives
of the EAS are to address the complexity of the challenge to apply EU environmental legislation in Serbia and to provide a
sound basis for the accession negotiations on Chapter 27. It aims to address the challenges approximation will pose to
471 Official Gazette of the Republic of Serbia, No. 57/11, 80/11- corr. 93/12 and 124/12
474
475
278
legislation (including the response to deficiencies in the current legislative process in Serbia), the extent of change that will
be required in organizing and operating institutions responsible for environmental protection, and the approach to closing the
economic gap between business as usual and full compliance with the acquis.
Waste Management Strategy (2010-2019)476 complements the National Environmental Protection Programme and defines
policy objectives in waste sector up to 2014. The Strategy proposes the establishment of 12 regional waste management
centres (out of 26) in Serbia by the end of 2013. It also proposes to re-cultivate existing unsanitary landfills, which represent
the greatest risk to the environment, environmental ‘hot spots’ of historical hazardous waste pollution, and to establish a
hazardous waste management system.
National Strategy for Sustainable Use of Natural Resources and Goods in the Republic of Serbia (2012-2021) covers
seven key natural resources (priorities) in Serbia: mineral resources (metallic, non-metallic and fossil fuels); renewable
energy sources; forest resources; biodiversity and geodiversity; water resources; and soil. Key objectives are the following:
ensuring the conditions for sustainable use of resources by proper planning of each resource balance and consumption;
reduction of resources use impact on economy and the environment and establishing of indicators for monitoring.
National Strategy for Biodiversity (2011-2018) describes the state of biological diversity, provides an analysis of direct
and indirect factors endangering biodiversity and suggests strategic areas for intervention, with defined objectives and
activities for each area. The Strategy is accompanied by an Action Plan adopted for a period of seven years (2011 - 2018)
with activities defined for implementation in the short term (1-3 years), medium term (3-5 years) and continuous (5-7 years).
National Sustainable Development Strategy (2008-2017)477 is a multi-sector strategy. The main developments in
environment priorities for Serbia are defined in this strategy. These priorities are linked to the EU integration process by the
transposition of EU legislation and the implementation of the Stabilization and Association Agreement (SAA).
Strategy for the Implementation of the Aarhus Convention (2012-2014) aims to provide a process for feasible, effective,
step-by-step implementation of Aarhus Convention requirements, but is also geared to accommodate conditions specific to
the Republic of Serbia. The implementation plan includes follow-up actions to support EU-related requirements.
National Cleaner Production Strategy (2009-2015) was adopted to introduce cleaner production and environmental
management systems in industrial facilities.
The Second National Communication under the United Nations Framework Convention on Climate Change
(UNFCCC) is in preparation and supported by the Global Environment Facility with UNDP as implementing agency. This
document should include the preparation of the GHG Inventory for the period until 2009 (2010), as well as projections and a
mitigation plan until 2020. It should include long-term framework mitigation strategy following the EU Roadmap 2050 as a
guideline for development. The adaptation programme as the part of the Second National Communication will take into
consideration the EU White paper.
National Spatial Plan until 2021478 is a multi-sector strategy which determines the following: long-term foundations for
the organisation, use and regulation of the space of the Republic of Serbia; urbanization development directions and basic
criteria for the regulation of settlements; planning principles and criteria for the use of natural resources and environmental
protection; conditions for the protection and use of areas of special importance. The Plan is in compliance with the National
Programme for Environmental Protection and the National Waste Management Strategy.
Legal framework
The legal framework in Serbia is defined by a set of laws and corresponding secondary legislation. Most important is the
Law on Environmental Protection479 which sets out a comprehensive national system for environmental protection
covering action plans, conditions and instruments for sustainable management and the preservation of natural balances,
diversity and quality of natural values and conditions for survival of living beings, prevention, control, reduction and
remediation of all forms of pollution, promotion and utilization of products, processes, technologies and practices which have
less harmful effects on the environment, the application of special codes of conduct in waste management from its
generation point to its disposal.
In terms of horizontal legislation in place are two major laws. The Law on Strategic Environmental Impact
Assessment480 prescribes the relations between environmental protection policy and other sector policies in the field of
physical and city planning or land utilization, agriculture, forestry, fisheries, hunting, energy industry, transport, waste
management, water management, telecommunications, tourism, natural habitat and wild flora and fauna preservation,
establishing a framework for the adoption of future development projects. The Law on Environmental Impact
476
477
279
Assessment481 prescribes the procedure with regard to the assessment of potentially significant environmental impacts of
certain projects carried out by public or private enterprises. According to this law the assessment of impacts must be carried
out for projects in the fields of: industry, mining, power industry, traffic, tourism, agriculture, forestry, water management,
waste management and general public services, as well as for projects planned for sites within protected natural areas or
the protected surroundings of cultural landscapes.
As regards air quality, the Law Amending the Law on Air Protection482 was adopted in January 2013 and sets the
framework for air protection measures. The Law stipulates the adoption of the Regulation on Emission Limit Values from
combustion plants, which will enable better transposition of the Large Combustion Plants Directive. The Law on
Ratification of the Protocol on Heavy Metals to the Convention on Long-range Transboundary Air Pollution483 and
the Law on Ratification of the Protocol on Persistent Organic Pollutants to the Convention on Long-range
Transboundary Air Pollution484 was adopted in March 2012.
In waste management, the Law on Waste Management485 covers the classification of waste, waste management
planning, stakeholders, obligations and liability with regard to waste management, special waste streams management,
requirements and procedures for the issuance of permits, trans-boundary waste movement, reporting, waste management
financing, supervision and other relevant aspects of waste management.
Water management is regulated by the amended Law on Water486 which sets conditions for water management to ensure
that: good /acceptable water quality standards are achieved and maintained; that water demands are met; there is
compliance with international practices and trends in water use; water protection, and flood protection and that the ‘user
pays’ and ‘polluter pays’ principles are embedded in the collection of funds from all users and all polluters. The implementing
legislation which is in place includes the Amendments to the Regulation on Emission Limit Values in Water and the
Deadlines for their Achievement which was adopted in 2012 487 and which partially transposes the requirements of the Water
Framework Directive (WFD)488 and the Urban Wastewater Directive489. The Regulation on limit values of pollutants in
surface waters, ground waters and sediments and the deadlines for reaching the values adopted in May 2012490 partially
transposes the following directives: WFD, Groundwater Directive491, Water Quality Standards Directive492, Fish directive493).
The Regulation on Annual Water Monitoring Program adopted in 2012 494 partially transposes a number of EU Directives
dealing with water quality495.
In Industrial Pollution Control and Risk Management, the Law on Integrated Pollution Prevention and Control496 sets
forth conditions and procedures for the issuance of integrated operating permits for plants and activities which may have a
negative impact on human health, environment or tangible assets, type of activities and plants, supervision and other
relevant aspects of environmental pollution prevention or control.
Nature protection is regulated by Law on Nature Protection497, which regulates the protection and preservation of nature
and its biological, geological and landscape diversity as part of the environment. Management of chemicals and biocidal
products is regulated by the Law on Chemicals498 and Law on Biocidal Products These laws regulate placing of
chemicals on the market, i.e. conditions for placing on the market and use of biocidal products and are in accordance with
the Regulation on Registration, Evaluation and Authorisation of Chemicals (REACH), the Regulation on Classification,
Packaging and Labelling of Chemicals (CLP), the Regulation on Detergents, i.e. the Directive on Biocidal Products. These
laws provide a legal basis for adoption a series of by-laws which ensure harmonisation with other horizontal EU legislation in
the area of chemicals and biocidal products. However, as the EU has amended the legal framework regulating the biocidal
products by adopting the Regulation on Biocidal Products 528/2012, it is necessary that our legislation in the area of biocidal
products be aligned with the requirements from the new regulation. Furthermore, the adopted by-laws are constantly
amended as part of the process of harmonising with the changes in the relevant EU legislation.
486
487
Official Gazette of the Republic of Serbia, No. 67/2011 and 48/2012
488 2000/60/EC
489 91/271/EEC
490
Official Gazette of the Republic of Serbia No. 50/12
491 2006/118/EC
492 2008/105/EC
493 2006/44/ЕC
494
495 Directives 2000/60, 2006/118, 2008/105.
496
497
Official Gazette of the Republic of Serbia, No. 36/2009-76, 88/2010-162, 91/2010-133 (corrigendum)
498
280
The Law on Protection against Environmental Noise 499 regulates the area of protection against noise and transposes the
requirements from the Directive on Assessment and Management of Environmental Noise 500. This law requires drawing up
of strategic noise maps and adopting action plans based on the maps.
The Law on Mining and Geological Survey 501 provides the framework for rational use of natural resources. It also
regulates the geological storage of carbon dioxide. Essential articles of the Directive on Geological Storage of Carbon
Dioxide502 were transposed into this law.
TRANSPORT SECTOR
Strategic Framework
The transport policy of Serbia is driven with the aim of economic and social development, following the EU Transport policy
provisions. The strategic framework is defined by the Strategy of development of rail, road, water, air and intermodal
transport in the Republic of Serbia for 2008-2015503. The strategy is promoting principles of safety, inter-modality,
application of new technologies, complementary use of different transport modes and rational use of available capacities
and resources in Serbia. All this should contribute to sustainable development of the transport system and stable institutions.
Strategy envisages implementation of the measures which should lead to the institutional capacity strengthening and
implementation of the infrastructure priority projects. Main Strategy goals which are reflected in the transport policy of the
Republic of Serbia could be summarized as follows:
 Rehabilitation, reconstruction and construction of Pan European Corridors which run through Serbia in order to
reach the standards of the Tran-European Transport Network;
 Efficient usage of comparative advantages of each mode of transport by introduction of fair charge determining and
charging for infrastructure, with the special focus on the intermodal transport;
 Upgrading of quality of services of transport system by better organization of transport operations based on
economical, safe and environment protecting aspects;
 Increase of traffic safety and security;
 Strengthening of the transport market and its gradual deregulation by creating legal and business environment
which would result in better competitiveness among transport modes and within the modes on the transport market.
This includes establishment of regulatory, operational and managing functions in the sphere of transport, gradual
and justified deregulation which should lead to liberalization of the transport market, strengthening the capacities of
local operators’ for domestic and international market competition;
 Decrease of negative impact of transport on the environment, in accordance with principles of sustainable
development;
 Establishment of stable financing mechanism for the transport sector development.
Investments in the Serbian transport infrastructure are considered as a cornerstone for the development of the Serbian
transport system compliant with the EU standards and interoperable with the neighbouring countries.
Therefore, the General Master Plan for Transport (GMPT) (2009-2027) is a comprehensive plan of future investments in
transport infrastructure. GMPT provides overall picture of transport infrastructure in Serbia and rolling out infrastructure
projects necessary for implementation in the period 2009 – 2027, including costs calculation and rating of individual projects
within specific transport modes. The total required costs of public funding have been calculated as EUR 22,183 million for
investments and maintenance. GMPT should serve as a tool for prioritization of investments in transport infrastructure since
includes possibility for updating of macro economical parameters which may affect prioritization.
Having in mind that modernization of the railway infrastructure requires purposeful planning due to technical and
technological features which are impacting costs, the Ministry in charge of transport and JSC Serbian Railways initiated
preparation of the detailed Investment plan in railway infrastructure for the period 2012-2021. This investment plan
should be completed by mid-2013 and it is financed by the European Investment Bank (EIB) through the Western Balkan
Investment Framework (WBIF).
Safety aspect of the transport system is recognized as very important for the transport system development and National
Road safety strategy and action plan for the period 2013-2020 are prepared but not yet adopted.
499
500 2002/49/ЕC
501
502 2009/31/EC
281
Legal Framework
Strategy principles for the Serbian transport system development are reflected in the legal framework as well. Concerning
the legal framework, some progresses were noticed in the last two years in the area of transport policy, particularly in road,
inland waterways and air transport. Namely, in Road transport, the draft Law on carriage of goods in road traffic, fully
harmonised with the EU requirements, has been positively assessed by the EC but it is not adopted yet as well as the Law
on carriage of passenger in road traffic. The digital tachograph system has been introduced and in January 2012 and the
Road Traffic Safety Agency started issuing memory cards for digital tachographs. Parallel to this, the Law on working time of
professional drivers and tachographs is under drafting procedure. The Railway Law and the Railway Safety and
Interoperability law received positive opinion from the EC (DG Move) and the Railway Law was recently approved by the
Government, however, they are not yet adopted by the Parliament. Consequently, a specific attention would have to be paid
to a fair market access for all operators; further efforts need to be made in separation of infrastructure manager and railway
operations, as well as the strengthening of the regulatory functions of the railway regulatory body. The Intermodal
transportation does not have specific legal framework adopted.
Inland waterway transport is mainly regulated by the Law on navigation and ports, which fixes conditions for using Serbian
waterways and entering the ports. This Law was amended in 2012 504 for taking into account the closing of Plovput and the
transfer of its missions to the Ministry in charge of transport. In that context, method and cost of a special examination for
navigation safety inspectors and on the format of the official navigation safety inspector’s identity card were adopted in
February 2012. A Rulebook on the qualification and conditions for obtaining certificate for competence of on-board crew
member of merchant inland waterway vessels was adopted in July 2012. The Law on maritime navigation505 and the Law on
vessels nationality and registration506 describe requirements for ships cruising under Serbian pavilion.
In Civil Aviation, the Law on Obligations and the Basics of Property Relations in Air Transport is aiming to align national
provisions with the EU legislation on passenger’s rights and the Law on amendments of the air transport law507 were
adopted by the Parliament. Further national provisions intending the alignment with the Single European Sky legislation has
been achieved, in particular concerning the provision of air navigation services (ANS), the methodology for determining and
calculating the ANS charges, the regulation of air space management, and the interoperability of the ATM systems.
HUMAN RESOURCES AND SOCIAL DEVELOPMENT SECTOR
Strategic Framework
Serbia started to cooperate in the coordination of EU employment policies and developed the National Employment
Strategy 2011-2020 that indicates how Serbia will proceed towards achievement of the common goals of the EU. Priorities
in the strategy promote employment in less developed regions and development of regional and local employment policies;
human capital and greater social inclusion; improvement of institutions and labour market development; and a reduction of
labour market dualities. The Strategy for Development of Education in Serbia by 2020 was adopted in 2012 and is
closely related to the previously adopted Vocational Education Development Strategy in the Republic of Serbia508. The
strategy defines four main objectives for long-term development of the education system in Serbia: 1. Improvement of the
education process and outcomes up to the maximally achievable level - level that is result of overall scientific knowledge and
educational practice; 2. Greater involvement of Serbian citizens at all levels of education, from preschool to life-long
learning; 3. Achieving and sustainability of the education relevance, and the structure of the education system which is in
accordance with the individual development needs; economic, cultural, research, educational, public, administrative and the
other systems; 4. Improved efficiency of the use of educational resources, i.e. finishing of education in planned time frame,
with the minimal prolongation and the drop-out decrease.
The sub-sector of social policy encompasses labour, social dialogue, social protection, inclusion and protection of vulnerable
groups (including women with multiple dimensions of vulnerability), poverty reduction, youth and it is also related to
protection of economic and social rights. Current activities are geared towards the improvement and update of the now out-
dated strategic framework. The development of a new strategy for Social Welfare Development Strategy for the period 2013-
2020 is planned for the second half of 2013. The strategy will focus on children's rights, support for families with children,
protection of and support to the elderly, further deinstitutionalization and development of foster care. Preparation of a
document for the improvement of social inclusion and poverty reduction is also planned. Other under-way strategic
documents are: development of the Action plan for improvement of Social dialogue, a New Strategy for Safety and Health at
Work 2013-2017 and a National Youth Strategy for the period 2014-2024.
Other relevant SD and HR sector policies are: The National Strategy for Improved Status of Women and Gender Equality
Promotion (2009-2015);The National Strategy for Prevention and Combating of Violence Against Women (2011);The

508 Official Gazette of the Republic of Serbia, no. 1/07
282
National Strategy for Resolving the Problems of Refugees and Internally Displaced Persons (2011-2014); The Strategy for
Improving the Position of People with Disabilities (2007-2015);The Strategy for Career Guidance and Counselling (2010-
2014);Youth strategy (until 2014);The National Strategy for Protection of Children and Prevention of Violence (2008-
2015);The Strategy for Tobacco Control (2010-2015);The Strategy on Public Health (2009-2015); The Strategy for the
Prevention and Control of Non-Communicable Diseases (2009-2016);The Strategy for the Development and Health of Youth
(2006-2014);The Strategy for Continuous Improvement of the Quality of Health Care and Patients’ Safety (2009-2015); The
Strategy for Securing Sufficient Blood Supply (2009-2015);The National Mental Health Strategy (2007-2014);The Strategy
for the Fight Against HIV/AIDS (2010-2015); The National Strategy on Ageing (2006-2015)
Legal framework
The Labour Law509 ensures working conditions corresponding to EU standards, thus ensuring continuity of labour legislation
reforms. The Law on Employment and Unemployment Insurance510 is the umbrella normative framework regulating the
employment policy in Serbia. The Law on Health and Safety at Work511 contains basic provisions and principles on the
introduction of measures to encourage improvements in the safety and health of workers at work. The Law lays down
employees’ and employers’ respective rights, obligations and responsibilities regarding measures the application of which
shall ensure safe and healthy working conditions at the workplace. A law amending Law on health and safety at Work is
supposed to be due by December 2013. By the adoption of the Law on Vocational Rehabilitation and Employment of
Persons with Disability512 (in 2009), with accompanying by-laws, the legal framework is created for as complete as possible
labour market integration and activation of PWD, simultaneously with the regulation of the employment and vocational
rehabilitation. The compulsory pension and disability insurance in the Republic of Serbia is regulated by the Law on Pension
and Disability Insurance513, which entered into force and is applicable of 10 April 2003.The matters of contributors, pension
calculation, compulsory pension and disability contribution payment and collection control, are all regulated by the Law on
Compulsory Social Insurance Contributions514. The Law on Voluntary Pension Funds and Pension Plans515 governs the area
of voluntary pension funds and pension plans. In this area, the following by-laws are in force, which fall under the
competence of the Ministry in charge of labour, employment and social policy. The Law on the Prohibition of
Discrimination516 regulates general prohibition, the forms and cases of discrimination, as well as the methods of protection
against discrimination (Article 1) and establishes the Commissioner for the Protection of Equality, as an independent state
organ, independent when it comes to performing the tasks prescribed by this Law. Law on Professional Rehabilitation and
Employment of Persons with Disabilities517 protects and promotes the employment rights and envisions the proactive policy
measures for the employment of people with disabilities.
The Law on the Foundations of Education and Upbringing518 was adopted in 2009 with the aim to improve the quality of
education in Serbia, and to make it efficient and accessible to all. This law governs pre-university education. The Law
establishes the Council for Vocational Training and Education of Adults as a body responsible for managing national
qualification development. Apart from this law separate laws on Preschool Education, Primary Education and Secondary
Education exist. Also, there is a Law on Textbooks and other teaching aid. Apart from aforementioned laws, legal framework
in pre-university education consists of numerous by-laws and regulations (more than 60). Ministry is currently in process of
preparing new law on Primary and Secondary education as well as Law on adult education. High education is governed by
Law on High Education519. The law was amended in 2012 and one of adopted changes relate to the remits of National High
Education Council to propose National qualification framework for high education.
The Law on Social Welfare520 (2011) seeks to provide better protection to the poorest citizens through more efficient
financial support, the promotion of active inclusion and the effective decentralisation of services delivery. The Law promotes
service delivery pluralism and quality assurance through national minimum standards for social services and supervisory
support. It also creates a regulatory framework based on the licensing of professionals and service providers and inspection
mechanisms.
509 Official Gazette of RS, 24/05, 61/05 and 54/09

510
Official Gazette of RS, 36/09 and 88/10
511 Official Gazette of RS, 101/05
512
Official Gazette of RS, 36/09 and 32/13
513 Official Gazette of RS, 34/03, 64/04, 84/04, 85/05, 101/05, 63/06, 5/09, 107/09, 101/10 and 93/12),
514 Official Gazette of RS, 84/04, 61/05, 62/06, 5/09, 52/11 and 101/11
515 Official Gazette of RS, 85/05 and 31/11
516 Official Gazette of RS, 22/09
518 Official Gazette of the Republic of Serbia, No.72/2009 and 52/2011
519 Official Gazette of the Republic of Serbia, No. 76/2005, 100/2007, 97/2008, 44/2010, and 93/2012
520 Official Gazette of the Republic of Serbia, No.
283
The Law on Health Care521 and the Law on Public Health522 set out the legislative framework in support of a health policy
that aims to continuously improve public health and optimize the network of health institutions so as to provide for quality
healthcare that is accessible to all.
AGRICULTURE AND RURAL DEVELOPMENT SECTOR
Strategic Framework
The Agricultural Strategy for Serbia (2005)523 commits the country to the process of EU accession and underlines that
Serbia must prepare for, and adopt, the support systems of the CAP. Other goals of Serbian agricultural policy are: (i) to
increase the wealth of the nation through an efficient agricultural sector, producing products that are internationally
competitive in terms of quality and price; (ii) to ensure that the food provided to Serbian consumers meets acceptable
standards of quality and safety; (iii) to prepare Serbia's agricultural trade and support policies for accession to the World
Trade Organisation (WTO); (iv) to secure support to the living standards of people depending on agriculture as major source
of income, but who are unable to keep up with economic reforms; (v) to provide support to sustainable rural growth; (vi) to
protect the environment from adverse effects of agricultural production. The strategy identifies three strategic objectives:
improving food safety, veterinary and phyto-sanitary control; aligning with the standards required by the EU acquis; and
encouraging sustainable development of the rural economy and rural areas through diversification.
The National Agricultural Programme of the Republic of Serbia 2010-2013 (2010) 524and The National Rural
Development Program for 2011-13(2011)525 are documents through which national agricultural strategy is implemented.
They set strategic goals and specific objectives for the sector. Their focus is on improving the competitiveness of the
agricultural, forestry and food sectors through restructuring, development of markets and market mechanisms, and
improving rural development and environmental protection.
The Serbia Agriculture and Rural Development Strategy 2014-2024 is under development and will be implemented
through The National Agricultural and Rural Development Programme of the Republic of Serbia 2014-2020.
The National Action Plan for the Development of Organic Farming (2010)has the overall aim of increasing the amount
of land in certified organic production or in conversion to organic production so that it covers 50,000 ha by 2014 (from a base
level of 596 ha in 2009). Other key areas of activity include plant health, seed and plant materials, plant protection products,
and veterinary policy, which are only partially harmonized with EU legislation and need further laws and by-laws to be
adopted. The National Action Plan was revised in November 2011 and the final draft of the National Action Plan for Organic
Production Development 2012 – 2016 is completed and will be submitted for adoption which is expected to take place during
2013.
The Forestry Development Strategy of the Republic of Serbia (2006)526 has the overall strategic aim of preserving and
expanding forests and developing forestry as an economic activity. Key aims include supporting the economic and social
functions of forests whilst preserving their ecological features; institution building and support for management to enable
sustainable exploitation of forest resources.
The Biodiversity Strategy of the Republic of Serbia for the period 2011-2018 (2011)527 recognises the linkages between
biodiversity and agriculture. The strategy identifies specific threats and pressures on biodiversity from the agriculture and
forestry sectors and proposes concrete actions for their mitigation.
The National Strategy for Sustainable Use of Natural Resources and Goods in the Republic of Serbia (2012-2021)528
defines the following objectives: ensuring the conditions for sustainable use of resources by proper planning of each
resource balance and consumption; reduction of resource-use impacts on the economy and the environment; and
establishing monitoring indicators.
The Strategy for Regional Development (2007-2012) (Official Gazette of the Republic of Serbia, No. 55/05 and 71/05),
which addressed the specific problems of rural areas and obstacles to their development is now outdated; New National
plan of regional development from 2014 until 2020 is under development and should be in Serbian parliament by the end
of the year. The plan will be based on an entirely different concept of regional policy in relation to the past-not the concept of
development assistance, but to improve the potential of the region themselves. The new concept is aimed at solving two key
problems, such as unemployment and the huge regional differences that now exist. The aim is to stop the migration,
promote new prospects and ensure economic development in all regions. The new concept is compliant with the principles
of the EU, which is the regional development by 2020 placed in the foreground.
521Official Gazette of the Republic of Serbia” No. 107/05

522Official Gazette of the Republic of Serbia” No. 72/09 and 107/05
528Official Gazette of the Republic of Serbia, No 33/12.
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Legal framework
Since 2009 Serbia has adopted 37 new primary laws and 126 by-laws in order to harmonise with the EU acquis, addressing
implementation requirements for the following sectors and sub-sectors: agriculture, food safety, veterinary and phyto-
sanitary protection, water, forestry and rural development.. The current legal framework is made up of the following main
laws:
The Law on Incentives for Agriculture Production and Rural Development529sets the minimum guaranteed annual
amounts for incentives in these areas. The law identifies three groups of government incentives: direct payments, rural
development payments and specific incentives. The Law also dictates that the agriculture budget should not be less than 5
per cent of Serbia’s total budget. In February, the Serbian Government adopted a ‘Rulebook on Payment of Agriculture
Subsides’ which specifies the exact amounts to be paid in 2013.
The Law on Agriculture and Rural Development530specifies: the goals of agricultural policy and how to achieve them; the
types of agricultural subsidies; the Farm Register; the establishment and functioning of the Directorate for Agrarian
Payments.
The Law on Food Safety531 lays down general conditions for the: safety of food and feed; duties and responsibilities of
food and feed business operators; rapid alert system; emergency measures and crisis management; food and feed hygiene
and quality. The Law on Public Warehouses for Agricultural Products532enables implementation of the warehouse
receipts system as an alternative solution for commodity producers, processors and traders to access short-term financing
for operations ;to take advantage of price fluctuations; and to secure the storage of their produce; The Law on Animal
Welfare533regulates responsibilities of legal and natural persons and entrepreneurs in terms of animal welfare, specifically
for: the protection of animals from torture and mistreatment; the care for animal health and life; the treatment of animals
during keeping, raising, circulation, transport, slaughtering and conducting experiments. In addition, the Law can facilitate
exports of Serbian animals, and products of animal origin, in particular to the EU, since once it is implemented it will ensure
that all requirements in terms of keeping and transportation of animals are fulfilled; The Law on Plant Health534governs the
protection and improvement of plant health; specifically it describes: (i) measures for the protection, detection, prevention of
spreading, control and eradication of harmful organisms; (ii) phytosanitary controls and requirements for production,
processing, imports, storage and trade in plants, plant products; (iii) requirements for prescribed facilities, as well as
conditions for carrying out activities in the area of protection of plant health. The Law also envisages establishment of the
national phytosanitary reference laboratory, and introduces controls based on the assessment of risk; The Law on Organic
Production535describes in detail the organic production of agricultural and other products; organic production aims and
principles; organic production methods; control and certification in organic production; processing, labelling, transportation,
marketing, imports and exports of organic products; supervision of the performance of delegated tasks; and other matters
relevant to organic production; The Law on Genetically Modified Organisms536(GMOs) regulates basic conditions for the
use of GMOs in closed systems (laboratory work, greenhouses) and their deliberate release into the environment
(experimentally work in the field, and commercial growing). The Law entirely prohibits the commercial growing of live
modified organisms, or placing into circulation of live modified organisms and products obtained from GMOs. This practice is
very strict compared to the practices imposed in some countries, in particular, USA and is not in conformity with the EU
acquis. The law does not deal with trade, circulation, transportation, labelling and/or traceability of the GMO for commercial
purposes. The Law on Agricultural Land (Official Gazette of RS, No. 62/06 and 41/09) regulates the planning, protection,
organization (measures which implemented planning documents through the process of land consolidation and land
management in order to improve the natural and ecological conditions on agricultural land), and the use of agricultural land;
monitor the implementation of this law and other issues of importance for the protection, development and use of agricultural
land as an asset of general interest. Law regulated establishment of Directorate of Agricultural Land, as the administrative
body within the ministry responsible for agriculture. The Act stipulates that the owner of land cannot be foreign individuals or
legal entity as well as the procedure for granting the lease of agricultural land owned by the state.
CULTURE THEMATIC AREA
Strategic Framework
The long awaited Culture Development Strategy 2013-2023 is scheduled for adoption in 2013. Apart from giving an
analysis of the current state, the new strategy is expected to set strategic directions, priorities and objectives regarding the
529Official Gazette of the Republic of Serbia, No 10/13

531Official Gazette of the Republic of Serbia, No41/09; 93/12
532Official Gazette of the Republic of Serbia, No41/09
285
cultural heritage protection, promotion of cultural creativity and production, work of cultural institutions, cross-sector
cooperation. The Strategy will be accompanied by an action plan containing targets and indicators for the implementation.
EU Strategy for the Danube region aims at boosting the development of the Danube Region and was endorsed in 2011.
The Strategy articulates four main pillars of joint actions, out of which the third refers to Building prosperity in the Danube
region. Several action are proposed relating to culture: to build on cultural diversity as strength of the Danube Region; to
enhance cooperation and contacts between people of different origins, to encourage creativity, and provide a driving force
for cultural innovation and economic development, based on heritage, traditions and tourism; to promote cultural exchange
and exchange in the arts; to collect existing data on cultural activities and establishing a comprehensive data base giving an
overview of cultural activities in the Danube Region.
Legal Framework
The legal framework relating to culture is set by the Law on Culture537. According to this Law, the Republic of Serbia takes
care of achieving common interest in culture and of implementation of culture policy as a set of objectives and measures for
promotion of culture development based on the principles determined by the Law, including the principle of respecting
cultural and democratic values of the European and national tradition and diversity of cultural expression. Concerning the
newly adopted Law on Public Procurement538 employees engaged in culture and organizations found it highly unfavourable
to serve the needs of cultural organizations. They launched an initiative to exempt the field of culture from its full appliance.
Other important laws relevant for culture are: Law on Common Interest Activities within Culture539, Law on Cultural
Property540, Law on Self-Employment in Cultural or Other Activities within Culture Sector 541, Law on Publishing542, Law on
Legacies and Foundations543, Law on Library and Information Activities544, Law on Old and Rare Librarian Materials545, Law
on Cinematography546.
MEDIA THEMATIC AREA
Strategic Framework
Strategy for the Development of the Public Information until 2016 (Media Strategy) was adopted by the Government in
2011547. The purpose of the strategy is to define key directions of the public information system development in Serbia as a
whole and its constituent parts in a way to secure the freedom of media and media market as key players in the process of
further strengthening the democratic relations. Improving the public information system entails the harmonization of the legal
framework and practice with the international and European regulatory framework and strengthening the capacities of all
actors in this area to act in line with the public interest and welfare of citizens and all social groups. The Strategy defines the
public interest, the role of the Government in the public information system, ownership and transparency of public media
ownership, as well as media concentration. The Strategy also defines the role of printed media and newspaper agencies,
conditions for further development of electronic media and new technologic platforms, as well as the position of the public
service within the public information system.
Strategy of Electronic Communications Development until 2020 was adopted by the Government in 2010548. The
Strategy sets the main directions and objectives for the electronic communications development in Serbia, defines measures
that enable the use of new ICT technologies, access to the electronic communications infrastructure and also those to
broaden the scope of services to residential and business users thereby contributing to the increase of Serbia’s
competitiveness. Priorities focus upon the efficient spectre management, further development of the broadband access,
switchover to digital broadcasting, planning the best use of the digital dividend and introduction of new multi-media services.
This strategic document is justifiably rather technical in its approach. For the area of media of particular interest is the
switchover to digital broadcasting.
Strategy for Development of the Information Society in Serbia until 2020 549 together with the Strategy of Electronic
Communications Development until 2020550 represents the Digital Agenda for the Republic of Serbia. The strategy
identifies priorities in six key areas: electronic communications; e-government, e-health and e-justice; ICT in education,

541 Official Gazette of the Republic of Serbia, No 39/93, 42/98
542 Official Gazette of the Republic of Serbia, No 37/91, 53/93, 67/93, 48/94, 135/2004, 101/2005
546 Official Gazette of the Republic of Serbia, No 99/2011 and 2/2012
286
science and culture; e-commerce; business ICT sector; and information security. Of special interest is the switchover from
analogue to digital broadcasting in Serbia which should enable citizens to receive better quality of sound and picture, more
radio and TV programmes, new services for persons with disabilities and elderly citizens, mobile programme receiving as
well as convergence of services.
The present Broadcasting development strategy551 expires in 2013 and is planned to be substituted by a new one
covering the period 2013-2018 (to be prepared by the Republican Broadcasting Agency-RBA).
Legal Framework
The current legal framework in the field of media is defined by the Law on Public Information552 which is in line with the
European Convention on Human Rights and Fundamental Freedoms, the International Convention on Civil and Political
Rights and Recommendations of the Council of Europe in relation to the freedom of expression and information. It defines
the right to public information as a right to freedom of expression and regulates rights and obligations of actors in the
process of public information. The Law guarantees the right to establishment and freedom of public media. The Law on
Broadcasting553 regulates, in accordance with international conventions and standards, conditions and manner of
broadcasting activities. The Law also determines conditions and procedures for licensing broadcasting of radio and
television programs, as well as other issues of significance to the field of broadcasting. Apart from those, the subject of
public information is regulated by a number of other laws such as: Law on Local Self-Government554, Law on the Capital
City555, Law on national Councils of National Minorities 556, Law on Advertisement557, Law on privatisation558, Law on State
Aid Control559
CIVIL SOCIETY THEMATIC AREA
Strategic Framework
Although there is no specific strategy for this area, numerous national sector strategies recognise the importance of civil
society and its active role in achieving set objectives. The Office for Cooperation with Civil Society issued a Strategic
Framework for 2011-2014 with several clear targets to be achieved. Operational Plan for the period 2013-2014 contains
objectives for the development of civil society: 1. developing a Strategy to create an environment conducive to the
development of civil society in the Republic of Serbia, and to establish a National Council for the Development of Civil
Society; 2. promoting new financing sources as a prerequisite for the long-term viability of CSOs: promoting institutional
grants, corporate social activities, individual philanthropy, corporate philanthropy and social entrepreneurship, creating
functional mechanisms for philanthropic giving, developing criteria for CSOs to play a public role, making public spending by
local government more transparent, revising the system of CSO financing from gambling and game of chances revenue,
introducing tax incentives etc.; 3. further developing an institutional framework conducive to civil society development, i.e.
creating specific units or tasks in relevant government ministries, considering the possibility of establishing a Civil Society
Development Fund; strengthening mechanisms for cooperation between CSOs and the Serbian National Assembly.
The Office for cooperation with Civil Society will start development of the Strategy for Creation of Enabling Environment for
Development of CSO and adoption is foreseen by the end of 2014.
Furthermore, the European Commission is in the process of designing Guidelines for EU support to civil society in
enlargement countries for the period 2014-2020, with a set of proposed objectives, results and indicators. The Guidelines
tackle the issues of creation of enabling environment for civil society development, capacity building of CSOs and
cooperation between CSOs and Government institutions. This document is to be an integral part of the Country Strategy
Paper for Serbia after its completion, which is to be done through a wide consultative process with the civil society.
Legal framework
The Law on Citizens’ Associations560 was adopted in July 2009. It regulates the establishment and legal status of
associations, their financing, as well as other issues significant for the functioning of associations and for the first time,
regulates the status and operations of foreign associations. The law requires all associations to re-register in line with the
new registration requirements. Under the Law on Associations (Article 38), the Government passed the Regulation on funds
intended to incentivise programmes or matching grants for funding programmes of public interest implemented by

552 Official Gazette of the Republic of Serbia, No. 43/2003, 61/2005, 71/2009, 89/2010 - Decision of the Constitutional Court and 41/2011 – Decision of the
Constitutional Court
553 Official Gazette of the Republic of Serbia, No. 42/2002, 97/2004, 76/2005, 79/2005 – other law, 62/2006, 85/2005 и 41/2009
554 Official Gazette the Republic of Serbia, No. 129/2007
558 Official Gazette of the Republic of Serbia, No. 38/01, 18/03, 45/05, 123/07 – other law, 123/07, 30/10 – other law, 93/12, 119/12
287
associations561 which regulates by the criteria, conditions and methods of allocation of funds from the budget of Republic of
Serbia to associations, which provides for the allocation of funds to be transparent and evens the procedures of awarding
financial support to civil associations and other civil society organisations by government institutions at the republic level, the
provincial budget and at the local self-government unit level. The Government has also adopted the Law on Volunteers562
and Law on Endowments and Foundations563. Another important law is the Social Protection Act564; this law further
decentralises the social welfare system, allowing civil society organisations to compete in the market as social service
providers. Additionally, four secondary legislation acts have been adopted, in the form of rulebooks regulating the conditions
and standards for providing social services and licencing of social workers and organisations providing social services. The
Law on Accountancy is in process of amending in order to simplify financial management for smaller CSOs and foundations
but also introduce non-profit accounting. Significant improvement in the field of participating in law making processes was
achieved with the amendment of the Government’s Rules of Procedures article related to public hearing issue. The Rules of
Procedures now oblige institutions to conduct the public hearing in law-preparing and regulate all important segments of the
process, such as the criteria for obligatory public hearings, reasonable timeframes for duration of public hearing, and
obligatory reporting on conducted public hearings.

288
289
ANNEX 2 - NAD PRIORITIES AND MEASURES
Sector Justice Home Affairs

Priorities (1) Improving judicial system, (2) Improving the protection and (1) Improving the overall security and fight (2) Ensuring integrated border management and
legal certainty and fight against promotion of Human and Minority against crime management of migration flows
corruption rights
Measures 1.1 Further supporting the reform 2.1 Implementing existing strategic 1.1 Improving and implementing strategic and 2.1 Enhancing integrated border management
of the judicial system in line with and legal framework for the protection normative framework for crime fighting and (Implementation of the IBM Strategy)
the EU accession requirements of human and minority rights prevention
1.2 Increasing the efficiency and 2.2 Promoting the culture of tolerance, 1.2 Strengthening the capacities of state 2.2 Improving migrations management
quality of the judicial system in diversity, equality to prevent H&MR authorities to efficiently process cases of mechanisms
accordance with international and violation in employment, education, organised crime, corruption565, money
European standards health and public information laundering, terrorism financing, terrorism, war
crimes and other criminal acts
1.3 Improving anticorruption 1.3 Strengthening the capacities of police,
policy in line with enhanced state authorities, local municipalities,
prevention, prosecution and minorities and civil society for the
processing of corruption cases comprehensive and efficient protection of
human and minority rights, safety and security
of citizens
1.4 Enhancing capacities of state authorities
for the efficient reaction in emergency
situation and effective protection of citizens
Sector Public Administration Reform (PAR)

Priorities (1) Increasing the effectiveness, efficiency and (2) Strengthening strategic planning and coordination of public (3) Improving transparency, efficiency and
transparency of public administration policies accountability in public finance management
Measures 1.1 Reorganising structures and optimising processes 2.1 Improving administrative capacity for effective and efficient 3.1 Improving budget planning and preparation
of public administration at all levels strategic and fiscal planning and their coordination process
1.2 Transferring functions of public administration 2.2 Improving institutional and technical capacity for monitoring and 3.2. Strengthening public revenue management
closer to citizens and businesses within de- forecasting socio-economic developments
concentration /decentralisation process
290
1.3 Improving human resources management and
development system at all levels of public
administration
1.4 Modernising delivery of public administration 3.3 Strengthening public expenditure
services through further improvement of information management and budget execution
and communication technologies at all governance
levels
1.5 Strengthening control mechanisms of the
functioning of public administration and increasing its
transparency
Sector Competitiveness
Priorities (1) Improving the quality of products and services and (2) Improving innovation levels and enhancing quality of public and (3) Improving operating environment for doing
raising levels of productivity private sector R&D business through evidence-based policies and
regulatory simplification
Measures 1.1 Providing of and accessing to finance 2.1 Increasing the quality of the R&D base to pursue economic 3.1 Improving the policy, regulatory and
development institutional frameworks by applying evidence-
based approach to policy making and
administrative and regulatory simplification
1.2 Ensuring access to sustainable modern 2.2 Widening the diversity of support mechanisms for 3.2 Improving administrative capacity with
infrastructure commercialization attention to proper estimation of necessary staff,
other resources, knowledge and skills in the
administration and judiciary
1.3 Ensuring a competitive manufacturing and 3.3 Improving the general requirements and the
production base capacities of companies for complying with the
EU-harmonised legislation
Sector Energy
Priorities (1) Improving policy, institutional and legislative (2) Securing reliable, quality and efficient energy supply (3) Mitigating adverse impact of energy sector to the
framework to ensure a sustainable development chain environment through reduction of pollution, soil remediation
in the energy sector activities and preparatory activities aiming to facilitate future
sustainable energy production
Measures 1.1 Supporting the enforcement of national 2.1 Improving the security of energy supply in electricity 3.1 Decreasing pollution arising from the energy sector
legislation in energy sector and improving transmission and gas transport enabling regional energy affecting the quality of air, water and soil
monitoring and reporting mechanisms for policy market integration and establishment of emergency oil
implementation and law enforcement at central stocks
and local level
291
1.2 Further supporting Serbian energy market to 2.2 Enhancing the use of all renewable energy sources with
enhance its internal and regional competitiveness focus on biomass.
2.3 Increasing energy efficiency in district heating and
energy consumption sector, with a focus on public and
residential building sectors
Sector Environmental Protection

Priorities (1) Creating and strengthening policy, regulatory, (2) Supporting climate change adaptation, mitigation (3) Ensuring environmental sustainability by sound
financing and monitoring mechanisms for ensuring and risk prevention management of natural resources and reduction of
sustainable development including awareness rising pollution
in regard to environmental issues
Measures 1.1 .Strengthening multiannual planning, legal reforms 2.1 Supporting implementation of Climate change 3.1 Ensuring conservation, sustainable use and more
and institution-building related to environmental strategy and related action plan efficient management of natural resources (nature
protection protection, biodiversity, remediation of contaminated
sites)
1.2 Developing integrated monitoring /information 3.2 Developing and improving waste management
systems on environmental quality, improving reporting systems
and strengthening law enforcement 3.3 Enhancing water management (water supply and
waste water management)
3.4 Improving air quality by reduction in harmful
emissions
Sector Transport
(1) Increasing the effectiveness of the transport (2) Improving the capacity and quality of transport (3) Promote sustainable urban and suburban transport
system by strengthening the policy and infrastructure and services within the Pan-European
institutional framework, management capacities Transport Corridors and the South East Europe Core
and implementation mechanisms Regional Transport Network
Measures 1.1 Strengthen capacity of the administration for 2.1 Modernizing the railway infrastructure 3.1 Improving the efficiency urban and suburban transport and its
strategic/policy planning and transport connectivity with the international and national transport
management corridors, in line with the integrated planning approach for urban
and suburban transport
1.2 Setting-up organizational and structural 2.2 Improving the road transportation taking into account 3.2 Improving development and implementation of adequate
changes of the public enterprises operating in the social features, capacity and safety features urban and suburban traffic policies to decrease congestion and
transport sector aiming at commercialization of its 2.3 Strengthening capacities for efficient inter-modal security
activities in accordance with EU requirements transport aiming to increase the modal split of transport
modes in favour of the least polluting modes (rail,
waterways)
292
2.4 Improving navigation conditions within inland
waterways
Sector Human Resources and Social Development

Priorities (1) Strengthening the establishment of an (2) Build a knowledge-based society (3) Increasing the effectiveness and (4) Improving the health status of the
efficient, stable, and sustainable growth through enhancement of formal and non- equity of social welfare population by strengthening the
trend in employment formal education accessibility, availability, affordability and
efficiency of healthcare services
Measures 1.1 Further promoting the implementation 2.1 Raising the quality and efficiency of 3.1 Improving the relevance and 4.1 Reducing the prevalence of non-
of Active Labour Market Programs, the pre-university general education accessibility of social welfare investments communicable diseases through further
reinforcing their effectiveness, targeting through more efficient and effective use of implementation of prevention
and coverage of services social (pro-poor) budgets and programmes aimed at decreasing the
modernizing the state mechanisms for associated risk factors
providing support to vulnerable population
1.2 Reducing regional disparities through 2.2 Increasing participation and access to 3.2 Advancing the efficiency of social 4.2Strengthening healthcare management
integrated and coordinated support to education protection and social inclusion through capacities and introducing new
generate employment innovations technologies in order to provide better
1.3 Improving labour policy, work 2.3 Establishing functional National conditions for treatment and rehabilitation
environment and working conditions Qualification Framework for lifelong and to improve the efficiency of the
learning healthcare system
1.4 Enhancing youth employability and 2.4 Raising the quality and participation in
facilitating their access to the labour tertiary education
market
Sector Agriculture and Rural Development

Priorities (1) Increasing the competitiveness of (2) Improving the quality of life of the rural (3) Strengthening administrative (4) Improving standards and systems for
agribusiness sector and created population and attractiveness of rural capacities for alignment of agriculture food safety, plant health, animal health
conditions for the sustainable growth of areas (with ref. to IPA RD axes 2 and 3) (CAP Pillar 1) and rural development (IPA and welfare (with ref. to harmonisation
farmers' incomes (with ref. to IPA RD axis RD & CAP Pillar 2) policies and with EU acquis)
1) institutions with EU acquis (with ref. to
building the administrative capacities)
Measures 1.1 Investing in agricultural holdings, 2.1 Creating conditions for improvement 3.1 Improving rural development 4.1 Building standards and capacity for
processing and marketing of agricultural of rural infrastructure analytical, programming, programme veterinary services, animal health and
produce, introducing EU standards for management and implementation welfare
agricultural produce and food capacities
293
1.2 Fostering innovations, uptake of 2.2 Supporting diversification of rural 3.2 Improving administrative capacities for 4.2 Strengthening food safety system
research and knowledge transfer by economy and creation of new jobs agricultural policy and CMO
means of extension service 2.3 Improving the Local Action Groups 4.3 Building phytosanitary and plant
(LEADER-type) and introducing agri- protection product standards and
environmental actions administrative capacity
294
ANNEX 3 – MATRIX OF CROSS-IMPACTS AT PRIORITY LEVEL
ARD COMP NRG ENV JUS HMA HRS PAR TRA
P1 P2 P3 P1 P2 P3 P2 P3 P1 P3 P1 P2 P1 P1 P2 P4 P1 P2
AM1.1 AM1.2
P1
CM1.3 CM2.1
ARD P2
AM3.2 AM2.2
P3
ENVM1.2 HRDM1.2
CM1.3 CM1.2 CM1.2
P1
AM1.1 EM2.1 TM2.1M2.2
CM2.1 CM2.1
COMP P2
AM1.2 HRDM2.4
CM3.2 CM3.2
P3
JM1.1 PM1.3
EM2.1
P2
CM1.2
NRG
EM3.1 EM3.1
P3
ENVM3.1 M3.4 TM2.3
ENV1.2
P1
AM3.2
ENV
ENVM3.1 M3.4 ENVM3.1 M3.4
P3
EM3.1 TM2.3
JM1.1 JM1.3
P1
CM3.2 HM1.2
JUS
JM2.1 M2.2 JM2.2 JM1.2 M2.2
P2
HM1.3 HRDM1.1 HRDM3.2
HM1.2 HM1.3
HMA P1
JM1.3 JM2.1 M2.2
HRDM1.2 HRDM1.1 HRDM1.1
P1
AM2.2 J2.2 PM1.3
HRDM2.4
HRS P2
CM2.1
HRDM3.2
P3
JM2.1 M2.2
PM1.3 PM1.3
PAR P1
CM3.2 HRDM1.1
TM2.1M2.2 TM2.3 TM2.3
TRA P2
CM1.2 EM3.1 ENVM3.1M3.4
295
Project Preparation Facility, Serbia (PPF5)
An EU-funded project, implemented by a consortium led by PM Group
ANNEX 4 – METHODOLOGY FOR INFRASTRUCTURE PROJECT SELECTION AND PRIORITIZATION
I. Introduction
Serbia has high needs for infrastructure development in order to adequately prepare for future EU accession and to meet national
development goals. Given that both domestic and external financial resources for infrastructure are limited, it is important to focus
available funding on strategically significant infrastructure projects i.e. on those projects which will make the largest contributions
(impacts) towards the achievement of national policy objectives for accession and socio-economic development. It should be noted
that the identification of strategically significant projects will be an important element in the successful adoption of the Sector
Approach under IPA2 for the programming period 2014-2020.
Past and on-going donor assistance (including EU assistance) has supported infrastructure project preparation at both central and
local government levels. Notable in this respect are the EU PPF 566 and SIDA567 projects (support to central government institutions),
the EU MISP568 projects (support to municipalities) and the Western Balkans Investment Framework (support and leveraged IFI
investments at the level of the Western Balkans Region). As a consequence a large number of procedures, documents and manuals
have been produced to support infrastructure project development in Serbia. The purpose of this Concept Paper is to build on this
existing base of documentation and to develop a consolidated standard methodology which can be used by the Serbian authorities
for the selection of strategically significant projects. This methodology should generally be applicable to all funding sources
(particularly IPA2) and should address the needs of both central and local governments. The methodology is a basis for a successful
programming process during which the selection of projects for funding is performed and the financial arrangement for funding the
individual projects is identified.
A major problem identified by EUD /SEIO task managers and sector specialists is that often assessments of project maturity do not
take into account the quality of project documentation. Inadequate and incomplete documentation is a significant factor in delaying
the full preparation of infrastructure projects in Serbia, leading to delays in tendering, subsequent slow implementation and poor
absorption of available funding. Given that the costs of preparing major infrastructure projects can be as much as 10% of the total
project value, the selection of projects with inadequate documentation also results in inefficient and ineffective use of technical
assistance budgets. Linked to the problem of poor documentation is the poor capacity of line ministries and public utility companies
to monitor the preparation of infrastructure projects. A system whereby nominated lead ministries which will act as focal points for
coordinating and managing project preparation is currently being established but it is still to be fine-tuned and is not standardised
among the various responsible bodies /ministries.
II. Proposed Methodology
Two main weaknesses have been identified in the existing selection procedures. Firstly, little attention is paid to the strategic
significance of projects i.e. to their potential contribution towards achieving strategic objectives. Secondly, the assessment of project
readiness (maturity) does not take into account the quality (reliability of data) and completeness of planning and technical
documentation. In response to these weaknesses, it is proposed to incorporate additional assessments into the existing project
selection process, namely the Strategic Relevance Assessment and the Gap Assessment of the projects before final selection.
These assessments are shown in Figure 1 (steps 3 and 5). The prioritization criteria are developed separately for the following
sectors and sub-sectors: energy, transport, environment (waste management, water/wastewater), and business infrastructure
(industrial zones, business parks, incubators).
The proposed methodology is a top-down process where potential projects are encouraged either directly from national strategies or
from other sources. The majority of potential projects is currently represented in a variety of formats and contain different levels of
information. In order to establish the minimum level of information needed for the prioritisation process, the projects identified in step
566 PPF=Project Preparation Facility

567 SIDA=Swedish International Development Agency
568 MISP=Municipality Infrastructure Support Programme
296
2 should be summarised in a standardised Project Identification Form (PIF), a template for such a PIF has been developed by the
SEIO and includes few very simple eligibility criteria.
The ‘long list’ of projects is assessed for strategic relevance (step 3) and short list of projects will be done in order to further check
the scope of the project, analyse alternative options and using technical, institutional, financial, environmental criteria as shown in
step 5. A final list of priority projects is produced and depending on their readiness, the projects are classified into four groups. This
sequence of steps should act as a quality filter gradually reducing the long list of potential, thereby ensuring that only the strategic
projects are selected for full preparation. This in turn should decrease the problems encountered during implementation.
Figure 1: Methodology for Infrastructure Project Prioritisation
297
(1) Identify relevant infrastructures projects pipelines – consolidate and

standardize sector-based processes for projects identification (by the
line Ministries) (SLAP, various Strategy/Action plans,)
(2) Identification of a broad list of potential strategic projects through Project - Project Identification Form
Identification Form submitted to SEIO by line Ministries through ISDACON (PIF) – step (2)
data-base
(3) Strategic Relevance Assessment (Filtering step) - Strategic Relevance

Assessment criteria
based on PIF - step (3)
(4) Short list of relevant projects
(5) Gap Assessment Analysis: - Gap Assessment

 Project Identification (objectives, investment type, options identification) Questionnaire/ Gap
 Technical elements (Spatial Planning + technical documentation) Assessment Report
 Institutional readiness (Institutional framework and capacity)
 Financial/Economic elements (expenditure coverage–affordability)
Questionnaire + Project
 Social/Environmental elements (EIA, socio/environmental impacts)
Documentation will provide
data for step (5)
(6) Final list of prioritized projects (to be included in ISDACON)
Project preparation in accordance with the Serbian legal requirements and EU

procedures
298
III. Project Identification
(Step 1)
Identify relevant infrastructures projects pipelines – consolidate and standardize sector-based processes for projects
identification (by the line Ministries) (SLAP, various Strategy/Action plans,)
The first step in the prioritisation process is the identification of a pipeline of infrastructure projects which potentially might be
important in the implementation of sector strategies or national /regional socio-economic development programmes (Figure
1, step 1). This step aims to consolidate and coordinate existing identification procedures currently used by line ministries,
national enterprises, local authorities, regional agencies and SEIO. The two main sources of pipeline projects are expected
to be:
a) Structured project pipelines/mechanisms (SLAP569 and respective line ministry databases),
b) Sector Strategy Action Plans - Master Plans.
The main elements of the project identification step are summarized in Table 1, below.
Table 1: Summary of Project Identification
Scope Key Actors Inputs Method Outputs
Consolidate and - Line Ministries - National Identification of potential Identified infrastructure
coordinate existing Strategies/ Sector projects from existing projects pipeline
- Projects
processes for Strategies and project databases and formulated
proponents570 (Line
project other Policy pipelines according to a
Ministries, National
identification in Documents sector strategic objectives
Enterprises, Public
order to provide a following National Sector
Utility Companies
basis for the Strategies/Action Plans.
(PUCs),
subsequent - SLAP and other
Municipalities, etc.)
formulation and project
selection of databases
strategic
infrastructure
projects
Identify potential
infrastructure
projects
sources/pipelines
569 SLAP will be treated as one of several sources of potential infrastructure projects in the sectors of environment and business development, as SLAP
does not cover the sectors of transport and energy
570
One should differ between the proponents in respect of this methodology from the project proponents in the programming process. Project proponents
in respect of this methodology are all the state bodies involved in realisation of infrastructural projects. Project proponents in respect of programming
process can only include line ministries.
299
IV. Standardise Information for Potential Projects
(Step 2)
Identification of a broad list of potential strategic projects through Project Identification Form (PIF)
submitted to SEIO by line Ministries through ISDACON data-base
Given that projects will be identified from a wide variety of sources, the exist in a number of different formats and are at
different stages of preparation. For example, many (but not all) projects registered on the SLAP database are assessed on 6
separate criteria571 which are individually scored and used to provide an overall assessment of project quality. To
standardise the format, projects identified by line ministries may exist only as short ‘project concept’ containing less
information with little or no prior assessment.
Therefore, project promoters should complete a standard ‘Project Identification Form’ (PIF) which will provide sufficient
information for the following step in the prioritisation process (assessment of strategic relevance) to be carried out. In order
to ensure that this step is carried out consistently and efficiently, it is further proposed that the process of coordinating the
preparation and analysis of PIFs is managed by one institution, namely SEIO through ISDACON database. This includes the
establishment and operation of Sector Working Groups and the management of a database, ISDACON, which can be
readily adapted to host a national infrastructure project pipeline.
A standard PIF template has been developed for the following sectors: environment, transport, energy and business
infrastructure. Regardless of sector, each PIF template will address three sets of basic project information, these are as
follows:
a) General data and information, including information on sector institutional set up and policy/strategy ownership,
b) Eligibility/Consistency with EU policies – IPA priorities/Country Strategy Paper – Overall national strategic
framework – Individual sector strategies,
c) Questions for Strategic Relevance Assessment based on sector Strategic Relevance criteria agreed with line
Ministries, and on whose basis the projects will be assessed in the next step of the prioritisation process (Figure 1,
step 3).
Project data from PIFs will be uploaded to the ISDACON 572 database by the line Ministry. It is proposed that access to the
data base for PIF submission will be constantly open, whilst assessment of PIFs will be done periodically (say every 12
months) by SEIO and that these assessments are systematically reviewed and presented to by the relevant ministries in the
Sector Working Group format. The main elements of this step are summarized in Table 2, below.
Table 2: Main Elements for Establishing a Common Database of Project Information

Scope Key Actors Inputs Method Outputs
Ensure that all potential - SEIO/ISDACON Infrastructure - Acquisition by SEIO of basic National consolidated
infrastructure projects have the for projects data projects PIFs project information through a sector-based
minimum, standardised, base submitted by PIF to be completed by infrastructure projects
information needed for: (i) construction and proponents/li project promoters and/or database, easily
identifying institutional management ne Ministries public institutions responsible accessible for both the
ownership & set-up; (ii) for the project. submission and
- Projects’
eligibility screening; (iii) consultation of PIFs
proponents and - Insertion of completed PIFs
assessing strategic relevance.
Institutional in a national sector – based
Provide easy and user- friendly
owners for PIF data base of infrastructure
access to a comprehensive
completion and projects hosted/managed by
database of infrastructure
submission to ISDACON
project proponents, institutional
SEIO
policy owners and basic project
571 SLAP assessment criteria are: (i) environmental; (ii) financial; (iii) socio-economic; (iv) technical; (v) institutional; (vi) maturity
572 It should be noted that it is not proposed to either combine or merge the SLAP and ISDACON databases. The specified PIF data fields will be completed
for all SLAP-sourced projects regardless of whether they have been previously assessed using the SLAP scoring criteria (as described above).
300
parameters.
V. Assessment of Strategic Relevance and Development
(Step 3) (Step 4)
Strategic Relevance Assessment Short list of relevant projects
The information /data provided in PIFs will be used to assess the strategic relevance of potential projects defined as the
extent to which an individual project will contribute towards achieving overall and sector policy objectives and / or meeting
sector targets as given in the strategic framework. In the case of sectors where there is no adopted national strategy in place
(e.g. the water sector) the analysis of PIF data will be used to assessing overall project impacts using the sector strategic
relevance criteria outlined below.
Specific ‘Strategic Relevance Criteria’ (together with related questions) for scoring the estimated strategic relevance /impact
of proposed projects have been developed. Strategic relevance criteria have been developed separately for each of the
sectors and sub-sectors covered by this methodology. Strategic relevance criteria will follow the main aspects of project
relevance for each of the sectors/subsectors (defined main areas for strategic relevance):
 Transport
1. Demand/supply and origin/destination factors
2. Relation with other transport corridor/routes
3. Traffic safety and security of transport
4. Economy growth potential (export/import), economy systems and sectors affected by the project
 Energy
1. Sustainable Energy Development
2. Enhanced competition
3. Social impact
4. Impact in terms of economy and employment
 Environment: water/wastewater
1. Construction and upgrading of Wastewater treatment facilities and Extension of Wastewater Collection
Systems
2. Construction of water treatment facilities and water supply systems
3. Upgrading of the adequate flood protection levels
 Environment: Municipal waste

1. Integrated waste management
2. Reduction of negative impact of hazardous waste on environment and human health
3. Impact on local development
4. Impact on environment and human population
 Business infrastructure (will be developed for Industrial zones, Technological parks, Tourism infrastructure and
Business incubators)
1. Export Market Demand and Private Sector Demand
2. BRI Outputs and Financial Sustainability
3. Project Partners and Employment Generation.
301
NB: please have in mind that each of these criteria for all the sector/subsector will be assessed by the specific questions
relevant for respective areas.
The assessment of the strategic relevance of the project is performed by SEIO and line ministries in the sector working
group format.
Projects will be assessed within SEIO and the results will be communicated via regular Sector Working Group meetings
(which include SEIO and line Ministries) and shortlisted by sector/sub-sector accordingly to their strategic relevance.
Institutional policy ownership and the institutional set up for project preparation (at the level of policy owner) will also be
identified. In case the necessary structure for project preparation and monitoring does not exist, implementation of
strategically important infrastructure projects will be postponed until the necessary mitigation measures can be undertaken
to address the identified weaknesses (capacity building, training, TA etc.). A necessary precondition for moving to the next
step is that the declared institutional set up should demonstrate sufficient capacities, for project preparation and monitoring
of implementation. The main elements for assessing strategic relevance and developing a short list of projects are given in
Table 3 below.
Shortlists per sector/sub-sector for projects funding will be published by SEIO/ISDACON and shortlisted projects will be the
basis for the next step (Gap Assessment).
Table 3: Main Elements for Assessing Strategic Significance and Short-Listing Projects
Scope Key actors Inputs Method Outputs
1. Assess project Strategic - SEIO Strategic Strategic relevance of 1. Strategic Relevance
Relevance according to sector Relevance each project will be Assessments for
Strategic Relevance Criteria Criteria agreed assessed in relation to potential projects
agreed with line Ministries - Sector with line their compliance,
(and where possible, extracted Working Ministries for consistency and
from National Strategies) Groups each of the coherence with the 2. Short-List of
sector/sub-sector Strategic Relevance strategically relevant
Criteria. Infrastructure
ISDACON data
2. Promote only Strategically Projects according to
base of Strategic
relevant projects with all the established Strategic
Infrastructure
main preconditions for its Relevance Criteria.
Project
implementation
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VI. Gap Assessment
(Step 5) (Step 6)
Gap Assessment Analysis Final list of prioritised projects
Gap assessment is the process of assessing the quality and completeness of the project documentation of relevant projects
with preconditions relevant for implementation (short list projects) and is carried out in the following sequence:
Firstly, proponents of Shortlisted Projects are requested to provide further detailed information by means of specific ‘Gap
Assessment Questionnaires’ (per sector and sub-sector) and providing SEIO with any existing project documentation. Gap
Assessment Questionnaires specific to each of the sectors /sub-sectors have been prepared.
Secondly, the technical assessment process is coordinated by SEIO (TA supported and in close cooperation with experts
from line Ministries, PUCs etc.) who will undertake detailed and complete Gap Analyses of all shortlisted projects by means
of analysis of completed Gap assessment questionnaires and related technical documentation, including:
- Project Identification (objectives, investment type, options identifications);
- Technical maturity (Spatial Planning + technical documentation);
- Institutional readiness (Institutional framework and capacity);
- Financial/Economic maturity (expenditure coverage–affordability);
- Social/Environmental maturity (EIA, socio/environmental impacts).
Thirdly, the Gap Assessment Analysis is presented in a final ‘Gap Assessment Reports’ including outputs and
recommendations for selected projects. On the basis of these Gap Assessment Reports, projects will be divided into 4
groups according to their degree of MATURITY and proposed as being:
a) ready for initiating tendering procedure for works;
b) ready for preparation of missing technical documentation;
c minor gap to be addressed before preparation of technical documentation;
d) substantial gaps to be addressed before preparation.
The main elements of the Gap Assessment step are shown below in Table 4.
Table 4: Main Elements of Gap Assessment
Scope Key actors Inputs Method Outputs
Undertake Gap Assessment - Technical Project’s Gap - Project Gap Assessment Project Gap
Analysis of shortlisted projects Assessment Assessment Questionnaires provided to all Assessment
through specific questionnaires coordinated Questionnaire (to Project proponents that passed Reports, including
(per sector/sub-sector) and by SEIO (TA be completed by step 3 (Figure 1). The Gap recommendations
related project documentation. supported) the project Assessment Questionnaires will for further steps
in close proponents be different for each sector related to each of
Prepare Gap Assessment cooperation (transport, energy, environment specific projects
Reports of shortlisted projects, with line Projects technical and business infrastructure) and
including outputs and Ministries documentation sub-sectors (e.g. water-
recommendations for the - Projects’ wastewater, solid waste, etc.).
preparation phase proponents - Project proponent fills up the Gap Final list of
Assessment Questionnaire and prioritized projects
Rank shortlisted projects for preparation
according to their degree of provides requested information +
project documentation. and
MATURITY and propose them implementation in
for - The questionnaires will lead to
the technical assessment of the four groups.
a) ready for initiating tendering project readiness and will include
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procedure for work; detailed assessment of project’s
technical documentation.
b) ready for preparation of
- The projects will be prioritized for
missing technical
each sector/sub-sector. In
documentation;
addition, detailed inputs and
c) minor gap to be addressed recommendation for their
before preparation of technical preparation/ will be provided
documentation; through the Gap Assessment
Report.
d) substantial gaps to be
addressed before preparation
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ANNEX 5 – METHODOLOGY FOR NAD PREPARATION
Timescale
The NAD for 2014-2017 (with projections towards 2020) was prepared between December 2012 and July 2013, under the
leadership of SEIO’s Sector for Planning, Programming, Monitoring and Reporting on EU funds and Development
Assistance (known as ‘DACU’) which has responsibility within the government for coordinating and monitoring the use of
international assistance in Serbia The NAD preparation is based on the principles of the Sector Approach (SA), which is
being promoted by the European Commission for the programming of IPA2, and introduced in Serbia for programming of all
international development assistance.
The main forums for review, discussion and verification of the sector chapters are the eight Sector Working Groups (SWGs),
each of which had four main roles:
 To ensure alignment of the new Sector Approach throughout the NAD, based on the methodology and
timescales that go with it;
 To review the text relevant to specific sector descriptions, to identify any gaps, clarifications, or additional
information required;
 To identify, discuss and agree priorities for the sector which emerged from the analysis of the sector and the
strategic framework, and which would guide the choice of measures;
 To identify, discuss and agree measures, which followed from these priorities and which would be used after the
Government’s approval of the NAD to identify and select sector support programmes for funding by IPA2 or
donors.
The SWGs have involved representatives of Line Ministries (LMs) and other bodies, and the assistance in work was
provided by the consultants from PPF5 and SIDA-funded support project to SEIO. In addition to scheduled SWG meetings,
to coincide with key milestones in the drafting process, some extra ‘ad hoc’ meetings were organised when particular issues
needed to be clarified among members.
The full process of NAD preparation in 2013, from initiation by SEIO to Government approval, has involved 15 steps, which
are set out in the table below.
Step Time Period Commentary

1. NAD inputs from SWG supported February 2013
by SIDA
2. Checking the relevance of NAD February – March Draft completed and submitted to line ministries together with
2011-2013 measures to be revised in 2013 methodology for NAD drafting and used as the background for
the new document organising individual meetings and future SWGs.
3. Individual meetings with LMs March - April 2013 These meetings were led by SEIO staff, supported by
designated SIDA/PPF experts, in order to discuss the new
sector approach to preparing the NAD and progress to date,
the criteria used for identifying priorities and measures, and
proposals for priorities and measures.
4. First round of SWG meetings 10/11/12 April The three SWGs for RoL, PAR, Civil Society, Media and
2013 Culture, met on 10 April, the three SWGs for Transport,
Environment and Energy, ARD met on 11 April and two SWGs
on HRSD and Competitiveness met on 12 April. The goal of
the meeting was presentation of the NAD methodology and
discussion about relevance of NAD 2011-2013 measures and
their necessary revisions
5. Individual meetings with LMs April – May 2013 Meetings with line ministries were organized were there were
issues for discussion and as an opportunity to review the
sector priorities and measures.
6. Drafting NAD Section B May 2013 For each sector, this involved preparing a scope and
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background of the sector (chapter B1), strategic framework
(chapter B2), EU agenda (chapter B3), Overall objectives
(2014-2020) (chapter B4), Sector measures for implementation
of priorities in the sector (chapter B5), Institutional framework
for implementation of sector policies (chapter B6), Indicators
for measuring progress (chapter B7) and Aid effectiveness,
efficiency and sustainability (chapter B8) for tabling at the first
round of SWG meetings. The preparation was based on review
of relevant background documents, including studies, national
strategies and plans, EU strategies, and programming
documents of bilateral donors and IFIs, findings of the EC
Progress Report 2012, IPA 2012 and 2013 Sector Fiches,
Statistic Office data, Recognized international sources,
Evaluation reports, Fiscal strategy, Economic Development
plans and HRD Ops.
7. Second round of SWG meetings 20/21/22 May The two SWGs for Civil Society, Media and Culture and
including representatives of donors 2013 Transport met on 20 May, the three SWGs on RoL, PAR and
Competitiveness met on 21 May and three SWGs on ARD,
Environment and Energy and HRSD met on 22 May. The goal
of the meetings was to agree the sector sections B and to
discuss any comments coming from the donors, CSOs and
local self-government.
8. Deadline for written comments 27 May 2013 Following the SWG meetings, donor community, CSOs and
from donor community, CSOs and local self-government were given until the 27 May to submit
local self-government written comments to SEIO.
9. Revision of the NAD Section B May – 7 June Sections B were adapted to the decisions of the SWGs.
2013 Comments from donors and CSOs were integrated into the
Section B chapters, including any new or revised measures
which are suggested by the findings.
10. Drafting of the NAD Sections A May – June 2013 Drafting of Sections A and B involved preparing a scope and
and B objectives of the document and intervention strategy (chapter
A1), national economic and policy context (chapter A2), EU
integration (chapter A3), Development Assistance, Results,
Principles and Perspectives (chapter A4) and Sector Approach
(chapter A5), the role of SEIO/NIPAC (chapter B1), sector
coordination (chapter B2), sector Lead institution (chapter B3),
implementation modalities (B4) and instruments for aid
effectiveness (B5).
11. Further identification of Sector 17 May 2013 Indicators for priorities and measures were further improved,
Indicators (NAD chapter B7) including fundamental and target values.
12. Consultations with line ministries, June 2013 Meetings with specific line ministries were organized where
where required there were outstanding issues regarding definition of indicators
and setting up targets. Meetings were also used as an
opportunity to review the sector chapters in light of changes
arising from CSO and donor comments, and make any final
changes before the NAD moves to the inter-ministerial
procedure for approval.
13. Finalisation of NAD including June 2013 The NAD conclusions and annexes were also finalised and the
annexes document was completed.
14. Third round of SWG meetings. July 2013 Purpose: presentation of the whole NAD document
14. Formatting and translation of July 2013 All sections were edited and quality controlled into a common
NAD into Serbian style and format, and translated into Serbian..
15. Inter-ministerial procedure to The final draft NAD was distributed to all Ministries for approval
approve the full NAD and Governmental adoption, so it can be used as the basis for
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programming EU and donor assistance for period 2014-2017.
Template with Instructions for Preparation of Section B of the Document National Priorities for International
Assistance (NAD) 2014-2017 with Projections until 2020
General instructions:
 Aim of these instructions is to guide the work of sector support teams and to standardise their inputs to the NAD 2014-
2017.
 The NAD sectors are as follows:
1. Justice
2. Home Affairs
3. Public administration reform
4. Competitiveness
5. Energy
6. Environment and climate change
7. Transport
8. Human resources and social development
9. Agriculture and Rural Development
 Cross-cutting themes for all sectors include Regional/ Local Development, Gender and Anti-discrimination issues. An
explanation on how these cross-cutting issues have been taken into account should be provided in Section A1.
 The philosophy of the NAD is to focus on the existing functional elements of the sector approach rather than
emphasising those elements which are not yet in place. In this way, the national priorities for international assistance
are intended to address more sectorial structural adjustments rather than strengthening the responsible institutions.
 Timeframe 2014-2017 refers to the measures to be initiated/start implementation within this period. Inclusion of on-
going activities should be avoided. 2020 refers to priorities and objectives.
 The agreed font for the NAD is Arial Narrow 10, and the total length of each sector description should be no more than
24 pages.
Template with Instructions Section B

Sections B1-B8 should be the same for all sectors.
Themes like CSO, Media and Culture should be presented each one separately and following the same sections above.
However, their description won’t take into consideration the elements characterising sector approach such as: the quality of
the sector policy and strategy, the presence of a lead institution and a coordination framework, the functioning of a
framework for performance assessment and of a multiannual budget.
Instead, in section A5 it should be clearly highlighted that in supporting these sectors a project-based approach will be
adopted.
B1: Scope and background of the sector

 Maximum Text Length: 3 pages
 Information Source: 2013 IPA Sector Fiches, Statistic Office, Recognized international sources, Evaluation reports,
Fiscal strategy, Economic Development and HRD OPs
The text should define the scope of the sector in terms of the specific sub-sectors covered (as given in Annex 1) and there
should be a brief overview of the most significant recent developments in the sector.
This section should present a content sector analysis which will include the most recent statistics and should be similar to
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section 1.1 of Operational Programmes for IPA components III and IV.
Given the breadth of most sectors and the page limit, the description should, as much as possible, be in bullet point form,
include tables or graphs and focus on the headlines and highlights.
The aim is to paint a short, but clear and comprehensive, picture of the state-of-play in the sector which identifies the main
problems /needs of the sector and enables the reader to understand why specific priorities and measures are being put
forward under the NAD (i.e. there should be an obvious linkage to B4 & B5). This should use a mix of recent and current
performance data, and information on relevant institutional and/or legal developments, depending on what is most
appropriate for the sector.
B2: Strategic framework
 Information Source: Sector /sub-sector strategies; relevant inter-sectorial strategies, 2013 IPA Sector Fiches
 EC Guidance Document ‘Sector Approach in Pre-Accession’ (page 27)
This should briefly describe the main national priorities derived from the strategic framework specific to the sector and in a
systematic way elaborate the connection between this chapter (B2) and chapters B4/B5 which are describing NAD
priorities and measures.
National priorities should be presented in bullet points and each priority should have a brief explanation and should be at
the same level as the NAD defined priorities.
This part should also take into consideration the strategies that are under preparation, and provide brief explanation on how
the complementarity of these new strategies and NAD is being secured.
This chapter should also provide description of the priorities of the regional and transnational strategies as well as a short
description of obligations (if any) under international agreements and conventions to which Serbia is a signatory and which
are relevant for the sector.
Listing of the strategies and description of legal framework which regulates the sector should be presented in Annex 1.This
includes the main laws, regulations, and other legal instruments that directly affect the activities of the sector and covers
both primary and secondary legislation. The Section named “Current situation” from the NPAA should be used. There
should also be (if applicable) a brief description of prevailing standards directly applicable to the sector.
B3: EU Agenda (explaining links with the NPAA)
 Maximum Text Length: 1 page
 Information source: NPAA, EU policies/strategies (e.g. Danube strategy), PPF 2 and PPF 3 analysis of EU policies
The aim of Chapter B3 is to briefly present development direction of a sector in line with EU 2014-2020 policies and
Serbia’s response in terms of legislation. This section should present development direction of one sector in line with the
EU policies/strategies and NPAA priorities.
The specific chapters of the acquis which are addressed by the sector should be listed (see Annex 1).
Where more than two chapters are covered the main chapter(s) should be indicated.
For each sector a brief summary should be made of:
(i) the direction of EU policies for period 2014-2020;
(ii) Here directives’ scope/coverage should be explained/presented and they should not be only listed;
(iii) the NPAA measures planned for the period 2014-2016.
For each sector there should be explanation that each sub-group in charge of specific chapter and Sector Working Groups,
both in line with their responsibilities, will ensure integration of NPAA requirements in programming process.
The aim of this chapter is not to present which measures from NPAA will be covered by specific fiches or projects, but to
briefly present the EU 2014-2020 policies per each sector and Serbia’s response in terms of legislation.
Explanatory Note for Chapters B4, B5 & B7 below.
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The NAD is pan-sectorial document which has a programme-based structure and follows the standard PCM intervention
logic whereby overall objectives in each sector are addressed by priorities which in turn are implemented by means of
measures, as shown in the left hand column of Figure 1 below. The NAD is intended to be the main national Reference
Document for the preparation of the Country Strategy Paper (CSP) which will be the core EC strategic planning document
for IPA programming over the period 2014-20.
It is important to understand the linkage between the intervention logic of the CSP/NAD and that of upcoming IPA Sector
Support Programmes (SSPs).
Figure 1 below shows that NAD priorities are considered to be at the same level as SSP overall objectives whilst NAD
measures are at the level of SSP priorities. In the example shown in Figure 1, the NAD priority ‘To enhance the
competiveness of enterprises’ becomes the overall objective of the associated IPA programme.
Generally, this linkage is an important consideration in the formulation of NAD priorities and measures since these should be
of sufficient scope to allow for the future preparation of IPA SSPs.
Figure 1: Intervention Logic Linkage between NAD and IPA Programmes
NAD /CSP IPA Sector Support Programmes
Overall Objective
To increase the level of national
/regional economic development
Priority
To enhance the competitiveness Overall objective
of enterprises To enhance the competitiveness
of enterprises
Measure
To improve technological services
Priority
for enterprises
To improve technological services
for enterprises
Measure
New technological networks
Operations (projects/ grants etc.)

New technology centres
B4: Overall objectives and priorities in the sector (2014-2020)

 Information source: Sector Strategies, 2013 IPA Sector Fiches
The overall objective(s) and the priorities should be derived from the overall objectives and specific objectives respectively
contained in the sector strategies listed in Annex 1. Ideally there should only be one overall objective which is based on a
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synthesis of the highest level objectives in the sector strategies.
However, this will depend on the breadth of the sector, for widely scoped sectors it may be necessary to have more than
one overall objective.
Overall objectives should be SMART i.e. they should be:
S Specific: address specific problems /needs identified in the sector analysis
M Measurable: quantifiable in terms of sector reforms to be achieved (this is particularly important in relation to any
quantitative sector targets set in the CSP)
A Achievable within the time frame set and with the financial resources available
R Relevant to national accession preparations and /or national socio-economic objectives.
T Time-bound: set a time frame for sector reforms to be achieved
Objectives and priorities should be derived from a comprehensive sector analysis which is based on problem analyses
and needs assessments.
Apart from the sector strategies themselves, a useful source of such analyses are those contained in the most recent
(2013) IPA Sector Fiches (see Sector Fiche Section 2.2 ‘Sector Assessment-Policies and Challenges’), as well as
Progress Reports, IFIs reports, sector evaluation reports etc.
Each overall objective should be presented in descriptive way in 2-3 sentences. Same applies for priorities.
The findings of these analyses can be summarized in a table which lists the main Strengths (S), Weaknesses (W),
Opportunities (O) and Treats (T) relating to each sector.

B5: Sector measures for implementation of priorities in the sector
 Maximum Text Length: 2.5 pages
 Information source: Sector Strategies, 2013 IPA Sector Fiches
 EC Guidance Document ‘Sector Approach in Pre-Accession’
Measures are programming mechanisms for concentrating actions so they achieve the identified priorities for each
sector573 (each priority can have more than 1 measure). The principle behind identifying measures is that the aggregate
effect of all the measures together should achieve the sectors’ priorities, each measure building upon a defined baseline
position as measured by appropriate indicators (see B7, below).
This part should consist of measure descriptions.
A measure description should highlight elements such as its relevance in the context of existing national strategies, its
stage of preparedness in the period covered by the document, its complementarity between national funds, on the one
side, and international (IPA, IFIs and bilateral) on the other and, wherever it is possible, an indicative information on the
type of assistance needed to implement it. More specifically, a description of the way the measure is going to be
implemented, the bodies directly receiving the outputs of the operation and the sphere of population towards the actions
are addressed should be given.
Chapter B5 should also contain separate subchapter on Regional, Cross Border and Transnational themes. Regional
priorities should be defined for MB IPA only. CBC Priorities should be defined for CBC programmes only. For CBC, a key
action at the local level with cross-border impact (both soft and hard) should be elaborated/proposed. Transnational
priorities should be defined for transnational strategies, i.e. Danube Strategy. Since Serbia will participate in two
transnational programmes (Danube and SouthEast Gateway) transnational priorities should be described in a way to
address what are Serbian priorities in each particular sector and thematic area by taking part in programmes where more
than 4 countries participate, e.g. Danube Programme with14 countries. In relation to Danube Strategy it should be
explained how Serbia plans to implement Danube related priorities.
In brief measure is not a project/operation! In practice one measure should contain several potential operations (service(s),
twinning, supplies, grants and works). These projects/operations will be identified during the programming process.
573
In the context of IPA programmes, measures will focus operations (projects, grants etc.) in successive programme years
onto a common objective.
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B6: Institutional framework for implementation of Sector Approach (including the role of lead institutions, sector
working groups etc.)
 Maximum text length: 2 pages
 Information source: Annex 1 and Annex 2 of this document,
 Appointment of the sectorial working groups for programming and monitoring of EU funds and Development
Assistance,
 Decision on Establishing the Coordination Body for EU Accession Process,
 Decision on Establishing the Sector Working Groups
 SECO mechanism
 Sector Fiches 2012 and 2013
 Sector Strategies
The text should present all institutions that are collectively involved in a sector.
It is important to avoid naming the specific Ministries; instead the text should be formulated in a way to indicate “the
Ministry in charge of” or “the Ministry responsible for”.
After listing all institutions with clear link to the sector, a lead institution should be identified and its main roles, in terms of
coordination, should be presented. Lead institution’s main responsibility (in charge for policy) should be provided. All other
descriptions from the Law on the Ministries should be avoided. Also the main but general formulation of lead institution in
relation to development assistance should be elaborated.
The role of Sector Working Group (SWG) should be presented in terms of overall coordination, programming, monitoring,
reporting and donor coordination.
The role of SECO mechanisms should be presented and explanation on the involvement of donor community in the work of
SWGs.
B7: Indicators for measuring progress

 Maximum text length: 2 pages
 Information source: Sector Fiches 2013,
 NAD 2011-2013 indicators,
 Sector Strategies
The complete set of indicators should be structured according to the hierarchy of objectives as follows:
(i) Overall Objectives and Priorities of NAD Sectors are expressed in terms of impact indicators;
(ii) Measures of the NAD Sector are expressed in terms of outcome indicators
(iii) operations are expressed in terms of output indicators.
For preparation of NAD, indicators that should be identified are those related to the NAD Priorities and Measures, i.e.
impact and outcome indicators, as shown on Figure 2 below.
Outcome indicators at the level of NAD Measure are the initial benefits that will arise once the measure is implemented.
They represent the immediate advantages for its direct beneficiaries. Outcome indicators provide information on changes
which occur for direct beneficiaries, for example:
 Increased proportion of primary school leavers going on to secondary school (measurement unit - primary to
secondary transition rates in %),
 Improvement in water quality (Changes in gross nutrient balance),
 Number of enterprises introducing hygiene, food safety, occupational safety standards (levels of improvement).
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This gives a special importance to outcome indicators considering that impact indicators by their nature are often available
only after a considerable time lag and they often need substantial methodological input in order to be valid.
Figure 2: Categories of Indicators According to Intervention Logic Levels
NAD /CSP IPA Sector Support Programmes
Overall objective Impact
Overall objective
Priority
Priority
Measure
Measure
Operations (projects/ grants)
Outcome
Output
Impact indicators at the level of Priorities of the NAD consist of all the consequences that affect, in the short or medium
term, direct beneficiaries following the end of their participation in an intervention, or people or organisations that are not
direct beneficiaries.
For example:
 Increased agriculture production (measurement unit - growth in contribution of agriculture to GDP in %),
 Employment creation (division according to on-farm/off-farm jobs, gender and age category).
In an enlargement perspective, the impact indicators should relate to the Copenhagen criteria and to the measurable
achievements to be reached in this respect.
For example:
 The closing of a given Negotiating Chapter,
 The adoption of certain EU standards,
 The alignment with some of the acquis
 A positive assessment given by the EC on the advancements towards accession.
Outcome and impact indicators should be presented with a clear definition, with a baseline values from 2012, a definition of
the institutional responsibilities related to collection and submission of data on indicator to SEIO, sources of verification for
each indicator and quantified targets per year till 2020. This should be done per each indicator listed in table below.
Identification of indicators should rely on sectorial strategies and indicators that have been developed for NAD 2011-2013.
Already developed indicators should be analysed and redefined (if needed), taking into account the availability of
information and their sources (statistics, information that are collected by institutions, etc.), comments on NAD indicators
provided by the DEU, sector indicators used in the PEP (Pre-Accession Economic Program) and internationally accepted
indicators measured by the relevant IO/IFIs. Work on finalisation of the indicators should be done in coordination of different
available TA; sector teams should coordinate this and ensure that duplication of work is avoided and that available
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resources are efficiently used.
Impact indicators should be presented in the following way:
PRIORITY 1:
Indicator Unit Baseline Target Means of Institutio

(2012) Verificatio n in
2013 2014 2015 2016 2017 2018 2019 2020 n charge
Measure indicators should be presented in following way:

MEASURE 1.1:
Indicator Unit Baseline Target Means of Institutio

(2012) Verification n in
2013 2014 2015 2016 2017 2018 2019 2020 charge
B8: Aid effectiveness, efficiency and sustainability

 Maximum text length: 1 page
 Information source: ISDACON, National and Sector Budgets, Governmental fiscal data
As far as international donors are concerned, ISDACON is the primary source of information. A clear and concise report of
the aid provided in the last six years (2007/2012) should be provided using available quantitative data. Regarding IPA,
budget allocation per sector for period 2007-2013 should be provided.
Further, this chapter should explain the focus of IPA assistance in period 2007-2013, end provide an overview of the
bilateral and multilateral assistance provided so far.
This chapter should also provide an outline of main findings and recommendations derived from evaluation reports, both
SIDA horizontal evaluation and EUD sector evaluations.
National co-funding is more and more relevant in giving shape and consistency to the assistance and donors’ contributions
should be seen as the additional support to implement sector reforms.
In this light, it may be useful, when possible, to clarify the link between sector policy and budget and between sector budget
and donors’ assistance. To this extent it is crucial to verify whether the sector budget can be identified in the State budget.
Additionally, the stress should be put in calculating how (and how much) the various forms of assistance (grants or loans)
have contributed in implementing sectorial polices.
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ANNEX 6 – SECTOR LEAD INSTITUTIONS AND ACCESSION NEGOTIATION SUB GROUPS
NAD Sector Lead Institution Acquis Working Group Chair574

Justice Ministry in charge of Chapter 23 Judiciary & fundamental rights Ministry in charge of Justice
Justice
Home Affairs Ministry of in charge of Chapter 24 Justice, freedom & security Ministry of in charge of Interior
Interior Chapter 30 External relations Ministry in charge of Foreign & Internal Trade
Chapter 31 Foreign, security & defence policy Ministry of Foreign Affairs
Public Ministry in charge of Chapter 5 Public procurement Ministry in charge of Finance
Administration Public Administration Chapter 9 Financial services National Bank of Serbia and Ministry in charge of
Reform Finance
Chapter 10 Information society & media Ministry in charge of Telecommunications
Sub-chapter
10.2
Chapter 16 Taxation Ministry of Finance
Chapter 17 Economic & monetary policy National Bank of Serbia and Ministry in charge of
Finance
Chapter 18 Statistics Body in charge of statistics
Chapter 22 Regional policy & the coordination of structural Body in charge of European integration
instruments
Chapter 29 Customs union Ministry in charge of Finance
Chapter 32 Financial control Ministry in charge of Finance
Chapter 33 Financial & budgetary provisions Ministry in charge of Finance
Chapter 34 Institutions Body in charge of European integration
Competitivenes Ministry in charge of Chapter 1 Free movement of goods Ministry in charge of Economy
s Economy Chapter 3 Right of establishment & freedom to provide services Ministry in charge of Labour, Employment
Chapter 4 Free movement of capital Ministry in charge of Finance
Chapter 6 Company law Ministry in charge of Economy
Chapter 7 Intellectual property law Body in charge of intellectual property
Chapter 8 Competition policy Ministry of Foreign & Internal Trade
Chapter 10 Information society & media Ministry in charge of Telecommunications
Chapter 20 Enterprise & industrial policy Ministry in charge of Economy
instruments
574
As proposed by the Decision on Establishing the Coordination Body for the Republic of Serbia’s EU Accession Process. The adoption of the decision is expected to take place in mid-September 2013
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NAD Sector Lead Institution Acquis Working Group Chair574
Chapter 25 Science & research Ministry in charge of Science & Technological
Development
Chapter 28 Consumer & health protection Ministry in charge of Foreign & Internal Trade
Energy Ministry in charge of Chapter 15 Energy Ministry in charge of Energy
Energy Chapter21 Trans-European networks (TENS-E) Ministry in charge of Transport
instruments
Environment & Ministry in charge of Chapter 22 Regional policy & the coordination of structural Body in charge of European integration
Climate Environment instruments
Change Chapter 27 Environment Ministry in charge of Environment
Transport Ministry in charge of Chapter 14 Transport policy Ministry in charge of Transport
Transport Chapter 21 Trans-European networks (TENS-T) Ministry in charge of Transport
Human Ministry in charge of Chapter 2 Freedom of movement of workers Ministry in charge of Labour, Employment
Resource & Labour, Ministry in Chapter 19 Social policy & employment Ministry in charge of Social Policy
Social charge of Chapter 22 Regional policy & the coordination of structural Body in charge of European integration
Development Employment, Ministry instruments
in charge of Social Chapter 26 Education & culture Ministry in charge of Education
Policy Chapter 28 Consumer & health protection Ministry in charge of Foreign & Internal Trade
Agriculture & Ministry in charge of Chapter 11 Agriculture & rural development Ministry in charge of Agriculture and rural
Rural Agriculture, Forestry & development
Development Water Management Chapter 12 Food safety, veterinary & phytosanitary matters Ministry in charge of Agriculture
Chapter 13 Fisheries Ministry in charge of Agriculture
NAD Thematic Areas
Civil Society Office in charge for Chapter 23 Judiciary & fundamental rights Ministry in charge of Justice
Organisations Cooperation with Civil Chapter 26 Education & culture Ministry in charge of Education
Society1
Media & Ministry in charge of Chapter 10 Information society & media Ministry in charge of Telecommunications
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NAD 2014-2017 With Projections Until 2020 (English)

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NAD 2014-2017 With Projections Until 2020 (English)

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NATIONAL PRIORITIES FOR INTERNATIONAL

ASSISTANCE (NAD) 2014-2017 WITH PROJECTIONS

SBRA Serbian Business Registers Agency

A.1.1. Scope and Objectives of the Document

NAD Sectors Thematic Areas

them as cost-effective as possible’. Indicator 3 (see Section A.4.3, Table 4).

Public Administration Reform Priority 1 Energy Priority 1

6 Draft National Plan for Regional Development, 2014-2020

7 This Project Prioritisation Methodology is presented in Annex 4.

A.2 National Economic and Policy Context

A.2.1 Economic Situation

10 Statistical Office of the Republic of Serbia, www.stat.gov.rs

A.2.2 Policy Context

A.4.1 Types and Amounts of International Assistance

27 Source: ISDACON IS, www.evropa.gov.rs

A.4.2 Results of International Assistance

OECD / DAC Criteria

Specific Objectives Progress Achieved

A.5 Sector Approach

The EC have provided the following guidance on sector definition:

Section Title /Content

Institutional Setting and Leadership

NAD Sector Lead Institution

48 Under the IPA 2007-13 Regulation

49 IPA Implementing Regulation (Article 58)

B1.1. Scope and background of the sector

plenary session (Venice, 17-18 March 2007)

57 EC Progress Report 2012 , COM

prepared by Laura Stefan

National Strategic Framework

Adopted by the National Assembly of the Republic of Serbia on July 1, 2013.

23. Judiciary and Fundamental Rights

B1.4. Overall objectives and priorities in the sector (2014-2020)

B1.5. Sector measures for implementation of priorities in the sector

77 Adopted by Government on 18.06.2013

80 EC Progress Report 2012

B1.6. Institutional framework for implementation of Sector Approach

82MLA - Mutual legal assistance

86 Positive assesment in EC Progress Report, Screening Report, Monitoring Report

90 Supreme Court of Cassation

97 Defined recommendations: 222; implemented recommendations: 134 (60.36%)

B2.1. Scope and background of the sector

107Official Gazette of the RS, No.20/2009

108 Official Gazette of the RS, no. 108/07

B2.2. Strategic framework

National Strategic Framework

111 For the period 2011 – 2014

B2.4. Overall objectives and priorities in the sector (2014-2020)

118 See NPAA, page 468 and page 469

Priority 1: Improving the overall security and fight against crime

Refer to Justice Priority 1., Measure 1.3

B2.6. Institutional framework for implementation of Sector Approach

123Act on establishing the SWG from 5.11.2012. No: 119-01-68/2012-03

124 Introduced in 2011

PRIORITY 1: Improving the overall security and fight against crime

Means of Institution in charge for

Means of Institution in charge for

Baseline Target Means of Institution in charge for

Means of Institution in charge for