Prime Minister Mirko Cvetkovic stated today that no VAT increase is planned for the near future and the currency exchange rate is expected to be stable in the long term.

In an interview with Radio Television of Serbia, the Prime Minister spoke about two years of the government’s work, emphasising that the government has fulfilled its pledges completely, adding that the only area that presents a cause for concern is the economy, as the standard of living is affected by it.

Speaking about economic reforms, Cvetkovic said that the Serbian government is implementing thorough reforms, which are far more comprehensive than reforms carried out earlier.

The regulatory guillotine is being implemented, he pointed out, announcing that the government’s aim is to create a good investment climate, as without investment and new jobs the standard of living cannot be improved, he highlighted.

A euro exchange rate that will not increase inflation beyond planned rates would be an acceptable one from an economic viewpoint, he observed.

The change in the rate of the euro is coinciding with a significant increase in exports and with an increase in the import to export ratio, which will help create new jobs, as growing exports provide access to new markets, he noted.

It is estimated that the euro exchange rate in the near future will depend on inflation within the country and the Eurozone, which means that Serbia has a relatively low inflation rate and that in the long term the exchange rate will mostly be stable with some fluctuation, he explained.

Speaking about one-off assistance to employees who are directly or indirectly paid from the budget, he explained that the government held consultations with trade union representatives, which presented an acceptable proposal for providing RSD 5,000 in one-off assistance to all employees whose pay is below RSD 50,000.

Concerning assistance to pensioners, he said that Deputy Prime Minister Jovan Krkobabic will hold consultations and will present a proposal on this matter which will then be approved.