Excellencies,
Dear Friends,
Ladies and Gentlemen,

Thank you for the warm introduction, Mr. McCormack. I am very grateful to the International Economic Alliance for organizing this panel on Serbia. It is always good to be back at the Harvard Club.

What I would like to say right at the beginning is that if you’re interested in investing in Europe, there is no better place than Serbia. I know you have a choice, so I intend to make the case for Serbia to you this afternoon.

I want you to leave this room knowing—absolutely knowing—that Serbia truly welcomes American investment. We see the United States as a strategic economic partner, and ourselves as the geo-economic link between western Europe, Southeastern Europe, the Greater Middle East, North Africa and Central Asia.

Not only does enhancing the U.S.-Serbia business partnership help build bridges between our two countries, but it contributes to the greater prosperity of our two peoples. To the advantage of all.

Ladies and Gentlemen,

In a couple of days from now, we will proudly celebrate the 10th anniversary of Serbia’s peaceful democratic revolution. In those ten short years, we have:

• reintroduced democratic institutions;
• restored the rule of law;
• established a market economy and consistently measured above-average economic growth;
• strengthened human and minority rights;
• fought organized crime and corruption with a vengeance;
• and actively participated in NATO’s Partnership for Peace program.

On the top of that, in ten years since democratic changes Serbia has attracted almost 15 billion euros of foreign investments – 10% of which has come from the U.S.

That’s what the Serbia of today is like. And it is in that context that I want you to understand my vision of the Serbia of tomorrow. A Serbia that is a full, deserving member of the European Union.

Rapid European Union accession is, in fact, more than a goal, it is our central strategic priority. It is the most secure way to truly consolidate the reforms to which I just referred.

Take a look at what experts say about us. Price Water House Coopers, the Economist Intelligence Unit, Ernst&Young have all praised Serbia as a great place to invest safely and profitably. The Financial Times even called Belgrade the city of the future, while the New York Times has written about our nightlife as the best in Europe. One more thing: just a few weeks ago, the OECD rated Serbia’s investment climate amongst the most attractive in Southeastern Europe, underlining our rapid improvement and projecting an even faster one.

So, let me tell you very simply: we’re more than ready for you to come to Serbia, and we will do everything we can to attract your business.

Ladies and Gentlemen,

The coming into force of CEFTA—the region’s free trade accord—in January 2007, has worked to our advantage. It gives companies direct access to a market of close to 30 million people, centered on Serbia—which is once more playing a leading economic role in the region.

CEFTA, together with the free trade agreement Serbia already has with the Russian Federation, Turkey and Belarus, means the opportunities for American investment in Serbia as gateways to this and other dynamic emerging markets are almost limitless.

And when you combine this with the fact that products made in Serbia can be exported customs-free to all 27 countries of the EU, and that we have one of the lowest corporate tax regime in all of Europe, you have a comparative advantage few countries the world-over can compete with—access to a potential market of close to one billion people.

With macroeconomic stability fully in place—thanks to government and IMF intervention—our economy is already back on track. Our credit rating actually improved during the financial crisis, while the economy is projected to grow by more than two percent this year—and we expect that number to more than double in 2011.

We are working hard to reinforce our foundation for long-term economic development, by remaining focused on local and regional infrastructure projects.

Ladies and Gentlemen,

Serbia is an integral part of Europe’s Corridor VII water route. Corridor VII—the Danube river—spans 600 kilometers in Serbia and is the only connection between the North Sea and the Black Sea.

Serbia is also a critical component of Europe’s Corridor X road route, which connects Europe to Asia. This makes Serbia a key transit country on the most direct route between Germany and Central Europe to Turkey, but also to the Greek Port of Thessalonica on the Aegean Sea. Both Corridors are being completed and modernized at an accelerated pace, with investments totaling more than 2.5 billion euros.

We’re also building new highways to or neighboring countries Bosnia and Herzegovina and Montenegro, for example. The latter will cut transportation times to the Adriatic coast by half.

In addition, we have plans to build state-of-the-art intermodal logistical centers, and to modernize our entire ports, rail and telecommunications networks.

Serbia is a country with significant capacities for production and distribution of electrical power. Big reforms and investments brought the efficiency level up to European standards. Our strategy for further investments in hydropower and development of the entire energy sector contributes to energy stability and strengthens the economy across our whole region. It also makes Serbia a hub, not only for electrical power, but also for gas and renewable energy resources.

On our road to energy efficiency, we are collaborating with prominent European institutions and corporations. Serbia is actively involved in several main international energy projects, including pan-European oil pipelines, international gas pipelines and green energy concepts—all this with the intention to contribute to energy security of the entire continent.

Another aspect of infrastructure development is further investing in our robust IT-sector. I want to tell you how proud I am of the fact that Microsoft has chosen to invest strategically in Serbia because it was confident that our high-tech human resources were second to none.

Ladies and Gentlemen,

I believe that a vital component to seeing this economic strategy through is the American business and investment community’s continuing engagement with the Serbian marketplace. More than forty percent of our population speaks English. Our workforce is highly trained, hard-working, and comparatively inexpensive to hire.

Already American-based multinationals, such as Phillip Morris and Coca-Cola have successfully privatized formerly-state or socially-owned firms. US Steel has even become the single-largest Serbian exporter. Ball Packaging have also achieved great success in green-field investments—and they are committed to expand their operations in Serbia.

Ladies and Gentlemen,

The United States government has shown remarkable confidence in the future of the Serbian economy, donating close to one billion dollars in the past ten years to make our economy more competitive and attractive to American FDI. And trade with the United States is pursued under the GSP that exempts more than 4500 products from U.S. customs duties. For our part, Serbia has established a sister-state relationship with the State of Illinois, and our Armed Forces have become a leading partner with the Ohio National Guard.

But we can do more. The trade and investment numbers with the United States are good—one and a half billion dollars so far—but they are far from reaching their full potential.

It is our duty to work together—government and business, Serb and American—to constantly improve the numbers, and never to be satisfied.

And so, Ladies and Gentlemen, when you think of Serbia, of the new Serbia, here’s what I would like you to call to mind. Serbia sees the United States as a strategic economic partner. Serbia is the political, economic and intellectual hub of Southeast Europe. We are the gateway to some of the most exciting emerging markets on earth. And we are a dynamic, politically stable and economically ambitious country absolutely committed to do what it takes to help you choose Serbia as the next place to invest. Dedicated to rapidly integrate into the European Union, Serbia is a growth-oriented country that will become the regional guarantor of integration, security, and prosperity.

We truly welcome your capital and know-how, your experience and your confidence. Let me then conclude by saying to you: come often to Serbia, and invest more in Serbia.

Thank you very much.