Serbian Minister of Economy and Regional Development Mladjan Dinkic stated Tuesday that he would request from Prime Minister Mirko Cvetkovic for State Secretary at the Serbian Finance Ministry Slobodan Ilic to be severely penalized due to his recent statements in view of the decision of the Ministry of Economy to grant bigger subsidies to the Gorenje company for the construction of the plant in Zajecar (eastern Serbia).

Dinkic stated at a press briefing that Ilic's remarks were arbitrary, as the decision to give bigger subsidies for the opening of the plant in Zajecar rather than in Valjevo (western Serbia) was made based on a government regulation, according to which twice as large subsidies are envisaged for underdeveloped areas compared to other regions.

On January 27, Dinkic signed an agreement with the Slovenian company Gorenje on the construction of a new Gorenje factory in Zajecar, which will employ 300 people and the initial investment of which totals about EUR 2.9 million.

Taking into account a very difficult economic and social situation in that part of Serbia, the Serbian Ministry of Economy supported the investment with EUR 10,000 for each new employee, that is with a total of EUR 3 million, Dinkic explained earlier.

The election of Zajecar as a location for the investment caused a sharp reaction of Valjevo, which already has a Gorenje plant and which believes it is entitled to new investments of the Slovenian company.

In view of that, Dinkic and Ilic voiced sharp criticisms against each other, accusing each other of various oversights and poor performance.

Ilic accused Dinkic of "wooing" the existing foreign investors "due to his inability to attract new ones," and of intentionally transferring foreign investments to the towns in which his party colleagues are mayors.