Prime Minister Mirko Cvetkovic said today at the Heritage Foundation in Washington that he believes that Serbia will enter the year 2012 as a candidate for EU membership and also with a set date for starting the accession negotiations.

Addressing representatives of US political and professional circles, Cvetkovic said that Serbia is a key country in Southeastern Europe, with the potential to become a regional leader in promoting good neighbourly relations and confidence among states.

In order to accelerate the European integration of Western Balkan countries, we are committed to contribute to regional security and cooperation. In that sense, I have to emphasise the importance of continued US support to the creation of a sustainable stability in our part of Europe, he said.

The Prime Minister recalled that Serbia, by launching the dialogue between Belgrade and Pristina, confirmed its positive approach to the issue of Kosovo-Metohija.

We believe that dialogue is the only way to reach compromise and create conditions for reconciliation between Serbs and Albanians, said Cvetkovic.

Presenting the economic potential of Serbia, Cvetkovic said that, in comparison with other countries in the region, some of which are already members of the EU, Serbia has been successful in dealing with the consequences of the global economic crisis, mainly through cuts in public spending and the introduction of subsidies.

Public investment in infrastructure over the next few years should be around 5% of gross domestic product (GDP), which has been made possible by freezing public sector wages and pensions.

Cvetkovic said that very important for dealing with the consequences of the economic crisis in Serbia were financial arrangements with the International Monetary Fund (IMF), the World Bank and the EU.

He stressed that Serbia is the only state whose credit rating increased in times of crisis.

Presenting the strategy for the next 10 years, Cvetkovic presented some key elements of the plan "Serbia 2020", including the increase of employment rate, investment in human capital, investment in knowledge and technology, creating export-oriented economy and reduction of poverty.

The basic preconditions for the realisation of this plan are institutional reforms and improvement of infrastructure, stated the Prime Minister.

While developing this strategy, we had in mind the need to intensify the competitiveness of our country. Economic freedom is considered today as a core prerequisite for development, and Serbia has been consistently promoting economic freedom since 2002, which makes us proud, but not quite satisfied, said Cvetkovic.

At this point, due to the EU integration and the role in strengthening regional stability, Serbia is seen as a country with a favourable climate for attracting foreign investment, he said also pointing out to a number of measures aimed at improving business conditions.

These measures, according to Cvetkovic, include cutting some administrative procedures, tax reform, education reform, concessions for export-oriented production, reducing the gray economy, fight against corruption and alignment with EU acquis.

Cvetkovic said that Serbian enables investors to export to many markets, from regional countries, through the EU to Turkey and Russia.

Another comparative advantage of Serbia are extensive infrastructure projects planned for the next five years, he said.

Responding to questions from participants in the discussion, Cvetkovic said that Serbia entered the crisis with high unemployment, and is today focused on how to solve this problem.

Currently unemployment rate in Serbia is between 20% and 21%, and our main goal is to offer a good business climate for those who create jobs, said Cvetkovic.

Heritage Foundation is a research and educational institution founded in 1973. With about 710,000 members, the Heritage Foundation is the largest group of experts in the United States and has a great influence on the creation of US national politics.