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Head of the EU delegation: Possible negative effects of the regulation on limiting trade margins

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Head of the EU delegation: Possible negative effects of the regulation on limiting trade margins

The head of the European Union Delegation, Andreas von Beckerath, today commented on the economic aspects of the European Commission’s annual report and emphasized that the introduction of a regulation limiting trade margins to 20 percent could lead to significant market disruption, negative impact on investments, losses for sellers, store closures and layoffs.

At the presentation of the European Commission’s report to representatives of companies, state institutions and the business community in the European House, Von Beckerath pointed out that the greatest progress was recorded in the economy and that the economic power of Serbia is strong, recalling that significant GDP growth was recorded in 2024, but that it slowed down in the first half of this year.

The report indicates that the state still has the largest role in the economy, which can hinder the competitiveness and development of the private sector, while state-owned enterprises still have an excessive presence in various structurally important sectors that employ a large part of the workforce, Von Beckerath said.

He pointed out that the business community is hampered by so-called “red tapes”, political interference, weakness in the rule of law and limited efficiency and transparency of public administration.

Von Beckerath said that the production and service sectors are well developed due to close economic integration with the European Union and reminded that the EU has been one of Serbia’s most important partners for two decades and participates in almost 60 percent of trade in goods and 45 percent of total trade with Serbia.

According to him, reforms in the green transition are progressing, but the pace is too slow, the energy infrastructure is outdated, and Serbia is still dependent on Russia for gas and oil, although it has taken several steps towards diversification.

Serbia’s commitment must be shown through actions, constant reforms and a public narrative that ensures that Serbia’s future is in the EU, because it has great potential for joining the Union, but this requires political will and strong reforms, Von Beckerath pointed out.

He reiterated that EU enlargement is a political priority and a geopolitical investment in a strong, stable, secure and united Europe, based on democratic values.

He pointed out that it is crucial that the reform process has slowed down compared to last year and stated that the turbulent political situation has increased polarization in Serbia, and excessive use of force and pressure on civil society has been recorded.

Praising the positive reforms related to the adoption of the Law on the Unified Voter List and the election of members of the Council of the Regulatory Body for Electronic Media, Von Beckerath emphasized that it must be sincerely implemented in order to bring about concrete changes.

(Vijesti.ba)


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