Serbian government marks 100 days in office

29/08/2007

The new administration has arrested alleged war criminals and cigarette smugglars, restarted talks with the EU, and firmly opposed independence for Kosovo. However, living standards remain low.

By Igor Jovanovic for Southeast European Times in Belgrade – 29/08/07

Prime Minister Vojislav Kostunica said the government's main tasks are co-operation with The Hague tribunal, continuation of the EU integration process, curbing crime and corruption, and raising the standard of living. [Getty Images]

The current Serbian government has been in office since May 15th. It was formed four months after the election, following protracted negotiations among the so-called "democracy bloc" – President Boris Tadic's Democratic Party (DP), Prime Minister Vojislav Kostunica's Democratic Party of Serbia, and G17 Plus. While Kostunica took the post of prime minister for a second time, the majority of cabinet posts went to the DP, the strongest member of the ruling coalition.

As the government took office, Kostunica said its three main tasks were co-operation with The Hague tribunal, continuation of the EU integration process, reducing crime and corruption, and raising the standard of living. So far, it has achieved some of these goals.

Shortly after the new cabinet was formed, two fugitives sought by UN prosecutors were arrested and extradited to The Hague. Former Bosnian Serb army officer Zdravko Tolimir was arrested in Republika Srpska, while former Serbian police commander Vlastimir Djordjevic was arrested in Montenegro. Serbian security forces assisted in both arrests.

In turn, the EU resumed Stabilisation and Association Agreement (SAA) talks with Serbia on June 13th. The negotiations had been suspended in May 2006 due to Belgrade's lack of co-operation with the tribunal -- particularly, its failure to deliver former Bosnian Serb military commander Ratko Mladic.

The final round of the talks should take place in September, but full co-operation with the tribunal remains a condition for signing the SAA. For now, Mladic is still on the run.

The government's first 100 days were also marked by the arrest of cigarette smuggling suspects from the 1990s. Two key suspects still at large are the widow and son of the former Yugoslav President Slobodan Milosevic.

So far, little progress has been seen in improving standards of living. Fearing inflation, the National Bank of Serbia had to introduce severe measures that were criticised by commercial banks in Serbia. The prices of housing, electricity, bread and milk went up, further squeezing households in a country where the average monthly salary is 300 euros. The delay in forming the government after the elections cost Serbia dearly. Amid the political turmoil -- which included a brief stint by ultranationalist Tomislav Nikolic as parliament speaker -- foreign investment dropped sharply and is expected to be well below last year's figure of 3 billion euros.

But on the diplomatic front, the Kostunica administration can point to success. With the help of Russia, a UN Security Council member, it has managed to fend off a draft resolution based on the status plan put forward by former UN envoy Martti Ahtissari. Many had expected Kosovo's status to be settled by now, with internationally supervised independence as the outcome. Instead, a new round of negotiations is under way.

With Belgrade and Pristina still sharply at odds, however, the result of those talks is unclear. Moreover, the ruling coalition is split over how the issue is being handled by Kostunica and his DPS. Ministers from the DPS have leveled accusations at NATO, charging that it plans a state-building experiment in Kosovo. Tadic's DP says such attacks are counterproductive.

According to the DP's Nada Kolundzija, abuse of the Kosovo issue for partisan purposes has seriously damaged Serbia's interests. According to Kolundzija, Belgrade should be working on winning over as many countries as possible, not alienating them.