Key developments and challenges

Serbia has become an EU candidate country. The decision by the European Council in March 2012 is in recognition of Serbia’s cumulative reform efforts. However, no date has yet been set for beginning the accession talks.

Reforms have advanced in several infrastructure sectors. In telecommunications, the market has now become fully liberalised and competition is increasing, while in railways, further steps have been made towards the separation of infrastructure from transport.

Macroeconomic discipline has been weakened. The fiscal deficit increased substantially in the first half of the year above 7 per cent of gross domestic product (GDP), and the level of public and publicly guaranteed debt is now above the 45 per cent ceiling set by the Budget System Law.