Government preparing new regulation that won’t be too accommodating to foreign investors

Foreign investors who are planning to come to Serbia to invest and who are counting on subsidies will sign a different kind of contracts with the state than it has been the case so far.

As Blic Biznis finds out, at this moment, the authorities are working on changing certain provisions of the law that regulates state subsidies for foreign investors.

The case of the Italian company Geox, which practically closed its factory overnight and left about 1,200 workers without a job, once again raised the issue of the abundant state subsidies that can go up to 10,000 euro for each new job a foreign investor creates.

According to the agreement it concluded with the Serbian government in October 2012, Geox received 11.25 million euros from the state, i.e. a subsidy of 9,000 euros per employee. According to the agreement, Geox had to implement the 15.8-million-euro investment within three years and employ at least 1,250 people.

Although Geox fulfilled its obligations, the fact that the company left Serbia so abruptly raises the question of whether changes should be made when it comes to subsidizing foreign investors. Since 2006, the state has allocated over two billion euro for subsidies to foreign investors. The money came directly from the state budget, as well as from local governments who provided free land and infrastructure to foreign investors.

Hence, the Ministry of Economy is now changing the provisions that regulate this area.

Subsidy amounts per year

2016 – investments 216.24 million euros, planned new jobs 15,034, allocated subsidies 81.48 million euros

2017 – investments of 148.94 million euros, planned new jobs 6,990, allocated subsidies 43.69 million

2018 – investments of 209.54 million euros, planned new jobs 7,846, allocated subsidies 63.23 million euros

2019 (until mid-May) – investments 238.66 million euros, planned new jobs 6,019 jobs, allocated subsidies 41.52 million euros

(Blic, 04.08.2021)


This post is also available in: Italiano

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *

scroll to top