Ministry of Economy refuses to publicly release a memorandum signed with MTU Aero Engines

The Ministry of Economy has refused to publicly show the memorandum of understanding signed on 7th May with MTU Aero Engines AG, citing the confidentiality reasons.

The Article 10 of the Memorandum, which governs the issue of confidentiality, states that the terms and conditions of the Memorandum and the general discussion, correspondence and negotiations relating to this project shall remain strictly confidential and shall not be disclosed by either Party without the prior written consent of the other Party. Either Party shall have the right to disclose details of the Memorandum to lawyers, accountants, agents and other advisers.

Want to open a company in Serbia? Click here!

It should be noted that the company’s entry into the Serbian market was announced at the beginning of May as a very significant investment in high technology. The government of Serbia has long been publicly criticized for the considerable amount of taxpayers’ money indiscriminately given to foreign companies that are engaged in manual and labour-intensive activities.

On the other hand, it is assumed that, in the future, the MTU plant in Serbia would employ people with a higher education who would also receive above-average wages.

In line with the current practices, it can be assumed that MTU will receive subsidies, both in the form of free building land for its factory and in the form of financial incentives for new jobs.

The memorandum was signed between the German Ambassador to Serbia, Tomas Schieb and the Minister of Economy, Goran Knezevic, in the presence of a member of MTU’s Managing Board and the Serbian President Aleksandar Vucic.

Following the signing of the MoU, Vucic announced that a contract should be signed as early as June and that the factory should be located near Belgrade, most likely in Stara Pazova. There is no information as yet whether the contract was actually signed.

The German company MTU Aero Engines is one of the leading manufacturers of aeroplane engines and a global stakeholder in this sector. The company was founded in Munich in 1934, has about 10,000 employees, and the annual turnover of 4.6 billion euro.

(Nova Ekonomija, 12.07.2019)





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Your email address will not be published.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