In the past 10 years, Serbia has paid about one billion euros from the budget for fines and penalties, which is two and a half times the total cost of the construction of four major hospitals and more than the construction of the southern and eastern branches of Corridor 10, are the conclusions of the forum titled “Why the State Loses Disputes in International Arbitration”.
As pointed out, this year alone, 280 million euros are expected to be paid from the Serbian budget for fines and penalties.
Special advisor to the Budget Council, Marko Milanović, pointed out that the budget documentation regarding the money allocated to arbitration remained vague and that losses from arbitration amount to about 200 million euros per year, while in 2010, they amounted to between 30 and 40 million euros.
“When we sum up the total amount, we come to a figure of one billion euros over 10 years. It is not a cost that will make the budget collapse, but it is a substantial amount, because it is, for example, the same amount of money used for the construction of the southern and eastern branch of Corridor 10, twice as much as it is needed for the construction of four major hospitals in Serbia and more than the money needed for the modernisation of the Belgrade-Novi Sad railroad line,” Milanović said.
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