Serbian government allocated 93 million EUR worth of employment incentives

Over a one-year-period, the Serbian government allocated a total of 93 million EUR worth of employment incentives to investors with only 2.57 EUR million going to domestic investors and the rest to the foreign ones.

In one year since the new Investment Law came into force, a total of 28 investments were given employment incentives. Although, the new law was supposed to treat equally domestic and foreign investors, only three Serbian companies were actually granted incentives. Out of EUR 92.9 million of granted incentives, just EUR 2.57 million went to Serbian investors.

Metalac from Gornji Milanovac was one of those companies that were overlooked in regard to employment incentives. Metalac bought the bankrupt company Fabrika Automobilskih Delova (FAD), also from Gornji Milanovac, and hoped that the state would help in putting the factory on its feet.

“I am not happy at all with the way the state stimulates domestic investors. We are not treated equally compared to foreign investors. We bought FAD when the company was bankrupt and had no workers. For a whole year, we have been fighting to get some kind of incentives from the state. In the end, we were told we were not eligible for incentives because, in the meantime, we had hired a certain number of workers to work for us for a limited period of time. We had to hire these people while waiting for the state to make a decision. We did not get the employment incentives which are 4,000 EUR per new job” – says Dragoljub Vukadinovic, CEO of Metalac.

The Ministry of Economy says that, in an effort to additionally stimulate domestic investors, they have lowered their incentives criteria in terms of the minimum investment amount and the mandatory number of new employees.

(Vecernje Novosti, 16.11.2016)


A small favour

Since 2013, Serbian Monitor has been offering to its readers carefully selected news about the Republic of Serbia, as a daily commitment stemming from the genuine desire to offer undistorted information about a country that is too often a victim of prejudice and superficiality. From November 2016, this service is available in English and Italian with a growing number of original articles with a goal of providing a complete picture of this Balkan country's economy, politics, culture and society. Our archive is completely free of charge, available to anyone who wants to get to know the country, to study its specific aspects, or to be constantly updated about it. This project will only be able to continue with the help of readers on whom we are calling to provide a small financial support so that we can continue supplying an increasingly expanding pool of information and original contributions. If you appreciate our work, please click on the button below.

Share this post

Leave a Reply

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

scroll to top