Coalition: Through interstate agreements, Serbia has borrowed EUR 4 billion
The research of the Coalition for the Supervision of Public Finances showed that in 2019 and 2020, through interstate investment agreements, the Republic of Serbia undertook financial obligations worth over four billion euros through 28 agreements, the Toplica Centre for Democracy announced.
“All 28 agreements were concluded through direct contracting between the top authorities and various financial institutions and countries, without any public insight into their preparation and contracting. Obligations amounting to billions of euros have been assumed without an analysis of alternative solutions and a clear explanation as to why direct contracting is more favourable for our country compared to market competition,” it is stated in the research of the Coalition for the Supervision of Public Finances.
It was emphasized that through this type of contracting of the most valuable business deals in which the state is the procuring party, in addition to competition, domestic legislation is eliminated and financial obligations are assumed that will be settled by the generations that have not yet been born.
“In order to eliminate these inappropriate and financially unsustainable practices, the Coalition for the Supervision of Public Finances proposes that the National Assembly of the Republic of Serbia, which is in charge of ratifying such contracts and agreements, instead of unconditionally legitimizing irresponsible decisions of the Serbian Government, should pass a law that would abandon this harmful practice forever,” the statement says.
Otherwise, it is added, contracts like the one concluded between the Republic of Serbia and the Government of France in the amount of 581,000,000 euros, which is more than half of the projected budget of Belgrade for 2021, will become a dominant form of public spending that will endanger public finances in the Republic of Serbia for a long period of time and continuously create significantly higher costs for citizens than necessary.