Serbia plans public sector layoffs in 2015

Serbian Deputy Prime Minister Kori Udovicki , who also serves as minister of public administration and local government, stated that during the 14^th Economic Summit held in Belgrade between June 23 and June 24, 2014 the governmental plan of strengthening of Serbian economy includes public sector layoffs, the Serbian newswire B92 reported June 24.

“Serbia’s economy is facing a turning point and its biggest problems lie in the political practice,” said Udovicki, as cited by the newswire. “Problematic areas include administrative culture and regulations, which is why some changes are needed. The 2015 budget must reflect the rationalization plan. Irrationalities are numerous in the public sector, which employs 760,000 people, and this is why foreign investors often face problems.”

The deputy prime minister did not state how many public sector employees are considered surplus to requirements, although she stressed that the state administration employees many less.

“The state administration employees around 28,000 people, while the public sector has more than 760,000 employees,” said Udovicki, as cited by the newswire.

Udovicki also stressed that Serbia needs foreign investments, which demands economic growth.  The deputy prime minister also recognized problems connected with state administration not being coordinated enough.

“[The reason for state administration not being coordinated enough is] not lack of political will, but lack of coordination mechanism between the government capacities and the government and institutions in the state system,” stated Udovicki, as cited by the newswire.

Udovicki also noted that the authorities work on a package of new bills concerning the public administration system, civil servants and local government, which should be adopted in the fall.