Serbia

Serbia officially applied for EU membership in 2009 and was granted candidate country status in 2012. Accession negotiations began in 2014 and are still ongoing. The prospects for integration are complicated by the EU’s demand for normalization of relations with Kosovo and problems in meeting economic criteria. 

 Programme support for Serbia

Slovakia is a traditional ally of Serbia, as both nations have experienced similar political and economic developments in past. The entire Western Balkans region, including Serbia, has long been a focus of Slovakia’s development activities. Serbia has been a programme partner since 2018.  

The Development Plan and Mid-Term Plan of local self-governments (LSGs) ensure that measures and activities are planned in a realistic manner to achieve the priority goals of the LSG and the goals of public policies at the national level. It also enables a clear understanding of obligations related to the EU accession process that are implemented at the local level. The assistance received through Public Finance for Development programme is important for the reform of the planning and budgeting system.

Bojana Tošić

Director of the Public Policy Secretariat - Republic of Serbia
PUBLIC FINANCE

In recent years, PFD has primarily focused on strengthening the management and planning capacities of local self-governments, particularly those less developed. The intention was to assist selected municipalities in optimizing their municipal management, improving planning processes, and enhancing financial planning, while also building regional coalitions to ensure greater efficiency. 

Key achievements

  • We have improved public policy planning by supporting 15 self-governments with preparations of realistic, data-based Local Development Plans for 2018-2023 period. The plans define the main medium-term development directions and provide a framework for development investments opportunities. These LSGs were the only public sector bodies in Serbia that have prepared Development Plans in line with the new legislation – the Law on the Planning System. 
  • We have brought together five LSGs (Novi Pazar, Sjenica, Ivanjica, Raška, and Kraljevo) that share authority over Golija mountain region so that they can jointly utilize shared natural resources. This collaboration pilots a coordination mechanism for micro-regional development planning and a methodology for drafting Micro-regional Development Plans. 
  • In 2019, the project developed and improved taxpayer identification function for control purposes and control risk management. The objective was to establish an effective risk management system as part of the planning and decision-making process to detect and avoid tax evasion in Serbia. 
PRIVATE SECTOR ENGAGEMENT

Heating of residential and industrial buildings represents a significant share of energy consumption in Serbia. The country is currently working to decarbonize its economy by implementing measures to enhance energy efficiency. In this context, utilizing natural, renewable resources such as geothermal energy, an alternative to natural gas and other fossil fuels, has become one of key priorities.

The goal of the project we support, Geothermal Energy in Serbia, is to facilitate investment decision-making within the public sector regarding the use of geothermal energy for heat production, while also securing financing for the planned projects. To achieve this, we connect public sector partners in Serbia with relevant EU stakeholders and international financial institutions. Simultaneously, with the assistance of Slovak experts, we aim to strengthen the technical capacities of our Serbian counterparts in preparing these projects. 

Mobilizing resources from private finance through Resource Mobilization Facility enabled implementation of several projects. They focused on improving energy efficiency of public buildings and use of renewable energy sources. See details below.  

Projects funded by RMF
UNDP in Serbia website