Serbian Reform Agenda: Shortcut towards the European Union?

06. Dec 2024.

 

The Growth Plan for the Western Balkans, a package of measures of the European Union worth 6 billion euros, aims to double the economic growth of the region in the period from 2024 to 2027. Of this total amount, two billion are earmarked as grants, while the remaining four billion will be available through low-interest loans. Serbia can withdraw close to 1.6 billion euros, the largest share of any economy in the region. 

Half a year after the presentation of the Growth Plan, in May 2024, the European Commission adopted a regulation defining the development of Reform Agendas as key instruments for implementing this Plan. Reform Agendas are meant to accelerate the process of EU accession, with visible reforms that will strengthen the institutional and economic framework of the region. 

Priority Measures and Reforms on Serbia's Agenda 

At the beginning of October 2024, the Government of Serbia adopted the Reform Agenda of the Republic of Serbia. The document contains four major areas of public policies: 1) Business environment and development of private sector; 2) Green and digital transition; 3) Human capital; and 4) Fundamentals. Each of these chapters contains two or more sub-sections, each of which typically includes one, two, or even seven reforms, such as improving the business environment, enhancing the quality of teaching and learning, improving the status of members of national minorities, fighting organized crime, and promoting freedom of expression. 

How did the Government of the Republic of Serbia define the priorities of the Reform Agenda? 

The Regulation on the establishment of an instrument for reforms and growth for the Western Balkans prescribed the purpose of Reform Agendas, the content, conditions under which financing from the Growth Plan is possible, the participants in the process of adopting and implementing the Reform Agenda, as well as monitoring of implementation and reporting. 

Determining priority reforms is complicated by the fact that Serbia has not yet adopted a Development Plan, which should be an umbrella development document outlining the reforms necessary to accelerate EU accession and achieve the sustainable development goals outlined in the 2030 Agenda. This is also the case with other sectoral strategic documents, which have been pending for several years. Another approach to determining priorities could be a broad social dialogue involving all interested parties, allowing for the establishment of common priorities.  

In the absence of a Development Plan and a broad social dialogue, it remains unclear how the priorities were determined in the Reform Agenda. For example, the energy sector is one of the priority areas for financing reforms within the Green and Digital Transition section, and one of the reasons for its prioritization is its contribution to GDP of 4%. However, the same document states that agriculture, forestry, and fishing contribute 6.2% of GDP on average. One might ask why agriculture is not one of the priority areas. 

Additionally, the criteria for defining priority reforms remain unclear. For example, one of the reforms in the Green and Digital Transition area involves implementing the Action Plan for a Just Transition, which includes two concrete steps: establishing the Fund for a Just Transition (by December 2025) and implementing a pilot project for the prequalification and additional qualification of employees in public enterprises for underground coal mining at Resavica and Kostolac (by June 2027). Although the details of the Fund's establishment and functioning are not known, it has been stated that its foundation will also be supported by "...greater utilization of critical mineral raw materials, with which our country is very rich." It is also unclear why Kolubara's employees were excluded from the retraining project, considering that at the end of October, Elektroprivreda Srbije announced a tender for the development of plans to close the two oldest thermal power plants in Serbia: Kolubara in Lazarevac and Morava in Svilajnac. The retraining program for employees at these plants is still unknown, and the fate of other workers employed in thermal power plants across the country remains uncertain. Both of these measures relate to the Action Plan for Energy Transition, a document that has not yet been adopted. This plan is expected to address the fate of nearly 30,000 workers in the energy sector who will be directly affected by the phase-out of coal use by 2050. The strategic, legislative, and institutional framework that would enable the transition from fossil fuels to renewable energy sources in a socially just and economically sustainable manner is still in its infancy. Meanwhile, numerous energy facilities across Serbia are nearing the end of their operational life, raising questions about their future status and usage. 

Create the Reform Agenda Transparently, Based on the Principle of Inclusion and Partnership 

The Regulation explicitly states that Reform Agendas should be prepared based on the principle of inclusive partnership, and that the European Commission should ensure that all interested parties—from parliaments and local authorities to social partners and civil society—are consulted and have enough time and access to relevant information to participate meaningfully in the preparation of reforms. This obligation is summarized in Article 11, which explicitly requires that Reform Agendas be prepared in an inclusive and transparent manner. 

There were no public consultations on the Reform Agenda in Serbia, despite the clear requirements in European regulations to involve all interested parties, especially social partners and civil society. No public call for the participation of civil society in preparing this document was issued.  

In February 2024, the Republic of Serbia established a coordination structure for the development of the Reform Agenda, with coordinators responsible for preparing sections within their areas of competence. On behalf of the Government, the main coordinators for the Growth Plan are Deputy Prime Minister and Minister of Finance Siniša Mali, and Minister for European Integration Tanja Miščević. 

In March, statements to the media indicated that a team for the Growth Plan for the Western Balkans had been formed, and that consultations with representatives of the business community and civil society had already been held on two occasions. However, it was stated that additional consultations would be conducted before the adoption of the Reform Agenda at the Government session. 

The same information about consultations can be found in the Reform Agenda document, which states that the consultation process had both informal and formal parts. According to the Agenda, Serbia had already drafted the first strategic reforms in the spring of 2024 and organized an exchange of opinions with the National Convention on the EU and the business community. However, no public information about these consultations is available. The National Convention on the EU, as a platform for civil society participation in the negotiation process with the EU, did not inform the public about these exchanges. The only publicly available information is that in early March, a meeting was organized between the Ministry of European Integration and the National Convention on the EU, where they discussed Serbia’s decade-long EU negotiations, updates in enlargement policy, and the monitoring of reform processes in the context of the Growth Plan. There was no mention of the draft Reform Agenda or strategic reforms, and civil society outside the NKEU was neither informed nor involved in informal consultations 

The next public announcement came in July 2024, when the proposal for the Reform Agenda was presented at the Fifth Session of the Committee for European Integration, held on July 18, and attended by Foreign Minister for European Integration Tanja Miščević, EU Delegation Ambassador Emanuel Giofre, and representatives of the National Convention on the EU. The session was closed to the public. Nevertheless, this closed session is presented in the Reform Agenda as a formal part of the consultation process with the public. The document claims that the National Convention on the EU ensured that "the consultative process was inclusive and participatory, reflecting diverse perspectives and contributions from civil society." These statements are misleading, as a closed session involving only members of the NKEU cannot be considered a public consultation. Following this, there was little public information about the Reform Agenda until October 3, 2024, when the Government adopted it.  

The Reform Agenda was clearly not drafted in accordance with the Regulation on the establishment of the instrument for reforms and growth for the Western Balkans. Nevertheless, on October 24, 2024, the European Commission approved the Reform Agendas of the Western Balkan countries. For Serbia, it noted that the Government had conducted the necessary consultations, as prescribed by national legislation—despite the absence of public consultations. 

Chance or missed opportunity?  

Although the Reform Agenda addresses important areas where reforms are needed, the manner in which decisions on priorities were made is questionable. Despite the clear requirements of European regulations, public consultations were not held in Serbia, and the European Commission accepted the Reform Agenda proposed by the Serbian Government, giving the green light for the implementation of the defined measures and activities. 

If the Reform Agenda is meant to lead us towards the development of democracy, the rule of law, and the foundations of a modern democratic society, the normalization of public participation in decision-making is essential. The absence of public dialogue undermines the credibility of the reforms. 

The continuation of reform processes without genuine public participation carries the risk that these reforms will be seen by the public as mere formalities to fulfill European requirements, rather than real and necessary societal transformations. Serbia must demonstrate its readiness for European standards, not just by adopting documents, but through concrete procedures. This requires the adoption of strategic documents and the creation of real opportunities for public participation, ensuring that reforms truly reflect the interests of the entire society. 

  

Mirjana Jovanović, Lazar Jovčić, Marko Pajović 

Belgrade Open School 


Photo source: Canva