Serbia: Relief behind the headlines

International media coverage of the late-January elections in Serbia tended to lead on the fact that the ultra-nationalist Radical Party – headed by Vojislav Seselj who has been indicted by the international tribunal in The Hague – won the most votes in the poll. However, the more important and more comforting fact is that a coalition from what is known as the democratic bloc of parties will ultimately form the new government in the Balkan republic.

The result has therefore been greeted with a sense of relief by bankers inside and outside the country. They are confident that any new administration in Belgrade will move quickly to ensure that Serbia’s economic reforms and eventual accession to the European Union progress as quickly as possible.

Challenges

Stuart Culverhouse, chief economist at emerging market brokerage Exotix, says that the key political challenges facing the next government will be cooperation with the Hague war crimes tribunal, which is crucial to progress on EU membership.

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