Analysts: Vucic's Investment Plan a Wish List, Where Is the Money Going to Come From?

Aleksandar Vucic (BETAPHOTO/DRAGAN GOJIC)

A five-year investment plan worth around EUR12 billion unveiled by Serbian President Aleksandar Vucic on Aug. 11 is a wish list, and lacks an explanation of where the money will come from, economic analysts said on Aug. 12.

Belgrade School of Economics professor Ljubodrag Savic told BETA that he did not have any objections to the list of investments, if they were not election propaganda.

Savic, however, said that "I haven't heard how the money for realizing these goals will be secured and when it will start."

Serbia's slowly growing economy is incapable of withstanding this, but it could if Serbia had a double-digit growth rate like China, Savic said. Taking out foreign loans would increase Serbia's foreign debt.

Economist Ljubomir Madzar agrees with Savic. "My chief objection is that these large-scale projects, which will dazzle the people" do not mention anything about how the money will be secured nor the methods and instruments for realization, Madzar said.

Madzar said that some projects could be realized in a partnership with the private sector but that "its as if these project don't exist for the authorities."