Europe

Serbia
Last Reviewed: 11 December 2008

Country information

See entire profile

Map of Serbia

Capital City: Belgrade
Area: 88,361 sq.km
Population : 7,498,001 (Serbian Government census, 2002)
Languages: Serbian (majority), Hungarian, Bosniak, Roma, Croat, Montenegrin, Albanian, Slovak, Vlach, Romanian, Macedonian, Bulgarian, Ruthenian and Ukrainian. In the areas inhabited by ethnic minorities, the languages and scripts of the minorities are in official use.
Major Ethnic Communities : Serbs 82.86%; Hungarians 3.91%; Bosniaks 1.82%; Roma 1.44%; Montenegrins 0.92%; Yugoslavs 1.08%; Croats 0.94%; Albanians 0.82% (Serbian Government census, 2002).
Major Religions and Denominations: Christianity: Serbian Orthodox dominant), Roman Catholicism, Islam.
Major Political Parties: Democratic Party (DS), Serbian Progressive Party (SNS), Serbian Radical Party (SRS), G17 Plus, Socialist Party of Serbia (SPS), Democratic Party of Serbia (DSS), Liberal Democratic Party (LDP), New Serbia (NS), League of Vojvodina Social Democrats (LSDV), Sandzak Democratic Party (SDP), Coalition for Sandzak, Vojvodina Hungarians Alliance (SVM), Party of Democratic Action (PDD), roma Party (RP), Union of Roma of Serbia (URS).
Parliament of The Republic of Serbia:The national legislature of Serbia is a unicameral assembly of 250 deputies elected through general elections for a term of four years.

The deputies in the National Assembly elect the Government of the Republic of Serbia, which, together with the President of the Republic, represents the country’s executive authority. The Judiciary is independent.

The President of the Republic is elected for a term of 5 years by direct election and has important powers under the Constitution. The President is not a member of the National Assembly or the government.

The Leadership of the Republic of Serbia:

President and Head of State: Boris Tadic.

On 7 July 2008 a coalition government was formed in Serbia between the Democratic Party, Socialist Party of Serbia and G17 Plus. See the Internal Politics section below, for further information, on the political parties that are in the coalition.

Government Ministers who hold key posts:

Prime Minister: Mirko Cvetkovic (DS)
First Deputy Prime Minister and Police Minister: Ivica Dacic (SPS)
Deputy Prime Minister in charge of EU integration: Mr Bozidar Djelic (DS)
Foreign Minister: Vuk Jeremic (DS)
Defence Minister: Dragan Sutanovac (DS)
Finance Minister: Diana Dragutinovic (G17 Plus)
Justice Minister: Snezana Malovic (DS)

Membership of International Organisations: United Nations (UN), Organisation for Security and Co-operation in Europe (OSCE), Council of Europe (CoE), European Bank of Reconstruction and Development (EBRD), Stability Pact, South-Eastern Co-operation Initiative (SECI), Central European Initiative (CEI), South Eastern Europe Co-operation Process (SEECP), Danube Commission, Initiative for Danube Co-operation, International Monetary Fund (IMF), World Bank, Partnership for Peace (PfP).

ECONOMY

Source: Serbian Statistical Office, unless otherwise stated
GDP (billions): US$ 39.9 (2007 est.); US$ 29.6 (2006)
GDP real growth rate: 7.1% (2007 est.); 5.6% (2006)
GDP per capita: US$ 5399 (2007 est.); US$ 3994 (2006)
Population below poverty line: 6.6% (2007). National poverty line defined at approximately US$ 130 per month.
Registered unemployment rate: 24.4% (September 2007)
Inflation: 10.1% (2007) – source: National Bank of Serbia
Official Currency: Serbian Dinar (RSD)
Major industries: Agriculture, machine building, metallurgy, mining, consumer goods, automotive, pharmaceuticals, petroleum products and chemicals.
Major trading partners: Russia, Italy, Germany, France, the former Yugoslav Republics and neighbouring EU states (Hungary, Bulgaria and Romania).
Further information about Serbia's economy and investment opportunities can be found on the UK Trade and Investment website

Economic Overview

Since 2000, Serbia’s economy has been going through recovery from conflict and isolation in the 1990s, and through transformation towards a fully functioning market economy. Successive governments have introduced reforms designed to liberalise the market, although progress has been intermittent owing to political uncertainty. Nevertheless, the economy has grown at an average rate of 6%, and both foreign investment and particularly trade have shown strong increases.

Continuing integration with the European Union, with the goal of eventual membership, will increase the pace of reform and provide an additional boost to the economy. As part of its ongoing reforms, the country is nearing the end of a programme of privatisation of state and "socially owned" companies, although completion of the programme has been delayed by the economic crisis. Few attractive companies now remain to be sold. The government has said that those companies that fail to attract a buyer after three attempts at a sale will go into liquidation. The government is also starting the slow process of reforming the state-owned utilities (such as electricity, gas and telecommunications), which will be gradually opened up to competition and joint ventures in successive years.

One of the most successful sectors to benefit from this programme has been banking, over 80% of which is now foreign owned. New financial products and an increased trust in banks among the public (destroyed by successive banking crises in the Milošević era) led to a consumer boom and a sharp increase in imports. Consumer trust was tested in the wake of the Lehman Brothers collapse, when Serbian savers withdrew € 1 billion worth of deposits in six weeks. However, the Serbian banking sector weathered the crisis largely unscathed, and the withdrawn savings had largely been returned by the end of 2009. A period of consolidation is now expected in the sector to bring down the high number (over 30) of high street operators.

Another product of the privatisation programme is the high unemployment rate, which has been exacerbated by the crisis, as companies are restructured or liquidated. This has become one of the main economic and political challenges for the Government. The official unemployment rate stands at around 15%. The Government has responded by looking to encourage greenfield investment, an area that Serbia has so far failed to develop. The Government is now offering financial incentives to investors who site their business and create employment opportunities in Serbia. In this way the Government hopes not only to begin to tackle the unemployment problem, but also to redress the growing trade gap by attracting export-driven industries.

Serbia’s economy is in the process of becoming more closely integrated with the region and the wider world. In September 2007, Serbia ratified the Central Europe Free Trade Agreement (CEFTA). Besides Serbia, CEFTA includes Croatia, Bosnia, Montenegro, Macedonia, Albania, Moldova and Kosovo. The Agreement creates a regional free trade area of around 29 million people. Serbia is also one of the only countries outside the former Soviet Union that enjoys a free trade agreement with Russia, a market of 143 million, although this has yet to be exploited to its full potential. Serbia is negotiating to join the WTO, and hopes to do so in 2010.

The economic crisis

As a result of the country’s growing integration with regional and world markets, Serbia found itself severely affected by the current global economic crisis. Serbia’s recent growth had been fuelled by consumption, aided by readily-available credit for companies and individuals, and by a steady inflow of foreign investment. However, the credit crunch reduced foreign investment to a relative trickle, and problems in Serbia’s surrounding economies stifled demand for its exports and reduced the amount of remittances sent home by Serbs working abroad. At home, consumer credit has been severely reduced, leading to a sharp drop in imports as demand has withered.

The combined effect is that the government has found itself with a large hole in its budget, and with a shrinking but still significant trade deficit. As a step to stabilise the situation and restore confidence in the economy, the government agreed in April 2009 a €3 billion Stand-By Arrangement with the International Monetary Fund (IMF). In August, the government asked to relax the budget deficit limit from the previously agreed 3% to 4.5%. The IMF agreed to this request in principle, pending detailed proposals from the government on the sustainable reduction of public spending over the medium term.

In early November 2009, the government and the IMF agreed a plan to reduce expenditure by continuing a freeze on pensions and on wages for public sector employees until the end of 2010. The government also agreed to reduce the number of public sector employees by around 10%, and to begin to implement structural reforms in areas such as pensions, health and education. The deal is important, not only to release the remaining instalments of the Stand-By Arrangement, but also to give confidence to other international lenders and donors, such as the World Bank and EU, to release their own funds to boost the Serbian economy. The IMF now expects Serbia's economy to contract by 3% in 2009, before growing by 1.5% in 2010.

The government has also signed a Memorandum of Understanding with the National Bank of Serbia, in a joint effort to keep inflation under control. High levels of government spending in the past two years had fuelled inflation, only partially contained by the Bank’s strict monetary policy. The inflation rate at the end of October 2009 was 5.6%, but was expected to rise by the end of 2009 to around 7.5%.

The economic crisis also affected the Serbian Dinar (RSD), as reduced flows of foreign funds into the country lessened demand for the currency. Since its high in August 2008, the Dinar had lost over 20% of its value against the Euro by early 2009. The National Bank responded with substantial interventions in the currency markets to prevent excessive swings. By February, the situation had stabilised and overall reserves remained relatively healthy at around €10 billion at the end of October 2009.

Trade

Serbia’s trade results in 2007 show a total of US$ 27.2 billion in foreign trade, a 38.6% increase in comparison to 2006. Exports reached US$ 8.82 billion, which represents a growth of 37.3% over the previous year. The value of imports reached US$ 18.35 billion, which is 39.3% higher than in 2006. However, the macroeconomic and investment climate is still somewhat fragile with the current account deficit remaining high (expected to grow to over 18% of GDP in 2008) and the foreign trade deficit amounting to over US$ 9.7 billion in 2007.

Direct trade between the UK and Serbia in 2007 stood at approximately US$ 357.4 million (source – Serbian Statistical Office). UK imports from Serbia amounted to $150.1 million, while UK exports to Serbia totalled $207.3 million. It is worth noting that significant volumes of British exports to Serbia are routed via third countries and therefore not captured by direct trade statistics. Major UK investment in Serbia occurred in 2003 with the acquisition of the second largest tobacco manufacturer by British American Tobacco for approximately €87 million. The UK ranks in the top 10 investors in Serbia with cumulative 2000 – 2006 investments amounting to over US$ 307 million. Numerous UK service providers are successfully doing business in Serbia in areas such as law, accountancy, real estate, construction, engineering, marketing and public relations.

International Assistance

Following the fall of Milosevic in October 2000, many international donors started working in Serbia, providing important assistance to the new pro-reform government.

Although it is a middle income country, Serbia is still a significant recipient of international aid, which come from more than 20 international donors’ organizations that are having active programmes in Serbia.

From 2000 to date, international assistance totalling €4.5 billion has been committed to Serbia.

Disbursed international assistance and its share in GDP in millions of Euros

Years	2001	2002	2003	2004	2005	2006	2007
Disbursed Intl. assist.	868.55	726.35	686.22	450.58	713.21	551.35	379.98
Disbursed assist. as % GDP	6.60%	4.30%	3.80%	2.30%	3.40%	2.20%	1.20%

Source: GoS ISDACON database

The biggest providers of international assistance in 2007 are: the European Commission, The World Bank, European Investment Bank, European Bank for Reconstruction and Development, Germany and the USA.

Sectors with the highest share in the total disbursed international assistance are energy and transport, the third largest is the public administration sector.
The international assistance is provided through well developed mechanism for coordination of donors’ assistance (DACU) which Government of Serbia established in 2002. DACU plays an important role in helping Ministries to prepare and implement priority projects and coordinate donors’ assistance with them.

EU assistance to Serbia is provided in a context of EU accession process and from 2007, it is given through the Instrument for pre-accession (IPA), which has been adopted for the period 2007-2013.

Financial assistance from IPA funds is/will be use for supporting the transition process and institution building, as well as for cross-border activities between our country and neighbouring countries-assistance beneficiaries, as well as with the EU member countries.

Projection of IPA funding for Serbia is the following:

IPA budget for Serbia	2007	2008	2009	2010
Component 1 and 2	186.7	190.9	194.8	198.7

Source: European Commission

As for the World Bank assistance, it is provided in a form of EBRD loans. The World Bank support, which is projected to be 600 million of Euros in next four years (2008 – 2011), is directed towards further economic growth and accession to EU standards.

EU member countries (including the UK) are running bilateral programmes of development assistance.

For more information of the UK assistance to Serbia (provided through DFID), please visit www.dfid.gov.uk/countries/serbia.

The main expected tendencies in international assistance disbursement are growth of EU funds whereas bilateral assistance is expected to stay at approximately the same level until 2010.

The capacity of domestic institutions to successfully use donor funds which has been significantly affecting the level of international support provided to Serbia so far would imply further improvement in the following years.

Environmental Assistance

The United Nations Environment Programme – Post Conflict Clean Up of Environmental Hotspots.

In May 1999, the UNEP established a post-conflict Balkans Task Force, which would assess the environmental consequences of NATO’s bombing campaign in Serbia. The bombing of chemical factories and oil refineries had caused air, soil and water pollution. UNEP identified four heavily polluted ‘hotspots’ in Serbia: Pancevo, Kragujevac, Novi Sad and Bor; and implemented a US $12.5 million clean-up programme. By working closely with the environmental authorities in Serbia, UNEP implemented a series of technical projects to: decontaminate soil and water; remove and transport for final treatment tons of hazardous waste; rehabilitate wastewater capacities at industrial sites; and install water and air quality monitoring stations.

In 2004, UNEP handed the clean-up programme over to the national authorities, principally the Ministry for Science and Environmental Protection. Although Kragujevac and Novi Sad are no longer considered ‘hotspots’, problems still remain.

For further information, please consult the following websites:

World Bank - Serbia

Europa

European Bank

HISTORY

Longer Historical Perspective

The five independent countries that emerged from former Yugoslavia in 1991-92 had spent centuries, from the late Middle Ages, under either Austrian Habsburg or Ottoman Turkish rule. Most of present-day Serbia fell under Ottoman control.

Two Serbian uprisings beginning in 1804 and 1814 resulted in a Serbian state gaining first semi-autonomous status within the Ottoman Empire and eventually, in 1830, full autonomy. The Ottoman Empire was forced out of the region during the Balkan Wars (1912-13) when Serbia also regained control of Kosovo, which it had lost to the Ottomans in 1389.

In the First World War, the joint forces of Austria-Hungary, Germany and Bulgaria defeated Serbia. The Serbian army regrouped and went to fight alongside the forces of the Entente on the Salonica front. In 1918, under the Serb Karadjordjevic dynasty, the ‘Kingdom of Serbs, Croats and Slovenes’ came into existence. The new state was renamed the ‘Kingdom of Yugoslavia’ in 1929.

The Second World War saw Yugoslavia invaded in April 1941 and partitioned by the Axis powers. When Yugoslavia emerged in 1945 as a socialist federation under the communist partisan leader Josip Broz (Tito), the state was structured as a federation of six republics: Croatia, Bosnia and Herzegovina, Slovenia, Serbia, Montenegro and Macedonia. Kosovo and Vojvodina gained increasing autonomy within Serbia. Tito ruled the Socialist Federal Republic of Yugoslavia (SFRY) for 35 years, sharing power amongst Yugoslavia’s constituent nations.

Recent History

Tito’s death in 1980 signalled the beginning of the end of the SFRY. The state’s economic decline continued and, increasingly, the power sharing issue rose up the agenda. In 1989 Slobodan Milosevic, riding a wave of nationalist sentiment, came to power in Serbia, and quickly installed his supporters in positions of power and severely restricted the autonomy of Kosovo and Vojvodina. In January 1990, the Yugoslav League of Communists failed to reach agreement on urgent questions of reform and the Slovenian delegation walked out.

The next eighteen months witnessed a round of largely insincere negotiations over how to resolve Yugoslavia’s collective problems. In June 1991 Slovenia and Croatia declared their independence. Macedonia withdrew from Yugoslavia after its independence referendum in September 1991, followed by Bosnia and Herzegovina in 1992, after its independence referendum. Serbia, under Milosevic, opposed the independence moves and actively participated in wars and armed conflicts in Croatia and Bosnia and Herzegovina (1992-95) under the pretext of ‘protecting’ Croatian and Bosnian Serbs.

Following the secession of the other Yugoslav republics, Serbia and Montenegro adopted the Constitution of the Federal Republic of Yugoslavia (FRY) on 27 April 1992, and declared themselves a new state.

When Kosovo and Vojvodina were stripped of their previous degree of autonomy, Kosovo Albanians began boycotting the Serbian institutions and elections. However, after several years of passive resistance, violent opposition to Serbian hegemony grew in Kosovo. Milosevic turned to the policy of ethnic cleansing, this time against the Kosovo Albanian population. NATO intervened between March and June 1999 with a 78-day bombing campaign across Serbia and Montenegro to push repressive Serb troops out of Kosovo and force Milosevic to relinquish control of the province.

Since June 1999, UNMIK has exercised administrative control of Kosovo, whilst the NATO-led Kosovo Force (KFOR) has maintained security within the province.

Milosevic’s regime came to an end on 24 September 2000, following FRY presidential elections. He refused to accept the first round victory of Vojislav Kostunica, the Democratic Opposition of Serbia Coalition (DOS) candidate. However, Milosevic had underestimated popular support for the opposition and overestimated the loyalty of the army and security services. Hundreds of thousands of people took to the streets, storming government buildings on 5 October 2000 ending Milosevic's 1-year regime. The uprising of 5 October 2000 was consolidated in December 2000, when DOS swept to power in Serbia, following the Assembly elections.

5 October 2000, people of Yugoslavia storm government buildings and end Milosevic's 10 year regime

The State Union of Serbia and Montenegro

On 14 March 2002, following months of negotiations between the two republics and mediation by EU High Representative Javier Solana, the federal and republican level governments signed the ‘Belgrade Agreement’, forming a new, looser union between Serbia and Montenegro. With the formal adoption of a new Constitutional Charter on 4 February 2003, the FRY became the State Union of Serbia and Montenegro (SaM). Foreign policy, defence policy, foreign and domestic economic relations and human/minority rights were dealt with at state union level. Svetozar Marovic, a Montenegrin, was appointed President of SaM. There was also a single-chamber Parliament made up of 126 members (91 Serbian, 35 Montenegrin).

The State Union was intended to promote stability within the region and help both republics make further progress towards European integration, but opinion in Montenegro was divided and the union did not function effectively. Under the terms of the Constitutional Charter either republic could hold a referendum on independence after three years. Montenegro chose to exercise this right and, with the EU acting as facilitator, held a successful referendum on 21 May 2006: 55.5% of those who voted did so in favour of independence. The Montenegrin Assembly made a formal declaration of independence on 3 June 2006, thus bringing the union between Serbia and Montenegro to an end.

On 5 June 2006 the Serbian National Assembly decreed Serbia to be the continuing international personality of the State Union of Serbia and Montenegro, and fully succeeded its legal status as initially envisaged by the SaM Constitutional Charter Serbia therefore inherited membership of international organisations of which Serbia and Montenegro was a member. The Republic of Serbia remains party to all international agreements, treaties and conventions to which Serbia and Montenegro was a party.

For more information please see the following link:

Montenegro Country Profile

For more information:

BBC timeline: Serbia and Montenegro after Milosevic

On 17 February 2008, Kosovo declared itself independent. The declaration committed Kosovo to implement fully UN Special Envoy Ahtisaari’s Comprehensive Proposal, which includes extensive minority safeguards and international supervision. On 18 February, EU Foreign Ministers agreed conclusions drawing together the EU’s reaction. The EU has agreed a range of political and practical assistance to Kosovo (deploying a police and rule of law mission and Special Representative; assisting with economic and political development). The conclusions noted that member states could decide on their relations with Kosovo in line with national practice.

On 18 February, the Foreign Secretary announced that the UK would recognise Kosovo as a sovereign, independent state. Over fifty coutries including the US, a majority of EU states and Serbia’s neighbours have now recognised Kosovo’s independence.

For more information please see the Kosovo Country Profile

INTERNATIONAL RELATIONS

Relations with the International Community

Following the events of October 2000, the authorities of the federal Republic of Yugoslavia (FRY) made great efforts to rebuild links with the international community that were destroyed under Slobodan Milosevic. Soon after the removal of Milosevic, FRY rejoined the United Nations. She also joined various other international organisations, including the IMF, OSCE and the Council of Europe.

In the UK, our assessment is clear: Serbia's future lies in its integration into Euro-Atlantic structures, and close relations with her neighbours and the international community in general.

Relations with NATO

The International Court of Justice (ICJ) 'Legality of use of force' case was brought by Serbia and Montenegro against 8 NATO member states (including the UK) for their role in the 1999 Kosovo conflict. In December 2004 the ICJ judged that it had no jurisdiction to hear the case as Serbia and Montenegro was not a UN member at the time and did not have access to the Court via any other legal avenue. The case was therefore dismissed.

The UK and NATO are committed to working with Serbia on defence reform. The UK has good bilateral military co-operation with Serbia and provides training and assistance to assist defence reform. In May 2003 NATO Allies agreed a Tailored Co-operation Programme for Serbia and Montenegro, which helped to prepare Serbia for PfP membership.

Serbia and Montenegro adopted a Defence Strategy in November 2004 and a White Paper in April 2005, making progress on defence reform. Separation from Montenegro triggered urgent changes in the structure of the armed forces. To date, both countries have handled the restructuring sensitively and maturely. In 2006 the Serbian government completed a Strategic Defence Review which committed Serbia to considerable restructuring which will prepare the armed forces for involvement in multilateral defence activity.

At the NATO Riga Summit on 29 November 2006, Serbia was invited to join the Partnership for Peace (PfP) program. PfP aims to promote regional stability by supporting defence reform and defence diplomacy activities between NATO Allies and PfP members. Allies decided to grant Serbia PfP to reflect the progress made on crucial defence reform issues - an area particularly relevant to NATO. We hope PfP will encourage and facilitate continued progress.

The UK remains firmly committed to the International Criminal Tribunal for the Former Yugoslavia (ICTY). Progress on full ICTY co-operation in Serbia remains essential. The NATO Communiqué makes clear that NATO will expect Serbia to co-operate fully with the ICTY and "will closely monitor their respective efforts in this regard".

Relations with the European Union

Serbia is a potential candidate country for EU accession. In its Feasibility Report in April 2005, the Commission judged that Serbia and Montenegro had made sufficient progress in meeting the prerequisites and developing the capacity to negotiate a Stabilisation and Association Agreement (SAA) with the EU Improved co-operation with the ICTY also contributed to this positive decision. The Council of Ministers subsequently approved the decision on 25 April 2005 and asked the Commission to prepare a negotiating mandate.

The EU formally took the decision to open SAA negotiations with Serbia and Montenegro at the General Affairs and External Relations Council (GAERC) on 3 October 2005 with the ceremonial opening of negotiations following on 10 October.

Official and technical rounds of negotiations followed every couple of months. The SAA creates a contractual relationship between a country of the region and the EU with clearly outlined responsibilities on both sides. As a result, the SAA negotiations remain dependent on continued co-operation with the ICTY, and the Commission has the option to disrupt SAA negotiations if cooperation with the ICTY is deemed insufficient.

On 7 June 2007 the Commission announced the resumption of SAA talks with Serbia, due to improved co-operation with the ICTY. On the 7 November the Commission initialled the SAA. The SAA was signed on 29 April 2008 at the GAERC in parallel with the Interim Agreement (IA) on trade and trade related issues.

Both agreements were however frozen from implementation on the EU part, while Serbia started implementing the Interim Agreement unilaterally. The implementation will start as soon as the European Commission decides that Serbia fully co-operates with the International Criminal Tribunal for the former Yugoslavia (ICTY). Serbia is also in the process of visa facilitation, which is expected by the end of 2009.

The UK remains committed to supporting Serbia's progress towards EU membership, subject to the necessary conditions being met.

EU Enlargement - Serbia

Council of Europe

The Council of Europe was set up in 1949 and works to promote democracy and human rights throughout its member states. On 3 April 2003, having satisfied the membership condition of adopting the Constitutional Charter, the State Unionn of Serbia and Montenegro (SaM) became its 45th member. The UK welcomed the accession.

Following the dissolution of the State Union, Serbia retained membership, and the responsibility to satisfy post accession requirements of all international organisations to which SaM belonged, including the Council of Europe.

On 11 May 2007, Serbia assumed the chairmanship of the Council of Europe’s Committee of Ministers. Its priorities for the six months were as follows:

• Promoting the core values of the Council of Europe: human rights, democracy and the rule of law.

• Enhancing the security of persons - especially combating terrorism, organised crime and corruption

• Building a more humane Europe - towards more active participation of all citizens

• Strengthening co-operation and good neighbourly relations through full respect of values and implementation of Council of Europe standards in South Eastern European countries, thus fostering the European perspective of the region.

Council of Europe

Relations with Kosovo

Kosovo declared independence from Serbia on 17 February 2008. On 18 February, the Foreign Secretary announced that the UK would recognise Kosovo as a sovereign, independent state.

Serbia does not recognise Kosovo’s independence and is seeking an advisory opinion from the International Coutr of Justuice (ICJ) on whether the declaration of independence is in accordance with international law. The hearing starts in December 2009.

Relations with the Neighbours

Serbia’s relations with her neighbours are complicated by the legacy of the 1990s. In recent years, regional relations have continued to steadily improve.

During a visit to the Bosnia and Herzegovina capital, Sarajevo, in November 2003, SaM President Svetozar Marovic publicly apologised ‘for any evil or disaster that any one from Serbia and Montenegro caused to anyone in Bosnia and Herzegovina’. He had previously made a similar apology during his September visit to Zagreb ‘for all the evils any citizen of Serbia and Montenegro has committed against any citizen of Croatia’.

On 11 July 2005, President Boris Tadic of Serbia was one of the regional and international dignitaries who attended the emotional commemoration of the tenth anniversary of the Srebrenica massacre.

On 10 September 2003, Croatian President Stjepan Mesic made a historic visit to Belgrade. It was the first visit by a Croatian head of state since the end of the wars in 1995. On 15 November 2004, the Croatian Prime Minister Ivo Sanader made an official visit to Belgrade, followed by a reciprocal visit to Zagreb by Serbian Prime Minister Vojislav Kostunica in November 2005.

The two men met again on 21 July 2006, when Ivo Sanader paid his second visit to Serbia. Both Prime Ministers stressed their countries’ joint future as members of the EU and looked forward to a steady improvement in bilateral ties.

On 24 June 2007, Tadic apologised to Croatian citizens for crimes committed in the 1990s war in that country. He said, 'that actions of former Bosnian Serb general Ratko Mladic represented one of “the darkest pages in the Serbian history.” '
Some issues still remain however, including the resettlement of Serb refugees in Croatia, the rights of the Croat minority in Serbia and the demarcation of the border between the two countries.

The October 2006 election campaign in Bosnia and Herzegovina saw a very public strengthening of ties between Serbia and Republika Srpska, culminating in the signing of a revised Special Parallel Relations Agreement in Banja Luka on 26 September.

However, both sides were careful to stress that the agreement in no way undermined the sovereignty, territorial integrity or political independence of Bosnia and Herzegovina.

In September 2007, Serbia ratified the Central European Free Trade Agreement (CEFTA) in Brussels. Discussions have been intense, particularly over the amount of tariff charges and excise duty Serbia would be allowed to charge on imported Croatian cigarettes. Serbia was concerned that the agreement would open its cigarette market while keeping Croatia closed to its producers. CEFTA is thus a free trade area between ten central and southeast European states, including Bosnia-Herzegovina, Montenegro, Croatia, Albania and Kosovo.

On 26 February 2007, the International Court of Justice (ICJ), the principal judicial organ of the United Nations, announced its judgment on the case filed by BiH against Serbia and Montenegro in March 1993, claiming violations of the 1948 UN Genocide Convention during the 1992-1995 Bosnian War. The ICJ found that Serbia had not committed genocide through its organs or persons and had not conspired to commit genocide, nor incited the commission of genocide.

However the court ruled that Serbia did not use its influence to prevent the genocide of Bosnian Muslims in Srebrenica in July 1995, and that Serbia’s ongoing failure to punish those who had carried out the massacre continues to represent a breach of their obligations under the Genocide Convention.
The ICJ reiterated that Serbia had an international legal obligation to immediately transfer Ratko Mladic and Radovan Karadzic (who was arrested in 2008) to the International Criminal Tribunal for the former Yugoslavia (ICTY) and to fully co-operate with the Tribunal. Members of the international community called upon both countries to respect the judgment and respond constructively.

Serbia's relations with the UK

UK representation in Serbia
UK Embassy in Belgrade

From October 2000 the FCO is funding various projects to support the Serbian anti corruption efforts, civil society, public finances monitoring, procurement procedures monitoring, independent media , human rights - through the Strategic Programme Fund - Reuniting Europe.

Further assistance is planned for Serbia under the government's Conflict Prevention Programme: supporting local democracy, encouraging unbiased media coverage of political developments and promoting truth and reconciliation between ethnic communities, especially in the South of Serbia and Sandzak regions. The FCO has also contributed a total of £500,000 to the work of the International Commission for Missing Persons on DNA laboratory analysis and exhumations.

Consistent with their Regional Assistance Plan the purpose of the DFID programme in Serbia is to enhance the effectiveness of the overall international community engagement in promoting and supporting poverty reduction in Serbia. DFID works to achieve this in three main ways:

• Trying to ensure that EU accession policies and processes recognise and support nationally owned pro-poor development strategies. This is achieved through dialogue with the European Commission, in their work with the European Agency for Reconstruction and in supporting implementation of Serbia's Poverty Reduction, Public Administration and Banking reform strategies.

• Working with other donors and the government to agree and implement a common agenda for improved aid effectiveness in Serbia. DFID provides support to the Serbian government's Development and Aid Co-ordination Unit and have a policy of working directly with other donors, ideally through harmonised joint funding arrangements in all interventions.

• Supporting efforts to reduce the potential for conflict. The Safety, Security and Access to Justice programme is DFID's component of the UK Governments Conflict Prevention Pool.

Department for International Development (DFID)

Cultural Relations

Vast majority of communications and public diplomacy activities in Belgrade is organised around important bilateral links and dates, WW1 anniversaries, visits of sports clubs, University, youth and scout groups, celebrations of British national days, public promotions of the FCO/Embassy funded projects across the country, joint programme activities with other EU MS embassies and the EC Delegation etc.

In 2007 the Embassy published a photo monograph book to mark 170 years of diplomatic relations between the UK and Serbia (Yugoslavia). More than 150 photographs from the Embassy collection, some even dating from the end of 19th and beginning of 20th century, were used to illustrate relations between the two countries. Two eminent Serbian historians, Chevening scholars, wrote the book preface.

On the same occasion the Embassy produced the documentary film “UK/Serbia: Partners Past Future”. The aim was to show different aspects of bilateral relations, i.e. co-operation in the fields of medicine, economy, culture, sports and education.
Every year, together with local authorities of several towns across Serbia (i.e. Mladenovac, Kragujevac, Vranje), the Embassy commemorates Scottish nurses and other members of the British Medical Mission who were helping Serbian soldiers and people during the World War I.

Four year in a row, EXIT music festival was the major consular challenge for the British Embassy in Belgrade, with around 10,000 British citizens making up by far the largest group of foreign guests. The Embassy established special Consular Team, in 2007, 2008 and 2009 respectively, which was on call in Novi Sad 24 hours a day. Furthermore, as part of the project, the Embassy set up the British Information Point (BIP), where distressed British citizens could seek first hand consular assistance or practical advice.

As a warm-up for the festival the Embassy, together with the Youth Cultural Centre CK13 implemented a project entitled “Enter UK: Days of Great Britain in Novi Sad” (for two years in a row). The main idea was to introduce local public with British social and cultural influences in Serbia. Issues of multiculturalism,(anti) racism, (anti) discrimination, football, fair play, (sub-) cultural influences, humour were addressed during two previous years.

In 2009 the Embassy provided technical support to the local police unit dealing with foreign citizens, and two senior officers visited colleagues in Avon and Sommerset Constabulary for the Glastonbury Festival shadowing exercise.

The first Chevening Alumni Annual Conference (CAAC) was held in April 2008. The goal of the Conference, which gathered around 50 scholars and fellows, experts in the field of law, economy, political science, media, culture and education has been strengthening of the Alumni (i.e. introducing Chevening of the Year Award) and developing plans for the future. Regional Chevening Alumni Conference was held n 2009 gathering representatives of 9 alumni organisations from SE Europe. In October 2008 Chevening Alumni celebrated the 10th anniversary of the scheme in Serbia and inaugurated annual "Chevening of the Year" award.

In 2009, for second time in a row, the Embassy, together with the British Council, organised the Chevening Outreach Programme in all university cities in Serbia. Aim of the programme is to encourage students from outside Belgrade to take an interest and apply for the scholarship.
Other British alumni groups in Serbia include LSE Serbia, the Oxford Club and the Cambridge Club. The Embassy, in co-operation with the Cambridge University Press, the British Council and the Cambridge Club Serbia, organised a major public event in the Ambassador's Residence in October 2009 to mark 800th anniversary of the University.
The most active local organisation working on promotion of bilateral links is the Anglo-Serbian Society (AnSeS). For 12 years in a row the Embassy has been supporting their International Summer School for Democracy, which is bringing together scholars, experts, youth leaders and activists from the UK, Serbia and SE Europe. The school was co-sponsored by the Hellenic Observatory of the LSE for the first time in September 2009.

“London 2012: See You in Four Years” event held in August 2008 in a Belgrade art pavillion, “Cvijeta Zuzoric”, was the official closing of Beta News Agency’s “Embassy of Games”, a month long project dedicated to the Beijing Olympics and agency’s recently launched video service. The Embassy used the opportunity to showcase London 2012 Olympics and announce further events the FCO have planned to organise ahead of this exciting global event, including "On the Road to London 2012" kids' drawing competition launched in October 2009.
Digital engagement is also a major part of Embassy's public diplomacy efforts. Web 2.0 tools/channels of the Embassy are: website (in English and Serbian), Ambassador's Blog at the FCO platform, Embassy Blog at the external blogging platform ("UKinSerbia" at the blog of the B92 Broadcasting Corporation), YouTube channel (embbg) and Flickr account (UKinSerbia). Whilst Ambassador's Blog at FCO is more directed towards British audience, explaining what are we doing in Belgrade, the UKinSerbia Blog at B92, is in Serbian, and is opening discussion on wide range of issues (politican, green, consular, defence...) with Serbian and regional bloggers.
One of very successful campaigns is EXIT 09 online campaign. Using all our Web 2.0 tools, in co-operation with the Consular Section of the Embassy and organisers of the Festival, we've advised Festival-goers how to enjoy, but be safe during one of the biggest European musical festivals.

Promoting the UK diversity the Embassy, organises topical activities to mark St David’s, St Andrew’s and St George’s Day . Some of the previous events involved elementary schools in different towns in Serbia, Roma organisations, media etc.

There are a number of Serbian organisations in the UK, for example, the Serbian Society, the Serbian Benevolent Society, the Novi Sad Association and the Association of Serbian Writers Abroad. The Serbian Orthodox Church has churches throughout England, including those in London, Birmingham and Oxford.

The British Council

The British Council is the UK’s international organisation for educational opportunities and cultural relations. This institution is an integral part of the UK’s international relations and their work supports and complements the diplomatic, developmental and commercial work carried out by other UK organisations and agencies. The British Council has been operating in Yugoslavia since 1940 and has an office in Belgrade as well as the other countries formed out of former Yugoslavia.

The UK’s priorities for South East Europe focus on building a secure neighbourhood for an effective and globally competitive EU. In order to contribute to attaining this goal, the focus of the British Council in Serbia is to support Serbia in its institutional reform, the development of skills for economic development and the development of a more inclusive society on its path to EU integration.

Serbian partners look to the UK and British Council for best practice and collaboration in the areas of education, culture and society. Young people look to the UK for education opportunities, for the development of their professional skills and for international experience and links. The work of the British Council earns trust and influence for the UK through facilitating the exchange of knowledge and ideas across cultural and geographical boundaries. Our country partners include ministries, University faculties, cultural institutions, British Embassy, NGOs, OSCE and business partners.

Activities in 2009/10 include

Raising the profile of science communication with national state TV

• Developing an optional MA subject in socially inclusive design with the Belgrade Faculty of Architecture
• Building the capacity and developing international links for young community leaders from South Serbia
• Creating VET institutional partnerships and training in entrepreneurial skills for schools students
• Sharing the UK experience of Social Enterprise for service provision and third sector sustainability
• Providing access to the best UK teacher training and language learning materials online under the umbrella of an MoU with the Ministry of Education
• Building links between young artists of former Yugoslavia and the UK
• Promoting the best UK design talent at Belgrade Design Week
• Managing over 5,000 UK examinations
• Administering Chevening scholarships

In 2008/09 the British Council engaged with 68 ‘leaders’ and 1,430 ‘influencers’. Its indirect, online and media reach was over 10 million people (including people reached more than once).

British Council bilingual website.

Inward Visits

29-30 June 2009 – Serbian Foreign Minister, Vuk Jeremic, visited London and met with Foreign Secretary David Miliband and Shadow Foreign Secretary William Hague. He discussed Serbia’s EU aspirations and regional cooperation issues. He also gave interviews to both The Guardian and The Daily Telegraph.
11-14 March 2009 – Serbian Deputy Prime Minister Bozidar Djelic visited London. He met with the Minister for Europe, Caroline Flint, and the Foreign Secretary, David Miliband where he thanked the UK for supporting Serbia’s EU ambitions. During his stay, he also visited several other departments, including the Department of Energy and Climate Change, The Department for Children, Schools and Families, and the Department of Innovations, Universities and Skills.
25-27 January 2009 – Serbian Defence Minister, Dragan Sutanovac, visited London, where he met with the Minister of State for Africa, Asia and the UN, Lord Malloch-Brown. He also had meetings with Secretary of State for Defence, John Hutton, and Minister of State for the Armed Forces, Bob Ainsworth. He visited Westminster Abbey, where he laid a wreath at the Tomb of the Unknown Warrior, and gave various interviews to the press.
18-19 September 2007 - Serbian Foreign Minister Vuk Jeremic visited London and met Foreign Secretary David Miliband. He addressed an audience of think-tank/media at Chatham House, called on the Foreign Affairs Committee, and had talks with the Prime Minister’s foreign policy advisor, Simon McDonald and at the Home Office with Meg Hillier, Under Secretary of State.
26-27 June 2006 – Serbian Prime Minister Dr Vojislav Kostunica visited the UK and met Prime Minister Blair, Lord Falconer, the Lord Chancellor and Secretary of State for Constitutional Affairs, and Minister for Europe, Geoff Hoon. He was accompanied by Minister for Economy Predrag Bubalo and Minister of Interior Dragan Jocic.
21 June 2006 – Serbian President Boris Tadic visited London and met Geoff Hoon, Minister for Europe.
13-15 June 2005 – Serbian Deputy Prime Minister Dr Miroljub Labus visited the UK and met with the Minister for Europe, Douglas Alexander, and the Deputy Prime Minister, John Prescott.
23 March 2005 – Serbia and Montenegro President Svetozar Marovic visited the UK for an audience with Her Majesty The Queen.
17-19 January 2005 – Serbia and Montenegro President Svetozar Marovic visited the UK as a Guest of Government. His delegation included SaM Foreign Minister, Vuk Draskovic; SaM Defence Minister, Prvoslav Davinic; and SaM International Economic Relations Minister, Predrag Ivanovic. The delegation met with Prime Minister Tony Blair; the Foreign Secretary, Jack Straw; the Defence Secretary, Geoff Hoon; Minister for Europe, Dr Denis MacShane; Minister for State for Foreign and Commonwealth Affairs, Douglas Alexander; Minister for Defence Procurement, Lord Bach. The delegation travelled to Edinburgh and met with the First Minister and the Presiding Officer of the Scottish Parliament, George Reid.
15-19 March 2004 – a delegation from the Serbia and Montenegro Inter Parliamentary Union led by acting SaM Parliamentary Speaker Milorad Drljevic visited Belfast and London. The delegation met Minister of State for Northern Ireland, Jane Kennedy, Parliamentary Under Secretary of State at the Department for International Development Gareth Thomas and Parliamentary Under Secretary of State at the Home Office Caroline Flint.
22 – 23 April 2002 – Serbian Prime Minister, Zoran Djindjic met the Prime Minister, the Home Secretary, the Secretary of State for Trade and Industry Dr MacShane and DFID Minister Hilary Benn. He was accompanied by Serbian Minister for Foreign Economic Relations Goran Pitic and Serbian Minister for Trade and Tourism Slobodan Milosavljevic.
28 – 29 November 2001 – FRY President Vojislav Kostunica visited as a guest of government and met HM The Queen, The Prime Minister and Secretary of State for Defence Geoff Hoon. He was accompanied by FRY Foreign Minister Dr Goran Svilanovic who held talks with the Foreign and FCO Parliamentary Under Secretary of State Dr Denis MacShane. He was also accompanied by Federal Minister for External Trade Mr Miroljub Labus.

Outward

12-13 October 2009 - UK Foreign Affairs Committee delegation visited Belgrade and had meetings with Deputy Prime Minister Bozidar Djelic and Foreign Ministry officials.
12-13 September 2009 - Baroness Taylor, Minister for International Defence and Security, visited Belgrade. She represented the Secretary of State at ‘Batajnica 2009’, an air show to commemorate the 100th anniversary of the Serbian Air Force. Baroness Taylor also met with Defence Minister, Dragan Sutanovac. Her visit helped stress the importance of the UK’s relationship with Serbia.
4-5 November 2008 – The Foreign Secretary, David Miliband, visited Serbia. He met with President Boris Tadic, Foreign Minister Vuk Jeremic Chevening Scholars and a cross section of post-graduate students from Belgrade Faculty of Political Sciences. He also gave interviews to the local media.
9-10 July 2007: The UK Parliament Foreign Affairs Committee (delegation) visited Serbia, meeting President Boris Tadic, Prime Minister Vojislav Kostunica, Deputy Prime Minister Bozidar Djelic, Foreign Minister Vuk Jeremic.
7 February 2007 - Minister for Europe Geoff Hoon visited Serbia, meeting President Boris Tadic, Prime Minister Kostunica and Foreign Minister Draskovic.
15 September 2005 - Minister for Europe Douglas Alexander visited Belgrade as part of a tour of the region. In Belgrade he met SaM President Svetozar Marovic, Montenegrin Prime Minister Milo Djukanovic, Serbian Prime Minister Vojislav Kostunica, Serbian President Boris Tadic, Serbian Interior Minister Dragan Jocic and Serbian Deputy Prime Minister Miroljub Labus.
30 November – 1 December 2004, Defence Secretary Geoff Hoon visited Belgrade. He met with SaM President Svetozar Marovic, SaM Foreign Minister Vuk Draskovic, SaM Defence Minister Prvoslav Davinic, Montenegrin President Filip Vujanovic, Serbian Prime Minister Vojislav Kostunica and Serbian President Boris Tadic.
On a visit to Belgrade Dr Denis MacShane, Minister for Europe met Boris Tadic, President of Serbia.
25 October 2004 – Minister for Europe Dr Denis MacShane visited Belgrade, where he met with Boris Tadic,Serbian President ; SaM Foreign Minister; Vuk Draskovic; Vojislav Kostunica, the Serbian Prime Minister; and Svetozar Marovic, the SaM President.
11 July 2004 – Baroness Crawley attended the inauguration in Belgrade of new Serbian President Boris Tadic.
21-22 April 2004 – Minister for Europe Dr Denis MacShane met SaM President Svetozar Marovic;, SaM Foreign Minister Vuk Draskovic and SaM Defence Minister Prvoslav Davinic on a visit to Belgrade. He also held meetings with Serbian Prime Minister Vojislav Kostunica, Deputy Prime Minister Miroljub Labus. Dr MacShane visited Belgrade's 17th Century Bajrakli Mosque, which was badly damaged by extremists in March reacting to the inter-ethnic violence in Kosovo.
5- 6 November 2002 – Foreign Secretary Jack Straw visited Belgrade and met FRY President Vojislav Kostunica, FRY Foreign Minister Goran Svilanovic and Serbian Prime Minister Zoran Djindjic. He also met Serbian Deputy Prime Minister Nebojsa Covic, Serbian Finance Minister Bozidar Djelic, Serbian Privatisation Minister Aleksandar Vlahovic and Serbian Minister of Energy Kori Udovicki.

GEOGRAPHY

The Republic of Serbia has external borders with Hungary to the north, Bosnia and Herzegovina, Montenegro and Croatia to the west and north-west; Romania to the north-east; Bulgaria to the south-east; and Kosovo and Macedonia to the south.

The landscape ranges from flat plains in the north to hilly and mountainous regions in southern Serbia.

TRADE AND INVESTMENT

Trade and Investment with the UK

UK Trade and Investment

Trade Statistics show Serbia’s foreign trade reaching a total of US$ 31.7 billion in 2008. Exports amounted to US$ 10.3 billion, which represents a growth of 28.0% over the previous year. The value of imports reached US$ 21.4 billion, which is 28.6% higher than in 2007.

Direct trade between the UK and Serbia in 2008 stood at approximately US$ 432.2 million (source – Serbian Statistical Office). UK imports from Serbia amounted to $152.3 million, while UK exports to Serbia totalled $279.9 million. It is worth noting that significant volumes of British exports to Serbia are routed via third countries and therefore not captured by direct trade statistics.

Major UK investment in Serbia occurred in 2003 with the acquisition of the second largest tobacco manufacturer by British American Tobacco for approximately €87 million. The UK ranks in the top 10 investors in Serbia with cumulative 2000 – 2006 investments amounting to over US$ 307 million. Numerous UK service providers are successfully doing business in Serbia in areas such as law, accountancy, real estate, construction, engineering, marketing and public relations.

POLITICS

Boris Tadic of the Democratic Party (DS) was re-elected President of Serbia in elections on 3 February 2008, narrowly defeating Tomislav Nikolic, then Acting Leader of the Serbian Radical Party (SRS), in the second round of voting: Boris Tadic 50.31%; Tomislav Nikolic 47.97%.

The parliamentary elections in May 2008 were brought on by the collapse of the Serbian government following the withdrawal of then Prime Minister Vojislav Kostunica's Democratic Party of Serbia (DSS) from the ruling coalition. The elections gave a thin majority to pro-European parties, led by Tadic's DS, with a decline in the number of deputies from the more radical and nationalist parties. The EU and Member States, including the UK welcomed the positive results for the pro-EU parties as a clear indication of Serbia’s desire for EU integration.

After the elections the major parties were engaged in tense coalition talks before a coalition government was finally formed on 7 July 2008. The coalition government is made up of the Democratic Party, under the leadership of Tadic, the Socialist Party of Serbia, led by Ivica Dacic, and G17 Plus under Mladjan Dinkic. Mirko Cvetkovic (DS) is the Prime Minister in this government, while the other ministries have been shared out between the coalition parties.

The results of the parliamentary election were as follows:

Party/Coalition Party Leader Parliament Seats % of Votes Cast:

Democratic Party (DS) Coalition* Boris Tadic 102 38.44
Serbian Radical Party (SRS) Tomislav Nikolic 78 29.36
Democratic Party of Serbia (DSS)/New Serbia Vojislav Kostunica 30 11.59
Socialist Party of Serbia (SPS)* Ivica Dacic 20 7.6
LDP Alliance Cedomir Jovanovic 13 5.24
Hungarian Coalition Istvan Pastor 4 1.81
Bosniak Ticket for a European Sandzak Dr. Sulejman Ugljanin 2 0.92
Coalition of Albanians of Presevo Valley 1 0.41

The parties that make up the Democratic Party Coalition are: DS, G17 Plus, SPO, SDP and LSV. The parties that participate jointly with SPS are: PUPS (Party of United Pensioner of Serbia) and JS (United Serbia).

September 2008 saw a bitter rift develop in the Serbian Radical Party over support for the SAA. Tomislav Nikolic made a break with party leader Vojislav Seselj, who remains in detention in the Hague, accused of war crimes. Nikolic's new Serbian Progressive Party quickly gained support, with more than 20 Radical MPs defecting and opinion polls showing constantly that the Party had similar levels of popular support to the DS.

The recent past

A landslide victory by the newly elected President Kostunica's DOS coalition in the Serbian Assembly elections in December 2000 saw Democratic Party (DS) leader Zoran Djindjic appointed as Serbian Prime Minister.

From 2001 until 2003, the DOS coalition government made good progress in building a democratic and stable future for Serbia. They implemented reforms in Serbia's administrative and legal institutions; devolved more power to the regions; brought stability to Southern Serbia (the Presevo Valley); and helped foster better relations with neighbours and the international community. Also the government's team of mainly young technocrat economists succeeded in reforming the banking system and tackling the inflation and currency instability that were a feature of life under Milosevic.

In March 2003 Prime Minister Djindjic was assassinated, and 6 months later the DOS lost its parliamentary majority. Early Parliamentary elections took place on 28 December 2003. Overall turnout was 58.8%, with the Serbian Radical Party winning most votes and gaining 82 of the 250 seats in government.

On 3 March 2004, the Serbian Assembly voted in a new minority government comprising the DSS, G17 Plus and SPO-NS, with support in the Assembly from the SPS. Former Yugoslav President Vojislav Kostunica was appointed Serbian Prime Minister.

Following Montenegro’s independence, Serbian Government got two new Ministries: Ministry of Foreign Affairs and Ministry of Defence
Serbian parliamentary elections were held on 21 January 2007 following Montnegro’s independence and the adoption of new Serbian Constitution. A coalition government was formed on 15 May 2007 between the Democratic Party (DS), the Democratic Party of Serbia (DSS) and G17PLUS. lus The leader of the DSS, Vojislav Koštunica, served as Prime Minister of this coalition government.

In June 2004, former SaM Defence Minister, DS leader Boris Tadic was elected President of Serbia. Serbia had been without an elected President since December 2002, when the International Criminal Tribunal for the Former Yugoslavia indictee Milan Milutinovic's term ended. Two sets of elections in 2002 and a third in 2003 were declared invalid because voter turnout failed to reach 50%. However in February 2004, the Serbian Parliament removed the 50% minimum turnout requirement and on 27 June 2004 Tadic was elected President with 53.7% of votes in a second round run-off. His SRS opponent, Tomislav Nikolic, won 45.0%. The turnout was 48.7%.

The Constitution

On 30 September 2006, the Serbian Parliament unanimously endorsed a new constitution for Serbia. This text was then put to a referendum on 28/29 October 2006.The electorate approved the new constitution with 53.04% voting in favour and the Parliament promulgated the new Constitution on 9 November 2006.

The Constitution contains some positive provisions on human rights and the protection of minorities. It is also positive that Serbia has decided to replace Milosevic's text in the former Constitution. But concerns have been expressed, including by the Venice Commission and the European Commission in its annual progress report on Serbia, about the transparency of the process by which the new text was agreed upon.

Following the endorsement of the Constitution by the Serbian Parliament on 09 November, President Tadic called parliamentary elections on 21 January 2007.

HUMAN RIGHTS

Following the fall of the Milosevic regime, the human rights situation in Serbia has greatly improved. Problems still remain, although many are typical of countries in political and economic transition. Serbia has ratified the majority of human rights related international conventions and since the separation from Montenegro, Serbia remains bound by these agreements.

Full and practical implementation of these legal provisions is now important. The authorities have made some progress. For example, new minority councils should be elected by the minoiry votes during 2010 for most of the major ethnic groups in Serbia, which provide a more effective means for minorities to raise issues of concern with authorities.

A Serbian Government strategy for tackling discrimination and better integration of the Roma community is also a positive development. The Serbian Government has also taken positive steps to address the inter-ethnic related problems in Southern Serbia.

We continue to encourage further efforts by the Serbian authorities in these and other areas. Establishing an independent judiciary, police reform, better accountability mechanisms for treatment of detainees by prison and law enforcement agencies, and combating human trafficking are key areas to address.

Serbia also needs to continue to tackle the problems associated with the conflicts of the 1990s, in particular improving the situation for refugees and internally displaced persons (IDPs), bringing to justice those who perpetrated war crimes of mass genocide and ethnic cleansing, and addressing the issue of 'missing persons'.

The UK regularly raises human rights issues with the Serbian authorities and continues to fund projects to help improve the human and minority rights situation, through FCO and DFID funding. In recent years we have funded a successful ‘tolerance' campaign by the former State Union Government; human rights awareness training for legal practitioners, journalists and local authorities; reconciliation related projects; the promotion of inclusive education for minorities; and improving the provision of legal advice for victims of trafficking.

ICTY

The International Criminal Tribunal for the former Yugoslavia (ICTY) was established in 1993 by the United Nations and is situated in The Hague in the Netherlands. It was set up through UN Security Council Resolution 827.

The objectives of the Tribunal are: to bring to justice those allegedly responsible for violations of international humanitarian law; to render justice to the victims of these crimes; to deter further crimes; and to contribute to the restoration of peace by promoting reconciliation in the former Yugoslavia. All members of the United Nations are legally obliged to co-operate with the ICTY.

On 10 April 2002, the Federal Republic of Yugoslavia (FRY) passed a law on Co-operation with the ICTY. Although not perfect, this law provided a framework for the Federal Republic of Yugoslavia's, and therefore Serbia's, co-operation with ICTY, which included the transfer of people indicted for war crimes the ICTY in The Hague and granting the ICTY full access to archives and witnesses in Serbia.
The law was amended on 14 April 2003 by the then Serbia and Montenegro government so that all indictees, regardless of the date their indictment, would be extradited to The Hague.

During 2004 Serbia's co-operation with the ICTY was poor. At her address to the UN Security Council in November 2004, ICTY Chief Prosecutor Carla Del Ponte said that Serbia was “the single most important obstacle faced by the Tribunal”. 2005 saw improved co-operation, with a number of transfers to The Hague, including high profile indictees such as Serbian Generals Vladimir Lazarevic, Sreten Lukic and Nebojsa Pavkovic, indicted for war crimes in Kosovo. This co-operation helped contribute to the positive outcome of the Commission's Feasibility Study in April 2005. But since April 2005 there have been few significant ICTY developments from Serbia, although Milan Lukic was detained in Argentina in August 2005 and transferred to The Hague in February 2006.

On 8 May 2006, following a series of negative reports from Carla Del Ponte about the level of co-operation from Serbia, EU Enlargement Commissioner Olli Rehn suspended Serbia's SAA talks. On 12 February, the General Affairs and External Relations Council, attended by the Foreign Secretary, welcomed the Commission’s “readiness to resume negotiations on a Stabilisation and Association Agreement with a new government in Belgrade provided it shows clear commitment and takes concrete and effective action for full co-operation with the ICTY”.

This remained the case until Serbia improved co-operation with The Hague, resulting in the restart of SAA talks on 13 June 2007. Key to this decision was the capture of ICTY indictee Zdravko Tolimir; who was arrested on 1 June 2007. Tolimir was indicted for his role in the genocide at Srebrenica and is charged with crimes against humanity, genocide, and war crimes.

On 17 June 2007, another ICTY indictee Vlastimir Djordevic was arrested in the Montengrine town of Budva. He was Assistant Minister at the Serbian Interior Ministry between 1997 and 2001 and was wanted for his alleged role in the displacement of 800,000 Kosovo Albanians in 1999.

On 12 October 2007, the Serbian Government offered a reward of one million Euros for the capture of war crimes fugitive Ratko Mladic The UK will continue to press Serbia to take the necessary steps in respect of the ICTY co-operation.

On 1 January 2008, Serge Brammertz officially became the fourth Chief Prosecutor for the ICTY.
On 11 June 2008, the Serbian authorities arrested Stojan Zupljanin on the outskirsts of Belgrade. Zupljanin was one of the four remaining ICTY indictees. He is accused of crimes against humanity and war crimes. Zupljanin has since been transferred to The Hague for trial.

On 21 July 2008, Radovan Karadžić, the former President of the Republika Srpska (Bosnia and Herzegovina) was arrested by Serbian authorities in Belgrade. He is charged with genocide; crimes against humanity; violations of the laws or customs of war and grave breaches of the Geneva conventions of 1949. Karadzic was transferred to The Hague on the 29 July 2008 for trial.

On 30 August, Karadzic refused to enter a plea, the court entered a plea of not guilty on his behalf. The trial is ongoing while Karadzic, who decided to defend himself, refused in the autumn of 2009 to appear before the court, and thus implementing the strategy Slobodan Milosevic used before him. The court appointed a lawyer to defend Karadzic while he is not present.

In 2009 the decisions of the European Commission on Serbia’s progress towards the EU still depend on the report by the Chief Prosecutor Brammertz on the report Serbia is making in the co-operation with ICTY. Serbia is expected to hand over two more ICTY indictees still at large: Ratko Mladic and Goran Hadzic.

The trial of former Yugoslav President Slobodan Milosevic

Former Yugoslav President Slobodan Milosevic is defending himself at the International Criminal Court in The Hague

The Serbian Authorities arrested Slobodan Milosevic on 1 April 2001 and he was transferred to The Hague on 29 June 2001. The ICTY issued three indictments against Milosevic for alleged war crimes committed in BiH, Croatia and Kosovo accusing him of crimes against humanity, grave breaches of the Geneva Conventions, violations of the laws and customs of war and genocide. His arrest and detention was one of ICTY's biggest achievements as he was the first head of state to face an international court since the Nuremberg Trials for the atrocities during WW2.

His trial started on 12 February 2002 with the prosecution presenting its case against Milosevic for alleged crimes committed in Kosovo, with the case for BiH and Croatia following on 26 September 2002. The ICTY prosecution finished presenting evidence against Milosevic on 25 February 2004. On 31 August 2004, the trial resumed with Milosevic calling evidence in his defence.

Milosevic represented himself in his trial, and the trial was delayed many times due to his ill health.

Because of this, in September 2004, the Trial Chamber assigned a defence counsel to represent him. Milosevic appealed this decision, and his appeal was upheld. However the Trial Chamber maintained the right to impose a defence counsel if Milosevic was unable to attend court.

The trial was due to last four years (until 2006), but Milosevic died unexpectedly in custody on 11 March 2006 of natural causes. His case was subsequently terminated. Milosevic's body was returned to Serbia where he was buried in his home town, Pozarevac.

The court transcripts of the Milosevic trial can be found on the ICTY website.

United Nations - ICTY

Other ICTY Indictees

The law was amended on 14 April 2003 by the then Serbia and Montenegro government so that all indictees, regardless of the date their indictment, would be extradited to The Hague.

On 1 January 2008, Serge Brammertz officially became the fourth Chief Prosecutor for the ICTY.

On 11 June 2008, the Serbian authorities arrested Stojan Zupljanin on the outskirsts of Belgrade. Zupljanin was one of the four remaining ICTY indictees. He is accused of crimes against humanity and war crimes. Zupljanin has since been transferred to The Hague for trial.

Further details of the indictments against both Stojan Zupljanin and Radovan Karadzic can be found on the ICTY website: www.un.org/icty

Serbia is expected to hand over two more ICTY indictees still at large: Ratko Mladic and Goran Hadzic.

Domestic War Crimes Trials

On 2 July 2003, the Serbian government passed legislation that facilitate trials of war criminals in Serbia for crimes committed in the former Yugoslavia, regardless of the citizenship of the perpetrator or victim. The law provides for an investigation unit, a special detention centre and a witness protection programme. On 22 July 2003, the Serbian Parliament appointed Vladimir Vukcevic as war crimes prosecutor.

The special War Crimes Court opened on 9 March 2004 when six Serbs stood trial accused of their alleged involvement in the Vukovar (Ovcara Farm) massacre in Croatia in 1991. In May 2004 a further 11 suspects were charged. On 7 Sept 2006, 14 were found guilty, including Sasa Radak, who was sentenced to 20 years’ imprisonment. On 14 December 2006, following appeals made by both the prosecution and the defence that the initial case had not been conducted properly, Serbia’s Supreme Court ordered a retrial of these 14 men.

In March 2004, a court in Belgrade sentenced an ex-police reservist to 20 years imprisonment for killing 14 and injuring five Kosovo Albanian women and children in March 1999. This was known as the Podujevo trial. The UK government assisted the Serbian judiciary by enabling the surviving victims, now living in the UK, to travel to Belgrade and give their testimonies at the trial. This was the first time non-Serb victims of war crimes had testified at a trial of this kind in Serbia. In late 2004 the Serbian Supreme Court ordered the retrial of this case due to 'gross violations of criminal procedure and witness interrogation provisions'. The Supreme Court confirmed the verdict in February 2006. Another four men suspected of the crime were arrested on 19 October 2007.

On 18 May 2006, the Serbian Supreme Court upheld the Belgrade District Court’s conviction of Milan Lukic, Dragutin Dragicevic, Oliver Krsmanovic, and Djordje Sevic of the "Osvetnici" (Avengers) armed group within the Republic of Srpska Army for the kidnapping and murder of 16 Bosniaks from the village of Sjeverin. This crime took place in Mioce, in Bosnia and Herzegovina, in October 1992.

On 18 September 2006 the War Crimes Chamber of the Belgrade District Court, presided by judge Olivera Andjelkovic, found Anton Lekaj, a former member of Kosovo Liberation Army, guilty of war crimes against the civilian population, and sentenced him to 13 years in prison.

On 10 April 2007 the Serbian War Crimes Chamber handed down verdicts on five members of a military unit, filmed executing six young Muslims near Srebrenica in BiH in July 1995. The Chamber sentenced two of the accused to 20 years in prison, one to 13 years (a reduced sentence in recognition of a guilty plea) and one to five years. A fifth person was acquitted and released.

The Chamber found that there was no evidence linking the actions of the military unit, known as "Scorpions", to Belgrade and that they had received their orders from the Commander of the Bosnian Serb forces Republika Srpska Army.

Local reactions to the verdicts were mixed, with some - including Serbia’s President Tadic - asking why the maximum sentences were not given. A leading human rights organisation disputed the judgement, claiming that the accused were part of a paramilitary unit linked to Serbia’s state security.

They also criticised the Chamber's ruling that there was no proven link between the crimes these men committed and the massacre of about 8,000 Bosnian Muslims in nearby Srebrenica, which also took place in 1995.

The UK supports all efforts to bring those responsible for war crimes to justice as part of the process of regional reconciliation.

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