Massive citizen dissatisfaction, sanctions against NIS and the collapse of a foreign policy in which Vučić wanted to be on good terms with all corners of the world... these are the reasons for Serbia's economic stagnation, writes the Frankfurter Allgemeine Zeitung (FAZ).
Massive citizen dissatisfaction, sanctions against NIS and the collapse of a foreign policy in which Vučić wanted to be on good terms with all corners of the world... these are the reasons for Serbia's economic stagnation, writes the Frankfurter Allgemeine Zeitung (FAZ).
Serbian president Aleksandar Vuiqi. has never been under such pressure as today, FAZ estimates, as reported Deutsche Welle (DW) .
Part of Vučić's problems, the newspaper writes, are of an economic nature and this has to do with the framework set by the US President, Donald Trump .
"According to economists' unique estimates, Serbia's economic growth will be halved by 2025, foreign investments have fallen, domestic consumption is slowing," the newspaper writes, adding that Vučić is also concerned by the student protests.
"In foreign policy, the wavering policy of this EU candidate is increasingly being crowned, that fragile balance based on good relations with Moscow, Beijing, Washington and Brussels. And this has serious consequences for the domestic economy," FAZ adds.
US sanctions affect in the Oil Industry of Serbia (NIS), which is largely owned by Russia.
“The US, which wants to curb Russian energy exports and thus weaken Russia’s war economy, is demanding that Gazprom withdraw. But the Russians don’t want to sell. This puts Vucic in a difficult situation.”
Vucic tried to avoid the problem by having good relations with Trump. It is no coincidence, the newspaper estimates, that Trump's son-in-law, Jared Kushner, should have received the right to build on the territory. of the General Staff in Belgrade by means of a special law.
But the deal fell through when Kushner backed out due to public protests and a lawsuit against Culture Minister Nikola Selakovic.
"Kushner's withdrawal wasn't the only problem. A few days later, the US banned the import of tires from the factory." Linglong in Zrenjanin, which belongs to Chinese investors (…) Serbian exports to the US remain burdened by an extremely high tariff of 35 percent. This is unlikely to change because the US ranks Serbia among countries with large deficits in the areas of democracy, free elections and the rule of law.”
In this situation, writes the Frankfurt daily, the news that the US has approved NIS to operate without sanctions until January 23, which puts the refinery in Pancevo back into operation, was received with great pleasure by the Serbian authorities.
Speculation has been fueled that Hungarian Prime Minister Viktor Orbán is behind the approval, which brings back the theory that Hungarian MOL may buy Gazprom's shares in NIS. The Abu Dhabi concern ADNOC is also mentioned.
The article recalls that Moscow reacted negatively to previous signals that Serbia could nationalize NIS and that President Vladimir Putin reminded Serbia its "obligations" from the contract.
"It is interpreted as a threat that Russia has extended the contract for gas supplies to Serbia for only three months, until the end of March 2026," the newspaper writes.
"Relations between the two fraternal Orthodox nations have been troubled before, when Moscow sharply criticized the sale of Serbian ammunition." in Ukraine "This arms export, which was praised by the West, was completely banned by Vučić this summer, which was interpreted in industrial circles as a lack of credibility on the part of Belgrade," FAZ adds.
The newspaper writes that Belgrade's relations with the EU as its largest trading partner and investor are also troubled - no new negotiating group was opened and Vučić avoided going to the EU-Western Balkans Summit at the end of the year.
In addition, China does not announce any new economic activities in Serbia.
"Domestic protests against Vučić's government, external economic pressure, a bad environment and insecurity - all of this is having a negative impact on the development of the economy of this country of 6.5 million people," the newspaper writes.
The forecasts are bleak, it concludes. Frankfurter Allgemeine – foreign investments halved, decline in the construction sector, weak domestic demand and growth of only two percent for 2025.
For this year, it is estimated at less than three percent, although the National Bank of Serbia is optimistic and announces 3.5 percent./TheGeoPost.
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