Question European funds it is no longer just a political issue, but a question of economic stability and the future standard of living of citizens Of Serbia, assessed Jovica Pejčić from the Faculty of Economics in Subotica, adding that their freezing would cause serious consequences for economic growth, investments and the standard of living of citizens.
In his analysis, Pejčić pointed out that Serbia is economically strongly linked to European Union (EU), which participates with more than 60 percent in the total foreign trade exchange and is by far the largest source of foreign investments and development capital, announced the Academic Plenum, of which Pejčić is a member.
According to him, in the conditions of already existing energy shocks and global instability, additional tightening of economic relations with the EU could lead Serbia to a period of slow growth and a new wave of inflation.
"Competent economic institutions are already warning that in the coming period there could be a slowdown in economic growth, a rise in prices and a breach of monetary inflation targets," said Pejčič, stating that in practice this means that during this year citizens could face a significantly more expensive life, while opportunities for new employment would become fewer and fewer.
He added that a smaller inflow of European capital would mean less investment, a slowdown in infrastructure projects, a drop in economic activity and an additional increase in economic uncertainty, while at the same time, any serious disruption of relations with the EU would increase the country's risk, make borrowing more expensive and further weaken investor confidence.
Source: FoNet
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