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EU hopes, economic woes key as Serbs go to polls

13 March 2014, 11:38 CET
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EU hopes, economic woes key as Serbs go to polls

Alexandar Vucic - Photo EU Council

(BELGRADE) - Serbs will vote in snap polls on Sunday with the ruling Serbian Progressive Party (SNS) tipped to capitalise on a wave of public support after opening membership talks with the European Union.

Some 6.7 million voters will elect new deputies for the 250-seat parliament in early legislative elections called by the SNS after Brussels opened accession talks with the Balkan country on January 21.

The centre-right SNS, the senior partner in the outgoing government led by Socialist Prime Minster Ivica Dacic, is riding high in the surveys, with 44 percent of voter support.

But observers warn that whoever is tasked with forming the next government will face an uphill battle to fix the ailing economy in Serbia -- the largest country to emerge after the bloody 1990s break-up of Yugoslavia and where a fifth of the workforce is now unemployed.

The SNS owes much of its current popularity to a high-profile anti-graft drive by party leader and powerful deputy Prime Minister Aleksandar Vucic, which has led to the arrests of several tycoons and former ministers.

"Corruption is suffocating Serbia, its politics, administration and justice, hampering economic progress and chances to implement reforms," Vucic told a recent election rally in Belgrade.

Tipped to become prime minister, Vucic -- once a fierce ultra-nationalist -- has also bolstered support by embracing the path to the EU, saying he wants to transform Serbia "into a modern European society".

Once seen as a pariah state, Serbia is now hoping to join the European Union by 2020, after reaching a historic Brussels-brokered accord with its long-time foe Kosovo last year.

"Vucic's omnipresence and a weak opposition can explain why the SNS ratings are high, despite the dire economy and the rise in unemployment," said analyst Zoran Stojiljkovic.

According to voter surveys, the Socialists, who joined forces with the SNS after general elections in May 2012, are polling second with 14 percent while the opposition Democratic Party is trailing behind with around 11 percent support.

- 'Can't wait for miracles' -

A convincing win at the ballot box would give the SNS a strong mandate to push through a package of painful austerity measures.

"The future government will have to take the bull by the horns: how to create jobs in the country," said analyst Vladimir Goati.

The unemployment rate stands at 20.1 percent in the nation of 7.2 million and many are stuck in the so-called "grey economy", where salaries are often delayed and there are no health or retirement benefits.

Those lucky enough to have a job struggle to survive on an average salary of 350 euros ($480) a month.

For some, the election comes too late to offer the prospect of progress.

Vera Peruncic, a 34-year-old graphic designer, says she has lost all hope after five years of job hunting.

"We have been listening to the same fairy tales for years and I have no time left to wait for miracles," said Peruncic, who is readying to leave her homeland to look for a job in Germany.

Amid a national mood of economic gloom, Serbia suffered another setback in January when ratings agency Fitch downgraded the country from "BB-" to "B+", blaming weak enforcement of tax collection and weak political will to introduce unpopular structural reforms.

Looking at the most urgently needed reforms, experts say Serbia's future cabinet will have to change obsolete labour laws, privatise dozens of state-owned companies, improve poor infrastructure and cut down on red tape.

Another key challenge will be to slash a bloated public sector that employs more than 700,000 people, almost half of Serbia's working force, suffocating its 8-billion-euro budget ($11 million).

"To do that, (the new government) will need political skill, acumen and fierce determination to reform," said economic analyst Borislava Ilic.

Polling stations will open at 0600 GMT and close 13 hours later with hundreds of international and local observers monitoring the vote.

Preliminary results are expected early Monday, with final results due by March 20.

Voters in the capital Belgrade will on Sunday also elect city hall deputies, where the opposition Democrats are hoping to win back control.

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