Serbia votes in snap polls amid economic gloom

(BELGRADE) - Serbians voted in snap polls Sunday, with the ruling centre-right SNS party tipped to cement its grip on power on promises of economic reforms that would help lead the Balkan country into the EU.

With ballooning public debt, a bloated public sector and record unemployment, the dire state of the economy has eclipsed the thorny issue of Kosovo as the key voter concern.

The outgoing SNS-dominated cabinet, led by Socialist Prime Minister Ivica Dacic, won support from Brussels to begin membership talks only after a historic accord with long-time foe Kosovo last year.

The Serbian Progressive Party (SNS) and its leader Aleksandar Vucic -- tipped to become the next premier -- called early polls in order to win a new mandate to push ahead with economic reforms.

"I want Serbia to pursue a fierce battle against corruption, develop its economy, increase the number of jobs, and for this we need difficult and painful reforms," said Vucic, an ultra-nationalist hawk turned pro-European.

"It will not be easy at all. Thousands of other problems must also be solved," he said after casting his ballot.

Though the SNS won most votes in 2012 elections, the post of premier was given to its Socialist coalition partners.

The SNS's popularity is largely thanks to Vucic's high-profile anti-graft drive that led to the arrest of several tycoons and former ministers.

Long seen as a pariah for its role in the 1990s Balkan wars, Serbia -- the largest country to emerge after the break-up of Yugoslavia -- hopes to join the 28-member EU by 2020.

Kosovo, once the most sensitive issue in Serbia which still refuses to recognise its 2008 declaration of independence, has been overshadowed by the state of the economy in the country of 7.2 million.

A fifth of the workforce is unemployed and the average monthly salary is 350 euros ($480).

- Grey economy -

Many Serbs, such as 45-year old textile worker Jadranka Milosavljevic, moonlight in the so-called grey economy, with no health or social benefits.

"Ordinary people will see no change. Look at me, it's Sunday, and I'm on my way to my second job to try to make some money for my family," she said.

With public debt swelling to more than 60 percent of GDP, the next government will have to reform obsolete labour laws and cut down on bureaucracy, analysts say.

Serbia's eight billion euro ($11 billion) budget is struggling to cope with 1.7 million pensioners and a bloated public sector that employs more than 700,000.

The future government will have to push through a stringent austerity package, including the privatisation of more than 170 state-owned companies, subsidy cuts and tax increases in a bid to reduce spending and get people back to work.

But 64-year-old pensioner Borivoje Mikic said he expected no change.

"The barn is the same, only the animals in it change," Mikic said.

Despite the gloomy economy, the SNS is riding high in opinion polls with 44 percent voter support.

Unemployed bank clerk Olga Petrovic, 52, said Vucic and his party offered "the first glimmer of hope".

"I know we will have to survive painful times, but at least I see a light at the end of a tunnel."

But 68-year-old retired engineer Bojan Popovic said he had voted for the opposition "for a change".

"The government has so far been only advertising its moves, the arrests of tycoons, criminals, that's all fine, but we haven't seen any results."

By 1300 GMT some 28.3 percent of 6.7 million registered voters cast their ballots for a new 250-seat parliament, electoral officials said.

Analyst Marko Blagojevic said turnout was likely to be down because "opposition voters were not motivated to vote" given pre-election surveys forecasting a landslide victory for the SNS.

The Socialists are ranked second in opinion polls with 14 percent, ahead of the opposition Democratic Party with 11 percent.

"I am convinced that citizens will turn away from the false promises" of the SNS, Democratic Party leader Dragan Djilas said.

The Democrats, failing to find common ground with other opposition parties to fight the SNS, have set their sights on winning back control of Belgrade city hall in municipal polls also being held Sunday.

Polling stations close at 1900 GMT. Preliminary results are expected early Monday, with final results by March 20.