Foreign Correspondence

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Government will not allow hyperinflation, jeopardy of citizens’ living standards

Belgrade, Dec 25, 2008 – Serbian Prime Minister Mirko Cvetkovic stated today that the
government will not change its mind on the postponing the implementation of the General
Collective Agreement as it is resolute to preserve the economic stability in the country.


Photo: Tanjug

Cvetkovic told agency Tanjug that the government needs to take care
of all citizens of this country and must not allow the 1990s to repeat.

The Prime Minister reiterated that the government will not allow hyperinflation and mass loss of jobs to happen.

Following the announced protests of trade unions, the Prime Minister said that the salaries are not provided on the street.

No new value can be created on the street, nor can salaries be provided there. Only
chaos, hyperinflation and dismissal of workers can happen on the street, he reiterated.

Cvetkovic explained that employers will decide on the implementation of the General Collective Agreement.

Cvetkovic reiterated that the public is well aware of the fact that employers are
interested in withdrawing their signature from the General Collective Agreement and Annex.

In other words, unlike the government that advocates postponing the implementation of the collective
agreement in the public sector, employers have taken a much severe stance, that is, they demand
the contract to be withdrawn and new talks begin on it because of the new situation, explained Cvetkovic.

The Social Economic Council will soon convene and if employers persist
with their proposal, we will be in huge trouble, warned the Prime Minister.

He stressed that an even more serous dilemma would arise in that case, and that is whether
to freeze the implementation of the collective agreement or allow employers to back out of it.

Cvetkovic said that the unions are not aware of the seriousness of the problem,
adding that there are hundreds of letters from employers stating they want out of
the collective agreement, including domestic entrepreneurs and foreign investors.

We must prevent hyperinflation. This is not just the issue of whether the state will behave in a certain way, but
of what will happen if foreign investors back out when they see that they are not making a profit, he stressed.

The Prime Minister concluded that Serbian citizens must be aware of the fact that this is not only
about the good relations between unions and the government, but about the complex relation
between workers and employers, in which the government has a double role as it determines
the salaries in the public sector and also regulates economic movements in the country.

Therefore, the government will not allow anything that might lead to
hyperinflation and jeopardise citizens’ standard, reiterated Cvetkovic.

http://www.srbija.gov.rs/vesti/vest.php?id=52039