Mr Olivér Várhelyi's speech at the signing ceremony of a Memorandum of Understanding establishing the European Council of Chambers of Commerce and Business Associations in Serbia

Signing ceremony of a Memorandum of Understanding

Dear Ministers, dear Ladies and Gentlemen, Ambassadors,

I am very happy to be part of this event today because I think this marks a significant moment of Serbia's EU aspirations. It not only demonstrates the very strong economic and trade ties between the EU and Serbia, but it also shows that the businesses from Europe are also gearing up for Serbia to become an EU member in the very short future.

Over two thousand European and Serbian companies, are gathered in thirteen business associations, representing sixteen countries and they have all come together to create this, the Council of European Chambers of Commerce and Business Associations in Serbia.

Companies, originating from all across the European continent, companies which provide countless jobs - I do hope will continue to create more and more jobs as we move along - and they have already invested billions of euros into the Serbian economy directly. They have also united around a shared objective, which is to accelerate Serbia's economic development and Serbia's membership into the European Union.

EU companies are part of Serbia's economic DNA by now: the EU investment footprint and trade relationship directly benefits Serbian citizens, employees, customers and also boosts the Serbian economic growth.

Now we see a Serbia, which is completely different if we look back on it 10 years. Serbia has doubled its GDP. Serbia is becoming an excellent hub for foreign direct investment. Serbia is having the lowest ever unemployment rate that we have seen. Serbia has been successful in reducing its sovereign debt.

So, I think that the economic success of the country is not only visible, but dare I say, now it is becoming its trademark. But for this to turn into the next level of success, meaning becoming a member of the European Union, now we need even more Serbian companies to produce, to innovate and export goods and services to the EU. This should be the result of Serbia's resilience, resourcefulness and craftsmanship. Because Serbia, its products and its people are an integral part of the European economy by now.

The numbers are very clear. The EU-Serbia trade in goods has reached by now EUR 40 billion a year. Serbia's exports to the EU increased sixfold over the previous 15 years, from EUR 3.2 billion back in 2009 to over EUR 18 billion last year. EU companies have invested EUR 20.5 billion in Serbia between 2010-2022. This is over 60% of all investments in Serbia.

This is of course not a coincidence. It is the result of Serbia's status as a candidate for EU accession, hard work on all sides and close cooperation between the Serbian Government, the European Commission, the EU Member States and the private companies through a joint approach to bring Serbia in to the real integration, into the European Union.

We have seen new roads, railways, improvements to the regulatory environment, rapid digitalisation is unfolding, growth of renewables – we just signed another project of renewable energy - and much more; changes that contribute to the creation of a stable and sustainable foundation on which a vibrant and competitive economy has grown and can grow even further.

But we are not there yet. There is still a lot to be done and this work needs to continue, and it needs to continue in the right direction. Both in terms of boosting the economy and in accelerating the EU integration. In fact, the two go hand-in-hand.

Serbia's GDP currently stands at 44% of the EU's average GDP per capita. At the same time EU enlargement is a priority and is at the top of the EU's agenda now. That is why the European Commission has put an unprecedented offer on the table: the EU Growth Plan. The EU Growth Plan offers to bring the region into the EU Single Market and deepen the regional economic integration of the Western Balkans at the same time.

In addition, the Growth Plan is going to unlock an additional EUR 6 billion of support, split into EUR 2 billion of grants, and up to EUR 4 billion of loans, for the region as a whole. The financial support is linked to the delivery of reforms set out in country-specific reform agendas that are now being negotiated. I hope very much that we will have those approved very-very soon.

What does this mean for the businesses in practice? I want to give you just a few examples. The early integration of Serbia into the EU Single Market could mean already this year the introduction of the Single European Payment Area (SEPA) in Serbia. That would significantly reduce the cost of doing business for European businesses in Serbia and for Serbian companies trading with Europe. We want to see reduced waiting times at the borders through the so-called Green Lanes, the reduction of roaming charges, the agreements on conformity assessment for specific industrial products and the recognition of skills and qualifications.

The list is extremely long but we are looking at you, the businesses, to complete this list because we are here to deliver Europe even before Serbia joins. So, any suggestions you may have, which will help to do business in Serbia for European and Serbian companies alike through the early integration of Serbia's economy, is the way to go and our priory for the next years to come.

We are convinced that the Growth Plan should bring direct benefits to Serbian citizens, and businesses, and our businesses which are present in Serbia. It will unlock the region's and Serbia's growth potential, with the objective to promote the economic convergence much faster and even ahead of joining the European Union.

It will of course only happen if our business and you are successful. It will only happen if the business community will make itself part of this. And it will only happen if the Government makes all the right decisions for the businesses to be part of this.

I think that we are at the beginning of taking these steps and we are also trying to address the market distortions, to ensure that companies compete on an equal basis, and we will promote an approach that channels economic resources in the most efficient manner to move Serbia even further on the EU path.

That is why I am happy to see that the businesses have already understood the sign of the times. Which is that you are cooperating, you are uniting your forces in making Serbia a successful new member of the European Union.

I want to wish you well; I want to offer you our cooperation and support for this initiative and I really count on your contributions when it comes to making the Growth Plan successful.

Thank you!