Serbian Deputy Prime Minister for EU integration, Bozidar Djelic, gave a speech, at the opening of the first EU information centre at the Svetozar Markovic university library, to a group of people supposedly calling on them to be open to the world, and, most importantly, learn to embrace the potential of the EU integration.
So, let’s go to the details. So, while Djelic says: “Any idealism about the EU would be out of place because EU integration is a process which forces each country to realise its potential” This is a common myth about the EU integration. That sounds nice, but ignores the unintended consequences. First, you have to set up a huge bureaucracy to manage this process — and it is quite a process. Next, it seems that it’s the EU integration process which forces each country to dilute its dynamism in excessive regulations, taxes and social contributions. Finally, and most importantly, these regulations would harm the Serbian economy. For example, Serbian industries would be hit particularly hard when having to comply with the EU legislation. All firms in Serbia would have to comply with the Single Market legislation even if they had no intention of exporting their products. Yet, only a tiny percentage of our output is sold abroad, under half of which goes to the European Union. Despite this Serbia would have to suffer the triple torture of more red tape; the burden of harmonisation on businesses, making it harder for many of them to export.
He also says: “there is no place for euro-scepticism, which is just an attempt to isolate the country.” We already had a post discussing how we find it troubling that Serbian politicians assumed that outside the EU, Serbia would have less political influence in Europe. Well, here we go again. Serbia’s European integration is not open to debate, it’s a done deal, there is no place for euro-scepticism. In the Serbian lexicon, the word “debate” can only mean discussion about how Serbia’s European integration is to be completed, the ultimate objective being Serbia’s EU membership. As far as I can remember, we have been told that Serbia must join the EU because we are “too small to survive on our own”. But this argument simply does not stand up. If 7.6 million Swiss, 4.6 million Norwegians are able, outside the EU, to enjoy the highest standards of living in Europe, how much more could 10 million Serbs achieve?
Bozidar Djelic later says: “the EU has succeeded in establishing lasting peace in Europe, adding that EU membership for Serbia and its neighbours will guarantee lasting stability for the region.” This is undeniably true. A greater European unity during the cold war established peace in Europe. What Djelic doesn’t realize is that the situation has not only changed but actually reversed. With huge protests and riots in France, Latvia, Greece, Bulgaria, it’s clear that nowadays the European Union doesn’t bring ‘peace’ and stability.
He later says: “the past eight years the EU has given Serbia non-repayable funds of €2.5 billion, and according to the financial programme signed in 2007 Serbia will get another €1 billion in assistance over the coming years.” Of course, we’ve read this all before. When you look at the actual details, you see that within the framework of IPA funds, Serbia will annually receive nearly €190 million. In other words, the EU is going to reduce its assistance to Serbia. What Djelic does not say is that Serbia started the implementation of the trade-related section of the Stabilisation and Association Agreement (SAA) with the Union a few days ago, and that the cost will be enormous: annual losses from tariff cuts of €230 million for Serbia. In a way, Serbia is not a net recipients of EU funds, but a net contributor to the EU giving more than it would receive (for self-promotion of certain politicians or political opinions). As we enter what looks like the most serious economic crisis since 1929, it seems that membership of the European Union is a luxury that Serbia simply cannot afford. If Bozidar Djelic really believes that Serbia’s integration in the EU is in the interests of the Serbian people, at least he should commission an independent cost/benefit analysis to demonstrate the economic effects of Serbia’s EU integration.
