Meeting of the Working Group of the National Convention on the EU for Chapters 4 and 9 was held

The meeting of the Working Group (WG) of the National Convention on the EU for Chapter 4 (Free movement of capital) and 9 (Financial Services) was held today on the premises of the European Policy Centre – CEP. In the opening presentation, WG coordinator, Vida Uzelac, informed the present members about the results of the talks with the representatives of the EU Delegation in Serbia and the coordinators of negotiation chapters 4 and 9 in the Ministry of Finance. At the meetings with the representatives of the mentioned institutions, the current situation in the area of free movement of capital and financial services was analysed in light of the preparations for the European Commission (EC) Progress Report Serbia for 2023. It was established that, since the opening of both chapters in 2019, limited progress had been achieved in both areas. Still, in the meantime, the regulatory framework has been improved by adopting several laws, primarily the Capital Markets Act of 2022 and Digital Assets Act of 2020 and by-laws, which enable their implementation.

The focus of the discussion of this meeting of members of WG 4 and 9 was the capital market – with the adoption of the Strategy for the Development of the Capital Market for the period 2021-2026 and the Law on the Capital Market in 2022, which entered into force in January 2023 and is aligned with acquie and Stabilisation and association (SAA) agreement, some progress was made in fulfilling the obligations that Serbia undertook in the process of accession the EU. After adopting the Law, the competent institutions / the Securities Commission, the Stock Exchange and the Central Registry of Securities / have adopted about twenty acts harmonised with the new law and enable its implementation.

Serbia’s capital market is underdeveloped because almost no one uses it, and therefore the institutional framework is weakened. It is necessary to strengthen further the institutional and administrative capacities of the Central Registry of Securities, and all institutions responsible for the capital market for these purposes, a loan for 27 million euros was approved by the Ministry of Finance, and the implementation will begin immediately after the signing of the contract in April 2023.

It was concluded that the Working Group would continue intensive monitoring of these areas, further strengthen cooperation with civil society and be a constructive partner to the competent institutions.

It was also agreed that the next meeting of WG 4 and 9 will be held in May 2023, at which the preparation of attachments for the Book of NCEU recommendations for 2023 will be discussed.