Serbia Outlines New Austerity Reform Package

Serbia has announced plans to cut public sector wages by as much as a quarter, as part of wide-ranging austerity measures.

The reform package also includes raising taxes and slashing subsidies for loss-making companies.

Finance Minister Lazar Krstic said Serbia would be bankrupt within two years if it did not take action now.

The country is mired in a deep recession, with 25% of the workforce unemployed.

Mr Krstic unveiled the measures during an open session of government in Belgrade.

“Even though these reforms, which some people would say are 20 years overdue – I’d say they’re at least 10 years overdue – we can carry them out in a responsible way,” he said.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza