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SERBIA
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Due to the war and
the associated destruction of the infrastructure and industry following the
decay of former Yugoslavia, the economic capacities of the region were cut
in half and made the former Yugoslavia, which before exhibited the best
economic numbers in South-east Europe, the tail light of the region in the
period of 1990 to 2000. With the end of the military conflicts and the
disempowerment of Slobodan Milosevic in October 2000 the reintegration of
the region into the international community was started. The privatisation
process was started in Serbia by end of 2001 and is carried out to a substantial
part today.
Emphasis of the future efforts of the European Union as well as the local governments will be the further stabilization of the region, an appropriate adjustment of the legal rules to western standards and particularly the reconstruction of the infrastructure. Although large support from international donor organizations such as IBRD and EBRD is assigned to the region already today, the international interest will be directed towards the adjustment and integration of this last group of states remaining within Central Europe into the community of the European states. The expected support resulting from this international interest let count on a fast economic recovery. From today's view the given opportunities, like in particular the cheap entry prices for this market and the extraordinary tax situation (a flat corporate income tax of only 10%), outweigh the still existing risks, especially the fact that the political structure is not yet strengthened.
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