Description
Serbia’s path toward EU accession requires harmonization with the EU acquis on competition policy, including state aid regulation. State aid in Serbia had historically been used to sustain large, often uncompetitive industrial systems, delaying structural transformation. This created challenges for attracting sustainable FDI, integrating with local SMEs, and ensuring long-term development benefits.
CEVES's Role
Produced an in-depth policy paper analysing the effectiveness of state aid in Serbia, drawing on comparative EU experiences. The team engaged with the State Aid Control Commission, Development Agency of Serbia, Chamber of Commerce, World Bank, EBRD, and multinational companies, combining desk research with stakeholder consultations and firm-level interviews.
Key results
• Showed that EU state aid rules can expand Serbia’s policy space rather than restrict it.
• Developed a typology of foreign firms and assessed their varied development impacts.
• A typology of foreign companies was developed and their varying development impacts assessed.
• Provided best-practice models from EU countries as guidance for Serbia.
• Recommended stronger institutions and integration of state aid into a broader development strategy.
Follow-up: Regional Project on State Aid and FDI in the Western Balkans (2024)
Building on the Serbia-focused BTD Policy Paper, CEVES joined Finance Think and other regional partners in a follow-up initiative covering all six Western Balkan countries. The project enhanced transparency and fostered regional coordination of state aid and FDI policies through comparable data, analytical frameworks, and a high-level Regional Forum.
