Under article 204 of the Rules of Procedure, the Speaker of the National Assembly, Prof. Dr Slavica Djukic-Dejanovic, set 2 June 2009, starting at 12 p.m., as a Day to respond to deputies’ questions regarding the current issues: “Dispatching and involvement of professional members of the Serbian Army, civilian defence personnel and employees of administrative organs of the Republic of Serbia into peace operations and other activities abroad”, proposed by the Serbian Radical Party Deputy Group, “Establishing the responsibility of Deputy Prime Minister Bozidar Djelic and Minister of Foreign Affairs Vuk Jeremic as state officials most responsible for the halt of European integrations and visa abolition process”, “Reasons for the blockade of European integrations and evaluation of steps planned by the state authorities” and “Implementation of specific and swift state policy measures for deblocking the European integrations process and visa abolition of citizens of the Republic of Serbia”, proposed by the Liberal Democratic Party Deputy Group.

Bozidar Djelic, Deputy Prime Minister and Dragan Sutanovac, Minister of Defence responded to the deputies’ questions.

The following deputies posed questions: Boris Aleksic, Cedomir Jovanovic, Vladan Batic, Miroslav Markicevic, Nenad Popovic, Tomislav Nikolic, Jelena Trivan, Dejan Mirovic, Ivan Andric, Aleksandra Jankovic, Dragan Sormaz, Dragoljub Micunovic, Natasa Jovanovic, Donka Banovic, Ivan Jovanovic, Milorad Buha, Radoslav Milovanovic, Jadranko Vukovic, Pavel Marcok, Zoran Krasic, Srdjan Milivojevic, Paja Momcilov, Aleksandar Cotric and Marina Toman.

Deputy Boris Aleksic asked Minister of Defence Sutanovac several questions concerning the participation of professional soldiers of the Serbian Army in NATO exercises in Georgia. Who made the decision to send professional Serbian soldiers to Georgia; why was it kept secret from the public; did the Government know the official Moscow’s position that Russia views the NATO military exercises as a provocation and a direct threat to its sovereignty, and why was the National Assembly’s decision on Serbia’s military neutrality violated?

Responding to the questions, Minister of Defence Dragan Sutanovac stated that the exercise in Georgia was not a NATO pact exercise, but the exercise of the Partnership for Peace whose member Serbia has been since November 2006, and that the Ministry of Defence acted in compliance with the Serbian Assembly’s decision on military neutrality. He explained that the participation in the exercise in Georgia was reconsidered after the evaluation of possible positive and negative effects on the economic and broader political level.

Liberal Democratic Party Deputy Group head Cedomir Jovanovic, calling for responsibility, posed questions to the Government representatives present concerning the halt in the European integrations and visa policy process. He also asked what measures shall be employed to overcome the technical and political obstacles so as to deblock the European integrations process and visa abolition.

Minister Sutanovac stressed that the defence system represents a pillar of cooperation with a numerous countries, such as the USA and Norway, and that Serbia’s defence system poses no obstacles to European integrations. Moreover, Serbia’s defence system was commended in the European Commission Report for the first time last year.

Deputy Prime Minister Bozidar Djelic contradicted deputy Jovanovic’s statement that European integrations have been blocked, reminding him that the USA had officially confirmed Serbia’s cooperation with the Hague Tribunal, adding that that is no guarantee that the Kingdom of Holland shall change its position on Serbia’s cooperation with the Hague Tribunal. In its Report on visa liberalisation, the European Commission recognized Serbia as a country which had achieved progress and received a positive report, Djelic added.

Deputy Vladan Batic asked two questions. First, what was the Government doing to speed up Serbia’s placement onto the white Schengen list, and second, when will the Restitution Law or Denationalisation Law be adopted?

Deputy Prime Minister Djelic stressed that the Government has devoted maximum efforts to the liberalisation process, and that many European officials have stated that they expect a positive outcome of Serbia’s white Scehngen plea. Djelic confirmed that the Government is working on having the Denationalisation Law be passed by the end of the year.

Deputy Batic exercised his right to two additional questions. Is the Government familiar with the Denationalisation Bill the Demo Christian Party of Serbia had submitted to the Assembly, and what will the Government do to change Holland’s position?

Deputy Prime Minister Djelic reminded him that a Working Group headed by Dragor Hiber had been formed to draft the Restitution and Denationalization Law, and that the Government was cooperating with all the political parties at the Assembly to reach an adequate solution. Regarding Holland’s position, Djelic announced the Serbian Parliament’s visit to the Dutch Parliament, because the parliament and its Foreign Affairs Committee are the ones who form the position followed by the Dutch Foreign Minister.

Deputy Miroslav Markicevic asked who is responsible for and who decides on the Serbian Army’s participation in various missions.

Minister of Defence Sutanovac explained to the deputies how decisions are made on the participation in various international projects concerning the involvement of Serbian military personnel in missions of international organisations and institutions, and the deputy commented on the received answer and asked additional questions.

Deputy Nenad Popovic asked the Deputy Prime Minister if VAT shall rise by the end of the year which would be an additional burden on the businessmen, particularly farmers and why the agricultural subsidies would be paid in October.

According to Djelic, in case of a rebalance, the rise of deficit is more likely than the rise of any tax, which shall be proposed by the Minister of Finance after analyzing the total macro and microeconomic situation.

Deputy Popovic asked two related questions. First, why did both the last adopted budget and last budget rebalance reduce the agricultural budget by 25%? And second, why are, if the agricultural subsidies are delayed, the subsidies for Fiat the only ones given in advance?

Deputy Prime Minister Bozidar Djelic repeated that Serbia has set agriculture as its strategic direction, that last year it had achieved record export, 1.6 million USD, and that Serbian agriculture had realised a 500 million USD surplus in foreign trade. Djelic stressed that Fiat is a serious company and that Italy is an important ally for Serbia.

Deputy Tomislav Nikolic asked several questions, and then additional related questions regarding the Serbian Army’s activities and state; the Assembly’s resolution on military neutrality, and the export of military equipment.

Minister Sutanovac stressed that, last yea, the Serbian defence industry had exported over 400 million USD worth of goods, adding that for the first time the Serbian Army has remained scandal-free for two years, and that the defence system is functioning properly.

Deputy Jelena Trivan was interested in the fate of the whole region and Serbia in it, in the context of the widespread economic difficulties and processes in the European Union, and how much Serbia’s integrations and the visa liberalisation process shall depend on what is going on in Western Balkan countries, as well as whether the visa liberalisation is a strictly technical process. The deputy asked Minister Sutanovac how the military’s indisputable credibility and its international cooperation influenced the speed of the European integrations process.

Deputy Prime Minister Djelic reminded the deputies that this was an election year in the European Union, that the process of adoption of the Lisbon Agreement was underway, but that all this did not hamper Serbia’s progress towards European integrations and solving technical issues concerning the visa liberalization.

Minister Sutanovac stressed that Serbia’s defence system was gaining more and more respect abroad and that every country the Ministry visited paid great tribute to the Serbian Army and defence system. The Minister also talked about the activities within the Partnership for Peace, which are not merely military, but cover the fields of health care, energy production, science and technology.

Deputy Dejan Mirovic asked the Deputy Prime Minister how much the unilateral implementation of the transitional trade agreement would cost Serbia.

Quoting statistics, Deputy Prime Minister Djelic said that since February, when the implementation of the SAA had started, until the end of April, it amounted to five million EUR a month. At the same time, a minimum of 100 million EUR from the EU tax payers’ money shall pour into the Serbian public funds and for now Serbia is the only country that has received such a benefit from the European budget. Djelic stressed that this was the first time since the introduction of the pre-accession assistance for all the countries in the process of EU accession and that such a benefit has been given to Serbia. Also, he reminded the deputies of the non-returnable EU funds realized since 2001.

Deputy Ivan Andric asked two questions - the first one regarding visa liberalisation and the second the activation of the SAA, and what the Government was doing to change Holland’s position.

Deputy Prime Minister Djelic reminded him that the visa liberalisation dynamics have been hindered due to institutional and economic problems of the EU and that Serbia was expected to receive a positive ruling in the fall. Regarding Holland’s position, the Deputy Prime Minister said that intensive bilateral contacts were realized on all levels and that some of the contacts were established via civilian society, too. Djelic informed all present that, on 15 June, Hague Tribunal Chief Prosecutor Serge Brammertz shall attend the Meeting of Ministers in Luxembourg where he shall present a report unquestionably stating that Serbia fully cooperates with the Hague Tribunal.

Deputy Aleksandra Jankovic posed a question to the Deputy Prime Minister. The deputy wanted to know who Djelic promised the white Schengen and visa alleviation to – the Serbian citizens or the Serbian Government Ministers.

Deputy Dragan Sormaz posed a question to the Minister of Defence regarding the commendations Serbia received form Russia, China and India on bilateral and military-technical cooperation and if Serbia was cooperating with these countries.

Minister Sutanovac stated that, for the first time after several decades, the Chinese Liberation Army Chief of General Staff visited Belgrade last year and attended the promotion of Serbian ensigns, as well as that the Serbian Army received donations from China. Sutanovac added that a cooperation agreement in the field of defence would very soon be signed with India, while during a Serbian delegation’s recent visit to Austria, the Austrian Minister stated that he was impressed by the manner in which the Ministry of Defence was being run and the reform of the Serbian defence system was implemented.

Reminded that, following the state visit to France, the term of strategic partnership with one country within the EU had emerged as a sort of bilateral agreement, deputy Dragoljub Micunovic asked what said strategic partnership would entail. Deputy Dragoljub Micunovic asked the Minister of Defence if, in the talks with Turkey, Serbia was taking into consideration the creation of a security control system for the Balkans.

The Deputy Prime Minister stated that Serbia had been offered to make a draft agreement on strategic partnership with France by the end of the year, which has no such partnership with any other country outside the EU so far. The topics which will be the subject of the strategic partnership are grouped by field: the first topic is culture, education, science; the second is security; third European integrations and the fourth - economy and investment. Minister Sutanovac stated that Turkey is a country with a very modern and developed army and that military cooperation with this country is intense. The Turkish Minister of Defence will visit Serbia this year, and the Turkish President is also expected to visit, Sutanovac added. The Minister deemed the relations with Turkey very important for Serbia, having in mind that both Serbia and Turkey want to join the EU.

Deputy Natasa Jovanovic asked the Minister of Defence three questions. She asked if Minister Sutanovac talked with American Vice-President Biden having in mind that Serbia was a military neutral country. Her second question was about the real reasons behind the recall of Serbian soldiers from Georgia, and third, if the minister maintained the position that Serbia was a military neutral country in all his contacts.

Minister Sutanovac explained to the deputies that the Serbian units in Congo and the Ivory Coast were in a mixed composition with other countries, some of which were, and some were not NATO members, some of which had recognised Kosovo, and some had not. The Minister stressed that if Serbia was looking for future allies than it had to persuade countries which had recognised Kosovo to be its allies, and those which had not recognised it are already Serbia’s allies.

Deputy Natasa Jovanovic asked related questions concerning the weapons factory in Kragujevac and the production of certain types of armament, such as the M12 rifle.

The Minister of Defence said that it was during his term of office that the M12 rifle was introduced into the armament and that he was the first Minister of Defence to order a large consignment of these rifles.

Deputy Donka Banovic asked the Deputy Prime Minister, what the Government of the Republic of Serbia had prepared as a strategy and plan if the decision or opinion of the International Court of Justice regarding the legality of the recognition of Kosovo independence be unfavourable for Serbia.

Deputy Prime Minister Djelic stated that Serbia had launched the initiative, applauded by the international community, and that that the best proof of it was the fact that it was no longer Serbia’s but the UN Assembly’s initiative which requested a principled response to a principled question. The message Serbia sends is not to wait, Serbia is not lobbying, but simply pointing where the personal interest of some countries and the whole international community lies.

Deputy Ivan Jovanovic asked Minister Sutanovac what benefits Serbia could expect from participating in the operations of UN peace missions. Since the European Commission Report on Serbia’s progress was expected in June this year, the deputy wanted to know whether the report would be positive and what was expected from the report.

As the report had already appeared on the websites of non-government organisations, Deputy Prime Minister Djelic stated that the report for Serbia was favourable and objective. Such a report is a also compliment for the Assembly because the report states that the considerable activity of the National Assembly of the Republic of Serbia made it possible to fully meet the legislative part of the agenda regarding the white Schengen for Serbian citizens. The Deputy Prime Minister added that the European Commission Report is definitely favourable for Serbia which would fulfill all the conditions necessary for its citizens to travel into Europe without visas as soon as next year.

Deputy Milorad Buha asked the Deputy Prime Minister three questions. The first question was whether the Government or another state authority in the Republic of Serbia had made an analysis of the positive and negative effects of the unilateral implementation of the transitional trade agreement. The second question was what the direct damages, expressed monetarily, were and if that had to be stated in the analysis. The third question dealt with the contract the Government had signed with IMF. The contract set the amount of deficit at about 3% GDP, while Minister of Finance Diana Dragutinovic stated that the rise of deficit would reach 4%, which was contrary to the contract signed with IMF. At the same time, the deputy was interested in the issue of increased VAT.

Djelic stressed that such an analysis did exist, and that the service in charge of it was the Tax Administration which is part of the Ministry of Finance, adding that if Serbia had no such trade relations with Europe its exporters would have to pay 385 million EUR.

Deputy Radoslav Milovanovic wanted to know how far the defence system reforms and military professionalisation process had reached, what level Serbia was on in relation to the highest standards of the neighbouring countries’ defence systems, and what benefits Serbia gained from joining the Partnership for Peace.

The Minister of Defence explained that comprehensive reforms of the defence system were underway. The plan is to complete the military professionalisation process by the end of 2010. Also, the Ministry of Defence received an official accreditation for the Military Academy and the institutions functioning within the Military Academy, which was accredited as a scientific institution. Minister Sutanovac stressed that the field of military health care underwent a vast reform last year.

Deputy Jadranko Vukovic asked Minister of Defence Sutanovac about the military mission to Georgia, since he was in possession of all the information on the problematic composition of the other participants’ military companies.

Minister Sutanovac answered that he was not familiar with the details about the composition of the disputable companies, but repeated again that the exercise held in Georgia was under the patronage of the Partnership for Peace.

Deputy Pavel Marcok asked the Deputy Prime Minister to compare the previous European Commission Report and the one currently being prepared, what would in the new one be considered progress i.e. where had Serbia effected reform, and which areas might receive a negative mark.

Deputy Prime Minister Djelic stressed that it was important to note that Serbia was commended in certain spheres last year. For the first time, the cooperation with the Hague Tribunal received a positive mark. At the same time, there is a series of spheres where progress can be effected only in continuity. November-December 2007 saw the beginning of work on Serbia’s national EU integration programme. Djelic expressed an expectation that the European Commission will recognize the great efforts the programme entails.

Deputy Zoran Krasic criticized Serbia’s approach to the NATO pact and requested strict abeyance by the resolution on Serbia’s neutrality. He requested an opinion from the Minister of Defence on these views, to which Minister Sutanovac repeated his previous statements on the subject.

Deputy Srdjan Milivojevic asked Deputy Prime Minister Djelic what the budgetary inspection had found in the city of Krusevac, as there were accusations of corruption. The deputy asked the Minister of Defence if Serbia was exercising the possibility of launching not only military, but scientific, medical and other operations as well within the Partnership for Peace.

Deputy Prime Minister Djelic was not familiar with the situation in the city of Krusevac, but promised he would forward the question to the Minister of Finance.

The Minister of Defence regretfully responded that Serbia still does not fully exercise the potential for cooperation on projects within the Partnership for Peace. The Minister reminded the deputies that about 80% of said cooperation falls within the field of defence, and cooperation in the fields of other civilian projects makes up 20%.

Deputy Paja Momcilov was interested in the reasons leading the Government to cooperate with NATO, and Sutanovac repeated his previous statements regarding the issue.

Deputy Aleksandar Cotric asked the Minister of Defence when the process of professionalisation of the military would be completed according to the estimate of the top of the Ministry of Defence and the Serbian Army.

Minister Sutanovac repeated that the date for the completion of the professionalisation of the Army was the end of 2010 and spoke briefly about certain specific segments of the process.

Deputy Aleksandar Sotric also asked a related question, when the law to fully regulate the work of military security services, the Military Security Agency or the Military Intelligence Agency would reach Assembly procedure.

Minister Sutanovac expressed hope that the draft law currently at the Ministry of Defence would be completed in the next few weeks, and then swiftly be forwarded to the Government.

Deputy Marina Toman asked the Deputy Prime Minister if better standard or some promises were the Government’s priority.

The Deputy Prime Minister explained that white Schengen was not everything which was reflected in the Serbian Government’s measures. The first packed adopted in late January this year, and the second adopted in April, point to a very clear goal – saving jobs. Djelic said that the Government was not able to set more ambitious goals because the reality of the economic crisis sets the priorities and goals this year. The Deputy Prime Minister repeated that life in Serbia is much better than a couple of years ago.