Serbia's move towards economic empowerment, but even fears of rising prices

The aggressive diplomatic campaign Serbia is making to Kosovo, prompted the Kosovo government to increase the 100 per cent tax on products of Serbia and Bosnia.

The measure, although welcomed by all, was met by economic policy connoisseurs and business representatives, in spite of this, expressed the need to be careful and in finding alternatives to new markets, and especially strategic products related to raw materials.

For food things, however, stress that all are replaceable.

The director of the Kosovo Chamber of Economics, Berat Rukiqi, in an interview for Kosova Preress said that immediately after the government's country, he has a meeting with most businesses which a voice has supported this tax.

However, Rukiqi says that for some strategic products, there are alternatives to new markets.

According to him, it should be seen in the countries of the region, where it added that the first contacts have only started because if the lack of products on the market appears, it will make the price move.

What's really important is that we're working on supply alternatives, even as the Economic Ode has taken on a role. I'm in constant communication with my colleagues from Macedonia, then Montenegro, then we'll see Austria, tomorrow I'll be visiting and in Turkey, from countries in the region we'll contact and see with Greece which are alternatives to some strategic products, but for some that are mainly related to the first subject... if the lack of products on the market occurs, it automatically moves the market at prices, this situation we're trying to avoid”, Rukiqi said.

Such measures for the director of the Economic Ode are not permanent, according to him these should be used for moments of reflection, because in all international cases these are fleeting.

The “not to create that such measures are permanent, to create then comforts here, but must be seen as a moment of reflection and to become more aware of the need to avoid consuming these products... in any case, no circumstances of international policy are such measures not permanent”, Rukiqi said.

Skender Krasniqi from Kosovo's Afarism Oda said the tax imposed on products of two neighbouring states would make Kosovo more local products.

According to him, all products coming from Serbia are replaceable. However, Krasniqi points out that what the Government has to do is to share a budget to help local producers find alternatives to obtain raw materials so that neither companies nor citizens impact market prices.

We hope that this long-term decision will open up the way for Kosovo to have more local products... most products alone have Kosovo, what it takes is that Kosovo's citizen should focus more on local production. Products are generally replaceable, because those products are food, much of our factories have, but they are construction that still exist in our factories. Kosovo's government must share a budget, to provide subsidies, to help find new raw raw materials so that neither the manufacturer nor the citizen can impact the market price”, Krasniqi said.

Satisfied with the government's decision are expressed by the Kosovo Producers Club. Vlasnim Osmani from this club said this decision gives the production sector to develop.

According to him, replacing Serbian products should be done through finding new markets, or producing the first subject in Kosovo itself.

Osmani stressed that if this decision is held over the longer term, there will be spaces and new jobs.

The economic sense of the production sector for us is positive news because it gives the production sector to me development... local products are having trouble competing with import in general, and especially from Serbia. Economically, Kosovo wins a lot. If my sales were increased inside and outside, all capabilities could be used that they have more protein capacity, this is directly related to the creation of new jobs. Part of the producers has already begun to sell other options, a portion of the producers have taken first-hand production initiatives themselves, Osmani said.

While Sefer Zogaj from the Institute for Economic Research said the main focus should be on securing alternative markets.

According to him, the government should not support the local producer by increasing public spending, but by making reliefs to tax rates for producers.

The best way to overcome this situation is to find alternative markets. In alternative markets we need to consider some very important conponents. The government should first support the local producer, not by making subsidies. Because public spending solves a short-term problem by creating a bigger long-term problem. The Kosovo government should make some tax benefits for local producers ... if public spending increases, then we will have budget deficit problems, at the same time and inflation is a huge problem for the social welfare of citizens”, Zogaj said.

Otherwise, Kosovo and 2011 had taken such a move, but after major international pressures, it had left.