Serbia Eyes Early Elections Post-Budget Approval Amid EXPO 2027 Investment and Transport Law Changes

Serbia's government might resign and dissolve parliament after the adoption of the 2027 budget, paving the way for early elections, according to Ivan Bošnjak, state secretary in the Ministry of Human and Minority Rights. Bošnjak stated on July 21 that this sequence of events is likely, with the budget's approval being the final act of the current parliamentary convocation. However, other government officials have not indicated that the budget for the upcoming year would be passed before elections are called. Sources suggest there are no clear signs of a new budget being prepared, unless such work is being conducted in strict secrecy.

The ambitious EXPO 2027 project is expected to involve a state investment of two billion euros. A study by the consulting firm Louis Berger, which Forbes Serbia has reviewed, projects that tax revenues from the event could reach nearly double that amount, totaling 3.82 billion euros. This implies a return of 1.91 euros for every euro invested, meaning the state could potentially recoup its investment and earn a similar amount in profit. These figures are expected to be presented to the public soon.

Meanwhile, the process of selecting expert supervision for the construction of the oil pipeline from Hungary to Novi Sad remains stalled. A new request for protection of rights has been filed, extending the procurement procedure into its eighth month. This delay is attributed to changes in tender documentation and the protection requests. Transnafta company stated that the ongoing postponements do not significantly impact the start of construction work, as other prerequisites for the project have not yet been met. Active involvement of expert supervision will be necessary once conditions allow for the pipeline construction to commence.

Additionally, Serbia is set to introduce a new law governing road passenger transport, replacing the current one due to extensive amendments. The draft is complete, and public discussion is open until September 2. Bus carriers note that this change comes amid declining passenger numbers and rising costs, expressing hope that the new law will establish an organized public service system. Taxi drivers, however, remain skeptical, believing the draft fails to address their concerns or provide necessary solutions, particularly regarding the introduction of dynamic pricing, which they anticipate will be unpopular with passengers.