Economic determination of Serbian foreign policy: The crucial importance of European integration for economy of Serbia

The most important part of the economic cooperation between Serbia and the EU, in addition to the inflow of foreign direct investments, loans, remittances (and donations), which predominantly come from the EU countries, is the exchange of goods and services. From 2000 there has been significant growth of trade between Serbia and the EU; merchandise exports and imports increased at double-digit rates over the past 16 and half years. In the same period, the share of EU in Serbian trade has not significantly changed, except for the effects of the three EU enlargement (2004, 2007, 2013), and is almost two-thirds. Having in mind that the countries of CEFTA, excluding Moldova, is likely to join the EU in the next decade, it is clear that the importance of trade with the EU would increase, at least nominally. In the last European Commission staff working document (2016) for Serbia is emphasized that the new government programme included Serbia's EU accession as a priority goal. Besides that, Serbia is only moderately prepared in the area of public administration reform. According to this report, Serbia will need to align its foreign and security policy progressively with the European Union's common foreign and security policy in the period up to accession. The EU is a key strategic partner of Serbia because of its huge global economic, technological and political significance. The EU is not just a very important partner, it is, in a way, a reference point for Serbia, as the modernization of the country, which is a natural priority for Serbian elites, is virtually inseparable from European integration and full membership in the EU.