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Conference REBEC

Conference REBEC

In June 2019 one of the most prestigious real estate events in Southeastern Europe took place in Belgrade - REBEC SEE Real Estate Exhibition & Conference. Our managing partner Martin Jacko was among the panellists looking at the development processes of Serbian institutions, legislation and business environment.

Using the example of Slovakia’s economy prior to EU accession but mainly after the EU accession, he pointed out the importance of the joining perspective for Serbia’s real estate sector. Expressing the facts regarding the membership and a huge impact on the development of our country including state sector, he stressed legislation, freedom of movement and EU funds.

Legislation

In general, join action with its partners in EU has increased the influence of Slovakia on the international stage. This cooperation has helped to solve problems which Slovakia would not be able to effectively handle alone – national security, financial and economic crisis, the problems of energy source, climate change, the fight against terrorism and other issues as well. The single European market also means high level of consumer protection for example the introduction of real air fare transparency, compensation for cancelled or delayed flights, a two-year warranty period for products and a price ceiling on roaming calls within the EU.

Freedom of movement

There are four basic freedoms that create the substance of a single European market – the freedom of movement of person, goods, capital and services. They are considered to be the pillars of European integration.

Just some facts, during last 10 years, the Socrates / Erasmus exchange programme, funded by the EU, enabled more than 10 thousand Slovak University students and lecturers to experience to other European universities. More than € 2,100 per citizen was assigned for Slovakia during 2007-2013 period from the structural funds of the EU. The primary goal of this financial assistance is to strengthen the cohesion of the European Community as a single social and economic entity.

We see the benefits of EU membership in terms of financing development projects mainly in:
- Low urgency rates through ECB regulation,
- High availability of bank loan financing,
- Arrival of foreign investors and foreign capital,
- Growth in economic performance and purchasing power.

European funds

Also interesting are the statistics that shows that vast majority of public investments in Slovakia are made from European Union funds. Investment from European Structural and Investment Funds in Slovakia in 2004 – 2020 were 29.5 bil. €.

Within the 2007-2013 programming period, Slovakia has spent €11.25 billion from the European Structural Funds. Among the EU countries, Slovakia occupied 11th place in the success of EU funds with the drawdown rate reached round 97% of the total commitment. In the programming period 2014 to 2020, Slovakia has used a total of € 3.490. This represents 22.57% of the total allocation of €15.466 billion.

We may also define problems with drawing of euro funds:
- Bureaucracy
- Clientelism
- Corruption
- Time-consuming projects
- Insufficient project preparation
- Weak administrative and professional capacity
- Demanding public procurement

Serbian market has become interesting and recommended for the development of real estate investments. Also, these facts confirm the information that there are over 1.5 million squares of advanced types of projects being developed. REBEC helped to understand the expected development trends where the Serbian market will be in relation to the SEE region in the following years.