Every second company in Serbia faces a corruption problem
In its new Rule of Law Report, the European Commission did not single out issues directly related to the economy, but it did scan several key areas that significantly affect the business environment for companies and entrepreneurs in Serbia.
One particular area highlighted is public procurement. It was emphasised that exemptions from the Public Procurement Law continue to be widely used. “This circumvents the application of the law, and oversight mechanisms are insufficient,” the report states.
The Commission notes that in 2023, the value of procurements exempt from the law nearly matched the value of contracts concluded through regular procedures, “undermining the effectiveness of the law.”
Another major challenge is the use of legal exemptions in the context of intergovernmental agreements.
“Oversight of public procurement procedures has weaknesses that may lead to a lack of accountability for offences. Although the Criminal Code includes a specific offence for abuse in public procurement, convictions are rare. In 2024, the State Audit Institution found irregularities in 21.2% of the total value of audited public procurement contracts,” the Commission notes.
Why the report natters to the economy
Analysing Serbia’s anti-corruption framework as an area that heavily influences the business sector, the European Commission notes that the perception among experts, citizens, and businesspeople is that corruption in the public sector remains high. It refers to the 2024 Corruption Perceptions Index published by Transparency International, where Serbia, with a score of 35/100, ranks 105th globally.
“This perception has remained relatively stable over the past five years, even though it is Serbia’s lowest recorded score. The 2025 Special Eurobarometer on corruption shows that 85% of respondents believe corruption is widespread in their country (EU average 69%), while 31% report being personally affected by corruption in daily life (EU average 30%),” the EC report states.
Among businesses, 84% believe corruption is widespread (EU average 63%), and 53% say corruption is a problem in doing business (EU average 35%).
Furthermore, 26% of respondents believe there are enough successful prosecutions to deter corrupt behaviour (EU average 36%), and 47% of companies believe that individuals and businesses caught bribing senior officials are adequately punished (EU average 33%).
The European Commission recalls that Serbia’s National Anti-Corruption Strategy for 2024–2028 was adopted in July last year, along with the accompanying action plan. The report highlights sectors particularly prone to corruption, including those directly related to the economy – taxation, customs, privatisation, and public procurement – as well as those where the private sector has vested interests – health, education, and local government.
Unlawful attainment of wealth not criminalised
“However, the activities contained in the action plan are somewhat narrower in scope when it comes to addressing the corruption-related challenges identified in the strategy and do not fully incorporate the recommendations from GRECO’s fourth and fifth evaluation rounds,” the Commission observes.
It also states that appropriate coordination mechanisms, budget resources, and an effective monitoring and evaluation system are needed to ensure the strategy is properly implemented.
It is particularly pointed out that “unlawful attainment of wealth is still not criminalised.” Furthermore, Serbia is not a signatory to the OECD Anti-Bribery Convention.
Besides public procurement, the European Commission also identifies other areas with a high corruption risk. These, too, are directly linked to the business environment. Such areas include state-owned enterprises, concessions, insolvency procedures, public-private partnerships, and the healthcare sector.
Can the business sector influence laws?
One of the key levers through which the business community can help create a more favourable environment is participation in the legislative process.
However, the European Commission finds that the process of public consultation still requires further strengthening.
“The percentage of draft laws undergoing public consultations increased slightly from 52.9% in 2023 to 58.3% in 2024. At the same time, the percentage of secondary legislation subject to mandatory public consultation that was actually conducted fell slightly, from 31% in 2023 to 29.7% in 2024,” the Commission states.
A key weakness in this area is the lack of systematic publication of consultation results. “Civil society organisations continue to highlight that the time allocated for consultations is insufficient, and that their comments on drafts of laws of public interest are rarely taken into account. There is still no central body responsible for overseeing the quality of public consultations,” notes the 2025 Rule of Law Report on Serbia.
It also adds that during a later stage of the legislative process (adoption in parliament), the practice of bundling together large numbers of often unrelated agenda items and legislative proposals into a single item has continued. This has hindered detailed debate and oversight. The EC recalls an example from November 2024, when as many as 68 items, including the 2025 budget, were treated as a single agenda item and adopted without any debate.
Trust?
The report notes that more than half of surveyed companies in Serbia express confidence in the effectiveness of investment protection. “As many as 57% of companies are very or fairly confident that investments are protected by law and the courts,” the document states.
Regarding public procurement, 32% believe the independence of the Republic Commission for the Protection of Rights in Public Procurement Procedures is “quite good” or “very good.” A similar view is held by 33% regarding the work of the Commission for the Protection of Competition.
“The perception of judicial independence in Serbia remains low, both among the general public and companies. In 2025, a total of 30% of the general population and 36% of companies consider the level of judicial independence to be ‘fairly good’ or ‘very good.’ Public perception of judicial independence has declined compared to 2024 (36%), while among companies it has slightly improved compared to 2024 (34%),” the European Commission concludes.
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