Serbia’s central bank kept borrowing costs unchanged for a third month as inflation slows and Prime Minister Ivica Dacic’s revamped cabinet prepares to overhaul public finances and kick-start the economy.
Serbia’s main ruling parties moved closer to overhauling the cabinet even as a dispute over policies needed to shore up the European Union aspirant’s dwindling finances raised the prospect of early elections.
Serbian political leaders averted early elections after the country’s largest party agreed to the prime minister’s cabinet shuffle that led to the ouster of a junior partner and shaved the government’s majority to one seat.
Leaders of Serbia’s ruling coalition will continue discussions today whether the finance minister and his party will stay in the year-old government as part of Prime Minister Ivica Dacic’s cabinet shuffle.
Serbian Prime Minister Ivica Dacic’s Socialist Party backed a move to shuffle the cabinet a year since taking office, demanding a split of the Finance and Economy Ministry as a condition to keep the coalition intact.