June 2012 - A feature article published in The Lawyer on 11 June 2012 focuses on Serbia and the situation of the country’s legal market following the recent presidential and parliamentary elections in May.
The elections yielded a surprise result: victory for Tomislav Nikolic and his centre-right nationalist SNS Party, over pro-EU incumbent Boris Tadic. Since taking office, President Nikolic has pledged to support Serbia’s bid for EU accession.
Moreover, the Serbian presidency is largely ceremonial. Despite winning the parliamentary vote, the SNS has been unable to form a government. The expectation is now that former president Tadic may become the next prime minister as part of a coalition of parties, which should provide continuity with the current government in office.
Branko Maric, a Belgrade lawyer that cooperates with Kinstellar, explains that the election sets the stage for important work to be done. “I think the political elite is aware that the situation is such that they should continue with the regulatory work of the government as soon as possible,” says Maric. “All in all, there are a lot of things on the economic agenda that need to be addressed as soon as the new government is formed.”
Serbia is in the midst of major structural reforms as part of its efforts to gain EU membership. Among significant recent changes was the introduction earlier this year of a new company law. Thus, while the volume of transactions has been subdued in recent years (with the exception of the energy and infrastructure sectors, which continue to attract foreign investors), lawyers in Serbia are busy advising clients on the implications of significant amount of new legislation.
“This was all part of the push to do as much as possible on the harmonisation side to gain EU candidacy,” explains Maric. “For us lawyers that’s a big challenge, because the entire landscape has changed significantly. For a number of clients we had to deal with issues relating to harmonisation of corporate governance, as well as other internal rules under the new legislation. That was one of the things we did frequently in the second half of last year and the beginning of this year.”
The Lawyer article also points out that there is an increasing trend for cross-border work involving Serbia and other former Yugoslav states. As the Balkans continue to pull together, cooperation between states is increasingly common, the article explains.
Branislav Maric agrees that “regional weight” is increasingly important, and that many M&A transactions are increasingly cross-border, involving several jurisdictions.
Read the full article in The Lawyer.
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