Why is signing of contract with Italians late? - Government waits for Parliament to vote for budget rebalance, while "Fiat" waits for ratification of SAA

"Fiat" is not going to sign the contract on investment in "Zastava" until the Parliament of Serbia ratifies the Stabilization and Association Agreement (SAA).

The reason for that is the fact that "Fiat" will invest the announced 800m EUR in "Zastava" indirectly, through the EU funds that approved loans to this company. On the other hand, Serbian Government is also unable to fulfill its part of the contract and invest 300m EUR before the Parliament votes for the budget rebalance.

It is now uncertain when that could be included in the agenda and, according to the unofficial information, the Italian giant asks for more precise definition of investments and deadlines for construction of Kragujevac – Batočina highway, city bypasses and railway to Lapovo in the future contract.

FIAT Torino Italia

Grupa Zastava vozila

Zastava auto Kragujevac

Zastava automobili a.d. Kragujevac

Narodna skupština Republike Srbije

Vlada Republike Srbije

Stabilization and Association Agreement

SAA

Kragujevac Batočina highway