Scenarios in the Balkans

Between Expo 2027 and the EU capitals, Vucic is playing the election card

For the Serbian president, this is the seventh election since 2012. The aim is to put behind him the tensions that arose following the tragic incident in Novi Sad, which claimed 16 lives and led to an investigation into the use of funds linked to Chinese companies. The move could see the leader crowned as the new prime minister. Stability is supported by the industrial interests of European capitals and the local government’s ability to supply Ukraine with ammunition.

Manifestazioni a Belgrado dopo l’annuncio delle elezioni anticipate

7' min read

Translated by AI
Versione italiana

7' min read

Translated by AI
Versione italiana

When, on 1 November 2024, the monumental reinforced concrete canopy at the railway station in Novi Sad collapsed to the ground, claiming sixteen lives, the political trajectory of contemporary Serbia took an irreversible turn. That canopy, built in 1964 and only just returned to public use following a major redevelopment project entrusted to the Chinese state-owned consortium comprising China Railway International and China Communications Construction Company, did not merely claim human lives; it shattered the rhetorical framework upon which President Aleksandar Vučić had built over a decade of unchallenged hegemony: the myth of rapid, forceful and unquestionable infrastructure modernisation. In the weeks following the disaster, independent technical reports and journalistic investigations uncovered a chain of systemic omissions: the addition of heavy steel structures, glazing and ceramic cladding had been anchored to sixty-year-old metal tie rods, worn down by corrosion and never subjected to load testing. What turned the tragedy into an institutional crisis was the regime of contractual secrecy imposed by the Ministry of Construction, Transport and Infrastructure, which, by virtue of intergovernmental agreements with Beijing, had removed the technical appendices and supervision records from public scrutiny. The civil mobilisation, led by student groups and characterised by the slogan “Korupcija ubija” (“Corruption kills”), forced the resignation of the Minister for Construction Goran Vesić, the then Minister for Trade Tomislav Momirović and the acting director of Infrastruktura Železnice Srbije, Jelena Tanasković. In December 2024, the High Public Prosecutor’s Office in Novi Sad formally charged thirteen key figures with serious offences against public safety, whilst the High Court in Belgrade launched an investigation into alleged losses to the public purse amounting to approximately 115 million dollars.

Vucic in Francia

Il presidente serbo Aleksandar Vucic ricevuto all’Eliseo lo scorso 9 settembre da Emmanuel Macron

The response was to resort to the tactic of dissolving Parliament early. By scheduling the general election for 25 October – the seventh time voters have been called to the polls since 2012Vucic did not back down, but pulled an institutional emergency brake. Dissolving the National Assembly disperses the wave of public outrage into the myriad strands of an asymmetrical electoral contest, freezes parliamentary committees of inquiry and paves the way for a long-planned constitutional manoeuvre: to allow Vucic, who is barred from standing for re-election as President of Serbia in 2027 due to the two-term limit imposed by Article 116 of the Constitution, to take the helm of the government as Prime Minister.

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Expo 2027: the centre of power

What is at stake in the October vote is not the formal handover of seats, but the preservation of an economic framework that forms the backbone of the Serbian Progressive Party (SNS): the major project of Expo 2027 and the national macro-plan ‘Leap into the Future’ (Skok u budućnost). Officially, the First Deputy Prime Minister and Minister of Finance, Siniša Mali, puts the direct financial commitment for the Surčin exhibition site at 1.2 billion euros, earmarked for the exhibition halls, the water sports complex, the Zemun–Airport–Surčin rail link costing 140 million, and the residential district comprising 1,500 homes. Yet the actual scale of the resources mobilised by the regime tells a different story. The strategic framework announced by the Presidency mobilises €17.8 billion spread across 323 infrastructure projects nationwide: from the National Stadium in Surčin to the Morava and Fruška Gora motorway corridors, from the BIO4 Campus biotechnology hub to the high-speed rail line between Novi Sad and Subotica.

This flow of public funds is underpinned by a special legal framework. In November 2023, Parliament enacted the Lex Specialis on Expo 2027 (Official Gazette No. 92/2023), supplemented in February 2024 by the government regulation on special procurement (Official Gazette No. 8/2024). This regulatory framework entirely exempts works related to Expo from the ordinary provisions of the Public Procurement Act, delegating implementation to the state-owned parent company EXPO 2027 d.o.o. and a network of dedicated special purpose vehicles (SPVs). Under these rules, tenders do not need to be published on European channels; award criteria are determined on a discretionary basis by directors appointed by the ministry; and administrative appeals do not suspend the start of construction works. As repeatedly pointed out by the Fiscal Council of the Republic of Serbia (Fiskalni savet), financing this scale of works through sovereign debt at a time of high interest rates widens the deficit, inflates interest charges and crowds out current spending on education and healthcare. Yet, for the ruling class in Belgrade, continuity is a categorical imperative: losing control of the executive would mean handing over the entire chain of exceptional contracts to retrospective audits by the Court of Auditors.

The strategic fragmentation of European capitals

The extraordinary resilience of the Vucic system cannot, however, be explained by internal dynamics alone. It is the direct result of a multi-pronged foreign policy capable of capitalising on the weaknesses and divergent interests of the major Western governments. Whilst the EU institutions in Brussels denounce the deadlock in negotiations on the chapters concerning the rule of law and competition, individual European governments deal with Belgrade on the basis of purely bilateral criteria relating to trade and security.

 

Germany: the automotive industry’s raison d’état

For Berlin, Serbia plays a crucial role in the reconfiguration of its industrial security. On 19 July 2024, the signing in Belgrade of the Memorandum of Understanding between the European Union and Serbia on sustainable raw materials, battery value chains and electric vehicles, in the presence of Chancellor Olaf Scholz, confirmed Germany’s alignment with the interests of the Serbian regime. At the heart of the agreement lies the highly controversial lithium deposit in the Jadar valley, developed by Rio Tinto, an asset from which it is expected to extract up to 58,000 tonnes per year of lithium carbonate for batteries, sufficient to support the production of around 1.1 million electric vehicles. For the German automotive industry, which is undergoing a complex transition to electric vehicles and is under pressure from Asian competition, access to a continental mining base is one of the national security priorities outlined in the Critical Raw Materials Act. Despite the reservations expressed by the Greens in the Bundestag regarding the approach to environmental protests in Serbia, Berlin’s pragmatic line has not wavered: the stability of the Vucic government is considered necessary to ensure the supply chain for the German manufacturing sector.

France: the aerospace sector as a guarantee of political protection

Whilst Germany has its sights set on Serbia’s natural resources, France has cemented its relationship with Belgrade through the arms sector. On 29 August 2024, during President Emmanuel Macron’s official visit, the Serbian Ministry of Defence signed a contract with Dassault Aviation worth 2.7 billion euros for the purchase of twelve brand-new Dassault Rafale multi-role fighter aircraft (nine single-seaters and three two-seaters). The deal has extremely significant strategic implications: it frees Belgrade’s air force from its long-standing dependence on Soviet and Russian MiG-29 aircraft, tying Serbia’s maintenance, avionics and military training to France for the next thirty years. In return for this industrial success, Paris is offering the Serbian president crucial political support within the European Council.

Italia: manufacturing diplomacy and control of shipping routes

The stance taken by Rome, confirmed by the government led by Giorgia Meloni, stems from a combination of geographical proximity, the protection of industrial investment and a security-focused approach to borders. Italia remains one of Serbia’s leading trading partners and direct investors, with a network of hundreds of companies established in the automotive, textile, engineering and banking sectors. For the Italian manufacturing sector, Belgrade represents a prime platform for nearshoring, just a few hours’ journey from the industrial districts of the north-east. On the geostrategic front, Palazzo Chigi regards Serbia as an indispensable linchpin for containing the Balkan migration route and for the stability of the Serbian enclaves in Kosovo and the Republika Srpska in Bosnia and Herzegovina. Rome has promoted regular ministerial summits for the Western Balkans, advocating the acceleration of Serbia’s accession to the EU without the imposition of rigid procedural requirements.

United Kingdom: a balance between intelligence and financial containment

Outside the European Union’s consensus-building processes, London views Serbia almost exclusively through the prism of security and the fight against financial crime. The Foreign, Commonwealth and Development Office (FCDO) and the British security apparatus maintain a stance of watchful detachment towards the Serbian leadership, accentuated by tensions in northern Kosovo and the armed clashes in Banjska. The United Kingdom exercises its influence through independent sanctions mechanisms, aimed at targeting patronage networks and intelligence figures (particularly within the BIA) suspected of collusion with regional organised crime or with Moscow-backed hybrid actors. However, even British firmness faces an objective limit in the need to safeguard the regional balance of power: London does not seek a complete break with Belgrade, aware that isolating the Serbian presidency would accelerate the alignment between the national military apparatus and strategic supplies from Beijing and Moscow.

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Zelensky in Serbia

Il presidente ucraino Volodymyr Zelensky in occasione delle visita in Serbia lo scorso agosto

Global arbitration: between ammunition in Kyiv and Beijing

Complementing the geopolitical shield of the Serbian government is its skilful management of relations with the East and the war in Ukraine. On the one hand, on 1 July 2024, the historic Free Trade Agreement with the People’s Republic of China formally came into force, immediately eliminating tariffs on over 60 per cent of customs items, with a trajectory set to rise to 95 per cent within a decade. Chinese multinationals control the country’s main export hubs — from the copper and gold mining giant in Bor (Serbia, Zijin Mining) to the Smederevo steelworks run by the HBIS Group — ensuring a source of liquidity immune to any democratic conditionality clauses. On the other hand, Vucic continues to offer the West an irreplaceable tactical dividend: whilst formally refusing to align with European sanctions against Russia – so as not to alienate the nationalist electorate and to maintain the natural gas supplies guaranteed by Gazprom via the Balkan Stream – he authorises the indirect export of large quantities of artillery shells and ammunition produced by the state-owned factories Zastava Oružje and Krušik. Channelled through third-party companies and Western buyers, these supplies systematically replenish the units of the Ukrainian Armed Forces on the front line, guaranteeing the Serbian presidency tacit diplomatic immunity in Washington and with NATO command.

The post-election landscape

The elections on 25 October take place against this backdrop of checks and balances. Although the civic, green and liberal opposition retains significant support in the major urban areas of Belgrade, Niš and Novi Sad, the ruling party’s ability to mobilise over 700,000 registered members, control the programming of national television channels and exert direct pressure on civil servants makes the scenario of a re-election of the majority (between 130 and 145 seats) by far the most likely outcome. This would be followed by a reshuffle of the executive (completing the transition of Vučić to the post of Prime Minister, leaving the presidency of the Republic to a figure who strictly adheres to party lines) and subsequently an acceleration of extraordinary public spending (approval of constant budget adjustments underpinned by the disbursement of tranches from the new 1.58 billion Growth Plan for the Western Balkans approved by Brussels). In short, as long as Serbia is able to supply critical minerals to German factories, military orders to the French air force, migration containment to Italia and ammunition to the Ukrainian front lines, the price of stability will continue to be endorsed by Western governments.

Charlye Ghezzi is a geopolitical analyst and specialist in technology and government security

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