A social and political crisis has been going on for several months in Serbia, and the President of Serbia, Aleksandar Vučić, continues according to the established pattern to react to it: in addition to repression, ostensibly by caring for citizens who live a difficult life.
He announced a new one on his Instagram account large package of measures and says that it will arrive from September 1 and that for "people who live harder".
"We will make sure that the prices of the most important products in stores are lower. We will make sure that loans are cheaper, that interest rates are lower for you," said Vučić.
He further stated that he will launch an initiative to amend the Constitution of the Republic of Serbia regarding the impossibility of executors taking away the living space where a family lives in the enforcement procedure.
"From August 25, expect good news," concluded Vučić.
Remember "best price"?
A year ago, there were also crisis times in Serbia, there were protests against lithium mining. Then the government implemented the "Best Price" campaign. There were also times when the Government of Serbia limited the prices of products, such as during the corona virus pandemic. However, life is not better in Serbia.
Consumer prices in June 2025, compared to the same month of the previous year, increased by 4,6 percent, according to the data of the Republic Statistical Office (RZS). While the prices of food and non-alcoholic beverages in June of this year compared to June of the previous year were higher by as much as 7,4 percent.
What do these measures mean to citizens?
Professor of the Faculty of Economics Ljubodrag Savić told "Vreme" that administrative measures cannot help much because if they could, the whole world would not have a market economy but would have these administrative measures.
"On the other hand, it is completely legitimate for the government to do this, especially when we have this social crisis in which we find ourselves, but also because of the global crisis. However, it is difficult to ensure the full supply of the market with non-economic measures and at the same time lower prices because they are two opposite things. In order for someone to supply the market well with quality and diverse products, it has its price. If you limit the movement of prices, then production will either decrease, or only some products will be produced," explains Savić.
Necessary defined social policy
However, in order to help the citizens, an adequate social policy is needed because, according to our interlocutor, all countries that have a well-defined and effectively implemented social policy do not have such problems as countries that have sporadic or case-by-case social policy.
"It is very difficult to find an adequate mechanism to help those people overnight. Of course, that does not take away the state's right to take some measures, but one must be realistic, it is not possible to help a large number of people in crisis conditions," Savić points out.
He adds that we should have a good social policy that is defined in good conditions - that is, when there is money, when the economy is functioning well and when it becomes an established practice.
"All countries that have socially responsible policies, such as Sweden, Switzerland, even they will have problems with the crisis they are in, but nowhere near as some countries that look at things on a case-by-case basis."
The consequences of such measures
Administrative measures in market detention cannot be effective, our interlocutor points out.
"There is nothing simpler than for the government to make a decision that there will be no price increase or let's say 10 percent prices go down linearly. What will be the consequence of that? Some people will go bankrupt, some will have difficulties, some will reduce production, reduce quantity and range, some will reduce quality. That measure, which is aimed at improving the standard of living of citizens, is directed against merchants because it objectively reduces their incomes," says Savić.
So, he concludes, it's always good for any economy when things happen in a satisfactory way - "when everyone does their part, the government, the chambers of commerce, merchants, producers, and consumers. This means that we don't have to buy at the first store, but rather look to see if there's any sale, some discount. In the West, they're rational, and rich people are looking for change there."
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