New legal framework for foreign investments in Serbia – key characteristics and possible effects

Abstract

This paper deals with the key determinants, namely characteristics and novelty regarding a new Serbian Law on Investments from 2015. The second part of the paper deals with its outreach and effectiveness in terms of foreign investment attracting. The objective of the paper was to conduct, in this context, a critical analysis of conventional attitudes about the significance of legal reforms in the process of foreign investments attracting.

The paper concludes that the above-mentioned law, in the sense of its contents, represents prevailingly the law of continuity that is based on principles of liberalisation, protection and encouraging of foreign investments, with special breakthroughs in some segments, in particular regarding their further liberalisation. Conceptually speaking, the most important novelties are connected with the sphere of promotion of investments and creating of a complex, and somewhat cumbersome system of institutional support to foreign investments.

Based on such an approach and solutions, the subject new legal framework for foreign investments creates a more favourable legal environment for their fulfilment. However, the experience of previous legislative reforms in this field in our country and in comparative legislation indicates that the outreach of these improvements are quite limited and that is why they can hardly result with more emphasised  outcomes in attracting of investments, considering in particular the limitations contained in the mere nature of foreign investments and actual impact of legislation on foreign investments positioning.