Challenges for Serbia’s New Government in the Face of Floods in the Balkans

The new government’s plans for rapid improvement in Serbia’s economic situation have been shaken by the devastating floods in mid-May. The authorities have announced that areas affected by the disaster will be rebuilt, but the time and resources this will consume could result in less dynamic reforms elsewhere, and a deterioration of macroeconomic indicators. The EU should invest in the economic transformation of Serbia to ensure that this country maintains the pace of its progress towards European integration.