Sremska Mitrovica, Oct 7, 2003 - Serbian Deputy Prime Minister Cedomir Jovanovic said during Tuesday's visit to Sremska Mitrovica that the government will press ahead with efforts to preserve the stability of the national currency and will not allow for "buying" social peace through money printing.

Jovanovic told businesspeople from the Srem district that the inflation target for the end of 2003 is seven percent, recalling that two and a half years ago inflation stood at 120 percent.

According to Jovanovic, around 400 million dinars was invested in the Srem district in 2002, through various subsidies and Development Fund loans.

Moreover, three large companies from the district were privatized through tenders, 22 were sold off at public auctions, with another 50 firms undergoing the privatisation process. All this, said Jovanovic, gives grounds for optimism in this region.

Jovanovic, however, pointed to high unemployment rate as one of the district's major concerns.

He also announced that Sremska Mitrovica-based Matroz will be privatized by the end of the year, and added that the company, which owes a total of €112 million, has received more than 300 million dinars in subsidies in the past two years.

Jovanovic told representatives of independent trade unions that reforms are being carried out for the benefit of those who are paying the dearest price of the changes, adding that the government needs modern unions to help the country implement the Action Plan and integrate into European institutions.

Jovanovic called on the unions to monitor the privatisation in their firms and report any irregularity they may come across. He added that the government's privatisation model allows trade unions to take part in tender commissions, unlike in any other transition country.

According to Jovanovic, it is essential to define development programmes in all areas. If this is done within the next three years, Serbia might become the backbone of South Eastern Europe, he added.