http://www.isn.ethz.ch/news/sw/details.cfm?id=19011


The Serbian Socialists' dilemma


As Serbia stands poised at crucial fork in the road, the Socialists, risen
from the dead, must choose between progress and popularity.

By Anes Alic in Sarajevo for ISN Security Watch (28/05/08)

Ongoing negotiations on the formation of a new ruling coalition following 11
May early elections have placed Serbia at a fork in the road, with two
completely divergent political and economic aspirations.

The country is now split between hardliners led by the Radical Party (SRS)
and liberals led by the Democratic Party (DS) - and both sides require more
seats in parliament seats in order to meet the 126-seat minimum necessary to
form the government.

The future of Serbia - which many are describing in very black and white
terms as a choice between prosperity or isolation - depends, perhaps rather
ironically, on the reformed Socialist Party of Serbia (SPS), the party once
led by late Serbian president Slobodan Milosevic. In May elections, the
Socialists won 20 seats in parliament - a number that could make or break
either the Radicals or the Democrats, led by Serbian President Boris Tadic.

Should the Socialists choose to join forces with the Democrats, the
overwhelming winner of the 11 May elections with 38.75 percent of the vote,
the Democrats would have a majority and, if their stated goals are any judge
of the what is to come, Serbia would enjoy a economic boost, supported by
the EU.

In order to encourage Serbian voters to support the Democratic option, prior
to elections the EU signed the Stabilization and Association Agreement (SAA)
with Serbia - the first step toward EU accession for western Balkan nations.
The bloc also saw to it that Italian car maker Fiat signed a key agreement
for the return of the Fiat to the ailing Zastava car factory in Serbia with
a €700 million investment, which would mean plenty of new jobs. And one week
before the elections, 15 EU countries announced the cancellation of visa
charges for certain groups of Serbian citizens.

This dangling of European carrots seemed to work: Serbian voters showed out
in force for the DS and President Tadic.

But, the truth is that despite their strong support, a DS-led coalition
government would always face a very formidable opposition - the Radicals and
the Democratic Party of Serbia (DSS), led by Prime Minister Vojislav
Kostunica. Kostunica, for his part, has set his sites almost solely on
distancing Serbia from the EU because of that nasty business of Kosovo's
independence. 

Furthermore, the DS' majority strength would come in part from the
Socialists and their anti-western sentiments in some cases - such as
cooperation with the war crimes tribunal in The Hague and the rehabilitation
of Milosevic, his family and former associates - so in some respects, the
coalition will have a healthy internal opposition of its own.

On the flip side, a government formed by the Radicals, the DSS and the
Socialists would represent the most stabile and coherent government in
Serbia since the fall of Milosevic eight years ago. All three parties see
eye to eye on certain issues, such as war crimes and Kosovo, so internecine
bickering of the kind that can bring down a government is less likely.

In short, the Socialists could end up being the radical part of a DS-led
government or the moderate wing of a Radical/DSS-led government.

Discouragingly for Tadic's DS, the Socialists approved over the weekend a
draft coalition agreement with his rivals at the city level, promoting
Radical Aleksandar Vucic as the next mayor of the capital, Belgrade.

However, the Socialists are having some internal problems of their own on
the national level, and it remains unclear which side they will choose in
the end.


Progress vs popularity


The Socialists were nearly vanquished after the fall of Milosevic in 2000
and his deportation to The Hague the following year. Almost all high-ranking
Socialist party members - including prime ministers, presidents and
diplomats - were arrested and tried over various crimes after the fall of
Milosevic, including corruption and war crimes. Since then, most of the
party's electoral representation has sided with the stronger Radicals.

After the announcement of the initial election results, SPS leader Ivica
Ducic, party spokesperson during the Milosevic era, traveled to Russia and
met with several officials there, including the center-left opposition party
Fair Russia.

SPS officials rejected media speculation that Ducic was meeting with Russian
officials for advice on which side to join in the coalition battle or to
visit with members of the Milosevic family.

However, in separate statements printed in the Serbian media, Russian
officials stressed that they would like to see Serbia in good relation with
EU countries, which would mean siding with Tadic's DS. After all, it is not
in Russia's interest to have to prop up an otherwise isolated Serbia,
especially now that Russia itself controls the country's energy sector.

Unlike the DSS and the Radicals, Socialist Party leaders have also indicated
that they would prefer to lead Serbia toward the EU. For now, though,
speculation is that the SPS is closer to making a coalition with the DSS and
the Radicals, based on their common ideologies.

Paradoxically, during a recent Socialist party leadership session, 10 out of
12 presidency members voted for a coalition with Tadic's DS, stressing that
they did not wish to see the country regress to the situation in the early
1990s, but would rather see it move towards Europe.

This line of thinking, at least publicly, could give them problems with
their electorate, which is comprised largely of the elderly who tend to be
more anti-western and view the Democrats as lackeys of the West. Thus,
despite their professed desire to move toward Europe, it appears that the
party is, at least for now, reluctant to risk losing more of its voters to
the cause. And for this first time since the fall of Milosevic, the
Socialists are again an important force, and surely maintaining this
momentum is high on their list of priorities.

At the same time, its coalition partners are growing anxious and pressuring
the Socialists to choose progress over popularity. United Serbia leader
Dragan Markovic has threatened to leave the sub-coalition with the Socialist
if unless the party moves to side with Tadic's DS. The Pensioners party is
also crying that the EU is Serbia's only option.


Assessing the long term


Western powers are sounding the alarm bells, warning that Serbia will face
economic isolation if the government is formed by nationalist parties.

But in short term, at least, there will be no major changes if the
nationalists take over, since Serbia still has support from international
finance agencies, which would continue to channel aid over the next year or
two.

One of the possible scenarios is that a nationalist government – led by the
Radicals and the DSS - in order to satisfy its voters, could use the
country's €10 billion reserves to build up infrastructure and raise pensions
and other benefits for which the previous government failed to find the
resources.

Still, the anti-western sentiment of such a government would render foreign
investment riskier and after a year or two, western financial aid would
likely decrease.

The Radicals and the DSS have already indicated what their first moves would
be during their first two years of rule: They would annul the SAA agreement
with the EU; freeze Serbia's EU membership bid until the majority of EU
countries revoked recognition of Kosovo; and further distance the country
from the EU, while seeking increased Russian support for the return of
Kosovo.

There would be some opposition within the government, namely from the
Socialists, but being the weaker party, they would be overrun by Radicals
and DSS.

 

 

 

 

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