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Serb President-Elect Pledges New Cabinet Soon, EU-Path Support

Serbian President-elect Tomislav Nikolic pledged to work fast to form a new government while leading Serbia to European Union membership.

Nikolic favors the “quick formation” of a new government which can tackle crime and corruption and support job creation, his Progressive Party said in an e-mailed statement today after he met with Miroslav Lajcak, the Slovak foreign minister and special envoy of European Union Foreign Policy Chief Catherine Ashton. He will also insist “on Serbia’s continued European path,” according to the statement.

Nikolic’s victory over President Boris Tadic in the May 20 presidential runoff has deepened the former Yugoslav republic’s political stalemate. The president, whose powers are largely ceremonial and who has little influence on economic policy, may find it difficult to name a candidate for prime minister who can secure a parliamentary majority. Both Nikolic’s Progressives and Tadic’s Democratic Party lack a majority.

The stalemate has weighed on the dinar, which has extended this week’s declines to a record low of 116.119 to the euro. The main index of the 15 most-actively traded assets dropped 0.9 percent to a three-year low of 452.45 points.

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