Serbia and the Puzzle of Constrained Economic Policy

Serbia and the puzzle of restrained economic policy

Creating the necessary foundation and structure for industries producing clean energy on one hand, and developing the trend of using clean energies in various aspects of life on the other, are the two most important dimensions of the transition to clean energies era.

It is in both of these areas that strategic metals have found special meaning. Some precious minerals play a key role in the production of clean energies, while others are used in the production of electric vehicles, especially batteries. Copper and gold are the market for clean energies, and lithium may be even more valuable.

Europe, which has prioritized the development of clean energy consumption more than the United States, views Serbia as a land of opportunities.

This country has vast lithium resources that could even meet up to ninety percent of the Union’s needs. However, there has always been an issue as the British-Australian company Rio Tinto has long held the right to explore and extract lithium resources in Serbia. Yet, objections from opponents of the project, who are deeply concerned about severe pollution in mining areas and serious environmental destruction, have once led to the project being shut down.

The implementation of this plan has been restarted in recent months, with the German Chancellor and the head of the European Green Deal, along with managers of well-known companies such as Mercedes-Benz, participating in its official ceremony just a month ago.

Civil protests by environmental activists and critics of the plan continue, and yet their voices are not fading away.

Alexander Vucic, the right-wing President of Serbia, who is a friend and follower of Putin, has largely pursued domestic policy based on the Putin model and democratic policies have gradually eroded.

This is where protesters, in order to convey their message and be heard, resort to more extreme measures, causing disruptions and wider disturbances. The European Union now more than ever needs to deal with the right-wing leader of Serbia, and the need for lithium in this country is not something they can ignore.

Vucic’s solidarity with Russia, especially the new cooperation with China and his hosting of Xi Jinping, has heightened the sensitivity of the situation.

If there is a slip in cooperation between the EU and Serbia, China may easily gain control over lithium resources. Companies from this country are already active in the Serbian copper industry. Social activists are also facing severe challenges in these circumstances.

Watchich has preemptively framed the political and social landscape in a way that associates any protest and opposition with color revolutions, which are illusions created by Kremlin propaganda.