Belgrade - New Serbian Prime Minister Mirko Cvetkovic assumed office from predecessor Vojislav Kostunica Tuesday, a day after promising to return the country to its European path, along with economic prosperity and stability. Cvetkovic, 58, was inaugurated with his cabinet late Monday night, following a marathon parliament session. He listed Serbia's European Union membership as a top priority of the new ruling coalition.
Belgrade would also seek to repair ties damaged with the West, most of all the United States, in the wake of Kosovo's declaration of independence from Belgrade, Cvetkovic said, but also stressed that his cabinet would work to keep Kosovo Serbian.
Kostunica downgraded diplomatic links with the more than 40 countries, including leading Western nations, that recognized Kosovo since it split from Serbia in February.
Cvetkovic's speech was a clear turn away from Kostunica's policy of increasing hostility toward the West, which included the suspension of membership talks with Brussels.
One of the first moves expected from Cvetkovic's cabinet is to push for the ratification of a pre-membership deal with the EU.
Belgrade will still be short of a warm welcome by EU owing to its reluctance to arrest fugitive war crime suspects. And despite Serbia's objections and Russian support, Kosovo would continue on its independent path.
In his expose to parliament, Cvetkovic spoke broadly about the economy, in contrast to Kostunica, who tended to focus on politics only. Economists however criticized his promise of growth, jobs, reforms, investments, big projects and macroeconomic stability as too vague.
"The pale expose offered no answer to any of the burning economic policy questions," said Vladimir Gligorov of the Vienna Institute for International Economic Studies.
The new cabinet has taken the reins as bloated spending, rampaging prices and an overvalued dinar severely test the stability of the weak economy, only half-heartedly reformed since 2000.
Real reforms, such as the privatization and streamlining of the remaining state-owned monopolies, the opening of markets and the ending of subsidies have not been mentioned by any politician in recent months.
Cvetkovic also promised to crack down on the widespread corruption in Serbia, but that promise was made, and unkept, by every premier in the country's recent history.
The ruling coalition was forged following the May 11 snap poll by camps led by former foes, President Boris Tadic's Democratic Party and the Socialist Party of the late strongman Slobodan Milosevic.
Democrats, with 102 and Socialists with 20 seats in the new assembly with 250 seats still needed the support of five ethnic minority representatives for the thin majority of 127 votes.
The ultra-nationalists, with a combined 108 votes, will continue to remain in opposition.
Economists express concern over promises of "social justice" and better wages and pensions promised by coalition partners, pointing out that more spending would only further spur inflation.
"Cvetkovic said very little of plans to cut spending, but without that other goals will remain out of reach," said Aleksandar Stevanovic of Belgrade's Free Market Centre.
Kostunica has left after governing over two incomplete terms, starting in early 2004. His coalition with the DS collapsed in March when his plan to reject the pre-membership deal offered by the EU was turned down by his own ministers.
The deal was eventually signed by a deputy premier, but needs to be ratified by Serbia and all EU member states to come into effect.
