The business investment climate in Serbia has improved noticeably in recent years. Cessation of armed conflicts in the region, a relatively stable macroeconomic policy and changes in the legislative framework aimed at harmonizing laws with contemporary pro-business practices have been among the key drivers of change. However, the expected growth in M&A transactions in 2007/2008 has not been realized, because of the global credit crisis, the Kosovo crisis and the snap elections held in May 2008. Prospects, nevertheless, are still positive, given the likelihood of Serbia attaining the status of an EU candidate and the fact that the new coalition government formed in July 2008 seems to have real potential to live through its entire four-year mandate.
