As agreed with Serbia, Italy will lobby with relevant EU institutions for funding for a new "multimodal" corridor linking Corridors 10, 7, and 8 by road, rail, and sea. This is one of the most important agreements reached between Italy and Serbia at a recent summit, sources in the Serbian Government told Novosti on Monday [ 16 November].

Joint activity on the new corridor as envisaged in a memorandum of understanding between the Serbian and Italian Ministries of Infrastructure and Transportation on cooperation, is not the only important bilateral project.

Plans include the soon completion of analyses of projects for revitalization of the Belgrade-Bar railroad, construction of a new road and railroad bridge across the Danube, the Zezelj Bridge, and the Belgrade-Timisoara highway.

As Serbia is a signatory to the Open Skies Agreement since 2006, the government plans soon to examine with Italy the possibility of the agreement becoming effective as of 2010. The activities of the two governments will evolve through joint working groups that will meet alternately in Belgrade and Rome.

The Serbian Government expects the agreements signed with Italy to help our institutions in the forthcoming reforms, financially as well as through transfer of know-how and experience.

Italians will finance demining equipment worth 600,000 euros, which is necessary for our army. Italy is very interested in the protection of Serbian monasteries in Kosovo, particularly of the Visoki Decani monastery which was built by an Italian architect.

Italy said it was prepared to resume credit lines for small and medium sized businesses as well. In 2005, Italy approved credits to small businesses through local commercial banks worth 34 million euros, with an eight year repayment period and 24-month grace period. Soon a new credit line will be approved for the same purpose, in almost the same amount.

Speaking of energy, mutual interest in implementation of South Stream is definitely crucial, with Serbia a transit country and Italy a beneficiary. Another agreement was signed in Rome last week that should implant a long-term design in Serbia for tackling renewable energy sources.

"An agreement was signed binding both parties to work on implementation of joint projects in the exploitation of new hydroelectric power plants in Serbia by EPS [Serbian Power Company] and the Italian partner, and establishing cooperation between Serbia's Elektromreza power grid and Italy's Terna, in developing new capacities for transfer of power produced from renewable sources," said sources in the Serbian Government.

Though laymen might think these intensive plans for cooperation with Italy to be overly ambitious, experts believe it only sensible to extend economic cooperation over several branches with this particular member of the EU rather than any other country in the region and beyond.

"Italy has been Serbia's stable trade partner for over 20 years," said experts at the Serbian Chamber of Commerce. "In addition to a balanced trade, we have significant contracts in joint investments and production, and a commendable level of cooperation in banking and finance, transportation, and tourism services."

Benefit for the Balkans

Italy will ask the European Commission for substantial funding for implementation of the agreements with Serbia.

"It is only natural that Italy should apply for funds with these programmes," said officials in the Serbian Government. "The reason is simple: These are not just bilateral projects; they will benefit all of central Europe as well as the Balkans."

Nine Agreements

Nine agreements were signed during the Italian-Serbian summit: A declaration on strategic partnership, memorandum on cooperation with the regions of Veneto and Friuli-Venezia Giulia, protocol on readmission, cooperation in energy, Italian military education institutions, culture, and infrastructure. Serbia's imports from Italy stand at $1.1 billion and exports at $527 million.