2022-09-21

Debate: Energy Crisis and the Position of the Poor in Serbia

Centre Dialogue – Social Forum

On 21 September 2022, the Center for Democracy Foundation organised the debate: Energy Crisis and the Position of the Poor in Serbia, in collaboration with the Friedrich Ebert Foundation.

Partaking in the discussion were: Zoran Ilić, Ministry of Mining and Energy; Zoran Ristić, United Branch Trade Union Independence; Danilo Ćurčić, A11 - Initiative for Economic and Social Rights; Ksenija Petovar, retired Professor at the faculties of Architecture and Geography; Goran Radosavljević, FEFA Institute; Iva Đinđić-Ćosić, Serbian Energy Law Association; Kirsten Schönefeld, Friedrich Ebert Foundation in Belgrade; Nataša Vučković, Center for Democracy Foundation. The discussion was moderated by Miloš Obradović, Journalist.

The energy crisis facing Europe and a large part of the world is also having an inevitable effect on Serbia, where it is additionally intensified by various extremely unfavourable internal factors. The cost of energy is rising exponentially, a new heating season is just ahead of us, and upheaval on the energy market indicates that the unstable situation will persist in all likelihood. With growing inflation and the rise in the cost of other goods and services it is realistic to expect the position of poverty-stricken groups to worsen, especially given the fact that the share of food and energy in consumption is highest among lower income populations.

Is our country able to clearly respond to the energy and economic crisis and does it have adequate protective measures in place to protect the most vulnerable segments of society? What support mechanisms exist for the poorest segments of society, which will be hardest hit by the crisis? What will happen to those who are unable to pay their electricity, gas or heating bills? What is the effect of the Decree on the Energy Vulnerable Consumer and do we need more efficient welfare models? How do we steer possible new measures in the right direction so that those who really need assistance are able to get it?

We sought possible answers to these and other open-ended questions which were posed by participants and media representatives, through a constructive discussion held during the Energy Crisis and the Position of the Poor in Serbia debate.

During the discussion it was emphasised that the energy crisis further adversely affects the state of poverty of those most vulnerable. In Serbia, we regularly boast about the fact that unemployment is at a historically low level but on the other hand, we see the percentage of poverty is quite stable and very slow to decline, unfortunately. Those who are at risk of poverty, even if they are able to pull themselves out, still find themselves in a very unstable situation and can easily be pulled right back in. Workers making the minimum wage will very soon be unable to pay for energy and food and the announced increase of the minimum wage by RSD 5,000 will not begin in time for winter, as it is planned to start as late as January.

The cost of energy that most of the population pay including the cost of fuel, have drastically increased and therefore the following question arises: how will those most vulnerable be able to pay? The energy crisis prompts us to consider how we can help these people. In regard to energy poverty, the Government must react and provide aid to the most vulnerable segments of the population to ensure they do not become victims of severe energy poverty over the coming winter. Accordingly, we have to adapt our social policy to this new situation. For an extensive period now, the Republic of Serbia has lacked a welfare strategy; a strategy to combat poverty. Furthermore, we have been waiting for ages for the adoption of the amendments to the Law on Welfare. Serbia needs to develop a systemic response to the issue of poverty.

We organised the following debate in collaboration with the Friedrich Ebert Foundation – Centre Dialogue – Social Forum.