The recent 30-day lawyer strike has sent ripples across Serbia’s legal and business environment, disrupting key judicial and administrative functions and raising concerns about prolonged instability. Schoenherr Partner Igor Zivkovski discusses the strike’s impact, investor sentiment, as well as a promising corporate bond program, and the evolving regulatory framework as Serbia navigates a period of uncertainty.
"The strike has disrupted the entire legal and business ecosystem, creating uncertainty in the market," Zivkovski begins. "It affects representation before public bodies, courts, and notaries, which is a major component of legal work in Serbia. While client advisory and transactional work continue, many lawyers rely on court representation for their livelihood, and the prolonged disruption puts their financial stability at risk," he explains.
This disruption follows an earlier suspension of work in January, a move that garnered significant support from the Bar Association," Zivkovski adds. "By backing the protest movement, the Bar Association has emphasized the need to address long-standing challenges within the legal system, reflecting the profession's broader commitment to meaningful reforms."
As for public opinion, Zivkovski goes on to say that some support the ongoing movement while others are frustrated by the delays. "Regardless, it is clear that the next steps taken by both the government and the legal community will be crucial. This moment presents an opportunity for meaningful change, but if the issues remain unresolved, we could face prolonged instability."
Focusing on how this uncertainty impacts foreign investment, Zivkovski says that Serbia continues to attract foreign investors, primarily due to competitive business costs, strategic location, and overall ease of doing business. However, "the ongoing administrative and judicial challenges have drawn investors' attention to the broader political and economic landscape. While the investment climate remains stable, ensuring predictability and transparency will be important for maintaining Serbia’s attractiveness for future investments." Zivkovski believes that the way systemic issues are addressed in the coming months will be key to maintaining investor confidence.
Aside from the strike, Zivkovski underlines a promising initiative on the part of the Ministry of Finance – the corporate bond issuance program. "The program aims to stimulate companies to issue corporate bonds by covering a portion of the costs and providing legal and technical support. The first issuance of these green corporate bonds is scheduled for March and has already been approved by the Serbian Securities Commission. According to the Ministry of Finance, nine more companies are preparing to issue bonds under the same framework," he reports. "This initiative is diverse, transparent, and efficient, offering long-term economic benefits to companies, investors, and the broader Serbian economy. If successfully executed, the program could enhance liquidity, improve access to capital, and promote stronger corporate governance practices," Zivkovski outlines.
Finally, Zivkovski reports that there are no significant legislative changes in motion. "Given the current political situation and the absence of a fully functional government following the Prime Minister’s resignation in late January, we are in a wait-and-see mode." Until a new government is in place and operational, Zivkovski indicates that it is unlikely that any major legislative initiatives will take shape. "The next few months will be crucial in determining how the political landscape evolves and what legislative priorities emerge," he concludes.
