Political Dangers To Financial Markets

We are now moving into a critical phase in the final constitutional settlement for Serbia and Montenegro. Geopolitically, the issue of Kosovo remains paramount, and is having major ramifications within the UN protected region, Serbia, and also Macedonia. In Kosovo itself, the government’s negotiating party is upping the ante, and has recently been concentrating on economic issues. A special subgroup has been formed, and is pushing for the return of EUR300mn in pension funds, EUR150mn of deposits in Serbian banks claimed by Kosovo, and millions of euros in compensation for damage to public enterprises. It is also keen to press

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