Development Cooperation

Germany — Serbia

With the foundation of the Stability Pact at the end of the 1990s readiness was shown to help countries in Southeast Europe in overcoming economic and social challenges. Serbia has a crucial role in the political stability of Southeast Europe and is one of the most significant partners of German development cooperation in the region. German support for Serbia has aimed, since it was established, to contribute to EU rapprochement, strengthen the performance of the economy and, in turn, to improve living conditions in the country. The German Government has made available more than €1.6 billion for development cooperation in Serbia since the democratic changes in 2000. Germany is therefore one of the largest bilateral donors to Serbia. Germany also supports Serbia indirectly through the support of the EU, of which Germany contributes 20%.

Funding for development cooperation with Serbia comes mainly from the budget of the Federal Ministry for Economic Cooperation and Development (BMZ). BMZ works through two organizations to implement the German-Serbian economic cooperation: the KfW Development Bank manages investment projects and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH implements counselling projects. Many non-governmental organizations are provided funding by the BMZ to implement projects in Serbia. All activities aim to achieve in the region of the Western Balkans what has already been achieved in the countries of the European Union: peace, stability and prosperity.

3 Focal Points

of Cooperation


A significant focal point of German support is the modernization and construction of public infrastructure (e.g. water supply, sewage and waste management, renewable energy sources, power lines, energy efficiency in buildings) in order that energy and water sources are used efficiently, to contribution to climate and environmental protection, and to improve living conditions in the country.

Good Governance

The promotion of democracy, civil society and public administration is another focal point, including the reform of the judiciary and the respect of human rights. The promotion of local development and funding is closely connected to these efforts. Municipalities, as the smallest administrative units in the country, are closest to their own communities and are best able to identify improvements that are most important for citizens.

Sustainable Economic Development

The people of Serbia aspire for economic growth, job creation and a better future for themselves and their children. The support of necessary reforms to the economy is therefore a third –and very important– focal point of development cooperation. These efforts go hand in hand with other investment and counselling projects, for example in the area of support for SMEs and good governance. We also support education projects and promote understanding between young people from Serbia and Germany.