VZCZCXYZ0000
RR RUEHWEB

DE RUEHBW #0236/01 0780616
ZNR UUUUU ZZH
R 190616Z MAR 09
FM AMEMBASSY BELGRADE
TO RUEHC/SECSTATE WASHDC 1079
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/USDOC WASHDC

UNCLAS BELGRADE 000236 
 
SENSITIVE 
 
SIPDIS 
USDOC FOR 4232/ITA/MAC/EUR/OEERIS/SSAVICH 
 
E.O. 12958: N/A 
TAGS: ECON PGOV SR
SUBJECT: SERBIA: MAYOR DJILAS OUTLINES BELGRADE'S PRIORITIES 
 
Reftel: Belgrade 185 
 
SUMMARY 
------- 
 
¶1.  Mayor Djilas told Ambassador his foremost priority was to 
implement social programs for Belgraders amid this tough economic 
period.  Due to the financial crisis, infrastructure projects have 
slipped to second place on Djilas's priority list.  Djilas believed 
both of these tasks would be difficult to finance given the expected 
budget cuts.  Djilas' focus on tangible programs from which Belgrade 
citizens will benefit is also a political move that he hopes will 
help him win re-election in three years time.  End Summary. 
 
Good City-Embassy Cooperation 
------------------------------ 
 
¶2.  (U) On March 18, Ambassador met with Belgrade City Mayor Dragan 
Djilas of the Democratic Party (DS).  He thanked Djilas for his 
support for the New Embassy Compound (NEC) and USAID's renovation of 
the Dom Omladine center which houses Belgrade's American Corner, and 
asked that he and his staff ensure that remaining and possible 
future bureaucratic obstacles on these two projects continue to get 
his attention to ensure speedy resolution.  The Embassy requested 
Djilas' help in preventing bureaucratic obstacles from slowing the 
construction of the NEC, final inspection of Dom Omladine, and the 
expansion the International School of Belgrade.  Thus far, the 
Embassy has had good cooperation with the City of Belgrade. 
 
City Budget to Decrease 
----------------------- 
 
¶3.  (U) When asked about his media announced strategic plan for the 
Belgrade, Djilas said his plan was "more marketing than real life." 
Djilas said he knew that the city's budget would decrease because 
the state budget will be revised downward in April or May. 
According to Djilas, 15% of Belgrade's budget came from the state. 
He criticized the state's inevitable plan to take money from cities 
and municipalities when the federal government had redundant 
employees and abundant resources.  Djilas believed 2010 will be even 
worse for Belgrade as he did not expect that there would be new land 
leasers this or next year.  Payments for leased land from the city 
accounted for 50% of Belgrade's revenues, according to Djilas. 
 
People First, Infrastructure Second 
----------------------------------- 
 
¶4.  (U) Djilas' plan is to focus first on social problems and second 
on infrastructure projects.  Djilas said the budget would be used to 
supplement pensions, give financial support to pregnant women, build 
12 much needed kindergarten, run soup kitchens, and improve the 
neighboring water waste treatment plant.  Second in line would be 
the construction of two bridges, one from the northern suburb of 
Zemun across the Danube River to Borca (as part of the planned Ring 
Road to keep traffic out of the center of the city) and the other 
across the Sava River to New Belgrade over Ada Ciganlija City Park. 
Although there were discussions with the Russians, Canadians, and 
Chinese about constructing a metro system in Belgrade, Djilas deemed 
the project as impractical at this time, and something for the 
national government to take on. 
 
Self-Assured 
------------- 
 
¶5.  (SBU) Djilas seemed comfortable that the public was satisfied 
with his performance.  He predicted that  DS would secure 40% of the 
vote if new elections were held today and thus be able to reduce the 
number of parties in the municipal governing coalition from the 
current five  (DS, G17 Plus, Liberal Democratic Party, Socialist 
Party, and Pensioners Party).  When asked how the coalition was 
faring, Djilas said overall cooperation with LDP was fine, but 
admitted that he was often at odds with SPS members, with the 
exception of City Assembly President and former SPS Belgrade Board 
Chairman Aleksandar Antic, whom Djilas characterized as sensible and 
as someone who has delivered on his promises.  Djilas was also open 
about his continued conflict with Minister of Infrastructure Milutin 
Mrkonjic over Mrkonjic's populistic and unrealistic public 
statements on social welfare issues.  Nevertheless, Djilas stated 
that it was not in Serbia's or Belgrade's greater interest to have 
new elections at this time; rather, continuity and stability were 
more important.  Finally, Djilas said corruption was still a 
significant problem that the DS party wanted and needed to tackle. 
 
COMMENT 
------- 
 
¶6.  (U) Belgrade, like the national government, is feeling the 
effects of the financial crisis and has chosen to focus on the needs 
of the most needy Belgraders and not on grandiose infrastructure 
projects for which funding is tough to secure.  The move to 
implement social programs and small-scale infrastructure projects is 
also politically-driven, as Djilas freely admitted; his success will 
have a big impact on whether he is re-elected three years from now. 
End Comment. 
 
MUNTER