A closer look at how Italian companies are navigating challenges, promoting sustainability, and deepening cooperation within Serbia’s evolving market landscape
Interview by: Dragan Nikolić
In this interview, Romano Rossi, President of Confindustria Serbia, reflects on the evolving nature of Italian-Serbian economic cooperation, highlighting the shift from traditional manufacturing to IT and services. He discusses how Confindustria supports its members in navigating local challenges, embracing ESG standards, and fostering responsible business practices, while outlining future initiatives aimed at strengthening bilateral partnerships and ensuring long-term sustainability in Serbia’s business environment.
How do you assess the current level of economic cooperation between Italy and Serbia, and which sectors hold the greatest potential for further development?
There is still an excellent level of economic and commercial partnership between Italy and Serbia. However, over time, it has shifted from being primarily manufacturing-based to focusing more on IT and service sectors. Although this is a natural evolution that follows a global trend, I consider this shift a weakening of the kind of value Serbia could have offered to European Union countries.
Recent closures, such as those of Geox and the possible one of Benetton, have created significant pockets of unemployment that should be avoided. Therefore, attention must be paid to the constant rise in wages (now occurring annually), as it could lead to recession rather than greater prosperity, contrary to the intended goals.
How does Confindustria Serbia support its member companies in achieving their business objectives and integrating into the local Serbian community?
We act in various areas. For potential investors looking to enter the Serbian market, Confindustria provides significant support in gathering all the necessary information to move forward, covering bureaucracy, customs, optimal locations, potential incentives, local partners, as well as technical, accounting, and tax-related aspects.
For companies already operating locally, we play a key role in facilitating connections between businesses and authorities at all levels—both local and national—and can directly intervene in issues related to day-to-day operations (such as tax and customs matters).
Moreover, as part of our activity plan, we organise essential seminars that help ensure development is aligned with current business principles, such as ESG criteria implementation and other key topics.
Finally (though certainly not least), as an association, we have the strength to negotiate agreements with major players in the local market, enabling us to offer economic benefits to all our members.
A modern economy cannot exist without responsible and sustainable business practices, but they must also be economically viable
ESG Lab has been recognised as an important initiative for raising awareness about sustainable business practices. What have been its results, and how have member companies responded?
It is certainly a very topical issue today, but it must be given the right consideration within the proper context. On one hand, there is no denying that the principles of sustainable growth and “fair” corporate governance are fundamental in 2025. On the other hand, the economic sustainability of businesses, particularly small and medium-sized enterprises, must also be taken into account. The costs of fully complying with ESG criteria could, in some cases, be high enough to jeopardise the survival of a company.
Therefore, our current efforts are focused on initiatives that can help channel the necessary funds into companies’ budgets to support this transition, such as non-repayable grants tied to specific ESG objectives or longer timelines for converting production facilities.
ESG stands for Environmental, Social, and Governance, encompassing growth, motivation, and respect for the environment, but it must remain a realistic and economically sustainable goal for companies.
In what ways do Italian companies in Serbia contribute to social life, particularly in areas such as education, youth employment, and support for local communities?
In general, conducting business also involves participating in the country’s social and cultural life. In this regard, Confindustria is constantly present within universities, with which we have established an ongoing collaboration and exchange program. One of our board members is specifically delegated to manage relations with educational institutions, including both primary and secondary schools, as well as universities. Our associate members also actively and willingly participate in the life of the local communities where they operate, through sponsorships or patronage of events, thereby contributing to the development and growth of various regions.
What are the primary challenges Italian companies encounter on the Serbian market, and how does Confindustria Serbia assist them in overcoming these obstacles?
Challenges are closely tied to the sector in which a company operates. In manufacturing, the primary challenge is mitigating the continuous rise in wages by implementing more efficient production processes. In the services sector, companies face a shortage of already skilled personnel, which makes internal training a necessary investment. Common challenges across industries include transportation, customs procedures, and bureaucracy.
In all these areas, Confindustria serves as a reliable point of reference, providing concrete support by intervening with the relevant authorities, initiating beneficial cooperation with ministries (such as in the current issue regarding road transport passing through Croatia), and generally assisting its members in all activities related to these matters.
In many cases, the line between Italian and Serbian companies is blurred, and that closeness is one of the true engines of Serbia’s economy
What role does Confindustria Serbia play in promoting socially responsible business practices among Italian investors?
Our recommendations to member companies are to apply the principles consistently promoted by Confindustria’s headquarters in Rome, which represent a core value of the association: workplace safety, dignified treatment of workers, full compliance with wage regulations, adherence to the principles of the Minimum Living Wage (MLW), and a strict prohibition of child labor. We also encourage our members to invest in audits conducted by accredited firms to ensure that these fundamental standards are consistently implemented and respected.
What activities and projects do you plan to implement soon to strengthen cooperation between Italian and Serbian companies further?
We have a very full agenda of activities, many of which are designed to strengthen cooperation between the two countries. I wouldn’t draw a strict distinction between Italian and Serbian companies, as in many cases the two concepts merge: Serbian companies with Italian participation, joint ventures, or Italian companies with Serbian governance.
It is precisely this closeness and dynamic interaction that we view as one of the primary drivers of the Serbian economy, within a broader vision of a mutually beneficial situation for both parties.