Serbia’s EU Reforms Create Expanding Compliance and Advisory Services Market

Serbia’s accession process to the European Union is increasingly reshaping the country’s business environment as regulatory alignment generates new demand for compliance, advisory and professional services. The reform programme now extends beyond legislative harmonisation, influencing investment decisions, corporate governance, financial reporting, procurement practices, digital regulation and environmental compliance while linking reform delivery directly to European funding.

Serbia has opened 22 of the 35 EU negotiating chapters, including all chapters within Cluster 1 – Fundamentals and Cluster 4 – Green Agenda and Sustainable Connectivity, while two chapters have been provisionally closed. Although Cluster 3 – Competitiveness and Inclusive Growth has been assessed as technically ready to open, the European Commission continues to identify rule-of-law reforms and the normalisation process with Kosovo as the principal factors determining the pace of accession negotiations.

Reform Funding Linked to Implementation

The EU Growth Plan for the Western Balkans has introduced a performance-based framework for Serbia’s reform agenda. The country’s programme includes 98 reform measures covering the business environment, private-sector development, green and digital transition, human capital and rule-of-law reforms.

Under the programme, Serbia is eligible to receive approximately €1.58 billion by the end of 2027, with an initial payment of around €112 million dependent on the implementation of agreed reforms. The wider €6 billion Reform and Growth Facility for 2024–2027, consisting of €2 billion in grants and €4 billion in concessional loans, conditions financial support on reform implementation, budget transparency, democratic governance and country-specific performance requirements.

The Growth Plan also provides earlier access to selected elements of the EU Single Market, including the free movement of goods, services and workers, participation in SEPA, road transport facilitation, energy-market integration, decarbonisation initiatives, the Digital Single Market, and integration into European industrial supply chains.

Rule-of-Law Reforms Influence Investment Climate

Judicial reform remains the most closely monitored area of Serbia’s accession process. During early 2026, EU officials warned that proposed changes to Serbia’s justice legislation were undermining confidence in judicial independence and could affect access to approximately €1.6 billion in grants and loans available under the Growth Plan.

The reforms attracted criticism over concerns that they centralised judicial authority and weakened safeguards protecting prosecutorial independence. In April 2026, the Venice Commission concluded that the proposed judiciary and prosecution reforms contained significant shortcomings, including limited public consultation, insufficient stakeholder engagement and inadequate impact assessment.

For businesses and investors, judicial reforms increasingly influence assessments of contract enforcement, procurement transparency, regulatory predictability and corruption risk. These developments are raising demand for legal due diligence, arbitration-ready contracts, compliance documentation, procurement controls and transparent reporting frameworks.

Procurement Reform Expands Professional Services Demand

Public procurement represents one of the largest business sectors affected by Serbia’s accession process. While Serbia’s procurement legislation is broadly aligned with the EU acquis, the European Commission has stated that procurement rules continue to be bypassed through intergovernmental agreements and special legislation, including projects related to EXPO Belgrade 2027.

During 2024, Serbia’s public procurement market represented 10.87% of GDP, while the total value of procurement contracts increased 22%. At the same time, 50.75% of procurement procedures received only a single bid. The value of contracts exempted from the Public Procurement Law declined from €7.1 billion in 2023 to €5.7 billion in 2024, although exemptions remain an area of concern identified by the European Commission.

The evolving procurement framework is expected to increase demand for tender preparation, bidder due diligence, contract-management systems, conflict-of-interest controls, public-private partnership documentation, audit systems, legal remedies and compliance support for infrastructure and energy projects.

State Aid Rules Reshape Investment Framework

State aid regulation is emerging as another major component of Serbia’s accession reforms. Although the country’s State Aid Control Law is broadly aligned with EU legislation, the European Commission has identified continuing gaps involving fiscal state-aid measures contained in legislation governing corporate income tax, personal income tax and free zones.

Serbia has completed an inventory of state-aid programmes but still needs to adopt a time-bound implementation plan together with a regional aid map. The Commission has also noted that financial assistance has, in some instances, been granted to economic operators, particularly foreign investors, without prior approval from the Commission for State Aid Control.

These reforms will require investment incentives for manufacturers, industrial zones, technology projects, renewable-energy developments and infrastructure investments to become more transparent, measurable and compatible with European state-aid rules, creating additional demand for specialist legal, subsidy-control and investment advisory services.

Corporate Reporting Standards Tighten

Corporate reporting is undergoing significant reform as Serbia aligns accounting requirements with EU legislation. In May 2026, the Ministry of Finance, supported by the World Bank Centre for Financial Reporting Reform (CFRR), held public consultations on proposed amendments to the Accounting Law and Audit Law.

The proposals revise company and group-size thresholds in line with updated EU criteria, introduce mandatory sustainability reporting based on European Sustainability Reporting Standards for companies employing more than 1,000 people and recording annual turnover above €450 million, and establish income-tax reporting requirements for ultimate parent companies with revenue exceeding €750 million in two consecutive financial years.

The reforms require larger companies, public-interest entities and foreign-owned corporate groups to strengthen sustainability reporting, internal controls, audit readiness, environmental data management, emissions reporting, supply-chain information and related-party transaction monitoring.

Energy and Environmental Compliance Advances

Energy policy continues to evolve under Serbia’s accession commitments. The country completed its second renewable-energy auction in March 2025, awarding support for 300 MW of wind generation and 124.8 MW of solar capacity, increasing supported renewable generation under the programme to 770 MW.

Serbia has further aligned national legislation with the Renewable Energy Directive II, including certification systems for renewable-energy installers and enhanced regulation governing energy communities and prosumers. Additional work remains on implementing energy communities, advanced biofuels and renewable fuels of non-biological origin.

Environmental reforms also include legislative progress covering Environmental Impact Assessment, Strategic Environmental Assessment, air quality regulation, Monitoring, Reporting, Verification and Accreditation (MRVA) for stationary installations, waste prevention and hazard-risk management. The reforms increase the importance of continuous environmental monitoring, emissions reporting, waste documentation and lender-grade environmental compliance systems.

Digital and Financial Regulation Progresses

Digital policy reforms continue under EU alignment. Serbia is assessed as moderately prepared in digital transformation and media, has joined the European Digital Innovation Hubs network, participates in the Digital Europe Programme, and has incorporated the EU 5G Cybersecurity Toolbox into national legislation.

Outstanding reforms include secondary legislation under the electronic communications framework, strengthening the independence and institutional capacity of RATEL, adopting broadband infrastructure legislation aligned with the Gigabit Infrastructure Act, implementing the 112 European emergency number, and completing supplier-risk assessments for 5G networks.

Cross-border payments have also advanced through Serbia’s integration into the Single Euro Payments Area (SEPA). Serbia entered the geographical scope of SEPA in May 2025, while the European Commission welcomed the country’s participation in SEPA payment schemes in May 2026, enabling faster and lower-cost euro transactions as Serbian payment providers adopt the relevant schemes. The changes support exporters, information technology companies, freelancers, tourism businesses, e-commerce merchants, foreign-owned SMEs and regional enterprises.

Financial-market regulation is also progressing through EU-backed PLAC IV assistance. Serbia’s Securities Commission has received draft secondary legislation covering investment-firm conduct, prudential supervision, client categorisation, tied agents, accepted market practices and capital requirements. These measures prepare the market for alignment with MiFID II, the Investment Firms Directive and the Investment Firms Regulation, although amendments to the Capital Market Law remain necessary.

Compliance Services Become a Growth Sector

The expanding regulatory framework is creating demand for services supporting procurement compliance, state-aid structuring, sustainability reporting, environmental MRV systems, digital regulation, SEPA integration, capital-market compliance, public-private partnership documentation, energy permitting, CBAM-ready industrial reporting and internal control systems for exporters.

Businesses seeking access to EU finance, procurement opportunities, industrial supply chains and export markets are increasingly required to demonstrate compliance through documented procurement procedures, lawful state aid, verified emissions data, reliable financial reporting, traceable sustainability disclosures, secure payment systems, cybersecurity controls and enforceable contractual arrangements.