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Subject

The new government sworn in on August 11.

Significance

Impressive results in stabilising the public finances have bought significant breathing space, but structural reforms are lagging behind, with most of this year wasted for reforms thanks to the election cycle.

Impacts

Including the SPS and several ethnic minority parties in the ruling coalition will ensure a two-thirds majority in parliament.

Belgrade and Prishtina may be expected to intensify efforts to tie up loose ends left over from the 2013 Brussels agreement.

Most crucial of these will be the much-delayed establishment of an association/community of Serb municipalities in Kosovo.

Tensions between Nikolic and Vucic will escalate as Vucic seeks to prevent Nikolic from running for a second presidential term.

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