Serbia’s legal market is influenced by ongoing political instability stemming from months-long student protests and the recent resignation of the Prime Minister, according to NKO Partners Junior Partner Branko Jankovic. This situation is expected to slow M&A activity, particularly in real estate and mining, though everyday employment-related legal work is on the rise.
"The main topic right now is certainly the ongoing political situation, particularly the student protests that have persisted for about four months," Jankovic begins. "The massive protest held in Belgrade on March 15 was peaceful and it definitely ended up pushing matters forward. A short while after it took place, the National Assembly acknowledged the resignation of the Prime Minister; currently, there's uncertainty around the next steps, whether we'll have a new government, new elections, or a transitional administration." Naturally, this political instability is influencing the legal market significantly, Jankovic reports, particularly M&A transactions across different sectors. "Real estate development projects, especially the EXPO 2027 project, are likely to experience implementation delays, while the mining sector has already seen a slowdown due to permit issuance being effectively on hold."
As for other significant events, Jankovic points to the "month-long strike by lawyers, which concluded on March 4. There's an ongoing discussion about the possibility of another strike or work suspension, with an extraordinary session of the Bar Association convened for March 29, to discuss this option." The upcoming vote will decide whether further action will occur. "This has understandably created additional uncertainty in the legal profession," Jankovic adds.
Still, even with these circumstances, Jankovic shares that "despite everything, the business and investment climate remains relatively stable for now. However, we anticipate a noticeable slowdown in M&A activity, particularly in real estate and mining." On the other hand, he reports an increase in everyday legal work, "especially in the area of employment law, such as managing redundancies triggered by the political and social climate."
As for any notable legislative developments, Jankovic reports these matters are "mostly on hold at the moment due to the political situation. Until there's a clear direction, whether we have a new government, elections, or some transitional solution, significant legislative developments are unlikely." According to him, "the general approach currently is one of "wait and see" with most stakeholders awaiting political stabilization before proceeding."
Finally, Jankovic indicates that Serbia's immediate future is heavily dependent on political developments. "Naturally, this uncertainty is influencing both transactional work and day-to-day legal advisory. Once the political landscape clarifies, we'll have a better sense of direction and stability, but for now, the situation remains fluid," he concludes.