EditVučić responds to protests with counter-rallies and anti-inflation reforms
The initiatives reflect Serbia’s President strategy to mobilise his base amid growing unrest
In a bid to counter ongoing anti-government protests and address mounting economic concerns, Serbian President Aleksandar Vučić has orchestrated a multifaceted response, combining pro-government rallies with a package of economic measures aimed at improving living standards and curbing inflation.
On Saturday (23 August) pro-government demonstrations took place across 71 cities and municipalities in Serbia, drawing according to the authorities nearly 70,000 citizens in a show of support for Vučić’s administration.
These rallies, held in response to student-led protests and lockdowns that allegedly have disrupted daily life, underscored the government’s call for “peace, stability, and security.”
Meanwhile, Vučić announced decrees to cap profit margins on food and consumer goods and limit interest rates on loans, signalling a populist push to alleviate economic pressures.
The pro-government rallies were a direct reaction to months of anti-corruption protests and student lockdowns, which demonstrators claimed restricted freedom of movement and work. Participants in the rallies, waving Serbian flags and carrying banners with slogans like “Citizens against exclusion” and “I want to study,” called for a return to normalcy.
The events remained peaceful, with no reported incidents of violence or property damage, a testament to the security forces’ preparedness, according to Police Director Dragan Vasiljević.
Vučić, joined by key political figures such as Serbian Progressive Party President Miloš Vučević, Interior Minister Ivica Dačić, and Defense Minister Bratislav Gašić, marched in Ub, in Western Serbia, emphasizing dialogue as the path to resolving political tensions.
“Problems cannot be solved in any other way than through dialogue,” Vučić stated, inviting his opponents to negotiate.
The rallies reflect Vučić’s strategy to mobilise his base amid growing unrest. Anti-government protests, fuelled by allegations of corruption and dissatisfaction with governance, have gained traction in Serbia, with some critics accusing the government of authoritarian tactics.
On the economic front, Vučić unveiled measures to address Serbia’s high inflation rate, which reached 4.9% in July 2025, exceeding the central bank’s target of 3% ± 1.5%.
On Sunday, he announced decrees to cap profit margins at 20% for 3,000 products across 23 categories in major retail chains, targeting 24 companies with turnovers exceeding 4.5 billion dinars, including Delez, Mercator, Lidl, and Univerexport.
These chains account for 51% of Serbia’s retail trade in food and household goods. Wholesalers will also face a 20% margin cap, affecting 44 companies.
Vučić emphasized that these measures aim to reduce prices by over 15%, increase purchasing power, and curb inflation, particularly as food and drink consume 40.6% to 47.8% of the average Serbian salary, compared to 13–15% in the European Union.
Additionally, Vučić announced a cap on interest rates for cash loans at approximately 7.5%, a three-percentage-point reduction from the current average, to ease financial burdens on borrowers.
The central bank’s decision to maintain its benchmark rate at 5.75% underscores the government’s independent push to control borrowing costs. These decrees, which bypass parliamentary approval, will be enforced with strict inspections and hefty fines for non-compliance.
Vučić acknowledged past failures in price control efforts, citing loopholes exploited by retailers, but expressed confidence in the comprehensive nature of the new measures.
The economic reforms are part of a broader strategy to address public discontent and stabilize Serbia’s economy. Vučić highlighted plans to adopt the Law on the Prevention of Unfair Trade Practices by year-end and align with EU directives on price transparency through a new Law on Consumer Protection.
These steps aim to prevent deceptive pricing practices and enhance consumer trust. However, the exclusion of small rural markets from the margin caps reflects a pragmatic approach to avoid undermining local businesses unable to compete with larger chains.
Critics, however, argue that these measures may fall short if enforcement is weak or if underlying systemic issues, like corruption, remain unaddressed.
Sources: IBNA, Reuters, Beta
Caption: Serbian President Aleksandar Vučić emphasised that the announced measures aim to reduce consumer prices by over 15%. Photo: Beta agency, Miloš Miškov
Updated: August 25, 2025 - 06:56
