The European Commission said in a draft progress report on Serbia that official Belgrade has made insufficient progress on core issues related to democracy, rule of law, and alignment with EU foreign policy.

The draft document that N1 had access to said that the Serbian authorities need to show the political will to enforce judicial independence and address high-level corruption, improve transparency in the election process, public financial management, and legislative alignment with the European Union. It added that clearer alignment with EU policies, particularly in foreign relations with Russia and China, and more robust action against corruption within public institutions is needed. It said Belgrade’s continued high-level engagement with Moscow and reluctance to align with EU sanctions, raises strategic concerns and undermines EU solidarity. “Serbia’s recent Free Trade Agreement with China further complicates its alignment with EU policies,” it said.

“Serbia’s path to EU membership requires substantial, sustained reforms in governance, accountability, judicial autonomy, and economic structure. The EU has underscored that these foundational changes are non-negotiable for Serbia to advance further in the accession process,” the report said.

It noted that Serbia has continued to broadly implement the Stabilisation and Association Agreement (SAA) nbut to continue aligning its legislation to reach full compliance with the SAA.

In terms of democracy and political reform, the report noted significant flaws in Serbia’s election process, including media imbalance and systemic advantages for the ruling party that undermine fair competition. “Oversight bodies are deemed ineffective, and opposition concerns regarding election irregularities remain unresolved, particularly in Belgrade. The EU also notes continued polarization and tensions within Parliament, with limited opposition participation and frequent use of offensive language,” it added.

The report warned that Serbia’s Parliament lacks transparency and independence, with its agenda largely driven by the government.

The report said that the reform of the public administration is slow with structural issues. The reform shows minimal advancement and concerns over transparency and stability. It said that recommendations on merit-based hiring, reducing acting positions, and improving financial control have largely been ignored.

It warned of a lack of transparency in capital investment management, procurement, and overall fiscal governance with the awarding of large-scale infrastructure contracts without transparency and increasing reliance on international agreements are seen as contributing to corruption risks.

According to the report, Serbia has made limited progress in judicial reforms. It expressed concern over the lack of independence in Serbia’s judiciary. “Judicial vacancies, high levels of political pressure, and an ineffective High Judicial Council compromise judicial autonomy. Despite new laws intended to protect independence, public comments by government officials and Members of Parliament undermine these reforms,” it said. “Serbia’s Constitutional Court faces delays and rising case numbers, resulting in inefficient adjudication. The EU underscores the need to reform the court by introducing a qualified majority mechanism to avoid deadlocks in judicial appointments,” it added.

The report said that corruption remains pervasive in Serbia, with a lack of convictions in high-level corruption cases indicating weak enforcement. “Limited progress has been made on anti-corruption recommendations, and the EU calls for targeted risk assessments in vulnerable sectors. The EU also notes Serbia’s insufficient commitment to prosecuting war crimes, particularly against high-level suspects, and highlights the backlog of over 1,700 pre-investigative cases as a serious concern,” it said.

“Serbia’s economy is hampered by the dominance of state-owned enterprises, which limits competitiveness and fosters inefficiency. Weaknesses in the rule of law, particularly in addressing corruption and judicial inefficiency, further deter private sector growth and foreign investment,” it said.

The report said Serbia’s green transition is sluggish and urged swift action to reduce reliance on fossil fuels, decarbonize industry, and attract green investments. “There is concern that Serbia’s lack of action here may hinder its competitive standing in the EU market,” the European Comission said.

The report said that Serbia maintains non-tariff trade barriers, which contravene EU agreements and its obligations under the SAA.

“The EU raises concerns over verbal attacks and smear campaigns against CSOs, often instigated by high-level officials or state-aligned tabloids. There is also an increase in strategic lawsuits against public participation (SLAPP) brought by authorities, which stifles public discourse and civic engagement,” the report said

It said that Serbia’s public financial management lacks proper oversight, procurement for large projects lacks transparency the government has failed to publish critical budgetary documents. It added that there is insufficient budgetary control.

The report said that Serbia has made no progress on recommendations for freedom of expression and added that Belgrade should implement the new media laws, reinforce protection for journalists to make sure high-level officials don’t label or verbally assault them and follow up quickly on threats and violence. It should also ensure transparent and equitable co-funding for media content serving the public interest, and full transparency in media ownership and advertising.