The contentious articles prohibiting the reporting of state debt have been removed from the proposed amendments to the Capital Market Law after the Ministry of Finance approved the suggestions made by CIVIS MP Maja Vučelić during today’s Economy Committee meeting, thus incorporating them into the bill.

This decision followed consultations with the European Commission, with further coordination regarding reporting on borrowings expected as part of the closure of Chapter 9 (Financial Services).

On May 28, “Vijesti” reported that the Government had included two articles in its proposal for amendments to the Capital Market Law, without public discussion, which barred the publication of information, data, and projections related to the issuance of government securities through which the state borrows. The articles stipulated that such disclosures “could affect the willingness of potential investors to purchase government debt securities.”

The ban extended to both media publication and public gatherings, with fines ranging from 5,000 to 40,000 euros imposed on media outlets, the same amounts on responsible individuals in the media, and fines from 1,000 to 5,000 euros on private citizens.

Vuković Did Not Attend the Session

Minister of Finance Novica Vuković, whose department had introduced the articles to the proposed amendments to the Capital Market Law, did not appear at the committee session. Instead, he sent assistants Andrijana Ulić Rajović, Aleksandra Popović, and cabinet head Jovana Bojić.

During the Economy Committee session, Boris Mugoša, the chairman and SD MP, questioned representatives from the Ministry of Finance about whether it was true that the draft law had not included articles banning the publication of debt-related data during the public consultation phase. He also inquired about who proposed their inclusion in the draft and what analyses supported it.

Ulić Rajović briefly responded, stating, “The Ministry of Finance will provide a detailed explanation when the relevant amendments are on the agenda of the session.”

DPS MP Mihailo Anđušić commented during the debate that the disputed articles highlighted the Government’s operational style. He indicated that as Minister of Finance, he would staunchly defend this norm and not retract it. He expressed hope that such triviality would not recur and emphasized the need to “remain vigilant” to prevent the Government from pushing through undue changes in legislation.

Democrat MP Zdenka Popović responded, reminding everyone that the previous DPS government had hidden debt data in 2018 and voiced her support for Vučelić’s amendments.

BS MP Mirsad Nurković (BS) expressed uncertainty about whether the amendments were heading in the right direction and argued for the need to keep certain information confidential prior to a deal’s conclusion. He read aloud the controversial article banning the publication of data from the preparation stage until the official announcement by the Ministry of Finance, stating he found nothing contentious about it and implied that such a norm might be shielding against potential misconduct, which is not uncommon globally.

“Jealousy” Over the Amendment

Mugoša remarked that he believed Vučelić had authored the amendments and questioned whether the European Commission had communicated directly with her. He noted that Vučelić justified the removal of the controversial article by referencing the European Commission’s request to defer the matter of banning public disclosure of information regarding government securities to a later stage in the negotiation process.

“If the European Commission reached out to you, I take pride that someone in Brussels is focusing on you personally,” Mugoša emphasized.

Vučelić responded, “I regret that you feel jealousy over my amendments,” asserting that she had based her proposals on the directives and regulations of the European Commission.

Mugoša challenged the definition in the disputed article that prohibits publishing material information and data that could affect potential investors’ willingness to purchase government securities, questioning who determines what constitutes strategic importance.

Reading from Paper

Ulić Rajović read a statement from the Ministry of Finance, asserting that the state borrowing process is one of the most significant issues directly impacting the public interest of all citizens. She highlighted that materials related to borrowing prepared for the Government are marked with varying levels of confidentiality per the Law on Data Secrecy.

“The rationale for designating materials as confidential is to maintain financial market stability, prevent market manipulation, protect public interests, deter influences on domestic and foreign investors, and curtail fluctuations in state debt prices on domestic and international capital markets. The Ministry of Finance seeks to standardize this matter precisely because the dissemination and manipulation of this information can directly impact investor decisions and state debt pricing,” Ulić Rajović explained.

She noted that previous instances have shown that media reporting and public commentary on the subject matter led to negative impacts, warranting this proposed solution as a protective measure for the public interest.

“Specifically, early investor awareness about prospective issuances can inadvertently lead to adjustments in the sale of existing bonds in the secondary market, which can depress existing bond prices and inflate yields, ultimately influencing new debt interest rates,” Ulić Rajović added. She highlighted that EU regulations safeguard privileged information, asserting that such information must be kept confidential to prevent market disruptions before finalization, which could consequently increase government debt costs.

She concluded by reaffirming that the proposed Ministry of Finance solution aims to ensure that the price of government debt—critical for the citizens’ standard of living—is protected, all while respecting freedom of speech and reporting.

Lastly, she mentioned that the Ministry agrees to the temporary removal of the aforementioned articles and will continue collaborating with the relevant directorates-general of the European Commission to address this issue during the closure of Chapter 9 while aligning the capital market law with EU directives on the matter.

She emphasized the unprecedented transparency in the hiring process during Minister Vuković’s term, representing a commitment to public interest.

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