On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), GTZ has been supporting the countries in South-Eastern Europe since 1992 in establishing a competitive market economy. In addition, its business area GTZ International Services works on behalf of international organisations in this region.
Technical Cooperation with the Federal Republic of Yugoslavia was commenced after the ousting of the Milosevic regime in October 2000 and the raising of the international economic sanctions. After the dissolution of the Federal Republic of Yugoslavia, cooperation with its legal successor, the former union of Serbia and Montenegro, continued without interruption. The international oil and trade embargo against the Milosevic regime, combined with the military interventions by NATO in the Kosovo conflict, led to a collapse of the political and economic system. The country has yet to recover.

Liberalisation of the economy was only possible in gradual stages after the fall of the Milosevic regime and the political opening up of the country. The priority goal of German Development Cooperation is to support the economic and social reforms undertaken by the Government in Belgrade to further stabilise the country, and to help it develop closer links with the European Union (EU).

Since the GTZ coordination office opened in Belgrade in November 2000 and the Federal Republic of Yugoslavia was included in the Stability Pact for South-Eastern Europe, Technical Cooperation activities have focused on reconstruction, supporting the economic transition process and reducing ethnic divergences.

The declaration of independence by the Montenegrin parliament in June 2006 ended the State Union of Serbia and Montenegro as successor to the Federal Republic of Yugoslavia. Montenegro left the union as a sovereign state.

In the Republic of Serbia, Technical Cooperation concentrates on the following priority area

• Economic development and employment

with special focus on

• structural reforms
• reorganising the financial sector.