German Chancellor Angela Merkel and Serbian PM Aleksandar Vucic in Belgrade | Photo by Beta/AP

After meeting Serbian Prime Minister Aleksandar Vucic in Belgrade on Wednesday, Merkel told a press conference that Belgrade has shown great flexibility in the Brussels-backed dialogue to normalise relations with Kosovo.

“You can count on our [German] support. We can see that there is a great willingness to compromise with the Serbian side. We will point out that during the discussions within the EU,” Merkel said.

She also said that Germany strongly supports the austerity measures the Serbian government introduced in order to revitalize the economy.

“People have to tighten their belts, but that measure has provided initial results,” Merkel said, adding that the Serbian economy is on a healthy basis now.

At the joint press conference, Vucic said that Merkel’s two-day visit was a “great honour” for Serbia because she was a “key player in the stabilization process in the Balkans.”

Vucic said Serbia had three major objectives – to maintain regional peace and stability, continue with economic reforms and further accelerate European integration.

He added that he “did not pray” to Merkel for financial support or the opening of the first chapters in the talks with the EU.

“But I said that Serbia has done a lot and it was not always easy,” he added.

Hours before Merkel’s visit to Belgrade, German company Continental signed a memorandum with Serbian government on the opening of a new factory in the northern Serbian town of Subotica. The investment should be worth around 17 million euros and employ 500 workers.

Merkel and Vucic also discussed problems with migrants from the Middle East and Africa who are trying to reach the EU via Balkan countries.

The German Chancellor said that Serbia was facing a great challenge since it became a transit country for migrants and that the EU will try to help.

Serbian police director Milorad Veljovic said on June 22 that around 1,000 people try to enter Serbia every day via Macedonia and Bulgaria after fleeing conflicts in the Middle East or Africa.

The German Chancellor arrived in Belgrade on Wednesday as part of her Balkan tour. Before Serbia, she went to Albania where she said that the EU had no timetable for Tirana to start membership talks, which depends on the pace of reforms.

On Thursday, Merkel will meet Serbian President Tomislav Nikolic and civil society representatives. After that she will travel to Sarajevo, where she ends her Balkan tour.