top of page

Serbian Prime Minister Resigns Amid Mass Protests, Shaking Europe

Writer's picture: Team WrittenTeam Written

In late January 2025, Serbian Prime Minister Miloš Vučević resigned amid mass protests that erupted after a deadly railway station roof collapse in Novi Sad claimed 15 lives. Public outrage quickly broadened into accusations of corruption and poor oversight, revealing deep fractures in Serbia’s political system. As the crisis intensifies, the wider implications—economic, political, and diplomatic—are coming sharply into focus.


Serbia’s long-serving President Aleksandar Vučić, in power since 2017, now faces the most significant challenge to his leadership. Protesters have filled the streets for weeks, demanding accountability for the Novi Sad tragedy, which many blame on mismanagement by a Chinese-led construction consortium. Vučević’s pledge to replace part of the government and offer amnesty to arrested demonstrators underscores the administration’s mounting anxiety.


Prime Minister Vučević, who was mayor of Novi Sad when the renovation project began, acknowledged “political responsibility” for the fatal incident. Even Novi Sad’s mayor has stepped down, while prosecutors have indicted several officials over possible corruption in the station rebuild. Yet these symbolic actions may not be enough. Persistent public dissatisfaction suggests deeper reforms are necessary to restore faith in Serbia’s institutions.


The prime minister’s resignation paves the way for a sweeping government reorganization that may momentarily appease protesters. However, it also opens a leadership vacuum at a delicate time for Serbia’s domestic and foreign policy agendas. President Vučić’s reputation as a firm-handed leader faces its toughest test yet. To stabilize the country, he may need to incorporate opposition voices and step up anti-corruption measures. Recent demonstrations, led by students, farmers, and civic groups, indicate growing momentum for systemic change. Their calls for greater transparency, judicial independence, and infrastructure accountability could force the ruling party to consider long-overdue reforms.


As these immediate challenges unfold, the crisis is also shaking investor confidence, potentially undermining the economic gains Serbia has enjoyed in recent years. Serbia’s economy, bolstered by foreign direct investment (FDI) and strong trade ties with the EU, stands at a crossroads. The political upheaval raises concerns about infrastructure oversight and fiscal stability, underscoring how fragile confidence can be in times of scandal.


Chinese firms have invested heavily in Serbian infrastructure, including the high-speed rail link between Belgrade and Budapest. With critics blaming lax oversight and poor construction quality for the Novi Sad collapse, these projects now face heightened scrutiny. Investigations into existing contracts may lead to strict audits, increasing costs and slowing construction. This climate could favor European and American contractors over Chinese firms in the future. Global lenders—ranging from European and Asian to Gulf-based institutions—may reassess their risk exposure to Serbia, posing a threat to the country’s near-term growth.


The resignation of Prime Minister Vučević coincides with Serbia’s public commitment to favor major European automakers over Chinese companies for developing the country’s sizable lithium deposits. The Jadar deposit in northwestern Serbia could meet about 17% of Europe’s annual lithium demand. A new memorandum of understanding aims to strengthen Serbia’s “strategic partnership” with the EU on raw materials and green technologies, reflecting a shift toward European standards and away from sole dependence on Chinese investment. After earlier environmental concerns halted progress, Belgrade has now given Rio Tinto conditional permission to resume its lithium project, provided it meets stricter ecological requirements. Local activists remain vocal about the potential ecological toll of lithium mining. The same protest dynamic seen in Novi Sad could easily shift to environmental issues if citizens perceive insufficient safeguards.


Serbia’s delicate geopolitical balancing act—maintaining ties with Russia, China, the EU, and the United States—has long defined its foreign policy. Now, the political upheaval at home may hasten a recalibration of those relationships.


As an EU candidate, Serbia is under scrutiny for its slower progress on the rule of law and reluctance to fully align with sanctions against Russia. The current crisis could amplify Brussels’ demand for more robust democratic reforms. The EU may view President Vučić’s political vulnerability as an opportunity to push for concrete changes, particularly regarding Serbian-Kosovar relations.


The collapse in Novi Sad has emboldened those wary of Chinese-funded deals. A reshuffled cabinet may impose more stringent oversight and demand higher construction standards. While China remains a critical economic partner, Serbia could now seek a more balanced approach, emphasizing transparency to appease both domestic protesters and European officials.


A new Trump-branded luxury hotel, set to rise on the site of the former Ministry of Defense building in Belgrade, underscores Washington’s commercial interest. Controversies over emoluments and potential conflicts of interest may complicate Serbia’s efforts to deepen ties with the United States, particularly as a second Trump presidency has become a reality.


Serbia’s cultural and historical connections with Russia remain strong, evidenced by Belgrade’s reluctance to enforce Western sanctions on Moscow. Yet if President Vučić’s domestic position weakens, he may be compelled to align more closely with the EU for financial and diplomatic support. Alternatively, Russia could exploit Serbia’s instability to assert greater influence in the Balkans.


Serbia’s role as the region’s largest economy magnifies any internal turmoil. Countries like Montenegro, Bosnia and Herzegovina, and North Macedonia could see greater risk aversion among international investors if Serbia’s instability lingers. With EU-brokered talks still ongoing, a destabilized Belgrade might be more open to compromises on Kosovo—or, conversely, pivot to a more nationalist stance to rally domestic support.


Although Prime Minister Vučević’s resignation may alleviate public anger in the short run, underlying issues of corruption, governance, and foreign policy remain. Widespread civic activism—especially among the youth—could catalyze meaningful reforms, or it could degenerate into a protracted crisis if officials fail to enact systemic change.


Addressing these challenges is crucial for Serbia’s bid to attract broader investment and move closer to EU membership. Tighter standards and better oversight can help prevent further disasters while reassuring foreign partners of Serbia’s commitment to transparency. Successfully managing environmental concerns while capitalizing on lithium’s growth potential could propel Serbia to the forefront of Europe’s electric-vehicle supply chain.


As Serbia navigates a leadership shake-up, Brussels will likely pressure Belgrade for faster reforms and clearer progress on Kosovo. With the EU, the United States, Russia, and China all keenly interested in Serbia’s trajectory, Belgrade must decide whether to deepen its Western alignment or continue pursuing a multi-vector foreign policy.


The resignation of Prime Minister Miloš Vučević marks a pivotal juncture in Serbia’s domestic politics, exposing deep-rooted frustrations over corruption, governance, and foreign influence. How President Aleksandar Vučić and his reshuffled government respond—by either ushering in genuine reforms or settling for superficial changes—will fundamentally shape Serbia’s geopolitical and economic future.


On one hand, new opportunities beckon: closer ties with the EU, potential lithium-driven industrial growth, and improved infrastructure standards. On the other, unresolved issues around state capture, environmental protections, and Serbia’s strategic balancing between Russia, China, and the West highlight the precariousness of this moment. Whether the country seizes the chance for meaningful transformation or defaults to political maneuvering remains the core question for Serbian citizens and the global community alike.






3 views
bottom of page