Serbia’s economy remains stable despite slower growth, with signs of renewed M&A activity, ongoing regulatory reforms, and progress in renewables and the capital market, according to Karanovic & Partners Partner Maja Jovancevic Setka.

In a progressive move towards formalising seasonal and occasional work, the Assembly of North Macedonia has adopted a groundbreaking law to regulate temporary employment across key sectors. This legislative development aims to streamline the hiring process for temporary workers while ensuring they receive essential social security benefits.

The Bank of Albania has introduced a new regulatory framework on marketing and advertising by financial institutions, significantly enhancing consumer protection and transparency in the financial sector. The changes, enacted through Decision No. 11, dated 5 February 2025, amend the Regulation “On Transparency for Banking and Financial Products and Services” and enter into force on 1 May 2025.

In The Corner Office, we ask Managing Partners at law firms across Central and Eastern Europe about their backgrounds, strategies, and responsibilities. This time around, we asked: For 2025, what is the one sector or industry in the country that shows the most promise for growth, and why?

Ilej & Partners, in cooperation with Karanovic & Partners, has advised Cirtuo on the sale to Coupa. Wolf Theiss, working with Kirkland & Ellis, advised Coupa on the deal.

On 14 May 2025, significant changes were made to North Macedonia’s personal data protection legislation. The Assembly of the Republic passed an amendment to expand the nations where personal data can be shared freely, without facing third-country transfer restrictions.

Consumer-focused litigation, especially relating to Swiss loan credit contracts, has driven significant growth in dispute resolution practices in Slovenia since 2022, according to Ketler & Partners, member of Karanovic Partner Minu Anamaria Gvardjancic. With the courts adopting a very proactive stance and wide interpretation of the impact of EU case law increasingly asserting consumers’ rights, disputes are expected to continue expanding in the coming months.

In the last few months, the Commission for Protection of Competition of the Republic of North Macedonia (the “Commission”) has stepped up its enforcement efforts of antitrust rules and food supply chain practices in the country.

Karanovic & Partners has advised BIG CEE on a EUR 72 million financing – part of a EUR 100 million package from the European Bank for Reconstruction and Development – to expand its retail portfolio across the Balkans. Harrisons advised the EBRD.

RTPR and Karanovic & Partners have advised MidEuropa on the sale of Regina Maria Group to Mehilainen. White & Case advised Mehilainen. Kinstellar advised Blue Sea Capital on the sell-side as well. Reportedly, A&O Shearman's London office also advised MidEuropa while Bondoc & Asociatii also advised Mehilainen.

On 6 March 2025, the European Payments Council officially accepted North Macedonia’s application and included North Macedonia in the Single Euro Payments Area (“SEPA”). With this, North Macedonia became the 39^th member of SEPA.

Montenegro has enacted two new laws that significantly reform its investment fund sector.

The Minister of State for Entrepreneurship and Business Climate has introduced a draft law for the establishment of the Development Bank of Albania (“DBA”), a specialised public financial institution designed to facilitate financing for small and medium enterprises, start-ups, and underfinanced sectors. The bank is also envisioned as a key player in promoting exports of domestic products and services, as well as supporting public projects and various infrastructure developments.

Karanovic & Partners has advised the European Fund for Southeast Europe’s Regional Sub-Fund and the Green for Growth Fund on providing two MREL-compliant loans to Serbian AIK Banka.

Ketler & Partners, a member of Karanovic, has advised Hocevar on the sale of the Lambergh Chateau & Hotel in Radovljica, Slovenia, to Orthos Nepremicnine.

On 5 February 2025, the Constitutional Court of the Republic of North Macedonia (“Court”) annulled the Solidarity Tax Law (“Law”), ruling that it violated several key constitutional principles.

Karanovic & Partners has advised the Green for Growth Fund on a EUR 3 million loan to Lovcen Bank Podgorica.

Karanovic & Partners has promoted Milica Filipovic, Marko Culafic, and Sava Draca to Partner.