BELGRADE, April 17 (Xinhua) -- Serbia has been performing well in economy and has been spearheading the process of regional cooperation in the Western Balkans, said a latest annual report of the European Commission that was presented here on Tuesday.

The report was presented at a press conference attended by the Prime Minister of Serbia Ana Brnabic, minister of European Union (EU) integration Jadranka Joksimovic and the head of the EU delegation to Serbia Sem Fabrizi.

Brnabic pointed out that the biggest progress was achieved in the area of economy, rule of law and fight against corruption and organized crime, as well as that the report recognizes "the constructive role of Serbia when it comes to regional cooperation".

She estimated that fiscal consolidation and discipline turned Serbia's market into a well-arranged one, and that it now represents a much better environment for investments.

She added that the country will conclude another arrangement with the International Monetary Fund in order to support upcoming structural reforms.

Fabrizi agreed about Serbia's positive role in regional cooperation, especially when it comes to the dialogue with authorities in Pristina, as well as the internal dialogue about Kosovo started by the president of Serbia, Aleksandar Vucic.

"Serbia must invest efforts in the full implementations of the agreements reached with Pristina so far, in order to achieve the full normalization of relations, that will become a part of a legally binding agreement," Fabrizi explained referring to the requirements from the Chapter 35 of the Serbian EU acquis.

Fabrizi warned that this year and the next are crucial for Serbia if it wishes to fulfil the goal it has set for itself (to finish reforms before 2025), adding that it is important that reforms become a priority for the government.

He pointed out that the report acknowledges progress made in the judiciary reform, but that the "political pressure on it remains an unsolved issue so far" and that "no progress was marked when it comes to freedom of expression".

Fabrizi noted economic progress, especially in fiscal policy, accelerated growth, increase of export and foreign investments, but he said the report stresses the need for further reform of the tax administration, public administration, state enterprises, social care and fight against grey economy.