Yugoslavia's new Prime Minister, Dzemal Bijedic, warned Parliament, in Belgrade on Friday (30 July) that the country's political and economic situation was complex and serious. Outlining the country's economic ills, the Prime Minister said present troubles were due to a high rate of inflation, rising living costs, non-liquidity of the economy, deficits in foreign trade and the balance of payments, and a high level of debts to other countries. Mr. Bijedic said the economic troubles have major implications on the political situation.

Under the newly structured 22-member collective presidency, the Prime Minister's full title is President of the Federal Executive Council. President Tito remains as head of state, but the new system is hoped to ease the shock of his eventual departure. The theory behind the new set-up is that it will satisfy the drive for more local control, while t the same time making regional politicians and plant managers more responsible and, perhaps, put the country on a sounder financial footing.