European countries have been reaffirtmating the role and the significance of agricultural multifunctionality for rural areas development. The transition countries have to make the assessment of their weaknesses and opportunities before facing the necessary significant investments in agriculture, rural settlements and deprived rural areas. Overall economic development should provide for further agriculture employment reduction, along with taking measures for the agriculture farms modernization and changes in the structure of agriculture production, within the process of integrated rural development. Declining population at mountain areas might be a prerequisite for intensified farm restructuring, namely through development reorientation, achieving more balanced agriculture economy, along with rediscovering comparative advantages in the development of new activities linked to social changes and changes in lifestyle - green tourism, leisure activities, health care, as well as to forestry, traditional crafts etc. Subsequent to European experience in maintenance of the necessary level of spatial development in sparsely populated and neglected rural areas, the development of priority mountain areas in Serbia should be defined at national level, and the new system of support should facilitate the preparation and the implementation of different projects for integrated rural development of this priority areas.
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