Belgrade Insight, No. 9 by Balkan Investigative Reporting Network (BIRN)

NEWS NEWS

Friday • June 13 • 2008

9 ISSN 1820-8339

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Weekly Issue No. Oct. 30, 2008 Issue No.9,1 Friday, / Friday,Oct. June24 13,- 2008

Serbia Rocked by Gas Price Scandal Lure of Tadic Alliance Splits Socialists A major scandal is brewing in Serbia after a group of pro-western parliamentary parties cast doubts on contracts for the import and sale of Russian natural gas.

While younger Socialists support joining a new, pro-EU government, old On October 15, Srbijagas announced it would increase costs by up to 59.9 per cent to compensate Milosevic loyalists threaten revolt over the prospect. for the rise in raw gas prices, trans-

BUSINESS EDITOR’S WORD The Serbian government makes it Political Predictability easier for investors to purchase state companies. By Mark R. Pullen

port costs, theway strengthening of party over and which to turn. Page 4 the “The US dollar against theparty euro.seems situation in the The current price of gas, OUT & ABOUT extremely complicated, as mainly we try imported from Russia, is based on This week we take a walk amongst to convince the few remaining lagimport costs of $250 (€194) per columns surrounded in myths and gardscubic that we need to move out of 1,000 metres. legends. Milosevic’s shadow,” one Socialist “That price has doubled,” CaParty official complained. nak said.

gathered around Dacic seems to be ist blocs have drawn attention to a in the majority”, Nikolic said, adding deep rift inside the Socialists. POLITICS that these reformists believe the party This divides “old-timers” loyal

“Dacic will eventually side with Many of us who have experiScare Tadic in Gazprom a bid to guide his party into enced numerous Serbian elections the European mainstream, but much rate ourselves as pundits when it Serbia and Russia are currently of the membership and many officomes to predicting election renegotiating the sale of the Naftna cials may oppose that move.” sults and post-election moves. Industrija Srbije, NIS, an oil giant, 9 Nikolic agreed: “The question is We feel in-the-knowPage because to Gazprom’s oil arm, Gazpromwill the split orcompany will the ‘oldour experience of elections in Serneft. Theparty Russian has offered €400down,” millionhefor a 51 per timers’ back noted. bia has shownLIFE us that (a.) no single centFearing stake inthey NISmight and another €500 not cross the Sophie party or coalition willusever the Cottrell takes on again visual million in investments. Belgrade’s 5-per-cent threshold to enter parlia- journey majoritythrough required to form a Djeram governAlthough the government said ment, the Socialists teamed up with market. ment, and (b.) political negotiations it wants to renegotiate the deal and the Association of Pensioners and the will never be quickly concluded. raise the price, Gazpromneft offiUnited Serbia Party, led by businessEven when the Democrats cials flatly dismissed this demand Photo by FoNet Dragan Markovic “Palma”. achieved their surprising result at asman unacceptable. The government of KrkobaMirko Pensioners leader, Jovan last month’s general election, it and the remainder owned by Serbian Cvetkovic alsoDacic negotiating the debic, Palmaisand are all pushing quickly became clear that the reNIS oil industry and several other velopment of the Gazprom’s South for a deal with the Democrats. sult was actually more-or-less the now defunct state owned compa- Stream gas pipeline that will deliver The reported price is the post of same as every other election result nies, Jugorosgas was tasked to act as Russian supplies to western Eurodeputy PM, with a brief in charge of in Serbia, i.e. inconclusive. an intermediary to manage the tran- pean markets via Romania, Serbia security for the Socialist leader. faces extinction unless to it changes. This is likely to continue as long sit of gas from Russia Serbia. and Croatia. The development of the In January a2007, under the stewaddition, Socialists are barHowever, strong current also €1.2Inbillion, as Serbia’s politiciansPage form10new 400the kilometre stretch of ardship Prime Minister Vojislav pipeline Serbia, isincludtentagaining for through other ministries, flows inofthe opposite direction, led the political parties every time they SPORT Kostunica’s DSS government, slatedinvestments, to begin in 2013. ing capital Kosovo and by party veterans enraged bySerthe tively disagree with their current party sports writer ponders the short list bijagas failed to purchase the 25 per In a bidBelgrade to renegotiate the NIS Our education, media reported. prospect of a deal with Tadic. leader (there are currently 342 regcent holding of the bankrupt state deal, Cvetkovic’s government for the Golden Ball awards. Tadic has denied talk of horseMihajlo Markovic, of istered political parties in Serbia). companies, allowinga founder Gazprom asked for an increase of the planned trading with the Socialists, maintainthe party, recently warned of a crisis Drawn-out negotiations are also to acquire the stake for €4.6 mil- gas flow in the future pipeline that ing secure that ministries would go only to if Dacic opts for the pro-European the norm. One Belgrade-based lion and take majority control of will long-term gas supplies Jugorosgas in early That “was those committed to working bloc, abandoning the2008. Socialists’ “nat- and income from transit fees.for the Ambassador recently told me he clearly damaging,partners. but although we Grubjesic said that in the talks government’s “strategic goal”. ural” ideological was also alarmed by the distinct were in the government then, overAtthe NIS,Dacic Gazprom thesale sameoftime, seems inreMarkovic, a prominentback supporter lack of urgency among Serbian Page 13 we did not know all the details sisted that Jugorosgas must be an inluctant to call off negotiations with of Milosevic during the 1990s, is politicians. “The country is at a about that,” Suzana Grubjesic of termediary in the sales of gas to Srthe nationalists. seen as Plus representative standstill and I don’t understand the G17 party said.of the “old- bijagas. “It was take it or leave it and MY PICKS “If we don’t reach an agreement timers” in the party who want to stay their logic. If they are so eager to The deal effectively put Jugoros- we couldn’t do much about it. They Harristowards gives us the her EU pickand for the with DSS and Radicals, par- Rian trueintoa the former regime’s policies, are progress engas much stronger negotiating ourthe only suppliers and wethe cannot place to shop in Belgrade. position, allowing it to better ty leadership will decideshe on said. future best even though these almost ruinedconthe diversify courage investors, how come they our gas supply,” trol the prices paid by Srbijagas. steps”, Dacic announced, following Socialists for good. go home at 5pm sharp and don’t Continued on page 6 the first session of country’s new parSome younger Socialist officials work weekends?” liament on Wednesday. have voiced frustration over the conSurely the situation is urgent ECONOMICS tinuing impasse within their own enough to warrant a little overtime. Source: Balkan Insight (www.balkaninsight.com)

The International Court of Justice lays down the ground rules for the future THIS ISSUE OF of Koscase regarding the legality Belgrade Insight ovo’s declaration of independance.

Jovan Teokarevic comments on Serbia’s recent decision to start impeNeighbourhood Matters menting a trade agreement with the European Union.

The parliamentary trade committee at work

By Aleksandar Vasovic in Belgrade

state run organisations. The League of Social Democrats of Vojvodina, LSV, and the Socialist leader Dacic remains the Serbian kingmaker eople in Ivica Serbia will be payLiberal Democratic Party, LDP and ing as much as 60 per cent G17 Plus claim that state-operated to Serbia’shas lateagreed president, Slobodan By Rade Maroevic in Belgrade more for their natural gas in Srbijagas, unfavourable 2009 following a series of deals contracts with a want subMilosevic,for andimports reformists who between country’son key gas govsup- sidiary of to Russia’s Gazprom, the party becomeOAO a modern Euroensethe negotiations a new plier,ernment Srbijagas anddivided Russian that will ultimately pean social democrat organisation. have theenergy ranks Gazpromexport, giant, Gazprom. lead to a 60 per cent rise in prices. After eight years of stagnation, of the Socialist Party, which holds The power of the monopoly Nenad Canak, head of the LSV the to centre stage the balance of power between the Russian supplier, Gazprom, to whoSocialists accused returned the Jugorosgas joint after winning 20 of the 250 seatspoin main blocs and has yet to announce dictate supply prices has been venture of taking a monopolist parliament the May 11 elections. which side they compounded bywill the support. purchase by a sition in theinmarketplace, said “the Gazprom of a controlimportant itandrequires Withisthesopro-European nation“It lookssubsidiary as if the Socialists will matter ling in Jugorosgas, joint action.” alist blocs government almost evenly matched, movestake towards a government aled by immediate venture beween political Gazprom and Serof thousands people are the“Tens Socialists now haveofthe final say the Democrats,” analyst Mibian state companies. using gas for heating and this is no on the fate of the country. lan Nikolic, of the independent CenMeanwhile, some political joke. This smacks of monopolies, Nikolic believesand the Socialists, tre of Policy Studies, said. “But such parties are crying foul about the fraud, cronyism all sorts led of by Ivica Dacic, will come over to a move might provoke deeper divilack of transparency surrounding wrongdoings,” Canak told reporters. if only out a pragmatic sions2009 and even the party.” the gas split supply agreement Tadic, Established in of 1996, with a de50 andSimultaneous the involvement of political stakeholding by Gazprom, sirecent to ensure their political survival. negotiations held per appointees in the management of 25 per cent in the of Srbijagas “The group ofhands younger Socialists with the pro-European and national-

P T

IS SUPPORTED BY:

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Business Insight

Costs Mounting

conomists are warning that pro-

NEIGHBOURHOOD longed uncertainty over Serbia’s

Only minutes before the US presidential elections Balkan states ponder which candidate would be better for their country.

Page 7

future could scare off investors, lead to higher inflation and jeopardise prosperity for years to come. “This year has been lost, from the standpoint of economic policy,” says Stojan Stamenkovic of the Economics Institute in Belgrade. page 5

Football Rebellion Page 5

Page 14

hile the football world watches events unfold at the EuroBELGRADE pean Championships in Austria and Switzerland, Bosnia is experiencing a soccer rebellion, led by fans, players andNatural former stars areaenraged Tango is notwho only dance company, it’s asee way life. Andrej by what they as of corrupt leaders Klemencic speaksfootball with some of Belof the country’s association grade’s most dedicated dancers. leaders. page 10

Page 6

Source: www.weather2umbrella.com

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Friday, Oct. 24 - Oct. 30, 2008

politics

Friday, Oct. 24 - Oct. 30, 2008

Serbia and US to Maintain Military Cooperation

Mullen and Ponos Photo by FoNet

he Serbian and United States militaries are now enjoying strong relations despite a NATO-led air war which pitted the two against each other less than a decade ago, say top commanders. During his one-day visit to Serbia, Admiral Mike Mullen, the chairman of the US Joint Chiefs of Staff said that military cooperation between the two nations is “a friendship that has weathered many trials and has grown stronger and stronger.” Although Mullen and his Serbian counterpart, General Zdravko Ponos, spoke in positive terms about bilateral cooperation, they said that the issue of now-independent Kosovo remains a source of division, better left to politicians to resolve. “Serbia and the United States have totally different opinions on

Kosovo,” Ponos said. Mullen is the first Chairman of the Join Chiefs of Staff to visit Serbia, which is also the only European country that was bombed by the USled NATO in the alliance’s history. The 78-day air war in 1999 was staged to oust Serbian security troops from the then southern province of Kosovo and end their crackdown against ethnic Albanians there. It left most of the then Yugoslavia’s infrastructure and air force in shambles, although its ground forces remained largely intact. Kosovo, which remains an international protectorate patrolled by NATO peacekeepers, declared independence from Serbia in February of this year. The US and most Western countries have recognised the new state but Serbia and its ally Russia remain staunchly opposed.

The US currently maintains a 1450-strong contingent in Kosovo as a part of the NATO-led KFOR mission there. Both top commanders stressed the importance of increasing cooperation between the two militaries. Since the ousting of former President Slobodan Milosevic in 2000, Serbia has sought to improve ties with NATO and became a member of the alliance’s Partnership for Peace Programme, considered a stepping stone towards full membership of the alliance. Serbian officers are attending American military universities and the Ohio National Guard is actively involved in training Serbian troops. “On the military side, there is much work we are doing and can do to ensure we have a safe and stable region,” Mullen said.

World Court Details Kosovo Case Timeframe

he International Court of Justice has set a the deadline for the submission of all the information relevant to the case on the legality of Kosovo’s independence. The judicial body said that April 17, 2009 will be “the time-limit within which written statements on the question may be presented to the Court”. In addition, July 17, 2009 will be the deadline for comments. The Court also said it will ask Kosovo’s government to “make written contributions to the Court within the above time-limits,” but stopped short

from saying whether representatives from the government in Pristina will be allowed to take part in the proceedings. “Taking account of the fact that the unilateral declaration of independence by the Provisional Institutions of SelfGovernment of Kosovo of 17 February 2008 is the subject of the question submitted to the Court for an advisory opinion, the authors of the above declaration are considered likely to be able to furnish information on the question,” the court said. The UN General Assembly ap-

proved a resolution put forward by Serbia to seek the world court’s opinion on the legality of Kosovo’s independence. At the General Assembly, 77 states voted for the move and 6 voted against, while 74 coun-

tries abstained. The International Court of Justice ruling is not binding. Both Belgrade and Pristina have announced that they will form special legal teams to deal with the case.

Source: www.wikimedia.org

The ICJ Building in the Netherlands

Rehn: Serbia an EU Candidate in 2009

The EU Enlargement Commisioner Olli Rehn

he European Union’s Enlargement Commissioner Olli Rehn has reiterated his conviction that Serbia may get candidate status next year. “We haven’t yet reached the ‘end of history’ in the Western Balkans and I am convinced that 2009 can be a year of clear progress for the whole region towards Europe,” Rehn said at a Serbia-EU business forum. “Serbia obviously holds a central place in this agenda and I believe that, if conditions are met, it could get candidate status next year.” During his keynote speech at the conference on Serbian Business and European Integration held on Monday in Brussels, Rehn stressed that the business community has a central role to play in realising the European perspective of the Western Balkans. “You are the ones that can really Source: www.politickiforum.org push the reforms forward,” Rehn said.

The conference gathered various Serbian businessmen and experts in a meeting sponsored by the Serbian Chamber of Commerce and also the chief of Delta Holdings, Miroslav Miskovic. Rehn stated that Serbia is already a natural spot for investments: it has a strategic location in the centre of the Balkans with a relatively strong economy, a productive and skilled workforce and an infrastructure which is improving. However, he mentioned that the Serbian business climate faces many challenges. “Free trade and market access are essential for trade and investments. But lowering tariffs is not enough. For any potential investor, a stable, transparent and predictable legal and administrative environment is also crucial when choosing the best investment location,” Rehn said.

UN Appoints Official for Kosovo-Serbia Talks

he UN has appointed Andrew Ladley as the new negotiator to mediate indirect negotiations between Kosovo and Serbia, on issues of key mutual interest. Ladley, an expert on constitutional and judicial issues at the United Nations has started consultations with the authorities in Pristina and Belgrade to find solutions for the six criteria set by the United Nations Secretary General, Ban Ki-Moon, reports Prague-based Radio Free Europe. In June, Ban instructed the chief of

the UN Mission in Kosovo, UNMIK, Lamberto Zannier to start complicated talks with Belgrade on “several issues of mutual interest” including Serb involvement in Kosovo’s judiciary, police, customs, transportation and infrastructure, boundaries and Serbian patrimony, as the world body prepares to wrap up its interim administration in Kosovo. Ladley will be in charge of overseeing these talks. UNMIK has confirmed his appointment and the new mediator has

already met with senior leaders from Kosovo and Serbia. Until now, the indirect negotiations between Pristina and Belgrade were supervised by Zannier. So far they have reached an agreement on reopening the court in the Serb-dominated northern half of Mitrovica which was at the centre of clashes in March this year. UNMIK spokesperson, Alexander Ivanko, reported that Ladley’s mandate will stand until an agreement is reached between Pristina and Belgrade.

Andrew Ladley Source: www.queensu.ca

Inquiry into Universiade Corruption

erbia’s Deputy Premier Bozidar Djelic has ordered an inquiry into plans for the July 2009 University Games in Belgrade, amid claims the number of sports and participants will have to be reduced. “Djelic ordered a probe into possible fraud,” the source closed to the government told Belgrade Insigh on condition of anonymity. “Apparently there were some dodgy deals there,” he added. The Serbian government recently dismissed the Universiade Organisation Board and appointed Djelic to chair a special committee, which will oversee the preparations for the event. The move came after organisers said they will have to reduce number of sports and participants to secure the staging of games at a limited number of venues in Belgrade as opposed to the previously announced 69 locations in the Serbian capital and five other towns. The games’ opening ceremonies will have to be moved from the 55,000-seat stadium of the Crvena Zvezda soccer club to the much smaller indoor Belgrade Arena, organisers said last week. The government also decided to strip Sinisa Jasnic, the head of the Universiade Belgrade company that was tasked to secure logistics for the games from some of his authority. Jasnic was not immediately available for comment. The Universiade are an international sport games organised by the International University Sports’ Federation. They were first staged in 1923 and were expected to be Belgrade’s largest sports event ever held. The bidding for the 2009 Summer Universiade games began in early 2004 and major Belgradebased sporting events such as the Eurobasket 2005 basketball championship, the 2005 European Volleyball Championship, the 2006 European Water Polo Championship and the European Youth Olympic Festival in 2007, worked in Belgrade’s favour. Belgrade had previously launched two unsuccessful bids to hold the Summer Olympics in 1992 and 1996.

business

Friday, Oct. 24 - Oct. 30, 2008

Government Aids Financial Sector

he government has introduced a set of urgent measures to boost the liquidity of banks and improve confidence in the financial sector, Prime Minister Mirko Cvetkovic says. The new measures stipulate an increase of state guarantees on private savings of up to €50,000, a temporary end on tax on savings as well as on customs duties on imported cars, Cvetkovic said at a press conference. “We will consider whether to increase guarantees on savings accounts to €100,000 if there’s a need for that,” he said. Commercial banks in Serbia are registered as domestic legal entities, regardless of their origin and the National Bank of Serbia currently guarantees private savings of up to €3,000. Last week, in a move that should boost currency market liquidity, the National Bank of Serbia decided to abolish compulsory reserves of commercial banks for loans from abroad

Cvetkovic boosts bank liquidity and lowered their requirement for compulsory foreign currency deposits. The central bank also left its benchmark interest rate at 15.75 per cent, as inflation reached 10.6 per cent in September. Cvetkovic said that taxes on savings accounts, profits and the transfer of ownership rights “will be temporarily abolished until the end of 2009.”

Dinar Continues Rise Against Euro

Photo by FoNet The government will collect revenues to fund its program by increasing taxes on fuel and cigarettes, Cvetkovic said. “We have made provisions in the budget for 2009 to preserve the banking system’s stability as well as to attract foreign investments if we find out that the global crisis is having adverse effects on the economy,” he said.

Government Amends Privatisation Rules

he Serbian government prepared a draft set of regulations to ease the sales of staterun firms and attract investors who are reluctant amid the global crisis, Economy Minister Mladjan Dinkic pledged. At a press conference, Dinkic said the new set or rules is tailored to allow buyers to privatise the remainder of Serbian companies by paying for them in installments. “Buyers will have to make at least a 30 percent advance payment and pay the remainder in installments over the period of five years, plus interest,” he said. According to Dinkic, Serbia still has to sell as many as 442 smaller

companies, many of them bankrupt before the end of 2009 and invite tenders for 69 major state-run enterprises. “Under these new rules, a buyer will have the right to manage companies but will receive ownership rights only once the final payment is made,” he said. In 2007, the Serbian government said it would privatise some of its key assets through initial public offerings, including the state-operated Telekom Srbije telephony provider, Elektroprivreda Srbije electric power utility, JAT Airways, the national flag carrier, JAT Tehnika airline maintenance division, Belgrade’s Galenika pharmaceuticals and Belgrade’s

Govt. Measures Slow Metals Banka

ecent moves by Serbia’s National Bank aimed at stabilising the financial sector are hampering commercial banks’ dealings with clients, the Belgrade-listed Metals Banka said Tuesday. “However, the new situation did not impede the bank’s operations overall,” the Metals Banka said in a statement obtained by Belgrade Insight. The National Bank of Serbia’s recent desition to amend compulsory deposit levels was designed to allow commercial banks greater freedom to operate in the current climate. Metals Banka said it “remained

stable” and that its financial data indicate “it remained well within a safe zone” and that “operations with private accounts and savings were not affected in any way.” Metals Banka AD Novi Sad was established in 1990 and enlarged in 2001 and 2005 with the acquisition of DTD Bank DDOR Bank in 2005. Metals Banka has a retail branch network of 110 and an active investment banking operation and retails insurance policies from its strategic partner, DDOR Novi Sad insurance company, which is additionally the bank’s single largest stakeholder with 18.97%

Nikola Tesla Airport: up for sale?

he Serbian dinar continued strengthening against the euro this week, following last week’s changes in the central bank’s reserves requirement, dealers said. “Almost immediately after the measures were announced, we experienced a gradual appreciation in the value of the dinar. It was the psychological effect of the central bank’s move,” a currency dealer with a Belgrade-based commercial bank told Belgrade Insight. Last week, the National Bank of Serbia announced it had lowered its mandatory reserves for commercial banks’ borrowing in foreign currency, backdating it to October 1, with an aim of improving the liquidity of the domestic banking system amid the global financial crisis. In October the central bank also intervened with some €180 million in the currency market to halt the depreciation of the dinar against the euro. “The bank’s measures increased

demand for the dinar,” another dealer said. Earlier this week, Serbia’s Prime Minister Mirko Cvetkovic also said that the state will guarantee private savings of up to €50,000 and abolish some taxes to safeguard the country’s financial system against the impact of the crisis. The dinar depreciated to its lowest level of some 84 dinars to the euro after the May 11 snap elections amid investors’ worries that President Boris Tadic’s pro-Western coalition would not win enough seats to form a government. The dinar started appreciating in June following the start of coalition talks between the pro-Western bloc and the Socialist Party. The most recent drop of the dinar’s value against the euro came due to the deepening of the global financial crisis which then sparked the pullout of investors from emerging markets. The dinar slightly dipped against euro by the end of the week.

Nikola Tesla airport. However, recently, the government said it would abandon the sale of the JAT Airways and restructure the company instead. Dinkic previously announced that Telekom Srbija’s initial public offering (IPO) scheduled for the second quarter of 2009 will be delayed due to the global market crisis. He said Galenika will be offered for sale in 2009, but “the prospective buyer will not be allowed to pay in regular installments.” “I am expecting some very lucrative offers,” he said. The sales of major state enterprises through IPOs will allow Serbian authorities to distribute long promised free shares to more than 4 milSource: www.airport-belgrade.co.yu lion people.

Catering Firm on Sale Amid Ownership Row

ovi Pazar-based catering and tourist company Lipa, will be privatised on November 28 at an auction in Belgrade, despite opposition from a local Islamic leader. Lipa has 144 workers, and its offer price is €1.75 million. The company owns around 198,691 square metres of land which includes the Hotels Vrbak and Raj, the Amiragin han restaurant, Novi Pazar spa, cafes Granata and Furgon, and another nine smaller facilities. Emin Razdaginac, the company’s director, says that several consortia are interested in its purchase. An auction of the company was previously scheduled for October 10, but the Privatisation Agency postponed it to November 28 following requests that the Amiragin han restaurant and an old banya in Novi Pazar spa be exempt from the sale. The Islamic Community in Serbia, headed by mufti Muamer Zukorlic, demanded that the Novi Pazar spa be exempt, while a Novi Pazar businessman asked that Amiragin han be returned to his family. Razdaginac says that Islamic Community claim to the Novi Pazar spa has no legal basis, adding further that there is no basis for exempting the Amiragin han restaurant. “We will respect Serbian legislation and if the Law on Denation-

alisation is adopted and the property returned to the Islamic Community, the buyer of Lipa will have to comply and we are currently warning all interested parties of that possibility,” Razdaginac told Balkan Insight. Zukorlic announced publicly on several occasions that he would not allow the old Novi Pazar spa to be

Hotel Vrbak in Novi Pazar

sold, because it is a “facility which the Islamic Community is entitled to based on the law on returning property to churches and religious communities.” The company’s new owner wil not be able to change its basic registered activity for three years, and will also be obliged to keep all the workers.

Source: www.skrz.sk

business

Friday, Oct. 24 - Oct. 30, 2008

Serbia Hopes Its European Arithmetic Adds Up

Belgrade hopes unilateral implementation of the EU trade deal will win it candidate status next year, even without Ratko Mladic’s handover. But will Brussels agree?

COMMENT by Jovan Teokarevic in Belgrade

ast Thursday, Serbia decided to start 2009 by unilaterally implementing the Interim Trade Agreement with the EU. Although the decision does not come as a surprise, since it has been announced and encouraged by the European Commission, it has stirred a fierce debate in Serbia. In brief, what the Serbian government has decided to do is cut customs on imports from EU countries by an average of 22 per cent. From a legal standpoint, the main problem is the unilateral implementation of the agreement. Namely, the EU still has not put its signature on the contract. To put it another way, it has yet to “unfreeze” implementation of the arrangement on account of Serbia’s failure to fully cooperate with the Hague Tribunal over the handover of war-crime indictees. This was the conclusion of EU foreign ministers in mid-September, although every state except The Netherlands favoured granting this concession to Serbia. The other 26 countries thought that last summer’s arrest of Radovan Karadzic, the former Bosnian Serb leader, was sufficient proof of Serbia’s cooperation. But without the Dutch, the necessary consensus was absent. Implementation of the Interim Agreement is important because these agreements can last several

years before the EU members then ratify the Stabilization and Association Agreement, or SAA. The EU signed the Agreement with Serbia in April but for the implementation of the Interim Agreement, full cooperation with the court in The Hague was deemed essential. Serbian critics of the Agreement’s unilateral implementation neglect to say that the EU cancelled custom taxes on imports from Serbia - and other western Balkan states - as far back as 2001. Exports were significantly stimulated by this major concession to the under-developed countries of the region. For their part, potential EU candidates were obliged to agree that once they had signed the Agreement, they would gradually reduce customs on imports from the EU. In Serbia’s case, the Agreement specifies that customs would disappear completely after six years, which is to say a free-trade zone or customs union would then be established with the EU. That is why one could say that although it is not yet formally obliged to do so, Serbia is meeting its part of the obligations as of January. The economic arguments of the matter are vexed. Many experts, politicians and businessmen have been dramatically warning that an influx of cheaper products from the EU will endanger, if not destroy, Serbia’s weak economy, especially its agriculture. But these claims do not stand up to examination. First, both the Agreement and the Interim Agreement are no surprise. As well signposted steps on the path to EU membership, they have been part of this country’s strategic goals since the democratic turnabout eight years ago, which include not only membership in the Union, but also an open economy that can survive competition in European and world markets. Especially ridiculous is the criti-

Vojislav Kostunica criticises the Government’s deal Source: www.ftd.de cism coming from former prime min- SAA envisages only a very gradual ister, Vojislav Kostunica. Not only did exposure of this sector to competihe head two governments that negoti- tion from the EU. Moreover, as much as a quarter ated every detail of the Agreement but he also interpreted the initialling of the of all Serbia’s agricultural products, agreement with the EU a year ago as a including such staple items as wheat, tomatoes and plums, will retain a depersonal triumph. Second, implementation of the gree of customs protection even after Temporary Agreement itself was ex- the six-year deadline on other prodpected a lot sooner than early 2009 ucts has expired. As the legal and economic arguand the current proposed reduction of customs should have been included ments against implementation of the in the projections for Serbia’s de- trade agreement are clearly weak, the velopment a long time ago. As it is, whole matter, as usual, is really about the changes will cut income into the politics. It appears that various figures budget only marginally, by between from the ranks of the opposition are €70 and € 90 million a year. Finally, the overall gains will merely resuming and deepening their probably far exceed losses to the anti-European discourse, so revealbudget. This is because many prod- ing that Serbia still lacks a crucial ucts will now become cheaper on the political consensus on European inSerbian market, which is often held tegration, even if it has a narrow procaptive by harsh monopolies. Do- European majority in parliament. The government, too, is thinking mestic producers and retailers will be forced to cut prices and rationalise primarily in political terms. Thus, it is now reducing customs business dealings. This can only benon imported cars by half, from 20 efit consumers. When it comes to agriculture, to 10 per cent, in a populist gesture the politicians’ protectionist slogans aimed at attracting voters. The government also correctly asdiverge from reality even more. The

sumes that it has to show some results in the implementation of the Interim Agreement as soon as possible (even if it is implemented unilaterally), in order to secure Serbia’s status as a candidate for EU membership by the end of 2009. The deadline is short, however. Between applying for membership and obtaining candidate status, Croatia needed 16 months, and Macedonia 18. The path to official application leads through the “unfreezing” of the Interim Agreement and cannot happen without the conclusion of cooperation with the Hague Tribunal. This may eventually be reached even if the last two Hague suspects, the former Bosnian Serb commander Ratko Mladic and the former Croatian Serb leader Goran Hadzic, are not delivered. But this can only happen if the Tribunal’s chief prosecutor, Serge Brammertz, gives Serbia a positive assessment in early December. From this perspective, the timing of the government’s decision on unilateral implementation of the trade agreement looks obvious. It is still not clear, however, whether Serbia will manage to pass another few necessary laws and decisions on customs policy before January, because the opposition has been blocking the efficient work of parliament for some time. If Mladic does not end up in the Hague by December, what will then count will be the EU’s assessment about whether it is crucial for Serbia formally to meet the non-obligatory conditions, such is unilateral implementation of the trade agreement, or the required ones, such as full cooperation with The Hague. It is on account of the latter that Serbia’s integration into Europe has been delayed for years already. Dr Jovan Teokarevic is a lecturer at the Faculty of Political Sciences in Belgrade. Source: www.BalkanInsight.com

Companies & Markets Bambi-Banat, Imlek Initiate Buy-back Bids Serbian confectionary maker Bambi-Banat, announced it has launched a buy-back of its shares to prevent a further plunge of its stock price at the Belgrade Stock Exchange, the BELEX. The company, listed on the Belex 15 index of the most liquid shares said it will buy up to 3 percent of its 420,678 shares at market price to prevent damage to the company caused by the current market crisis. Already this year the company has purchased 6.5 percent of its own shares. In recent weeks BambiBanat shares have been selling at around 50 per cent of their January value. Serbia’s Imlek, the country’s single largest dairy producer also launched a buy-back of up to 5 percentof its total of 9.52 million ordinary shares at the current market price. ‘The director of BELEX was authorised to set the price for Imlek’s shares on the basis of total daily trading volume and the company’s financial situation,” the statement said.

Imlek pledged it will sell all shares purchased through this route within a year. The Danube Foods Group, which is part of the British-based New World Value Fund owns majority stakes in both Bambi-Banat and Imlek. The Danube Foods Group is the single largest investor in Serbia’s dairy, mineral water and beverage sectors.

Sale of Kolubara IGM Lime Producer Cancelled Serbia’s Privatization Agency cancelled the sale of a stake in the Kolubara IGM lime producer to a consortium led by local entrepreneur Liljana Jokic after the buyer failed to implement its investment and social program. The consortium, which in 2007 purchased Kolubara IGM for 1.46 billion dinars (€18 million), paid only 20 per cent of the agreed price, and restarted only one of four furnaces at the factory, the agency said in a statement. Serbia’s Privatization Agency said it would call for new bids for the company after an audit.

Eurowind to Invest in Zrenjanin

EBRD Lends €70 Million to Idea d.o.o.

Eurowind, a Hungarian - Italian maker of fittings and accessories for trucks and freight vehicles will build a €4 million factory in Serbia’s north by 2011, a local official said on Tuesday. According to Branislav Knezevic, the head of the local development department in the city of Zrenjanin, Eurowind will develop a plant in the town’s Ecka industrial zone. The factory will cover some 1.5 hectares, and should employ up to 100 workers, Knezevic said in a statement. Eurowind has subsidiaries in Serbia, Romania, Slovenia and Russia.

The European Bank for Reconstruction and Development announced it will lend €70 million to the Croatian-owned retail company in Serbia, Idea d.o.o. In a statement posted on its official web site, the European Bank for Reconstruction and Development said it will pass €35 million of the loan to Alpha Bank Greece, and retain €35 million of the loan money on its own account under its A/B loan structure. Idea d.o.o is a part of Croatia’s Agrokor food producer and retailer, which is a key supplier for supermarket

chains in Eastern Europe. The company’s multi-format retail and wholesale operation was founded in 1992 and acquired by Agrokor in 2005. The Serbian retail sector is still underserved and fragmented compared to more mature markets, with only 25 square metres of retail space per 1,000 inhabitants compared to the European Union average of 270 square meters. “The project represents an opportunity for the European Bank for Reconstruction and Development to support regional food quality standards and will therefore have a visible demonstration effect on the rest of the market,” the statement said.

belgrade chronicle

Friday, Oct. 24 - Oct. 30, 2008

Tango Natural Dances into Belgrade By Andrej Klemencic

he set in the Centre for Culture in the Old City is ready to be filled with the energy of tango, as twenty-something youngsters fill the space. Healthy enthusiasm is brokered by Sonja Zivanovic and Darko Dozic’s careful introduction of the mission of the Tango Natural dancing school. “We do not want to go too deep into philosophy, because people might get scared”, Darko confesses to me as a crowd of smokers gathers in front of the building. The approach this energetic couple has towards tango is: make it as natural as possible, thus the name Tango Natural. They started with a pioneer of Belgrade’s tango scene, Dragan Mikic, who introduced the street dance of Buenos Aires to the city and they have now been dancing together for four years. The desire to start a school was a logical one, they both agree. “Once you train for a long time and get to a certain point, you ask yourself: What now?” Sonja points out in the precise accent of one who has spent some time at the Belgrade Drama Theatre. “Everyone has their own tango. It is not as difficult as it seems. True tango fully complements life, because it is life’s paradigm”, says Darko. While he speaks, his eyes sparkle. “Tango is energy; it is the Ying and Yang, the flow through the connection of masculine and feminine. In the endlessness of tango, we find each our own place. Sometimes we walk through life with big steps,

ment and energy”, she says. There are only about 200 tango dancers in Belgrade. Mirkic started the movement that continued with the Beltango Quintet, which after ten years of existence is one of Europe’s leading tango orchestras. There is a youth orchestra of 13 members, Tango Juventud, and 4 or 5 tango schools. Since the Belgrade Tango Festival started, many possibilities have opened up. “It is the ultimate test of how universally tango really communicates. Couples from all over the world, shared the same feelings, felt the same energy. Tango comes from the Mediterranean, from where it was taken to docks of Buenos Aires where over the years it has developed into a high art form. This city has the potential to become one of the tango capitals of Europe”, Darko says with enthusiasm.

Sonja Zivanovic and Darko Dozic

Consumers, Beware of Expired Goods

lthough sanitary inspections of Belgrade’s markets are performed twice a year, consumers daily report finding, and accidentally buying, expired goods. Ljiljana Jovanovic, director of Belgrade’s Sanitary Inspection Agency, said that one out of four calls from consumers to the institution concerns expired goods. “If expired goods are found during regular inspections, they are immediately taken off the market, and charges against the store are filed,” said Jovanovic to a Serbian daily, Blic. However, she told consumers to be more careful and mindful of expiry dates when selecting products. “Because we have a small amount of inspectors, it is impossible to per-

only to find that it is the restriction of tango that fills us, others find beauty in embracing the width of colours it offers. Once you know tango, you think of other dances only to discover ways they can contribute to your tango.” says Darko with the look of a true believer in the magic of tango. Looking at him, you simply feel his deep devotion. As the dancers take their first class in the mirrored room, the energy rises. “During the first class, we will learn how to channel energy from the earth through our body and back to the earth, while doing slight left-right swings,” Darko instructs. “This wholeness in tango is something we learned from studying a combination of practices like yoga, karate, kick-boxing, but most importantly, through studying the works on psychotherapy by Alexander Lowen, who studied move-

form more inspections than we already do. Consumers have to be more careful when shopping. They have the right to complain to the store owner if they find expired goods or to report the store to the Sanitary Inspection Agency,” Jovanovic added. All stores and other premises visited by consumers are rated by the possibility of a health risk. Locations considered to be most at risk, like fast food restaurants, are inspected four times a year. Grocery stores are not considered high risk and are inspected only twice a year. During a regular inspection, investigators rate how sanitary the store and its equipment are and goods are analysed according to health standards.

Photo by Andrej Klemencic

Serbia’s Gas Price Scandal

Continued from page 1

Damaging Deals

Meanwhile, local media reported that Sasa Ilic, the acting director of Srbijagas, signed a €700 million contract for the purchase of 2,390 million cubic metres of gas with Jugorosgas, in violation of provisions allowing him to make deals of no more than €2 million. The deal which secured the entire 2009 gas supply, envisaged a 4 per cent commission to Jugorosgas as an intermediary for gas supplies, which could amount to as much as €28 million, reports said. However Nenad Popovic, President of the Economic Council of the Democratic Party, DSS, and a power industry leader, insists that the price paid by Srbijagas would be the same either with or without an intermediary company because the Russian partner agreed to bear the full cost of the commission. Predrag Grgic, head of the Srbijagas board said that “the deal will be valid only after the board verifies it” but added that neither he nor the board “knew about the deal or Ilic’s intentions.” “We will seek the government’s opinion on this. If they say the deal was good, we will verify it,” Grgic said. In an interview with Belgrade daily Blic, Ilic denied any suggestion that the deal was badly negotiated, pointing out that global prices of gas have gone up. Ilic said that the price of gas, initially set at €700 million “can be

Three Decades of Planning, But No Results

he national government, the city of Belgrade and Serbian Railways recently signed a €72 million contract to start construction of the Prokop train station. The deal, however, comes over three decades after original plans were started and it is not clear when construction of the station will start. Minister of Infrastructure, Milutin Mrkonjic, said that building will be completed in 18 months. However, construction has not started yet despite the minister’sassurance that construction would begin earlier this month. “We’ll have a new train station in 18 months because the country is ready for the first time to give it a chance”, Mrkonjic told Serbian daily, Blic.

The €72 million for the project will come from both the country and city budgets with the state investing €50 million and Belgrade, €22 million. Building of the station started in 1977 under the direction of architect Mihail Maletin. Over €100 million has been invested over time, but only one concrete level has been built sofar. There are plans to build commercial space above the station.

Milutin Mrkonjic

Universiade Needs 10,000 Volunteers

he summer Universiade, which will be held in Belgrade next year, has launched a campaign calling for 10,000 volunteers. Over 3,000 applications have already come in, most before the official start of the campaign. The Universiade organisers have not put a limit on the number of applications they will accept, so the competition for who’s allowed to volunteer will be open until the beginning of the event next year. Volunteers have already put together both a theme song and a music

video calling their fellow countrymen to join them. The song was written by Ivan Ristic, Miroslav Cvetkovic, and David Micic. The video, which will hit television stations later this month, features FK Partizan football players, as well as members of the national water polo team. The Universiade is an international student sporting event organized by the Federation Internationale du Sport Universitaire and is hosted every two years in a member country.

The games are made up of ten sports including gymnastics, basketball and fencing. In addition, the host country is allowed to pick three additional sports. Belgrade will host the following sports: athletics, judo, football, basketball, fencing, volleyball, swimming, rhythmic gymnastics, diving, artistic gymnastics, table tennis, tennis, water polo, flatwater canoeing, karate, handball, wrestling, archery, shooting, taekwondo and rowing.

altered in line with fluctuations on the global market.” “At the beginning of 2008, the price was some $280 (€218) for 1,000 cubic metres of gas. It is $455 (€354) now, as prices have gone up,” he said. Ilic insisted that Serbia’s Energy Minister Petar Skundric “was duly informed about the Jugorosgas deal.” In a statement carried by B92 TV, Skundric said “the ministry knew nothing about Ilic’s moves”. In an interview with Belgrade Insight, a government official said “Ilic will be sacked at the next Cabinet’s session.” “The government will appoint Dusan Bajatovic of the Socialist Party as the new Chief Executive of Srbijagas,” the source said on condition of anonymity. He added that Bajatovic’s appointment “as well as the share-out of directorial positions in other stateoperated enterprises” was agreed ahead of the reconciliation treaty between the Democratic Party, led by Serbia’s President Boris Tadic and the Socialist Party of Serbia formerly led by Slobodan Milosevic. Tadic meanwhile said the authorities are “carefully monitoring gas suppliers as there is information about monopolies.” He said that the state will “do its utmost to help people who are using gas for heating” but that “despite our goodwill, we are importing gas at prices which are going wild throughout the world.” Corruption worries Verica Barac, Director of the government’s Anti-corruption Commission, said the scandal is just another demonstration of systematic corruption within major state-operated enterprises. “Parties are using major state enterprises to fund themselves and this gas story is only the tip of the iceberg,” she said. Another government official, who spoke on condition of anonymity said, “the anti-corruption authority has documents that may lead to a series of indictments, but it is in no one’s interest to order such a move.” Barac said that state-operated enterprises and utility companies are the “exclusive turf of political parties and no one is allowed to probe into them and added that the anti-corruption commission was “never allowed to collect enough documentation about anything we tried to investigate”. “Most of them are generating losses while the directors and members of managerial boards have huge salaries,” she said. In an interview with Blic, Ilic said his salary from Srbijagas was 250,000 dinars (€3,125), but refused to discuss his income from Jugorosgas, arguing it was confidential information. Barac said that a governmentoperated auditing commission could “hugely contribute to the transparency of major enterprises.” “Systematic corruption was a key reason that the parties never agreed to allow the auditing commission to become fully operational,” Barac said.

neighbourhood

Friday, Oct. 24 - Oct. 30, 2008

Balkan States Search for Favourite in White House If Europeans could vote in the US elections, Obama would win by a landslide - but opinion is more evenly split in the Balkans. By Krenar Gashi in Pristina and the BIRN Regional Team

nly weeks before the US Presidential elections, people throughout the Balkans are watching the campaign closely and, in some cases, hoping for a victory by Barack Obama and in others, John McCain. US policy has had a major impact in Albania, Bosnia and Herzegovina, Croatia, Macedonia, Kosovo and Serbia over two decades, which helps explain the high level of interest. And whilst an opinion poll by the Economist shows most Europeans strongly prefer Obama to McCain, preferences in Southeast Europe are more variable. In the Western Balkans, the US campaign is day-to-day news, and there are lively debates over which candidate would make a better president but Romanians are indifferent. Albania: Obama good, McCain also good

Tirana In Albania, whatever is American tends to be viewed positively. Therefore, although the results of the Economist poll show 75 per cent of Albanians support Obama, many Albanians view McCain as equally acceptable. According to Mentor Nazarko, a political commentator, “both candidates are seen in similar ways… McCain has a track record of taking proAlbanian stances, while Obama has not had the chance to do that yet”. While the Albanian community in the US is divided over the candidates, if Hillary Clinton had been the democratic nominee, the choice would have been easier. She and her husband have both been decorated by the Albanian government.

role in ending the 1992-95 conflict. But many Bosnian Serbs also favour Obama, convinced that a republican White House has been politically and economically unsuccessful on the world stage. “Even Serbs would vote for Democrats, even though Clinton bombed them, first in Bosnia and then in Kosovo,” says Gordana Katana, a journalist in Banja Luka. Some in Bosnia and Herzegovina, however, believe that whoever becomes president will be too busy dealing with other hot issues, such as Afghanistan, Iraq and Iran, to deal with Bosnia. “It doesn’t really matter who wins; it’s all the same (to us),” Drazen Simic, a Sarajevo-based reporter, says.

Serbia-US Ties ‘Unaffected by New President’

Croatia is Obama-ised Although Croats generally lean towards right of centre governments, many appear to back Obama. The Economist’s results show that 80 per cent of Croats support Obama. In addition, there are many indications that Croats oppose the policies of George Bush. Andjelko Milardovic, head of the Political Science Research Centre, says Bush’s mistakes have “generated an economic crisis that can be compared only to the one that happened in the 1920s”. This and the war in Iraq are the primary reasons given by Croats when asked why they support Obama. For 34-year-old journalist Nikola Jerkov, Obama simply “knows the formula for America’s future”.

Zagreb Kosovo cannot choose

The Economist poll revealed Kosovars to be strong supporters of Obama, though many favour McCain, and a few wish Hillary Clinton were running. Journalist Artan Mustafa was an admirer of Clinton who is rooting for Obama because of “his age, and Bosnia – too busy to notice the new kind of energy and leadership he is promoting are promising”. But Shqipe Abazi, a Master’s candidate in Finance, says McCain is a better choice in terms of his policy towards the Balkans and his approach to the financial crisis. “Obama looks confused and sounds controversial, so he is no good for us,” she says. Mufail Limani, a political analyst in Pristina, says that, for Kosovars, choosing between Obama and McCain “is like a mother choosing beSarajevo tween her two twin sons”. He adds: In Bosnia and Herzegovina, the “The Democrats liberated us, and the US elections are taking place amidst Republicans made us a state.” the biggest domestic political crisis in years. Overall, most people appear to show a greater interest in Obama, feeling his victory would renew the commitment of America’s democrats to their country. Bosniaks feel closer to the democrats than Serbs, as a result of former president Bill Clinton’s key Pristina

US Ambassador to Belgrade, Cameron Munter, comments for Belgrade Insight

“

The upcoming U.S. elections are very exciting for the American people. Both parties have put forward candidates who are wellrespected, serious leaders, and both tickets are historic in that they include an African-American and a woman for the first time in our history. The candidates have engaged heavily during the campaign on our foreign policy as the United States enters a period of increased political, economic and environmental challenges. Both have indicated the need for further engagement with our partners and allies around the globe and a renewed effort to meet challenges that rise above national borders and interests. Many foreign audiences have Macedonia cheers McCain

Skopje Macedonians view the US election mainly through the prism of the ongoing dispute with neighbouring Greece over their country’s name. “In this regard, Macedonians see McCain as a better choice than Obama,” said Zhidas Daskalovski, a political analyst. This is because Obama “signed the non-binding US Senate Resolution S. 300, which is pro-Greek,” he adds. Greece argues that Macedonia’s name implies a territorial claim to its own northern province of the same name. Many Macedonians fear that if Obama wins the race to the White House he might overturn the US decision in 2004 which recognises Macedonia under its constitutional name. Ilina Jovanova, 33, a university professor, explained her preference simply. “McCain!” she says. “The other one (Obama) is closer to the Greeks.”

speculated on the different approaches that either candidate might bring to the bilateral relationship with their country. This has certainly been true here in the Balkans. However, I do not expect that either candidate would bring significant change to our policy in the region. Over the past two decades our policy in the region has been bipartisan, and based on support for a stable, secure and democratic region. Here in Serbia, U.S. priorities are focused on ensuring that an increasingly stable, prosperous and secure Serbia takes its rightful place in the European Union and other transatlantic institutions. We support this path because Serbia has enormous potential that can be realized much Serbia – little faith in either “Barack Obama, be with us always,” read a large billboard on one of the main roads leading to Belgrade, when Obama was competing with Hillary Clinton in the primaries. Anonymous Obama supporters put up the billboard in response to a speech following Kosovo’s independence in which Obama noted that Serbs had suffered in the past two decades. However, the race for the White House inspires little optimism in Serbia, as both Obama and McCain support Kosovo’s independence. Four years ago the Serbian lobby in the US overwhelmingly supported George Bush, but they faced a major disappointment when his administration continued pro-independence policies towards Kosovo. “Why would we care about elections in America?” asks Goran Bakic, a bartender. “That country has masterminded Kosovo’s independence.”

Belgrade

Photo by Sophie Cottrell

more quickly as a member of the European Union. Such a path will result in greater foreign direct investment, more jobs, better wages, more competition, a higher level of innovation, and a better standard of living. We have the same priorities for all of the countries of the region, including an independent Kosovo. Both candidates have already made public statements supporting these policies, and I expect that this will not change regardless of which candidate wins the election. No matter who emerges as the new president of the United States on November 4th, U.S. policy in the Balkans will remain the same: that the nations of this region join Europe whole, free and at peace.” Romania indifferent

Bucharest As the US campaign reaches a climax, most Romanians seem indifferent about who wins. Interest is far greater in events in neighboring countries like Hungary or Moldova, or in other EU member states. “Who is in or out of power in Washington has no relevance to me. I am more concerned that more than half my income goes to paying off loans,” says Adrian Tomescu, owner of a small shop in a Bucharest suburb. Political analysts worry that this is also the attitude of the country’s politicians. “None of the political parties has a clear vision regarding specific relations with the future US president, whoever wins the election,” says Sever Voinescu, an international affairs analyst. Source: www.BalkanInsight.com

neighbourhood

Friday, Oct. 24 - Oct. 30, 2008

Bosnia Reels from Global Downturn

A worsening global economic environment and local political deadlock are causing the first signs of panic amongst the population. By Srecko Latal in Fojnica

osnia’s state and entity premiers, economic experts and bankers converged on the northwestern town of Banja Luka on October 17 to discuss the worsening financial situation and agree on counter-measures. “2009 will be very difficult for… the economy, though I fear our politicians are not aware of the situation,” the governor of Bosnia’s Central Bank, Kemal Kozaric, said on October 15. He stressed that economic wellbeing depended on local leaders and their readiness to improve the local economic and business climate. Bosnia’s top financial and banking experts tried to calm the first signs of panic and persuade people that their deposits are safe. “We don’t need a stampede,” said Kozaric, urging the media to refrain from inflammatory reporting and creating panic. This appeal came as the first signs of the global economic crisis crept closer to Bosnia. Two weeks ago, a sudden increase in withdrawals surprised commercial banks and even the Central Bank. Their brief cash shortage revealed the first signs of panic among the population and scores of people formed queues outside banks, waiting to take out their savings.

Bosnian citizens have additional reasons for wariness. Many lost most of their savings when the banking system of the former Yugoslavia collapsed in the 1990s. and their nervousness is further aggravated by the political deadlock that has blocked Bosnia’s progress since 2006. In the last two weeks, Bosnians have withdrawn more than €60 million and the Central Bank has pumped an additional €200 million into the system to reassure bank customers. Bosnia’s premiers agreed on October 17 to table an urgent parliamentary measure to increase the state guarantee for deposits from 7,500 Konvertible Marks (€3,750) to 15,000 KM (€7,500). Local bankers launched themselves in a flurry of public appearances aimed at soothing investors. Kozaric stressed that money was safe in the banks, thanks to the high reserves of Bosnia’s Central Bank, modern regulation of the banking sector, a fixed exchange rate between Bosnia’s Konvertible Mark and the euro, and the conservative fiscal system. However, some bankers – speaking off the record – said the situation was not as sound as officials suggested. Following a major reform of the local banking sector in 2000-2003, Bosnian banks adopted a conservative approach to business – staying away from the securities market,

Kosovo Sends First ‘Ambassadors’ Pristina _ Kosovo has started dispatching its first ten chargé d’affaires, who will effectively work as Pristina’s ambassadors in some of the major countries which have recognised Kosovo. Initially, Kosovo’s diplomats will operate in rented buildings or hotels until they are able to relocate to permanent offices, which will not happen before next year. “Buying the buildings for embassies is not merely an issue of buying real estate, rather it is related to the issue of sovereignty, with special protocols and special procedures for the purchase,” said Kosovo’s Deputy Foreign Minister, Vlora Citaku. The countries that will host Kosovo’s first embassies are regarded as the most important states that have recognised the country’s February

17 declaration of independence from Serbia and include the US, the UK, France, and Germany.

Deputy Foreign Minister, Vlora Citaku

Bulgaria Launches EU Funds Abuse Trial Sofia _ A Bulgarian court recently launched a landmark trial against nine people accused of embezzling millions from European Union aid funds. The defendants were accused of stealing 14 million levs (€7.1 million) in funds made available to Bulgaria by the EU as part of the Special Accession Programme for Agriculture and Rural Development. The defendants allegedly imported used machinery for meat processing, but forged documents so the machines could be registered as new. The EU fund was drawn upon for the cost of new equipment, with the defendants allegedly pocketing the difference.

The investigation leading to the arrests was launched more than two years ago following a tip from the European Anti-Fraud Office, OLAF. However, the amount of money cited in the indictment covers only part of the missing funds. In a confidential report that was leaked earlier this year, OLAF said that nearly €40 million were missing. The alleged abuse spurred Brussels into freezing nearly €500 million in various development programmes for Bulgaria in July. The trial launched on Monday is the first of its kind in Bulgaria.

avoiding sub-prime loans and maintaining strict credit conditions. But in the past two years, encouraged by fast-developing business and pushed by growing competition, they have made finance more accessible with the inevitable consequence that a growing number of people are unable to repay interest on their loans. Real estate prices, which have been booming over the past two years, are leveling out or decreasing, as cash shortages and loan obligations increase pressure on household budgets. Adna Sapcanin Masala, from Sarajevo’s Gala real-estate agency, told Belgrade Insight that “People are selling at reduced prices because they are afraid”. The bourses in Sarajevo and Banja Luka have plummeted to almost onethird of their value at the beginning of the year and the director of the Sarajevo Economic Institute, Anto Domazet, says. “the question is whether the anxiety will turn into panic,” Prices for iron and aluminum – major components of Bosnia’s exports – are falling on international markets and looming global recession is expected to affect export volumes, further worsening the current account deficit. In addition, global recession is expected to reduce remittances. Economic experts say economic hardship will also reduce retail pur-

chases, hitting tax revenues, which in turn will affect funding for health, education and basic social services. Experts say local leaders must agree on a vigorous response, improving Bosnia’s business environment and fostering a more competitive investment climate in the country. Local politicians must cut bloated public spending and target large but ineffective social benefits. But so far,

most local leaders seemed oblivious to the economic situation. Some people see the funny side of the dire economic and political situation. “If the global crisis comes to Bosnia, it will immediately run away,” one of Bosnia’s top humourists, Osman Dziho, jokes in his blog. To read more of the story, visit www.balkaninsight.com

Source: www.sxc.hu

Safer than the banking system?

Croatian Parliament Passes Smoking Ban Zagreb _ Croatia’s Parliament has passed a law which will ban smoking in all public places, except hospital psychiatric wards. Starting in November, smoking will be banned in schools and hospitals, while restaurants, bars and other catering establishments have been given six months “to adjust”. Parliament’s decision comes only a month after the government announced it would model the nonsmoking bill on the one once proposed in Germany, which allowed owners of bars and restaurants to choose whether their establishments would only cater for smokers or be completely non-smoking. The smoking ban in Germany did not pass Berlin’s Constitutional Court, which found it to be violating the right to free enterprise.

The new law states that 40 percent of the packaging of each pack of cigarettes be covered with a warning on the risks of smoking. Premises will be inspected on a regular basis to see if they are abiding by the law. It is estimated that 30 percent of all Croatian citizens smoke. The Caterers’ Guild has so far re-

The smoking ban starts in November

acted mildly. They stated that they had been “hurt by the fact that the Justice Ministry had ignored their request for consultations on the proposal of the new law”. The guild estimates that the law will put some 10,000 small bars out of business and cause massive layoffs. Small bars across Croatia employ more than 60,000 people.

Source: www.churchtimes.co.uk

Two Migrants Dead, One Missing in Albania Tirana _ A 22-year-old mother and her 3-month-old toddler were killed on Sunday evening when a boat with 24 migrants capsized in the Butrinti Lake in southern Albania. Four people are in a critical condition and have been hospitalised in nearby Saranda after being rescued by a border patrol boat. The 24 migrants were trying to reach the Greek border. Human trafficking has been rampant in Albania over the last two decades. Tens of thousand of migrants have been smuggled on speedboats across the Adriatic Sea onto Italian shores. However, a three-year moratorium on speedboats, which was

imposed in 2005, has substantially curbed the phenomena. Albania’s Interior Minister Bujar Nishani has proposed extending the country’s moratorium on speedboats along its coast in an effort to thwart illegal smuggling. The moratorium is due to expire in October. The law had affected around 2,000 local speedboat owners, and aimed at stopping traffickers in both people and drugs who use speedboats to reach the shores of Italy and Greece. Only authorised vehicles are allowed to venture out into the sea from Albanian shores.

Butrinti Lake

out & about

Friday, Oct. 24 - Oct. 30, 2008

Where the Devil is Djavolja Varos?

Pat Andjelkovic is struck by the sight of these mysterious stone columns in southern Serbia – and by the myth and legend they have spawned.

By Pat Andjelkovic

f you’ve already “done” the monasteries, visited the naive painters in Kovacica, and aren’t up to rafting on the Tara, Djavolja Varos just might be the place for you. The setting offers hiking, fresh air, forests, a choice of spas, and is surrounded in mystery and legends. Djavolja Varos or “Devil’s Town” is situated in southern Serbia on the

slopes of Mount Radan, 30 kilometres from the spa of Prolom Banja, and approximately 320 kilometres from Belgrade, depending on which road you take. It’s too far for a day trip, so it’s best to find somewhere to stay in or near Prolom Banja. If you don’t take your car, you’ll need to hire a local driver (reasonably priced) to take you to Djavolja Varos or else hike 10 kilometres one-way through the woods! Djavolja Varos occupies some 4,300 square metres of forest and

features approximately 200 rock columns that have been shaped by wind and water erosion. The columns, ranging in height from 2 to 15 metres, look remarkably like an assembly of college graduates wearing mortarboards and rise above the watershed between Devil’s Gully and Hell’s Gully. Each is topped with an andesite cap that protects them from decay, for they disintegrate relatively quickly when the cap falls off, but erosion again forms them equally rapidly, geologically speaking. The

columns are a breathtaking sight in almost any season. It’s best to visit them early at sunrise or at sunset, when shadows play hide and seek between the surrounding rock and beech trees. Superstition and Legends Superstition is often more appealing than reality. Some locals say the number and size of the columns shifts constantly as devils fight for power. Oth-

ers claim that the name of Djavolja Varos comes from the wind whistling through columns, like the devil’s laughter. Another legend claims an evil ruler once made a pact with the devil. His people would not obey him, so he destroyed the town and turned its inhabitants into stone. A more romantic legend claims the columns are relatives of two suitors in love with the same girl. The rival families met up between the two gullies, and quarreled. To avoid bloodshed, a secret force turned them into stone. A spicier legend claims that the pillars are of a family turned into stone by the devil because a brother and sister were married in Saint Petka’s chapel, the remains of which lie on the path to the columns. Others counter that a winged black fairy, often sighted flitting between the columns, prevented this marriage. But, never fear if she whooshes by; she’s a good fairy. Serbia’s National Treasure

Myths surround these beautiful columns

Photo by Pat Andjelkovic

The path on the way to the columns

Photo by Pat Andjelkovic

Djavolja Varos was declared a natural treasure in 1995 by the local government and is currently on UNESCO’s waiting list to be registered as a World Heritage site. This natural monument also embraces another rarity: Two springs of extremely acidic water. This highly sulfuric hard water is reputed to do wonders for skin conditions including eczema, pimples and blisters. The water is not for drinking, but if you suffer from mouth sores, gargling is all right. Locals sell the water in nearby towns, but you can fill your own bottles at the site. The path leading to the columns is clear and the climb isn’t steep. At one point the path splits. If you go right, you’ll go directly to the columns, passing by the remains of Saint Petka’s chapel where visitors leave flowers and a few coins. This way, you will have an excellent view of the columns and the surrounding countryside. The left path leads you up Devil’s Gully and is a bit more demanding, since you’ll have to clamber up and over large rocks and boulders. Don’t forget to visit nearby Lazarica Church, around which, on June 25, 1359, Prince Lazar marched with his army before leaving for the Battle of Kosovo. The descendants of the plum trees that sprang up and bent their trunks to follow Prince Lazar as he marched can still be seen today, shaped with a little help from the church’s caretaker. It’s worth visiting Djavolja Varos if you’re looking for a get-away in a setting untouched by commercialism. I couldn’t even find a postcard of the columns, except in Lukovska Banja, two hours away by car. So pay a visit before the souvenir sellers descend, hawking devil T-shirts and cheap mugs. If you’ve ever visited Dracula’s Castle, you’ll know what I mean. For further information, see: www.djavoljavaros.com www.n7w.com

One of Djavolja Varos’s acidic mineral springs

Photo by Pat Andjelkovic

Pat Andjelkovic is a teacher, writer, and long-term expat.

life

Friday, Oct. 24 - Oct. 30, 2008

Faces from the Market

The Djeram Open Market not only offers fresh fruit and vegetables, it offers insight into the make-up of the Serbia. By Vanja Petrovic Photos by Sophie Cottrell

sk any Serb, and Belgrade Insight offers you this guarantee: They have their favourite open market and an elaborate reason why. Even in a sophisticated city like Belgrade, open markets flourish. Serbs love their food to taste and look good and open markets have been a feature of all Serbian towns and cities for centuries. And whilst supermarkets, with their convenience and their ability to purchase in bulk are gradually stealing business from the markets, particularly amongst the younger

generation, they look set to be with us for many years yet. There are street markets all over the city and everybody has their favourite but where ever you go, you are guaranteed a slice of local colour to go with your fruit and vegetables.

Zivadinka Nikolic, 63, wakes up every morning in Veliko Selo at 6 a.m. She selects produce from her smallholding and works all day at the market. “I get so tired by the end of the day,” she says. But, even after 25 years of hard work, you won’t see her without a smile.

Freshness comes as standard.

An autumn staple, pumpkin, sold by the slice

Dragan Milosevic, 83, has been a regular at the Djeram market for almost half a century. One trader told us that she expects to see him working his stall till long after his 100th birthday.

The market gets busy almost as soon as it opens at 7, but some keen buyers arrive even earlier to get the pick of the crop as the traders set up. By mid-morning shoppers are squeezing past one another in the cramped alleys.

This trader was too shy to give us her name but not too shy to pose!

You’re always guaranteed a smile and friendly service from the traders.

the belgrader

Friday, Oct. 24 - Oct. 30, 2008

Not Everybody Laughs in the Same Language

What’s so funny? Jokes, plays and films provide a keen insight into what tickFor the most part, Serbs laugh les the average Serb – and it’s at what they perceive as stereotypinot always what you might cal behavior of other peoples. These expect. jokes are often offensive, and perpe-

By Pat Andjelkovic

he world’s in financial crisis, local politics are a mess, but Serbs love to laugh even in the darkest times, even during the NATO bombing, when jokes exploded just as frequently as, but with a lot less harm, than cruise missiles. Even the tennis star Novak Djokovic, (dubbed Joke-ovic by the press), impersonated fellow tennis players during the US Open, much to the audience’s delight. As Goethe once said, “nothing shows a man’s character more than what he laughs at.” We all have an inborn capacity to laugh, which has evolved over 15 million years of respective community-living among apes and humans. Tickle one of the great apes, if you dare, and they’ll grin and pant rapidly: ape laughter. Chimps even laugh in anticipation of a tickle, and often when observing another’s discomfort. Now there’s a shared trait. But they don’t tell jokes…or at least we don’t think they do, but perhaps they’ll have the last laugh.

trate existing prejudices. However, jokes about religion (at least about their own Orthodox religion) and sick jokes involving grotesque, violent, or exceptionally cruel “humour” aren’t appreciated. The following jokes about what Serbs perceive as stereotypical inhabitants of Serbia or the former Yugoslavia give you a pretty good idea: • Pirocanci (from the town of Pirot, reputedly stingy): Why do Pirocanci have two peepholes in their doors, one high and one low? - To see who’s come and what he’s brought.

By David Dowse

hen you think of it, children’s fairy tales are pretty horrific. Innocent kids are chased by witches, monsters and other scary creatures, and there is not always a happy ending, either. Even today, every child in Britain knows the story of the three little pigs that were terrorised by a nasty, huffing and puffing wolf, complete with large, sharp teeth and a bad attitude. Like all good stories, of course, there is a moral tale behind it all; build your house out of straw or sticks, and you can expect a visit from the big, bad wolf. Build it from hard work and solid stones, and it is the wolf

• Serbs happily make fun of themselves, too: Little Pera depicts a young, cheeky, but clever Serb: Pera’s teacher asks, “How far is Pluto from the sun?” - “As far as Partizan is from the Champions’ League,” Pera said. People from surrounding nations have jokes too! In these jokes Serbs are often perceived as aggressive, violent and ready to be bribed. One Bosniak aphorism, runs: • “Do not eat in a Croat’s house he is going to cheat you - and do not sleep in a Serb’s house - you can not be sure that you‘re goimg to be alive in the morning. Humour all around There’s humour in Serbian literature, theatre, films, and televi-

sion. Serbs who can afford tickets flock to see Branislav Nusic’s (18641938) play The Cabinet Minister’s Wife. This is a story of a simple but strong woman in pre-Second World War Yugoslavia, whose life changes when her husband becomes a minister. Aware of her lack of manners and education, she blindly follows protocol, and in the process creates chaos for herself and her family. Dusan Kovacevic’s play Radovan III is a tragic-comedy that tells of lost identity caused by Socialist “progress”. Radovan has moved from his native village to the suburbs where he lives with his family. His first daughter was raised as a son and is now a truck driver. His other daughter has been pregnant for five years since the father fled to America, and Radovan won’t let her to give birth until she marries. Zdravko Sotra’s film Ivko’s Feast, makes fun of social mores. Traditionally, no one should be turned away from a saint’s day celebration, but three long-staying guests turn the principal actor’s saint’s day into

nightmare when they refuse to leave. A very popular television social identity satire was Mile Against Transition. Mile, represents Serbia’s everyman. He witnessed the disintegration of Yugoslavia, wars in Bosnia, Croatia, and Kosovo, economic collapse, endured Milosevic’s international isolation, entrenched corruption and downfall, the assassination of the prime minister, and the failure of Serbian politicians. Mile yearns to preserve authentic Serbian life and rebels against transition, from having to wear seatbelts to adopting a new work ethic. He feels powerless, and, in the face of frustration, disappointment, and uncertainty, he yells at his TV. Mile was created to be taken ironically. Instead, Mile has become a popular hero whose anti-modern, anti-European tendencies are widely accepted, and has emerged as a hero, a symbol of Serbia’s current predicaments. That in itself is kind of funny. Pat Andjelkovic is a teacher, writer, and long-term expat.

• Montenegrins (supposedly lazy): A Bosnian and a Montenegrin had a ten-metre race. Who won? - No one. The Montenegrin gave up, and the Bosnian got lost. • Lala from Vojvodina (Naive and submissive): “My wife is a tramp,” Lale complains. “How come?” asks his friend. “I sent her a telegram I was coming home, and I found her in bed with some guy!” Then he adds, “Or maybe she’s not. Maybe she didn’t get the telegram.” • Slovenians (about their country’s size): Why do Slovenians use only three speeds on their cars? – If they used the fourth, they’d be across the border. • Croatians (who are perceived by Serbs as creating complex expres-

Who’s Afraid of the Big, Bad Wolf?

David Dowse wonders whether Margaret Thatcher encouraged those three little pigs in the British fairy tale to buy their house. If so, the wolf at the door probably works for a bank.

sions to distinguish Croatian from Serbian): How do you say “cow” in Croatian? A four-legged, milkgiving, grass eater.

himself who ends up on the dinner menu. During the political and social revolution that swept the UK during the 1980s, we were all encouraged, cajoled, even, to join Margaret Thatcher’s “property owning democracy”. Social housing was considered an anathema, a sign of weak and dangerous political thinking and therefore to be mercilessly wiped out. The British people, always keen to have a little suburban castle to call their own, behind the walls of which they will look respectable and be safe from wolves, neighbours and charity collectors, responded en masse. Mortgage companies and banking institutions (who were, incidently, huge donors to Mrs Thatcher’s Conservative Party) grew enormously rich and powerful. House values boomed, so we all borrowed lots more money, easily, and comfortably, to feed our rampant appetite for consumer goods, entertainment and exotic holidays. By 2005, so endemic was this selfdelusion that I knew otherwise intelligent people who talked of nothing else. Dinner parties had become a tedious ritual, in which middle-class couples would compare the equity in their properties, while bitterly envying those who had done even better

TV’s Mile, Serbia’s favourite anti-hero than they had. Greed is such an unattractive quality. This collective madness was one of the factors that made moving to the relative sanity of Serbia an attractive option for me. Of course, it was all an illusion. A few shrewd people, those who sold up at the peak and took their money out to buy up cheap farmhouses in relatively economically deprived areas, including Bulgaria, parts of France and Slovenia, did quite well. But the majority were duped into believing it was they themselves who actually owned their houses, rather

than the banks, and worse, they could not let go, because the house would be worth even more in future, wouldn’t it? Pop! The bubble burst so easily. The average British household now hqas debts of ₤70,000 (€84,000). The value of the average house there is falling by almost £150 (€180) per day. Every five minutes, another British citizen is declared bankrupt or insolvent. Over 100 homes are repossessed by the banks every day. And this time, there’s no discrimination. Straw, sticks, or bricks are all equally

Lessons from the property market in Britan: Serbia beware

Source: b92.com vulnerable to the big bad wolf. It is quite amusing to see Karl Marx’s critique of capitalism back in the best-selling book charts in the wake of the credit crunch debacle. One can only wonder where all the profit from those sales is going. But, for several thousand years, the Buddhists have been telling anyone who will listen that property is not theft, but simply illusion. Maybe they have a point. David Dowse, is a Senior Partner at Webb Dowse Intelligent Corporate Communications.

Photo by David Dowse

the belgrader

Friday, Oct. 24 - Oct. 30, 2008

Going out

Teatro – Not Theatrical, But Warrants Applause

If you can get past the music, you’ll have a good time. By Sophie Cottrell

isten people, we are, after all, in the Balkans. Having made the decision to continue to stay here, we knew that avoiding turbofolk would be nearly impossible. This strange music has its roots in Serbian folk, and electronica. Now, don’t get me wrong, Serbian folk and electronica are awesome. The mix of the two, spiced with some crappy lyrics and idiocy, however, is absolutely horrendous. Some would call me pretentious when it comes to music. So, for the sake of transparency, I’m going to tell you right off , that I don’t much like turbo-folk. Although, I will admit, I had a pretty great night at Teatro, regardless of the fact that my brain was slowly poisoned via my ears. The place was a bit intimidating to get into. Two enormous bouncers, obviously still being fed

by their mamas’ hearty sarma and pasulj, were guarding the door. You couldn’t get into the ground floor of the place unless you had an overpriced table reservation. But, we sneaked in anyway, because, well, sarma and pasulj aren’t necessarily the best recipe for brain development and efficiency. Let’s walk through the place. As I’ve already said, the place has an upstairs and a downstairs. The upstairs is fashioned after an old theatre, but with a modern flair. In the centre is a crowded dance floor, but not much dancing was going on. On one of the walls was a podium for a scantily-clad dancer, though I’ve come to accept this as standard for night clubs across the world, although the sleazy guys under the podium were unusually offensive. The women patronizing the place were in the main quite classy. This also came as a surprise but I didn’t feel underdressed, or wrongly

dressed, because anything it seems goes, from grunge to Kenzo. There were people of all ages, from a group of 15 year-old blondes to a table of leather-wearing middleaged men. I guess crappy music brings people together. The downstairs was a bit more relaxed, not so crowded, and eman-

cipated from the chains of turbo-folk. The floors were checkered, and the walls done in a simple motif. The crowd down here was younger and we relaxed and got on with the serious business of drinking and dancing. The choice of music was an improvement. A mixture of pop, house and a little techno although curiously nothing more modern

that late summer 2007! Make sure you bring your credit card or a lot of cash - aound 500 dinars will get you a Breezer and a shot of vodka at 270 dinars makes a vodka red bull not far off 600 dinars Overall, I had a good time at Teatro, but doubt I’ll go back unless the music steps it up a notch. Plus, the drinks were way too expensive.

Teatro: turbo-folk and dancing girls upstairs, disco downstairs

Photo by Sophie Cottrell

Peking: disappointingly retro.

Photo by Sophie Cottrell

Dining out

Restoran Peking A 1980’s institution in need of modernisation.

By “Trencherman”

s you step through the doors of the Peking restaurant, you find yourself instantly transported to a state restaurant of the 1980’s. A classy state restaurant, but a state restaurant nevertheless. Heavy dark wood was everywhere, little wooden features with “roofs” covered with pantiles – very “King and I”- thick carpet, very little lighting and a smartly dressed Maitre d. whose experience of China was clearly limited to work and shopping expeditions to Blok 70. The place was busy, and for four o’clock on a Saturday afternoon, that’s an achievement in any restaurant, but particularly so for one tucked away down an alley, so we were seated upstairs at a large round table with a rotating white formicatopped “lazy susan” in the middle. Everything was looking a little tired and depressed. The tablecloths weren’t dirty as such, it was just that they looked like they’d been dirty so many times before, the cutlery and glassware were similar. The lazy susan was nasty. It was covered with a layer of dust, and had a black grimy ring where the plastic edge met the formica top. This was not looking promising. The Peking was indeed a state run restaurant from the 1980’s when it was chic and fabulously expensive. One aspired to visit the Peking, used what connections one had and saved

up. But that was in a different time, and now things are different – very different. The Maitre d. was very insistent that we selected an Italian Reisling from the list. So insistent, in fact, that I smelled a rat and selected an Aleksandrovac. Ominously the Aleksandrovac was unavailable and despite the fact that, in my opinion, the words Italian and Reisling should never be adjacent, I gave in and accepted the Reisling. It had a slight mustiness associated with oxidation and there was absolutely none of the liveliness, acidity and zing that should be associated with a Reisling. Fortunately, at 850 dinars for half a litre, it was at least not punitively expensive. Starters of sliced beef in oyster sauce, which was fine, tasted strongly of soy but was savoury and appetizing, and Szechuan beef, cut into strips with sesame and a hint of chilli were more promising than the wine but presentation was poor – they both arrived as a blob of brown in the middle of the plate. My chicken noodle soup was watery and seemed to me to have been made to order by combining previously roasted chicken strips, which were very dry, stock cubes and some noodles. The sour and hot soup was better; there was a strong taste of bean curd, some mushroom and a little chilli. There was nothing awful about the main dishes, but there was nothing memorable either. The sweet and sour pork balls were served in a gloopy sweet orange sauce with no recognisable ingredients, and the other dishes, despite their claimed make-up, were little more than meat in gravy. No colour, no real kick of spices, not terrible, not inedible - really just not very

interesting. It was picked up a little by the chow mein that we ordered to accompany these which was well cooked with some fresh sliced vegetables, but all in all this was not a memorable experience. There was nothing really about the Peking to write home about. Nothing about the place, apart from the lazy susan - ugh! - aroused much passion at all. I didn’t complain. What I had was clearly how it was all meant to be, there were no errors. The largely elderly clientele were certainly enjoying what they were getting. But what they were getting was

an unadventurous menu, muted flavours and spicing, heavy, meaty sauces - in fact they were getting the European version of Chinese food from 30 years ago. Much beloved of the corner shop takeaway, circa 1980. These days, I’m afraid, I expect a little more, especially from a restaurant which has the history and pretensions of the Peking. With Chinese ingredients ever more widely available, there’s little excuse even for the adventurous home cook not offering accurate spicing and fresh ingredients. For a restaurant, it strikes me as indolent at best.

The Peking advertises heavily to tourists and business people with flyers at the airport and in many hotels. The flyers are modern, interesting, glossy, well presented and professional. They would do well, in my view, to incorporate these values into the food. Price guide: 2,000 – 2500 dinars per head for 3 courses with a modest wine. Restoran Peking Vuka Karadzica 2 Tel 011 181931

sport

Friday, Oct. 24 - Oct. 30, 2008

Vidic and Krkic Give Food for Thought Manchester United’s Serbian defender has made the shortlist for the annual Golden Ball award while Barcelona’s teenage striker impressed with a mature Champions League performance.

By Zoran Milosavljevic

emanja Vidic may not win the elusive Golden Ball award but the fact that he has been shortlisted among 30 players vying for the annual prize, given to Europe’s best player, shows just how far Manchester United’s Serbian defender has come since he joined the Premier League giants from Spartak Moscow in January 2006. The 27-year old central defender, impressive for club and country over the past few years, does not stand much of a chance among team mates Cristiano Ronaldo and Wayne Rooney or the likes of Lionel Messi and last year’s winner Kaka simply because defenders rarely beat strikers to the Ballon d’Or, a glittering goldplated trophy presented by France

Football, a monthly magazine. After all, Germany’s former World Cup winner Franz Beckenbauer was the last defender to claim it back in 1976, two years after he led his country to their second title on home soil. It may seem unfair but football is a game where fans want to see as many goals as possible and hence defenders are sometimes less appreciated for stopping them. That however, turned out to be somewhat difficult in this week’s Champions League fiesta with the eight matches providing a recordequalling tally of 36 goals on Tuesday, much to the delight of everyone sat alongside me in Belgrade’s Sport Café where I caught the games. Not surprisingly, Rooney was on target again in United’s 3-0 rout of Celtic at Old Trafford and took his tally to nine in the last seven matches for his club and England, underlining that he has every chance of beating Ronaldo at the finish line. Although the mercurial Portuguese forward undoubtedly figures as the top candidate following his stunning total of 42 goals in United’s double conquest last season, his theatrical diving under innocuous tackles and gesticulations to referees is what might deter more than just a few journalists from giving him their votes. The goal extravaganza included Villarreal’s 6-3 win over Aalborg, a 5-3 success for Olympique Lyon at Steaua Bucharest, after they fought back from a two-goal deficit and Arsenal’s emphatic 5-2 win at Fener-

Clash of the Titans By Zoran Milosavljevic

osts ands world champions Australia are red hot favourites to retain their Rugby League world cup title but they will face some stern opposition in the month-long tournament, especially when they meet bitter foes New Zealand in their Pool A clash of the titans in Sydney on Sunday. Australia have not played any warm-up matches while the Kiwis made their intentions clear in no uncertain terms with a 56-8 rout of Tonga last weekend, prompting a stern warning to the Wallabies. “We know that the favourites don’t always win and there is absolutely no room for complacency,” Australia’s captain Darren Lockyer said after New Zealand’s effervescent performance against Tonga. England and Papua New Guinea are the other two teams in Pool A, by far the strongest of the three, with France, Fiji and Scotland comprising Pool B while Tonga, Ireland and Samoa are in Pool C. Although New Zealand must have high hopes of toppling Australia, their captain Nathan Cayless believes they will have to improve vastly if they are to mount a sustained challenge for the title. “We need to go out and perform the full 80 minutes, not just 60 or 40 as we have done in the past and that’s going to be the biggest test for us,” said Cayless.

The tournament kicks off on Saturday when Papua New Guinea take on England in Townsville while Scotland meet France in Canberra in Sunday’s early match, the curtain raiser to the Australia v New Zealand classic following the opening ceremony in the Sydney Football Stadium.

The World Cup starts this weekend

bahce, one of the most difficult away grounds in the Champions League. Wednesday’s games produced less than half of the Tuesday total (17 goals in eight games) but will be remembered for Barcelona’s 5-0 thrashing of Basel in which teenage striker Bojan Krkic capped a brilliant performance with two well taken goals. Far more experienced strikers would have been proud of his composure, maturity and clinical finishing. Serbian fans are disconsolate after the 18-year old chose to play international football for Spain ahead of his father’s native Serbia. Not even persistent efforts by Serbia’s coach Radomir Antic and his plea to Krkic’s father could change the young prodigy’s mind. “I was never in any doubt what country I would play for as I was born and raised in Spain,” said Krkic after making his debut for the European champions in a 4-0 World Cup qualifying win over Armenia. Winning the Golden Ball is quite certainly far more important to Krkic than winning the hearts of Serbia’s fans but they in turn should not lose hope that Vidic just might be the one parading on the podium at the end of next week’s gala. Stranger things have happened in football.

Rooney is a worthy contender to win the Golden Ball

Photo by FoNet

Zoran Milosavljevic is Belgrade Insight’s sports writer and also a regional sports correspondent for Reuters.

Murray Wins Madrid Masters TV Events By Zoran Milosavljevic

ritain’s Andy Murray has left no room for doubt that he is fast becoming a top contender for the world number one spot in the men’s ATP rankings after his impressive conquest of the Madrid Masters, where he beat surprise package Gilles Simon of France 6-4, 7-6 in the final last weekend. The 21-year old Scot won his second title of the season and his seventh overall after a memorable victory over former king Roger Federer in an epic three-set semi-final, while Simon was equally impressive in eliminating world number one and the home crowd’s favourite Rafael Nadal. Murray’s success and his improving performances as the season draws to a close suggests the men’s ATP tour now boasts of a “Big Four,” a quartet of top players who will aim

for the throne next season and many more to follow. Nadal appears set to keep his reign for some time to come with the ageing Federer battling the clock and a pack of hungry young prospects determined to move up the ladder. Serbia’s world number three Novak Djokovic, who made a shock early exit in Madrid after a straightsets defeat to Croatia’s Ivo Karlovic, will need to find the consistency he lacked in the second half of the season not only to stand a realistic chance of breaking into the top two but also to fend off his close friend Murray, who has tightened his grip on the number four spot. Meanwhile, Jelena Jankovic retained the top position in the women’s WTA rankings despite a first-round exit in Zurich following a hat-trick of victories in Stuttgart, Beijing and Moscow while fellow Serbian prodigy Ana Ivanovic moved one place up to fourth after reaching the semi-finals, where she lost a tight contest with eventual winner Venus Williams of the U.S.

Murray cliches his second ATP title this season

Friday, Oct. 24: Soccer: Bundesliga - Bayer Leverkusen v FC Cologne (Sport Klub, 8:30 p.m.), Argentinean League - San Martin v Arsenal de Sarandi (Sport Klub, 11:55 p.m.); NHL Ice Hockey: St. Louis Blues v L.A. Kings (Sport Klub, 02:30 a.m.) Saturday, Oct. 25: Basketball: Regional NLB League: FMP Belgrade v Cibona Zagreb (FOX Serbia, 4:00 p.m.), KK Zagreb v Partizan Belgrade (HRT 2, 5:30. p.m.); Soccer: Everton v Manchester United (RTS 2, 12:55 p.m.), Hannover v Werder Bremen (Sport Klub, 3:30 p.m.), Blackburn v Middlesbrough (RTS 2, 6:30 p.m.), Osasuna v Betis (FOX Serbia, 8:00 p.m.), Juventus v Torino (Avala, 8:30 p.m.), PSV Eindhoven v Roda (Sport Klub, 8:45 p.m.), Barcelona v Almeria (FOX Serbia, 10:00 p.m.); NHL Ice Hockey: New York Rangers v Pittsburgh Penguins (Sport Klub, 1:00 a.m.). Sunday, Oct. 26: Basketball: Regional NLB League: Red Star Belgrade v KK Split (FOX Serbia, 12:00 a.m.) Soccer: Chelsea v Liverpool (RTS 2, 2:30 p.m.), Inter Milan v Genoa (Avala, 3:00 p.m.), West Ham v Arsenal (RTS 2, 5:00 p.m.), Borussia Dortmund v Hertha Berlin (Sport Klub, 5:00 p.m.), Villarreal v Atletico Madrid (FOX Serbia, 7 p.m.), Marseille v PSG (Sport Klub, 9 p.m.), Argentinean League (Sport Klub, 11:30 p.m.); NFL: New Orleans Saints v San Diego Chargers (Spork Klub, 7 p.m.), Jacksonville Jaguars v Cleveland Browns (Sport Klub, 10:15 p.m.).

the belgrader

Slic

Friday, Oct. 24 - Oct. 30, 2008

My Picks

Belgrade has a lot to offer as far as shopping goes, but where can you find that unique item that will completely set-off that perfect outfit?

By Rian Harris

nez Mihajlova is full of topname designer shops, but where can you go to find something unusual and local? Slic is a tiny, basement level shop that offers creative and totally unique pieces by up and coming designers. You’ll find clothing, shoes and accessories. The store will also put you in touch with a designer if you’d like to commission something.

True, some days you might stop in and find nothing that suits you, especially since the shop carries just one of each item, but another visit might yield the perfect piece. On a recent trip, I found a bubble skirt that was lovingly crafted from velvet, organza and lace ribbon by Katarina Vukovic. While perhaps a little too hip for the office, it is perfect for a night out. At 4,000 dinars, I thought this one-of-a-kind item was well worth the price, plus you’re supporting local talent. Slic is located on Palmoticeva 23, behind the Parliament building. They also recently opened a second space at Knez Mihailova 21A in the Millenium Center. Mon - Fri, 12-8 p.m. Sat, 12-6 p.m. 011 3236429 www.slic.co.yu Rian Harris is the First Secretary of public affairs for the US Embassy in Belgrade.

Slic: great value designer wear

Photos by Sophie Cottrell

What’s On CINEMAS Roda Cineplex Požeška 83A , tel: 011 2545260 Turneja (The Tour) 18:00 & 20:15 Wall - E 16:00 Mirrors 22:30 Journey to the Center of the Earth 16:00 The House Bunny 17:45, 20:00 & 22:15 Star Wars: The Clone Wars 16:30 Max Payne 18:30, 20:30 & 22:30 Dom sindikata Trg Nikole Pašića 5, tel. 011 3234849 The House Bunny 18:15, 20:15 & 22:15 Nije kraj (Will Not End Here) 18:00 & 20:00 Ljubav i drugi zlocini (Love and Other Crimes) 16:00 & 22:00 Turneja (The Tour) 16:15, 18:15, 20:15 & 22:15 Mamma Mia! 16:30 Max Payne 18:30, 20:30 & 22:30 Ster City Cinema Delta City, Jurija Gagarina 16 (Blok 67), tel: 011 2203400 Turneja (The Tour) 12:10, 13:10, 14:20, 15:50, 16:40, 18:10, 18:50, 20:20 & 22:30 The House Bunny 13:20, 15:30, 17:40, 19:50 & 22:00 Wall - E 12:20, 14:30 & 16:30 Tropic Thunder 13:00, 15:10, 17:20, 19:30 & 21:40 Max Payne 12:40, 14:50, 16:50, 18:50, 20:50 & 22:50 Mirrors 21:10 & 23:20 You Don’t Mess with the Zohan 18:30 Mamma Mia! 14:00, 16:10, 18:20, 20:30 & 22:40 Turneja (The Tour) 13:40, 15:50, 18:00, 20:10 & 22:20 Tuckwood Cineplex Kneza Miloša 7, tel: 011 3236517 Star Wars: The Clone Wars 17:00 Mirrors 16:30, 18:50, 21:15 & 23:30 Nije kraj (Will Not End Here) 19:00 & 23:00 Milos Brankovic 21:00 Max Payne 15:45, 18:00, 20:15 & 22:30

The House Bunny 15:30, 17:45, 20:00 & 22:15 Turneja (The Tour) 15:30, 18:00, 20:30 & 22:15

CONCERTS Tarja Turunen

A Finnish soprano and songwriter, best known as the former lead vocalist of symphonic/power metal quintet Nightwish, is coming to Belgrade on her European tour. Student Cultural Centre (SKC) Kralja Milana 48 October 27, 21:00 Tickets available at SKC ticket office Johnny Winter American blues guitarist, singer and producer, Johnny Winters, struts his stuff.

ANNUAL EVENTS

THEATRES

24th Belgrade Jazz Festival

Madlenianum Glavna 32

A traveling exhibit on history of jazz in Germany. Geared at the interested public and experts at once, the exhibition is rounded-off with photographs from private and public archives.

Les Miserables

October 24 - 31

A musical based on one of the best-known novels of 19th century, Les Miserables by Victor Hugo. It follows the lives of several French characters over a twenty year period in the early 19th century that starts in the year of Napoleon’s final defeat.

Gallery of Science and Technology of SASA

The Belgrade jazz festival is manifestation of a special meaning to the City of Belgrade. “Jazz Emotions” is the motto of this year’s festival, which will be held at various locations in Belgrade. Artists from USA, France, Italy, Brazil, Netherlands, Israel, Lebanon, Portugal and Serbia will perform at this year’s festival. Various locations October 24 - 27 Tickets available at the Dom Omladine ticket office, Makedonska 22

October 27, 19:30 Tickets available at Madlenianum ticket office, Trg Republike 5

The exhibition reconstructs a representative scene of the ambience of an urban house from the 1820s. October 16 - December 10

For more information, please visit belgradenet.com/belgrade_jazz_festival.html

Some Like it Hot

Gallery of THE Serbian Academy of Science and Arts

16th Cinemania

Musical play based on the 1959 comedic film by the same title.

A yearly film festival held in Belgrade’s Sava Center and the Novi Sad Arena, showing premiers of new movies and highlights from the past year at discounted prices.

October 25, 19:30 Tickets available at Terazije Theater ticket office, Trg Republike 5

Queen & Paul Rodgers

Sava Centre Milentija Popovica 9 October 29 - November 5 Tickets available at SC ticket office and Bilet Service, Trg Republike 5

Chicago

Belgrade Arena Bulevar Arsenija Carnojevica 58 October 29, 20:00 Tickets available at Belgrade Arena ticket office and Bilet Service, Trg Republike 5

BALLET

Brimstone Howl

Earth

This American band playing blues and punk influenced rock and roll, is coming to Belgrade on their “We Come in Peace” tour.

A ballet directed and choreographed by Joe Alegado, an American choreographer and dance teacher. His choreography has been performed by companies in Germany, Slovakia, Spain and the US.

Student Cultural Centre (SKC) Kralja Milana 48 October 30, 22:00 Tickets available at SKC ticket office

Life in Serbia on the Eve of Electrification

Terazije Theater Terazije 29

Sava Centar, Great Hall Milentija Popovica 9 October 28, 21:00 Tickets available at SC ticket office, Trg Republike 5

What remains of this world-renowned band arrive in Belgrade on their European tour.

Djure Jaksica 2 Mon - Sun 10:00 - 20:00

Terazije Theater Terazije 29

October 24, 19:30 Tickets available at Terazije Theater ticket office, Trg Republike 5

Terazije Theater Terazije 29

A musical directed by Kokan Mladenovic. The story is a satire on corruption in criminal justice, and the concept of the “celebrity criminal”. The musical is based on a 1926 play of the same name by reporter Maurine Dallas Watkins and is about actual crimes she had reported on. October 30, 19:30 Tickets available at Terazije Theater ticket office and Bilet Service, Trg Republike 5

EXHIBITIONS

Knez Mihailova 35 Tue, Wed, Fri 10:00 - 20:00 Thu 10:00 - 16:00 Vinca - The Prehistoric Metropolis The exhibition of the Neolithic culture of Danube region. October 24 - December 5

CLUBBING The clubbing scene has moved back to town. We present you this weeks highlights: CLUB PLASTIC Djusina 7 Big Bud All that bass, Rahmanee, Side1 & Necone October 24, 23:00 ANDERGRAUND Pariska 1a Jan Nemecek Live! & Milos Pavlovic, Ewox

Goethe - Institut Belgrad

October 24, 23:00

Knez Mihailova 50 Mon, Wed, Fri, 12:30 - 16:30 Tue to Thu 12:30 - 18:30

MISS MONEYPENNY Ada Ciganlija BB4

German Jazz

October 24, 22:00

DJ Paki