InFocus Slovenia 2016 by cmcpresentation

SLOVENIA 2016

Diplomacy&Commerce

STRONG AND GREEN AT THE CROSSROADS MIRO CERAR Slovenian Prime Minister

MARKO ČADEŽ President of the Serbian Chamber of Commerce (PKS)

ZDRAVKO POČIVALŠEK Minister of Economic Development and Technology

THE OLDEST PRODUCING GRAPEVINE

Maribor, Slovenia, is famous for its wineâ&#x20AC;&#x201D; particularly wine produced from the grapes of a vine over 400 years old. The vine is the focus of festivals that have made a ritual of cutting the vine and harvesting its grapes. The oldest vine (Stara trta) is actually in Maribor. In Slovenia, there is a vineyard or winery on every 70 people!

WILD WILD HORSES The Lipizzaner horses are a special breed of horses long used for ceremonial purposes and cherished by the nobility. These horses are bred and trained in Slovenia, where a stud farm has existed since the 16th century. The Lipizzaner stud farm is a serious attraction in Lipice.

06 SLOVENIAN CARNIVAL

05 LAND OF CAVES Sloveniaâ&#x20AC;&#x2122;s caves, the most famous which is Postojna and a highlight of the Karst region. Postojna caves are home to a special variety of blind, pale salamander, the habits of which are still being documented by scientists. Slovenia also boasts of having the oldest show cave in Europe: tourists have been visiting Vilenica cave since the first half of the 17th century.

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Carnival in Slovenia sees the appearance of the Kurenti, actors dressed up in shaggy costumes or don frightful masks to scare off bad spirits. They take to the streets and ring bells or make other noise for the same purpose. This Shrovetide ritual has ties to pagan tradition.

LAND OF DRAGONS

If you visit Ljubljana, Slovenia’s capital city, you’ll certainly encounter dragons. Or, more specifically, a specific dragon that guards a bridge named for this mythological creature. One legend has it that Jason of the Argonauts killed this dragon while navigating Europe’s waterways after having stolen the golden fleece. However, the dragon’s more likely symbolism may come from the imagery of St. George killing the dragon, or the overcoming of paganism by Christianity

THE MOST CHURCHES!

Slovenia, surprisingly, . has the most churches and religious objects per capita in Europe: over 3.000 chruches, monasteries and chapels adorn the landscape and cityscape.

THE FIRST GREEN DESTINATION

Slovenia has recently been praised and acclaimed as the world’s first ecological, or green destination.

HARD TASK

If a couple marries at the church on the Bled Island, the groom must carry the bride up the 99 steps. It is a custom! A hard one indeed.

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Slovenian Prime Minister

INTERVIEW

NEW FRONTIERS FOR THE COOPERATION SET 6

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Serbia is Sloveniaâ&#x20AC;&#x2122;s important political and economic partner in the region, and we also see the country as a future counterpart within the EU. After our Belgrade meeting, I expect new impetus for cooperation in various fields, and renewed political incentive for the economy to break into new markets that are in the common interests of both of our countries

Photos: Agency STA

MIRO CERAR

am convinced that joint meetings of the two governments, accompanied with a carefully determined selection of ministers and businessmen, will further strengthen our economic cooperation and simultaneously enhance the already close relations among the people of our two countries, says Miro Cerar, Prime Minister of Slovenia, with whom we discussed the encouraging results of the Slovenian economy, security issues related to the migrant crisis and the prospects of further cooperation between Slovenia and Serbia within the regional and EU context.

In your opinion, what has contributed to Slovenia's very good economic results at this moment? − I am pleased to state that the annual prognosis for the growth of gross domestic product in 2016 and over the next two years shows a continuation of favourable economic trends. The GDP growth forecast for 2016 stands at 2.3%, while for 2017 and 2018 GDP is expected to reach 2.9% and 2.6% respectively. These forecasts are very positive and show that Slovenia is well on the way to economic recovery, which is a result of the com-

The strategy we are following is to gradually eliminate the government deficit without hindering the economic recovery. Last year we reduced the government deficit to 2.7% of GDP, which is below the EU fiscal threshold of 3% of GDP. The deficit will be further reduced to 2.2% of GDP in 2016 and 1.3% of GDP in 2017. This year, general government debt will decrease for the first time after the dramatic increase in the post-2009 crisis period. Overall policy changes have also resulted in an increase in foreign direct investment, which has resulted in historically record high inflows in the last two years. The progress made in terms of policy implementation and better economic performance has resulted in Slovenia’s credit rating upgrade, exiting the EU processes of Excessive Macro Imbalances and excessive deficit, as well as resulting in improving Slovenia’s rank in the IMD’s World Competitiveness Report, on the World Bank’s Doing Business List and in the World Economic Forum’s Global Competitiveness Report.

the region remain in ensuring its overall political stability and instilling confidence among economic operators in public and financial institutions. I believe that such increased confidence would in turn attract new investors to the region.

Where do you see the key challenges for sustaining positive growth trends in Slovenia and the region?

How would you evaluate overall relations with Serbia and what were the key topics of the joint session of the two governments in October? (MZZ)

How are your assessments influenced by the continued failure to resolve the refugee crisis and the concentration of migrants in the region? − I firmly believe that the EU must continue its close cooperation with the countries of the Western Balkans and provide further support and assistance. The countries of the EU and the Western Balkans need to become partners in this migrant crisis. At the same time, all the countries should avoid unilateral actions and continue coordinating their response, especially if the pressure continues to build. Of course, all agreements and commitments must be fully respected; the principle of “letting through” can no longer apply.

− I am

IN SLOVENIA’S VIEW, THE KEY CHALLENGES OF THE REGION REMAIN IN ENSURING ITS OVERALL POLITICAL STABILITY AND INSTILLING CONFIDENCE AMONG ECONOMIC OPERATORS IN PUBLIC AND FINANCIAL INSTITUTIONS petitive export sector and a sustained policy effort in addressing key economic vulnerabilities. Recovery in the post-crisis period has been facilitated by good export performance of Slovenian firms and their competitive gains. However, this would not have been enough if the policy effort had not addressed the balance sheet problems of the banking system in a comprehensive manner and carried out a set of policy reforms that enhance economic resilience. Undoubtedly, the approach we have taken to fiscal consolidation has also contributed to the current positive economic performance.

− The major challenge we face is to maintain our recovery on a sustained basis. The crisis has manifested across the region in lower potential growth, which is associated with vulnerabilities from the past, but is also related to lower international trade and investment, which is a key growth lever for small, open economies. While a lot has been done in terms of policies to improve economic conditions, some vulnerabilities are still present, such as the level of non-performing loans in the banking systems and country specific impediments to business, such as red tape and regulations on spatial planning. In Slovenia’s view, the key challenges of

glad to highlight that relations between Slovenia and Serbia are very good, dynamic and diverse. Cooperation extends via various areas, which we also confirmed at the recent joint session of our two governments. Serbia is Slovenia's important political and economic partner in the region, and we also see it as a future counterpart within the EU. I and my Serbian counterpart, Aleksandar Vučić, have confirmed that there are no major outstanding bilateral issues, while those that do exist are being addressed successfully. With a view to strengthening economic cooperation between our two countries, a

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concurrent business forum was organised, dedicated to four business sectors: IT, the food processing industry, tourism and the environment. Opportunities for cooperation on third markets were also considered. We agreed to increase our efforts in further implementing the Agreement on Succession Issues. For Slovenia, the effective resolution of succession issues is of crucial importance. The two countries have indeed enhanced their cooperation recently and achieved considerable progress in this regard. We expect efforts to further intensify in the future. Another issue on the agenda was Serbia's EU integration process. As I stressed during the visit, Slovenia will continue to strive for the EU's door to remain open for this Balkan country, which is part of the European family. We already started providing bilateral technical assistance to Serbia in different negotiation chapters in 2015. Thus far, over 15 Slovenian experts have been engaged to assist in seven chapters, and we intend to continue providing this form of assistance. Additionally, Slovenian experts are also participating in six twinning projects in Serbia. Migration was another major topic discussed. As I have already mentioned, everyone should avoid unilateral action and continue coordinating their response, especially if the migration pressure continues to build. Having said that, Slovenia is fully aware of the importance of Serbian measures, which is why the Slovenian Police will assist in border controls between Serbia and Bulgaria.

What can the two governments do in their domains to further advance mutual cooperation? − For this last meeting in Serbia, I was accompanied by several ministers from my government and a business delegation. This format of combining ministers and businessmen is, in my opinion, a good starting point for upgrading close ties between our two governments. I am confident that this visit to Serbia will convey a clear message that our governments are complementary in many ways and that we need to use this as a building block. One of the aims of joint government sessions is to exchange views and suggestions regarding the areas where our cooperation could be further strengthened and improved. It is, however, crucial that all the opportunities identified at the session are then followed through. I now expect new impetus for cooperation in various fields, and renewed political incentive for the economy to break into new markets that are in the common interests of business professionals from both of our countries.

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How much is current Slovenian economic growth based on the long-term strategy of strengthening industrial capacity and exports, and in that context how do you view the commercial linking of Slovenia and Serbia? − The essential measures in support of Slovenian companies when breaking into new markets are defined in the governmental Programme for Internationalisation 2015– 2020. Individual internationalisation activities, undertaken by partners on selected foreign markets, and an overview of all international activities by partners, are listed in our action plan International challenges

I AM CONFIDENT THAT MY VISIT TO SERBIA WILL CONVEY A CLEAR MESSAGE THAT OUR GOVERNMENTS ARE COMPLEMENTARY IN MANY WAYS AND THAT WE NEED TO USE THIS AS A BUILDING BLOCK 2015–2016. A new two-year action plan is soon to be published. In the already existing one, Serbia is considered a traditional market. In such markets, Slovenia’s focus is now mainly on bringing companies together and promoting joint ventures.

How would you evaluate current trade exchange trends and where do you see the potential for their further development? − We are very pleased that, despite a slight drop in 2014, trade between Slovenia and Serbia maintains a long-term upward trend. The available 2015 figures are particularly

good for Slovenian exports to Serbia. In the SEE region, Serbia remains Slovenia’s single most important trading partner. Some untapped potential for economic cooperation and upgrading the exchange, however, exists in various fields, some of which were addressed at the aforementioned business forum. Other possible areas of cooperation are transport and energy infrastructure, energy efficiency, renewable sources of energy and sustainable development, the financial sector, the automotive industry, and joint ventures in third markets, especially in countries with which Serbia has concluded free trade agreements. This is why I and

Serbian Prime Minister Vučić called for further enhancement of our economic cooperation. I am also satisfied that Serbian investment in Slovenia is also on the rise.

In parallel with the joint session of the two governments, a business forum was also held at the headquarters of the Chamber of Commerce & Industry of Serbia. In which economic fields should current cooperation be extended? − The joint government session was accompanied by a business event that was carefully targeted, as recommended by the Slovenian Chamber of Commerce and Industry and supported by the Chamber of Commerce and Industry of Serbia. That business forum was focused on four economic sectors where opportunities for advancing our economic cooperation have been identified. They included digitisation of the public administration and economy, the agriculture and food-processing industry, tourism and, last but not least, environmental projects. I am convinced that such meetings will further strengthen our economic cooperation and simultaneously improve the already close relations among the people of our two countries.

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ZDRAVKO POČIVALŠEK

INTERVIEW

OUR COOPERATION CAN ONLY GROW FURTHER UP

Minister of Economic Development and Technology

Considering the major objectives planned by Serbia in the near future, we estimate that there are numerous new opportunities for the cooperation of the Slovenian and the Serbian economy. These include the construction and renewable energy sector and privatisation of Serbian state-owned companies

lovenia is one of the rare countries in the EU which can count of the growth prospects above 2%, and carefully works on remaining challenges and obstacles. “I believe that we are on the right path”, says Zdravko Počivalšek Minister of Economic Development and Technology, who sees both industry and tourism as pillars of the further positive prospects of the domestic economy.

Estimations for Slovenia's GDP growth for 2016 and 2017 are optimistic. Which factors have mostly contributed to these results? − The annual prognosis for growth in the gross domestic product in 2016 and over the next two years shows a continuation of favourable economic trends, while the GDP dynamics will mainly be characterised by national investments related to the extent of drawing the EU funds. The GDP growth forecast for 2016 stands at 2.3%, and for 2017

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and 2018 GDP is expected to reach 2.9% and 2.6% respectively. The export is most certainly a major factor in economic growth. Besides the anticipated rise in foreign

THE FOCUS ON EXPORT AND THE INCREASED INVESTMENTS INDICATE AN IMPROVEMENT IN SLOVENIA’S SITUATION, WHICH IS ALSO A RESULT OF GOVERNMENT POLICIES AND MEASURES TAKEN TO PROMOTE THE HEALTHY SEGMENTS OF THE INDUSTRY

demand, growth will also continue due to improved competitiveness in the tradeable sector. The basis for improvement in the economic operation will expand since the contribution of domestic consumption will also gradually increase.

The continued improvement in government’s fiscal situation and recently introduced reforms were the main reason behind Moody’s decision to upgrade Slovenia’s outlook earlier in September. What are the remaining challenges? − Moody’s has improved its rating for Slovenia due to the improved situation in government deficit and debt and due to implemented reforms, which may affect the long-term economic and institutional changes. Slovenia's key advantages are the export-oriented economy and relatively high per capita income. Although having made a considerable improvement since the crisis outbreak – Slo-

venia has the highest GDP per capita among countries in transition – the main challenges remain the macroeconomic stability, the economic growth, the competitiveness of the economy, the strengthening of human capital and innovation capabilities, the effectiveness of state and transparency of public sector management, an effective labour market, the human capital development and sustainable environmental and territorial development. The Ministry of Economic Development and Technology mainly focuses on improving the business environment for companies and investors both from Slovenia and abroad. With the purpose of improving competitiveness in the economy, the operation of the VEM one-stop-shop system was established, where a stable, up-to-date, integrated, generally recognisable and friendly support environment for current and poten-

tries, such as the metal processing industry, the automotive industry, the manufacture of electrical appliances and devices, and the chemical industry, which reach the highest competitive levels on the global scale, were the ones that acted as a catalyst behind the economic reboot.

On the other hand, you were a vocal advocate for the strong development of tourism. Has this been going well so far? − I believe that we are on the right path. As one of the most important sectors of the Slovenian economy, tourism generates more than 12.8% of Slovenia's GDP. We are doing our best to develop new, attractive tourist products and to improve our tourist capacities as well as the level of services. According to new trends and circumstances, we are preparing some changes in the

ments abroad, especially in terms of investments in the region and in Serbia? − Despite a 2% decrease in investments Slovenia made in Serbia in 2015, compared to the previous year, when €1,185.4 million were invested, Serbia remains the second largest recipient of Slovenian direct investments as no less than a quarter of investments are realised on the Serbian market. There are more than 1,500 companies in Serbia registered with capital of Slovenian origin. These companies employ more than 35,000 people. As Serbia is in the process of accession to the EU, thus approaching the single European market, it is becoming even more interesting for the Slovenian economy. Considering the major development projects and objectives planned by Serbia in the near future, we estimate that there are also numerous new opportunities for the

THE GOVERNMENT DEFINES TOURISM AS ONE OF THE MOST IMPORTANT ECONOMIC AND STRATEGIC SECTORS THAT GENERATES NEW JOBS AND HAS AN EXTREMELY POSITIVE IMPACT ON THE BALANCED REGIONAL DEVELOPMENT tial entrepreneurs is provided. A one-stopshop for foreign investors, which will operate within SPIRIT Slovenia, is particularly noteworthy.

One of the major cures for the struggling Slovenian economy during the crisis was to strengthen the healthy parts of the industry. Has this strategy paid off? − Since acquiring its independence, Slovenia has maintained a strong industrial base, which is, with regard to its export structure, strongly linked to the major external trade partners, i.e. Germany, France and Italy. The percentage of industry in the GDP structure ranged from 24% to 26% this entire time, which was more than the EU and EMU average and can be compared to the structure of German economy. After the onset of global financial and economic crisis, the traditionally successful export-oriented indus-

tourism and hospitality legislation and are in the process of preparing a new strategic document for tourism development for the 2017–2021 period. In the Slovenian tourism, positive results were recorded in 2015, where we can talk about the best year ever. In 2015, tourist arrivals in Slovenia increased by 11.5% compared to 2014, exceeding 3.9 million, while tourist overnight stays increased by 7.8%, exceeding 10.3 million. Tourism contributes 37.5% to the export of services in the Slovenian balance of payment. The Government of the Republic of Slovenia defines tourism as one of the most important economic and strategic sectors that generates new jobs and has an extremely positive impact on the balanced regional development.

To what extent did the above mentioned favourable situation on the domestic market affect the Slovenian invest-

cooperation of the Slovenian and the Serbian economy. These include projects that are of particular interest to the Slovenian companies and investors, e.g. the construction of the €15 billion Belgrade on Water (Beograd na vodi) project, privatisation of 500 Serbian state-owned companies, participation in the construction of the traffic infrastructure and in the field of renewable energy sources.

How do you estimate the overall level of trade relations between our two countries? − The economic cooperation between the two countries is very good, but there are still many untapped opportunities in numerous areas. Serbia is very quickly transitioning into a market economy, and with a market of seven million people it remains very interesting for Slovenian companies. Furthermore, it is Slovenia’s most impor-

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tant trade partner in SE Europe. With regard to the value of trade in goods, which amounted to €1.14 billion in 2015, Serbia was the eleventh most important partner of the Republic of Slovenia. The value of Slovenian export came to €743 million, and the value of the import of goods from Serbia reached €400 million. Slovenia recorded a surplus in the trade balance with Serbia, so the Ministry’s public agency, i.e. SPIRIT Slovenia, is planning regular promotional activities with regard to internationalisation and Slovenian investments made in Serbia.

Bearing in mind that the EU market is quite weak, which countries do you see as the most promising for the Slovenian export and is there room for joint cooperation between our two countries? − Germany remains the main export market for the Slovenian economy, as 2015 was, once again, a record year concerning the economic relations between Slovenia and Germany. In the trade of goods, Slovenia was one of the rare EU Member States to generate a surplus in doing business with Germany. For years, Germany has been Slovenia’s most important trade partner. Furthermore, Slovenia sees potential opportunities to enhance the cooperation with Serbia within the context of economic cooperation with Germany. Considering that Serbia would like to become a centre of trade in the region and that its government plans to generate no less than half of economic growth within the next five years in the scope of industrial policies, whereby its goal is to develop a large automotive industry, it is estimated that this assessment leaves room for cooperation between our two countries in both Slovenia’s and Serbia’s export to Germany and other European countries.

This year, Slovenia is celebrating 25 years of independence. To what extent did our two countries succeed in rebuilding the once broken economic ties? − The gradual intensification of renewed political ties between the countries following Slovenia’s independence, which was gained 25 years ago, resulted in shifts when it comes to resolving numerous bilateral issues, including those of economic cooperation between the two countries. After Slovenia joined the EU, it adjusted its economic cooperation with third states to the common EU foreign trade policies and the rules on international trade cooperation. This resulted in a termination of all trade agreements which Slovenia had entered with third states, which also affected the extent of economic cooperation with Serbia. After joining the EU, Slovenia lost a part of its trade in goods with Serbia. After Serbia began its accession process to the EU, the

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economic ties between our countries began to improve; today they are good, but there is still major untapped potential on both sides.

How can these ties be strengthened further? − Slovenia will continue to make efforts to assist Serbia in establishing conditions for joining the EU as soon as possible, which will considerably enhance the opportunities to intensify future economic cooperation between the two countries within a common

SERBIA REMAINS THE SECOND LARGEST RECIPIENT OF SLOVENIAN DIRECT INVESTMENTS AS NO LESS THAN A QUARTER OF INVESTMENTS ARE REALISED ON THE SERBIAN MARKET. SEEN IN THE FIELD OF CIVIL ENGINEERING, ENERGY, TOURISM, INFORMATION TECHNOLOGY, AND CREATIVE INDUSTRY

market. The joint meetings of the governments of both countries and regular meetings of mixed committees for economic cooperation are a great contribution and provide good political support in strengthening economic ties between both countries. The most significant driving force for enhancing these ties are most certainly direct meetings and contacts among members of the economic sector.

Where could joint work of the two governments help businesses to further develop the trade and investment opportunities? − The joint meetings of the governments of both countries mainly provide strong political support to direct economy in establishing mutual business ties. Reducing obstacles on both markets, resolving open issues, and establishing a business and investment environment that is as favourable as possible within the current legal frameworks of both countries can, of course, bring the greatest result of joint efforts invested by both governments when it comes to providing support in economic cooperation. Interest from both countries has, thus far, been recognised in the field of institutional improvement and cooperation, and opportunities to cooperate are also seen in the field of civil engineering, energy, tourism, information technology, and creative industry.

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INTERVIEW

GROWING COOPERATION TOMUTUAL SATISFACTION

GORAN KNEŽEVIĆ Economy Minister

The political and economic relations between Slovenia and Serbia are getting increasingly better and I do hope that this year's trading between the two countries will follow suit and grow to a billion Euros, as well as that investors would maintain their interest for investing here. I would also like to see more Serbian companies doing business in Slovenia

here is nothing that excites me more than when existing investors in our country re-invest and expand their operations as did Slovennian companies Mercator, Impol Eval, Gorenje and many others – says Economy Minister, Goran Knežević in an interview for Diplomacy&Commerce. “This is the best proof of a stable and predictable business environment and progress we made in economic reforms”, the Minister adds. He also talks about his plans for Serbian industry achieving higher technological progress and the continuation of the EU accession process, namely the negotiations about the chapter 20 which covers industrial policy, SMEs and entrepreneurship.

How would you rate the overall economic relations with Slovenia? − The political relations between our two countries are getting increasingly better and the same can be said for the econom-

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ic ones too. We can see this from the fact that Slovenia is one of the top 10 countries that Serbia exports to. The same applies to import too. Considering that last year's value of the trade between our two coun-

I BELIEVE THAT FREQUENT MEETINGS BETWEEN STATE OFFICIALS AND BUSINESS PEOPLE WILL CREATE ROOM FOR SERBIAN COMPANIES TO EXPAND THEIR OPERATIONS TO SLOVENIA, BOTH AS INVESTORS AND EXPORTERS

tries stood at 870 million EUR, we do hope that this year that amount would reach a billion EUR. Large Slovenian companies like Mercator, Impol Seval, Gorenje and many others have expanded their business here. It is thrilling to see when existing investors re-invest or expand their operations in our country. This is the best possible evidence of the stable and predictable environment for doing business and a result of economic reforms.

What can the two countries do institutionally-wise to facilitate the flow of goods, capital and labour and contribute to an even better cooperation? − The cooperation between our country and Slovenia is exceptionally important for the entire Southeast Europe. The visits of the state and business delegations have become very frequent, and, as a result, we now have the Mixed Economic Cooperation Committee which goal is to further boost

the trade between the two countries and facilitate new investments, as well as to find the way to overcome current challenges. I would like to see more Serbian companies doing business in Slovenia, and follow in the footsteps of ComTrade, Nectar, MK Group and others. Also, it is exceptionally important for us to continue developoing the quality infrastructure system in order to make our companies more competitive in the EU and for them to produce safer and better quality products. Finally, all of this should result in a higher export and better competitiveness. We need to establish a link between science and business because that is the only way for our economies to catch up to technological and scientific progress. We are all very aware of the importance of joint access to third markets and pooling our resources in order to fulfill the strict requirements of the European and global markets.

How important are Slovenian investments for the Serbian production sector, particularly in the light of Serbia’s re-industrialisation plans? − All investments, Slovenian included, bring new technology and know-how with them and this is what we should base our further development on. In the process of negotiating the Chapter 20, which covers industrial policy, SMEs and entrepreneurship, we have to harmonize our approach to development of these areas with the latest trends, principles and the best prac-

WE ARE OPEN TO NEW KNOW-HOW. IT IS VERY VALUABLE WHEN THIS KNOW-HOW COMES FROM SLOVENIA, A COUNTRY THAT WE EXPECT TO MAKE INVESTMENTS AND PROVIDE ASSISTANCE IN DEVELOPING TOURISM INDUSTRY Turkey and other countries have been fully utilized in the economic cooperation between the two countries? − Both countries need to use all available opportunities for development of economic cooperation, especially when we bear in mind the good strategic position of Serbia and Slovenia. For our country, Slovenia is a ticket to the EU while for Slovenia, Serbia is a stepping stone towards third markets because Serbia has custom-free trade agreements with the countries with over 1 billion consumers. We have signed free trade agreements with the U.S., the EU, Russia, Kazakhstan, Belarus, Turkey and the CEFTA and EFTA countries.

How open is Slovenia today to Serbian investments and what are the experi-

cials and business people, and a stronger cooperation between chambers of commerce from the two countries will contribute to the better exchange of information and experiences so that our products and services can be accessible to Slovenians and, by the same token, to other EU countries.

Which measures that your Ministry implements are considered important for boosting foreign investments and improving the business climate? − It is important that we continue with incentives policy. We also need new capital, new know-how and new technology. We consider every new job created as success for us. At the same time, we consider our efforts on countering shadow economy as exceptionally important which is the reason why we declared 2017 and 2018 as the years of combating shadow economy. As one of the measures on reducing the administrative and tax burdens on businesses, we have been diligently working on making an inventory of all tax and non-tax levies, as well as all procedures with the aim of having a systemic approach to reducing red tape for businesses in this country. The joint effort of the entire government has crucial importance in all of this.

How much of Slovenia's assistance in developing tourism industry did Serbia actually use and how much potential there is for further development in this segment? − As I said earlier, it is important that we

THE COOPERATION BETWEEN OUR COUNTRY AND SLOVENIA IS EXCEPTIONALLY IMPORTANT FOR THE ENTIRE SOUTHEAST EUROPE tice cases in the EU. Thanks to the support from the World Bank, we have started reviewing the existing Strategy for Industrial Development.

Do you think that the benefits of Serbia’s free trade agreement with Russia,

ences of the Serbian business people there following some positive investment examples from last year? − There is room for Serbian companies with substantial investment potential to expand their business to Slovenia too. We believe that frequent meetings between state offi-

remain open to new know-how. It is very valuable when this know-how comes from Slovenia, a country that we have had an excellent cooperation with. We do expect investments to happen, as well as for the Slovenian side to help us with developing tourism industry, especially the spa segment.

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H.E. VLADIMIR GASPARIČ

INTERVIEW

NEW CLOSENES OF OLD FRIENDS

Slovenian Ambassador to Serbia

Despite being a relatively small country, in the last quarter of a century of its independence, Slovenia has managed to conquer both European and world markets, which fills me with a sense of pride and self-confidence. At the same time, I am looking forward to Serbia and Slovenia boosting their mutual relations or, in the words of our Prime Minister Miro Cerar, “to the new road with old friends”

he celebration of the 25th anniversary of Slovenian independence and the recent joint session of the governments of Slovenia and Serbia provide ample reason for us to talk to the Slovenian Ambassador to Serbia, H.E. Vladimir Gasparič, about his views regarding Slovenian membership in the EU, the challenges brought about by the migrant crisis and Brexit, and their effect on the future of the European concept, as well as relations between our two countries in the areas of security, economics and culture. The recent joint government session, held in Belgrade on 24th October, covered many areas of cooperation between the two countries – from economy and e-governance to tourism, agriculture and environmental protection. There was also discussion of current issues, like the migrant crisis, which the two countries have been cooperating on closely. On this occasion, the representatives of the two governments among others signed a new cultural cooperation programme covering the period from 2017 to 2021.

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Slovenia celebrates 25th years of independent statehood this year. What sentiments do you have about the former Yugoslavia and what are the biggest benefits that independence has brought to Slovenia? − A quarter of a century of Slovenian statehood is an exceptionally important anniversary for all of our embassies around the world, including in Belgrade, which we try to celebrate in an appropriate way. For me, 25 years represents the

FOR SLOVENIA, ENLARGEMENT IN THE REGION IS OF STRATEGIC IMPORTANCE, BECAUSE WE WANT TO SHARE THE SAME CORE EU VALUES WITH OUR SOUTHERN NEIGHBOURS

road from uncertainty, following the disintegration of Yugoslavia, to investing a lot of effort into not allowing the once most developed republic in the former Yugoslavia to turn into a European problem and to try to survive this shock (primarily in an economic sense). At the very beginning we were often told that the small country of Slovenia, which had been traditionally tied to the Yugoslav market, would not be able to survive as an independent country. We proved otherwise and replaced the Yugoslav market with the European and global markets. Of course, this wasn’t easy and it did not happen overnight. I feel pride and self-confidence when I think about that, because I was personally involved in many of these developments – since I was busy trying to help Slovenian companies break onto the markets of the Far East, first as a businessman and later as a diplomat. As far as my sentiments about our former common country go, the feelings are mixed. It is quite worrying that even 25 years

after we reached the succession agreement, we have failed to honour what we signed, considering that we are only half way there. Of course, this does not only apply to relations between Serbia and Slovenia, but also to succession issues with all five of the other former Yugoslav republics.

Speaking from the standpoint of one of the newest EU members, what is your view of the recent talks about the destiny and formation of the EU, con-

these problems together. I am confident that the many problems that the EU is facing will be resolved in time and that we will manage to preserve our family. The alternative scenario is so bad that I don’t even want to think about it. I have to underline that Slovenia has been very active in searching for solutions, advice and a way out of this situation, despite the fact that we are a very young EU member and that our population is only two million.

like other countries, highly appreciates the way in which Serbia has been dealing with the migrant crisis. We spoke a lot about regional stability, migration, the EU negotiation process and Slovenia’s assistance to Serbia on its path toward EU-related reforms during our third joint government session in Belgrade on 24th October 2016. We have managed to understand each other more deeply and have identified several areas where we can use synergy. As Prime

THE EU IS STILL VERY VIGILANT AND SUPPORTIVE REGARDING THE PROGRESS MADE BY COUNTRIES THAT ARE ASPIRING TO BECOME EU MEMBERS sidering that the talks are not really going well? − When we became an EU member in 2004, we were naturally thrilled and full of enthusiasm. Truth be told, the EU was also very different back then. However, even at that time some of my colleagues from the countries that had joined the EU many years before Slovenia warned me that the EU was not always big, happy family. We fully understand that now, but we are nevertheless still a FAMILY. I would like to say that every family has its own problems, even the happiest of families, and that the most important thing in the end is to solve

There have been divergent tones in the EU and our neighbouring countries regarding ways of successfully dealing with the migrant crisis. What are your expectations regarding this issue and have our two countries continued to cooperate in this respect? − Slovenia is working on softening these divergent tones and is very active in giving concrete suggestions regarding the overcoming of the migrant crisis. We have very close cooperation with your Interior Ministry, the police and other relevant bodies, and we exchange information on a daily basis. I would like to underline that Slovenia, just

Minister Cerar said, “We are on a new road with old friends”.

What is the probability that the countries of the region, like Serbia, will become EU members following Brexit and given the current situation in the EU? − Brexit was shocking for everybody. Slovenia really hopes EU to be able to learn appropriate lessons from it. Nevertheless, I didn’t notice strong scepticism regarding the enlargement. As you can see, the EU is still very vigilant and supportive regarding the progress made by countries that are

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What were the main items on the agenda of the last joint government session? − The main topics of the last government session, which took place in Belgrade on 24th October, were economy-related – considering that we had many businesspeople accompanying our prime minister and other government ministers at the session. Our focus was on e-governance, tourism, agriculture and environmental protection. Of course, we touched upon other topics too, like migration, regional stability, the EU negotiation process etc. All in all, we agreed that we share many interests and synergies in cooperation. Serbia is an important partner for Slovenia, because Serbia has a key influence on the stability of the region. Serbia is our second biggest investment destination that carries huge potential. Lately, Serbian businesspeople have expressed a strong interest in investing in Slovenia.

The total value of trade between our two countries stands at around a billion euros. Is this good or perhaps still insufficient, considering the estimated potential? aspiring to become EU members and those that are membership candidates. Slovenia also supports and utilises this principle. For us, enlargement in the region is of strategic importance, because we want to share the same core EU values with our southern neighbours.

In which areas has Slovenia been helping Serbia on the country’s road towards the EU? − Slovenia is one of the top EU countries in terms of the number of experts who have been cooperating on different projects pertaining to Serbia’s accession negotiations. We are talking about Slovenian experts who come from different areas that Serbia must reform. We share our best practice cases and experiences with our Serbian counterparts. We have been praised by quite a few people for our participation in this process, particularly in terms of the dedication that Slovenian experts show in helping their peers in Serbia. We perhaps have a slight advantage because we know the language and because we know your mentality and the way you operate, which stems from our common history. We should not forget the traditionally good chemistry between Slovenians and Serbia, which can be felt in all areas of social life.

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I WOULD RATE BILATERAL RELATIONS BETWEEN SERBIA AND SLOVENIA AS BEING VERY GOOD, DIVERSE AND FRIENDLY, WHICH CAN BE SEEN FROM THE MANY VISITS OF OUR TOP OFFICIALS. IN THAT CONTEXT, THE ANNUAL JOINT GOVERNMENT SESSIONS SERVE TO PAVE THE WAY FOR EVEN CLOSER COOPERATION How would you rate overall bilateral relations between the two countries? − I would rate bilateral relations as being very good, diverse and friendly, which can be seen from the many visits of our top officials. In that context, I would also like to mention the annual joint government sessions which include the participation of both prime ministers and representatives of many ministries.

− We think that economic cooperation between our two countries is very good, which doesn't mean that it cannot be further improved and strengthened. There are over 1,500 Slovenian companies (with Slovenians as majority or minority shareholders) in Serbia, which is the highest number of foreign companies among all foreign investors in Serbia. Together, Slovenian companies in Serbia have a total of close to 25,000 employees. In terms of the trade value, Serbia was Slovenia’s tenth most important partner in 2015. We expect trade to grow substantially this year, since there is a long-term growth trend with existing 2016 data showing good export results achieved by Slovenia.

Apart from economic cooperation, Serbia and Slovenia have very strong cultural cooperation. Which cultural programmes and events would you like to highlight? − At the joint government session, we signed a new cultural cooperation programme covering the period from 2017 to 2021. The potential and interest in cooperating are very big. I have been in Belgrade since January this year and I am thrilled about the diversity and charm of Belgrade’s cultural life (theatres, galleries, cultural and historic heritage, people’s kindness and appreciation of Slovenia etc.)

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MARKO ČADEŽ President of the Chamber of Commerce and Industry of Serbia (CCIS)

INTERVIEW More than 250 Serbian and Slovenian businesspeople gathered at a recently held Business Forum Serbia-Slovenia in Belgrade, showing that the possibilities for cooperation have not been exhausted. Furthermore, two countries have never been closer to the implementation of the idea of approaching jointly third markets

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NEW PERSPECTIVES ON COOPERATION

n order to reach new levels of cooperation and investments, small national economies, both those in the European Union, like Slovenia, or in the CEFTA region, like Serbia is, have to eliminate the remaining obstacles and, through various models of cooperation, increase the economic capacity and competitiveness of each of the countries individually, and of the region as a whole. „We have been working hard on that together with the Chamber of Commerce and Industry of Slovenia within the regional Chamber Investment Forum“, says Marko Čadež President of the Chamber of Commerce and Industry of Serbia. We spoke with the CCIS President about the current and future prospects of the collaboration of Serbian and Slovenian businesses.

How do you evaluate the current level of trade between our two countries? − Our countries and economies are naturally oriented to each other, and Slovenia is among top ten foreign trade partners to Serbia. The trade has been growing over the years. Last year, we recorded about 870 million EUR, and in first nine months this year, our commodity trade reached 710 million EUR. If not this year, then next year, our mutual trade might reach a billon EUR. However, I trust that all the possibilities have not been exhausted with that, and that we can do much more. This is confirmed by the mutual interest of our economies, a growing number of participants in our joint events, and more than 250 Serbian and Slovenian businesspeople gathered at a recent-

ly held Forum in Belgrade, and more than 150 bilateral meetings of our companies. This year, Serbia recorded better results at the Slovenian market – 323.6 million EUR of the goods sold in nine months, which is by 14.6 per cent better export performance as compared to the same period previous year. The analyses made by the Chamber of Commerce and Industry of Serbia show that there is room for much higher growth of Serbian export and the total trade. The increase in total trade will be enabled by the current and new Slovenian investors that are welcome to Serbia but, I believe, also by investments of Serbian companies to Slovenia, which were so far few but successful. We wish to overcome the deficit in trade with Slovenia, which has been recorded for 15 years now. In 2015, it stood at 119.2 million EUR. We want to balance our trade on a higher level than today, to sell more finial products on the Slovenian market, to have more SMEs from Serbia in the supply chains of Slovenian companies, to sell and buy more to and from each other, and to link our businesspeople for the purpose of joint production and export to third markets.

To what extent has Slovenia managed to keep the position of one of the leading investors to Serbia, in spite of the current situation?

capital and Slovenian representative offices have been registered in Serbia. Out of that number, about 500 are active. Slovenian businesspeople have recognized Serbia as a desirable business and investment destination, and even when it objectively showed a lot of shortcomings, they recognized its potential and, having participated in privatization of the Serbian economy, and then in implementation of new projects, they started to build their success stories at the Serbian market. Their successful business operations and projects have promoted Serbia as a business destination. In addition, the Slovenian companies like Impol Seval, Gorenje, and Grah Automotive, have been leading exporters from Serbia to Slovenia, but also to other markets, for many years. Gorenje (Valjevo and Stara Pazova) is this year on the list of major Serbian exporters (with 116.2 million EUR worth goods sold abroad in 8 months). Today, Serbia has better investment environment and incentives for investors than ever. I am sure that this will initiate a new wave of Slovenian investors, first of all into those sectors that we have jointly identified as the areas with a high potential for improvement of the cooperation and common projects: agribusiness, ICT, tourism, spa tourism in particular, and green economy, in which Slovenian knowledge transfer is important for us.

common state. That is, along with some other noneconomic reasons that were frequently mentioned, one of the explanations why we have not seen more Serbian investments in Slovenia. In the meantime, Slovenia has opened more to foreign investments, and Serbian companies have increased their capacities to invest beyond the borders of the local market. Let me remind you that at the end of 2007, "ComTrade" bought the Slovenian "Hermes SoftLab", and already in 2011, it opened a new Development Centre, employing in Slovenia today several hundreds of experts in information technologies, mainly young people. In 2011, "Nectar" , Bačka Palanka, became an owner of "Fructal". As of last year, "Kempinski" , in Portorož, has been owned my MK Group, AIK banka purchased a part of Gorenjska banka, and "Delta Holding" started construction of the "InterContinental" Hotel in Ljubljana. In the coming period, it is realistic to expect more Serbian investments in the market of Slovenia. Those who have already invested, have the most positive experiences. In the course of the Slovenia – Serbia Business Forum, Miodrag Kostić, owner of MK Group, who invested 40 million EUR to Slovenia last year, confirmed that he would continue to invest and that there were no obstacles for other companies to come and do the same in the Slovenian market.

Can we expect, after the first bigger Serbian investments on the Slovenian market, some new attempts in that direction?

However, in addition to the investments of Slovenian companies in Serbia and vice versa, I would like to see their joint projects – production cooperation, consortia, joint ventures, which will be the basis for stronger and better relations of our economies and more successful appearance on the international market.

THE TRADE BETWEEN SERBIA AND SLOVENIA HAS BEEN GROWING OVER THE YEARS. HOWEVER, SERBIA HAS YET TO OVERCOME THE DEFICIT IN TRADE WITH SLOVENIA, WHICH HAS BEEN RECORDED FOR 15 YEARS NOW − Although investments into Serbia were modest in last years, Slovenia is still positioned among ten countries – major investors into the Serbian economy. According to the Slovenian sources, too, in the last decade, investments of Slovenian companies to Serbia stood at 1.2 billion. By number of investments – about 400 implemented investment projects in Serbia, Slovenia is ranking just below Italy, Germany, and Austria. Today, about 1,500 companies with the Slovenian

− While Slovenia had a strategic approach to Serbia as an investment destination, while its companies entered our market in the midst of privatization, and started Greenfield projects, Serbian companies almost did not participate in the privatization of companies in the west of our former

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with the Chamber of Commerce and Industry of Slovenia within the regional Chamber Investment Forum.

Taking into account Serbia’s big plans in IT sector and good experience in the cooperation of Slovenian and domestic IT companies, is it possible to expect further improvement of the cooperation in this field?

ing joint production and joint appearance of companies of the two countries and the region on third markets? − We have never been closer to the implementation of that idea. We have become aware that it is important not to confine ourselves to the national framework but to connect with others in terms of infrastructure and business, and to appear in the world and before buyers and investors as the region by presenting joint projects and opportunities. At the same time, the potentials of even our biggest companies are still relatively modest to make them individually serious players in the global market. Only by joint offer can we deal with competition, or win regional or international tenders. As much as it is important for large companies, it is even more important for small and medium-sized companies. The essential issues of the small national economies in the territory of the former Yugoslavia, whether they are in the European Union, like Slovenia, or in the CEFTA region, like

Serbia, are how to eliminate the remaining obstacles in order to develop higher trade and more investments, to create higher forms of cooperation, to associate com-

SLOVENIA’S EXPERIENCE IN THE PROCESS OF DIGITALIZATION OF E-GOVERNMENT, ECONOMY AND THEIR MUTUAL COMMUNICATION IS VERY PRECIOUS FOR SERBIA panies and to jointly appear on third markets and to increase the economic capacity and competitiveness of our countries individually and of the region as a whole. We are working hard on it together

− We may say that Slovenia has always been Serbia’s role model since it was always ahead of others in the former Yugoslavia in many things such as: the development of private sector, small and medium-sized enterprises, at the time when private businesses in Serbia were not favourably regarded; the introduction and development of e-government, when digital transformation was too far from Serbia; its decision to go on the EU’s path at the moment when the policy in the region tackled other issues; the development of tourism that in the previous year recorded 10 million overnight stays and 13% GDP; the awareness of necessary investments in environmental protection. At this moment, Slovenia’s experience in the process of digitalization of e-government, economy and their mutual communication is very precious for Serbia. In the meantime, the fast growing IT sector in Serbia has become stronger, and our companies and experts have gained huge international experience and today they are in a position to cooperate with colleagues abroad on the implementation of the most complex projects and to appear jointly on third markets. Comtrade, as a company operating very successfully in Slovenia, can serve as the best example of it. I am confident that there will be more successful Slovenian-Serbian IT stories in the following period.

THE FAST GROWING IT SECTOR IN SERBIA HAS BECOME STRONGER, AND OUR COMPANIES AND EXPERTS HAVE GAINED HUGE INTERNATIONAL EXPERIENCE 22

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DANIJELA FIŠAKOV

INTERVIEW

SERBIA'S ROAD TOWARDS EUROPE FACILITATES DEEPER COOPERATION

President of Slovenian Business Club

Slovenian companies feel good in Serbia, and the Slovenian Business Club (SBC) replies to inquiries of the companies interested in coming to the Serbian market on a daily basis. The noticeable improvement in the business environment, and particularly in harmonizing legal procedures with those in the EU facilitates a more developed cooperation

hen it comes to the membership size, the SBC is one of the biggest clubs, chambers and associations in Serbia. We believe that this is a result of our honest approach to work, and our commitment to our members and their needs – says the President of the Slovenian Business Club, Danijela Fiškov while talkig about the Club's activities and future plans.

The Slovenian Business Club has continued to grow this year. How many members do you expect to have by the end of 2016? − For the third year running, the Slovenian Business Club has been recording membership growth of at least 10% compared to the last year. Since this goal was already accomplished in the Q3, we expect to have even more members than originally anticipated. We are very pleased to hear from our old members which left the Club a few years ago but have not shut the door completely.

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A sincere approach to work and commitment to our members have always resulted in positive reactions and more members. The SBC has proven itself to be an organization that is not going to run short distance, but rather a marathon. Companies which want to last and which plan their business

FOR THE THIRD YEAR RUNNING, THE SLOVENIAN BUSINESS CLUB HAS BEEN RECORDING MEMBERSHIP GROWTH OF AT LEAST 10% COMPARED TO THE LAST YEAR, AND ARE VERY PLEASED TO HEAR FROM OUR OLD MEMBERS WHO WANT TO REJOIN THE CLUB

operations long-term have recongized this in us and have joined the Club.

How does the SBC management respond to a constant increase in the number of members in terms of expanding its activities? − The most important thing is to listen intently to our members' wishes and to recognize their needs. We try to plan our activities around those needs and wishes. We have companies from across sectors as our members while the diversity and the number of our members corresponds to the number of their needs and demands. More members means better understanding of the reasons for their membership and more effort on the SBC management's part to meet their requirements. I think that everybody who is a member of the SBC deserves to be given some kind of added value. Serious business people don't have time for chit-chat and although we spend time together at relaxed cocktail parties after the official events,

casual exchange of opinions often gives birth to mutually useful ideas or proposals.

What are the most common needs that your members have and how to do you fulfill them? − Different needs of our members dictate the nature of requests they send to the SBC. For instance, some members have to establish a business contact with the other SBC member, or with a representative of a state or local government, or with a member of another foreign or domestic club, chamber or association with which the SBC has an ex-

these core activities. Following an initiative from our members, the first section that we formed was Industry because most of our members come from the industrial sector. Setting up this section proved to be a great move because the companies that are in this section can now exchange information that are of interest to them, do business among each other and help each other. Every year, at the Technology Fair, our Industry Section organizes a panel discussion. The common thread that runs through all of the topics of these discus-

How would you rate the cooperation with the state bodies and other institutions and business associations in Serbia? − Overall, the Slovenian Business Club has had a good cooperation with the Serbian state bodies while ministers, assistant ministers and state secretaries are regular guests at our meetings providing that they find time in their busy schedules. We maintain regular contact and have a close cooperation with the Serbian Chamber of Commerce and other institutions. We also have

WE MAINTAIN REGULAR CONTACT AND HAVE A CLOSE COOPERATION WITH THE SERBIAN CHAMBER OF COMMERCE AND OTHER INSTITUTIONS cellent cooperation and friendly relations. We often help our members by acting on their behalf when they send a legitimate request to state institutions, for example.

Apart from the industrial section, do you have plans for establishing another other sections in the SBC? − A wide range of our members' core activities means that the problems they face are also diverse which prompted us to set up sections in the Club that correspond to

sions is the cooperation between the Slovenian and Serbian economy, while the inividual topics are always quite interesting, fresh and adapted to the current situation. Our members expressing strong interest in getting involved in the work done by the Industry Section and their participation in panel discussions organized by this section have led to an initiative to set up other sections in the SBC too. We are planning to set up a banking-finance section first, followed by a few more.

sincere, friendly, partnership relations with other foreign clubs, chambers and associations in Serbia. Together with these organizations, we have signed an agreement on setting up the Council of Mixed Chambers of Commerce with the goal of further strengthening our cooperation and the communication between state institution and our members. The Council has already forwarded certain initiatives to the minister of finance and the minister of labour, employment, war veteran and social issues.

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Without a doubt, setting up this Council will bring positive effects both in the cooperation between economic associations, and in communication and cooperation with the Serbian state institutions. However, there is often a problem with many state institutions not replying promptly to the inquiries from the business community so business people are left only with an option of sending these inquiries via their associations. The lack of response from the administration slows down and downgrades the economy.

How satisfied are the SBC members with the general economic environment in Serbia and how can Serbia further improve the conditions for doing business? − Generally speaking, Slovenian companies feel good in Serbia which can be seen in the fact that there is a large number of Slovenian companies operating in Serbia. We, in the SBC, regularly receive inquiries about the Serbian market conditions in terms of the arrival of new Slovenian companies here. Basically, our members are satisified with the current business environment. A noticable progress has been made in improving this environment, especially when it comes to harmonizing legal procedures with the European ones. Shadow economy is still a huge problem here and this is somethig that the old / new Serbian government is aware of because it has undertaken measures to counter it. The deeply rooted, widespread corruption is another serious problem. Another important problem for the Slovenian businesses is slow courts which are real bottlenecks in the Serbian legal system. We are often under the impression that certain regulation has been adopted to make life for the business community even harder and it would be really commendable if all political stakeholders would be fully aware of the fact that everybody would prosper if economy and politics started functioning as partners not adversaries.

What has the SBC doing on facilitating more interaction between the Serbian and Slovenian business people and where is the room for further expansion of this cooperation? − The SBC's main mission is to connect business people from the both countries. We are honouring this mission by organizing and co-organizing many diverse events and participating in the events organized by other political and economic stakeholders from our two countries. The last such event was the Slovenia-Serbia Business Forum during which four panel discussions were held on the topics such as potential

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for improving the intergovernmental economic cooperation. Other topics that we covered were tourism, digitalization, agribusiness and environmental protection. Slovenia sharing its experiences from the EU accession negotiations is of great help to Serbia especially because we understand each other so well and because Slovenia can transfer those experiences in a language that Serbia understands. On the other hand, Serbia can offer to Slovenia a good market and good connections to the non-EU countries. I always maintain that Slovenia and Serbia are lucky that they are not neighbours and have no misunderstandings as such.

OUR MEMBERS EXPRESSING STRONG INTEREST IN GETTING INVOLVED IN THE WORK DONE BY THE INDUSTRY SECTION AND THEIR PARTICIPATION IN PANEL DISCUSSIONS ORGANIZED BY THIS SECTION PROMPTED US TO SET UP A BANKING-FINANCE SECTION TOO

Could you tell us something about your cooperation with the Slovenian Embassy and which upcoming joint activities would you like to single out? − As you can presume, the cooperation is excellent. The SBC and the Slovenian Embassy are natural partners. We cooperate and are compatible in all areas. By its very definition, the Embassy promotes a wide range of Slovenian interests in Serbia and mainly deals with strategic policies while the SBC mostly focuses on operational business activities. Of course, we have strong ties and, in most cases, our activities are not this clearly demarcated. The most important thing for both the SBC and the Embassy is to jointly help the Slovenian companies in Serbia and Serbian companies wanting to do business in Slovenia.

Could you tell us something about the SBC's corporate social responsibility? − Although, each individual member of the SBC nurtures social responsibility as one of their primary goals, the SBC itself has undertaken to carry out these activities itself. The Slovenian Business Club has been investing a lot of effort into not only developing business relations and business environment and thus helping its members, but also into giving its contribution to preserving the biggest treasure that a society has – children. The SBC and its members have carried out many activities with children in mind, especially the sick ones and the ones without parental care. The happy smiles on the faces of these children and their carers are the best testament to our activities and our biggest award.

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INTERVIEW

SUCCESSFUL PARTNERSHIPS OPEN UP NEW FIELDS OF COOPERATION

GORAN KRIŽ Minister Plenipotentiary, the Embassy of the Republic of Slovenia in Belgrade

Tourism, cooperation in exporting food products to the countries that Serbia has signed free trade agreements with, and transfer of the Slovenian know-how and experiences in digitalization of public administration, are just some of the potential cooperation areas

he recent joint session of the two governments at which new avenues of cooperation have been established is just one of the many examples of the successful mutual cooperation on all levels – says Goran Križ, Minister Plenipotentiary at the Embassy of the Republic of Slovenia in Belgrade.

How would you rate the overall economic cooperation between Slovenia and Serbia? − I would say that the economic cooperation between Slovenia and Serbia is very good, diverse in a sense of covering all economic branches and involving a very developed trade between the two countries. Serbia is a very important economic partner for Slovenia which, in 2015, was ranked 10th among Slovenia's biggest economic partners with the trade valued at 1.15 billion EUR. In terms of the countries that Slovenia exports the most to, Serbia takes the 8th place. In the last few years, we have recorded growth in trading in services which value, in 2015, amounted to 320 million EUR. It is important to mention that the biggest number of Slovenian companies abroad are located in Serbia. Some estimates say that

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that number is around 1,500 (these are the companies where Slovenian businesses are partial or majority owners). However, I still think that there are many opportunities on both sides to further strenghten the economic cooperation.

How much can the joint sessions of the two goverments enhance the mutual cooperation and what will be the main issues to discuss in the economic portion of the session?

THE BIGGEST NUMBER OF SLOVENIAN COMPANIES ABROAD ARE LOCATED IN SERBIA – SOME ESTIMATES SAY AROUND 1,500. HOWEVER, I STILL THINK THAT THERE ARE MANY OPPORTUNITIES ON BOTH SIDES TO FURTHER THE ECONOMIC COOPERATION

− The intergovernmental sessions are a good instrument and an opportunity for the representatives of the governments and line ministries to conduct a joint overview of the current bilateral cooperation, identify unresolved issues, propose solutions for their resolution and give suggestions for further development of the joint cooperation. In terms of discussing the strengthening of the existing economic cooperation, tourism was one of the focal points because the session participants were eager to find ways to present joint products for third markets. Another hot topic is agriculture / food processing industry with an emphasis on opportunities to export to the countries with which Serbia has concluded free trade agreements, the transfer of the Slovenian know-how and experiences in digitalization of public administration, and environmental protection projects.

Are there any unresolved issues between the two countries in the economic segment, and, if there are, how are they being dealt with? − Serbia is an important economic partner to Slovenia so it is natural that some issues pop up in the bilateral cooperation. These

issues are also promptly dealt with. The most important thing is for the two sides to be open and willing to search for the appropriate solutions.

It is a well-known fact that Serbia highly values the transfer of the Slovenian know-how about the European integration process, especially when it comes to its economic segment. In which areas is this cooperation the most developed? − Slovenia is very open and sincere in supporting Serbia on its way to becoming an EU member because we want to see Serbia implementing the EU norms and standards as soon aspossible which would be economically beneficial both for the Serbian companies and Slovenian companies doing business in Serbia. Hence, there have been talks about transferring the Slovenian know-how and experiences in digitalization of public administration and implementation of enviromental protection projects.

How would you rate the cooperation between the Slovenian Embassy, on one side, and the Serbian government and local authorities, on the other, in terms of improving the environment for further investments by Slovenian companies? − The cooperation between the Slovenian Embassy and the Serbian government and local authorities is exemplary and strong because it is of mutual benefit. We can say

THE COOPERATION BETWEEN THE SLOVENIAN EMBASSY AND THE SERBIAN GOVERNMENT AND LOCAL AUTHORITIES IS EXEMPLARY AND STRONG BECAUSE IT IS OF MUTUAL BENEFIT Serbia and are thought to be good employers. The Embassy has been cooperating with the relevant Serbian institutions on helping Slovenian companies in acquiring adequate information and establishing contacts with local communities. By doing so, the Embassy is fulfilling one of its main missions. To that end, I would like to mention the close cooperation with the Slovenian Business Club in Belgrade which has almost 150 members. On the other hand, it gives us great pleasure to see that Serbian investments in Slovenia have been growing lately.

Which economic branches offer new opportunities for investing that are currently untapped? − The existing Slovenian investments have been very diverse and spread across almost

How can we further boost the trade between the two countries? − Despite the very strong existing economic cooperation there are still reserves particularly in terms of joint access to third markets like China, the Russian Federation, Iran and others. On the other hand, we need new, innovative approaches to further increase the trading between the countries.

Could you tell us about the cooperation between Kragujevac and the Slovenian Development Assistance in a bit more detail? Are you planning on implementing more of such projects? − The said cooperation was a result of an initiative from the Slovenian companies (Gorenje Alatnica, Fori, Zastava Tapacirnica and Unior) which operate in the Kragujevac industrial zone and that have been dealing with the problems stemming from the inappropriate transport infrastructure, or rather the lack of appropriate access routes to the mentioned companies for quite some time now. The Embassy suggested to the town authorities to have a joint meeting with the goal of finding a solution to the problems that the Slovenian companies have been facing. We have reached an agreement with Kragujevac's authorities that together, and with the help of the Slovenian development assistance, we are going to resolve the issue of transport infrastructure. I have mention

THERE ARE GREAT INVESTMENT OPPORTUNTIES IN FOOD PROCESSING INDUSTRY, ENVIRONMENTAL PROTECTION, IT AND DIGITALIZATION OF PUBLIC ADMINISTRATION, AND ENERGY that both sides are open to talks and exchanging information about investing. To illustrate this, I would just like to mention that, since 2003, Serbia has been ranked second when it comes to the volume of the Slovenian FDIs here which amounted to close to a billion EUR. Slovenian companies employ around 25.000 persons in Serbia. Also, they have a very good reputation in

all economic branches. I think that tourism is definitely an area with many new investment opportunities like investing in Serbian spas and having joint access to faraway markets (e.g. Asian countries). Furthermore, there are great investment opportunties in food processing industry, environmental protection, IT and digitalization of public administration, energy etc.

that, during the first year of my term in Serbia, we signed an agreement on constructing a waste water filtering system in Čajetina in April 2016, with Slovenia donating 1.5 million EUR towards the cause. I do hope that there will be more of such projects in the future which only validate the honest, partnership relations between the two countries.

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CORP ORAT E

BRANKO GREGANOVIĆ Chairman of Executive Board of NLB Bank Belgrade

We are Building

BRIDGES OF COOPERATION The good economic cooperation between Serbia and Slovenia is an excellent opportunity for NLB Bank, as is the need of business communities from the two countries to have adequate support in implementing their business plans

ollowing the successful year 2015, this year has been all about the big growth for NLB Bank. “We have confirmed that we are back on the market and that we have established a business model that is sustainable in the long run”, says Branko Greganović, Chairman of the Executive Board of NLB Bank Belgrade. Serbia is one of the important markets for NLB Group especially in the context of the cooperation between business people from the two countries.

Which factors have contributed to Serbia becoming one of your strategic markets in the last few years?  NLB Group is the only banking group with the headquarters in this region and which operates on the markets of the ex-Yugoslav republics so Serbia’s importance for NLB should not come as a surprise. The good economic cooperation between Serbia and Slovenia and the need of business communities from both countries to have adequate support in implementing their business plans create great opportunities for us. The close cooperation between members of our group is beneficial to all of our clients whose personal or business plans are related to the countries in the region.

How do you interpret the fact that banks have become hyper liquid? Is that good, or does it just show that there are no quality borrowers?  I wouldn’t say that there are no quality borrowers because Serbia has good companies, small and medium enterprises and small business owners. Although the amounts of their individual investments are relatively small, cumulatively speaking they are quite big and such investments make 90% of any economy. Hence, their trust in Serbia’s good future and implementation of investments in this segment are the most important factors in economic and lending growth.

Do you think that 2016 will be even more successful for you than 2015?

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 We have undergone substantial changes in the past period – we have improved our operations in all segments and increased the bank’s potential through staffing, process and organizational changes. Following the successful year 2015, this year has been all about substantial growth for us. We have confirmed that we are back on the market and that we have established a business model that is sustainable in the long run. In the first half of the year, we generated the profit in the amount of 2.3 million EUR and this successful trend spilled over into the second half too. However, our biggest success is the growing trust of

Our biggest success is the growing trust of our clients and their increased satisfaction with the cooperation with our bank our clients and their increased satisfaction with the cooperation with our bank. This is our most important goal and the most important prerequisite for successful operations.

How much does the privatization of your parent bank affect your business plans for the next year and what are your priorities on the Serbian market in 2017?  The privatization process is important for us but it doesn’t directly affect the implementation of our plans. We remain focused on our clients, we are continuing to develop our products and services, which are both innovative and simple to use, as well as develop new communication channels, primarily contemporary, digital ones, with the aim of increasing the satisfaction of our clients and being their reliable partner in personal and business plans.

CEO of Nectar Group

CORP ORAT E

MIHAILO JANKOVIC

Regional Synergy

AS PASSPORT TO GLOBAL MARKET

As a company that has a vertical integration and fully completed production process, from its own plantation to the final product, we carefully select the highest quality of raw materials and we tend to follow the trends of growing concerns about the health and eating habits by creating a special portfolio of organic products

“B

y acquiring Fructal, Nectar has made an strategic business move which solidified the company’s position in the region and created a base for accessing the EU markets. Today, Nectar is present in Asia and Africa and it is our wish to conquer overseas markets like Australia,Middle east”, says Mihailo Jankovic, CEO of Nectar Group.

alongside with investing in quality and unique communication with our consumers. Nectar Group is one big multi-cultural family that has over 1,200 employees and an annual turnover of over 120 million EUR. Further expansion is definitely our aim. Although, we wouldn’t rule out the possibility of more acquisitions, our plans are mainly focused on expanding our opera-

What operational challenges did you experience following your evolution into a regional company and do you have any plans for more acquisitions in the region? How important was for Nectar to have Fructal in its portfolio and, speaking from the current perspective, what is your view of the acquistion?

The acquisition of Fructal was a huge strategic step forward and the real example of creating synergy between the well-known quality of the Nectar Company and Fructal’s long tradition

— Nectar has been the leading regional company for many years and, following the acquisition of Slovenia-based Fructal, we overstepped our regional boundaries to become an important market player in the EU. The acquisition of Fructal was a huge strategic step forward and the real example of creating synergy between the well-known quality of the Nectar Company and Fructal’s long tradition. All of this combined has made us into the leading company in fruit processing and production of fruit juice in Southeast Europe. As a family-run business which has been successful for almost 20 years, acquisitions were one of the main driving forces behind the company’s growth and development,

tions to include new markets and those outside the EU, as well as applying many innovations in developing our portfolio of organic produce and creating brand new product categories.

Today, you export to Asia and Africa, as well as to the countries of the former Soviet Union. What are your plans for the export segment?

— The value of the Nectar Group's annual export is over 36 million EUR outside domicile markets, and following our expansion to Asia and Africa, we now want to conquer overseas markets like and Australia,Middle East etc. The former Soviet Union is also a very interesting market for our children proucts which are sold under the brand name of Frutek. Recently, we came back from the biggest international food fair SIAL in Paris where we had a remarkable presentation, established very important contacts, and conducted talks about increasing our export and conquering new markets with the complete and very diverse Nectar and Fructal's portfolios while being mindful of the needs of individual markets.

How important are innovations for your company? — To be the market leader is not only privilege but an obligation to constantly follow in the latest trends, listen closely to your consumers’ needs and move the business boundaries by creating and presenting new product categories. We pay special attention to innovations and they are the driving force behind our development. We are very proud to say that, this autumn, we launched a brand new product category on the Serbian and regional markets called Nectar Milky Juice. This is a range of refreshing drinks with innovative flavours and added milk that are a fusion of the best qualities of fruit juice and milk. This is a brand new experience for our consumers.

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CORP ORAT E

JELENA GALIĆ Chairman of the Executive Board

Safe and Sound Business,

A FORMULA FOR GROWTH AIK Banka is among the top five banks in the banking sector in Serbia with good prospects to become one of the three leading banks at the local market. Furthermore, the bank is looking forward to prove its expertise in the Slovenian banking sector too, which it sees as one of its priority markets due to its stability and strong potentials

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undamental advantages of AIK Banka are complete ownership structure and strong equity basis, which give confidence to its partners and deponents. Well known for its policy of safe steps, the bank and MK Group are looking forward to fully use their potentials at the regional markets only if they are welcome, says Jelena Galić, Predsednik Izvršnog Odbora. The bank continuously posts sound and above the average results in the banking industry, and believes that it might become one of the three leading banks at the domestic market. “Compared to actual business trends in banking industry and results gained in banking sector in the previous period, AIK Banka achieved business performances which are significantly above the average for the industry”, says Galic. In the first three quarters of this year the Bank achieved return on equity was over 10%, and return on assets was over 3%. In this interview, we spoke with Ms Galić about the business performance of AIK banka at the local market, its brave steps into the field of products related to mobile and electronic banking, and about the plans in the Slovenian market, where the bank recently became the second biggest shareholder of Gorenjska Banka.

our priority markets, not only its stability, developmental potentials and investment possibilities, which are opening up at this market, but also for to strong economy and high level of corporative culture. Investment in Gorenjska Banka follows our developmental strategy, and we proved that our plans with Gorenjska Banka are serious with capitalization in the amount of € 12 million at the beginning of this year. AIK Banka is at present the second biggest shareholder of Gorenjska Banka. I think that it is in the high-

MK Group purchased one of the most exclusive hotels in Portorož, Hotel Kempinski Palace, and announced the investment into the banking sector in Slovenia. Can you give us more details about these plans?

est interest of Gorenjska banka to gain a strategic investor with clear objectives for growth and development of the Bank, accompanied with business capacity and strong equity basis to achieve this.

— Part of our strategy is certainly an expansion outside of Serbia. Slovenia was among

According to the business results in the first three quarters, AIK Banka had pos-

I think that it is in the highest interest of Gorenjska banka to gain a strategic investor with clear objectives for growth and development of the Bank, accompanied with business capacity to achieve this

itive balance. What are your expectations for this and the following year? — AIK Banka is among the top five banks in the banking sector in Serbia. Compared to actual business trends in banking industry and results gained in banking sector in the previous period, AIK Banka achieved business performances which are significantly above the average for the industry. In the first three quarters of this year the achieved return on equity was over 10%, and return on assets was over 3%. Bank's objective is to continue this trend, to achieve position among the three leading banks at the local market, not only by the key financial parameters, but also by the overall business quality. As a universal bank, we are determined to be engaged in all client segments, emphasizing efficacy and innovation in providing banking services to our clients. AIK Banka is one of the leaders in the field of products related to mobile and electronic banking, which is trend that all the banks are heading to, and those who start first have greater chance to achieve better position. Digital banking provides us with good and efficient approach to physical persons, small and medium size companies, and cooperation with commercial sector remained our specific characteristic which we consider to be a comparative advantage.

Recently, AIK Banka is no longer in Belex 15 index, after you acquired over 98% of total number of shares. What does this completion of the ownership status in the Bank? — Completion of ownership status may only contribute to further strengthening of busi-

AIK Banka achieved business performances which are significantly above the average for the industry. In the first three quarters of this year the achieved return on equity was over 10%, and return on assets was over 3%

equity basis, which give confidence to our partners, and first of all, to our deponents, make them feel safe and in banking, safety and trust are the most important. One of the advantages is certainly the fact that we are more efficient than the others, since we do not depend on "central office" and we don't have to wait for approvals. All the decisions are made by the departments inside the bank. The fact that total equity of the Banks exceeds € 470 million is also to our advantage, and the Bank is at the same time leader by in adequacy of the capital of the banking system of Serbia, at the level of 34,6%.

Apart from Serbia and Slovenia, are you planning an acquisition in banking sector in other countries of the region? ness performances of the Bank. When the bank grows without a "mother", relying on its own capital, it is an additional strength, since bigger attention is paid to the business, it is possible to make more efficient decision and endeavour to be more transparent since trust is if the greatest importance in banking. AIK Banka achieves everything with its own capital, as the biggest local bank in private ownership. Our fundamental advantages are complete ownership structure and strong

— It is well known that AIK Baka and MK Group follow the strategy of safe steps. We have to be sure why have we decided to make specific investment, what would it bring to the Group and how can we, with our synergy, contribute to the further development of the bank or the company we invested in. Further expansion in the region, will predominantly depend on business capabilities of the specific market, but also from the fact if we are welcome or not.

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ECONOMIC COOPERATION

GROWING TRADE AND DECLINING DEFICIT ON SERBIAN SIDE

LJUBLJANA'S DRAGON BRIDGE

Serbia and Slovenia have been recording positive results in mutual trading while the trade deficit will probably continue declining judging by the trends from the first half of this year

ccording to the data collated by the Serbian Statistical Office, the total trading between Serbia and Slovenia in the period from January to July 2016 was valued at 623.8 million EUR which is a 9.9% hike relative to the same period in 2015.

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Serbia exported 281.7 million EUR worth of goods and services to Slovenia which is a 12.4% increase compared to 2015. Serbiaâ&#x20AC;&#x2122;s import from Slovenia grew by 8% relative

IN OCTOBER THIS YEAR, THE GOVERNMENTS OF SERBIA AND SLOVENIA ARE GOING TO HOLD A JOINT SESSION, AS WELL AS A BUSINESS FORUM WITH THE COMPANIES FROM BOTH COUNTRIES PARTICIPATING

to the same period last year, and it amounted to 342.1 million EUR. The trade deficit stood at 60.4 million EUR. In 2015, the total trade between the two countries amounted to 869.4 million EUR which is an increase of 11.9% compared to 2014. Serbia exported 375.1 million EUR worth of goods and services to Slovenia, a 6.1% jump relative to 2014. Our import also grew by 16.8% in relation to the same period in 2014 and it amounted to 494.3 million EUR. The trade deficit amounted to 119.2 million EUR. According to the statistical trade classification and the data collated by the Republic of Serbia Customs Administration, the following products dominated Serbian export to Slovenia in the period from January to June 2016: electricity, miscellaneous parts and accessories for motor ve-

hicles, rectangular aluminum alloy products, footwear, parts for seats made from other materials, parts for rotating stands, parts for hand tools, electromechanical devices, fridge-freezers, and ignition wiring sets. Serbia mostly imported the following products from Slovenia: medication, parts for cooling devices, machine parts, car body parts, electricity, washing machines over 6kg capacity, paper rolls, parts for seats made of other materials, automobiles (1.5003.000cc), and aluminium waste and scrap. The data collated by the National Bank of Serbia (NBS) in line with the methodology that was used until the end of 2013 shows that the total net investments by Slovenian residents in Serbia, in the period from 2007 to 2013, amounted to 355.07 million EUR which puts Slovenia in the seventh place on the list of the biggest foreign investors in Serbia in the aforementioned period. In 2014, the NBS started implementing a different FDI data collection methodology in line with the IMF and EU guidelines. The data collated in this way shows that the net investments by Slovenian residents in Serbia, in the period from 2014 to 31st March, 2016, stood at 75.99 million EUR which puts Slovenia in the 15th place on the list of the biggest foreign investors in Serbia in the said period. Since companies in Serbia are not legally obligated to report about their investments there is no official data about FDIs made by individual foreign companies, but the investments of the following Slovenian companies could be considered the most important â&#x20AC;&#x201C; Mercator (500 million EUR, 4,701 employees), Cimos (117 million EUR, 2,260 employees), Merkur (110 million EUR, 191

THE SERBIAN SIDE PRESENTED THE BELGRADE WATERFRONT PROJECT, THE PRIVATIZATION PROGRAMME AND OTHER INVESTMENT OPPORTUNITIES TO THE SLOVENIAN BUSINESS COMMUNITY employees), Impol Seval (70 million EUR, 722 employees), Gorenje (63 million EUR, 1,821 employees), NLB Bank (55 million EUR, 588 employees), Don Don / KJK Serbian Holdings (36 million EUR, 1,266 employees), Nova Kreditna Banka Maribor / KBM Banka (30 million EUR, 366 employees), Maksim BG (21 million EUR, 73 employees), and Triglav (17.5 million, 455 employees). The mentioned data has been collated on the basis of a survey conducted by RAS and includes both the implemented and planned investments. The data about the number of employees was taken from the Business Registers Agencyâ&#x20AC;&#x2122;s reports for 2013. In September 2014, Croatian company Agrokor acquired a 80.75% share in the Mercator retail chain. According to the official data from the Bank of Slovenia, Serbian FDIs in Slovenia amounted to 89 million EUR in the period from 1993 to 31st March, 2016. In October this year, the governments of Serbia and Slovenia are going to hold a joint

session, as well as a business forum with the companies from both countries participating. The last governmental session and the business forum took place in Ljubljana, in February 2015. Back then, the two countries agreed that the best segments for the Serbian and Slovenian companies to cooperate in were construction, energy, tourism, agriculture, food and wood processing industry. Also, it was noted that Slovenian companies in Serbia employed close to 35,000 workers and export quality products, while the Serbian IT companies, along with their daughter companies in Slovenia, were doing really well in the most demanding of markets like the Great Britain. Furthemore, the two sides discussed the transfer of the experiences and the knowhow of Slovenian companies under the EU accession framework, as well as talked about the potential for good business cooperation, boosting the economic position of Serbia and the joint access to third markets in the countries which Serbia had concluded free trade agreements with like Russia, Kazakhstan and Belarus. Another topic discussed at the business forum was Serbian companies operating on the Slovenian market and Serbian products that could be appealing to the Slovenian consumers. Over 140 Slovenian and 60 Serbian companies participated in the business forum held at the Slovenian Chamber of Commerce. They were also bilateral meetings of companies engaged in construction, energy, tourims, IT, and creative industries. Furthemore, the Serbian side presented the Belgrade Waterfront Project, the privatization programme and other investment opportunities to the Slovenian business community.

IN FEBRUARY 2015, THE TWO COUNTRIES AGREED THAT THE BEST SEGMENTS FOR THE SERBIAN AND SLOVENIAN COMPANIES TO COOPERATE IN WERE CONSTRUCTION, ENERGY, TOURISM, AGRICULTURE, FOOD AND WOOD PROCESSING INDUSTRY SLOVENIA 2016

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ECONOMY

ALIVE AND KICKING — Text —

ŽIKICA MILOŠEVIĆ

Ljubljana Castle 36

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Kranjska Gora

Although it has always been small, it has always been industrious. The resilience of the Slovenian people was depicted in the novel “Samonikli” (Self-sprouted) and continues to this day. A stubborn desire to survive under natural and political pressures has made this Middle European nation one of the most prosperous in the world

WHAT A MISJUDGEMENT! Slovenia had a rough start, just like pretty much every country in the Alpine-Adriatic region. In earlier times, with no tourism in sight, the mountains and coastline were not highly appreciated, not even with all of their fish and cheese. Jovan Dučić, for instance, with all his wit, failed to grasp the importance of the coastline. He objected to King Alexander I for taking over the Adriatic coast, deeming it “vast and barren”, filled with poor fishermen. Serbian politicians often mocked King Nicholas II of Montenegro for being a “king of hungry mounts”. English writers wrote that “the nicest view in Scotland is a road to England”.

SLOVENIA TODAY IS A DEVELOPED COUNTRY THAT ENJOYS PROSPERITY AND STABILITY, AS WELL AS GDP PER CAPITA AT 83% OF THE EU28 AVERAGE

trade accelerated. Ports are important. The Port of Koper is now among the busiest in the region, with millions of containers circulating, as a hub for many countries in the interior. Second, there is a ski craze, dear folks. There is a wish for clean air, for mountain getaways, far from the stench of smoky cities and industry. And, last but not least, there is a craving for sunshine by the sea. And Slovenia has it all, and the Slovenians formed their character against the hardest possible background, becoming tough and diligent people with a strong work ethic. They might still enjoy crazy Serbian parties or Croatian humour, but the others still wants high-class Slovenian goods.

One of the biggest

EXPORTERS IN SERBIA

P Gorenje Group is one of the leading manufacturers of household appliances in Europe with a history reaching back more than 66 years

resent in more than 90 countries worldwide, the brand has become a synonym for technologically advanced, innovative, energy-efficient and beautifully designed household appliances that provide a simple, intuitive user experience and make users’ lives easier. The Group has focused 24% of its’ appliance production in Serbia, where it employs 2500 people and has three factories for the production of household appliances, and one, which manufactures tools for the automotive industry and household

appliances, in which it has invested about 100 million euros. As a result, in 2015 the company found itself on the list of the biggest exporters in Serbia, with an export value of 140 million euros. Gorenje in Serbia is not only a manufacturer of appliances and an employer, but also a "buyer". A widely developed supply chain and further business development have opened up numerous job positions, not only within the factories, where the number of employees has tripled since they were opened, but also with suppliers all over Serbia.

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COR P OR AT E

GORENJE GROUP

Obviously, the mountains and the coast of Alba were not appreciated. Well, what a misjudgement! First of all, times change; sea

Ljubljana, BTC city

DEVELOPED; 83% DEVELOPED In short, Slovenia today is a developed country that enjoys prosperity and stability, as well as GDP per capita at 83% of the EU28 average. That is much better, for instance, than Romania or Bulgaria. It was the first new member of the European Union to adopt the euro as a currency in January 2007 and it has been a member of the Organisation for Economic Co-operation and Development since 2010. Slovenia has a highly educated workforce, well-developed infrastructure, and is situated at a major transport intersection. Just like Belgium, but different: it is bordered by a giant named Italy, is close to another giant, Germany, and the prosperous Austria, while it is also on the main road leading to Croatia, Serbia, Bulgaria, Greece and, further on, to Turkey and the Middle East. On the other hand, the level of foreign direct investment is among the lowest and the Slovenian economy has been damaged severely by the European economic crisis, which started in the late 2000s. Almost two-thirds of the working population is employed in services, which shows the rapid shift towards the tertiary sector after the fall of socialism.

SMALL IS NOT NECESSARILY WEAK Although it comprised only about an eleventh of Yugoslavia's total population, and eight per cent of its territory, it was the most productive of the Yugoslav republics, accounting for a fifth of its total GDP and a third of exports. As such, it had an already relatively prosperous economy and strong market ties to the West when it gained independence in 1991. Unfortunately, the

major economic ties were in the former Yugoslavia, which had been torn by war for many years, and in the Eastern European markets, so Slovenia was badly damaged by the incapacity of the former Socialist countries to consume Slovenian goods, and

THE SLOVENIANS FORMED THEIR CHARACTER AGAINST THE HARDEST POSSIBLE BACKGROUND, BECOMING TOUGH AND INDUSTRIOUS, WITH A STRONG WORK ETHIC

the industry gradually faded away in some sectors. Since that time, it has vigorously pursued the diversification of its trade with the West and integration into Western and transatlantic institutions. Slovenia is a founding member of the World Trade Organisation; it joined CEFTA in 1996 and became a member of the European Union on 1st May 2004. The Economic Crisis of 2008 hit Slovenia hard, as its major partner in the meantime had become the ill-fated Eurozone, which is currently struggling in some areas. Fiscal austerity led to a fall in domestic expenditure, while some Slovenians are nostalgic for their own currency, the tolar, and despise the euro. Nevertheless, they are better off now, with prospects of stability. And that is no small thing in a shaky world like this one.

THE PORT OF KOPER IS NOW AMONG THE BUSIEST IN THE REGION, WITH MILLIONS OF CONTAINERS CIRCULATING, AS A HUB FOR MANY COUNTRIES IN THE INTERIOR Port of Coper 38

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CEO of Heror Media Pont

CORP ORAT E

NATAŠA HEROR

Niche that Should

BE APPRECIATED BY ADVERTISERS The potential that the media in the languages of national minorities have is quite high and this is someting that the media themselves, the general public and the advertising market should be aware of

he 5th Regional Conference took place in Novi Sad on 10th November. We asked the CEO of Heror Media Point, Nataša Heror what was the rationale behind launching this regional event five years ago? “At that time, I was already extensively cooperating with the national minority media and it became clear to me that we should have a platform that would communicate the topics about the potential of this media niche year on year. I was also convinced that the conference would open

doors to big companies / advertisers which will, in time, recognize and understand the value in communicating with minority communities”, Ms. Heror says.

advertising market should be aware of.

What was the main reason for this event managing to survive in these difficult times?

Speaking from experience, could you tell us what is the current position of the national minority media and what kind of attitude do the general public and advertisers have towards these media?

— The potential that the media in the languages of national minorities have is quite high and the format used in this part of the world is very good. This is something that the media themselves, the general public and the

— In my opinion, a proactive attitude is the key to drawing attention to yourself and attracting investments in this media niche. I am confident that advertisers will appreciate a return on their investments.

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ACTIVITIES OF THE SLOVENIAN BUSINESS CLUB

NUMEROUS REASONS FOR BECOMING CLUB’S MEMBER When we look at the list of activities that the Slovenian Business Club (SBC) organized for its members, it becomes clear why the Club’s membership has been growing fast in the last couple of years. From useful business advice to finding new partners, the SBC members had very good reasons for participating in the Club’s activities

I Working meeting, Finance Minister Dušan Vujović

Working breakfast, Doba faculty Club’s summer cocktail party

In 2016, the Slovenian Business Club organized 22 events free of charge for its members. The events ranged from meeting top officials to meeting the representatives of the Serbian and Slovenian state administration. Most of the events were educational and informative, but also there have been quite a few opportunities for the members to meet in a less formal atmosphere. The Club organized overa dozen working brunches at which members heard a more detailed interpretation of the current legislation regulating various areas, as well as receive answers and suggestions on how to solve problems that they have encountered in their business. The panel discussion ’The Power of New Ideas’, which took place at the Technology Fair, with over 100 guests. Also this year, the Club organized two speed business meetings in cooperation with other chambers of commerce. The Club also demonstrated a great sense for social responsibility by organizing the “Raise a Smile” charity campaign which took place in May this year. Together with its members, the Club raised over a million Dinars for the children in the children’s shelter in Belgrade. The Club has 142 members, out of which 70% are Slovenian companies, and the rest are mostly Serbian with several German, Italian and Austrian companies too. The Club members did not have to pay to participate in these events (apart from speed business meetings).

OCTOBER The Slovenian Business Club hoste a working meeting titled „Minister talks to business people“. The Serbian Finance Minister Dr Dusan Vujovic was the guest of honour at the meeting and, on the occasion, invited Slovenian investors to increase their investments in Serbia. The meeting was attended by over 60 Club members who had an opportunity to pose questions to the Minister. The Minister also invited all the members that did not have their questions

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answered to contact his cabinet and asked for their help in creating an even better environment for doing business.

SEPTEMBER In late September, an SBC member – the TSG Law Firm - hosted a working lunch on behalf of the Club at which the members were given an opportunity to find out more about the legal and labour status of directors and company executives in the Republic of Srpska, as well as the legal and labour status of foreigners in the Republic Serbia and sending the workers from the Republic of Srpska to work abroad. Solicitor Ivana Stefanovic spoke about these topics at the lunch. The representatives of the Ministry of Labour, War Veteran and Social issues were also there to give information and advice, as did the represntatives of the National Employment Office. Earlier in the month, the SBC and one of its members, Media Skills hosted a working brunch on the topic of „Lobbying Serbia-Brussels-Washington“ with President of the Lobbying Society of Serbia, Nenad Vuković, the Dean of Metropolitan University’s Faculty of Management, professor of marketing, negotiating and lobbying and Presidet of CEDEF, Dr Ana Bovan, and a member of the Serbian task force involved in drafting the Law on Lobbying, Dr Balša Kašćelan all speaking at the event.

the Murad Beauty Clinic, the latest face lifting method was presented. Murad d.o.o. Belgrade is owned by a Slovenian and is a official importer and distributer of the famous Dr Murad cosmetics. Also in early June, the SBC members had an opportunity to find out more about DHL which was officially presented by its Director, Mr. Darko Babić. Head of the Custom Clearance Procedures Sector at the Serbia Customs Administratio, Mr. Slobodan Tomić also attended the presentation, as well as talked about the newest simplified custom clearance procedures. From 3rd to 5th June, the Embassy of the Republic of Slovenia and the Slovenian Busi-

„Raise a Smile“ charity campaign

ness Club hosted a promotional event called „The Days of Slovenia“ in the Stadion shopping centre in Voždovac. The shoppers were able to experience the spirit of Slovenia in Belgrade, see the exhibition of photos depicting Slovenian towns and cities, and find out more about the Slovenian culture, music, language and tourism. This event also had a humanitarian character since all the proceeds from the sale of the handicrafts with the traditional Slovenian symbols made by the children from the Jovan Jovanovic Zmaj institution were given to this institution, at the suggestion of NLB Bank. Also, the children from proceeds of the handicrafts made by the children from the Housing and Daycare Centre for Children and Yough with Disabilities got to keep the proceeds from the sale

TOGETHER WITH ITS MEMBERS, THE CLUB RAISED OVER A MILLION DINARS FOR THE CHILDREN IN THE CHILDREN’S SHELTER IN BELGRADE JUNE

Get-together of business people from Prekmurje and the Club’s members

“The Power of New Ideas” panel discussion

In late June, the SBC hosted a summer cocktail party at the Acapulco raft club to round off the activities of the first six months of the year and officially celebrate the vacation season. In mid-June, Confida Cosulting, a member of the SBC, hosted a working brunch on the topic of „Ambiguities in the implementation of the VAT Law and the Income Tax Law in taxation f foreign persons in Serbia and other current tax issues“. The working brunch was attended by the members of the Austrian, German, Swiss and Italian chambers of commerce, as well as the members of the Hellenic Business Association. Earlier in June, at the working brunch at

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of the handicrafts they made, at an initiative of the Triglav Insurance Company Belgrade. The Slovenian Ambassador to Serbia, H.E. Mr. Vladimir Gasparič officially opened the Days of Slovenia event. The Kredarica Society band from Novi Sad performed the traditional Slovenian music and the folk ensamble from Kostolac presented the traditional Slovenian dances.

MAY In the end of May, the SBC hosted a fundraiser called „Raise a Smile“ for the children from the Children Shelter with the aim of spending more time with them and raising money. Owing to a large number of companies and business people getting involved

in the fundraiser, a substantial amount of money was collected. In mid-May, the SBC and Profil Group organized a workig brunch called „The Latest Approach to Employee Evaluation and Development“ with Bojana Đurić and Miljan Spasić as the speakers. They talked about the approach that the consultants from Profil use in evaluating and selecting prospective employees, and in preparing employee development programmes. Also in mid-May, the SBC and the Slovenian Embassy hosted a panel discussion on the topic of „The Power of New Ideas“. The event took place at the 60th International Technology Fair. The panel discussion was

Speed business meeting

officially opened by Mrs Danijela Fišakov, the President of the SBC, with an economic advisor in the Slovenian Embassy, Mr. Goran Križ and an expert associate of the President of the Serbian Chamber of Commerce, Mr. Nenad Đurđević as speakers. The representatives of the successful Slovenian companies operating in Serbia participated in the discussion. They talked about the conditions for doing business in Serbia and the steps towards creating an even better business environment in Serbia. The host of the SBC working brunch in May was the founder and director of the Heror Media Point Company, Mrs. Nataša Heror and the founder and director of the company Giacomelli Media, Yuri Giacomelli. The topic covered at this working brunch was „Stakeholder management and the role of media“. Also in May, the SBC organized an infor-

IN COLLABORATION WITH THE NEW MEMBER THE MEDIA SKILLS AGENCY, THE SBC HOSTED THE FIRST WORKING BRUNCH CALLED „PUBLIC APPEARANCES AND COMMUNICATION SKILLS“ mal meeting of the Club’s members and the business people from Prekmurje with 20 business people from Slovenia and 25 Club members in attendance. The Director of the Pomurje Chamber of Commerce, Mr. Robert Grah presented Prekmurje’s investment potential and nature’s attractions, while Director of the Direct Investments Sector at the Development Agency of Serbia, Mr. Radoš Gazdić splke about Serbia’s potential and investment benefits.

Meeting of the Industry Section Working breakfast, the TSG Law Firm

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APRIL In later April, the SBC members visited the Merkur special hospital in Vrnjačka Banja and saw for themselves the high quality of the services provided there. On Thursday, 21st April, 2016, the SBC held its regular Assembly session at which Mr. Miodrag Stojković from Eti B Company was appointed the new Assembly President. At the meeting, the SBC members also talked about the past and future activities of the Club and presented the growing trends in the number of the Club’s members. In mid-April, the SBC hoste a working brunch called „Neuroleadership“ with Mr. Ivan Kokeza, from Executive & Consulting, Zurich, Switzerland, as the main speaker.

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In early April, the SBC, the Association of Business Women and the Croatian Business Club held a speed business meeting at the Hyatt Hotel, Belgrade.

Working breakfast – Slovenian Minister of Development and Technology Zdravko Počivalšek

i n the

MARCH Acting Director of the Development Agency of Serbia, Dr Miloš Petrović and President of the Serbian Association of Economists Mr. Aleksandar Vlahović were the special guests at the March working brunch. Mr. Petrović spoke about the Agency’s activities and the new Investment Law while Mr. Vlahović presented the 2016 Kopaonik Consensus. The second meeting of the SBC Industry Selection took place at the Club’s premises in late March, with the main topic being presenting the SBC members at the jubilee 60th Technology and Technological Advancements Fair. In March, the TSG Tomić Sinđelić Groza Law Firm, the SBC and the Italian-Serbian Business Chamber in Belgrade hosted a working brunch and a seminar titled „Public procurements – Six months later“. Solicitor Predrag Groza was the main speaker who is also the main advisor to the clients who are bidders in public procurements. Also in March and in collaboration with the new member the MEDIA SKILLS Agency, the SBC hosted the first working brunch called „Public appearances and Communication Skills“ at which Club members were able to hear more about the agency and receive good advice on how to have a successful public appearance.

Working meeting, RAS and Serbian Association of Economists

Working meeting, Željko Ožegović, Ministry of Public Administration and Local Self-Government

FEBRUARY In late February, the SPC organized the second working brunch in cooperation with the DOBA Faculty. The SBC members showed a great interest for the seminar titled „Time Management“ with the Faculty’s Director Jasna Dominiko Baloh as the main speaker. On 19th February, 2016, at the working brunch, the SBC played host to the Slovenian Minister of Economic Development and Technology, Mr. Zdravko Počivalšek. The brunch was very well attended, and the Club members were given an opportunity to speak about good and bad sides of doing business in Serbia. The Club members cited parafiscal levies and tenders as the biggest obstacles to doing business in Slovenia, and added that there was a lot of room to further improve the cooperation between the Slovenian companies in Serbia. Minister Počivalšek praised the work done by the Slovenian Business Club and pointed out that being the Club’s member was a good step towards networking and acquiring useful information. In early February, the SBC members were

able to enjoy wine tasting at the Panajotović wine cellar as well as to exchange business contacts which was one of the main purposes of the informal meeting at the wine cellar.

JANUARY The SBC started the year with a working meeting at the 88 Rooms Hotel with the following officials in attendance – the State Secretary in the Serbian Ministry of State Administration and Local Self-Government, Željko Ožegović who spoke about the topic of „Public Administration in the Service of Businesses and Citizens“ and the former Slovenian State Administration Minister and Director of the Strategic Project Implementation Unit

Prime Minister’s cabinet, Dr Gregor Virant who shared his wealth of experience gained in Slovenia and opportunities to apply it in Serbia. Apart from the SBC members, the meeting was also attended by the Club’s friends from the Slovenian Embassy, the Slovenian Ambassador, H.E. Mr. Vladimir Gasparič, economic advisor Goran Križ, and Mons. Stanislav Hočevar, the Belgrade Archbishop. Speaking at the SBC’s working lunch, the Slovenian Minister of Economic Developmet and Technology, Zdravko Počivalšek commended the work of the Slovenian Business Club while the Club’s members cited parafiscal levies and tender procedures as the biggest obstacles in doing business.

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ŽIKICA MILOŠEVIĆ

SPIRIT OF SLOVENIA

EAST FOR THE WEST, WEST FOR THE EAST And, furthermore, South for the North and North for the South. Always a little nation, which lost its “Carantania statehood” in the early Middle Ages, Slovenes were destined to be slightly shy and slightly closed, in order to preserve their nation, language and spirit. A century of freedom changed that somewhat

National Park Triglav IF YOU LOVE SOMEBODY, SET THEM FREE Well, it is not exactly 100 years of freedom, since that freedom came in 1918 and was interrupted between 1941 and 1945 by the worst period ever, with annihilation and Nazi assimilation. However, it is solidly at the level of 96 years of freedom for Slovenes. They could inhale deeply and feel free, and now nobody can take that away, but in the past it was not easy at all. Like all small Slavic nations, the Slovenes

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SLOVENES ARE GREAT LOVERS OF NATURE, SO IT IS NO WONDER THAT OUTDOOR ACTIVITIES PLAY AN IMPORTANT ROLE IN THEIR LIVES

had to fight. It was easy to be a Pole, a Russian or a Czech, or a Serb or Bulgarian for that matter. Strong cultural background, mighty states, although some of them lost hundreds of years ago, schools, their own churches. But being a Slovak, a Sorb, a Ukrainian, a Macedonian or a Slovene... well, that was a bit different. In the Habsburg Monarchy some wise guys considered and claimed that the Slovene language had no value or culture. As if that is possible at all! The long fight for their right to speak, to

Wine from Goriška Brda

exist and not to be assimilated by mighty neighbours left an omnipresent mark on the Slovenian spirit, with a deep inclination towards the preservation of local customs. And it is no wonder that the Slovenian language has so many sharply divided accents, some of which are almost unintelligible for the others, despite its small number of speakers. Many jokes were told in the former Yugoslavia about the stubborn, passive and closed Slovenian mentality, but, hey, can you imagine yourself being under foreign rule for 1500 years? How would you grow up to be? So, the Slovenes are the best when they are set free. It is then that they show the vastness of their Slavic soul.

ALPINE AND MEDITERRANEAN A somewhat schizoid combination that is found everywhere in the Mediterranean, from Sardinia and Montenegro to Greece, Dalmatia and Catalonia, Slovenia formed its mentality in two different directions. Those in the north were under strong Alpine influence, slightly “Habsburgian”, with popevke and other types of mountain customs that were always typical for a region that stretches all the way to Switzerland, while

the region that was annexed by Italy under the Treaty of Rapallo, which underwent Italian assimilation during the Fascist period, had much more to do with Furlania

THE SLOVENES SOMEHOW EPITOMISE THE BEST OF BOTH WORLDS, OR THE BEST OF FOUR WORLDS, IF WE VIEW IT THAT WAY: SOMETHING FROM THE SOUTH, SOMETHING FROM THE NORTH, SOMETHING FROM THE WEST AND SOMETHING FROM THE EAST or Dalmatia or Istria, for that matter. The re-established unity of Slovenia after World War II might have left the country without

the much desired city of Trieste, but it did bring all the people closer together. Slovenes are great lovers of nature, so it is no wonder that outdoor activities play an important role in their lives. They like hiking, cycling, mountaineering and other types of activities that are connected with nature and greenery. And, once again, it is no wonder that Slovenia is the world’s top green destination. Yes, you read it right, Slovenia has become the world's first country to be declared a green destination, based on an assessment by Netherlands-based organisation Green Destinations, which established 96% compliance across 100 criteria. That happened in September and shows how much the average Slovenian is connected with nature. And we cannot say that there is a shortage of nature in the world, which makes this title even more valuable! Slovenes are now very hospitable, but a bit quieter than their Slavic Balkan brothers. They are definitely more zealous about fun and rule-breaking than their Austrian neighbours, and definitely represent blond symbols of Slavic beauty for their Western Italian neighbours, the Slovenes somehow epitomise the best of both worlds, or the best of four worlds, if we view it that way: something from the South, something from the North, something from the West and something from the East. With a strong Slavic soul and resilience, with an inclination to maintain tradition, like all the Mitteleuropeans, they give you the feeling of being welcome and showing a bit of melancholy. Well, maybe we see it all from the Southern perspective! Perhaps we should all take a look from the other side and see a country filled with white wine, cheerful mountains, nice food, self-conscious but joyful people who are happy that they are no longer fighting for their survival.

SLOVENES LIKE HIKING, CYCLING, MOUNTAINEERING AND OTHER TYPES OF ACTIVITIES THAT ARE CONNECTED WITH NATURE AND GREENERY Soča river SLOVENIA 2016

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CULTURE AND CUSTOMS

AT THE CROSSROADS — Text —

ŽIKICA MILOŠEVIĆ

Hiking on Bled BORDER SLAVS

Slovenes have a long tradition, but, as the Westernmost of all the South Slavs, they were subdued by strong cultural pressures during the last 1500 years. Fortunately, their culture survived and only grew richer under foreign influence

If you are a Slavic nation located so far to the West you simply have to be influenced by Germanic culture. That happened to the Czechs; it happened to the Poles and it particularly happened to the Sorbs, or Lusatian Serbs, as we are used to call them. And it definitely happened to the Slovenes. However, in contrast to the aforementioned nations, Slovenes experienced less Protestant influence and more Italian influence. Unlike other Slavic cultures, the Slovenes have been greatly influenced by German and Austrian cultures, a result of centuries of rule by the Austrian Habsburgs. The Italian influence is evident in the regions that border Italy, but can of course be seen everywhere.

OLD SLAVIC CUSTOMS PRESERVED Despite these influences, Slovenia has

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always managed to preserve its ethnological features and traditions. One of the most striking elements of the national Slovenian pride, although not unique to Slovenes (it can also be seen in Eastern Serbia, Southern Hungary or even as far away as Sardinia) is the appearance of kuranti figures. They are famous for their beastly and monstrous appearances, and kuranti usually appear during carnival season, which is in early spring. The figures from Ptujsko polje are particularly interesting. Let’s delve a bit deeper into some of the more peculiar customs. Even today, the kozolec, a traditional rack for drying hay and other field crops, can be seen all across Slovenia. The double kozolec is unique in the world and is a delight for the eye with the originality of its construction and ornate decoration. Along with its universally known breed of honeybee, a special feature of Slovenia is its colourful beehive panels dec-

Severin Freund during Planica Ski jumps

orated with religious, historical, and frequently humorous scenes found on the front of the original Slovene beehive. In the 18th and 19th centuries there were at least fifty thousand examples in existence, and more than six hundred preserved motifs remain as a veritable gallery of folk art. Among Slovenia’s many historical legacies, its original skis spark special respect. One of the oldest means of transport on the high Bloke Plateau in central Slovenia, they were first documented in the 17th century. No wonder, then, that Slovenia is such a skiing superpower! And a paradise for skiers.

MENTALITY AS A MIXTURE Much has been said about the Slovenian mentality, and sometimes their qualities feel quite contradictory. Of course, this is a result of their mixed influences, and Slovenes often tend to oppose their immediate neighbour or a prevalent discourse. During the times of the Habsburgs, the prevalent sentiment was towards their Slavic identity, while in Yugoslavia they felt very Middle European in comparison with their fiery Balkan compatriots, emphasising their own inclination towards rules and order, while now, in the EU, they feel different and more easy-going and lively than many of the stiff nations of the Union. The truth, of course, is somewhere in between. Now they cannot wait to hang around with the former Yugoslavs and they flock to Belgrade for the New Year’s celebrations and feel like rule-breakers. The people and their identities! But the truth is that Slovenians are a nice mixture of everything, which is particularly visible in their cuisine.

CUISINE AS A MIXTURE, ONCE AGAIN Slovenian cuisine is a mixture of Central European cuisine (especially Austrian and Hungarian), Mediterranean cuisine and Balkan cuisine. Historically, Slovenian cuisine was divided into urban, farmhouse, cottage, castle, parsonage and monastic cuisine. Due to the variety of Slovenian cultural and natural landscapes, the country has more than 40 distinct regional cuisines. The ethnologically most characteristic

DESPITE THESE INFLUENCES, SLOVENIA HAS ALWAYS MANAGED TO PRESERVE ITS ETHNOLOGICAL FEATURES AND TRADITIONS

Slovene dishes were one-pot dishes, such as ričet, Istrian stew (jota), minestrone (mineštra), and žganci buckwheat spoonbread; in the Prekmurje region there is also bujta repa, and prekmurska gibanica pastry. Prosciutto-style cured ham (pršut) is known in the Slovene Littoral. The nut roll (potica) has become a trademark and symbol of Slovenia, especially among the Slovene diaspora in America. Many decades in Yugoslavia opened the door to Balkan additions, just as many centuries under the Habsburgs opened the door to Austrian and Hungarian dishes, and this has served to make Slovenian cuisine unique and tasty.

EPILOGUE Slovenes might feel contradictory, Southerners when they are surrounded by Northerners and vice versa, they might feel very “Eastern” and rule-breaking when they are surrounded by the rule-obeying, and stuck to be orderly when they see the Balkan mess, but, nevertheless, this adorable mixture is not necessarily neurotic – it is, rather, quite marvellous and delicious!

SLOVENIAN CUISINE IS A MIXTURE OF CENTRAL EUROPEAN CUISINE (ESPECIALLY AUSTRIAN AND HUNGARIAN), MEDITERRANEAN CUISINE AND BALKAN CUISINE Kranjska sausage SLOVENIA 2016

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TOURISM

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Postojna cave

Piran

HEAVEN FOR THE NORTHENERS, AT FIRST Once upon a time, tourists were not like they are now. Actually, attire was very important back then, as was etiquette. And that was precisely the reason why the nobility and the rich folk of Vienna and the rest of the Habsburg monarchy chose the northernmost part of the Adriatic Sea and their Littoral estates to enjoy the summer sun – that, and the proximity, enhanced by good rail connections. However, let’s go back to the attire. In 1910, the people preferred Opatija, Venice or the Slovenian Littoral to Split, Dubrovnik or the Dalmatian Islands, simply because it was impossible to wear a tuxedo or a dress in the heat of the South. And the area between Rijeka and Venice soon became known as the “Austrian Littoral”, dotted with hotels, bed & breakfast establishments and ballrooms. And today’s Slovenian Littoral is right in the middle of that. Of course, there has been another trend in the tourist craze: the obsession with health, amplified with the newly discovered benefits of the kinds of mineral waters, spa centres and baths that are abundant in Slovenia and which became extremely important and, of course, frequently visited. Indeed, tourism was on the rise, and the third thing is the new craze for sport skiing, which was propelled into general habits in the 20th century, with many mountain houses, ski clubs and B&Bs all around the Alps. And all of these trends have only accelerated and are now quite lively.

SLAVIC, BUT ON THE CROSSROADS The most famous and influential Slovenian band ever, of course, is Laibach, which made a statement 30 years ago that Slovenia is right between the Slavic and German-

ic civilisations. This is true, but the band, perhaps deliberately, omitted the Romance civilisation to the south (Istria and Littoral) and the Hungarian civilisation (Prekmurje). Having all of that in mind, we can say that not only was nature generous to Slovenia, but also culture, which is a mixture of all

WITH ITS NICE PEOPLE, BEER AND WINE, SLOVENIA IS PERHAPS A HIDDEN GEM OF EUROPE FOR SOME, BUT FOR THOSE OF US FROM THE FORMER YUGOSLAVIA IT IS A DESTINATION THAT SIMPLY HAS IT ALL. AND WE KNOW IT, HAVE KNOWN IT AND WILL CONTINUE TO KNOW IT

things that are appreciated: Slavic soul, Germanic precision and meticulousness, the Italian easy-going nature and hedonism, and Hungarian passion. Slovenia offers tourists a wide variety of landscapes: Alpine in the northwest, Mediterranean in the southwest, Pannonian in the northeast, and Dinaric in the southeast. They roughly correspond to the traditional regions of Slovenia, based on the former four Habsburg crown lands (Carniola, Carinthia, Styria and the Littoral). Each offers its own natural, geographic, architectural and cultural features. Slovenia has mountains, meadows, lakes, caves and the sea, making it an attractive destination in Europe. The nation's capital, Ljubljana, has many important Baroque and Art Nouveau buildings, with several important works of local architect Jože Plečnik. Other attractions include the Julian Alps, with the picturesque Lake Bled and Soča Valley, as well as the nation's highest peak, Mount Triglav. Perhaps even more famous is Slovenia's karst, named after the Karst Plateau in the Slovenian Littoral. More than 28 million visitors

LJUBLJANA HAS MANY IMPORTANT BAROQUE AND ART NOUVEAU BUILDINGS, WITH SEVERAL IMPORTANT WORKS OF LOCAL ARCHITECT JOŽE PLEČNIK Plečnik colonnade, Ljubljana SLOVENIA 2016

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Maribor, Pohorje

Terme Krka have visited Postojna Cave, while a 15minute drive away is the Škocjan Caves system, a UNESCO World Heritage Site. Several other caves are open to the public, including Vilenica Cave. Postojna Cave, home to the “human fish” (actually a salamander), dozens of ski resorts, wine regions (usually white wine) and nice historic cities, are all included in the portfolio of Slovenia’s tourist offer. From the Venetian Gothic town of Piran, where you can catch a bit of sunshine, to Ptuj or Petovia, the oldest Roman city in Slovenia (now a tiny but charming town), everything is magical. Celje is one of the leading fortified places, while traditional buildings and fortresses can be found all around. The rivalry between Ljubljana and Maribor only makes things more interesting. Wine routes, the Roman route, ski

SLOVENIA OFFERS TOURISTS A WIDE VARIETY OF LANDSCAPES: ALPINE IN THE NORTHWEST, MEDITERRANEAN IN THE SOUTHWEST, PANNONIAN IN THE NORTHEAST, AND DINARIC IN THE SOUTHEAST Slovenian Alps 50

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routes and, if nothing else, beautiful mountains that resemble those in Switzerland

IT IS INTERESTING THAT SLOVENIA IS A REALLY POPULAR DESTINATION AMONG SERBIAN TOURISTS, WHO HOLD 5TH POSITION AMONG THE NUMBERS OF FOREIGN ARRIVALS, AFTER ITALIANS, AUSTRIANS, GERMANS AND CROATIANS

but are much more affordable, make it all really appealing. It is interesting that Slovenia is a really popular destination among Serbian tourists, who hold 5th position among the numbers of foreign arrivals, after Italians, Austrians, Germans and Croatians. Serbs might not choose Slovenia as a summer seaside destination, but they certainly love the skiing and the spas. The writer of these lines learned to ski at Vogel, in Slovenia. What more can a person want than a ski resort that close to your home, where the people speak your language and which is affordable, meticulously clean and organised? With its nice people, beer and wine, Slovenia is perhaps a hidden gem of Europe for some, but for those of us from the former Yugoslavia it is a destination that simply has it all. And we know it, have known it and will continue to know it.

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