In Focus - Belgium

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Belgium IN FOCUS

BEER LAND

CHOCOLATE

OIL PAINTING

R OY A L P A L A CE

C O MI C S E R I E S

There are over 800 kinds of beers made in Belgium. Belgians consume in average 150 liters of beer per person per year.

Belgium produces 220,000 tonnes of chocolate per year. This amounts to 22 kg of chocolate per inhabitant annually, i.e. 61 grammes per day in average.

Belgian painters are credited to have invented oil painting in the 15th century (probably Jan van Eyck).

The Royal Palace of Brussels, built in a similar neoclassical style as Buckingham Palace, has a faรงade 50% longer than its British equivalent.

In 2003, there were 884 registered Belgian comic series, up from 104 in 1985.

Belgium has more comic makers per square kilometer than any other country in the world (even Japan).

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Serbia’s Future is in and With Europe Belgium is firmly on the side of reinforcing the European Union project, as well as supporting the European perspective of the Western Balkan countries

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he number of EU preparatory programmes and assistance projects to help the Serbian administration in that endeavour is growing in intensity every year. We spoke with Leo D’aes, Ambassador of the Kingdom of Belgium to Serbia, about the current challenges to the European project and how the Western Balkans and Serbia fit into that picture with regard to security, political and economic issues, and the small, albeit growing, cooperation between Belgium and Serbian businesses, supported by cordial bilateral relations between the two countries.

Do you think that the EU will manage to find a sustainable formula to continue existing as it is, despite Brexit and Euroscepticism both within and beyond the Union?

— Yes, I am convinced that there is enough united wisdom, experience and common sense to continue the success story of the European Union. A founding nation like Belgium will most certainly continue its policy of safeguarding and reinforcing the European Union project, which is in essence an ever closer political union.

And we are not alone in this ambition.

Brexit is an important event, which we very much regret, but in the end it will help clarify the duties and the privileges of being a member of the European Union. Brexit is a particular, rather dramatic form of the Euroscepticism that has been with us for quite a while. I do not belittle

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this phenomenon, on the contrary, it helps focus the minds of staunchly pro-EU governments or officials on what indeed are real or perceived or wrongfully-presented weaknesses or deficiencies of the EU. In these volatile and uncertain times, the best answer to these doubts (again: real or artificial) is more EU, a better response to the needs of EU citizens, and intense consultation and cooperation between the member states, so as to pool ideas and resources to tackle the many transboundary problems which affect our daily lives.

As HR Federica Mogherini said recently, there is not one single country in the EU that in today’s world can influence international and global agenda on its own, whilst the EU as such can. Some cynics only want to see enormous bureaucracy.

I see the enormous historic achievements and the unique potential of the Union for tackling responsibly what will no doubt be an ever more unsettling, complicated world agenda.

How much have the issues of terrorism and the refugee crisis overshadowed equally important topics like economic stagnation in Europe?

— If you follow the agenda of EU meetings closely, as I do, you will notice, on the one hand, that the European Council has indeed held many meetings in which the issue of terrorism and refugees were the central agenda topics. These meetings are an obvious response to the need for concerted action. Regarding refugees, in

INTER VIEW

L EO D’A E S Ambassador of the Kingdom of Belgium to Serbia

Belgium firmly supports Serbia’s aspirations to join the EU. We are involved on an almost daily basis in the accession talks and are trying to contribute constructively to this process

close cooperation with the Commission, the Council is gradually steering a route away from crisis management towards a more structural policy of managing the flows of migrants. Coordination in the fight against terrorism is increasing with each passing day, learning from each other’s best practices and involving all authorities concerned, including the Serbian.

On the other hand, in the meantime, EU policies with regard to economic and financial policies were not put on hold, quite the contrary. Streamlining the European semester, completing the banking union, enforcing fiscal coordination…all of this requires a patient follow-up in numerous meetings at all levels, which is essential to safeguarding the economic foundations of our internal market and maintaining business confidence and the spirit of entrepreneurship.

Considering the current circumstances, do you think the Balkan countries still have a future in Europe, and what can we expect to happen to Serbia in that context?

— There is no doubt in my mind that the Thessaloniki declaration of 2003 is still very much alive: the EU firmly supports the European perspective of the Western Balkan countries. Or, to quote the then Heads of State/Government: “The future of the Balkans is within the European Union”. Today, in 2016, this remains valid: those Balkan states wishing to become members are welcome, if and when

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they fulfil all the conditions. It’s as simple (and as vast) as that. The road ahead is clear, so are the efforts required and the means and assistance to get there. The number of EU preparatory programmes and assistance projects to help the Serbian administration gradually reach the final objective of being EU-compliant is impressive. This cooperation is growing in intensity every year. It is complemented with substantial assistance from the World Bank, IMF, EIB, EBRD, and with the regional action programme in the framework of the Berlin process. If you look at this global picture, there most certainly is a future in and with Europe.

Also, in the same context, what do you think of security in the Balkans and Serbia’s contribution to improving stability in the region?

— The Balkans is still recovering from a violent and relatively recent past. I do not underestimate the difficulties to pass from history to harmony. However, mistrust within the Balkans leads to mistrust towards the Balkans. So it’s in everyone’s interest that confidence and security be gradually and persistently built.

Serbia plays a role that is indeed key in this difficult but necessary regional endeavour. The recent meetings between the Serbian and Albanian prime ministers, and their respective business communities, are a positive example. The more signs or efforts of genuine reconciliation and cooperation are made, the more a self-reinforcing process of respect and outreach will continue to develop, to the benefit of everyone –including the local and international business community, which looks for stability as a prerequisite for trade and investment.

How much do you think is the new government’s reformist and pro-European orientation based on its programme and actions?

— At the time of this interview, an IMF mission is here again in Belgrade, for the 6th time since the SBA of February 2015.

I have been closely following the IMF’s assessments, and I note a steady progress in the difficult areas of fiscal consolidation, modernising business laws and streamlining the public administration. As I said in response to your third question, other international institutions also contribute to the realisation of the government’s programme. This is especially true for the EU, which is carrying out a tailor-made assistance programme for Serbia. And, even though we still have a long way to go, the process of adjustments itself contributes to creating confidence in Serbia’s future.

In which way does Belgium support Serbia’s pro-European and pro-reformist aspirations?

— In line with the Thessaloniki commitment, Belgium has from the outset firmly supported Serbia’s aspirations to join the EU. Like any other member state, we are involved on an almost daily basis in accession talks and are trying to contribute constructively to this process, with an understanding for the difficulties and with a clear wish to move on, taking into account Serbia’s present assets and deficiencies. A practical example of cooperation is the recent visit of 10 Serbian civil servants to the EU Department of our Ministry of Foreign Affairs in Brussels, with the aim of acquainting our Serbian guests with the way an operational relationship with and within the EU is managed on a daily basis. And, last but not least, the Belgian Embassy is of course actively supporting the work of the EU Delegation here in Belgrade, which is the anchor of our common efforts.

How would you rate overall bilateral relations between the two countries?

— Serbian-Belgian relations are very cordial, and have become even more in-

tense since the candidature of Serbia for EU membership. The Serbian authorities know that in this accession process we consistently apply a “strict and fair” attitude, which is in our common interest.

The trade relations most certainly have potential for growth, but are of course dependent on the business climate. There is good cooperation between our respective police and justice departments in the daily fight against organised crime and terrorism. Serbia is being more and more

discovered by the Belgians, be they businesspeople, tourists, artists, festival-goers or scouts. It is a welcome trend that we obviously support actively.

SUPPORTING

WELCOME TREND Serbia is being more and more discovered by the Belgians, be they businesspeople, tourists, artists, festival-goers or scouts. This is a welcome trend that we obviously support actively.

How interested are Belgian companies in investing in Serbia, and what can Serbia do to attract more Belgian investment?

— About 50 companies with Belgian capital or links are currently active in Serbia, in various sectors like food, retail and industry, agriculture, ICT, metal processing, renewable energy. All in all, the presence is small compared to some other EU countries, but we aim to actively support the steadily increasing interest in the Serbian market, a tendency reinforced by the ongoing EU accession negotiations. The three Belgian regional agencies dealing with foreign trade are represented in Belgrade by the Brussels Invest & Export agency, which provides regular and timely information to the Belgian business world on opportunities, potential local partners, local legislation, tenders and fairs.

Generally speaking, the state and local governments do their best to assist in the prospective and starting-up phase, in finding the most suitable workforce, or

in cooperating in specific training provided by enterprise. What are often missing are streamlined administrations with clear procedures. With the active assistance of the CCIS, the Mixed Chambers Council, of which the Belgian-Serbian Business Association is a member, is engaging in a productive dialogue with the ministries concerned (notably Finance and Labour), so as to gradually reduce these obstacles and arrive at smooth and beneficial cooperation.

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Growing Interest in Serbia Since its inception, the Belgian business community in Serbia has doubled, but this is just one of many signs pointing to the growing interest of investors in the Serbian economy. Positive trends are very well noticed both here and abroad INTER VIEW

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he Belgian-Serbian Business Association (BSBA) is satisfied with the trend of cooperation with Serbian state bodies and organisations that deal with economic issues, and welcomes positive trends in reducing red tape and easing investments. Hugo van Veghel, President of the BSBA, also emphasises the human factor and recognises the role of businesses in educating the workforce.

How big is the Belgian business community in Serbia today compared to the time when the BSBA was founded?

— If we measure this in terms of the number BSBA members, then we can say that it has doubled. However, we have to point out that here we consider only paying members, while should not neglect another indicator: the 735 Serbian and international businesses and individuals that are registered in the BSBA discussion group on social media (LinkedIn).

What are the most important topics for BSBA members regarding their operations in Serbia?

— One of our goals is to support the development of the SME sector. It is the one with less financial power, but one which can be strong in terms of innovation. In business development and investments, predictability remains key. The positive trends are very well noticed here and abroad and contribute initially to curiosity among foreign investors and leads, after in-country visits, to more confidence. We also see positive movement in dealing with red tape issues. The BSBA is one of the co-initiators of the European Initiative (EI), a working group of European bilateral chambers and business associations in Serbia. Together we have joined forces with the Chamber of Commerce and Industry of Serbia

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(CCIS), AmCham and the FIC in the Council of Mixed Chambers (CMC) in the CCIS. All together, we want to be the voice of the SMEs that are working or seeking to work in, or with, Serbia.

Are you satisfied with the cooperation between the BSBA and the Serbian state bodies and organisations that deal with economic issues?

— We have come a long way. FIC, SAM, NALED, chambers and business associations have all been lobbying and advocating for a better business environment.

The BSBA, as a member of EI and CMC, is joining in their efforts focused on SME issues and not without results. The governmental administrations also see opportunities in the working sessions with the CMC to get closer to businesses in the field. We have experienced that these sessions are not “Talk Boxes”, but rather genuine workings sessions in which the governmental side is also involved intensively, with the aim of improving the business environment in Serbia.

From the standpoint of Belgian companies in Serbia, what are Serbia's key advantages as a business destination, and what should be done to further improve the conditions for doing business here?

— You might not expect me to say so, but – and this might be a more personal opinion – one of the key advantages is the human factor. Foreign visitors are impressed by the Serbian character, openness, warm hospitality and, first and foremost, willingness to work. And all of us know that we have to give the workforce the opportunity to improve its skills, both technical and linguistic. There are different projects and programmes in Serbia and the wider region that are working on dual education, with support from the

H U G O VA N V EG H E L President of the Belgian-Serbian Business Association (BSBA)

BUSINESS

BELGIUM DAY For any business interested in Belgian cooperation opportunities, “Belgium Day”, organised by CCIS and the Belgian Embassy’s Office of the Economic and Commercial Attaché on 23rd November 2016, is a must.

One of our goals is to support the development of the SME sector.

It is one with less financial power, but one which can be strong in terms of innovation

Austrians, Swiss and other internationals. Reducing red tape and facilitating investments is important indeed, but you must also be able to deliver an adequate workforce. This is not only a task of employment offices and the educational and vocational education sector, but also of the existing businesses themselves, in partnership with the latter.

In which way does the BSBA cooperate with other domestic and foreign business associations and organisations in Serbia?

— Although we consider ourselves as being small, we have taken our place in different cooperation frameworks. The European Initiative is the framework in which we cooperate with other European mixed chambers and business clubs, both big and small; cooperation with the CCIS is one of excellent mutual understanding and support, while in combination with the previous, the BSBA is also founding and active member of the Council of Mixed Chambers within the CCIS. Which of the BSBA's upcoming activities would you like to highlight?

— For any business interested in Belgian cooperation opportunities, our first November event is a must. “Doing Business with Belgium” and “Belgian Markets” are the main topics on “Belgium Day”, organised by CCIS and the Belgian Embassy’s Office of the Economic and Commercial Attaché on 23rd November 2016 at the premises of CCIS in Belgrade’s Resavska Street. Our second activity in November is more restricted in the sense that we will join EI colleagues in organising the “Business Women’s Lunch” on 29th November, which is a great initiative that underlines the importance of women at all levels of business.

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We are Gradually Expanding Our Cooperation Belgian companies operating in Serbia are generally satisfied with the business climate and see Serbia as an interesting business destination

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e are continuously raising the awareness of Belgian businesspeople regarding the advantages of the Serbian marketplace, while at the same time we support Serbian companies seeking potential suppliers from Belgium.

How would you comment on the overall economic cooperation between Belgium and Serbia?

— Economic cooperation between Belgium and Serbia is very good and gradually expanding. There are around 50 Belgian companies currently active in Serbia, with Delhaize among the biggest investors. The overall foreign trade between the two countries is increasing steadily every year, making Serbia more attractive as a partner for Belgian entrepreneurs.

Belgian companies operating in Serbia are generally satisfied with their activities and investments; some of them are even very active in promoting Serbia as an interesting business development destination among other Belgian companies.

Nevertheless, there are also companies that have experienced some difficulties and unpleasant surprises with the regulatory framework, when dealing with the administration, bureaucracy and red tape.

Where do you see potential for more trade cooperation between the two countries?

— Belgium is at the leading edge of a whole series of sectors. Among the most important sectors of the Belgian economy are biotechnology, environment, the automotive sector, pharmaceuticals, the agro-food sector, ICT, transport and logistics etc. With its relatively small domestic market, Belgium has developed an open, internationally-orientated economy that depends heavily on foreign trade. Serbia has great potential in vari-

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INTER VIEW

ous areas – in sectors like metal processing, industrial machinery, agro-food, energy and environment, ICT, which provides various opportunities for cooperation, as well as possibilities for transfers of knowhow and technology. There are also very good outsourcing opportunities in ICT, the metal industry etc.

How much is the Belgian business community present in Serbia and in which sectors are potential investors mostly interested?

— Belgian companies have expressed interest in the Serbian market in terms of investments in different industrial sectors. The Belgian business community in Serbia is not so voluminous, but it is present in various areas of the Serbian economy - agriculture, the food industry, ICT, metal processing, renewable energy. Creating a positive image about Serbia and its market is always a first step and we are continuously drawing the attention of Belgian businesspeople towards the advantages of the Serbian marketplace.

In which ways does the embassy try to increase bilateral economic cooperation?

— Our office in Serbia represents the three Belgian regional agencies specialised in foreign trade - Brussels Invest & Export (http://invest-export.brussels), Wallonia Foreign Trade and Investment Agency (www.awex.be) and Flanders Investment and Trade (www.flandersinvetsmentnadtrade.com). We are supporting Belgian companies on a daily basis by providing them with various information regarding the Serbian market and, when necessary, we help them solve problems if they are confronted by them. Also, we offer our support to Serbian companies seeking potential suppliers from Belgium. There are several “buyers’ missions” organised every year, during which

M A R I JA NA MILOŠEVIĆ T U F EG DŽ I Ć Economic and Trade Counsellor, Brussels Invest and Export Embassy of Belgium

On 23rd November, together with the SCC and BSBA, we will organise a Belgian Day seminar on doing business with Belgium

Serbian companies can meet potential Belgian suppliers directly. For example, this year in March we had a visit of around 20 Belgian companies from various sectors, all interested in doing business in Serbia. Our office is working closely with the Belgian-Serbian Business Association (BSBA).

Our next joint event will be very soon. On 23rd November, together with the Chamber of Commerce and Industry of Serbia and the Belgian Serbian Business Association (BSBA), we will organise a Belgian Day seminar on doing business with Belgium.

How much has the interest of Belgian companies increased due to the EU accession process and reforms in Serbia?

— The economic situation in Serbia is getting better and during recent years the legislative framework has improved noticeably with regard to the general economic environment. For example, the new Law on Urban Planning and Construction and the system of electronic permits eliminated a lot of paperwork and potential complications.

Also, the already announced further development of the e-government system will be an important step, as the development of e-services is very often in direct proportion with the competitiveness of a country and its attractiveness for investors. EU accession progress undoubtedly offers foreign companies reassurance that the business environment will be even more predictable and increases interest among foreign partners.

In which areas should the biggest improvements be made in order to improve the business climate?

— Serbia has made great progress in improving the business climate, but it is important that Serbia continues with ambitious structural reforms. Focus should be put on eliminating unnecessary and complex administrative procedures, as well as on implementing the laws devised to advance business.

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Modern, Centrally Positioned, Efficient Okay, it was actually the first to undergo the Industrial Revolution on the Continent. The first, of course, was the UK. But, funnily enough, both countries have rapidly deindustrialised in the last 40 years and changed their economic ideas completely ECO NO MY

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elgium developed excellent transport infrastructure, with ports, canals, railways and highways, in order to integrate its industry with those of its neighbours. Industry is concentrated mainly in the populous Flanders in the north, around Brussels, and in Walloon’s two biggest cities, Liège and Charleroi, along the Sillon industriel.

Belgium imports raw materials and semi-finished goods that are further processed and re-exported. Apart from its coal, which it is no longer economically viable to exploit, Belgium has few natural resources other than fertile soils.

Belgium also had only one colony, but it was a valuable one – Belgian Congo, which introduced large quantities of cocoa to the metropolitan market, thus creating the famous chocolate industry. The mining towns have now disappeared and the economy has shifted towards services, but the chocolate industry remained

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and Belgian chocolates are now almost as famous as their Swiss counterparts, perhaps even more so.

Despite the heavy industrial component, services now account for 74.9% of GDP, while agriculture accounts for only 1%. There are virtually no agrarians in Belgium, unlike its neighbours with very strong agrarian sectors, like France or the Netherlands. Thus it is once again like the UK. But what makes Belgium so resilient in economic terms? Its central position between the main markets of the West and, of course, the fact that almost every inhabitant is at least bilingual or, even better, multilingual, with Flemish, French, English and German the four most commonly spoken languages. This really makes trade easier, and Belgium’s exports are equivalent to over two-thirds of GNP, ensuring that Belgium is heavily dependent on world trade. A highly skilled and productive workforce can do no harm to the economy, and Belgium seems to have that in abundance.

And there has also been a strange economic shift between the two regions: a century ago, Wallonia was industrial and developed, while Flanders was agricultural, and thus poorer. Now the roles have reversed. The older, traditional industries of Wallonia, particularly the steel industry, began to lose their competitive edge during the 1960s and ‘70s, and the Walloon

ADVANTAGES

ONE OF THE RICHEST Despite all economic crises and downturns, Belgium remains one of the world’s richest countries, with an economy that must not fear any other.

All of Belgium’s comparative advantages are still present, while grey clouds over the economy of Belgium usually last quite a little, unlike their celestial counterparts.

industries seemed to fade away, while Belgian executives are sometimes notorious for relocating manufacturing capacities out of the country, a move similar to those of their British counterparts, but something that German executives could never have done, and never do. That is why Belgium was struck heavily by the Economic Crisis of 2008, while Germany and Poland got away relatively easily. Belgium's economy is reliant on services, transportation, trade, and industry. Coal mining, which has declined in recent years, and the production of steel and chemicals are concentrated in the Sambre and Meuse valleys, in the Borinage around Mons, Charleroi, Namur, and Liège, and in the Campine coal basin. Liège is a major steel center. A well-established metal-products industry manufactures bridges, heavy machinery, industrial and surgical equipment, motor vehicles, rolling stock, machine tools, and munitions. Chemical products include fertilizers, dyes, pharmaceuticals, and plastics; the petrochemical industry is concentrated near the oil refineries of Antwerp.

Tourism is one of the great propellent of the Belgian economy. And Belgium is quite good for touristic puropeses, since the people now like history, spookiness, and ancient, especially Middle Age stories like warlocks, sorcerers and vampires. And a destination full of gloomy spots brings a lot of money to the country. Coastal area bring a lot to economy

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of the country. Perhaps the most impotant and interesting coastal town and a resort place is “Bruges on the Sea” or Zeebruge, which hosts hotels, cafés, a marina and a beach. And it is a centre of the maritime-river port Zeebrugge-Bruges which unloads and downloads millions of containers. Belgium has only 70 km of coast on the North Sea, but the Belgians haven't underestimated its value. Real estate plays big here, and many well-to-do Belgians have a second house or an apartment somewhere near one of the Bel-

gium's fine whitesand beaches.

One peculiarity of the Belgian coast is the abundance of high-rise buildings, which makes one feel more like in Tokyo than in the Benelux. Another noteworthy point is the number of casinos. Yet another is the tramway line that connects all the towns from De Panne (to the southwest) to Knokke-Heist (to the northeast). It is actually the longest tramway line in the world. The main and only real city on the coast is Ostend (Oostende in Dutch, literally "East End"; Ostende

Tourism is one of the great propellent of the Belgian economy.

And Belgium is quite good for touristic puropeses, since the people now like history, spookiness and ancient

in French), with a population of 70,000.

Directly linked to Brussels by train, this was King Leolpold II's great project; making one of Europe's trendiest seaside resort. In its late 19th century heydays, Ostend rivaled with Monaco, Brighton or Deauville, and was the playground of the aristocracy. At a time, it called itself the "Queen of Belgian beaches". Where there is aristocracy or villas, there is money. And money is easily taken if you give the money-bearers a good reason!

Textile production, which began in the Middle Ages, includes cotton, linen, wool, and synthetic fibers; carpets and blankets are important manufactures.

Ghent, Kortrijk, Tournai, and Verviers are all textile centres; Mechelen, Bruges, and Brussels are celebrated for their lace. Other industries include diamond cutting, with Antwerp as an important diamond centre.

Nevertheless, despite all economic crises and downturns, Belgium remains one of the world’s richest countries, with an economy that must not fear any other. All of Belgium’s comparative advantages are still present, while grey clouds over the economy of Belgium usually last quite a little, unlike their celestial counterparts.

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Untapped Opportunities for Cooperation E C O N O MIC COOPERATION

Although Belgian exports are considered highly sophisticated and competitive, while the country mostly imports raw materials and semi-finished goods, there are opportunities for the two countries to improve the quality of their mutual cooperation through cooperative partnerships and by Serbia exporting goods with a higher degree of processing

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elgium is one of the world’s export leaders and currently ranks 12th worldwide. Pharmaceuticals, vehicles, mineral fuels, organic chemicals, machines and plastics are its main export products. At the same time, Belgium imports a lot of raw materials and semi-finished products (ranked 14th in the world), but, despite this, it has managed to constantly record a surplus in trade with other countries.

Belgium’s main export markets are those of Germany, France, The Netherlands, the UK and the U.S., while it most-

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ly imports from The Netherlands, Germany, France, the U.S., the UK and Ireland.

Although it is quite difficult to conquer a market as sophisticated and demanding as Belgium’s, the openness of the Belgian economy means there is an opportunity to sell products of a higher added value, like food, clothing, footwear, sporting goods, cosmetics, furniture, interior decoration products, electrical devices and toys.

There is also demand for certain chemical products, particularly plastic materials and resins, ICT products and

PARTNER

RANKED AS 20th The Kingdom of Belgium is a moderately important foreign trade partner of the Republic of Serbia. In 2015, Belgium was ranked 20th among the 166 countries to which Serbia exports.

services, and tourist services, especially health tourism. The Belgian market is often used as a testing ground for new products, because the diversity of Belgian consumers closely resembles that of Europe as a whole.

Serbian and Belgian companies can also cooperate in production, namely in metal processing, machine building, electronics, the chemicals industry and the food & agriculture sector.

Despite the noted potential, the dominant format of economic cooperation between the two countries is classical trade, which accounts for over 85% of total bilateral trade. Other export/import formats include inward and outward processing.

The Kingdom of Belgium is a moderately important foreign trade partner of the Republic of Serbia. In 2015, Belgium was ranked 20th among the 166 countries to which Serbia exports. Total trade between the Republic of Serbia and the Kingdom of Belgium in 2015 amounted to a value of €469 million, with Serbia exporting goods and services worth €149.9

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million – a 6.7% hike relative to 2014.

Belgium was ranked 15th among the 187 countries from which Serbia imported in 2015. Serbia imported goods and services worth €319.6 million from Belgium, which is 12% more than in 2014.

In the first six months of 2016, total trade between Serbia and Belgium amounted to €281.5 million, with Serbia exporting goods worth €89.3 million (1.4% of total Serbian exports). Serbia’s imports from Belgium were worth €192.2 million, which accounted for 2.3% of total Serbian imports.

In 2015, Serbia mostly exported the following goods to Belgium: motor vehicles, tobacco, raspberries, sacks and bags used as packaging, drugs for retail sale, iron and steel. Serbia mostly imported the following goods from Belgium in 2015: men's footwear, motor vehicle body parts, road trucks with semi-trailers, acetate cables and sugar beet seed.

According to the previous data collection methodology that the National Bank of Serbia appled until 2013, total net investments by Belgian non-residents in Serbia in the period from 2007 to 2013 amounted to €100.3 million, which ranks Belgium 18th on the list of the countries

The two countries can further develop their production cooperation in the areas of metal processing, machine building, electronics, the chemicals industry and the food & agriculture sector

considered as the biggest non-resident investors during the period in question.

The National Bank of Serbia started to apply a new data collection methodology in January 2014. The results show that, in the period from January 2014 to March 2016, Belgium made investments worth around €15.7 million in Serbia, which ranks Belgium in 27th place on the

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list of the countries considered as the biggest net non-resident investors in Serbia.

Belgium companies have mostly invested in Serbia’s metal processing industry, renewable energy sources, the banking sector, the food & beverage sector and the construction sector.

There are around 30 companies in Serbia owned by Belgian companies

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Chocolate, Gothic, Beer Belgium can be a paradise for those who like Gothic art, those who do not shy away from beer or chocolate, or those who don’t care about a bit of introversion and grey clouds CULTURE

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elgium is, of course, a bit of a strange country, given that it was created as a “buffer zone” in a very “quaky” area between France, Germany and the Netherlands, with the clear aim of stopping the territorial claims of any side and ensuring peace. After the Kaiser broke the promise of guaranteeing Belgian neutrality in 1914, Belgium gained its third cultural, national and language community in 1919: the Germans.

Of course, the first two, the Flemish and the Walloons, could be roughly, but not entirely precisely, labelled as “Dutch” and “French”. But not entirely – that would be true only if we consider language. The Flemish and the Dutch are something like Austrians and Germans, or Moldavians and Romanians, or Montenegrins and Serbs. Don’t add the equals sign so easily, and don’t overemphasise the differences. However, it was precisely because the country is a federal monarchy, and precisely because each of the three groups has strong ties with neighbouring countries, that Belgium was perfect for epitomising the European spirit

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and, hence, the EU institutions are in Brussels. Brussels thus became a symbol for everything loved and loathed in the EU, from “harmonious capital” and “generous money-giver” to “centralist dictator” or “home of the unelected grey clerks”. But that does not lessen its charms.

Now the people seem to love Belgium's beauties, but in the 19th century the place was deemed gloomy. Joseph Conrad disliked Bruges and described it as “a place that looks like a coffin”.

Gloomy aesthetics were not so adored back then. However, Belgium was much brighter before that, or at least for some other people. Remember that Vincent Van Gogh moved from a dull Netherlands to a cheerful Flanders, and that the Flemish Renaissance was a boom in the history of art. The Hanseatic towns inspired Geoffrey Chaucer to mention Ypres and Ghent in his Canterbury Tales.

It was home to a thriving industry and one of the first countries to invent railway tourism and city trams, thus making its inhabitants the most mobile in Europe.

FACTS

HISTORY OF ART Remember that Vincent Van Gogh moved from a dull Netherlands to a cheerful Flanders, and that the Flemish Renaissance was a boom in the history of art. The Hanseatic towns inspired Geoffrey Chaucer to mention Ypres and Ghent in his Canterbury Tales.

Belgian culture has always been deeply marked by language and culture, and the Flemish fought hard to achieve equal rights for their Germanic culture, and that was a pretty rough battle, considering that for many centuries, and even today, French has been considered the most cultured and elite language in Europe and the world, let alone in Belgium. That is why we still have many people with French names and Dutch surnames, like Jean-Claude Van Damme (the Muscles from Brussels, of course) or Jean-Marie Pfaff (the famous goalkeeper). But, in addition to that, in today’s Belgium we also have many people of Italian, Spanish or Portuguese origin (especially in Wallonia), and many Congolese and Moroccan immigrants that make the cityscapes so lively. Now Flanders is richer than Wallonia, and the ethnic mix is amazing. So many beer brands, so much chocolate; so many nice cities, so many languages. And don't forget that Walloon French is the nicest variety of French that you can hear!

Well, it is rightly the capital of Europe, with all of its troubles and quarrels.

BELGIUM

Ž I K ICA MI L O Š E VI Ć

IN FOCUS

Peacefully Multicultural Four languages, three peoples, three regions

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our languages? Wait… shouldn’t we say “three languages”; Dutch, French and German? Yes, but there is also the Walloon language, a kind of French dialect that is sometimes recognised as a separate language. There is cordial but bitter rivalry between Flanders and Wallonia, with neutral Brussels in the middle. This epitomises it all.

Belgium recently received a not-verynice comment from Nigel Farrage that summarises all of Belgium’s painful complexes. It was something like “Belgium? You aren’t much of a nation, are you?” This resounded particularly painfully in the hearts of those Belgians who feel proud of their joint homeland, while it resonated quite cheerfully among Flemish and Walloon separatists. Indeed, this federal monarchy sometimes spends months struggling to form a federal government, which reflects the deep shift and gap between the two major communities, French (or Walloon) speaking Walloons and Dutch (or Flemish) speaking Flemish people. Germans aside, this is the burning problem in Belgium, which is a kind of miniature Bosnia. Of course, in Belgium they have some more peaceful mechanisms to resolve their misunderstandings.

With Belgium being formed in 1815,

in order to be neutral state able to resolve the bitter fights between its neighbours, it seemed like a pretty good solution. But that was before the Era of National States began in 1848. The mere existence of multinational states has been challenged since then. Belgium, however, is doing fine. Many other bi-national or multinational states – like Czechoslovakia, Yugoslavia and the USSR – have since been destroyed, while some others – like Bosnia or Cyprus – have gone through terrible times, but Belgium is doing just fine.

However, this does not change both the deep clinging to Brussels – as a shared binational region, “a future city-state”, like Washington DC, if Belgium doesn’t make it – and to the common mentality that distinguishes Belgians of all three language groups from those who speak the same languages in other countries.

And, indeed, just as Britain and America are “two nations divided by the same language”, so Wallonia and Flanders have much more in common than they are willing to admit. The Belgian spirit is more than the Manneken Pis sculpture.

The boy urinating into the fountain could be a symbol of the Belgian spirit of mocking all superpowers, but also their love for a calm life, their comic books, which conquered the entire world with

SPIRIT OF BELGIUM

Belgium remains one of the world’s richest countries, with an economy that must not fear any other

their subtlety, and their enjoyment of simple things, like tranquil nature, chocolate, beer and family, which surpassed the values of their flamboyant neighbours. It is true that if you travel from Belgium to Aachen, Maastricht or Luxembourg, you will see many more people in the streets, but Belgium’s charms lie in the shy smiles of girls passing by, their fierce fight for independence, their love for comedy in secrecy, their introversion, their love for their history and their sense of self-irony and introspection. In times when many people shout their minds aloud, this is a treasure. And it is good for our continent to have a capital that is sober and introverted, yet reasonable and smiling widely on the inside.

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BELGIUM

Ž I K ICA MI L O Š E VI Ć

IN FOCUS

Europe, of the Finest Kind TOUR ISM

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elgium might not be in the middle of Europe (some people say that Switzerland is in the middle, but they are totally wrong – it is not even Prague or Vienna, but rather the middle of Europe is actually somewhere between Budapest, Lviv and Kraków), but Belgium is precisely between the superpowers of Europe; right between France and the Netherlands, right between Germany and England. So, this accessibility from all sides makes it a popular tourist destination. Wherever you step, you are in Belgium. That’s a lot like Serbia, which is why the two countries shared the misfortune of failing to remain neutral in every major conflict.

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NUMBERS

10 MILLION TRAVELLERS Belgium is visited by 10 million foreign travellers annually and the tourist industry generates 2.8% of Belgium's gross domestic product, employing 3.3% of the working population (142,000 people).

An introvert, but in a good geostrategic position – not to mention the EU institutions and the omnipresent beer, cheese, art and chocolate. Together with comic books, this brings to life the child and the hedonist within us, even under such a gloomy sky

BELGIUM

IN FOCUS

Quite simply, they were along the way.

However, in tourism terms this is quite a good thing.

If we start talking numbers, we can see that Belgium is visited by 10 million foreign travellers annually and the tourist industry generates 2.8% of Belgium's gross domestic product, employing 3.3% of the working population (142,000 people). Two-thirds of visitors come from the larger nearby countries - France, The Netherlands, the United Kingdom and Germany, while there are also many tourists coming from Spain and Italy.

Belgium’s major tourist attractions are the Flemish cities: the “Big Three”: Ghent, Antwerp and, of course, Bruges, which is loved by the fans of the film In Bruges and hated by Joseph Conrad, as mentioned earlier. However, it seems that people now love the Flemish cities, and the hook is their new beauty in the era of new irrationalism. Of course, Brussels is the capital of Europe in a way, and there is no real globetrotter who has not visited the Belgian capital. The other attractions are Leuven and Mechelen, the Flemish Cities of Art, which attract many cultural tourists, while of course there are also Walloon cites like Liege or Charleroi, which have their own charms and beauty, and many sleepy towns in the valleys that are covered by fog in autumn, creating a beautiful image that this article’s author cannot forget. Spiked Gothic towers, dark brick walls… It is like a signpost for Britain in a way. Much of the tourism industry is focused either along the heavily developed coastline or in the Ardennes.

The coastal towns attract many sunbathers, and that is not as strange as it might appear to those of us looking from the south. The long sandy beaches, despite high tides and strong winds, are often bathed in sunshine and outdoor activities abound. It is not all about sun-

Brussels is the capital of Europe in a way, and there is no real globetrotter who has not visited the Belgian capital bathing and laziness, as there is something to be found in sailing, beach football and socialising. And it is quite charming that you don’t know if you will need a sweater, sun cream, an umbrella or sunglasses. It is just a different kind of beauty, and it is quite exotic and worth visiting.

Bruges, however, is perhaps the “crown jewel” of Belgian tourism. This veritable “Venice of the North” has many medieval buildings (the Church of Our Lady, the Beguinage, the old city gates etc.). Known regionally for its lace, it was the European Capital of Culture in 2002. And don’t forget the waffles of Liege, or gauffres liegeoises! They are

certainly one reason to come to Belgium.

Not to mention Leffe Brun, perhaps one of the world’s top beers, which, like many other beers, was initially made by monks in a monastery.

Belgium might be a tiny country, but its cultural diversity, with the Flemish coastline, cities of arts, the German-speaking city of Eupen and Wallonia’s Ardennes, with its dense forests and the world’s first ever spa town, called Spa, are worth visiting for quite a few days! Oh, yes, Spa was the first place where the aristocracy flocked to enjoy the hot mineral waters, hence the word “spa” became the generic name of all such resorts. Cute, huh?

CONVERGENT GROUP – BALKAN OFFICE DARISON D.O.O. Vlajkovićeva 25/1, 11000 Beograd, Srbija tel/faks +381 11 337 3969 e-mail: balkan.office@convergent-group.com e-mail: dmilosavljevic@darison.rs

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