AUSTRIA Business Partner - Continuity Despite Change by CorD Magazine

CONTENTS

07 08

HARD TIMES ALWAYS REVEAL GOOD FRIENDS

EXPECT CONTINUITY FROM VIENNA H.E. Nikolaus Lutterotti,Ambassador of Austria to Serbia

POWER RESIDES IN CONTACTS, TRUST AND DEVOTED WORK Nada Knežević, Director of the Austrian Representative Office of the Serbian Chamber of Commerce & Industry

PRIORITISING USERS’ NEEDS City Express

WE NEED TRADITION AND INNOVATION Adrien Feix, Director of the Austrian Cultural Forum (ACF) in Belgrade

WOOD IS OUR WORLD Melanija Pavlović, General Manager, JAF d.o.o. Nova Pazova

GETTING BACK ON A POSITIVE TRACK Erika Teoman Brenner, Commercial Counsellor, Embassy of Austria

MAINTAINING HIGHQUALITY STANDARDS Jelena Knežević, partner, Leitner&Leitner

SERBIA IS A RATHER EXOTIC MARKET Claus Graggaber, Erste Group Head of Commercial Real Estate Finance International and Managing Director of Sirius Offices Belgrade

SPARKLING BEAUTY Viennese Craftsmanship

ALIEN WORLD UNDER AUSTRIA’S DOOMED GLACIERS Science

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RELIABLE PARTNER TO CLIENTS, Dejan Turk, A1 Srbija and A1 Slovenija CEO

OUR COMMITMENT TO RETAIL PARK DEVELOPMENT IN SERBIA REMAINS Gerald Grüll, Head of Retail at IMMOFINANZ

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AUSTRIAN ETIQUETTE AND CULTURE HARD FOUGHT VICTORY

IMPRESSUM EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen mrpeditorial@mail.com

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs FINANCE Dragana Skrobonja finance@aim.rs

GENERAL MANAGER Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica GERMANY 2021 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com

www.aim.rs; www.cordmagazine.com No 33 ISSN: 2560-4465 All rights reserved alliance international media 2021 The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

THIS PUBLICATION IS FREE OF CHARGE

NOVOMATIC, RECOGNISABLE AS THE REGION’S FASTEST GROWING COMPANY Novomatic Group is a European leader and one of the world’s biggest companies in the areas of technology and games of chance. This group, which comprises around 350 international companies, has been recording success on the Serbian market for two decades already, through the recognisable Admiral Club and Admiral Bet brands. In the field of gaming technology, Novomatic is a leading manufacturer of gaming equipment that has approximately 4,700 intellectual property rights. Admiral Bet has positioned itself as part of a powerful brand that continues to grow in Serbia thanks to the opening of new betting shops, its unique offer, the best odds and a wide range of entertainment options, thereby setting new standards in this industry. Apart from providing excellent conditions for monitoring and betting on sporting events, Admiral Bet also offers a wide selection of state-of-the-art gaming machines, for which Novomatic is recognisable around the world. In an effort to link the company to the highest quality sporting competitions, Admiral Bet has become the title sponsor of basketball’s Admiral Bet ABA League, one of the strongest sporting leagues in Europe. This brand also became a sponsor of the Serbian national basketball league, the KLS, which unites fans of basketball across the country. As one of the world’s strongest nations for basketball, Serbia insists on a strong domestic league, and the quality of that league will be increased significantly with the help and sponsorship of Admiral Bet. Alongside all of this, Admiral Bet has used its new platform to bring together a large number of players and provide the opportunity to expand this “virtual” community through various promotions and bonuses. Moreover, in addition to its numerous betting shops, it has also enabled players to bet online, which certainly represents the future of Serbia. Admiral Slot Clubs, which have been synonymous with glamour and luxury for more than two decades, are unique in the region and are aimed at providing a great time for all visitors. With a unified, luxurious interior, lovers of games of chance will soon have an opportunity to voyage into this realm of fun at the new, exclusive Belgrade Waterfront location. Admiral Slot Clubs provide a unique atmosphere, cutting edge technology that’s always a step ahead of the competition and is recognisable for quality, which justifies the brand’s greatest representation in this area. During the period of the pandemic, the company retained its social responsibility policy and clearly demonstrated how much it cares about health and safety, but also about its employees who kept their jobs. In this way, and with strong relations of trust, the management plans to further penetrate and conquer the market.

NOVOMATIC AG |Novo Investment doo Japanska, 3a, 11000 Belgrade, Serbia, Europe www.novomatic.com | www.novoinvestment.rs

AUSTRIA 2021

COMMENT

HARD TIMES ALWAYS REVEAL GOOD FRIENDS Many European interlocutors, including Austrian ones, have highlighted the fact that Serbia quite often fails to demonstrate tangible and credible improvements in terms of the rule of law, judicial independence and media freedoms, to mention only a few of the various areas where visible improvement is needed. Without considerable progress on reforms, even the best wishes for EU enlargement cannot come true

onstant change is a sign of our times - nothing old is good enough and nothing new can last long. In contrast, good bilateral relations thrive as a result of continuity. Despite the change at the helm of the Austrian government, the new Austrian chancellor will continue the policy that has served to fortify relations between Austria and Serbia. Just like his predecessor, new Chancellor Alexander Schallenberg sees the future of the region as being in the European Union. This is indeed echoed in the CorD interview with Austrian Ambassador to Serbia H.E. Nikolaus Lutterotti, who put it this way: “We want to see an acceleration of the accession process. You can count on our continued full support.” This comes during times of two events with a centripetal force: news conveyed by agency Reuters that quoted diplomatic circles as saying that at least some EU member states have gone cold on the idea of accepting the countries of the Western Balkans into the EU; and the European Commission confirming that the future of the Balkans lies in the European Union. In that respect, the expectation that Serbia might open two

new chapters, after a long deadlock, sounds promising. And yet, friends wouldn’t be friends if they didn’t speak openly about the outstanding issues hindering Serbia’s EU path. Indeed, Many European interlocutors, including Austrian ones, have highlighted the fact that Ser-

between Austria and Serbia, where ever more Austrian companies are seeing Serbia as a good place to invest. Following the decline of 2020, there is a visible optimism that the bilateral trade exchange will again reach 1.5 billion euros in 2021, thus equalling the all-time high recorded in 2019.

On the basis of the latest EC assessment of progress achieved by Serbia in the accession process, it is evident that the country is moving forward in a positive direction when it comes to the market economy. This is certainly reflected in Austria-Serbia bilateral trade and the constant interest in investing in Serbia among Austrian companies bia quite often fails to demonstrate tangible and credible improvements in terms of the rule of law, judicial independence and media freedoms, to mention only a few of the various areas where visible improvement is needed. On the basis of the latest EC assessment of progress achieved by Serbia in the accession process, it is evident that the country is moving forward in a positive direction when it comes to the market economy. This is certainly reflected in bilateral trade

Furthermore, a delegation of Austrian businesspeople from Carinthia visited Serbia with the aim of expanding existing business opportunities here and exploring new ones. According to the Austrian Embassy, further efforts are to be exerted in support of the expansion of bilateral economic relations, with some old and new topics on the agenda: renewable energy, e-mobility, sustainability, digital transformation, infrastructure, urban technology and tourism.

AUSTRIA 2021

INTERVIEW

H.E. NIKOLAUS LUTTEROTTI, AMBASSADOR OF AUSTRIA TO SERBIA

EXPECT CONTINUITY

FROM VIENNA

New Austrian Chancellor Alexander Schallenberg has reaffirmed that the future of this region lies in the European Union. And we want to see an acceleration of the accession process. You can count on our continued full support ~ Nikolaus Lutterotti

n the eve of the adoption of the European Commission’s annual report, which has proposed the opening of two new clusters in Serbia’s EU accession negotiations, the Austrian ambassador reiterated that the speed of opening chapters depends on the speed of reforms implemented in the

candidate country. The final decision, which should be brought by the 27 EU members by the end of this year, will be influenced by the assessment of whether substantial progress has been achieved in the field of the rule of law, says Austrian Ambassador to Serbia H.E. Nikolaus Lutterotti in this CorD interview.

Your Excellency, given the latest developments on the Austrian political scene, could you explain to us what is meant by the “temporary resignation” of chancellor Sebastian Kurz? On 11th October, the new Austrian Chancellor, Mr Alexander Schallenberg, was sworn in by President

FOCUS

In his very first speech before parliament, Chancellor Schallenberg stressed explicitly the government’s continued focus towards the Western Balkans and the need to realise the region’s EU prospects

Alexander van der Bellen. And so was the new foreign minister, Michael Linhart. The coalition government will continue working on the basis of the existing government programme. As far as Austria’s foreign policy is concerned, you can expect continuity. In his very first speech before parliament, Chancellor Schallenberg stressed explicitly the government’s continued focus towards the Western Balkans and the need to realise the region’s EU prospects. The first visit of new Foreign Minister Michael Linhart led him to Bosnia-Herzegovina, a very clear sign of how dear and important not only Bosnia-Herzegovina, but also the whole region, is to us in Austria. The recent revelation of Reuters news agency, citing diplomatic circles, that there is no longer pan-EU agreement on enlargement to include the Western Balkans reverberated massively around the region. Do you believe there could be a scenario that sees the permanent suspending of the enlargement process? Frankly, I don’t see how a suspending of the enlargement process would be in the interest of the EU; it is also not in the interest of the candidate countries. The EU recently reaffirmed at the highest level that the future of the Balkans lies in the European Union. The visit of Commission President Ursula von der Leyen to the region was also a clear signal of the strategic importance of this region to the EU. But the enlargement process also requires a clear and unequivocal commitment from the countries of the region to adhere to the values, rules and standards upon which the European Union is founded. Candidate countries need to undertake and implement EU reforms. The more tangible and credible the improvements,

THE BRDO SUMMIT

ECONOMIC EXCHANGE

If you read the Brdo declaration, it becomes evident that the EU is by far the region’s closest partner, largest investor and principal donor

After a decline in 2020, trade is picking up again considerably this year. Austria continues to be the second biggest investor in Serbia

the faster the accession process will move forward. Austria has a very clear view on enlargement. That was reaffirmed by the new Austrian Chancellor Alexander Schallenberg: the future of the region lies in the European Union, as full members. And we want to see an acceleration of the accession process. You can count on our continued full support.

if you read the Brdo declaration, it becomes evident that the EU is by far the region’s closest partner, largest investor and principal donor. The EU decided on an Economic and Investment Plan amounting to 30 billion euros and EU member states agreed on the IPA III programme, which will provide funds totalling 1.1 billion euros over the next two and a half months, until the end of 2021. The EU has supported the Western Balkans resolutely in addressing the COVID-19 pandemic and its economic consequences, with 3.3 billion euros to date. The Brdo Summit also reflected the broad spectrum of areas of cooperation and support: implementation of the Green Agenda; enhancing the market integration of the Western Balkans with the EU Single Market; expanding connectivity; improving transport through the “green lanes”; lowering roaming costs between the EU and the Western Balkans; an innovation agenda; and deepening cooperation in the area of the Common and Foreign Security Policy.

How do you view the recent Slovenian proposal that EU enlargement to encompass the entire Western Balkans be accelerated and completed by 2030? How would you comment on the recent EU-Western Balkans Summit held in Slovenia?

The EU decided on an Economic and Investment Plan amounting to 30 billion euros and EU member states agreed on the IPA III programme, which will provide funds totalling 1.1 billion euros over the next two and a half months, until the end of 2021 We are grateful to the Slovenian Presidency of the EU for the enormous efforts and focus they have devoted to the EU accession process. We also believe that there is a need to send a clear message to the region that the enlargement process is not a never-ending process. Hence, we believe that it would be useful to have a clear timeline. Regarding the Brdo Summit, we believe that it provided a strong signal of the strategic importance that the region represents for the EU and for the EU’s commitment to the enlargement process. Moreover,

Despite support from countries like Austria, Serbia is not advancing in the EU integration process, as can be seen in the decisions of the European Council not to open any new negotiating chapters over the course of the past two years. What do you think are the reasons for this deadlock? The opening of new clusters depends on the progress of EU-related reforms. Besides the introduction of respective legislation, it is equally important to implement the reforms adopted. In the past years, there was no unanimity among EU member states on opening new chapters, also because of the assessment that reforms were insufficient, in particular when it comes to reforms related to the rule of law. 9

AUSTRIA 2021

INTERVIEW Do you share the concerns of some of your colleagues who cite the situation in the field of the rule of law and democracy as being among the reasons for the EU’s decision not to open new accession negotiation chapters with Serbia? The EU accession process requires credible reforms in the area of the rule of law and fundamental freedoms, including the fight against corruption, ensuring the safety of journalists and media freedom. Progress on these socalled fundamental issues, as covered by chapters 23 and 24, are crucial for each EUMS to assess whether to agree to opening new negotiating clusters or not. If Serbia continues its work and implements some of the reform efforts exerted in past months in the field of the rule of law, I am quite optimistic that it will lead to the opening of a new cluster. How do you see the latest developments in relations between Belgrade and Priština? 10

The “ReFocus Austria” programme aims to promote Austrian businesses and focuses on the core competencies of Austria’s economy: renewable energy, e-mobility, sustainability, digital transformation, infrastructure, urban technology and tourism The latest developments once more showed how important the dialogue between Belgrade and Priština is in order to build trust and normalise relations for the benefit of the people. The Brussels agreements need to be fully implemented. We trust in the efforts of Special Representative Miroslav Lajčák and give him our full support. Former chancellor Sebastian Kurz has said that Serbia is Aus-

tria’s most important economic partner in the region. How much has the COVID-19 pandemic impacted on our mutual economic exchange? Before the pandemic, trade between our two countries was developing very positively. With a trade exchange of 1.5 billion euros representing an all-time high in 2019. After a decline in 2020, trade is picking up again considerably this year. Austria continues to be the second biggest investor in Serbia. More than 400 Austrian companies are active in the country and provide over 22,000 jobs. Most of these companies have been in Serbia for a long time and pursue a long-term strategy. I was therefore not surprised that Austrian investors remained in Serbia throughout the pandemic. A few days ago, a delegation of Austrian businesspeople from Carinthia visited Serbia with the aim of expanding existing business opportunities here and exploring

Media recently reported on concerns from Germany and some other EU member states regarding alleged problems with regard to visa-free travel in Serbia and Albania. Do you believe the situation could result in the suspension of visa liberalisation?

Illegal migration remains one of the biggest challenges for the European Union, but also for us in Austria. There is a need to cooperate very closely and coordinate our response to this challenge, as we have done in the past. This includes the issue of visa-free travel into the region. In a September interview for the Italian media, then chancellor Kurz said that approximately 8,000 refugees arrived in Austria via the so-called Balkan route in 2021. What is this alarming statement meant to convey? It is crucial to remain vigilant and pay close attention to the development of migratory flows. We have witnessed an upsurge in illegal migration to Austria in 2021, mostly via the Eastern Mediterranean route. We have very close and good bilateral cooperation between Austria and Serbia, but also the other countries of the region, in the

area of migration, particularly through the Joint Cooperation Platform headquartered in Vienna. A contingent of nine Austrian police officers is working alongside the Serbian border police on the border between Serbia and North Macedonia.

AUSTRIA 2021

new ones. The Austrian Embassy will engage more intensely in the coming months to support the expansion of our economic relations and the recovery of our economies. The Austrian government, together with the Austrian Chamber of Commerce, has initiated a global economic outreach programme. The programme, called “ReFocus Austria”, aims to promote Austrian businesses and focuses on the core competencies of Austria’s economy: renewable energy, e-mobility, sustainability, digital transformation, infrastructure, urban technology and tourism.

How is implementation unfolding when it comes to the donation of a million vaccine doses against COVID-19 that Austria is set to send to the Western Balkans by year’s end. Which countries will receive these vaccines? So far, Austria has donated and delivered 500,000 doses of the AstraZeneca vaccine to Bosnia-Herzegovina, which was carried out in August. We are in constant contact with all countries of the region to assess the needs and requirements according to their vaccination strategies and priorities for the distribution of the remaining 500,000 doses.

AUSTRIA 2021

INTERVIEW

ERIKA TEOMAN BRENNER, COMMERCIAL COUNSELLOR, EMBASSY OF AUSTRIA

GETTING BACK ON A POSITIVE TRACK The Austrian companies operating in Serbia have managed the pandemic and its economic fallout very well. Furthermore, we are also pleased to report that there are a few new companies from Austria that have expressed interest in investing in Serbia in the very near future. We are therefore convinced that Serbia will continue to be an attractive investment location

t cannot be said that we are over the pandemic, but good news is definitely on the horizon. In this interview, Erika Teoman Brenner, Commercial Counsellor at the Embassy of Austria in Belgrade, shares some reasons for optimism. To summarise, she says that we can expect the upward trend in bilateral trade and investments to continued.

However, we mustn’t allow figures reflecting an upsurge to deceive us - further reforms to improve the business climate are still very much needed. According to your poll conducted in late 2020, despite the reduced turnover among 40% of the surveyed companies that operate in Serbia, 30% still planned to

invest even more over the next 12 months. Has that optimism been maintained throughout 2021? It is too early to make a final assessment of the investment expansions this year, but based on the information we receive from our companies, we can confirm that the Austrian companies operating in Serbia have managed the pandemic

RECORD

After a strong rebound in 2021, we can expect to surpass the record trade level of 2019 by the end of this year

and its economic fallout very well. We are also pleased to report that there are a few new companies from Austria that have expressed interest in investing in Serbia in the very near future. To summarise, we are convinced that Serbia will continue to be an attractive investment location. How have these developments impacted on bilateral trade and investments? What would be the final score for 2021? Our bilateral trade fell by approximately 14% last year, due to the crisis. This year we are witnessing a swift recovery, regarding both exports and imports. In the first six months of this year, Austrian exports to Serbia increased by 22%, whereas imports from Serbia to Austria grew by 13%. The structure of our trade has remained quite unchanged over the years and reflects the strength of both countries’ economies. We can expect the positive trend to continue and surpass the record trade level of 2019 by the end of this year.

PARTNERSHIPS

EDUCATION

In order to make the most of digital transformation in the context of recovery from the crisis, cooperation and new partnerships are more important than ever

After challenges due to the pandemic, we are confident that the dual vocational training programmes will advance again with the great support of companies

reduced. It is important to note that all the reforms that we’ve touched on in previous years would not only increase the confidence of foreign businesses in the Serbian market, but, more significantly, would serve to benefit domestic companies.

possible workforce shortages and how would they respond to that? Even during the pandemic, our companies in Serbia were actively looking for qualified staff. There are definitely some professions, particularly in the technical field, where they are starting to feel a serious shortage. Individual companies only have a limited number of tools at their disposal to respond to this situation: firstly, they have to be an attractive employer and, secondly, they have to invest in the continuous qualification of their workforce. On a more general level, we believe that it is crucial to create a certain public awareness that work-based learning opens up many new opportunities for young people who acquire skills that are relevant on the labour market.

We believe that it is crucial to create a certain public awareness that work-based learning opens up many new opportunities for young people who acquire skills that are relevant on the labour market The availability of qualified workers has been strongly attributed to the interest of Austrian investors for Serbia. Are the surveyed companies concerned about

What challenges have been faced by the implementation of

Although Austrian companies cherish the opportunity to work in Serbia, many critical points have remained the same year after year, despite the overall improvements of preceding years achieved thanks to reforms, such as those related to corruption and red tape. How do you explain this and what can be done? As you correctly mentioned, there has been quite an improvement in the business environment over recent years. We know that reforms take time and don’t come overnight, but our companies still think that there are a few areas where improvement is necessary. They feel that the rule of law should be strengthened, transparency increased and red tape 13

AUSTRIA 2021

INTERVIEW the dual education system during the pandemic and how does this influence the activities of Austrian companies? The companies certainly faced some challenges in light of the safety measures imposed due to COVID-19 and they had to readjust the organisation of their business. Moreover, the schools had to conduct their final exams for the 2019/2020 academic year under difficult circumstances, as they were officially closed. Although students neither went to school nor to companies for training, they were able to attend dual education classes on a daily basis via national television stations and other digital means. But we are confident that the dual vocational training programmes will advance again, with great support of the companies involved. Now that COVID has, in a way, become a new normal for us, could you predict future trends in bi14

lateral cooperation? Are we going to see more cooperation in digital transformation?

Austrian companies operating in Serbia feel that the rule of law should be strengthened, transparency increased and red tape reduced… If adequate reforms are applied, that would serve to benefit both foreign and domestic businesses operating on the Serbian market Although digital transformation started long before the emergence of COVID-19, the pandemic has definitely highlighted the increasingly important role of new technologies. Not only have they allowed us to work remotely, but they also help us to build new connections and conduct business

transactions. In order to make the most of the digital transformation in the context of recovery from the crisis, cooperation and new partnerships are more important than ever before. How have these changes affected the activities of ADVANTAGE AUSTRIA aimed at fostering bilateral cooperation? We are continuously re-evaluating our activities and services in light of the ongoing pandemic. We are relying more on digital meeting formats and try to encourage our companies to participate in the digital B2B events that we organise here in Serbia. While we definitely see encouraging results of our efforts to connect people online, we still think that there is a need to have a certain number of in-person meetings. Striking a good balance between all these different modes to promote bilateral cooperation is a challenge, but the more experience we gain, the better we will manage.

Thanks to its synergy with the A1 Group, A1 Serbia achieves better cooperation with other markets, exchanges of expertise and the possibility to offer its customers new, advanced solutions for the digital age. All this enables A1 to traverse, as smoothly and easily as possible, the path from a telecommunications company to a serious ICT company

t is expected that 5G will enable a significantly larger number of connected devices, which will contribute to the automating of agricultural processes and traffic, the evolution of digital solutions and an incomparably better user experience in all segments of private and business life.

ment of new and more complex services. In the majority of the countries of the region where the auction has been completed, the implementation phase is now underway, while in those places where 5G has already been introduced, such as Austria and Slovenia, for example, the impressions are positive.

When it comes to your company, 2021 has been marked by rebranding. Has that opened up new possibilities for you, as a strong international “player”? Synergy with the A1 Group has enabled us to have even better cooperation with other markets and exchange expertise, while giving us the possibility to offer the Serbian market new, advanced solutions for the digital age in which we live. This gives us a tailwind in being a reliable partner to our users and providing them with a stable and strong network and services, while at the same time helping them to find the best solutions for themselves. The results are already evident. We have gone even further when it comes to tariff offers, launching our own brand of devices, striding into the domain of internet security and increasingly paving the way for us to transform from a telecommunications company to a serious ICT company. The A1 Group’s support has enabled us to this year implement significant improvements to network infrastructure. We erected as many as 100 base stations in the first eight months of the year, increasing the network’s capacity by more than 70 per cent. The first confirmation of quality has also arrived from Ookla®, the global leader in mobile and broadband network intelligence, testing applications and technology. Speedtest®, Ookla’s flagship network testing platform, collects hundreds of millions of measurements about the performance and quality of

You recently awarded nine million dinars to projects for children within the scope of the “world you dream of” program. How much has been done in the first stage of the program and what can we expect next? The projects from the programme’s first cycle are currently in the implementation stage. Local communities throughout Serbia have already received devices for gauging air pollution, thanks to the project of the Internet Society of Serbia, and we will soon see the launch of the free educational programme on the topic of the visualisation and interpretation of data from the Loop Foundation [Fondacija Petlja]. The freephone line of the Centre for Mothers, “Mummy, how are you?”, will start functioning by the end of this year. The projects intended for children are expected to be realised next year. Thanks to the Zaigrani [Playful] Initiative, 100 nursery schools throughout Serbia will be equipped with unfinished ecofriendly toys that encourage creativity and learning. The Logo Centre will launch an application for children at an early stage of development, while within the scope of the educational programme Zasadimo život zajedno [Let’s plant life together], primary school children will learn about healthy habits and nutrition, and everything that they grow will be donated to Nurdor [the national association of parents of children suffering from cancer] and to children struggling with cancer.

During the first eight months of 2021, we erected as many as 100 base stations and increased the network’s capacity by more than 70 per cent networks around the world each day. Ookla declared A1 the fastest mobile network in Serbia for 2021, and we’re extremely proud of that fact. You announced recently that A1 will cooperate with Nokia on the introduction of 5G to Serbia. What kind of expectations do you have when it comes to this technology having in mind the experiences of other markets where 5G technology has already been implemented? What is most important for us operators, but also users, is that the new spectrum will increase the capacity of the network, which has practically reached its limit due to the significantly larger amounts of data transmitted over the last two years. Service delays will be reduced, which will spur the develop-

BUSINESS

RELIABLE PARTNER TO CLIENTS

AUSTRIA 2021

DEJAN TURK, A1 SRBIJA AND A1 SLOVENIJA CEO

AUSTRIA 2021

INTERVIEW

NADA KNEŽEVIĆ, DIRECTOR OF THE AUSTRIAN REPRESENTATIVE OFFICE OF THE SERBIAN CHAMBER OF COMMERCE & INDUSTRY

POWER RESIDES IN CONTACTS,

TRUST AND DEVOTED WORK Firmly established links between businesspeople, but also support provided to them selflessly by chambers of commerce and consulates, ensured that not a single job agreed with Serbian business leaders suffered even during the most difficult stages of the pandemic. This is illustrated clearly by the results of the trade exchange and potential investments reached again, if not slightly exceeded,” says Nada Knežević, director of the SCCI Austrian Representative Office. Cooperation between institutions, particularly chambers of commerce, was much more intensive throughout the entire period of the crisis than it ordinarily is under regular conditions, and all stakeholders engaged maximally in helping the economy, through exchanges of information and experiences, to grab a connection under extraordinary circumstances, explains our interlocutor. “I consider it a special success that every Serbian company that needed to send its workers to Austria during the period of the crisis in order to assemble their products and systems, as stipulated by their business contracts, was actually able to do that, despite numerous challenges.”

lthough cooperation between Serbian and Austrian companies during the COVID-19 pandemic was conducted in a way that was far from regular, the level of business cooperation was preserved thanks to the maximum engagement of companies. As such, the fall in the 16

trade exchange during 2020 was far less in the case of Serbia than it was with Austria’s other partners, as shown by data from the Serbian Chamber of Commerce & Industry (SCCI). “The trade exchange recovered quickly during 2021, and the pre-crisis period value of this exchange is expected to be

To what extent was it possible, under these conditions, to organise in-person visits and direct contacts between businesspeople from the two countries? The organising of these kinds of meetings wasn’t at all easy because, during certain periods, permission for movements was granted exclusively for pressing, urgent business matters. Receiving the consent of border authorities to enter the territory of the state, consent to move within the territory during permitted times or periods when movement was prohibited, was mainly achieved by the SCCI Representative Office engaging with the services of the Austrian Interior Ministry and other relevant provincial authorities. Every company that addressed the SCCI

CONNECTIVITY

CHANCE

COOPERATION

Bilateral economic and trade cooperation between Austria and Serbia wasn’t suspended even during the period of the most restrictive measures aimed at preventing the spread of the coronavirus

If any Austrian company were to seek a place to relocate production operations from a distant destination to one closer to Austria, Serbia has a great chance of enticing such investments

Mutual cooperation between the two chambers – starting from the highest level, via the representative offices, all the way to the economic branch sectors within the chambers – can be assessed as exceptional

or the SCCI Representative Office was provided with all the required information, as well as support in carrying out essential visits. Such activities certainly implied additional engagements, but nobody who had an urgent job to do was left without the possibility of doing that job. Businesspeople should also be praised for being very conscientious when it came to conducting visits and adhering to the stringent health conditions that they had to respect during their movements and work. A particularly extensive job was conditioned by the transiting of businesspeople through Austria towards other Western European countries, because movements were possible only by road during large intervals, but activities were conducted extremely successfully in this sense. It is also important in this regard to mention the close and very intensive cooperation with the consular department of the Serbian Embassy in Vienna, which engaged on these matters wholeheartedly. They worked 18-20 hours a day during individual periods, in order to monitor all the events, but - regardless of the stress and pressure that was a daily reality – the satisfaction felt after successful implementation nonetheless prevailed and also provided motivation for further work.

new investments, and which forms of cooperation showed themselves to be the most successful in the digital space? Despite the described challenges, one cannot say that the coronavirus impacted on new investments. Those investments that had already started, continued being implemented, though admittedly at a slower pace than previously planned. The Serbian market isn’t a complete unknown to Austrian investors, especially given that a very large number of Austrian companies already do business in Serbia. The crisis, which hit the transport and logistics sectors particularly hard, as well as the standstills present globally in terms of maintaining supply chains, can be freely said to have even led many Austrian companies to consider relocating their production facilities from faraway destinations to regions that are closer to their home country. Regardless of the importance for Serbia of continuing to entice foreign direct investments, including from Austria, I consider it very important to highlight the fact that, in recent years, we’ve seen a particularly pronounced interest in opening subsidiaries in Austria among Serbian companies. When Serbian companies decide to expand their operations to the market of the European Union, they most commonly choose to establish their companies in Austria. One of the

motivating factors for that is certainly the large Serbian diaspora present in that country, but the main logic behind such an investment is based, to the greatest extent, on the fact that a company that starts operating and selling successfully on the Austrian market can use Austria in its further steps as an excellent springboard for advancement and growth on the German market, which is ten times larger, or that of Switzerland, which is recognised among Serbian businesspeople as a very demanding and closed market. In this respect, the costs of entering the Austrian market come with the logical further growth of the company on a market that, viewed as a whole, is much larger, and in doing so they can utilise new resources within the parent company that were already established during the process of entering the Austrian market.

How did the fact that the number of contacts was reduced reflect on

How interesting a location is Serbia for Austrian companies when it comes to offshoring and nearshoring? It is not only Austrian companies, but also state institutions of the Republic of Austria, which recognised during this crisis the significance and importance of certain production capacities – especially key ones that have gradually “departed” to faraway destinations following defeat in the struggle for cheaper production conditions – being brought closer to the

STRABAG SRBIJA Milutina Milankovića 3b 11 070 Beograd / Srbija Tel.: +381 (0)11 2221-700 office.rs@strabag.com STRABAG SEVERNA MAKEDONIJA Mirce Acev 2, Skoplje-Centar 1 000 Skoplje / Severna Makedonija Tel.:+389 (2) 510-1800 macedonia@strabag.com STRABAG CRNA GORA Zetskih Vladara 5 81000 Podgorica / Crna Gora Tel.:+382 (20) 448-300 office@crnagoraput.me

www.strabag.com

AUSTRIA 2021

INTERVIEW

show that having a university degree is no guarantee that someone will be able to secure employment.

home country, or even returned to the territory of Austria. Serbia has great prospects for any Austrian company seeking a place to relocate production operations from a distant destination to one closer to Austria. In this regard, Serbia is benefited in particular by all the investments of previous years that it has directed towards the construction of road and rail infrastructure, where remarkable progress has been made. Although it was previously difficult to imagine Austrian investors investing in southern Serbia, as they were first and foremost interested in the region of Vojvodina, which was best connected by road, the situation now is such that several of the most recent major investments headed in the direction of Niš, primarily due to the strong development of infrastructure, but also the available workforce that still remains at their disposal in this region. How would you today assess experiences with dual education; what else can be done for this concept to be even more successful? The exchange of experiences between Serbia and Austria in this aspect is very intensive, while communication between the two countries’ chambers of commerce, which are to a certain extent 18

The instant opportunities emerge on the Serbian labour market that are similar to those represented in Austria or Germany, i.e., when we reach the juncture at which it is possible for someone with this kind of education to earn far more than someone with a university degree, then this type of education will be accepted without hesitation the carriers of this form of education, is particularly pronounced. Our country’s economy and the speed of its development are decisive factors that will dictate the pace at which this concept of education will develop in Serbia. Considering how many Serbian citizens are employed at German and Austrian companies that are already operating in Serbia, as well as the fact that a large influx of German investments is still expected, it is completely clear that this concept will gradually become more successful. The mental barrier preventing some schoolchildren from opting for this type of education instead of university studies will reduce over time, because time will

In which ways are the Serbian and Austrian chambers deepening their cooperation and what are the priorities of your future work? The economic areas and topics that the two chambers cooperate on are so numerous that it’s difficult to imagine an area where we haven’t at least established communication or exchanges of information. The Austrian Economic Chambers has a strong system that’s developed over decades and which, in and of itself, represents one of the most important pillars of Austrian economic development. Viewed historically, the Serbian Chamber of Commerce & Industry, despite being one of the oldest, has had different periods of rises and falls, but in recent years has undergone many structural changes that have significantly improved its work and, thus, its image. All the positive experiences that we can gain in exchanges with the Austrian Chamber are applied, but that is a process in which we must develop solutions that are suitable to our economy. Copying the system verbatim, 1:1, is not possible because, despite the great similarities between the two countries, there are also numerous specificities. Mutual cooperation – starting from the highest level, which relates to the two presidents, via the representative offices of the chambers that exist in both countries, all the way to the economic branch sectors that exist within the chambers – can be assessed as exceptional. Both chambers organise numerous events that create opportunities for companies to establish mutual contacts, create opportunities to exhibit collectively at fairs, submit and exchange all required information on opportunities for future cooperation, consider proposals for amendments to laws and additional measures to facilitate business operations. Apart from providing capacity building and reform support to the Serbian Chamber of Commerce & Industry, the Austrian Economic Chamber has provided, and continues to provide, financial support for projects that the two chambers work on together.

LeitnerLeitner offices work together closely and across borders – a principle that has been put into practice for more than 60 years. They think ahead with the aim of realising viable, innovation solutions for their clients

n order to enhance potential in the post-pandemic world, we should be prepared to react proactively and work together to build a more competitive business – maximising the strong side of our economy and minimising the weaknesses How important is it in your work that your offices work together closely and that you have excellent relations with consultancies? Our staff’s expertise and integrity play a decisive role. This rapid transfer of knowledge ensures that clients have the combined knowhow of our entire company at their disposal at all times. The areas of tax, audit and financial advisory harbour a variety of challenges, so it is very important to have an experienced expert at hand with whom you can discuss your individual topics at eye-level. We also cultivate close personal – and tried–and-tested professional – relations with a number of renowned consultancies. In this way, we can eliminate countryspecific risks and identify the best possible solution, even in complex situations. We strongly consider the outstanding technical skills of our team and high quality of LeitnerLeitner services as being key factors of our success in Serbia. Our consistently high-quality standards have also helped us achieve success and constantly increase our locations in the CEE and SEE regions. I am particularly proud that LeitnerLeitner, as a team, successfully overcome all challenges placed before us, whether from a legislative perspective and continuous amendments to legislation, or from the perspective of challenges related to the pandemic and the normal course of business.

BUSINESS

MAINTAINING HIGH-QUALITY STANDARDS

AUSTRIA 2021

JELENA KNEŽEVIĆ, PARTNER, LEITNERLEITNER

to implement the reforms necessary to attract both foreign and domestic investors, giving Serbia strong potential to maximise efforts to entice new investments. We are all part of one system and the problems of one impact on others – that’s why the business sector has to be united and active in legislative, fiscal and tax changes.

We strongly consider the outstanding technical skills of our team and high quality of LeitnerLeitner services as being key factors of our success in Serbia Judging by FDR inflows, it seems that our country enjoys great trust and a good reputation around the world. Do you think this trend will be sustained? LeitnerLeitner has numerous multinational clients who have already made huge investments in Serbia, while there is a significant number of those that are planning to launch new investments. Also, statistically, more than half of all FDI in the Western Balkans from 2010 to 2019 was made in Serbia, representing the highest amount in the entire CEE region. Serbia has taken important steps

The IT sector expanded during the pandemic and currently contributes almost as much to the Serbian economy as agriculture. Does this mean that it pays off the most to invest in these two branches of the economy? Throughout the pandemic, the IT sector expanded as a percentage of Serbia’s economy and global corporations have begun investing in the tech sector in Serbia. Together with agriculture, production and the automotive sector, ICT is becoming one of the pillars of the Serbian economy. Serbia ranks 40th on the list of the biggest software exporters globally. The COVID-19 pandemic has shown us how important food security is to all countries. Serbia stood out as a country with high independence and an excellent performance in the agriculture sector: production levels didn’t drop despite the state of emergency and lockdowns, while record results were also achieved in production and exports. With export growth of more than 14%, Serbia has also established itself as a regional leader in the agriculture sector. The further objectives should be to continue recordbreaking production in the agriculture sector and achieve even better results through raw material processing and the defining of a finance programme for production. 19

AUSTRIA 2021

BUSINESS

GERALD GRÜLL, HEAD OF RETAIL AT IMMOFINANZ

OUR COMMITMENT TO RETAIL PARK DEVELOPMENT IN SERBIA REMAINS our tenants throughout the pandemic. Our main competitive advantage is our focus on smaller towns and bringing new shopping trends to people living far from the capital and other major cities. Now they can find entertainment and a broad range of products with convincing cost-benefit ratios at their

Our STOP SHOP portfolio covers 100 locations in nine countries, with nearly 750,000 sqm of leasable space

hen the COVID-19 crisis first gripped the world, retail was among the sectors hardest hit. However, visits to STOP SHOP retail parks in Serbia quickly returned to pre-crisis levels and their operator, Austrian company IMMOFINANZ, even increased its locations from 10 to 14 last year, bringing fresh opportunities for price-savvy shoppers throughout Serbia. The biggest retail park developer in Central and Eastern Europe recently reached an occupancy rate of 100% in its Serbian portfolio, which encompasses facilities in Čačak, Lazarevac, Niš, Požarevac, Vršac, Valjevo, Sremska Mitrovica, Borča, Smederevo, Subotica, Leskovac, Šabac, Sombor and Zaječar. Gerald Grüll, Head of Retail at IMMOFINANZ, reiterates that this Austrian investor is here to stay and will further strengthen bilateral cooperation and economic growth with its upcoming investments.

With four acquisitions in 2021 and a 100% occupancy rate, it seems that 20

the pandemic hasn’t hindered the plans of IMMOFINANZ in Serbia. How do you see this? We are very proud of this full occupancy milestone and remain committed to our operations here. Retail parks have experienced something of a revival, proving to be the most successful and crisis-resilient retail format during the pandemic. They meet the need for more affordable products and offer an outdoor parking area with direct access to retail units, with low consumer density. STOP SHOPs in Serbia remained a safe place for shopping, so it was not much of a surprise that the turnover in 2020 was slightly higher than in 2019 in the overall portfolio, apart from lockdown days. What do you think was your winning formula? We believe our success is driven by a solid strategy and steady plans. We benefited greatly from both our focus on fair leasing and low operating costs, as well as active communication with

local STOP SHOP, without the need to travel an hour or two to the nearest shopping centre. These are some of the reasons why IMMOFINANZ has been recognised as one of the region’s most successful companies in the commercial real estate sector. You gave a promise in 2015 that you had come to Serbia to stay. What are your plans for this market? Our initial investment of 60 million euros in Serbia has grown to approximately 150 million euros and we certainly hope it will continue to grow. Our STOP SHOP portfolio covers 100 locations in nine countries, with nearly 750,000 sqm of leasable space. Further acquisitions and internal development projects are currently under preparation, with the aim of expanding to 140 STOP SHOP locations over the medium-term. The focus is on markets in CEE, Southeast Europe and Austria, as well as selective entry into other Western European countries. The CEE region currently offers the most attractive yields and prices in the retail business. Of course, Serbia remains an interesting market and we are constantly seeking new business opportunities in the country.

AUSTRIA 2021

City Express is a company that was founded in 2002 and has had its development and potential recognised among international companies interested in our market. It was in November 2007 that the ownership of City Express was transferred to Austrian Post [Österreichische Post], a leader of the parcel delivery sector in the CEE region

BUSINESS

PRIORITISING USERS' NEEDS

urrent development in the volume of operations is confirmed by the planned capacity expansion programme, which will take the form of the opening of new regional delivery centres and increasing the number of employees and vehicles.

How much has the COVID-19 pandemic led to your company’s operations changing? Petar Anđelić, Sales & Marketing Manager: In the initial period of the pandemic, we noticed a general fall in the number of shipments compared to the prepandemic period. We also faced a disturbance in the redistribution of parcels in part of the segment dealing with deliveries to private individuals and registered entities. Due to restrictions on citizens’ movement and the reduced working hours of retail outlets, major retail chains and retailers based their trade on the B2C model, with retailers selling their products directly to consumers. This had a positive impact on e-commerce, which influenced the growth of our operations, and such a trend is continuing. The first half of 2021 was still impacted by the pandemic, but it was very successful on the whole. Compared to the huge burdens in the background during the same period of last year, the volume of operations increased in the first half of 2021. With this good result, City Express has raised its expectations for 2021 as a whole. You began as the country’s first private company for express deliveries and will celebrate your 20th birthday as a company next year. This been an exciting 20 years, right? Goran Blagojević, Finance Manager & Procurator: The company was founded in 2002 and has been under the ownership

FROM LEFT: GORAN BLAGOJEVIĆ, PETAR ANĐELIĆ AND MARKO ČUČUROVIĆ

We are proud of the fact that we’ve been a member of the CEE parcel division of Austrian Post for almost 15 years of Austrian Post from November 2007. Since then, major investments were made in the modernization of all sectors of the company, raising the quality and introducing new services. With modern logistics software, the electronic tracking of shipments, automation of the packages processing and constant investment in personnel, the level of service has been raised significantly. We are proud of the fact that we’ve been a member of the CEE parcel division of Austrian Post for almost 15 years and that we’ve managed to set standards, which are aligned with the group’s strategy. Together we facing various challenges and sets priorities and goals, at present, we actively participating in a sustainability project, in which common aim is to switch to alternative sources of electricity, electrify the fleet and reduce our CO2 emissions. You don’t only succeed in delivering about 97% of shipments to their destination

within 24 hours, but also work constantly to introduce new services and improve existing ones. What is your secret? Marko Čučurović, Logistics & QM Manager: Numerous new solutions introduced to operations and processes have enabled optimal and modern services, as well as strongly assisting in the growth of e-commerce. Our development strategy places the focus of all changes on the needs of users. In order for us to respond to the needs of both users and the market, we have offered flexible shipment deliveries – through the Parcel Shop network of facilities, where it is possible to pick up and deliver a parcel. City Express is currently in the process of precuring ‘paketomat’ parcel pick-up vending machines, which will enable the sending and receiving of shipments 24 hours a day through a network of ‘paketomat’ machines set up nationwide. By investing in new, top-class PDAs [personal digital assistants] manufactured by Zebra, we will offer two new services from the beginning of 2022: announcements of the impending arrival of shipments, with expected delivery times; and payments for reclamation and transportation services via payment cards. 21

AUSTRIA 2021

BUSINESS

MELANIJA PAVLOVIĆ, GENERAL MANAGER, JAF D.O.O. NOVA PAZOVA

WOOD IS OUR WORLD Austria’s JAF Group represents one of Central Europe’s largest wholesalers of wood-based panel materials and timber. It has been operating in Serbia since 2008, and during that time has earned a reputation as a reliable distributor, which – alongside quality – ensures the delivery of a wide array of products throughout the entire territory of Serbia. With a programme of renowned suppliers, its warehouses succeed in responding to all the demands of the furniture and construction industries. JAF Group opened its Serbian subsidiary with headquarters in Nova Pazova, while it has had a modern exhibition space in New Belgrade since 2019 turnover exceeding a billion euros, 58 subsidiaries in 18 countries - what else do we need to know about JAF? It is interesting to mention the historical data about the way a small family business, established in 1948, developed, advanced and grew its business over the years to become a major corporation. “JAF” is an abbreviation of the names of the founders - Josef and Antonia Frischeis, whose descendants are still in the business today. The founder had a vision and strategy to expand his business eastwards, so the business developed in such a way that JAF is known for its professionalism in many Balkan and Central European countries, and is also recognised as a reliable partner. “Wood is our world” represents the guiding notion that runs through our business.

AF is a partner that you can rely on at all times. In its machining centre in Nova Pazova, the company offers customised service cutting, edging, material processing with a CNC machine, as well as cutting, joining and veneer press services. JAF continues to achieve exceptional results in Serbia, led by General Manager

Melanija Pavlović, a graduate architectural engineer who continues to share and upgrade her many years of experience with JAF’s entire team in Serbia. The JAF Group is Austria’s largest supplier of wood panel materials and timber. Apart from the impressive figures - 75 years in existence, a

You sell only high-quality products made by renowned manufacturers. Do you manage to satisfy the needs of the market even under conditions of rising demand? The Serbian market is demanding, as are many markets in the region, but also in Austria. Our portfolio encompasses sales of plywood, refined plywood, raw plywood, MDF, veneers, compact panel boards, decking, timber, natural wood etc. 2020 was a year that brought numerous challenges that confronted the world for the first time, but also JAF Group. We thought that 2020 was the toughest year, but 2021 has proved to be even more demanding in a different way. Price hikes and shortages of raw materials impacted on increasing the prices of panelling materials and wood in general, as well as the extending of

delivery deadlines on the part of suppliers. Considering that we are a large corporation and have good networking, we succeeded in meeting all of our customers’ needs and procuring enough goods, even during these challenging times of increased demand. Our mission is to be close to the customer and to be a reliable partner in doing business. Have you managed to return your operations to regular flows after the shock of 2020 and what do you predict for the period ahead? We managed to end 2020 successfully, although forecasts had been pessimistic in May, given the outbreak and development of the pandemic. 2021 began in a new rhythm, with increased demand, and has so far yielded results that exceed those planned. The period ahead will be more than challenging, considering the situation with shortages of numerous raw materials or delays in their delivery. This has a major knock-on effect on the final products that we distribute or supply. Timely planning is needed, and efforts to ensure that the warehouses are filled with goods so that we have something to offer the market and our customers. The close and intensive cooperation between JAF and Austrian institutions in Serbia is based on the constant advancement of operations, working conditions for employees and other segments that contribute to constant growth and development. How much does their support mean to you? We, as representatives of Austrian capital in Serbia, have excellent cooperation with the Embassy of Austria and the commercial department of the Embassy of Austria. We are grateful for the support that we receive from H.E. Nikolaus Lutterotti and Erika Teoman Brenner. Thanks to the initiative of Advantage Austria and the Serbian Chamber of Commerce & Industry, we have joined the Dual Education programme in order to help educate and advance young people, providing them with secure employment and enabling them to remain in Serbia. Our industry has a staffing shortage and we have a constant need for professional personnel who can gain

Thanks to the initiative of Advantage Austria and the Serbian Chamber of Commerce & Industry, we have joined the Dual Education programme in order to help educate and advance young people, providing them with secure employment and enabling them to remain in Serbia the knowledge and experience required to work in the furniture industry through high school education. You are proud of the company’s rich tradition, while you are simultaneously focused on the future and the world of innovation. Is that precisely why JAF is number 1? If you don’t follow the trends in business, then you lose step with business. The market dictates the rules and we respect and adapt to those rules. Technology is advancing, design and raw materials are changing, and with that also the final products. Daily innovations also have an impact on various segments of our operations. By monitoring trends, our innovation team has developed online platforms that enable our partners to operate more efficiently. A great advantage is that customers have access

to our “Online Shop”, “Veneer World”, “Decorfinder” and others. JAF is a socially responsible company that takes care of its customers, employees and operations. JAF is number 1 as a reliable partner that, through its operations and support, guarantees high-quality and consistency for its customers. Since the establishment of its Serbian subsidiary, JAF has been striving to provide its customers – apart from high-quality goods -- with the assistance and support of wood technology and forestry engineers, as well as expert advisors. Is it difficult to find skilled workers and to what extent do you succeed in motivating your employees to stay with JAF for many years? We are proud that ten engineers work at our company, thanks to whom our customers receive high-quality technical support and advice on the selection of materials and systemic solutions for their projects. It isn’t easy to find qualified workers and we are struggling with staff shortages. Many companies have opened subsidiaries in the Municipality of Stara Pazova over recent years and everyone needs workers. People comprise business and it is necessary to invest in people through working conditions, insurance, education, and assured and timely earnings. Our employees are our strength and the drivers of our development. 23

AUSTRIA 2021

BUSINESS

CLAUS GRAGGABER, ERSTE GROUP HEAD OF COMMERCIAL REAL ESTATE FINANCE INTERNATIONAL AND MANAGING DIRECTOR OF SIRIUS OFFICES BELGRADE

SERBIA IS A RATHER EXOTIC MARKET Erste is very active in Serbia’s real estate sector and is known as a reliable partner for financing real estate projects. Its aim has been to contribute to developing Serbia’s market on a long-term basis, as the group considers commercial real estate as being part of a country’s critical infrastructure

hen it comes to logistics, we believe that Belgrade has all the potential to become a central hub for the Balkans, as the city is strategically located at the intersection of a number of pan-European corridors - says Mr Graggaber

station and having a number of bus and tram stops on the plot, providing direct access to the Ada and Gazela bridges. In the meantime, Sirius Offices has become the national headquarters of several international companies from various industries, such as Erste Bank Serbia, Strabag or Milenijum Osiguranje. At the same time, we have pursued an attractive tenant mix that includes a number of smaller tenants related to IT and shared services. The project also incorporates a supermarket and two stylish restaurants. Last but not least, the site benefits from Sirius square, which spreads over an area of 2,300m2 and provides an area for relaxation, communication and events for tenants and visitors.

Can you tell us why Serbia is an interesting market for Erste? At Erste Group, we always take a long-term view. We financed our first real estate project in Serbia almost 15 years ago. Back then, the main segments of the country’s real estate sector – namely retail, office, industrial and tourism – were underdeveloped and Serbia was seen as a rather exotic market to many banks in Western Europe. Since first entering the Serbian real estate market, we have financed projects worth more than half a billion euros, covering all segments. We still see opportunities and will support our clients in their future endeavours. You are also part of the management of Sirius Offices Belgrade, a project that you have developed with your subsidiary Erste Group Immorent. Why did you choose Serbia to invest, and to become a real estate developer yourself? Immorent is a 100% subsidiary of Erste Group and has been a project developer for 50 years, both in Austria and around the CEE region. More than 10 years ago, Immorent set up Immorent Singidunum, its own project company in Serbia, and acquired land in New Belgrade. That area in Milutina Milankovica Street, 24

Sirius Offices has become the national headquarters of several international companies from various industries formerly known as the 3rd Boulevard, had been rather vacant and wasn’t very appealing back then. This has changed significantly over the last 10 years and we believe that we’ve contributed to that change to a considerable degree. The location of Sirius Offices is now one of the most attractive corners of New Belgrade, being right next to the train

How do you see the future of the Serbian real estate market? We believe that the real estate market has shown healthy development over previous years and that it will continue to offer attractive opportunities in the future. None of the segments have experienced a dramatic valuation increase, therefore returns are likely to remain attractive and sustainable. While the market for shopping centres in Belgrade is experiencing some saturation, we still believe that there is potential for this segment in secondary cities across the country. There is currently a low vacancy level in the office market and we expect continuing demand for office space, mainly from the IT and R&D sectors. We at Erste are committed to Serbia and its people, and we will continue providing our contribution to the country’s ongoing positive economic development.

AUSTRIA 2021

AUSTRIAN

ETIQUETTE AND CULTURE Every country has its own quirks and it can be useful to understand them. Getting to grips with Austrian etiquette and culture can help you engage properly with locals and ensure that your business dealings go well. Because of this, you should pay attention to the nuances of social niceties in the country

enerally speaking, Austrian etiquette and society follows the norms of Germany. This means that Austrians are polite, formal, and have a level of reserve. They also follow many of the same languages, religions, and traditions as Germany. Catholicism is an integral part of Austrian society. However, the Austrian constitution enshrines freedom of religion and there are many minority religions in the country.

German is the official language of Austria. As such, 98% of Austrians speak German as their native language. Of course, there are also many regional dialects within the country. Nevertheless, speaking German will bring you far more social and business opportunities. However, some regions recognize Croatian, Slovenian, and Hungarian as official languages, too. This is because they see an influx of immigrants from these countries. Additionally, most local schools teach English as the main foreign language.

Austria is a largely egalitarian society. Whether discussing gender, class, or other divisions, Austria offers a greater degree of equality than many other countries. In fact, on the Power Distance dimension, Austria scores 11, which means that the country places emphasis on equality and participative communication. As a result, it has a very strong social welfare system that covers health, education, employment, and retirement needs. Politically, Austria is a very democratic society. As a Federal Republic, it has a parliament made up of five political parties that include conservatives, liberals, and greens. All Austrians can vote from the age of 16. Perhaps because of its reasonably diverse political landscape, patriotism does not play the same role in Austria as it does in other countries such as the United States. In addition, anti-immigrant and anti-Islam sentiment is on the rise in Austria and has become a recent political flashpoint. As a result, these groups are sometimes marginalized in society. Although the traditional class system is now far less prevalent, it does still exist to a certain extent and is largely built across economic lines. GENDER ROLES IN AUSTRIA In Austria, both genders are more or less equal. This is especially true among the younger generations. In fact, Austria’s constitutional law protects gender equality. As such, Austrian etiquette generally sees that women and men are treated the same in society. Nevertheless, there are still some inequalities. For instance, while women are certainly gaining pace in education and employment, there is still a significant gender pay gap.

In fact, statistics show that 19.2% of women aged between 25 and 64 hold an academic degree. Conversely, only 15.9% of men do so. Similarly, in 2019, the employment rate of women from 15 to 64 years was 69.2%, an increase of 4% over the past 10 years. That said, 2018 figures show that women are still earning 20.4% less than men. Despite this, traditional gender norms often still prevail in Austria. As such, this is still a country of nuclear families where men are the head of the household. However, younger urban couples are becoming more equal, with men becoming more involved in household chores and childcare. Additionally, government assistance is pushing gender equality in the home. For example, when having a child, parental leave can be split between the mother and father, enabling women to return to work. MEETING AND GREETING PEOPLE IN AUSTRIA Austrian etiquette dictates a certain level of formality in social situations. This is because most Austrians tend to be more reserved, at least until they feel a level of connection with others. Therefore, formal greetings are very much the norm. As such, you will find that handshakes are very common. Generally, you will shake someone’s hand when you first meet them, and certainly in business settings. In addition, you should offer formal verbal greetings, such as “Guten Morgen” (good morning), “Guten Tag” (good tag), or “Guten Abend” (good evening). But, informally – or between family and good friends – women might lightly hug or offer two light air kisses on the cheek. You can also add verbal greetings such as “Hallo” (hello) or “Servus” (hi). Because of the formality of Austrian etiquette, you should always greet Austrian people with titles. This is especially true in business meetings. Try and use professional titles, if available – like “Doktor” – or “Herr” (Mr). In general, first names are only used with friends, family and people you know well. Austrian etiquette also dictates that you should never show up at someone’s home without warning. Instead, you should always call ahead and make plans to visit someone in their home.

ans also love enriching conversation, so try to avoid banal small talk about the weather (unless it is especially pertinent). Instead, try and engage people in topics they are interested in. Of course, being a rather conservative society, there are also some topics that you should avoid. This includes WWII and the Holocaust, because they are still very sensitive topics in Austria. Migration is also a divisive topic, so be careful with this.

CONVERSATION AND COMMUNICATION IN AUSTRIA Once again, Austrian etiquette requires a certain level of reserve in conversation. In general, you should expect a formal, polite style of communication. That said, with better acquaintance, this should become more warm and open. Similarly, Austrians tend to be very direct, honest, and straight to the point. However, this is tempered with a subtle – often cynical – humor. You should also remember that Austrians don’t tend to ask personal questions until they know you quite well. When it comes to conversational topics, you can never go wrong with talking about Austria’s stunning natural beauty and regional diversity. However, Austri-

CLOTHING AND DRESS CODE IN AUSTRIA Austria’s Catholic traditions mean that people here tend to be quite conservative and this applies to their dress sense, too. They also dislike attracting attention to themselves. As such, you won’t usually see very skimpy or overly outrageous outfits. Instead, aim for quiet elegance and sophistication. You should also remember that Vienna is separate from the rest of the country, and people tend to dress up more for the opera or theatre, so feel free to go all out. You can never be overdressed for these occasions. In general, casual dress for women involves dresses or skirts in summer or pants and sweaters in winter. For men, pants and collared shirts are always appropriate. In addition, Austrians usually favor dark, solid colors or simple patterns. Athletic gear is also frowned upon, as are sneakers and Birkenstocks. For business, men usually dress formally. This means dark suits with a dress shirt and tie. Similarly, women favor conservative dresses or a skirt suit.

AUSTRIA 2021

CITY OF VIENNA AGAINST AIRBNB

HARD FOUGHT VICTORY After a long fight, the Vienna Housing Councillor has finally won a victory against Airbnb, which is now forced to remove all apartments in the city belonging to social housing from its website. Furthermore, the platform decided to cooperate with the City by revealing data on the number of rented apartments and watching for possible breaches, though it remains to be seen whether this action will be lasting or short-lived

he love between Airbnb and Vienna is mostly a bitter one. It was more than two years ago that Vienna was among the ten European cities (Amsterdam, Barcelona, Berlin, Bordeaux, Brussels, Krakow, Munich, Paris and Valencia) that asked the EU for help in fighting the expansion of Airbnb. The cities also didn’t much like other holiday rental websites, as they felt soaring rental prices were pushing locals out of their own neighbourhoods. As an example, Palma de Mallorca voted to ban almost all listings after a 50% increase in tourist letting led to a 40% rise

in residential rents. Back in 2016, over 11,000 apartments in Vienna were already being offered through Airbnb and 2,000 apartments were constantly rented, thus making them inaccessible to normal tenants. This prompted the City, that same year, to amend its Tourism Promotion Act in order to force people to pay taxes on income earned from short-term sub-letting, even if they only did so occasionally. Along with writing letters to the EC, by the end of 2018 the City of Vienna had also amended the Vienna Building Code to render short-term letting – including through rental

services like Airbnb – illegal across large areas of the city. This decision was in line with pre-existing rules stipulating that only up to 20% of a building’s floor space can be used for non-residential purposes in residential areas. The 2018 alteration stated that commercial use for the purposes of short-term leasing does not qualify as residential use, thus prohibiting such rentals. However, apartments in residential zones were allowed to be rented (even on a short-term basis) if the owner or head tenant continues to use the apartment for their own purposes. That is to say that a student was permitted to rent

a spare room or an entire apartment during the summer break, provided they will return. Fines for violating these rules were set at up to €50,000, to be split between the tenant and the owner(s) of the building if they failed to inform the tenant about such restrictions. Apart from being worried about the deteriorating of neighbourhoods, City officials also complained that those renting out apartments via Airbnb often avoided paying the relevant municipal tax, thus depriving the City of important revenue that would otherwise be used to support domestic tourism. The new rules were meant to oblige Airbnb to cooperate with the City in gathering these taxes. However, as these actions failed to yield promising results, the City last year took legal action against Airbnb listed apartments in community housing. The subletting of municipal housing was already prohibited, but it took almost two years for City officials to push platforms like Airbnb and Booking.com to delete all advertisements related to council housing addresses. The City told the platforms that they would be held accountable for such breaches of the rules if community housing continues to be offered. Finally, as reported by local media, in mid-October this year Airbnb removed all Viennese municipal apartments from its site. Given that social housing accounts for a large proportion of apartments in Vienna, this was an important move. The final decision came when Vienna’s Commercial Court confirmed that city-owned apartments could not be rented on platforms like Airbnb. And now only apartments which clearly state that they are not among municipal-owned apartments can be shown on Airbnb. Airbnb itself decided to comply, while also introducing measures intended to support “responsible tourism” in Austria. Airbnb also finally agreed to grant Viennese authorities access to its data in order to ensure that the rules are followed, to regularly remind Austrian users of the

Airbnb agreed to allow digital registration for hosts, which already exists in countries like France, the Netherlands and Spain, as well to publish figures on Airbnb’s usage in Austria for tax purposes rules and to remove any listings in violation of those rules. Airbnb agreed to allow digital registration for hosts, which already exists in countries like France, the Netherlands and Spain, as well to

publish figures on Airbnb’s usage in Austria for tax purposes. Furthermore, the company introduced a hotline for neighbours to directly report suspected illegal rentals or disruptive parties occupying a rental property. Nonetheless, it remains to be seen whether this action will be lasting or short-lived. As is well known, Wiener Wohnen — Europe’s largest property manager owned by the City of Vienna - already banned subletting via Airbnb, but not all tenants have obeyed those rules. It is therefore believed that opposition to the changes will be strong and persistent. 29

AUSTRIA 2021

INTERVIEW

ADRIEN FEIX, DIRECTOR OF THE AUSTRIAN CULTURAL FORUM (ACF) IN BELGRADE

WE NEED TRADITION

AND INNOVATION

The fact that the European capital of culture is a non-EU city is quite unique. As such, this is a great opportunity for Novi Sad, and for Serbia, to present itself, but also for us to show our culture, values and connections, and to show that European engagement in Serbia is real

Jelena Jorgačević

here are two important anniversaries related to relations between Serbia and Austria this year: 185 years of diplomatic relations between the two countries; 20 years of the activities of the Austrian Cultural Forum (ACF) in Belgrade. This provided a good starting point for our conversation with ACF Belgrade Director Adrien Feix. And we used this opportunity to discuss various topics:

contemporary art, which remains in the focus of this institution around the world; environmental issues and Serbian responses; the importance of language to developing a genuine understanding of other cultures; the significance of tradition and the limitations it presents; new ACF projects, particularly those that will be implemented in Novi Sad during its tenure as the European Capital of Culture for 2022.

Considering this year’s anniversaries, how would you describe the current juncture, i.e., present relations between our two countries? In the context of 185 years, it is always a very small frame that you can look at and work in. This long relationship has sometimes been good and sometimes worse, but has been very close most of the time. We, as the Austrian Embassy and as the Austrian Cultural

forum, are now making sure that these enduring cultural relations stay alive and are constantly filled with new life, and not just to build them up on the basis of a strong tradition and famous names. If you ask me to characterise the present period, I would describe it as a period of great activity in Serbia and Austria. We are facing new challenges in this strange time of COVID-19, but it has also brought us a lot of new creativity, new art forms, new ways to communicate art and engage with the public. Our goal is to constantly connect our two cultures under these circumstances. You noted that cultural relations shouldn’t be limited by a strong tradition. The slogan of the ACF is also “izVan tradicije”, which is a play on words in Serbian meaning simultaneously from and beyond tradition. So, how can these two be reconciled? It is one of the usual contradictions that has to be reconciled – innovation and tradition. There is always a fine line between these two. Art, science and culture have to move along this line. They can neither fall into the recreating of tradition nor into something entirely disconnected from tradition, because they will lose the context and their connection to the more general population. So, you must be on the edge, and that is where we are trying to be, or at least what we are encouraging people to do. Our slogan is “izVan tradicije” because it covers the need for both, and it makes the exchange work. With regard to this mission, what do you consider as being the most important and valuable work of the ACF over the previous two decades? We are proud of the 20 years of the Austrian Cultural Forum in Belgrade, which is a comparatively short period when you look at the institutes of other countries that are here, but I think that we have a slightly different role. Our focus is almost exclusively on contemporary forms of creation,

contemporary art, literature and film. This represents a certain counterbalance to the traditional image of Austria around the world. In which areas do you see room for improvement? Besides the basics of our cultural work here, we try to venture into other fields. One of the issues is environmental sustainability, which is multifaceted and connects social, technological, scientific and political issues. It is different in each country.

We, as the Austrian Embassy and as the Austrian Cultural forum, are now making sure that these enduring cultural relations stay alive and are constantly filled with new life, and not just to build them up on the basis of a strong tradition and famous names. If you ask me to characterise the present period, I would describe it as a period of great activity in Serbia and Austria

In Serbia it has to do with air pollution, sustainable city planning, traffic etc. We are going into these areas. For example, we are supporting projects related to theatre and ecology, like the Dancing Trees project. Another important topic for us is digital humanism, which is a sort of new buzzword, but which is actually essential for the future of civilisation. It encompasses all questions related to the power of technology, large companies and social networks; the issue of facial recognition, databases that

can have your DNA and all kinds of personal characteristics… It deals with the issue of how to place humans at the centre of a world that is possibly going to be shaped by technologies, and how to understand and control that world. What are your impressions when it comes to the political, social and cultural responses to issues of environmental sustainability in Serbia? It is no secret that Serbia is facing a lot of challenges in the field of ecology. That is the first step. The question is what you do further with this insight. In general, countries that are 31

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of Contemporary Art in Novi Sad. We will also have an exhibition on climate, aimed at enabling younger people to better grasp the issues of climate change. Otherwise, we will have lots of concerts and a very intensive programme in September and October covering the fields of literature, music and theatre. The fact that the European capital of culture is a non-EU city is quite unique. As such, this is a great opportunity for Novi Sad, and for Serbia, to present itself, but also for us to show our culture, values and connections, and to show that European engagement in Serbia is real.

in a similar situation always have a lot of trouble making real change, which is also noticeable in Serbia. Development in the field comes a bit later, after economic and social development, i.e., it is the second phase of development that follows huge confrontation, collisions of various interests etc. It is extremely difficult to make improvements if you lack a widespread consensus that something needs to be addressed. Could you tell us more about current and future AFC projects? On the occasion of 20 years of the ACF in Belgrade, we have a very big project called “At A Second Glance”, which started as an online platform where artists from Serbia and Austria could submit their works, video works, images and paintings on the topic of clichés and prejudices between our countries. We have decided to now 32

You must be on the edge, and that is where we are trying to be, or at least what we are encouraging people to do. Our slogan is “izVan tradicije” because it covers the need for both, and it makes the exchange work switch the format to the real world. There is an exhibition and Austrian artists are coming to Serbia… We had the Austrian Film Festival in October, which was the first edition after a long break. Next year we will have another geographical focus – Novi Sad, the capital of culture. We will be very present there and our programme will be announced during November. There will be one major exhibition of feminist avant-garde at the Museum

Finally, you have been learning the Serbian language for some time now. There are a lot of people in Serbia who are learning German, and that number is increasing. In your opinion, does knowing the language reveal some nuances that cannot otherwise be comprehended? And does it change the way you are accepted here? Although language education is not our focus in Serbia, we engage here with the faculties of philology and philosophy, where German is taught. And we have a lot of projects, especially with the German language department in Belgrade. Students come here to do translation work with us; we have a competition in literary translation. We also have connections and projects with schools where German is taught. I am convinced that knowing even a few words of someone’s language opens a new layer of communication. For me, knowing the language signifies the whole way of thinking and being. You cannot really understand a culture without knowing the language(s) there. The assumption that you can bypass this by doing what we are doing now – speaking English – is a mistake. Lingua franca conveys certain messages, but it does not convey the subtexts and so many nuances. I think it is essential that lots of people here learn German and for us, as diplomats, to learn Serbian.

AUSTRIA 2021

VIENNESE CRAFTSMANSHIP

SPARKLING BEAUTY New York’s MoMA collects it, star chef Alain Ducasse serves it, the best designers create it, and people all over the world treasure it everyday: glassware made by Vienna manufacturer J. & L. Lobmeyr sparks universal fascination.

ounded in 1823, this family-owned Viennese glassworks draws on six generations of research into the properties of crystal. This dedication and the resulting expertise have made Lobmeyr creations highly revered and sought after, renowned for their elegance and exquisite craftsmanship. Throughout the past two centuries Lobmeyr has moved with the times, letting cultural developments influence its designs to reflect the wants and needs of its clientele.

AUSTRIA 2021

In 1883, Lobmeyr and Thomas Edison made the first electric crystal chandelier for the Vienna Hofburg Palace. Another highpoint was the equipping of the great mosques of Mecca and Medina in the 1970s. Recently, the company renovated the crystal chandeliers of the Metropolitan Opera in New York. It’s the little differences that make Lobmeyr glassware what it is. Before

The magic of glass is that, although it is made from one of the most basic, common minerals on the planet, silicon dioxide, it can be transformed into something highly precious by skill alone being sold, for example, the glassware has gone through at least 24 pair of hands and four separate quality controls, the last of which is always by a member of the family. The mastery of the Lobmeyr glassblowers is world-renowned for their craftsmanship. This can be seen in their creation of thinly delicate muslin glass. Less than a millimeter thick, it creates a incomparably fine connection between mouth, glass and drink. Lobmeyr glass designers are painters, architects and designers. Around the turn of the century, those were Josef Hoffmann or Adolf Loos, today it is Stefan Sagmeister, Ted Muehling and Marco Dessí have created their own designs amongst others. The magic of glass is that, although it is made from one of the most basic, common minerals on the planet, silicon dioxide, it can be transformed into something highly precious by skill alone. ‘This is the essence of it; what we are all about,’ explains Leonid Rath, one of three acting partners of the family business. Today the company offers a full range of forward-thinking contemporary designs and archive-inspired creations, catering to the broad and expanding tastes of consumers and collectors around the world and frequently collaborating with leading artists, architects and designers. A purchase from this establishment will encompass both beauty and value for years to come. 37

AUSTRIA 2021

SCIENCE

By Lisi Niesner

ALIEN WORLD UNDER

cientists are venturing inside otherworldly ice caves growing beneath Austria’s doomed glaciers to study why they are melting even faster than expected, and understand the fate that will befall glaciers elsewhere if climate change is not halted.

It is already too late to save the glaciers of the eastern Alps, which scientists now say are past the point of no return and will be gone completely in the next few decades. The eerie blue caverns beneath them hold clues as to how the ice -- which built up over millennia and

melted over decades -- collapsed far faster than expected. That could help communities that depend on glaciers in other parts of the world to better manage their decline. “We can’t do anything anymore for eastern Alpine glaciers. But here we can see what happens if we do noth-

AUSTRIA'S DOOMED GLACIERS ing for the other glaciers,” said Andrea Fischer, who brought a photographer into the caverns beneath the Jamtalferner glacier in the Tyrolean Alps, towering above the Austrian border with Switzerland. The Jamtalferner is among Austria’s 30 largest glaciers and one of

10 where scientists take very precise measurements annually, documenting the now irreversible decline. The hollows are eroding the glaciers from within, as warmer air and meltwater come into contact with ever more of the ice, until it collapses. “These holes are a typical sign of

collapse that we observe. It is also a reason it happens so quickly - the ice is completely eroded and this process is not visible from the surface, then suddenly it all implodes,” Fischer, acting director of the Austrian Academy of Sciences’ Institute of Interdisciplinary Mountain Research.

AUSTRIA 2021

AUSTRIA Business Partner - Continuity Despite Change

Articles inside

SPARKLING BEAUTY Viennese Craftsmanship

ALIEN WORLD UNDER AUSTRIA’S DOOMED GLACIERS

WE NEED TRADITION AND INNOVATION

AUSTRIAN ETIQUETTE AND CULTURE

HARD FOUGHT VICTORY

SERBIA IS A RATHER EXOTIC MARKET

OUR COMMITMENT TO RETAIL PARK DEVELOPMENT IN SERBIA REMAINS

PRIORITISING USERS’ NEEDS

MAINTAINING HIGHQUALITY STANDARDS

POWER RESIDES IN CONTACTS, TRUST AND DEVOTED WORK

GETTING BACK ON A POSITIVE TRACK

WOOD IS OUR WORLD Melanija Pavlović General Manager, JAF d.o.o. Nova Pazova

RELIABLE PARTNER TO CLIENTS, Dejan Turk, A1

EXPECT CONTINUITY FROM VIENNA