Belgium 2015

SPECIAL EDITION

“WORLD’S MARKETS AND OPPORTUNITIES”

BELGIUM

2015

INTERVIEW

H.E. LEO VINCENT M. D’AES, BELGIAN AMBASSADOR TO SERBIA

Bilateral relations between Serbia and Belgium are increasingly related to the process of Serbia’s gradual integration into the European Union. On the other side, there is room for stronger activity in the field of trade and, in particular, economic relations

Economic Cooperation Could Increase H .E. Leo Vincent M. D’Aes arrived in Serbia a little over a year ago and immediately engaged in many bilateral activities – in high-level political or military consultations, parliamentary contacts, cooperation with the Ministry of Foreign Affairs in the EU, on OSCE matters, or in the fields of culture and academia. However, the focus is naturally on bilateral relations related to Serbia’s EU accession process.

“As one of the founding members of the European Union, we welcome Serbia, in the spirit of the 2003 conclusions of the Council of the European Union in Thessaloniki, which reaffirmed the full and effective support of the European perspective of the

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Western Balkan countries, which will become an integral part of the EU once they meet the established criteria. In our bilateral relations, therefore, we naturally view Serbia as a future member of the EU, seeking the best possible ways to help Serbia achieve this ambitious, noble objective,” says H.E. Leo Vincent M. D’Aes, speaking in this interview for CorD. We are witnessing a stalemate in the

European integration process. Does Belgium consider that conditions have been met for the opening of individual membership negotiation chapters?

- Together with the Commission and other Member States, we regularly take stock of

WORLD’S MARKETS AND OPPORTUNITIES

Serbia’s progress, in a spirit of “strict and fair conditionality”: what has been agreed must be carried out, but assistance is available, according to well-defined criteria. This basic understanding is functioning well, but it takes place in difficult times, in an economic or geopolitical sense. In this context, the European Union is faced with ever-increasing demands for assistance, or to assume responsibility in almost every sector of society.

This clearly illustrates its relevance, weight and mission, but equally the need to define priorities and take consecutive actions. I do not consider that as an impasse in the European integration process, but rather an exercise of consolidating the acquis of more than 60 years of gradually building peace

and prosperity, and deciding on how to best deal with this changing European continent – not just politically, but also with regard to the economy, the environment, energy, and – first and foremost – the burning social issue of unemployment.

Are you an optimist when it comes to

the possibility of Serbia opening at least one chapter in 2015?

- As I mentioned, we faithfully apply strict and fair conditionality. In this spirit, the opening of a chapter is entirely possible this year.

How do you rate Serbia’s efforts to be-

come a pillar of regional stability?

- I think we all appreciate the recent regional diplomatic initiatives, for example in relations with Albania, in which historic high level meetings have taken place. The EU-sponsored dialogue with Pristina is another example of difficult but courageous outreaching. Stability means reassuring citizens, including the business community, that mistrust is being overcome and gradually replaced by common efforts to jointly tackle

ever-increasing socio-economic challenges.

The key to success is sustaining these efforts, and Serbia’s active involvement in regional forums, like the WB-6 or the Berlin process, is a good sign of such engagement.

Serbia has been the focus of world at-

tention due to its complicated situation in Kosovo. Can the Kosovo issue advance and,

EU actively sponsors the dialogue between Belgrade and Pristina.

It seems that Belgium and Serbia are

also connected in terms of their governments’ introduction of austerity measures.

Belgians strongly opposed the reducing of pensions and extending of the retirement age. We also have this problem in

We all appreciate the recent regional diplomatic initiatives, for example in relations with Albania, in which historic high level meetings have taken place if so, in which segments - with a view to the division between Flanders and Wallonia?

- The peaceful and harmonious coexistence of communities is a noble and fundamental objective which we all have to promote, wherever we are in the world. But every situation is different and I think it is inappropriate to compare the Kosovo issue with the Belgian state system, in which three linguistic communities live together peacefully. We are heartened by the fact that the

Serbia, while there is a global question about what the price of economic reforms should be. How do you view this?

- Getting the state’s financial house in order is a long-term, permanent undertaking. The Belgian authorities began tackling this seriously in the early ‘80s and every year we have to take measures to keep the budget deficit under the prescribed three per cent of GDP, but it is a rewarding effort if you remain persistent and consistent and, in the

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end, you get international credit for that, both in the literal and the broader sense.

You know what? I recently learned that as a result of the so-called selective recruitment policy in our public sector, initiated five years ago, the number of civil servants in our federal departments has fallen by 17,000 staff members, or 11 per cent. And we are planning to maintain this effort by replacing only every 5th retiring civil servant.

So, very tangible results can be achieved.

The question of adapting the pension system, taking into account notably the evolving demographic situation, is a sensitive topic, of course, but it is a debate that cannot be avoided. In Belgium we have seen this coming for a long time, so I think there is a mental readiness to make an effort on all sides, provided that the weakest are protected.

supermarkets are of Serbian origin, thereby contributing greatly to the development of the local economy.

We have other examples of success, like Metech in Smederevo, Carpet Land, Puratos, Blockx, Carmeuse, Agfa and TVH, to name but a few. I think more Belgian investment is certainly possible, for example in the

Where do you see room for the im-

provement of bilateral relations between our countries?

- In the field of trade and economic relations, in particular. Belgian business leaders are looking for Serbian partners to establish small-scale joint ventures for the mutual benefit of safeguarding employment in Belgium and creating employment in Serbia. In order to intensify such relations, we must not wait for the miracle of “growth” to happen, but rather the reverse: contribute to small-scale local development and encouraging SMEs to invest prudently, creating modest but real prospects for local prosperity, which is the best way to jointly tackle the root problem of unemployment.

If we start from economic cooperation

and investment, the most well-known Belgian example is the arrival in Serbia of the Delhaize retail chain. Are you satisfied with this investment; and could this company’s experience open the door to other investors from your country?

- The investment made by Delhaize is a major one indeed: worth about a billion euros and creating direct employment for more than 11,000 people. The new distribution centre, which was formally opened by Prime Minister Vučić in November last year, represents an additional investment of €50 million and further employment for nearly 400 Serbian workers. Moreover, 70% of so-called “Private Brands” on sale at the 400 Delhaize

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extent are regions free to pursue their own agendas when it comes to bolstering growth. Are there any lessons Serbia can learn in order to accommodate the needs of its diverse regions?

- The three regions (Flanders, Walloon, Brussels-Capital) have indeed a wide socio-economic autonomy since 1980. It allows them more flexibility in exploiting the different assets they have and want to promote in order to attract investments or increase the competitiveness of their enterprises. On the other hand, national coordination mechanisms, like the important High Council for Finance, keep the overall financial and fiscal situation of the country as a whole in check. It is also quite clear that any regional decision must be in absolute conformity with international obligations, notably EU legislation.

The power of the purse should cut both ways: the regions can spend, but need to assure good economic governance, just like the state. A main lesson is that decentralisation is good in order to increase local responsibility and initiative, but must not lead to costly additional bureaucracy.

Two of your predecessors fell in love with

Serbia and still come back to Belgrade?

Belgian business leaders are looking for Serbian partners to establish small-scale joint ventures for the mutual benefit of safeguarding employment in Belgium and creating employment in Serbia agro-industry. This, in my opinion, is a basic pillar of the Serbian economy which should get full attention and support through a constructive cooperation between foreign investors and local partners and authorities.

In order for foreign entrepreneurship to succeed, it needs encouragement and support. In this respect, the experience of Energo Zelena, the state-of-the-art Belgian plant in Inđija for transforming dangerous animal by-products/waste into energy products (thereby combining food safety, environmental protection and alternative energy production), shows that there is room for improvement.

How does Belgium coordinate the de-

velopment of its regions and to what

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- Yes indeed, my predecessor decided to continue living in Belgrade, while his predecessor bought a house in South Serbia, where she stays during many months of the year. This confirms the hospitality, open mindedness and friendly attitude of the Serbian people. My first year in Serbia has been intense, lively and very enjoyable. The way Serbia is gradually moving towards the EU, and the delicate but necessary improving and strengthening of intra-regional relations, are two major, fascinating themes of professional interest. In the coming year I would like to develop and broaden our bilateral relations equally outside Belgrade, into the countryside, which is lovely and filled with potential for partnerships in all fields. ●

CORPORATE

EDUARD RUTTEN, DIRECTOR, METECH

New “Competence Centre” in Smederevo Photo by Nataša Cvetković

members continuously receive all the necessary training and education! And Metech people also invest time in education after their working hours.

Metech is an example of a successful merger between a Belgian mother company, in this case METES, and its Serbian investment, METECH. The Smederevo based company invests continuously in new equipment and the education of its workforce

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n 25th April this year, Belgian company “Metech” opened a new production facility in Smederevo and launched a new project to assemble products for company “Agfa”. With its own engineering, programming, sheet processing, shading in bending, welding and painting departments, in which it has invested €17 million, Metech exports around 95 per cent of its high quality products to clients in all European markets, including compressors, telecoms equipment, printing machines, heating, airco, construction products, health, pharma, diamonds and others. ● You’ve been in Serbia since 2008. In which domains do you see the most significant effects of synergy between the parent company in Belgium and your firm in Smederevo?

There is a good feeling between the two companies when it comes to working together. The synergy is the language of knowledge, the drive to go forward and try to find a solution. They know that there is “a better way to follow every time”.

● Recently, after a series of investments in equipment, you decided to expand your company in Smederevo. What are the key advantages of doing business in Serbia and, in addition to expanding capacities, does it imply a transfer of knowledge and technology to Smederevo?

We created a new “competence centre” in Smederevo and that is an intangible investment that we are implementing now. First

● Which industries do you work with and which market segments do you target in Serbia?

At this moment we are working for all industry markets in Europe, like compressors, telecom, printing machines, heating, airco, construction products, health, pharma, diamonds… there is no limit at present. Everybody who needs sheet metal products or a total concept is welcome at Metech Serbia.

I think we must wait a little bit in order for new companies who are coming now to find a good match between us. ● Are you satisfied with the support you receive from the state and local government, and where do you see room for further support to be provided for investors?

The state and local government do their job and try to help us if they can. The state provides support when it comes to connections between the world of work and the world of education.

Schools are ready to accept our support in terms of innovation and investment in knowledge and practical education.

The open issues are streamlined administrations at all levels, with clear procedures, and

The state provides support when it comes to connections between the world of work and the world of education, but it should do more to ensure clear procedures at all levels of administration comes investing in people, then in machinery, and finally in the buildings and space.

We feel that customers are coming because we organise the best solution to meet the needs of professional consumers in Smederevo.

We know that our investments are long-term, as are our people, and we trust that they will stay and grow together with Metech. Metech’s staff

then we can bring more investors to Serbia. At present Serbia is losing a lot of time and money without improving value for the country. Every year more than 40 business leaders from Europe come to visit Metech and Serbia to see what the possibilities are, and every time they are surprised how many potential opportunities exist here. ●

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ANN-VERONIQUE MORTIER, INVESTMENT AND TRADE COMMISSIONER AT THE OFFICE OF THE COMMERCIAL ATTACHÉ, EMBASSY OF BELGIUM

COMMENT

Strategic Partner for Companies Belgian companies from all three reagions are welcome to find market information on Serbia and Montenegro at the Belgrade office Our office represents the three regions of Belgium in Serbia and Montenegro and the three regional agencies specialised in foreign trade - Brussels Invest & Export (http:// www.invest-export.irisnet.be/), Wallonia Foreign Trade and Investment Agency (www. awex.be) and Flanders Investment and Trade (www.flandersinvetsmentnadtrade.com).

We offer the following services to Belgian companies: research of local markets and information on potential local partners (importers, distributors, agents etc.); preparation of individual visits of potential local partners (logistical support, agenda etc.); general market information (statistics, information on sectors and industries etc.); general information on local legislation (custom tariffs, procedures, local laws and regulations); and a whole set of information on fairs, tenders and bids; information on establishing a business in Serbia and in Montenegro and others. Our services offered to Serbian companies include: information on potential suppliers from Belgium; general market information about Belgium; contact information for Belgian authorities and institutions; information on fairs and trade events in Belgium and contacts with Belgian foreign trade promotion agencies.

BRUSSELS INVEST & EXPORT Brussels Invest & Export is the foreign trade and foreign investment department of the Brussels Region Public Service (BRPS). It falls under the auspices of Brussels Economy and Employment, one of the six administra-

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tions that make up the BRPS. Since 30 May 2011 it combines the responsibility for promoting Brussels’ exports.

Brussels Invest & Export works on behalf of the economic development of the Brussels-Capital Region by fulfilling a two-fold mission: helping companies from Brussels to expand into international markets and prospecting among foreign companies and assisting them in planning their strategic relocation to the capital of Europe.

The Brussels Invest & Export team consists of some 40 employees in Brussels and

from joint ventures to technology transfers. At another level, Flanders Investment & Trade enhances Flanders’ position as the gateway to Europe for inward investors. The agency identifies, informs, advises and supports overseas enterprises by establishing production and research facilities, contact centres, headquarters, logistics operations and the like in Flanders, the northern region of Belgium.

This broad focus on international entrepreneurship, involving outward trade as well as inward investments, requires not only

Our office represents the three regions of Belgium - Brussels, Wallonia and Flanders - in Serbia and Montenegro, as well as three regional agencies specialised in foreign trade relies on a network of more than 90 economic and commercial attachés, posted around the world and covering nearly 150 countries.

Services are completely free of charge.

FLANDERS INVESTMENT & TRADE Flanders Investment & Trade agency promotes sustainable international business, in the interest of both Flanders-based companies and overseas enterprises. Whatever sector you are involved in, FIT will help you establish contact with the Flemish companies you are seeking. This includes not only products or services you may be sourcing, but also various types of business relationships,

WORLD’S MARKETS AND OPPORTUNITIES

thorough knowledge of the Flemish economic essence, but also an extensive worldwide network beyond Flanders.

AWEX The Wallonia Foreign Trade and Investment Agency (AWEX) is the government agency in charge of export promotion and foreign investment attraction for the Wallonia Region of Belgium. AWEX has two main missions. The first is export promotion: helping Walloon companies expand abroad, while the second main mission is investment promotion – attracting foreign investment to Wallonia. ●

CORPORATE

DEJAN JANČIĆ, DIRECTOR, CARMEUSE

150 Years of Experience Carmeuse is one of the world’s major producers of lime and lime-related products, with more than 150 years of experience and a proven track record of long-term vision and sustainable business.

We operate successfully in over 20 countries worldwide, with production operations in 80 locations and more than 8,000 satisfied clients.

Our first investment in Serbia was preceded by serious and thorough market analysis of the country and its potential for our business, says Dejan Jančić, director of Carmeuse. ● As a leading global company in the lime industry, what made Carmeuse decide to come to Serbia?

We recognised Serbia as a good place to invest. Carmeuse has a long-term focus and our expectations are based on long-term plans. The Jelen Do factory has great potential and we think it will become a strong asset. We intend to stay here, as we have demonstrated through our immediate investments in the new kiln and a number of projects aimed at improving technological and environmental standards, as well as the health and safety of our workers. We see Belgrade as a regional centre, from where we coordinate all activities related to our companies in neighbouring countries, and where we will establish a small office base. ● Two years ago you came as an investor in Serbia. How do you see the situation in Serbia with respect to your investment?

We came to Serbia via our 2013 investment in Jelen Do, with later additional investment in our production capacities, which we have improved significantly in a technical

sense, replacing out-dated production processes with the most advanced technology available, which is in line with global trends and meets the highest EU standards. This will help us manage the cost base of the production process and also comply with increasingly stringent environmental laws and regulations.

Our goal is to operate in a safer and greener working environment and develop the skills of our employees. Carmeuse is committed to continuing and further developing its business in Serbia. ● Carmeuse also has production operations in neighbouring Bosnia-Herzegovina. What do you plan when it comes to the region?

The addition of the Jelen Do plant furthers

The region has key industries that use our products and we think that we should produce them here the capacity of our production network, allowing us to serve more customers and provide back-up production in the event that any issues arise. The wider use of modern technology

also provides room for production quality improvements, which will benefit our customers.

Our production and supply network are much stronger now and we are able to offer customers the highest possible service in terms of quality and reliability. We plan to open the office in Belgrade soon, which will be a regional centre providing commercial and administrative support in production and supplying customers in the region. ● As part of heavy industry, in what way do you manage environmental protection?

One of the main drivers in the decision to invest in installation of a new kiln was the environmental aspect. In addition to this investment, our company plans new investments to further reduce air and water emissions and improve waste removal from the factory, plus many others. Carmeuse is committed to operating in an environmentally responsible manner and is prepared to make the required investments to ensure that happens. ● Your raw materials are supplied to key industries in the country. Who are your key partners? Where does lime have applications?

The lime industry is significant because it provides a key raw material without which it is impossible to operate in other important industries. In Serbia we cooperate with about 300 clients. Our biggest partners are EPS, RTB Bor, Zelezara Smederevo, TE Nikola Tesla, etc.

Lime is used in the metallurgical industry – RTB Bor and Zelezara Smederevo need lime for their production processes; water treatment is impossible without lime – drinking and waste water; construction cannot do without lime – the construction of roads and railways, as well as construction of new houses, buildings and apartments. ●

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BELGIUM & SERBIA

ECONOMIC COOPERATION AND INVESTMENT

Growing Interest Among Belgian Companies

The trade exchange between Serbia and Belgium is on the rise, while investments

by Belgian companies are more widespread in many branches of economy, providing the basis for the improvement of cooperation

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otal trade between Serbia and Belgium in 2014 amounted to $466.3 million, which is 24 per cent more than in 2013. The Kingdom of Belgium is among Serbia’s most important foreign trade partners. Among the 165 countries to which Serbia exported products in 2014, Belgium was ranked 18th in terms of export value, while Belgium was ranked 20th among the 202 countries from which Serbia imported products. We mostly export raspberries, bags for packaging, medicines and tobacco, while importing polyethylene, medicines, vehicle body parts, road tractors for semi-trucks, cotton vests and cables.

The upward trend of this exchange was interrupted in 2009, due to the financial crisis, but the period before and after that time is marked by continuous growth of trade and inflows of Belgian investments. A rise in both directions of the trade exchange was recorded in 2010, but values did not reach the 2008 level. According to the results for 2011, Serbian imports from Belgium amounted to $218.3 million, while Serbian exports to Belgium totalled $133.8 million.

Similar trends were recorded in the following two years. However, Serbia has traditionally maintained a negative balance in the

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exchange of goods with Belgium throughout the whole period.

The coverage of imports by exports in the goods exchange with Belgium was constantly on the rise until 2009, when the global economic crisis interrupted this trend. In 2011 we see the growth of this indicator once again, with an improvement of the trade balance with Belgium.

The possibilities for industrial cooperation between Serbian and Belgian entrepreneurs can be found in the area of production cooperation, especially in the metal

cent of imports. Among other forms of business worth mentioning is breeding, which accounted for exports of about 8 per cent and imports of around two per cent.

There are currently around 60 companies with Belgian capital, or representatives of Belgian companies, present in Serbia.

The most significant Belgian investment in Serbia to date was the acquisition of 100 per cent of the foreign companies’ share of the Delta Maxi Group for a total of €932.5 million, including net debts of approximately €300 million.

Some pioneers among Belgian companies in Serbia are Energo Zelena in Indjija, the most modern power plant that converts animal waste into renewable energy using

Serbia mostly exports to Belgium raspberries, bags for packaging, medicines and tobacco, while importing polyethylene, medicines, vehicle body parts, road tractors for semi-trucks, cotton vests and cables processing industry (mechanical engineering, electronic industry, production vehicles), but also in the chemical industry and agri-food sector.

The dominant form of economic cooperation between Serbia and Belgium at present is classic trading, which accounts for over 80 per cent of exports and more than 90 per

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a 100 per cent organic method, Metech, a manufacturer of premium metal products in the Smederevo Free Zone, international company Puratos, headquartered in Brussels, which offers a complete range of innovative products and expertise in applications for the bakery, patisserie and chocolate goods sector, which has been present in Serbia

since 1989, when Belgian products first appeared on the market. A Serbian-Belgian subsidiary company was established in 1997 and since then Puratos has been operating via four regional centres in Serbia, last year opening its own Innovation Centre in Zemun.

There are also Carmeuse - Carmeuse Jelen Do - a Belgian group of companies that provide products based on calcium for multiple use in everyday life, Blockx, Europe’s leader in the production of jumbo bags for packaging, which employs more than 100 people in Bački Petrovac, while in the IT

Serbian partners. In May 2013, the Serbian Office for European Integration and the Belgian-Serbian Business Association presented Serbia and its opportunities at a workshop in Brussels dedicated to the “Danube Strategy” and organised by the Agency of Flanders Investment and Trade - FIT and the Walloon Agency for Export - AWEX. The workshop was attended by more than 100 representatives of companies from Flanders and Walloon that are interested in investments in the wider Danube region. The greatest interest was in cooperation with

In March this year representatives of seven Belgian companies specialised in the distribution and production of fresh fruits and vegetables held talks with their Serbian counterparts on the possibilities of joint projects sector Guidance and ITAF are present, in the production of floors there’s Kenzai Group, the area of outdoor lighting has Schroeder and Windvision has invested in the field of renewable energy sources.

The newcomer to Serbia is INDEC - Industrial Engineering and Contracting - a company that provides engineering and implementation services for clients from industry and for public companies. The same group also owns SADE and Veolia Water Solutions & Technologies, which operate in the field of engineering services for water management. Medi-Earth is a Belgian company that provides equipment in several areas: medicine, environmental protection and agriculture. There is also independent international law firm ALaw Attorneys.

The last two years have seen visibly increasingly interest among Belgian companies when it comes to doing business with

Serbian companies in the sectors of trade, services and manufacturing.

In March this year representatives of seven Belgian companies specialised in the distribution and production of fresh fruits and vegetables held talks with their Serbian counterparts on the possibilities of

Trade exchange between Serbia and Belgium, in million USD

Export to import ratio, in % 80 60 40

59.01 59.18

45.24

66.55

61.29

74.36 55.18

57.19

45.17

300 200 100 0 -100

20 0

joint projects. Within the context of a twoday visit of a Belgian economic delegation, bilateral talks were held at the Serbian Chamber of Commerce between companies of the two countries. The Belgian delegation consisted of the heads of seven companies (DBS-DBS AGRO DSF, BEL’EXPORT, CALSA, VANCO BELGIUM, VERGRO, BOUSSIER J and BELFRUTEX) that all specialise in the distribution and production of fresh fruits and vegetables.

During their stay in Belgrade, which was organised by the Commercial Section of the Embassy of the Kingdom of Belgium in cooperation with the Flemish Association for the Promotion of Agriculture - VLAM and the Serbian Chamber of Commerce, these Belgian business leaders visited retail trade chains Delhaize and Mercator, where they were familiarised with conditions for doing business. The delegation visited the Belgrade Wholesale Market, greenmarkets and retail outlets in the DIS and Aman retail chains.

During the B2B talks, representatives of Serbian companies from the fresh and frozen fruits and vegetables sector were interested in improving cooperation, implementing joint projects and joint production with the goal of approaching the EU and third markets. Belgian companies expressed their satisfaction with the complementarity and quality of the production potential presented.

Belgian companies are also interested in cooperation in the field of high technologies.

Among the problems most commonly mentioned by Belgian companies present in Serbia are bulky, expensive and time-consuming import-export procedures, a complicated tax system, an unclear and non-transparent administration, as well as a lack of clear business rules. ●

-200 2005 2006 2007 2008 2009 2010 2011 2012 2013-VII

2005 2006 2007 2008 2009 2010 2011 2012 2013-VII Export in USD

Import in USD

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Balance in USD

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CULTURE

MONS, EUROPEAN CAPITAL OF CULTURE 2015

Celebrating Art Mons, the European Capital of Culture, opened five museums simultaneously, thereby showing its commitment to art and culture – not only this year, but into the future

Mons, the European Capital of Culture

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he opening ceremony of the year for the European Capital of Culture took place on 24th January with happenings all over the town of Mons, under the theme of “illumination”.

The remainder of the year is divided in four periods: the dazzling, the great reveal, the blazing summer and the renaissance. The first two have already passed, but visitors still have a lot to choose from before the

exhibitions throughout the year. The incredible diversity of the projects paints a unique and vibrant panorama of ancient and contemporary art, from the figure of St George in the history of art, to monumental sculpture in China. One of the best exhibitions – covering the development of Vincent Van Gogh from a clergyman to an artist – has already been and gone, but the Verlaine exhibition is still to come. These are two major

Mons is set to play host to more than 20 exhibitions throughout the year. Although some of the best have already come and gone, a lot more will be offered to every visitor heading to this year’s European capital of culture end of the year. In total, the four themes will present 300 events and a thousand cultural and artistic activities, five new museums, two new concert halls, the very best artists performing in cultural institutions, as well as on the streets, squares, parks, waterways and in public buildings, houses, open-air cafés and other trendy eateries.

Mons is set to play host to more than 20

the Borinage area to the west of the city of Mons, known for its former coal mining industry, and worked as a preacher, living with the coal miners. It was soon afterwards that he ended his career as a clergyman and opted instead for the life of an artist. During his stay of almost two years in Belgium, he wrote to his brother Theo, who was both his financial and emotional support, about his desire to sketch. It was here that he began his studies by copying prints. Some of the brothers’ correspondences were exhibited as testimony to his growth as a person, and his transformation into an artist.

Lovers of the work of the poet Verlaine will have the opportunity to visit an exhibition devoted to him from 17th October 2015

figures in modern art whose time in Mons is thought to have influenced their artistic career. All of these events and exhibitions are sure to appeal not only to the public at large, but also to cultural enthusiasts.

Those who didn’t come to Mons in the first part of the year missed out on an excellent exhibition dedicated to Van Gogh’s early years, when he arrived, aged 25, in The Saint George Exhibition

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Mons Memorial Museum

to 24th January 2016. He was one of the most talented and popular French poets. The exhibition will read like an epic novel, with numerous objects and previously unseen works illustrating his incredible saga and constant struggle between sin and repentance.

At the same time, visitors may visit another exhibition devoted to Saint George, one of the most venerated saints in the Catholic, Anglican, Eastern Orthodox and Oriental Orthodox churches. The Saint George exhibition contains a selection from the many paintings, sculptures, drawings and illuminations that have represented this great saint in several ways. It aims to demonstrate that the traditional image of Saint George and the historical knowledge we possess about him have the unique privilege of being a powerful stimulant for the imagination. It shows how the legend of Saint George and the Dragon is perceived as man’s various struggles against hostile forces and also, and perhaps more importantly, man’s struggle against himself in affirming his own destiny.

The five new museums opened in Mons are: The Artotheque, a new art and history museum with a fascinating collection, is located in the chapel of a former Ursulines convent. The museum’s collection is a mixture of Neolithic materials and contemporary pieces, representing an historical com-

The museum delves not only into the story of war, but also the men and women whose lives were changed as a result.

The Doudou Museum shows the shared cultural spirit of Mons. The Doudou, celebrating St. George’s defeat of the dragon, has been named a UNESCO World Heritage Event.

It has taken place in Mons for centuries.

The Silex ventures deep beneath the earth so that we can understand the origins of our society and how culture and humans have evolved throughout the centuries. The Silex decodes the discoveries made at the Neolithic mines in Spiennes, where the museum is located.

A wealth of other projects will be implemented at exhibition sites around the Mons region: local and international artists, young and established talent, transitory and unusual artworks – all will make their mark on Mons’ artistic agenda.

Being a European capital of culture doesn’t mean that everything circles just in one city and within its borders. From Intra Muros and the Borinage, to the centre, Char-

From Intra Muros and the Borinage, to the centre, Charleroi and Namur, Brussels, Valenciennes, 17 museums will be opening their doors to Mons’ impressive exhibitions during 2015 bination that is hard to find elsewhere.

The Belfry is the newly renovated Belfry of Mons, a 17th century UNESCO World Heritage Site. Its 365 steps and 49 bells have been made good as new, while the visitor may learn about the original construction of the Belfry at its interpretation centre.

The Mons Memorial Museum explores the gruesome yet important history of war, from the centuries-old local battles to the more recent histories of the two world wars.

leroi and Namur, Brussels, Valenciennes, 17 museums will be opening their doors to Mons’ impressive exhibitions during 2015.

These partner programmes will involve Belgian and international artists, contemporary and classical art, museum projects, town walks and countless surprises for all kinds of fans of every sort… a rich year which, in this way, will see the (re-)birth of iconic exhibition locations such as the B.P.S.22, Keramis and the Mundaneum. ●

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ECONOMY

Strong Fiscal Position Belgium benefits from a resilient economy and strong fiscal position. Its economy, worth approximately €470 billion, is the sixth-largest in the Eurozone and is supported by a healthy private sector

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Cranes in Port of Antwerpen

elgium’s modern, private enterprise economy has capitalised on its central geographic location at the crossroads of Western Europe, with a highly developed transport network, diversified industrial and commercial base and a highly skilled and educated workforce, as well as its participation in the EU. For most of its history, the Belgian economy was based on the nation’s manufacturing capabilities. The country was the first in continental Europe to experience the Industrial Revolution, and throughout the 19th century it was a major steel producer. Large coal deposits helped fuel industrialisation. In the post-World War II era, heavy manufacturing and mining declined, while significant growth in the service sector

in the two biggest Walloon cities, Liège and Charleroi, along the sillon industriel. Belgium imports basic or intermediary goods, adds value to them through advanced manufacturing and then exports finished products. Except for its coal, which is no longer economical to exploit, Belgium has few natural resources other than fertile soil. Nonetheless, most traditional industrial sectors are represented in the economy, including steel, textiles, refining, chemicals, food processing, pharmaceuticals, automobiles, electronics and machinery fabrication. Despite the

Belgium’s modern, open, private-enterprise-based economy has capitalised on its central geographic location, highly developed transport network and diversified industrial and commercial base saw the country switch from heavy production to light manufacturing and begin producing finished products instead of steel, textiles and raw materials.

During its industrial period, Belgium developed a highly efficient and capable transportation infrastructure that included roads, ports, canals and rail links. The multilingual nature and industriousness of the country’s workforce has made it one of the world’s most productive.

Industry is concentrated mainly in the populous Flanders in the north, around Brussels and

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heavy industrial component, services account for 74.9% of GDP, while agriculture accounts for only one per cent. Roughly three-quarters of Belgium’s trade is conducted with other EU countries and Belgium has benefited most from its close proximity to Germany.

Thanks to its strong structure, the economy started to recover last year, though GDP growth is expected to remain at around one per cent in the coming years, mainly due to weak export demand. Belgium has a substantial debt burden of about 105% of GDP, but the country has a

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strong debt reduction track record.

The country’s central bank, the National Bank of Belgium (NBB), is now more optimistic about economic growth in the country during the coming years. Governor Jan Smets expects 94,000 extra jobs to be created over the next three years, half of which will be in industries that are sensitive to changes in market conditions, such as private sector service industries.

Meanwhile, around 10,000 public sector jobs are expected to disappear as a result of public spending cuts.

The NBB predicts that by 2017 unemployment in Belgium will have fallen to 7.9%, down from 8.5% this year. This is set against the backdrop of a growing working population and federal government measures to keep people at work for longer.

In December 2014 the NBB predicted 0.9% growth for this year and 1.4% for 2016. However, it has since revised its growth predictions to 1.2% and 1.5% respectively. The NBB now even predicts growth of 1.7% for 2017.

These revised growth figures have come about as a result of falling oil prices and the fall in value of the euro. Both these factors have served to improve competiveness. Furthermore, the European Central Bank recently took measures to help kick start the economy in the Eurozone.

Belgium’s weak economic recovery mirrors that of its major European trading partners, as

it relies heavily on exports from the Eurozone, which equated to 83% of GDP in 2013. While Belgium compares well relative to similarly rated countries in terms of productivity and competitiveness, the country’s wage growth has exceeded that of its European trading partners.

According to the latest OECD prognosis, the recovery is projected to gradually strengthen. Economic growth is expected to broaden with rising exports and business investment, owing to supportive financial conditions and improving external demand. Household consumption growth will be held back by fiscal consolidation and wage restraint. Inflation will pick up somewhat in 2016, as the effects of falling oil prices wears off.

Fiscal consolidation is set to resume, mainly on the spending side. Further structural reforms to secure fiscal sustainability and promote employment and competitiveness should be pursued, such as increasing the effective retirement age, reforming wage setting and shifting the tax burden from labour to less growth distortive taxes, such as consumption and environmental taxes.

Investment in the aftermath of the crisis has been stronger than in other Eurozone countries.

While recovery in business investments is set to continue, public investment remains subdued and low compared to the international trend, reflecting a need for fiscal consolidation. However, further infrastructure spending cuts may undermine future growth.

Belgium’s economic freedom score is 68.8, making its economy the 40th freest according to the 2015 Index. Its overall score has decreased by 1.1 points from last year, with declines in labour freedom, public spending management and fiscal freedom outweighing improvements in monetary freedom, business freedom and freedom from corruption.

Belgium is ranked 18th among the 43 countries in the Europe region, while its overall score

is above the regional and global averages.

Corruption remains minimal in Belgium. The government prohibits and punishes all forms of bribery. Property rights are well protected by law. Laws are well codified and the judicial system is generally respected.

the culmination of longstanding national support for economic cooperation. For instance, in 1921 Belgium joined Luxembourg to form the Belgian-Luxembourg Economic Union (BLEU).

This economic union provided for an interchangeable currency and established a joint QUICK FACTS (September 2014)

Population: 11.2 million GDP (PPP): $422.8 billion 0.2% growth in 2013 Five-year compound annual growth 0.3% $37,881 per capita Unemployment: 8.6% Inflation (CPI): 1.2% FDI Inflow: –$2.4 billion Public Debt: 99.8% of GDP 68.8

Belgium’s economic freedom score is 68.8, making its economy the 40th freest according to the 2015 Index The overall regulatory environment is efficient and transparent. The cost of establishing a company has been reduced and starting a business takes only three days and requires only four procedures.

The financial sector remains vibrant and generally free from government involvement.

Some institutions received bailouts during the economic slowdown and the recently passed Financial Crisis Law grants the state stronger powers during crises.

Belgium was one of the founding members of the European Community (later the EU) and has been one of the foremost proponents of regional economic integration. In 2000, 80 per cent of Belgium’s trade was conducted with other EU members. Membership in the EU was

customs union. Belgium and Luxembourg also joined the Netherlands to form the BENELUX customs union – an organisation which oversaw cross-border trade between the three nations.

Belgium is also a member of the Organisation for Economic Cooperation and Development (OECD), which brings together the world’s most highly developed industrialised democracies.

Belgium has supported the main economic initiatives of the EU, including the elimination of trade barriers, such as tariffs between the organisation’s member states. The EU also coordinates the external trade of its member states. In 1999 Belgium was one of the founding members of the European Monetary Union (EMU), which went on to replace the national currencies of its members with the single currency. ●

National Bank of Belgium WORLD’S MARKETS AND OPPORTUNITIES

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TOURISM

FLANDERS

Stunning Architecture, Culture and Sandy Beaches!

Belgian chansonnier Jacques Brel described Flanders as le plat pays, the flat country, with ‘cathedrals the only mountains’ beneath skies ‘so low that canals get lost in them’

Leuven is Belgium’s reigning brewing capital

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elgians love Flanders for its immaculate – albeit slightly overly commercialised – sandy beaches, while foreigners adore the breath-taking views of its fabulous medieval city centres, belfries and begijnhoven. Bruges and Ghent come to mind fist, but even lesser-known towns such as Oudenaarde and Veurne, Ypres and Diksmuide, have wonderfully picturesque town squares, some of them having been meticulously rebuilt following WWI. For most of people Belgium is synonymous with Bruges. Canals loop across the town like a string of pearls, creating the well-earned moniker of “the Venice of the North”. With cobblestone paths, brick archways, stone churches and quaint bridges, it’s nearly impossible to take a bad photograph.

The addition of swans on the water, horsedrawn carriages in the lanes and daffodils in the park, make it appear almost magical.

Listed on UNESCO World Heritage Sites, Bruges has the best-preserved example of a medieval city centre, with its bell tower overlooking the wide open marketplace. With the centre pedestrianized, all the stunning beauty

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and culture of this unforgettable city can be easily explored on foot, although a boat ride along the quiet canals is not to be missed.

While only a small city, to truly uncover the many pleasures around each corner, from lace boutiques and chocolate shops to architectural and historical treasures, give yourself plenty of time to get happily lost.

Antwerp is all about architecture - from medieval buildings like the impressive town hall and square, to the contemporary courthouse, with numerous Art Nouveau gems in between. From stylish buildings to welldressed window displays, Antwerp is a city that’s appealing to the eye.

The city has been this way for many centuries. One of the greatest, richest cities in all of Europe in the 1500s, a century later it was home to iconic Flemish Baroque painter Peter Paul Rubens and Anthony Van Dyck.

Mechelen is a small and picturesque city that is big on charm and history, thriving with quaint shops, pedestrianized areas and pleasant small squares. The grace of centuries-old palaces and majestic churches appeals to everyone. There are no less than

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336 listed buildings and monuments, including eight gothic and baroque churches from the 14th-17th centuries. The Begijnhofkerk is especially unique, with its feminine art schemes and pastel colours.

Mechelen offers something to people of all ages. Young people can actively enjoy themselves in the Toy Museum or the Tivoli Children’s Farm, while the young at heart can entertain themselves at the Anker, one of the oldest functioning breweries in Belgium. Students from all over the world come to learn to play church bells at Mechelen’s carillon school. Sitting outside on the terrace of a café, sipping a local beer while listening to the bell music coming from the skies, is nothing short of delightful. The town is also home to one of the last remaining places in the world that restores and repairs antique tapestries, at Royal Manufacturers De Wit. Ghent is an undiscovered Flemish jewel of a city that boasts an opera house, a handful of museums, even more ancient churches, and countless bridges spanning the two rivers that wind their way through the city.

The true joy of the town is to be found whiling away an afternoon in an outdoor café.

Leuven, on the other hand, is the Mecca of Books and Beer. A vibrant student population and rich history combine in the city of Leuven, home to one of Europe’s oldest universities (KU Leuven), founded in 1425.

The university, still one of Europe’s most important, has its roots in the centre of Leuven, where its historic college build-

CORPORATE Bruges

Good winds are coming NEDA SRETOVIĆ, COUNTRY MANAGER WINDVISION

ings dominate many of the squares and streets. A few lucky students even have the distinct privilege of living in the 13th century stone beguinage, a UNESCO world heritage site that’s well worth a visit.

Some 28,000 students and professors lend a distinctly youthful atmosphere to the city… or perhaps that’s the beer!

Leuven is Belgium’s reigning brewing capital – no small feat in a country that produces hundreds of delicious varieties. Leuven is the headquarters of Inbev, the world’s second largest brewery, famous for its Stella Artois beer. Centuries of Flemish tradition and craftsmanship lie behind Leuven’s premium brews. Leuven is a great place for the curious traveller with time to explore. It is an intimate city; any spot can be easily reached on foot or by bicycle.

Although many in our region would never consider Flanders as a summer holiday destination, this is actually an exquisite idea. The

Bruges and Ghent come to mind fist, but even lesser-known towns, such as Oudenaarde and Veurne, have wonderfully picturesque town squares coastline’s 42 miles of sandy beaches has 13 resorts, each with its own character and unique atmosphere.

Oostduinkerke is the only seaside municipality in the world where you can see shrimp fishermen working on horseback. A lovely sight!

The Shrimp Festival is held during the first week of every summer holiday. Other treasures include the large nature reserves, a charming village that honours the folklore and the National Fisheries Museum.

De Panne is just a stone’s throw from northern France and has the widest beach (without breakwaters!) on the coastline. It is perfect for long walks, sporty inland sailing trips or horse riding.

De Haan is a seaside town with absolutely picturesque décor. The pastoral polders surrounding the city provide the perfect opportunity for walks and cycling trips.

Nieuwpoort has cosy little squares; atmospheric shopping streets and a well-designed seaside boulevard: all the result of successful urban renovation.

Bredene is a true paradise for those seeking peace and tranquillity, with its dozens of campsites making it a camping municipality par excellence.

Middelkerke is the ideal destination for a family beach holiday, while at the same time being an excellent starting point for cycling or walking trips. ●

Windvision’s 200 million EUR project of constructing the wind power plants in Alibunar will create conditions for the long-term local development and greatly improve Serbian energy security The total installed capacity of wind power complex Alibunaris 174 MW (Alibunar 1 - 99MW, Alibunar 2 - 75mW). Having in mind that 500 MW of wind turbines can replace 90 percent of Serbian import electricity, after the competition, this project will significantly contribute to improving energy security of Serbia. ● At which point is your project at this moment?

After Alibunar municipality adopted a Plan of detailed regulation, during 2014 Windvision started preparation of necessary technical documentation and at the moment we are in finalization phase of obtaining allnecessary permits for the construction of wind farms whose start is expected in the first quarter of 2016. After the successful development and construction of wind farms, Windvision will be power producer throughout theperiod of exploitation that is 25 years. ● In the past we heard a lot about Serbian potentials when it comes to wind power, but we haven’t seen the realization of any project yet.

Why is that?

In my opinion, the first wind turbines in Serbia will start spinning during 2015. Since 2009, investors in the field of wind energy, which are members of the Serbian Wind Energy Association (SEWEA) invested over 30 million euros in the development of wind farms in Serbia. Upon the commencement of construction of these projects, the total investment potential would be between 700 million and a billion euros. I consider that as the best signal of Serbia’s readiness to embrace energy production from renewable sources and the major message for major European investors. ● Does Windvison has some other plans in Serbia apart from Alibunar wind farms?

We have started this project in 2010, starting from its early development phase, permitting procedures until planning of construction.. However, we are open for new projects in all fields of renewable energy resources exploitation, especially after Serbian energy market proves it is ready for their realization.● WORLD’S MARKETS AND OPPORTUNITIES

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Belgium lies at the heart of the wealthiest, most populated area of Europe. Its neighbours are France, Germany, Luxembourg, the Netherlands and, across the Channel, the UK

The Kingdom of Belgium has three official languages: Dutch, French, and German. A number of non-official, minority languages and dialects are also spoken.

Brussels, capital of Belgium and administrative centre of the European Union, is one of the most cost-efficient cities in northern Europe

Beer in Belgium varies from pale lager to lambic beer and Flemish red. There are approximately 180 breweries in the country, ranging from international giants to microbreweries

Belgium has an excellent infrastructure, housing the world’s 5th largest port in Antwerp, Europe’s 5th largest freight airport, inland waterways and one of the world’s highest density road and rail networks

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