CorD Magazine No.14 by CorD Magazine

F oreword

Dear CorD readers,

The long standing and close friendship binding Greece with Serbia & Montenegro is well known. This issue of "CorD" will shed some more light on the, perhaps, lesser known current economic engagement of Greece in Serbia & Montenegro. It is a great pleasure to address you, the esteemed readership of "CorD", on this occasion. Finance, business, technology, communications and tourism are particularly highlighted among a spectrum of activities, marking the manifold Greek presence in a country moving forward at an accelerating speed. The significant increase of Greek investments over the last years, resulting in positioning Greece among the most important investors in SCG, is an obvious sign of the confidence shown by the Greek business community in SCG's economic potential. It is estimated that Greek invested capital amounts to 1 billion euros, contributing to the generation of around 18,000 jobs in Serbia & Montenegro. We trust the positive business climate that is emerging and the continuing reform process; and we hold in very high esteem the high quality of the existing human resources of this country. We are fully aware, on the other hand, that what we usually call "tranzicija" is not a linear process. The inevitable twists and twirls, even temporary steps backwards, are also parts of the same process. Yet the overall trend is positive and we rejoice in all that has already been achieved. We firmly believe in SCG's prospects. In particular, I would like to stress that we are staunch supporters of Serbia & Montenegro's EU perspective, an exciting new vision for this country awaiting its fulfilment. Humanitarian and development assistance provided by Greece also features in this special edition. This is a field of particular interest where Greece has still much room to do more and better. More generally, the enrichment of the already close relationship between our respective civil societies is among our priorities. Ultimately, the beneficiary of every economic or development co-operation activity is, and should be, the citizens of Serbia & Montenegro, "the man and woman in the street". Furthermore, the current issue of "CorD" helps make its readers more familiar with the Greece of today; the face of an active player who is constantly trying to enhance his efficiency and competitiveness. Our world is changing every day and it is our work to rise up to the challenges and the opportunities it presents. It is my conviction that Greece's keen interest and contribution to the economy of this country strengthens our centuries-old ties with a common outlook on the future, as partners within the same European family of nations. Enjoy reading in the hope that afterwards Greece's economic presence in SCG will no more be "Greek to you"!

Michel Spinellis Ambassador of Greece in Serbia & Montenegro

CorD special - Greece

March 2005

contents

SPECIAL EDITION March 2005 Director: Ana Novcic ana.novcic@cma.co.yu Editor in Chief: Dragan Bisenic d.bisenic@cma.co.yu

Evripidis Stylianidis,

Georgios Koutsodimos,

Athanasios Panagopoulos,

Deputy Greek Minister for Foreign Affairs

The Greek Embassy in Belgrade's Counsellor for Ecc and Commerc. Affairs

Country Manager of the National Bank of Greece in SCG

Corridor of Co-operation

2005: Year of Investment

Tireless expansion

Project Manager: Dragana Indjic d.indjic@cma.co.yu Deputy Editor: Mark Pullen m.pullen@cma.co.yu Art & PrePRESS Director: Branislav Ninkovic b.ninkovic@cma.co.yu Special thanks to: Ioannis Dermentzouglou,

First Secretary Ecc. and Commercial Affairs

Athens Business Summit

Sotiris Sianis Office Manager: Sonja Rados sonja.rados@cma.co.yu

Serbia - key investment target

30 Spiros Pyrgidis,

Stefanos Vafidis,

CEO, Delyug

General Manager, Coca-Cola HBC

Managerial Objectives

Committed to Continuity

Subscription: Ivana Petkovic i.petkovic@cma.co.yu Advertising Sales: Milos Maksimovic m.maksimovic@cma.co.yu Anica Divac, a.divac@cma.co.yu General Manager: Ivan Novcic i.novcic@cma.co.yu Printing: Politika AD

34 Tzanetos Karantzis,

Culture

First Secretary Ecc. and Commer. Affairs, Embassy of Greece

Greek cultural heritage is undoubtedly one of the most important factors shaping the development of Western civilisation.

Unwavering support

Cradle of Culture

CorD is published by CMA (Consulting & Marketing Agency), Kneginje Zorke 11a, 11000 Belgrade, Serbia & Montenegro. Phone: +(381 11) 30 87 335 +(381 11) 30 87 066 +(381 11) 444 72 70 Facsimile: +(381 11) 456 564 E-mail: office@cma.co.yu ISSN no.: 1451-7833 All rights reserved ÂŠ CMA 2004/2005

42 Sport

Tourism Modern Greece has significantly improved its infrastructure since being selected to host the 2004 Games, which attracted some 14 million tourists

Sporting ties 6

March 2005

Greece's New Era

CorD special - Greece

F oreword

Honoured readers, We do not need to especially emphasise the traditionally good entire relationships between Serbia and Greece, historical, cultural, spiritual closeness and the friendship between our nations. Taking into consideration the economic and political importance of Greece in this region, this country is, to Serbia, one of the priority partners not only in an economic, but also in a political sense, bilaterally as well as within the framework of regional initiatives, and its key role in the process of Serbia's accession to the EU should especially be emphasised. Economic co-operation is very intensive and various. Goods exchanges in recent years has recorded constant growth, and last year reached a figure of over 300 million dollars. For us, it is very important that exports to Greece in the last year reached a figure of 112 million dollars, which is an increase of 85% in comparison with 2003 and is the biggest since 1999. The export of our food products, ferrous and non-ferrous metals and chemical products is significant. The things which give an exceptional quality to our cooperation, apart from classical trade, are the long term kinds of co-operation. Greece is the only country which actively joined the process of privatisation in Serbia, and per size of investment takes one of the leading places. In the last ten years over 300 contracts of foreign investments were signed and 700 million dollars was invested. The most significant Greek capital is present in the fields of telecommunications, banking, food and beverages, the cement industry, trade and Greek companies such as OTE, Delta, Hellenik Sugar, Titan, Hellenic Petroleum and Veropoulos are all present in Serbia. In the banking sector, those are the Greek National Bank, EFG, Eurobank, Alfa and the Greek Commercial Bank. However, the co-operation can and must be bigger, especially considering the potential and desires of both sides, the geographical closeness and frequent contacts at all levels. There are numerous fields in which we can co-operate, but we think that priority should be given to telecommunications and traffic, energy, agriculture and construction. Considering the large number of signed bilateral agreements which regulate the entire co-operation, the legal preconditions for co-operation offer a good framework for its further development and advancement. The Serbian Chamber of Commerce accomplishes very good co-operation with chambers and other associations in Greece, such as: the Union of Chambers of Commence, the HEPO, the Athens Chamber of Commerce, the Greek-Serbian Economy Association, DIPEK, as well as the co-operation within the ABC (the Balkan's Chambers Association). Co-operation with Greece within regional initiatives is very dynamic and is of great importance for the peace and stability of the region, and it is the blueprint for the approach of this region to European integration. Those are very important Adriatic-Ionic initiatives, the Black Sea's

CorD special - Greece

Economic Co-operation, SECI and the Process of SouthEastern Countries Co-operation. At the â&#x20AC;&#x2DC;Initiative for the Partnership Greece - SCGâ&#x20AC;&#x2122; conference, which took place on 9th and 10th February in Athens senior representatives from the government, the chamber of commerce, financial institutions, international organisations as well as a large number of enterprisers from both countries participated. The support we received there, from the highest level, will be the strong driving force for extending the economic courses of both countries. During the two-day conference, numerous views were exchanged and numerous business contacts established, which will result in concrete business engagements. Among the intensive political and economic dialogue on all levels I am convinced that co-operation will develop successfully in the interests of both sides. Serbia has entered the fifth year of transition, which is characterised by dynamic political, civil and economic reforms shown in the macroeconomic stability, the reform of the tax system, the liberation of the domestic and foreign trade system, the consolidation of the financial-banking system and the strengthening of the private sector. Apart from dynamic reforms, we have created the conditions for a larger influx of foreign investments, which are a pre-condition for faster development and the way towards the European Union. The Serbian Chamber of Commerce, as an independent, non-governmental association of companies, banks and other financial institutions, is dedicated to the economic recovery of the country, its further economic development and affirmation on the world market. The chamber helps companies establish quality business contacts in the aim of the mobilisation of Serbian economic potential and its better presentation on the international scene.

Dr Slobodan Milosavljevic President of the Serbian Chammber of Commerce

March 2005

I nterview

Corridor of Co-operation By Dragan Bisenic & M. Pullen, Photo Andy Dall

The Hellenic Plan is a very strong idea; a very hopeful plan for the reconstruction of the Balkans. I think it's a very positive initiative, though there have been several technical, economical and institutional problems associated with this contract, which have ultimately caused delay - so said Deputy Greek foreign minister Evripidis Styliandis, speaking exclusively to CorD this month.

Evripidis Stylianidis, Deputy Greek Minister for Foreign Affairs

peaking about Greece's role in the region, Styliandis said that incumbent Greek Prime Minister, Kostas Karamanlis, has genuine respect for the continuity of the country's foreign policy and wants to intensify bilateral relations and give Greece "the opportunity to play an important role in building bridges in our region and bringing the friendly countries from the region into the European family. So the decision was to intensify our efforts in order to realise the project." These strategic goals would be realised through the ambitious Hellenic Plan. The Greek deputy minister explained: "We started continuously working on this project during the past ten months and I think we are now able to start with the realisation of the project. Specifically in terms of Serbia & Montenegro, the plan, which officially runs from 2002 to 2006, included a decision to give â&#x201A;Ź250million to SCG, 23% of which will be Greek funds. The bulk of this credit will be given to the Republic of Serbia, with seven per cent given to the Republic of Montenegro. The target is to modernise infrastructure, especially within the framework of energy and transportation, realise some productive investments, modernise the public administration services and the services of local authorities."

March 2005

He continued: "It will also be used to further democratise institutions and facilitate co-operation between the parliaments and support a new judicial system and, naturally, education, business training and especially transfer of modern know-how to the specialists of your country. One of our most important priorities for the realisation of the project is implementation of plans to complete Corridor 10. This is a very important target in order to be able to connect Thessalonica and Belgrade." Referring to the problematic area of the proposed route, he said that the two cities must be connected "through some difficult parts in the south of your country and also in FYR Macedonia. This part is about 180km long and I think the whole project will cost more than three million euros. So we have already started negotiations between the EBRD and the EIB - two European banks - in order to find extra financial support and to be able to realise this project. Naturally, we will discuss realisation of the project with the Serbian & Montenegrin side. It is our strong will to realise this project. It is, obviously, very important for SCG, but it is also very important to our interests because we want to reconnect the market of northern Greece with the markets of Serbia and Montenegro and central Europeâ&#x20AC;ŚAfter our visit to Belgrade [scheduled for March 2005] I think that we will be able to approve the new plan for the realisation of the project. I would like to underline that 20% of the whole capital of the Hellenic Plan for the reconstruction of the Balkans relates to private

CorD special - Greece

investments in Serbia & Montenegro. That equates to 9.9 million euros. We have already given €3million to two large Greek companies - Alumil and Plexiglass Promet and these companies are currently realising their investments. These investments will create 80 new jobs in a friendly country. At the same time, one per cent of the capital is planned to be given for small enterprises costing no more than €50,000 each, realised by the Greek embassy in Belgrade. We have already given money for 12 small enterprises, which has cost €261,000 and we will create seven more at a total cost of €178,000. This plan is only for the reconstruction of the infrastructure, etc." Turning to the issue of investment in the State Union, Stylianidis said: "We have reactivated the interest of the Greek business community to invest in SCG and I think this partnership is going very well. The situation with bilateral economic relations is very positive, but has the potential to be better. At the moment, 150 Greek-Serbian companies exist on the Serbian and Montenegrin markets and 80 fully Greek owned companies are operating in SCG. All these together have already created more than 18,000 jobs. "Since 1996, total Greek capital invested in Serbia & Montenegro is €1.2billion. In the trade zone, during the last few years we have doubled the number of our contracts, especially in 2003 when the trade situation improved by some 22.2%. In the first 9 months of 2004 we had exports of $176.4million to SCG and imports of $83million. That shows us that the two countries are in a very good way, but naturally there are better prospects and we are trying to reach them. "We are trying to manage to have more intensified bilateral economic relations. That is our target and that's why we plan to visit Belgrade soon and have meetings on different levels with the government about the Hellenic plan and the technical issues, in order to decide about our common projects and intensify the interests of the two business communities to communicate between each other and create some new common co-operation." How would you breakdown the phases of the Hellenic Plan and when do you expect full implementation to be forthcoming? "We have been somewhat delayed for a number of reasons. There were many financial, technical and institutional problems, which we had to solve during this period of time. However, I think we managed quite well to do so. "The first step was to establish political contact with your government and discuss the political and technical issues between Greece and Serbia. This had to be a tri-lateral meeting because we had to inform the EBRD and EIB because both banks could help the Serbian side by sponsoring a high percentage of the projects. We could be very helpful for a lower percentage of the projects. But the money we have already planned to give to the SCG side - €250million is the most important part of our donation. So, the first step is to negotiate and decide what kind of road we want for corridor 10, which characteristics, which parts will be realised by which sides, how much every part of it will cost and who will be responsible for managing every part of it. These technical issues represent the second step. The third step is commencement - finding and giving the money to the contractors. I've already discussed with the Greek ministry of finance and reached agreement that we are to get the money. I believe that after the meeting in Belgrade we will be able to

CorD special - Greece

achieve some results and begin with the implementation." Corridor 10 is probably the most important project, not only for Serbia and Greece, but for the whole of transEuropean transport. "It's extremely important for us because we don't want to be a European island in the Balkans. We want a European Balkans and corridor ten is the most important infrastructural means of reaching this target." It is, in essence, crucial to the "Europeanisation" of the Balkans. "Exactly. It brings to an end isolated markets and helps the countries co-operate with each other." As it is so important, could we estimate a timescale for completion with any precision? "It doesn't depend on us alone. We have to rely on the banks to come up with the funds to sponsor the project and, at the same time, we have to solve the technical issues. I have already sent a group of engineers to Serbia to survey the route, but the technical group from Aristotle University have visited the whole of the Corridor 10 route and they are able

"I'm very satisfied because I see now that every Greek company which wants to invest outside of the borders, export products or services, or transfer their European know-how, is looking towards the Serbian market." to advise us on how to initiate the project. We plan to begin construction by 2006, but I don't want to make promises that I can't keep. I want to run as fast as possible, complete the political and technical arrangements and begin construction…We have lost too much time already." Have you already established contact with the Serbian side? "Yes, my advisors have spoken with the authorised people in Serbia. I had a meeting with the responsible minister a few months ago and I am in constant contact with the ambassador, who was very active in activating the Greek side. Now I am promoting the idea and, like today, having the opportunity to discuss the plan with some friends from Serbia. But the most important thing is to make an official visit to Serbia and to start negotiations and the decisionmaking process." Corridor 10 is obviously the most crucial element of the Hellenic plan, but is there the scope for other elements? "There are ideas for other projects, but I think it is better to firstly concentrate our efforts on this huge strategic project, rather than dividing our efforts to different targets without first achieving an important result. This is our way of thinking. So it is better to start with this and try to realise it, then if we have the chance and the possibility to discuss some other projects afterwards then okay, but let's start from this huge project. March 2005

I nterview "There are several levels upon which we could play a very positive role for Serbia. The first is represented by the political support we are giving to the Serbian side to open the European prospects and realise the dream of participation in the European family. The second level is the market, marked by co-operation between the Greek and Serbian market, and transferring know-how and our European experience. The third level is the transferring of our experience - the reforms we have done in the past, the initiative for legislation making we took in the past in order to reach the market of Europe, the harmonisation of our system with the EU. We can give these experiences and know-how to our Serbian friends easier than the other Europeans can. Firstly because we have a mutual trust and friendship, secondly because we know the mentality of the Balkans and, simultaneously, we know the mentality of the EU. So we could be a kind of bridge and, naturally, this political bridge will be very helpful."

Evripidis Stylianidis "Naturally, the idea we have is not to make a wide and very impressive corridor. We are thinking very practically. It is better to make something smaller, but complete, and to connect Belgrade to Thessalonica, than to try to make something which is huge and impressive, but in the end does not connect the two markets." By working together, Greece and Serbia can ultimately link the markets of the Middle East with the markets of the EU. How interested are Greek businessmen in promoting greater co-operation with Serbia? "The interest of the Greek business community is very high, though they have been fair when considering the instability in the area in the past. That's why, during the first phase of the new environment, the Greek business community was more active in Romania and Bulgaria than the Western Balkans. But, as you know, the environment is now very different and I think and feel the stability is coming, the reforms are there and, hopefully, soon the Greek policy to support the European orientation and the European perspective of SCG will win and will bring some results. "We are now trying to use the traditionally friendly cultural relations between the two societies, governments and business communities in order to push Greek interests to invest in, export to, or import from, the Serbian market. Generally to create co-operation, joint ventures, common investments, etc. "I'm very satisfied because I see now that every Greek company which wants to invest outside of the borders, export products or services, or transfer their European know-how, is looking towards the Serbian market. This is good for both economies and our bilateral relations. It represents a new bridge and can be used to strengthen, or create new, political and cultural ties." How can Serbia's approach to the EU benefit Greece and how can Greece aid Serbia's approach to the Union?

March 2004

Looking at the Greek experience in the "Europeanisation" process, what would be your personal advice to Serbian society, not only the politically elite. How can you transform society, not only politically and economically, but ideologically? "I think it is very important to create good governance in the country and to harmonise your legal system with EU law; privatisation and liberalisation of the market are very important and modern public relations are necessary if you want to reform the economy and politics. "Political stability is also very important, as is a modern foreign policy which respects the values and rules of the European family and tries to bring the Serbian people into the European village with a new mentality. "We have felt periods of national isolation in the past and, of course, this is very difficult and we paid a high price for that. We understand our friends now and that's why we want to

"Since 1996, total Greek capital invested in Serbia & Montenegro is â&#x201A;Ź1.2billion. In the trade zone, during the last few years we have doubled the number of our contractsâ&#x20AC;Ś" show them the clever way of thinking and acting because they have to understand as quickly as possible how important it is for the country, the individual citizens and the neighbourhood. It's particularly important for us because we want to have friends in the European family who have similar mentalities and similar ways of thinking and acting because that makes it easier to protect our national cultures and create a codex of values that is very useful for the European family and this, in my opinion, is the main idea of new Europe: to protect the pluralism of countries. We don't want cloned states. We want a European pluralism with respect for national identity and, at the same time, a common European identity made from the best characteristics of those differing national identities. It's very important for us not to be alone, but to have countries with similar problems and experiences and ways of thinking. If we work together to 'Europeanise' the Balkans it will not only be positive to our respective nations or the area, but rather for the whole of the EU as it will stand as an example of how contrasting cultures can live together and co-operate instead of being problematic."â&#x20AC;˘

CorD special - Greece

E conomics

Georgios Koutsodimos,

Counsellor for Economic and Commercial Affairs

Photo Andy Dall

Georgios Koutsodimos, the Greek Embassy in Belgrade's Counsellor for Economic and Commercial Affairs, is quite enthusiastic about business opportunities in SCG.

2005: Year of Investment S

CG has achieved remarkable results in stabilising its economic environment, which deserve undisputed respectâ&#x20AC;Ś Serbia is making important steps towards transition to a market economy and this friendly country is quite a safe environment for foreign investment. The Greek embassy in Belgrade, and its Commercial Section in particular, takes advantage of every possible opportunity to encourage Greek entrepreneurs to expand onto this market even more, spread their business wings wider and establish strong and long-lasting contacts with business partners in Serbia & Montenegro. Numerous business conferences held in the last few years, both in Athens and Belgrade, increased awareness of growing business opportunities for Greek companies in SCG in a variety of domains. "Direct and indirect Greek investments in SCG today stand at about â&#x201A;Ź1.3billion. In the last five years Greece became one of the leading foreign partners of SCG's economy", explained Koutsodimos. After a certain stalemate during 2004, when both Greek and other foreign investors took "sabbatical leave" due to the delicate testing period for the new government, 2005 starts on a very optimistic note. This year we will intensify our relationship with the Serbian business community and make 2005 "The Year of Greek investment in Serbia". The recently appointed embassy official explained: "For Greece, Serbia & Montenegro is a strategic political and economic partner in the Balkans, and an important factor of stability for the South-East Europe. At the beginning of the 21st

March 2005

century, SCG is definitely showing remarkable economic progress after a difficult period. Greek humanitarian assistance was particularly prominent during the period 20002002. It was indicative of the feelings of solidarity between the peoples of our two nations, during times of hardship. Since then, in line with the expressed strategy and needs of Serbia & Montenegro, it has declined in favour of development assistance." Koutsodimos' renewed enthusiasm lies in the "historically long and warm friendship and co-operation between the two countries", and also in the strong presence of Greek busi-

"For Greece, Serbia & Montenegro is a strategic political and economic partner in the Balkans, and an important factor of stability for the South-East Europe. At the beginning of the 21st century, SCG is definitely showing remarkable economic progress after a difficult period. ness in SCG, especially during the last five years. He explained: "Greek companies started exploring business opportunities in a wide range of sectors: from telecommunications and banking, oil and cement to agro-machinery and food processingâ&#x20AC;ŚThe volume of Greek business in SCG has doubled since the year 2000: at this stage Hellenic involvement in

CorD special - Greece

the local economy involves about 80 Greek companies and about 150 Greek- Serbian companies, 18,000 employees and direct investment of almost one billion euros. And we can still grow from there…" According to data from the Serbian National Bank, total foreign direct investment (FDI) in SCG during the period from 1991 to November 2004 is approximately €4.1billion. If one includes the recent acquisition of Yubanka by Alpha Bank, approximately 1/5 of the total FDI in the country has come from Greece. Top Greek investments are Telekom Serbia Greek Telecom Organisation (OTE) with €330million, Yubanka - Alpha Bank (€152million), Yugopetrol Kotor Hellenic Petroleum (€105million), IBP Beograd AD - Coca Cola 3E (€99million), Fabrika cementa Kosjeric - Titan

"Commercial and trade exchange between Greece and SCG rose to €280million in 2003, while during first 10 months of 2004 it reached €264million. New, even bolder business co-operation between Greece and SCG is considered, especially in the domains of energy, road and building construction, transport, services, etc." Cement Company (€59million), EKO YU A.D. - Hellenic Petroleum (€35million), Posta banka - EFG Eurobank (€30million), Super Vero Doo - Veropoulos Bros S.A. (€24.5 million), National Bank of Greece (€22 million), Greek Sugar Industry (EBZ) (€21 million)… "The recent acquisition of Yubanka by Alpha Bank gives an exceptionally strong signal to Greek investors, as does the EFG Eurobank group's recently announced interest in acquiring two local banks", said Koutsodimos. "Commercial and trade exchange between Greece and SCG rose to €280million in 2003, while during the first 10 months of 2004 it reached €264million. New, even bolder business co-operation between Greece and SCG is considered, especially in the domains of energy, road and building construction, transport, services, etc." He continued: "Tourism remains a powerful asset in the relationship between Greece and SCG. At the recent International Tourism Fair in Thessalonica in November 2004, the tourism industry of SCG, and Belgrade in particular, had a special presentation. There is an increasing number of Greek tourists visiting SCG. "For the Greek private sector already active in SCG, obstacles on the road to business fulfilment are not excessive in number and some of them are akin to those faced in various other transition countries", stressed Koutsodimos. "Central government shows a strong commitment towards improving working conditions for foreign investors against cases of excessive bureaucracy, delayed work permission procedures and legal enquiries…Complicated and sensitive procedures related to the property ownership occasionally discourage investors…Still, there is a clear signal from the Government in Belgrade that foreign investors are welcomed and the Greek business community is closely monitoring these positive changes. The tradition of regular business gatherings on a big scale, which was introduced some years ago, will be successfully continued both in Greece and SCG", promise Koutsodi-

CorD special - Greece

mos. "Stressing the importance of further strengthening our economic ties, we simultaneously nurture the enrichment of our ties with SCG in many other aspects of interstate co-operation, development and assistance. "Simultaneously, the new dynamism of the Greek plan for economic reconstruction of the Balkans (ESOAV), confirms profound interrelations of economic development for our two countries and the Region. "Concerning development assistance, realisation of the Corridor 10 project remains a priority for the Greek side. It will connect the already existing transport infrastructure in Greece (namely the recently constructed 680 kilometre Egnatia Highway, which runs east to west from the port of Igoumenitsa on the Ionian Sea to Kipi in Northern Greece) with that of Europe's. And for Serbia this project carries a series of more than obvious benefits. In being mutually helpful, both sides have spared no effort to bring about the realisation of this project. Of late, the Greek side has been trying to pick up the pace so that tangible results will be evident in the near future", explained Koutsodimos. The Greek Embassy in Belgrade has used a Small Project Fund to carry out small projects in order to swiftly address urgent problems of a local nature. During the past year eight such projects have been accomplished and soon two more will kick off. Moreover, the Hellenic Ministry of Foreign Affairs has, in co-operation with Greek and local NGO's, funded a large number of social, cultural, and construction programmes throughout the country. Indicatively, these range from scholarships to transfer of know-how to SMEs, and from reconstruction of libraries, houses and schools to support of environmental initiatives. Moreover, various Greek Ministries, NGO's and Associations have independently undertaken programmes of a humanitarian and development nature. "Last but not least, the Hellenic Ministry of the Economy has so far granted almost €3million to support investments in the sphere of manufacturing," concluded Koutsodimos.•

Greece welcomes SCG's tourists Greece is one of the safest and friendliest tourist destinations in the world. Every year more than 14 million tourists visit Greece, not only for its ancient history, natural beauty and friendly people, but also because of the wide range of accommodation offered to suit any budget, the excellent infrastructure, the reasonable prices and the high quality of life. We are aware that a common belief exists, almost to the extent of fear, concerning the difficulties of obtaining a Schengen tourist visa. We would like to reassure our friends in Serbia & Montenegro and stress that we make every effort to ameliorate the situation. The Greek Consulates in Belgrade, Nis and Podgorica are doing their best to facilitate you, with courtesy and efficiency, in order to make you feel like a welcome guest from the first moment onwards. Allow us to emphasize the fact that the whole procedure never takes more than 72 hours.

March 2005

E conomics

Sustained economic boom By Mark Pullen

Greece entered the European Monetary Union (EMU) on 1st January 2001, a year before circulation of the euro commenced. Greece was able to enter the EMU because of the country's impressive economic policy amendments and sustained growth towards the EU's economic average performances, which evolved rapidly in both nominal and real terms.

ith GDP growing at around 4% annually, Greece's economic performance remains above the EU average; Greece is amongst the best performing economies in the Eurozone and has quickly established itself as the stable and prosperous hub of South-East Europe. Solid economic performances and structural reform initiatives have allowed Greece to develop. The EU's continuous financing assists the country, with Greece having already received €90billion in aid: €32billion from the 2nd Community Support Framework, 1994 - '96; €48billion from the 3rd Community Support Framework, 2000 onwards. Funds released by the 3rd Community Support Framework are also being used to complete the country's vast programme of infrastructure projects. Every level of Greece's transport and communications systems are being upgraded on an intense scale, in tandem with the liberalisation of the energy and telecom sectors to the enhancement of development.

- 35 million people live within a 500 km radius of Greece: Bulgaria, FYR Macedonia, Albania and SCG. - 146 million people live within a 1,000km radius of Greece: Turkey, Romania and southern Italy. - The markets of Hungary, Croatia, Slovenia, Libya, Egypt and Cyprus are within 1,500km of Greece.

March 2005

CorD special - Greece

According to official statistics, Greece has a workforce of some 4.4 million people. Although small, Greece's labour force is competitive due to overall standards of education and training. According to EUROSTAT, Greek students are the largest group studying elsewhere in the EU and almost 25% of the Greek labour force has a university degree. Education structures have improved markedly in Greece over recent years. Over the past decade the number of Greeks attending universities and participating in further education, both at home and abroad, has doubled. As many as 42,000

Over the past decade the number of Greeks attending universities and participating in further education, both at home and abroad, has doubled. As many as 42,000 students apply to Greek universities each year, and another 40,000 apply to overseas universities, mainly in the UK. students apply to Greek universities each year, and another 40,000 apply to overseas universities, mainly in the UK. EUROSTAT also note that 36% of Greeks have completed upper and post secondary school, 10% have completed lower secondary education and 32% pre-primary and primary education. A full 16% of the Greek labour force have successfully completed post-graduate university programmes or advanced research programmes. Greece is strategically placed to facilitate trade with the emerging markets of the West Balkans, Black Sea, Eastern Europe, North Africa and the Middle East. Thessalonica, the capital of Northern Greece, is fast becoming the trade, industry and services centre of South East Europe. Despite the abundance of urban centres, Greece has a relatively low crime rate. There are various foreign schools to accommodate newcomers to Greece, while the many foreign institutes, clubs and associations across Greece have helped to facilitate the integration of those relocating to the archipelago nation. Hosting the Olympic Games may prove a costly exercise, but the long-term benefits of such an undertaking ensure it is worthwhile. As well as the obvious infrastructure upgrades, total employment in Greece grew by 1.3% in 2003 alone, largely due to an increased labour demand for Olympic projects. However, Greece is still not without its financial headaches and inefficiencies. Fiscal deficit projections for 2003 were some 3.2% lower than actual figures, reportedly as a result of underestimations in the fields of tax revenues in public accounts, payments received from EU institutions (structural fund programmes), interest payments; the underrecording of military expenditure, the reclassification of a payment to the Government by the Postal Savings Bank and an overestimation of surplus social security funds. The Olympic effect was evident in 2004, with GDP growing at a quarterly average above 3.7%, and investment increasing by 3.2% in the third quarter alone. Greek consumption remained vigorous in 2004: retail sales grew by 5.2% in the period from January to July 2004, while private car registrations escalated by some 19.5% between January and September. Annual private consumption growth was estimated at 3.6% for 2004, with investment growth expected to reach 5.8%. Greece's drive to upgrade and modernise vital regional

CorD special - Greece

transport connections is undoubtedly linked to the fact that international trade is a key component of Greece's success. Exports are provisionally estimated to have increased in real terms by 7.8% in 2004, with imports increasing by an estimated 8.3%. However, exports are estimated to have decreased overall in 2004, though an abundance of shipping and tourism profits are expected to contribute to the decline of Greece's current account deficit. According to reports sent to the Greek Parliament in 2004, in the area of public finances "the general government deficit outturn is estimated at 5.3%, with the general government debt at 112.1% of GDP. Both figures show a large deviation from the targets set in the 2003 SGP, mainly due to the impact of the statistical revisions and an overshooting of expenditure related to the Olympic Games, as well as other under budgeted items." The report continued: "In July, law 3259/2004 was approved by the Parliament, providing for a tax settlement with an estimated impact on receipts in the order of â&#x201A;Ź400million. The main macroeconomic projections (2003-2007) of the Greek economy's updated 2004 Stability and Growth Programme (SGP) estimates that GDP will struggle to emulate the successes of 2003, though 2007 is expected to see growth well above 4%. Despite the negative import-export trends of 2004, Greek exports are expected to continue to outweigh imports progressively until 2006, with imports expected to shrink significantly before stabilising above 4%. The overall external balance of goods and services is expected to develop gradually from -1.3% in 2003 to +0.1% in 2007. Greece's growth averages are inextricably linked to the real GDP Growth of the European Union. However, since 1998

Greece has consistently maintained a GDP rate above the EU average. According to the estimates of the Greek Ministry of Economy and Finance, this growth rate is expected to outstrip the EU at least until 2006. Further predictions expect Greece's short-term interest rate to grow to 3.6% in 2007, with long-term interest rates hitting 5.15% in the same year. Between 2005 and 2007, the 25member EU's GDP growth is expected to remain stable between 2.3 and 2.4 per cent. Greece's general government debt, as a percentage of GDP, is expected to have decreased by March 2005

E conomics over nine per cent by 2007, to some 102.5%. Greece's residential demographics have changed significantly over the course of the past decade and a half. At the end of 2004, foreign nationals residing in Greece were estimated at around 1.15million (10.3% of the population). According to the Immigration Policy Institute, this figure has steadily increased since 1991, when it stood at 270,000. A survey by the institute showed that the largest concentration of non-Greek nationals was in the Athens municipality. The Greek capital is home to around 132,000 foreign nationals - some 17% of the city's population. Greece's second most popular city among foreign residents is Thessalonica. The northern port is home to 27,000 immigrants - some 7% of its population. Between July 2003 and October 2004, 700,000 residence permits were issued with 509,000 permits in force in January 2004, which fell to 250,000 permits in September of the same year, the survey showed. The highest percentages of immigrants with residence permits in Greece are Albanians, at 63.2%, followed by

At the end of 2004, foreign nationals residing in Greece were estimated at around 1.15millionâ&#x20AC;Ś The highest percentages of immigrants with residence permits in Greece are Albanians, at 63.2%, followed by Bulgarians (9.8%), Romanians (4.3%), Ukrainians (3.4%), Pakistanis (2.4%) and Georgians (2.2%). Bulgarians (9.8%), Romanians (4.3%), Ukrainians (3.4%), Pakistanis (2.4%) and Georgians (2.2%). Greek tourism professionals are bracing for yet another flat tourism season this year, with the continuing weak dollar and struggling European economies expected to offset the country's image gain from last August's successful Athens Olympics. "We expect no increase in arrivals next year," estimated Maria Daskalantonaki, one of the country's biggest hoteliers. "With output growth of 2.6 percentage points this year, the European Union is the laggard of the world economy. One realises how serious this is, considering that 90 per cent of our market is there," she told a news conference. With tourism receipts of nearly â&#x201A;Ź7.7 billion generated by 14 million visitors, Greece is the world's 10th largest tourism destination in dollar terms, according to 2002 figures pub-

March 2005

lished by the World Tourism Organisation. The dollar's slide against the euro is another negative development because it diverts tourists to other destinations, said Petros Pavlopoulos, head of research at the Greek tourism industry's research body ITEP. "It is a huge problem," Pavlopoulos told press. "Italy and Spain are not our main competitors any more. It is rather countries where services are paid for in dollars, such as Turkey, Israel and Egypt". Pavlopoulos noted that Middle Eastern tourist markets benefit disproportionately from the current tourism boom, despite fears of extremist attacks against western targets and tourists there. "If economic incentives are strong enough, people forget about terrorism". Contrary to Daskalantonaki, Pavlopoulos said he expected a global tourism boom and post-Olympic publicity gains to benefit Greek tourism in 2005, even if slightly. "We are cautiously optimistic. It will be a failure if tourism arrivals increase by less than 5 per cent," he said. Tourism is Greece's chief money-maker. According to estimates, the industry accounts for 15 per cent of the country's GDP, making it more important than manufacturing or agriculture. Tourism arrivals for 2004 decreased compared with 2003, as an unfavourable mix of stagnating European economies, fear of terrorist attacks and Olympics-related construction delays spoiled the country's image ahead of the Games. "But overall tourism receipts may not fall, as spending per tourist was higher because Olympic tourists spend more than average visitors", Pavlopoulos said. Greek Prime Minister Costas Karamanlis said last month that the country's three major objectives were to ensure Greece was a competitive country, a society that produced and progressed and a State that was close to its citizens. Karamanlis said: "Our country now faces many serious problems, since hidden debts and public deficits have led to a major fiscal problem. The reforms and changes that have been needed for many years have not been carried out. Our competitiveness declined; our exports were shrinking; development was limited only to certain sectors and did not spread to the whole country; regional and social inequalities were widening; unemployment remains the greatest social ill in our country; bureaucracy and corruption had become a scourge of society; the State had turned its back on the citizens". He stressed that the government wanted to deal with the problems at their roots and would initiate a series of "bold institutional interventions, a revolution of quality" in all aspects of public life, the state and its services. As examples, he cited the government's recent tax reforms, the new development bill and a new and simpler set of rules for business start-ups.â&#x20AC;˘

CorD special - Greece

F inance

Tireless expansion Athanassios Panagopoulos,

Country Manager of the National Bank of Greece in SCG, Chairman of the Hellenic Business Association in SCG

By CorD

"Initial reluctance was quickly replaced by dynamic enthusiasm", admitted Athanasios Panagopoulos, Country Manager of the National Bank of Greece in SCG. "In order to seize the burgeoning opportunities in the banking sector of SCG, the National Bank of Greece decided to open one branch in the year 2000 and start a "fact finding mission" on the ground. The initial intention was to present and offer various banking services to corporate clients before the launch of the NBG operation in this friendly environment. NBG quickly understood rising opportunities."

March 2005

anagopoulos explained that “the local banking sector was in turmoil at that time, due to the difficult period during the '90s. The majority of clients had lost necessary confidence in the existing banks and fresh blood was needed in the field. This need was understood by the relevant authorities in SCG. So, an initial five licenses were offered to foreign banks and the National Bank of Greece was one of them. We quickly understood that there was far wider space for NBG's operations in SCG. Thus, from the initial "just one branch approach" we jumped to the plan of expansion.” Expressed in broader terms by Panagopoulos, "the National Bank of Greece was quick to see the growth prospects presented by the opening up of neighbouring South-East European countries. It made several strategic investments to this end, forging itself into a major regional banking force in SEE. We started foreign expansion plans with a strong home base." By the end of 2003, NBG had a domestic network totalling 588 branches - the largest banking network in Greece, with around 18% of the total market. At year's end 2003, NBG had a total staff of 14,631, total Group employees of 20,752 and market capitalisation totalling €5,290million - up €2,151million on the previous year. The end of 2003 also saw the Bank hold first place for market capitalisation on the Athens Stock Exchange with a per-

CorD special - Greece

centage share of 6.3, while NBG's capital share of the Greek banking sector stood at 21.9%. Panagopoulos continued: "Looking abroad to the neighbourhood in SE Europe, the significant economic reforms taking place throughout the region were, and are, creating an attractive economic environment in which the banking sector is called to play a crucial role, promising much for the sector's future growth. "The National Bank of Greece enjoys a significant comparative advantage in the region, especially in view of its experience in developing retail banking operations in Greece over the past several years. The Bank's successful investment moves in the region are illustrated by the fact that by 2003, having invested only 4% of its assets in South East Europe, it already reaped approximately 10% of its profits from the region. Continuing the trend of the previous years, the countries of South East Europe (Albania, Bulgaria, Croatia, FYROM, Serbia & Montenegro) continue to post robust macroeconomic performances." The country manager clarified: "In 2003, for example, the region as a whole achieved average growth of around 4%, while growth of approximately 4.6% was reported for the region, with Serbia & Montenegro achieving an amazing eight per cent! "Expansion in SE Europe complements and reinforces the Bank's general outward-looking strategy, whereby 23% of its profits in 2003 were derived from activities outside Greece." The international profile of the Bank was enhanced in recent years by a number of acquisitions. In Romania, NBG

made the last acquisition of its planned growth strategy for South-East Europe by purchasing an 81% stake of Banca Romaneasca. Next, the Bank made steps to further consolidate the position of its North American subsidiary - Atlantic Bank of New York - by purchasing the Manhattan branch of Allied Irish Banks in the U.S. According to Panagopoulos, "NBG, and Greek banks in general, are aware that an important source of profitability for this sector in the future will derive from their activities in the

"There are currently 15 NBG branches in SCG and we will open another 15 branches and expand even further in 2005. Next year NBG aims to establish another 10 new branches in SCG." neighbouring economies of SE Europe as they gradually converge with the rest of Europe. These countries are particularly attractive since they are expected to achieve and maintain not only high growth rates, but also massive increases in retail banking and business credit. "The National Bank of Greece is strongly focused on achieving a line of general objectives, one of the most important being its focus on retail banking and SMEs, as well as asset management in Greece and wider South East Europe. In short, the National Bank of Greece aims to grow its operations cautiously by strengthening its core profitability and diversifying its sources of income. The aim of expansion into South East Europe is to forge the Bank into a regional banking force

F inance

Athanassios Panagopoulos

"One of the main goals of the Hellenic Business Association in Serbia & Montenegro is to enhance stronger business ties between the two countries and support Serbia & Montenegro's efforts to join the European Union soon." with access to a population of 55 million. This remains one of the ultimate goals." Turning to the specific case of the State Union's markets, Panagopoulos said: "There are currently 15 NBG branches in SCG and we will open another 15 branches and expand even further in 2005. Next year NBG aims to establish another 10 new branches in SCG. "A variety of other foreign banks also plan to seriously launch or extend their current operations in SCG in order to further penetrate this potentially lucrative market. "The banking sector in SCG is not yet congested and profit is possible," insisted Panagopoulos. "For the time being, the National Bank of Greece intends to "play on its own", concentrating on retail banking, various types of loans, preparing our credit card, installation of ATM machines…" "NBG is playing a prominent role in development of commercial and trade exchanges between Serbia and Montenegro", stated Panagopulos. "NBG will support various business activities between the two countries. We have

March 2005

put about €65million into loans here: from cash credits (41 million), to commercial (16.5 million) and building loans (7.5 million)". Mr. Panagopoulos is also Chairman of the recently established association of Greek companies operating in SCG - the Hellenic Business Association. He explained: "We intend to broaden our presentation in SCG and encourage potential Greek investors to come and venture onto this strategic market of the Balkans. Hellenic Business Association is not a lobby group, but is targeted towards bringing the Greek market and the market of Serbia & Montenegro closer, and to give Greek companies the chance to operate in a safe investment environment. "Serbia and Montenegro are strategic economic partners of Greece and members of Hellenic Business Association understand the benefits and challenges of working in this environment. The Association is comprised by the representatives of 20-something Greek companies which operate in Serbia & Montenegro, some of which have been here for more than three years now." Describing the association in greater detail, Panagopoulos said: "The founding of the Hellenic Business Association was the personal effort of Mr. Leonidas Papakonstantinidis, former Commercial Attaché of the Greek Embassy in Belgrade, who gave significant help to carry out this plan. This effort was continued with the great interest of all current members. All of the members think that this is a chance for Greeks to invest here and that it will be very useful to have one body to represent them in Serbia. Also, an additional aim is to help those companies who are interested in investing in the market of Serbia & Montenegro. "Members of the Hellenic Business Association currently employ about 20,000 workers in this country, and their investment in Serbia & Montenegro equate to about half of the total direct Greek investment in Serbia & Montenegro, which stands at nearly a billion euros. Members of the Association can be local companies with at least 50% of Greek capital." Greek interest in the State Union is all encompassing, as explained by Panagopoulos: "Greek companies in SCG are mainly interested in the food industry, construction, telecommunication services, textiles industry, but also in many other fields. Their ambitions are to penetrate on a market where they have had no presentation until now from one side; from the other side are the opportunities that we can offer to them their local partners in order to have further penetration on markets where Serbians have traditional presentation". Discussing the country's continuing reform process, Panagopoulos insisted: "regarding the legal and political framework, we can say that there is space for improvement. Up to now many things have been developed, but additional things must be changed. The political environment must be more stable. The legislation for property must be improved; the procedures and the necessary licenses for investments must be simplified. In general, Hellenic Business Association represents yet another proof of the endeavours of the two business communities of Greece and SCG, which clearly understand the benefits of co-operation in this beautiful and challenging environment. "One of the main goals of the Hellenic Business Association in Serbia & Montenegro is to enhance stronger business ties between the two countries and support Serbia & Montenegro's efforts to join the European Union soon."•

CorD special - Greece

B usiness

ATHENS

By Dragan Bisenic

BUSINESS SUMMIT Some said it was the best conference on Serbia & Montenegro they had ever attended, while others said they would have liked to have seen more practical emphasis and opportunity for interaction. But all agreed that the Partnership Initiative Conference was a key turning point in investment links between the two countries.

Serbian President Boris Tadic & H.R. Aleksandar Karadjordjevic greet conference guests

ne of the dozens of Greek and Serbian ministers to speak at the event was Deputy Greek Development Minister George Salagoudis. He said: "This has been a very important conference for the two countries and an excellent opportunity for investors. Serbia is committed to the stabilisation of regional legal frameworks that offer investors a platform to minimise risk." Salagoudis said that the protocol agreement on co-operation between the Belgrade Chamber of Commerce and the Athens Chamber of SMEs, signed at the conference, would provide a good link to bridge investments. He also spoke of a National Plan for the Economic Reconstruction of the Balkans, which will focus on Serbia. Greece is actually one of Serbia's top four investors. According to Greek Development Minister, Dimitris Sioufas, Greece has granted Serbia â&#x201A;Ź63million in development aid over the past four years. Yet, conference organisers Lifeline stressed it is investment, not aid, that Serbia seeks. Serbian President Boris Tadic called for more foreign investment and said that political stability and the country's future depended on building a strong economy. According to the summit organisers, the Serbian president gave strong support to this "convention", twice addressing attendees -

March 2005

during the opening dinner and on the morning opening ceremony. Tadic said that some of the biggest areas for investment include transport, agriculture, electricity and the media. He also highlighted banking, engineering, information technology and pharmaceuticals as key sectors for investment. "I think that we have to do everything we can in the aim of stability in the region. Without economic co-operation we cannot achieve political stability for our country and our nation," Tadic said in his conference speech. Tadic was first to confirm the deal between Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) and Rosa Water Vlasinka, Serbia's second largest mineral water company. The deal was highlighted by the president as a model for others to follow. Coke had been circling Serbia's Knjaz Milos last year, the biggest player in the mineral water sector with a total value of over â&#x201A;Ź200million. However, Knjaz was acquired recently

Serbia's Privatisation Agency (PA) stressed that firms investing in Serbia can help turn around their new acquisitions. They can also use them as a springboard into regional markets, including Russia. The agency spokesmen said that many firms up for sale by the state also have a lot of hidden resources. by the UK's FPP Balkan. A source at Coca-Cola said it was also eyeing further mineral water purchases in Serbia. The Coca-Cola source said the conference had the most impressive turnout of top Serbian ministers he had ever seen. Numerous other participants also commented on the great value of so many members of the Serbian Government being present at the conference

CorD special - Greece

"You feel that they listen and that there is support form the top," said one potential investor. The business meeting was organised by Lifeline - a humanitarian organisation of Serbian Royal Family Karadjordjevic. Ioanidis Patsiavos, Co-ordinator for International relations in the Federation of Greek Industry, said: "Communication is crucial in establishing good relations between two economies and two countries. If we know each other better we can react faster to the needs of the market. The Serbian market is very attractive for Greek business and we will continue to develop our interest". In Hotel Hilton, on the front of Plenary Hall, dozens of companies presented their offers: decorative stones, textiles, electronic devices, mineral water, mobile phonesâ&#x20AC;ŚEleni Papanikolakou, from Mathios Refractory, deals with decorative stones. On the walls are photos of the homes around the world which are adorned with the decorative stones of this company. "We are very much interested in coming to Serbia" said Papanikolakou. Stamatis Gavalis, Executive Director of Avanties Technologies - a company dedicated to Water and Environment, also hopes to invest in Serbia: "We have large scale cleaning water facilities, which can satisfy the needs of individual homes, as well as the biggest companies", said Gavalis. Altec Company also covers a very large area of business activities. Panos Alivizatos, Senior Consultant, is concerned with the development of banking and communication systems. He estimates that Altec Company can satisfy the ambi-

tions of the banks to improve efficiency of services and its security. Yet, some participants wanted to see less gloss and more opportunity to talk shop. "It is a good start, but I had hoped more Greek companies would have been here so that I could talk about doing busi-

Serbian President Boris Tadic called for more foreign investment and said that political stability and the country's future depended on building a strong economy. According to the summit organisers, the Serbian president gave strong support to this "convention", twice addressing attendees ness with them. For example, for us to be their suppliers," said Aleksandar Leposavic, from construction and lumber firm Trgo Promet. "Perhaps next time more Greek private companies will attend and there will be interactive opportunities for us," he said. However, business deals were on the road. Owner and producer of famous Serbian "rakija" Stara Sokolova, Radisav Bogdanovic, spoke extensively with potential partner Nick Veropoulos, owner of the Hypermarket Group which is rapidly expanding and growing in Serbia.

B usiness

Princess Katarina Karadjordjevic with conference panelist

At just 10%, Serbia has the lowest corporate profit tax rate in Europe, along with a host of other incentives. Serbia's Privatisation Agency (PA) stressed that firms investing in Serbia can help turn around their new acquisitions. They can also use them as a springboard into regional markets, including Russia. The agency spokesmen said that many firms up for sale by the state also have a lot of hidden resources. A senior representative from the PA explained that firms such as Belgrade-based construction company Janko Lisjak have a higher real-estate value than the firms themselves. Whilst Janko Lisjak will be sold as an ongoing concern as part of some 25 major sell-offs and hundreds of smaller ones, Janko Lisjak, for instance, has over â&#x201A;Ź20million of real estate. "The real-estate market in Serbia has been booming this last year and is set to keep climbing", the official added. However, constructive criticism was also encouraged. Djurdje Ninkovic, a Serbian legislative expert and former deputy minister of justice, warned of reforms still needed on the legal front. "Compensation for properties nationalised in the 1940s has never been paid," he said. Serbia's road-building and repair companies will also be privatised, said Milan Parivodic, Serbian minister for international economic relations, in a brief one-on-one interview on

ComTrade Director, Veselin Jevrosimovic speaking at the IT round table

Irene Lambrou-Fioranti from G. Karavias & Associates Office amoung the participans

March 2005

the sidelines of the conference. These companies will come up for sale in the 2005-2006 wave of privatisation. Deputy Serbian Minister for capital Investments, Dragana Curcic, together with Hi-Tech Operators like Microsoft and ComTrade, presented the capacities of the Serbian telecommunications market. This market is growing and she announced that an advisor for the strategy of reforms in this area will be chosen in two months. Another speaker was Irene Lambrou - Fioranti, partner in famous law firm G. Karavias & Associates. Lambrou announced the possibility that famous Insurance Company Lloyds would arrive in Serbia soon via G. Karavias' office. Predrag Grubin, from the Belgrade Chamber of Commerce, explained that the Direkcija za Puteve is the name of the state group of road-building and repair companies. "Every city also has its own Direkcija za Puteve," he explained. "Serbia has some 20 cities", he noted. Grubin also said that the government is evaluating a strategy and that concession rights were being considered as well as sell offs. A senior banker from the European Bank for Reconstruction and Development (EBRD) explained that it had invested â&#x201A;Ź76million in the road companies, with three similar loans to come. "However, Serbia has a long way to travel before it can realise private partnership projects for roads," he said.â&#x20AC;˘

CorD special - Greece

I nterview

peaking exclusively to CorD from the company's New Belgrade HQ, Pyrgidis said: "In order to increase productivity you have to change the mentality of the average worker. My company is taking gradual steps towards completing this processâ&#x20AC;ŚGenerally speaking, transition is going to take time. You cannot just go from one side to the other. The socialist system, in terms of work, often meant workers just turning up and getting paid. Now in our company we are trying to introduce a new system of management - the management of objectives." He explained: "devising managerial objectives calls on every departmental manager to break down the annual, quarterly, monthly and weekly targets, before getting together with his team to discuss projections, analyse results, specify targets

"We were fortunate enough to join the EU back in 1981, going through transition alongside Spain and Portugal. This gave us access to a lot of development area funding from the EC."

Spiros Pyrgidis,

CEO, Delyug

Managerial

objectives By Mark Pullen

Delyug, as a subsidiary of Delta Ice Cream, is just one more Greek success story in the state union. With the company continuing to grow internationally, Delyug is continuing to expand and develop its position on the SCG market, under the guidance of company CEO Spiros Pyrgidis. This month we spoke to Mr. Pyrgidis about the success story that is his country, as well as the phenomenon of Greece as an international investment country.

and determine budget requirements. With clear objectives, people are better motivated and bonuses can be linked to specific targets. Productivity is boosted, particularly if targets are coupled with a good management appraisal system. "In other words, if employees are told that reaching personal targets will result in them receiving something specific, such as better salaries, they will work harder. Such strategies are making us more like Western Europe." Confirming that developing management strategies to increase productivity would be high on Delyug's list of priorities, Pyrgidis said: "that's certainly the area that we are going to focus on internally in the next three years, because what was really thought provoking for me was the growth we experienced globally during my first year here: when I arrived in 2001 the company's revenue was 1.2 billion dinars, then, as it was reported in The Economist recently (2003 data), the company's revenue rose to 3.2 billion dinars in 2003." Explaining that meteorological circumstances could have a distinct impact on the company's sales, Pyrgidis said: "Good weather affects our sales positively. Ice cream is an impulse product and 2003 was a good summer, contributing to an increase of the revenue of the company, but the total growth of the company will depend on concrete business strategies and market channel development, and this growth will be financed by reinvesting the company's profit." Is quality also a factor that's ultimately out of the hands of Delta Ice Cream producers, considering the quality of some retail outlets? "We can ensure quality of ingredients, production and storage, but once the product is delivered its upkeep is out of our handsâ&#x20AC;Śthe production is such that storage temperature should not fluctuate. Ensuring that optimal temperature in the freezer is maintained is the responsibility of my team. We have a sales force to ensure that the freezers we provide maintain the right temperature and shop owners are not stocking meat or other products alongside ice cream in our freezers. 99.8% of the market functions properly." Is Delyug continuing to expand its facilities here in Belgrade?

March 2005

CorD special - Greece

"Yes, with the construction of a new cold storage facility we are increasing the quality of the supply chain. This will be Delta's biggest cold store on the Balkans, able to store up to 10million pieces of ice cream. Construction was done by a local company, whereas design is being carried out by Italian and UK companies, which I have brought in. With this, our company will better control the total distribution chain. We will no longer have to rely on renting. Third party cold stores were plagued by low wages and disinterested workers and, despite us paying rent, temperatures were not maintained properly, thus increasing the risk of the product". How much consideration is given to final quality standards at the point of retail consumption? "It's all part of the quality. When a lot of people talk about quality they are thinking merely about the production itself. However, you have to consider where the product has to go, how it's going to get there, and what condition it will be in. You have to ensure that the product is well kept before the consumer takes it out of the freezer. We have had, occasionally, some bad clients who mistreated our freezers and we have employed extra staff to check the conditions of our retail site freezer units. Ultimately, these factors affect the image of the company and, more importantly, the hygiene of the product. "We actually identified bad customers and excluded them out of our supply chain, and 99.8% of the market functions properly. If clients use our freezers they have a sales contract specifying that any abuse in the working conditions is not permitted. However, if independent traders put our ice cream alongside meat products in their own freezers there is nothing I can do other than hope that local health inspectors will remedy the situation". How are your plans progressing down in Montenegro? "As you know, we bought our own land down there and have built a cold store in Budva. This is very close to the airport and we also have our own fleet of trucks delivering to the individual tourism and urban centres in Montenegro. We have six distribution centres across Serbia & Montenegro to ensure quality is maintained. Also assisting our control mechanisms is that we have our sales force." Greece has proved to be the success story of this region over the past decade. Do you think there's a secret to Greece's success? "We were fortunate enough to join the EU back in 1981, going through transition alongside Spain and Portugal. This gave us access to a lot of development area funding from the EC. "Then the new name of the game for Greek growth became the consignment law. Private companies, under tender from the Government, carried out most of the massive infrastructure projects. They signed the 50-year lease agreement and the consignment law with the government, did the constructions and have reaped the benefits of transport toll fees. "The infrastructure revamping of Greece has really decongested the country, as well as contributing to reductions in traffic-related pollution. Of course, the Olympics also contributed to development in itself. "One of the major factors contributing to Greece's economy moving ahead of those in the region is that we took a lot of assistance while, at the same time, the government commenced work on serious sectors of the economy. They were

CorD special - Greece

realistic and so looked to develop a 'services' model for the economy, instead of concentrating on heavy industry. "Moreover, additional sectors - such as shipping which, I believe, contributes some 30% to GDP - have helped fuel growth. Greece has the biggest private shipping fleet in the world." Could the successful completion of the Corridor 10 network have a negative impact on Greek sea freight figures? "I doubt so, because most of these ships are big industrial oil tankers or cargo ships dealing with the wider world. In terms of ship registrations, more commercial ships travel under the Greek flag than any other." You noted that Greece took a lot of assistance when it first approached the EU. Do you think that is one of the reasons Greece is giving so much assistance to the region now? "Absolutely. We have seen a lot of Greek firms expanding across the Balkans, with huge direct investments in Bulgaria and Romania. Big Greek investment in Serbia is still lacking, with only a few large Greek firms present in SCG. It is nowhere near the levels reached in Bulgaria and Romania, principally because those countries moved more rapidly on the reform side and that aspect is still somewhat lacking here." Do you think Greek investments in SCG on the scale of those in Bulgaria and Romania are inevitable? "They will come, provided that reform legislation starts getting back on track in order for the investment climate to be improved. Greek investors and, ultimately, all foreign investors

Greek investors are, ultimately, foreign investors who want to make sure that the money invested in the country is not at risk. To make sure of this, investors have to have faith in property laws, construction laws, labour laws and all other factors one will face during operations." want to make sure that the money invested in the country is not at risk. To make sure of this, investors have to have faith in property laws, construction laws, labour laws and rule of law one will face during operations. "Investors also have to be granted access in order to feel comfortable in bringing their money here to contribute to the local economy and employment rates. Of course, GDP averages depend on purchasing powers of consumers and, in order to improve purchasing power it is necessary to seek growth in sectors of the economy that are more and more challenging." Do you think there's still a powerful element here that feels that selling companies to foreigners is tantamount to selling the country out? "Yes, but it's really not like that. Privatisation is not selling the country to foreigners. We saw this in Greece some 20 years ago and it only raised the standard of Greece. At that time there were many locals insisting that we had sold Greece to foreigners, but it really improved the level of competition and the quality of services and products offered to Greek consumers, even by the Greek companies that had to compete with foreign firms. Thus, competition improved the standards of local firms."â&#x20AC;˘

March 2005

I nterview

Coca-Cola Hellenic Bottling Company (CCHBC) established its presence in the then FR Yugoslavia with the acquisition of a majority stake in IBP "Beograd" AD in 1997. At the time, the purchase by HBC's Balkaninvest Services Ltd represented the largest foreign investment in the country.

Committed to Continuity Stefanos Vafidis,

General Manager, Coca-Cola HBC

By Mark Pullen

he formal merging of Athens-based Hellenic Bottling Company S.A. with Coca-Cola Beverages plc in August 2000, led to the consolidating of operations in the State Union. According to Stefanos Vafidis, general manager of CCHBC, the company "significantly raised the level of investment in Serbia & Montenegro since then, developing the production capacities and intensifying business operations, which now amount to â&#x201A;Ź110million". Vafidis continued: "We have five production lines in our bottling plant in Zemun, and seven distribution centres across the country. Today, Coca-Cola HBC is the country's leading soft drinks producer, with a staff of 900 people and more than 3,000 business partners. In this way we have created one of the country's most successful business systems." How have your investments impacted on production and the marketplace as a whole? We are committed to continuous investments in production facilities, market, the environment and our people. We have increased our capacities by improving the capabilities of existing lines and adding new production lines. Since 2001 we have added two new lines and increased the capacity of the existing three lines by 50%. Since 1997, Coca-Cola HBC has tripled its production volume and introduced 39 new products and packages. Now our Company is offering a wide and solid portfolio of the most famous world brands in the category of carbonated soft drinks, including Coca-Cola, Coca-Cola Light, Fanta in 4 flavours, Sprite, Schweppes Bitter Lemon, Schweppes Tonic Water and Schweppes Club Soda. We directly supply more than 2,000 buyers and co-operate with around 400 distributors, who together with their partner and retail network give us a market leadership. This means that our products can be found in almost every retail store in the country. It's our goal to make our products available to our consumers and show how much we care. Therefore, it is logical that we invest heavily in the market. We are a company trying to understand our customers better than others, supporting local retailers and distributors by providing equipment and distribution bonuses.

March 2005

Do you have any other areas of investment? People are of the utmost priority for us. We are aware that our employees are our biggest and most valuable asset, so we have invested over 100,000 hours of training in our employees so far. In the last three years alone we created over 300 new jobs. CCHBC is committed to the growth of local management capabilities, constantly improving the development and skills of our people. Over the last seven years, we have been continually developing and upgrading the Environmental Management System. Every day we give our contribution to environmental preservation by lowering the use of natural resources and preventing pollution, as well as reducing, regenerating and recycling solid and liquid waste. In February last year, the ISO 9001 Standards for quality management were introduced, and 14001 for Environmental Protection. Coca-Cola HBC is amongs the first 15 companies in Serbia & Montenegro to fulfil the ISO 14001 requirements. We are finishing construction of the Water Waste Treatment plant, which is the biggest ecological building site in the country and includes an investment of more than â&#x201A;Ź1.5million. You have just announced the acquisition of Vlasinka, owner of highly successful local brand Rosa. Do you intend to invest in facilities in Southern Serbia? Definitely. We are strongly committed to development of Vlasinka. This year alone we plan to increase capacity by introducing a new production line. With the Coca-Cola System, Vlasinka will benefit from a respectable international experience in production, marketing, sales and an unparalleled distribution network. Rosa already has very strong equity. However, with our system's superior marketing expertise we expect to increase its value for the consumers. Is the company planning to realise Rosa's potential as a strategic export product? Our Group, Coca-Cola Hellenic Bottling Company, operates in 26 countries across Europe, including similar bottling operations in all former Yugoslav republics. Export orientation is certainly important for us. It is in our Group's future plans to take advantage of the geopolitical position of SCG and, by heavily investing in our bottling operations, increase our capacity to cover the incremental needs of

CorD special - Greece

the neighbouring countries. Now Rosa has joined our portfolio and, as a brand, it is already present on a number of export markets. Using our distribution network, we would be able to expose Rosa to other markets, but it is early to comment on details. Did the historically excellent relations between Greece and Serbia influence your decision to purchase Vlasinka? Not only in a geographical sense, but our two countries are certainly close in cultural and historical ways. And, I believe, there is a proven commitment of Greek business to invest on the Serbian market. However, in business decisions, brand is our biggest consideration. We invested a lot of time to investigate all opportunities, locally and internationally. Our strategic choice was Rosa, a local brand with an extremely strong potential. It is a young and successful brand, matching our portfolio and belonging to the segment in which the Coca-Cola system in SCG currently does not own brands. Taking over Vlasinka, thus, proved to be an optimal, promising means of implementing our strategy of expanding into the bottled water category. Does CCHBC intend to participate further in the privatisations and/or purchases of other drinks companies in the State Union? It is our strategic objective to expand our non alcoholic beverages portfolio and to be present in all relevant AFB categories. We are investigating all of the opportunities to further expand our product choice to be able to satisfy the growing and changing needs of our consumers. Is CCHBC satisfied with domestic legislation and regulations governing this sector of industry? This market is in an early transition period, but a fast growing one with a lot of opportunities for investors. The economy has been stabilised over recent years, but there are still obstacles which need to be overcome, such as changing the complex legislative environ-

ment. For example, I can emphasize the land issue and free trade agreements as those which have to be resolved in order to intensify the level of foreign investments. Would a negative response to the EU Feasibility study have any affect on your operations in SCG? It is important for all investors that Serbia & Montenegro becomes a part of the European Union. But we are also aware of the difficulties to that process, which requires a lot of time and effort. We are look-

It is important for all investors that SCG becomes a part of the European Unionâ&#x20AC;ŚWe are looking forward to that moment, but we also see a lot of opportunities still to exploit in Serbia & Montenegro prior to integration. ing forward to that moment, but we also see a lot of opportunities still to exploit in Serbia & Montenegro prior to integration. How would you evaluate the potential of Serbia & Montenegro for CCHBC's future growth? We believe in the prospects and future development of the country. Purchasing power is increasing, consumption per capita is growing and grey market impact has been drastically decreased. There are further opportunities to exploit, especially for sourcing quality raw materials and entering new markets. Serbia also has high potential people resources, coming from quality education and current increase of repatriation. All of this, together with highly developed consumer habits, gives me the confidence that this market could be one of the biggest potential markets in the region.â&#x20AC;˘

C omment EU enlargement towards the east, and the European perspective of our neighbouring countries, enhances the geostrategic position of Greece and of Thessalonica, transforming them into a hub of cross country - inter Balkan co-operation and promotion of business actions and initiatives. According to this new role of the city, its authorities are invited to play an important role; HELEXPO is among them and is the biggest organiser of exhibitions, congresses and events in South-East Europe that has been functioning in Thessalonica, the heart of Greek production, for more than 70 years. The role and contribution of HELEXPO in the field of exhibitions and congresses in the financial, social and cultural development of Thessalonica and the wider area is very important and unquestionable. All events, and particularly the General Trade Fair of September to promote the Greek entrepreneurial spirit worldwide, indicate the economic potential of Greece and enhance the economic growth of the country and commercial co-operation among peoples. Moreover, the presence of foreign state and business ventures give the Trade Fair a wide multicultural and commercial character. The international commercial prestige and efficacy of HELEXPO becomes the competitive advantage in this historically and geographically unified economic space of the Balkans, the Black Sea Region and the Eastern Mediterranean. All events take place in the Thessalonica International Exhibition and Convention Centre, located at the heart of the city, occupying a space of 180,000m2 and including, apart from pavilions, the "I. Vellides" Convention Centre, with a

Aristotelis Thomopoulos, President of HELEXPO SA

Thessalonica:

Launch pad city Political and economic developments during the last 15 years in the Balkan region "unify" the Balkan Countries in a certain way, on an economic, strategic and cultural level.

n this unified environment, Thessalonica makes the best use of its history, its proximity to the Balkan countries, its multicultural civilization and the level of its economic and institutional development as a major city of a member state of the European Union. Thessalonica, a city that has always been open, not only to different cultures, but also to financial activities, presents a unique economic and commercial interest for foreign investors, but it is especially seen by foreign investors as a launching pad to the Balkan region. A new political and financial reality, in the European environment and worldwide, has given birth to new opportunities for growth. In this context, and given the orientations of financial actors and of the Greek Government, the city tends to go beyond its regional operation and, undertaking a new role, tends to integrate into wider networks of economic and cultural activities.

March 2005

capacity of 2,400, and the "N. Germanos" Convention Centre, with four halls and a total capacity of 720. In Athens, HELEXPO owns the Athens Exhibition and Convention Centre: the most well-equipped Convention Centre in Greece. As it is well known, HELEXPO S.A. organises an International Trade Fair of international importance every September and approximately 20 International Branch Exhibitions while, on the other hand, it hosts, on average, around 14 annual exhibitions on behalf of third parties. HELEXPO organises exhibitions in the following sectors: agriculture, food, beverages, construction materials, cooling - heating machinery, furniture, books and editions, fishery and fish farming, informatics, tourism, jewellery, local government, sports, animation, machinery and raw materials for furniture, transports and logistics, marble, bakery, confectionery, coffee, metal, livestock, poultry, health and

CorD special - Greece

healthcare. Furthermore, it organises an exhibition for individuals with special needs. All exhibitions are accompanied by various parallel cultural, scientific and other events, the International Trade Fair being their culmination point. Exhibitors in all events organised by HELEXPO number more than 8,000, while the total numbers of visitors is more than 1,600,000. Additionally, HELEXPO organises pan-Hellenic regional and international congresses and one-day conferences. Its congress agenda includes some of the most important Congresses, such as the Congress of the Council of Greeks abroad, the Congress of Computer Applications etc. Meanwhile, it rents its equipment and premises to third parties for organisation of exhibitions and conferences. The organising of exhibitions is not only a means for the promotion and enhancing of the Greek entrepreneurial spirit but, fundamentally, is a meeting point for the communication of entrepreneurial innovations in the Balkans and International reality. Traditionally, the Thessalonica International Trade fair has always been a friendly and efficient appointment for the enterprises of Serbia & Montenegro and those of the wider region. It has contributed, and continues to contribute, to the development of commercial and financial relations of the two countries: relations that have always been friendly. Thessalonica and Belgrade are two cities with a long history and culture; cities with bonds, they are two cities that have a special status in the Balkan region.

In our times, there is a strong belief that they are two cities which are hubs for the development and co-operation in the wider Balkan region, while the increased co-operation of the

Thessalonica and Belgrade are two cities with a long history and culture; cities with bonds, they are two cities that have a special status in the Balkan region.

two countries in the sectors of trade, exhibitions, economy and tourism, will offer more positive results to our countries and their people. As to this last point, under my capacity as president of the Union of Hotels Owners of Thessalonica, I would like to point out that not only the Byzantine Thessalonica, with its monuments and beautiful market, but also the blue coasts of Chalkidiki, Katerini, Kavala and Thasos, welcome tourists from Serbia & Montenegro. It is clear that tourism bodies aim to increase the number of tourists in Greece, and vice versa. I believe that our people, as Balkan people with common histories, religions and cultural references, can, with the help of their leaders, create channels of communication for the enhancement of this realistic goal.â&#x20AC;˘

Humanitarian Aid Tzanetos Karantzis, First Secretary Economic and Commercial Affairs, Embassy of Greece

Greece has a strong presence in Serbia & Montenegro in the fields of humanitarian and development assistance. Humanitarian assistance was particularly prominent during the period from 2000-2002 and was indicative of the feelings of solidarity between the peoples of the two nations during times of hardship.

"Since 2000 the whole package of humanitarian and development assistance provided by Greece has totalled approximately â&#x201A;Ź44million. This figure relates to already completed projects or projects currently underway, and not those planned for the future or the costs of the peacekeeping force in Kosovo." He explained: "Of this 44million, around 8.5million was used for humanitarian assistance. In the beginning, during 2000 and 2001, the humanitarian assistance was a great part of the total, but since then it has declined in favour of development assistance in response to the policy of the Serbian Government towards donors. They asked that there be no more humanitarian assistance, but rather purely developmental help and we reacted accordingly by intensifying our developmental assistance. For Greece, the most important infrastructure programme is Corridor 10, for obvious reasons. This is of paramount importance and the main efforts of our developmental

Unwavering support By Mark Pullen, Photo Andy Dall

orridor 10 remains the top priority of Greece, though such "grand projecting" is not the only component of Greek assistance. The Greek Embassy in Belgrade has used a Small Project Fund to facilitate projects to swiftly address urgent local problems. Moreover, the Hellenic Ministry of Foreign Affairs has, in co-operation with Greek and local NGO's, funded a large number of social, cultural, and construction programmes throughout the country. Indicatively, these range from scholarships to transfer of know-how to SMEs; from reconstruction of libraries, houses and schools to support of environmental initiatives. This month we spoke to Tzanetos Karantzis, of the Greek Embassy in Belgrade, about the humanitarian and continuing development support provided by Greece to its old friend Serbia. "There is no need to say how much Greece views Serbia & Montenegro as an important counterpart, neighbour and friend. We've built on our traditionally strong ties and when this country went through the difficult period of the '90s Greece managed to support the country through its hardships and that was appreciated here.

March 2005

assistance are aimed towards developing this. As a matter of fact we have approved two projects of the Serbian Government relating to Corridor 10, specifically the southern part from Belgrade, through Nis and the Presevo valley to the border. "Corridor 10 is undoubtedly the biggest and most essential project, but personally I believe that the small projects are of equal appeal and importance. We are very active in this area. Last year we approved and realised ten projects that didn't cost a lot of money - around â&#x201A;Ź260,000. These small projects are flexible, directly handled by the political and economic sections of the embassy and are aimed towards specific needs that require immediate attention. For example, one of these projects involved the school on Skadarlija. We refurbished part of the school and provided equipment that was needed. Also, renovation works at the cultural site of Zitsa Monastery were financed through this Small Projects Fund." Are these smaller projects more satisfying because you can see the tangible effects? Yes, and quickly. They are directed towards specific needs and you can see results in a relatively short period of

CorD special - Greece

time. It's very satisfying to see something happen fast that helps the community. We very recently signed a contract with the UNDP so we can contribute towards the 'Beautiful Serbia' project by funding the refurbishment of four buildings. This is just another element of our assistance that people will be able to see every day on the streets of Belgrade. Another part of our intervention here is the grants that we give for enterprises, production, manufacturing and agriculture. To date we have approved â&#x201A;Ź3million for three different investment projects. Are these strictly Greek investment projects or do they support domestic companies? Successful applicants can be from anywhere, though up to know it is Greek companies that have benefited. This practically means any company in Serbia & Montenegro can apply, though, of course, they have to go through Greek procedures and all applications must go through the Greek public administration. But ultimately the only criterion is that the project helps the development of Serbia & Montenegro? Yes, that is the aim. The technical criteria are twofold: the amount of money to be invested and the field of the investment, namely manufacturing and agribusiness. Our grants are being given for these two areas and can be up to 30% of the total investment planned. When it comes to giving grants and supporting projects do you give the money and sit back or do you take a hands-on role in realising the projects? We monitor progress, but not too closely. Criteria have to be fulfilled, deadlines met and proof has to be given at the end that the aims have been achieved according to the plans. It's not a hands-on approach. Applications are made and if the Greek Ministry of the Economy (they control such projects, rather than the MFA) approves the applications the grants are given and the projects commence without close monitoring. Within the region as a whole, is Greece giving support specifically to SCG or supporting all the countries of the Balkans? We are supporting the whole of the Balkans: from Bulgaria to Serbia & Montenegro, Albania, Bosnia & Herzegovina,

Romania and FYR Macedonia. These countries are all supported by the Greek side, but the biggest part of our support is given to Serbia & Montenegro; SCG alone receives almost as much money as all of the other countries of the region combined, which is indicative of how important this country is to us. How long will your intensive support continue? Until EU short-listing is achieved or full accession, or will it go on indefinitely? This support has nothing to do with EU accession, though other forms of assistance will come into play once the country gets into the position where it is ready to join the

We are supporting the whole of the Balkansâ&#x20AC;Ś but the biggest part of our support is given to Serbia & Montenegro; SCG receives more money than any of the other countries, which is indicative of how important this country is to us. Union. So, our support will remain as strong as it is regardless of what happens between Serbia and the EU. How would you sum up your experiences of working with Serbian people here on the ground in Belgrade; have they proved responsible and forthright? I've had no problems whatsoever. I have been dealing with these small projects and everyone has been so co-operative and responsible up to the point that sometimes I feel bad that maybe I'm not as responsible as they are. We have very good co-operation really, on both the small and large projects. Every effort has been made to start realising the largest part of our project here. There have been delays, but nevertheless we are trying to speed up procedures and start realising our major infrastructure projects. The delays of the larger projects are linked to rigidity because the smaller projects are generally more flexible and, as such, have proved easier to complete. I must stress how well we have worked with the Serbian side. My experiences have been excellent and very positive. I've worked in other Balkan countries in the economic office, but here people are much more responsive and we have found ourselves able to really depend on them.â&#x20AC;˘

Tzanetos Karantzis talking to our editor

CorD special - Greece

March 2005

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Cradle of Culture Last year was undoubtedly Greece's year, for the entire world to see. The country's stunning victory at the European Football Championships in Portugal was followed by the successful and long overdue return home of the Olympic Games to the country of the concept's birth and the world turned to Athens in recognition that Greek cultural heritage was undoubtedly one of the most important factors shaping the development of Western civilisation.

By Nina Nicovic

f one asks oneself where the cultural development of Europe began, the answer would certainly be found in the ancient cradle of culture that is Athens. The city state of Athens was not only the bosom of Western civilisation, but also the first model for the "metropolis", examples of which later sprung up across the continent, and indeed the world. During the Persian Wars that raged from 500-499 BC, Athens became the strongest city state and, during the time of Pericles (443-429 BC), one of the greatest statesmen of ancient Greece, Athens achieved the pinnacle of its cultural and imperial identity. The unique infrastructure, shaped by careful urban planning, made Athens a city able to provide a variety of intellectual and cultural events for its citizens. With the development of literature in Greece, that always had its basis in mythology, the true patronage of fine arts, as we know it today, actually started with the founding of theatres. Greeks invented the concept of theatre from the years 600 to 200 BC, which formed the foundations of Western theatre as we know it.

March 2005

The origins of Greek theatre lay in the Cult of Dionysus, which included the worship of the gods of agricultural and human fertility through the form of intoxication, orgies, human and animal sacrifices. Over time and with its growing popularity the concept became more civilized and grew into story telling, drama and play form. This initially religious practice was staged every spring through every part of Greece. However, once the ceremonies took the form of plays, drama competitions were established bringing more popularity and building theatres like the Theatre of Dionysus in Athens, the Theatre at Delphi and the Attic theatre. Even then the patronage and funding of the theatres gave tax relief for the wealthy patrons who produced it. With that kind of encouragement the biggest theatre of Dionysus grew in popularity, hosting 17,000 spectators and 30,000 competitors per play. All of those factors contributed to the evolution of Greek drama that started with one of the most famous playwrights of ancient Greece: Aeschylus, the founder of Greek tragedy, whose plays are known even now. His first play 'Persians' (472 BC) is the first play ever written. The trilogy of tragedies

During the Persian Wars that raged from 500499 BC, Athens became the strongest city state and, during the time of Pericles (443-429 BC), one of the greatest statesmen of ancient Greece, Athens achieved the pinnacle of its cultural and imperial identity. 'Oresteia' (458 BC) was his masterpiece and his contribution to the development of ancient theatre was in adding the second actor to interact with the first one, as well as adding props and scenery to the plays. Sophocles was the most famous playwright of the golden age, outshining Aeschylus with the adding of a third actor in plays and moving the plot of drama to dialogue between humans rather then human-gods interaction. His pieces 'The

CorD special - Greece

Panorama Acropolis Oedipus Trilogy' and 'Electra' are still performed today. Drama was not the only genre that the ancient Greeks invented. The creation of comedy in Greek theatres is something that later shaped the essence of plays in Rome and the Elizabethan Age of plays. The fathers of ancient comedy include Aristophanes and Menander. From characters of celebrities in the Old Comedy phase and to the wit of ordinary everyday people in the New Comedy period, the style of these playwrights can be seen even in Shakespeare's "Comedy of Errors" two millennia later. The form of these plays lives on today through their interpretation in modern theatres and are worshiped in Greece in the form of numerous festivals that include celebrated international cast and plays, alongside domestic performers. The Epidaurus annual festival, to be opened in July and August 2005, has been dedicated to the revival of ancient drama since its inception. The interpretation of ancient drama in an ancient theatre by famous artists is what makes this festival so well known throughout the world. The Hellenic festival is to celebrate 50 years in the famous Odeon of Herod Atticus from the 20th May to 9th October. The programme of 50 grand events was presented by the ministry of Tourism in efforts to celebrate Greek culture and tourism even more. One element that remains most visible to the naked eye (even the untrained one) is the influence of Greek architecture through history. The most famous invention of ancient Greece is the 3 types of pillars - Doric, Ionic and Corinthian. These types of pillars, which are present in all monumental buildings around the world, became famous as a result of their use in the construction of temples. Typical Doric pillars are most representative in the Parthenon temple dedicated to the goddess Athens, which was built in 5 BC. Ionic order was at the temple of Erechteum, built between 421-405 BC on Acropolis, the Temple of Apollo at Dydima and Temple of Athena Nike. The last created Corinthian pillar wasn't used that much by the Greeks, the most famous being in the temple of Zeus in Athens. Besides temples, the nursing of fine arts was also present in ancient Greece. Such arts included pottery, sculpture and jewellery. Pottery was certainly most famous as a Greek trademark in vase painting, which described themes from mythological stories. Greek sculptors were the first to sign their work and

CorD special - Greece

paint sculptures in order for them to look more real. Jewellery was a constant in the everyday lives of ancient Greeks. They had a specific embroilment of gold necklaces with a technique that has been lost ever since. That fine craft of necklaces portrayed pictures from everyday life and the quantity of jewellery found on archaeological sites show that it was even present in everyday occasions with details that were made out of copper and other decorative metals. Frescoes were used to decorate the ceilings of the homes of upper class citizens and even though information on that

Drama was not the only genre that the ancient Greeks invented. The creation of comedy in Greek theatres is something that later shaped the essence of plays in Rome and the Elizabethan Age of plays. particular art is slight, we can still find it in Roman records. Greeks also showed their ever-present passion for theatre with the presence of numerous instruments and choirs that would be introduced in the middle of the amphitheatres during a play. Bearing that in mind it is no wonder that these kinds of celebrations of music and plays continue even today

Pharthenon

March 2005

C ulture in the same ancient theatres. For example, the July Music festival in the ancient theatre of Epidaurus is famous for its numerous musical performances in the summer, performed by the biggest foreign and Greek performers. The fact that the discontinuity of Greek culture practically never happened ensures it is no wonder that the Greek art scene created such names as Mikis Theodorakis and Vassilis Papakonstantinou that can be singled out as the creators of the post-war revived Greek music. Mikis Theodorakis is one

of the most famous Greek composers. He wrote all musical forms and managed to include everything from Greek poetry, prose, musicology and philosophy in his compositions. From 1954 to 1960 he worked in Paris and London, and from 1960 he helped reinvent Greek culture by personally contributing with creations of world-renown "Axion Esti"(It's worthy) a poem by Odysseus Elytis on post-war Greece that was set music by Theodorakis. Other significant pieces include an oratorio "Canto General" the ballet "Zorbas", operas "Kostas Kariotakis"(The Metamorphosis of Dionysus) and "Lysistrata". Because of his versatile music genres his works also include symphonic music, chamber music, popular and cinema music.

The Theatre of Dionysus in Athens

Delphi theatre Epidaurus theatre

March 2005

Vassilis Papakonstantinou is famous as a great rock singer. Born in Arcadia in 1950, his family moved to Athens seven years later where he soon grew with all of the social revolution that was going on in Greece at the time. Protest rock, liberation movements and international peace, as well as the works of Mikis Theodorakis, shaped Vassilis' wish to become a rock singer and performer. He started singing artistic Greek songs and continued his career in the club scene. In 1976 he co-operated with Theodorakis and created the song Tis Exorias (song of Exile) while on tour with the famous composer. By the mid '80s he became the most popular concert performer and because of his unique preaching style his fans include all generations of people. Considering the global omnipresence of Greek art, one can notice that the variety of theatre plays, music and dance festivals justify the place that its culture has and always will have in the world. But if we look into the future of the Greek culture it would surely include its growing contemporary art scene. The representatives of this new generation are artists such as Diamantis Aidinis, Yorgos Lazongas, Leda Papakonstantinou and internationally acclaimed art collector Dakkis Joannou. Diamantis Aidinis is one of the most significant artists in Greece today. His works are made of various metals that are presenting 3D tin and coloured figures that form an ironic

CorD special - Greece

story of caricatures of heroes. In the '80s, whilst living in Italy, Aidinis was involved in the Transavangarde movement when he was a cartoonist for the "Babel" and "Anti". Yorgos Lazongas is considered a unique artist because he considers turtles as the soul witnesses of passing history. Trained in architecture in Thessalonica, his first introduction to public was at the Goethe institute in Athens. Leda Papakonstantinou has included chairs in her newest exhibitions as the additional part of her constructions and designs on the walls. The fascination with chairs comes from the idea that they are receivers of the human body. This vibrant artist has experimented with materials such as wood, metal, earth, sand, fruit, paints, oils and, more recently, photography, TV and video. She has even participated in the artistic direction of films and TV programmes. Dakkis Joannou is a leading international art collector and a very important figure of the Greek art scene because of his impeccable art collection that has always put Athens on the map of contemporary art exhibitions. Ever since he based his collection on the art scene from the '80s, a decade that he believes significantly changed the course of modern art, he has always managed to assemble famous curators for these special events. His most recent exhibition was organised as part of Greece's cultural programme for the 2004

Homer

Greek sculptors were the first to sign their work and paint sculptures in order for them to look more real. Jewellery was a constant in the everyday lives of ancient Greeks. They had a specific embroilment of gold necklaces with a technique that has been lost ever since. Olympic Games. The exhibit 'Monument to Now' was acquired from the DESTE foundation and includes the most significant contemporary art pieces that can show the visitors all of the current trends of the international art scene. The origins of Greek dance are mainly associated with godly worship ceremonies. Dance was thought to be a rare gift that the gods were giving to a few special mortals so they could pass it on and teach it to others. The culture of dance came from Crete which was known to nurture all sorts of fine arts, music, song and dance. Dance was highly regarded because of its educational qualities and the connection between physical exercise, body and soul. The ancient texts described two types of dancing: dance of war and dance of peace. There were nine dances that were present in ancient Greece, such as the Pyrrihic - a dance of martial arts used for basic military training in Sparta and Athens. On the other hand, Gymnopaedia was the equivalent of present gymnastics and in ancient theatres Emelia was the dance of tragedy, Kordax the dance of comedy and Sikkinis the dance of satirical drama. Present day Greece is nurturing the culture of dance more then ever, with vast numbers of schools supported by the ministry of culture and numerous festivals. The Greek Dance Theatre, Dora Stratou, was founded in 1953 and represents a living museum of traditional Greek dance, songs and music. The performance includes original interpretations of the dances that are still preserved in some parts of

CorD special - Greece

Detailf form Acropolis

Vine amphora

March 2005

C ulture

Hilandar Monastery Greece, particularly the villages or the islands. The dances include the original museum costumes that are handmade and one century old. The Greek Ministry of Culture and National Tourism now permanently fund the theatre's activities along with other government agencies. Besides preserving the traditional form of dance, modern festivals are always present in the cultural life of Greece and with this year most significant one, which is called The Mediterranean Platform of contemporary dance, Greece, as one of the main organisers, puts the cultural exchange between Mediterranean countries on a whole new professional level. Another important event, launched by Athenian dance theatre 'Roes' under the name "Dia-Roes", is a meeting of various young artists to express new ideas. There are 92 participants of this event and a lot of famous artists are participating, like the group "Spira-Spira" with Stamatis Kraunakis - an acclaimed director of musicals. Certainly the thing that will always be a significant connection with the past, present and the future of the cultural and spiritual life of Greece is the holy mountain of Athos, which contains 20 Greek, Russian, Bulgarian and Serbian monasteries. The Serbian abbey of Hilandar is nestled in a wooded area 50 metres above sea level. The Serbian abbey was founded in 1198 when Byzantine emperor Alexius III Angelicus bestowed the abbey and granted its autonomy as an eternal gift to the Serbian people and to Serbian King Stephan Nemanja and his son Sava.

March 2005

Its name, Helendarios, is derived from the founder of a small abbey, the son of King Stephan Nemanja who became a monk under the name Sava. King Stephan Nemanja also became a monk after his son joined the order and was a given a new name Simeon. Sava and Simeon created Hilandar as a gift to the Serbian people to lighten its path through centuries. From the 13th century they brought various treasures to the monastery, which later became a religious centre for the Serbian people. Every Serbian king from then on contributed to the renewal of the abbey itself and its treasures. The main temple was built in 13th century, but the St. George chapel has 14th century frescoes beside floor mosaics and wooden sculptures reredos, unique to the world. The altar wall paintings are from the year 1623. Other treasures include sceptres, portable icons, icons or crosses with precious stones, historical documents, banners of kings, embroideries and coin collections. Hilandar's icons date from the 12th to the 20th centuries. But the thing that has always been present is the variety of icons that cannot only be measured in terms of beauty or precious stones, but also miracles traits. Seven icons in Hilandar have been known to be miraculous and maybe one of the most famous is the icon of the Three-handed Mother of God. This is also the saint that Hilandar celebrates as its patron saint. Legend has it that a third hand made of silver was added to the original icon as a symbol of gratitude from John of Damascus, theologian, whose wounded hand miraculously cured after he reputedly prayed under the icon. Another thing that is miraculous in Hilandar is the vine that emerged from St Simeon's tomb 800 years ago and still bares fruit and helps barren woman to have children. The Hilandar library contains 800 manuscripts and 7,000 prints. The abbey always represented a literature centre and

The Serbian abbey of Hilandar is nestled in a wooded area 50 metres above sea level. The Serbian abbey was founded in 1198 when Byzantine emperor Alexius III Angelicus bestowed the abbey and granted its autonomy as an eternal gift to the Serbian people and to Serbian King Stephan Nemanja and his son Sava. its manuscripts date back to the 12th century. The manuscripts are mainly Greek, Serbian, Russian and Bulgarian. Their significance lies not only in their historical or religious content, but also in the unique craftsmanship of writing and miniature painting. Unfortunately, the abbey Hilandar caught fire on 4th March 2004, destroying more than half of the monastery's complex. Four chapels, monks living quarters and many icons from the 14th century were lost. The treasury, library and the main chapel were spared and still preserve the treasures that made it so unique. Mount Athos - the Holy Mountain - along with Hilandar, are on the UNESCO World Heritage List. The variety of culture that is so much integrated in the Greek national being shows that it will continue to be, as it always was, one of the creators of modern civilization.â&#x20AC;˘

CorD special - Greece

S port

n recent years the special treatment of Serbian & Montenegro sportsmen in Greece has been especially evident, as has the status they have been afforded because of their nationality. For example, famous Serbian volleyball coach Sava Grozdanovic was appointed as a selector for the Greek national team, basketball player Dejan Bodiroga was welcomed in Athens, despite being a Barcelona player; fans and owners of Panathinaikos have expressed their specific sympathy towards selectors of the SCG team; Zelimir Obradovic, Dusan Bajevic and Predrag Djordjevic represent the crux of the Olympiakos football squad, while Dusan Ivkovic and Zarko Paspalj have made invaluable contributions to the Olympiakos basketball club. Moreover, Predrag Stojakovic even served in the Greek army and sports fans in Greece especially remember trainers Stjepan Bobek, Sava Grozdanovic, Bozidar Maljkovic, Vlada Djurovic, Zoran Gajic, Nikola Stamenic, Dusan Osmanagic, Dusan Sakota... True, all of them were respected pri-

Sporting ties By Todor Milenkovic

Serbia did not compete in the first modern Olympic Games in Athens in 1896. However, in spite of this fact Serb King Aleksandar Obrenovic was the only foreign head of state officially invited to attend the games by the Greek monarch King Georgos. Those who are aware of the special relationship that has existed between Greece and Serbia over hundreds of years will not be surprised by this example of the Greco-Serb friendship.

Zelimir Obradovic and Dusan Ivkovic marily as masters of their sports, but every one of them would confirm that they have received "treatment" because they came from Serbia & Montenegro. "It is well known that we and the Greeks love one another. I felt that during my first day in Greece, where I have had an extremely pleasant and comfortable time. I made lots of friends there. My children and grandchildren now live in Athens," said Sava Grozdanovic, who played an important role during the pioneering days of the Greek national volleyball team. Grozdanovic, the first Serbian trainer to work in Greece, took control of the Greek representative team during the 1961/62 season, and was later in charge of Panathinaikos. One of his volleyball protĂŠgĂŠs, who was also Greek pole vaulting champion, has since become Greece's Head of the State:

March 2005

"I sent a congratulatory telegram to the new Greek President, Karolos Papulias, following his victory at the elections. I trained him for the representative team. During his time as Greek Foreign Minister I was asked by some people from the Greek Embassy in Belgrade what kind of volleyball player he was and I replied that he made a better minister than a volleyball player." Grozdanovic explained: "One should bear in mind that I was the first Greek selector. At that time Greek volleyball was starting from scratch and all representative players were more-or less of similar quality." Grozdanovic continues to maintain personal contacts with Panathinaikos, the Greek Volleyball Association and many friends outside volleyball circles. The famous volleyball pioneer's book "Volleyball School" was recently published in Athens by famous publishing house 'Livanis'. Indeed, Grozdanovic's half-century relationship with Greece continues to this day, although it was the determination of the Panathinaikos club that ensured he was so long associated with Greece. "I was recommended to the Greeks by the late Artur Takac, and Stjepan Bobek was meritorious in my return to Athens in 1969." He explained: after returning from Athens "I wanted to stay because I had been allocated a flat and had excellent conditions at Partizan. I presented Panathinaikos with some extreme demands, expecting them not to be accepted. However, they accepted them all without question. They showed understanding at Partizan and said to me "it might be better if you go because you can always return". Describing the people of his long-time home from home, Grozdanovic said: "Greeks are great patriots. Perhaps they don't get along very well between themselves and are politically quarrelsome, but they love their country above everything else. They have strong family ties and, just like Serbs, love to liveâ&#x20AC;Ś"

CorD special - Greece

Many Yugoslavs have journeyed the road of Greek sporting success, but Grozdanovic singled out the influential and worldrenowned Artur Takac. Takac was in a position to open every door and soon Sava Grozdanovic's words were carrying significant weight: "The influence of our trainers over Greek sport is obvious, particularly with regard to football, basketball and volleyball. I worked in Greece at the same time as Stjepan Bobek, who I personally recommended. Panathinaikos became interested in Branislav Vukosavljevic and he hadn't even imagined that he could reach Bobek's status. It turned out that it was a bull's-eye, both for Panathinaikos and for Bobek. "When it comes to football, one should not forget Branko Stankovic, and the reputation enjoyed today by Dusan Bajevic is also well known. We have also made our mark in volleyball, as proven by the results of Zoran Gajic and Ljubomir Travica," said Grozdanovic. Stjepan Bobek went to Athens after securing three consecutive titles for Partizan, from 1961 to 1963. He immediately got the club on its feet. Not much more was needed for him to achieve similar success with Panathinaikos. After successes in '64 and

Sava Grozdanovic: "Greeks are great patriots. Perhaps they don't get along very well between themselves and are politically quarrelsome, but they love their country above everything else. They have strong family ties and, just like Serbs, love to live…" '65, the team finished just a solitary point behind the champions in 1965. By 1967 Bobek had brought the club its first trophy - the 1955 National Cup. Bobek insisted: "I wouldn't know life if I hadn't lived in Athens. I spent my golden years there." The Yugoslav football legend continued, describing Greece as having "friendly people, an enjoyable climate, cuisine that suits my tastes and supreme music. I instantly fell in love with bouzouki and Greek music. I loved to listen to Viki Moskoliu, Poli Panou, Ria Kurti, Gavanas…" When it comes to music, Bobek noted that he'd been born on the same day (3rd December) as famous Greek singer Maria Kalas. He said jokingly: "Anyone can be a football player, but it is true success to be born on the same day as the Great Maria Kalas. It is an accomplishment." Bobek's success is unquestionable. In his first season, '63'64, the team were state champion's, winning 24 games of the 30 rounds immediately after taking the reigns from Englishman Harry Game, who had dragged Panathinaikos out of Olympiakos's shadow. Bobek explained: "Before my journey to Greece I trained the Warsaw Legion, leaving after the first season because I couldn't stand the climate. That was why I accepted the Panathinaikos invitation. They accepted me in Athens in a great manner, even the fans of Olympiakos - although it is not customary because of the rivalry between those two clubs. I had a fairy-tale like life. One fan even opened a bar named after me. I was flattered, though he didn't ask if he could use my name. My popularity was such that I even bothered the military junta who was ruling at that time, which I came to know from the Club General Secretary." Bobek didn't go to the Olympic Games in Athens due to health problems. Despite enduring some ten heart bypasses, he still refuses to give up his intention to see Athens and watch his Panathinaikos, possibly playing against the Olympiakos he also

CorD special - Greece

trained. Like Grozdanovic and Bobek, Dusan Osmanagic, one of the most successful table-tennis players ever, also wrote an important chapter in the history of Greek sport. The Greek table-tennis team flourished under Osmanagic and during his time in Athens, from 1993 to '96, the team won four gold medals. "I don't have any negative impressions from Greece," said Osmanagic. "My family and I have never had a better time than in Athens. Greeks are totally devoted to Serbs. I sometimes felt unconfortable because they tried so much to please me. They took care of me like the pupil of one's eye. I was in Athens during the sanctions against Serbia and, therefore, each and every day various kinds of help were offered to me. Because I'm no longer in Greece it doesn't change my relations with my friends from that country. Our friendship remains on the highest level." Osmanagic is certain what it means to be a successful trainer in Greece, primarily drawing on the example of football expert Dusan Bajevic: "Greeks have great respect for our sport and our sportsmen. Ivkovic, Obradovic, Djurovic, Bajevic, Maljkovic and others have left a deep mark on Greek sport. But Dusan Bajevic is literally a God in Greece. I will always remember what kind of impression his visit left on my neighbourhood for my 60th birthday. Because nothing can remain unnoticed by the Greek neighbours, the next day my wife was given the best meat in the shop..." For Osmanagic it was a common impression that he had a rare gift to "turn" good teams and players into top ones. That was why he was brought to Athens: "I came on the recommendation of Emmanuel Kolibadis, who is even today Secretary-General of the Greek Table-Tennis Association. He called me primarily because I was famous for converting high-class players into top-class players. I had to do the same with Kreanga and Coka and we really succeeded, as testified by four medals from that time. There could have been a fifth if Coka hadn't gambled away his lead of 20:15 in one quarter-final against Primorac." His Greek friends have not forgotten him even in the hardest moments, while the same cannot be said for some Serbs… "I am satisfied with life and with sports results in Greece, and I was also paid excellently. I went for a year and stayed for three years. My ties with Greece are extraordinary even today. I will never forget the attention of many people from Athens who called me twothree times a day during the bombing. They offered to help me and enquired about the health of my family. Meanwhile, some of my countrymen for whom I have done some services didn't even remember to call, not even once." Whenever he goes to Athens, Osmanagic is awaited with a "schedule" of meetings with friends acquired through work. There are several permanent friendships. Of one of them he said: "Long-term Deputy President of the Olympic Committee in Greece, Hristos Hristodulatos, is a renowned Greek lawyer and my great friend. Whenever I'm in Athens I'm always his guest, and once he left me his house for a week, while he was in Spain. His attention towards me is limitless."•

Great hopes for Greece Many basketball fans in Greece grieve because Predrag Stojakovic is not playing for their representative team because the possibility was open while he was playing in PAOK. However, two extraordinary upcoming Greek talents are "imported" from Serbia. Eighteen-year-olds Dusan Sakota and Igor Milosevic are key junior Greek representative players. Experts are even forecasting an NBA carrier for Dusan, who plays at Panathinaikos and is son of trainer Dragan Sakota.

March 2005

T ourism

Greece's New Era By CorD

In August and September 2004 Greece played host to the world's biggest sporting and entertainment spectaculars: The Olympic Games and Paralympics. Both events were resounding successes, and the flawless and glittering 2004 Olympics were declared as "Dream Games" by International Olympic Committee president Jacques Rogge.

odern Greece has significantly improved its infrastructure since being selected to host the 2004 Games, which attracted some 14 million tourists to the EU state. And the 2004 Olympic Games proved a catalyst for the development of a new era of tourism in Greece. Boasting great projects, such as the Elephterios Venizelos airport - one of the largest and most technologically advanced worldwide - the dramatic Rion-Antirion bridge (linking the western Greek mainland to the Peloponnese the longest cable suspension bridge in the world), plus many other modern road infrastructure, new athletic centres and stadiums; the continuous construction of large congress and exhibition centres and a plethora of luxury hotels with congress facilities, among other developments. All this has indicated that Greece is aiming very high. An excess of $910 million was spent on sport and transportation infrastructure and development projects in the

March 2005

Olympic cities of Thessalonica - northern Greece, Patrs- in Peloponnese, Heraklion - on the island of Crete, and Volos in central Greece, including projects at 123 cargo and passenger Greek ports with great emphasis on the ports of the five Olympic cities and Piraeus. As the Greek capital, Athens is enjoying a well deserved wave of global recognition and revelling in its post-Olympic confidence. Heritage from the Games include vital new roads, an air-port city centre train link and a tram system. Despite all that, Athens is still a city that hardly ever gets any sleep. The top priority for further development of tourism in Greece, according to the Ministry of Tourism, Ministry of Development and the Greek National Tourism Organisation (GNTO), is the promotion of the country's competitiveness and the qualitative improvement of servicesâ&#x20AC;Ś On the other hand, Greek tourism cannot be viewed purely from an accountancy perspective: despite the fact that Athens had fewer tourists during the Olympic year, Greece's tourism sector increased a turnover upsurge. The Olympic Games and Paralympics were built on the actualisation of development, progress and the promotion of Greece. The image of Greece is especially positive: an image surrounded by prestige and recognition. Great responsibility falls to all relevant authorities and involved parties within Greece to keep the momentum of that important success alive. The plan for development of Greek tourism until 2010 is based on three parameters that authorities insist will coexist in harmony and will run throughout the new concept, which comes at the time of Greek tourism's lost lustre. The "three magic words" are: Culture, Environment and

CorD special - Greece

Development. This strategy is focused on the complete exploitation of the post-Olympic environment and the support of quality improvement of the tourism infrastructure and the modernisation of tourism services. Restructuring to twelve-month tourism, dynamic entrance into the emerging markets of the planet, making bilateral agreements concerning tourism co-operation…are just some of the new leads for the expansion of Greek tourism in the future. Gone are the days of lost opportunities and silent, passive observation of circumstances… An amount to the tune of €31million was allocated for the advertising promotion of Greece last autumn, just after the Olympic Games in Athens. A new era for Greek tourism in the domain of legislation is represented by a set of completely new circumstances in the industry. New Ministry of Tourism Development assumes executive and particular strategic responsibilities. A united tourism policy, as well as a uniform tourism product and the great demands of the new tourism law, are also some of the basic points of the new legal framework for tourism, which introduces, in some aspects root changes to the Greek tourism industry. E.O.T. (Greek Tourism Organisation) is appointed as the promotional and implementation sector of tourism policies (Regional Tourism Services under EOT are formed in every region). The tourism policy of the country from now on aims at general tourism development without discrimination. Assets of Greek tourism are ancient, old, new and multiplying… With a history stretching back almost 4,000 years, Greece is the Land of History and the cradle of European civilisation. It has produced giants in philosophy, such as Socrates and Plato, leaders such as Pericles, Aristides and

smooth and vertical grey rock pinnacles. Built on the easternmost finger of the Halkidiki peninsula of northern Greece, the over 1000-year old monastic community of Mt. Athos includes twenty monasteries containing some of the finest examples of Byzantine treasures and a plethora of classical and medieval manuscripts. On the island of Patmos, the monastery of St. John the Theologian and the Cave of Apocalypse, where St. John is believed to have written the Book of Revelation in the latter part of the 1st century AD, count among the world's most wondrous monuments. Travellers following the steps of St. Paul through the biblical sites of Corinth, Lechainon, Cenchrea, Athens, Thessalonica, Philipp, Christoupolis (today's Kavalla)- the first European city to convert to Christianity, and the island of Rhodes, are on a journey to an unforgettable religious experience.

Most visitors associate Greece with antiquities, the sun and the sea. Still, there is a magic of the "other" Greece; the Greece of national parks, agro tourism, wine roads, golfing, yachting, amusement parks, trekking and river kayaking, rafting, climbing, jeep-safari, diving, skiing… Themistocles, victorious army commanders, such as King Philip of Macedonia and his son Alexander the Great. It is the land where the Cycladic, the Mycenaean, the Minoan, the Spartan, the Macedonian, the Athenian and Corinthian civilizations thrived. This is the homeland of the legendary gods and goddesses, the prestigious Parthenon in Athens, the oracle of Delphi, where kings and notables from all over the ancient world came to consult Pythia's oracles and the Ancient Olympia, where the first Olympic Games were held. With the complete predominance of Christianity, the Greeks became conscious of their national identity and laid foundations of the later powerful Byzantine Empire, often considered to be a continuation of ancient Greek civilisation with many Roman and Eastern influences. Byzantine and post-Byzantine churches in cities or in small villages, cathedrals, small churches in the countryside, monasteries and cells decorated with excellent mosaics, paintings and icons, testify the persistence of faith and tradition. In western Thessaly, Meteora, the 14th century Byzantine monasteries are sinuously perched on the summits of

CorD special - Greece

March 2005

T ourism Still, the history of this land at the southernmost tip of the continent is even more multifaceted - intriguing it is even to those modern glob-trotters seeking "health suites", "the personal hotel" or "happy staff". Castles of Greece attract attention also of that other kind of contemporary traveller who follows another "new century" trend of travel: where tourism more and more inclines to "spiritual experiences". Leading a tour of Japanese visitors through Thessalonica during last summer's Olympic Games, one tour guide said: "Following the Roman occupation of Greece, the Pax Romana enforced throughout the Roman Empire eliminated the need for individual fortifications until the 3rd century AD, when the barbarian invasions and later the great wars involving the Byzantine Empire necessitated the construction of

imposing buildings, protected behind a walled castle, an excellent sample of Gothic and Renaissance architecture next to which today stands some of the most luxurious hotels in this corner of the Mediterranean Sea. Ottoman invasions, long centuries under Turkish rule, the Independence War of 1821 and metamorphosis of 20th century Greece, are also elements that attract thousands of tourists every year from every corner of the Earth. There are more then 800 national and private museums scattered throughout Greece: from the Archaeological Museums in Athens, Olympia, Delphi, the islands of Delos, Santorini, Heraklion or Thessalonica, to small collections of idols in the museum of Nafplion and the golden funeral boxes with the gold-leaf crowns of King Phillip of Macedonia in Vergina…those prestigious institutions roll in front of the

Chtistian churches & temples are scattered across Greece new fortifications. The Byzantine walls of Thessalonica were almost impregnable and for 1,000 turbulent years the city was only assaulted on three occasions…" Historic sites revealing the arrival of Franks and Venetian conquerors to Greece in the 13th century: the famous Fortresses in Corfu town, the Castle of the Angels high above Paleokastritsa, the Knight's Castle in Rhodes… tell the unique history of the turbulent Eastern Mediterranean of those times. In 1309 AD the knights of St. John settled in Rhodes, and their stay endowed the island with a series of

March 2005

eyes of fascinated visitors, telling tales of life from Neolithic settlements to modern days. An admirer of Greece could venture even deeper into the history and life-style of Greeks: their long affair with the sea, devotion to artworks of jewellery, famous across the entire Mediterranean region… Of particular interest to this compendium of Greek beauties for the beginners and well travelled connoisseurs, are also the Open-Air Water Museum in Edessa, the Open-air Hydropower Museum in Dimitsana, Peloponnese, the Olive

CorD special - Greece

oil Museum in Sparta, the Raw Silk Museum in Evros, northern Greece, the new museum "Paleopolis", located in the Mon Repos estate (former summer residence of the Kings of Greece)… The magic of Greece to all those who come from the neighbourhood or further a field is still far more complex than the exhausting inventory of its legendary history and civilisations. Greece offers much more.

With a history stretching back almost 4,000 years, Greece is the Land of History and the cradle of European civilisation…This is the homeland of the legendary gods and goddesses, the prestigious Parthenon in Athens, the oracle of Delphi, where kings and notables from all over the ancient world came to consult Pythia's oracles and the Ancient Olympia, where the first Olympic Games were held. From the untamed mountains of Epiros and picturesque Macedonia, to the dramatic gorges of Crete, Greece presents a wide spectrum of natural beauty and unusual animal life to nature-seeking tourists. With its landscape on the mainland: high mountains covered in winter snow, to fertile valleys, crystal clear lakes, broad deltas and coastal lagoons, its diversity in fauna and flora, and with its more than 2,000 islands, Greece is a unique destination on the Earth. Most visitors associate Greece with antiquities, the sun and the sea. Still, there is a magic of the "other" Greece; the Greece of national parks, agro tourism, wine roads, golfing, yachting, amusement parks, trekking and river kayaking, rafting, climbing, jeep-safari, diving, skiing… It is not commonly known that the Bay of Laganas on the island of Zakynthos becomes a huge nursery each year when the Caretta sea-turtle lay their eggs there. That Attica is famous for its production of wheat, olive oil and wine in abundance; and Megara, Sparta, Paiania and Coropi remain the most representative wine-producing sites. Moreover, the largest and most modern golf course in Greece is the Crete Golf Club in the village of Limin Hersonissos, just 20 kilometres east of the "Nikos Kazantzakis" International Airport of Heraklion. Many would-be-sailors, on the other hand, are not aware that Greece boasts 2,000 islands to explore, and a unique chance to visit deserted beaches in this part of the world, plus more that 20,000 kilometres of beguiling coastline to see. Amusement parks add to family holiday excitement and Greece has a number of them: the Allou Fun Park in Athens, Magic Park in Thessalonica, water parks like Aqualand and Hydropolis in Corfu, Waterland in Thessalonica and Water Park in Rhodes. There are several large scale theme-park projects under consideration at this time. Holidaying on a pristine beach or sophisticated archaeological site can easily be turned into a trekking adventure near Kastoria, Korissiona Lake on Corfu or Mountainous Pella. Rafting is on offer on Asprpotamos (grade III) near Meteora, Nafakta (grade II), and in various other places in Greece. As for climbing, Mt. Olympus, Varipombi on Attica and

CorD special - Greece

Stena Nastou on Xanthi offer some spectacular views. Jeep safari is available at Mount Pantokrator range on Corfu. Sailing and wind-surfing the best at Sporades, Ionian Islands, Cyclades, Dodekanese… while, for skiing, the Parnassos Ski Centre is the largest fully equipped ski centre in Greece, operating from December through May at an altitude of 1,600-2,300 metres. For true nature lovers, Greece boasts wetlands, dry meadows and miles of undisturbed hedgerows, while her rural landscape is a bird-watcher's paradise featuring 410 species of the 433 birds found throughout Europe. There are 800 species of indigenous flora species in Greece, not to be found anywhere else in the world! In modernising its tourism concept, Greece recently offers adventure geo tourism, a form of cultural - environmental tourism that can only develop in areas with important geological monuments. The Petrified Forest on the island of Lesvos, the gorges of Vikos and Aoos in Epirus, the waterfalls in Edessa, the rock formations of Meteora, the volcanoes of Santorini…the Greek region constitutes one of the most significant environmental and cultural reserves on Earth, strewn with unique and significant natural geological monuments that are called 'Geotopes'. The Atlas of the geological Monuments of the Aegean, issued by the Aegean Ministry, include 400 geological monument sites throughout all the islands and the coastline on the Aegean Sea. Undoubtedly, Greece is a beautiful country.•

March 2005

A-Z A & P doo - Pepsi Bottling Group Mr. Alkis Chrysostomou Marsala Tita 204, 11000 Beograd 011 84 69 100, 84 65 440 A.S.C HEMIK D.O.O. Mr. Polymeros Margelos Tadeuša Košcuška 86, Beograd 022 333 873 ALUMIL -YU D.O.O. Mrs. Rita Luzenski Mekenzijeva 57, 11000 Beograd 011 2459 073, 011 454 179 industry@alumil.co.yu ALEXOPOULOS - SHALDOUPIS Mr.Charis Chaldoupis Hilandarska 23/6,2nd floor, 11000 Beograd 011 303 3649, 011 303 3659 belgrade@ac_lex.com ARGONAVTIS D.O.O. Mr.Lazaros Michailidis Nova Skojevska 51, 11000 Beograd 011 653 235 ALPHA - BANK Mr. Kostas Papachristoforou Knez Mihailova 22, 11000 Beograd 011 328 1328, 011 328 1329 alphabank@email.co.yu ARIOFIL D.O.O. Mr..Kaletzis Babis Salvadora Aljendea 17b, 11000 Beograd

011 297 0010, 011 275 6257 ariofil_@hotmail.com ALPHA COPY S.A. Mr. Roulis Alkydiadis Rajiceva 18, 11000 Beograd 011 303 5777, 011 303 6050 AXXON TRADING (GERMANOS AE ) HOTEL SRBIJA Mr. Vlatko Jokic Ustanicka 127c, 11000 Beograd 011 2895 326, 011 2892 846 AXON Mr. Markou Christoforos Blagoja Rankovica 20, 11260 Umka, Beograd 011 802 6546, 011 802 6547 axon@markou.com.gr ALPHA GROUP Mr. Miroslav Stanojlovic Bul. Nuikole Tesle 30a, 11080 Beograd 011 267 3994 alphagroup@yubc.net BALKANIA IMP - EXP YUG D.O.O. Mr..Konstantinos Pantazis Bulevar JNA 180, 11000 Beograd 011 2650 976, 011 2647 858 CYCLAMIN D. O.O. Mr. Spyridon Gkinis Mihajla Bogicevica 3, 11000 Beograd 011 2755 056, 011 2758 590

cyclamin@bitsyu.net CHIPITA YUGOSLAVIA S.A. Mr. Stylianos Zakof Omladinskih brigade 86, 11070 Beograd 011 318 5849, 011 318 5959 chipita@sezampro.yu CRVENKA (EBZ) Mr.Ilias Vafidis Masarikova 7, 25220 Crvenka 025 731 122, 025 731 688 secerana@eunet.yu DELYUG (DELTA) Mr. Pyrgidis Spyros Omladinskih brigade 86, 11070 Beograd 011 301 0410, 011 318 0442 DIASTASI CONSTRUCTION D.O.O. Mr. Sterion Achilefis Knezy Miloša 95/8, 1000 Beograd 011 361 4887, 011 361 2426 info@diastasicon.co.yu DIPO D.O.O. Mr Achilleas Drachas Dr. Agostina Neta bb, 11070 Novi Beograd 011 301 6554 ERS A. D. Mr. Dimitoros Tovil Vasina 2-4, 11000 Beograd 011 202 4304, 011 202 4303 EURO BALKAN (INVEST GROUP) D.O.O. Mr. Dimitrios Metaxas M.Popovica 32a, 11070 Beograd 011 311 9513 eurobalkan@eunet.yu EFG EUROBANK A.D. Mr. George E. Lychnos 27.marta 71a, 11000 Beograd 011 337 6705, 011 337 6964

March 2005

CorD special - Greece

ELVIAL WEST BALKANS D.O.O. - YUGOSLAVIA Mr. Vladimir Necic Gavrila Principa 20, 11000 Beograd 011 626 210 FABRIKA CEMENTA KOSJERIC Mr. Ilias Moustakaras Živojina Mišica bb, 31260 Kosjeric 031 883 049, 031 883576 FIBRAN D.O.O Mrs. Vesna Dracic Bulevar Avnoja 99/5, 11070 Beograd 011 313 0366, 011 313 30585 FIRST GLOBAL BROKERS A.D. Mr. Ioannis Cholevas Vladimira Popovica 6, 11070 Beograd 011 311 3047, 011 311 1172 info@fgb.co.yu GLOBAL - GALAX D.O.O. Mr. Stellios Kybaridis Takovska 45, 11000 Beograd 011 280 4942, 011 275 1950 GORDI COMPANY D.O.O. Mr.Konstantinos Kragianidis Timocka 14, 11000 Beograd 011 244 1784 HELLENIC PETROLEUM S.A. - EKO YU A.D. Mr. Georgios Apostopoulos Teodora Drajzera 17b, 11000 Beograd 011 2061 500, 206 1555

Palmoticeva I/IV, 11000 Voždovac-Beograd 011 322 7595, 011 322 5721 INTRALOT Mr.Dimos Antonios III Bulevar 23, 11070 Beograd 011 204 0500 IBP BEOGRAD DD (3e) Mr. Stefanos Vafidis Batajnicki drum 14-16, 11000 Beograd 011 3073 111, 011 316 3568 ICOFIN Mr. Emmanuel Pattakos Prizrenska 1, 11000 Beograd 011 361 0100 office@icofin.co.yu IKRP ROKAS & PARTNERS Mr. Emmanoul Ktistakis Tadeuša Košcuškog 30 (3 floor), 11000 Beograd 011 635 184 serbia@rokas.com INTRACOM SA Mr. Bajevic Tomislav Treci Bulevar 23/II, 11070 Beograd 011 204 0500 KALODOUKAS HOLIDAYS Mr. Zlatko Jankovic Bul. Mihaila Pupina 32a, 11070 Novi Beograd

011 311 8241, 011 141414 info@kalodoukas.co.yu LAMDA CHEMICS Mr. Vassilis Leboukas Ružina 14b, 11130 Beograd 011 341 4803, 011 341 1640 LENSIM - NEOTIN D.O.O. Mr. Ioannis Karakassis Goce Delceva 42, 11070 Novi Beograd 011 691696, 011 693 811 lensim@eunet.yu MINOAN DOO Mr.Georios Kalaitzakis 27 MARTA 123/II, 1 1000 Beograd 011 429 730, 011 426 502 MAVROFRYS Mr. Mirko Roganovic Ugrinovacka 195, 11080 Zemun 011 316 1225, 011 190 312 mavrobg@verat.net MELLON TRANSACTION SOLUTIONS D.O.O. Mr. Dimitrios Ventouras Sava Centar - M. Popovica 9, 11070 Novi Beograd 011 311 2575 mellon@eunet.yu

HELEXPO Mrs. Aristotelis Thomopoulos 154 Egnatia str, 54636 Thesaloniki +302 310 /29111 +302 310 /256827 exhibitions@helexpo.gr HALCOR S.A. Mr. Vladimir Babsek Oreskovic

CorD special - Greece

March 2005

A-Z MELLON TRANSACTION TEHNOLOGIES Mr. Nikos Petrakopoulos Sava Centar - M.Popovica 9, 11070 Novi Beograd 011 311 4965, 011 311 4970 office@mellon.co.yu MERIDIJAN INŽENJERING D.O.O. Mr.Kraragiozidis Babis Korcaginovo naselje bb, 32300 Gornji Milanovac 032 725 200, 032 725 199 meridijan@alfagm.net METAL GLOBE D.O.O. Mr.Vasssilis Dertilis Bulevar Mihaila Pupina 10a 11070 Beograd 011 301 5876, 011 301 5877 MIDIO BEOGRAD D.O.O. Mr. Athanasios Stalios Makenzijeva 57, 11000 Beograd 011 340 4029, 011 340 4064 midio@beotel.yu NATIONAL BANK OF GREECE Mr. Atanassios Panagopoulos Bulevar Mihaila Pupiana 113, 11070 Novi Beograd 011 3019 917, 011 3019 936 office@nbgbanka.co.yu NEOCHIMIKI A.D. Mr. Stellios Kybaridis Takovska 45a, 11000 Beograd 011 280 4942, 011 275 1950 neochimiki@neochimiki-beograd.gr NEOFARMIS D.O.O. Mr. Nikolaos Bunitsis 29 novembra 68a, 11000 Beograd 011 265 2565, 011 261 7622 lok.445 NET WEST JUGOSLAVIA Mr. Omilos Sarantis 50

March 2004

SUPER VERO - VEROPOULOS D.O.O. Mr. Vassilios Kakagiotis Treci Bulevar 86a, 11070 Beograd 011 311 9111, 011 311 6122 vero@eunet.yu

Bulevar Vojvode Mišica 10, 11000 Beograd 011 369 0089, 011 369 0198 office@netwest.co.yu OLIMPYC AIRWAYS Mr. Ioannis Giannakis Vase Carapica 14/I, 11000 Beograd 011 303 6750, 011 303 6850 olybeg@eunet.yu OMNI KUMAKIS D.O.O. Mrs. Snezana Basic Bul. Mihaila Pupina 10z/IV, LOK. 95 11070 Novi Beograd 011 311 6022 OTE International Mrs. Ranija Alafoyianni 99 Kifissias av, GR-151 24 Maroussi Athens, Greece +302 10 611 7888 +302 10 611 1506 alafoyiannir@oteintl.gr P.V.F. TRADERS D.O.O. Mr. Theodoros Gounaropoulos Vojvodanska 158, 11000 Beograd 011 2512 999, 011 2509 177

SABO S.A. Mr. Panagiotis Sarigelos Dr. Milutina Ivkovica 2a 11000 Beograd 011 369 1053 sabosa@eunet.yu SAPIENT MERKATOR A.D. Mr. Fotis AKanellopoulos Zagrebacka 7 11000 Beograd 011 303 4156 sapientm@ptt.yu TEXNI D.O.O. Mr. Nenad Radovic Novosadski put bb, 11080 Zemun 011 8488 224 texni@yubc.net TGI HELLAS S. A. Mrs. Nada Filipovic Riga od fere 8, 11000 Beograd 011 303 2235, 011 328 3540

PLEXIGLASPROMET D.O.O. Mr. Stefanos Thomakos Auto Put Novi Sad 150 b, 11080 Beograd 011 375 7681, 011 375 7682 plexiglas@technicom.net

UNISOFT WARE D.O.O. Mr. Apostolos Tritas Karadordeva 7/II, 11080 Zemun 011 301 5675 unisoft@sezampro.yu

PROFILCO YU D.O.O. Mr. Antonios Athanasopoulos Novi Novosadski put bb, 11080 Zemun 011 848 0546, 011 848 0582 profilco@infosky.net

UNIKONTI STEEL D.O.O. Mr. Jorgos Stratigos Kralja Aleksandra 298, 11000 Beograd 011 3820 305, 011 3806 250 unikonti@eunet.yu

REGIONAL LINKS S.A. Mrs. Marijana Kekic Balkanska 29, 11000 Beograd 011 311 2656, 011311 1172

VITEX- HERMAS D.O.O. Mr. Prodromos Eftychidis Bulevar Vojvode Mišica 41, 11000 Beograd 022 333 133 vitex-hermes@yubc.net

CorD special - Greece