CorD Magazine No.6

interviews | opinions | news | comments | events June 2004

Editor in Chief: Biljana Stepanovic editorial@cma.co.yu Assistant Editor: Rob Dugdale r.dugdale@cma.co.yu Editorial: Milan Culibrk, Dragan Bisenic, Nina Nicovic, Nebojsa Kotlajic, Jelena Grujic, Maja Vukadinovic,Vesna Musulin, Zoran Milosavljevic, Slobodan Kostic, Dragan Novakovic, Ron Davies, Nebojsa Grabez, Jelica Putnikovic, Lela Sakovic Editorial Assistance: Mary Gibson, Mark Pullen and Clare Zubac Translators: Milos Milosavljevic, Igor Adzic, Zoran Milosavljevic, Dejan Zubac Photo: Danka Ninkovic, Dragan Milosevic, Djordje Popovic, Zoran Sinko Photo Agencies: FoNet, Tanjug and Beta Special Thanks to: Slobodan Arezina, Stoyan Stankulov, National Theatre, Nikola Nikolic Art & PrePRESS Director: Branislav Ninkovic b.ninkovic@cma.co.yu Marketing Director: Jasmina Kamidzorac j.kamidzorac@cma.co.yu Advertising: Milos Krstic m.krstic@cma.co.yu Aleksandra Djokic a.djokic@cma.co.yu Office Manager: Sonja Rados sonja.rados@cma.co.yu Publisher: Zoran Cadez z.cadez@cma.co.yu General Manager: Ivan Novcic i.novcic@cma.co.yu Director: Ana Novcic ana.novcic@cma.co.yu Printing: Politika AD CorD is published by CMA (Consulting & Marketing Agency), Krunska 24a, 11000 Belgrade, Serbia & Montenegro.

Phone: +(381 11) 30 33 020 Facsimile: +(381 11) 30 33 535 E-mail: office@cma.co.yu ISSN no.: 1451-7833 All rights reserved Š CMA 2003/2004

08 ROAD TO EUROPE Jeffrey Barrett Head of the European Commission's delegation to Serbia & Montenegro

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NO CHANGE OF BORDERS Vuk Draskovic Foreign Minister of Serbia and Montenegro

20 SPOTLIGHT ON MONTENEGRO Filip Vujanovic President of Montenegro

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contents

24 SERBIA IS RECOVERING Mladjan Dinkic Serbian Minister of Finance

38 A UNIQUE SITUATION

44

H.E. Mrs. Judita Stoucarova Czech Ambassador to SCG

BALKAN BORDERS WILL NOT CHANGE Leaders meet in Sarajevo summit

64 UNITY SAVES CUBA H.E. Dr. Juan Sanchez Monroe Cuban Ambassador to SCG

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SKILLS OF SPORTING DIPLOMACY

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Borislav Stankovic IOC member

THE FUTURE OF KOSOVO WILL NOT BE LIKE ITS PAST Peter Schieder President of the Parliamentary Assembly of the Council of Europe

52 ALWAYS AIMING FOR GREATER HEIGHTS Miograd Babic

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General Director Hemofarm Corporation

WELCOME TO THE IBIZA OF THE BALKANS EXIT O4

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Column Serbia has always had a leader and their names have marked parts of its history. This is one of the rare periods in Serbian history without a revered leader and anyone who knows anything about the Serbian mentality knows that, regardless of how disastrous it may sound, institutions can offer no substitute for a leader in the here and now.

I

f we immediately reject the claim that Serbia is merely accelerating through the process of European integration as the result of excessive optimism or a simple lack of common sense (in the best case, as party propaganda not believed even by those spreading it) two possible conclusions can be drawn: the first, Serbia has become bogged down on her road to Europe; the second, Serbian wheels have started to rotate counter-clockwise in the complicated and precise mechanism of European integration.

Making a choice between these two options is completely superfluous as both are equally negative.

Problems arising from Belgrade's cooperation with the Hague Tribunal, which the European Union and USA insist with unrelent-

Serbia awaits a

leader

ing determination are growing. Even after many years of endless discussion, the agreement with Montenegro on joint custom rates is nowhere in sight and it is almost certain that the imminent negotiations on the status of Kosovo will do nothing to improve relations between the Government in Belgrade and the West. Local politicians, obsessed with mutual conflicts, do not seem at all concerned. The fact that the key to the immediate political future of Serbia lies in the hands of an ex legionnaire, member of paramilitary units, suspect in numerous liquidations and head of the strongest criminal clan in South-east Europe, speaks volumes about the irresponsibility of the elite gathered around the current and previous governments. With his statement and personal selection of evidence, the man accused of the murder of premier Zoran Djindjic in his testimony scheduled, by chance, for just three days before the June presidential elections is set to exert considerable influence on the outcome of the political conflicts marking postMilosevic Serbia.

Well, where is the European perspective of Serbia in such circumstances? In short: in Serbia. It may sound naive, but it is a

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confirmed truth. All relevant public opinion polls have confirmed that most of the inhabitants of Serbia are in favour of a more rapid connection with Europe, the main reason being their exposure to the misfortunes of living with miserable salaries for over a decade and a half.

Why then aren't any of the current political options able to articulate this majority frame of mind? Because all parties with a programme and membership potential for this remain uncertain as to whether this strategy would gain them short term success. Unprepared for risk and a long-term political battle, they are in constant fear that an unconditional insistence on the European path will enable their political opponents to accuse them of being ‘traitors of national interest’. This is why they do not have the courage to dedicate their political activities to the following goal: proving that the

The opportunity to go into history by heading the movement that will build a European Serbia will not remain open for long and will not come again soon. claims about how "the europization of Serbia" will mean giving up tradition, faith and national identity, are lies spread by those whose main purpose in stirring up these fears is purely the desire to hang on to their current, or reclaim their old, social influence and economic power.

One does not get to Europe, it should be built here first. The proclaimed goals of all parties fighting for power in Serbia are a democratically organised, economically strong state with wealthy citizens, but nobody has, as yet, offered any sound evidence that this will be achieved. Thus, there is a danger of filling the vacuum made by another obvious failure to come closer to Europe and the repeated betrayal of the hope of a better life with social demagogy and rekindled nationalism, which is growing stronger by the day.

The future of Serbia does not depend on those who oppose European integration, but on the courage and skills of those who honestly want to see its integration into the EU. Serbia has always had a leader and their names have marked parts of its history. This is one of the rare periods in Serbian history without a revered leader and anyone who knows anything about the Serbian mentality knows that, regardless of how disastrous it may sound, institutions can offer no substitute for a leader in the here and now.

The greatest skill of any politician is in recognizing the right moment for action, and the bravest among them are those who genuinely believe in the ideas they fight for. The opportunity to go into history by heading the movement that will build a European Serbia will not remain open for long, and will not come again soon.• Slobodan Arezina Head of the Serbian service of Radio Free Europe

Interview

Jeffrey Barrett,

Head of the European Commission's delegation to Serbia & Montenegro

Road to Europe

Following the EU accession of former Eastern Bloc countries on 1st May this year, and with a new Serbian government in place and Serbian presidential elections on the horizon, CorD spoke exclusively to Jeffrey Barrett, head of the European Commission's delegation to SCG

"SCG is the biggest, most important and most strategic country in this region"

F

ollowing the formation of the new government, and in light of the need to bridge the gap between the state union and the EU, how would you assess the current political situation in Serbia?

Serbia now has a government that is fully committed to European integration. We were encouraged initially by the statement made by the incoming prime minister when he took the job: the amount of time and space he dedicated to European integration was well noted.

We were further encouraged when we presented our Stabilisation and Association progress report some weeks ago. At that time, I met all key players here to present the report and we also had a very positive meeting with Serbia's European Integration Council. I came away with a very strong feeling that there was a new desire to resolve the out-

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standing issues, which essentially fall into two categories: First, a requirement that all countries of the region comply fully with the international community and fulfil their obligations, which, in particular, is a reference to cooperation with The Hague tribunal; The second concerns the: economic harmonisation process between Serbia and Montenegro. There are still a lot of unresolved issues in this process, which requires an extremely high degree of concentration and intense effort in the coming period.

Following our meeting with the European Integration Council, we were assured that respective Serbian and Montenegrin Deputy Prime Ministers - Labus and Ivanisevic - will sit down together and work very intensely in the month of May to try to resolve some of the out-

By Olga Ivanovic, Photo Andy Dall

Sometimes we are shown tables detailing where the different states of the region stand in terms of European integration. What is the current situation?

Well, we can see that Croatia has applied for EU membership and has received a positive positive signal from the European Commission. We would like to stress that this is a fantastic signal to the whole of the region. We need people to understand just how important it is that Croatia has been given this positive signal. In effect, this represents the realisation of the EU's intentions - outlined in Thessalonica last year, that all countries of this region would be welcomed into the European Union in due course.

So, already you can see Croatia moving forward; Macedonia has put forward its application; Bosnia & Herzegovina has already received its Feasibility Report and is working very hard on implementing the requirements we sought; Albania is negotiating while SCG has yet to receive a Feasibility Report.

We all want to be able to move forward. SCG is the biggest, most important and most strategic country in this region. Thus, it is vitally important that we achieve a full understanding of the politi-

Report impossible without harmonisation cal class of this country; of just how much attention needs to be paid to European issues; to the recommendations that we have been making. Not because we are bureaucrats sitting in Brussels, but simply because all the countries of central and eastern Europe that joined the EU on 1st May had to go down that road. It has been difficult. It has taken a long time, but it is the only road.

I simply want to stress that this is very relevant to the political situation. What we need to clearly see is an extremely high level of commitment to travel along that road with us. Not just the easy parts, but

"…all the countries of central and eastern Europe that joined the EU on 1st May had to go down that road. It has been difficult. It has taken a long time, but it is the only road."

Interview

standing issues. Of course, it is impossible for us to complete our work on the Feasibility Report until such time as we are absolutely convinced that everything necessary has been done to remedy the problems of harmonisation of tariffs, levies, etc.

Essentially, what we need to see is the very rapid emergence of a genuine internal market between Serbia and Montenegro, in order for us to be able to negotiate the Stabilisation and Association agreement. This is why we are compiling the Feasibility Report.

We have to see a level playing field. We have to be able to look at the country and see common structures and an ability to negotiate and implement an agreement; a negotiator who would be able to face us and say "I have been authorised by the constituent parts to represent the state union as a whole". Such a negotiator would be in a position to speak in the name of the state union of Serbia & Montenegro, because SCG is the partner with whom we expect to negotiate that agreement. At present we are working with the status quo.

Serbia and Montenegro agreed to adopt an Action Plan. They did that, their parliaments approved it and now we basically want to see the Belgrade Agreement implemented, the Constitutional Charter implemented and the Action Plan fully implemented. When we are in a position to say "okay, this is going forward" then we can move ahead with SCG. These are big issues for us and it is essential that there is an understanding of the outstanding difficulties confronting us.

also the difficult bits. It is not easy to harmonise the economies and it is probably not easy to go all the way in fulfilling obligations to The Hague Tribunal.

We understand that perfectly well. However, these are essential if we are to be able to say that the country measures up to the values of the EU. Another element that I spoke to local authorities about when presenting our progress report is the new regional concept of European partnership. This comprises a whole range of recommendations that we have made and we expect the country, in this case SCG, to respond to, with a new concrete action plan.

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Interview

Avoid the rhetorical approach to integration We expect prospective EU members to have integrated border control systems. In the case of SCG, you must have legislation and border management mechanisms in place that are compatible with each other. This means immigration, customs, tax authorities, animal controls and border patrols that work very closely with one another to manage the borders. This is a big challenge. There are legislative requirements, structural and inter-operability requirements and common management requirements, demanding both a common approach and budgetary accommodation.

At the end of the day, it is important for people to begin to understand how significant the budget of a country is to the whole process of European integration. We expect to see budget allocations being made to meet the requirements we are setting.

We fully acknowledge the responsibilities of the respective

"‌it is the political destination of Europe; the reunification of the continent after the tragedy of the central period of the last century drove the two parts of Europe asunder‌ We are absolutely sure that SCG will become a member of the EU one day." republican authorities, which are laid down by the constitutional charter. However, when all's said and done, we engage the top of the triangle - the state union level - and we expect the state union authorities to coordinate extremely well with the republican level.

Has the EU displayed extreme patience with this country?

This question should probably be put to the politicians with whom we work. Have we been excessively patient? No. I think we've been realistic. We know that these things take time. Yet, what we really need to see here, perhaps more than in some other comparable countries, is a high degree of outspokenness on the part of the government. They need to measure up to European requirements and values, and draw the conclusions that you have to draw, as politicians, from making that commitment.

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The road to European integration is too often approached in a rather rhetorical way, as a mantra. Politicians have to familiarise themselves more with the content of the agenda. They have to be prepared to address the public and say "we have to do some things, because we want to become members of the EU. We have to go down this road. It may be difficult, but we have to find the political courage to do it."

Just remember where Croatia was a short while ago. They had genuine trouble convincing their public that they had to do some things that would be important to the future of their country.

However, Sanader's government was able to take those steps.

Once you can do that you begin to internalise the values of the EU, which you one day hope to espouse. I think that is a problem here: the degree of internalisation of our agenda, which still poses a problem and really has to be accelerated.

As you have noted, Serbia and Montenegro is the largest and most important country in the region and is a natural member of the European family. How do you explain the present reluctance to integrate?

That is a real issue. SCG is more complicated than other countries here: different governments and administrations; a complex history; separate development in terms of legislation ‌ a whole host of issues are making this a really challenging exercise for SCG. However, the EU has been constantly present, working with authorities on the Constitutional Charter, the Action Plan, etc; providing advice in what has been a very difficult situation. Now, there is a real opportunity. Institutions are in place and there is good interaction between different levels of government. Sometimes statements are made for public consumption that we have difficulties with, but the apparatus and the good cooperation is there. Opinion polls show huge support for EU integration and so this country could move forward.

What is your opinion on the structure and programme of the new coalition government in Serbia?

The coalition government exists. I would not like to comment on the gestation of the coalition government, but it exists. Moreover, the parties of the government are all very committed to European integration and, therefore, we want to see this government begin implementing its platform, and carry on with the reforms that have been stalled. In 2003, there was a hiatus in the reforms and we now need to see further reforms implemented as soon as possible.

Interview On a positive note, I have been encouraged by Mr. Labus' statements in particular. He noted that the main legislation, necessary to implement laws essential to the process, would be put in place.

Secondly, maintaining the continuity of the administration responsible for building structures and legislation is vital. We need to see a substantial number of people dedicated to completing the hard task of European integration. This is important as a political signal: the spending of both human and financial resources to achieve European integration. I would like to see a body of people with whom we can have a long-term relationship.

What is the future of the Feasibility Study?

The Feasibility Report was started in autumn of last year and we hope to complete it as soon as the outstanding issues have been properly addressed. I

"The EU enlargement of 1st May sent a signal to all the countries of Europe that the Berlin Wall really did fall in 1989 and that the two parts of Europe are now largely united." hoped to bring the report's completion date forward, but our feeling is that doing so would not have left enough time to ensure a positive result.

Given that there is a new government, we thought they should be given more time.

Europe must be whole again In your opinion, will there be any delay in providing financial assistance to SCG in 2004?

Full co-operation with The Hague Tribunal is absolutely fundamental. That has not yet happened and we, therefore, need to see it happen.

Nevertheless, we will allow the assistance earmarked for 2004 to be forthcoming. The procedure is currently underway in Brussels and a final decision has yet to be made.

It is our opinion that the assistance is there to support the reform process. Although this in no way means that we are relaxing our requirements on the big issues mentioned earlier that are crucial to the Feasibility Report. and the likelihood of the country being able to reach agreement in due course. They are both short and long term fundamental requirements and they will not simply go away.

What is the significance of the upcoming presidential elections in Serbia?

I have been here for the last three and a half years and have seen several presidential elections.

The presidency is the one institution that is still missing here. I think everybody wants to see the institutional fabric of the country completed.

Having said that, a very important choice will have to be made by the electorate on 13th June.

I would expect the electorate to look at the whole process in the context of the country's future progress. By that, I mean, if I was a member of the Serbian public, I would look at the available

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options and make a judgement based on the EU membership merits of the differing platforms. There are some choices that the public will have to make. I expect the candidates to have quite a proactive approach to the public and to explain what values they stand for. This is not a question of trying to influence the public, but rather clarifying their standpoints. When the day comes there will have to be genuine choices between clearly defined options.

What is the significance of the latest EU enlargement to the countries of this region?

The EU enlargement of 1st May sent a signal to all the countries of Europe that the Berlin Wall really did fall in 1989 and that the two parts of Europe are now largely united.

We have kept our promises. We stated that we were prepared to embrace new countries as and when they were ready and able to play a full part in the EU as it is and as it will be, because it is changing very rapidly.

The 1st May enlargement was by no means the end of the story. It was indeed a very big enlargement: we have never done anything like that before and it will be difficult to absorb.

However, we are going to do it because it is the political destiny of Europe; the reunification of the continent after the tragedy of the mid 20th century when the two parts of Europe were driven asunder.

Serbia & Montenegro and other countries of this region also suffered that tragedy and we very much want Europe to be whole again. We are absolutely sure that SCG will become a member of the EU one day, which was part of the 1st May message.•

Interview

Borders Secure Vuk Draskovic,

Foreign Minister of Serbia and Montenegro

By Milos Teodorovic, Photo Danka Ninkovic

V

Interview

uk Draskovic, Foreign Minister of Serbia and Montenegro is, judging by the criticism directed against him, one of the most contentious politicians in the country. Some accuse him of supporting the Serb paramilitaries that fought in

I said straight off that we do not want to participate in conflicts between the two democratic candidates - Dragan Marsicanin and Boris Tadic, since they would benefit a third candidate, whose victory would mean the fatal return of Serbia to the Milosevic era.

Croatia in the early nineties, while others criticise him for stating that Serbia carried out ethnic cleansing against the Albanians in Kosovo five years ago. At the same time, the political leader that survived two assassination attempts during Milosevic's rule (the suspects are on trial in Belgrade) has become one of the most ardent advocates of co-operation with The Hague Tribunal.

Draskovic says that his biggest problems are currently linked to misunderstandings between the three political groups that make up the Serbian Government (the Democratic Party of Serbia - DSS, G-17 Plus and the coalition between the Serbian Renewal Movement - SPO and New Serbia - NS). Our conversa-

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tion began with Draskovic's explanation of why his party, SPO, has distanced itself from a statement by the electoral HQ of the government's presidential candidate Dragan Marsicanin, calling upon officials from the former government to reveal all the information they have about the assassins of Serbian Prime Minister Zoran Djindjic.

What made your party, along with G-17 Plus, distance itself from the presidential candidate's statement ?

Interview SPO was the first to distance itself from DSS's statement because there is no sense in issuing a press release on behalf of the coalition without consulting us first, or at least informing us of its content. We continue to support Dragan Marsicanin's candidacy, but that doesn't mean that we have to agree on every single issue. There are a number of things that are not harmonised at coalition level. They are a thorn in our side and we have to discuss them before or after the elections.

How do you explain this?

When the budget was drafted, I was not the foreign minister and someone else was seen in this position at the ministry. Even then I protested at a meeting of the ruling coalition, but to no avail. The justification was that Serbia provided 93.7% of the

As a member of his party, he [Mladjan Dinkic] has every right to oppose the state union and advocate independence for Serbia. However, as a state official his activities must not be directed against the state - Serbia, Montenegro or the state union. funds for the diplomatic service and, therefore, would not finance embassies that belonged to Montenegro, which was quite a shock for me.

After this, the Minister of Finance cut the already reduced budget for the ministry by 10% without consulting anyone, and sent an internal note that the Ministry of Finance was trying to force us to lay off more than 50 employees from our work force. I am not firing anyone here, nor is there a need to do so.

On one side we hear that diplomacy has to win important campaigns for the state, but on the other that same diplomacy is flailing. Wages in our diplomatic offices are pitiful and even humiliating for employees working in the ministry at home. Most people don't have enough money to pay for transport. We sent a note asking no more than to receive the kind of wages they have at the Ministry of Finance, to say nothing about the salaries at the National Bank of Serbia and I won't mention here, although I will at the coalition meeting, newspaper adds about tenders to refurbish a number of National Bank offices.

The biggest problems linked to misunderstandings Your conflicts with Mladjan Dinkic raise concerns about the future of the ruling coalition, whose stability is constantly under question.

These and other issues have to be the topic of a serious discussion. We are talking about the state here. Europe insists that SCG harmonise their relations and pursue European integration as one state.

However, in the course of one day here, there are politicians who first pledge to a European future, only to say later that they will not harmonise customs rates with Montenegro, and then take measures to bring them further out of line.

When you say "here", do you mean Serbia or Montenegro?

I was referring precisely to the Serbian Minister of Finance. As a member of his party, he has every right to oppose the state union between Serbia and Montenegro and to advocate independence for Serbia. However, as a state official his activities must not be directed against the state - Serbia, Montenegro or the state union.

Interview

Do you think a meeting to discuss those issues could have a positive effect, bearing in mind that the elections are scheduled for 13th June?

If I did not think the meeting was necessary, I would not insist upon holding one. One of the reasons I want to talk is the attitude towards the Foreign Ministry. Serbian Minister of Finance Mladjan Dinkic has allocated less funding for the Foreign Ministry in this year's budget than last year and, compared to last year, no other ministry of the Serbian government has been allocated less funding from the budget.

Recently, Deputy Prime Minister Miroljub Labus agreed with the EU Commissioner's statement that there was a lack of political will to harmonise customs rates between SCG, although he did not leave the impression that he thought it was Serbia who was obstructing the process.

Unfortunately, there is lack of political will on both sides. My job, however, as a political representative, is to remove obstacles in Serbia.

Following the contested press release by DSS, Mladjan Dinkic said that the conflict between DSS and DS could only help the presidential candidate of the Serbian Radical Party.

Would you agree on this point?

That is only too obvious. I said straight off that we do not want to participate in conflicts between the two democratic canCorD | June 2004

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Interview didates - Dragan Marsicanin and Boris Tadic - since this would benefit the third candidate, whose victory would mean a fatal return of Serbia to the Milosevic era.

What did they say in Washington? What can Serbia expect in the event of Nikolic's victory at the elections?

Washington should be the one to state their attitude, but Serbia should not expect anything good in the event of Nikolic's victory.

If Nikolic wins, what are you going to do? Are you going to remain in post?

I will announce my decision in due time. Actually, I am already doing that. If the Radical candidate wins the elections, I think that the political struggle will move to the streets, as it did in 1999 and 2000.

control of the province. Let us not forget that a similar agreement was made two years ago - the Ohrid Agreement, which provided the Albanians in Macedonia with a high level of local autonomy.

Naturally, if the Serbs are to return to Kosovo and Metohija, the international community should swiftly intervene to repair the demolished homes and start rebuilding the monasteries. Guarantees for this course of action have been provided in Washington and the UN Security Council, as well as the ministerial meeting of the EU Council in Strasbourg.

If the international community expects Pristina to rebuild what was demolished during the March rioting, what is expected of Belgrade?

Belgrade is expected to and is, indeed, prepared to remove all internal barriers towards European integration. To become 'Europe' from within and accordingly position itself in regard to the fact that Kosovo is part of the Serbian state. State borders cannot be changed and we also have to accept that

We know very well who did what in the times of evil after 1990. There is a Croatian song that goes "Where were you when it stormed". We know who was where when 'it stormed' and when the situation was dire, who wanted war and who was against it.

Europe insists that SCG harmonise their relations and pursue European integration as one state How did Washington react to the Serbian parliamentary proposal of a cantonised Kosovo that you presented during your visit to the US capital?

Secretary of State Colin Powell clearly stated that the concept of decentralisation of Kosovo was supported by the US, whose own federal units also have a high level of local self-governance.

He said the model of decentralisation should be forged through a dialogue between Serbs and Albanians in Kosovo, as well as a dialogue between Belgrade and Pristina, with the mediation and good service of the Contact Group, the EU, NATO and the international community.

Is there concern in Washington that cantonisation would abolish the concept of a multiethnic Kosovo?

Local self-governance is the only path towards reaching the objective of a multiethnic and multicultural Kosovo. Why? Simply because the concept of local self-governance creates appropriate conditions for the return of 200,000 Serbs and other nonAlbanians who were driven out - ethically cleansed - from Kosovo after 10th June 1999, when the international community took full

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we are in a new century where borders are not lined with barbed wire. They are the borders of a modern Europe that exist on maps but are invisible on terrain and people don't see them. They are not guarded by soldiers and customs officers. We have to push for regional and Balkan integration, as well as for a modern Balkan, with interdependence between states, nations, cultures and religions. That is what Europe insists on and what we accept. Even if retrograde political forces take power in Serbia, with the prospect of wasting a few months or even a whole year of our time, they can only be a passing spell of bad weather, because there is only one door to our future.

You were actually on a visit to the US when the Radical Party motioned in parliament for your dismissal. To what extent did this bother you in Washington?

I would have been concerned if I got news from Belgrade that the Radicals and Socialists were backing me. Their demands and assaults are the best recognition of my work.

They want your dismissal because you stated Serbia performed ethnic cleansing in Kosovo in 1999. Why are officials in Serbia finding it hard to apply such terminology to what happened to Kosovo Albanians prior to NATO's intervention?

Judging by Milosevic's defence in front of The Hague Tribunal and his supporters at home, one could wonder if there ever was a war. Everyone saw the refugee camps during the NATO bombing campaign. Milosevic's regime performed ethnic cleans-

Interview

Interview

Even if retrograde political forces take power in Serbia, there is only one door to our future. ing on tens of thousands of Albanians during this time. The point is the international community returned the refugees to Kosovo in record time, rebuilt their homes and compensated them for the damages they endured, which should be applauded. Now I have to say, help us in the same way you helped the Albanians. Since the arrival of international forces in Kosovo on 10th June 1999, it is Serbs that have been subjected to a campaign of ethnic cleansing that continues to this day. I have listed facts that no one has contested, namely that more than 40,000 Serbian homes and 150 churches have been destroyed and more than 200,000 Serbs and other non-Albanians have been evicted.

The international community expects Serbia to fully cooperate with The Hague Tribunal. Who is currently heading the council co-operating with the tribunal?

Nobody. The council does not even exist. Most of its members from the former DOS coalition resigned from their posts in opposition to the indictments raised against four generals ahead of the parliamentary elections last year. Goran Svilanovic, who was head of the council as foreign minister, no longer performs this duty.

Were you anxious about the prospect of having to preside over the council, bearing in mind the post is not a popular one, especially if one considers that, according to some polls, up to 70% of the population are against co-operation with the Tribunal?

No, this is not why I declined the post. The council should be lead by someone who controls instruments of coercion. The Foreign Minister is not such a person, nor someone who should issue indictments or make arrests. Finally, no one in the service of the ministry has been indicted for war crimes. My view of the tribunal remains the same. It is not only a matter of co-operation, but of international and national responsibility.

Were you taken by surprise by Stipe Mesic's statement that you were persona non grata in Croatia?

The statement was not given in that form. I am not going to comment on its various interpretations and I will not dwell on it

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either, because I care very much to improve the relations between Serbia and Croatia, as well as with other neighbouring countries. Besides, we know very well who did what in the times of evil after 1990. There is a Croatian song that goes "Where were you when it stormed?". We know who was where when 'it stormed' and when the situation was dire, who wanted war and who was against it.

In Croatia, it is often claimed that you supported the Serbian Volunteer Guard, operating on their territory?

As far as I know, the SVG was under the command of Zeljko “Arkan� Raznjatovic and never had any connections to the Serbian Renewal Movement or me. You are referring to something that was published not only in the Croatian press but here as

If the Radical candidate wins the elections, I think that the political struggle will move to the streets, as it did in 1999 and 2000. well. The fact is that SPO motioned in parliament in 1991 for a Serbian army to stand in the way of the Communist Yugoslav Army and its barbarities. I provided parliament with a list to form a unit that would bear the name Serbian Guard.

You are acquainted, no doubt, with the statement by Nebojsa Pavkovic, the former Yugoslav Army Chief of General Staff who is indicted for war crimes in Kosovo, that you should be in The Hague too, since you supported the paramilitaries?

If I were indicted, there would be no need for such statements. If he is so 'heroic' then he should go to The Hague and present his defence, instead of holding Serbia hostage.•

Interview

Filip Vujanovic,

President of Montenegro

Spotlight on Montenegro Montenegro appears to have been floundering in a volatile cycle of instability of late. Political wrangling, status ambiguities, referendum rumblings and language re-branding have all added to the spectre of uncertainty looming over Serbia's sister republic.

By Ilija Despotovic

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Interview

o find out what's going on coast-side, CorD spoke exclusively to Montenegrin President Filip Vujanovic about relations with Serbia, the Kosovo issue, Montenegro's political climate and much more.

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CorD | June 2004

To what extent is the current political situation influenced by the newly formed coalition government in Serbia?

Montenegro's position is clearly defined by new relations with Serbia in accordance with the Belgrade Agreement and the Constitutional Charter, which are being monitored throughout

I am satisfied with the international communicative activities that I have engaged in, particularly with numerous contacts I have had with presidents and senior officials of other states, and with the fact that the presidents of Croatia, Macedonia and Slovakia have paid official visits to Montenegro within a short period. the three years that the union of our two states is to function. Montenegro is steadfast in its aim of contributing constructively and optimising the opportunities of that relationship. However, it also wants to provide citizens with the opportunity of choosing the status of independent republic by way of a referendum [scheduled for 2006].

Is the Montenegrin Government instigating political tension by altering Serbian language lessons in schools to "mother tongue and literature" subject? You earlier called for the official language to be "Serbian-Montenegrin". Do you maintain that opinion?

I am a great advocate of agreement in general and am equally opposed to any form of bigotry.

Obviously, in Montenegro there are two differing perspectives on the name of the official language and, as such, I think it should be called SerbianMontenegrin, in accordance with the constitution.

I think this would lead to a general parliamentary consensus. Actually, the official name of the language is a constitutional principle and should be treated as such.

Montenegro has been criticised for being "quiet" on Kosovo. Are there grounds for such allegations? By being vocal, would Montenegro really be able to help resolve the Kosovo issue?

Attitudes towards Kosovo are defined by UN Security Council Resolution 1244, which treats Kosovo as an international problem that the international community are obliged to assist in resolving. Of course, a constructive dialogue between

Beyond a shadow of a doubt, Montenegro is interested in seeing a solution to the problem of Kosovo as soon as possible. This applies to the respect of standards and the establishing of security for Serbs and other non-Albanian citizens of Kosovo; as well as creating favourable conditions to allow the return of displaced persons from Kosovo.

Belgrade and Pristina, with the participation of international representatives, would be of particular importance to the solution of the problem.

Montenegro can only assist by re-affirming its traditionally good practises of high quality international and inter-confessional relations; and by setting an example by applying the highest standards in that field. Beyond that, any other expectations from Montenegro are pretentious and unrealistic.

It seems that the Kosovo issue has not, as yet, been used to incite political protest, such as student rallies, in Montenegro. Why do you think that is??

Beyond a shadow of a doubt, Montenegro is interested in seeing a solution to the problem of

International links intenstified

Interview

Of course, it is possible that Serbia and Montenegro will determine the union is unviable and agree on respective independence, which could then be formally verified by way of the referendum.

Thus, in my opinion, there are no grounds to declare instability, because absolute clarity of our relations have already been established.

Kosovo as soon as possible. This applies to the respect of standards and the establishing of security for Serbs and other non-Albanian citizens of Kosovo; as well as creating favourable conditions to allow the return of displaced persons from Kosovo. This should not be misused for political ends and I am convinced that the people of Montenegro have, primarily, the same understanding of this.

How do you think relations between Serbia and Montenegro will evolve; could some elements of Milosevic-style policies towards Montenegro be revived?

There is no possibility of the misuse of state union institutions, as was the case with state bodies of the former federation during Milosevic's reign. This is guaranteed, as I said earlier, by the Belgrade Agreement and the Constitutional Charter.

I am certain that authorities in Serbia will respect the agreement about our new relationship and the will of the citizens of Montenegro.

The issue of an independence referendum has, once again, come to the fore. However, within the Montenegrin leadership there is ambiguity regarding the deadline for the vote. How will this issue be resolved?

It is apparent that, amongst domestic and international political and legal spheres, there are contrasting views of when the three-year countdown to the referendum should begin. Some determine that it began with the ratification of the Belgrade Agreement, whilst others began the countdown once the Constitutional Charter was adopted.

According to the Montenegrin Constitution, the President of the Republic proposes the calling of a referendum. I would like to remind you that I have already stated that it would be irresponsible of me, as a statesman, to impart my opinion before proposing the referendum. Therefore, my view on the referendum deadline will be disclosed when I propose the referendum.

You have said, several times, that you expect Montenegro's political opposition to return to the parliament but, as yet, it has not happened. How would you assess the credibility of the opposition and do you have a message for them?

CorD | June 2004

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ments approved by a two-thirds majority in the parliament. I base my standpoint on the fact that the Constitution does not require substantial changes in order to conform to the Constitutional Charter, and the Constitution itself provides for amendments.

How has Montenegro's international status changed since it became a member of the state union with Serbia; has progress been achieved in promoting the republic's international image?

By using economic subjectivity, Montenegro has established intensive communication and demonstrated the advantages of such discourse.

‌it is possible that Serbia and Montenegro will determine the union is unviable and agree on respective independence, which could then be formally verified by way of the referendum.

Of course, with complete international subjectivity the effects of co-operation would have been greater, but it is now clear that they are incomparable to the period of the former joint state.

Interview

Good neighbourly relations required

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CorD | June 2004

I am certain that the opposition should actively participate in the parliament; it is their duty to those who entrusted their votes to them. Moreover, I am positive that activities in the parliament are the most advantageous to the opposition. I believe that past and recent experiences of boycotting parliamentary procedures is confirmation of that.

What are your views on the conduct of the Serbian Orthodox Church in Montenegro, particularly in relation to current political issues regarding Kosovo and language?

The Church should be resolving ecclesiastical issues and the state should handle state issues. The state and the church are separated. The state must not become embroiled in theological issues and vice versa. I am sure the state has behaved accordingly and I am equally certain that any politics emanating from the Montenegrin and Coastal Metropolitan Church would only disadvantage the religious institution.

In your opinion, what is the solution for the Constitution of Montenegro: amendment and legislative change, or a new draft constitution?

As I have previously stated, my view is that the Constitution should be changed through amend-

Does Montenegro have a foreign affairs strategy and, if so, what course of action will such a plan take?

Montenegro's new position has opened the door to more concrete political activities internationally.

Not only through the diplomatic channels of the union, but also directly. We did not have this option during the time of the former common state.

I am satisfied with the international communicative activities that I have engaged in, particularly with numerous contacts I have had with presidents and senior officials of other states, and with the fact that the presidents of Croatia, Macedonia and Slovakia have paid official visits to Montenegro within a short period.

I am planning, naturally, to persist with intensification of diplomatic links in order to promote the values and resources of Montenegro, and to develop the policy of good relations with neighbouring countries; Euro-Atlantic integrations and acceptance of modern, global standards.

How do you assess the new diplomatic representatives of Serbia-Montenegro following adoption of the Constitutional Charter; do all ambassadors equally represent the interests of both member states, irrespective of their republic of origin?

First of all, I would like to express my satisfaction at the agreement between Serbia and Montenegro regarding the sharing of diplomatic duties. It would undoubtedly be useful to assess the impact and method of functioning within the diplomatic community, and this should be carried out as soon as possible.•

Taxing Times

Serbia is Recovering

Mladjan Dinkic, Serbian Minister of Finance

Amendments to the Law on Tax Procedures and the Law on Tax Administration will bring more discipline in the domain of finance. The laws stipulate higher fines for tax evasion or belated payments. Up to now, the fines only amounted to 5% of the tax value, which motivated taxpayers to avoid paying their taxes.

By Milan Culibrk, Photo Dragan Milosevic

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Interview

fter considerable haggling in the Serbian parliament, Minister of Finance Mladjan Dinkic could finally let out a sigh of relief, as the amendments to the Law on Excise Tax were finally adopted. He can now sit back with a peaceful mind awaiting June 7th, when the IMF's Board of Directors is due to decide whether Serbia has met requirements to extend the three-year arrangement signed in May 2002.

Unlike most economists, you appear optimistic. Do you have any specific reason for this?

In the new government's first month I was also pessimistic, but since then I have realised that there is more interest in Serbia abroad than I thought. After the

The fines for tax evasion are now two to twenty times higher and many people will think twice before trying to avoid paying what they owe the state. arrangements with the IMF, I can say that I'm optimistic once again. We have definitely started along the path towards economic recovery and all we need now is political stability - a considerable objective and yet attainable. On account of the upward trend in industrial growth, I will be dissatisfied if this year's GDP does not rise by at least 6%, which is something that no one expected from this government.

How did you manage to forge a deal with the IMF, who stipulated a reduction of the budget deficit from 45 to 30 billion dinars?

We can reduce two-thirds of the deficit with increased budget income, which leaves us needing to

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CorD | June 2004

Excise cut expenditure by around 5 billion dinars. Income has surged dramatically after the TR 84 plan to curb trafficking was put into effect. In the first four months, payments from excise tax increased by 22.5% and the excise tax for tobacco surged by 36.4%, when the tax rate was increased. I expect more income from taxes on petrol, diesel and other products in the ensuing period.

On the expenditure side, we shall reduce the deficit chiefly by reducing budgetary reserves. We plan to allocate 6.3 billion dinars for this purpose and we shall do everything to cut expenditure within the government's ministries. The Law on Lottery will make way for additional budget income, while a rigorous policy on tax collection will also contribute to covering the deficit. By midMay, we collected 247 million out of 3.3 billion dinars owed by taxpayers who failed to settle their excise and sales taxes.

Amendments to the Law on Tax Procedures and the Law on Tax Administration will bring more discipline in the domain of finance. The laws stipulate higher fines for tax evasion or belated tax payment.

Some MPs took advantage of my absence at the previous session and made irrational amendments that raised taxes on petrol, while the tax on diesel remained the same.

This is the same as if you offered someone a pair of trousers without one leg. It was precisely this 'other leg' that we had to stitch on at the next session of parliament.

Until the amendments were passed, the fines amounted to 5% of the tax value, which motivated taxpayers to avoid paying their taxes. The fines for tax evasion are now two to twenty times higher and many people will think twice before trying to avoid paying what they owe the state. After reducing the deficit, we will be able to cover it without using the assets from privatisation and we should receive more loans and donations than expected. The EU will increase macro financial assistance to Serbia for this year from an initially-planned 25 million euros to 70 million euros.

Do you have an alternative plan if the IMF decides on June 7th that Serbia has not met the requirements to receive new loans?

There is no reserve plan, since the probability that the IMF's decision will be negative is 0.01%. I am 99.99% sure that the IMF will give the green light for new loans and that $140 million will be transferred to the account of the National Bank of Serbia by mid-June. My confidence is based on the fact that we have removed the only obstacle in the way of a positive ruling; in so much as the IMF may have stopped further loans if the Serbian Parliament failed to raise excise taxes on diesel fuel. We counted on the extra income and made

Fuel, cigarettes, spirits....

It was probably a special moment for Ripley when some representatives of the governing coalition voted against the government proposal, so in the first attempt excise on diesel remained unchanged and instead of the proposed and expected increase of 50 percent, from 200 to 300 dinars a month, the tax on mobile phones was abolished immediately, rather than from 1st January 2005.

By Milan Culibrk

T

he story about the changes and amendments to the excise law had an unusual overture when Serbian Minister of Finance Mladan Dinkic managed to procure an increase in excise on diesel of 2.9 dinars per litre in Parliament. While Dinkic was in London and Washington at the end of April officially representing the Government firstly at the annual convention of the European Bank for Reconstruction and Development and then at the spring session of the IMF and World Bank - ministers "defaced" the original text of the law. For a few days they were

unsure of what they had in fact adopted and how high the excise would actually be on some products.

It was probably a special moment for Ripley when some representatives of the governing coalition voted against the government proposal, so in the first attempt excise on diesel remained unchanged and instead of the proposed and expected increase of 50 percent, from 200 to 300 dinars a month, the tax on mobile phones was abolished immediately, rather than from 1st January 2005.

CorD | June 2004

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Interview

remained the same. This is the same as if you offered someone a pair of trousers without one leg.

It is precisely this 'other leg' that we had to stitch on at the next session of parliament.

What do you think is the biggest challenge in the days to come?

The government has faced scepticism from the day it came into office, which is understandable to some extent, since it is a minority government.

Everything should fall into place however, because Serbia has a great opportunity. The most important achievement is that by forging a deal with the IMF we have salvaged $ 600 million of debt to be written off by the Paris Club in May 2005. Serbia is not among the highly indebted countries, with its â‚Ź12.5

arrangements over this issue with the IMF, so it really would have made no sense if the Parliament did not accept these arguments.

Wasn't all this evident at the end of April, when the initial proposal for amendments to the Law on Excise Tax did not have a good reception?

A government has to work or it shouldn't exist.

Some MPs took advantage of my absence at the previous session and made irrational amendments that raised taxes on petrol, while the tax on diesel

The government expects a balanced budget this year, even if the planned privatisation generates no profit at all. However, the privatisation of banks should yield a profit of 200 million euros. billion of public debt. The share of our debt in the GDP was 150% in 2000 and at present it is 73%. In a year's time, after successful negotiations with the London Club, it will fall below 60%, which is at the level of Hungary, a state that recently joined the EU. On the other hand, the budget deficit of Hungary was 5% of the country's GDP, while this year in Serbia the debt will fall to 2.5% GDP.

Serbia's Budget

Drastic Cuts

By Biljana Stepanovic

If the Serbian government fulfils its pledge to cut the budget deficit to 30 million dinars, rather than the originally planned 45 million, the IMF Board of Directors should grant two outstanding loans worth $140 million.

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uring the IMF Assembly's convention in Washington, a Serbian government delegation managed to reach agreement with the International Monetary Fund (IMF) on cutting the budget deficit. Serbia's government must cut its budget deficit in order to keep getting loans from the IMF, as well as from other international financial organisations.

The agreement with the World Bank pertaining to the 2005-2007 fiscal years states that the $550 million loan must be repaid in 20 years, with a 1-year grace period and an annual interest rate of only 0.75 percent. If the Serbian government fulfils its pledge to cut the

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CorD | June 2004

budget deficit to 30 million dinars from the originally planned 45 million, the IMF Board of Directors should grant outstanding loans worth $140 million in the first week of June.

The World Bank is to allow three instalments worth $40 million each

for this year. For its part, the Serbian government is obliged to meet its end of the agreement with the IMF, more precisely the conditions the IMF had set from the start. The Serbian side turned down these terms in the first round talks with the explanation that

Excise When do you expect negotiations with the London Club over Serbia's $2.5 billion foreign debt to start? And when will we know the outcome?

The outcome of the negotiations is hinged on decisions by the creditors from the London Club.

The Serbian Government has put forward a proposal and we have to insist upon an agreement that will be sustainable for us in the long term. We cannot reveal too many details, but if the London Club creditors accept our offer, negotiations can start immediately. If they insist, however, on an arrangement that will burden Serbia with additional debt we shall continue to wait.

Economists estimate that the ministers' amendments will reduce the income of the Serbian budget by five to six billion dinars. According to a rough evaluation, the abolishment of tax on mobile phones alone, with the estimation that tax is paid on every fifth of about three million active mobile phones in Serbia, will reduce state income by 180 million dinars.

A smaller income will be generated from the tax on carrying and owning weapons, as instead of a five-fold increase, it will be harmonized with the inflation rate. All this would not be so bad if Dinkic had not included the aforementioned sum in the budget. Without it the planned deficit grows. It was additionally unfortunate that all this occurred on the eve of negotiations with the IMF, who explicitly requested that the original planned budget be reduced from 45 to 30 billion dinars, or 2.5 percent of the gross national product, which is the direction in which higher excise on petrol, diesel, cigarettes, coffee and imported spirits and drinks would have lead.

Attention should also be paid to the fact that the Government gave up their original proposal of increasing excise on class A, B and C cigarettes by six, five and one dinar respectively. After negotiations with Philip Morris and British American Tobacco (owners of tobacco factories in NiĹĄ and

BoĹĄko Mijatovic, an economist and associate of the Centre for Liberal-Democratic Studies believes that foreign investors who had reached agreement with the previous government on the gradual harmonization of excise had good reason to complain about such a radical increase.

Excise tax increase lower than planned How did you decrease the projected rate of inflation from 9.5% to 8.5%, despite claims by some economists that the increase in excise tax and the price of electricity would raise retail prices?

The increase in excise taxes was lower than initially planned. The effect of these taxes on inflation, after the adjustments made for cigarettes and diesel

If London Club creditors accept our offer, negotiations can start immediately. If they insist, however, on an arrangement that will burden Serbia with additional debt we shall continue to wait. fuel, will be 0.46%. However, NIS Jugopetrol and other distributors have included only half of the tax differential into retail prices. Inflation was only 7.3% in the first quarter of this year and even if the effect of adjusted tax rates increases inflation by 0.6%, this is still below the 8.5% mark, which is the prescribed upper limit. Inflation will, however, most probably be lower.

Vranje) the Government proposed and Parliament accepted that the tax on class A cigarettes be increased by two dinars (from 23.47 to 25.47) and classes B and C by one dinar (from 10.52 to 11.52 and 4.95 to 5.95 respectively).

If the Government had not acknowledged their stance it would have been a very bad signal to other potential foreign investors, said Mijatovic.

Vladan Begovic, director of the Tobacco agency, told CorD that the adopted solutions will contribute to a better budget income as the six percent increase will present a genuine challenge to the revival of smuggling.

Excise on local spirits has been increased by 25 percent with a 30 percent increase on whisky, gin and cognac, an additional 5.3 dinars per litre has been placed on imported soft drinks and for the first time 3.5 dinars has been introduced on imported fruit juice. Instead of 16 dinars per kilogram the tax on coffee is paid at the rate of 40 percent of its value.

On the other hand, excise on heating oil (8.7 dinars per litre), jet fuel, jet petrol and petroleum for lighting (4 dinars) motor oils and lubricants (48.5 dinars), liquid gas - butane gas (3 dinars), ethyl alcohol methanol (21.5 dinars), domestic juices and soft drinks (2.5 dinars per litre) has been abolished.• CorD | June 2004

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Taxing Times law, so we should soon see income tax reduced to 10% and the tax on financial transactions to 5%. Our aim is to have national companies generating profit

I will encourage phased privatisation in order to find the optimal buyer for each of our banks and, following the example of Ireland, to motivate foreigners to shift some of their capital to Serbia to start up businesses here. The fact that the world economy has started to recover from recession will also boost our opportunities.

Interview

National companies need to generate How do you plan to attract more private investors?

The Ministry of Finance will soon put forward a draft for the new Law on Income Tax, projected to be the most liberal tax law in Europe. The tax is among the lowest in Europe at 14%, but the additional 20% tax on transactions makes for an accumulated 34%, which is why investors are not motivated to put more capital into Serbia. This and some other limitations have prompted us to push for further liberalisation of the

When can we expect the first tenders for banks of which the state has majority ownership?

The tender for Jubanka should be called within the next few days and by the end of the year Novosadska, Kontinental and Niska banks will be put up for sale. profit There is interest among foreign banks to buy them, so I expect competitive bidding and successful privatisation of these banks. The state's interest is to sell its shares in other banks as well, and, as Minister of Finance, I will encourage phased privatisation in order to find the optimal buyer for each and every one of them. EBRD and the German Development Fund Kfw are expected to become co-owners of the National Savings Bank in the next few months. EBRD is also keen to recapitalise Kulska bank and to invest in Delta Bank.•

Serbia's Budget it could not cut the budget deficit from 3.6% to 2.5% of Gross National Product (GNP). However, Serbian officials now say it's possible.

This time round, there is no alternative but to honour the agreement with the IMF, as failure to do so would leave a three-year arrangement with the body hanging in the balance.

Honouring the agreement is especially important in view of the fact that the IMF's support for Serbia dwindled significantly last year. If relations with the IMF were to be suspended, the Paris Club would withdraw its pledge to write off 15% of Serbia's overall debt to that institution, a sum amounting to $600 million.

So, how can a cut in the budget

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CorD | June 2004

deficit be achieved, resulting in the IMF letting Serbia off the hook come early June? Officials say there will be no cuts in wages and pensions, adding that a third will be covered from the budget reserves and the remaining two thirds from boosting budget revenues.

Budget reserves are exceptionally high this year at 600 million dinars.

Similarly, revenues have exceeded expectations in this year's first financial quarter and have increased by 13 % against the same period last year.

The government expects a balanced budget this year, even if planned privatisation generates no profit at all.

However, the privatisation of banks should yield a profit of 200 million euros.

This optimistic forecast suggests that the government could end up with a surplus, rather than a deficit, at the end of the year. This leaves us wondering why the government turned down the IMF's demand in the first round talks, and instead came up with a budget deficit 50 % larger than the one drafted by the international body.

Deputy Prime Minister Miroljub Labus said the government has revised its original forecasts.

According to Labus, the GNP should rise by 6%, rather than by 4.3%, and the inflation rate is to be kept at 8.5%, rather than 9.5%. Some economists feel that a sound economic policy can be pursued even with a slightly bigger inflation rate.•

A football festival kicks off in Portugal All Matches Phase 1 12 June 2004 - Group A Portugal 17:00 Greece Spain 19:45 Russia 13 June 2004 - Group B Switzerland 17:00 Croatia France 19:45 England 14 June 2004 - Group C Denmark 17:00 Italy Sweden 19:45 Bulgaria 15 June 2004 - Group D Germany 19:45 Netherlands Czech Republic 17:00 Latvia 16 June 2004 - Group A Greece 17:00 Spain Russia 19:45 Portugal 17 June 2004 - Group B England 17:00 Switzerland Croatia 19:45 France 18 June 2004 - Group C Bulgaria 17:00 Denmark Italy 19:45 Sweden 19 June 2004 - Group D Latvia 17:00 Germany Netherlands 19:45 Cz. Republic 20 June 2004 - Group A Spain 19:45 Portugal JosĂŠ Russia 19:45 Greece 21 June 2004 - Group B Croatia 19:45 England Switzerland 19:45 France 22 June 2004 - Group C Italy 19:45 Bulgaria Denmark 19:45 Sweden 23 June 2004 - Group D Netherlands 19:45 Latvia Germany 19:45 Czech Republic

Quarter-final Matches 24 June 2004 - Match 25 Winner A 19:45 Runner-up B 25 June 2004 - Match 26 Winner B 19:45 Runner-up A 26 June 2004 - Match 27 Winner C 19:45 Runner-up D 27 June 2004 - Match 28 Winner D 19:45 Runner-up C

Semi-final Matches 30 June 2004 - Match 29 Winner 25 19:45 Winner 27 01 July 2004 - Match 30 Winner 26 19:45 Winner 28

Final Match 04 July 2004 - Match 31 Winner 29 19:45 Winner 30

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February CorD | June 20042004

France against the rest of Europe The French national team will face fierce competition from several others in a bid to retain the title, says Slavoljub Muslin, the Red Star Belgrade manager

EURO 2004: Groups and Tournament Format Group A

Group B

Group C

Group D

Portugal Greece Spain Russia

France England Switzerland Croatia

Sweden Bulgaria Denmark Italy

Netherlands Germany Cz. Republic Latvia

By Zoran Milosavljevic

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erbia and Montenegro won't be there when the European Championship (EURO 2004) kicks off on 12thJune in Portugal. There are many reasons why our national football team failed to qualify for the second major soccer event in a row, after missing out on the World Cup 2002 finals too. "We need a stronger league to form a better national team capable of challenging Europe's best," says Slavoljub Muslin, former manager of Serbia and Montenegro champions Red Star Belgrade. "Our coaches and soccer authorities need to start following European trends, which means proper scouting and a thorough application of methods which brought success to other European nations," he added.

Muslin, who led French side Girondins Bordeaux to the UEFA Cup final in 1997 and coached one of the world's best players Zinedine Zidane at the time, maintains that defending European champions France are clear favourites to retain the silverware, but also feels that Jacques Santini's side will face fierce competition from several other nations in a bid to become the first team to win back-to-back titles.

"They are certainly the best team in Europe but hosts Portugal, the Netherlands and Italy will be worthy opponents," Muslin says. "Spain could be top contenders too but they hardly ever do well at big events even though they have a very strong league. However,

Portugal's teenage sensation Cristiano Ronaldo, who's been in brilliant form for his club Manchester United, could also make an impact.

He is young and hungry and could be the revelation of EURO 2004. they've got some outstanding players and I wouldn't be surprised if they go all the way this time," Muslin told CorD. Whether France will be able to fend off the rest of Europe at this year's soccer festival in Portugal largely depends on how quickly Santini's best players can recover from a long and tiring season they've had across Europe.

"Thierry Henry will be the star of the tournament if he gets enough rest after an exhausting season he's had with Arsenal," Muslin says. The former Red Star coach believes that Portugal's teenage sensation Cristiano Ronaldo, who's been in brilliant form for his club

Manchester United, could also make an impact.

"He is young and hungry and could be the revelation of EURO 2004. Portugal have a lot of good players but he could add that extra bit of flair if they are to win the tournament on their home turf", Muslin told us.

Whether France will be able to fend off the rest of Europe at this year's soccer festival in Portugal largely depends on how quickly Santini's best players can recover from a long and tiring season they've had across Europe.

The Netherlands hope that their goal-scoring machine Ruud Van Nistelrooy rediscovers the form that made him the most wanted striker in Europe. Manchester United's top scorer, who went through a barren spell in the closing stages of the Premier league, will certainly hope that a new generation led by Arjen Robben, Andy Ven der Meyde and Rafael Van Der Vaart will provide enough support to emulate the 1988 success when a Dutch team inspired by Marco Van Basten and Ruud Gullit won the European Championship in grand style.

Spain will rely on their proven stalwart Raul Gonzales and fresh blood personified by Atletico Madrid's rising star Fernando Torres as well as Valencia's versatile midfielder Ruben Baraja.

Italy's coach Giovanni Trappatoni is still hoping that veteran defender Paolo Maldini will change his mind about international retirement, but the "azzuri" can mount a strong challenge even without the 36year old AC Milan full back as they have more than a few big names in their squad. Take your pick from Christian Vieri, Alessandro Del Piero, Alessandro Nesta and the magnificent Francesco Totti.

Others, not mentioned by Muslin as the front-runners, will claim that they are also in with a shout.

Most of all England, who'll come to Portugal with a blend of youth and experience led by their controversial captain David Beckham.

After an impressive start to the season with his new club Real Madrid, the former Manchester United star faded away along with the rest of the team as personal problems apparently affected his performances. England have a tough EURO 2004 opener against old rivals France and tricky group ties against Switzerland and Croatia.

Winning the European Championship is uncharted

territory for England but not an accomplishment beyond Sven-Goran Eriksson's men, provided that Beckham can cope with the pressure on and off the pitch and rise to the occasion. If he does, his dream of leading England to glory after winning a memorable treble with Manchester United in 1999 may come true.

A new-look Germany, the Czech Republic, Sweden, Denmark and Bulgaria will be looking to cause an upset, as someone regularly does at big events. Greece, Bulgaria, Croatia and Switzerland have similar hopes, but they have a mountain to climb if they are to get past the group stage and into the quarter-finals. Latvia, the dark horses of the tournament, have already won the hearts of all neutral fans and every point they win in a group with three former European champions will be a credit to their amazing success of reaching the EURO 2004 finals. One must wonder whether this tournament can produce something new for coaching manuals. "I don't think so. Everyone will rely on the basic 4-4-2 formation which occasionally transforms into 3-5-2 and 5-3-2 depending on the result. I do expect high quality soccer and a surprise or two, a flash of brilliance from a particular team or an unsung hero," Muslin says.

Euro 2004

A football festival kicks off in Portugal

Fans in Serbia and Montenegro will be confined to watching the event on television and picking their own favourites.

Our national team, once a force to be reckoned with, has a daunting task of reaching the World Cup 2006 finals in Germany from a qualifying group headed by Spain and Belgium. Slavoljub Muslin believes the chances are slim. "A lot of hard work needs to be done for this to happen and I am not very optimistic about our chances.

We have plenty of talented players, but that's not enough. Talent alone is never enough, it is only a supplementary ingredient which comes handy if there is a solid platform. A solid platform is what we lack and it takes to time to build one," he said.•

CorD | June 2004

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Interview Peter Schieder, President of the Parliamentary Assembly of the Council of Europe

The Future of Kosovo We are not dissatisfied with what has been done, but we require full cooperation with the Hague Tribunal and distancing from the actions that lead to the great tragedy in your country and the people responsible for these crimes

Interview

By Dragan Bisenic

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CorD | June 2004

S

chieder wrote: "Serbian villages across Kosovo are in flames and an enraged rabble is destroying the Orthodox churches, the very symbols of the Serbian presence in Kosovo. Their actions are disgraceful but so is the absence of a clear and unequivocal condemnation of the antiSerb violence by the Kosovo Albanian leadership."

Peter Schieder is an eminent member of the Austrian Socio-Democratic Party and together with another Austrian, Walter Schwimmer, leads the most complete institution for European integration - the Council of Europe. It is rare for two people from the same country to hold the two most important functions in an international institution, but this has just occurred in Strasbourg.

The time he spent heading the representatives of the European Parliament was greatly marked by questions concerning the Balkans and the status of Serbia and Montenegro. After the October changes, the question of accepting Serbia and Montenegro into the Council of Europe was raised. Serbia and Montenegro joined the Council of Europe last year largely due to the endeavours of the President of the Parliamentary Assembly, who exerted great personal effort at both external and internal levels concerning the newly formed state union.

- The admission of Serbia and Montenegro into the largest European family is also a successful personal achievement, but many questions have yet to be dealt with by this country in the post reception period. There is an extensive post accession programme, which includes numerous legislative changes. The recent report issued by the Council of Europe monitoring mission on Belgrade's compliance with obligations had different intonations.

Some obligations had been met, but not much progress had been made in the fields most significant as regards the application of European principles and values - such as legislative reforms. These points, along with cooperation with the Hague Tribunal, are not something that should be forced or experienced as an imposition by the

Serbia and Montenegro are now part of the European family and we hope that this will be an encouraging step towards building the European future of your country International Community. They are in the best interests of the people of Serbia and Montenegro and in the best interests of those who elected them.

During our conversation Peter Schieder disclosed other details from his extensive political biography that link him with this region. Before becoming an active politician, he was a journalist.

As a journalist writing for his youth party paper he visited Belgrade and the former Yugoslavia and wrote with great enthusiasm on the participation of the youth in voluntary work in the sixties of the previous century. Schieder explains: "Tito's

Interview Yugoslavia was the source of several very interesting projects in the international left movement. Its achievements at the time were very attractive to all, including me". Schieder said: "I did not expect or desire the destruction of your country and certainly did not expect it to be one of the questions which would occupy me during my work in the Parliamentary Assembly of the Council of Europe. Serbia and Montenegro are now part of the European family and we hope that this will be an encouraging step towards building the European future of your country" Your recent reaction concerning the events in Kosovo was very sharp.

- Only one day before these events, the Parliamentary Assembly Political Committee organized a hearing on the human rights situation in Kosovo, focusing on protecting the human rights of all Kosovo's citizens. The purpose of this meeting was to assure everyone that the future of Kosovo will not be like its past.

Sadly, the Albanian majority in Kosovo and its political leadership have not succeeded in showing that they are able to create a future for Kosovo where all its citizens will be offered the opportunity to live in peace and prosperity. This is not a comment on the future status of Kosovo, but one must bear in mind that the international community will never allow the future of Kosovo to resemble its past. Transferring the responsibility to the other side and using the escalation of ethnic violence to achieve the political goal of the majority of the population is unacceptable. One should not disregard the fact that the events in Kosovo provoked terrible scenes of ethnic hatred and vandalism in several Serbian cities and I have already publicly condemned these incidences.

However, violent protests in Belgrade, NiĹĄ and other parts of Serbia do not to any extent reduce the responsibility of the Albanian side for not bringing an end to the violence in Kosovo.

How do you evaluate current affairs in Serbia from the viewpoint of complying with obligations towards the Council of Europe?

- I believe that, after the constitution of government institutions in Serbia, steps towards further reforms will continue to be made within the political, legislative and economic sphere and that these changes will be conducted in a fair and socially acceptable fashion. Every four months the Council of Europe’s monitoring mission issues a report to the Committee of

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Ministers on the achievements and shortcomings of this process. This is a serious task, one which requires a great deal of effort. We are not dissatisfied with what has been done, but we require full cooperation with the Hague Tribunal and distancing from the actions that lead to the great tragedy in your country and the people responsible for these crimes. SCG has ratified the European Convention on Human Rights and a series of other important documents, but considerable effort is still required to apply these documents in practice.

At a press conference at the Council of Europe headquarters you warned politicians in Serbia that "they should look further than their nose" What were you thinking of?

- That was said at a time when it seemed that the Government in Belgrade would not be elected at all or that it would not hold enough democratic potential. There were speculations then of repeated elections that would only be seen as yet another political failure in the series of previous failed elections for the President of Serbia. Democratic politicians will always act in the interests of their country and be ready to make compromises that will even go against the narrow minded interests of their own party.

Among your declarations we noted a very sharp reaction to the abuse of prisoners in Iraq and the statement "fighting terrorism should not be at the expense of respecting human rights".

- The scenes we saw are not only breaking the Geneva Convention, but are a profound insult to humanity and human nature. The USA is not a member of the Council of Europe, but they are observers, while Great Britain is a member who should respect our convention on human rights, especially article 3 which regulates that "no one

Democratic politicians will always act in the interests of their country and be ready to make compromises that will even go against the narrow minded interests of their own party. can be the subject of torture or inhuman or degrading treatment or punishment". In the last fifty years Europe has made great progress in civilized behaviour, including among other things, abolishing the death penalty. The threat of terrorist attacks has given good grounds for populist measures or populists such as the Liga Nord in Italy or Michael Wolfsohn, a professor at the German military school who justified the pictures we saw. Torture is not only bad, it is also foolish, as any torture will be the source and reason for the recruitment of new terrorists. How can we expect to politically promote human rights and democracy in the Balkans, Bosnia, Kosovo, and Caucasus if we personally do not respect the fundamental values of our societies?•

H.E. Mrs. Judita Stoucarova, Czech Ambassador to SCG

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n the Czech Republic, Mrs Stroucarova is somewhat of a legend. In a key period for her country, when the Czech Republic was making its way towards the European Union, this remarkable woman played a crucial role in one specific domain of the economy. The economy of the Czech Republic relies greatly on export, but the beginning of the transition period, as well as the crisis in the Balkans, had significantly reduced the client base.

Mrs Stroucarova is one of the key figures in her country's successful re-orientation towards western markets.

Her career took on a new dimension after she had taken up the post of Czech Ambassador to SCG. When she arrived four years ago, one of her primary tasks was to revitalise trade between the two countries. Today, when the date of departure to her home country is close, Stoucarova says that she will remain dedicated to her work until the very last day.

She is satisfied with her time spent in Belgrade.

Following our interview with her, midnight the same evening marked the Czech Republic's accession to the EU, an achievement that Mrs. Stroucarova has every right to regard as a personal success.

A Unique Situation

In retrospect, were your first impressions of Serbia correct? Have your personal expectations, good or bad, materialised?

The difference between the time of my arrival and now is huge. I came in July 2000 and my general impression was that I had returned to socialism, for example, I read newspaper articles written in socialist vocabulary. However, this was not the only impression. I met people from the opposition, both veterans and young, educated, enthusiastic and with a good programe. I knew there were problems with the fact that they could not take a unified stand. I came at the time when DOS was being formed and saw an opportunity for change.

Interview

By Jelena Grujic, Photo Dragan Milosevic

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Czech companies are looking to co-operate with Serbia but request stability, reduced risks and less bureocracy.

The relations between the two states and individuals are also an important factor, but here the experience has been positive.

I wanted to make a contribution to developing these relations during my four-year mission, outgoing Czech Ambassador to Serbia and Montenegro Judita Strouracova told CorD magazine.

CorD | June 2004

Did you believe then that the opposition would succeed?

Their unity was an essential pre-requisite. They were much stronger together than they could ever be acting alone.

Could you make a general comparison between the situation in October 2000 and the now?

As diplomats, we attended the meetings at the Ministry of Foreign Affairs and were well informed about what was going on. We were instructed about our duties and told not to interfere with the state's internal issues. At the same time, Otpor posters were heralding "He's Finished" and "Closed due to robbery" all over the city. It was an interesting period.

Interview Our government had joined a score of European states in a decision not to submit their diplomatic credentials to Slobodan Milosevic, but rather wait for the new government. We had the official status of charge d'affaires and we joked among ourselves that we were all "so-called ambassadors". It was an absurd and unique situation.

Were you in the first wave of diplomats received by Vojislav Kostunica after the changes in October 2000?

I was among the first to apply for diplomatic accreditation. It was a special occasion, just as the 5th October was. I saw it all happen from the balcony of our embassy (the Czech Embassy is located at the beginning of Kralja Aleksandra Street).

Diplomats were strictly prohibited from taking part in the demonstrations. I knew, therefore, that I was not allowed to leave embassy premises, but I couldn't stay put. I was in Pionirski Park with my deputy

I believe in the power of democracy.

This is non-negotiable, since it is the only right direction. The second issue is economic development, which is very important, since it impacts on everything at all levels of society. right up to the point when they started firing tear gas grenades. The slogan "The citizens of Cacak have liberated Belgrade" stood on the wall of our embassy. I can honestly say that I took part in your revolution and these are powerful impressions in my heart that no one can ever erase.

Serbia seems to have lost the enthusiasm and inspiration it had in October 2000. How do developments seem to you?

The same happened with us. Everyone has great expectations at the beginning and believes that problems can be solved overnight. However, it is not so simple and the declining enthusiasm usually turns into impatience that slows down reforms and the process of change. Nevertheless, the Czech Republic went through a slightly different process.

We had a clear path and aims before us from the very start and we expected problems. We all understood very well that we needed time.

How did you persuade citizens to be patient with the slow pace of reform?

The people are not a homogeneous group. They belong to different categories with varying economic status and viewpoints. Our government managed to reach a consensus and avoided social unrest and protests directed against the new developments.

This was crucial - social reconciliation that allowed us to transform the assets we already had at our disposal. We had a solid base we could build on. The period from 1918, when the Republic of Czechoslovakia was founded, until World War II was

Economic development is not a constantly ascending progress line a period of development for us, when we expanded our industry, including heavy industry producing world-renowned goods. The economy had developed the production of locomotives, weapons, equipment for the electrical industry, cars, etc. We have always been a developed country based on democratic principles, but had to go though a period of socialism on our way to the EU. My view is that socialism was a kind of an intermission, or break, in the process of development that we had already started. I am convinced there are good reasons for trust in your case as well.

I guess that three things are important in that respect. First, I believe in the power of democracy. This is a non-negotiable, since it is the only right direction. The second issue is economic development. This is very important, since it has an impact on everything at all levels of society. Economic development is not a constantly ascending progress line, since it consists of several stages that usually include stagnation and difficulties. The third aspect is the law, a legal framework that will clearly define the position, rights and obligations of every individual, institution, subject and provide sanctions in case these rules are breached. I think that the development of every country in the period of transition depends heavily on adherence to these principles.

It is important to note the following - the process of liberalisation, transformation of the economy and gradual deregulation and regulation anew, reforms in the system of education, health security, culture and other domains is linked with providing informaCorD | June 2004

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Interview

The volume of trade between our two countries is somewhere around $150 million per annum tion to the public. In the Czech Republic, for example, it is important to say that the era of paternalism has also come to an end. This means that the role of the state in the life of an individual has been considerably reduced, while individual responsibility has grown, unlike the social relations that existed under socialism. The state does not focus its full attention on what we need. It is a lengthy process that has not been completely resolved even in our country. However, the process is unfolding at its own pace and everyone was confronted with the fact that it was inevitable.

Before taking up office in SCG, you were Director of the Czech Agency for Trade Promotion, and we understand you were especially sought out for the ambassadorship. Can you tell us more about the strategy of your country towards Serbia? What was expected of you?

Yes, I was the founder and director general of the Agency for Trade Promotion - CzechTrade. The Czech economy depends heavily on export and boosting this segment of trade was one of the most important components for further economic development. My endeavours allowed me to build strong links with our business community. The idea behind my mission in Belgrade was to rebuild economic ties between SCG and the Czech Republic, after Milosevic's decline and the withdrawal of sanctions, based on our long-standing historical relationship.

The government wanted an economist in this position who was well acquinated with the market on one hand, and had links with the business community on the other. It was a great challenge for me. I thought I would spend the rest of my career at the Agency, which was my baby. I hope that I have managed to fulfill what was expected of me. I should point out that the Czech Republic and SCG each ranked fourth on each others list of foreign trade partners in the late 1980s. We were investors and coinvestors in many project here. The turbine still operating at the Kolubara A power plant was made at Skoda Plzen. The trams that are part of Belgrade's public transport system are also our make. There was a long tradition of bilateral relations between Czechoslovakia and SFRJ and this trend has now continued with the Czech Republic and Serbia.

How do you view the Czech Republic's accession to the EU? We have always aspired towards this goal. I look at the period under socialism as an intermission, a 40-year obstacle in front of

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democratic and economic development. Now we have found our place in the family of European states. European standards are not peculiar to us - we have always been a democratic country, even in the sense of deploring violence and never having used force to solve our problems. The transition of the economy was harder to swallow, however. We also carried the heritage of 40 years of socialism, central planning and rudimentary private ownership. We had to change our mind-set and show understanding for a market and liberal economy once again. For example, we had to reform the pension system, the health-care system, undertake economic and social reforms across the entire infrastructure, and, at the same time, keep explaining these measures to the citizens. We had to modify certain social norms, but this had to be preceded by economic reform.

Besides which, we also had to harmonise technical standards. Did you know that there are some 10,000 standardisation rules for exporting goods to the EU? Our producers were not aware of the fact. Then there is also the issue of standardising legal norms that must also be adhered to.

How is the Czech Republic positioned economically and politically towards Serbia today?

The volume of trade between our two countries is somewhere around $150 million per annum, which is not much, but a lot more that it was a few years ago.

I am happy to say that cars produced by Skoda are still very popular here and they rank first on the list of imported automobile brands. Our companies are mainly oriented towards three domains in your coun-

My view is that socialism was a kind of an intermission, or break in the process of development that we had already started, and now we have found our place in the family of European states. try - energy, the environment and traffic infrastructure.

There is high demand in Serbia and Montenegro for certain products from the Czech Republic, such as beer, textiles and glass. Many companies have representative offices here, as well as a Czech Trade outpost that co-ordinates the Czech business community in your country. Our government has also decided to provide developmental aid to the countries that are in need. We have recently reduced the number of countries that are eligible to receive aid to seven and SCG is among these. The aid is conditioned by the logic that it has to correspond to the priorities of these countries and must be used in co-operation with the local authorities.

A good example is our contribution to clearing the waste depot in Kragujevac, but there are many other projects. The Czech Government will set aside 20 million euros for this purpose next year.•

Directors of two of Serbia's largest banks dismissed

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he Serbian Government has dismissed the directors of two of Serbia's largest banks Komercijalna Bank and Vojvodjanska Bank.

The director of Komercijalna Bank, Ljubomir Mihajlovic, has formally resigned, and his resignation has been accepted by the Shareholders’ Assembly. The newly appointed director of Komercijalna Bank is the former director of the Serbian Development Bank, Ivica Smolic. As the major owner of 99% of the shares, the Serbian Government has also dismissed the director of Vojvodjanska Bank Sdrjan Mihajlovic, and appointed Zoran Radonjic, one of the bank's employees.

The change at the top of Vojvodjanska Bank did not provoke half as much public interest as was the case with Komercijalna Bank. The reason for this public reaction is the informal power which the replaced director of the bank, Ljubomir Mihajlovic has succeeded in clinging onto since the time of Milosevic's regime. Mihajlovic spent 12 years as head of

Political Economy

Reasons

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By Biljana Stepanovic, Photo Dragan Milosevic

The change at the top of Vojvodjanska Bank did not provoke half as much public interest as was the case with Komercijalna Bank. The reason for this public reaction is the informal power which the replaced director of the bank, Ljubomir Mihajlovic has succeeded in clinging onto since the time of Milosevic's regime. Mihajlovic spent 12 years as head of Komercijalna Bank Komercijalna Bank and was not dismissed even when almost half a ton of heroin was found in the safe of his bank after the regime change of 5th October 2000.

Minister of Finance Mladjan Dinkic managed, after two months intensive preparation, to replace Ljubomir Mihajlovic, as director of Komercijalna Bank, the largest Serbian Bank. During Milosevic's regime, Mihjlovic manage to forge strong roots by establishing connections with all political parties, police, secret police and financial centres.

Over the last year Mihajlovic has played a very active role in the Association of Serbian Industrialists and Enterprisers established by one

of the richest businessmen in Serbia, candidate at the forthcoming presidential elections and owner of the BK Group, Bogoljub Karic. Both of them have expressed their clear political ambitions and set up a strong lobbying group.

The State currently owns 29 % of the shares in Komercijalna Bank, gained after the conversion of the Paris Club debt into state deposits. Prior to this, Mihajlovic had managed, through private investments, to transform this bank from a state owned to

Over the last year Mihajlovic has played a very active role in the Association of Serbian Industrialists and Enterprisers established by one of the richest businessmen in Serbia, candidate at the forthcoming presidential elections and owner of the BK Group, Bogoljub Karic. Both of them have expressed their clear political ambitions and set up a strong lobbying group. a majority owned private bank. In order to ensure the Bank’s executing Board supported Mihajlovic's replacement, the Director of Galenika was dismissed in order to change the representative of this pharmaceutical company on the executing board of Komercijalna Bank.

After that, with the shares from state owned companies - Galenika, The Petrol Industry of Serbia, The Serbian Electricity Company and The Dunav

Insurance Company, the state was ensured control of 52.8 % of Komercijalna Bank shares.

Consequently, company representatives on the Board supported Mihjalovic's resignation at the Stockholders’ Assembly. Three days prior, the President of Komercijalna Banks executive board, Nebojsa Savic, who is also a professor at Bogoljub Karic's BK University, also resigned.

Three days prior to these events, Komercijalna Bank had returned to the budget, before the deadline, the last Ljubomir Mihajlovic 260 million dinar instalment spent 12 years as of the state deposit from the head of Komercijalna Bank total of 4.6 billion dinars, which former minister of finance Bozidar Djelic had deposited in Komercijalna Bank. Mihajlovic had earlier refused to return this money and demanded that this be settled with funds owed to him from state companies.

Government officials claim that the state will do everything in its power to further develop the entire banking system and create conditions for a drop in interest rates ensuring that both banks will operate under improved and more stable conditions. The state has also announced its intention to sell its shares in those banks.•

Leaders meet in Sarajevo summit

Balkan Borders The Bosnian capital of Sarajevo hosted the latest meeting of Balkan heads of state last month, the main conclusion of which was that state borders will not be changed, because requests for border movements within the former Yugoslavia was the greatest cause of European bloodshed since the Second World War.

hen English author Bram Stoker penned the novel ‘The Lady of the Shroud’ at the beginning of the 20th Century, he could not have known that he was advocating an idea that is still a goal today.

In the book, Stoker's hero finds himself appointed as King of Montenegro. Realising his

government involved in the process of co-operation in South-East Europe (SEECP) by paying tribute to late Macedonian President Boris Trajkovski.

Tihic went on to say that BiH is progressing well on the road to becoming a functioning state with institutions that will allow the possibility of full Euro-Atlantic integrations. He expressed his belief that BiH will join NATO's Partnership for Peace programme this year and that negotiations regarding the EU's Stabilisation and Association

kingdom is small and isolated, Stoker's hero decides to attempt to unite similar small countries of the region - Herzegovina, Raska, Serbia, Bulgaria - and form a union to be called the Balkan Federation. With this in mind, the character invites the world's kings, presidents and ministers to a summit that will "stop all wars and conflicts forever".

This innovative plan for Balkan unity did not make Stoker famous - that was left to his blood-thirsty Balkan Count Dracula, but five years ago heads of state from around the world gathered in Sarajevo to attempt to bring to life Stoker's notion of trust and cooperation in the Balkans. Last month saw the seventh such meeting.

Sulejman Tihic, chairman of the Bosnia & Herzegovina (BiH) presidency, opened the seventh summit of heads of state and

agreement will commence in September.

The Bosnian leader insisted that the presence of the international community in BiH was still necessary, but that they would be in a position to reduce the number of foreign representatives in the next year. He insisted that bilateral and multilateral cooperation of the region's countries has advanced greatly; although he called for more work to be done in all spheres of co-operation, particularly with regard to visa regimes within the region and the Schengen status of the former Yugoslav states.

Turning to the issue of Kosovo, Tihic said: "the latest happenings in Kosovo and the entire chain of

By Dragan Bisenic

Summit

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will not Change events that led up to it, remind us how closely we are connected to one another. With this in mind, I would like, one more time, to highlight the importance of mutual respect of sovereignty, territorial integrity and borders."

President Svetozar Marovic insisted that the speed of European Union integration rested in the hands of the individual states, and that it is essential to do everything possible to hasten advancement towards the EU. Speaking on behalf of the state union, Serbia & Montenegro (SCG) President Svetozar Marovic insisted that the speed of European Union integration rested in the hands of the individual states,

are many challenges ahead and obstacles would always have to be overcome where this region is concerned.

The event was attended by representatives of all countries formed during the collapse of Yugoslavia with the exception of Slovenia, which was busily preparing for EU accession at the time.

The fact that the European Union and the West Balkans are beginning to put aside the last era of exclusion, and that European Commission President Romano Prodi announced that "the Balkans is the next area the EU will focus on", had a strong psychological effect on the summit and re-enforced the notion that all former Yugoslav states are heading in the same direction.

Speaking to journalists after meeting Croatian Prime Minister Sanader, President Marovic said that he had congratulated the Croatian PM following the EU's positive evaluation of the country's request for full EU membership.

Insisting that the Croatian achievement should be a model for

Summit in Sarajevo: “Stop all wars and conflict forever� and that it is essential to do everything possible to hasten advancement towards the EU. Marovic highlighted that the foreign policy priorities of SCG were to achieve the full right to participate in Euro-Atlantic integrations, to develop a policy of good neighbourly relations and to achieve full regional stability as a precursor to economic prosperity.

The SCG President noted that last year had seen great advancement for the region's countries on the road to European integration and with regard to regional relations; although he warned that there

other countries of the region, Marovic said: "All moves of Sanader's government are good examples of brave initiatives and European aspirations that we want to display in SCG".

He added that he and the Croatian PM had agreed to take steps aimed at improving relations between Croatia and SCG. Special Co-ordinator of the summit, Erhard Busek, noted that regional co-operation was not only a vital requirement of regional development, but also a prerequisite for EU membership.

He underlined the importance of the summit-members' decision to welcome Croatia as full members of SEECP and praised the recommendation that Moldova be granted observer status at the next meeting of SEECP Foreign Ministers.• CorD | June 2004

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US Presidential elections

BUSH v KELLY

By Dragan Novakovic

The repercussions of the war in Iraq, the state of the US economy, jobs, problems of health care, the budget deficit, taxes, abortion and many other domestic issues in the US will determine the outcome of the elections.

Foreign countries and their peoples do not of course vote for the US President, but the outcome of the elections certainly has an enormous affect on world politics and economics. The results of the election will directly influence the situation in Iraq and in the wider Middle East, the future role of the UN, and multi-lateralism in general. It can determine the destiny of the Kyoto Protocol and the fight against global climate change, and the future of trade negotiations in the Doha round and world financial movements. At all flash points in the world, whether in the Indian subcontinent, Central Asia, the Caucuses or, of course, the Balkans, the position and policy of the US is often crucial, and the man sitting in the Oval offices determines this stance.

In November, the American populace will have to decide whether George W. Bush has been a strong, determined and effective leader in the struggle against global terrorism in the aftermath of the tragic attacks of September 11, or, if he put American troops in harms way in a Vietnam-like quagmire, without a visible solution or an end game in sight. The voters will have to determine if the Bush administration had done enough prior to 9/11 to prevent the attacks on the Twin Towers and the Pentagon, or, as terrorism analyst Dr Clark stated, there had been major complacency and ineptitude. There again, Americans will have to decide if the war against Iraq was justified, as it now seems clear that the regime of Saddam Hussein did not have

determining issue influencing the outcome of the elections. It could be that domestic concerns, primarily the state of the US economy, may prevail, as was the case in 1992 when the phrase "It's the economy stupid" was first coined. After major recession-like problems in 2001 and 2002, the US economy in the last six months has begun to recover, with a quarterly growth rate of over 4 %. However, job growth has been rather slow and there are segments of the American workforce that have been made redundant and are hurting.

Both the budget and trade deficits are causing major concern and, as Democratic candidate John Kerry proposes, there is a strong urge to increase taxes to finance the budget deficit. There is no doubt that President George W. Bush faced enormous, unprecedented, challenges during his first term, not least of which was the direct attack on America's symbols of power and wealth. Likewise, he has shown the determination and will to face these challenges, and has tended to stick to his positions and general strategies.

This said, his opponent, Senator Kerry, has not found it difficult to find flaws in the way Bush handled the terrorist threat. He has already strongly criticised Bush for having alienated the US from the international community and especially the UN, and is committed to returning the US to multilateralism and abandoning the policy of preemptive strikes. Kerry says that he is

Opinions

he Presidential elections in the United States in November 2004 will, like all elections for American Presidents, have an impact and magnitude far beyond the shores of the United States. The position the US has on the world stage - in politics, economics, defence, science, technology and, even in the widest sense, culture, and, as the only remaining super power - makes the election of the American leader an event which has crucial ramifications for all the countries of the world, and global affairs in general.

weapons of mass destruction, nor did it present a clear and present danger to the security of the US. Americans might also ask themselves after four years of the Bush administration, if they are safer, or the US is more vulnerable due to its unilateralism, especially after the publication of the extremely embarrassing, horrific pictures of the US army torturing Iraqi prisoners in the Abu Ghraib prison. Another issue is that the US is more unpopular in the eyes of the world than it was four years ago.

On the other hand, it is entirely plausible in a country of America's size that foreign affairs may not be the

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US Presidential elections determined to mend relations with allies that have been somewhat estranged during the Iraq crisis. With over 700 US service personnel killed in Iraq in the last year, President Bush's statement, following his spectacular landing on a US aircraft carrier a year ago, that major military operations were over provides an easy target for Mr. Kerry. Yet the Democratic candidate has been unclear on the Iraq issue and has shied away from overtly critisising US intervention, preferring to raise questions on how the war was handled rather than clarifying whether the intervention was justified.

Generally, Mr. Kerry's main problem seems to be that he has not been delivering a clear message in the campaign, even personally admitting such by recently saying "a lot of people do not know who I am" despite being a Senator for more than 19 years. The British magazine ‘The Economist’ recently stated that Kerry comes across as aloof and long-winded and does not have the optimism and sunny disposition of either Bill Clinton or Ronald Reagan. Of course, Kerry is sticking to traditional Democratic Party positions like internationalism, cutting the budget deficit, increased taxation of the wealthy, but, so far, he has lacked a distinctive message.

On the economic front, Senator Kerry is espousing Clinton-like policies, such as a business-friendly tax agenda, a determination to cut corporate welfare and a drive to cut the budget deficit in the first term.

He is also promising to devise a plan to improve the situation of the millions of Americans without health insurance, by expanding existing government health

policies for the poor and subsidising employerbased coverage. Like Clinton when he was a candidate, Kerry is strongly pushing for the need to make new jobs. He is certainly pro-trade, but has not been explicit on a new global trade deal, or the need to invigorate the Doha trade talks.

In early March, Senator Kerry was five points ahead of President Bush in the polls, but this lead has simce dwindled and Bush is now four points ahead: an amazing feat given the major difficulties the US is facing in Iraq, and the scandal concerning the abuse of Iraqi pris-

Generally, Mr. Kerry's main problem seems to be that he has not been delivering a clear message in the campaign, even personally admitting such by recently saying "a lot of people do not know who I am" oners of war, leading to serious calls for the resignation of Secretary of Defence Donald Rumsfeld. However, in a time of war there is a tendency for all nations to rally around the flag and support their President, and it seems that President Bush is benefiting from that phenomenon. Bush has also been committed and unwavering in terms of the policies he has adopted, while Kerry has been criticized for 'flip-flopping' and changing his stance.

What is clear is that during the race for the Presidency in November, more than a billion dollars will be spent by both camps in the campaign to win the hearts and minds of the American voter, and the contest will be very close with an outcome hard to predict.

Similarly, it is certain that Texas and most of the South will go to Bush while Kerry will be strong in New York and California once again Florida will be highly contentious and the crucial battle will be for the Mid-West. Meanwhile, the rest of the world can only follow the contest, wait for the outcome, and hope for the best.•

Faces & Places MAY 9TH - EUROPE DAY

Concert at the Italian Cultural Centre

H.E. Mr. Ryuichi Tanabe, Ambassador of Japan to Serbia & Montenegro, performed the official opening ceremony of the new Japanese Garden in Belgrade's Jevremovac Botanical Gardens on 17th May. The Japanese Garden, the first of its kind in SCG, includes an exhibition of bonsai trees from the private collection of German Ambassador, H.E. Mr. Kurt Leonberger.

Cutting the tape to open the garden, Ambassador Tanabe said: "It is a great pleasure for me to open the garden to be enjoyed by citizens who have a feeling for the Japanese culture and Japanese spirit. With this donation we wish to promote relations between Japan and the rest of the world. Belgrade is the capital of Serbia & Montenegro and exactly the place where we have to show the beauty of the Japanese garden". In addition to Messrs Tanabe and Leonberger, the opening ceremony was attended by Sports and Education Minister Ljiljana Colic, and Mirko Cvijan, Dean of the Belgrade Faculty of Biology.

A modest celebration to mark Europe Day was held in Belgrade on 9th May. The event, organised by the SCG European Youth Parliament and the Italian Cultural Institute, involved the British Council, Goethe Institute, French Cultural Centre and the embassies of Great Britain and Italy.

The event's three-part programme included a short concert, an exhibition and the presentation of a "Euro Village".

Welcoming guests following the playing of the European Anthem, director of the Italian Cultural Institute, Rosino Risi, expressed his firm belief that the future of Europe lay in the hands of young people.

The gathering was then addressed by Ambassador of Great Britain, H.E. Mr. David Gowan, who spoke of the positive aspects of EU membership and insisted that Serbia & Montenegro's place was within the union.

Speaking on behalf of the European Youth Parliament, Nikola Ilic and Gorana Secibovic explained the role of the organisation in promoting the EU among young people. They also gave thanks to all institutes, embassies and individuals who had provided assistance and support to the project.

JAPANESE SPIRIT IN CENTRAL BELGRADE

H.E. Mr Ryuichi Tanabe at the opening ceremony

SCOUTS IN THE EMBASSY OF GREAT BRITAIN A delegation of British scouts was honoured with a party on 13th May, hosted by H.E Mr. David Gowan, Ambassador of Great Britain to SCG, at his Belgrade residence.

The twelve-member delegation is in Belgrade with the aim of forging relations with similar organisations in the state union, that will yield future joint activities and mutual exchanges.

A scout presents Ambassador Gowan with a traditional boy-scout scarf

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MILITARY DICTIONARY The British Ministry of Defence has donated 4,000 copies of a new English-Serbian, Serbian-English pocket military dictionary to the Serbia-Montenegro military establishment.

British Ambassador to the state union, H.E. Mr. David Gowan, presented the books to a representative of the SCG Military HQ at his Belgrade residence. The dictionary, which was compiled by British Military AttachĂŠ to Belgrade Colonel Witek Nowosielski with the help of translator Milica Naumovic, is primarily intended for use by members of the SCG Army who will be involved in international operations.

H.E. Mr. David Gowan with the author of the dictionary, Colonel Witek Nowosielski.

BELGRADE-PARIS-NEW YORK Belgrade's French Cultural Centre saw the opening of an exhibition of Dusan "Gera" Gerzic's works of paintings, drawings, and collages, entitled Belgrade-Paris-New York, on 26th April. Gerzic, who spent the last decade of his life painting and exhibiting in New York and Paris, has left behind a legacy of some 150 paintings and more than 500 drawings. As a result of his nomadic penchant, it proved impossible for all, or even the majority, of his works to be exhibited in one place during his lifetime.

The French Cultural Centre's exhibition encompasses the whole of Gerzic's career and boasts the majority of his works in an effort to provide an insight into the life works of this drifting Belgradian artist.

Gallery - goer enjoys Gerzic’s work

GRADUATES BECOME MASTERS On 7th May at the French Ambassadorial Residence in Belgrade, H.E Mr. Huges Pernet, Ambassador of France to Serbia & Montenegro, presented diplomas to the Belgrade Faculty of Organisational Sciences' graduates of Industrial Engineering Masters degrees.

The presentations were carried out in the presence of Nevenka Zarkic-Joksimovic, Dean of the Faculty, and JeanHubert Schmidt, representative of the Paris Central School's Research Department.

H.E. Huges Pernet with students

EXHIBITION

The Austrian Cultural Forum, in cooperation with the Austrian Embassy, Institute for Germanic Philology, and Austrian Library in Novi Sad, organised an exhibition in the Serbian National Theatre in Novi Sad on 12th May. His Excellency, Dr. Hannes Porias, Ambassador of Austria opened the exhibition, entitled "Ingeborg Bachmann - Write Against War".

Ingeborg Bachmann is one of the most famous Austrian writers and the aim of this exhibition is to present the work of this prominent writer to the broader Serbian public, and most of all her writings against war.

Professor Radmila Marinkovic-Netucin, Vice-Chancellor of the Novi Sad University, and His Excellency, Dr. Hannes Porias, Ambassador of Austria at the opening of the exhibition CorD | June 2004

49

Faces & Places SALVADOR DALI HONOURED The centennial of artist Salvador Dali's birth was marked on 11th May by the Spanish Cervantes Institute, who organised a lecture, entitled "Dali's Work: an 80th Anniversary of Surrealism", in the main auditorium of their Belgrade facility.

The lecture was given by respected art historian Nikola Siuca, who utilised video and audio material of Dali's works in an effort to uncover some of the baffling facts of one of the most mysterious individuals of the 20th century.

The educational event was the Cervantes Institute's contribution to festivities being staged worldwide this year in honour of the life of the great Spanish artist from the foothills of the Pyrenees.

CONSTITUTION DAY OF NORWAY H.E.Mr. Hans Ola Urstad , Royal Norwegian ambassador, hosted at a reception to celebrate the Constitution Day of Norway, which was held on 17thMay .

The reception held at the Ambassador’s Residence, was attended by a number of acreditted diplomats. Among the guests were Minister for foreign affairs Vuk Draťkovic, Minister of defence Prvoslav Davinic, President of Parliament Predrag Markovic, Deputy Prime Minister Miroljub Labus and many friends of the northern European monarchy.

H.E. Hans Ola Urstad welcoming Mr. Ivan Tasovac, Director of Belgrade Filharmony

THE DAYS OF CUBA IN BELGRADE A ceremony was held on 26th April to open an event entitled The Days of Cuban Culture at Belgrade Students' Cultural Centre.

Guests at the event were greeted by H.E. Dr. Juan Sanchez Monroe, Cuban Ambassador to Serbia & Montenegro.

The event is aimed at providing local citizens with the opportunity of enjoying music, film and literature from the attractive country "from the other side of the ocean".

QUEEN'S DAY On 30th April, H.E Barend Van Der Heijden, Ambassador of the Royal Netherlands Embassy to SCG, and his wife, hosted a reception to mark the Netherland's Queen's Day. Among the many guests were H.E. Michael Spinellis, Greek Ambassador, H.E. David Gowan, British Ambassador, SCG Foreign Minister Vuk Draskovic, many representatives of the SCG Government; as well as military figures, members of Government agencies, a large number of members of the Diplomatic Corps, many figures of Belgrade's cultural life, media and friends of the Embassy.

H.E. Barend Van Der Heijden welcoming guests with traditional drink - Oranje bitter

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B92'S BIRTHDAY B92, one of Serbia's leading contemporary media companies, began life by broadcasting a youth radio programme to central Belgrade from a single 15m2 room. However, by maintaining independence and objectivity, those humble beginnings soon spawned one of the most respected and trusted media houses in the Balkans.

When Slobodan Milosevic came to power and imposed an iron grip on the nation's media, B92 were one of the few to elude his control and openly criticise the regime's hate-mongering tactics. Thus they became the leading light of independent journalism, despite being subjected to four official bans during the guerrilla mediaindependence war that raged throughout Milosevic's reign. Fifteen years later,at May 16th, Mr. Veran Matic with Mr. Branko Cvejic at B92 pary B92 has celebrated its birthday by hosting a festive cocktail party at Belgrade's Yugoslav Drama Theatre, which was attended by several hundred representatives of Belgrade's political, sporting, cultural and diplomatic circles. Veran Matic, B92 founder and Editor-in-Chief, thanked associates, attendees and, particularly, those who had become victims of the fight for free journalism in Serbia.

Other guests in attendance included Zoran Sami, representing the State Union Assembly, Predrag Markovic, representing the Serbian Parliament, current and former ministers, representatives of the domestic and international NGO sectors, members of the diplomatic community and well-wishing journalists. B92's fifteenth anniversary was also marked by the official opening of the company's new purpose-built office building in New Belgrade.

CONCERT The French Ambassadorial residence has been treated to a concert of delightful music performed by world renowned French artiste Elizabeth Fontan-Binoche.

Fontan-Binoche, an honorary professor of the National Music Conservatory in Lion, Nice and Atibes, often joins international music festival juries and teaches master classes.

For the concert, which took place on 17th May, Fontan-Binoche chose to play the harp and perform works of Handel, Pierne, Alvars and Tournier.

Ms. Elizabeth Fontan-Binoche

NATIONAL DAY OF ISRAEL On 26th April, H.E. Yaffa Ben-Ari, Ambassador of Israel to SCG, held a reception to celebrate the National Day of Israel.

The reception, held at the Hotel Intercontinental, was attended by representatives of the Government of Serbia & Montenegro, a large number of members of the Diplomatic Corps, many figures of Belgrade's cultural life, media companies, friends of the Embassy and other respected guests.

H.E. Yaffa Ben-Ari, Ambassador of Israel and Mr. Bogoljub Karic at reception

A Winning Recipe Miograd Babic, General Director Hemofarm Corporation

Always Aiming

for H

I can see that my associates and I are in many ways better than the foreign companies we compare ourselves with. However, our future progress depends on the environment, and if it doesn't progress, neither can we. Our progress depends on winning new markets, as there is nothing left for us to achieve in this one.

Greater Heights

emofarm is one of Serbia's most successful local companies, managing to avoid being overtly affected by the country's decline in the 1990s. Last year alone, its shares soared by 248 %. Miodrag Babic, head of the company, has been with the organisation for the past 22 years. Currently, it exports its products to almost 30 countries throughout the world, has major plans in Russia, and a long-term ambition to win markets in the U.S., while the Serbian market accounts for 45 % of its output..

By Biljana Stepanovic, Photo Dragan Milosevic

Late in April, Hemofarm signed a $22 million loan deal with the European Bank for Reconstruction and Development to build a pharmaceutical complex in Russia. Could you explain the exact nature of this project?

Russia is our largest foreign market and the largest European importer of pharmaceutical products. Next year, Russia will complete the process of obtaining a licence for the latest GMP. These rules and regulations apply to modern medice production. We are glad that a European GMP will be introduced in Russia by the end of 2005, as very few producers will be able to meet these standards.

Hemofarm has more than a hundred solid associates in Russia and soon we will have 200. We are currently ranked us the 25th largest company in the Russian market and our goal is to break into the top ten.

We will be able to compete at the required technological level, but this level also determines the cost. Such factors will take us to a level above other producers who have made a name for themselves in Russia. We have chosen the right time to invest in a Russian plant and combine local production there with imports from SCG. This import takes place under privileged terms, as part of a free trade agreement between Russia and the former Federal Republic of Yugoslavia.

Isn't the free trade agreement, giving easier access to the Russian market, the reason why many foreign companies have come to Serbia, and why a number of others plan to do so in the near future?

Yes, and that's why our production plant is attractive to our western partners. Co-operating with us, in terms of production in SCG, enables them to place their products in Russia on favourable

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terms. This means we can have a combination of local production and delivery from here either with or without the co-operation of major western companies. We can also represent large western companies by selling their finished products. Hemofarm has more than a hundred solid associates in Russia and soon we will have 200. Our output currently ranks us as the 25th largest company in the Russian market and our goal is to break into the top ten. By the year 2008, it is our ambition to sell half of our output here and export the other half.

While most producers complain of declining exports, last year you recorded 47% growth. The competition say it's easy for Hemofarm to make progress, citing its ability to secure loans from virtually any creditor and on the most favourable terms. For example, in 2002 it received an $18 million loan from EBRD. Does success come easily?

Well, they will always tell you it's easy for others. However, it depends what you export too. It makes a difference whether you export medice, carved wood or agricultural products. Big countries subsidise their agriculture and some other industrial branches, making it really difficult to compete.

Winning markets can be difficult even with highly

We are the most prominent pharmaceutical company in Iraq, as we went there when no one else dared. We made an effort there when no one else would, and educated their doctors when no one else bothered to. Our doctors would travel a thousand kilometres from Amman to hold a seminar in Baghdad. sophisticated products, such as medice, as the task requires high-level organisation, preparation and superior knowledge to the local competition. They are always ahead, because they have specific lobbying methods. This method is more expensive but more demanding too.

We have accepted the challenge to form our own teams in various environments to work with the local population to create favourable working conditions. This enables us to know what we are dealing with - if not make ourselves at home. We have implemented this strategy very successfully in Russia, Germany and Romania, while we have a truly outstanding position in Iraq.

We are the most prominent pharmaceutical company in Iraq, as we went there when no one else dared. We made an effort there when no one else would and educated their doctors when no one else bothered to. Our doctors would travel a thousand kilometres from Amman to hold a seminar in Baghdad at our own expense. Every chemist in Iraq has our logo now. We have a problem in Iraq at the moment, as a new system still hasn't been established to replace the one that crumbled to pieces,

but we have made contact with the U.S. authorities there.

We are not interested in politics, we simply want to do business in Iraq and be a partner in the market. Exporting is not just about selling your own products; it is also about being subtly influential to help other Serbian exporters.

Interview

A Winning Recipe

Have you also opened a branch office in Washington?

Yes, we have. Our premises are just across from the White House. We are grateful for the warm welcome we were given and we are now working on obtaining a certificate for our production plants, so that we can start exporting to the United States.

Winning American markets would mean a lot for our image as a successful producer.

As far as the reception at home is concerned, all I can say is that no one opened any doors for us, or rolled out the red carpet under our feet. My associates and I opened all the doors, with our hard work and results. In regard to EBRD, it has a quota of loans it plans to invest in Serbia, and it is therefore looking for reliable partners. Hemofarm is one, and is sometimes able to negotiate with stronger arguments than the country itself. Hence, the IFC and some other banks have offered their services, as Hemofarm needs investment capital.

A Winning Recipe Deep down I am a sports competitor, I want to win and go all the way to the top. I am like Sergey Bubka, the famous Ukrainian pole vaulter. I am always aiming for greater heights, so I want every loan to be more favourable than the previous one. I strive against the risk factor this country has to put up with, which is why it is perhaps safer to invest in Hemofarm than it is in the state.

You said no one opened any doors for you. Yet, you have been the company's managing director for 22 of its 44-year history, and survived three different regimes. This suggests a certain political acumen.

No, it doesn't. I always had a choice though. Back in 1995, I had an offer no Serbian basketball player has ever had - to run a company of 110 people in Germany and live an easy life. I turned

with a turnover 15 times bigger. That's no way to entice your foreign partners to come here and do business. The privatisation model is generally good and in line with Serbian conditions. The privatisation process itself was conducted properly, but subsequent moves must be far more expedient. If we are made to pay fines whenever we do something wrong, why should it be any different for the inept authorities?

You were the founder and the first chairman of the Economist (Privrednik) business club, bringing together major Serbian companies and keeping a low profile in the process. Is this club an association of businessmen, a lobbying group or a committee for exerting pressure?

A bit of everything, which is why we keep a low profile. If pressure needs exerting on an issue then

I want every loan to be more favourable than the previous one. I strive against the risk factor this country has to put up with, which is why it is perhaps safer to invest in Hemofarm than it is in the state.

The Gouvernment must deal with vital economic issues it down, because I didn't want to let down my associates, as I was the one who had put them together. Walking out on them to live an easy life elsewhere would have been unfair. I had no second thoughts, but I always knew that my family and I had an alternative. That is why I never had to accept raw deals and unprincipled compromise. I walked taller than people might have expected and they just left me alone. That's my recipe.

You have bought 70 % of the Zorka Farma, beating a foreign competitor in the process. What is your experience with privatisation, bearing in mind the adverse opinions on the issue? Some people claim public companies are being sold for next to nothing, while others believe it is the only way for many companies to stay afloat.

Overall, we have had a good experience, with just a few problems, which might be expected, and we had to adjust ourselves to somewhat different rules. However, because there was a desire to avert bankruptcy and lay-off redundant workers, some burdensome things have happened to buyers. Broad social rights can often be a perfect shield for ineptitude, and obstruct new owners in coming up with new solutions quickly enough.

Believe it or not, we had to wait for a year for the Privatisation Agency to give us the go ahead to close down a small company Zorka Farma had in Skopje, and we already had a company there

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we can act as a group to do so. However, the general idea is to gather the business elite and set up a dialogue with those at the centre of power and decision-making. They should be responsible for their own decisions, but we depend on them, and they in turn need us. We don't want to act as The Chamber of Commerce, or a shadow government, we want to be practical. We have just come up with a list of problems and suggestions for the government and how they should be resolved, as this is the government's utmost economic priority.

Bearing in mind that the Minister of Economy has resigned, and even when in office Dragan Marsicanin's achievements had been very modest, who do you address these problems to?

Your remark is the best reflection of our economy. With all due respect to the government, as we are not opposed to it, one must wonder how the economy can work without a competent minister.

We had a problem with the last government too, as its economy minister spent more time dealing with privatisation than with vital economic issues. Failing to deal with either is an even bigger problem.

European Commissioner Chris Patten, described Serbia as a "sad story", because the country hasn't moved an inch closer to the European Union.

I am sorry to hear that, because I have realized that my associates and I are in many ways better than the foreign companies we compare ourselves with. However, our future progress depends on the environment, and if it doesn't progress, neither can we. Our progress depends on winning new markets, as there is nothing left for us to achieve in this one.•

CorD Club

was attended, amongst others, by Serbian Finance Minister Mladjan On 13th May, the SCG branch of Daimler- Dinkic, Evgeni Lukin - Economic Chrysler Motors opened a new 400 m2 Relations Attaché of the Russian th show-room in the Beogradjanka tower in Federation's Belgrade Embassy - representa- Hyatt Regency Hotel on 13 May by Executive Board President Patrick Skyba, downtown Belgrade, which is to be used to tives of SPK Privrednik and many prominent Sales Director Djordje Gajin and executive display new Chrysler and Jeep vehicles. political and business figures. board member Ljubica Vujacic.

The new show-room will provide the Wiener Städtische Insurance Belgrade F R E S H & C O .

I N T E N S I F I E S public with their first opportunity to see the A.D. is the thirteenth subsidiary child of the CARE FOR ITS CUSTOMERS Chrysler 300C and Chrysler PT Cruiser Wiener Städtische Group and, during its Cabrio, alongside the previously seen first year of operating, it managed to match Chrysler Crossfire model.

After receiving reward the operations of existing insurance compaBelgrade Mayor Radmila Hrustanovic certificates for Quality of nies on the Serbian market, but also stood and Michael Walter Zdonek - Daimler- Production (ISO 9001out from the crowd by offering individual Chrysler Regional Director for Central 2000) and Protection of legal and physical solutions for all kinds of Europe and North Africa - both spoke at the the Natural Environment insurance matters, except health and pengrand opening, alongside Hartmut Maier, (ISO 14001) Fresh & Co. Daimler-Chrysler General Director for SCG. have been the recipient of one more inter- sion benefits.

Over the course of 2003, a total of 2,918 At the close of the ceremony, Dragoljub national certificate, testifying further to the Petrovic, director of the Daimler-Chrysler global standards of this Vojvodina company. non-life insurance and 2,534 life insurance The latest certificate, awarded this policies were issued on the local market, April, pertains to the modern preventative generating an annual income of almost 130 concept HACCP, which ensures absolute million Dinars. Between January and April hygiene, prevention of toxins and other of 2004, already 3,366 non-life insurance safety for all agricultural food products used and 1,880 life insurance policies have in all phases of production. In essence, the helped generate an income of around 160 HACCP concept recognises the constant million Dinars. During its first eight months effort and explicitly planned prevention of in Serbia & Montenegro, Wiener Städtische poisoning and the identification and elimi- Insurance Belgrade A.D. established no less nation of all potentially hazardous elements than 10 affiliate offices nationwide. It is of the entire production process that could now planning to customise new insurance SCG Chrysler/Jeep group, presented atten- prove damaging to human health or endan- policies that will ensure the provision of dants with all models available to buy. They ger the safety of consumers. This concept perfect individual solutions, which cater to included the Chrysler Neon, Chrsyler provides considerable assistance to compa- the needs of the clients.

Sebring, Chrysler PT Cruiser, Chrysler nies in the production of safe food and IMAGINE YOUR WORKPLACE Crossfire, Chrysler Voyager, Jeep Wrangler, drink, whilst providing consumers with Jeep Cheroke and the Jeep Grand Cheroke. protection and peace of mind.

A project to construct the new Atrium Belgrade Offices commercial building was EBRD SUPPORTS VRSAC'S US STEEL - SERBIA OPENS ECONOMIC unveiled on 13th May in the main hall of the PHARMACEUTICAL GIANT DEVELOPMENT CENTRE Student's Cultural Centre in Belgrade. The On 29th April, Miodrag Babic, president US Steel - Serbia d.o.o. opened a new Atrium Belgrade Offices is to be a modern, of Vrsac-based Pharmaceutical Company Economic Development Centre in Belgrade first class, business building constructed in Hemofarm, and Oliver deChamp, director on 30th April, which is aimed at promoting accordance with the highest European conof the European Bank for Reconstruction direct foreign investment and stimulating cepts of business functionality, architecture and Development's (EBRD) Business economic growth in Serbia. The company is and aesthetics. It will be located in Block 31 Group, jointly signed a loan agreement that planning to invest $1.5 million for develop- in the heart of central New Belgrade.

The project is being funded by Viennese is set to boost Hemofarm's presence on the ment of economic activities in Serbia, investors Klaus Durst and Wolfgang Vasko, Russian market. Following confirmation of which is a requisite of the purchase agreethe €22 million agreement with EBRD, Mr. ment signed when US Steel bought the forBabic said that Hemofarm's investment in mer Sartid steelworks in September 2003.

Russia, worth €24.8 million, would ensure US Steel - Serbia representative Thomas Hemofarm becomes one of the ten largest Kelly said: "We want foreign companies to suppliers to Russian healthcare. invest in Serbia. We see great potential for After two decades of operating in Russia, investors in this area; this fast development Hemofarm is currently 25th on the list of the corridor of Central and East Europe." Kelly biggest foreign suppliers to Russia's health- added that U.S. Steel - Serbia was particularly care system and, according to expert estima- interested in attracting companies that would tions, Hemofarm's annual sales revenue is use its products and thus increase consumpset to more than quadruple from €23 million tion of steel on the local market. Kelly con- who have made a total investment of €11 to €100 million. In December 2002, cluded: "It is important for Serbia that one million. Durst d.o.o Real Estate Hemofarm purchased 10 hectares of land for well known American company, as U.S. Steel Development, representatives of the Austrian investors, will assume responsibilconstruction in Obninsk, 85 kilometres is, does business successfully here." ity for realisation of the project, which is to south east of Moscow. Design specifications be headed by internationally acclaimed SAFEGUARDING FUTURES for the new factory were completed during Viennese architect Martin Kohlbauer.

F O R 1 8 0 Y E A R S 2003 and, with financial requirements now The Atrium Belgrade Offices project, secured, construction of the plant commenced at the end of May. The annual business report of Wiener which is scheduled to be completed by The ceremony to mark the latest agree- Städtische Insurance Belgrade A.D. was pre- February 2005, is being promoted by ment between Hemofarm and the EBRD sented at a press conference in Belgrade's Belgrade firm Atrium Consulting.• NEW SHOW-ROOM

Insurance Legislation

What is New in the on Law Insurance?

Insurance

By Lela Sakovic

W

hen the new Law on Insurance comes into effect it is expected to introduce order into the Serbian insurance market. It is hoped this will lead to more confidence in insurance companies among segments of the population that lost faith in the system following the inflation that decimated their savings. Currently, the share of life insurance in the entire national insurance portfolio is only 1.2% compared to 60%, or more, in developed countries, an indication that, although the dinar is now a stable currency, many people cannot afford non-mandatory insurance packages.

The new law will not allow insurance companies to include both life and non-life insurance in

CorD | June 2004

icyholders and leave people awaiting premium payments empty handed. It is also thought that if only a few insurance companies remain on the market, premiums could increase several-fold, and even reach European levels. Although claimants opposing the law argue that the new legislation is aimed at clearing the way for foreign companies, the reformists say that a higher census will provide an

Companies that want to provide double insurance will have more favourable conditions, since they will not be limited to keeping their assets in the country.

their offer, and they will, on average, also have to raise their census by 123%. The census for life insurance companies has been set at 2 million euros, for voluntary old-age insurance 3.5 million euros, for hazard and health insurance 1 million euros, and for car insurance 2.5 million euros.

According to claims by the Ministry of Finance, the higher census will provide more security to insurance policyholders, and will also guarantee insurance payments. However, many argue, that these measures will reduce the number of players in the insurance market, since companies that fail to reach the census will either close shop or enter into merger agreements.

Experts say that six or seven insurance companies can cover the Serbian market, in contrast to the 36 companies currently operating here - most dealing with car insurance, and many not paying insurance premiums in a timely manner. In 2002 alone, there were 40,000 legal trials against insurance companies failing to fulfil their obligations towards clients, and to date only 58% of these have resulted in settlements.

In addition, the closure of these smaller companies could, in the view of insurance law experts, annul their contracts with pol-

56

The Central Bank of Serbia will supervise the activities of insurance companies, a higher census will reduce their number, and Serbia will open its doors to insurance companies with 100% foreign ownership.

Jelena Kocovic

environment in which successful companies with clean records can survive.

Central Supervision Failure to pay insurance premiums, unfair competition between insurance companies, and the monopolistic position held by the two largest insurance enterprises in Serbia are the result of inadequate supervision in this domain. The current law on Insurance for People and Property, from 1996 ,assigned this responsibility to the Ministry of Finance, but in practice, regulations related to

The new law will introduce changes that have ignited heated public debate. Several drafts of the law had proposed that supervision would be assigned to an independent regulatory body.

However, a decision was made at the last moment to assign this responsibility to the National Bank of Serbia and not, as anticipated, to the Supervisory Agency. monitoring activities were not strictly adhered to.

The new law will introduce changes that have ignited heated public debate. Several drafts of the law had proposed that supervision would be assigned to an independent regulatory body.

Insurance

Insurance Legislation However, a decision was made at the last moment to assign this responsibility to the National Bank of Serbia and not, as anticipated, to the Supervisory Agency. Domestic experts have opposed this decision, arguing that the regulatory body must be independent, and, as such, not affected by political change.

"Political shifts here usually include changes in personnel. The National Bank Governor and The Council get replaced, so the supervisory body of the National Bank can hardly be immune to this kind of influence", said Jelena Kocovic, a professor at the Faculty of Economies in Belgrade and President of the Society of Actuaries. She added that this solution has been implemented in just a few countries where insurance is at such a low level that they are not even included in global statistical records.

The Serbian Minister of Finance endorses this solution, saying the decision to opt for the National Bank was taken because of its experience supervising the banking sector. Also in its favour was the quality its existing personnel; the ability for rapid enforcement of the law; and the fact that a number of banks already provide insurance.

"This solution is the first step in establishing integrated supervision of the entire financial sector, a trend that is present in both developed and developing countries", Olivera Labus, expert advisor for insurance at the Serbian Ministry of Finance, told CorD magazine.

"The measures will strengthen links between supervisory proce-

Insurance Legislation "The new insurance law has removed all barriers that could hinder foreign insurance companies from conducting business", Oliver Labus said.

"Companies from abroad can open shop with 100% ownership and with the obligation to have at least two founders. Since the companies are established under the Serbian Law on Insurance, they will conduct business in line with domestic laws."

Another significant change is that insurance companies, with the consent of the supervisory body, can transfer up to 20% of their capital stock abroad.

Under current regulations, the financial assets of domestic and foreign shareholders have to remain in domestic bank accounts. Both developed and developing countries have clauses in their insurance laws that have changed this rule. In Serbia, it will be put into effect on 1st January 2007.

Insurance companies that want to provide additional security for their assets will find the condi-

The new insurance law has removed all barriers that could hinder foreign insurance companies from conducting business. Companies from abroad can open shop with 100% ownership and with the obligation to have at least two founders.

Insurance

Olivera Labus

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dures for the banking and insurance systems, allow for harmonisation of policies, create standards for supervision and provide a higher level of transparency", she said.

However, some experts argue that integrated supervision is still way ahead of us, since it is implemented in integrated and powerful financial markets where banks are indeed supervised by one legal entity, but have separate agencies assigned to monitor each sector.

Foreign Investment Opportunities Aside from introducing order to the national insurance market, the new law should enable foreign investors to conduct business unhindered.

The current law stipulates that foreigners can only sell insurance in Serbia in co-operation with a national legal entity, and they can own no more than 1% of the insurance company. Such limitations on ownership, it was explained, would oblige companies to respect domestic laws, and Wiener Stadtische Beograd a.d. and Grawe Beograd a.d. were founded in line with these regulations.

tions more favourable, since they will not be limited to keeping them all in the country.

All this will prompt foreign insurance firms to invest in the Serbian market and this could, in turn, attract other investors. As for foreign citizens living in Serbia, after foreign enterprises increase the competition, they will be free to insure themselves and their property with domestic insurance companies, but will have the advantage of a wider choice.

The new law will also regulate the privatisation of socially-owned domestic insurance companies.

After many debates on whether the privatisation of these companies should be regulated by the current Law on Privatisation, or if a separate law should be drafted for this purpose, the decision was made to "implement the common regime for privatisation in line with current regulations".

This item has roused some dissent, since it authorises the Ministry of Finance to initiate the process of privatisation in the insurance sector.

Some would claim that the aim is to sell off the two largest insurance companies, in order to 'patch' the budget in the short term. The Ministry of Finance explains that they want to strengthen their department and provide assistance to the Ministry of the Economy and Privatisation: a move which would prevent what happened with DDOR last year, when a series of recapitalisations were meant to squeeze through a change in the companies ownership structure and dodge the entire privatisation process.

In the most developed countries the insurance portfolio has a 15% share of GDP, and since the Serbian insurance market is fairly undeveloped and unorganised, the new law promises a firm hand and a good start, which is more than enough for now.•

Revision of Privatisation Process

D

ragan Marsicanin, who recently held the post of Serbian Economy Minister for a short period before resigning to declare himself as a candidate for the vacant post of Serbian President, caused a stir among those involved in the privatisation process with the announcement that around 80 privatisations are to be reviewed.

While the new owners worry for their investments, managers of some syndicated branch offices and workers of those companies displeased with their new owners are not attempting to hide their delight at the prospect of privatisations being cancelled. However, the majority of economists are shaking their heads and voicing fears that such action could be more detrimental than beneficial; particularly if potential investors view this as a sign that future investments could be imperilled by similar moves in the coming period.

Sales could be Privatisation

reversed

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By Milan Culibrk

The Serbian Ministry of the Economy and Privatisation has sent shockwaves through the business community by announcing that it is to review the privatisations of some 80 enterprises, including those of purchases made by Farmako, from Iceland, and Greek firm Hellenic Sugar.

According to Marsicanin, deputy leader of PM Vojislav Kostunica's Democratic Party of Serbia, the revision will not apply to the whole of the privatisation process, only those cases in which there is suspicion that the state has suffered losses or the law has been breached. Marsicanin explained that, should irregularities, illegal actions or instances of corruption be proven during the revision, the state could file criminal charges against the responsible individuals, cancel specific contracts or even revoke the privatisations in question.

He also announced that a decision had already been made to review the first ten of 80 questionable privatisations, including those of Zrenjanin-

Privatisation Agency director Branko Pavlovic admitted that he would never recommend that any government cancel international contracts because of the huge risk that other potential investors - and there are not too many willing to invest in Serbia - would determine that the 'law of the jungle rules here' and thus turn their back on the country. tion Board in early May, that either new or existing institutions should be tasked with controlling the work of auditors in light of numerous complaints regarding the capital evaluation of privatised enterprises.

Milko Stimac, president of the Privatisation Board, explained that the complaints followed suspicions that certain consulting and auditing companies purposely overestimated capital in some cases, in order to reject unwanted potential buyers, while underestimating assets in other instances, in

Branko Pavlovic order to sell socially-owned enterprises to previously selected partners at cut-rate prices.

Stimac insisted the initiative "is not and does not have to be a negative signal to future investors, but rather proof that the new authorities will not stand for irregularities, illegalities and corruption".

"Why would the revision of a mere 80 of 1,200 privatised companies rouse the suspicion of foreign and local investors?" He pondered. "They should be interested in completing the process in a legal and legitimate way; particularly as the privatisations of large-scale public enterprises are to follow."

Responding to the move, former economy and privatisation minister Aleksandar Vlahovic said that this "foolish" move is an attempt to garner support for Marsicanin's presidential candidacy from disgruntled workers of privatised firms.

Vlahovic said the move is "foolish, because the action was initiated even before it had been checked whether or not the complaints lodged against specific privatisations were justified." He continued: "I am not afraid of privatisation check-ups of any company, as everything was done in accordance with the law. The most competent international financial institutions, which have given the highest marks to the privatisation process in Serbia in the previous three years, have already commented on this".

Privatisation

based Jugoremedija, Leskovac-based Zdravlje, Belgrade companies Putnik and Hempro, Delises from Vladicin Han, Nis-based Nisa and four sugar refineries - of which three (from Kovacica, Pecinac and Bac) were bought on tender by Miodrag Kostic's Novi Sad-based MK Komerc and the fourth, from Crvenka, was purchased by Greek company Hellenic Sugar.

Branko Pavlovic, newly appointed director of the Privatisation Agency, emphasised that the procedure for cancellations of privatisations would soon be meticulously defined and would ensure that the state body would no longer deal with any auditing company found to be involved in illegal privatisations. However, Pavlovic admitted that he would never recommend that any government cancel international contracts because of the huge risk that other potential investors - and there are not too many willing to invest in Serbia - would determine that the 'law of the jungle rules here' and thus turn their back on the country.

According to Pavlovic: "With local clients such risks do not exist, although we should be extremely careful with them too. The basic criteria will be whether a client's actions prove that they are ready to maintain the purchased company and fulfil obligations. If our control mechanisms determine that they are doing everything possible to make things right, we will naturally oblige them and postpone some deadlines. However, if we conclude that the client is not taking the slightest interest in the company and that their intentions are of a speculative nature we will revoke the contract."

Judging by Pavlovic's statements, the revision will mainly focus on proceedings prior to the privatisation in order to establish whether or not financial advisors properly performed their job.

The incentive for the move came from a suggestion, made by the Serbian Parliament's Privatisa-

CorD | June 2004

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Revision of Privatisation Process

Privatisation

Milko Stimac

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Dragan Matic, of the Nezavisnost Union, welcomed the revision initiative; although he warned that the whole privatisation process should not be branded as theft. According to Matic, it is imperative that clear rules be defined and adhered to, which would serve to reassure potential new investors.

Executive manager of the Privatisation Agency, Branka Radovic, insisted that by mid-May the contracts agreed with company purchasers would distinctly define specific business activities and that conditions leading to the cancellation of such contracts would be described in detail. She noted that fewer than ten per cent of privatisations in Serbia had been branded as "problematic", while comparable privatisation processes in other transitional countries have seen problematic privatisations in 25 to 30 per cent of cases. She added that the Privatisation Agency has already cancelled 60 contracts due to failures to meet obligations defined during the sales.

A number of economists are awaiting the review with unease. However, Miroslav Milojevic, Director of the Belgrade Institute of Economics and Finance, said he was convinced that nothing dramatic would come of the initiative, noting that no privatisation had been cancelled in Croatia even in the cases where corruption and irregularities had been proven by a similar review process.

Professor Danijel Cvjeticanin, of the Belgrade Faculty of Economics, told CorD that the entire review process should be of no concern to economists, but rather of interest to public prosecutors and jurisdictional bodies, who would be called upon to handle cancellations if violations of the law or failure to honour obligations were proven.

Cvjeticanin explained: "Economists should not be asked their opinion about the revision, just as they should not be asked for their opinion on driving through a red light. These are criminal offences, which should be handled by the police, prosecutors and the courts. A general revision of privatisation as a whole is completely out of the question, but strict adherence to the law is a must.

Unfortunately, this has not been the case so far and laws were rather arbitrarily interpreted."

Owners of the companies to come under scrutiny have also responded to the review, collectively dismissing accusations by claiming that breaches of the law and prescribed procedure did not occur.

Insisting that the privatisation of Jugoremedija was one of the "most transparent in Serbia", company general manager Aleksandar Radovanovic said that any cancellation of the process could result in international dispute because the Zrenjanin factory was bought by Macedonian firm Jaka 80, owned by "controversial" Nis businessman Jovica Stefanovic.

Radovanovic explained that Jugoremedija had been privatised in accordance with the law of the time, which called for the free distribution of shares. Jaka 80 purchased 41.93 per cent of the company's shares for â‚Ź15.5 million at the stock exchange. In March of last year Jaka 80 became the major shareholder by converting $4.7 million of Jugoremedija's active debt to shares. The association of minor shareholders has since petitioned

Milko Stimac, president of the Serbian Parliament's Privatisation Board, asked: "Why would the revision of a mere 80 of 1,200 privatised companies rouse the suspicion of foreign and local investors?

They should be interested in completing the process in a legal and legitimate way; particularly as the privatisations of large-scale public enterprises are to follow." the High Commercial Court in Belgrade to appeal for a reduction in ownership share from 58 to 39 per cent. They made the move after the Zrenjanin Commercial Court rejected their original appeal.

Minor shareholders of Leskovac-based Zdravlje are also seeking the cancellation of the company's privatisation, arguing that the firm was "sold for peanuts" to Icelandic company Farmako, which paid â‚Ź3.5 million for 68.63 per cent of shares.

Zdravlje's minor shareholders, who have petitioned for the revision, argue that they were damaged because 15 per cent of shares were calculated

according to an audit of company capital that calculated their worth at 564 million Dinars. They claim the problem is that the assessment was made in 1999 when the total equated to €59 million, yet the privatisation was finalised at a point when the total had dropped to just €9.2 million.

According to Milan Todorovic, director of Zdravlje Leskovac, the new owner has fulfilled all obligations laid down by the contract. Thus, he assumes that the revision will mainly relate to tendering procedure. Moreover, Christian Sverison, a member of the company's management board, said that Farmako invested €200,000 more than it was obliged to last year, and that it planned to invest €6.9 million this year, which would help double the production capacities of the factory.

Another privatisation to come under scrutiny is that of Crvenka's sugar refinery. Dragan Popovic, deputy director of the plant, expressed his belief that the government review would only serve to confirm that the privatisation process was well conducted and that all contractual requirements had been respected. He explained that, in addition to the €3 million paid by Hellenic Sugar for the company capital, the Greek company has also pledged to invest €8 million, as well as €6 million to cover social programmes.

Other accusations include one launched by the workers of Putnik, who are accusing American company Uniworld owner Srba Ilic of breaking commitments outlined in the sales contract. The

"Economists should not be asked their opinion about the revision, just as they should not be asked for their opinion on driving through a red light. These are criminal offences which should be handled by the police, prosecutors and the courts." workers' collective claim that Ilic resold more than five per cent of the company's assets and is encumbering the company by mortgaging it.

Darko Djukovic, a former Putnik director, claims that Ilic did not invest the promised €4.4 million in the first year. Ilic paid $52 million for Putnik and pledged to invest a further $44.3 million in the next five years.

The announced review has generated a great deal of public interest in Serbia and amongst potential investors, and all are waiting on tenterhooks to see what the initial findings of this "super-control" will bring.•

Privatisation

Revision of Privatisation Process

H.E. Dr. Juan Sanchez Monroe, Cuban Ambassador to Serbia & Montenegro

His Excellency Juan Sanchez Monroe is Cuban Ambassador Extraordinary and Plenipotentiary to Serbia & Montenegro. A proud and well-educated Cuban, Ambassador Sanchez Monroe can now consider himself an honorary Belgradian, having taught himself to speak Serbian and read and write the Cyrillic alphabet since arriving in Belgrade in November 2001. CorD travelled to Belgrade's opulent Dedinje district to interview the ambassador in the pleasant surroundings of his official residence.

Unity saves Cuba Interview

By Ana Vuckovic, Photo Andy Dall

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A

mbassador Sanchez Monroe, born 1946, boasts a History PhD and is a specialist of International Relations. After embarking upon a career with the Cuban Ministry of Foreign Affairs in 1965, the ambassador's diplomatic vocation has seen him hold posts in Moscow and Prague, and serve ambassadorial mandates in Warsaw, Bratislava and Ulan Bator. Prior to his arrival in Belgrade, Dr. Sanchez Monroe held the position of Deputy Head of the Cuban Association of the United Nations.

What were your impressions of Belgrade when you first arrived here?

"My timing was not very good. For a month or two there wasn't a ray of sunshine. Horrible weather! For a Caribbean, life without the Sun is not a good life. Come to think of it, the thing I like least

about your country is the weather. You deserve a better climate (laughs)."

The political climate was not too pleasant either?

"Yes. The Red Berets were out in protest.

Fortunately, the situation calmed down and I soon discovered that you are a magnificent people."

Are our peoples alike?

"We also eat beans, polenta, roasted pork‌ That makes us almost identical (laughter). Besides, our temperaments are alike, very much alike. The size of our population is similar to yours and the area of our country as well."

We are also alike in regard to certain measures taken against our countries by Washington.

And the US Government has recently announced new measures aimed at imposing a stricter policy against Cuba.

"That is correct. They have announced cruel economic and political measures against our country

Interview

H.E. Dr. Juan Sanchez Monroe: We have a lot of understanding for your problems and Cuban citizens residing in the US. Cuba has not provided any motivation for this kind of pressure.

What is the reason for the decision by the US administration? I must emphasise this is not an incentive by the American people, but their administration.

They have no right to impose solutions to Cuban

The basic goals are to continue honing tactical approaches, techniques, methods and principles for confrontation, and to continue expanding the revolutionary, patriotic and socialist conscience of our invincible people. problems. These problems have to be resolved by Cubans, just as your problems should be dealt with by your people. It is a gross violation of international law, especially the UN Charter that states that the sovereignty of a state has to be respected by everyone."

Cuba has been "at war" with the US for the last 45 years.

"The problem with immigration is that 95% of the immigrants leave Cuba, due to economic and not political reasons. Just like elsewhere in the world.

The US has a law that stimulates Cubans to emigrate to their country. As soon as a Cuban gets there, he or she is granted residence status and the right to seek employment. The law was created in 1967 and reinforced with additional provisions in 1992, after the disappearance of socialist states in Europe."

You claim that the US has tightened economic measures against Cuba on the one hand, and made it more difficult for American citizens of Cuban origin to travel back to Cuba on the other?

"We are talking about a direct act of aggression against Cuban families. There was much talk about Cubans in exile being permitted to enter Cuba several times a year. Our laws permit them to enter Cuba as many times as they like, but limitations have been set by the American Government. The latest ruling permits expatriated Cubans to travel to their native country only once every three years. They have also put limitations on the amount of financial assistance people can send to their families in Cuba."

You said that limitations were imposed on other American citizens as well.

"In spite of these limitations, over 80,000 Americans visited Cuba last year. They checked many people in Mexico, Canada, Jamaica‌ as if they didn't have Cuban rum, cigars and medicine over there as well. People who were detected had to pay fifty to sixty thousand US dollars and hand over their passports.

They have now imposed similar limitations on American citizens of Cuban origin.

"These people can see members of their immediate family mothers, fathers, brothers, sisters and children - only once in three years. And it ends there. An uncle is not considered family. The US Administration is therefore antagonistic not only towards the Cuban state, but towards Cuban families as well.

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Interview Their latest measures have gone far in violating human and family rights and breaching provisions of international law."

Do any other ongoing events underpin your statements?

"Yes, of course. You are well aware of their position in Iraq and they are keen to refocus public attention elsewhere. In the midst of the campaign for presidential elections, they want to find another motive for people to focus on something else. Have you seen the recent protests in Havana? More than a million people were on the streets and President Castro held a formidable

We have endured the last 45 years and I believe that we can persist three times longer. You see, we have learnt how to survive without them. It isn't easy, but it can be done. The worst thing is when you have to live in submission. speech. It was the largest gathering of the Cuban people to date. Our unity is more powerful than ever. We have endured the last 45 years and I believe that we can persist three times longer.

You see, we have learnt how to survive without them. It isn't easy, but it can be done. The worst thing is when you have to live in submission.

There is nothing harder than that."

What will be the Cuban answer to the latest measures coming from Washington? You mentioned something in an official reaction to these decisions.

"The Revolution, enforced by experience, unity and a high level of popular political culture, will promptly reply with measures that will ban sales of goods in foreign currency, excluding food and hygiene products; although there will be no adjustment in the prices of standardised and subsidised products that are available to all citizens. Health care programmes will continue to develop at their current pace; educational programmes will not be modified or halted and the practise of distributing meals to schoolchildren will continue to grow. The programme to universalise higher education in all of Cuba will also continue."

The official note says: "The brutal measures imposed by the Government of the United States will, unfortunately, increase retail prices in shops that sell products in foreign exchangeable currencies, in centres selling fuel; although they won't compensate for the current high prices of food products and their export to the world market, or the almost unaffordable price of oil."

"Whatever the case, the country will mobilise additional assets and do whatever is needed to confront the aggression with the minimal negative impact on the nation."

That sounds very serious.

"At present, the political sphere has gained crucial importance. The basic goals are to continue honing tactical approaches, techniques, methods and principles for confrontation, and to

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continue expanding the revolutionary, patriotic and socialist conscience of our invincible people.

We face days of hard work and sacrifice, but also of glory and victory for our valiant country."

What do you think about the situation here?

You claim that we have more problems than Cubans do.

"Yes. However, I do not belong to the category of people who will tell you what you must, and must not, do. I can just assume that the situation is not a simple one after the experience of a bombing campaign. We have a lot of understanding for your problems. You need time, naturally. Presidential elections are right ahead. They should be followed by parliamentary and municipal elections."

What about the political affairs and scandals?

"Affairs? You have them everywhere and the scandals over here do not have the weight of those in Iraq. Moreover, the future of SCG and its impact on world politics and the economy is not hinged on scandals. It's important that you are determined to solve your problems."•

Face-to-face

Face-to-face

T

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oday, Borislav Stankovic is honorary president of the SCG Basketball Association, Secretary General of FIBA and a member of the IOC. He is accredited with developing "modern basketball", and known as an intelligent person with the know how to put together a host of minds and ideas for the benefit of basketball.

CorD spoke to Mr. Stankovic about his special and rare skills of diplomacy, patience, understanding and intelligence.

The highly respected sporting diplomat explained: "We created the basketball organisation with the same number of members as the United Nations, which meant we had to overcome the same sorts of problems, at least in terms of managing such a large organisation. It was difficult, demanding and performed under the weight of huge responsibilities.

"What ensured our success was the fact that all members of FIBA´s executive committee, head office and staff were either former basketball players or great fans of the game. We constantly had the game at the forefront of our personal and professional agendas and the single overriding aim was to create greater benefits for the game and the organisation. Moreover, all crucial decisions were made unanimously."

The overall global situation, politically and otherwise, is much more complicated today and will cause more difficulties in the future. Stankovic's generation of sports officials is beginning to leave the major scene, and it will take time for the next generation to establish new relationships and the kinds of friendships crucial to sporting diplomacy on the world stage.

Stankovic explained: "Generally, people have less and less time for one another. There is less time for socialising and less patience. So, the future will require more formal diplomacy in order for every member to sit down together and make honest decisions of mutual interest."

The Olympics in Athens will be staged in a very difficult environment. Some of the arenas and venues will not be completed on time; there will be organisational difficulties, problems with traffic and threats of terrorism.

Recounting some of FIBA's most crucial decisions, Mr. Stankovic noted the decision to lift the distinction between professional and amateur players, which allowed professional NBA stars to compete at the 1992 Barcelona Olympics; the annulling of borders between American, European and other basketball associations, greatly increasing the global appeal of the sport and generated much more income from sponsors and television rights. Also a mojor efort was made to voice the ambitions of all nation members, which involved a great deal of negotiation and called for the nation-

Borislav Stankovic, IOC member

Skills of

By Zoran Popovic, Photo Dragan Milosevic

al associations of Spain, Italy, Brazil, the former USSR and others to play a major role.

Stankovic said that there had been a lot of behind-the-scenes negotiating, but that great personalities, such as English representative Jones, Frenchman Bisnell, Spaniard Saporta and many others, had helped to ensure it was possible to put all national ambitions under the banner of FIBA. Mr. Stankovic does not hide the fact that he had a lot of advantages as a Yugoslav: "Being Yugoslav at that time meant being independent. Yugoslavia did not belong to either the Western or Eastern political bloc and so people believed me and my integrity."

Mr. Stankovic is fluent in five languages, although many would swear he speaks ten more.

Nevertheless, those who know him agree that he knows how to smile in all the world's languages.

"It is crucial to establish a workable atmosphere and define and approach each problem from

Sporting Diplomacy How does one cope with over 206 individuals, each from a different country and each with their own aims, wishes and ideas; and how is it then possible to condense all of these contrasting views and interests into the few words needed for the assembly conclusion? The event in question was the 1995 congress of the basketball governing world body, FIBA, in Toronto, Canada.

Borislav Stankovic, as Secretary General of FIBA and a member of the International Olympic Committee (IOC), was chairman of the FIBA congress held for the first time with over 200 members.

there will be organisational difficulties, problems with traffic and threats of terrorism.

"On a positive note, all previous sporting events staged in Athens have been ‘very warm’ - not only because of the baking temperatures, but because of the great hospitality of the Greeks and the atmosphere that only they can create. The Olympics will be much the same and will also bring great tradition and history to the modern games.

Mr. Stankovic has organised several basketball championships in Athens over the past decade and, as such, he is extremely familiar with Greek organisational skills: "They are very much like us. They were confirmed as hosts for these Olympics seven years ago. For the first three years they argued about political and other internal matters and did nothing! Now, at the eleventh hour, they have begun working day and night.

Club domination is terrible for sport

the right angle," he said. "We had huge challenges.

For example, instead of confronting professionalism and amateurism, we decided to make the individual player our main concern. Thus, whatever is beneficial to the players is of benefit to the sport.

This was an extremely important decision that is

What ensured our success was the fact that all members of FIBA´s executive committee, head office and staff were either former basketball players or great fans of the game. still employed by FIBA, and more and more sports associations are beginning to follow in our footsteps."

As a member of the IOC, Mr. Stankovic is very much concerned about the upcoming Olympic Games in Athens: "The Olympics in Athens will be staged in a very difficult environment. Some of the arenas and venues will not be completed on time; CorD | June 2004

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Face-to-face

A bleak future for our international voice I sincerely hope that everything will be in place, but the Games will go ahead regardless."

Addressing his concerns about the Serbia & Montenegro domestic basketball scene, Mr. Stankovic said with candour: "The group of top clubs are dictating the main policies of the SCG Basketball Association. They only recognise their own authority and interests, which is terrible for basketball.

"It is essential that one respects the natural, logical order: national competition is the most important, and regional competition should be the result of national competition, or be played in unison with the national competition. Then, at the end, the outcome of national competition should result in the best teams competing in inter-continental leagues and competitions.

I understand that regional

Diamond Cup The Diamond Cup, to be staged in Belgrade this summer, is a very attractive competition. Although it is not strictly under FIBA control, FIBA will guarantee proper conditions for the event and ensure that everything is done in accordance with its regulations.

However, both the upcoming Diamond Cup and the NBA All Stars team game with the SCG national team - also to be staged in Belgrade just before the Athens Olympics - will attract huge worldwide interest. This is a great self-promotion opportunity for Belgrade and SCG; with a chance to boost tourism for the City of Belgrade and promote hospitality.

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or European competition is bringing higher financial benefit to the clubs, but it is a short-term strategy that will cause major headaches for Serbian basketball in the long-term."

Noting that his career is reaching its twilight, Stankovic warned that the state union will lack a

The group of top clubs are dictating the main policies of the SCG Basketball Association. They only recognise their own authority and interests, which is terrible for basketball. voice on the international sporting scene: "I am the only representative of our country on the International Olympic Committee. My mandate expires next year and then we will no longer have a representative in this the most prestigious of sporting organisations.

"We failed to think about that earlier, despite all my warnings. One cannot get there overnight, because it is a nominated representative system and not simply a case of delegating someone. To be voted in by the committee requires a lot of diplomacy, lobbying and other time-consuming efforts that result in somebody being accepted by the committee. It's a real pity, because there are a lot of great athletes and officials over here who have had great careers, and would be capable of accepting such a position and doing it justice."•

Advertorial

Prof. Dr Milija Zecevic, founder and rector of the European University in Belgrade

for Educating future business

Education

Around twenty years ago, South-East Europe's first institute for international management studies was established in Belgrade. That was the first time educational projects in the fields of international management, marketing and business were conducted in the former Yugoslavia. Soon afterwards, the institute signed the first contract with New York's Manhattan Institute for Management and began an era of cooperation that continues to this day with the European Institute - the successor to the former Belgrade Institute.

The entire notion of this concept was the brainchild of Milija Zecevic, who founded the institute, before buying it in 1993 and further developing the school into the first faculty for international management skills in Serbia.

CorD spoke exclusively to Professor Zecevic about the work of the institute and the skills it offers Belgrade's fledgling democratic business community.

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By Jelena Grujic, Photo Danka Ninkovic

T

he first programmes of the institute, at the time of its founding, were implemented in Belgrade following the signing of the agreement with the Manhattan Institute. They related mainly to specialist studies in the fields of financial and trade management, and catering. Over 500 students completed the programmes.

In 1988, Prof. Zecevic signed another international co-operation agreement, this time with the FrenchAmerican Institute (IFAM). This deal provided the opportunity for local students to study both in Belgrade and Paris, before receiving their qualification - a BBA Degree (Bachelor of Business Administration).

Over 1,000 students have obtained this degree.

Today, Belgrade's European University comprises four faculties: International Management, European Business and Marketing, French-American Management (IFAM studies) and American Business. In addition, the college boasts an annexed Faculty for the Management of Small and Medium-sized Enterprises.

Prof. Zecevic's tried and tested method has continued. For the past three years all studies have been initiated in Belgrade, with students having the option of transferring to New York or Paris to complete their studies and obtain the kind of versatile degrees and diplomas that have been popular in the West for quite

For the past three years, all studies have been initiated in Belgrade, with students having the option of transferring to New York or Paris to complete their studies and obtain the kind of versatile degrees and diplomas that have been popular in the West for quite some time. some time. Perhaps the most attractive qualifications on offer are the post-graduate Master's degrees and Doctorates, which cover a wide array of attractive and interesting subjects.

The programmes of the institute's various faculties combine the best techniques and practises of global management, specifically those of America, Japan and Europe. The courses attempt to define the

variations in management practice and utilise the benefits of the differing methods.

According to Zecevic - who obtained the title of Grand Doctor of Western Civilisation from the European Academy of Information - American management philosophy is dominant, the Japanese model is well developed and the European style is still evolving.

"The American strategic business philosophy is based on the development of multinational and transnational corporations," he said. "Its main characteristic is the reaching of targets within the shortest possible time by implementing programmes and selling

The European University's programmes are currently based on the models of American universities, with the programme of American business philosophy extremely well developed within the Faculty of International Management. However, the institute also offers courses in the Faculty of European Business and Marketing, which was established four years ago and favours Europe's business philosophy. products quickly. Good examples of this are the practises of Coca-Cola or information technologies, which are adherents to the notion of mass markets and mass production. Nowadays they are focused, in particular, on India and China, which wants consumer goods for their massive populations.

"Japanese strategies are different in that they focus on high-technology, high-price products. Japanese market research is extremely thorough and systematic, and only once this has been completed do they enter a market. This ensures less overall risk to business ventures with comprehensively informed management and information technology structures".

"In terms of decision-making methods, Japanese employ greater consultancy management, high market awareness and teamwork, while American methods are more authoritative, autocratic and often technocratic, with extremely aggressive marketing techniques and the determination to reach all goals regardless of risk or ramifications. Thus, it is said that the American philosophy is one of open, efficient and effective business."

According to Professor Zecevic, American business operators ignore national mindsets and do not examine cultural elements, whereas this is crucial to European structures. The end result is a universal method for American operators and a complete lack of a united approach for European multinationals.

He explained: "There are huge trans-national companies like Mercedes [Daimler-Chrysler], which transform completely as they cross the ocean and begin operating in an American way. It is also worth noting that a number of universities in Europe are in fact American universities.

"It could be said that the European method has been created by blending Italian charm and French culture with English intelligence and German preci-

sion - such is the amalgam that makes up a successful European manager. However, European management development is hampered by the sluggishness of the decision-making process. Yet, the further development of the European Union and the joining of the countries of "new Europe" will lead to the maturing of European companies, which can challenge the domination of American-style methods in Europe."

The European University's programmes are currently based on the models of American universities, with the programme of American business philosophy extremely well developed within the Faculty of International Management. However, the institute also offers courses in the Faculty of European Business and Marketing, which was established four years ago and favours Europe's business philosophy.

The university places the emphasis strongly on language, with English and French lessons comprising a greater part of the curriculum, and Italian and German courses also on offer. Professor Zecevic explained that language proficiency is a prerequisite to creating high quality managers who will be ready to "jump" into European or American companies soon after graduating. Moreover, a solid knowledge of culture and mentality will, naturally, provide a great advantage to students hoping to cut it in the business world.

The professor continued: "Our faculty offers BBA diplomas and MBA (Master of Business Administration) diplomas. All qualifica-

tions are recognised American diplomas, regardless of where graduates studied. This ensures that we have extremely attractive professional certificates to offer our students.

"Additionally, we provide a doctorate diploma in international diplomacy, which is realised in cooperation with the London Diplomatic Academy. Our studies have been tailor-made to suit global education levels, particularly with regard to doctorate diplomas."

The benefits of such compact, specialist universities are that the small number of students ensures effective studies of extremely interesting subjects and provide language proficiency to students. Zecevic describes the method as "the education of the cadres of the future".

The success of the university's programme is confirmed by the fact that virtually all large companies in Serbia choose graduates of the European University in Belgrade when employing future managers. Companies hiring graduates of professor Zecevic's courses have included HVB Bank, Delta Holding, Komercijalna Banka, Hemofarm, Raiffeisen Bank and many more.

The university has a student base of 500, with a further 200 studying abroad. The option of studying abroad is always open, but studies here are between five and ten times cheaper.

The success of the university is a beacon of hope that the commercial fortunes of Serbia's future will be assured thanks to the global equaliser of education.• CorD | June 2004

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Presidential race in Serbia

Thirteen line up An interesting mix of 13 would-be presidents have thrown their hats into the ring to compete for the vacant post of Serbian President. In addition to the favourites - Radical Party deputy leader Tomislav Nikolic, and Democratic rivals Dragan Marsicanin and Boris Tadic - candidates include a domestic media mogul, a former justice minister and a princess. As the election draws near, CorD gives you the low-down on the candidates.

Boris Tadic Democratic Party Born 1946, Sarajevo, Bosnia, Tadic is a professor of psychology and leader of the Democratic Party. Tadic began his career as a reporter for a Belgrade-based radio station, before being employed by the Laza Lazarevic psychiatric clinic and commencing his teaching career at a Belgrade senior school. Tadic first became involved in politics when he joined the opposition Democratic Party of the late Zoran Djindjic in 1994. During the rule of the DOS coalition, Tadic first served as State Union Minister of Transportation and Telecommu-nications before being appointed SCG Defence Minister following the assassination of PM Djindjic.•

Dragan Marsicanin Democratic Party of Serbia, G-17 Plus, Serbian Renewal Movement - New Serbia Coalition Born 1950, Belgrade, Marsicanin is an economist by profession. Following a lengthy career, during which he worked for a number of Belgrade-based companies, Marsicanin joined the Democratic Party in 1992 at the same time as current Prime Minister Vojislav Kostunica. The DSS deputy leader was appointed Speaker of the Serbian Parliament following the demise of Milosevic's regime; although he resigned from the post within a year after DOS representatives sought his dismissal. Marsicanin was again appointed Speaker of the Serbian Parliament after last year's general election, before resigning to take up the post of Economy Minister and then resigning again following the announcement of his presidential candidacy.•

Tomislav Nikolic Serbian Radical Party Born 1952, Kragujevac, central Serbia, Nikolic graduated from technical/vocational school before pursuing a career as chief executive of the local funeral parlour. The Radical candidate gained governmental experience as a deputy prime minister during the coalition government of Slobodan Milosevic's Socialist Party of Serbia and the Radical Party, between 1997 and 1999.

Following the departure of party leader Seselj to The Hague tribunal, Nikolic was left in charge of the party. He stood as a candidate at last year's unsuccessful presidential election and managed to gain more votes than the then DOS governmental candidate.•

Branislav Ivkovic

Bogoljub Karic

Socialist People's Party

Independent

Born 1952, Bijeljina, Bosnia & Herzegovina, Ivkovic is a professional construction engineer and leader of the Socialist People's Party. Ivkovic held the posts of Construction Minister and Science and Technology Minister during Milosevic's reign. He formed the Socialist People's Party with a breakaway faction of SPS, following Milosevic's extradition, and he champions the continuity of Milosevic's policies, despite being personally denounced by Milosevic.•

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Born 1954, Pec, Kosovo, Karic is the owner of the "BK (Brothers Karic) Group" and one of the wealthiest businessmen in Serbia. His group are owners of BK Television and telecommunications company MobTel, amongst others.

Karic first announced his intention to run for the post of Serbian president in 1997, although pressure from the SPS regime compelled him to withdraw his candidacy.•

Jelisaveta Karadjordjevic Initiative for a more beautiful Serbia Born 1936, Belgrade. Ms. Karadjordjevic is daughter of Grand Duke Pavle, Regent of the last King of Yugoslavia, Petar Karadjordjevic II. Early in the '90s, she was among the first members of her family to return to the country after fifty years of exile, which began with the fleeing of the Karadjordjevics in 1941 and the forbidding of their return by the communist regime in 1945.•

Vladan Batic Christian Democratic Party of Serbia Born 1949, Batic is a lawyer by profession and served as Minister of Justice during the DOS regime.

Batic formed the pro-independence Christian Democratic Party after leaving Vojislav Kostunica's DSS in 1997 because of a disagreement with party policy.•

Zoran Milinkovic Patriotic Party of Diaspora Zoran Milinkovic is the Patriotic Party of Diaspora's presidential candidate. He is both the founder and president of the party. He was born on 26.09.1956 in Kraljevo. At the beginning of the eighties he left for Paris where he has been living and working ever since. Milinkovic owns the joint French-Serbian company, Stema as well as several restaurants in Paris, Ibiza and Belgrade. He is married with two children.•

Marjan Risticevic Ivica Dacic Socialist Party of Serbia (SPS) Born 1966, Prizren, Kosovo, Dacic - a graduate of political science - joined Milosevic's SPS in 1991 and quickly progressed through the party ranks. Following Milosevic's extradition to The Hague Tribunal, Dacic became the face of the party and advocated the decreased influence of Milosevic over the party.•

Borisav Pelevic Party of Serbian Unity Born 1956, Orahovac, Kosovo, Pelevic is a lawyer by profession and leader of the party formed by notorious paramilitary leader Zeljko "Arkan" Raznatovic.

Pelevic gained the leadership of the party following the assassination of Raznatovic in 2000. His party lost all its parliamentary seats in last year's elections.•

Dragan Djordjevic Party of Serbian Citizens The list of presidential candidates also contains the name of Nis resident Dragan Djordjevic, who has been nominated by the Party of Serbian Citizens.•

The National Farmer's Party Risticevic was born in Novi Karlovci in 1958. He is a farmer by profession and his political career began in former minister of agriculture Dragan Veselinov's Vojvodina Coalition. He failed to make any significant success in coalition with the Party of Serbian Unity at last year's presidential elections when he ran for the first time.•

Ljiljana Arandjelovic United Serbia Born, 1963, Paracin, southern Serbia, Arandjelovic is a political scientist and director of the Cuprija local television station. United Serbia was formed just two months ago, following a split within the Party of Serbian Unity. Dragan "Palma" Markovic, owner of television stations Palma and Palma Plus, is heading the party.•

Milovan Drecun The Regeneration of Serbia He was born in Vranje in 1957 and graduated from the Faculty of Political Science at Belgrade University. He worked as editor for foreign policy in Vojska (Army) magazine and subsequently as a reporter for state television. He became known publicly for his war reports for state television, which was at that time under strict state control, during the Kosovo conflict in 1998.• CorD | June 2004

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The Goethe Institute

By Maja Vukadinovic, Photo Andy Dall

W

hen Volker Marwitz began hitchhiking his way around Yugoslavia in 1961 he could not have imagined that one day he would be calling Belgrade his home.

Back then he didn't know a lot about Serbian culture, but today - after two years heading up the Goethe Institute he admits that he has gained a great appreciation for Serbian music and culture; as well as an understanding of why colleagues told him before he came that the cultural atmosphere of Belgrade is extremely creatively inspiring.

In fact, that very recommendation was key to his decision to accept the post: "Partners of the Goethe Institute in Serbia & Montenegro include artists, representatives of cultural institutions, University and Ministry of Culture figures‌ They are extremely open-minded and active and I am

Creating very happy that we have such direct and mutually motivational cooperation. That spirit is unique," he said, before adding that colleagues who had been engaged in the country years ago had told him that, since 2000, the atmosphere in Serbia & Montenegro had grown more active and future-orientated than ever before, particularly in cultural areas.

"People are involved in cultural programmes with a new spirit. They are very interested in co-operating with other cultures and in establishing contacts beyond Europe in general," he said.

Belgrade's Goethe Institute was established more than thirty years ago and is one of 143 Goethe Institute branches in 78 countries. Here in the Balkans, the Federal Republic of Germany's cultural institutions began intensifying operations after the fall of the Berlin Wall and working hard to reestablish historical cultural links.

Marwitz noted that strong cultural ties between Serbia and Germany date back to the 19th century, whilst showing us a book entitled Serbs and Germans, which takes pride of place in his office. The book, compiled by a group of Serbian and German profes-

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The Goethe Institute promotes cultural exchange

Germany's Goethe Institute is one of the key cultural centres promoting artistic, cultural and creative links worldwide.

After thirty years in Belgrade, the Institute continues to operate with the kind of verve and proficiency that would bring appreciation and a sense of pride from Goethe himself.

sors from Jena University, shows the development of Serbo-German relations from the end of the 19th century to the present day. The coversheet of the book, which is in the process of being sold for publication, displays the images of Johann Wolfgang Goethe, widely recognised as the greatest writer of the German tradition, and Vuk Karadzic, the great reformer of the Serbian language.

Explaining the work the Institute undertakes with the aim of promoting cultural ties and the German language, Marwitz said: "The unique position of the Goethe Institute in international cultural exchanges comes from its role as mediator. Our mission is to connect both people and institutions from Serbia & Montenegro and Germany. We gather our information from the many sections of our cosmopolitan society and culture, combining the experience and ideas of our partners with our cross-cultural expertise. We work on the principle of dialogue and partnership, offering our support to all those actively involved with Germany and its language and culture.

"The Goethe Institute understands its job as promoter of the great classical tradition of Germany. It supports the cultural modern age and its inherent democratic and emancipatory potential. The basis of the work goes beyond missionary objectives."

Overcoming the barrier of language is always key to understanding culture. However, Belgrade's Goethe Institute does not directly organise German language courses because such a service was not

included in the cultural promotion agreement that was signed with the then Yugoslavia in 1968. Even so, the Institute does stage expert seminars for Serbia & Montenegro's German language teachers and assumes a role as mediator for students and professionals applying for scholarships and training seminars.

According to Marwitz, "young people are very interested in learning and improving their German language skills. And here, by accessing our library,

"Partners of the Goethe Institute in Serbia & Montenegro include artists, representatives of cultural institutions, University and Ministry of Culture figures‌ They are extremely open-minded and active and I am very happy that we have such direct and mutually motivational cooperation. That spirit is unique," they have the opportunity to practise by reading books, magazines and newspapers, or by watching video tapes or listening to CDs. The Institute director added that cooperation with other European cultural institutes operating in Belgrade is at the highest level. "Our curator is glad to announce a large project entitled Youth and

Culture

Cultural Ties

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Library access for all Europe, which is to be organised in cooperation with the French, Italian, British and, probably, Spanish (Servantes) cultural centres in Belgrade.

"The project has been conceived as a series of discussions regarding contemporary social topics, with guests from various European countries scheduled to attend. Another planned project is a television production for children, which will be made in the Serbian, German and Albanian languages and is to be broadcast on Children's TV in Belgrade. At the moment we have only produced a pilot episode, but the project is to be released in the autumn."

Once again, the Goethe Institute has assumed the role of mediator: "It is not easy to find financial resources for such big projects. The Goethe

With a focus on the future of trans-national culture, the Goethe Institute is, first and foremost, a European cultural Institute Institute has an annual budget of approximately â‚Ź278 million at its disposal. Much of this consists of annual grants from the German Foreign and Press Offices and our relationship with the Foreign Office is governed by general agreement."

According to Marwitz, the general integration of Europe ensures that culture is increasingly defined as trans-national. International cultural exchange means that, in the future, there will be less national representation and more of a general imparting of polyphonic, often multi-cultural scenes. With that in mind, the Institute director concluded that the Goethe Institute is, first and foremost, a European cultural institute.•

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CorD

In honour of good cooperation The formal reception marking CorD's special supplement dedicated to the Austrian economy in Serbia and Montenegro

S

enior Austrian officials in Belgrade emphasized that it was in the mutual interests of both counties to further strengthen the thriving business relations and continue the economic cooperation established between the two countries in the 19th century.

In honour of the special supplement dedicated to Austria and the Austrian economy in the last issue of our magazine, CorD organised a formal reception in the Que Pasa club in Belgrade. The Austrian Ambassador to Belgrade, H.E. Hannes Porias, the representative of the Austrian Chamber of Commerce, Dr. Herbert Preclik, several Ambassadors in Belgrade, businessmen, journalists and famous personalities all attended the reception.

H.E. Hannes Porias and Dr Herbert Preclik highlighted the existence of business cooperation between Austria and Serbia since 1853, when flour was first exported to Austria from Kikinda. The Austrian strategic interest remains one of cooperation with Serbia.

After welcoming speeches made by H.E. Hannes Porias, Dr Herbert Preclik and CorD Director Ana Novcic, guests went on to enjoy each other's company and exchange opinions in the pleasant atmosphere of the Que Pasa Club.•

H.E. Ambassador Hannes Porias

Dr Herbert Preclik

Guests enjoy the evening CorD’s Director Ana Novcic greets guests

Country manager of Austrian Airlines Anka Ilijic with Andreas Boumgartner of the Austrian Embassy

H.E. Donald P. McLennan, Canadian Ambassador, with his wife

H.E. Rodriguez y Quezada, Ambassador of Mexico, and Snezana Nikolic

Milka Forcan, from “Delta Holding”, and Predrag Vujovic

Bulletin US Ambassador, Michel Polt arrives in Belgrade Newly appointed H.E. Michael Polt United States Ambassador to Serbia and Montenegro said upon his arrival at Belgrade airport on Tuesday that his first priority would be to support the economic development of Serbia and Montenegro, and help the government's efforts to respect fully its international obligations, including bringing to justice those accused of crimes against humanity and other war crimes.

"I came to Belgrade to build new relations between our countries - relations for the future", Polt told journalists at Belgrade International Airport and voiced belief that "solid foundations of mutual respect and trust that exist today (between the US and SCG) have opened new horizons."

Polt reiterated that since the historical events in October 2000, his country has given strong support to SCG efforts

President Svetozar Marovic; Serbia and Montenegro Minister of Defence, Prvoslav Davinic; Serbian Parliament Speaker, Predrag Markovic and a delegation of the Army of Serbia and Montenegro placed wreaths at the

base of the Monument to the Unknown Hero in Belgrade. On the same day, representatives of the Russian Embassy, SUBNOR and local government officials laid flowers at the Memorial Charnel House, honouring those who fell in the fight against Fascism. The ceremony was also attended by the Honorary Guard of the Serbia and Montenegro Army.

Nedialkov: Danube navigable next spring

to implement reforms and achieve full integration into the Euro- Atlantic community and its institutions.

Michael Polt has three decades of diplomatic experience. He served in several countries, including Germany, Switzerland, Austria, Mexico, Denmark and Panama.

Day of victory over Fascism celebrated in Belgrade The Day of Victory over Fascism was celebrated on May 9th 2004 in Belgrade and other Serbian towns with a number of manifestations, a rich program and a ceremony of placing flowers and wreaths. A representative of Serbia and Montenegro

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Director of the Danube Commission, Danail Nedialkov said on 5th May that the Liberty Bridge in Novi Sad would be reconstructed by the end of the year according to plan. He added that the Danube would be fully passable for transit in March or early April next year.

Peru appoints Ambassador to Serbia and Montenegro after 12 years SCG President, Svetozar Marovic accepted today the credentials of the newly appointed Peruvian Ambassador to Belgrade, Julio Walter Mergers, the first Peruvian ambassador in Belgrade after 12 years.

Prior to taking office in Serbia and Montenegro, Julio Walter Negreiros was in diplomatic service for his

country in Austria and Portugal, represented Peru in UN agencies and performed other duties in the Peruvian Foreign Ministry.

Children's clinic opens new wards A department for plastic and reconstructive surgery and an orthopaedic department have been added to the University Clinic for Child-Care in Belgrade. The wards were officially put into operation on 6th May with the help of a donation provided by the German Relief Foundation THW and the Austrian Government.

The opening ceremony was attended by the Austrian Ambassador to Serbia and Montenegro, Haannes Porias; Director of the Austrian Development Agency, Michael Linhart and representative of the German Relief Foundation-THW, Peter Kussmaul. Their donation provided the clinic with an operating theatre room and a modernised intensive care unit for burn treatment.

EU ambassadors on the harmonisation of economic systems in SCG The harmonisation of the economic systems of Montenegro and Serbia remains one of the key conditions for SCG membership in the European Union said the representative of the European Commission delegation to Serbia and Montenegro, Esmeralda Hernandez. In a statement to a press conference in Podgorica on May 5th, Hernandez told reporters that Montenegro could not harmonise its market directly with that of the EU because the governments of SCG had pledged to harmonise their markets within the state union.

French Ambassador on EU enlargement French Ambassador to Serbia and Montenegro Hugues Pernet said in Belgrade on 6th May that the process of EU enlargement was not finished with the accession of ten more countries on 1st May. "EU enlargement is not a finished process. We might have many more

Bulletin changes in 2010", said Pernet at a conference entitled "Common Foreign and Security Policy of the European Union" held at the Diplomatic Academy within the SCG Ministry of Foreign Affairs.

The conference was part of a training program for European issues organised by the French Embassy and the French Cultural Centre in Belgrade.

Dutch Ambassador in Majdanpek On 6th May, the Dutch Ambassador to Serbia and Montenegro, Barent van der Heyden, stated in Majdanpek that the process of EU enlargement was not over following the accession of ten new countries and that there was room for more members, including Serbia and Montenegro.

The largest diplomatic EU delegation ever to visit Majdanpek included Finish Ambassador to SCG, Anna

Maria Korpi; Deputy Head of the British Embassy, David McIlroy; representatives of the embassies of Slovakia, Cyprus, Slovenia and a representative of a delegation from the European Commission.

Gowen: Easier passage into the EU for Serbia and Montenegro British Ambassador to Serbia and Montenegro David Gowen stated on May 13th that Great Britain and the international community feel that Serbia and Montenegro will have fewer problems entering the EU together than they would as separate entities.

During a lecture at the Megatrend University entitled "SCG in European Integrations", Gowen told students said that European officials were planning to integrate the entire Western Balkans into the EU, includ-

ing Kosovo, but that it was too early to talk about Kosovo's final status.

The President of the Serbian Parliament meets with Ambassadors On 21st May in separated receptions the President of the Serbian Parliament and acting president of the Republic, Predrag Markovic held talks with the Ambassadors of Great Britain, H.E.David Gowan and Finland, H.E.Ms. AnnaMaija Korpi. Markovic discussed bilateral cooperation and parliamentary activities with the Ambassadors of Great Britain and Finland in SCG and also acquainted them with the current work on the new Serbian Constitution.

Markovic also met with the head consultant of the EU High Commissioner for Security and Cooperation Javier Solana, Stefan Lene, and the Head of the Delegation of the European Commission in SCG, Geoffrey Barret.

Newly Accredited Peru (5th May 2004) H.E. Julio Walter Negrerios Portella, Ambassador Extraordinary and Plenipotentiary

Born in 1946, Mr. Portella graduated with a Law Degree from the National University 'Federiko Viljareal', before obtaining a degree in Diplomacy and International Relations from the Peruvian Academy of Diplomacy. Previous diplomatic experience has included serving as Director of Sector for Europe within the Peruvian Ministry of Foreign Affairs, Ministerial Advisor to the Peruvian Embassy in Austria, Ambassador Extraordinary and Plenipotentiary in Portugal. He is married with two children.

United States of America (21st May 2004) H.E. Michael C. Polt, Ambassador Extraordinary and Plenipotentiary

Prior to assuming his new position, Mr. Polt served, amongst others, as Secretary of State Colin Powell's Principal Deputy Assistant Secretary of State for Legislative Affairs, U.S. Minister and Deputy Chief of Mission to the U.S. Embassy in Berlin, Germany and Deputy Chief of Mission and Charge'd'Affaires to the U.S. Embassy in Bern, Switzerland. He is married with two children.

Republic of Croatia (21st May 2004) H.E. Tonci Stanicic, Ambassador Extraordinary and Plenipotentiary

Mr. Stanicic was born in Split in 1954. He is a Law graduate who later acquired a Masters Degree from the same Law University. Mr. Stanicic was Deputy President of the State Commission for the exchange of war detainees and Coordinator of the negotiating team for South Croatia. He has also served as Consul of the Croatian Embassies in Moscow and Bonn, and as Ambassador to Bulgaria. He is married with two children.

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Bulgaria

By Jelica Putnikovic, with the assistance of Mr. Stoyan Stankulov, First Secretary to the Embassy of Bulgaria

T

he dark, yet sparkling blue waters of the Black Sea, trimmed with particularly golden sands, are a seductive lure for bathers, quickly discovering that the warm waters are not as salty as most of us are used to.

The distinctive golden hue of Bulgaria's sandy beaches instils a sense of pride in Bulgarians, who claim that the colour was no accident of nature. According to Bulgarian legend, when God created the earth he designed the north coast of the Black Sea to his own specifications, with the intention of holidaying there himself. And indeed, the sweeping dunes of Bulgaria's beaches, adorned with rare and protected plant species and bordered by dense, luscious deciduous forests, do appear to have been sculpted as part of some grand design.

Bulgaria's Black Sea coast stretches some 378 kilometres and, on the whole, it's fine golden sand all the way. In 1996, Bulgaria's largest beaches were awarded the European Union's ´Blue Flag´ status, thanks to their quality and ambience, cleanliness and abundance of space for bathing, sunbathing, beach sports and ambling.

The Black Sea coast's golden beaches and Mediterranean climate have attracted man for millennia. Some seven civilisations are known to have called this area - at the crossroads of Asian, African and European trade routes - home. Following the Tracans, the Ancient Greeks arrived in their search for golden fleece. They were eventually replaced by the Romans, who in time gave way to the Slavs. The Great Bulgarians arrived more than 13 centuries ago and, following the rule of the Byzantine and Ottoman empires, modern Bulgaria was created.

Coast of Golden Sands

The climate along Bulgaria's coast is pretty much perfect in the summer. With air temperatures ranging between 23 - 27°C, and water temperatures of 17 - 25 °C, it is ideal for relaxing, without sweltering.

According to statistics, the Black Sea coast has more than 300 hours of sunshine per month in July and August and 240 in May and September.

Deep coves and sheltered bays; sheer cliffs, forested hills and romantic peninsulas; vineyards, orchards, fishing spots and isolated communities all serve to provide Bulgaria's coast with a unique and fascinating appeal.

Development of Bulgaria's coastline for the tourist industry began in the 1960s, and today's hotels and holiday apartments, coupled with tourist centres and other lodging options, ensure the Black Sea resorts have much to offer for visitors from across the globe. The majority of hotel accom-

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Sofia

modation is of four or five star standard, with budget accommodation also available.

When Bulgarians embarked upon their drive to entice tourists, they understood the quality market and so the large hotel complexes have been designed to western standards and specifications.

With the financial assistance of the world's largest hotel chains and tour operators, the Bulgarian tourist resorts have managed to create a destination to suit the budgets of all holidaymakers, from those seeking deluxe hotels, or quaint guesthouses, to villas, chalets, and even traditional artisan homes offering accommodation.

The resorts of Albena, Zlatni Pjasci (Golden Sands), Riviera Holiday Club, Sunny Day, St. Konstantin & Elena and Soncev Breg (Sunny Beach) boast the country’s largest hotel complexes.

These complexes, regardless of star rating, all offer luxury swimming pools and sports centres, which include tennis and squash courts, golf ranges, bicycle rental, horse riding, pony and trap rides and much more.

Year-round relaxation is available thanks to Albena's Hotel Dobrudja, which has a spa centre staffed by highly trained professionals, offering a range of 120 different treatment services with modern equipment, heated swimming pools, saunas and solaria.

For those preferring a more active break, a range of water sports are on offer along the Black Sea coast. From water skiing, surfing and windsurfing, to pedalos, boat hire and paragliding. Whilst

Bulgaria's Black Sea coast stretches some 378 kilometres and, on the whole, it's fine golden sand all the way. In 1996, Bulgaria's largest beaches were awarded the European Union's Blue Flag status thanks to their quality and ambience, cleanliness and abundance of space for bathing, sunbathing, beach sports and ambling.

Tourism

Nesebar: UNESCO protectorate

the older generation enjoy their adrenaline-fuelled holiday, children are entertained by daily clown shows and other entertainment.

For the rambling tourist, countryside excursions are on offer and, besides the natural beauty of the Bulgarian hinterland, hikers can also visit pristinely preserved rustic villages, monasteries and other sights of historical interest.

For the consumer tourist, short trips to Cairo and Istanbul are available, with guides to show you the best places to spot a bargain or simply enjoy the cities.

Bulgaria's resorts come to life after dark, with a wide range of nightclubs, discotheques, traditional restaurants and casinos providing entertainment throughout the night.

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Interview

Tourism

Traditional walk on hot coals If one wishes to steer clear of so-called "instant" tourism, the ancient Bulgarian town of Nesebar is a must. A genuine museum town, Nesebar is under UNSECO protection as a world heritage site and is one of the oldest settlements in Europe. The town boasts the ruins of ancient Tracan, Greek, Roman

For those preferring a more active break, a range of water sports are on offer along the Black Sea coast. From water skiing, surfing and windsurfing, to pedalos, boat hire and paragliding. Whilst the older generation enjoy their adrenaline-fuelled holiday, children are entertained by daily clown shows and other entertainment.

and Byzantine fortresses. Today it provides a blend of stylish galleries and art studios situated among the remains of medieval buildings and the town's solitary remaining church of the middle Ages.

Nesebar is situated on a small peninsula and boasts two beaches on opposing sides of its cape. It borders the modern, specialist resort of Soncev Breg (Sunny Beach), which itself boasts seven kilometres of golden sands.

Sunny beach has more than 100 hotels and the resort's only inhabitants are hoteliers and those catering for the tourist trade.

Located in its own bay, Sunny Beach earned its name thanks to the average 1700 hours of direct sunlight it enjoys between May and September.

Sunny Beach has many restaurants specialising in both national and international fare; as well as a multitude of bars, nightclubs, casinos, café bars, discotheques, breweries and saloons. Tours of the resort on small trains and cycle-drawn rickshaws are available, while motorcycles and cars are forbidden in the pedestrianised heart of the resort.

Another popular Bulgarian resort is Zlatni Pjasci (Golden Sands). Although Sunny Beach has fewer hotels than Sunny Beach, it offers the same wide range of entertainment venues and eateries. However, this resort is the ideal destination for

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those seeking a therapeutic break, because Sunny Beach offering spa treatment with Peloido (mud) therapy, hydrotherapy, aromatherapy, anti-stress treatment, physiotherapy, relaxation treatments and even therapeutic methods involving honey.

Another historically significant destination for visitors to Bulgaria is the seaside museum town of Sozopol. The stones of Sozopol's walls have borne witness to many historical events and the history of the town itself is shrouded in mystery. Bulgarian folklore tells of Sozopol's heroes of old, embarking on voyages across the Black Sea in search of the Golden Fleece, perhaps before Jason and his Argonauts heard tell of such a treasure.

The town is believed to have been founded when the ancient city of Elada became overcrowded and inhabitants sought to colonise this area of the coast. The name of the town is also a cause of speculation, though many believe the Sozopol name is linked to the city's location in a serene bay and its marine glory, or as a saviour and protector of the city of Apolon.

When visiting Bulgaria, one should take the opportunity to sample the excellent domestic wines, in restaurants that serve traditional dishes and provide cultural entertainment in the form of re-enactments of historical events and artistic performances.

Bulgaria is trying to stamp its identity on the map of global tourism and, whilst so doing, the country does not hide the fact that it offers the kind of entertainment that has proved successful in countries that preceded them on the road to tourist development.•

Recreation centre “Pamporovo” at Rodop Mountains

Classified

Out of Town

Welcome to

Kovacica Fields of sun-flowers in full bloom, dancing horses, diligent peasants in the fields, idyllic village landscapes.

These are all views in a splash of rainbow colours - are views that are not only to be found on the canvasses of world renowned masters or the naive painters from Kovacica, but are in fact scenes which become reality when you visit Kovacica.

Out of Town

By Ljiljana Matejic, Photo Alzbeta Babkova

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F

or 202 years Kovacica has been situated less than fifty kilometres from Belgrade, past Pancevo, in the flat Banat area of pleasantly fertile farming land and the rich foliage of fruit trees. The natives, a diligent and quiet Slovak people, arrived here more than two centuries ago from Central and Southern Slovakia and made a small tourist oasis from the original swamp-land. This includes worldwide renown for small Kovacica, a community with seven thousand inhabitants, where the native, Slovakian language is still spoken, especially among lovers of authentic, ethno and naive art.

. The skilled hands of the inhabitants of Kovacica, roughened by hard work, illustrate squashes, plates, cups and footstools. Like real sculptors they skilfully create dolls using dried corncob leaves, miniatures in walnut shells...

It all started about half a century ago. In 1952 the inhabitants of Kovacica decided to celebrate 150 years since their arrival in the region. They held a celebration in the Cooperative House, the largest building at the time. Several young people relaxed in their free time - after ploughing, hoeing or picking the crops, by painting the surrounding views - children playing, women watching over cradles, feeding poultry, baking bread or cakes, jolly wedding guests and weddings, christenings and typical Slovak cus-

toms. All these were characteristic peasant costumes, richly embroidered with strong colours and decorated with hand-made lace. Jan Sokol, the brothers Jan and Ondrej Venjarski and Martin Paluska had the strength and courage to publicly present this side of their lives which had remained thus far hidden. They collected their paintings and presented them to their kinsmen. This was the first official exhibition of paintings by the naive artists from Kovacica and that is how it all started.

Long village evenings pass slowly, especially in the winter when there is no work to be done in the fields, orchards and vegetable gardens. More and more locals, both men and women, young and old, reached for brushes and paint and - painted.

Rumours about the excellent artists in Kovacica spread fast. New artists were created - Martin Jonas, Zuzana Halupova, Jan Knjazovic, Jan Strakusek... Oil canvases by these artists decorate

Tourists usually come to this pleasant place with its lively painted houses for short visit of a day or perhaps an afternoon. The doors of the "Babka" gallery are always open tions outside Kovacica and take them throughout the former Yugoslavia and abroad, out into the world. Klara and Pavel Babka, owners of the "Babka" gallery, created a logical union of tourism and art. They presented the Kovacica artists and their work at EXPO exhibitions in Seville and Lisbon, at the IMF and Inter-American bank for Reconstruction and Development in Washington, to Cyprus, Madrid, Bratislava, Tunis... Last year the work of fifteen well-known artists was presented at exhibitions in Paris in the UNESCO Palace and the Holfsburg palace in Vienna under the organisation of OEPS. Tourists usually come to this pleasant place with its lively painted houses for short visit of a day or perhaps an afternoon. The doors of the

Out of Town

the homes and art galleries of connoisseurs throughout the world, from America to Japan.

Paintings, however, are not the only works on offer. The skilled hands of the inhabitants of Kovacica, roughened by hard work, illustrate squashes, plates, cups and footstools. Like real sculptors they skilfully create dolls using dried corncob leaves, miniatures in walnut shells...

And while they were sculpting and painting, two other young people, both art lovers, gathered the artists into a group in order to organise exhibi-

includes a visit to an artist who is not a painter - Emil Njemcek, the only violin maker in Serbia & Montenegro.

What sort of excursion would this be without something to eat and drink? This is taken care of by a national restaurant in the centre of Kovacica. Homemade soup with noodles, pasta in sauce and of course poppy seed strudel. How can you resist such delights!

How can you resist going, if only for half a day, to Kovacica.•

"Babka" gallery are always open and in addition to the gallery and artwork it boasts, visitors also have the opportunity to visit an attractive, well preserved Evangelist church. If they come on a Sunday, during services, they gain an additional experience. The choir sings every Sunday, accompanied by music played on an old organ, and the exceptional acoustics of this church occasionally attracts an artist to hold a concert there.

Visiting the artists in their homes is a compulsory part of the tourist programme. This also CorD | June 2004

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'Aida' in Belgrade

By Gordana Buncic

T

he renowned Serb-American opera director Dejan Miladinovic describes himself as someone who lives in Belgrade and works in America. His father was a well-known conductor, his mother an opera singer, and, in fact, his kinsmen have performed at Belgrade's National Theatre for more than a century, with his actress daughter continuing this tradition today.

Although Dejan Miladinovic became an opera director, his initial plan was a career on the stage as an actor. He was preparing the entry exam for acting studies, when, following the advice of Professor Josip Kujundzic, he had a change of heart and enrolled to study as a drama director instead. Then, as he was also musically inclined, Miladinovic decided to become an opera director. At the beginning of his career, his role models were drama and opera director, Kosta Spasic, Managing Director of the Croatian National Theatre in Zagreb, and Jovan-

Egyptian

Extravaganza Bata Putnik, an opera director from Belgrade, with a rich and unlimited imagination.

To avoid any controversy over stepping into a job at the Belgrade Opera, where his father was Director, he got his first assignment at the Serbian National Theatre in Novi Sad, in 1973. It was only later, in 1978, that he returned to Belgrade and accepted the position of Opera Director at the National Theatre. At this time, he tried to introduce novelties and stage operas, that audiences at that time had not yet had a chance to see, and he says everything was easier after socialist self-governance became history and circumstances changed.

Several operas that were staged back then were premiere performances in Belgrade, Yugoslavia and Europe. One of them was 'Cinderella', effectively directed by Jagos Markovic, featuring fabulous cos-

tumes by Renata Balestra, and Miladinovic stresses that the whole project would not have been possible without huge assistance from the Italian Embassy. 'Cinderella' was staged 25 times in the first year of showing in Belgrade and each time the theatre was packed to the rafters.

A performance that received its first showing in Yugoslavia during Dejan Miladinovic's mandate as Director of the Belgrade Opera was Gaetano Donizzeti's 'Anna Bolen'. The opera was performed on the 200th anniversary of the composer's birth. American opera 'The Crucible' was also staged for the first time in Europe, and, for the score of performances, tickets were in high demand. In this instance, Miladinovic said the project owed much to the support of the American Embassy and the ambassador's personal engagement.

The Tradition of 'Aida' During his distinguished career, Miladinovic was professor on two occasions at a renowned private University in Dallas, worked as artistic director at the South Methodist University and the University of Southern California, Los Angeles, and has also been a professor at the Faculty of Music in Belgrade. While in the US, he directed many operas, including 'Prince Igor', 'Eugene Onegin', 'Othello’, and, on several occasions, Giuseppe Verdi's 'Aida’. With such a wealth of experience, he is an obvious candidate to direct the new version of 'Aida'.

Aida is the most spectacular opera of those written by Italian composer Giuseppe Verdi. A representative of the Egyptian Khedive asked the famous composer to write an opera for a distant country, and finally, at the third time of asking and at the

'Aida' in Belgrade

Dejan Miladinovic

Photo Danka Ninkovic

The Sava Centre will once again host a major premiere, says Dejan Miladinovic, the popular concert hall's director, pointing out the requirements for staging an event of such magnitude as the opera 'Aida'. The director's experience acts as a guarantee for his word, since Miladinovic was also instrumental in adding 'Attila' (1988) and 'Prince Igor' (1989) to the Sava Centre's repetoire.

insistence of his close friend Du Locle, who sent him the scenario, Verdi consented. Later it turned out that the author of the scenario was the French Egyptologist Auguste Mariette.

The premiere of 'Aida' took place in December 1871, later than it was originally scheduled, since the French-Prussian war had prevented Mariette from getting out of Paris to finalise his arrangements with Egypt. Six weeks after its Cairo premiere, the opera was then shown for the first time in Milan. Belgrade has seen performances of 'Aida' under the direction of Josip Kulundzic and Anika Radosevic, with Milka Stojanovic and Ljiljana Molnar having the most notable successes in playing the role of Aida.

When opera directors want a challenge they usually attemp the monumental task of mounting 'Aida', such a temptation also proved irresistible to Dejan Miladinovic. We have already mentioned he directed the opera several times in the US, and he added Belgrade to his list in 1990. The conductor was Kornel Trailesku from Romania, Aida was played by Vjera Miranovic Mikic, the role of Amneris was filled by Jadranka Jovanovic and Jelena Vlahovic, while Radames was sung by Fabio Armiliato, a little known tenor at the time, but one who later reached stardom at the Metropolitan.

The Secret of "Aida" The opera was acclaimed by the critics of the time. "It was a stylised version of Aida that carried an idea rooted in Champollion's research and decryption of Egyptian hieroglyphs.

The whole story starts and ends in the pyramid, since our knowledge of ancient Egypt comes from their tombs. The people of Ancient Egypt were dedicated to the afterlife and have left so many traces that we are able to reconstruct much of their private life based on what was found in the tombs."

Dejan Miladinovic is uncertain when work on the new version of Aida will begin, since talks with the National Theatre are

currently focused on the scenography, and the stipulation that the dĂŠcor be light and not too expensive. Miladinovic agrees, and explains that the audience cannot maintain the same level of attention for more that two and half hours, meaning that the dĂŠcor must allow for quick changes.

"There are some wonderful costumes from my previous version of Aida, designed by the Dean at the Faculty of Applied Arts, Mrs Berberovic, that we could use for the new version as well. However, in order to reduce costs, we must come up with ideas and adequate technical solutions. I would be in charge of the scenography, with the assistance of a younger colleague, tasked with implementing my drafts and outlines. 'Aida' is a chamber opera in which the only two spectacular segments are the scene of triumph and the scene inside the temple, but not like the gloss of the motion picture Cleopatra. One must be very cautious when writing the scenography, since every kind of exaggeration,

Dejan Miladinovic is uncertain when work on the new version of Aida will begin, since talks with the National Theatre are currently focused on the scenography, and the stipulation that the decor be light and not too expensive. in the sense of a false reprint of ancient Egyptian culture, would amount to kitsch."

The Sava Centre will once again host a major premiere, says Dejan Miladinovic, the popular concert hall's director, pointing out the requirements for staging an event of such magnitude as the opera 'Aida'. The director's experience acts as a guarantee for his word, since Miladinovic was also instrumental in adding 'Attila' (1988) and 'Prince Igor' (1989) to the Sava Centre's repetoire.

Miladinovic did not want to reveal too much about how he has envisaged the new 'Aida'. Feeling it would take away the magic that draws the audience to the opera, he just says that the latest version will be spectacular, containing, on one hand, motives from the culture of ancient Egypt and, on the other, the 21st century and science fiction. We can only hope that the Director and the National Theatre be significantly aided by a donation, and will manage to forge an arrangement that will enable the scenography to meet the grandeur of Verdi's popular opera.• CorD | June 2004

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Fashion

AURA FASHION SELECTION Fashion lovers enjoyed a bonanza of attractive new styles at AURA Fashion Selection's Week-long Belgrade show, held between 6th and 12th April and organised for the fifth consecutive year by SELECT Fashion Agency.

Both local and international houses presented their spring/summer selections at the event, amongst them Tommy Hilfiger (actual spring collection) and La Perla.

Of the local designers, Zvonko Markovic's exceptional collection generated the greatest interest. Markovic, well known for his attractive creations, presented a collection of elegant evening gowns that aroused the enthusiasm of fashion connoisseurs, critics and the audience alike.

The designs of Jelena Nikolic, Vladanka Celic and the "P…S…Fashion" house also received acclaim for innovative style.

Nikolic, who drew inspiration from the boiling atmosphere of metropolis, presented a collection that leaves the impression of comfortable elegance.

Celic chose the event to introduce her new evening gown selection, designed with a rejection of simplicity and the courageous embracing of imposed arrogance and provocation. Celic's collection brought a genuine spirit of glamour to Belgrade with its stunning colours and decorations of natural details.

Jurors at the AURA event adjudged Zvonko Markovic's selection "the best fashion designer's collection"; Jelena Nikolic's collection "the best show presentation", while P…S…Fashion and designer Sladjana Panovic were honoured in the category of "best fashion house collection".

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Fashion Zvonko Markovic Zvonko Markovic

Vladanka Celic

Vladanka Celic Zvonko Markovic

Techno Talk Xplore G88

smartphone

www.palmsource.com/uk Recently, smartphones have had only one clear-cutleader - the Sony Ericsson P900. Here to seve notice on its regime and help challenge the PDAs is the G88, a phone that popagates speed rather than power, and offers a lovely 2.2 inch, 65k-colour screen, QVGA camera, 16 MB RAM and 22MB flash memory. Sure, these figures won't blow your away, but it's Palm-powered, meaning that it can mine the considerable catalogue of speedy Source applications, and manufactured by GSPA, a company unknown here but hube in Asia. Its closest Palm rival, the Handsprign Treo 600, will certainly be glancing nervously over its shoulder, and the P900 would be foolish to dismiss it. Let battle commence…• Retail price: tba

Panasonic AV50 www.panasonic.jp/d-snap/av50 The SD card-equipped AV50 can be used as a voice recorder, a 30fps video camera and a 2MP digital stills camera. It is also an MP3. player and can be used with Panasonic's DIGA DVD recorders to transfer recorded TV programmes to the memory card for on-the-move viewing. Dowe want it?• Retail price : cca € 325

name:

url: description:

price:

i-Teach

www.internity.co.uk/itech An extravagant, organically styled Bluetooth headset is fine in Fulam on a Friday morning buyt ill-advised in Dalston on a Saturday night.

The I-Teach offers a less ostentatious alternative, as the main unit clips discreetly to your clothing, with a modest-looking single wired phone going to your ear.• : cca € 75

Adidas Elevation Climacool www.adidas.com/eyewear Climacool ventilation obliterates steamy lenses and Quick-Release Hinge releases the arms on impact for minimum frame damage.• : cca € 190

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CorD | June 2004

Bluetooth headset

Techno Talk

Canon PowerShot S1

www.canon.co.uk Canon PowerShot S1's Optical Image Stabiliyer tehnology. This is great both for taking 3,2 megapixel stills with the 10x optical zoom and for utilizing the excellent comcorder mode. The 30fs, 640x480-resolution quality of this mode is among the best you will find on a digicam, and is enhanced further the silent Ultrasonic Motor lens.

It might not quite be time to dump your MiniDV, if hybrids keep improving this fast, the MiniDV will justifiably be feeling nervous.• Retail price : cca € 720

Digifusion FRT 100 www.fusiondigitec.com Fusion Digital Tehnology has developed the FRT100, which, unlike its digital terrestrial receiver competition, provides a seven-days listing guide. This means you need spend only one evening browsing the TV channels on the user-friendly interface and planning your viewing week ahead. Those who live in the stick will be aided by an advanced tuner, which increases picture quality in poor reception areas. Even more exciting is the impending 40GB hard drive PVR version: Sky+ functionality with no subscription.• Retail price : cca € 120

Goodmans GPDR1 www.goodmansdigital.co.uk On the cover of Goodman's spring/summer catalogue, the GPDR1 is pictured edging nervously from behind a red curtain, as if struck by stage fright. This lack of confidence seems unfounded. Consider by personal media player's CV it can play and record MP4 video (allowing you to save up to two hours of TV), MP3 and WAV files, and JPEGs, and its 256MB memeory can be expanded by CompactFlash II, SD or MMC. Maybe it's worried that the Archos AV340 is watching, and poised to start heckling. But apart from a smaller screen (an inc less at 2.5in), it compares favourably, weighing 250g (compared to 350g) and costing £300 less. Pity that it missed the screen test for our Supertest (p86). While the Archos and Tomson Lyra hog the big roles, the GPDR1 could yet pip them and the Zvue to a Best Supporting Player Oscar.• Retail price : cca € 300 CorD | June 2004

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GREEK CUISINE, BELGRADE STYLE C

entral Belgrade's Greek national restaurant 'Zorba' has been providing Belgrade and her visitors with traditional Greek fare for the past two years.

This excellent eatery supports the notion of slow food, which ensures that all dishes are prepared using traditional methods, natural ingredients and without industrially-produced species of flavourings. This is because Zorba's team of chefs have joined other true gastronomes in the fight to defend the human right to enjoy home-made cuisine prepared in a traditional way, without additives or preservatives.

The restaurant's menu was compiled with the help of top Greek chef Gianis Kontogianis, one of only 23 members of the prestigious and exclusive Association of Greek Chefs; and Zorba's team of chefs travel to Greece each year to study traditional cuisine and collect traditional recipes. This ensures that Zorba's mezes and meals are always fresh and full of Greek style and are prepared using only the best quality olive oil - the essence of authentic Greek cuisine.

Zorba is open daily from noon to midnight and, as well as its wide range of traditional Greek fare, the restaurant

offers an excellent selection of Greek and Mediterranean wines and provides a genuine atmosphere with its welcoming Greek music.

Greek cuisine is a distinctive representation of Mediterranean fare, uniting the best culinary styles of the Middle East and Southern Europe. The scope of ingredients used - from cod and fish roe to lamb cutlets and citrus fruits, Mediterranean herbs and oriental spices - guarantees a wide and rich variety of flavours.

Based on the principles of ancient Greek and Byzantine cuisines, the con-

Saronikos - seafood speciality 1 lettuce, 100g mussels, 100g squid, 200g octopus, 150g shrimp, 100g scampi, 1 large beef tomato, 1 cucumber, Thousand-Island (prawn cocktail-style) sauce ,Olive oil, lemon, olives Clean and boil the seafood, before allowing it to cool. Dice the seafood and leave to one side. Wash the lettuce and slice into strips. Place on a serving platter and dress with salt, balsamic vinegar and olive oil. Mix the seafood with salt, olive and a little balsamic vinegar and place on top of the bed of lettuce. Cover the meal with Thousand - Island dressing and serve with tomato rings, cucumber, lemon and olives.

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CorD | May 2004

Paidakia - lamb cutlets

Bon Apetit

- Lamb chops - Salt, olive oil, lemon juice Clean the lamb and remove excess fat. Cover the meat with lemon juice, salt and olive oil. Grill under a medium heat until golden in colour. Serve with extra lemon and potato chips.

Horiatiki - Greek Salad (for two persons) 100g feta cheese, 300g fresh tomatoes, 300g fresh cucumber 50g red onion, 80g green pepper, 30g Kalamata olives, Salt, oregano, olive oil Wash the vegetables and slice into largish pieces, salt and add oil before placing in a salad bowl, dressing with feta, oregano and olive oil. Serve immediately.

Papoutsakia - aubergine boats 1 aubergine, 100g fresh minced beef, Ë? onion, white wine spices of your choice, white "bechamel" sauce with nutmeg grated cheese, salt, pepper, olive oil Heat the olive oil in a frying pan and fry the onion until golden. Add the mince meat and fry slowly. Half the aubergine lengthways and hollow out. Add the aubergine flesh, salt, pepper, spices and a glass of white wine to the frying pan and allow to cook slowly. Add the fried ingredients to the aubergine boats, cover with bechamel sauce and grated cheese and place in the oven on a medium heat. Cook until the boats soften and decorate with sliced tomatoes.

temporary Greek kitchen takes the best regional, continental and, as a rule, coastal styles, to draw the accolades of visitors who find that tours around the different parts of Greece, and the sampling of the various dishes, feel like a history lesson and a fantasy of culinary adventure.

A traditional Greek meal begins with a meze - a selection of various small dishes - usually including vegetable salads, Feta goat's cheese, traditional Greek yoghurt, olives and warm appetisers of mushrooms, cheeses, fried or grilled vegetables and seafood. The meze is fol-

lowed by a palate-cleansing glass of aniseed flavoured Ouzo, before the Horiatiki shepherd's salad - known internationally as a Greek Salad - is placed in the centre of the table. It is also common for main courses to be served in the middle of the table, allowing diners to sample the various tastes of the meals.

Typical Greek meals are made from chicken, lamb, veal or seafood, with a wide selection of vegetables, pastas, rice and potatoes accompanying the meat course. Meat is often marinated in lemon juice, herbs and spices, while fish is almost always served with Ladolemono -

a sauce made from lemon juice and olive oil. The most common herbs and spices used in Greek cuisine are oregano, basil, thyme, mint and dill, while cinnamon, pimento and cloves are also used. In total, more than 100 different herbs and spices are used in Greek cooking.

The freshness of ingredients, mild flavours and delicate textures ensure that diners will feel the light quality and sophistication of Greek cuisine even after a big meal. Thus most meals end with a desert of honey-topped fruit salad, Greek yoghurt with honey and walnuts or the famous specialities of Baklava and Karidopita.•

Baklava 1kg shelled walnuts, 1.3kg filo pastry, sugar, honey, cinnamon, lemon, oil or butter Grind half of the walnuts and chop the other half. Mix with sugar and add cinnamon to taste. Grease a baking tray and add a few sheets of filo pastry. Butter the pastry and cover with the walnut mix. Add a few more sheets of filo pastry and repeat the process until the mixture fills the tray.

Press the pastry down to ensure the baklava is evenly layered. In a sauce pan cook the sugar, honey, cinnamon and lemon. Once the ingredients have dissolved and the mixture becomes syrupy, pour over the cold baklava mix and leave for several hours to be absorbed.

CorD | May 2004

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Exit O4

Welcome to the Ibiza of the Balkans

Exit 04

What started as a regional music festival has become a major European event and we want to transform it into the Ibiza of the Balkans, EXIT festival's marketing manager Milos Ignjatovic told Cord.

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CorD | June 2004

O

ne could hardly pick a better location than Vojvodina's capital, Novi Sad, for a music festival. Situated on the banks of the River Danube, this is a relaxing city, with a population of around 400,000. During the first week of July, when the annual EXIT festival attracts hundreds of music stars and celebrities, the city springs to life.

It all started four years ago, shortly after democratic reforms in Serbia paved the way for a group of enthusiasts to organise a nine-day party at Novi Sad's magnificent Petrovaradin fortress. EXIT has since developed into a major European event, with tourists flocking in from all over Europe to see their favourite bands live. Last year's festival featured 400 artists, performing on seven stages for an overall crowd of more than 100,000. Moloko, Tricky, Darren Emerson, Layo and Bushwacka, Lottie,

By Zoran Milosavljevic

Peace Division, Soul II Soul and Stereo MC's were only some of the world-famous names that entertained us for four memorable nights. This year's festival, being held from 1-4 July promises to be even more spectacular and fulfilling.

"The line-up says it all. We are bringing the best of the best to EXIT this summer and we have definitely gone beyond the point of being a regional festival," said Milos Ignjatovic, EXIT 04 Marketing Manager. "EXIT has become a major European event. This summer, we will definitely establish ourselves as the Ibiza of the Balkans," he told Cord.

Indeed, a comparison with the annual all-summer music event in the popular Spanish resort is not out of place. Novi Sad offers a similar, yet original, form of fun and entertainment, with a camp delightfully placed between the fortress and the Strand swim-

ming resort; only a stone’s throw from a beach named by all its local and foreign visitors as "The Beach" for its striking resemblance to the scenery of in the Hollywood blockbuster.

"The fourth annual EXIT festival will show just how much we are a part of Europe. We expect tourists from all over the continent to come here and see some of Europe's best music stars in action. The organisers are pretty sure that the fortress will be packed throughout the festival, meaning that we expect 50,000 to turn up every night", Ignajtovic said. The forecast is hardly surprising, given that this year's festival will feature the likes of Iggy Pop, Massive Attack, Timo Maas, Thievery Corporation, Cypress Hill, Roger Sanchez, Satoshie Tomie, Steve Lawler, Adam Beyer, Smokin' Jo, as well plenty of our own popular artists. The list of stars coming to EXIT 04 is quite simply endless and worth every cent of the 49 euros charged for a four-day ticket plus camping fee, or 69 euros for a four-day ticket and a room in one of Novi Sad's hotels.

"This is a result of the hard work we have put in over the past few years and the excellent impression we have made across Europe," said Aleksandra Kolar, EXIT 04 Public Relations Manager. "We have set up our own office in London, since most of the foreign artists come from the United Kingdom, and we expect a lot of Novi Sad getting ready visitors from there this year," she told Cord. "Last year, we had an avalanche of tourists from neighto host a major European music festival bouring Hungary and Slovenia, the demand for this year's event in these two countries is incredible. time opportunity to see one of the all-time greats.

They are all coming back and bringing more people "We had to invest twice as much money as we did last year to with them. We've really made our mark with excelbring all these names to Novi Sad," Milos Ignjatovic said. lent presentations in London, Berlin and Slovenia's Aleksandra Kolar also pointed out just how demanding hosting an capital, Ljubljana," Aleksandra Kolar said. "We event of this magnitude is: "We employed the services of around have positioned ourselves as a major European fes1,000 people to organise the event and it took a lot of effort, but it tival and we only hope there will be charter flights was a rewarding task, as this year's festival will exceed all others in available from the United Kingdom and other parts terms of quality and attendance," she said. No less than 250,000 of Europe for all those who want to visit us this visitors are expected to attend the performances of more than 400 year," Ignjatovic added. artists on 10 stages located across the Last year we had an avalanche of tourists fortress. Crowd-lifters will certainly be the Seeing the Petrovaradin fortress, especially during from neighbouring Hungary and Slovenia, focus of some attention, but low-key the demand for this year's event in these bands will also get a chance to show what EXIT, is simply a must.

This year's event will see two countries is incredible. they've got at the Future Shock stage. the return of a gigantic DJ As always, EXIT will offer 'an exit' for Arena, with capacity for 30,000 visitors, all attracted those wanting to take a break, or for those wanting to indulge in to this unique venue two years ago by the possessive an entirely different kind of entertainment. The Pop Cinema will beat of house and trance music, immensely popular be showing current blockbusters and the Art Cinema screening in Serbia and the rest of Europe alike. Those who non-commercial films. Naturally, there will be plenty of other gigs prefer a "chilled-out" atmosphere have plenty to offering all kinds of fun for everyone. look forward to at the Reggae stage. This has Prominent entertainment magazines such as Music and Seven become something of a landmark as the first stage have described the festival as a 'must-see' event. Last year, the most people visit en route to others, and the last one organisers presented the four-day event in a special booklet entithey leave making their way down to the camp after tled the State of Exit, resembling a passport. The booklet got its a gruelling yet unforgettable night at the fortress. name for the kindred spirit of togetherness, positive energy, optiThe Main stage is where the top concert bands permism and love for nature that brings together so many people from form. This year it will host Massive Attack on the all over the world. Regardless of nationality, religion, ethnic affiliopening night of the festival, while rock legend Iggy ation or political beliefs, EXIT unites people and gives everyone in Pop will close EXIT 04, with teenagers and their parthe right state of mind a chance to be a star, if only for a few days. ents expected to pack the stage for this once in a lifeCome and see for yourself. • CorD | June 2004

97

Belgrade Directory CorD's editorial staff will attempt to find and give answers to questions of current interest to our readers, so please send in your questions for future edi tions. In this issue, we reply to the most frequently asked questions amongst newcomers to Belgrade.

How to...

... host a reception or party?

… visit Serbia's famous spas and tourist attractions?

• If you want to host a reception, celebration, or any other kind of party, in your flat, garden or anywhere else for that matter, you can leave the whole organisation and selection of refreshments to the highly professional PartyService. All information available at: Belgrade 3946 461, or via the website at - www.partyservice.co.yu

• Serbia boasts numerous spas, with thermal and mineral water, and specialised health resorts. Among the most popular are Vrnjacka Spa, Bukovicka Spa and Soko Spa. All information regarding these tourist and recreation centres can be obtained via tourist agencies, as well as via the web site at: Vrnjacka Spa: www.vrnjackabanja.org.yu Bukovicka Spa: www.bukovickabanja.com Soko Spa: www.sokobanja.co.yu

… get a ticket for the Olympic Games?

• It is still possible to obtain tickets for some competitions at the Olympic Games, to be held in Athens between 13th and 29th August. On behalf of the Serbia & Montenegro Olympic Committee, the general ticketing agent for the area is Putnik, located in central Belgrade. All ticketing information available at: Belgrade 3241 950

… get, or take care of, a pet?

• If you already have a pet, or you would like one, useful advice is available from the Veterinary Office at 86 Jove Ilica Street. Advice and information is also available over the phone at: Belgrade 397 3317, or via the website at: www.veterinar.co.yu

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•host a reception or party?•get a ticket for the Olympic Games?•get, or take care of, a pet?•arrange your balcony or garden?•visit Serbia's famous spas and tourist attractions?•learn an instrument?•obtain a driver's license?•visit equestrian events?•get help using Microsoft programmes?•become a member of the National Library of Serbia?

… learn an instrument?

• Music education can be obtained in numerous music schools in Belgrade. The oldest music school in Serbia is "Mokranjac", founded in 1899. This school has two levels of education - elementary and secondary - for string and wind instruments, piano, the harp, and solo vocals.

All course and enrolment information is available at the school itself - 8 Krunska Street, Belgrade - or over the phone at: Belgrade 324 35 38. Further information is available at the website: www.beograd.com/mokranjac

… arrange your balcony or garden?

… obtain a driver's license?

• If you require help of a horticultural nature - from the arranging of house plants, planting of window-boxes or landscaping of gardens - help, advice and assistance is available courtesy of Cvet Express's expert team.

Information available at: 545 987

• All foreign citizens wishing to get a drivers' license should first complete the required training. The drivers' exam for foreigners is the same as that taken by Serbia & Montenegro citizens. Detailed information can be obtained via the Ministry of Internal

CorD | June 2004

Affairs' Traffic Department: Address: Ljermontovljeva St., telephone: Belgrade 347 0200

… visit equestrian events?

• Fans of horse racing and other equestrian events will be pleased to discover that the season has just begun. Race meets are held most Sundays at the Belgrade Hippodrome - Careva Cuprija. 2 Pastroviceva St. race programmes and ticket reservations are available over the phone (354 6826) or via the website: www.hipodrom.netfirms.com

… get help using Microsoft programmes?

• If you are having problems using your Microsoft computer software, you would be well advised to contact Belgrade's Microsoft Company Programme Support Centre.

All information on programmes' solutions can be obtained over the phone (337 30 60) or via the website: www.microsoft.co.yu

… become a member of the National Library of Serbia?

• Foreign citizens resident in Serbia can access the selection available at the National Library of Serbia, located at 4, Skerliceva Street, close to the Temple of St. Sava.

Identification cards or passports are sufficient to receive membership and allow you to access a wide range of local and foreign books and other publications. Information is available over the phone (444 73 81) or via the website - www.nbs.bg.ac.yu