CorD Magazine No.83

DSS Will go it alone

H.E. Oszkar Nikowitz,

Zoran Stanković,

Nenad Popović,

Ambassador of Hungary to Serbia

Minister of Health

Deputy President of the Democratic Party of Serbia (DSS) and President of ABS Electro

JUNE ‘11 / ISSUE NO. 83

Serbia Without Doctors

www.cordmagazine.com

historical Rehabilitation

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False asylum Seekers

If we are not capable of controlling false asylum seekers coming from our country, then we are going to be forced to carry out controls by ourselves by exercising the stricter supervision of our state borders and reinstating visas, which is a kind of triage DEJAN BODiROgA, viCE-PRESiDENT OF ThE SERBiAN BASKETBAll ASSOCiATiON

no Political ambitions

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6 SPoRt

the lone Sweeper

extradition of Criminals

Cultivating Self-confidence

Capital Move

Business Dialogue

Culture Calendar & news

False asylum Seekers

Potential in Renewable energy

Fine art

the largest Regional Financier

Speedy and Breezy

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vladimir Stanković, Writer and sports journalist

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historical Rehabilitation

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h.E. Oszkar Nikowitz, Ambassador of Hungary to Serbia

Capital investments necessary

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Zoran Stanković, Minister of Health

DSS Will go it alone

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Nenad Popović, Deputy President of the Democratic Party of Serbia (DSS) and President of ABS Electro

tax Cuts

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James Nye, Vice-Chairman of EFT Group

EDITORIAL DIRECTOR: Tatjana Ostojić, t.ostojic@cma.rs EDITOR: Jelena Aleksić, j.aleksic@aim.rs ASSISTANT EDITOR: Philomena O’Brien, p.obrien@aim.rs ART DIRECTOR: Ilija Petrović, i.petrovic@aim.rs CONTRIBUTORS: Slavka Kovač, Marija Damjanović, Petar Savić,

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Nikola Altiparmakov, member of the Fiscal Council

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Bojan Zanoškar, artistic mask maker

Restaurant Vapiano

Destination luxury

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Travel

Chill out

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no Political ambitions

Dejan Bodiroga, Vice-President of the Serbian Basketball Association

Aleksandar Miletić PHOTOS: Boško Karanović, Marijana Šaponjić TRANSLATION: Goga Purić, Snežana Bjelotomić EDITORIAL MANAGER: Tanja Banković, t.bankovic@cma.rs PROJECT MANAGERS: Vesna Vukajlović, v.vukajlovic@aim.rs; Marija Savić, m.savic@aim.rs; Jelica Lepori, j.lepori@aim.rs

The Secret Behind Manchester United’s Success

techno talk

Faces & Places

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after Work

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Opinions

First Modern Power utility in See

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Duško Knežević, President of Atlas Group

Andreas Beikos, Head of the Regional Office of the European Investment Bank for the Western Balkans

Serbia Without Doctors

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Region

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Milorad Dodik, President of the Republic of Srpska

vojin Dimitrijević, Professor of International Law and Director of the Belgrade centre for Human Right

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CoMMuniCationS

12 SoCiety

June 2011

Perfecting yourself is Crucial

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Manuela Šola Oršić, General Manager of Abracadabra Integrated Communications

Nataša Popović, n.popovic@aim.rs FINANCIAL DIRECTOR: Ana Besedić, a.besedic@cma.rs GENERAL MANAGER: Ivan Novčić, i.novcic@cma.rs PRINTING: Rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance international media Makenzijeva 67, 11000 Belgrade, Serbia Phone: +(381 11) 2450 508

Fax: +(381 11) 2450 122 E-mail: cordeditorial@cma.rs www.cordmagazine.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2011

This issue is audited by

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comment

The lone Sweeper Just like any other tennis player that has made

vladimir Stanković,

it to the top of the tennis world, Novak Đoković

Writer and sports journalist

(www.novakdjokovic.rs) owes his success to his talent and work, coupled with ambition and the financial standing of his parents who

emy in the location between the 9th Belgrade Gymnasium and the Novi Beograd Sports Hall. When (or if) this away tennis academies which is something facility is constructed, the most talentthat the state should have done ed children from all over Serbia will be able to play tennis there. And if these hen this column went into print, the second most imchildren turn out to be like Novak, Viktor, Jelena or Ana, then portant grand slam tournament – Roland Garros – the state will have plenty of reasons to be proud of what it had already begun. Novak Đoković had already won has achieved for its wonderful sporting ambassadors. the first grand slam tournament – the one in Melbourne (www.

Speaking of ambassadors, in early May, Serbian tennis .

Riding on the waves of this great success, australianopen.com) players were officially given diplomatic passports by Foreign he remained unbeaten for six tournaments, scoring 39 wins, Minister, Vuk Jeremić. Are tennis players much better ambassabeating the number one player in the world, Rafael Nadal, four dors than those people who do that for living and who are paid times (two times on clay) and Roger Federer two times, which by the state? Of course they are, but maybe other athletes are eventually made him jump to the number two position in the too. The Minister’s promise that other athletic ‘aces’ in Serbia world, lagging behind Nadal by only 405 ATP points. He calcuwill have their turn sounds like a cop out. This statement made lated that he needed to make it to the finals in order to claim government officials scratch their heads in confusion since the the number one spot. Serbia is euphoric because of Novak’s Ministry of Youth and Sports knew nothing about the ‘diplosuccesses. His fantastic series comes after Serbia’s Davis Cup matic passports’ which Slobodan Milošević used to hand out win in December. The girls made it back to the World Group of during his political reign. Many sports associations came forthe Federation Cup. So on one hand, Serbian tennis is simply ward, objecting to the fact, and justly so, that only tennis playflourishing, and on the other, the country is in complete disarers were getting diplomatic passray with the state doing very little, if It would be as effective and less ports and not other athletes. nothing, to help tennis.

The European Union lifted viHow much is Novak Đoković a controversial if tennis players were sa requirements for Serbia a year product of Serbian sports, Serbian brains, expertise, patience and care- given the symbolic status of special and a half ago and diplomatic passfully planned investments? Little, ambassadors like those in UNICEF ports don’t hold as much value as they used to. It would be as effecvery little. Just like any other tennis tive and less controversial if tennis players were given the player that has made it to the top of the tennis world, Novak symbolic status of special ambassadors like those in UNICEF. owes his success to his talent and work coupled with ambiThe aforementioned minister was appointed as the Chairman tion and the financial standing of his parents who invested in of the Association of Tennis Professionals of Serbia on 20th May their kids by sending them to far away tennis academies which which would be something to be commended if it weren’t for the is something that the state should have done. In the former fact that this is an organisation that is mostly made up of the Yugoslavia and today’s Serbia tennis has always been treatpeople who failed to have the legally appointed management of ed as a rich man’s sport. Clubs were few and far between and the Tennis Association of Serbia, with Slobodan Živojinović at its with bad conditions, including the weather, there were few tenhelm, ‘dethroned’. If the competencies of the two organisations nis courts and even fewer tennis coaches. These coaches were are precisely defined and if there is enough good-will between very overworked as there were so many children who wanted them to cooperate, which I seriously doubt, then there will be no to play tennis but the clubs could not take them all. problems since Serbian tennis will only benefit from such a situThere is a chance that something will change for better in ation. If the opposite happens, and they consider themselves as the future since during the Davis Cup finals, the Serbian Tennis rivals with a high level of personal animosity, that will be a douAssociation and the Ministry of Youth and Sports (www.mos. ble fault on the opponent’s set point.

■ signed an agreement on constructing a tennis acadgov.rs)

invested in their kids by sending them to far-

W

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interview MILORAD DODIK, PRESIDENT OF THE REPUBLIC OF SRPSKA

Capital Move Following the agreement reached with Ms. Ashton, the Republic of Srpska has proven itself as a valid partner and interlocutor. With this agreement, the radical segment of the international community that demanded sanctions be imposed has been pushed to the sidelines. A referendum is still a possibility and it was even validated as can be seen in the statement “For now, a referendum is not necessary”

By Jelena AlEKSić

F

exclusive

ollowing the decision made by the Republic of Srpska National Parliament to hold a referendum concerning the judiciary in Bosnia and Herzegovina, the atmosphere in Bosnia became quite heated. The High International Representative, Valentin Inzko, described the situation as the worst since the end of the civil war while the international community warned and threatened the Republic of Srpska with sanctions due to the decision. What was the President of the Republic of Srpska, Milorad Dodik, doing while all of this was taking place? He claimed that the referendum was in line with the Dayton Agreement and that Valentin Inzko’s decisions would not be adhered to. In the meantime he met with the EU High Representative for Foreign Affairs and Security Policy, Catherine Ashton, and made a decision not to hold a referendum. In an interview for CorD magazine, Milorad Dodik talks about the

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results he expects from the Commission that will hold a dialogue about the judicial structure and whether the idea of the referendum has been abandoned. He also talks about Bosnia and Herzegovina’s future in Europe, Turkey’s influence in the Balkan area and just how sustainable the institutions established by the High Representative really are.

Turkey on the Balkans

■ What is your view of this region’s future in light of the tri-

lateral meeting of Bosnian, Serbian and Turkish officials?

- That was a protocol meeting that I wasn’t particularly impressed with. Such meetings are good for establishing communication channels and it would be good if they were dedicated to economic issues. The meeting had been prepared in Sarajevo and it was seen as a place where declarations and resolutions were supposed to be adopted. But, as we all saw, nothing came of the Istanbul Declaration.

One thing that can arouse suspicion is the role that Turkey has been playing, namely supporting one side in Bosnia and Herzegovina – the Bosniak side. Turkey is a large country, with a strong economy and it plays an important role in the region. However, Turkey is now entering a whole new, higher level which means that through supporting one side in Bosnia and Herzegovina, it wants to generate support on a regional level.

■ Mr. Dodik, what made you decide to change your decision about holding a referendum following your meeting with the EU High Representative for Foreign Affairs and Security Policy, Catherine Ashton?

- The reasons behind me making such decision was that the four important issues that we wanted to vote about in the referendum, and which pertain the way in which Bosnia and Herzegovina’s courts and prosecution operate, as imposed by the High Representative despite having no right to do so, are now included in the state’s agenda following Catherine Ashton’s (ec.euhave nothing against the Court and the Prosecution ropa.eu) visit. As you know, we have been voicing our Office, but the activities of these two institutions need concerns about the very visible problems in Bosnia to be re-defined in order for these two instances to and Herzegovina’s judiciary for years, especially in the rule based on the laws that are adopted at Bosnia and Bosnian Court and Prosecution Office which were not Herzegovina’s level, and not the laws that are enacted verified by the Constitution. This concern especially rein each individual entity. Our primary concern lies lates to the serious war crimes committed against Serwith the Republic of Srpska. bian civilians not being processed by the court, as well Following my meeting with Ms. Ashton, we as to the retroactive imachieved a result that plementation of laws, we expected to get afAs you know, we have been voicing our the two levels that exter the referendum, concerns about the very visible problems ist in the Court and the i.e. for the issues that relationships between in Bosnia and Herzegovina’s judiciary for we advocate to be inthe different levels in cluded in the agenda. years, especially in the Bosnian Court the judiciary. We have The EU High Repreand Prosecution Office which were not demanded on numersentative for Foreign ous occasions that the Policy Catherine Ashverified by the Constitution issues associated with ton, coming to Banja the way both the Bosnian Court and Prosecution OfLuka constitutes a great political success for us, so does fice function to be discussed and talked about and for the June meeting with the EU Enlargement Commissolutions that will please all sides to be found, but our sioner, Stefan Füle, who will discuss with us the Bosplight has fallen on deaf ears. The reason we decided nian judicial system, i.e. the topics that we had agreed to hold a referendum was the arrest of Jovo Divjak on at the aforementioned meeting. Things are moving in Vienna. Essentially, the main issue was processing in the right direction. Now, we are partners with the crimes committed on the Serbian population. Despite European Union. If we had held the referendum, and what some people claim, the Republic of Srpska wants Europe failed to react or to understand the issues that a person who commits any crime to face a court rather we had voiced our concerns over, then we would have than enjoy protection. The Republic of Srpska wanted to look for a partner again and who knows whether we institutions to be more engaged in legally processing would get Europe for a partner. Even Europe decided crimes committed against Serbs. Let me say that we to react in regards to our carefully chosen issues. anti-Dayton Europe did think of the referendum as going off in the wrong direction, but has never branded it as being ‘anti-Dayton’.

ohR OHR should have been closed down many years ago and the position of the High Representative terminated.

Meeting in June The EU Enlargement Commissioner, Stefan Füle, is coming to Banja Luka in early June and I am eager to talk to him. cordeditorial@cma.rs

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■ At the meeting with Ms. Ashton did you see eye-to■ Is the question of a referendum on the same topeye on whether the referendum constitutes a breach ic now ‘water under the bridge’ or are you going to of the Dayton Agreement, which is what Valentin Inre-launch it at a certain stage depending on how the zko claims, or maybe other arguments prevailed?

Commission performs?

- Europe has never called this referendum anti-Dayton.

- Everybody should understand that the Republic of Those are the words of the High Representative whom Srpska did not give up on the referendum as its demowe are calling upon to give us a concrete example as to cratic right all together, but we do think that, at this how we are breaching the Dayton Agreement. Europe point, and after reaching an agreement with Ms. Ashdid think of the referendum ton who took on board our obToday, Bosnia and Herzegovina is jections about the work done as going off in the wrong direction, but has never brand- a legally violated country thanks by the Court and Prosecution ed it as being ‘anti-Dayton’. to be discussed in June, the to the High Representative referendum is not required for now. We were not stripped of the right to hold a referendum, since that is our constitutional right. However, if we have managed to attain our goal without having a referendum, holding one under the current conditions would be a needless act of defiance and devaluation of the oldest democratic right.

■ Some believe that by reaching this agreement you have actually capitulated while others believe that your position and Banja Luka’s position in relation to the EU is even more solid now. What do you think?

- We have been validated for being right when we indicated that there were insufficiencies in the functioning of Bosnia ■ One of the issues that you and Herzegovina’s Court and Everybody should understand have reached an agreement Prosecution. The truth is that on is that the EU will form that the Republic of Srpska did we have made a huge leap fora Commission that will be ward since we have been given not give up on the referendum as in charge of talks about rean additional affirmation of us structuring the judicial insti- its democratic right all together being a legal entity. Now, evetutions in Bosnia and Herzerybody knows what the Regovina. What do you expect the Commission to do public of Srpska wants. We want to affirm our rights in and have you set any deadlines? line with Annex 4 of the Dayton Agreement (www.ohr. int), i.e. that we, the Republic of Srpska, is a legitimate - I think that the Republic of Srpska has made signifientity in all processes, an entity that ought to be concant progress in terms of its position in talks and havsulted and be involved in the decision making process. ing a structured dialogue about the judiciary reforms This practically means that the Republic of Srpska, i.e. in Bosnia, as well as about other reforms. This issue has its National Parliament or its citizens (using a referenbeen neglected for years and we had to bring it up to dum), should be included in decision making at the this level. The EU Enlargement Commissioner, Stefan federation level. The fact that the EU and the US are Füle, is coming to Banja Luka in early June and I am eaready to get involved in the dialogue about the judiciger to talk to him. The statements that Ms. Ashton and ary reform is a success in its own right. Following the I gave should be treated as binding in further activities agreement reached with Ms. Ashton, the Republic of carried out apropos this issue.

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Srpska has proven itself as a valid partner and interlocmeet with Ms. Ashton in Banja Luka and they had utor. With this agreement, the radical segment of the a myriad of excuses as to why they did not want the international community that demanded sanctions be meeting to take place. In the end, Ms. Ashton came imposed has been pushed to to Banja Luka, an agreement the sidelines. A referendum was reached and it did not is still a possibility and it was include the High Representeven validated as can be seen ative or his Office. in the statement “For now, The role that the High referendum is not necessary”.

Representative played during This has even been accepted his recent appearance in the by the European Union as beUN Security Council is dising perfectly legal. A referenhonourable at best. He told dum on any issue, based on many lies about the Republic the decisions made by the Reof Srpska and tried to deceive public of Srpska’s Parliament, the public about the relations is still a future possiand situation in Bosnia bility, but for now we and Herzegovina.

The Republic of Srpska is ready to meet don’t need it. Europe all the prerequisites for joining the EU in has invited us to par■ How far away is Bosthe following five years and in BIH this ticipate in resolving junia and Herzegovina diciary issues and we from EU membership? could last between 20 and 30 years have obliged. This cer- The Republic of Srptainly does make Banja Luka’s position firmer since ska is ready to meet all the prerequisites for joining the we have become a partner to the European Union.

EU in the following five years. If we are talking about Bosnia and Herzegovina, then I think that this could ■ You are contesting the Office of the High Representalast between 20 and 30 years.

■ tive (OHR), with Valentin Inzko currently at the helm, as well as the work done by several of his predecessors.

What is your solution to this problem and was that one of the topics you discussed with Ms. Ashton?

- The OHR should have been closed down many years ago and the position of the High Representative termiTHE BRITISH SCHOOL nated since they are part of the problem and not the OF BELGRADE solution in Bosnia and Herzegovina. This is also what I told Ms. Ashton, and this is what I have been conENROLLING NEW STUDENTS FOR SEPTEMBER stantly saying over the past few years. By using their Britannica educates children from age 3 to 18, teaching the UK political might instead of legal authority, high repreCurriculum. We give your children the best possible start in sentatives have imposed laws, including the Law on life and provide a great education for their successful future. the Court and Prosecution of Bosnia and Herzegovina We are accredited by Cambridge University, the Serbian Ministry enacted in 2000. Even the so-called Bonn Powers stipuof Education and the UK Government. Small classes, great late that he (the High Representative – author’s note) teachers and high standards give excellent results. Our cheerful and is not allowed to pass laws in Bosnia. Let me remind confident graduate students are succeeding all around the world! you that, according to Bosnia and Herzegovina’s ConWe have competitive School Fees, with monthly payments and Visa stitution, the Constitutional Court is the only federal card, and there are still some Scholarships available for September. judicial authority and this is what the Council of EuDo come and visit us - we have Open Days for new parents from rope’s Venice Commission (www.venice.coe.int) stated 12.00 to 16.00 on Saturday 4th June, and Saturday 11th June. in its 2005 report. That same Commission said that if Uzicka 21A, Tel: 011 367 1557 the OHR continued to operate in Bosnia and HerzeDedinje e-mail: britschl@eunet.rs 11040 Belgrade. website: www.britinterschool.com govina, that this would pose a problem. Today, Bosnia and Herzegovina is a legally violated country thanks to the High Representative.

It is worth mentioning that the High Representative and its Office were not invited to attend our meeting with Catherine Ashton. They were utterly taken by surprise that we were going to talk to Europe and

BRITANNICA

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interview VOJIN DIMITRIJEVIĆ, PROFESSOR OF INTERNATIONAL LAW AND DIRECTOR OF THE BELGRADE CENTRE FOR HUMAN RIGHTS

False asylum

SeeKeRS S

By Marija DAMJANOvić

erbia has been slapped on the wrist by the EU once again due to the growing number of false asylum seekers that are coming from Serbia into its member countries. In an interview for CorD magazine, Professor of International Law, Vojislav Dimi trijević, talks about what Serbian citizens can expect in the following period and what the chances are of them becoming ‘second grade citizens’ who will once again need visas to travel to the EU. Professor Dimitrijević also talks about the relationship between Serbia and the International Criminal Tribunal for Former Yugoslavia, negotiations between Belgrade and Priština and the visit of the Head of the Serbian negotiation team to Kosovo which caused an uproar amongst the Serbian public.

If you are not capable of controlling the fact that a substantial number of false asylum seekers come from your country and are going to do whatever they can to obtain residency, then we are going to be forced to carry out controls by ourselves by exercising stricter supervision of our state borders and reinstating visas, which is a kind of triage 12

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■ The issue of asylum seekers around the world and Europe is nothing new and it will never go away since people will always want to change their lives for the better when concerned by troubles. Is this problem being given so much attention now because of the West Balkan states or has it become more pronounced following the political unrest in Asia and North Africa?

- This is not the first time that the issue of asylum seekers has been presented so dramatically and on such a massive scale.

Back when these issues were regulated by international law, there was a huge tide of refugees from war-torn countries who were escaping persecution and instability. The collection of more reliable data began in the early 20th century so, in terms of Europe, there was a huge influx of refugees from Russia following the October Revolution and after World War II when people fled communist-run countries. The same goes for other continents, only the details differ, especially in Africa were state borders are much more permeable and there are people on both sides of the border who are tribal relatives.

Today, asylum issues in Europe have become secondary. Due to the huge differences in living standards, there is a great influx of people who don’t live in Europe wanting to move to developed European countries. In light of this, small migrations are being detected where people from poorer European

countries are moving to more affluent ones in search of a better life. All of this makes people quite nervous and incites xenophobia among right-wing political parties.

countries need immigrants from poorer states as they are willing to work for less money and do jobs that the domicile population are hesitant to take on.

■ In your opinion, how much has the economic downturn led to the issue of asylum seekers becoming one of the most frequently discussed topics in the EU? - The economic downturn has just exacerbated the problem with wealthier Europeans fearing that they will have to bear the cost of immigrants.

■ Are you surprised with the latest warnings coming from Brussels where the lifting of visas is now being questioned due to the large number of false asylum seekers coming to the EU from Serbia?

- I think that we need to define what constitutes ‘a false asylum seeker’. These are people The claims that authorities are doing who don’t have valid reasons ■ Some EU leaders such as to seek asylum, hence their everything that they can to locate British Prime Minister David asylum application is usually the Hague Tribunal indictees are Cameron and French Presirejected. Asylum has always dent Nicolas Sarkozy, are been a synonym for a sanctutrue, but they sound pretty hollow quite uncompromising when ary from persecution. Accordit comes to immigrant issues. Do you think this is due to ing to the 1951 Refugee Convention, which is the manual their countries’ internal policies or economic reasons? that the UN High Commissioner of Refugees bases his work - Both Great Britain and France have taken in a substantial on and has been called an example for many countries to number of immigrants, partly because they used to be colofollow, only persons who cannot or do not want to go back nial empires so people living in their former colonies, now to their native countries have a moral right to seek asylum independent countries, gravitated towards metropolitan since, if they return, they will be exposed to persecution areas. They knew the language and already had relatives based on their race, nationality, religious or political beliefs. and friends there who had arrived through regular imThis ‘measure of humanity’ is often expressed in terms of a migration channels. We should not forget that developed formal law. Every country refuses to grant asylum on other

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grounds, particularly on the grounds of an individual wanting to improve their financial status. People who falsely claim that they are victims of religious, racial or political persecution and who are looking to earn more money in other countries are rightly called ‘false asylum seekers’. There were more of such asylum seekers in the past and they had a better chance of succeeding then. In the former Yugoslavia, and later in Serbia, certain groups were even persecuted because of this but that is now a matter of the past. As of 2000, many countries have declared Serbia to be a safe country and the chances of people who are ‘escaping’ from Serbia to seek asylum elsewhere are pretty slim.

ourselves by exercising stricter supervision of our state borders and reinstating visas, which is a kind of triage.

■ As one of the measures devised to stop the problem from escalating further, state authorities have announced that they are going to change the Penal Law in order to be able to prosecute people who have organised groups of false asylum seekers. How do other countries deal with this problem?

- The state always has a difficult time with this since it cannot discriminate against people and their right to own a passport. The state can implement measures devised to reduce corruption and ■ Do you think the warning stop the issuing of passports to coming from the EU is serious people who don’t have proper and what reaction should we documents or are not Serbian brace ourselves for? citizens. Bearing in mind that the - This is a really strange situation. majority of false asylum seekers Serbia cannot refuse to issue a are not educated and pretty uninpassport to any of its citizens formed, and that they blindly beproviding that the particular lieve stories about West Europe citizen has not done anything being an El Dorado where you to disqualify themselves from can live nicely without working having a passport issued. A Serat all, these people have become bian citizen with a passport can The worst thing that can happen victims of individuals or groups is that minorities will be blamed that organise their transfer which travel freely to any country that accepts Serbian passports. Some for EU visas being reinstated and usually entails them being smugcountries require only a passgled across the border and having port to be shown, while others the candidacy bid being rejected to pay a lot of money. The indirequire a valid visa. If, after entering a certain foreign counviduals who smuggle immigrants across state borders can be try, a passport holder seeks asylum, the authorities in that criminally persecuted, as can police officers that issue passcountry can refuse to grant asylum if that person doesn’t ports on the basis of non-existent or forged documents. This fulfil certain criteria and they will subsequently deport is all a country can do without restricting the basic freedom him. Serbia is under obligation to take that person back of movement. An even more difficult thing to do is to create because we have signed the so-called readmission agreeconditions for people to have decent lives. ments which regulate this issue. However, if too many false asylum seekers come from a single country, carrying out ■ We are under the impression that, despite being warned relevant procedures, finding them temporary shelter and by the EU Integration Office, the government was quite carrying out deportation could be financially exhausting taken aback by this situation. Has the government talked for a country. In that case, Serbia is expected to implement to Brussels about this issue in the meantime and what measures in order to reduce the number of potential false has it failed to do in order to resolve the problem? asylum seekers. The logic behind this is the following – if - Judging by how many times high EU officials have come to you are not capable of controlling the fact that a substantial Serbia recently, it seems that the government has been talknumber of false asylum seekers come from your country ing to Brussels and searching for a solution. I am not familiar and are going to do whatever they can to obtain residency, with the details, but I am confident that the measures that I then we are going to be forced to carry out the control by have mentioned previously will lead to the reduction of the

Rules Every country refuses to grant asylum on other grounds, particularly on the grounds of an individual wanting to improve their financial status.

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Reality Serbia is torn between not recognising Kosovo’s independence and claiming that people who live in KiM are actually Serbian citizens.

Solution The state can implement measures devised to reduce corruption and stop the issuing of passports to people who don’t have proper documents.

number of such demands. Secondly, what Serbia needs to do has nothing to do with the way state bodies operate but with tolerating racism, xenophobia, homophobia and similar things that are present in our everyday communications and in the media. If you often hear messages that are hateful towards the Roma, Albanians and people of different skin colour, and you don’t punish the people who spread this hate, then this diminishes the image of Serbia as a safe country, and pushes the vulnerable groups into seeking asylum in order to escape the discriminatory environment they live in.

■ What can the system in this country do in order to rectify the situation in such a short period of time?

- I think that the measures implemented so far have yielded some results and that systematic change means not only changing the legislation, but also education, and the way the media and political parties behave.

■ Will the current situation lead to visas being reinstated or the deadline for Serbia being granted EU candidacy status being extended?

- I think that reinstating visas is not as easy as people want us to believe.

I also believe that if you want to delay Serbia’s EU bid then you should have more credible reasons, i.e. the reasons that our political elite should be dealing with, providing that it is not too late.

Europe could be interested in Serbia becoming a Union member regardless of the country’s flaws and to make sure that Serbia is not isolated further ■ Most of the false asylum seekers come from minority groups in Serbia who are requesting asylum in the EU for purely economic reasons.

Is this a reflection of human rights in Serbia?

- As I have already said, that speaks more about the lack of political culture and having ugly habits in the public sphere. Because of this, the worst thing that can happen is that minorities will be blamed for EU visas being reinstated and the candidacy bid being rejected.

■ On the other hand, quite a few false asylum seekers are coming from Kosovo, whose independence has been recognised by almost all EU members. What responsibility does Serbia have in this situation?

- Just as in any other matter, Serbia is torn between not recognising Kosovo’s independence and claiming that people who live in Kosovo and Metohija are actually Serbian citizens. Still, as far as I know, people in Kosovo, including Serbs, have far greater problems with being issued passports than other citizens. Those who have been issued with passports, have had them issued in Serbia proper, thanks to this fictitious idea that certain bodies that operate in Serbia are actually Kosovar authorities. This is where the misuse occurs.

■ What do you think of the Head of the Serbian negotiation team, Borislav Stefanović, going on an official visit to Priština? Could Stefanović’s visit and his subsequent meeting with Kosovo officials, in a room that was decorated with Serbian and Kosovar flags, be construed as an informal recognition of Kosovo’s independence?

- We shouldn’t view each meeting between officials from one state and representatives of unrecognised groups as a silent form of recognition.

In international law, silent recognition entails much bigger things like opening embassies, defining state borders etc.

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Ratko Mladić arrested

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t’s been 16 years since Ratko Mladić was indicted for war crimes and has become the most wanted Hague indictee at large from Serbia After spending almost ten years on the run, war crimes indictee Ratko Mladić will be tried at the International Criminal Tribunal for the Former Yugoslavia (www.icty.org). The former General of the Bosnian Serb forces was arrested following the coordinated action of the Serbian Security & Information Agency (BIA) (www. bia.gov.rs) and a police action team on 26th May. Radić was hiding in a village near the town of Zrenjanin, in a house owned by a relative. He was using the alias of Milorad Komadić.

“Following this arrest, we have removed one of the last hurdles for Serbia’s accession to the EU.” – President Boris Tadić “Following this arrest, we have removed one of the last hurdles for Serbia’s accession to the EU, which has been marred by the issue of war criminals at large.

Mladić’s arrest brings closure to a difficult historical period,” the Serbian President Boris Tadić said at a special press conference held immediately after the arrest.

Bearing in mind that Mladić will be extradited to The Hague, there is now only one war crime indictee still at large – Goran Hadžić.

“Serbian authorities will do everything in their power to arrest him (Hadžić),” Tadić promised adding that Serbia had demonstrated its willingness for full cooperation with the Hague Tribunal.

■ What is your comment on the arrest of one of The Hague’s most wanted indictees, Ratko Mladić?

- For Serbia this is one burden less to carry. I say ‘one’ because there are still numerous others. We need to demonstrate that Mladić’s arrest does not mean that we have buckled under the pressure from super-powers for yet another innocent Serb to be extradited, as many think. We need to clarify our standpoint on crimes and we should do that not only in court, but in the public sphere, amongst the political elite and the general population. We are going to have to deal not only with Mladić’s helpers, but also with hundreds of people that passionately followed him in his war crimes. We should bear in mind that there are other conditions for us joining the EU that are not easy to fulfil.

In terms of international context, this is a victory for people who are insisting that persons indicted for crimes be put on trial, instead of juggling between the two extremes – either for these persons to be dealt with or for everything to fall into oblivion. cordeditorial@cma.rs

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interview H.E. OSZKAR NIKOWITZ, AMBASSADOR OF HUNGARY TO SERBIA

historical

RehaBilitation I really expect significant improvement from reconciliation in every respect: a better acceptance at the grassroots level of Hungarians which will make them feel more comfortable. Do not misunderstand me, the legal framework is mostly acceptable for the minorities but an occasional ‘second-rate’ feeling on their part will only pass once this historical rehabilitation has taken place

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his month, Hungary completes its presidency over the European Union. The system of rotating presidency in the EU evokes in each presiding country the desire to leave a trace behind after its six-month term - something tangible to be remembered by, says the Ambassador of Hungary to Serbia, H.E. Oszkar Nikowitz, in an interview with CorD. He adds Serbia, that as a country known in the EU for long being an advocate of Serbia, Hungary understandably would have liked to foresee some spectacular steps forward for its neighbour in the South.

■ What is your opinion on Serbia’s progress toward EU membership over the last six months? What did Hungary focus on, in respect of Serbia, during its presidency?

- Realising at the outset that presidency means first and foremost managing current affairs and not having extra leverage to push forward one’s own agenda, we had to cut back on our ambitions and settle for what is realistic. That is, to make sure that Serbia’s integration is kept high on the agenda even without a spectacular benchmark to reach. We keep insisting on an EU position that looks for reasons for bringing the Western Balkans countries closer and not for reasons to keep them distant.

Serbia has certainly progressed a lot during these months but, again, one must not expect clean and spectacular results at every turn of a long process.

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There is a lot to do yet but it is clear that Serbia has moved closer in every area. The final objective requires laborious and meticulous work but it is very important to know that this work will bear fruit even before reaching the objective. Belgrade is to benefit from all the reforms that are carried out as they are necessary for the healthy functioning of the country anyway. Luckily, more and more people realise this in Serbia and those responsible for the integration are doing their best.

False asylum seekers

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s I have already said, false asylum seekers can really jeopardise the willingness to consider enlargement in some Western countries, therefore the problem has to be tackled immediately. The solution is not in setting up border patrols – these people do not cross the green border but use the legal crossing points. Hungarian customs police cannot do much: once a passenger has a valid passport and sufficient money there is no reason to refuse entry. Much can be expected now from the recent measures introduced in Serbia but I would say a less hypocritical asylum policy in some concerned Western countries could automatically minimise the risk of influx of these people.

■ What is the mood in the EU towards enlargement including the Western Balkan countries, particularly in respect of Serbia and it obtaining candidate status? How realistic is the announcement that Serbia could be given the date for the commencement of talks by the year end?

- The EU has repeatedly committed itself to supporting the much more than “bridges” - a worn down folkloric cliché used enlargement of the Western Balkans and has defined a set of overly by our communist governments). Serbs and Hungarians conditions to this effect. Most of the countries claim being in have just started to realise to what degree their interests cofavour but one cannot help from time to time detecting signs of incide. As neighbours, as peoples of similar mentality we are reluctance vis-à-vis the potential candidates from the Balkans. convinced that we share a common future in EU. This wave of reluctance usually runs parallel with the intensified internal and immigration problems of these European ■ When do you expect the truth about the innocent victims from countries themselves. False asylum seekers, for example, will the end of the World War II, which is one of the problematic isnot help at all reasing sympathy for the cause of enlargement. sues between our two countries, to finally be revealed? In your Western democracies tend to pay direct attention to the mood opinion, what are the prerequisites for solving these problems? of voters, and as voters are most concerned about security which - Yes, the only outstanding issue between our countries lies in the they consider to be at risk from asylum seekers, their leaders past: we have committed outrageous crimes against each other. will be less enthusiastic for the Let us be totally frank: genoSerbia has certainly progressed a lot time being. Serbia has to fulfill cides, during the second world the conditions, initially for its war. We Hungarians have acduring these months but again one must own interests, and for this reaknowledged, apologised for, son I am optimistic about it not expect clean and spectacular results paid indemnification and paid achieving candidate status at penitence for our part. at every turn of a long process the end of the year, but for the But to our regret on Serbian reasons quoted above I would not say it is realistic to expect the side (or formerly in Yugoslavia) no similar acknowledgement has announcement of the date for the commencement of talks. happened yet. Our fellow Hungarians would like to commemorate their relatives and brethren with dignity – but nowhere to do ■ The President of Hungary was in Serbia for a two-day visit at so openly, still bearing the brand of shame of a guilty nation. We the beginning of May and it was said then that relations between insist that the suppressed crime has to be revealed and the still the two countries are at their historical best. existing legal consequences remedied.

You are right, the relations between our countries are at their Luckily, there is now readiness on the highest level of the Serhistorical best. Which means they have never been so good but bian leadership to face the past. We have a deepest understandnot that they can not be better! What is new in our relations ing for the current government that has to go round to apologise is that both of our countries realise our destined interdependfor all the crimes its predecessors have committed against theirs ence, and both leaderships are sincerely determined to act in neighbours, and we commend them for their courage to do so. this spirit. Part of this interdependence is due to our national But nevertheless, we urge them to pay tribute to the Hungarian minorities in both countries that are to be treated now as rare victims soon, too. We are happy about having set up the joint treasures to mind and safeguard, as they are the carriers and committee of historians to investigate these crimes but the core promoters of the best values of both of our nations. (They are fact is already clear enough: a war crime did happen. No need

DanuBe StRategy As Serbia and Hungary has the longest Danube stretch we expect that most of the projects will be realised on our sections.

neW RelationS Both of our countries realise our destined interdependence, and both leaderships are sincerely determined to act in this spirit.

hungaRian PaSSPoRtS I will not give exact numbers but the applicants and those potentially interested amount to tens of thousands. cordeditorial@cma.rs

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to know all historic details to acknowledge and repent. I repeat: commemorating jointly the innocent victims leads to real reconciliation. Once relieved from this burden we can really open an entirely new page in our history ■ Have Serbia and Hungary, as neighbours, used this advantage to the fullest, primarily in regards to economic areas?

- Not yet, unfortunately. Working out modalities to exploit the potential in our vicinity, cultural ties, common interests, com-

■ How many Hungarians from Serbia have applied for a Hungarian passport - a process which was enabled by a special law enacted at the beginning of the year? What are the expectations and intentions of Hungarian authorities when it comes to giving dual citizenship to Serbian citizens of Hungarian origin who live outside their domicile country?

- I will not give exact numbers but the applicants and those potentially interested amount to tens of thousands. We have made it clear at the outset that the law aims firstly at emotionally restoring the self esteem and sense of identity of those Hungarians who were deprived of Hungarian citizenship by the whims of history.

For the first time in history we have begun to believe that being a firm and proud Hungarian or Serb (now maybe with a passport) is not an obstacle to being a loyal citizen in the other country.

■ How do you evaluate the cooperation between Hungary and Vojvodina, on the implementation of the Danube strategy and the Roma strategy? Could you please elaborate on these projects?

- The Danube strategy was adopted in April and set out the 11 fields of activity. This is a long term European project which the participating countries will cooperate in without setting up new institutions and without an earmarked budget. Cooperating countries can apply for EU structural funds and since Serbia and Hungary have the longest stretch of Danube we expect that most of the projects will be realised on our sections.

The coordinators need immediately start the shared work of identifying the actual programmes and here we expect the active participation of Vojvodina. In the action plan there are more than a hundred projects. The eight mon backgrounds, our minoriEU- and six non EU-countries I would not say it is realistic to expect ties etc. is underway. Our ecowill work out plans concernthe announcement of the date for the nomic cooperation is growing ing shipping potential, environcommencement of talks by year end but has not yet reached the mental threats, transport tasks level it was prior to the crisis. and other fields.

Serbia has its economic problems, Hungary has to focus on staIn regard to the Roma strategy, Serbia will be very interested bilising its economy but the two business communities are alwhen this is adopted in the European Union. The framework ready actively seeking ways of strengthening cooperation. We needs to coordinate the national Roma strategies the EU has beexpect a boost to both economies from cooperation in the Dangun to discuss and is about to adopt in June. The strategy will ube strategy, for example. concentrate on education, the creation of jobs and the social inclusion of the Roma.

■ Last year, Vojvodina experienced the smallest number of nationality-based incidents since 2000. Are you satisfied with the ■ Hungarian citizens have expressed a great deal of scepticism position of Hungarians in Serbia? toward the EU when your country became a member, feeling - In regards to the dwindling number of incidents, certainly, that the EU annulled their ‘national brands’. The support for and I pay my compliments to the minister of the interior for the European integration process amongst Serbian citizens is that. Yes, the ideal situation would be ‘zero incidents’ per year constantly falling. How do you explain this? but we all know it is impossible to achieve. I do not think I - People identify the promises connected to the EU with the governexaggerate the importance of that political gesture of reconciliment and since they experience a deterioration in living standards, ation I spoke above but I really expect significant improvement they lose faith in the reforms and laws required by the EU, and from reconciliation in every respect: a better acceptance at the eventually in the overall ‘EU business’ as well. That is why it is very grassroots level of Hungarians which will make them feel more important to explain that all the reforms, all the changes are needed comfortable. Do not misunderstand me, the legal framework is not because of the EU but for Serbia itself, regardless of the EU. The mostly acceptable for the minorities but an occasional ‘secondEU does not force anything on any country, it does not even require rate’ feeling on their part will only pass once this historical reuniformity. Uniform values and basic principles, yes, but they have habilitation has taken place. been the same for the civilised world for centuries.

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interview ZORAN STANKOVIĆ, MINISTER OF HEALTH

Serbia Without Doctors Unless we do something fast, we are going to be left without doctors and people will have to travel 100 kilometres to have a simple checkup. We need anaesthesiologists, radiologists, pathologists and neurologists and we are going to have to reduce the time needed to complete specialisation in these medical branches

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- It depends on which segment are we talking about. There are medical sectors that are doing excellently, like the Valjevo Health Centre which is a well-profiled institution that has good equipment to work with. Substantial amounts of money have been invested in this medical facility and the quality of medical services offered here is indeed high. The maternity unit in Loznica is also in great condition.

eople say that accepting the position of health minister near the end of the current government’s term is tan■ What are you, as a medical professional and a member of the tamount to suicide. Newly appointed Health Minister, public, particularly dissatisfied with?

Zoran Stanković, disagrees, although he does not expect - Well, primarily our budget, as if the budget were bigger, the sitit to be easy due to the time and financial limitations uation in our public health system would be much better. Very within the Ministry, as well as the fact that he has become a minlittle attention has been given to the fact that, in our country, 1.2 ister in the pre-election year. In an interview for CorD magazine, million people don’t have a regular income and the state pays he talks about the reform of 520 dinars annually on their In order to carry out the reconstruction the health system and discussbehalf on account of health es whether claims that most costs. For this amount of monof medical facilities and provide proper of the Serbian doctors living ey you can buy just a singleabroad are highly respected is equipment to work with, we need between dose of medicine. What about often just bragging rather than at least 10 and 20 billion euros, if not more paying for therapies, check-ups a reflection of the real situaand various treatments?! Still, tion. The Minister also touches upon corruption in the health we are doing our utmost to provide the same quality of medisystem, medical blunders, the outdated medical technology used cal services to everybody and we are not discriminating against in Serbia and the plans of the Ministry. anybody. So, how can we resolve so many problems in health care with so little money?! I am asked to make something out of ■ Could you give us a diagnosis of the Serbian health system now nothing. In America, for example, medical expenses for treating that you have been health minister for just over two months? certain diseases for people who are over 60 or 65 years of age are

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not covered if they don’t have a health insurance. The state does not pay for their dialysis, heart surgery, organ transplatation and similar interventions. In our country, these medical services are covered by medical insurance.

■ Are you going to change that?

- I am not the one to make such decisions; the people who are above me should do that. We are in charge of coming up with a proposal as to how we should carry out health reform.

■ Is the example that you have mentioned earlier going to be a format that you will base reforms on? Should we have a health system in Serbia where health care is provided in accordance with a patient’s financial status?

- In the U.S., for example, the total annual health care costs per capita are $7,700, and if an operation costs $40,000, you are covered by insurance to the tune of $20,000. You need to pay the rest or you won’t be eligible for a medical treatment. In our country, money is not taken into account, and we are providing health services to the best of our abilities to everybody, regardless of their financial situation.

Relationship with The Hague I am currently providing an expert opinion in the case of Radovan Karadžić. I am working on the material that pertains to the legal and medical analysis of events that took place when he was indicted. I have had a meeting recently with a defence lawyer who represents Milan Lukić from Višegrad and I am also helping people who have been indicted by the Tribunal, in my capacity as an expert witness.

had a meeting recently, on behalf of the Ministry of Health, with the families of the people who have died due to medical errors and whose cases are pending in the relevant institutions.

As a ministry, we have designated a patient lawyer who will cooperate with us on a regular basis. We have also reached an agreement with the Justice Minister for these cases to be considered a priority bearing in mind that they are the source of many ambiguities and are quite upsetting to people. We have also asked professional bodies to allow the time needed for carrying out expert investigations and for this time not to exceed 90 days, i.e. ideally 60 days.

■ State elections are just around the corner and time is running ■ When is this agreement going to be implemented? out for you to make major reforms.

- The law that is currently being prepared and will soon be in- We are not planning on carrying out large-scale reforms. If we cluded in the accordant legal procedures, is supposed to deal were to make big cuts in this, with these issues. Afterwards, I am quite sure that many people would pre-election year, we wouldn’t everybody involved in provhave enough time for our pro- be disappointed if we were to release the ing that medical blunders have posals to go through the relcaused a patient’s death ought evant legal procedures. Hence, information as to how many of our doctors to adhere to the established we have decided to stick to timeframe so that these cases are actually wanted abroad our 2011 activity plan that was don’t take years finalise. devised by my predecessor and we are concentrating more on putting out small fires. In the meantime, we are going to prepare ■ You have mentioned a mismatch between the laws that reguthe terrain and proposals for amendments to the relevant laws. late health care. What exactly are you referring to?

- The Law on Capitation is virtually unenforceable as it is not mod■ What is your view of medical blunders and how they are erated against the Law on Salaries in the Public Sector. This has to handled? be changed. We want to join the EU yet our technology levels, due - Proving that a medical blunder did actually occur is a long and to the economic sanctions and wars, is below acceptable. painstaking process that requires time, objectivity and impartiality. Recently everything has been very uncertain. Statements ■ What about the money from donations which, since 2000, have been made about medical blunders by people who blamed has been mostly spent on health care? doctors for their loved ones dying and by various other people - I have already asked for detailed financial reports about the doand these statements have often had nothing to do with reality. nations spent on health care as people are talking about billions that have gone missing. I don’t agree with this 100 percent, but I ■ And what do you think of this situation? don’t have a need to hide the reasons regarding why I want to see - I am not happy about these processes taking place, hence we this report, which I plan to share with the wider public.

aDMiniStRation Eight to 14 percent of people should work in administration and, in our case that percentage varies between 21 and 27 percent.

DonationS I have already asked for detailed financial reports about donations spent on health care since people are talking about billions that have gone missing.

SalaRieS If there is a person who can find money to raise salaries in health care by 20 percent, I will be more than happy to trade places with that person. cordeditorial@cma.rs

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■ Is it true that our doctors are experts in their profession?

- People think more highly of our work than is realistic. When somebody claims that we have globally renowned experts and a high standard of hospitals, such claims should be seriously reassessed. People who are inclined toward self-promotion and are usually the heads of certain institutions, often make such statements. Let’s think back to how many foreign citizens have come to our country for medical treatment?! How many of our doctors have been invited to go abroad to perform surgeries or any other medical interventions in line with their medical knowledge. Our task is to make sure that people are properly informed about this, once and for all. I would be very happy if out of 50,000 doctors at least 5,000 can be called globally renowned, but I am afraid that this number is much lower. I am quite sure that many people would be disappointed if we were to release the information as to how many of our doctors are actually wanted abroad, and that is something that we intend to do.

more. In terms of time, the rule of the thumb is that you need as many years to renew something as you have been lagging behind the rest of the world. And if we take into consideration the economic sanctions and wars that we had to endure, than we are talking about decades. Whoever thinks that with 260 euros per capita, which is how much is allocated to the health sector in the budget, we can cover all medical expenses, that person is very much mistaken. We need a lot more money for that. We already know that we are not going to be able to finish the reconstruction of clinics in Belgrade, Novi Sad, Niš and Kragujevac by 2012. We can build the structure, but we cannot buy the equipment with the amount of money that we have at our disposal.

■ You are gearing for redundancies. How will you deal with dissatisfaction of the people that you plan to lay off?

- Global health standards stipulate that eight to 14 percent of people should work in administration and, in our case that percentage varies between 21 and 27. We ■ Why don’t you do that now? need to reduce the number of ad- I think that it is important to reministrative workers despite the veal this information once we fact that many of them are We have reached an agreement with the establish the actual situation going to be disgruntled about Justice Minister for cases of medical and ascertain who really is a losing their jobs at this particuskilled doctor who is wanted lar time. On the other hand, I blunders to be considered priority abroad. We also need to figure can see the resolve in medical out how to keep such doctors here. We need to offer this person workers for this issue to be tackled as soon as possible, but decent living and working conditions in order to stop him or her the state doesn’t have enough money to cover severance pays from leaving the country. and social programmes for the workers that will be laid off.

So, this is not an easy situation by any means, and we need to ■ What is the Ministry’s next step? deal with it. There are no quick and painless solutions in the - We urgently need to make a decision as to how to reduce the system or in our country, especially if we are talking about time that doctors have to wait to qualify for specialisation bearemployment and living standards. If there is a person who ing in mind the deficit of medical workers in the country. We can find money to raise salaries in health care by 20 percent, need anaesthesiologists, radiologists, pathologists and neuroloI will be more than happy to trade places with them. There is gists hence we are going to have to shorten the time required to no overnight solution to this problem. complete specialisation in these medical branches. If we don’t do this, we are not going to have any doctors to treat us. For exam■ One of the topics often discussed is the corruption in our ple, in Jagodina, there will be no neurologists in a year or two health system. Can you eradicate corruption in a month or two? and, if that happens, people will have to travel 100 kilometres or - I will certainly work on that, but even developed countries are more in order to have a check-up. I think that this is an urgent fighting corruption, and there is no country where corruption problem which needs to be swiftly dealt with. has been absolutely eradicated. What we can do is to monitor budget revenue and expenditure that needs to be based on leg■ You have mentioned that the medical equipment in Serbia is islation. Well, that’s what we are doing now, but that is not the mostly obsolete and buying new equipment costs a lot of mononly thing we are doing. The way you fight corruption depends ey. How much time and money do we need in order to reach on what kind of corruption you are talking about. There is soEuropean standards in this area? called system corruption which is usually found in large-scale - My rough estimate is that in order to carry out the reconstrucprojects like the reconstruction of medical facilities, purchasing tion of medical facilities and provide proper equipment to work equipment, medicine and so on. Another area where corruption with, we need at least between 10 and 20 billion euros, if not rears its ugly head is in professional development.

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interview NENAD POPOVIĆ, DEPUTY PRESIDENT OF THE DEMOCRATIC PARTY OF SERBIA (DSS) AND PRESIDENT OF ABS ELECTRO

DSS Will go it alone At this moment, DSS members want to participate in elections independently of any other party. Despite our resolve, we do have good communications with the Serbian Progressive Party and we talk to them about all issues that are of crucial importance for Serbia

By Marija DAMJANOvić Photos: Marijana ŠAPONJić

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t the beginning of his interview with CorD, one of the staunchest critics of the government’s economic policy and president of ABS Electro, Nenad Popović, talks about the five biggest problems that the people of Serbia have been facing with unemployment being the most prevalent, followed by illiquidity, the economy coming to a standstill, low living standards, growing state debt and the lack of foreign investments.

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■ In short, what you would do in order to resolve these five problems?

The Democratic Party of Serbia’s economic programme stipulates that in the next two years the state should secure four to five billion euros worth of capital investments in the following branches – the construction industry, agriculture, infrastructure and energy.

The money would come from the loan granted by the Russian Federation which has already granted similar loans to Iceland, Belarus, Ukraine and Kyrgyzstan. Our opinion is that the loan is not expensive if it is invested in the development of the domestic economy, and this is where we differ from the current government who obtained three billion euros worth of loans only to spend the money on current expenditure. The illiquidity problem can be resolved if the loans are granted via the Development Fund under conditions that are more flexible than those in commercial banks. We can attract investments by establishing industrial zones in undeveloped municipalities in Serbia where investors could directly invest in production and tourism and, by doing so, would be exempt from paying all taxes except VAT. Speaking of reducing the foreign trade deficit, our party is proposing measures for increasing exports to Russia and establishing a Serbian-Russian export bank.

■ What is your comment on the fact that most of the to certain MPs using other MPs voting cards in Parliamoney gained through the privatisation of large enment. The Democratic Party of Serbia wants every perterprises has been spent on improving the living standson who has mis-used his or her powers to be prosecutards of Serbian citizens instead of capital investments, ed regardless of which party that person belongs to. In which was something that the previous government regards to setting the U.S. Embassy on fire following the with Vojislav Koštunica on its helm, also did? protest rally against Kosovo’s independence, I would - During Vojislav Koštunica’s government, we had anlike to point out that this was utterly inexcusable and nual GDP growth of 7.5 percent and, for the first time should be condemned. The persons who did this are ever, we had a budget surplus of 500 million euros. The on trial. It is quite interesting to note that the DSS was entire debt of 1.4 billion euros towards the IMF was blamed for this barbaric act although almost all political settled, and the average salary was 25 percent higher parties participated in organising the rally. A high Demthan today’s. I would also like to mention that, in 2005, ocratic Party official and the former Belgrade Mayor, the World Bank declared Serbia as being the country Zoran Alimpić also rallied together with the protesters. with the fastest conducted reforms out of 155 counI would like to reiterate – setting the embassy on fire is tries, while the report on transition, as compiled by the a serious controversial cases and a barbaric act, but the EBRD, said that Serbia was the regional leader with the DSS was not directly responsible for it. biggest economic growth in 2004. According to the report written by PricewaterhouseCoopers in 2008, Serbia ■ It seems that despite great efforts and much fundwas the third most attractive country for investments ing, the government of Vojislav Koštunica failed to among emerging counmake any progress in Holding the state and local elections tries. It is such a pity terms of the Serbian that we have managed issue in Kosovo. Now, separately would be much more to lose these rankings in the DSS is the biggest expensive for Serbia and irresponsible at the last three years. critic of the governa time when we are still suffering from the ment’s policy toward ■ At the time that VoKosovo. Don’t you economic downturn jislav Koštunica was think that the governprime minister there were several large controversial ment, whose members were predominantly from the cases both in the country (mainly of an economic naDSS, should bear some of the responsibility for the ture) and in foreign policy such as the setting of the current state of Serbia’s affairs in Kosovo?

U.S. Embassy in Belgrade on fire.

- Let me illustrate how much the DSS has done for Serbs - There hasn’t been a government in Serbia, between living in Kosovo by saying that the DSS has won the re2000 and today, that hasn’t had to deal with various cent local elections in Kosovo despite not being included controversial cases. However, each Serbian citizen will in the current Serbian government. People in Kosovo will tell you that the number of controversial cases that never forget what our party did for them. I would also erupted during the time that Vojislav Koštunica was like to say that, at the time when Vojislav Koštunica was the prime minister was the lowest on record. I would the prime minister, the telecommunications networks like to remind you of the scandals that have rocked the of Mobile Telephony of Serbia and Telenor were fully current government – like paying $1 million for Milaoperational in Kosovo which enabled almost all Serbs din Kovačević (accused of beating up U.S. student Bryan and Albanians living there to use their mobile phones Steinhauer – author’s note), finding out that the heads without interruption. Also, despite attempts to disrupt of public enterprises were determining how high their their work, branches of Electric Power Industry of Serbia bonuses were going to be, and the scandal with the judi(EPS) and the Serbian Railways operated just fine. People ciary reform that even caught the attention of European who had Serbian IDs were not discriminated against as institutions etc. I would like to remind you that another they are today for having a Serbian passport. The most government, ruled by the Democratic Party and with important thing is that we have never made any moves Zoran Živković as the prime minister, was replaced due that could be construed as formal or informal recogniRePlaCeaBility the principle of replaceability is the key issue and one of the main postulates advocated by our party.

PoSt eleCtionS i am quite confident that, following the elections, the new government will be made of entirely different people.

DeCentRaliSation it is very important for the seats of decision making to be as close to ordinary citizens as possible. cordeditorial@cma.rs

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tion of the false state of Kosovo. The same cannot be said for this government which exercises the policy of ‘creeping’ recognition of Kosovo’s independence.

■ The fact remains that, following the political upheaval of the 5th of October, the government of Vojislav Koštunica reinstated the system where politi-

remind you that during Koštunica’s reign as prime minister, Telekom Serbia underwent regional expansion, while the current government is trying to sell the company. On the other hand, we should not overlook the fact that our government was a so-called coalition government and that other parties also made suggestions as to appointing political officials as managers in public enterprises. The problem with Serbia today is not what person you are going to appoint to which function, but the fact that if that person fails to perform, he or she remains in the position. The principle of replaceability is the key issue and one of the main postulates advocated by our party. The best example of this is Vojislav Kostunica who was the only politician that gave back his term in office to the people in 2008, when he realized that he could not implement the policies he advocated.

■ Preparations for elections are well underway. What is your view of the idea of provincial and local elections being held first, followed by the parliamentary elections?

- That just illustrates how fearful the parties in power are of the upcoming election results. The cians were allowed to idea that you have menI would like to reiterate – setting the be directors of Serbian tioned suits the governpublic enterprises. Do ing parties since, in that U.S. Embassy on fire is a serious you agree that this pracsituation, they would be incident and a barbaric act, but the tice, which is flourishing able to influence local these days, is one of the DSS was not directly responsible for it elections. How can somereasons why the Serbian body vote against the economy is in such bad shape? parties in power when they are in danger of losing their - Immediately after 5th October, Koštunica was not the jobs if they do? In the end, holding the state and local prime minister but was the President of the Federal Reelections separately would be much more expensive for public of Yugoslavia. The usual practice in other counSerbia and irresponsible at a time when we are still suftries is that the government gets to choose who is going fering from the economic downturn. to manage public companies after elections and that is nothing unusual. We, as the ruling party, did our utmost ■ What is your view of the initiative launched by the to appoint competent people to these functions. Most United Regions of Serbia which has been demanding of them were not even DSS members. I would like to decentralisation and changing the Law on Financing Local Self-Governments?

- The DSS is in favour of the genuine decentralisation of Free trade agreement the country which means that, in accordance with the Constitution, towns and local self-governments should ■ In your opinion, what should Serbia’s global economic policy be the basis for economic development. Genuine decenlook like bearing in mind the opportunities that stem from the tralisation also means that we should not form regions fact that Serbia is getting closer to EU membership, is a member to resemble dwarf states, but instead of regions, towns of CEFTA and has concluded a free trade agreement with Russia? and local self-governments ought to be the vehicles for - As a businessman I think that the best way would be to fulthe country’s decentralisation. It is very important for ly utilise the incentives that we have in trading with the Russian the seats of decision making to be as close to ordinary Federation and focus our export efforts toward the Russian market. citizens as possible and for most of the budget money Today, the entirety of Europe is eager to trade with Russia and, in to be spent locally. This government is allegedly in the future, Serbia could be an interesting destination for foreign infavour of decentralisation, yet the laws it enacts are vestors willing to manufacture their products here and then export pulling Serbia away from that concept. Following the those products duty free to a market of 250 million people.

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■ Your company’s operations are closely linked to Russia and you are one of the advocates of intensifying the level of economic collaboration with this country.

What should constitute the basis of our economic cooperation with Russia?

- To start with, I see our cooperation as a partnership between large Serbian and Russian state-owned companies particularly in respect of constructing important infrastructure in Serbia like the South Stream gas pipeline, railroads, building local gas grids etc.

We are the only country in Europe that has concluded a free trade agreement with Russia, but we are not using it to its full potential. Our proposal was for the Russian loan, amounting to $800 million, that was meant to be spent on infrastructure, to be spent on setting up a ■ Will the DSS participate in joint Russian-Serbian export elections by itself? bank. The two economies can - At this moment, DSS members cooperate in areas such as want to participate in elections energy, oil and gas, railway, independently from any other agriculture, the production party. Despite our resolve, we of electrical machinery and do have a good level of commutourism. Of course, there is nication with the Serthe construction inSpeaking of reducing the foreign trade bian Progressive Party dustry too. The bigand we talk to them gest infrastructure deficit, our party proposes measures about all issues that are projects are currently for increasing exports to Russia and of crucial importance being implemented for Serbia. We share establishing a Serbian-Russian export bank in Sochi where the the same opinions in 2014 Winter Olymmany matters and there are some issues that we don’t pics are going to be held. I think that Sochi is a good see eye-to-eye on. We are trying to ascertain just how far opportunity for our construction companies. apart our views are in regards to those issues. We are willing to cooperate with any political party that exercis■ You were the President of FC Partizan for a time and es a nationally responsible policy and which primarily you have also been very vocal about privatisation in thinks of the best interests of our country and its citizens sports. What is the situation in Serbian sports at the instead of the best interests of foreign governments. moment and what can we gain from privatising sporting clubs in the current economic atmosphere?

■ What do you think the post-election coalition in - The situation is very bad indeed mostly due to unreParliament will look like? solved property issues in sporting clubs. I would like to - I am quite confident that, following the elections, the new see these issues resolved as soon as possible, as well as government will be made of entirely different people since Serbian sporting clubs becoming more transparent. ■ people are hungry for change. I am also confident that the DSS will play an important role in that government. adoption of the latest Law on Budgets, local budget allocations have been reduced by 15 billion dinars. On the other hand, you have this judiciary reform which has led to local courts in smaller towns being abolished such as the oldest Serbian court which is located in Mionica and which has been in existence for the past 150 years. Why would a law graduate want to go back to live in Mionica where there are no courts whatsoever?

You don’t do that if you are advocating decentralisation. Our party has presented its local development programme which encompasses 21 towns and municipalities in Serbia. We have offered concrete solutions to economic problems and concrete measures to attract foreign investments and to revive the economy. This is the essence of decentralisation.

■ Do you think that there is a quite powerful ‘parallel government’ in Serbia that operates in absolute harmony despite being made up of people of different political backgrounds?

- I haven’t noticed that as yet and I cannot agree. I do think that there are quite powerful parallel governments in Brussels and Washington that sometimes influence the events in Serbia much more than the current Serbian government.

The bearer of this coupon will get a 10% discount on the purchase of one item during June and July.

Following the purchase, the vendor retains the coupon.

The following PANDORA concept shops are giving discounts: PANDORA, Delta City, Jurija Gagarina 16, Belgrade PANDORA, Kolarčeva 12, Belgrade www.pandora.net cordeditorial@cma.rs

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Tax Cuts

In the last two years, the state has not only increased some taxes but also introduced 20 new taxes, causing constant complaints amongst businessmen.

Obligations toward the state are listed by businessmen as one of the basic reasons for the increase of the unemployment rate in Serbia, which has risen to 20 per cent. This is why we asked businessmen and economists how they feel about the new measure suggested by the executive authorities which will reduce taxes and contributions on newly-employed workers’ salaries by 80 percent next year. The discount is applicable to employers who hire people under 30 and over 45 years of age.

We asked our interlocutors whether this employment stimulant will affect the hiring of new employees or should the unemployment rate be reduced by the permanent reduction of taxes and contributions on salaries?

Nebojša Atanacković, President of the Employers’ Union

Short-term Measures

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he measures introduced for the stimulation of employment are actually an extension of the ‘first chance’ programme, because it will enable certain benefits to employers and increase employment at least statistically, but in the long term, these measures will not solve the cause of the problem and that is the fact that successful companies in Serbia (those who have incomes) transfer these precious earnings to the state in the name of excessive taxes and contributions instead of hiring new people. That is why the Employers’ Union, with its suggestion of measures for the revival of business activities and faster development, has asked for a thorough tax reform and for a substantial reduction (30- 50 percent) of income taxes in the low-profit branches of the economy, as it is the case in BiH, Slovenia and other European countries. This way, an easier means of employment in all branches of the economy, where presumably 450,000 people are employed in the grey economy, will be enabled. All this was predicted under the government’s programme and will be overdue after three years if there are not some limitations on the amounts of local utility taxes, a thorough tax reform, cancellation of paying VAT in advance and the intro-

Only by easing the economy, supporting exports and agriculture, traffic, manufacturing industry and so on, can Serbia recover and rise economically and finance better employees’ salaries duction of numerous obligations which come from the implementation of European regulations into the economic sector. These are taxes on various funds, fees, local self-authority taxes, expenses for HACPP, OHSAS, and ISO standards and so on. We could hire new workers but prior to this, a thorough reform and primarily a reduction in the public sector, which is currently the biggest in Europe and hires 35 percent of all employees, are needed. Due to the public sector being this large and also due to there being 1.65 million retired people, 750,000 people on welfare and others, private companies which employ a mere 1,100,000 people can no longer sustain the burdens which finance all 28

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others via the RS budget and such an employment structure is unsustainable in the long-term. Serbia has already sold a part of its future by indebting itself abroad for the money it will have more difficulties to repay, and it is necessary to tell citizens the truth and to make the measures introduced courageous and concrete. Only by easing the

These measures will not solve the cause of the problem and that is the fact that successful companies in Serbia (those who have incomes) transfer these precious earnings to the state economy, supporting exports and the vital branches of economy- agriculture, traffic, tourism and catering, the manufacturing industry and so on, can Serbia recover and rise economically and finance better employees’ salaries from more realistic sources and thus increase the employment rate and the standards of living.

Paul Riley, Managing Director of Philip Morris in Serbia

Social Insurance System is Key

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he basis for calculating wage taxes and contributions is the amount of gross salary defined in the employment contract (gross salary consists of net salary, taxes and contributions payable by the employee). Therefore the reduction of the wage tax and contribution rates itself would not influence the overall labour costs for the employer, but would actually increase the amount of net salary paid to the employee. Overall labour cost reduction for the employer would occur only in cases when the employees’ net salary is fixed, but this would not be in accordance with the Labour Law. Therefore, from the perspective of large investors, such as Philip Morris, the reduction of those rates has no influence on the labour cost. By way of exception, if employees were to agree through a process of negotiation to ‘share’ a part of the gain with their employer, such a measure could have an effect on the reduction of costs.

Milan Knežević, President of the Association of Small and Medium companies

Annulment of Equal Rights

From a wider perspective, however, it is necessary to point out that the wage tax rate itself is not high (effectively it is below 12 percent). On the other hand, the contribution rates predominately influence the amount of the overall fiscal burden on salaries. However, a reduction in contribution rates would imply finding other sources of financing and therefore, an increase of some other taxes.

We Need Total Tax Reform

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he effects of the reduction of taxes and contributions on salaries on the employment rate depends on whether this reduction will lead to an increase in the net salaries of employees or to a reduction in employers’ total expenditure for workers’ salaries. Since it is presumed that the reduction of taxes on salaries will partially lead to the hiring of workers being cheaper for employers than is the case now, it seems that the tax reform which implies the total reduction of taxes and contribution on salaries could contribute to the reduction of unemployment. Besides, if the reduction of taxes and contributions on salaries is applied to all workers, not just newly-employed ones, it would make the costs of the labour force lower in general, which would have a positive effect on the price

The tax reform which implies the total reduction of taxes and contribution on salaries could contribute to the reduction of unemployment competitiveness of the Serbian economy, the increase of production aimed at exports as well as on the increase in the number of new work posts. However, the mentioned measure of the Serbian government is not general, but partial and temporary and that is why its effects are uncertain. There is a question on whether such a measure could lead to the long-term reduction of unemployment or whether employers will be forced/encouraged to let a portion of the newly-employed workers go after the period in which these benefits are applicable. We had such an experience with the First Chance programme, when a substantial number of trainees hired with the state subvention were not permanently employed in the companies they had worked for during the programme’s duration when the programme ended. The partial

If employees were to agree through a process of negotiation to ‘share’ a part of the gain with their employer, such a measure could have an effect on the reduction of costs

The partial character of these measures will make the salaries’ taxation system more complex and will create the opportunity for potential abuses by dishonest employers

In other words, although the initial conclusion is that the reduced price of labour should lead to an increased demand for it and therefore an increase of the overall employment rate; the final effects of such a measure significantly depend on the overall set of measures that will support it. It is our belief that the strategy for the development of the social insurance system is the key factor for the sustainable reduction of the fiscal burden on salaries, but unfortunately this has not yet been defined.

character of these measures, as well as different rules being applied to various categories of the newly-employed, will make the salaries’ taxation system more complex and will create the opportunity for potential abuses by dishonest employers.

When it comes to the effects of this measure on the grey economy, it seems that they will be rather limited. It would still be cheaper for employers who have not registered their employees so far to simply continue with that practice. cordeditorial@cma.rs

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funds for the efficient monitorflaw in ing of this programme because if the govthey did in fact have it, we would ernment’s not have 600,000 workers in the stimulative measures that grey economy.

Businessmen have suggesthave been announced is the fact they cancel ed to Minister Ćirić that salary taxes and contributions be rethe basic principle of equal rights duced by three percent for salain the market which is guaranries under 30,000 dinars, so that teed by the Constitution. The each legal entity who wishes Labour Act forbids age discrimito use this subvention can hire nation when hiring. It is illegal to only one workmake a group of Employers can er. In this way at employers privileged for not pay- now hire a worker least 50,000 workers could be eming taxes and confor a certain ployed and the intributions and thus period of time, justice which has creating disloythen not extend caused the real al competition for those who fulfil the work contract sector to have salaries twice as low their obligations in and use the as the public seca timely manner. subventions tor would be corEmployers can rected. The sysnow hire a worktem would begin functioning, iner for a certain period of time (a stead of the political and ‘showyear), then not extend the work business’ measures whose effects contract and use the subvencannot be predicted, let alone tions. The labour inspectorate precisely measured. does not have the capacities or

Saša Ranđelović, economist

interview JAMES NYE, VICE-CHAIRMAN OF EFT GROUP

First Modern Power utility in SEE Our flagship project is the development of the Stanari thermal power plant, which we are building adjacent to the said mine. The project is now entering its final phase and we expect the new state of the art 300 MW plant to be operational by the end of 2014

“E

FT is at an exciting threshold. Our company is set to become the first privately owned power utility in the region, developed not through privatisation of the state power sector, but through organic growth and green-field investment,” says James Nye, one of the founders of the EFT Group, in an interview for CorD.

viously very proud of this achievement. One of the more important reasons for this success is the unparalleled knowledge within EFT’s ranks of the complex intricacies of the regional electricity market. We have managed in good time to attract the best energy professionals in the region and this gives us an analytical edge at times of volatility.

We were thus able to anticipate the effects the collapse of the global financial system would have on the European

ing severe difficulties in servicing their debt as a result of economic downturn.

Is EFT troubled with the same issue?

- In short, no. Our growth model has been and is rather different to most companies operating in the region.

As I mentioned earlier, we have accumulated more than EUR 200 million of our own capital. Very early on we decided to keep the majority of profit within the company. That has been a prudent decision, as it now allows us to have a relatively small debt exposure and at the same time have a sound basis for investment.

The Serbian energy sector today is

■ How has the current economic characterised by a dominant and ■ Energy sector is very timesituation impacted your results? intensive and capital- intensive, inefficient state power monopoly in that it takes a lot of time and - We have managed to record a profit in each year since we started money to develop assets. It is rare trading electricity a decade ago. Last year and in turn the regional electricity marfor trading companies to make this step. we delivered over 26 Terawatt hours of ket. This enabled us to take up the right Why did you decide to do this? electricity in 22 countries and achieved a market positions at the right time. Sadly, - We started cross border electricity tradrecord turnover of EUR 1.3 billion. The we are not yet seeing any strong signs of ing in the region back in 2000, when such company’s equity as of January 2011 recovery in the region, so there are still activity became possible. EFT developed stands at EUR 208 million. Considering many challenges ahead of us. with the cross border electricity market, that this result has been achieved in a which today is incomparably more liqdeveloping market, burdened with vari■ We are witnessing the majority of the uid, transparent and competitive than ous constraints and volatility, we are obregion’s largest companies experiencten years ago. In the medium to long run 30

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this region is set to experience economic growth, while at the same time it has a growing energy deficit and abundant and unused energy resources. With the development of the electricity market, indeed the development of the whole region through its accession to the EU, investment in energy here will become increasingly attractive for the large western and eastern power companies. Looking in the long term, the choice we had was twofold – to remain solely a trading company seeking to maximise its profit, or to try to invest that profit and develop our own production assets. Even though it was a far more difficult route to take, we chose the latter.

We feel that is the only way we can maintain our place and position in the market with the arrival of the bigger market players.

over the mine some people were laughing at us, that we did not know what we got ourselves into. But, things turned out differently. We immediately settled all debts, invested in completely new machinery and brought in a whole new, professional management team. The response from the miners has been phenomenal. With their help we have modernised every single operation of the coal mine in record time, so that now it operates according to same standards as any mine in say Germany. This includes pre-

region. The government recognises this as one of the country’s competitive advantages and works hard to attract and enable investment. With the said EUR 100 million of investment in Bosnia and Herzegovina, we are the leading foreign investor in its energy sector. Our flagship project is the development of the Stanari thermal power plant, which we are building adjacent to the said mine. The project is now entering its final phase and we expect the new state of the art 300 MW plant to be operational by the end of 2014. This will be the first major thermal power unit to be built in the region in over twenty years. In addition to this we are developing a medium sized hydro unit on the river Neretva.

■ Why are there no major investments in the Serbian en■ There is a prevailing per- Our flagship project is the development ergy sector? ception that the region is still - From the perspective of a politically too unstable to be of the Stanari thermal power plant. The private investor in the energy able to attract major foreign sector, there are countries in project is now entering its final phase investment, that simmering the region which at this time national tensions remain offer a more attractive investa major problem. What is ment environment to Serbia. your experience as a major The much needed reform investor? process in the Serbian energy - I would say the relatively slow sector started brightly followpace of structural reform is a ing the democratic changes far bigger obstacle to attractin 2000, but then quickly fading investment than danger of ed from 2004 onwards. The renewed conflict in the region.

Serbian energy sector today We strongly believe this to be is characterised by a domithe case and have backed this view with cisely measured efficiency of the miners, nant and inefficient state power moover EUR 100 million of investment so quality of service, protection at work and nopoly, non-existence of the market far. The region has plenty to offer. Take protection of the environment… We creatplace, inadequate legal framework and our experience in Bosnia as an example. ed more than 200 new jobs in the process, excessive bureaucratic process, as well In 2005 we privatised the Stanari coal 460 miners now regularly receive a salary as an irrational pricing policy which mine in central Bosnia. This was a mine which is far above the national average. equally subsidises both the industry on the brink of collapse, located in an The mine is profitable, it is the single bigand the whole population. The cost of area ravaged by civil war. The mine had gest concessionary fees contributor to the such policy is the inability of the state stagnated during the 1990’s and became central government, and is also the bigpower company to develop normally overburdened with losses and debt in the gest local tax contributor. and lack of foreign investment. Such years after. It almost ceased production policy is not sustainable and will lead in 2004, its infrastructure and machinery ■ So far your investments have been foto higher price of energy in the long was out-dated and mostly non-functioncused in Bosnia and Herzegovina. Why run. We are now starting to see some al. People were not paid for months, so is it the case? steps in the right direction and can worker unrest and indiscipline became - Bosnia and Herzegovina has probonly hope that the reforms will conincessant. I remember when we took ably the largest energy potential in the tinue in the future.

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region MACEDONIA AMENDS CONSTITUTION

extradition of Criminals The amendment of the constitution establishes the carrying out of extraditions, accompanied by the signing of bilateral agreements with each country individually specifying the principles for the extraditions’ implementation, performed only by a court decision

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acedonia has amended its constitution to expand existing extradition provisions and to close a loophole that allowed convicted criminals to seek safe havens in the region based on dual citizenship.

“The amendment establishes the carrying out of extraditions, accompanied by the signing of bilateral agreements with each country individually specifying the principles for the extraditions’ implementation, performed only by a court decision,” Foreign Affairs Ministry spokesperson Borche Stamov told SETimes.

Shortly after adopting the changes, Macedonia’s police began the process of apprehending fugitives.

“International arrest warrants have been issued for 42 fugitives, who are being sought for aggravated theft, robbery, premeditated murder and fraud,” police spokesperson Ivo Kotevski told SETimes.

Most have sought to evade justice in neighbouring countries - Serbia, Bulgaria and Kosovo - but in other countries as well. To expedite the process, Macedonia initially signed bilateral agreements with Serbia, Croatia and Montenegro, Justice Ministry spokesperson Mirjana Ilijeva commented SETimes.

Justice Minister Mihajlo Manevski (www.justice.gov.mk) also met with his Ko-

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sovo counterpart, Hajredin Kuci (www. md-ks.org), and signed an agreement for mutual legal assistance, extradition and the transfer of convicted criminals.

Each signed agreement must specify the crimes which are subject to extradition, whether classified by name or a general clause, or a combination of the two.

“Macedonia has accepted implementing the EU’s European arrest warrant and is party to the European Con-

vention on Extradition for Southeast Europe, and signed its Third Additional Protocol,” SETimes was told by Foreign Affairs Ministry international law state counsellor, Goran Stevchevski.

However at times, countries do not co-operate for a variety of reasons and the process can become politicised.

“Extradition depends a great deal on the assessment of the competent authorities of which it is demanded,” Eu-

WESTERN BALKANS

Corruption

www.cordmagazine.com

Citizens of the Western Balkans view corruption as the third most important issue, after unemployment and poverty that their countries need to address, the UN Office on Drugs and Crime (UNODC) has said in a new study

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he report, “Corruption in the Western Balkans: Bribery as Experienced by the Population”, is based on a survey conducted last year amongst more than 28,000 people in Albania, Bosnia and Herzegovina (BiH), Croatia, Kosovo, Macedonia, Montenegro and Serbia. The main focus of the study, funded by the European Commission (EC), was on the actual experience of administrative corruption, rather than people’s perceptions.

According to the UNODC (www.unodc.org), “one in six respondents was exposed to some form of bribery with a public official in the 12 months before the survey.”

Cash payments were found to be the primary form of bribery in the region: two-thirds of all bribes were paid in cash last year. But there were big

ropean University criminal law professor George Slamkov commented to SETimes.

“If they consider that his rights will be violated, or he will be prosecuted for political reasons, then it is possible not to accept the demand for extradition,” Slamkov said.

The opposite can also be true, he added, referring to attaching conditions to handing over a convicted criminal for political or other gain.

“However, Euro-Atlantic integration presupposes mutual co-operation among states, and the latter enables extradition to other states for the purposes of carrying out justice,” Slamkov concluded.

Minister Manevski said Macedonia had taken a page from Croatia’s book, which amended its constitution in June 2010. Together with Serbia and Montenegro, Croatia has exchanged some of the most notorious criminals with dual citizenship.

MONTENEGRO

Population grows by 5,000

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here are 625,266 people living in Montenegro, according to preliminary results of the April 1st-15th census, published in May. This is 5,000 people more than in the previous census, conducted in 2003. According to the statistics, half of the population live in three of the 21 municipalities. The biggest concentration is in Podgorica: 187,085 people or 30 percent call it home. Final census results are expected by July 15th.

TURKEY AND ROMANIA

Fighting Drug trafficking, terrorism

Most criminals have sought to evade justice in neighbouring countries Serbia, Bulgaria and Kosovo - but in other countries as well Croatian Justice Ministry spokesperson, Vesna Dvoranic, told SETimes the Croatian amendments specified that extradition occurs according to a specific decision for extradition, or according to an agreement for the delivery of persons or EU ‘acquis communautaire’. Based on Croatia’s agreement with Serbia, Srecko Kalinic - convicted of the 2003 murder of Serbian Prime Minister Zoran Djindjic - was extradited to Serbia in August 2010. (Source SETimes) ■

differences among the countries.

In Albania, for instance, cash payments accounted for the vast majority of bribes, while the other types of bribery, such as the giving of food and drink, of valuables or other goods to a public officials were described as “rare exceptions”.

There were significant differences in the average amount of bribes paid in cash in the seven Western Balkan countries, ranging from 103 euros in Albania and 174 euros in Kosovo to 1,212 euros in Macedonia.

People in BiH had to pay 222 euros for a public service, while those in Serbia paid 349 euros, and those in Croatia and Montenegro - 410 euros and 480 euros, respectively.

Of those who admitted to have paid at least one bribe last year, 28 percent said they had done so to receive better treatment. As many respondents cited speeding up a procedure as the reason for this, while 16 percent said they resorted to it to avoid paying a fine; 12 percent said the money helped them finalise a procedure.

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urkey and Romania have agreed to ramp up cooperation in fighting terrorism and drug trafficking. Under the deal signed in Bucharest by representatives of the Turkish Justice Ministry and Romania’s DIICOT (www.diicot.ro), a department at the Justice Ministry specialising in organised crime, police officers and prosecutors from the two countries will set up joint investigations and exchange information. DIICOT said in a statement it will especially impact “the fight against cross-border drug smuggling through the Balkan route”.

GREECE

norway halts Financial aid

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orway has decided to suspend financial aid to debt-ridden Greece as Athens has failed to meet its obligations to receive the funds, the foreign ministry announced. Norway is not a member of the EU but is part of the European Economic Area (www.efta.int/eea/eeaagreement) that encompasses the 27 EU members, Iceland and Liechtenstein. Norway’s 30 million euro grant was intended for environmental and health projects.

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region TURKEY IMPROVES RANKING

Fast growing economy Turkey has emerged as the most competitive amongst the five South East European (SEE) countries in a new survey by the International Institute for Management Development (IMD) is based on the responses of a total of 4,000 executives.

This year, the United States and Hong Kong were given the best possible score of 100 points each, based on which the two tied in the pole position, ahead of third-placed Singapore. The other

places to 56th in the IMD’s new survey, a reflection of the country’s worsening debt and deficit problems.

As a result of this significant decline, Greece is now ranked lower than Turkey, Romania and Bulgaria. Among the fast-growing economy, Turkey SEE countries included in this year’s jumped nine places to 39th WCY, Greece is now ahead of Croatia, position in the leading Swisswhich has dropped two notches to 58th based business school’s annual since 2010.

World Competitiveness YearAside from Turkey, RomaAmong the SEE countries included book (WCY), which covers 59 nia is the only other SEE nation industrialised and emerging to have improved its ranking. in this year’s WCY, Greece is now economies this year. Turkey It moved up four places to 50th, ahead of Croatia came out well ahead of Romaahead of Slovenia, South Africa, nia, Bulgaria, Greece and Croatia, the Jordan and Argentina. only other countries from the region inBulgaria, which was ranked 53rd last cluded in the survey. year, slipped to 55th place, reflecting its The IMD (www.imd.org), which has lower rankings on each of the four basic been publishing its competitiveness factors. The country lost most ground on studies since 1989, analyses and ranks government efficiency, falling nine placcountries’ ability to create and maintain es to 41st on this individual category. It an environment in which enterprises also slipped five notches on infrastruccan compete on the basis of 331 criteture, to take 53rd place among the surria. The data the Lausanne-based instiveyed economies on this specific factor. tute compiles for its surveys Its worst scores, however, were for Turkey came out well ahead of is grouped into four main business efficiency, which placed it Romania, Bulgaria, Greece and categories: economic performonly two places from the bottom. ance, government efficiency, Croatia, the only other countries from “The world of competitiveness business efficiency and infrabecomes more national and is the region included in the survey structure, which are then each characterised by a greater self-relidivided into five sub-factors. countries in the top ten include Sweden, ance of countries,” said Stephane Garelli, Countries’ rankings are based on Switzerland, Taiwan, Canada, Qatar, head of the IMD’s World Competitivetheir overall scores of up to 100 points, Australia and Germany. ness Centre. “It increasingly emphasises two-thirds of which rests on statistiGreece, which ranked highest among re-industrialisation, exports, and a more cal data and the remaining one-third the SEE countries last year, slipped ten critical look at delocalisation.”

■

A

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Business Dialogue June 2011 - Business leAder's MeetinG Point

AtlAs GrouP

DUŠKO KNEŽEVIĆ, President of Atlas Group

Potential in Renewable Energy euroPeAn investMent BAnK

ANDREAS BEIKOS, Head of the Regional Office of the European Investment Bank for the Western Balkans

The largest Regional Financier fiscAl council

NIKOLA ALTIPARMAKOV, Member of the Fiscal Council

Capital investments Necessary

Boycott

Business Dialogue 01

Serbia’s president Boris Tadić boycotted the summit in Warsaw between central European leaders and U.S. President Barack Obama to protest the inclusion of Kosovo

02

WAlton internAtionAl

serBiAn MediA AssociAtion

Premium Recruitment

VAT Should be Abolished

Walton International Search Associates Ltd. (www.walton1.com) is a UK based HR Consulting agency founded in 2002. They have been present in South-East European countries for over seven years now. Walton International is specialised in the recruitment of senior positions, junior management/specialists and young talents on a regional and local level.

From their regional office in Belgrade, they have successfully managed recruitment projects for a wide range of sectors and disciplines, from FMCG, construction, pharmaceuticals, telecommunications, IT, professional and financial services to manufacturing, covering all functional disciplines from sales & marketing, HR, finance, IT, operations, production to quality control. At the moment their reference list includes companies such as Coca-Cola Hellenic Serbia, the branches of Philip Morris in Serbia and Montenegro, Holcim, Henkel, Actavis, Ericsson, Sony Ericsson, Alpine, PepsiCo, La Fantana, Grundfos, Adria Media, Tarkett etc.

Currently their portfolio includes the following services: selection and recruitment from executive search (top and senior management) to specialists and junior positions, an area in which Walton International has proven know-how of reaching the relevant candidates in the region (head hunting); psychometric testing and assessment, an area in which Walton International is licensed

by SHL for providing world-known business oriented SHL test batteries; career advisory/individual potential analysis; young talent/ graduate programmes; and outplacement which involves professional assistance with job seeking for displaced employees, decreasing the risk of negative legal action and enhancing public relations.

At the annual meeting held in Warsaw, the members of the European Newspaper Publishers Association (ENPA), unanimously adopted the decision on admission of the Serbian Media Association into the society. Congratulating the recipients Ivar Ruzdal ENPA President expressed his confidence that the “Serbian Media Association will be an active member of the European framework, which aims to provide better working conditions for newspaper publishers and to adequately and effectively represent their interests.” At this stage the Serbian Media Zoran Papić, Executive Director of Association will have the status of “obthe Media Association (left), Ivar server member” with the possibility of ac- Ruzdal, President of ENPA, Valdo Lehari Vice-president of ENPA, Alvin tive participation in the work of ENPA. Sold Representative of newspapers The main issue of this year’s sesAssociation of Luxembourg sion was devoted to taxes – PDA and VAT. The conclusion is that in most of the European countries taxes are still unacceptably high, with the recommendation that the VAT for the newspaper publishers should be completely eliminated or reduced to the lowest possible level. The ENPA General Assembly was attended by Zoran Papic Executive Director of the Media Association on behalf of the Governing Board of the Association.

Walton International’s reputation as a premier recruiter in Serbia is based on its proven record of integrity, business ethics, and professionalism

04

coMfort & luXurY

‘Progress through Technique’

Audi continues to set new standards and, once again, confirms the meaning of the well-known motto, ‘Progress through Technique’

The new Audi A6, exclusive sedan, features revolutionary tehnological solutions and represents a mixture of comfort and strength. Already acknowledged as a classic, the fundamental proportions of Audi’s sports saloon with its low-slung windows and coupe-like roofline now comes with even greater tension and dynamism. This sedan is equipped with innovative solutions in all aspects of technology. Sporting design and perfect ergonomics are the significant features that characterise the cabine. The body structure of the Audi A6 is extremely lightweight, solid and safe, and its interior is exceptionally comfortable and luxurious. The new Audi A6 comes to market with five types of engines - two petrol and three TDI. The motors of this new model boast the power of 130 kW (177 hp) to 220 kW (300 hp).

The range of safety equipment featured as standard in the new A6 is just as outstanding, with active safety benefiting from the latest generation of ESP including brake assist and Electronic Brake-force Distribution (EBD).

More information can be found at www.audi.rs.

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Serbian media associations unanimously admitted to the Society of European National Association of Newspaper Publishers

03

enerGY

Foreign Investor in Gas Network

The companies of Petrol and Srbijagas both signed a letter supporting business cooperation on the occasion of the formal commissioning of the gas pipeline in Pećinci

The agreement regarding the gas pipeline system that will supply the business zone of Šimanovci and populated places in Pećinci, was put into action in Pećinci.

Overall investment in the pipeline is worth five million euros. The high-pressure pipeline which runs to a length of 11 kilometres and has a capacity of 25,000 Sm3/hour was made according to the latest European standards, including remote control facilities.

On this occasion, Petrol and Srbijagas signed a letter of business cooperation, establishing a future partnership in supplying natural gas in Serbia and beyond. This is also a further expansion of Petrol’s businesses, solely owned by Petrol Gas Group – within the area of South-eastern Europe. Petrol is the first foreign company to invest their own capital in the construction of the gas pipeline system in Serbia, while the distribution of gas will be taken over by Rodgas a.d., which is 85 percent owned by Slovenian company Petrol.

“This act creates the conditions for our municipality to continue investing in well-equipped industrial zones which will attract even more investors and lower the unemployment rate,” said Sinisa Vukov, Mayor of Pećinci.

CEO of Petrol, Tomaz Berločnik said that the Petrol Group has proved yet again that Petrol is not only an oil but also an energy company, which will continue supplying the consumers in the Serbian market with all types of energy. “

fiscal Position

05

Currently Serbia has a relatively good fiscal position, we are not an over-indebted country and the Serbian budget deficit is under control —Dejan Šoškić, Governor of the National Bank of Serbia.

PirAeus BAnK

Vacation Loans

At the very beginning of this summer’s season, Piraeus Bank (www.piraeusbank.rs) has prepared the very attractive offer of vacation loans for the payment of tourism services from any travel agency which can provide an invoice

Placements & Postings APPointMents@cMA.rs

www.cordmagazine.com/corporate/appointments.html

Stefano Sannino, new Director-General of the European Union’s Directorate General for Enlargement

Piraeus Bank Beograd Branch in Takovska Street

Special benefits of these loans include stimulating interest rates, a fast and simple procedure that involves the granting of the application without fees, down payment or deposit or the obligation to have a payroll account at Piraeus Bank.

Vacation loans in local currency are granted in values from 25,000 to 350,000 dinars and with a repayment period of up to 36 months.

Interest rates range from the NBS two-week repo rate + five percent, while the effective interest rate is from 19.07 percent.

These loans indexed in euros are approved with an interest rate from 14.50 percent, the effective interest is from 16.01 percent, and the repayment period is from six months up to 36 months, with a maximum loan amount of 3,500 euros.

06

neW investMent

Forex in Serbia

FXLider is the first investment house which leads you directly into the Forex market

This company comes to the Serbian market as a member of the international Leader Group, launching their ex-Yugoslavia central office in Belgrade.

FXLider (www.fxlider.com) opens the door to the global financial markets and brings to Serbia the opportunity to invest and profit over the Internet, using world’s best trading platforms. The expert associates of FXLider, employed with the main office in Belgrade, provide clients at all levels of financial knowledge, with full support and are ready to answer to every investor request. They will also teach those wanting to “give it a try” in the world of stock market transactions, how to trade.

Professor Slobodan Slović, Senior advisor to the Leader Group and one of the Serbia’s foremost experts in Forex, who has spent almost two decades in international stock markets himself, said: “While talking to Leader Group I recognized the importance of their work and together we saw the potential of the Serbian and surrounding markets.” The idea of Serbian investors’ trading in Forex via the investment house located in Belgrade met with the approval of all the participants in Serbia’s economic sphere. “This new investment in trading with currency pairs, stocks of the world’s largest companies, bonds, goods and stock indexes, provides a profit opportunity which has not been seen in this market ever before,” said Professor Slović and added: “With the arrival of FXLider we finally get the equality in investment and become citizens of the global stock markets with a real possibilities of multiple investment turn-overs.”

Italian diplomat, Stefano Sannino, who has held important positions in Belgrade during his career, commences his latest role on 1st July, 2011. He is currently the Deputy Director-General. The Italian diplomat served as Deputy Head of Mission in the Italian Embassy to Belgrade from 1993 to 1995, and from 2001 to 2002 he was the Head of Mission of the Organisation for Security and Co-operation in Europe (OSCE) in the Federal Republic Yugoslavia. Mr. Sannino began his career in Belgrade in 2002 as a foreign affairs and trade advisor in the office of the then Commission President, Romano Prodi. From 2006 and 2008 he worked in Italian government in Mr. Prodi’s office, after which he returned to the Commission as the Latin America Director, and in 2009 he became Deputy Director-General in the External Affairs section. He came to the Directorate General for Enlargement in 2010 as Deputy Director.

vuk Jeremić, new President of the Union of Serbian Tennis Professionals At the founding assembly of the Association of Serbian Tennis Professionals (UTPS) on 20 May, the Serbian Foreign Minister, Vuk Jeremić, was elected as the inaugural president of this organisation. He has been working closely with tennis players since April this year when Serbia’s best players were presented with ‘diplomatic passports’, following his participation in a charity football match against leading tennis players. The new President of the UTPS was a guest of Novak Djoković’s last month in the VIP lounge during the final match at the Madrid Masters.

Darko Bajić, new President of the Board of Directors of the Serbian Film Centre (FCS)

Movie and TV director Darko Bajić was born in Belgrade in 1955. He graduated in 1982 with the feature film ‘Live Broadcast’. Nis television series ‘Gray Home’ won the Monte Carlo and Cinzano Termo awards in 1986, and his motion picture ‘Forgotten’ won two significant awards at the Rio de Janeiro festival in 1988: the Gran Prix for the female lead and male lead. In 1986, Mr. Bajić began working as a trainee-assistant at the Department for film and TV direction, he then became an assistant, then assistant lecturer, and has since been working as Associate Professor and Vice-Dean.

Ms. Stella Karl Cosic,

new General Manager of Sekopak

Stella holds a BA in Economy and has many years of extensive experience in all aspects of management and marketing. She came to Sekopak from the position of GM at Soko Štark. Her track record includes various senior management positions in several companies operating in the Balkans. Stella joined Sekopak in March 2011, and with her appointment, a new organisation structure has been implemented, which has led to some additional promotions. business dialogue

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Numbers

Business Dialogue

10

Half of what is known today, we did not know 10 years ago. The amount of knowledge in the world has doubled in the last 10 years. And it is said to be doubling again every 18 months.

—Dr. Donald E. Wetmore

atlas group Duško Knežević, President of Atlas Group

Former U.S. President Bill Clinton and Duško Knežević

Potential in Renewable Energy In the future we should pay attention to services and the green economy through investments in renewable energy sources. These sectors have strong investment potentials in the region By: Jelena

Aleksić

P

resident Clinton (www.clintonglobalinitiative.org) travelled in May to Montenegro at the invitation of Mr. Duško Knežević, President of Atlas Group, to deliver the keynote address at the Balkan Networking for Social Empowerment Conference, which was held with the aim of regional leaders demonstrating their willingness to cooperate and integrate, as well as to openly face current problems. Mr. Clinton’s appearance, in addition to the speeches given by prominent conference participants, was a media event that attracted a lot of attention in this part of Europe - comments, Duško Knežević, the President of Atlas Group, at the beginning of his interview with CorD. ■ We have not heard from you for a while; you have been spending a lot of time with your family in Cyprus. What occupies most of your time these days?

- Atlas Group (www.atlas-g.com) is a complex enterprise so there is

What we need first and foremost is a higher level of cooperation and integration in the region 40

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business dialogue

always enough to keep me busy, especially when the effects of the economic downturn are still very much being felt. On the other hand, as you comment, I have been trying to spend as much time as possible with my family, particularly now that some of my family members are moving to Florida for professional reasons. It is not easy to coordinate these two areas of my life, but I do try to find a balance and tend to my obligations on both sides.

■ You are continuing with construction of the Atlas Capital Centre which has cost you 90 million euros so far and you are continuing despite the economic crisis. When is this facility going to be completed?

- We started building the Atlas Capital Centre (www.atlascentar. com) back at the time of the peak of economic crisis which makes this facility even more valuable. Also, despite the downturn, we have managed to provide the funds needed for construction and we are currently putting the finishing touches on the apartments in the Centre. The Centre also has a top notch hotel with 135 rooms that will operate under a globally renowned hotel chain. We expect the apartments to be finished by mid-summer. We are also working on the interior design in-line with the requirements put forward by the people who will use the business facilities in the Centre. Our risk-taking has paid off and the worst option would have been if we’d stopped construction and waited for better times.

■ Has the sale of apartments commenced and what has progress been like in light of the current economic situation?

- Ever since we’ve started putting the finishing touches on, sales figures have increased, especially in terms of the apartments. Of course, the sales figures are important due to the overall construction costs. However we have been refraining from making any hasty moves since the entire project rests on the projected financing system.

The biggest interest is in commercial premises, but for now, we are only leasing them due to the fact that we want to be the ones managing the brand.

■ You are one of the proponents of ‘economic citizenship’.

What view do foreign investors and your foreign business partners have of this concept?

- Many countries in the world offer economic citizenship and I have been familiar with the concept for quite some time now.

Also, I was one of the first people to support its implementation. Having economic citizenship is one of the options for Montenegro to promote itself as a country open to investments.

Many of my business partners from Russia, China and South Asia contacted me to inquire about economic citizenship and investing in Montenegro.

The project is currently on hold and I sincerely hope that, following the moderation, a high level of transparency will be achieved which is in everybody’s best interest.

Best Neighbors According to the survey conducted by the Croatian Times, Croatia’s best neighbors are Montenegro (30.1%), followed by Hungary (19.4%), Italy (19.3%), Bosnia and Herzegovina (11.9%), Slovenia (10.2%) and Serbia (9.1%).

■ You have been working a lot on promoting Montenegro as a favourable location for investments. Recently, you’ve brought across several big investors from the United Arab Emirates. Could you tell us about the outcome of these activities?

- So far, Atlas Capital Centre has been the best and most visible result of our collaboration with the Emirates’ investors, led by Sheikh Hazza, a member of the Abu Dhabi royal family. Together with the investors from the Emirates, we won an international tender for construction of the Meljine complex.

We have promoted both Montenegro and the region in Dubai and Abu Dhabi where many investors have expressed their interest in investing in this part of the world.

Another result of our activities is the United Arab Emirates (UAE) opening its own embassy in Podgorica (www.uae-embassy.ae/Embassies/me), on a residential basis, and that this is the only embassy that the UAE has in the region. Also, thanks to our mediation, Montenegro has opened an economic representative office in Dubai.

So far, Atlas Capital Centre has been the best and most visible result of our collaboration with the Emirates’ investors

as their interest in projects in the region is picking up. This is very important since every single regional country depends on foreign investments.

I think that we can substantially influence the investment trends.

There is enough money going around the world and this money usually ends up in a country that has simplified business procedures and where the money is really wanted. The sooner we adapt our business systems, the sooner they will come. Everything else will lead to stagnation and marginalisation.

■ Atlas Group has grown to become a large company in terms of banking, financial services, insurance, real estate, production, commerce, media, education, culture and sports. What do you view as the priorities?

- Financial services, banking and real estate are the areas where Atlas

Carlos Slim and Duško Knežević

■ What are the plans of Atlas Group in terms of future investments in Montenegro and Serbia?

- We are going to start building the Expo Centre in the location of the Adriatic Fair in Budva. This large-scale project is being implemented together with our British business partners who are going to build a hotel there under the Windham Group brand. Negotiations are pending with several investors interested in the health and tourist facility in Meljine.

There are other interesting projects too like Kamenovo, Mogren Hill and Mimoza Cape on the border with Croatia but we are in no rush. These are extensive projects in quite unique locations. In Serbia, we own over 50,000 square metres of land near Airport City in Belgrade. We are currently drawing up projects for construction of a large business complex there. On the other hand, we have already embarked on the restructuring process and took out the financial segment of the group. Following the process, Atlas Capital Holding was established with headquarters in Cyprus. The company will operate in line with the EU regulation and will have a share in our financial institutions.

Also, we have been investing a lot in development, particularly in E-commerce and MIFID -regulated company Atlas Capital in Cyprus which has managed to position itself in the financial services market and investment banking.

■ Following a real investment boom in Montenegro, it seems that investment activities have died down a little. What is your view of the future investment tendencies in Montenegro and the region?

- I received encouraging news from potential investors and consultancies,

Igor Lukšić, Prime Minister of Montenegro (left), Duško Knežević and former U.S. President Bill Clinton

Group has a good international reputation. These are our priorities.

I also consider other projects very relevant, but in the case of some of them, we are not profit orientated.

We consider them more our contribution to society. I am referring to the Mediterranean University and Belgrade Banking Academy which have been established in order to educate young people, who are the future of this region, in line with the latest educational standards. We have built a water factory in a rather undeveloped northern area of Montenegro in order to hire people and use this region’s potentials to the fullest.

■ Which sectors and investment potentials in the region should we pay attention to?

- Definitely services and the green economy through investments in renewable energy sources. There are substantial funds for renewable energy resources that can attract investments in that sector. ■ business dialogue

Oleg Deripaska, Peter Munk and Duško Knežević

Winter Tourism

■ Montenegro and Serbia have huge potential in terms of winter tourism, yet this is a very underutilised sector.

- We don’t have to compare ourselves with traditionally successful ski centres in Austria or Switzerland. We ought to compete with Slovenia and Bulgaria which have many ski tourists and are earning quite a lot of money in the process. Regardless of the above, what we need first and foremost is a higher level of cooperation and integration in the region since that is the only way to be included in the European and global economic flows as respectable players.

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networking

Business Dialogue 01

“Unless you are networking, you will soon be not working.”

—Dr Denis Waitley.

02

telecoMMunicAtions

Threat to Carlos Slim

Carlos Slim, the world's richest man, is fighting to shore up his dominance of the Mexican telecoms market

The Mexican Supreme Court ruled that Mr. Slim’s America Movil, which trades as Telcel in Mexico, cannot continue to defy the country’s telecoms regulator, and must cut the prices it charges rival companies when calls connect to the Telcel network.

The Federal Telecommunications Commission, Cofetel, fined America Movil $1bn in April and told it to cut interconnection fees.

Consumers and businesses blame Telcel and its fixed-line telecoms sister company Telmex for Mexico having some of the highest telephone bills in the industrialized world, and Cofetel concluded after a four-year investigation that the America Movil companies do indeed abuse a dominant position in the market. (The Independent)

04

05

fAsHion

Capitalist Society

It is a fact that, in the West, we live in a capitalist society, but that does not mean that we cannot be guided by the idea of a social conscience in our work.

Yes, fashion design requires consumers to consume, but we can do our bit for society by running our companies in a socially responsible way, and by creating products that promote respect for social and environmental issues. There is also the possibility for power and influence to be a force for change.

Giorgio Armani, Fashion Designer

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sHoPPinG

Chinese Best Shoppers

The Chinese have topped the list of big spenders in France, according to a report

by Global Blue, an international couture shopping tourism website

Chinese tourists spend an average of 1,300 euros a day when shopping at spots like Louis Vuitton and Givenchy. China retail spending in France rose 60% in 2010 from 2009 levels, according to Global Blue.

Overall, tourist spending in France rose 35% in 2010 to 3 billion euros, with the Chinese spending 650 million euros.

France is the No. 1 destination in Europe for foreign brand-name shopaholics.

Rounding out the list was Russia, up 30% in France spending 220 million euros. And Brazil’s 56% increase in spending last year to around 100 million euros, the Shanghai Daily reported.

Brazilians are at it against this year already. Spending by Brazilians was up 53% in the first three months of this year, the biggest increase of all nationalities, according to Global Blue. Brazilians spent around 650 euros each while out shopping, and account for 6% of total tourist sales.

Chinese accounted for 16% of sales from tourists outside the European Union, followed by 10% for Russians.

(Forbes) business dialogue

MArKet

Samsung Overtakes Nokia Samsung Electronics Co Ltd rose to the No. 1 spot in the Western European cellphone market in the first-quarter of 2011, overtaking long-term market leader Nokia on its home turf, research firm IDC said Losing the No 1 position in the home market, where Nokia has been the dominating force since the 1990s, marks another setback for the struggling Finnish handset maker. Samsung’s sales rose 5 percent year-on-year in the region, with market share rising to 29 percent, while Nokia sales dropped 10 per-

03

cent, and its market share slipped to 28 percent.

“Nokia is one of the most recognized and appreciated brands in Europe, but Samsung was the one understanding the trends first and moving faster,” IDC analyst Francisco Jeronimo said in a statement.

(Reuters)

societY

Family Business

About 95 percent of German businesses have a family at their helm

Despite the globalized economic environment, Germany remains strikingly traditional in one respect.

Around 95 percent of the country’s businesses are family owned, or are controlled to a large degree by a family.

Some 2,700 of those companies turn over more than 50 million euros per year. They include renowned companies like BMW, Miele and other international players like Bahlsen and Dr. Oetker.

The German economy has relied on these companies for decades to provide domestic jobs, but international markets are becoming increasingly important to them.

Nine out of 10 large, family-operated German companies currently do business internationally. France is their biggest market, although that’s likely to change in the next three years, when China is expected to surpass France, the United States and Russia as Germany’s most significant export partner.

06

tourisM

Ryanair Threatens to Reduce Services in Spain

Michael O'Leary has written to the Spanish Minister for Industry and Tourism, Miguel Sebastián

Irish low-cost airline Ryanair has threatened the Spanish Government with reducing their number of routes and people employed in Spain unless 65 fines totaling 1.23 million €. issued against them are removed.

Last summer Ryanair overtook Iberia as the largest airline in Spain and ended the year with a 30% growth in passenger numbers at 22.89 million.

Currently Ryanair operates from 44 bases, offers more than 1,500 flights and forecast it will transport 73 million passengers this year, 30 million of them in Spain.

Global Markets

07

BANKING

I think there’s a lot of merit in an international economy and global markets, but they’re not sufficient because markets don’t look after social needs. —George Soros

08

LA Sues Deutsche Bank

Deutsche Bank has been hit by another lawsuit in the United States

The city of Los Angeles is suing Deutsche Bank for allegedly violating federal, state, and municipal laws by allowing hundreds of foreclosed homes to become rundown and illegally evicting tenants.

The lawsuit, filed by the office of City Attorney Carmen Trutanich, depicts the German lender as the city’s largest slumlord and seeks hundreds of millions of dollars in reimbursement for the city and compensation for hundreds of tenants. A separate lawsuit filed by the US Justice Department in New York federal district court said that MortgageIT, acquired

by Deutsche Bank in January 2007, insured 39,000 home loans with the Federal Housing Administration (FHA) in the decade to 2009. It said the mortgages were “recklessly� approved by the company in “blatant disregard� of whether the borrowers would be able to make payments on them.

Both the bank and MortgageIT “made substantial profits through (the) resale of these FHA-insured mortgages,� many of which later ended up in default, the complaint said.

Germany’s biggest bank has rejected the charges and pledged to mount a vigorous defence. (AFP)

09

Deloitte

Many More Millionaires by 2020

By the end of 2020, the number of affluent households that will cross the line into seven-figure status is expected to virtually double the ranks of millionaires in the United States, according to a study by the Deloitte Center for Financial Services The number of millionaires is forecast to rise 72.5% to 65.5 million worldwide by 2020 from about 38 million this year. In the United States, home to nearly half the world’s millionaires, the increase is expected to be even sharper: a 96.2% jump to 20.6 million. The estimates of household wealth are based both on financial assets such as stocks and bonds, and nonfinancial assets like primary residences and business ownership.

Worldwide, the value of assets held by millionaires is $92 trillion

FOR WINDOW AND DOOR MANUFACTURERS

Hi-Tech

Apple Releases New iMacs

MACO MULTI

The Apple Store was not available for a short time last month and fans know what that means: Apple has updated its range. This time, the shop returned with new iMacs, priced between â‚Ź830 to â‚Ź1,380 Euro. The latest Intel Core i5/i7 Sandy Bridge architecture has been included, as well as a HD camera and the new Thunderbolt port.

Whether the iMac is delivered with a quad-core Intel i5 processor or an iCore i7 processor is up to the customer.

10

TURN AND TILT&TURN FITTINGS

Netherland’s foreign affairs minister Uri Rosenthal is planning to cut spending on diplomatic travel, by shifting ambassadors and embassy staff to economy class on planes

At the moment, embassy officials and their families can travel first class once a year. Foreign ministry staff are also entitled to travel first class on long-distance journeys but they will be limited

MACO PROTECT

MACO EMOTION

MACO RAIL-SYSTEMS

MACO RUSTICO

DOOR LOCKS

SLIDING FITTINGS

Budget

Diplomats to Travel Economy Class

this year, and that figure is expected to more than double to $202 trillion in 2020. For U.S. millionaires, total wealth is also predicted to more than double, from $39 trillion today to $87 trillion by the end of the decade. “Economic growth is the big driver,� says Andrew Freeman, executive director of the Deloitte Center for Financial Services. “You have countries like China spawning off tens of millions of middle class into millionaires. The middle class, overall, are going to ride this long-term growth.�

(Daily Finance)

HANDLES

SHUTTER FITTINGS

MACO FITTINGS to economy class tickets.

The minister is also considering reducing the budgets embassies are given to house staff and to reduce ‘danger payments’ for people working in difficult areas.

A majority of MPs had already called on the minister to cut spending as part of his efforts to reduce the budget by tens of millions of euros.

(DutchNews.nl)

Product quality and innovation are our basic principles – customer care is our ideal

TECHNOLOGY IN MOTION Beo MACO d.o.o., Ă?Ă„Ć– Ă‡ÂşÂšĂ†Ă‡ĂŽÂšĂŽĂƒĂ ÂźĂŠĂ?Ă… Ë Ë Ć“ ʞʞʽ˅ʽ Â˝Ă‡ÂżĂŠÂšÂźĆ˜ ½ÅĂ?Æ

Ě?ˀ˅ʞ ʞʞ ĘżĘżË„ĘžË ËƒË€Ć“ Ě?ˀ˅ʞ ʞʞ ĘżĘžË„ËƒË ËƒË€ Ni MACO d.o.o, SediĹĄte, Ă?ĽΚÊ ĂŠĆ– Çʚƚ Âà ƟÂà š ʞʿʞšƓ ʞ˅ʽʽʽ Ă Ă‹

Ě?ˀ˅ʞ ʞ˅ Ë‚ĘžĘżË Ë Ë Ć“ Ě?ˀ˅ʞ ʞ˅ Ë‚ĘžĘżË Ë Ë‚Ć“ Ă…Ć–ĂƒĂŠĂ‹ĂŒĂ ÂťĘŞĂ†Ă Ă…ÂšÂťĂ‡Ć–ÂťĂ‡Ć–ĂŠĂ‹ Ni MACO d.o.o., Filijala, Ă?ĽΚÊ ĂŠĂ†Ă‡ÂżĂ‡ĂŠĂ‹ĂƒĂ Ă€ Ă?Ă†ÂšĂƒÂš ʞƓ ˅ʞʿ˂ʽ Â˝ĂŒĂ Ă†Ă‚Â˝

Ě?ˀ˅ʞ ˅˃ ʿˀˀ ˄ʽˆƓ Ě?ˀ˅ʞ ˅˃ ʿˀˀ ˄ʽˆƓ Ă…Ć–ĂƒĂŠĂ‹ĂŒĂ ÂťĘŞĂ†Ă Ă…ÂšÂťĂ‡Ć–ÂťĂ‡Ć–ĂŠĂ‹

business dialogue

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51%

Languages English is the most spoken language (51% ) in the EU. German is the most widely spoken mother tongue (about 88.7 million people). Beside English language, the most popular languages in the EU are German 32% French 26% Italian 16%

European Investment Bank Andreas Beikos, Head of the Regional Office of the European Investment Bank for the Western Balkans

■ The European Investment Bank is the biggest creditor of the Serbian economy. How did you gain such a reputation?

- In Serbia, the loan levels over the last ten years and to this point have reached 3.7 billion euros, which clearly makes the EIB (www.eib.org) the largest lender to the Serbian economy.

The main reasons for this position are twofold: firstly, since its establishment in 1958 the Bank has specialised in providing long term financing for projects promoting European integration and social cohesion and since the fall of the Berlin wall the EIB has gradually leveraged its resources in central and eastern Europe (CEE), therefore the Bank is well placed to support Serbia’s initiatives to join the EU; secondly, the Bank is a lean institution which provides efficient services and maintains good relationships with its clients, local government bodies and other international finance institutions (IFIs), a state of play which is appreciated by all stakeholders.

The Largest Regional Financier

The decision to establish a permanent EIB presence reflects two principal factors: a growing portfolio of projects financed by the Bank and the desire to be able to better assist the political and economic transformation of a region that is on its way to European integration By: Slavka

Kovač

Photos: Boško

Karanović

T

he European Investment Bank (EIB) has a longstanding presence in the region and began operations in 1977 in former Yugoslavia. Over the last ten years, it has become the largest international financier in the Western Balkans and Croatia, with accumulated signed loans of close to seven billion euros at the end of 2010 – comments Andreas Beikos, Head of the Regional Office of the European Investment Bank for the Western Balkans to Cord magazine.

The bulk of our exposure in Serbia (about two thirds) is to the public sector as opposed to the private sector 44

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■ Which economic sectors have you financially supported the most?

- In the late 1990s financing focused on urgent reconstruction and repairs to damaged infrastructure. Thereafter, EIB loans were earmarked for the modernisation and upgrading of national infrastructure supporting the competitiveness of the economy. In our ongoing consultations with the Republic of Serbia, over the last three years the Bank has diversified its lending into new sectors, such as research and development. The Bank has also increased its support to small and medium sized enterprises (SMEs) and local authorities through lines of credit with local banks and leasing companies. To date, the portfolio can be broken down as follows: about one half is earmarked for transportation infrastructure (motorways, railways, bridges and by-passes), a third to SMEs (credit lines to banks) and the balance is a combination of loans to support municipalities, education, health and research and development sectors.

■ You have announced that, this year, agreement on a 500million-euro loan will be signed with Kragujevac-based Fiat Automobili Srbija. Has a date been set for this?

- The loan was signed on 16 May, 2011. The project concerns Fiat’s (www.fiat.com) investments for the modernisation and expansion of the production capacity of the existing Zastava automotive plant in Kragujevac The project will have an important impact on a deprived region, with the creation of 2,400 direct and 500 indirect new jobs. Moreover, the financing is expected to have significant multiplying effects on the local economy, as several of Fiat’s suppliers will set up production sites in the area. The operation represents the largest Foreign Direct Investment in Serbia in the last decade.

■ Do you prefer the public sector over the private sector when granting loans?

Information The average person today receives more information on a daily basis, than the average person received in a lifetime in 1900.

- The main requirement for granting a loan is that the project must initially meet certain eligibility criteria, i.e. that the characteristics of the project are in line with the Bank’s policies and guidelines. This is the main driving force, therefore, we do not have a preference over the public or private sector, and this is certainly true within the EU where our activity is demanddriven and to a lesser extent depends on our ongoing cooperation with central governments. In fact, over the years the Bank’s exposure to the public sector relative to the private sector has decreased as a result of budget constraints in a number of EU countries in addition to the fact that Sovereigns increasingly are no longer allowed by law to grant state guarantees to projects, thus these projects are relegated to the private sector.

In Serbia, the picture is quite different as the bulk of our exposure (about two thirds) is to the public sector which reflects the wish of the Serbian government to use EIB to support actions against the impact of the global financial crisis through priority, large-scale investments (such as the Corridor X motorway) and support to SME investments (APEX lines of credit signed in 2009 and 2011). EIB supports private sector investments through its lines of credit with financial institutions operating in Serbia as well as directly toward larger projects such as the Fiat investment mentioned earlier.

In Serbia, EIB loan levels over the last ten years and to this point have reached 3.7 billion euros ■ Which criteria does the bank use in making a decision to grant financial assistance to projects in Serbia and are these criteria the same for all countries?

- The criteria for granting loans are the same for all countries. Of course, the Bank also makes sure it understands the local context in which the projects are being implemented, but overall the intent is to bring best banking practices to the promoters of projects. The Bank’s extensive experience in financing projects (it has been active in countries outside the EU since 1963), its in-house sector expertise and its deep knowledge of European policies facilitates the identification of projects that match both national and EU priorities. The Bank acts as a flag carrier for EU policies outside the EU, contributes to the dissemination of best practices and facilitates the participation of other financiers in EU projects. The Bank has a diligent project appraisal process which covers technical, economic, financial, environmental and social aspects as well as credit risks.

■ The conditions under which you grant loans are a great deal more favourable than those offered by commercial banks. Could you tell us something about the interest rates on your loans and what does your interest rate policy depend upon?

- It is important to stress from the outset that the Bank is a non-profit organisation and does not seek profit maximisation. The Bank is the largest supranational borrower and multilateral institution in the world and enjoys an AAA rating from the major rating agencies. The Bank funds itself through the capital markets via the issuance of bonds with

Placements & Postings appointments@cma.rs

www.cordmagazine.com/corporate/appointments.html

Kurt Bock, new President of BASF headquarters

Kurt Bock (52) started his BASF career in the finance department in Ludwigshafen, Germany in 1985. From 1992 to 1997 he worked for Robert Bosh GmbH in Stuttgart and Brazil. He returned to BASF in 1998 as the Director of Finances of the North American office, and was named Logistics and Informational Services President in 2000 in Ludwigshafen. He was appointed as a member of the BASF headquarters as the Director of Finances in 2003, and since 2007 he has been both the President and Executive Director of the BASF Corporation in New Jersey.

He is married and has three children.

Dejan Racić, new Development Vice-President of Delta Holding Dejan Racić was born in 1969 in Belgrade.

He gained his first work experiences in Dubai, and since 1995 he has held important posts within the Delta M Group, the biggest privately owned company in Serbia. Since 2000, as director of Delta Invest, he has managed the processes of the development, construction and adaptation of various projects in the areas of retail, bank and insurance companies’ subsidiaries, as well as auto and logistics centres for the needs of members of Delta Holding. Prior to his appointment as Development Vice-President of Delta Holding, he held the function of Delta Real Estate Director.

Svetlana Kisić Zajčenko, new member of the Board of Directors of UniCredit Bank Serbia

Svetlana Kisić has been an advisor at the Economic Institute since September 2007.

She graduated and earned her Masters’ degree at the Faculty of Economy, University of Belgrade. Through further professional development, she earned her MTM analyst license (Swedish Institute for Organisation of Work, Stockholm). She began her consultant career in 1987 at the Faculty of Economy in Belgrade, and then continued it from 1994 to July 2007 at Deloitte, as Director in the financial consulting sector. In her career as a consultant’s she has worked on over 80 projects, noting that she independently managed over 50 of them for clients who represent our biggest companies in all fields.

Slobodan Milosavljević, new advisor in the Serbian Chamber of Commerce (PKS)

Slobodan Milosavljević was first elected as Minister for Trade, Tourism and Services in 2001 in the government presided over by Zoran Đinđić, and performed that function until DOS lost the republic parliamentary elections in December 2003. In April 2004 he was appointed as the Director of the Serbian Chamber of Commerce (PKS), and was named PKS President in December of that same year. He remained in this role until 15th May, 2007, when he was elected as Minister of Agriculture in the new Serbian government. He was elected as Minister of Trade and Services on 7th July 2008, and remained in this position until March this year when the government was restructured. business dialogue cordeditorial@cma.rs

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+90 %

We retain 10% of what we read, 20% of what we hear, 30% of what we see, 50% of what we hear and see, 70% of what we say and 90% of what we do.

the aim to passing onto loan customers the funding advantages of the EIB, which is underpinned by our top rating and excellent reputation in capital markets. Of course, the level of interest rates offered to our customers depends on prevailing market conditions at the time we raise our funding but also depends on a thorough analysis of the credit standing of our borrowers and the security structure available.

■ The agreement on setting up the office was signed on 29th November last year. What has been happening since then?

- In the last few months following the opening of the EIB office, this office has been busy in terms of meeting with the Bank’s main relationships stakeholders, making contact with

■ Have there been any loans that Serbia hasn’t used and what is your procedure in such situations?

- Our objective is to ensure that all loans signed are actually disbursed in line with the process of project implementation.

When we encounter delays for an individual project we immediately contact the promoter and the relevant line ministry (for public sector projects) to jointly identify and address the issues. The Serbian government has been fully supportive of

The Bank has a diligent project appraisal process which covers technical, economic, financial, environmental, social aspects and credit risks this approach and significant progress has been made on long-standing issues.

Not for profit

It is important to stress from the outset that the Bank is a non-profit organisation and does not seek profit maximisation.

Office

With the opening of an office in Belgrade, EIB will be able to better respond to the financing needs of public and private clients.

Grants

In 2010, the first year of its existence, the WBIF directly provided 39 million euros worth of grants for 39 projects.

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■ Have you been discussing new loans with the Serbian authorities?

- The Bank has a good working relationship with the government and dialogue takes place on a regular basis. We have regular meetings with high ranking officials either in Belgrade or in Luxembourg where current and potential projects are discussed, taking into account national priorities. The relationship is based on mutual respect and constructive discussions, factors which are key to nurturing a long term relationship.

■ Why did the EIB decide to open its Western Balkans office in Belgrade?

- The decision to establish a permanent EIB presence reflects two principal factors: a growing portfolio of projects financed by the Bank and the desire to be able to better assist the political and economic transformation of a region that is on its way to European integration. More concretely, with the opening of an office in Belgrade, EIB will be able to better respond to the financing needs of public and private clients and strengthen contacts with local institutions and partners.

business dialogue

Božidar Đelić, Serbian Deputy Prime Minister (left), Philippe Maystadt, President, European Investment Bank, Mirko Cvetković, Prime Minister and Adriano Martins, Deputy Head of the Delegation of the EU to Serbia on the opening regional office EIB in Belgrade

new potential clients, attending official meetings and conferences and also actually working on concrete operations, such as the Fiat Serbia project mentioned above. Activity has focused primarily on Serbia, however, as a representative office for the Western Balkans, this activity will gradually expand to the other countries of the region, namely Bosnia and Herzegovina, Montenegro, FYR of Macedonia and Albania.

■ How much can the EIB, as a ‘financial arm’ of the EU, help Serbia on its path toward EU membership?

- EIB’s lending in the region, including to Serbia, has a material impact on the real economy because on one hand we have significant leverage in terms of financial resources and on the other hand we finance projects by promoting best banking practices. By combining these two elements, we provide significant value-added in terms of economic development within the goal to integrate the local economy with the rest of the EU. In this regard, the EIB plays an active role in the development of the Western Balkans Investment Framework (WBIF) (www.wbif.eu), an initiative whose purpose is to facilitate the preparation and the financing of priority projects under the EU’s pre-accession process. The WBIF is being developed jointly with the European Commission, the EBRD and the Council of Europe Development Bank as well as EU Member States and combines available grants and loans for priority projects in the region. In 2010, the first year of its existence, the WBIF directly provided 39 million euros worth of grants for 39 projects, which will receive loans of 2.6 billion euros, mobilising investment of some 5.2 billion euros. Finally, we make it a point to co-finance projects with other IFIs. ■

75.3 % Danube Insurance

As Israel prepares to mark 63 years since its founding, its population has swelled to over 7.7 million people, according to the Central Bureau of Statistics. Israel’s population is now 75.3 percent Jewish, with the country’s Arab minority representing 20.5 percent and non-Jewish immigrants and their children making up 4.2 percent.

Jubilee Worthy of Attention

’Danube Insurance’ is the biggest company in the domestic insurance market and has nurtured the tradition of insurance in the country for over 140 years. ’Danube Insurance’, as the only national company registered for all kinds of insurance, also has the broadest network which consist of over 600 offices country-wide

W

e are also the foremost in the fact that we have the reinsurance company ‘Danube Re’, as well as the society for the management of voluntary retirement funds, which are all part of our company.

‘Danube Insurance’ (www.dunav.com) includes the dependent companies of ‘Danube Car’, ‘Danube Stockbroker’, ‘Danube Tourist’ and ‘Danube Insurance’ a.d. Banjaluka in the Republic of Srpska, and ‘Danube Bank’, as the youngest member of the Company which has joined our group.

What makes us a leader in the domestic insurance market is the fact that quite simply states that we are first in terms of the total of overall premiums, as well as various other criteria.

Understandably, ‘Danube Insurance’ has a particular responsibility toward the state, its clients and society in general. For that matter, we support an entire range of

projects belonging to various institutions, organisations and individuals in the areas of culture, sport and art, wanting to return a portion of the profits made in the broader community. Some of our undertakings include: providing assistance to the University Children’s Clinic in Tiršova Street, covering the expenses of a heart transplant, and aiding competent institutions with finding those who are missing in Kosovo and Metohija.

As an insurance and finance company, we provide our policy holders with protection and safety in a partnership that is based on mutual trust. The fact that this year our company has established a ‘Prize for Loyalty’, which was presented to individual agricultural producers at the 78th International Agricultural Fair, speaks in favour of ‘Danube Insurance’ paying special attention to its clients. ‘Danube Insurance’ is the laureate of numerous awards and prizes for its successful work, and this year we won the ‘Champion of Agricultural Business in the Corporate Affairs Sector’ award, which was presented at the International Agricultural Fair, for the third time in a row.

‘Danube Insurance’s mission is to provide its clients with safety and services of the highest level, which are completely attuned to their desires and needs.

Accordingly, covering a broad range of services, our company offers: property insurance, insurance of individuals, of transport, agriculture and crops, insurance from responsibility and travel Tomanović, director of ’Danube Insurance’ insurance. The vision of ‘Danube Predrag region North, received avowal and a Champions’ Cup of the Novi Sad Fair Insurance’ is to maintain its advantage on the market and uphold respect from society by providing its policy holders, associates and business partners with services and business relationships which are always As part of the 78th International one step ahead of what the others are offering.

Agricultural Fair an ‘Evening of If so far you have still not asked yourself Champions’ was held on 19th May. At this important event, why you have not given your trust to ‘Danspecial acknowledgements and ube Insurance’ here are some other excellent champions’ cups were presentreasons: we hold the leading position in all ed to companies and individuareas of property insurance and we have the als who were selected as the greatest financial reserves. We have a high most successful at this year’s Agricultural Fair in Novi Sad by rate of paid premiums - as much as 99.8 peran expert committee. Predrag cent - and our offer includes over 90 types Tomanović, Director of the North of services for all kinds of insurance. Finally, Region, received the award on we are a stable and reliable partner not only behalf of ‘Danube Insurance’ in your business, but also in your life. ■ gave his thanks and commented:

Evening of champions

We have a high rate of paid premiums - as much as 99.8 percent - and our offer includes over 90 types of services for all kinds of insurance business dialogue

“Our insurance company successfully protects the property of its policy holders, their estates, fields and animals in work areas exposed to numerous risks, said Tomanović.

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Average Salaries

Business Dialogue

The average salary of a Managing Director in New York in May 2011 was $105,000. A Marketing Manager was earning on average $84,000, a Sales Manager $58,000, a Bank Clerk’s average salary in May was $39,000, a Hospital Managing Director was earning $112,000 and an Editor-in-Chief $77,000.

Fiscal Council Nikola Altiparmakov, member of the Fiscal Council

Capital Investments Necessary

Fiscal rules assign the state’s obligation to reduce its expenditure in the mid-term period (until 2015) and leave more space for public investments in infrastructure

By: Jelena

Aleksić

F

or the first time in history, Serbia has an institution known as the Fiscal Council, which controls whether the budget is being spent as planned. We talked to one of the three members of this Council, Nikola Altiparmakov, about the challenges which are being expected to the ‘national purse’ in the pre-election year, considering the authorities’ habit of giving away what they don’t have prior to elections.

■ A group of economists claim that the drop in GDP in 2009 was six percent, whereas official statistics claim it was 3.5 percent. Who are you inclined to believe and is it possible that such a big statistical error could occur?

- The state’s statistics represents the eyes and ears of economists because without credible statistics it is impossible to have suitable measures of economic politics. Alongside the transition of the economy, the state’s statistics are going through a transition process due to the fact that measuring economic activity is drastically different in socialist and market economies. In this context, some significant statistical reforms have been made over the previous decade, and the latest events speak in favour of the fact that there is still a lot more space for progress when it comes to measuring economic activities and employment.

■ Vincent Degert, Head of the European Union Delegation to the Republic of Serbia, recently stated that Serbia has closely avoided the Greek scenario. If the data regarding GDP being six percent is true, our public debt has exceeded 45 percent of the BDP limit. What are your thoughts concerning this?

- There were two main sources for the serious economic crisis, or the Greek scenario in Serbia. The first cause was external the arrival of the global financial and economic crisis in Serbia.

This first cause has been successfully removed in the past few years by, amongst other things, a successful arrangement with the IMF (www.imf.org). The second cause of the crisis is internal - serious structural imbalances in the Serbian economy and the unsustainability of the economic model which has ruled the previous decade. This risk was recognised amongst Serbia’s experts in the public sphere and the necessity of transferring to a sustainable system of economic development - a system where less would be spent, and more would be produced, exported and invested - was acknowledged.

The recent adoption of fiscal rules represents the most concrete step and is the key pre-requisite for being able to transfer to a sustainable growth model. Namely, fiscal rules appoint the state’s obligation to reduce its expenditure in the mid-term period (until 2015) and leave more space for public investments in infrastructure. In the mid-term, apart from fiscal reforms, it is necessary to make some reforms in other economic sectors, primarily to finish the transition process, so as to remove the internal structural problems of the Serbian economy and thus remove the other risk-source for the creation of the so-called Greek scenario.

■ Is there concern about increased public expenditure in the pre-electoral year? Does the Fiscal Council have any mechanism to prevent this occurring?

- One of the main ideas around adopting fiscal rules, apart from the aforementioned transfer to a sustainable economic growth model, is the fact that a significant increase in public expenditure in the pre-election period has been noticed over the previous years. This phenomenon is not specific to Serbia - it can be observed in a great number of countries, especially developing ones.

However, considering the numerous elections from mid2006 to mid-2008, this practice of ‘voters’ flattery’ has been very expensive for the Serbian economy over the previous years.

The budget for this year and the 4.1 percent GDP deficit is in accordance with the

It is necessary to consider systematic, all-encompassing measures of the tax politics which will enable a sustainable and permanent balancing of salaries for all employees 48

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Migration The largest group of foreign origin in Austria comes from Germany 213,000; people from Serbia, Montenegro, and Kosovo 207,000; Turkey 183,000; Bosnia and Herzegovina 130,000; Croatia 70,000; Romania 63,000; Poland 59,000; Czech Republic 46,000; Hungary 39,000; and Italy 29,000. — Prof. Dr. Heinz Fassmann, Commission for Migration and Integration Research of the Austrian Academy of Sciences.

fiscal rules, and the Fiscal Council will supervise its execution throughout the year, ensuring the plans will not be broken.

budgetary hole’. In fact, the fiscal situation has never been a topic for the privatisation of ‘Telekom’the potential income of 840 ■ From the stand of budgetary incomes, how million euros would be enough do you assess the suggestion of decreasing to suffice the deficit for a few taxes and contributions for newly-employed months only, because the total workers? financial needs of the country are - One of the basic postulates of fiscal politics two billion euros. says - when you reduce tax rates, budgetary The failure of the ‘Telekom’ incomes are reduced. International experience privatisation (as well as other in the last 30 years shows that experiments privatisations, such as JAT) actuwith the reduction of tax rates and expectaally represent disappointment Pavle Petrović (left) President of the Fiscal Council and members Nikola tions about increased tax incomes due to in a broader macroeconomic Altiparmakov and Vladimir Vučković, take an oath in the National Assembly better collection, were unanimously unsuccontext - because the privatisation cessful, starting with the Reagan’s tax reform which created a historic process has practically died over the last few years, and the Serbian deficit in the USA. The freshest example of the reduction of taxes in economy and Serbian society are effectively caught between socialism Serbia was in 2007, when there was a permanent reduction of budgetand the market economy. In this space, the virtues of socialism have ary incomes for about one percent of GDP a year. mostly disappeared, most of the virtues of the market economy have not yet arrived - but the flaws of both systems are very much present. In this sense, the failure of the ‘Telekom’ privatisation is a disappointment, because it elongates the grim status-quo in our economy’s ownership structure. ■

Considering the numerous elections from mid2006 to mid-2008, this practice of ‘voters’ flattery’ has been very expensive for the Serbian economy Thus, I have no dilemma in saying that the reduction of taxes and contributions for newly-employed workers cannot increase the budgetary incomes - on the contrary, this measure can only lead to a loss in income. Considering that this is a measure with a rather selective and short-term effect, I do not expect a more appreciable loss of income on these grounds. The effect of similar measures from 2007, when nonpayment of employer’ contributions for newly-employed workers over a two-year period was allowed, showed to be minor. It is not realistic to expect for such arbitrary, selective and short-term measures to be able to change the real conditions of the economy, employment- wise.

On the other hand, arbitrary, selective and short-term measures such as this one undermine the credibility and predictability of the tax system, which can have a negative effect on budgetary incomes in the future.

It is necessary to consider the systematic, all-encompassing measures of tax politics which will enable a sustainable and permanent balancing of salaries for all employees in the Republic.

■ Do you expect a budget re-balance and in what direction should such redistribution take?

- From the Fiscal Council’s and a sustainable politics’ point of view, the key thing is to leave the total deficit after the rebalance at 4.1 percent of GDP this year and not to neglect capital investments which will represent the basis for quick economic growth in the years to come.

■ Finally, what would be different if ‘Telekom’ had been sold?

- There is a misconception in a part of the broader public that the privatisation of ‘Telekom’ (www.telekom.rs) was initiated so as to ‘plug the

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chrome 160 - firefox 550 Million users

Business Dialogue

Google’s Chrome web browser now counts 160 million users in 41 nations. That’s more than double the 70 million users of the web browser that Google reported last year. Firefox have more than 550 Million users.

GerHArd Polt

educAtion

Cabaret

Author, screenplay writer and actor from Bavaria, Gerhard Polt, visited Belgrade on 13th May, and presented his cabaret show in the BMW salon in Radnička Street. Polt performed before an audience Guests in front of the BMW salon with the Biermöl Blosn troupe, with whom he marks 30 years of work this year.

The audience at this event was treated to the unusual combination of a satirist and a musician, who has commenced a minitour around Europe. The programme presented to the Belgrade audience was organised in cooperation with the German Embassy.

Chemgeneration.com

Chemgeneration.com, the first online educational base in the chemistry sector, was presented to the Serbian public at the Faculty for Chemistry of the Belgrade University, in the middle of May. UNESCO has declared 2011 to be the International year of Chemistry, the global sponsor of which is the company BASF, which has created Chemgeneration. com as part of a pan-European project available in 10 countries and in 11 languages. BASF Serbia d.o.o. is also involved in this international project and alongside its partner, has enabled this educational website to come to life in the Serbian language.

vlAde divAc & euroBAnK efG

Playground Refreshed

Thanks to the funds collected via MasterCard’s ’Big Heart’ project, the rehabilitated playground of the ’Veverica’ kindergarten, part of the pre-school ’Dečija Radost’, has been opened. The improved playground of the kindergarten is the fourth one to be included in the ’Big Heart’ project, which is being conducted by Eurobank EFG and the ’Ana and Vlade Divac’ fund, and as is the case with the previous playgrounds, is equipped with facilities for disabled children.

Vlade Divac with children from ’Veverica’ kindergarten

eQuiPPinG scHools

after work

Digital Studies

As part of the ‘Digital School’ campaign, the State Secretary for the Digital Agenda, Jasna Matić, opened three digital studies in Niš, at the ‘14th October’ school for primary and secondary education, and at the primary schools Jasna Matić, State Secretary of ‘Stefan Nemanja’ and for the Digital Agenda, with ‘Bubanjski Heroji’. students who will be using At the celebrations digital studies in the future marking the event, students at the schools switched their computers in newly-equipped digital studies and entered the world of interactive study, of new and interesting experiences which help to additionally motivate them. All of the schools in Serbia who applied for the ‘Digital School’ programme will be equipped with digital studies by the end of this school year.

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“When we started the ’Big Heart’ project, our basic idea was to give the opportunity to children who are developing their motor abilities to gain the basis for future sporting activities, to become fond of spending time outdoors and to spend as much time as possible out in the fresh air,” Vlade Divac said at the opening of the latest playground.

On behalf of Eurobank EFG, Nataša Strugarević, a member of the Executive Board of Eurobank EFG, greeted the audience and commented that “It is our wish to invest into the community we work in via socially responsible projects and to provide help where it is needed the most.”

lecture

Computers for Mathematicians

Specialists from ‘Telekom Srbija’ gave a lecture on the topic of mobile applications to the most talented students from the Mathematics High School in Belgrade, hoping to allow insights into practical knowledge in this area of modern technology. This lecture commenced a series of workshops on the topic of mobile communications, which represents a further step in the cooperation of ‘Telekom Srbija’ and this elite educational institution.

The company has also equipped the computer room of the school with 20 computers, and attendees of the workshop were presented with 20 Android ‘smart’ phones. With this donation and the involvement of specialists from the company in lectures and workshops, ‘Telekom Srbija’ and the Mathematics High School have promoted their cooperation with a desire to contribute to students’ education in the area of modern technologies, as well as the promotion of the practical application of the knowledge gained.

Branko Radujko, General Director of ‘Telekom Srbija’ with students of the Mathematics High School

June 9-10, 2011 Crystal Ballroom, Hyatt Regency Belgrade Respected friends, We are pleased to inform you that the regional conference „Regional banking And Financial Synergy 2011“ has already gathered together a huge number of delegates from the region. The idea is to open a discussion regrading possibilities of regional cooperation, where global financial institutions such as EIB, EBRD, and KfW represent a link between banks and countries through their loans, invetsments, and regional programs. some of the speakers:

• Andreas BEIKOS, Head of Representative Office for the Western Balkans, European investment Bank • Francis MALIGE, Director for Financial Institutions, EBRD • Ulrike Lassmann, Head of Division Private & Financial Sector Development, Southeast Europe & Turkey, KfW Entwicklungsbank • Stephen Fish, Ernst&Young, Partner, Country Leader, Serbia, Croatia, Bosnia - Herzegovina, Montenegro • Vladimir Čupić, Chairman of the Executive Board, Hypo Alpe-Adria a.d. Beograd • dr Dragan Lajovic, Board President, Investment and Development Fund of Montenegro • Teodora Vlahovic, Director, Guarantee Fund of Vojvodina • Domen Zadravec, Consultant, Core team member FIG practice, A.T.Kearney for Europe, Middle East and Africa • Zsuzsanna Hargitai, Director, EBRD Croatia • Ramiz Džaferović, President, Development Bank of the Federation of Bosnia and Hercegovina • Adriana AHCIARLIU, Work group Chair for Central, Eastern and South-Eastern Europe, European Federation of

Leasing Company Associations • Mitja Otorepec, President of leasing section, The Bank Association of Slovenia, director, SUMMIT leasing Slovenia • Boris Bajt, Head of Leasing Office, The Bank Association of Slovenia • Klaudija Karabuva Vidas, Representative of the Council of leasing Association of the Croatian Chamber of Commerce • Matjaž STRMOLE, Director, GEMIKRO d.o.o.

• Representative of ProCredit Leasing • Association of Leasing Companies of Republic of Croatia • Regional leasing managers • Noel Edison, Director, Financial Institutions: Insurance and Financial Services, EBRD • Hrvoje Pauković, Director, Croation Insurance Bureau • Boris Šaban, President, National Insurance Bureau of Montenegro • Dr Željko Šain, Professor of Insurance and Actuaries, Member of Management Board, Central Bank of Bosnia and Hercegovina • Regional insurance managers

who should attend: • Directors and/or members of Executive Boards • Managers of Corporate Sectors • Retail Sectors • Risk Management Sectors • Loans Sectors • Liquidity Sectors • Investment Banking Sectors • Leasing Managers • Insurance Managers • Investment Funds For all additional information visit www.business-dialogue.eu or contact us directly at: Makenzijeva 67; 11000 Belgrade, Serbia; Tel: +381 11 2450 508; Fax: +381 11 2450 122

faces

& places H.E. Andrzej Jasionowki, Ambassador of Poland to the Republic of Serbia, and Dragoljub Mićunović, MP of the Democratic Party, at a reception held in the honour of Constitution Day at the Polish Embassy on 04 May.

Member of the Belgrade City Council Željko Ožegović and Editorial Director of CorD magazine Tatjana Ostojić, who received a letter of thanks for humanitarian activities and the contribution made to the organisation of the 24th Belgrade Marathon, at an official ceremony at the Belgrade City Assembly on 26th May.

(left to right) Dragan Šutanovac, Minister of Defence, Veroljub Dugalić, Secretary-General of the Bank Association, Oliver Dulić, Minister of the Environment, Mining and Spatial Planning, Saša Janković, Serbian Ombudsman, H.E. Luis De Almeida Sampario, Ambassador of Portugal to Serbia, and Marko Carić, cofounder and professor of several higher-educational institutions in Novi Sad, were laureates of the ‘Best European 2010’ awards, which were presented on 09 May, at the Day of Europe. (left to right) Vesna Đukić, CEO of the Belgrade Open School, H.E. Nils Ragnar Kamsvog, Ambassador of the Kingdom of Norway to Serbia, and Milica Delević, Director of the European Integrations Office of the Serbian Government, at the press-conference held on 11 May ‘Strengthening Administration’ capacities for Serbia’s joining the EU.

German Minister for Economic Development, Dirk Niebel, Ružica Đinđić and Serbian President, Boris Tadić with the scholarship holders of the ‘Dr Zoran Đinđić’ fund, who will be departing to work in German companies.

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(left to right) H.E. Hana Hubackova, Ambassador of the Czech Republic to Serbia, Tanja Miščević, State Secretary of the Ministry of Defence, H.E. Mary Warlick, Ambassador of the USA to Serbia and Major General Milan Bjelica, Deputy Head of GS VS, at a mutual concert of the Art Ensemble of the Ministry of Defence ‘Stanislav Binički’ and Military Orchestra of Land Forces of the USA command in Europe, which was held in ‘Dom Garde’ on 11 May.

H.E. Dušan Bataković, Ambassador of Serbia to France and H.E. François Xavier Deniau, Ambassador of France to Serbia, at a reception at the Residence of the French Ambassador held in honour of Mr. Bataković, on 12 May.

Dragan Šutanovac, Minister of Defence, Boris Tadić, Serbian President and Brigadier General Dragan Vladisavljević, Deputy Director of the MIA at the evening reception in the House of Guards at Topcider which was organised marking the occasion of the Day of the Military Intelligence Agency (VOA) on 06 May.

H.E. Oszkar Nikowitz, Ambassador of the Republic of Hungary to Serbia and Karolj Kemerci, Director and founder of the ‘Hungaricum Centre’, at a reception celebrating the opening of the ‘Hungaricum Centre’ in Belgrade on 17 May at ‘Nevski Hotel’.

faces & places

Slobodan Šešum, Economic Adviser at the Slovenian Embassy to Belgrade, Goran Petković, State Secretary at the Ministry of Economy and Regional Development, Miroljub Aleksić, President of ‘A-Hotel’, Vlada Gajić, Mayor of Aranđelovac, and Mihailo Janković, President of the Board of Directors of ‘Knjaz Miloš’, at a round table held for the promotion of Aranđelovac tourist potential at the ‘Izvor’ hotel in Aranđelovac on 18 May. cordeditorial@cma.rs

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faces

& places Kjell-Morten Johnsen, FIC President and CEO of Telenor and H.E. Erwin Hoffer, Ambassador of Switzerland to Serbia, at the Swiss Ambassador’s residence where the third ‘Serbian-Swiss Business Summit’ was held on 10 May.

The reception celebrating the Day of Bulgarian Education and the Culture of Slavic Literacy was held by the Bulgarian Ambassador to Serbia, H.E. Georgi Dimitrov at his residence on 26th May. Chargé d’Affaires a.i. of the D.R. of Congo, Marc Marius Itela Elombola; Ambassador of Egypt, H.E. Aly Galal Abdelaziz Mohamed Bassiouny; Ambassador of the Republic of Guinea, H.E. Mr. El Hadj Mohamed Issiaga Kourouma; President of the National Assembly, Slavica Djukic Dejanovic; President of Serbia, Boris Tadić; Ambassador of the Republic of Angola, H.E. Toko Diakenga Serao and Ambassador of the People’s Democratic Republic of Algeria and Dean of the Group of African Ambassadors in Serbia, H.E. Abdelkader Mesdoua on the occasion of the Celebration of African Day in the Museum of African Art on 25 May.

(left to right) Sonja Liht, President of the Belgrade Fund for Political Excellence, Marc Perrin, Secretary General of OSCE, Ivica Dačić, Deputy Prime Minister and Minister of Police, Ambassador Renatas Norkus, Chairman of the OSCE Permanent Council, and Dimitrios Kypreos, Head of the OSCE mission to Serbia, at a gathering which marked 10 years of OSCE work in Serbia, held on 16 May.

H.E. Arthur Koll, Ambassador of Israel to Serbia, welcomes H.E. Alexander Konuzin, Ambassador of Russia to Serbia, and Ivan Tasovac, Director of the Belgrade Philharmonic Orchestra, to the celebration of the 63rd anniversary of the foundation of the Israeli state which was held at the ‘Hyatt’ on 11 May. 54

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(left to right) Sepp Blatter, President of the International Football federation (FIFA), Michel Platini, President of the European Football Union (UEFA), Ivica Dačić, Serbian Deputy Prime Minister, and Snežana Samardžić-Marković, Minister of Youth and Sport at the opening of the House of Football in Stara Pazova on 14 May.

The Delegation of the European Union in Serbia marked 09 May, the Day of Europe, with a reception at the National Parliament. The photographic exhibition of ‘South-eastern Europe’ was opened by the Chief of the EU Delegation to Serbia, Vincent Degert, and the Chairperson of the Serbian Parliament, Slavica Đukić-Dejanović.

H.E. Mary Warlick, Ambassador of the United States to Serbia, presented Tanja Janković, one of the presenters of the ‘Insider’ show, with an award for excellent investigative journalism in cooperation with the Independent Journalist Association of Serbia on 04 May.

H.R.H. Crown Prince Aleksandar Karađorđević and H.R.H. Princess Catherine at the opening of the exhibit entitled ’Military Peacekeeping Operations’ at the Military Museum on 26th May.

faces & places (left to right) Goran Pitić, Vice-president of the Foreign Investors’ Council, Mirko Cvetković, Prime Minister of Serbia, Kjell-Morten Johnsen, FIC President and CEO of Telenor, Mr. Vincent Degert, Head of the Delegation of the European Union to Serbia and Oliver Dulić, Minister of the Environment and Mining, at the second conference organised by FIC titled ‘Reality Check’, which was held on 17 May. cordeditorial@cma.rs

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interview DEJAN BODIROGA, VICE-PRESIDENT OF THE SERBIAN BASKETBALL ASSOCIATION

No Political Ambitions One thing that would be good for Serbia is if everybody were to stick to what they know how to do. Politicians are made the same way as players. I do not understand the dealings of politics without having direct contact with it, but it is clear to me that everybody is in it for some gain

to which he has been elected as Vice -President at the suggestion of Dragan Đilas the Mayor of Belgrade and President of the KSS, and how it will function from now on. We talked to Mr. Bodiroga about the future of Serbian basketball, his relationship with politics and the clash between ‘Red Star’ and ‘Partizan’, as well as about his business plans and passion for wine.

■ Why did you accept the role of Vice-President of the Serbian Basketball Association?

By Aleksandar MilETić - Because I have an obligation to help sport which has given me so much and that is why I feel that here are a few professional athletes who have I can assist. Since the World Championships in not suffered a word of criticism from the pubIndianapolis, Serbian basketball has been on the lic sphere throughout their career, and one wrong track, and the impressions relating to these of these people is Dejan Bodiroga (38) who bad conditions cannot is known as one of the For the future of the national team it be altered even by the best European basketball players of all time. In his is important not to chase medals at latest successes of the interview with CorD he all costs in junior categories, but to senior national team which won a silver talks about the Serbian Basketball Association, create players for the premier team medal at the European

T

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Championships in Poland in 2009, and came fourth at last year’s World Championships in Turkey. With my return to Belgrade, the conditions for me joining the Association were met, so I made my decision quickly, after talking to some of my friends. â– What were the initial talks between Dragan Ä?ilas and Dejan Bodiroga like? Ä?ilas associated his arrival at the top of the organisation with selector Ivković remaining in his position.

- In the beginning, I mostly talked with Ä?ilas about what the real situation in Serbian basketball is and he is pretty much aware of this situation, and most importantly, he has no doubt that he can run until the very end with this situation, just as is the case with all his other dealings. As far as Ivković is concerned, he will complete his cycle which he started three years ago, when our national team was in an utterly unenviable situation. He deserves credit for the recovery of national team which is again gaining respect from everybody. But we will not stop at this. We want to include all the ace-cards in the recovery of basketball. â– Politicians in sport - a good or bad thing?

- Ä?ilas holds a very important position. Apart from the authority associated with his function of being mayor, he has shown himself to be a very capable man as well. In basketball, I do not think of him as a politician, but as of a person who loves basketball. Of course, basketball should be surrounded by basketball players, and politics is welcome in the domain in which it is needed to provide the appropriate conditions for a normal life. Apart from fixing the financial situation, Ä?ilas will participate in other activities, and as for the problems which are purely basketball related, there are those of us who are familiar with this subject.

Since the World Championships in Indianapolis, Serbian basketball has been on the wrong track â– What are the greatest problems in Serbian basketball?

- There are many things which have not been functioning properly in the last couple of years; it is not true that the basic problem is a bad financial situation. One situation is where we are when it comes to creating players, which is something we used to be quite avant-garde with and innovative in many areas. I’m not saying anything new if I comment that a constant and major problem is being the member of a club, the fact that everything revolves around clubs and this neglects the interests of both the national team and basketball in gen-

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eral. It is in our common interest to unite because it is impossible to have all our interests in conflict.

■ The European Championships in Lithuania are a few months away. Three years ago Coach Ivković had the ambition to take the team to the Olympic Games

cure our participation in the Olympic qualifiers. The problem is that many members of the national team do not play much in their clubs and so Coach Ivković will have a task to bring them back to speed with test games. For the future of the national team it is important not to chase medals at all costs in the junior categories, but to create players for the premier team. We certainly won’t be supported by managers and parents in this task, but it is something which cannot be solved overnight.

■ How important is the support of Borislav Stanković, the honorary Secretary General of the International Basketball Federation (FIBA) and honorary member of the International Olympic Committee (MOK)?

- We in Serbia do not know how to appreciate such things and give them the significance they deserve.

Thus, many people here are not aware of the role or significance of Bora Stanković in terms of basketball and world sport. As someone who spent 20 years playing basketball around Europe and the world, I know very well how he is perceived wherever he goes. He

I spend my free time with family and friends and this is when I enjoy myself the most Bodiroga is highly respected worldwide: Eduardo Portela (left) President of the Spanish ABC Basketball league and Borislav Stankovic, FIBA Secretary General Emeritus

in London in 2012. Are you optimistic?

- First of all, I have to remind you that for the previous championships we had to go through the qualifications first and that the silver medal came, in my opinion, too quickly. Later, at the World Championships in Turkey, the team showed that it had perspective, and that time was working in their favour. However, it will be much more difficult in Lithuania, because many NBA players who were absent from Turkey, will be coming, and the number of participants has been increased from 16 to 24. We only know that the finalists are going straight to the Olympic Games, and our first goal is to be in the top six, so that we will se-

was everything in basketball. Do I even need to remind you what he did as a functionary? It is well known that basketball flourished with him.

■ You are said to be a businessman. What are your ambitions in this respect?

- I invested in two or three companies a couple of years ago and I am not complaining. My business and life plans are related to Belgrade and Serbia. I do business with people I know well and trust completely, so I can dedicate a bit more of my time to basketball.

■ What fulfils you apart from basketball?

- I spend my free time with family and Adriatic NLB league friends and this is when I enjoy myself the most. I like simple things such as going out to dinner, travelling and so on. I am a great ■ Regional relations are congenial one moment, and then cold the next. fan of wine and fine cuisine. Occasionally, This seems to have been transferred to basketball where some are keen I visit famous wineries in Italy, Spain and on the Adriatic NLB league and some are against it. What is your opinFrance; I take the so called ‘wine roads’ ion in regards to this and are you ‘Yu-nostalgic’?

- First of all - I am not Yu-nostalgic, although I have a lot of friends in former Piedmont, Barolo, and Tuscany. At the same republics. Serbia has its story and should stick to it and promote it. Our time, I also stop by and sample the world’s neighbours should deal with their stories. I do not have anything against the best chefs.

NLB league, but I am bothered by the fact that some matters have remained undefined, primarily in the ownership segment. Serbia, which is the strong■ What is the significance of the Tvrdoško est when it comes to basketball, has the least say in matters. Only when wine, which is produced in the Tvrdoš these matters are cleared up will we be able to discuss whether we are supmonastery near Trebinje (BiH), and which porting the NLB league or feeling more strongly toward the Serbian league. is particularly dear to you?

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- This young wine has a great deal of potential and at some wine fairs it has won prizes. But, it is well known that many things influence the quality of wine, such as soil and climate, so Tvrdoško wine is yet to develop. It has the potential to become a top-notch wine. Anyhow, it is always agreeable to me because it comes from the birthplace of my ancestors, Trebinje.

■ The relationship between the two biggest Serbian clubs, ‘Partizan’ and ‘Red Star’ are worse than ever, especially in football. What are your thoughts?

- This war is not in anyone’s best interests. It has all gone too far; many harsh words have been exchanged. For me, any conflict which outgrows the extent of healthy

■ Do you have any association with the production of this wine, bearing in mind how close you are to Bishop Grigorije?

- No, I do not participate in it. The wine is made by the people from the monastery.

■ What is your political orientation?

- My only orientation is - Serbia! Currently, the country is rather divided and it is not a good thing. All of those who bear the greatest responsibility need to pay more attention to national unity and identity. Not everything can be seen through the prism of political parties. It is understandable that each of them has its own interests, but when it comes to national interest, they should pay more attention. I would like to see Serbia taking a firm stand. We have been through many hardships, and we will survive these ones too. I am an optimist about the new generations having the strength to make a change.

Apart from fixing the financial situation, rivalry is unnatural and ■ In addition to yourĐilas will participate in other activities, bad. The progress of Serbian sport is not posself, tennis player Novak Đoković is the and as for the problems which are purely sible without even the only athlete who has basketball related, there are those of us slightest communication between ‘Partizan’ been given the St. Sava who are familiar with this subject and ‘Red Star’.

Medal by the Serbian Or t hodox Church.

■ Do you have any ambitions in politics?

What advice would you give to the current top ten- No, I don’t! One thing that would be good for nis player in the world?

Serbia is if everybody were to stick to what they - He does not need any particular advice because he know how to do. Politicians are made the same way is doing everything right, and is being led by an exas players. I do not understand dealing with politics cellent team. He is a true ambassador of his counwithout having direct contact with it, but it is clear try and a great patriot. The acknowledgement he to me that everybody is in it for some gain. I certainreceived is a great honour, as well as a responsibilly feel capable of helping my country, but there are ity. I am sure that faith will help him sustain the other ways to do this. We, celebrated athletes, who burden he is currently carrying. Through his behave left a mark on our countrymen, can certainhaviour, on and off the court, he controls his fame ly open more doors with more ease than our politivery well and shows that he still has both feet firmcians. And that is not irrelevant.

■ ly on the ground.

Eternal Rivals The progress of Serbian sport is not possible without even the slightest communication between ‘Partizan’ and ‘Red Star’.

Bodiroga is the first assistant to Dragan Đilas the President of the Serbian Basketball Association

Bora StankoviĆ

Fan of wine I like simple things such as going out to dinner, travelling and so on. I am a great fan of wine and fine cuisine.

Many people here are not aware of the role or significance of Bora Stanković in terms of basketball and world sport. cordeditorial@cma.rs

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football THE SECRET BEHIND MANCHESTER UNITED'S SUCCESS

Cultivating Self- conf idence confidence Manchester United’s

record breaking 19th English Premier League title this season undoubtedly confirms them as one of the most successful clubs on the planet

“I think I could pick four or five teams next week and they wouldn’t let me down” Sir Alex Ferguson

By Petar SAvić

B

esides having the most influential coach in Sir Alex Ferguson, there have been a number of reasons why the Red Devils returned to the top.

While some big teams always find themselves busy in the transfer market - flexing their financial muscle and splashing a lot of cash to bolster their squads - the story has been different at Old Trafford.

Cultivating self-confidence in players has played a major part in the success of the club.

Manchester United’s squad currently doesn’t boast of the most decorated and expensive players in the world.

The departure of Christiano Ronaldo was predicted to be a wide gap opener but fellow Portuguese international Nani proved equal to the task much to the surprise of many.

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In addition Sir Alex Ferguson has managed to turn good players into champions.

In contrast, many of the so-called big teams have been extravagant in the market trying to buy success.

The likes of Darren Fletcher and Michael Carrick might not be considered stars when compared to the expensively assembled Manchester City midfield that boasts the likes of Yaya Toure.

The noisy neighbours also splashed the cash on David Silva, German internationals Edin Dzeko and Jerome Boateng who have started reasonably well but have some way to go before justifying City’s expenditure.

The same applies to Chelsea who spent over £70m pounds mid-season, including the purchase of Fernando Torres from Liverpool for a Premier League record, only to end the season with no trophies to show for it.

In contrast United picked up the relatively un-

Turnover Increase

M

known Mexican striker, Javier Hernandez, who has proved to be a revelation.

Experience also played a big part in the success achieved at Old Trafford this season.

The likes of Ryan Giggs, Paul Scoles and Edwin van Der Sar blended well with the youth contingent of Wayne Rooney, Nani, Fabio, Rafael and Chicharito.

Their calm heads were particularly decisive when the Wayne Rooney transfer fiasco was in full swing and without them United could have fallen too far off the pace.

Perennial chokers Arsenal on the other hand are all consumed with youth and neglect to give their youngsters role models and a calming influence to play alongside.

The trick is to get that blend of youth and experi-

anchester United have reported a small increase in turnover in their third quarter figures.

Manchester United are still on course to become the first football club to break through the £100m barrier for annual commercial turnover.

United have posted their third quarter figures last month, which show commercial revenue has risen to £75.3million, up 33% compared to 12 months ago.

The increase helps compensate for a combined £5m decrease in media and matchday revenue within the third quarter, which club officials put down to a reduction in the number of home games and the fact prices were pegged for an FA Cup fifth-round tie with non-league Crawley in March.

United have also confirmed they have bought back an additional £5.5m in bonds, taking the overall amount purchased to £29.5m. Total turnover stands at £231.7m, up from £219.3m, to 31 March, 2011.

United’s gross debt has fallen to £477.7m, although this is thought to be a direct result of a conversion to sterling of money owed in dollars, which is weak against the pound.

However, the owners of Manchester United, Red Football Joint Venture, have announced huge losses for the last financial year.

United’s parent company -- which is owned by the Glazer family - have confirmed total losses of £110 million according to their latest accounts filed at Companies House.

Ferguson and Vidic won top awards

M

anchester United have claimed an awards double with Sir Alex Ferguson and Nemanja Vidic landing the Barclays Manager and Player of the Season honours.

Ferguson has led United to their 12th Premier League title, and 19th English league success overall, plus the Champions League final.

Centre-back Vidic has been the key cog in United’s defence and has made more league starts than any other Red Devils player during the campaign.

Ferguson, 69, lands the top manager award from the Premier League sponsors for a ninth time, while 29-yearold Vidic has now been named Barclays’ player of the season twice in his United career, with votes coming from representatives Player and Manager of the of football’s governing bodies, the media Season 2010/11 awards: Sir Alex and supporters.

Ferguson and Nemanja Vidić

The Manchester United owners Bryan Glazer, (left), Avi Glazer, and Joel Glazer hope to refinance the club’s debt with a bond issue

ence right so that the next generation can adopt that role from their seniors when they retire.

“I think I could pick four or five teams next week and they wouldn’t let me down,” said Ferguson after United fought back from 2-1 down to record a 15th straight home league win.

In the case of Arsenal it is becoming a case of showcasing youngsters who then get snapped up by other giants of world football.

This is unacceptable to the fans because the Gunners are themselves one of the biggest clubs on the planet.

In the case of United these policies have paid handsome dividends.

■ cordeditorial@cma.rs

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culture calendar CONCERTS

Zdravko Čolić Ušće 25 June Zdravko Čolić is one of the most popular pop singers across former Yugoslavia.

During his career spaning over 50 years, Zdravko has released 14 albums and 17 singles. With the song ’Gori Vatra’ Zdravko represented Yugoslavia in the Eurovison Song Contest in 1973.

The Cult Belgrade Arena 4 June @ 21.00

Whitesnake & Judas Priest Belgrade Arena 1 July @ 21.00 The Cult are a British rock band that was formed in 1983. They gained a dedicated following in Britain in the mid 1980s as a post-punk band with singles such as "She Sells Sanctuary", before breaking into the mainstream in the United States in the late 1980s as a hard rock band with singles such as "Love Removal Machine". The band fuses a "heavy metal revivalist" sound with "pseudo-mysticism".

Arrested Development Dom Omladine 11 June @ 21.00

Atilla The National Theatre of Belgrade 8 June @ 19.00

La Bayadere The National Theatre of Belgrade 9 June @ 19.30 Triple Bill / Songs, ballets: Lightfoot, Leone / Kylian / Bigonzetti The National Theatre of Belgrade 14 June @ 19.30 The Lady of the Camelias The National Theatre of Belgrade 16 June @ 19.30

The Love for Three Oranges The National Theatre of Belgrade 11 June @ 19.00

Who Is Singing Out There The National Theatre of Belgrade 21 June @ 19.30

Sting Belgrade Arena 4 June @ 21.00

OPERA Lucia Di Lammermoor The National Theatre of Belgrade 1 June @ 19.00 Il Barbiere di Siviglia The National Theatre of Belgrade 2 June @ 19.00 Un Ballo in Maschera The National Theatre of Belgrade 4 June @ 19.00

An American alternative hip hop group who have won two Grammy Awards and were named Band of the Year by Rolling Stone.

Sting, an English musician and songwritter will extend his celebrated Symphonicity World Tour with additional dates across Europe this summer. Following sold-out performances throughout North America, Europe and Australia, the Symphonicity tour will perform at a number of festival events in France, Germany, Italy, and Belgrade at the Belgrade Arena on June 8th, 2011. Sting will be accompanied by a symphony orchestra and band.

Adrienne Lecouvreur The National Theatre of Belgrade 25 June @ 19.00

Triple Bill The National Theatre of Belgrade 23 June @ 19.30

Donors’ Gala Concert The National Theatre of Belgrade 30 June @ 20.00

Amy Winehouse/Moby Belgrade Fortress 18 June DANCE Concert by ‘Syrinx’ flute choir The National Theatre of Belgrade 5 June @ 12.00 BALLET

One of the world's greatest singing stars Amy Winehouse and American electronic pioneer Moby will hold a conecrt together on 18th June at Kalemegdan (Lower Town), organised by Avalon Productions.

Zucchero Belgrade Arena 19 June @ 21.00 Italian rock singer Zucchero, in his career spanning more than three decades, has sold around 40 million albums across the world. He has achieved numerous awards, including a Grammy Award and World Music Award.

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Chris Botti Belgrade Arena 28 June @ 20.30 An American trumpeter and composer, who has established a reputation as a versatile musician in both jazz and pop music for his ability to fuse both styles together. Botti has five Grammy Awards nominations.

www.cordmagazine.com

The Impure Blood The National Theatre of Belgrade 2 June @ 19.30 The Sleeping Beauty The National Theatre of Belgrade 7 June @ 19.30

European Review of Serbian Folklore Sava Center 11-12 June The two-day competition and the show program, presents folk dances, songs, music, customs and traditional costumes from the territory of Serbia and other territories inhabited by the Serbian people and its culture, national traditions, language, and important factors of a people.

ART New Belgrade Art Exhibition SKC (Students Cultural Centre) 1-6 June Artists once united through the general theme “New Belgrade in the eyes of artists” still exhibit tied to the territory of their work or lives. Using studios in an urban area of New Belgrade towers, they have the ability and freedom of expression in this exhibition.

culture NEWS

VARIOUS Buskerfest – International Street Performers Festival 18 June This festival features some of the best street performers in the world. It will offer a variety of street fun where viewers will be as active as the performers. Through this festival, the city of Belgrade has gained a form of innovative and energetic entertainment. At the same time it raises awareness, regarding the importance and value of street art, and of course promotes Serbian art in front of a national and international audience. The festival is being organised by Association Monocikl in partnership with the Tourist Organization of Belgrade. It will take place in five locations throughout the Belgrade city-center and in front of Ušće shopping mall. This is a free festival for the entire family.

Art Books Exhibition: Ivo Andrić and Antonio Fogazzaro Zadužbina Ivo Andrić/Italian Culture Institute, Belgrade 11 – 30 May To mark fifty years since Ivo Andrić received his Nobel Prize for Literature and the centenary of the death of Antonio Fogazzaro, the Art Books exhibition was held in Belgrade at two venues. The two related exhibitions were organised by

Boat Carnival 18-20 June

Belgrade City Museum and the Italian Culture Institute. Zadužbina exhibited books that had been inspired by the work of Ivo Andrić and at the Italian Culture Institute one could view books inspired by Fagazzaro.

Antonio Fogazzaro, a prominent writer from Vicenza involved with the Modernist movement is one of most important Italian writers of the late eighteen hundreds and early nineteen hundreds. Ivo Andric, one of the greatest writers of the twentieth century, is the only writer amongst South Slavs to receive a Nobel Prize and is the most translated Serbian writer.

International Prague Spring Prague, Czech Republic 12 May–4 June

FEKP - Festival of European Short Stories Zagreb & Split 28 May - 3 June

The European Short Story Festival was launched in 2002 and is one of the first festivals in Europe dedicated to this literary form.

More than 70 writers from 15 European countries have participated in FEKP. The festival has been held in six Croatian cities such as Zadar, Split and Rijeka. The festival has announced and presented 15 European anthologies of short stories,

Wim Wenders film screenings Niš 16-21 May

On the occasion of the 65th birthday of German director and producer Wim Wenders, Goethe Institute organised screenings of some of his most valuable film works.

One of the greatest reformers and innovators of European film, Wenders is representative of ‘New German Film’. The screening included the following films: Movies Scarlet Letter, Alice in the Cities, Kings Road, The American Friend, The State of Play, Paris/Texas, Wings of Desire, Lisbon Story, Hotel Room 666, Brothers Skladanovski, When Past Knocks. important musical anniversaries including works by the composers involved in its programmes, and presents Czech as well as world premieres of compositions by contemporary authors. Artists and orchestras of the highest quality are invited to perform.

Me for Japan Kolarac Foundation Hall 17 May A concert to help the people of Japan, under the title “Me for Japan”, featured some of the leading Serbian artists and was held on 17th May at Kolarac in Belgrade. The concert featured violinist Jovan Kolundžija, pianist Nada Kolundžija, St George strings

with at least as many festival guests as books. Festival organisers will run seven translation workshops in modern European literature, whose winners, in collaboration with international partners, will be rewarded with study trips to Poland, Italy, Ireland, Sweden and Spain.

This festival is about enjoying reading and the discussion of selected books, films projections, concerts, and Croatian writers (and thereby sometimes singing).

quartet, opera artist Dragana del Monaco, Renaissance Ensemble, the brothers Teofilović, Piano duo LP and guitarist Vera Ogrizović.

The concert “Me for Japan” gathered top Serbian artists around an idea to help the people of Japan in times of need. Total revenues from ticket sales, as well as donations were deposited into the account that the Embassy of Japan in Belgrade opened to help the people of Japan.

The concert was supported by the Japanese Embassy in Belgrade.

4 Saxess Dom Omladine, Belgrade 22 May Members of sax quartet “4 SAXESS” are music academy graduates from Ljubljana, Zagreb, Vienna and Frankfurt and their musical knowledge was upgraded in Bordeaux, Paris, Boston and Ljubljana. Band members

experiences and individual abilities are paired in a homogeneous whole, and create a unique and recognisable sound. The musicians of the ensemble explore different musical styles, periods, classical and popular music traditions, and are open to diverse modern musical trends. The programme of the concert held in Belgrade on 22nd May included Lunders- Worksong & Spiritual, Ragtime, Charleston, Gershwin / Dedenon- Suite (Porgy and Bess) and Bernstein / BerikSuite (West Side Story).

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culture calendar & NEWS

The programme of the seventh Boat Carnival will include a review of water sports, a ride on carnival-style decorated boats, performances by children and other carnival groups from Serbia and abroad. The Belgrade Boat Carnival will be held between June 18 and 20, and it will last for three days for the first time this year.

The central event will be held on Sunday, June 20, in the center of Belgrade and on the Sava River, in a section of the aquatorium and on the river banks from Branko's Bridge to the mouth of the Sava.

The Belgrade Boat Carnival will be organised this year as a part of the programme of big European manifestation "The Day of the Danube", which will also be celebrated in Serbia.

International music festival featuring an orchestral and theatre series, church concerts, recitals, morning concerts, chamber music and symphony orchestras.

The festival commemorates

interview BOJAN ZANOŠKAR, ARTISTIC MASK MAKER

Fine Art

Usually, highly educated people from Belgrade and other big Serbian towns buy my masks. Over half of the 300 masks I have made have been sold abroad

By Marija DAMJANOvić

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money I have earned from selling my art – maybe because I didn’t have time to think about whether living off my work was possible at all. Mid-last year, things were pretty tough and sometimes I do think that it is virtually impossible to live off ones artistic work.

Usually, highly educated people from Belgrade and other big Serbian towns buy my masks. Over half of the 300 masks I have made have been sold abroad.

Regardless of this, in the last few years, the shortage of money has severely affected the people who buy my work. They are being replaced by people who are dif■ Would you be kind enough to explain what is it ferent and who are moving to the cities with a differyou do exactly? As far as I understand, you don’t ent notion of culture and education. I think that undermake only masks. funded artists, who are not working inside the artistic - Generally speaking, the artistic masks that I make are display industry, share the same destiny as my clients. just one segment of applied arts that can be compared I am surviving thanks to tacit tolerance (and someto a painted sculpture, a threetimes hidden support) from dimensional image of small the people in the streets, galI am surviving thanks to tacit design or an assemblage. leries and the establishment. tolerance from the people in Amongst other things, such This comes from a person the streets, galleries and the masks are used in games, thewho really cares and who atre and film. We should not should be forgiven for wantestablishment confuse this with the souveing to earn less than a half of nir industry or a large run of manufactured masks. an average salary by doing unusual things that people I am also involved in lighting design, sometimes I desire and find interesting. make a lamp and I also draw a lot. However, I live off masks and the occasional photograph I sell.

■ Where do you find your inspiration for your work and why have you chosen to make masks?

■ Can you earn enough money in Serbia from what - I started making masks almost six years ago together you are doing? with painter and icon-painter Sanja Papović. We com- For the past five years, I have managed to live off the plemented each other greatly and we are still working together. The masks came into our lives purely by chance and took over pretty quickly. At that time, making masks was a forgotten art which lived an isolated life mostly in theatres.

I am inspired by everything – myths, stories, fairytales, elves, dwarves and dragons – the creatures whose existence still hasn’t been proven. I haven’t created a fraction of what I have imagined and planned and new ideas keep on coming. Sometimes, a mask is only a gesture, an idea or a facial expression and sometimes it depicts hundreds of characters and emotions. racing in the footsteps of almost forgotten arts and crafts that arouse every single sense, CorD has discovered one of the rare Serbian artists that makes masks. In an interview for our magazine, Bojan Zanoškar speaks about his passion for creating masks, whether an artist can live in Serbia by doing that and who are true lovers of this rare art.

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■ Where do you exhibit and sell your work?

■ How much does a mask cost and who in Serbia - I have showcased my work at several large-scale exbuys masks? hibitions mostly with Sanja (in Belgrade, Kragujevac, - A mask made by an artist costs between five and 50 euros, Vienna, and Toronto). I have also participated in a dozwhile abroad it is more expensive and more appreciated. en group exhibitions of Although purchasers are I am inspired by everything – myths, applied arts, as well as obusually intellectuals, masks apstories, fairytales, elves, dwarves solete arts and crafts fairs peal to variety of people. They in Belgrade and Zemun. and dragons – the creatures whose are bought as presents and as I have also informala keepsake. Professional dancexistence still hasn’t been proven ly exhibited my work in ers, actors, theatres, collectors streets and parks. Streets, people and carnivals are a natand the odd gallery also buy them. I am often taken aback ural environment for masks. when the taste of ordinary people coincides with that of Unfortunately, in our towns, unlike other large towns artists and art professionals. Still, children are my favourin Europe, it is very difficult to obtain a licence to sell such ite, the most ruthless and infallible critics.

■ artwork. Galleries take half the money (and often are reluctant to reimburse the other half) and high fees for leasing public stands lead to the artwork being ‘lost’ in a sea of souvenirs and other goods. These are two very visible problems that artists in Serbia have to deal with in addition to a series of less visible ones.

■ Do you collaborate with foreign artists of similar profile and how developed is this artistic branch abroad?

- Masks made a big return at the onset of the current economic crisis. It heralded a time of self-examination and remind us of who we actually are. In Venice, now you have a guild of mask makers that was first established back at the time of great medieval carnivals.

One of the things that promoted masks was Stanley Kubrick’s 1999 movie ‘Eyes Wide Shut’.

The Internet has also played a very important role when it comes to us, the artists, coming together under one guild where we collaborate. Thorough cooperation has become virtually impossible since ordinary people like us have difficulty in finding money for frequent travel. The same goes for attending exhibitions abroad. When you pay all the permits you need to have, transportation and insurance costs etc., you need at least 2,000 euros to cover the costs. We are still surviving and manage to occasionally exhibit abroad by helping each other and being helped by our friends and the Internet. cordeditorial@cma.rs

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Restaurant - vapiano

Speedy and Breezy Even a fussy eater will find something to tempt their palate – from a simple bolognese, or carbonara to a more creative scampi and spinach, tacchino piccante (chicken breast, orange-chili sauce and peppers) to the rather intriguing curry all’anatra

By Philomena O’BRiEN Photo Boško KARANOvić

Vapiano’s preparation area runs almost the length of one wall and consists of four pasta bars and two salad bars.

Diners, selecting from a menu in front of them, choose a he most noticeable novelty of Vapiano is its locapasta of their choice and then match it with one of over tion. Found at the highest level of Ušće shopping 20 pasta sauces. Even a fussy eater will find something centre, this is an eatery that allows one to avoid to tempt their palate – from a simple bolognese, or carthe crowds, to sit in a relaxed and breezy environbonara to a more creative scampi and spinach, tacchiment, while enjoying a bit of Italy in Serbia. The other no piccante (chicken breast, orange-chili sauce and pepkey feature that first-timers pers) to the rather intriguwill notice is that most of the Guests are welcome to help ing curry all’anatra (duck meals are especially prepared breast, fresh vegetables, curthemselves to parsley, oregano, or assembled in front of you ry sauce, peanuts). I love the and basil etc, to add the finishing – standing at the salad or pasfact that optional extras are ta bar, your own personal available which allows you touches to their meals chef will take your order and to do a bit of chopping and then set about assembling your meal as you watch. changing with the flavours of your meal. Pasta not your Vapiano takes great pride in the fact that just about thing? Vapiano also has a decent selection of around 18 everything is made or prepared on site – even their pastas ‘pizzas of the house’ - with the simplicity of a margherare created in the special pasta-room which happens to be ita or a mixture of rocket salad, parmesan, tomato sauce, in operation this time we visit. mozzarella to the more imaginative gamberi e rucola Based on the mantra of freshly prepared, tasty food, (prawns, rocket salad, olives, tomato sauce, mozzarella)

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or even a l’acacia pizza (ham, figs, acacia honey, tomato and scampi sauce, make for a perfectly light meal on a sauce, mozzarella). hot Spring day.

True to form, salads are also freshly prepared here We dine on the restaurant’s rather expansive roof-top while you wait, and while ordering from your ‘salad chef’ terrace. A perfect location in warmer weather, and even on you are able to add optional extras, for a price of course. a mild winter’s day. I consider this area one of the highI’ve previously tried a number of the salads here and found lights of the eatery. With wooden bench seating (and them quite good. couches at one end), umbrellas, and Having tried a number of the wooden decking, this space can’t standard menu options already, tohelp but give an air of casualness day we decide to sample a couple of and relaxation. Based on the fact the pasta ‘specials’. I select the ‘raviothat it is about four stories up, it also li d’arancia’, described as a sauce of offers expansive city views and that olive oil, scampi, vegetable broth, orbig, big Belgrade sky. ange liquer, crème fraiche, orange filAnother nice Vapiano-touch are lets, cinnamon, spring onions, ricotta, the herbs-pots scattered around the parmesan, potatoes, orange juice and restaurant, in large condiment boxbreadcrumbs. An interesting combies and also in a couple of practical/ nation methinks. My companion, decorative ‘herb walls. Guests are after much ‘humming welcome to help themThere is a sudden flurry amongst the and haaaring’ also opts selves to parsley, oregafor a monthly special chefs and the sound of stirring and sizzling no, and basil etc, to add ‘pasta, salami e rucothe finishing touches accompanies the slow waft of delicious la’, a yummy sounding to their meals. combination of olive aromas making their way around the room There is also a fulloil, salsiccia siciliana, onion, tomato table-service bar (however diners sauce, arugula, parmesan and cherry are very welcome to order from tomatoes. the bar if they so choose) and inThere seems to be a bit of a side the restaurant is a mixture of lunchtime rush just after we arbench-seating, stools and a couch arrive and all food preparation staea. Vapiano just works as a causal tions are in full gear. There is a sudeatery with a focus on fresh ingrediden flurry amongst the chefs and ents, and tasty meals. I find it very the sound of stirring and sizzling simple and effective. Self-described accompanies the slow waft of deas a ‘fusion of creativity and quickly licious aromas making their way prepared meals that then allow you around the room. Yes, I may have to relax and enjoying your dining to wait for my meal, but I enjoy the experience’... I’d say in a nutshell process of having it assembled in front of me – for it’s that pretty much sums it up. pure entertainment value, and also the fact that the chef All in all, Vapiano provides a civilised dining solution can ask me if I want extra garnishing, yes or no to garand for me when the tummy-rumbles hit while shopping lic, salt, pepper etc. at Ušće, Vapiano calls. A quick nip upstairs and a meal Both meals are tasty... and of course fresh! The meaty, out on the terrace will often result in me forgetting I am strong flavours of my companion’s pasta are a winner, in a shopping centre. The eatery is by no means top-end and the combined favours of my ravioli with orange but it does not pretend to be.

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travel

Destination ‘luxuRy’

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here are people with a shared lifestyle the world over. Whether in Europe, Asia, or the Americas, they have one thing in common, something that brings them to luxury hotels all around the world. The perfect resort has never been built, nor will it be, but the goal is to create simple luxury that is afforded by an exceptional, harmoniously blended location which offers enriching, enlightening and rewarding ‘lifestyle experiences’.

aman Resorts, a Travel House preferred Hotel Partner Aman Resorts received the highest ranking for the “World’s Best Hotel Chain & Marketing Group” in Zagat World’s Top Hotels, Resorts and Spas 2009/2010 edition.

The guide covers 1,250 properties in over 99 countries worldwide and rankings are based on input from 21,000 frequent travellers and travel professionals. Aman properties received leading ratings in categories including Top 50 Small Resorts, Inns & Lodges, Top Service, Top Dining and Top Destination Spas, to name but a few.

If you measure success by room numbers, Aman Resorts hasn’t achieved all that much. This exclusive hotel company has never focused on being the biggest. They prefer to think, small, intimate, involving. It’s not that they are better than big hotels because they are small.

They are different, that’s all. Aman Resorts responds to a contemporary lifestyle. That’s what Aman Resorts offer – a lifestyle experience, without limitations.

Bill Fischer a travel adviser to celebrities and the super wealthy, (each client pays a 10,000 USD initiation fee plus 5,000 USD annual retainer and those who question the fine print are unceremoniously banished from the Fischer Universe) makes it his business to keep tabs on the world’s best hotels and to discover the next ‘hot’ places.

Asked about latest travel trend, he comments: “The takeover. Instead of taking rooms, you rent the whole castle, hotel or yacht. We did a party for fifty at Skibo Castle in the Scottish Highlands, where Madonna was married. And we arranged a five-day Arabian Nights birthday party for 100 guests at the Amanjena (Aman Resort) in Marrakech. There were camel rides! Our guests wouldn’t stand for smelly camels, though, so we washed them down in Johnson’s Baby Shampoo and brushed their teeth.”

For those of you who think Marrakech and a camel ride is too exotic, you can try the new Aman Resort just nearby in Montenegro.

MONTENEGRO, SVETI STEFAN • Aman Resort, Vila Miločer 6* • 1 night in Village Room with breakfast per person from 382 euros • Air transport from 10 euros + taxes For information and reservations for all Aman Resorts Worldwide, please contact our Call Centre on + 381 (0)11 222 0600, or visit one of Travel House’s Travel Agencies in Belgrade and Novi Sad at your preferred location.

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Six Senses, a Travel House preferred Hotel Partner Six Senses is where attention to detail and focus on the reality of the destination is the driving force, together with an unwavering commitment to the environment. Service levels at Six Senses are very high, with butlers exemplifying the personal attention offered to every guest. Dining and refreshment alternatives cover international and locally-inspired cuisine and an impressive selection of vintages from around the world.

A Six Senses Spa is a key component of a Six Senses experience.

The accommodations at Six Senses are exclusively private pool villas, which provide generous personal space and present an uncompromised standard of luxury. Offering elegantly designed architecture and natural furnishings, they are positioned with an image supporting the Six Senses theme – Redefining Experiences. *SUSTAINABLE – LOCAL – ORGANIC – WHOLESOME LEARNING – INSPIRING – FUN – EXPERIENCES The values communicated in ‘slow life’ * commitment, positions Six Senses as the leader in providing sustainable tourism options for consumers, suppliers and partners. From the use of building materials and finishes from sustainable and local sources wherever possible, to the quality and origin of the food that is offered, and to the innovative experiences that are not only fun, but also heighten the guest’s knowledge.

The reduction of carbon footprints that result from transporting goods over long distances is a prime component of ‘slow life’ *, as is the sourcing of prime produce from local communities. Chemical free organic options also result in more wholesome offerings and enhanced flavours. Keeping guests informed of these initiatives teaches them how to reflect the philosophy into their own lives, and how these intelligent alternatives benefit them individually, and our planet as a whole.

Thailand, Six Senses Hideaway Hua Hin & Spa

ondé Nast Traveller – awarded by the UK ‘The C Gold List 2011’ Six Senses Hua Hin, Thailand Soneva Gili by Six Senses, Maldives Maldives, North Atol • Soneva Gili by Six Senses 6* • 1 night in Villa Suite with breakfast per person from 491 euros • Air transport from 361 euros + taxes Thailand, Hua Hin • Six Senses Hideaway Hua Hin & Spa 5* • 1 night in Poll Villa with breakfast per person from 195 euros • Air transport from 250 euros + taxes Travel House Tip: Relaxation at the Pool Villa, Six Senses Zighy Bay, Oman combined with an unforgettable paragliding experience with a breathtaking view of the beautiful surroundings.

For information and reservations for all Six Senses Resorts Worldwide, please contact our Call Centre on + 381 (0)11 222 0600, or visit one of Travel House’s Travel Agencies in Belgrade and Novi Sad at your preferred location.

Maldives, Soneva Gili by Six Senses cordeditorial@cma.rs

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Blue Palace, a Luxury Collection Resort & Spa Elounda, a Travel House preferred Hotel Partner Nestled on the famed coast of Elounda on the Island of Crete, Blue Palace Luxury Beachfront Resort offers emblematic views to the relics of Spinalonga Island. A luxury resort in Greece with exceptional charm, architecture and style, Blue Palace Resort & Spa is the perfect hideaway to combine authentic island luxury accommodations, the finest award winning cuisine and a soothing retreat for the senses.

Elegant bungalows, exceptional suites and four private villas offer the opportunity for unsurpassed celebrations at Blue Palace Resort & Spa. Each guest room opens up to a large veranda with breathtaking views of the alluring Aegean Sea and most have a private infinity pool for daytime relaxation and private dining.

The Blue Palace Resort & Spa is the ultimate place to celebrate a momentous occasion. On a sunset cruise or for a private dinner, overlooking the stunning peninsula or under moonlight nights, Blue Palace offers a choice of romantic interludes for intimate celebrations.

Upon arrival, French Champagne and authentic local sweets from Crete are prepared by the chef. A magnificent romantic setting will decorate your bedroom on your first night. Enjoy breakfast in your room or suite with exceptional views the next morning.

As Katina Papadomanolakis, Director of Sales & Marketing always says: “The best place on earth for relaxation should be your own home, that’s why we are striving to recreate that ‘unforgettable experience at home’ that you always desire.”

If we were to ask Lady Gaga for her impressions she would probably confirm this statement because she has twice secretly stayed at Royal Villa in the Blue Palace Resort. The Royal Blue Villa is a majestic three-bedroom residence unrivalled elsewhere on the island. Each bedroom has an en-suite marble bathroom, some with their own fireplaces, and a private veranda with gardens. Situated on the edge of the resort, the villa’s astounding views and uncompromising privacy makes it one of the finest choices.

Travel House Tip: Choose this villa as the most luxurious and largest private residence with absolute seclusion, with a heated pool and spectacular sea views.

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Awards include: Tatler Spa Guide, 101 Best Spas, 2011 Condé Nast Traveller Greece, Readers Choice Awards, Best Resort in Crete, 2009 World Travel Awards, Greece’s Leading Spa Resort, 2008.

Greece, Crete • Blue Palace, A Luxury Collection Resort & Spa 5+* • 1 night in a Superior Bungalow Sea View with breakfast per person from 153 euros • Air transport from 166 euros + taxes For information and reservations for all Luxury Collection Resorts Worldwide, please contact our Call Centre on + 381 (0)11 222 0600, or visit one of Travel House’s Travel Agencies in Belgrade and Novi Sad at your preferred location.

One & Only, a Travel House preferred Hotel Partner Set in some of the most beautiful locales in the world, a rare collection of jewel-like resorts embraces individually authentic styles and personalities born of their local culture. Remote island retreats, enchanting palaces and contemporary haute chic villas, each feature a genuine hospitality and a lively energy that are unrivalled. In the Indian Ocean and Africa, Arabian Gulf, the Pacific and Caribbean, discover the promise of distinctive resorts and unique experiences in the world’s best destinations.

Design: The architecture, interiors and detailing of each resort tells its own individual story. Vistas are spectacular. Décor is lavish. The environment created provides unrivalled experiences for guests.

Location: Discover the identity, culture and customs of a chosen

destination, experiencing a true sense of place at each resort…the Arabian mystery of Dubai, the barefoot luxury of the Maldives and Mauritius, the serene beauty of the Caribbean, and the extraordinary drama of the Baja Peninsula and southernmost tip of South Africa.

Relaxation & Animation: You have the choice of complete relaxation within luxurious surroundings or discovering the spas, the beaches, exceptional dining opportunities, bars and entertainment and extensive sporting facilities.

Genuine Hospitality: Exceptional, discreet and professional service is an essential part of the One & Only experience; ensuring that all customers feel like honoured guests rather than paying visitors.

Travel House Tip: One & Only, Cape Town, South Africa.

With captivating views of Table Mountain from its enviable location in the Victoria & Alfred Waterfront, the resort is a destination unto itself.

Discerning travellers are invited to discover the celebrated cuisines of Nobuyuki ‘Nobu’ Matsuhisa and Reuben Riffel, socialise in the high-energy vibe of Vista Bar and sample rare and undiscovered vintages at the stunning Wine Loft. The sublime calm of the city’s most expansive and sophisticated spa offers an indulgent escape, while NEO boutique debuts an enviable collection of designer fashions, some available for the first time in South Africa.

As the first luxury hotel to open in Cape Town in nearly a decade, the resort is designed to celebrate the city’s wine, art, design and spirit, balancing contemporary glamour with an authentic South African style.

South Africa, Cape Town • One & Only Cape Town 6* • 1 night in Marina room with breakfast per person from 223 euros • Air transport from 499 euros + taxes For information and reservations for all One & Only Hotels Worldwide, please contact our Call Centre on + 381 (0)11 222 0600, or visit one of Travel House’s Travel Agencies in Belgrade and Novi Sad at your preferred location. cordeditorial@cma.rs

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chill

out!

SAVILE ROW RENTS RISE

ment, which is seen as a bellwether for office demand in the West End. The deal highlights returning confidence among hedge funds and the attraction of the West End as a business location. D2, which is advised by CBRE and H2SO, now plans to market the remaining 25,000 square feet of space at 23 Savile Row at more than £100 per square foot.

US hedge fund York Capital Management has paid £97.50 per square foot for office space at 23 Savile Row, almost twice the price per square foot of a suit from a tailor on the famous street. York Capital has acquired 7,600 square feet of office space with just 12 months rent free at the D2 Private develop-

(Source: www.telegraph.co.uk)

PLUS-SIZE YOGA Buddha Body Yoga in New York City, offers small classes, individual attention, and plenty of blocks, bolsters, belts, balance balls and blankets to ease recalcitrant limbs into warriors poses. But there won’t be the usual bevy of pony-tailed sylphs making pretzel shapes. Buddha Body yoga is strictly for the plussized practitioner: no sylphs allowed. “When I tell 120-pound (55 kg) people they can’t come, they get very offended, ALLIGATOR TO ATTRACT WOMEN which I find fascinating,” said Cook County, Ill., Sheriff’s Police seized a four-foot American Michael Hayes, owner and alligator from a south suburban man who says he kept the operator of Buddha Body. animal as a pet to attract women. Dewayne Yarbrough, Hayes describes his clients as 43, was charged with possession of a dangerous animal. plus-sized, not overweight.

Yarbrough said he purchased the alligator five years ago in Indiana for $200. To keep the alligator’s size down, “There are heavy people Yarbrough housed the animal in a small fish tank and onwho are fit and not necly fed it a meal of 10 live mice once a month. Female essarily fat,” he explained.

American alligators average about eight feet long, Personalized yoga, with classmales around 12 feet. It is unknown whether es, books and videos catering the gator was male or female. Yarbrough is for plus-sized people, the elderly due in court July 5 in Markham. and others is a growing industry.

(Source: www.msnbc.msn.com) (Source: www.reuters.com)

SCIENTISTS STUNG BY BEE THEFT Several thousand bees that were part a multi-million pound neuroscience research project have been stolen from a British university. Four bee hives containing several thousand British black bees were stolen from a medical school in the city of Dundee. “This theft will undoubtedly hamper our research,” said Dr Chris Connolly, the lead researcher on the Dundee project, who

reported the bees missing. In a statement he described the bees as “very unique” and said they should be easy to identify if they are sold on. The hives are a part of a two million pound project at the Centre for Neurosciences at the Dundee University’s medical school which is investigating the potential effect of pesticides on bee learning and health.

Police said there were keen to trace a white van and two men that were seen in the area at around 0900 GMT on May 8.

(Source: www.reuters.com)

SENT OFF FOR ‘DANGEROUS HAIRCUT’ An Australian Rules player was sent off because his gelled mohawk haircut was deemed too dangerous. Nathan Van Someren, who plays for Victorian side Simpson Tigers, was told by the umpire to leave the field in the third quarter of a match “because his hair was too dangerous” and might have poked another player in the eye. Van Someren said he had played with the hairdo for three years without a problem. The Victorian Country Football League (VCFL) said the umpire was wrong, and that the rule used to have Van Someren sent off referred to items such as jewellery and protective equipment that could injure another player. “In this case it’s probably been interpreted a little bit too broadly,” VCFL umpiring general manager Gerard Ryan told reporters, adding that all parties were working to resolve the issue.

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SKATEBOARDING SENSATION FINED

killjoy council officials in Brighton, East Sussex, where his dog Bodhi is a familiar sight as he performs kerbside stunts. The talented terrier has become a YouTube sensation with more than 20,000 followers, and has even appeared in a brief clip on ITV show Britain’s The owner of a skateboarding dog has been fined £80 and Got Talent last month. But after two women complained they had tripped over Bodhi’s skateboard, Brighton & Hove City Council fined threatened with legal action for not keeping his Lakeland terrier on Mr Fell for failing to keep him on a lead. Mr Fell says “It’s somea lead. Jonathan Fell, 51, has already thing that makes people laugh. I never trained him to skateboard, (Source: www.telegraph.co.uk) been threatened with a civil civ order by it’s just what he loves to do.”

“KISS APPLE” FOR BETTER BREATH In South Korea, home of kimchi and other pungent, garlicky food, having fresh breath for life’s big moments -- such as a kiss -- is a major concern.

Researchers may soon have a natural, portable answer -- a “Kiss Apple” tiny enough to be stashed in a pocket or purse for quick eating prior to locking lips. “We want young people to eat many apples and came up with the idea of portable apples for your bags,” said Hwang Hye-sung, a researcher at South Korea’s Rural Development Administration, who called it a “do-ityourself bad breath treatment.”

Apples help freshen breath naturally and remove pieces of food stuck in the teeth, but the ping-pong ball-sized apple would be easier to carry around, and far less filling to gulp at a critical moment.

(Source: www.reuters.com)

HOLY DEPOSITS In a bank with no security gates, guards or locks, deposits from thousands of customers from across India are stacked on shelves, protected from theft by the grace of God. In a cramped room in a small house in the north Indian state of Uttar Pradesh, Ram Ram Bank offers no interest or loans, but has around 5,000 customers who flock to deposit documents bearing God’s name. “There is no need for security as there is no fear of any theft,” said Lovelesh Tewari, who founded the bank 25 years ago. “People feel better by writing God’s name as it becomes a medium to release their pent up frustrations and eventually the faith makes them work toward their goals.” The bank’s customers scribble “Ram,” the protagonist in the Indian mythological epic Ramayana, on pieces of paper as many as 100,000 times and deposit them in the bank. Ram is also known as Rama. “My daughter got admission in the engineering college after I deposited Ram’s name in the bank,” says Shahikala, one of many happy depositors. The bank’s list of depositors includes bureaucrats, politics and members of the judiciary. Even the father of superstar cricketer Gautam Gambhir is a customer. (Source: www.reuters.com)

NEW SCRABBLE WORDS Street slang including ‘thang’, ‘innit’, ‘blingy’, ‘Wiki’ and ‘Myspace’ have been added to an official reference book for Scrabble players. The Collins Official Scrabble Words also now includes, from Indian cookery, ‘keema’, ‘aloo’, and ‘gobi’’ among nearly 3,000

new additions to those allowed in the game.

The list for the latest edition of the Scrabble words book, which was released mid-May, was created by staff at Collins Dictionaries based in Glasgow. The publishers say it is the “most comprehensive Scrabble wordlist ever produced”.

(Source: www.dailytelegraph.com.au)

ILLEGAL IMMIGRANTS ARRIVE IN STYLE

chill out!

A Malaysian man faces charges of attempting to smuggle nine Chinese illegal immigrants into the United States as passengers on board the luxury RMS Queen Mary 2 ocean liner. The group, carrying forged Japanese passports but speaking scarcely any Japanese, was caught by immigration officials after disembarking in New York City. Officials said it was unusual for illegal immigrants to arrive in such grand style.

“We haven’t really seen this in the past because of course it is expensive. It’s quite an investment just to get on this ship,” said an official.

According to court papers, Fatt Kwee Wong of Malaysia admitted to customs officials he was paid $3,500 each to help the five women and four men sneak into the United States.

(Source: www.reuters.com) cordeditorial@cma.rs

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techno

talk

Gizmos

Gadgets

FIVE NIFTY TABLET COVERS Keeping your tablet safe is a whole lot easier if you have one of these top-notch tablet covers

Smartblazer 2 iPad 2 Leather Case With the purchase of every new tech toy, the need to protect it is paramount, and the SmartBlazer 2 iPad 2 Leather Case will do so in style. The SmartBlazer 2 iPad 2 Leather Case is a sleek polished case that is perfect for holding the tablet. There’s a magnetic cover that folds over, which means you don’t have to worry about flimsy tops that may expose the gadget without your knowledge. If you’re extra cautious, the SmartBlazer 2 can actually convert into a stand so that you never have to remove the iPad from its case if you don’t want to.

THE DAMAGE: €45

Dior Homme iPad Case This all-black cover is simple in design and is also constructed with the best leathers to comfortably secure your iPad. It has mastered the art of mixing luxury with technology. The bridge between these two spectrums was once far from being built; however, due to the vast amount of iPads being sold, it only makes sense to bring luxe to tech.

THE DAMAGE: €625

Booqpad iPad 2 Case This luxurious folio case doesn’t just protect and carry the snazzy iPad, but also comes packed with old-school features like pen and paper, fit for any analogue fan. If you’re not yet used to the touchscreen keypad, a pen holder and a 50-sheet notepad come handy in this leather cover, so you can quickly jot down notes. The Booqpad iPad 2 Case also comes with three inner pockets for documents, business cards and loose notes. A silver button clasp holds the agenda cover together, giving it an overall professional and elegant look.

THE DAMAGE: €70 74

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Travelteq Leather iPad Case This luggage company has created a handsome leather tablet case with a luxurious covering handmade from Florentine Vacchetta leather. It not only protects your gadget in a stylish case, but is also adjustable for three different position placements. It even has a little compartment for business cards! The TravelTeq Leather iPad Case is perfect for a globe-trotting jet-setter.

THE DAMAGE: €210

Twelve South Bookbook iPad Case Whenever you miss turning the pages of an old school book, use the Twelve South BookBook iPad Case. The vintageinspired case is handmade in a distressed look made of hardback leather and also doubles as an adjustable stand.

With its classic looks, this hardcover sleeve will make you feel as if your iPad is a real piece of literature. An added bonus is that the unique design of the case disguises your pricey tablet so you won’t have to worry about anybody stealing your camouflaged sleek device.

THE DAMAGE: €55

AUDIOPHILE WRAP-UP Ten audio components that will be music to your ears!

Amplifiers Yamaha A-S500

THE DAMAGE: €375

Audio Research VSi60 Integrated Amplifier

techno technotalK

The winner of the ‘Best stereo amplifier up to £500 Award 2010’, Yamaha has cracked the budget stereo amp nut with this stunningly capable product. With strikingly clear and dynamic sound, it features fine timing, impressive resolution and plenty of other features. Used with well-behaved speakers and electronics – Monitor Audio's BX2s and Marantz's CD6003 CD player, say – the A-S500 shines. If you want a generously specified amp that you can plug in and forget, it's the S500.

Like all other ARC components, the VSi60 is hand-built in Plymouth, Minnesota, by skilled technicians using high-quality parts and heavy circuit boards. The VSi60 looks like a tube amp but is technically a hybrid; it has a JFET input stage. At 15kgs it is by no means light and the top plate, through which protrude the tubes, transformers, and capacitors, is of milled aluminium. A cage-like cover that protects the tubes is available at an extra cost. The front panel is available in black or silver.

THE DAMAGE: €2775 cordeditorial@cma.rs

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talk Plinius Hiato If you’re after a top class integrated amplifier the Hiato is the one for you – it’s as musically engrossing an amplifier as you’ll find for the money, but as a downside it takes up a fair bit of rack space and in absolute terms this isn't the most transparent machine you'll hear. The Hiato's phono stage has adjustable gain, and is quiet enough to cope with low output moving coils. It's impressively built and finished – just as you'd hope for at this high price point – and it's decently featured for this type of product. If sheer entertainment is your priority, there is no better alternative at this price.

THE DAMAGE: €7680

CD players NAD C545BEE A gifted CD player that can still rub shoulders with the very best decks that the budget market can offer. This player gives rhythmic, fluid delivery, displays wonderful balance, detail levels and agility. It doesn't take long for the C545BEE to show you why it is considered a five-star machine. For a start, the sound is expertly organised every instrument and vocal takes its place in an open, airy soundstage. The edges of notes are crisply defined, and the NAD's sure-footed approach to music is unwavering and confidence inspiring.

THE DAMAGE: €395

Leema Antila IIS This latest version of the Antila remains an excellent buy. In terms of pros the player displays a fluid sound that balances refinement and attack beautifully, it is also extremely solidly built. It uses clever digital-to-analogue circuitry made up of 20 24bit/192kHz converters improving linearity and reducing noise levels and jitter.

In use, it isn't the slickest machine around. The transport is a little noisy when skipping tracks or loading discs, and it feels a little slow-witted. But that's where criticisms end. The Antila is a smoothsounding performer with the kind of full-bodied tonality that's rare in the digital world.

THE DAMAGE: €3400

Roksan Caspian M2 CD Winner of the ‘Best CD player £1000-£2000 Award 2010’. The Caspian M2 is a sizable jump up from the last generation - it’s a large slice of high-end performance on the cheap. The player combines refinement, bite and rhythmic ability better than most others at this price level. It has deep, rich low frequencies and combines them with a rarely heard agility. High frequency sounds shimmer, yet manage to combine insight, bite and refinement beautifully. This player is a fantastic all-rounder - overall sonic authority is a match for anything else at this price level. Put it all together and the result is a superbly balanced presentation that works as well with the funky pop of the Black Eyed Peas as it does a Beethoven symphony.

THE DAMAGE: €1815

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Speakers

ProAc Response D18

Dynaudio Excite X12 This pair of X12 standmounters is the first taste of Dynaudio's replacement for its successful 'Audience' series. Though they're compact cabinets that seem ideal for putting on a shelf, they work best out in free space.

The X12s are a smooth, coherent listen. Low frequencies are deep and solid, the midrange vocals are alive with character, and the top end attacks with control. They don't find it hard to reveal detail, but they can struggle to organise it effectively. At the price, though (especially when you factor in the fine build), the X12s are among the most musical speakers around.

Winners of the ‘Best stereo speakers, £1000-£3000 Awards 2010’. The Response D18s look ordinary, but are capable of spellbinding sound. As far as cons go, they could be considered rather plain looking and some rivals produce more bass. However, as is traditional with ProAc, a wholly conventional, some would say ordinary, specification has resulted in a staggeringly musical speaker. There's an underlying warmth to the sound, but it never extends to overt richness. What you get instead, is a lovely, expressive midrange coupled to a beautifully well-behaved treble.

THE DAMAGE: €2385

THE DAMAGE: €790

PMC Fact 8

Neat Momentum 3i

THE DAMAGE: €2035

technotalK

As some of the most enjoyable standmounters around, these speakers deserve serious consideration. They boast a fast, dynamic and massively enjoyable sound with excellent timing but you're in for a disappointment if you expect Neat's Momentum 3is to ooze luxury. The Momentum 3is are on surer ground when it comes to their engineering. The technical highlight is the use of twin mid/bass drivers. The Momentum 3is has a deeply impressive bass performance - it is taut, and punches with a ferocity you'd scarcely credit from a box that stands just 38cm high.

An experiment from PMC - but a successful one.

These speakers are highly desirable in every way. PMC has consistently delivered speakers that offer an articulate, engaging sound, accurately reflecting the beliefs of its owner, Peter Thomas. The Fact 8s are slim, at just 15cm across, and they're more luxuriously finished than other PMCs. These unfussy speakers are clean, accurate and fast.

Vocals are rendered with clarity and realism: while the sound is never less than honest, it's not brittle or unduly hard either, despite a leanness to the presentation.

These PMCs are exceptional.

THE DAMAGE: €5340

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Tradition ESTARE CULTO is the leading regional fashion company. It is prosperous and stable with continuous growth throughout the last two decades. With well-balanced business and investment plans, ESTARE CULTO is consistently widening its market position through both manufacturing and retail in Croatia and abroad.

The name ESTARE CULTO has been linked with fashion as the phenomena of contemporary lifestyle since 1889. Built on tradition and knowledge, the company has developed and perfected itself over the years. Today, ESTARE CULTO is the leading Croatian textile company which is also present in foreign markets.

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Brand ESTARE CULTO's fashion statement comes from its own brand ESTARE CULTO. This new brand is introduced on the domestic fashion scene through a network of retail stores spread all over Croatia. As franchises, ESTARE CULTO shops are present in neighbouring countries.

Besides the export of textile products, ESTARE CULTO offers its services, to some of the most demanding fashion companies of Western Europe.

ESTARE CULTO products are made of top quality materials and in the manner of the best craftsmanship. It may be easily said that the apparel this company offers, has all the attributes of an exclusive and unique blend of quality and design.

ESTARE CULTO's main goal is to establish its brand in order to be competent with world-wide known brands and to help in creating new designs with outstanding quality. Also, the further widening of its presence in international markets will be achieved through wholesale contracts in the United States of America, Russia, Canada, Germany, Italy, France, Portugal and Japan.

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“ Made to measure“ The peak of ESTARE CULTO´s offer is its “Made to Measure“ service. Made to Measure refers to the time-honored craft of making garments one at a time from a pattern created specifically for each client based on his personal measurements and desires.

In a pleasant conversation with designers, ESTARE CULTO´s clients may choose patterns and fabrics that best suit their personality, while the rest is in the hands of our experienced tailors. Each client is treated individually, which assures that every garment fits the body 100% in every detail.

Every ESTARE CULTO product is carefully made from the very beginning. The designer team works closely with fabric and other suppliers to ensure that their ideas will be feasible to once the garment begin its life outside the drawing board.

After carefully selecting the fabrics, the manufacture begins. Pattern matching, marking and preparation for fabrics cutting is done by master tailors, joining hand-cut craftmanship with modern technology processes.

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The sewing of ESTARE CULTO products includes many phases, combining traditional methods of lining, basting and topstitching with the most upto-date methods of assembling the finished parts of the future garment.

We keep to every detail and every phase of work, paying respect, and in this way, to the tradition of the company's name. Both the men’s and women’s collections are made in ESTARE CULTO's modern production plants in Croatia, ensuring that product quality and production standards will not be compromised in any way.

Checking every finished ESTARE CULTO piece is the final effort in achieving a top quality product. Our rigourous checking-process is done by industry specialists examining every single piece of the garment before it proceeds for sorting and final packaging.

The successful completion of all these processes is an assurance of quality for all the products made under the ESTARE CULTO brand.

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profile

Perfecting yourself is Crucial Companies who cannot provide professional training for their employees are making a big mistake and are

Manuela Šola Oršić, General Manager of Abracadabra Integrated Communications

indirectly slowing down the further development of their business

M

plishing the best possible business results via an ethical and responsible approach to work assignments is also important for her.

“A high level of motivation, being ready for education, being proactive and having familiarity with various industries is certainly an advantage, and professional education and professional curiosity about new means of communications and trends in the business world are also necessary. And finally, the creativity of each individual is a very important criterion for employment,” Manuela points out.

She explains that this is a creative industry where every ‘screw of the whole machine’ has to be perfect.

She invests a great deal into education, so, apart from MBA studies at Cotrugli Business School, she goes to lectures and educational seminars in Croatia and abroad whenever she has the time. She regularly reads professional literature.

“Constant education is the only way to run the company’s development. I feel that professional training is necessary, which means that companies who cannot provide this for their employees are making a big mistake and are indirectly slowing down the further development of their business,” Manuela states and points “The creativity of each individual is a very out that learning daily from clients is a rather imimportant criterion for employment” portant factor.

Her business motto is of course related to the agency she runs, and the aim is to develop it ethically and rience in the organisation of various events - from rathin a business sense. On the other hand, she privately feels er commercial ones to those with strict protocol. She feels it is important to create good quality relationships with her that this was the period during which she received her first colleagues, partners and clients. She feels contented and business experiences. fulfilled in such relationships.

“You gain basic business values and I have to say I was For those who deal with public relations she recomlucky to have worked with companies which nurture solid mends the following books: “Putting Public Back in Public business values, stimulate creativity and individual develRelations” by Brian Solis, “Brand Media Strategy” by Antony opment, so the environment has certainly had a positive Young, and “The Global Public Relations Handbook”. She influence on my development and desire to have my own says these are a good starting point. She personally, apart business,” Manuela comments. from this selection, reads a lot of books on management She selects her associates by estimating how much they and personal development.

■ really want to work in her agency. Their desire for accom-

anuela Šola Oršić gained her diploma from the Business College at the Faculty of Economy in Zagreb, and then continued her education at the London Public Relations School. However this was not the end of her education – she is currently undertaking MBA studies at Cotrugli Business School.

She says that during her studies she mostly acquired theoretical knowledge; however she started working early on in life.

“I was working on various projects in non-governmental organisations and the economy, so I have enriched my knowledge with everyday practical education.

This fitted perfectly with my professional and personal goals as I was aiming at independent entrepreneurship,” Manuela points out.

Thanks to this, she created ‘Abracadabra’, (www.abrakadabra.hr) which is becoming a regional PR agency with a respectable list of clients from various industries.

“Amongst them are numerous Croatian and foreign companies such as Nokia and the global company Visa, brands such as Procter & Gamble and so on,” Manuela adds.

Before opening a PR agency, she dealt with ‘event management’ and during this period, she gained vast expe-

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