CorD Magazine No.84

eu paths are Well known

Free Shooter Svetlana Bojković,

economically Well-designed

H.E. Andrzej Jasionowski,

Actress

Bogdan Lissovolik,

Ambassador of Poland to Serbia

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JuLy/Aug ‘11 / iSSuE nO. 84

Head of the IMF office in Belgrade

interviews opinions news comments events priCe 250 rsd

H.E. ARMANDo VARRIccHIo, AMBASSADoR oF ITAly To SERBIA

time to Move Forward

The path leading to full membership in the EU demands for a strong commitment to implement administrative and economic reforms SEpp BlATTER, pRESIDENT oF FIFA

Lord of the game

Joseph Sepp Blatter, better known as Sepp Blatter, The Most Powerful Man in Football, is once again the president of FIFA, the international governing body of football MIloŠ BuGARIN, cHAIRMAN oF THE SERBIAN cHAMBER oF coMMERcE

bright Future partnership

China is one of the most important Asian economic partners to Serbia and they should offer assistance in expanding the collaboration in construction, power plants, roads and other infrastructural projects MIKSER 2011

eruption of Creativity Belgrade’s Mikser Festival lasted for five days with over 1,500 people participating in the festival’s events

olIVER DulIć SERBIAN ENVIRoNMENT, MINING AND SpATIAl plANNING MINISTER

Ministry of exceptional

iMportANCe

A Daimler Brand

Three letters that turn love into lust.

The new CLS. The four-door CoupĂŠ. Sensuality and sense. www.mercedes-benz.rs

Mercedes-Benz Srbija i Crna Gora d.o.o, Sales to Diplomatic Corps/VIP Sales, Mrs. Biljana Dinic, Omladinskih brigada 33, 11070 Novi Beograd Phone: +381 11 30 19 107, Fax: +381 11 30 19 026, Mob: +381 63 27 52 67

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deepening partnership Network

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Dr Tanja Miščević, Secretary of State, Ministry of Defence, Serbia

Ministry of exceptional importance

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Bogdan lissovolik, Head of the IMF office in Belgrade

Serbian priorities

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Leaders

eu paths are Well known

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H.E. Andrzej Jasionowski, Ambassador of Poland to Serbia

Free Shooter

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Svetlana Bojković, Actress

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Vladimir S. Milovanović, CEO of Energoprojekt

EDITOR: Milan Vasic, m.vasic@aim.rs ASSISTANT EDITOR: Max Williams, m.williams@aim.rs ART DIRECTOR: Ilija Petrović, i.petrovic@aim.rs CONTRIBUTORS: Slavka Kovač, Marija Damjanović,

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Miloš Bugarin, Chairman of the Serbian Chamber of Commerce

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Tihomir Rajlic, CEO of Siemens Ltd. Belgrade

oMv Celebrates First decade in Serbia

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Karoly lajko, General Manager of OMV Serbia

Travel

A Fine Choice

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Restaurant ‘Đorđe’

eruption of Creativity

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Mikser 2011

Culture Calendar & News

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risk Control

techno talk

Faces & places

power dressing

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be happy – be danish!

When the Job pulls you Forward

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Miloš Božović, Director of the Centre for Investments and Finance (CIF)

Feature

Lord of the game

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Sepp Blatter, President of Fifa

Petar Savić, 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;

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Capital investments Necessary

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Worldwide experience

Sand & Seclusion

business dialogue

bright Future partnership

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oliver Dulić, Serbian Environment, Mining and Spatial Planning Minister

economically Well-designed

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Fashion

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Jelena zečar, Marketing and Public Relations, Director at Dunav Insurance Company, (Dunav Osiguranje)

Jelica Lepori, j.lepori@aim.rs 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

ABC Serbia

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comment

Deepening partnership Network The Republic of Serbia hosted the fifth NATO Strategic Military Partner Conference (SMPC) from the 13th to 15 June, 2011. SMPC is an annual event organised by the Supreme Allied Command Transformation (SACT), and represents a unique venue for debate for the Chiefs of Defence of all NATO, Partnership for Peace, Mediterranean Dialogue, Istanbul Cooperation Initiative Member States, and selected global partner’s states

Dr Tanja Miščević, Secretary of State, Ministry of Defence, Serbia

a view to preventing crises and contributing to their management. Other important issues were defence reform, capability and capacity building, education and training, emerging security challenges, such as cyber defence, energy security his is an occasion for highest military ranks in the world to have a frank and maritime security, including counter-piracy. and open discussion on issues important for all of those countries.

The most important topics of discussion, closely connected with the transforAfter three very successful conferences, there was a pause in mation of NATO, was to try to find out how to further improve partnership 2008 and 2009, due to the fact that NATO was in the process of transpolicy in the areas of operations, training, education, capacity building, deciformation in command, and also because it was preparing itself for the sion-making, funding and flexibility of cooperation programmes. adoption of the new Strategic Concept. Last year’s conference was held in The topic of the second session at SMPC in Belgrade was Building Capability Helsinki, addressing the new NATO Strategic Concept from the perspective through multinational and innovative approaches. NATO has long sought to of member states but also partnership countries. increase cooperation with respect to major weapons systems and strategic The topic of the SMPC in Belgrade is the implementation of the decision enablers, including it’s partners. The high cost, both to acquire and operate, of the last NATO summit held in Lisbon, November 2010 – therefore the tilarge or advanced systems and platforms in particular need to be shared. tle was “Post Lisbon – Delivering Transformation”. The focus of the discusThis is the well-accepted idea, but at the conference in Belgrade, it was dission was on building capabilities through multinational and innovative apcussed in the broader concept of “Smart Defence”. It should build awareness proaches, partnership and outreach, and assured access to the global comand a broad common understanding of what partners feel that are the best mons. Impressive topics, but even more impressive was the number and levideas for multinational collaboration to meet common shortfalls. Cooperation el of participation – all together 55 states were present (out of 69 invited), with NATO’s strategic partner – the European Union, it was pointed out dur16 Chiefs of Defence and 8 Deputy Chiefs of Defence, as well as the chairing the conference, is fundamental in that respect. The EU is currently proman’s of both the NATO and EU Military Committees. The states representceeding with its own “pooling and sharing” initiative, and European Defence ed at the highest level, by Agency is identifying areas for The states represented at the highest level, by their Chief of Defence, were cooperation and areas for furtheir Chief of Defence, were Albania, Bulgaria, Albania, Bulgaria, Estonia, ther development. This is overHungary, Italy, Luxembourg, lapping with the work of NATO, Estonia, Hungary, Italy, Luxembourg, Poland, Poland, Portugal, Romania, Portugal, Romania, Slovenia, Belarus, Bosnia and and presents an aspect of close Slovenia, Belarus, Bosnia and future cooperation.

Herzegovina, Montenegro, Sweden and Uzbekistan Herzegovina, Montenegro, Assured access to the Sweden and Uzbekistan. There were also a significant number of countries Global Commons was last, but not least, a topic of this conference. The Global that were represented by their Deputy Chief of Defence such as Croatia, Commons of maritime, air, space and cyberspace are key enablers of the gloCzech Republic, Spain, Armenia, Austria, Ireland, Ukraine and Pakistan. balized economy, but they are endangered with piracy, missile proliferation, Therefore, the most interested and most equipped group of experts in the treaty violations and natural disasters. Therefore, this topic was one of the imcontemporary world came to discuss the proposed topics. portant elements of this SMPC, in order to keep those commons accessible for Belgrade’s SMPC conference was opened by Mr. Dragan Sutanovac, the good of all responsible users, equally and without exception. For NATO and Serbian Minister of Defence, stressing the importance of partnerships in findits Partners this is the core task of collective defence, crisis management and ing solutions and responses to global security challenges. Chief of Defence of cooperative security, and the loss of access to any of these domains would serithe Serbian Armed Forces, General Miloje Miletic, expressed Serbia’s perspecously affect its ability to operate effectively in any of the others. tive on the Lisbon Declaration and the need for the partnership outreach.

As was stated by general Abrial, head of SACT, this conference was a high The first item on the conference’s agenda was the Future of NATO point in the discussion of military partnerships, but was not a one-off event, Partnership. The evolving partnership policy sets out priority areas for diaand will go on in different form, or through direct contact with partner counlogue, consultation and cooperation. Among those areas are political consultries. The conference became credible, and necessary in regards to partnertations on security developments, including regional issues, in particular, with ships and networking in globalized world, faced with new challenges.

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interview OLivER DuLić, SERBIAN ENVIRONMENT, MINING AND SPATIAL PLANNING MINISTER

Ministry of exceptional

iMportANCe Implementation of 247 projects all over Serbia is pending or about to start. The projects have received funding from the Government-devised Programme of Assistance to Construction Industry During Economic Downturn. In May, a total of 18 billion dinars of the programmes money was reimbursed, and the first effects are already noticeable

exclusive

By Ana SToJANoVIć

W

hen asked to comment on the work done by the ministry, in the context of the recent government reshuffle, Minister Oliver Dulić said that one of the successes of the Ministry of Environment, Mining and Spatial Planning in the last 100 days since the reshuffle was the ministry proving that it had continued to function smoothly even with the new sectors that now operate under its wing.

■ Mr. Dulić, the Law on Spatial Planning and Construction has sparked a lot of public interest. In your opinion, how effective is this law going to be for the needs of the country’s population, the state budget and the market?

- If we are talking about the effect that the Law will have on our citizens, then I have to say that procedures for being assigned the right to build will be simplified and expedited and everybody will be treated equally in the process. Once a location permit is issued, there are fewer administrative hurdles to overcome in obtaining building permits. You don’t need to submit as many documents as you

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had to before, and the bodies that process building perof September this year. The 2009 law stipulates that no mit applications cannot make arbitrary decisions or person can build without first obtaining a location perexercise their discretionary rights to the same extent mit, which is issued based on a submitted plan. We are as before. Also, the number of buildings which do not aware of the fact that it will take time for the law to require any location or building permits has been intake effect, but our goal is for the whole of Serbia to be creased. The Law also defines what is ’current’ and what ’covered’ by planning documents. Apart from that, and is ’capital maintenance’. Quite a few of our citizens have for the first time since 1958, we have a legal definition already acquired the right to own construction plots of what constitutes the right to privately own urban without having to pay any fees. All they need to do is to construction plots. submit an application with the relevant state body. No additional proof is required.

Local self-governments will now have more budget revenue thanks to the collection of the land conversion fees, and there will be a special budget fund that will allocate money to previous owners following the enactment of the Law on Restitution. By creating a mandatory registry of construction developers, we are preventing the age old problem, i.e. concurrent sale of the same property. If a citizen wishes to buy real estate that is under construction, he or she can consult the registry of construction developers and find out many things about the developer that is building the property they wish to buy – like the developer’s solvency, the previous projects, and legaliSerbia has an excellent potential ty of the construction. All of when it comes to treatment of this can help our citizens in making a decision on which certain types of waste, but the developer to choose. This collection system is lagging behind will make the country’s real estate market much better regulated and real estate buyers will now enjoy stronger legal security.

■ As the law is rather extensive and widely applicable, what are the biggest obstacles you are facing and when will the law be applied throughout Serbia?

- The law will ’come to life’ once all municipalities draft their spatial planning documents and so-called general regulation plans. The deadline for submission of these spatial planning documents expired in March and, so far, 50% of the municipalities have informed us that they would finish drafting these documents soon.

It is the state spatial planning and building inspection that supervises the process. The deadline for the submission of the general regulation plans expires on the 11th Free rightS Quite a few of our citizens have already acquired the right to own construction plots without having to pay any fees.

■ The State Goverment and local self-government’s acts will regulate the issue of conversion of the right to use a construction plot to the right to own it. This particularly pertains to company owners who have bought privatized or bankrupt companies. How did these company owners react to the appraisal of their land’s worth?

- If you have to pay for something, you’ll never be happy with the price you have to pay. The state bodies which determine these fees think they ought to be higher. The

LAW heLpS For the first time since 1958, we have a legal definition of what constitutes the right to privately own urban construction plots.

proJeCtS We are building and renovating hospitals, nurseries, schools, sport centres and cultural facilities, as well as the Sava Bridge in Obrenovac. cordeditorial@cma.rs

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appraisal is done in accordance with a government act.

The Law stipulates that local self-government can ascertain for themselves the value of construction plots and, if they don’t wish to do so, then the Government will do that for them.

■ Why are so many people challenging this law?

In May, a total of 18 billion dinars of the programmes money was reimbursed and the first effects are already noticeable. We have engaged domestic construction companies and the nature of these projects is such that, once finished, they are going to improve the everyday lives of our citizens. We are building and renovating hospitals, nurseries, schools, sport centres and cultural facilities, as well as the Sava Bridge in Obrenovac.

■ When will Parliament ratify the acts needed for Serbia to withdraw the funds from the European Bank for the construction of 1,700 affordable flats?

- We expect Parliament to debate about the draft Law on Ratification of Framework Agreement on the Loan Granted by the Council of Europe Development Bank quite soon. This Law is needed for the construction of residential housing for people with a low or medium income and development of the so-called social housing instrument.

■ Due to the interest from foreign investors, what has been done to expediate and improve the projects in the recycling and renewable energy sectors, which are of exceptional important according to President Tadić and the relevant experts ?

- Following the passing of the Law on Waste Management and Law on Packaging and Packaging Waste, we have created prerequisites for establishing a waste management system. We have also devised a system which enables the payment of fees for certain product types that, following the use, become specialized waste, and the money collected in this way is used towards the setting up of a recycling system. In order to establish a waste management system you need to have certain infrastructure in place, starting from collecting, transporting and storing the waste to its final disposal. There are also systems that are used for recycling certain types of packaging, used tyres, electrical waste, used car batteries We are going to open 30 recycling - The people who chaland processed oils. Serlenge the Law are usucentres by the year end thanks to the bia has excellent potenally proprietors of privatial when it comes to ’Let’s Clean Up Serbia’ campaign tized companies who, in the treatment of certain certain municipalities, have a difficult time in accepttypes of waste, but the collection system is lagging ing the fact that construction plots are no longer state behind. We do think that the network of waste colowned, but private property. lectors will grow and that will result in having more recycling facilities up and running. We are going to ■ One of the Ministry’s priorities in 2011 is opening open 30 recycling centres by the year end thanks to the new construction sites with 18 billion dinars worth of ’Let’s Clean Up Serbia’ campaign. By doing so, we are investments in the country’s construction sector. Could going to teach public utility companies how to properyou tell us how far along are you in this project? ly source-separate the waste and have cleaner second- Implementation of 247 projects all over Serbia is pendary raw-materials that the Serbian recycling industry ing or about to start. The projects have received funding needs. Following the implementation of appropriate from the Government-devised Programme of Assistance laws, a brand new industrial branch will be created to Construction Industry During Economic Downturn.

– the recycling industry, which, in turn, will result 10

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in the creation of new jobs and contribute to a more balanced regional development of Serbia. Recycling is extremely important for the environment, preserving resources and saving energy.

■ As I am sure you are aware, to build a micro-hydroelectric plant, or similar, requires an investor to go through numerous lengthy and costly procedures.

When will these procedures become more investor friendly?

- With the newest amendments and supplements to the Law on Spatial Planning, for the first time ever, you can build micro-hydroelectric power plants in Serbia. When the Law was enacted, in 2009, we had a few novelties like allowing such plants to be built on farmland too. The only requirement for that is that there is a relevant zoning document in place. In order to make the whole pro-

tor. These investments will make it possible for the Serbian mining industry to increase its gross revenue by 100%, i.e. from the current 1.2 billion to 2.5 billion euros annually.

Accomplishing this goal depends very much on a whole range of strategic documents like – the Republic of Serbia Energy Strategy by 2015, the National Strategy for Sustainable Development, the National Strategy for Economic Development, and the Strategy for Managing Mineral and Raw-Material Base

In the following five to seven years, we can expect 3 billion euros worth

in Serbia, which is currently being written and is supposed to be surveys and mining sector adopted by the end of this year. Also, draftcedure of issuing permits and licences easier, we have ing of the new Law on prepared guidelines for investments in biomass, miMining is pending. The Strategy for Managing Mincro-hydroelectric power plants, wind parks and geoeral and Raw-Material Base (by 2030) will contain a thermal facilities, in collaboration with the Ministry projection of the needs for mineral raw-materials in of Infrastructure and Energy. There is enough politithe future, while taking into consideration the ecocal will in Serbia when it comes to fully utilizing the nomic, environmental and social aspects. This Strathuge investment potential that is hidden in renewegy will be moderated against the EU recommendaable energy sources. Currently, we are checking the tions and good practice cases. We are also thinking of master projects and the preliminary feasibility studchanging nine bylaws which stipulate technical and ies for construction of ten micro- hydroelectric power technological entities in mining and geology.

■ plants on the River Ibar.

Low Ranking

of investments in the geological

■ The new Law on Mining should be drafted by the year end. Do you think that mining can attract substantial foreign investments and thus become an important resource for Serbias economy in years to come?

- Bearing in mind our geological potential and the need to advance the Serbian mining industry, one of the longterm goals of our Ministry is to increase the share that the country’s mining industry has in the national GDP from the current 2% to over 5% by 2030. Such development would be based on raw-materials and will push other industrial branches forward. In the following five to seven years, we can expect 3 billion euros worth of investments in the geological surveys and mining sec-

■ What are you planning to do apropos the World Economic Forum’s report according to which Serbia is at the bottom of the list when it comes to the time needed to obtain a building permit?

- Unfortunately, Serbia takes 178th place on that list. Our ranking is bad because of the methodology used in compiling the list which took the land regulation fee to mean the cost of issuing a building permit which is not done in the case of other countries. In the case of other countries, the cost of issuing a building permit means the cost associated with administration procedures that you need to go through, and not the price you pay for having access to utility infrastructure, electricity, telecommunications and similar. If the methodology were different, I believe that we would be at the top of the list. cordeditorial@cma.rs

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interview BOgDAn LiSSOvOLiK, hEAD OF ThE IMF OFFICE IN BELGRADE

economically

WeLL-deSigNed Serbia’s total external debt was 80 percent above the GDP at the end of 2010. This is uncomfortably high, although some of Serbia’s regional peers - for example Baltic countries, Hungary and Bulgaria – have yet higher ratios of total external debt to GDP

M

By Ana SToJANoVIć y job is to focus on the Serbian economy only. From the perspective of Serbia, there are two crucial tasks to undertake to influence its economic destiny. The first task is to accelerate reforms that can help achieve vibrant and economic growth driven by the private sector. The second task regards the progress in the EU accession process. These issues are crucial for securing a prosperous future for Serbia. However, the process will be not be easy, and will require political will and

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tough choices, said Bogdan Lissovolik, Head of the IMF (www.imf.org) office in Belgrade to CorD. ■ Is it possible for an economic crisis in one country to spill over into another country or maybe even the entire region?

- It is possible of course. That is why economists refer to so-called “contagion.” In the past, at various times, countries that did not cause the original crisis became victims because of a more general fear among investors.

Such contagion, for example, occurred during the Asian crisis of 1990s and during the recent 2008-09 global crisis. However, the damage from these spillovers could be limited by pursuing sound economic policies.

tion comes from international food and energy prices, which have declined in recent months. Another encouraging indication is that “underlying inflation,” which excludes volatile prices such as those for food, energy, and tobacco has been contained – the underlying inflation’s annualized rate is below 5 percent over the past 4 months. However, there are also risks in the other direction. One important policy requirement needed for the decline in inflation is moderation in wages, including in public enterprises. The latter is particularly important to limit the pressure for regulated price increases.

■ In the IMF’s opinion, how realistic is the foreign currency exchange rate in Serbia currently, and should the National Bank of Serbia intervene only when the exchange rate fluctuations get too big or alter a certain exchange rate tendency?

- Serbia has a flexible exchange rate and an inflation targeting central bank. In line with this, accepting movements in the exchange rate – in both directions -- is normal.

As you rightly said, the NBS’ strategy is to limit short-term fluctuations but not target a particular level of exchange rate. This strategy would also help Serbia broadly Bankruptcy is not at issue right now, but maintain export comkeeping Serbia’s fiscal responsibility petitiveness – its expledge is extremely important for change rate is adjusted based on the direction avoiding such a discussion in the future of market forces. As to the question on the “level” of the exchange rate for ■ The Serbian GovernSerbia, our assessment is that for now it is broadly in ment has recently made the “realistic” range. Nevertheless, these estimates cana proposal to commercial not be too precise and are quite volatile, particularly banks for them to reprogram corporate loans, just as for a country like Serbia, where there is a significant they did in the case of retail loans. What is your view margin of uncertainty and policy risks. To limit these of this proposal? risks and maintain export competitiveness, the au- We would like to study all the details of this proposal thorities should avoid excessive wage increases, mainbefore making detailed comments on it. A key general tain fiscal discipline, and aim to improve the business consideration here is that such reprogramming should environment radically. be done strictly on a voluntary basis. Based on the information that we have, the proposal is consistent with ■ The high inflation rate remains one of the major this principle. problems in Serbia. Can the recent appreciation of the dinar and the announced stabilisation of food prices ■ There are speculations that Serbia is facing banklead to a noticeable drop in inflation in the following ruptcy. The budget review will likely be carried out few months? this autumn. Is this period dangerous in the sense that - Yes, we believe that the inflation rate could fall over the state will overstep its boundaries when it comes to the next few months. We have already seen this for public spending? the month of May, when year-on-year inflation has - Bankruptcy is not at issue right now, but keeping Seralready started dropping. One encouraging indicabia’s fiscal responsibility pledge is extremely important privAtizAtioN It is true that the privatization progress essentially stopped since the global crisis hit Serbia.

the ruLeS This is exactly the time to show the investor community that Serbia can fulfil the newly adopted fiscal rules.

eXportS reCover Another important reason is the strong recovery of some of Serbia’s key trading partners. cordeditorial@cma.rs

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for avoiding such a discussion in the future. This period is truly crucial. This is exactly the time to show the investor community – both domestic and foreign – that Serbia can fulfil the newly adopted fiscal rules. In particular, deficit targets for 2011 (slightly above 4 percent of the GDP) and 2012 (about 3 percent of the GDP) should be met. This task looks particularly challenging in view of the forthcoming electoral pressures to relax public

■ The IMF has been insisting on the restructuring of public companies. We have all seen how the tender for privatization of Telekom Serbia failed. There isn’t much interest generated in other companies either, which are now in a rather hopeless situation thanks to the policy exercised by the Serbian political parties.

What is the way out of this situation?

- It is true that the privatization progress essentially stopped since the global crisis hit Serbia, not least because there is usually not much demand for such assets during a crisis. However, delays in restructuring public enterprises and making their management more professional have been costly and have likely contributed to the lack of investor interest. To address all those problems, the restructuring of those enterprises has to be accelerated, including through corporatization, professionalization of management, and the stronger control, and monitoring, of enterprises’ financial plans and results, as well as the sale of the so-called non-core assets.

■ Greece is expected to sell off its resources. What is expected of Serbia?

- Every country has Long cooperation: spending. In this con- Our cooperation will continue in some form, to manage its assets Albert Jeger (left), text, an adoption of as efficiently as poshead of the IMF the recent proposal to but its modality would primarily depend on sible. As for Serbia, mission to Serbia and amend the law on the the wishes of the authorities, as well as the some of the public asBogdan Lissovolik financing of cities and sets may well be used course of negotiations that are necessary in the course of the municipalities – if it happens – could greatrestitution process, for reaching agreement ly compromise fiscal which is an EU reresponsibility, especially the achievement of the 2012 quirement. In addition, the share of the public sector deficit and spending targets. Further, the proposed law in the economy, 40 percent according to EBRD estiis inconsistent with good policy practices – it has been mates, remains much higher than in Serbia’s peers rushed without a meaningful discussion and its finan(Poland, Slovakia, Romania, etc.), where it is typically cial effects have not been fully or properly estimated. To 20-25 percent. Thus, there is still scope for privatizabe sure, decentralization can have important positive eftion in Serbia – it should contribute to the creation fects, but only if it is done in a fiscally responsible and of a more vibrant and productive economy, although economically well-designed way. the privatization process should be much improved based on a critical analysis of what worked and what did not work in the past.

Emergency Funds ■ Serbia has a billion euros on standby in the IMF. Does our

country have projects that will be funded with that money?

- I assume that you are referring to the potential future precautionary standby arrangement. Firstly, the arrangement has not yet been fully negotiated – the forthcoming mission in August will try to complete the negotiations, but it may or may not succeed in reaching an agreement. Secondly, the arrangement is intended to be precautionary. It would support Serbia’s external reserve position only in the case of some unexpected shocks, such as higher energy prices or capital outflows. Finally, IMF disbursements do not finance any specific “projects” – this is the job of other international financial institutions.

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■ Do you think that the Serbian authorities will manage to sell €800 million worth of euro-bonds, which is the revenue that the state should have generated from the sale of Telekom Serbia?

- Placing a large Eurobond over the next few months looks realistic for now. As to the exact amount, I understand that the Serbian authorities may not necessarily need to compensate the full amount previously expected from the Telekom privatization. Sales of treasury bills have proceeded well so far, and this gave some flexibility. For example, €500 million could well be sufficient for Serbia’s financial needs. However, the

exact amount would likely depend on market conditions, including for the announced dinar-denominated portion of the issue.

■ Could you tell us the IMF’s opinion about the probability of Serbia maintaining its budget deficit below 4.1%?

- For now, the target consistent with the budget system law – a deficit of about 140 billion dinars -- looks achievable, but there are significant risks that can materialize in the coming weeks and months. For example, the public wage bill has been somewhat above our expectations in the first 5 months, and further pressures are to be expected on this front. In addition, the proposed amendments to the law on financing cities and municipalities imply a fiscal impact already this year of up to 10 billion dinars – this must be offset by expenditure- cutting measures if the annual deficit target is to be achieved.

covery of some of Serbia’s key trading partners, particularly Germany.

■ What is your view of the future cooperation between Serbia and the IMF bearing in mind that the IMF is not a charity organization and that Serbia is becoming less capable of guaranteeing that it will repay its financial debts?

- Our cooperation will continue in some form, but its modality would primarily depend on the wishes of the authorities, as well as the course of the negotiations that are necessary for reaching an agreement. In fact, for all its member countries, the IMF offers a wide range of program and non-program options of cooperation. In addition, whatever the exact form of our future cooper-

■ For how long will the issue of pension reforms remain a bottleneck? What other reforms does Serbia have to carry out?

- Pension spending will remain a bottleneck for a long time as Serbia’s population is expected to Pension spending will remain a continue to age over the next few decades. bottleneck for a long time as Serbia’s However, this is not population is expected to continue to age only a big problem over the next few decades for Serbia, but also for many other European countries. As to reforms to relieve other bottlenecks, ation, its primary objectives there is a long list of those: employment rationaliwould be to help make Serzation in the public sector, better implementation bia’s fiscal and external posiof public investment projects, improved public debt tion sound and sustainable. management and tax administration, reforms of public enterprises - including formerly socially owned ■ In your opinion, is Serenterprises and utilities - and labour market reforms bia an overly indebted to raise flexibility and thus support employment. Ficountry? nally, product market reforms should contribute to a - As far as the public debt is better business environment. For example, the need concerned, not yet, but it is to resolve the current impasse over property rights getting close. The limit of and use of construction land.

45 percent, of the GDP, set in the budget system law is ■ According to your projections, Serbian exports will an appropriate upper boundary for an emerging margrow by 15% in 2011 compared to last year. Should ket country of Serbia’s level of development. Serbia is this be contributed to the Serbian Government and its now very close to this limit. In addition, it may have export incentives? to assume some additional liabilities in the process of - The exact impact of export incentives is difficult to restitution. estimate, but it may have contributed at the margin.

Serbia’s total external debt was 80 percent above the We believe that the key reason for the robust growth GDP at the end of 2010. This is uncomfortably high, of exports this year is regained cost competitiveness although some of Serbia’s regional peers - for example – due to the cumulative depreciation of the dinar in Baltic countries, Hungary and Bulgaria – have yet high2008-2010. Another important reason is the strong reer ratios of total external debt to GDP. ■ cordeditorial@cma.rs

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Serbian priorities Serbia has met one of its key obligations to the U.N. tribunal for the former Yugoslavia by arresting Bosnian Serb wartime military commander Ratko Mladic, the court’s chief prosecutor, said. But the prosecutor, Serge Brammertz, told the U.N. Security Council that Belgrade still needed to answer “troubling questions” about why war-crimes suspect Mladic was able to stay at large for so long.

Serbia’s prospects for joining the European Union depend in part on its cooperation with the tribunal.

We asked Ambassadors what are Serbia's top three priorities following the arrest of Ratko Mladić?

H.E. Mary Warlick, U.S. Ambassador to Serbia

An Important Step

dacy status and eventual accession to the European Union. The EU has indicated that a number of key political reforms remain to be completed, including pending laws on the financing of politiith the capture and cal parties and public property, a successful completion of the judiextradition of Ratko cial reform process, and further progress in the battle against corMladić, Serbia has taken an ruption. Similarly, it is in Serbia’s interest to adopt an equitable and important step closer to retransparent restitution law as soon as possible, not only to achieve gional reconciliation and EU candidacy status, but to ensure certain and secure properplaced itself firmly on the ty rights that will encourage investThe U.S. is confident that Serbia has ment and lead to increased prosperiboth the will and the ability to tackle ty and economic growth. Equally important, constructive progress on the these significant challenges issues under discussion in the ongoing Belgrade-Priština dialogue will not only be crucial to improving path to EU integration. We congratulate President Tadić and the the day-to-day quality of life for all people in Kosovo, but will play members of his Action Team for their commitment to completan important role in the European Union’s assessment of Serbia’s ing Serbia’s obligations to the International Criminal Tribunal commitment to regional cooperation.

(ICTY) for the former Yugoslavia and wish them equal success The U.S. is confident that Serbia has both the will and the abiland determination in arresting and extraditing the remaining fuity to tackle these significant challenges, and we stand ready to gitive, Goran Hadzić. work in partnership with the Serbian government to achieve a betThe United States remains committed to supporting Serbia’s efter future for all of the people of this country and the region. forts to complete the remaining tasks needed to secure EU candi-

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H.E. Armando Varricchio, Ambassador of Italy to Serbia

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taly wholeheartedly welcomed the arrest of Ratko Mladic as a message of genuine determination to look at the future. It’s now time to move on and tackle the remaining challenges. South Eastern Europe has the opportunity to definitely close the pages of division and mistrust and embark on a stable and fruitful regional co-operation. Serbia, as the most important country of the Balkans, bears a special responsibility: we are pleased in ac-

The path leading to full membership in the EU demands for a strong commitment to implement administrative and economic reforms

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knowledging that this ranks amongst the priorities of its foreign policy.

The path leading to full membership in the EU demands for a strong commitment to implement administrative and economic reforms. This is not something demanded by bureaucrats in Brussels, it is rather the best way to give answers to the legitimate requests coming from the Serbian people. Citizens want their country to fully exploit its huge potentials and be an active member of the

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H.E. Hana Hubackova, Ambassador of the Czech Republic to Serbia

Focus - Organized Criminality and Corruption

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erbia has been moving forward in her Euro-integration efforts. The capture and extradi-

end of May, such as changes to the election law and - most recently - changes to the financing of political parties. I believe the Serbian authorities will continue to focus efforts on addressing organized criminality and corruption, on securing the proper functioning of regulatory bodies as well as on pay-

I believe Serbian authorities will continue to focus efforts on addressing organized criminality and corruption tion of one of the last two warcrimes indictees, R. Mladić, has been a major step in one of the areas that has been earmarked as a priority for Serbia ahead of the opinion by the European Commission to be published in autumn this year. We have also noted progress with respect to other vital issues that were mentioned by Commissioner Fule when talking to Parliament at the

ing attention to the legal clarity of property rights. Some of these areas are necessarily of longer term character, however, delivering concrete results will be important for the final outcome of opinion and consequently also for the granting of the candidate status. Needles to say, the Czech Republic has always sincerely supported Serbia on the way to EU.

Serbia, as the most important country of the Balkans, bears a special responsibility: we are pleased in acknowledging that this ranks amongst the priorities of its foreign policy European family. This will encourage new investments and give a strong impulse to economic growth whilst making it easier to support those who suffer the most from the economic and financial turbulences of our time.

When it comes to new investments and opportunity to work together, Italy is a unique partner. Our companies find excellent people here who “speak the same language�: hard work, competence and a very similar attitude towards life and culture. These are the best ingredients to forge a longlasting friendship and to pave the way for Serbia to soon become a full member of the European family. cordeditorial@cma.rs

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H.E. François-Xavier Deniau, Ambassador of France to Serbia

Continued Cooperation

T

he arrest of Ratko Mladić is an important step for Serbia which also made it possible for justice to be served. The arrest will help the regional countries reconcile and is an important segment of Serbia’s road to the European Union.

Serbia’s priorities should be continuing with investing effort on this road and continuing to cooperate with the International Criminal Tribunal Serbia’s priorities should be continuing with investing effort on this road and continuing to cooperate with the International Criminal Tribunal for the Former Yugoslavia by arresting Goran Hadžić. Also, we are going to pay close attention to the implementation of the Action Plan that the Serbian Government has devised in order to fulfill the well-known criteria for obtaining the candidacy status. To conclude, the

You cannot ask Serbia to take difficult decisions, that are sometimes opposed by its own public, and at the same time say ‘no, the door is closed dialogue between Belgrade and Priština has to result in concrete and feasible solutions will improve the everyday lives of the people.

France’s Official Position on EU Enlargement as regards Serbia: France looks forward to a greater and deeper partnership between the EU and Serbia 1. The eventual candidacy status of Serbia could be a great boon to the partnership between the EU and Serbia. 2. Complete cooperation by Serbia with the International Criminal Tribunal for the former Yugoslavia is absolutely neccesary for the furthering of ties between the EU and Serbia. 3. Serbia, having made great strides of progress, still has a long way to go before EU membership should be offered to it.

“France wants the European Union to respond to this historic decision by clearly indicating that the future of Serbia is to integrate into the EU,” Sarkozy told a news briefing during a Group of Eight summit in the northern French resort of Deauville.

“You cannot ask Serbia to take difficult decisions, that are sometimes opposed by its own public, and at the same time say ‘no, the door is closed’. No, no, Serbia’s destiny is to join the European Union.”

H.E. Franc But, Ambassador of Slovenia to Serbia

Complete judicial reform still stands as the most important element, then, there is also the restitution and implementation of anti-corruption laws, among others, and the financing procedures of political parties

Complete Judicial Reform

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lovenia is one of the EU member states’ supporters who push for Serbia gaining the candidacy status and the date for the start of negoti-

ations for membership on 12 October.

Since Serbia will negotiate with all 27 member states, it is important to listen to what we all are emphasizing lately as being the most crucial reforms for Serbia and its citizens. Thus, complete judicial reform still stands as the most important element, then, there is also the restitution and implementation of anti-corruption laws, among others, and the financing procedures of political parties. Serbia has been doing a good job when it comes to good neighbourly relations and fostering regional coop-

The arrest of Ratko Mladić comes as a huge relaxation for Serbia’s European integration, as well as for the moral and political break from the atrocities of Yugoslav wars 18

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eration. However, it might be important to achieve some concrete results of the dialogue with Priština before October.

The arrest of Ratko Mladić comes as a huge relief for Serbia’s European integration, as well as for the moral and political break from the atrocities of the Yugoslav wars. Serbia should look into the future and leave its turbulent past behind. It is the citizens of Serbia and their economy which should be taken in account when policies are being made and conducted. The future of young generations in Serbia can not be secured with outdated, elitist and nationalistic policies.

I believe Serbia is definitiely on the right track since there is a lot of smart men and women in Serbia trying to make a difference.

H.E. Ion Macovei, Romanian Ambassador in Belgrade

New Profile of Serbia

T

he arrest of Ratko Mladic is a very important step on the path towards completing Belgrade’s cooperation with the Hague, as well as a very strong factor in helping the reconciliation process in the region.

Going back to your question, I would point out that it is not up to me to shape Serbia’s priorities. However, it is up to me to observe that Belgrade has proven consisten-

I warmly wish Serbia to have the courage to go all this way of modernisation, in compliance with both political and economic requirements of the European Union cy in the process of cooperation with ICTY and I warmly appreciate this determination. This will certainly contribute to a new profile of Serbia in the region as one of the key factors of reconciliation. Pursuing this policy will also improve the regional cooperation process in the Balkans, a necessary tool in getting closer to the European mechanisms of cooperation. In this regard, getting the candidate status for Serbia is not an easy process but not a very difficult one either. Advancing the reform process and courageously implementing it are not just conditions set out by the European Union. They will provide a substantial tool in improving living standards, better functioning institutional mechanisms, modernising mentalities, and as such reshaping a European and future-oriented Serbia.

Personally, as I am approaching the end of my mandate here, I warmly wish Serbia to have the courage to go all the way to modernisation, in compliance with both political and economic requirements of the European Union as they define the type of state and society, which we all hope to live in.

In this regard, getting the candidate status for Serbia is not an easy process but not a very difficult one either cordeditorial@cma.rs

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interview h.E. AnDRZEJ JASiOnOWSKi, AMBASSADOR OF POLAND TO SERBIA

eu paths are

WeLL kNoWN It’s quite difficult to understand why a large part of the Serbian political elite focuses its attention on so few EU member states. Sometimes I have the impression that some of our Serbian partners don’t know that Poland is the 6th country in the EU in terms of area, population and economy

By Jelena AlEKSIć Photo Marijana ŠApoNJIć

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exclusive

n October, Serbia is expected to be granted EU candidacy status while Poland will start to officially preside over the EU as of the 1st of July. We are talking to the Polish Ambassador to Serbia about Poland’s future activities pertaining to EU enlargement. He underlines that Serbia ought to stop behaving like the Union has only five or six members and focus on cooperating with countries like Poland which is a fully fledged EU member. The Ambassador also talks about the ratification of the Stabilization and Association Agreement, as well as the future economic cooperation between the two countries.

■ Serbia has decided not to participate in the Summit of the Central and Eastern European Leaders that took place in Warsaw. What is your view of this decision?

- It was a sovereign decision of the President of Serbia and I wouldn’t like to comment on it.

I can only say, that the Central-European Summit in Warsaw was an unique opportunity to exchange views, also in the context of the upcoming Polish Presidency of the EU Council, with President Bronislaw Komorowski and 19 heads of European states, as well as to meet with the U.S. President Barack Obama.

■ Poland has taken over the presidency over the EU this month.

How difficult will your role be when it comes to advancing the EU integration process in the Balkans?

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- I don’t think the integration of the Balkan countries will be any particular problem for our Presidency. Criteria and conditions that are to be fulfilled in order to advance on the path towards EU membership are well known and it is, first of all, a duty of each aspiring country to fulfill them.

Once it will be done, the decisions will be taken by all the Member States, referring to the recommendation of the European Commission. Under the Lisbon Treaty, the role of the Presidency is the coordination of the enlargement process rather than determining its pace or range.

areas of the legislation, fight against corruption and organized crime, protection of human rights, as well as finding a proper solution to the problem of property restitution. We will be also carefully watching the situation of the media and journalists, that is a subject of our concern.

■ Polish Prime Minister Donald Tusk came for an official visit to Serbia in May and said, on the occasion, that Poland would have ratified the Stabilization and Association Agreement (SAA) with Serbia by the year end. Why hasn’t Poland already ratified the SAA? - The SAA ratification process in Poland, as in case of other EU member states, is taking place. As our Prime Minister Donald Tusk said, Poland will not be the last country which will ratify the Agreement.

■ What is the current situation in regard to resolving

■ What will be Poland’s priorities in terms of Serbia’s bid for EU candidacy? Do you believe that Serbia will be given candidate status and be given the official date of the beginning of the negotiations with the EU during Polish presidency?

- A decision on candidacy status for Serbia and every further step on the path toward the EU membership depends on the fulfillment of the criteria I could encourage my Serbian friends for set out by the European Union. Everything more active and regular exploration of the is in your hands.

Polish market and the country itself ■ Will the arrest of Ratko Mladić make things easier for you pertaining to Serbia’s candidacy bid? In your opinion, what else does Serbia need to get done, aside from arresting Mladić, in order to advance the EU integration process?

- Apprehension of Ratko Mladić was definitely a very important event and a large step in the right direction.

We appreciate it a lot. However, it was a long-pending obligation of Serbia, not only to the EU, but also to the international community and, first of all, to Serbia itself, because the effective search, detention and extradition of war criminals is not only a political or legal, but also a moral obligation.

The extradition of Ratko Mladić to the ICTY will certainly help Serbia on its European integration way and improve its image, but will not replace the fulfillment of the all other criteria. One has to remember that the apprehension of Mladić was only one of many conditions, that are well known to the Serbian authorities.

Now, after this serious problem has been solved, Serbia should do its best to carry out all the obligations provided in the Action Plan, especially in the Serbian Embassy The question of the real estate in Warsaw has nothing to do with ratification of the SAA by Poland.

the problem of the building of the former Serbian Embassy in Warsaw? Did that, in any way, affect Poland’s decision not to ratify the SAA? - The question of the real estate in Warsaw has nothing to do with ratification of the SAA by Poland. That was told clear-cut by Prime Minister Donald Tusk during his visit to Serbia. We admit, that we were deeply disappointed by the Serbian motion for usucaption and this legal action definitely has spoiled the image of Serbia. We didn’t change our position that Serbia’s motion was unfounded and contradicted the principle of the rule of law.

Presidency I don’t think the integration of the Balkan countries would be any particular problem for our Presidency.

Recipe for crisis Polish citizens are generally realistic and sober-minded, so they didn’t invest in risky instruments. cordeditorial@cma.rs

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But now the case is in the independent court and will not influence the policy of our Government.

■ During the Polish Prime Minister’s visit it was said that the economic and political relations between the two countries were good, but “far from the real needs of both countries.” What has to be done for the political collaboration between our two countries to improve?

- It’s quite difficult to understand why a large part of the Serbian political elite focuses its attention on so few EU member states.

Sometimes I have the impression that some of our Serbian partners don’t know that Poland is the 6th country in the EU in terms of area, population and economy, the country that has a constant growth of the GDP, despite crises in many parts of Europe, and that successfully manages it’s EU funds.

Serbs, both the elite and ordinary people, have to realise, that the EU is a community of 27 (and soon of 28) states and not only of three or four.

It is necessary to overcome old prejudices and clichés and start to think about with whom Serbia would seek common interest, build coalitions and create the lobby groups during the accession negotiations process and as the member of the EU. Shall it be Poland or other countries, much more remote in terms of geography, historical experience and strategic goals?

market and the country itself. The only secret for beneficial growth in economic cooperation is in personal involvement and mutual understanding.

■ Poland is one of the few countries that was not terribly hit by the recession. What is your recipe for healthy economic growth at the time of crises?

- There is no universal solution. In the time of the financial crisis some experts recommended more expenditures to create demand, the others advised savings. I can explain to you what was the Polish phenomenon. Thanks to a relatively capable and strong domestic market we were not dependant on exports on such a huge scale as our neighbours used to be.

■ Could you tell us We did our best to atA decision on candidacy status for what needs to be done tract foreign investors in order to improve the creating new jobs and Serbia depends on fulfillment of the economic cooperation additionally, we spent criteria set out by the European Union. most of our financial rebetween Poland and Serbia and how can we sources on investments Everything is in your hands encourage more busiand not on consumpness contacts to be established? tion. Also our banks successfully passed through - I believe that the improvement and expansion of ecothe hard time without general losses. It was a consenomic cooperation will benefit both sides, so we have quence of the relatively tough credit and loan policy to work hard together to achieve this goal. The figures introduced by our National Bank. Polish citizens are show dynamic growth of trade volume, especially on generally realistic and sober-minded, so they didn’t the side of Polish export. It proves Poland’s commitinvest in risky instruments. Another factor was excelment to this issue. There are many new fields and lent management of the EU funds that gave a boost projects for implementation. Together with traditional to economic development. Last but not least, due to trade exchange, there is an open area for industrial cothe process of decentralisation, there were the local operation, IT, agriculture, tourism, training and other self-governments who decided how to spend money. activities.

Local communities know better what they do need.

Recently we have signed an Agreement on ecoWhat can be done nowadays when new countries nomic cooperation, an instrument for further streghtface crisis – like Greece, Ireland, Italy, Portugal and ening of bilateral relations, as well as the gear for new Spain? In my opinion there are some rules which developments. I strongly believe that it will be properly should be observed. First – public finance discipline. exploited. The main point is the personal commitment Second – reasonable savings and cuts in public exof entrepreneurs. I could encourage my Serbian friends penditures, and finally – a favourable investment for more active and regular exploration of the Polish environment, both domestic and foreign.

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quotes

'Comedians’

Stability

“For the sake of trying to seem comical, these ‘comedians’ have viciously attacked Serbia and its people.

Their attempt at comedy has horrendously failed, and instead turned into outright hate speech!- Daily News comment on Chelsea Handler’s “jokes” about Serbia

Coalition

“The macro-economic stability has been ensured in Serbia and will continue in the year to come. The year of 2012 will be much better than 2011. I am also optimistic when it comes to Serbia’s European integration. Although the process is not merely a political issue, and its content is primarily economic, this matter is of key importance for the country’s economy and it’s living standards.

The country’s GDP is expected to increase by 3 per cent in 2011 and by 4.5 per cent in 2012, but these rates are still insufficient for the citizens to feel a notable change in terms of financial issues.” - Serbian Prime Minister Mirko Cvetković

Interpretation Germany’s official position was that they “Wish to see a solution for Kosovo. On the other hand, Belgrade’s position not to recognize the unilaterally declared independence of Kosovo is well known. Serbia knows that we must solve the issue of Kosovo before joining the EU, but on the other hand, that solution cannot be a recognition of the unilaterally declared independence of Kosovo.” Serbian Deputy PM Božidar Đelić interpreted the opinion of German parliamentarians. “Germany in no way demands a recognition of Kosovo from Serbia” concluded Djelic

Confederation “Bosnia, the way it has been until now, cannot exist. It has to start talks about a different internal organization. Bosnia can survive as a territorially united country. But with strong confederal units and greater autonomy of the Republic of Srpska up to the level of full independence within Bosnia-Herzegovina.

That is our next goal. And we have people’s support for it.” – Republic of Srpska President Milorad Dodik

Neighbours “The Union (EU) cannot accept a new member if they have not resolved relationship or border issues with their neighbouring country.” Philip Gordon, U.S. Assistant Secretary of State for European and Eurasian Affairs

“The Serbian Progressive Party will go on election alone. A possible coalition with the Democratic Party of Serbia would be considered only after the election’s results.

Our cooperation with DSS is now much better than before. There are no more public attacks. We are waiting to enter into the election campaign, and after the elections, we will see if we would need each other. “- Tomislav Nikolic, leader of the Serbian Progressive Party (SNS)

Investment ‘I used to finance political parties, but I stopped doing that long time ago.

That is the least profitable investment. Our politicians do not keep their promises and they will do anything to prove not to have been in such an arrangement. I think that society has democratized in recent years and there is no need for me to enter into an arrangement,’ businessman Milan Beko says in his interview with ‘Blic’.

Elusive category “At the time of the Internet and technology, when embassies worldwide are being closed, we are sending economic ambassadors abroad with the task to attract foreign investors. What we should do is to create an ambient here that they want to come to Serbia.

On the other hand the effects of their work simply cannot be measured, because that is an elusive category” - Danilo Sukovic, associate of the Economic Institute

Liabilities “The Serbian government will offer guarantees for a loan of as much as 70 million euros to state-owned Galenika, Serbia’s biggest state-run drug manufacturer, so it can repay short-term debt.

The company is facing more than 40 million euros in short-term liabilities, needs to buy raw materials and may halt operations within weeks without government support, Galenika is of strategic importance for the pharmaceutical market and for the entire health system” - Economy Minister Nebojša Ćirić. cordeditorial@cma.rs

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region Croatia

Montenegro

Ten Million Euro Bribe Mol Nyrt., Hungary’s largest refiner, stock fell to it’s lowest point in five months after Vecernji List reported a probe into whether its chairman paid Croatian ex-Premier Ivo Sanader to help gain control of INA Industrija Nafte d.d Croatian prosecutors are investigating whether the former Croatian prime minister Ivo Sanader accepted bribes from Mol’s Zsolt Hernadi in exchange for control of INA, the Croatian newspaper said, citing unidentified officials in Austria. The probe is focusing on whether Sanader allegedly accepted a bribe of 10 million euros from Mol during negotiations in 2008 and 2009 in exchange for the rights to manage the Croatian refiner, according to the Zagrebbased newspaper.

“There has not been any payment, or agreement on any possible payment, with not a single one of the players and decisionmakers of Croatian politics,” Mol spokesman Domokos Szollar said

Economic Citizenship Still On Hold Montenegro’s economic citizenship program is still on hold Sanader, through his lawyers, has also repeatedly denied any wrongdoing. He is currently in an Austrian jail in Salzburg awaiting extradition to Croatia on suspicion of corruption involving siphoning funds from state companies.

“The bribery allegations added to negative news from its Croatian subsidiary for Mol after a fire at INA’s Sisak refinery”, Akos Herczenik, analyst at Raiffeisen Bank International AG in Budapest, said.

INA’s shares have been suspended from trading on the Zagreb stock exchange since the 9th of May as the market regulator claims Mol has not sufficiently explained its trading activities in recent months.

The probe is focusing on whether Sanader allegedly accepted a bribe of 10 million euros from Mol

Bosnia and herzegovina

Bosnian Stalemate Bosnia’s central presidency has finally nominated a prime minister to end an eight-month political impasse The chairman of the rotating three-man presidency, Bosnian Serb Nebojša Radmanović, announced the nomination of Bosnian Croat Slavo Kukic but added that the candidate was unlikely to win the backing of parliament.

“If it happens that in parliament there is no confirmation for this candidate chosen by the presidency then we are in a much deeper

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political crisis than we thought so far,” he told journalists, adding that he was unhappy with the situation.

“It is very likely that this candidate will fail to win the support of parliament, so that the presidency will have to deliver a new name within eight days after the vote in the parliament,” Radmanovic warned.

He explained that while his party, the hardline Bosnian Serb SNSD, welcomed the idea of a Bosnian Croat prime minister they would support only the candidate proposed by the hardline Bosnian Croat HDZ parties, Borjana Kristo.

The SNSD which holds an absolute majority in the Bosnian Serb part of the central parliament.

Under Bosnia’s complex political system a prime minister can only be voted in with a majority of votes in both parts of the central

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The program was announced last August and put on indefinite hold in November. The program was rumored to have been placed on hold due to pressure from the European Union, although no official pressure was made public. In addition, the program remains legally authorized under Article 12 of the Citizenship Act of 2008: “An adult person may be granted Montenegrin citizenship if he or she does not fulfill the requirements referred to in Article 8 of this Law if it would be in the scientific, economic, cultural, sport, national, or other interest of Montenegro”.

A well-designed citizenship program would function to attract investors and badly needed investment capital to Montenegro. It would be a shame if concerns over EU integration prevented Montenegro from taking advantage of this opportunity to obtain foreign investment which would create significant benefits for it’s economy.

Nebojša Radmanović, The chairman of the rotating three-man presidency

parliament: the Bosnian Serb entity’s and the Muslim Croat Federation lawmakers.

Since the 1992-1995 war Bosnia consists of two semi-independent entities -- the Serbs’ Republika Srpska and the MuslimCroat Federation. The two are linked by

Macedonia

Urged to Pursue “Good Neighbourhoods” The centre-right ruling VMRO DPMNE party of Prime Minister Nikola Gruevski beat the opposition Social Democrats at the early June elections the Prime Minister accepts, in writing, that he will strike a speedy deal over the country’s name dispute with Greece that continues to stall the country’s NATO accession and the start of its EU accession talks.

Among the first to congratulate Gruevski was Greek Prime Minister George Papandreou, who since taking office in October 2009 has been seeking new impetus through direct contacts to resolve the long-standing dispute about the use of the name Macedonia.

“What we are awaiting following the elections is a government that will maintain a constructive stance (to solving the name dispute), We believe that the time has come for a solution “ said Greek foreign ministry spokesperson Gregory Delavekouras.

Bulgarian Foreign Minister Nikolai

Mladenov said that the elections in Macedonia had been organised in a democratic manner and conducted in a calm atmosphere, in spite of the intense pre-election campaign.

“I hope that the newly elected Macedonian parliament and government will work even more actively towards reAbdilaqim Ademi, Deputy Prime Minister gional co-operation and good neighbourly relations. Bulgaria will continue to support Because the VMRO DPMNE lost MP the European and Euro-Atlantic integraseats in the poll, the junior partner is extion of our neighbours and of the entire repected to yield slightly more power in the gion of the Western Balkans,” he said. upcoming negotiations and the government In a joint statement, EU foreign policy that emerges from the talks. Unofficially, chief Catherine Ashton and Enlargement the party has appointed the current Deputy Commissioner Štefan Füle welcomed the Prime Minister Abdilaqim Ademi to lead way that the elections had been conducted. its negotiations team. The DUI is expect“The new government must swiftly ed to put forward greater demands this resume the reforms necessary to continue time around because the VMRO country’s progress towards Albanian bloc insists on three preconditions: a the DPMNE won seven seats less the European Union, and the in this poll than in 2008 and has speedy deal over the country’s name dispute with opposition should contribute become more dependent on its a constructive manner in Greece, continues to stall the country’s NATO in junior partner. parliament to the reform procThe first demand will be that accession and the start of its EU accession talks ess,” Ashton and Füle said. weak central institutions while each has its own government.

Bosnia has been without a central government since general elections on October 3rd last year. The International Crisis Group think tank has said it is the worst crisis since the country was created in its current form at the 1995 Dayton peace agreement, which ended the war.

“It is very likely that this candidate (Slavo Kukic ) will fail to win the support of parliament, so that the presidency will have to deliver a new name within eight days after the vote in the parliament,” Radmanovic warned

GREECE

Misses €15bn Tax a Year Greek taxmen are under pressure to make a bigger contribution to easing the country’s financial pain Reducing the estimated €15bn (£13.2bn) that slips through the tax collection net each year is one of the conditions tied to the bail-out.

There have been some imaginative attempts to widen the collection pool.

Helicopters have been hovering over plush suburbs in northern Athens in the search for swimming pools in the homes of pro-

fessional people who claim they are living on only €35,000-€43,000 a year. Thousands have been identified but tax records show only 300 have been declared. Some surgeons are said to be earning €900,000 a year and not declaring tax. “Only the stupid pay tax,” one eye surgeon told a Greek state radio.

Three months ago the country’s top tax official was fired after failing to boost tax income, up from €50bn to only €52.5bn over the last two years. There was another €40bn of outstanding tax payments awaiting collection.

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region TURKEY

A Triumph for Turkish Democracy The June 12th election, which gave the ruling Justice and Development Party (AKP) 50 per cent of the votes and a clear majority in parliament, is a victory not only for Prime Minister Erdogan but also for Turkish democracy Since the start of multi-party politics in 1946, no political party in Turkey has been able to rule for three consecutive terms while increasing its votes. The results from the elections show that the vast majority of the Turkish public approve the model of development that has been spearheaded by Prime Minister Erdogan The main opposition party, the People’s Republican Party (CHP), known for its radical secularism and pro-establishment stance, increased its seats in parliament.

Contrary to expectations, the Nationalist Movement Party (MHP) passed the 10 per cent threshold but lost seats. The pro-Kurd-

ish coalition group, ran with independents and won 36 seats. Other smaller parties have fallen by the wayside.

The AKP’s success comes mainly from its ability to maintain a balance between democratization and reforms on the one hand, and nation-wide services and steady economic development on the other. Markets have already responded positively to the election results, and the strength of the Turkish economy is expected to continue.

On the domestic scene, two major issues will dominate the political agenda for the government. The first is the writing of a new constitution and the second

issue that awaits urgent attention is the Kurdish situation.

The elections also have an important bearing on Turkey’s foreign policy. With the Arab Spring turning into Arab turmoil in Libya, Yemen and Syria, Turkey has emerged as an island of stability. Contrary to some claims, the Arab Spring has strengthened rather than weakened Turkey’s position in the region and Turkey is certain to increase its multi-levelled engagement policy in the Arab world.

Having voted for the ruling party three times in a row, Turkish voters have renewed their confidence in Prime Minister Erdogan and his rule in the country. While the new constitution and the Kurdish issue will require a lot of political skill, the new popular mandate will empower Turkish democracy and increase Turkey’s profile both domestically and regionally.

The results from the elections show that the vast majority of the Turkish public approve the model of development that has been spearheaded by Prime Minister Erdogan

SLOVENIA

Swiss Firms Muscle into Slovenia Slovenia - a small country with an important economy and many Swiss investors Well-known brand names such as Landis+Gyr, Sibir, Geberit and Eternit as well as the pharmaceutical giant Novartis and the engineering company ABB are among the Swiss firms that have opened offices and set up subsidiaries in Slovenia.

The annual trade volume between the two countries exceeded SFr500 million ($596 million) last year. Direct investments from Switzerland were worth twice that much, with the Swiss only second to Austria.

Experts consider the €900 million investment to be the basis.

At an event in Zurich earlier last month at the Chamber of Commerce

Switzerland - Central Europe, some pointed out the potential for more.

Total direct investment from abroad in Slovenia stands at more than €11 billion – the equivalent to about 22 per cent of its GDP. Direct investment is seen as a reliable indicator of confidence in the stability and legal compliance of a country. It means that foreign investors acquire domestic production or service sector companies.

The Swiss foreign ministry describes economic relations with Slovenia as positive, and bilateral ties on a political level as “excellent.”

Over the past two years both countries signed agreements for projects worth SFr9 million on Slovenia’s Mediterranean coast and in its mountainous northwestern region.

Experts say the main reason for the large foreign investment in Slovenia is its high degree of integration into the global economy and its geographical position at the north-south and east-west crossroads of trade routes.

It is also seen as a springboard for further investment in other local markets in the Balkans.

For its part Slovenia’s €5 billion, in foreign investments, goes to Serbia (30 per cent) and its eastern neighbour Croatia (22 per cent). The foreseeable accession of Croatia into the EU could both spur competition with Slovenia but also help create closer economic ties in a single border area with no customs hurdles.

Slovenia’s €5 billion in foreign investments go to Serbia (30 per cent) and its eastern neighbour Croatia (22 per cent)

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BULGARIA

October Elections Maya Manolova, Bulgarian Socialist Party MP

The date was proposed by MPs from ruling party GERB, and the measure was approved with 101 votes in favour, 50 abstentions and four against, the report said.

MPs rejected a proposal tabled by ultranationalist Ataka party leader Volen Siderov, who proposed that the date should not be declared unless all political parties have

Bulgaria’s presidential elections will be held on October 23 2011, parliament has decided named their candidates for the election.

Concurrently, Bulgarian Socialist Party MP Maya Manolova called upon GERB to “put a leash” on their political activists, because “In such circumstances, the people are left with the idea that the elections will be rigged and manipulated. The elections will not be fair, and the indications for that are

Meglena Kouneva, Bulgaria's former EU Commissioner and current political adviser to the office of Siim Kallas, the EU Commission's vice-president, become official presidential candidate Albania

MONTENEGRO

New Customs Code by 2013

Ridvan Bode, Minister of Finances

A new Customs Code will be applied to Albanian customs from 2013

The draft, which was compiled with the assistance of EU experts, was handed over to the Albanian Minister of Finances Ridvan Bode by the head of the EU delegation to Tirana Ettore Sequi. The Albanian Minister of Finances praised the code saying it will eliminate bureaucracy in Albanian customs helping the free movement of people and goods. While EU Ambassador Sequi stated that the European Union is committed to assist Albania in its path towards integration, while pointing out the advantages of the new customs code draft.

given to us by this majority,” she said.

Meanwhile, President Georgi Purvanov must issue a decree scheduling the municipal elections in October.

On June 13th it was announced that Roumen Hristov, from the Bulgarian Union of Democratic Forces party, UDF, won the preliminary presidential elections within the rightist Blue Coalition.

According to statistics released by the Blue Coalition, Hristov was backed by about 40 000 constituents, while his opponent Svetoslav Malinov got about 35 000 votes. Malinov reportedly won “the battle of Sofia” but Hristov proved more popular among voters from the rest of the country Meglena Kouneva, Bulgaria’s former European Commissioner and current political adviser to the office of Siim Kallas, the European Commission’s vice-president and commissioner for transport, became the official presidential candidate, but says that she will be a non-partisan candidate, with her party being “Bulgaria”. The GERB ruling party are yet to announce their candidat.

Montenegrin Forces Join Training in Macedonia Members of the Montenegrin armed forced are participating in MEDCEUR 11, the 2011 Medical Training Exercise in Central and Eastern Europe The event is being held by the United States armed forces at Camp Pepelishte in Macedonia. The training started on 6 June until 15 June.

MEDCEUR consists of a mix of classroom and handmedceur Montenegrin Forces Join Multinational Medical Training

Montenegrin forces are training alongside forces from the United States, Norway, Bosnia and Herzegovina, Macedonia, Serbia, and Slovenia

in Macedonias-on training, designed to improve medical response to emergency and battlefield conditions. The annual event is sponsored by the United States and is part of NATO’s Partnership for Peace initiative.

Montenegrin forces are training alongside forces from the United States, Norway, Bosnia and Herzegovina, Macedonia, Serbia, and Slovenia.

U.S. Colonel Charles Tedder, the MEDCEUR co-director, stated “MEDCUER provides all of us a great opportunity to build partnerships, make friends and prepare us to face contingencies, natural or man-made, by developing interoperability with our partners.”

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interview SvETLAnA BOJKOvić, ACTRESS

Free Shooter “If you want to talk about your profession in public, you need to be successful. At least that’s what I think.

That is the ticket to the public stage on which you want to represent your vocation. And once you are on it, it is imperative to know your boundaries”

By Radmila STANKoVIć, Author is the journalist of NIN Weekly

W

ithout a doubt, she is the best Serbian actress of today who has had over two hundred roles in theatre and TV, and a few in film. She said many years ago that film had never been her cup of tea, although she received ’The Gold Arena’ award in Pula for her first ever film role in a movie called ’The Dog that Loved Trains’ directed by Goran Paskaljević. She is the first recipient of the Žanka Stokić Award, as well as Dobrica’s Ring and has had dozens of memorable and prize winning roles on the stages of the Yugoslav Drama Theatre, the National Theatre (www.snp.org.rs) and Atelje 212. However, she has never acted in a Shakespeare’s drama. She says that she would have to trust a director immensely in order to play in, let’s say, Antony and Cleopatra. She currently performs in six plays in Belgrade theatres and in Banja Luka.

The audiences and critics loved the premiere of the thea-

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tre play ‘Death is Not a Bicycle (so someone can steal it from you)’ in the Yugoslav Drama Threatre. There is a rather interesting story about her role in that play – for the first time ever she worked with Macedonian director Slobodan Unkovski and for the first time ever she acted in a play of the most sought after European writer Biljana Srbljanović.

■ What does the above comment mean to you?

- I really loved this role and I think I managed to do justice to it. This role doesn’t take much space, so to speak, but it is filled with different things, it is very rich. It has several layers that I have managed to conquer with the help of the director. And the collaboration with Unkovski was delightful.

■ How much, as an actress, could you identify with Biljana Srbljanović’s play?

- Biljana wrote a really good dialogue – concise, effective, succint. This is a fragmented dramaturgy at play,

but there is this unity of time and space in which it unfolds. When you read the story, you will notice that it serves as a template for something that directors and actors need to give shape to. That means that by working through the script you needed to make a serious sculpture, an elaborate form.

mouth he was exiled to Macedonia during the Kingdom of Yugoslavia. After that, he became a staunch leftist, participated in the events of 27th March 1941, but when he realized who actually orchestrated the events he turned his back on communist commrades and, after World War II, they promptly sent him to the Zabela prison for a year.

■ In the 1990s and early 2000’s you were an actress who ■ Actors are more socially active than other profeswas also politically active in a way. You fought for actors’ sions. Do you think that, when it comes to social acrights to be respected. In retrospect, what do you think of tivism, people trust more an established actor than an your past political engagement and how much did it make sense?

- Maybe the results were not that great, maybe we didn’t accomplish much, but I deeply believe that we were not shooting blanks. If you believe in an energy that exists around you and that is emitted in one particular moment, that energy will find its way. That was the time when I felt I had to do something, make my voice heard and help to improve certain things for our ‘kind’. I don’t think it was pointless. Now, I am not in that ‘energy phase’ any longer or that young. Somebody I cannot turn my head away when I see else should continue something wrong and I have this burning need in my footsteps. There to bring attention to that. I think that that is my always should be someone to continue. virtue, regardless of how some people see it ■ You were very credible when you publicly stood up to Minister Mlađan Dinkić or any other politican for that matter for their lack of care of culture. Why is that so?

- First and foremost, I have to underline that I have never been a member of any political party. I have always been a free shooter. And that is probably the reason why I have become an actress who constantly searches for the truth and purity from my viewpoint. In an effort to make everything as good as possible, as fair as possible, as human as possible, I cannot turn my head away when I see something wrong and I have this burning need to bring attention to that. I think that that is my virtue, regardless of how some people see it. On the other hand, maybe I inherited all of that since my maternal grandfather was a solicitor and before that he was a judge. Due to his rebelious nature and his big

Role variety

actor who is career-obsessed?

- If you want to talk about your profession in public, you need to be a successful actor. At least that’s why I think. That is the ticket to the public stage on which you want to represent your vocation. And once you are on it, it is really important to know your boundaries. I have worked solely in the interest of my peers, and that is all I was interested in. I did not want to use it as a vehicle to promote a certain political option and I certainly did not want to become a political official.

■ But it is very important for political parties, and their heads, to have the support of established artists particularly during their election campaigns.

- They only remember that athletes and artists exist during their election campaigns. I climbed the stands just once during the presidential campaign of Boris Tadić.

Of course, I asked for no favours since, unfortunately, those favours can cost a lot later.

■ You have never had any problems with playing small parts.

However, you never took on a role unless you had something to say playing it.

- In this case I had something to say and that made me happy. I played a prototype of a woman in our country who is engulfed in politics and everything that goes with it, who is an MP. On the other hand, in her private life, she has an unsolvable problem with her son.

■ Your famous colleague Žanka Stokić paid a huge price after World War II for her acting during the war. The other famous actress Ljubinka Bobić refused to act at all explaining that she was a comedian who could not make people laugh cordeditorial@cma.rs

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while there was a war going on. Which of the two can you can identify with?

- That is an eternal dilemma – to act or not to act during trying times. Ronald Harwood wrote a theatre play about that called Taking Sides about the post-war denazification and investigation of the German conductor and composer Wilhelm Furtwängler on charges of having served Hitler and the Nazi regime. I would probably do what Ljubinka Bobić did. Every person, every artist chooses his or hers own path during such times. Žanka Stokić did not become a heroine because she acted during the war, but because she suffered terribly after the war when the new government tried and then brutally punished her, stripping away her right to act and her basic human rights. She was not

■ You have a role in The Cabinet Minister’s Wife which is played in the Banja Luka National Theatre. Why is this Nušić’s piece so applicable today?

- When we did this play and I took on that role, I read a quotation from Branislav Nušić that I had never heard of before which proved to us that we did the play just the way he would wanted it. He said: “I took a petite woman by her hand and took her to a place that was outside her comfort zone just to see how is she going to behave.” My character, the Minister’s Wife Živka is comical but not uncouth. She just behaved differently in different circumstances. That has been true of humankind since the very beginning. Živka is basically naïve since if she weren’t naïve, she wouldn’t have behaved in such a comical manner. Aside from naivety, she has a purity which makes her endearing.

■ You kept true to yourself during Slobodan Milošević’s reign when, as a sign of protest, you left the National Theatre with your colleagues Predrag Ejdus and Miki Manojlović when a member of the Socialist Party of Serbia, Aleksandar Berček was appointed the theatre’s director. Did you pay the price for your choices?

I climbed the stands just once during the presidential campaign of Boris Tadić. Of course, I asked for no favours since, unfortunately, those favours can cost a lot later shot because she was too famous like actors Tanić and Cvetković who were executed because they acted during the war. It is very difficult to judge people on account of their behavior during the war if they did not harm anyone.

It is particularly horrible to kill them for that.

■ Is there any role that you played that you think on reflection you shouldn’t have?

- No, there isn’t. As soon as I take on a role, my imperative was that I had to do it. I have no regrets. I did everything on the basis of my convictions and from a pure heart. I did not trade anything for anything.

■ Do you think that your colleagues are willing to ‘trade themselves’, as you put it, because they are financially in a very bad position?

- No, I don’t think that is the case. We are talking about ambition, about dissonance between ambition and talent, about sketchy talent, if I can call it that. When you have a person that is real and talented, a true artist, then everything is very clear from the get go. Persons who are unsure of their gift are looking for ways to supplement it for something that they don’t have. Thank God, I’ve never had to do that.

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- I gave an interview about that and said that I was not scared that I was left without a salary. I can sell newspapers in the street and I bet you that that will be the most frequented newsstand because I am confident and I am aware of the fact that civil disobedience is legitimate. But our people have no notion of that and even when they do, they are very afraid of saying “no.”

■ Does your audience expect you to behave in a certain way?

- The audience is not only interested in my professional work. They closely observe my social engagements and public appearances and I learned many years ago that I need to pick my words carefully. I have never had a problem with that since my behaviour has always been in line with my character. I don’t have two personalities, i.e. a public and a private one.

■ Your private life is also interesting to people. You recently got married to a diplomat, Slavko Kruljević, who was also interesting to the media.

- In that respect, the media are now worse than ever. They enter every single pore of your being. I didn’t not want my third marriage to be splashed across the newspapers, particularly

not at the age I am at. I don’t think that Nataša Bekvalac and Danilo Ikodinović or Željko Joksimović and Jovana Janković should be blamed for something but their relationships and divorces have been targetted by the media for the whole three months. That is inappropriate and I believe that they had a difficult time with that too. I couldn’t not allow for my life and my marriage to be covered by the media in that way.

■ You were married twice, both times to arists – actor Miloš Žutić and director Ljubomir Muci Draškić. Your third husband is a diplomat. Could we say that you have a new role in life?

- All of my marriages are just a validation of the saying ‘all in good time.’ I dated Miloš when I was a student and I got married very young. He was a great professional support to me. Muci and I found each other when I was an established and fully matured actress. We worked and lived together. My whole life, up to that point, was about theatre and I had been giving myself to theatre for decades. Today, I can say that the cycle of my life is complete. I don’t have a need to sit for hours after a rehearsal or a play and discuss my role. I needed that when I was younger. Today, I want to enjoy simpler things in life – going to a green market, making lunch, and reading books since I have never had enough time to do that.

I worked very long and hard and thought about theatre too much. Now is the chance to play all my roles with Slavko and live life to the fullest.

■ How much are you involved in your husband’s work?

- Earlier I knew nothing about it, I wasn’t interested that much. Now, I find out bits and pieces every single day and I realize that that is a serious profession which requires a multi-talented person of strong integrity.

■ It is interesting that you say that Belgrade is actually your life’s cycle.

- Actually, that has a lot to with my claim that the space is actually in a person, and not outside. I would like to illustrate that by reminding that Karl May did not move out of his room until he finished writing Win-

Making A Difference Maybe the results were not that great, maybe we didn't accomplish much, but I deeply believe that we were not shooting blanks.

netou, one of the most beautiful children adventure books ever. On the other hand, I think that travels make my inner life richer.

■ You are one of the few actress that travelled abroad mostly to see a new theatre play and not to shop for clothes and shoes.

- Today, whenever I travel abroad, and that especially applies to England, I use every single opportunity to go to a theatre. I watched Ingrid Bergman in London, Ralph Richardson too. A few years ago I saw Judy Dench in Shakespeare’s All’s Well that Ends Well, as well as Diana Rigg who appeared in Tennessee Williams’ play Suddenly Last Summer, for the first time in decades.

I worked very long and hard and thought about theatre too much. Now is the chance to play all my roles with Slavko and live life to the fullest This former Bond girl is about seventy years old now, but is still a teriffic actress. I also watched Henry IV with Ian McKellen and Francesca Annis. I like to watch good musicals like those in New York or London – Beauty and the Beast or The Lion King - because I am fascinated by the marvelous technology they use. When I return to Belgrade, I never feel desparate since our acting and directing capacities are marvelous, but I am quite sad to see that these capacities cannot be fully utilized without better support for our culture. I know that culture costs a lot of money, but lack of it costs much more. We all know this, but nobody is doing anything about it. Let me go back to the beginning of your question – on our honeymoon in Florence, we were so fascinated by art that we only noticed shops on the very last day.

■

No Looking Back As soon as I take on a role, my imperative was that I had to do it. I have no regrets. I did everything on the basis of my convictions and from a pure heart.

Lack Of Funding I know that culture costs a lot of money, but lack of it costs much more. We all know this, but nobody is doing anything about it. cordeditorial@cma.rs

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interview vLADiMiR S. MiLOvAnOvić, CEO OF ENERGOPROJEKT

Worldwide Experience “It is really vital to have more stable and predictable conditions whether we are talking about the price of energy products, the dinar/ euro exchange rate or the dinar/ US dollar exchange rate. The conditions need to be predictable to the extent that there are no sudden fluctuations so that we can make plans“

By Ana SToJANoVIć Photos: Marijana ŠApoNJIć

I

n late May, one of the leading Serbian companies Energoprojekt marked 60 years of successful operations and development. On the occasion, the company’s Chief Executive Officer said that Energoprojekt would embark on a new cycle of modernization and construction of infrastructure all over Serbia by applying the contemporary know-how and experience gained through 60 years of operating in the country and abroad. Milovanović has spent his entire career so far in Energoprojekt. He has worked for the company in Nigeria, Dubai and Russia. In this interview, he talks about the challenges he had to face when he became the CEO in late October and the company’s future plans.

■ In your opinion, what was the biggest project that Energoprojekt has implemented in the last sixty years?

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- I could single out a group of projects pertaining to the construction of hydroelectric power and thermal power plants such as Dams and Hydro electric plants Djerdap I, Bajina Bašta, Mratinje u Srbiji, Bekhme – Iraq, Kafue Gorge – Zambia, Chira Piura irrigation system – Peru, and Thermal power plants Nikola Tesla A, Kosovo A, Ras Abu Fontas Combined Cycle and Desalination Plant – Qatar and many others. Also, there are numerous construction projects like the Underground Railway Station „Vukov Spomenik“ and corresponding 5,4 km long tunnels, New Central Rail-

■ Energoprojekt is often associated with construction, but it’s construction activities make only 40% of your overall operations.

- Energoprojekt has nine daughter companies. Four are engaged in design and consulting services - Energoprojekt Urbanizam i Arhitektura (Urban Planning and Architecture), Energoprojekt Hidroinženjering (engineering, design and consulting of hydropower plants, dams, irrigation systems, potable and waste water systems), Energoprojekt Industrija (design, consulting and engineering of industrial facilities) and Energoprojekt Entel (engineering, design and consulting of thermal power plants, power distribution and transmission systems, and alike). When it comes to companies that are engaged in construction,

Six months projections already shows that we had overcome the first quarter results by reaching the revenue of Euro 91 million and six month gross profit of Euro 1.24 million way station “Prokop” and Sports Arena in Belgrade, Sheraton Hotel in Zimbabwe, the Trade Fair Complex in Lagos, Nigeria, ETISALAT Telecommunications and Administration Building in Ajman, U.A.E. the Presidential Palace in Uzbekistan, MAZAYA Shopping Center in Dubai, U.A.E.

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the largest is Energoprojekt Visokogradnja (Engineering, Project Management and Construction of high-rise public and commercial buildings), followed by Energroprojekt Niskogradnja (Engineering, Project Management and Construction of civil works – roads, tunnels, dams and irrigation projects) and Energroprojekt

Oprema (Engineering, Project Management and Construction of all kind of Mechanical and Electrical infrastructure and building systems). We also have two service companies – Energroprojekt Garant (Insurance company) and Energodata (Information Technology company).

■ You have mentioned that Energorpojekt has been engaged in numerous projects abroad. What foreign projects are you currently involved with?

- We are working in four Gulf states – Qatar, Oman, Jordan and the United Arab Emirates. In Africa, we are operational in Nigeria, Ghana, and Uganda. We also work, to a lesser extent, in Zambia, Zimbabwe, Algeria and several other African countries. Energroprojekt is also present in Russia and Kazakhstan where we realize the majority of our building construction projects. We are also engaged in projects in South America, namely Peru.

million. I am confident that we are going to close this year as planned.

■ Do the Serbian authorities still owe a lot of money to Energoprojekt?

- The state’s debt has been reduced. At the beginning of this year, we finally received a payment for the Prokop project. In late 2010 and early 2011, we reached an agreement that was mutually acceptable which included the settlement of our claims in the amount of 12.1 million euro. We were also negotiating about another old debt which pertains to the reconstruction of the building that houses the Foreign Ministry and managed to get paid in the amount of Euro 1.80 million.

in forming a strategic partnership with Energroprojekt. However, since I have been the company’s CEO, nobody has ever discussed the possibility of forming this partnership despite the fact that the CEO of SNC-Lavalin and the company’s top management met with us. The only thing that we discussed was a regular business

Jordan

■ Energroprojekt has been very successful in the last few years. However, Q1 of this year saw the company recording a loss, while you ended 2010 on a high note Oman with almost €9 million in profit. How do you explain this situation We are working in four Gulf states – and what are your plans Qatar, Oman, Jordan and the United Arab for this year?

- The global economic Emirates. In Africa, we are operational in downturn did affect our Nigeria, Ghana, and Uganda operations too. Good busiQatar ness results from 2010 should not be, in any way, tied with our ■ You have said that the state’s role in Encooperation. I think the main reason is current results. Our plan is to generate ergroprojekt has changed. that the state had a change of heart in terms profit by the end of this year too. However, - In the past, the state was a passive stakeof looking for a strategic partner, but that bearing in mind what Energroprojekt does, holder which only voted in certain cases. does not mean that it has completely given the first quarter has always been problemAs of last year, the state has become an up on the idea. The decision has been postatic, particularly now when most developactive stakeholder. The Serbian state auponed for a while, maybe until this cycle ers pay us once the project is finished. On thorities have recognized the capacities, of infrastructure projects in Serbia finishes the other hand, we use the winter to prereferences and know-how that Energroor maybe even later than that. I can only pare for a good start in spring. If we don’t projekt possesses and important role of speculate. All I know is that the decision manage to cover that period financially, i.e.

Energroprojekt in modernization and to form a strategic partnership has been if developers don’t pay us, our overheads construction of Serbian infrastructure in postponed for three to five years. and revenue are not balanced out. I think forthcoming years. that the difference of 960,000 euro, which ■ Is this the right time to sell the state’s is how much we went into ’the red’ in the ■ There were speculations that Energrostake in the company?

Q1, is not that dramatic or worrying. Six projekt might be getting a strategic part- No. I don’t think it is, bearing in mind months projections already shows that we ner. Is that true? the value of Energroprojekt’s securities had overcome the first quarter results by - At the beginning of last year, the press on the Belgrade Stock Exchange which reaching the revenue of Euro 91 million was swamped with information that a Cacurrently stands at close to 820 dinars. and six month gross profit of Euro 1.24 nadian company was allegedly interested The value of Energroprojekt’s market cordeditorial@cma.rs

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capitalization based on the current value of securities is far below realistic value of Energoprojekt assets and market potential.

■ Some estimates showed that, last year, a 33% stake in the company was worth around 30 million euros.

- That amount was based on the value of the company’s securities at that time.

There are also other elements to consider before forming a sale price like the value of Energroprojekt’s brand on foreign markets, especially in Africa and Russia. Then there is Energoprojekt’s building and the land plot it is built on which has its own market value that is close to the aformentioned 30 million euros. So, the realistic price of a majority stake in Energroprojekt is yet to be ascertained.

that we are going to overcome them in the following year or so.

■ Do you think that the state is ready to assign projects to domestic companies and how much are foreign companies involved in the realization of state projects in Serbia?

- I would say that there are more state officials that support Serbian companies and are eager to assign them as many projects as possible. Also, there are people who are more than willing to facilitate the arrival of various foreign companies to Serbia. What

■ Do you think that banks will become more inclined towards granting incentives in payment of corporate loans, like a grace period?

- It’s a good thing that banks have been looking into this possibility, but I am afraid that, even if they make a positive decision, it will be too late for some companies. We are a low-indebted company and, in that respect, we have long-term sustainable operations and are not dependant on having our loans consolidated. The problem is that we are always late in salvaging the situation after a big economic crisis, and that means that we are even more late in devising appropriate solutions.

■ What are Energoproject’s plans for 2012?

- We have contracts covering 350 ■ What was the situation in the million euros worth of projects company like when you were aphere and abroad. This year, our pointed CEO? aim is to conclude at least 275 mil- I was appointed CEO on 28th Oclion euros worth of new contracts. tober 2010. What did I find, you ask?

Currently, we have realized 35% of Only two weeks after I became CEO, this year’s plan for new contracts, I had to deal with the ruling of while our six month revenue I am quite confident that Energoprojekt is reaching 80% of the planned the Arbitration Commission in Belgrade which froze accounts revenue. The current dinar/ in partnership with other Serbian of Energoprojekt largest comeuro exchange rate is very damcompanies can build any thermal or pany Visokogradnja (High-rise) aging to us and our balance because of 3.6 million Euro debt sheet. We have projected that hydro electric power plant or highway . The loss generated by Energrothe average exchange rate in projekt Urban Planning and Architecture goes against us is the fact that many of these 2011 will be fixed at 114 dinars for 1 euro far exceeded the value of the company’s asprojects are financed through European and assumed that the average exchange sets which could have led the entire compafunds which have certain rules and condirate between Euro and USD would be ny in bankruptcy and liquidation. The loss tions like the mandatory hiring of a Euro1.40 USD for 1 Euro. The dinar’s appreciagenerated by Energroprojekt High-Rise pean company or limiting Serbian compation came as a surprise to everybody, inConstruction was also quite substantial, nies in competing at tenders that receive cluding Energoprojekt. At the moment, but, through certain internal measures, we European funding. I think that change is we are analyzing the effects that period have managed to rectify the situation and possible because Energroprojekt has the of such a strong dinar would have on our published the company’s end-of-the-yearresources to do a lot, but executive powers overall business, which makes planning balance sheet on the 31st December last need to get involved too, i.e. they need to rather difficult. It is really vital to have year. On the 6th January, we have succeedcreate more opportunities for engaging Sermore stable and predictable conditions ed in unfreezing Energroprojekt High-Rise bian construction, energy or any other firms whether we are talking about the price of Construction’s bank account so the time for that matter. Since I’ve been the compaenergy products, the dinar/ euro exchange during which the account was frozen was ny’s CEO, I have been trying to make that rate or the dinar/US dollar exchange rate not long enough to cause serious damage. happen. I am quite confident that Energoor inflation rate. The conditions need to be projekt, in partnership with other Serbian predictable to the extent that there are no ■ Have you managed to overcome all macompanies, can build any thermal or hydro sudden fluctuations so that we can make jor difficulties? electric power plant or highway. Just give sustainable plans. Only then are we going - Well, we are going to need more time to us a contract and the funding, and we are to be able to plan our business operations do that, but we have set certain rules on going to build them on time and achieve and see what kind of effects that will prohow to resolve acute problems and I think the required quality and performance. duce with certain accuracy.

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business dialogue jUL/aUg 2011 - BUsiness Leader's Meeting point

page 40

MiLOš BugARin, Chairman of the Serbian Chamber of Commerce

Bright Future partnership page 41

TihOMiR RAJLic, CEO of Siemens Ltd. Belgrade

Designed by Siemens page 44

KAROLy LAJKO, General Manager of OMV Serbia

oMV celebrates First Decade in Serbia page 48

MiLOš BOžOvić, Director of the Centre for Investments and Finance (CIF)

Risk control

ENERGOPROJEKT - BUILDING A BETTER WORLD

ENERGOPROJEKT GROUP is today, the largest Serbian contractor - a complex business entity, integrating 10 internationally active and sophisticated companies in Serbia and over 20 subsidiaries and joint venture companies worldwide, capable of executing complex projects.

In six decades of successful business operations, Energoprojekt has obtained a leading position in the fields of: power generation, transmission and distribution; buildings construction; infrastructure; water management and environmental protection; industry and information technologies.

In more than 70 countries worldwide, Energoprojekt designed and built: • THOUSANDS OF KILOMETERS OF HIGHWAYS AND REGIONAL ROADS, • DOZENS OF TUNNELS, METRO AND RAILWAY STATIONS, • MULTIPLE ENGINEERING STRUCTURES, • OVER 25.000 MW INSTALLED CAPACITY OF HYDRO POWER PLANTS, • OVER 20.000 MW INSTALLED CAPACITY OF THERMAL POWER PLANTS , • OVER 10.000 KM OF TRANSMISSION AND DISTRIBUTION NETWORKS, • 100 PUBLIC BUILDINGS, 10 CONFERENCE CENTERS, • MULTIPLE HOTELS, HOSPITALS, RESIDENTIAL AND ADMINISTRATIVE BUILDINGS • OVER 200 DESIGNED AND 70 CONSTRUCTED INDUSTRIAL PLANTS

www.energoprojekt.rs

Business Dialogue 01

+5,5 %

China reported a 5.5 percent inflation rate on Tuesday, the highest level in three years, further straining the economy and adding to the popular frustration that has sparked protests in recent months.

02

Dunav Osiguranje

Medical Equipment for the Young

Safe Business Operations This is the first investment company that takes you directly to the Forex market

The Serbian Institute for Health Protection of Mothers and Children was given a valuable gift – a patient monitor

Why should you choose FXLider?

Senior advisor at Leader Group and one of the best Forex experts, Professor Slobodan Slović says that FXLider operates just like any other globally renowned investment company, i.e. it offers the highest quality support and has a substantial number of investment instruments in its service portfolio.

If you have never heard of trading at Forex, FXLider has prepared a demo-account with an exact trading environment as if you were trading with a real account. The only difference is that the money is virtual.

One of the top-notch user services that FXLider offers to its clients is free training. The company regularly holds seminars and webinars, and VIP clients have special service packages at their disposal. Also, the company organizes specialized courses for those clients that have special interests.

By having an aggressive strategy which entails investing in instruments with high fluctuation, like securities of new technology and pharmaceutical companies, you can generate an exceptional profit with a return on investment from 50% and more, but also you can lose money. The second approach is having a balanced strategy in order to minimize the risk as much as possible. Conservative trading does bear a lower risk, but the profit is not as high. This calls for investing in stable currency pairs, shares and bonds, as well as any other instruments whose price does not fluctuate too much. Although the potential profit from this kind of trading is lower, the annual return on your investment can range from 15 to 20%.

Milenka Mila Jezdimirović,

Apropos the Day of the Dunav CEO of Dunav Osiguranje and Prim. Dr Dragutin Tričković, the Osiguranje Company and the Day Institute’s Director of Insurance Companies, Dunav Osiguranje has donated money to The Serbian Institute for Health Protection of Mothers and Children. ‘Dr Vukan Čupić’ in Belgrade for the acquisition of valuable medical equipment, CEO of Dunav Osiguranje (www.dunav.com), Milenka Mila Jezdimirović and Prim. Dr Dragutin Tričković, the Institute’s Director signed a donation contract.

“It gives me great pleasure to be able to say that, this year, instead of throwing the usual celebration party, Dunav Osiguranje is marking the company’s day in a much better suited and humane way, thus indirectly showing that we care about the health of our clients. As the biggest national and socially responsible company, which owes its success primarily to its clients, we have made a decision to donate funds for a patient monitor to the Health Clinic in the Institute for Health Protection of Mothers and Children”, said Milenka Jezdimirović.

“We are going to use this donation to buy a modern piece of medical equipment that will help us immensely in monitoring our patients’ health, giving diagnoses, and taking care of the children in the ICU,“ Prim. Dr Dragutin Tričković said in his thank you speech.

03

04

nestle & centroproizvod

Centroproizvod Company, a leader in the food industry in Serbia reached an agreement with Nestle to sell a large portfolio of C product brands

“After long consideration of the developmental strategy, we made a decision to sell a large part of our brand to Nestle. We consider this step as the best solution for the the overall development of the food sector in Serbia as well. said the general manager of Centroproizvod, The company “Centroproizvod” has established itself as one of the most successful local companies that continually invests in improving the quality, technical and technological equipment, new products and educating employees. In the past few years the company invested over €30 million.

Nestlé is a world leader in the food industry and one of the fastest growing companies in the region, with operations in 130 countries, 500 factories worldwide and 280,000 employees.

Nestlé is known for the exceptional quality of its products, taking care of their employees and the health of its consumers. |

84 July/August 2011

mercedes

Confident and Athletic

Nestle bought Centroproizvod

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FXLider

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The large Mercedes star is positioned on a wing-shaped horizontal grille slat in the new radiator grille The Coupé version of the C 63 AMG is visually compelling with an assured, athletic presence that is reminiscent of the high-performance SL 63 AMG Roadster.

All AMG-specific design features have been skilfully combined with classic coupé proportions. This compact two-door Coupé excites with its low profile, powerful-looking shoulder line and slimline C-pillar. The short overhang, long engine cover, steeply sloping windscreen and long, stretchedout roof are equally striking elements of its overall style.

The distinctive arrow-shaped front section is characterised by features typical of an AMG: a new AMG front apron including lower cross-struts finished in high-gloss black, LED daytime driving lamps specifically created for AMG and side air outlets. The large Mercedes star is positioned on a wing-shaped horizontal grille slat in the new radiator grille and, together with the newly-designed aluminium engine cover, which has powerdomes, underlines the masculine feel of the vehicle. The new clear glass headlamps, in particular, in combination with the Intelligent Light System (ILS) as an optional extra, are further eye-catching features.

05

Inflation

Inflation below 10 percent

Speaking at the forum at Mt. Mokra Gora, NBS Vice-Governor Bojan Marković stated that inflation would probably drop below ten percent by the end of the year

www.cordmagazine.com business dialogue

“The inflation drop will be affected by the monetary policy, stable inflation expectations, low demand, and a gradual drop of pressure coming from food prices,” Marković explained.

“The inflation surge earlier this year was caused mostly by increased food prices, which happened because of a poor harvest in 2010 after two very good years.”

-3 % 06

Following EU pressure to cut their carbon emissions by 3% by 2012, the Dutch airline KLM says it plans to use recycled cooking oil on 200 flights between Paris and Amsterdam.

Piraeus bank

Revenues Improved - Operating Costs Decreased

appointments@cma.rs

www.cordmagazine.com/corporate/appointments.html

Miloš Bugarin, re-appointed Chairman of the Serbian Chamber of Commerce

Piraeus Bank Group in Q1’11 has increased net revenues by 11% y-o-y and amounted €383 mn compared to €345 mn a year ago

Piraeus Bank Group’s recent share capital increase has strengthened its balance sheet and improved its capital adequacy ratios. In response to the unfavourable conditions of the Greek market, the path the Group is pursuing consists of containing its costs and improving of it’s revenues whilst at the same time remaining prudent in managing risks and liquidity.

“The fact that profit before tax and provisions increased by 28% in Q1’11, confirms the correctness of the Bank’s priorities and its capacity to produce positive results. Our efforts in this direction will continue in the future, while at the same time we will focus on supporting the Greek economy and its productive sectors” – pointed out Mr Michalis Sallas, Chairman of BoD. Piraeus Bank Group in Q1’11 has increased net revenues by 11% y-o-y and amounted €383 mn compared to €345 mn a year ago. The Group’s recurring revenues, i.e. net interest income and commissions increased annually by 5% and 2% respectively, comprising 93% of the Group’s total net revenues.

Commenting on the Groups results Mr Stavros Lekkakos, CEO, said – “The annual reduction of operating costs by 3% in Q1’11 is in line with the target set for reducing the Group’s total costs by 5% in full for 2011.

The increase in revenues and cost containment has significantly improved the cost to income ratio to 52% compared to 59% in Q1’10.

07

Placements & Postings

Law

Business Briefing Outlined at the presentation was the anti-corruption regime established by the UK Bribery Act 2010

Miloš Bugarin has been re-appointed the Chairman of the Serbian Chamber of Commerce at the first constitutional sitting of the Chamber’s Assembly by a unamimous vote.

Miloš Bugarin was born in Bijelo Polje, in 1962, where he completed his high school education. He graduated from the Belgrade Faculty of Agriculture in 1988. His first job was in the Belgrade Agricultural Combine (PKB) in 1989 where he had various managerial duties. He was appointed the CEO of PKB in 2011. In his capacity as the CEO of PKB, he received several presigeous awards.

Miroslav Miletić, new Chairman of the Serbian Chamber of Commerce’s Supervisory Board CEO of Bambi Corporation, Miroslav Miletić (53) has been appointed Chairman of the Serbian Chamber of Commerce’s Supervisory Board.

He graduated from the Belgrade Faculty of Law and began working for Bambi in 1982. In October 1995, he became the company’s CEO. Today, he is the President of the Bambi Concern. In September 2007, Miletić was elected Chairman of the Assembly of the Belgrade Chamber of Commerce.

Miroslav Brković, CEO of the Ratko Mitrović Company, was appointed Miletić’s deputy.

Ljubiša Jovanović, Chairman of AIK Bank’s Managing Board is the President of the Financial Affairs Commission, while his deputy is Managing Director of FAP Corporatio a.d. Priboj, Mirko Stojović.

Michael S. Rhoads, new Vice President and General Director of U. S. Steel Serbia Michael S. Rhoads has been appointed vice president and general director of U.S. Steel Serbia effective as of July 1st. Rhoads will be responsible for overseeing all the activities of U. S. Steel Serbia.

Michael Rhoads (37) joined U. S. Steel in 1994 as a co-op employee at the Clairton Coke Plant. In 2007 Rhoads advanced through several positions and was appointed Plant Manager – Keetac Iron Ore Operations, until his most recent appointment as Division Manager of Steel Making and Casting at Gary Works in Gary, Indiana in 2009. From this position he came to U. S. Steel Serbia. Rhoads graduated from the University of Pittsburgh in 1995 with a bachelor’s degree in chemical engineering and completed his master’s degree in business administration at Duquesne University in 2002.

Michael, his wife Heather and their two children will relocate to Serbia.

Georg Grassl, new Managing Director

of Henkel Serbia Karanović&Nikolić Law Office together with Freshfields Bruckhaus Deringer organized a ‘Business Briefing’ on the UK Bribery Act, which was held on June 8th, 2011.

In front of more than thirty participants from various companies, presentations were held by Mr. Sebastian Lawson of Freshfields Bruckhaus Deringer, Alex Brooks, Head of the Trade Department at the British Embassy, and from Karanović&Nikolić Law Office presentations were given by: Slobodan Doklestić, Partner, Patrick Callinan, Bojana Miljanović and Miloš Jakovljević, Outlined at the presentation was the anti-corruption regime established by the UK Bribery Act 2010. This new important piece of legislation was compared to the Foreign Corrupt Practices Act and Serbian anti-corruption legislation. The presentation was particularly focused on the practical implications of the differences between anti-corruption regimes in the UK, USA and Serbia, and on the practical implications of the UK Bribery Act 2010 on companies operating in Serbia.

Georg Grassl was appointed as the Managing Director of Henkel Serbia on the 1st June 2010. His new position as the General Manager of Henkel Serbia comes after working as the Supply Chain Director for Laundry & Home Care in Central and Eastern Europe for almost six years. He was also a member of the company’s Board of Directors in Hungary. For the most part of his career, he lived and worked in Vienna (which is his birthplace), Budapest and Barcelona.

Živomir Novaković, acting director of Galenika Following radical changes within the management of state-owned pharmaceutical giant Galenika, Zivomi Novakovic is appointed as the acting Director of the company replacing former director Nenad Ognjenović, who was relieved, together with the most of the company’s management, by the Government. Zivomi Novakovic graduated in Economics from Belgrade University and has a wealth of experience in financial operations. business cordeditorial@cma.rs dialogue | |

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The game

Business Dialogue

The London Olympics 2012 will generate €12,5 billion in revenue for the British economy as a whole. - Lloyds TSB

Bright Future Partnership China is one of the most important Asian economic partners to Serbia and they should offer assistance in expanding the collaboration in the construction, power plants, roads and other infrastructural projects Miloš Bugarin, Chairman of the Serbian Chamber of Commerce

I

n late June, the Serbian Chamber of companies in expanding the collabolarge deficit in trading with China.

Commerce played host to the bigration in the construction of bridges, According to the Serbian Chamber of gest Chinese delegation that has vispower plants, roads and other infraCommerce, Serbia has imported $1.3 ited Serbia from 2000 until today. The structural projects in Serbia. He also billion worth of goods from China so President of the Chinese Chamber of said that the Chamber would work tofar. However, only $400 million of the Commerce led the Chinese delegation wards strengthening the cooperation aformentioned amount was actually of 50 companies from almost all indusamong companies in areas that were paid to Chinese companies. The rest try sectors. considered a priority like communicaof the money was transferred to the Aside from the basic geographic tions, petrochemical industry, energy, companies that have their facilities in and economic features China, but are not of Chiof Serbia, Miloš Bugarin nese origin. talked about the country’s “Citizens of Belgrade are eager for the Zemun“We are aware of the development strategy ’Serfact that we cannot change Borča bridge to be constructed and there is a bia 2020’ which stipulates the trade results much and heightened interest by Chinese companies for reduce the Serbian deficit, new investments in the Serbian economy, while but we have already made investments in the energy sector focusing on export and a political U-turn which investments in transport, is now yielding results. energy and telecommunications inhigh and new technologies, industrial Chinese companies are becoming more frastructure, reforming the public secproduction and food processing. interested in Serbia in terms of investtor, fiscal and monetary policy being “Citizens of Belgrade are eager for ments too and we are often hosts to in a service of economic development, the Zemun-Borča bridge to be conChinese energy, agriculture, hi-tech and reducing the inflation and unemploystructed and there is a heightened incar industry companies that come here,“ ment rate, developing agricultural terest by Chinese companies for investsays Bugarin. potential, setting up a national develments in the energy sector. The negoTwo globally renowned telecomopment bank, having a balanced retiations about China granting a loan munications company – Huawei and gional development and ZTE – are already operaestablishing free zones. in Serbia and they Two globally renowned telecommunications tional Also, the President of the have been recording good Serbian Chamber of Combusiness results. In 2010 company – Huawei and ZTE – are already merce underlined the and 2011, the Serbian operational in Serbia and they have been advantages of Serbia havChamber of Commerce ing concluded free trade received delegations recording good business results agreements with other from provinces Guangcountries. dong and Henan and, on According to the Chairman of the for the revitalization of the Kostolac B the occasion, the two sides discussed Serbian Chamber of Commerce, Miloš thermoelectric power plant are pendinvestments and cooperation in agriBugarin, China is one of the most iming“, Bugarin outlined. culture and commerce. As of this year, portant Asian economic partners to So far, the two countries have had the Serbian Chamber of Commerce has Serbia. Both countries agree that they a classic foreign trade exchange with an honorary representative in Beijing – should offer assistance to respective the Serbian side recording a pretty Mr. Karlo Kolac.

■ info: www.pks.rs

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business dialogue

Women directors EU proposals to force banks to take on more women directors would lead to a shake-up in Great Britain, where Ana Patricia Botín of Santander Bank UK is the only female chief executive of a major bank.

Designed by Siemens

Siemens Serbia has launched an initiative with the aim of connecting experts for Initiative for Central and Eastern European Cities better exchange of expertise, ideas, information and solutions

Tihomir Rajlic, CEO of Siemens Ltd. Belgrade

S

iemens Ltd. Belgrade has launched the Initiative for Cities as a result of the challenges the company has faced with infrastructure in large cities.

The project will cover 16 cities in East and Central Europe: Belgrade, Bratislava, Bucharest, Budapest, Bourgas, Istanbul, Kecskemet, Kiev, Ljubljana, Ostrava, Podgorica, Prague, Sarajevo, Sofia, Vienna, and Zagreb.

■ Although the project encompasses the capital cities of the regional states, in what way smaller towns can benefit from it too?

- Many regional cities, including Belgrade, are already more pleasant places to live thanks to solutions from Siemens (www.siemens.com). Of course, we are focusing on big cities which are dealing many infrastructural challenges. However, if we are talking about applicability, our solutions can be applied and adjusted to any town, regardless of its size. In cities, the infrastructure market addressable by Siemens totals about €300 billion a year. This is one of the reasons why Siemens established its fourth sector that will be in charge

challenges that means that the solutions to those challenges are either the same or similar. As an integrated technology company, we’re already better positioned than any other company to meet the demand for sustainable urban infrastructures. Exchanging know-how and projects is crucial. One such project is the reconstruction of a overhead contact line and installation of the adaptable traffic management system on ■ What is the gist of the project and Kralj Aleksandar Boulevard thanks to what response did you get from the which not only did the traffic, in the cities that you included in your inione of the longest and busiest streets tiative? in Belgrade improve, but also the emis- The idea of launching the Initiative for sion of carbon dioxide will be reduced Cities comes from Siemens’-commisby close to 2,500 tons annually. Why sioned study ‘Mega Cities, Mega Trend’ shouldn’t we apply the knowledge and which showed two important experience that Siemens possessfacts – the first is that for the first Our company possesses substantial es in other cities in Central and time in the history of human kind, Eastern Europe? Moreover, why experience in dealing with the more people live in cities than in shouldn’t we apply good practice rural areas, and the second is that here too? We all have the infrastructural challenges that cities cases not a single Mega City has been same goal – to make the cities planned or built to take as many that we live and work in better are facing today residents as they have today. Our and healthier places to live. company possesses substantial experiof developing infrastructure and cities ence in dealing with the infrastructural (The Infrastructure and Cities Sector).

■ What role does Siemens Serbia play challenges that cities are facing today.

In this new sector, Siemens consoliin this large-scale project?

The gist of Siemens’ Initiative for Cities dated the entire expertise that the com- The fact that the CEO of Siemens is networking between Siemens’ urban pany has in this field and offered soluSerbia has been appointed the initiaexperts in this part of Europe with the tions for smart grids and future-orienttive’s coordinator validates everything aim of exchanging the knowledge, solued transportation and power supply that the company has done so far. Sietions, ideas and information. concepts. Innovative technologies are mens Serbia devised a strategy for the The fact that sixteen City Account the key in dealing with challenges of development of cities in this part of Managers from the countries of our the future.

Europe, which was adopted at the first Central Eastern European Cluster meeting of the Initiative for Cities that participated in the First CEE City Ac■ When will the project come to life took place in Belgrade. This is just the count Managers meeting recently held and become operational? beginning of a large-scale project that in Belgrade shows the importance of - The cities that are included in the will benefit and link sixteen cities in this initiative. initiative are all dealing with the same Central and Eastern Europe.

■ info: www.siemens.rs business dialogue

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business dialogue 01

Migration 1 International migration is increasing, with almost all countries participating as countries of outmigration, in-migration, or both, making the management of migration an ever greater concern.

02

Leadership

hUngarY

America’s Favourite Bosses

Govt to Sell Stake in Budapest Airport

With a 98% approval rating, America’s favourite boss this year is Ford’s chief executive, Alan Mulally

Hungary's government will move quickly to sell its stake in Budapest Airport, worth 25 percent plus one vote, according to a government resolution published in the middle of June

Glassdoor.com, a website where employees post salary information and reviews of their companies and bosses, just released its latest ratings of CEOs. The list is based on reviews voluntarily posted by employees who answer the following question: “Do you approve of the way this person is handling the job of leading this company?” The list only includes active CEOs who received at least 50 reviews.

Ninety-eight percent of the Ford Motor employees who answered that question about Mulally said “yes,” putting their boss in the No. 1 spot. Goldman Sachs CEO Lloyd Blankfein came in second; Apple’s leader Steve Jobs ranked third.

Another frequent theme among this year’s list: half of these men (the top rated bosses are all men) are their company’s founders. FedEx‘s Fred Smith, Costco‘s Jim Sinegal, Synopsys’s Aart de Geus, Edelman’s Richard Edelman and Steve Jobs have been there since their company’s inception — and they all continue to lead with the support of their employees.

03

UeFa

UniCredit and Heineken Continue Until 2015 UniCredit Group and Heineken have extended their sponsorship agreement for the UEFA Champions League until 2015

Heineken, which has been a sponsor of the UEFA Champions League since 1994, has agreed to continue as an official partner, using UEFA Champions League sponsorship as a cornerstone of its marketing communication.

UniCredit has successfully promoted the UEFA Champions League, especially in key eastern European markets through the UEFA Champions League Trophy Tour. UniCredit will carry on leveraging the sponsorship through its exclusive product category, banking services and products.

UEFA Events is created to manage and handle the European governing body’s commercial and event operations. It is, among other things, responsible for generating media rights, sponsorship, licensing and hospitality revenue from all professional national team and club competitions, and for managing relationships with all associated commercial partners. TEAM Marketing is UEFA’s exclusive marketing partner for the UEFA Champions League.

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04

A previous Socialist government sold a 75 percent stake in Budapest’s international airport operator to Britain’s BAA in Dec. 2005 for 464.5 billion forints (€1,72 billion).

The airport has changed hands several times since and German construction group Hochtief AG now holds a 37.3 percent stake in it. The rest of the owners are mostly private investors.

It was not clear whether the government had any potential buyers already or what price it was hoping to get for the stake. A newspaper report earlier this week had suggested that the government was considering buying Hochtief’s stake, which would have given it a controlling majority in the airport.

The paper said Chinese investors could also be interested in taking a stake in the airport at a later stage but only in alliance with the Hungarian government, which is also looking for buyers for its loss-making national airline Malev.

BroadCasting

NBC retains US Olympic TV rights NBC retained its hold on U.S. Olympic television rights in a four-games deal through 2020 worth nearly $4.4 billion Now controlled by Comcast, NBC won the bid for the exclusive TV rights to the 2014 Winter Games in Sochi, Russia, the 2016 Summer Olympics in Rio de Janeiro, as well as the 2018 Winter Games and 2020 Olympics, whose sites have not yet been chosen.

IOC TV rights negotiator Richard Carrion said the deal is worth $4.382 billion overall. That includes $2.01 billion for the 2014/16 Games and $2.38 billion for the 2018/20 Olympics.

Carrion declined to say how much the other networks offered. But executives with direct knowledge of the proposals told the Associated Press that Fox bid $3.4 billion for four games and $1.5 billion for two, while ESPN offered $1.4 billion for two.

The rights fees break down this way: $775 million for Sochi, $1.226 billion for Rio, $963 million for the 2018 Games and $1.418 billion for the 2020 Olympics.

“This secures the financial future for the next decade of the Olympic movement,” said IOC President Jacques Rogge Comcast CEO Brian Roberts said NBC would take Olympic coverage “We think this will be a profitable relationship… I believe we will be profitable and build value for our shareholders.”

05

toYota

Profit Slump 35 Percent Toyota Motor Corp reported it expects operating profit this business year to fall 35 percent to 300 billion yen (€2,6 billion) after Japan's biggest earthquake on record severely disrupted car production and slashed sales Toyota’s operating profit forecast is far below the consensus of 434 billion yen (€3,7 billion in a survey of 23 analysts by Thomson Reuters I/B/E/S. Toyota incorporated a 100 billion yen (€864 million) negative impact from foreign exchange rates into its operating profit forecast.

It forecasts sales to slip to 7.24 million vehicles from 7.3 million units the previous year.

business dialogue

Migration 2

06

About 3 percent of the world’s population are international migrants, 214 million in 2010. The remittances they send home—around $325 billion in 2010—are larger than total official development aid.

07

soCietY

Nearly 60% of Parents Support Adult Children

japan

Shed Suits, Save Energy The Japanese government wants the country's suit-loving salarymen to be bold this summer. Ditch the stuffy jacket and tie. And for the good of a country facing a power crunch, go light and casual

According to a new survey, 59% of parents in the U.S. are providing financial support to their adult children who are no longer in school

The online poll by ForbesWoman of 1,074 U.S. adults—non-students aged 18 to 39 and their parents—was conducted by Harris Interactive.

Parents are continuing their involvement longer than it was expected, and financial pressures are higher for this generation. Young adults are feeling the heat: 65% say the financial pressures faced by their generation are tougher than those faced by previous generations, and one in three parents agree that their offspring are worse off.

Today’s young adults graduated into one of the worst recessions since the depression and carry a crippling college debt burden. Above the national average of 9%, unemployment rates spike to 14.2% among 20- to 24-year-olds and 10.2% in the 25 to 29 bracket.

Meanwhile, the average four-year college student borrowed $24,000 in 2009–double the $12,000 they borrowed in 1993.

Among the parents offering financial support 43% say they are “legitimately concerned” for their childrens’ financial well-being, and 37% say they have struggled and don’t want their children to struggle too.

08

Japan’s “Super Cool Biz” campaign kicked off in June with a government-sponsored fashion show featuring outfits appropriate for the office yet cool enough to endure the sweltering heat.

This summer may be especially brutal. The loss of the Fukushima Dai-ichi nuclear Environment Minister Ryu Matsumoto, power plant, which was crippled right, poses with his predecessors, by the March 11 tsunami, means (from left), Yuriko Koike, Tetsuo Saito electricity could be in short sup- and Sakihito Ozawa. They all donned "Kariyushi" shirts, Japan's southernmost ply around the nation’s capiprefecture of Okinawa's version of the tal, Tokyo, during especially hot Aloha shirts days. To prevent blackouts, the government is asking companies and government offices to cut electricity usage by 15 percent. It wants companies to limit air conditioning and set room temperatures at a warm 28 degrees Celsius.

The idea isn’t new. “Cool Biz” was introduced in 2005 by the environment minister at the time, Yuriko Koike. The campaign was part of efforts to fight global warming.

09

itaLY

Kerimov Creates National Potash Giant

Italy Overtakes France to Become World's Largest Wine Producer According to the European Commission in 2010 Italy produced 4.96 billion litres of wine compared to 4.62 billion in France Domenico Bosco, from the Italian agricultural workers union Coldiretti, said:”This result is fruit of the fact that production has been stable in Italy while in France it has fallen.

“The increase in Italian production must also be compared to the fact that the territorial size of the French vineyards is far larger than our ones. Exports are also on the increase – up 15 per cent compared to last year, which is a very good sign.”

Mr Bosco also pointed out that what would be even more embarrassing for the French was that production of prosecco – Italy’s version of champagne – would also exceed that of their neighbours with 420 million litres being produced compared to 400 million.

Britain buys around 12 per cent of Italian wine and is the third largest importer behind Germany and the United States.

10

rUssia

Russian billionaire Suleiman Kerimov is close to creating a national potash mining champion via the merger of his stakes in domestic rivals Uralkali and Silvinit

norWaY

German Nuclear Shutdown Will Cost Norway The German government announced that all nuclear power plants in the country will be closed in 2022. Norwegian authorities concern about increasing price of electricity import Most of the power plants will be out of operation in 2021, but the three most modern will be held for one more year in case of power shortage.

Shutdown of seven old nuclear power plants have already provided substantial price fluctuations. The electricity price in Germany in the third and fourth quarter increased from 43 to 51 percent when closure was proposed.

“All capacity taken out of the market tends to give higher prices. And even if Germany were to replace nuclear power with renewable energy, it will still give an increase in power prices. This price increase will result in more expensive power for both Norwegians and other Europeans, because Germany is a large market, and price increases will spill into the integrated European electricity market, “said a Norwegian official. business dialogue

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The tycoon has bought more than 50 percent of both companies. A combined group would be the world’s second-biggest producer of potash including trading partner Belaruskali, with capacity of 13 million tonnes in 2012. It would become the main rival to world leader Potash Corp.

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Business Dialogue

Austrian experts have warned electricity prices will edge up across the continent in the coming years when Germany – Europe’s most powerful economy and the major consumer of energy – shuts down its 17 nuclear power plants step by step until 2022.

OMV Celebrates First Decade in Serbia OMV constantly shows its commitment to the Serbian market through various local initiatives Karoly Lajko, General Manager of OMV Serbia

ary 2011 became the fourth manager to head OMV Serbia.

“Serbia is an important market for OMV as it has great growth potential”, added Karoly. OMV constantly shows its commitment to the Serbian market

road safety and environmental protection. OMV is also very much involved in social activities with local associations and NGOs such as SOS Children’s MV is celebrating its 10 year Village and Little Big People... anniversary in Serbia in June Mostly, OMV stands out for being this year. After 10 years of presan innovator. OMV filling staence in the Serbian market, OMV constantly shows its commitment tions were the first to introduce OMV became one of the top children’s playgrounds and 10 Greenfield investors with to the Serbian market through the bathroom facilities for people investments exceeding 140 various local initiatives it undertakes with disabilities in Serbia. In million Euros and achieved 2005, OMV was also the first a market share of 16%. OMV to offer Adblue, a solution conalso became well-known for tributing to the reduction of the high quality products and greenhouse gas emissions, for services it offers at its filling vehicles with large diesel enstations and for being an innogines. OMV filling stations are vator in the Serbian market. multifunctional service centers, “During these ten years with car washes, children’s playOMV Serbia realized many targrounds and VIVA cafes/shops/ gets and is now approaching its restaurants. VIVA shops offer a main goal which is achieving a structured range of products for 20% market share. We are also the needs of customers, includone of the largests Greenfield ing a wide range of fresh prodinvestor in Serbia with inOMV has launched awareness ucts and refreshments. Always vestments exceeding 140 milcampaigns around road safety and offering high quality products lion Euros to date. Moreover, and services as well as employwe indirectly employ around environmental protection ing an amiable staff, OMV fill1,300 people through our netthrough the various local initiatives it ing stations have become a popular restwork of 59 filling stations. We are very undertakes. Since its introduction on ing place for Serbian customers. OMV proud of these achievements” said on the Serbian market in 2001, OMV has Serbia intends to maintain it’s already this occasion OMV Serbia General launched awareness campaigns around high standards.

■ Manager Karoly Lajko, who in Janu-

O

For further information please contact: Action Global Communications, Srđan Crnogorac, Tel.: 00381 11 2752 559; E-mail: srdjan.c@actionprgroup.com 44

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Using the Sun for Heating

C

ompanies Dunav Osiguranje (Dunav Insurance Company) (www.dunav.com) and Electric Power Industry of Serbia (EPS) (www.eps.rs) are among the first companies in our country to bring awarness to environmental projects. These two companies are the investors and managers of a project that entails building the first solar power plant in Serbia. The plant’s output will be 5 MW. CEO of Dunav Osiguranje, Milenka Mila Jezdimirović, CEO of EPS, Dragomir Marković and the President of the Municipality of Čajetina Milan Stamatović ceremonially laid the foundation stone for the plant, on Zlatibor Mountain, in June.

“We are very honoured to have been able to lay the foundation stone for the first ever solar plant in Serbia, believing that this plant will benefit us greatly and that Serbia’s natural beauty will be preserved for future generations,“ said CEO of Dunav Osiguranje, Milenka Mila Jezdimirović, in her speech greeting the guests, conference participants and journalists gathered at the ceremony.

She also pointed out that the construction of 50 micro-power plants, executed

by Electric Power Industry of Serbia (EPS) and Dunav Osiguranje, with 28 plants located in the Užice area, are very important for the overall development of Serbian economy and the country as a whole. The most important goals of this exceptional project are to generate affordable energy from renewable energy resources, create new jobs and to protect the beautiful nature and environment in Serbia. Affordable energy will enable affordable production, and, by that, living expenses in Serbia will decline.

In February this year, Dunav Osiguranje established a cooperation with Electric Power Industry of Serbia and the munici-

The foundation stone for the first solar power plant in our country was laid, on Zlatibor Mountain, in June. Dunav Osiguranje and public enterprise Electric Power Industry of Serbia (EPS) are the project investors and managers palities of Čajetina and Ivanjica. By doing so, the company has turned a new page in its business operations and has become one of the key players in the production of affordable environmentally friendly energy, so-called green energy.

Not only is Dunav osiguranje the leading company in the Serbian insurance sector, but it is also a role model when it

Affordable energy will enable affordable production, and, by that, living expenses in Serbia will decline

comes to corporate social responsibility – said the CEO of Dunav Osiguranje. “Hence, we have decided to support this environmental project that will lead to a more balanced development of Serbia and its regions. By embarking on this new investment, we want to demonstrate that the strategic partnership with Electric Power Industry of Serbia and certain municipalities can contribute to the development of our

economy and to the higher living standards of our citizens. In this way, Serbia is step closer to developed countries and European integration,“ she added.

The Chairman of the Standing Conference of Towns and Municipalities Saša Paunović, the president of Serbian Chamber of Commerce Milos Bugarin both attended the laying of the foundation stone for the solar plant.

Following the ceremony, a conference called ’Development Potentials of Local Self-Governments in the Republic of Serbia in Renewable Energy Projects’ was held in the settlement of Drvengrad, on the Mećavnik Mountain.

At the conference, EPS presented its ’White Book’ in support of the utilization of renewable energy sources in Serbia. The first round table discussion at the conference was dedicated to potential cooperations between EPS, Dunav Osiguranje and local authorities on the implementation of renewable energy projects.

Also, local officials form Vrnjačka Banja, Kraljevo, Kosjerić and Kragujevac shared their experiences in implementing renewable energy sources. ■

The entire solar power plant will cost ¤15 million

T

he implementation of the first stage in building the solar power plant (with a first stage output of 1 MW) will start this autumn and is supposed to be finished by spring 2012. The total cost at this stage will be 3 million euros. The facilities for the remaining 4 MW are going to be built in stages over the next few years. The project’s main developer is Dunav Osiguranje, and the entire solar power plant will cost 15 million euros. A Spanish design company wrote a study for the power plant, which already has a name - ‘The Sun’. The Zlatibor Mountain was chosen as the location for having over 250 sunny days a year. business dialogue

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'Mamma’ and ‘papa’

Business Dialogue 01

“We want our children to continue to call their parents ‘mamma’ and ‘papa’ because that’s their natural names. Children have the right to publicly state that a ‘father’ and a ‘mother’ gave them life.” —Pope Benedict XVI during his visit to Croatia.

02

CROATIA

BULGARIA

No Stock Exchange Eruption

AES Launches €1.2 bln Power Plant

On the week after the European Commission proposal to complete the negotiations on Croatian accession to the European Union, expected "eruption" on the Zagreb Stock Exchange has not occurred

U.S. energy company AES Corp (AES.N) said it had launched a €1.2 billion thermal power plant with a net capacity of 600 megawatts in Bulgaria

The regular trade was slightly higher than the week before the news from Brussels, and was 132 million kuna. However general moving was at a good level and indices were grown four days in a row.

Crobex recorded a weekly increase of 0.23 percent at 2275.04 points, CROBEX10 rose 0.39 percent and ended a week to 1245.04 points.

Optimism is in the fact that among the most liquid stocks there are more positive than negative signs, and the best sales still leads Ingre shares, with the price increase of 0.78 percent to 16.86 bills and a turnover of 16.4 million kuna.

The regular trade was slightly higher than the week before the news from Brussels

In the middle of June the Zagreb Stock Exchange also organized the first Open Investors Day that brought together eight companies from the Official Market Exchange and fifty representatives of professional investors with the aim of raising awareness of the need for direct communication with the investment community and raise the level of transparency as one of the most important items for the optimal functioning of market capital.

03

Romania

Tighten Monetary Policy Romania’s central bank may have to tighten monetary policy in the coming months to mop up market liquidity as “significant” inflationary pressures build

The Banca Nationala a Romaniei, which has the European Union’s highest benchmark interest rate at 6.25 percent, has “to move to a tightening bias” to meet its inflation target of 3 percent, plus or minus one percentage point, next year, International Monetary Fund’s Mission Chief Jeffrey Franks said.

Policy makers around the world are struggling to contain inflation fuelled by rising food and energy prices. Romania’s central bank left the

Construction began in 2006 on the coal-fired plant in the Maritsa East lignite coal mining complex, it was expected to take three years but administration hurdles delayed it.

Initial capacity will be 420 MW and will reach its full output by the end of the year, the company said in a statement.

Funding was provided by 29 banks led by theEBRD, BNP Paribas SA (BNPP.PA) and Credit Agricole CIB (CAGR.PA) of France and Dutch lender ING (ING.AS).

“Taking into consideration the size and the complexity of the project, its successful realisation ... is indicative of Bulgaria’s ability to attract foreign investments,” Prime Minister Boiko Borisov said at the opening ceremony.

The plant meets all European Union environmental criteria and will account for nine percent of the installed power capacity of the Balkan country. The new unit is ex-

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main rate unchanged for 12 consecutive months and raised the inflation rate forecast for the end of the year to 5.1 percent from 3.6 percent.

“There is no doubt that inflation pressures are significant in Romania right now,” Franks said.

“There needs to be a move to a tightening bias, some mopping of liquidity would be appropriate.”

“Inflows of capital to Romania will force the bank to make difficult monetary-policy decisions and use “unorthodox measures” to prevent exchange-rate volatility,” Governor Mugur Isarescu said.

The leu has gained 3.5 percent against the euro this year, the third-best performer in central and eastern Europe after the Serbian dinar and the Hungarian forint, Bloomberg data shows.

Romania’s current-account deficit narrowed 59 percent in the first quarter 2011 to €634 million as foreign direct investment into the Balkan country fell 22 percent to €379 million from €486 million in the same period of 2010.

business dialogue

pected to help Bulgaria restore its position of a leading power exporter in South-eastern Europe after it closed two nuclear power reactors.

AES, the largest industrial investor in the country since 1989, also operates a 156-megawatt wind park near the town of Kavarna on the northern Black Sea coast.

Initial capacity will be 420 MW and will reach its full output by the end of the year

The leu has gained 3.5 percent against the euro this year, the third-best performer in central and eastern Europe after the Serbian dinar and the Hungarian forint , Bloomberg data show

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Bulgaria's Minister of Economy and Energy Petar Dimitrov, Enel's Chairman Piero Gnudi, the Italian Ambassador to Bugaria Stefano Benazzo and other high-ranking guests attended the event

04

MONTENEGRO

Montenegro Steel Seek Protection Creditors of Zeljezara AD Niksic reported the country to the EU for allegedly violating investor rights Zeljezara was put into bankruptcy on April 15 by a workers union that demanded overdue monthly wages. Shareholders contend the action damaged their investment because they aren’t first in line to collect debt under Montenegro’s new bankruptcy law.

Representatives of MNSS BV a Dutch based company, which controlled just above 50.1% of Zeljezara’s capital said that they want to keep local representatives of the EU informed about what they see as abuse and mistreatment of foreign investors.

The EU should consider those issues when assessing the progress of a country toward EU membership.

Mercenaries

05

KOSOVO

As many as 500 European mercenaries have joined Libyan leader Muammar Gaddafi. The bulk of them come from Belarus, Serbia and the Ukraine, but others are citizens of EU member states. According to media reports they are earning up to €2,000 per day.”

—Michel Koutouzis, a leading criminologist whose French-registered consulting company does research for EU and UN institutions.

06

Pristina Airport Makeover Starts Pristina International Airport's new overseers are expected to start a €100 million overhaul, but it remains unclear whether the potholed exit road to the airport will be replaced and when a new flyover will be completed

Limak Aeroport de Lyon has begun renovating existing facilities and is preparing to start building a new €100 million 25,000-square-metre terminal in beginning of July.

Ferda Yakar, the former director of Anatalya Airport and the airports new boss, is promising that the new terminal and increased airline competition will eventually bring 4 million passengers each year by the end of LimakAeroport de Lyon’s 20-year-contract.

A new weekly flight connects Pristina to the Swiss capital, Bern, with plans to expand service to four times a week. And as of the end of July the passengers from Kosovo should be able to reach 20 additional European destinations via Vienna on Niki Airlines.

Most of those passengers presumably need to use the road going to and from the airport. But the exit road is full of potholes and it’s not clear if the government or Limak-Aeroport de Lyon is responsible for fixing it Construction of a new flyover also remains unfinished and overdue.

Lah Nitaj, an adviser to the minister of infrastructure, blamed the delay on difficulties acquired along the route. “We are working very seriously, and very soon things will go well,” Nitaj said.

07

It’s not clear if the government or Limak-Aeroport de Lyon is responsible for fixing it Construction on a new flyover also remains unfinished and overdue

Speeding Up Nabucco Pipeline

Bulgaria and Turkey have agreed to speed up the construction of a gas grid interconnection between the two countries, their energy ministers said on Thursday Turkish Energy Minister Taner Yildiz and Bulgarian Energy Minister Traicho Traikov met last month to sign the Project Support Agreements (PSAs) between Nabucco Gas Pipeline International GmbH and the responsible ministries of the pipeline’s five transit countries.

The Nabucco pipeline project intends to bring gas to Europe via Turkey, in an effort to limit Russia’s influence on Europe’s gas supply. Turkey, Bulgaria, Romania, Hungary and Austria are all involved in the project, which will bring gas from Turkey’s eastern borders to a hub in Vienna, taking supplies from

Albania

New Albanian Parliament Albania is seeking a €109.8 million from the Saudi Gulf Kingdom in order to finance the construction of a new parliamentary complex in Tirana

According to the Arab News Daily, ’The Kingdom,’ in a gesture of solidarity and support for Albania, is willing to finance the parliament project,” said Albanian Deputy of finance and MP Sherefedin Shehu.

The new assembly will be built on the site of the former pyramid-shaped mausoleum of Enver Hoxha, which for the last two decades has served as a cultural centre.

Twelve international architectural firms took part in the tender for the building’s construction, which was won by the Swiss firm Coop Himmelblau, headed by famed architect Wolf D Prix.

Prix’s architectural firm is known for its bravura designs and complex forms .

This was the second competition held for a new parliamentary building in as many years. After the first project was discarded, the government spent nearly a million euros in August last year on renovating the current assembly. Three months later, in November 2010, Prime Minister Sali Berisha announced that the government would tear down the Tirana pyramid and build the new home for parliament there.

The proposal has provoked fierce debate, as the government has already spent €2 million on transforming the pyramid into a national theatre.

The new assembly will be built on the site of the former pyramidshaped mausoleum of Enver Hoxha

TURKEY

The Nabucco pipeline project intends to bring gas to Europe via Turkey, in an effort to limit Russia's influence on Europe's gas supply Azerbaijan, Iraq and Turkmenistan.

The 3,300 km pipeline would run from eastern Turkey to eastern Austria, via Bulgaria, Romania, and Hungary, pumping about eight billion cubic metres of gas annually when it starts operation and 31 billion cubic metres - when it reaches maximum capacity.

After a series of delays and doubts about the pipeline’s future, officials now say that it is expected to deliver the first gas supplies in 2017. The cost of the project is estimated at €7.9 billion, but many experts say this is expected to rise.

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Numbers

Business Dialogue

The Group’s 20th Annual Review of Football Finance reported that the total European football market grew to a record €14,9 billion in 2009-10, with Germany €1,56 billion, Spain and Italy (€1,5 billion each) and France (€1.09 billion)

Risk Control

Domestic banks are required to fully harmonize their risk rating principles with Basel II as of the 1st January 2012

Miloš Božović, Director of the Centre for Investments and Finance (CIF)

D

omestic banks have recognized the necessity of applying Basel II and its positive aspects not only in terms of harmonizing their opeations with the National Bank of Serbia’s rules, but also, in terms of applying better risk rating measures and being more informed when making decisions – says Director of the Centre for Investments and Finance, Miloš Božović, in an interview for CorD magazine.

- The recommendations from the Basel II standards are based on the best international risk management practices.

Domestic banks are required to fully harmonize their risk rating principles with Basel II as of 1st January 2012. An expert task force in the Centre for Investments and Finance, and I am pleased to say that I belong to that group, has been very successful in offering consultancy services, developing software solutions and conducting research in the field of managing financial risks for years. From our practical experience we can say that domestic banks have recognized the necessity of applying Basel II and its positive aspects not only in terms of

panies, pension and investment funds.

Our software solution called RiskGuard* is a fruit of the labour of the team of the leading financial and IT experts who have a substantial international experience. RiskGuard* has been used both in the country and abroad for quite a while and has proven to be very successful so far. RiskGuard* is not only a domestic software solution, but also the only risk management system that is currently available on our market which is devised in line with all the regulatory demands put forward by the National Bank of Serbia and Basel II standards.

■ In your opinion, what is the most ■ CIF received special acknowledgeimportant lesson that we have learned ment when it was invited to from the global economic downturn?

Regardless of regulatory bodies, financial present RiskGuard* at an exceptionally important bank- Once again we have learned institutions need to think about how to ing conference in London in that you cannot predict a crisis or fully prevent it. Tougher prevent the negative effects of future crises December last year.

- CIF’s experts had a very market regulation, which is harmonizing their opeations with the successful presentation at the confersomething that certain European and National Bank of Serbia’s rules, but also ence with representatives of the biggest global officials have been advocating, is in terms of applying better risk rating banking groups in attendance. Riskcertainly not a good solution. However, measures and being more informed Guard* attracted a lot of attention and regardless of regulatory bodies, financial when making decisions. was praised by many conference particinstitutions themselves need to think ipants. We think that the acknowledgeabout how to prevent the negative ef■ The Centre for Investments and Fiment is well-deserved considering how fects of future crises. The key lies in the nance is known for its extensive expemuch effort we had put in. Simply put, better assessment and management of rience in applying Basel II in Serbia. years of experience in knowing how the risks they are exposed to.

Could you elaborate please? banking and financial markets func- For quite some time now, the Centre for tion have turned CIF not only into the ■ You have mentioned market regulaInvestments and Finance (CIF) has been leader in its field here, but also into a tion. Basel II is currently a hot topic in successfully working on implementing highly respected company abroad. We Serbia. How ready is our banking secand perfecting risk management tools do hope that other domestic companies tor to adapt its operations to new defor commercial banks, insurance comwill follow suit.

■ mands? info: www.cif.co.rs 48

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Biscuit tin

MerCedes

A handyman who found 75,000 GBP (€84,000) in cash stashed in a biscuit tin while he cleared out the home of Lizi Corter from Niernburg, Germany, after she died has been told by police he might end up keeping the lot as late Lizi did not have family and died without leaving a will. donCaFe

Trophy Golf Tournament

Summer Party Strauss Adriatic company marked the beginning of summer with their friends and journalists at the Doncafe traditional garden party in the newly opened winery ‘Wine Art’. In pleasant surroundings, attendees enjoyed a traditional Doncafe coffee and desserts.

On the 18th and 19th of June, Mercedes Benz Serbia and Montenegro held a golf tournament called Mercedes Trophy at the Belgrade Golf Club grounds. A total of 72 competitors participated, all clients and friends of Mercedes Benz.

The main prize was an attractive two-seater Smart for Two. Goran Stanarević was the tournament winner.

Brand ConFerenCe 7

Branding Regions and Towns One of the leading global branding experts, Simon Middleton, was a keynote speaker at the 7th International Brand Conference called ’Branding Regions and Towns – Foreign Direct Investments, Export Growth and Development of Tourism’ at the International Brand Conference 7 which is an integral part of the business & education event Brand Fair 7, which took place in Belgrade’s Sava Centre on the 10th June 2011.

vrnjaCKa Banja

Regional Working Action After a break of nearly three decades Vrnjacka Banja begins a three-week youth employment action “Vrnjacka Banja 2011”, in which about 100 young people participate from almost all the former Yugoslav republics.

Two thirds of the young people come projeCt

Digital School

Cleaning Serbia Within the campaign of “Clean Serbia,” the employees of Carlsberg Serbia, in cooperation with local communities in Čelarevo, participated in two days of action in cleaning Dunđerski castle. Since 2007 Carlsberg Serbia has been the official custodian of the castle park Dundjerski, who built Lazar Dundjerski, a founder of Celarevo brewery, by regularly investments in the maintenance and protection of cultural monuments. In the effort to clean, about 80 employees of Carlsberg Serbia gave their contribution to the preservation and protection of the monument itself.

Secretary of State for the digital agenda, Jasna Matic, announced the results of the "Digital School" and presented award to the winners of the contest 'digital class.' This is one of the largest projects of its kind in the world, which began in the Ministry of Telecommunications and Information Society, and completed the Department of the digital agenda. The program involves equipping the modern computer equipment 2,910 school buildings in the territory of the Republic of Serbia. business dialogue

after work

from Vojvodina, and a third of them are from Slovenia, Croatia, Macedonia and Bosnia and Herzegovina.

Working stocks will last three weeks and brigadiers will work on arranging the bed of the river Lipovacka.

CarLsBerg

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faces

& places Marking the birthday of Her Royal Majesty, Queen Elizabeth II, the British Embassy organized the reception on the 16th of June in Belgrade in the residence of H.E. Michael Davenport, British Ambassador to Serbia. The occasion brought together a large number of the highest officials, politicians, businessmen, public and cultural figures in Serbia.

HE Prince Alexander II Karađorđević and Princess Katherine

H.E. Marry Warlick U.S. Ambassador in Serbia

Dragan Marković Palma (left) and Oliver Dulić

French Ambassador to Serbia H.E. François-Xavier Deniau and Chairwoman of the French Cultural Centre in Belgrade Pascal Delpech greet guests in the celebration of the 60th anniversary of the Centre at the French Embassy on the 14th June. As of recently, the Centre has a new name – the French Institute.

Mayor of Belgrade Dragan Đilas, Aleksandar Antić the Speaker of the Belgrade City Assembly and the celebration’s host and Assistant Mayor Dejan Vasović held a celebration for the Belgrade Patron Saint Day - the Ascension or Spasovdan. His Grace Bishop of Hvostano Atanasije Rakita and many prominent figures from politics, culture, sport and diplomacy were in attendance.

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Russian Ambassador to Serbia H.E. Alexander Konuzin greets Serbian President Boris Tadić at the Russian Embasssy in Belgrade at the reception apropos Russia Day on the 10th June.

Nenad Popović (left), Tomislav Nikolić and Vojislav Koštunica

H.E. Alexander Konuzin and Defence Minister Dragan Šutanovac

H.E. Alexander Konuzin welcomes Prime Minister Mirko Cvetković

Mark Harrison (left), Michael Davenport, Her Majesty's Ambassador to Serbia, hosted the second gathering of the Serbian-British Business Club, founded in April 2011, at his residence in Belgrade. James Thornley Partner at KPMG and a number of other key representatives of both Serbian and British companies were in attendance.

Mr. Rabii Zenati Counsellor Charge d'Affaires a.i. invited guests to the Tunisian residence in Dedinje for the Tunisian Tourism and Fashion Show on the 16th of June.

faces & places

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faces

& places Serbian Defense Minister Dragan Šutanovac and the Serbian Army Chief of Staff, General Miloje Miletić, as the hosts of the cocktail reception for participants in the threeday Strategic Military Partner Conference held in Belgrade on the 13th June.

Presidents of Serbia and Azerbaijan, Boris Tadić and Ilham Aliyev, respectively reveal the monuments in honour of the first President of Azerbaijan Heydar Aliyev and renowned Serbian writer Milorad Pavić in the reconstructed Tašmajdan Park. Belgrade Mayor Dragan Đilas and the Speaker of the Belgrade City Assembly Aleksandar Antić attended the ceremony held on the 8th June.

Croatian Ambassador to Serbia, H.E. Željko Kuprešak and Čedomir Jovanović, President of Liberal Democracy Party, at the celebration of the Croatian National Day in the Croatian Embassy in Belgrade on the 23rd June.

Mayor of Belgrade Dragan Đilas was a special guest at the fifth traditonal June gathering of members and friends of the Serbian Association of Managers at the Kalemegdanska Terasa restaurant in Belgrade on the 14th June.

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H.E. Željko Kuprešak welcomes guests.

Serbian President Boris Tadić giving a speech at the ceremony held in Energoprojekt’s HQ on the 26th of May. The company celebrated 60 years of successful business operations. In addition to Serbian officials, many guests, diplomats and business partners were also in attendance.

U.S Ambassador Mary Warlick congratulated Petar Repić, Serbian Military High School Cadet, on West Point Scholarship on Friday June 17th at the U.S Embassy in Belgrade.

CEO of Energoprojekt Vladimir Milovanović talks to the Chairman of the Serbian Chamber of Commerce Miloš Bugarin.

On the 16th June the Post of Serbia celebrated its 171st anniversary. The host of the celebration was Goran Ciric, PostSerbia CEO (left). The jubilee was attended by Ivica Dacic, Interior Minister, Dusan Petrovic, Minister of Agriculture, Trade, Forestry and Water Management and other top officials. Guests were addressed via video link by Prime Minister Mirko Cvetkovic.

The members of diplomatic corp.

faces & places

Diplomats and members of the expat community living and working in Belgrade took advantage of the offering by Golf Club Belgrade. They played golf under special conditions on the beautiful courses of Ada Ciganlija. On the photo: HE Ignacio de Palacio, Spanish Ambassador in Serbia associated with the hosts of the golf party. cordeditorial@cma.rs

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Ranks

Business Dialogue Feature Ten Countries With The Happiest People on Earth

The estimated total number of guns held by civilians in Kosovo is 415,000 or 25.73 firearms per 100 people. In a comparison of the number of privately owned guns in 178 countries, Kosovo ranks at No. 88 ‘ — www.GunPolicy.org

Be Happy – Be Danish!

What makes people happy? The question, which has been debated by philosophers for centuries, is now being tackled by international bureaucrats and the results are interesting, to say the least

N

ew York based 24/7 Wall St. (www.247wallst.com) analyzed the new Organisation for Economic Co-operation and Development Better Life Index to objectively determine the happiest countries in the world. The Index is based on 11 measurements of quality of life including housing, income, jobs, community, education, the environment, health, worklife balance, and life satisfaction.

24/7 Wall St. also looked at one critical factor that the OECD study overlooked — economic stability. The measure taken was total national debt as a percent of GDP. Odds are that countries with high debt-to-

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GDP ratios are more likely to need austerity policies to reign-in their government spending. Otherwise, their debt costs will soar.

Nations with long-term economic strength can also afford to support employment, education, and make health care widely available. Happiness viewed in this way means that people are more likely to feel better about themselves in Norway, which has almost no debt and great social services, than

in Greece, which must slash entitlement spending or risk defaulting on its debt.

Old, stable nations of northern Europe took five of the top 10 spots on the list. These include Finland, Sweden, the Netherlands, Norway, and Denmark. Switzerland is also on the list and has many characteristics in common with the Scandinavian countries.

The resource-rich, English-speaking countries of Australia and Canada made the cut as well. Noticeably absent from the list are any OECD nations in Latin America, southern and eastern Europe and Asia. Many of the southern European nations like Greece, Portugal, and Spain are in economic trouble and have high unemployment. The employment and education opportunities are not as good in Mexico as in Canada, nor is the access to high-quality health care. Japan and South Korea each have stable societies, but the people in both countries tend to work long hours and have limited leisure time.

The happiest countries seem to be places where there is a good balance of work and leisure time. Not all nations can afford to keep unemployment low through government subsidies. Not all countries can afford to provide universal medical coverage. Not all countries can afford to educate almost all of their children, which in turn supports extremely high literacy rates and builds a population of skilled workers.

The ten nations on this list are rich in natural resources or highly developed service sectors. These are assets which are in short supply worldwide, and that bolsters the foundations of the economies in these countries. Money alone doesn’t buy happiness, but it sure helps.

This is the 24/7 Wall St list of the Ten Countries With The Happiest People, most of which have bought and paid for prosperity because their economies have allowed them to do so.

Nations with long-term economic strength can also afford to support employment, education, and make health care widely available

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Statistics 01

The value of foreign companies bought by UK firms jumped sharply to €20,5 billion in the first three months of the year 2011, the highest figure since the end of 2007. — Office for UK National Statistics

1 Denmark

Life satisfaction score: 10 Debt as a percentage of GDP: 39.5 percent (14th lowest) Employment score: 8.4 (5th best) Self-reported health: 7.37 (15th best) Employees working long hours: 9.72 (3rd best) Disposable income: 4.0 (18th best) Educational attainment: 7.39 (18th best) Life expectancy: 5.71 (25th best)

Danish residents have consistently rated themselves as the happiest in the world for years in several different studies.

Danes have one of the strongest senses of friendship and community, with 97 percent reporting they had someone other than a family member that they could rely on.

Danish culture and government policy is one of the most leisure-friendly. Denmark’s citizens spend more than 16 hours each week on leisure time, the second-highest rate in the OECD. The government also subsidizes a full year of maternity leave.

Employees working long hours: 9.47 (5th best) Disposable income: 5.82 (2nd best) Educational attainment: 8.37 (15th best) Life expectancy: 7.69 (12th best)

Over 84 percent of Norway’s population is currently satisfied with their lives and 75 percent of Norway’s working-age population is employed, with only 0.34 percent of the population having been unemployed for more than a year. This is the one of the best rates in the OECD. Norway has the second highest disposable income among all countries on this list, behind only the US. The average person across all 34 OECD nations works an average of 1,739 hours per year. The average Norwegian works just over 1,400 hours per year as the result of aggressive labour laws.

are generally in good health. The country’s average life expectancy is two years longer than the OECD average. Tobacco consumption has decreased by 50 percent since 1983, giving the country one of the lowest rates in the world. Joblessness for single-parent families is one of the major problems in Australia, affecting more than 50 percent of such families in 2009. According to the Australian Bureau of Statistics, however, overall unemployment, as of April 2011 was 4.9 percent.

2. Canada Life satisfaction score: 9.68 Debt as a percentage of GDP: 36 percent (11th lowest) Employment score: 7.86 (10th best) Self-reported health: 9.73 (2nd best) Employees working long hours: 9.28 (10th best) Disposable income: 5.16 (8th best) Educational attainment: 9.39 (6th best) Life expectancy: 7.8 (10th best)

Canada scores extremely well in the majority of metrics used to calculate “well-being.”

The country has the tenth greatest life expectancy of all OECD countries. Furthermore, 88 percent of people in Canada report being in “good health,” compared to the OECD average of 69 percent. Education is also exceptional in the country. 87 percent of the population have received a high school degree or more.

In addition to this, the country has one of the highest literacy rates in the world. Canada is also relatively safe, with the lowest rate of reported assaults.

3 Norway Life satisfaction score: 9.35 Debt as a percentage of GDP: 26 percent (third lowest) Employment score: 8.98 (3rd best) Self-reported health: 8.34 (9th best)

The Index is based on 11 measurements of quality of life including housing, income, jobs, community, education, the environment, health, wo rk-life balance, and life satisfaction 4 Australia

5 The Netherlands

Life satisfaction score: 9.03 Debt as a percentage of GDP: 10.9 percent (3rd lowest) Employment score: 8.05 (8th best) Self-reported health: 9.18 (4th best) Employees working long hours: 6.96 (28th best) Disposable income: 5.16 (8th best) Educational attainment: 6.62 (22nd best) Life expectancy: 8.68 (3rd best)

Life satisfaction score: 9.03 Debt as a percentage of GDP: 51.8 percent (20th lowest) Employment score: 8.79 (4th best) Self-reported health: 8.45 (7th best) Employees working long hours: 10.0 (the best) Disposable income: 4.86 (12th best) Educational attainment: 7.19 (19th best) Life expectancy: 7.25 (16th best)

Australia’s performance varies when it comes to quality of life measurements. Seventy one percent of Australians reportedly trust their political institutions, compared to the OECD average of 56 percent. Australians

Over 91 percent of Dutch residents report being satisfied with their lives, more than any other country in the OECD. This is likely due in part to high scores for personal life and a good balance between work cordeditorial@cma.rs

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and leisure. Dutch citizens are spending 70 percent of their day on personal care, leisure, eating and sleeping, the third-most of any country. This amount of leisure time reflects the national policy of work equality that comes from sharing of labour.

6 Sweden Life satisfaction score: 9.03 Debt as a percentage of GDP: 33.7 percent (9th lowest) Employment score: 8.18 (6th best) Self-reported health: 8.19 (11th best) Employees working long hours: 9.86 (2nd best) Disposable income: 5.02 (10th best) Educational attainment: 9.06 (10th best) Life expectancy: 8.35 (7th best)

Self-reported health: 8.51 (6th best) Employees working long hours: 8.83 (17th best) Disposable income: 5.3 (5th best) Educational attainment: 9.35 (8th best) Life expectancy: 9.45 (2nd best)

Switzerland has roughly the same level of life satisfaction as Israel, but unlike the Middle Eastern country, it scores near the top in most of these quality-of-life indices.

The small, wealthy country scores in the top ten for nine out of the 20 OECD measurements. Swiss residents have the secondhighest life expectancy in the OECD (82.2

Sweden excels in a number of categories which makes the lives of its citizens easier.

The most striking of these is outdoor air quality, for which Sweden has the best out of all OECD countries. According to the Swedish government, its

Finnish students have the second best reading skills among students in all OECD countries goal is that “the air should be so clean that no damage is inflicted on people’s health, animals, plants and cultural values.” Swedes have an above-average trust in their political institutions and above-average voter turnout for elections. The country also has the second highest level of “governmental transparency when drafting regulations,” further evidence of trust in the government.

People in Sweden generally have a good balance between work and personal life. They certainly are not overworked, as only 0.01 percent of the population put in more than 50 hours a week on average, the second lowest amount among these countries 7 Switzerland Life satisfaction score: 9.03 Debt as a percentage of GDP: 20.2 percent (5th lowest) Employment score: 10 (best) 56

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years) and the highest rate of employment (79 percent). Switzerland also has a high rate of mothers who are employed after their children begin school — 79 percent.

hours per year than the OECD average.

Also, 76 percent of mothers are employed once their children begin school.

9 Israel Life satisfaction score: 8.71 Debt as a percentage of GDP: 74.7 percent (26th lowest) Employment Rate: 4.23 (25th best) Self-reported health: 8.29 (10th best) Employees working long hours: 5.05 (29th best) Disposable income: n/a Educational attainment: 8.46 (12th best) Life expectancy: 8.24 (8th best)

Israel is an outlier among OECD nations because it has a relatively high life satisfaction score, but performs poorly for many of the 19 quality of life measurements. For example, Israel has the 6th worst scores for student reading and the 4th worst scores for long hours worked.

However, Israel’s score for household wealth (which measures the total worth of a family’s income and property after liabilities) is the 5th highest across all nations on this list. Each household has an average estimated wealth of more than $62,000. Part of the reason is low taxes — the country has an income tax rate of 6.3 percent of GDP, the sixth-lowest in the OECD. 10 Austria

8 Finland Life satisfaction score: 8.71 Debt as a percentage of GDP: 41.6 percent (15th lowest) Employment score: 6.77 (14th best) Self-reported health: 6.25 (21st best) Employees working long hours: 9.32 (9th best) Disposable income: 4.38 (15th best) Educational attainment: 8.43 (13th best) Life expectancy: 6.92 (18th best)

For many of the metrics considered by the OECD for its “Better Life Initiative,” Finland ranks about average. The country stands out in a few categories, however, causing it to rank eighth best for “life satisfaction.” The category in which Finland does the best is education. Finnish students have the second best reading skills among students in all OECD countries, behind only South Korea. Teaching is “one of the most sought-after professions in the country,” according to the OECD. Finland also scores very well regarding the work-life balance. Citizens work almost 100 fewer

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Life satisfaction score: 8.39 Debt as a percentage of GDP: 65.7 percent (23rd lowest highest) Employment Rate: 7.87 (9th best) Self-reported health: 6.57 (19th best) Employees working long hours: 8.01 (24th best) Disposable income: 5.34 (3rd best) Educational attainment: 8.43 (13th best) Life expectancy: 7.58 (13th best)

Austria has the one of the highest levels of scores for disposable income (the amount of money the household earns after taxes) in the OECD. Roughly 72 percent of Austrians between the ages of 15 and 64 are working. Only 1.13 percent of working-age Austrians have been unemployed for more than a year. According to the OECD’s latest economic outlook report, Austrian businesses have largely avoided having to implement layoffs to offset the effect of the recession, employing practices like “labor hoarding” which reduces working hours and requires workers to work part-time and share job shifts. ■

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sport SEPP BLATTER, PRESIDENT OF FIFA

lord of the Game Joseph Sepp Blatter, better known as Sepp Blatter, The Most Powerful Man in Football, Mr Teflon, Mr Bounce-back and The Napoleon of Soccer, is once again the president of FIFA (www.fifa.com), the international governing body of football

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fter being elected for a final fourth term unopposed and admidst much controversey, on June the 1st of this year in Zurich, Mr. Blatter has vowed to make changes to the running of FIFA, yet, despite the mounting criticisms and chaos 58

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surrounding FIFA the president refuses to admit that the federation is in a crisis saying “Crisis? What is a crisis.” “Football is not in a crisis.” “We are only in some difficulties and these difficulties will be solved - and they will be solved inside this family.”

Mr. Blatter aged 75 was born in a small village in Visp, near the famous Matterhorn in Switzerland. As a young man he cleaned the boots of mountaineers’ during his summer holidays to pay for the football boots he needed to play with at his amateur club. He was eventually rewarded with the offer of a contract by Lausanne Sport FC, but his father made him turn it down saying: “You will never earn your living in football”. His father was a chemical factory worker which, he claims, is why he wears blue suits, as his father had to wear a blue uniform. He attended the University of Lausanne gaining a

his was response was to say, “Let the women play in bachelors in Business Administration more feminine clothes, like they do in volleyball. They and Economics. He went on to put could have tighter shorts and low cut shirts... to create a his education to good use and had a more female aesthetic.” Finally, and quite possibly most successful business career working thoughtless, was his response over fears for gay fans at as Head of Public Relation for the the 2022 World Cup in Qatar, where homosexuality is Valaisan Tourist Board, 1960-1964, General Secretary of Swiss Ice Hockey Federation, Sports journalist, Director of Sports Timing and Relations at Longines and involvement in organising the 1972 and 1976 Olympic Games, before joing FIFA in 1975.

On the 8th of June 1998 Sepp Blatter contraversially became president of FIFA, for his first term, over UEFA President Lennart Johansson. His 2002 candidacy was also stained with rumours abound of financial irregularities and shady backroom dealings.

The accusations mounted, culminating in direct accusations of bribery in the British press by Farra Ado, former vice-president of the Confederation of African Football and president of the Somali Football Federation, claiming that he had been offered $100,000 in 1998 to vote for Blatter.

In the run up to the vote for his final term as FIFA president, the English Football Association requested that the vote be postponed to allow for the numerous scandals to be investigated and resolved. In spite of the On the 8th of June 1998 Sepp Blatter reasonable request by the FA, 172 of the 208 delegates contraversially became president rejected the call. of FIFA, for his first term, over UEFA Blatter incurred much criticism during 2007 and President Lennart Johansson 2008 for his apparent perillegal, “I would say they should refrain from sexual acsistence in attempting to change EU employment law tivities,” being his “advice,” to the fans. regarding the number of foreign players football clubs Max Davidson, well respected journalist and aucan field at any one time. His plans are to set a restricthor of six novels relating to sportmanship comments, tion of 5 foreign players and to having 6 players from “The game can never put its house in order while Sepp the said team’s own nationality. Blatter believes this Blatter is running FIFA .” would help the countries’ national sides by having “His 13-year-old presidency of FIFA has been marked more homegrown players playing in their leagues. by faux pas after faux pas. When he has not been mulOne would think that with all the controversey surishly resisting long-overdue reforms, such as goal-line rounding his business life and dealings, Sepp, ex-prestechnology, he has been insulting women, by advising ident of the World Society of Friends of Suspenders, female footballers to wear tight shorts and low-cut tops, might think it wise not to add fuel to the flames. He, and homosexuals, by urging gay fans to practise sexual on the other hand, seems to disagree with this logic, restraint at the 2022 World Cup in Qatar.” or worse, simply does not care. On gay footballers he Sponsors of the game have reacted to the negativity said “Football is open for everybody. Look at womand lack of regulation. Emirates, the Dubai-based airline, en’s football – homosexuality is more popular there.” and Visa became the latest FIFA sponsors to express conWhen asked about his opinion on women’s football cordeditorial@cma.rs

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tives of football not only control their budgets but also the tongues of their members. But it is not only Blatter who has hit the headlines.

Mohamed bin Hammam The Qatari head of the Asian Football Confederation president and Jack Warner the FIFA vice-president stand accused for the offering of bribes to at least 25 leaders in Carribean football. The bribes are believed to have been in the region of $40,000 cash and were handed in bundles to members of the CFU at a meeting in Trinidad.

Both Mr. Hammam and Mr. Warner have been temporarily suspended from all football related activity. They are members of the all-powerful, 24-man, FIFA executive committee and add to the list of 10 members that have been the subjects of allegations over corruption in the last year.

Bin Hammam, who was to challenge Blatter in the presidential elections, rejected the allegations wholeheartedly. He said in a statement to the press that president Blatter was informed about the payments made to the officials of the CFU, and did not oppose them. Shortly after a FIFA finance meeting in “My general view is that FIFA should be conducted as Zurich, Mr. Hammam issued transparently and as democratically as is necessary to win a statement in which he said “The accusations also contain public support.” - FIFA new member of ‘council of wisdom’ statements according to which and former U.S Secretary of State Henry Kissinger Mr. Blatter, the incumbent FIFA president, was informed of, but did not oppose, payments allegedly made to members of the Caribbean Football Union.” He went on to accuse Blatter of violating FIFA’s beahaviour code. Following the scandal, Hammam withdrew from the presidential race, as Blatters only rival, insisting that the allegations against him were part of a “plan to damage” his candidacy. “I can not allow the people that I loved to be dragged into the mud due to competition between two people. Football and the people who loved this game the issues that are currently surrounding the administrashould be a priority. This is the reason I’m announcing tion of this sport,” Boutros Boutros, Emirates’ senior vice my resignation from the election of FIFA president,” Bin president for corporate communications, said in a stateHammam said on his personal website. ment “We hope that these issues will be resolved as soon Not everything during Blatters 13 year reign as as possible and the outcome will be in the interest of the president has been all doom gloom. Whilst he has game and sport in general.” been at the helm there have been some significant The sponsors’ dissatisfaction has intensified preschanges to the game: sure on Blatter, yet seemingly, the president of “the not • The silver goal has been replaced with the golden goal. for profit” financial powerhouse in football can say and • Winners of the World Cup no longer automatically potentially do as he pleases with seemingly very little qualify for the following tournament. consequence. Althought the subject of BBC investiga• National associations must now enforce the immeditions and numerous exposes it appears the elite execucern about the scandal, joining fellow World Cup sponsors Coca-Cola and Adidas.”The current situation is clearly not good for the game and we ask that FIFA take all necessary steps to resolve the concerns that have been raised,” Visa said in a statement. Emirates is “Disappointed with

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ing body’s of sports in general are virtually un-policed ate suspension of all players sent off during a game. and barely regulated. Because the way sports as a whole • Implementing the mandatory booking of players for have changed there is now an elite, secrecy clad and powremoving their shirt or over-zealously celebrating. erful group of people who have the freedom to line their • No matches to be played above 3000 metres (9840 feet).

Blatter has also been honoured with the ‘Global Award for Peace’ awarded by the International Amateur Athletic Association, Liberian Humane Order of African Redemption and the honorary title of ‘Datuk Seri’ from the Sultan of Pahang and former President of the Asian Football Federation.

None of the changes, awards, successes of tournaments or ‘talk’ can detract from the fact that Sepp Blatter is amongst a group of people who control the flow of billions of euros and are answerable to noone inside their organisation. The system inplace at FIFA is as transparent as a piece of lead. Blatter has said that he will bring that to an end, he was quoted as saying “To rebuild the image of FIFA, that’s No. 1,” in a question of his priorities.

Blatter also wants to establish a ‘coun- Mohamed bin Hammam The Qatari head of the cil of wisdom’, a type of solutions commitAsian Football Confederation president and the FIFA tee to deal with the controversy involving his election and the selection of World vice-president stand accused for the offering of Cup hosts. Former U.S Secretary of State bribes to at least 25 leaders in Carribean football Henry Kissinger who has said “My genown pockets at the expense of the paying public. eral view is that FIFA should be conducted as transparIn the case of football it appears that the ‘beautiful ently and as democratically as is necessary to win pubgame’ is now more of a beast. lic support,” Dutch football icon Johan Cruyff and opera At present FIFA has reserves in excess of 851,788,756 legend Placido Domingo have all be named as commitEuros.

■ tee members. “Placido Domingo will be part. He is happy. He is proud that he is part” Blatter said. “Kissinger alAnother Vice President quits so. People say he’s an old man but he’s a wise man.” “Let me work with this committee of solutions.” “And if this ack Warner has quit as a vicecommittee of solutions or the ethics committee have the president of FIFA just weeks impression that they should do something, then let them after promising a "football tsutake the decisions.” He then went on to say, “These gennami" of revelations in response tlemen are more or less advisors.” “They are not the exto his suspension from the gloperts but advisors and what they should be also is a kind bal governing body for alleged of council of wisdom -- which my executive committee corruption. would not like because they think they are the council of Warner was serving as the wisdom.” A FIFA official will chair the committee of sohead of the Caribbean Football Union and the Confederation lutions, Blatter seeing no need for an independent group of North, Central American and Caribbean Association to provide outside oversight of FIFA’s actions.

Football (CONCACAF) prior to his ban, announced his decision to step down in a letter to FIFA's ethics com“The football family has asked me to solve the solumittee. Earlier this month FIFA hired FBI director Louis tion inside FIFA and not outside FIFA.” “If we have to go Freeh to investigate bribery claims against Warner and and open our borders and say everyone can come in... we Mohamed Bin Hammam, the president of the Asian Football are a very organized institution with 208 associations, six Confederation, who also resigned earlier. continents.I’ve put already zero tolerance in the agenda.” – Following his decision the FIFA ethics committee immeSepp Blatter. diately dropped its follow-up investigation into his conduct.

FIFA is not the only sporting body wielding such "Mr Warner is leaving FIFA by his own volition after nearly power and potentially abusing it. There have been major 30 years of service, having chosen to focus on his important allegations made in cricket, college basketball and most work on behalf of the people and government of Trinidad notably Formula 1. It must be accepted that there will be & Tobago as a Cabinet Minister and as the Chairman of the corruption where there is big money involved. The probUnited National Congress, the major party in his country's colem though in the current situation is that the organizalition government," read a statement from FIFA.

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travel Top 10 Secluded Beaches

Sand & Seclusion Nearly everybody loves a day at the beach – basking in the sun, splashing in the surf, and lounging in an ephemeral state of relaxation. The one problem with this equation?

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ith sun, surf, and sand on top of mind this summer, we’ve honed in on a selection of secluded international beaches that virtually guarantee at least a modicum of pure solitude, with ample room for your biggest beach blanket and wide-angle vistas of exquisite natural beauty from every perspective. Granted, not having to share can mean venturing to far-flung locales (we’ve dug up fine sands everywhere from Thailand to Tonga), but some of the most isolated shores also fall within such bona fide hot spots as the Caribbean, Brazil, and the Greek Isles.

You’ll just have to act fast to truly get away from it all as such beautiful secluded beaches rarely stay crowd-free for long.

10/10

9/10

Ao Phra Nang Beach, Thailand

Baía de Sancho, Brazil

Often cited as ‘Phuket 10 years ago’, the secluded beaches and resorts surrounding the Thai port town of Krabi remain, for the time being, far less trodden than those of its famous island neighbour, some 100 miles to the west. Accessible only by longtail boat from Krabi or from the more frequented beach resort of Ao Nang, here, four neighbouring white-sand beaches unfold, of which Ao Phra Nang Beach is the most secluded with its snorkelling-friendly reefs, soft sands, and singular luxury hotel.

Hotel accommodation: Rate for two adults 15 nights in July, from € 400 – €1,800

Red-tinged sands and turquoisetrimmed shores define this pristine bay, which unfolds on the main and only inhabited island of Fernando de Noronha, an Atlantic archipelago off Brazil’s north-eastern coast. Protected as an UNESCO Natural World Heritage Site and a national marine park, the waters here thrive with an array of marine life, from live coral to manta rays and sea turtles to dolphins. The few visitors who do access the isle are thinned out even further by the precarious approach to the remote Baía de Sancho, which entails climbing down a cliff face along a series of ladders.

Hotel accommodation: Rate for two adults 15 nights in July, from € 2,000 – €8,000

8/10 Costa de la Luz, Spain An Andalusian affair with sand and sea awaits at Spain’s southernmost point, where from the small coastal cities of Huelva to Cadiz and on to Tarifa, over 50 miles of dune-backed secluded beaches beckon with fine white sands trimmed by pinewood trees, animated fishing villages, and wide Atlantic-facing waters. Abundant year-round sunshine ensures that this Costa de la Luz, or ‘Coast of Light’, is well-deserving of its moniker, yet its shores manage to remain blissfully crowd-free and devoid of unsightly high-rise development.

Hotel accommodation: Rate for two adults 15 nights in July, from € 400 – €1,600

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7/10 Uoleva Island, Tonga This hidden island gem’s far-flung locale — situated within the South Pacific archipelago of Tonga’s (aka the “Friendly Islands”) Ha’apai Group — ensures that visitors who make the journey here will be rewarded with perfectly pristine secluded beaches, designed with solitude in mind. Swim, fish, or snorkel the day away (don’t miss the reef-peppered shores along the western end of the island), or opt to charter a boat from the capital at Pangai, situated on Lifuka Island, just a couple of miles to the north.

Hotel accommodation: Rate for two adults 15 nights in July, from € 700– €4,500

6/10 Long Bay, British Virgin Islands The third largest in the British Virgin Islands’ 60-plus island chain, Virgin Gorda (or, the ‘Fat Virgin’, named so by Christopher Columbus because of its reclining, feminine shape) lures in-the-know seclusion seekers to its largely off-the-radar Long Bay. Accessible either by the steep, rugged road past Nail Bay or via anchored boat off the coast, this isolated inlet’s white sands and secluded beaches make the perfect land base for further swimming and snorkelling adventures into the lagoon-like waters.

Hotel accommodation: Rate for two adults 15 nights in July, from € 700 – €4,000

5/10 Palmetto Point Beach, Antigua While popular Antigua boasts 365 beaches along its shores, none is as removed as the magnificent swaths of secluded beaches found on its sister island of Barbuda, some 25 miles to the northeast. A rarity in the Caribbean, where building big resorts on spectacular sands is more the norm, Barbuda’s miles of white- and pinkhued beaches have been largely left untouched, with only a handful of full-service resorts to share them.

Even the island’s finest stretch, a seven-mile expanse from Palmetto Point to Coco Point, is typically so deserted that you can expect to share your day with seashells instead of people.

Hotel accommodation: Rate for two adults 15 nights in July, from €350– €2,500

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4/10 Shipwreck Beach, Greece One of the most picture-perfect stretches of sand in Greece is also one of its most secluded beaches, thanks to the towering cliffs that surround Shipwreck Beach’s sandy cove and make it accessible only by boat. Stunning and secluded indeed, the Ionian island of Zakynthos is famous for its trademark beach — a perfect milky-white crescent where the wreckage of a marooned vessel, dating back to 1983, remains half-emerged in the sand.

Hotel accommodation: Rate for two adults 15 nights in July, from € 500– €3,000

3/10 Santa Teresa, Costa Rica While Costa Rica’s Nicoya Peninsula may already be a bona fide surfer-haven, mainstream tourism has yet to discover the largely untrammelled stretch of secluded beaches along Santa Teresa’s coast on the peninsula’s southernmost tip. You’ll have to endure a nearly sixhour trip to get here — a car-ferry combo from San José, much of which is on a barely drivable dirt road — which may be why the jungle-swathed stretch from the beach villages of Malpais to Santa Teresa is still so preserved. Besides a few surfers out by the breaks and perhaps some mischievous monkeys pillaging for fruit in the canopy, you’re likely to have the beach to yourself.

Hotel accommodation: Rate for two adults 15 nights in July, from € 500– €8,000

2/10 Trou d’Argent, Mauritius Situated off the coast of Africa in the southwest Indian Ocean, visitors to Mauritius’s Rodrigues Island can uncover a small swath of shoreline with a name that translates to ‘Money Hole’, a testament to the treasure that is rumoured to be buried here. Trou d’Argent’s off-the-beaten-path sands tout striking views of the west and east access to the Indian Ocean from within a horseshoeshaped, cliff-hugged cove.

Hotel accommodation: Rate for two adults 15 nights in July, from € 1,200– €3,800

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1/10 (Source: www.shermanstravel.com)

Whitehaven Beach, Australia Tucked away on Australia’s idyllic Whitsunday Island, Whitehaven Beach seems impossibly pure. The dove-white sands owe their silky, talcum-powder softness to the 99.8-percent pure silica grains that swath its shore. Backed by lush acacia forest and fading into pristine, cerulean waters, the setting simultaneously calls to mind and transcends island clichés. Best of all, the secluded beach’s sands border on deserted thanks to visitation limits enforced by the Great Barrier Reef Marine Park Authority.

Hotel accommodation: Rate for two adults 15 nights in July, from € 1,000– €5,000 cordeditorial@cma.rs

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restaurant

A Fine choice ‘Đorđe’ has unfortunately suffered from misconceptions in the past but there is no doubt that these misconceptions are unfair and unfounded

By Max WIllIAMS Photos: Marijana ŠApoNIć

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orđe is a frustrating restaurant. It takes itself too seriously. As does some of its clientelle.

Yet, when you brush aside the pomp and circumtance attitude, it is actually an enjoyable place to be. Seated outside on a beautiful summers evening certainly helps the eatery remove some of the formality that it has become associated with. I have been realiably informed, after the summer, when the suits return, both geo-

Simply, the service can not be faulted and would be one of the main reasons I would recommend Đorđe graphically and sartorially, the atmosphere does indeed become uptight. Fortunately for Đorđe, I am happy enough to go back and check this for myself.

I was already up-tight before I even set foot in Đorđe.

Not only was it my first assigment for CorD, it was also my first time out with the company photographer. In the 66

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past when I have reviewed restaurants I have had the option of who to take and where to take them, this time my new employers chose and “chose well they did,” said the new employee. On arrival at the restaurant, accompanied by what can only be described as a most “talented” photographer, we were greeted by a valet. I found this slightly odd as we arrived by taxi but it really is a nice touch. Parking at the restaurant would be a hassle due to it’s location on a residential street near the centre of town, about ten minutes from Trg Republike.

Seated in the garden by the friendly hostess, my “date” for the evening and I were suprised that the eatery was not particularly busy for 7 pm which, based on my singular experience, is not a reflection of the restaurants quality. Most restaurants in Belgrade, particularly the more sophisticated establishments, suffer a loss of business during the summer.

The music was soft, entirely appropriate and helped with the romantic atmosphere that my date was “obviously” trying create. The newly installed waterfall, although quite loud, swiftly faded into the background and added to the relaxed atmosphere. The large garden is a well designed, realxing and pleasant place to be with ambient lighting, big tress, lawn, dark wooden flooring and plenty of space between the tables. At a restaurant I would rather be more removed from the outside world, as the walls are low, but the apartment buildings around the restaurant are not imposing and are far enough away not to distract you from your dining experience.

The menu came and it was instantly clear that at Đorđe there is no particular theme. The food on offer is a mixture of European dishes and the better Serbian offerings like pljeskavica, ćevapčići and kobasice. The menu, with it’s lack of focus, is also bordering on excessive with soups, salads, traditional meat dishes, pasta, risotto, steak and seafood, the list goes on. The menu could do with being streamlined although there is no doubt though that you will find something to tickle the taste buds.

My date and I opened the night with a glass of the Kovacevic, a sharp and tasty full-bodied Serbian red wine. We were not brought a wine list, which was disappointing, yet the waiter certainly seemed to know his wines, listing what I can only presume was the entire list.

going to try and get back to water. It was not to my aesthetic taste, being served as near to whole as it could be on top of mixed vegeatbles. When I did eventually pluck up the courage to attack it I was absolutely blown away. The meat was fantastically cooked, slightly burnt at the tips but with the perfect texture. The vegetables were pleasingly not piled high on the plate and provided a simple yet adequate accompliment to the wonderful squid and were eqaully well coked. The risotto, although far superior visually, was not as good. The rice was dry and although it wasn’t unedible, was definitely not up to standard.

After devouring my squid I had no need for dessert.

The desserts on offer are unimaginative and Đorđe has not tried to distinguish itself from other Belgrade restaurants, following the trend of putting next to no effort into this element of the menu. My company was still hungry after only eating only half of her risotto and, refusing to try my dish, chose the tiramisu. What arrived at the table was a very ample slab

There is no doubt though that you will find something to tickle he taste buds After wading through the menu I decided on the squid in garlic sauce and my date chose the shrimp risotto with saffron. Fortunately, the waiter informed me that with the dish I chose I had the option not to have the garlic, clearly the wiser option as many Serbian restaurants seem to have a french-like fetish for garlic.

The service in Belgrade can be a bit, want to, hit and miss. At Đorđe it is anything but. Our waiter for the evening, Nebojša, was a friendly and attentive server without ever encroaching on our evening. Everyone employed at the restaurant seemed to speak English very well, appear well educated on the menu and focus on quality service rather pretentiousness. Simply, the service can not be faulted and would be one of the main reasons I would recommend Đorđe.

Normally ‘quantity over quality’ seems to be the mantra in Belgrade’s restaurants. At Đorđe they have the balance spot on. The risotto, sculpted into two domes, looked especially delicious. With it’s vivid yellow colour and gargantuan king prawn laid on top it really made the mouth water. My octopus on the other hand looked like it was

of a beautifully coloured, sweet, not remotely sickly, Italian bombshell. Although I was full, my eyes, contrary to the laws of physics and reality, beacame bigger than my belly resulting in my falling in love with an Italian beauty. My date although equally as tasty was Serbian.

It is quite obvious what Đorđe is attempting to do. The owners clearly want to change the Serbian way of thinking when it comes to fine dining. There are only two problems with Đorđe. The first problem is the lack of originality and flair. The second is the restaurant’s claims of fine dining. It is a pleasant place to go for a reasonably priced, interesting, well-prepared meal and, ‘fine’ thought it is, it is not the best in Belgrade. All that being said Đorđe is on the ascent and definitely worth experiencing.

■ cordeditorial@cma.rs

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mikser 2011

Eruption of creativity Belgrade’s Mikser Festival (www. mikser.rs) lasted for five days in June with over 1,500 people participating in the festival’s events.

The participants vented out their creative potential in 14 programme zones. Close to 60,000 people from regional countries and the rest of Europe visited the festival and thus justified the title that the festival bears – the biggest regional festival of creativity and innovation supported a volunteer campaign called ‘Together for Rivers’ that was a collaborative effort by Mikser and Alpha Bank.

At Žitomlin’s premises, Mikser brought together young creative people from ’The Talent Zone’ and commercial exhis year’s underlining theme of the festival’s key prohibitors from ’The Expo Zone’. The most innovative compagrammes was a jubilee – 20 years of the disintegration nies from the region, and Europe, and the creative youngof the Socialist Federal Republic of Yugoslavia. In the sters communicated whilst creating opportunities for various Visual Art Zone, the curators juxtaposed the youngcooperation venues like a competition launched by German est generations of artists and their notion of the former state furniture maker Kara, Ceresit’s workshop for young archiwith the most renowned visual artists like Marina Abramović, tects, Simpo’s competition, Corian opening a master workMrđan Bajić and Vladimir Perić. There was another jubilee shop for young designers, the Henkel Art Award competithat was also celebrated – 30 years of ’The New Wave’ - which tion etc. In this spirit the best entries from Mikser’s compeserved as the inspiration to a unique music programme and tition ’Young Balkan Designers’ will go on a European tour, brought back to life some of the favourite LPs of the past decfollowing the world premiere at the prestigious design fair in ades with the help of Serbian bands like Darkwood Dub, Milan. The tour will include the Dan D exhibition in Zagreb, Svi na Pod!, Jarboli, Zemlja Gruva, Petrol, Neočekivana Sila, Sofia Design Week (where Mikser will officially present the Vroom and Veliki Prezir. Music veteran Leo Martin, accomcompetition winners) and Vienna Design Week. panied by an army orchestra, and the timeless Croatian song“Mikser perfectly demonwriter, Arsen Dedić, made this musical journey of the symbolic At Žitomlin’s premises, Mikser brought strates just how tolerant Serbia name – ’Return to the Future’ – together young creative people from is. On one hand, there is an event like ours which sends even more special. ’The Talent Zone’ and commercial out good messages from Serbia The Contact Zone was alto the rest of the world, and so a meeting place for a diverse exhibitors from ’The Expo Zone’ then, on the other hand, there number of people – from artists are street protests that are a part of everyday life in Belgrade“, to environmental specialists. There was Aaron Kennedy, the Mikser Event’s Milan Nešković said for CNN. Editor-in-Chief of prestigious design magazine Print, Bernard Bearing in mind the economic downturn and the fact Kuri, a globally renowned Lebanese architect, Zack Lieberman, that no entrance fees were charged, many of the inidividuwho, according to Time magazine, is one of the most creative al events at the Mikser Festival would not be possible withminds of today, and the creator of the environmental moveout help of visionary companies and institutions like Radio ment ‘Let’s Do It’ Rainer Nolvak, who is also an inspiration beand Television of Serbia (RTS), the Belgrade City Assembly, hind many volunteer campaigns all over Europe. Nolvak has

Successfull Team: Maja Lalic (third left) with her teammattes

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Ministry of Environmental Protection, The Environmental Protection Secretariat, UNDP, Alpha Bank, Becks, Coca-Cola, Henkel, Delta Generali, Alma Quatro and many others.

EXPO ZONE “The Expo Zone constitutes a business segment of the Mixer Festival. It was devised as a response to the lack of contemporary commercial events in Serbia where innovative domestic, regional and global companies could establish direct commu-

Mikser Performing Talents promotes young, progressive and authentic artists, as well as the search for new artistic generations.

Creative laboratory of Baby Mikser Kids-Patch had many creative projects for the youngest festival visitors.

For five whole days, there were many exciting workshops,

Mikser X-Change is the festival’s exhibition segment with over 50 exceptional indviduals and groups presenting their work nication with their relevant audiences.

This year, over 50 exhibitors showcased in the Expo Zone including the leaders of the Serbian business sector like Simpo and Tigar, successful furniture producers, globally renowned brands like Corian, Ceresit and Henkel, and the distributors of design furniture, lighting, ceramic products and other home accessories. This year too, Mikser gave out Expo awards. The visitors voted Tehnodom as the most innovative exhibitor, while Rukotvorine, Lomography and Porcelanosa all won special awards for original presentation.

NEW PROGRAMME ZONES This year, the Mikser Festival had six new programme zones - Mikser Outdoor, Mikser X-Change, Performing Talents, Mikser Bazaar, Dis-patch Zone and Baby Mikser. The key adjectives that describe Mikser Outdoor are interactivity and experience. There are also Mikser’s ongoing efforts to establish a dialogue with the visitors. This year, Mikser Outdoor had the following guests - Wekend Media Festival from Rovinj, Croatia, Vienna Design Week from Vienna and Pecha Kucha from Belgrade.

performances by domestic and foreign artists, special video screenings and street art events in the Dis-patch Zone. Also, musical documentaries and video mapping were showcased.

Mikser X-Change is the festival’s exhibition segment with over 50 exceptional indviduals and groups presenting their work.

This year X-Change selection is the result of cooperation with various festival partners – from the Mondrian Foundation (The Netherlands) and Biljana Kovačević Vučo (Serbia), to indepedent organizations like Stichting Cultural Aid (The Netherlands) and Public Room (Macedonia), as well as the Parobrod Institution of Culture (Serbia), Numen collective (Croatia), Nature & Art, Medijska arheologija (Serbia), Coca-Cola and Henkel (Serbia). ■

Mikser’s plans

A

s Mikser Festival continues to branch out and add on new disciplines, the field of our activities become wider. We are also publishers and, apart from recently published monographs about Mirko Ilić, Mikser Books is preparing several new editions. Speaking about the work we do with young talent, we want to use the experience we have gained abroad to take the Young Balkan Designers project to a new level. We are preparing to complete our search for prototypes that will be presented at global talent events and step into the world of real products. We will also work on several things simultaneously like continuing to map out talents through a series of competitions and exhibitions. On the other hand, we are also working hard on establishing cooperation with domestic, regional and foreign companies that have expressed an interest in collaborating with young designers. These are companies like Simpo from Serbia, Rukotvorine and Artisan from Bosnia and Herzegovina, Kara from Germany etc. The idea behind this, is that, together with interested producers we would launch a competition where the people with design and technological solutions for concrete products and then the companies would than need to apply. The competition would have different categories and, as a result of it, we would have products that would no longer be mere prototypes, but be mass produced“, says Maja Lalić, Programme Director of Mikser.

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culture

calendar CONCERTS TAVITJAN BROTHERS feat. GARABET TAVITJAN Sava Center 2 July @ 20.00 With more than 400 concert performances around the world, Tavitjan Brothers – Diran (piano) and Garo (drums) are the most famous and finest jazz musicians from Macedonia. Their musical expression includes several musical styles including Jazz, Fusion, Electro and Macedonian traditional music elements combined in a virtuoso instrumental manner. They have performed at numerous international festivals and solo concerts and have won several international awards including the Sonyjazz.

The new Gary Burton Quartet with Julian Lage, Antonio Sanchez & Jorge Roeder Sava Center 2 July Santana Belgrade Arena 6 July @ 21.00 One of the Worlds best guitarists, Carlos Santana, will perform in front of Belgrade audience on 6th July 2011 in Belgrade Arena. He will be joined on stage by Jimmy Clif, Jamaican ska and reggae singer. Enjoy it!

43rd Kalemegdanski sutoni – Days of Belgrade music youth Kalemegdan 21 June – 7 July Traditional music event “Kalemegdan Sunset” will be held between 21st June and 7th July on the Plato in front of the Military Museum in Kalemegdan.

5 July @ 19.30 A capella band ’Glasne zice’ 7 July @ 19.30 Aleksandar Nikolić, bandoneon and accordion and Petar Ilić, accordion 51st Guča Trumpet Festival Guča, Dragačevo 10-14 August Biggest trumpet festival in the world, Guča Festival is a celebration of brass band music. Authentic Serbian noisy atmosphere at the world’s greatest festival dedicated to the Trumpet.

The popularity of this world class festival has been increasing over the years. The festival includes cultural and art programs, self-taught artists, ethnological and historical exhibitions, and sports competitions in traditional 70

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disciplines. Guča festival is the biggest international trumpet competition. About 100 orchestras go through pre-selection and only 40 best seniors, youth and pioneer orchestras take part in the finals.

Belgrade Beer Fest Ušće 17-21 August Belgrade Beer Fest was founded in year 2003. During the eight years of its existance arround 4,000,000 visitors enjoyed over 400 music performances, tasted over 80 beer brands and were able to take part in numerous social campaigns.

Festival recieved numerous recognitions.

Among these recognitions is a recommendation of the British newspaper The Independent placing the Belgrade Beer Fest among 20 world events that should be seen.

The large number of Belgrade Beer Fest visitors is mostly owing to the basic festival principles – entrance free of charge, miscellaneous music program and wide range of foreign and domestic beer brands.

Performers yet to be confirmed.

CLASSICAL MUSIC Filarmonica della Scala VIII International Cello Festival in Belgrade Sava Center 10 July @ 20.00 Concert of Milano Filarmonica della Scala, the ensemble whose brilliant interpretations are causing standing ovations in concert halls around the world, will perform at the final evening of VIII Belgrade International Cello Fest.

This ensemble founded by Riccardo Muti, in addition to opera, nurtures with great enthusiasm, symphonic music. Orchestra will be led by Maestro Daniel Harding, one of the leading conductors of today, and as a soloist for the first time in Belgrade cellist Slash Belgrade Arena 31 July @ 20.00 This BritishAmerican guitarist and songwriter, critically acclaimed, magazine TIME naming him runnerup on their list of "The 10 Best Electric Guitar Players".

Known as the hard-rocking' lead guitarist for Guns N' Roses and Velvet Revolver, Slash released his solo debut album in 2010 and is currently on tour to support it. www.cordmagazine.com

Marie-Elisabeth Hecker, winner of the famous Rostropovič competition.

The program includes Rossini / “William Tell” overture, Schumann / Cello Concerto, Faure / Elegie and Dvorák / Symphony No.9.

VI International Festival of Classical Music “Vrnjci” Vrnjačka Spa, Heritage MuseumCastle culture 20 July@20.00 The Festival will be opened with the evening dedicated to Italian music, and guests will be the maestro Fabio and Bruno Rossi Barbagalo, director of Edizioni Musicali label Pizzicato. The diverse musical talent of Fabio

ART Belgrade from bird’s eye view Goethe-Gerila Belgrade Fortress, Donji grad, in front of the Karl VI Gate 26 June-3 July Opening 26 June @ 20.00 There are a number of commercial and residential multistorey buildings in Belgrade, many of which were according to their initial plans, supposed to provide us the with the pleasure of bird’s eye view of the city.

But unfortunately this is often not the case. Aim

Exit Fest Petrovaradin Fortress, Novi Sad, 7-10 July

EXIT is the biggest festival in South Eastern Europe. Since 2001, this four day music festival is each year held at a beautiful and magical Petrovaradin fortress in Novi Sad. This year’s lineup: Arcade Fire, Pulp, Jamiroquai, Portishead, Nick Cave and Grinderman, , M.I.A. , House of Pain, Bad Religion, Kreator, Beirut, Go Back to the Zoo, Underworld, deadmau5, Groove Armada, Fedde le Grand, Magnetic Man, Tiga, James Zabiela, DIGITALISM live, DJ Sneak, Paul Kalkbrenner, Joris Voorn, Steve Aoki, Carl Craig, Marco Carola, Hadouken!, Joachim Garraud, Better Lost Than Stupid (Martin Buttrich, Davide Squillace, Matthias Tanzmann), Gramophonedzie, Tini, Maya Jane Coles, Union DJs, Gramophonedzie, Partibrejkers, The Good Guys, Svi Na Pod, Petrol, Irie FM… Barbagala, Sicilian guitarist who perfected working with Alirijom Diaz, occupies a special place for electronic music computer. Royal String Orchestra “St. George” will perform compositions by maestro Barbagala.

DANCE Shaolin warriors Sava Center 12 July @21.00 Internationally famous Shaolin Warriors productions is back with a new program to a new European tour.

Kung fu show, the breathtaking, picturesque reaches a rarely seen agility, strength and skills. Shaolin Warriors, who use Buddhist meditation and their rigorous training in mastering complex combat challenges.

It is an extravagant show with 22 artists performing Kung Fu skills, with a beautiful environment and scenery, with atmospheric music and accompanying light effects and many costume changes.

Shaolin Warriors was seen by over 500,000 viewers of all ages on three continents, to sell out venues and standing ovation at the end of each performance. This is a program for the whole family, as well as lovers and fans of martial arts.

of Goethe-guerrilla Belgrade photo exhibition is to show people of Belgrade and all who visit this beautiful city, view of Belgrade on a scale that is not available – bird’s eye view.

Art in the Window – Works of the Fine Art University students Goethe-Institut, Belgrade 23 June-15 July Raquel Lozano: Balkan in Color 22 June – 15 July Instituto Cervantes, Belgrade This art exhibition presents mosaic composed of many pieces that together comprise a unique portrait of the region where the everyday becomes exotic, and the relentless pace offers a variety of unique and unrepeatable moments.

After more than a year of collecting these photos, the author Raquel Lozano presents her specific vision of Balkan’s extraordinary diversity of landscape and people. Starting from the most representative elements to those that remain almost unnoticed, these are the protagonists of this colorful exhibition of photographs that have captured the magic moments. Selected images delight with it’s the messages, creativity and with the idea to show how exciting experience of living and traveling the Balkans can be.

news

Exhibition of photographs

by Fabio Sgroi “Belgrade.

Fragment of a decade” Italian Cultural Institute, Belgrade 4 Jun - 31 August Within the “Venice Biennale: Italian Pavilion in the world,” which was supported by the Italian Ministry of Foreign Affairs and the Ministry for Cultural Heritage and Activities, the Institute will present the works of artist from Palermo, Fabio Sgroi. He stood out with his original ideas and a desire to show photographs of reality with which he constantly deals with in different ways. Fabio Sgroi will present his view of the Belgrade culture rich with contradictions through black and white photographs. Exhibition is organized by Italian Cultural Institute.

Dalí in Novi Sad Aula Master Center, Novi Sad Fair, Novi Sad 2 July - 19 September Exhibition presents more than 200 graphic works of Salvador Dalí: Bible Sacra and Divine Comedy.

El Día Instituto Cervantes, Belgrade 18 June Statistics say that more than 450 million people speak Spanish language. Spanish is now the second language in the world by number of native speakers, second language of international communication and the third most used on the Internet.

El Día was created in 2009 as a project of the Instituto Cervantes in order to mark 18 years of the Institute, as well as to promote the culture of the language spoken on all five continents. During these two years, all the Instituto Cervantes centers around the world - from Sydney from Brasilia, are marking this day, celebrating Spanish language and culture.

Mauerstücke / Wall Pieces Theatre collage of the history division of Germany Bosanska Krupa/Zagreb/Belgrade/ Banja Luka 22 – 28 June Under the slogan "With the pieces of the wall we are building bridges" acting students from the Government of Germany’s seven partner schools from all over Bosnia and Herzegovina started another tour, this time in the cities of the region.

As part of the "Schools: Partners for the Future" (PASCH) Goethe-Institute of Bosnia and Herzegovina tour with the play "Mauerstücke" / "The Wall

Sanggar Cut Nyak Dhien Kolarac Foundation Hall 24 June

A cultural group from the Province of Aceh paid their visit to Belgrade on 24th of June. The Embassy of the Republic of Indonesia in Belgrade together with Belgrade City Assembly organised this cultural dance and musical performance which was held in ‘The Ilija M. Kolarac Foundation”.

A cultural group from the Province of Aceh, “Sanggar Tari Cut

Pieces" in four cities of the region.

Bosanska Krupa, Zagreb, Belgrade and Banja Luka are the cities in question after a successful premiere in November 2009 in Sarajevo, visits to Berlin in July 2010 and tour of the cities International Triennial of Graphic Art in the Window Goethe-Institute, Belgrade 1-30 June

First International Triennial of Graphics, organized by the Association of Fine Artists of Serbia, was held in June in Belgrade.

Triennial presented the most eminent artists of 265 works from more than 35 countries worldwide. This event promoted cultural cooperation between Serbia and other countries was a great opportunity to gain an insight into contemporary trends in the field of graphics. of Bosnia and Herzegovina in October 2010.

Seven pupils from partner schools of the German government in B&H shined again on stage.

They have performed on 22nd June at BKC in Bosanska Krupa, then in Zagreb 24th June at the Zagreb Youth Theatre, followed by performance in Belgrade in the Youth Theatre DADOV on 26th June and final performance in the Children's Theatre Banja Luka 28th June.

Nyak Dhien” toured across Balkan region throughout June. Cultural group “Cut Nyak Dhien” is a traditional Acehnese dance and musical group that has existed for more than 30 years and has been invited to performed all over the world. It is named after a famous female Acehnese warrior and it is the oldest traditional dance group in Aceh which promotes the Province’s culture throughout the world. Almost two-thirds of the group are youth. cordeditorial@cma.rs

Japanizam Dom Omladine 30 June His Excellency Toshio Tsunozaki, Ambassador of Japan in Belgrade, has opened an exhibition of works in the manga style, which formally opened this year's Japanizam Festival on 30th June. Opening ceremony was followed by a performance of group Bad Apple Crew, dance section Sakurabana and enjoying the atmosphere with a tasting of different teas from tea house ‘Kuća čaja’ and freshly prepared sushi by the ‘Tokyo Bar’ restaurant.

Festival of Japanese pop culture,

Japanizam, is held for the fourth time ever in Belgrade. All visitors had the opportunity to enjoy workshops, lectures, debates, screenings, trade fairs, in exhibitions and many other surprises created by the company Sakurabana, DOB and the Embassy of Japan, supported by the City Assembly.

People from MedveDJi Lug – The Story of the Neolithic Art Gallery “Stara Kapetanija”, Zemun 2 - 21 June People from Medveđi Lug – The Story of the Neolithic is just that - a story of the early Stone Age - Neolithic and one of the most fascinating and most beautiful European culture of that era - Vinča, which has developed on the territory of Serbia. More than 350 so far not exhibited pieces agricultural, hunting and fishing tools and weapons, stone and bone tools, pottery, figurines, altars and other objects, give a rounded picture of people’s lives in hypothetical neolithic village Medveđi Lug and about how their daily activities, as well as spiritual and religious life.

Exhibition was accompanied by extensive book catalog of 370 pages by Branka Najhold.

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Ljiljana Stojanović: Small Town Sava Center, Art cafe Gallery 29 June- 18 July At the Art Gallery of Sava Center, Ljiljana Stojanović’s ‘Small Town’ exhibition will be held, with 35 small and medium sized oil on canvas paintings.

In addition to prints, watercolors, drawings and works on paper made by hand, with which she is continuously engaged for over thirty years, this is the artist first exhibition of images in oil on canvas.

In Ljiljana’s art work towns open their gates, squares, streets, and clustered lower facades, gables, towers, roofs, cupolas, with cheerful symbols of habitation - steamships, roostersvane, shells, children’s carousel, the sun, moon, stars ...

techno

talk

The World’s MOST EXPENSIVE WATCHES 2010 A watch is a timepiece that is made to be worn by a person but now wrist watches are often appreciated as jewellrey or as collectible works of art rather than just as timepieces.

The design and style of a watch projects the personality of a the wearer. A watch is an essential fashion accessory that can spice up the look of your entire outfit. It is an important element of fashion which should be worn on all occasions.

The reason for watches being in the spotlight is their demand. Every body wants to grab a unique, lust worthy piece for his/her wrist. Bold and brazen designs look attractive and a steel finish adds to the decorative appeal of the watch.

Leather prints with stylized texture and colour can set off the unique appearance for the watch.

Here are the 10 most expensive watches in the world For the year 2011

Ulysse Nardin

Jacob & Co.

royal Blue tourbillon

Crystal tourbillon

This limited edition watch of which only 30 pieces have been produced and sold at select retailers. It has a platinum case and bracelet and is set with a total of 568 baguette-cut Top Wesselton diamonds (33.8 carats) and 234 baguette-cut royal blue sapphires (16.79 carats). It is water-resistant to a depth of 30 metres.

Additional pieces, also set with baguette diamonds and sapphires, are available with a leather strap and platinum buckle. Founded in 1846 as a maker of marine chronometers, the company is still privately held.

The 18 carat white gold case of the Crystal Tourbillion is covered in 17.48 carats of baguette diamonds and has a transparent skeleton tourbillion dial. The piece is finished with an alligator band with a 2.22 carat baguette diamond buckle. Jacob & Co. manufactured 18 pieces of the white gold Crystal Tourbillion.

Price: €700,000

Price: €631,000

Hublot

Black Caviar Bang The case, crown dial, and clasp of Hublot’s Black Caviar Bang are encrusted in baguette-cut black diamonds. The watch, which has no numbers on the face, has 544 diamonds, a total of 34.5 carats. It is 18 carat white gold and has an adjustable leather strap. In 2009, it won the Grand Prix de Genève Jewellery Watch prize. Founded in 1980, Hublot today is a subsidiary of Moët Hennessy Louis Vuitton.

Price: €700,000

Patek Philippe

sky moon tourbillon Patek Philippe’s first doublefaced wristwatch features the nocturnal sky on its reverse side with the motion of the stars, the orbit of the moon, the moon phases, and a display of sidereal time. It has a tourbillion, perpetual calendar, and a minute repeater. Founded in 1851, privately held Patek Philippe is based in Geneva.

Price: €765,000 72

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Parmigiani Fleurier

Fibonacci pocket Watch The Fibonacci pocket watch features mother-of-pearl counters and a white gold dial. The case is decorated with enameling of a lotus flower, designed to mimic Fibonacci’s Golden Rule, represented by the snail shape—a theme continuously used in the watchmaker’s other designs. It has a minute repeater with cathedral chimes and a perpetual calendar. The piece is available by special order from the Parmigiani Fleurier manufacturers (Switzerland), and the process can take up to two years.

Price: € 1,270,000

Blancpain

Franck Muller

tourbillon diamants

aeternitas mega 4

This one-of-a-kind piece, available by contacting Blancpain’s headquarters in Paudex, Switzerland, has 480 diamonds totalling 58 carats on the dial, bezel, case middle, lugs, and bracelet.

It is self-winding and has an exceptionally long power reserve: seven days. The case is water-resistant to a depth of 100 metres. The company is owned by Swatch Group.

The watch, which contains 1,483 components, has 36 complications, the most of any watch in the world.

It displays three time zones and a 999-year calendar, has a flyback chronograph, and chimes the Carillon Westminster melody on the hour (considered a very high complication), with small strikes on the quarter hour.

It has a three-day power reserve for the movement and 24-hour reserve for the chime. The Mega 4 is a special-order watch available only in New York and Geneva.

Price: $1,812,700

Price: € 1,900,000

Piaget emperador “temple”

Cartier

The Piaget Emperador “Temple” actually has two hidden watches that are revealed by pushing down on certain parts. On one watch, the case is set with 481 brilliant-cut diamonds, 207 baguette-cut diamonds, and an emerald-cut diamond on the top of the case. On the second watch, which has a tourbillion and a 40-hour power reserve, the Polynesian mother-of-pearl dial is set with 162 brilliant-cut diamonds and 11 baguettecut diamonds. The bracelet is set with 350 baguette-cut diamonds. This one-of-a-kind piece has already sold, but Piaget says other double secret watches can be commissioned.

Cartier’s one-of-a-kind phoenix-shaped wristwatch, which makes its debut in April, is made of 18 carat, rhodium-plated white gold. It uses emeralds for the eyes and has one pear-shaped, portrait-cut diamond weighing 3.53 carats. The piece, part of the Merveilles du Nil de Cartier collection, is covered with 3,010 brilliant-cut diamonds totalling 80.13 carats.

Cartier is owned by Richemont.

Price: € 1,931,000

Louis Moinet meteoris In January, Swiss watchmaker Louis Moinet introduced a concept, Meteoris: a set of four tourbillion watches, each made out of other worldly materials, such as meteorite from Mars, the moon, an asteroid, and an ancient meteorite called “Rosetta Stone.”

The company got the materials from meteorite hunter Luc Labenne and worked with universities around the world to authenticate them. Meteoris comes with a planetarium that depicts the solar system and must be purchased as a set.

Price: € 2,313,000 cordeditorial@cma.rs

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technotalk

Price: € 2,313,000

secret watch with phoenix decor

techno

talk Top 10 Most Expensive Diamonds in The World

Diamonds are a GIRL'S BEST Friend The famous song introduced by Carol Channing in the original Broadway production of Gentlemen Prefer Blondes (1949), but the song is perhaps most famously performed by Marilyn Monroe in the 1953 film Gentlemen Prefer Blondes.

Diamonds dazzle and delight - the eternal sparkling symbol of love and eternity!

In selecting a diamond, the rarity, value and beauty is determined by the four factors called the 4C's: Carat Weight, Colour, Clarity and Cut (proportions & finish).

Carat Weight Carat weight refers to the size of the diamond. Based on a standard unit of measure, one carat is divided into 100 points.

The term originated from carob seeds that were used to balance scales in ancient times.

Colour The most desirable diamonds are colourless because the absence of colour enhances the diamond's ability to reflect a rainbow of colour. Diamonds are graded on a scale of D (almost clear white) to N-Z. Clarity Diamonds can contain slight imperfections. Often invisible to the naked eye, these natural birthmarks fall into two categoriesinclusions (internal) and blemishes (external). Fewer inclusions increase the value of the stone.

Cut Cut gives the diamond its brilliance. Of the four C's, it's the only one dependent on a human touch. Using precise mathematical formulas, the cutter transforms a diamond in the rough into a sparkling jewel that reflects and refracts light.

The combination of the 4C's is strictly personal preference. By understanding this information, you can make the best choice.

Realize that carat weight affects the value by about 10-20% per step up or down in size, Carat Weight Colour, Clarity, Cut Color/Clarity by about 1015% per/grade, and cut quality can affect value €€€ by a considerable amount (25-50%), as it is almost completely controlled by the cutter.

No doubt every woman wants to have the best diamond which suits her the most and be the final jewel in her crown when she steps out. Every diamond is rare, but here we have the list of the top 10 most expensive diamonds from all over the world. These diamonds are from different countries like South Africa and India.

So let us take a look at them!

1. kohinoor The value of this diamond is unknown and weighs around 105 carats. This was the largest diamond ever found and is the purest form of diamond in the whole world.

2. the sancy diamond This pale yellow diamond has not yet been valued but weighs around 55.23 carats. This diamond is famous due to the Great Mughal of India.

3. the Cullinan This is worth € 280 million and is the largest rough gem ever found.

This diamond weighs around 3,106.75 carats and is really big!

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4. the hope diamond This is worth €245 million and is 45.52 carats. The diamond is slightly bluish or violet in colour. This diamond is famous for being cursed.

5. de Beers Centenary diamond This is worth €70 million, is 273.85 carats and is the third largest diamond ever produced. This is a D colour diamond - that is highest grade colourless diamond.

6. the steinmetz pink

7. Wittelsbach diamond

This one is worth €17,5 million and weighs 59.60 carats. This has a fancy vivid pink colour. This was introduced in Monaco on May 29th, 2003.

This diamond is worth €11,5 million and is 35.56 carats, blue coloured and VS 2 clarity. This has sixteen facets which are arranged in pairs.

8. the heart of eternity This is worth €11,2 million and is 5.528 grams. This one is a very rare coloured diamond and was found in the Premier Diamond Mine South Africa. This slightly blue coloured diamond is no doubt quite extraordinary.

This diamond is worth €5 million, and is 13.9 carats, that is 2.78 g. This diamond is quite small compared to the other famous diamonds but it is the largest Fancy Red diamond.

technotalk

9. the moussaieff red diamond

10. the allnatt diamond This diamond is worth €2.1 million; its size is 101.29 carats which equals 20.258 grams.

This is a fancy vivid yellow coloured diamond. It was named after the owner, Major Alfred Ernest Allnatt; who was a famous soldier and a sportsman.

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out Tough Nut Wang Tianqing, from Zhangjiakouin in Hebei province, northern China, proved he was a real tough nut after walking around with a bullet lodged in his head for over two decades without even realising.

Doctors only discovered the bullet after Mr Wang - who went in complain-

World’s Widest Mouth Known as the Angolan Jaw of Awe, 20-year-old Francisco Domingo Joaquim has earned the title of “world’s widest mouth”.

To prove there is nothing false about his reputation, Francisco participated in the Italian competition known as “Big Mouth”. Francisco easily won the contest by putting a Coke can in his mouth. Thanks to his rubbery 16.99 cm wide mouth, he also became the man with the world’s largest mouth, according to the Guinness Book of Records.

New Device for Employees For napping at work or if you want to get rid of harassment forever, this “ostrich” offers a micro environment in which to take a warm and comfortable power nap at ease. It is neither a pillow nor a cushion, nor a bed, nor a gar-

World’s Biggest Beagle Dog Bark Park Inn is a bed and breakfast guesthouse in the body of the World’s Biggest Beagle located at Dog Bark Park on Hwy 95 at Cottonwood, Idaho. Guests enter the body of the beagle from a private spacious 2nd story deck. Inside and up another level in the head of the dog are a loft room for additional sleeping accommodations and a cozy reading nook in the dog’s muzzle.

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ing of frequent fits.

The surgeon who at Mr Wang’s local hospital removed the bullet said Mr Wang was millimetres from death. ‘The bullet penetrated his skull and then stopped near his temple,’ said neurosurgeon Wang Zhiming.

The identity of the gunman is still a mystery. Mr Wang was on his way home from work in 1988 when he felt a heavy blow on his head before losing consciousness.

‘I thought my head was hit by a slingshot,’ he told the Press Association.

“French kiss” A Japanese lab has created a device that may let you “French kiss” someone over the Internet.

And by “kiss,” we mean waggle your tongue on a plastic straw, thereby making another plastic straw waggle remotely on someone else’s tongue.

The folks at Tokyo’s Kajimoto Laboratory say it’s just the beginning of what could become a full-on person-to-person experience over the Internet.

The lab, part of The University of Electro-Communications, posted a video in which a researcher demonstrates the “Kiss Transmission Device.” It’s a motorized box that looks a little like a police Breathalyzer. ment, but a bit of each at the same time. Its soothing cave-like interior shelters and isolates our head and hands (mind, senses and body) for a few minutes, without needing to leave the office.

Super Fat Cat The photo taken shows a super fat cat at Xu Jirong’s home in Qingdao, a coastal city in east China’s Shandong Province. Xu said his nine-year-old pet weighs 15 kilograms and that its “waist” measures around 77 centimeters, wider than a girl’s. The cat likes meat but does not eat fish. It eats one steamed bread and half a bowl of chicken heart and some pork every day.

Miss Jail Brazil 2011 is a murderer!

Drunk 911 Call A Bridgeport, Connecticut man learned the hard way after ringing the emergency line three times asking paramedics who responded to his home if they could buy him beer.

Police charged Raymond Roberge, with misuse of the emergency system.

The Connecticut Post reported the man has called 911 with false alarms about 80 times.

A prison in Recife, a city in the state of Pernambuco, Brazil, recently held its inaugural Miss Jail pageant to join a growing global list of contests for beauties behind bars. Miss Jail 2011 is 19-year-old convicted murderer Rebecca Rhaysa Suelen Guedesin.

She said: “It was a real thrill to be cheered by the inmates and the guards. Sadly the dress has to go now and it’s back to prison routine.

Re-use of Energy

explain how the technology would work, that it is tried and trusted, and that the practice is quite common in parts of Europe and especially in Sweden,” said Councillor Carole Gandy, the leader of Redditch Borough Council in central England.

However, local trade union officials are less than impressed with the plan, saying it was a reflection of the massive public spending cuts being implemented by the government.

A local authority in England has given the go ahead for a swimming pool to use energy created by the next-door crematorium to heat its water.

The plan, the first of its kind in Britain, will see waste heat from the incinerator chimney used to warm up the neighbouring leisure centre and its new pool.

Council leader Carole Gandy (left) and “Throughout we have been careful to Councillor Anita Clayton

Which book should every adult read?

In a poll conducted by the Museum, Libraries and Archives Council (MLA), librarians around the UK were asked the question, “Which book should every adult read before they die?”

The first 10 books in the list were the following: • To Kill a Mockingbird by Harper Lee • The Bible • The Lord of the Rings Trilogy by JRR Tolkien • 1984 by George Orwell • A Christmas Carol by Charles Dickens • Jane Eyre by Charlotte Bronte • Pride and Prejudice by Jane Austen • All Quiet on the Western Front by E M Remarque • His Dark Materials Trilogy by Phillip Pullman • Birdsong by Sebastian Faulks

The battle in the real estate sector is really intensifying. With almost all cities growing vertically, skyscrapers are set to adorn the urban landscape in Indian cities too. Mumbai takes the lead with a number of tall buildings in the country.

By 2014, India’s financial capital is likely to have what is being touted as ‘the world’s tallest residential building’: Lodha Developers plans to build ‘the world’s tallest residential tower’ at a cost of €310 milion in central Mumbai.

The 442 metre units will be priced around €1,1 to €7,7 million.

However, World One may become the second tallest residential building in the world if ‘The Pentominium’, a skyscraper under construction in Dubai, is completed by 2013 as per schedule.The residential tower funded by Trident International Holdings will be 516 metres tall.

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The world’s tallest (residential) tower

fashion

power Dressing Politics has not been so fashionable since the iconic Jackie Kennedy. Every fashion choice made by the First Ladies ever since is being and has been scrutinised by the press. Right or wrong?

By Sara BRAJoVIć

U

nquestionably, all the media attention focused on their fashion rather than function is unintentionally diverting atten-

tion away from their duties but it does seem to be having some positive effects.

The media attention appears to be acting as a catalyst, demystifying

Michelle Obama‘s dress sense is experimental and bold. From the brands she likes she chooses to wear to colour, print and style the misconseptions surrounding the fashion industry’s image of being only for the women already involved in the industry or of those in the celebrity spotlight. Hard working women across the world are finding it more accessible and can see that although the First Ladies might have celebrity status of sorts, they are still normal women competeting with the best in the fashion game.

Not merely content to set the trend, the first ladies boost the stocks of fashion companies everytime they get photographed in their clothes. And they are bolder and Michelle Obama - roksanda ilincic 78

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carla Bruni - dior

Carla wisely chooses the fasihion house Christian Dior, the most French fashion brand of all, to create her outfits more innovative than ever. Stylists, consultants, press offices, you name it, whole fasion advice factories are used to communicate their image.

Kate Midddleton ‘s style as well as her demeanour has been consistent from the startshe is very comfortable in her role Michelle Obama‘s dress sense is experimental and bold. From the brands she likes she chooses to wear to colour, print and style.

Interestingly she does not wear the old American masters such as Oscar de la Renta who has dressed many a US First lady. She wears both middle of the range J crew and high end designers, mixing and matching as she goes, making herself unique- no other first lady has done this before. She makes fashion accessible to everyone and this is why she is such a fashion force. All designers want to dress

her and she is an inspiration to women across America. She likes to wear young American or English designers such as Jason Wu, LWrenn Scoot, Thakoon, the occasional McQueen and and of course Serbia’s very own Roksanda Ilincic.

The purple Roksanda Ilincic dress that she wore to meet the British Prime Minister, David Cameron, was

Sheikha Mozah Bint Nasser Al Missned of Qatar is truly a fashion icon. Her sophisticated style is praised by the world’s fashion press for its opulence simply sensational.

Her signature style is bold colours, prints, statement jewellery, cardigans and she’s not afraid to flaunt her toned arms and shoulders. Everytime she wears something, the result is that the item is sold out in stores all over the US in a matter of weeks. A blog by the name of Mrs O www.mrs-o.org has been set up to follow her fashion choices and it’s getting over 10 000

Kate Middleton - Jenny Packham

hits a day! When you cast an eye over Michelle Obama and think of yourself in her outfits you certainly

Sara Brajović

Sheikha Mozah Bint Nasser Al Missned of Qatar - Jean Paul Gaultier

www.sarabrajovic.com is the site which serves as a platform for luxury brands, on-line marketing and sales. Sourcing the best pieces from international designer’s collections, styling, lifestyle advice all written by a woman that is fully immersed in the luxury market. Journalist, fashion PR for luxury fashion brands and with extensive work experience in the UK, model and socialite, educated in Switzerland,the US and the UK. Including exclusive interviews with celebrities and trendsetters who reveal their style secrets, how they decorate their homes and their inspirations. In Partnership with Harrods and Net-a-Porter for online shopping. cordeditorial@cma.rs

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signer Saloni, Erdem, Christopher Kane or Roksanda Ilincic. She is at ease with her style and really enjoys wearing a dress with a print. Samantha really embodies what a modern entrepreneurial English woman would wear.

CarlaBruni’s dress sense portrays Parisian chic. Ballerinas or very

walks and advertisements have in decades. She really is the ambassador of Spanish fashion. The former journalist has embraced her fashion style in her new role as Princess prudently. She started off rather shyly and wore sober suits in neutral colours – her fashion sense was very somber. Since she has started feeling more comfortable with herself in the new role her clothing has started to refelct it. The pressure of the limelight is enormous and everyone is afraid to make a mistake

Queen Rania of Jordan’s very classic style is adapted to her role and country. Her style is very sober and comfortable

Queen Rania of Jordan - Ellie Saab

don’t get the same image as when you did so with Jackie Keneddy.

Another lady that has very accessible style is Samantha Cameron. She is very aware of the current trends, possibly as her sister works as deputy editor at Vogue, but also since Samantha herself is a creative consultant in the luxury industry, working for the British luxury leather good maker Smythons. She is very fashion forward, picking young designers such as the British Indian de80

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small heels paired with tailored dresses or neutral colours. Carla wisely chooses the fashion house Christian Dior, the most French fashion brand of all, to create her outfits. Having worked in the fashion industry as a model, Carla is very much at ease with her impeccable style. She has simply adjusted it to her role as France’s First Lady and carries it perfectly. When someone is really comfortable in themselves it really shines. A fine example of elegance at its best. But then again you could not expect less from a classy top model.

Letizia of Spain wears mostly Spanish designer’s creations. She has done more for Spanish fashion in the past five years than cat-

- but it’s human and Laetizia can be safe in the knowledge that she hasn’t made any.

For her engagement she wore a white Armani suit which was sold out in Spanish stores in a heartbeat. The one first lady that looked better than Carla Bruni which The plum Felipe Varela bandage-dress, whose horizontal lines emphasized her fine figure, was a sensation in the press. In part, and to her credit, because she looked better than the former unbeatable Carla Bruni.

This triggered off a fashion duel in the fashion press. Her signature look became dresses in brighter colors, tighter silhouettes, and the obligatory high heels. This may be due to her husbands height? Or perhaps she feels it does more justice to her figure. Her clothing is still elegant, but it’s more contemporary, even semi-daring for a princess.

When Kate Middleton wore the Issa blue silk jersey for her engage-

Five very influential and powerful women in the public eye. Four modern women, working mothers with many duties and powerful husbands to consider. And then there is their country. Not flawless but feminine, fine and last but not least, powerful

www.cordmagazine.com

Samantha Cameron is very aware of the current trends, possibly as her sister works as deputy editor at Vogue derstated mannernothing too tight or provocative. She also endorses an interesting range of fancy hats and flattering trench coats.

At the benefit dinner ‘ARK’ she wore a stunning Jenny Packham dress usually chosen by A –list celebrities such as Angelina Jolie.

The epitomy of a modern Duchess!

dress her. She chooses everything she wears from Jean Paul Gaultier Couture to Valentino Couture gowns to Chaumet to jewellrey worth millions by Cartier as she does not have a stylist. She always covers her hair and is possibly the owner of the world’s most expensive Couture pieces and jewels. ■

Queen Rania of Jord-an’s very classic style is adapted to her role and country. Her style is very sober and comfortable. Light coloured dresses and skirts, always wearing belts, a Samantha Cameron - Christopher Kane simple colour theme when she’s working at a foundation or on a campaign, ment it was sold out within a few mixing grays, beiges and browns. days. UK based Brazilian designer When she goes to events, she really Daniella Issa was thrilled as her alglams it up with sequins and flowready well established label gained ing fabric. Ellie Saab and Vionnet mass appeal. Kate Midddleton ‘s are her favourite brands. style as well as her demeanour has Sheikha Mozah Bint Nasser Al been consistent from the start- she Missned of Qatar is truly a fashis very comfortable in her role. We ion icon. Her sophisticated style would think that she knew from is praised by the world’s fashion an early age that she would be press for its opulence. It is definitemarrying a prince. Fashion critics ly not going to inspire women to have from the beginning applauddress like her, as all of the items ed her royal style not finding any she wears are Haute Couture, faults. From the very start she had yet, she does remain an inspiraher own style. Tailored dresses tion and every designer wants to that flatter her figure but in an un-

Laetizia of Spain has done more for Spanish fashion in the past five years than catwalks and advertisements have in decades

Letizia of Spain- Felipe Varela cordeditorial@cma.rs

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profile

When the Job pulls you Forward You can learn how to do most jobs if you have the will and desire to perfect your skills and dedicate yourself to the tasks at hand. It is also important to have colleagues that a have team spirit and who actively participate in all project phases

Jelena zečar, Marketing and Public Relations Director at Dunav Insurance Company (Dunav osiguranje)

al communication, organization and personal development through work.

My job in Dunav Osiguranje is very challenging and creates many opporer inclination towards natural sciences and her love of tunities on a daily basis. It also fuels numbers made Jelena Zečar embark on further schoolme with the energy that keeps pulling at the University of Belgrade Faculty of Economics, ing me forward“, Jelena explains. majoring in finance, banking and insurance. Jelena says that In her capacity as a manager, Jelena thinks that it is imporshe has always been drawn to the world of mathematics rathtant that her colleagues know what they want and that they er than social sciences, but, as life would have it, she ended up are willing to learn. in marketing and PR. She managed to learn how to apply her "You can learn how to do most jobs if you have the will and affinity for exact science in the world of communications and desire to perfect your skills and dedicate yourself to the tasks creation of market strategies. at hand. It is also important to have colleagues that have team ˝I am quite lucky to work in Dunav Osiguranje Company spirit and who actively participate in all project phases. I try (www.dunav.com) in a job that encompasses creative, strategic, to be accommodating to my colleagues as much as I can and financial and managerial activities“, Jelena says. Although she I always set some time aside to clear out any misunderstanddoesn’t want to sound like a bookworm, Jelena says that she ings, correct faults and work on improving mutual relations. took her studies very seriously and was very dedicated to the However, I do not like lethargy, lack of interest or desire to admaterial she was studying. vance“ Jelena explains. ˝Because of that attitude, I now have a really good baIn today’s dynamic world, constantly perfecting your skills and sis for further professional improvement. Of course, practice learning is a necessity, while working on professional and personmakes perfect and it is practice that teaches you how to apply al advancement should be uncompromising – Thinks Jelena. the knowledge that you have and how to build on your exper"Analyzing what has been done, planning and devising new tise. I don’t want to say that one is more important than the missions is what pushes me forward. I am grateful to my exother but it would be ideal if we were able to constantly catch ceptional team of associates who share the same pasIn today’s dynamic world, constantly perfecting sion for success with me and I think that that is the your skills and learning is a necessity, most important thing. I consider it a success when you manage to create a work environment that emanates while working on professional and personal optimism, professionalism and good communication. advancement should be uncompromising If you do this, then you will love the excitement which propells you forward“, Jelena says. She says that, both in professional and personal life, she strives to be successful, to up on professional literature, perfect our theoretical knowladvance and to constantly work on her personality. edge and, on the empirical side, gain new experiences by fightIf you want to advance in the marketing and PR world, ing with life’s challenges. It is exciting to watch how an idea Jelena recommends the following book: "Value-Driven Project comes to life and survives on the market“, Jelena says.

Management“ by Harold Kerzner, "Advertising and Promotion: She began gaining practical knowledge during her studAn Integrated Marketing Communications Perspective“ by Belch ies. At the Faculty, she was chosen as a demonstrator, and lat& Belch, "Marketing Management: Knowledge and Skills“ by Peter er worked in many different companies. During her last year & Donnelly,“ Big idea: All you need to know about good promoat the university, she was an intern in a brokerage firm, foltion“ by Slavko Kovačević, "Managing Company Development“ lowed by a cosmetics wholesale company and a large internaby A. Veljović and V. Tomašević, "Public Relations, Strategy and tional company.

Tactics“ by W. Cameron, and "Exploring Corporate Strategy: Text "The biggest benefit that I gained from my previous jobs & Cases“ by Johnson, Scholes and Whittington.

■ were the lessons in establishing good quality interperson-

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