CorD Magazine No.97

Deep and traditional friendship

Speaking when speach is required

Ambassador of the People’s Republic of China to Serbia

theatre director

James Thornley

Senior Partner at KPMG Serbia & Montenegro

Dejan Mijač

octoBER ‘12 / ISSUE No. 97

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H.E. Zhang Wanxue

Auditing demystified

interviews opinions news comments events PRICE 300 RSD

FOKUS

IMF Uncertainty

In February the International Monetary Fund froze the credit arrangement signed with Serbia because the then government planned a 45 billion dinar guarantee for public enterprises in the 2012 budget Paralympic Games 2012

"Get ready to be moved..."

Despite the great success of our athletes at the Paralympic Games this did not open the door to them receiving an invitation to appear on the “balcony of glory” Babken Simonjan Armenian poet, Serbophil, translator and Honorary Armenian Consul to Serbia

Armenian with Serbian Odes

For Babken Simonjan, connecting peoples and cultures is first and foremost a great honour

Aleksandar Vučić

First Deputy Prime Minister and Serbian Defence Minister

Life

Delegation of the German Economy in Serbia

Partner for Prosperity

mission SPECIAL EDITION

2012

Delegation der Deutschen Wirtschaft in Serbien Delegacija nemačke privrede u Srbiji

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COVER

Aleksandar VuÄ?ić, First Deputy Prime Minister and Serbian Defence Minister

Life Mission

contents

Fighting crime and corruption is my life mission. In this fight I don’t differentiate between people who are members of my party and those who are members of other parties. I do my job responsibly and seriously and that’s how I fulfil my duty towards citizens. I understand that there are different points of view and I’ve heard that some people are not satisfied with the work I do, but they should say that to my face and not Page 08 via the media. If that is how things are, then the government need not exist

6

Issues of recognition

48

Vojin Dimitrijević, Professor of international law

8

Deep and traditional friendship

H.E. Zhang Wanxue, Ambassador of the People’s Republic of China to Serbia

18

GLOBAL DIARY

20

Speaking when speach is required

54

FACES & PLACES

60

AR MENIAN WITH SERBIAN ODES

Babken Simonjan Armenian poet, Serbophil, translator and Honorary Consul of the Republic of Serbia to Armenia

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Dejan MijaÄ?, theatre director

26

Family protects – friends help

Aleksandar NikaÄ?ević, Secretary General of the Automobile & MOTORCYCLE Association of Serbia, AMSS

Life Mission

Aleksandar VuÄ?ić, First Deputy Prime Minister and Serbian Defence Minister

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“ Get ready to be moved...�

Paralympic Games 2012

Auditing demystified

James Thornley, Senior Partner at KPMG Serbia & Montenegro

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IMF UNCERTAINTY Fokus

34

Business Dialogue

40

Connect to the future

EDITOR: Saťa Marić s.maric@aim.rs

Wind

ART DIRECTOR: Maja Duťić m.dusic@aim.rs CONTRIBUTORS: Jovana Gligorijević, Rob Dugdale, Mirjana Zec, Radmila Stanković, Boťko Jakťić, Steve MacKenzie Zorica Todorović Mirković, Sonja Ćirić, Vera Didanović PHOTOS: Zoran Petrović TRANSLATION/PROOFREADING: Mark Pullen m.pullen@aim.rs

Biomass

TRANSLATION: SneŞana Bjelotomić PROJECT MANAGERS: Biljana Dević b.devic@aim.rs Nataťa Neťić n.nesic@aim.rs Svetlana Okanović s.okanovic@aim.rs Jelena Bulić j.bulic@aim.rs

Water

GENERAL MANAGER: Ivan NovÄ?ić i.novcic@cma.rs

Comment page 06

Strengthening Asia-Pacific Region

35

October 2012

EXECUTIVE DIRECTOR: RuŞa Ristanović r.ristanovic@aim.rs

APEC 2012 Leaders’ Week, Vladivostok, Russia

Energy efficiency under the patronage of Elektrovojvodina

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www.erstebank.rs

Operating Capital of â‚Ź14 Million Brought to Serbia

Long-term commitment of Imperial Tobacco to the domestic market

Profile page 82

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H avens of health Spas of Serbia

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Techno Talk Emerging tech that’s just bursting onto the scene

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F ashion

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S uccess is a combination of hard work and good luck

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comment

Issues of

recognition Vojin Dimitrijević, Professor of international law

Kosovo is still an autonomous province within the borders of Serbia among those countries that have refused to recognise it, though it has gained relatively substantial recognition from other countries, each of which is led by its own reasons

T

he system of international law is still anarchic. Many note – po-

mas have been sought in another way. There are no longer fully open multilateral international agreements with which all states could be accessed, so there is no organisation that a would-be state can become a member of in that way. Instead, a new condition has started to be applied, which states that the candidate has already become a member of a respected international organisation, usually the United Nations, and that is interpreted as confirming its statehood.

litely – how it is “decentralised”. In contrast to the interior law of

The Republic of Kosovo is, in the eyes of Serbia and those countries that

a state, international law standardises procedures of “sovereign”

have refused to give her recognition, still an autonomous province within

entities, which means that in many fields they retain complete discre-

the borders of Serbia. However, it has gained a relatively large number of

tion and do not obey any kind of higher will. As usual, even this distinc-

recognitions from other countries, each of which is led by its own reasons.

tion is not completely clear. There are states where respect for the provi-

Countries that have recognised Kosovo will refer to it as a state and enter

sions of domestic law are weak – states that became known by the term

into relations with it in the way they relate with sovereign states.

“failed states” – while, on the other hand, some states may undertake

Kosovo will encounter problems similar to those experienced by oth-

to unconditionally implement the decisions of international bodies over

er entities that are not universally recognised, because it will be diffi-

which they don’t have full influence, e.g. in the European Union.

cult or impossible to access those institutions whose members can-

State recognition is an example of decentralised decision-making.

not agree on whether it is in fact a country. Remember that the solu-

Existing states are free to recognise a newly created entity as a state or to

tion to such a dilemma is UN membership. Membership of the UN is

refuse that. However, a state theoretically exists as soon as it fulfils three

decided by a qualified majority in the General Assembly (GA), in which

conditions, namely that there is a ‘sovereign power’ over a ‘particular ter-

all members are present, but that cannot be done without the recom-

ritory’ and ‘people’ who inhabit it. The actual existence of the state for its

mendation of the Security Council (SC), which admittedly has only 15

subjects really does not depend on who recognises it. However, this has

members, but five of them are permanent members and each of them

no practical significance in international relations, precisely because there

can prevent the adoption of decisions, including the aforementioned

is no existing supreme international body to assess whether the mentioned conditions have been met and thereby decide that an entity is a state. This is weighed up by every sovereign state. In addition to that, such decisions are discretionary, which means that they are made without having to be explained and without the control of any higher authority.

Of course, it must then be expected that a decision on the recognition of a state will be political and will mostly be influenced by interests, moods, emotions, but also the prejudices of politi-

Kosovo will encounter problems similar to those experienced by other entities that are not universally recognised, because it will be difficult or impossible to access those institutions whose members cannot agree on whether it is in fact a country

cians and public opinion. Because of the kind of freedom available to states,

recommendations (“veto right”). Kosovo may soon be able to secure

political and legal problems arise, the most striking of which is the fact that

a majority in the GA, composed of countries that recognise it, but cur-

an unrecognised state cannot enter into serious international relations de-

rently it does not appear to have the agreement of all SC permanent

spite having fulfilled the aforementioned theoretical assumptions. Its range

members. Moreover, if for example Russia and China, which do not

of action may be confined to such an extent that it practically does not ex-

recognise Kosovo, were against its membership, Kosovo would not

ist. The best example of this is the so-called Turkish Republic of Northern

even be helped by the eventual recognition of Serbia itself.

Cyprus, which is not recognised by anyone except Turkey.

Serbia and Kosovo could, however, find themselves together in the mem-

Difficulties arise even when such recognition is small, as it is with

bership of other organisations, which would not represent mutual recogni-

Abkhazia, a breakaway Georgian state recognised only by Russia and

tion. Many Arab countries do not recognise Israel even though they are to-

five other states. Since the time of the Cold War, when many states

gether at the UN. Members therefore can participate in the general deci-

felt that the German Democratic Republic was not a country at all

sion-making process, which could possibly be a sign of peaceful regulation

and when, as such, it had many difficulties, escape from such dilem-

of Serbian-Kosovo relations without Serbia having to recognise Kosovo. ■

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interview

■ By Marija Petrović ■ Photo by Zoran PETROVIĆ

Aleksandar Vučić, First Deputy Prime Minister and Serbian Defence Minister

Life mission exclusive

Fighting crime and corruption is my life mission. In this fight I don’t differentiate between people who are members of my party and those who are members of other parties. I do my job responsibly and seriously and that’s how I fulfil my duty towards citizens. I understand that there are different points of view and I’ve heard that some people are not satisfied with the work I do, but they should say that to my face and not via the media.

If that is how things are, then the government need not exist

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ow is this government going to resolve the problem of the sevenpoint list of German demands regarding the agreement between Belgrade and Priština? Does the new government really want to fight crime and corruption to the bitter end? Who is unhappy with the work of Aleksandar Vučić in fighting crime and corruption? Speaking in an interview for CorD magazine, the first Deputy Prime Minister and Serbian Defence Minister responds to these and many other questions, while not hiding his contentment with the fact that a fraction of the Democratic Party failed to form a brand new party in September when they had a chance to do so. Straightforward, to the point and precise, Vučić provides answers to questions about the most painful state issues pertaining to Kosovo at the beginning of the interview.

EU

The EU wants the agreements made by the previous government to be fulfilled and we are going to work on that. Implementing the IBM will be the most difficult thing of all and that is something that even those demanding its implementation are aware of.

Experts

We don’t have enough experts to deal with financial crime. We need to have such staff not only in the administration, but also in the Security and Information Agency (BIA) and the police.

■ When did you first hear of the seven point list of expectations which the representatives of the ruling Christian Democratic Party in Germany brought with them to Belgrade, claiming that the list was not new and that the previous government was well acquainted with it?

- Some of the conditions revealed by the European Union in December are contained within those seven points. Other points are mentioned in the European Union’s official conditions, which Angela Merkel was very open about in the past.

For instance, there is a condition to abolish parallel governing structures in Kosovo or abolish what is considered a parallel governing structure. The only novelty for the Serbian public, which is a condition that needs to be met in order for the European integration process to continue, is an obligation to establish good neighbourly relations with Kosovo.

Media

The freedom of the press will be guaranteed and by that I mean the freedom of expression and speech, which will be complete and without external pressures. I am not going to be engaged in that since ‘ if you get scolded once by hot water you are afraid of cold water too’.

■ So, we should not be worried?

- There is so much more that should concern us that this is just a drop in the ocean and this is by no means a new merit or a new judgment.

■ In your opinion, when is the EU going to give us the date

of the beginning of accession negotiations and what exactly does the EU want Serbia to do in order for the country to meet yet another goal on the road to accession?

- Realistically speaking, we expect to be given the date of the beginning of accession negotiations next year. The EU wants us to fulfil the goals which were presented to the previous government and we are going to head in that direction, since we do live in the same country, after all. Having a new government doesn’t mean that we are a different country now and that we interpret the decisions and signatures of the previous government members differently. Borislav Stefanović initialled the agreement on Integral BorThe Germanies Christian Democratic Union (CDU) and der Management (IBM), which was a result of dialogue between Belgrade Christian Social Union (CSU) are the most powerful and Priština. If we are talking about the European parties and their demands should not be dialogue, that is one of the biggest problems that this government will have to ignored. I am confident that a compromise could be tackle. This problem is far more difficult reached in the case of the ’seventh point’ than any other that we will have to deal with. The IBM is more difficult than the I did see that paper in Germany. That is not an official plan of talks about energy and telecommunications, more difficult than varithe European Union, but it is a plan devised by Angela Merkel’s ous symbolic statements, signals or anything else. We are aware of Christian Democratic Union (CDU) and the Christian Social Un- that, as are those who demand fulfilment. ion (CSU). It is important that nobody in Serbia underestimates their stance, since we are talking about representatives of the ■ If there is one thing that the new government is known most powerful European party, both in terms of membership for it’s a pro-active policy that is keeping pace with current and influence. We need to consider how we are going to pro- events. We are referring to the president’s visit to Russia and ceed. I am confident that there is an opportunity to talk with the U.S., your visit to Germany, a dynamic communication the Germans and others about this point, as well as several with Brussels etc. What results do you expect from these other points, so that not everything is interpreted so literally, high level meetings? which is how the points were presented. We are going to try to - I am sick and tired of the lies and deceit of the previous governresolve this problem through compromise. ment. They agreed on something and then did nothing about it.

They were saying one thing in closed circles and completely dif■ Last month saw celebrations of the end of the so-called su- ferent things in official talks. All of our interlocutors from abroad pervised independence in Kosovo, with many officials present are also sick and tired of it. I was very vocal in Germany about to witness this step forward towards the international recog- us having a lot of difficulty in implementing the IBM, but we all know that we are obliged to do so. nition of the state of Kosovo. What is your view of that?

- I don’t think that is very important either for those who recognised Kosovo’s independence and those who didn’t. I didn’t ■ What lies are you specifically referring to? Where did you notice that many countries in the world now suddenly wanted hear them? to formally recognise Kosovo as a state. The whole thing is - We have all heard the promises that the former government certainly not very pleasant for Serbia, but I don’t think it is an would fulfil everything that had been agreed after the election important or new fact for us. and that they were going to “obliterate” the Serbian Progressive cordeditorial@cma.rs

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Party (SNS). We listened to that for three, four, five years, but when something had to be done nothing happened, so it all boiled down to us having to implement what others have agreed on.

■ Are you talking about the Priština-Belgrade dialogue?

- Yes, I am talking about those talks and many other talks too. The previous government used the change in regime as a truncheon which it used to threatened people like: “If we don’t win the worst of the worst will come to power, so let us do whatever we want to do”. I can give you several names of members of the previous government that Western countries are refusing to talk to because they have been deceived by those people on a daily basis.

■ You still didn’t answer my question. What do you expect from the aforementioned meetings, i.e. what can our citizens expect?

multaneously trying to establish a higher level of trust and build better relations wherever possible.

■ Are you implying that the government doesn’t have special

relations with Russia?

- For us, Russia is a very important country and we want to have as good relations as possible with it, including, for instance, a higher trade exchange. We want the same with China, Japan, African countries, the U.S. too. Still, our direction and our road is the one that leads to Europe.

■ What are bilateral relations between Serbia and the U.S. currently like, especially in light of the U.S. Army recently donating 17 Hummer vehicles to the Serbian Army?

- If we are talking about the Defence Ministry, relations are at a

We have engaged 300 people who are conducting various investigations. This is a whole army of people. Realistically speaking, we need 5,000 people who are going to investigate misuses and criminal activities

very high level and I believe that the American side would agree that the relations are developing in the right direction. In respect to relations between the two countries, we do have some bilateral problems and different stances on Kosovo, but I think that relations are improving.

■ Since the formation of the new government the issue

- We expect to reinstate citizens’ trust so we can openly talk about all of our problems.

■ Does that mean that there is no trust at the moment?

- No it doesn’t. What I am talking about is having a higher level of trust than before.

■ Are we equal partners to the EU and the U.S.?

- We are a small country and a proud nation. This is the country I love the most, but I don’t think we need politicians who think that, globally, we are more important or more powerful than Germany or Russia. We are simply not. On the global level, we are very small and everybody should be aware of that.

■ What direction will the country’s foreign policy take? Are you going to continue along the previous government’s trajectory, insisting on four pillars of foreign policy (European Union, Russia, China and America)?

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- Actually, I don’t know what those pillars mean, as to date I haven’t seen any serious investments. Serbia is en route to the European Union and will cooperate with all countries, while si97 October 2012

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of illegal activities in the privatisation process, public enterprises and the financial sector has been brought up. At what pace will the fight against economic crime and corruption continue?

- The pace will be the same or even faster. The problem is that we found only three case records in the prosecution office. There is no system or mechanism in place that will conduct such activities. We are actually currently working on it very systematically, not only in the country but also through cooperation with many other states which will help us in that fight. We have already talked to Mr Infante from the United Nations and representatives of the U.S. Crime and Corruption Department. We have also talked to the Germans about it. The anti-crime and corruption system is not functioning as it should, which is why we need all the help we can get. The prosecution office, police and relevant departments need to connect with each other and be more professionally managed. Also, the judiciary and prosecution office need to be more independent. Once we accomplish that the situation will be much different than today.

activities pending, so I expect results to come very quickly.

■ Can you confirm that there is a consensus among government members when it comes to a unyielding fight against crime and corruption?

- I hope so.

■ Do you hope or know so?

- I have heard that Milutin Mrkonjić thinks that I am working against the Socialist Party of Serbia (SPS). Obviously, there are opinions which are different to mine. I don’t differentiate between people who are members of my party and those who are members of other parties. I do my job responsibly and seriously and that’s how I fulfil my duty to the citizens. I understand that there are different points of view and I’ve heard that some people are not satisfied with the work I do, but they should say that to my face and not via the media.

If that is how things are, then the government need not exist.

■ Does that mean that you are going to continue fighting

corruption and crime even if that leads to the collapse of the government?

- If need be... But there is more... If somebody from the government is dissatisfied with my work, why should their MPs support me or anybody else?! We can resolve that pretty quickly.

I don’t fear being replaced. What I am doing now is crucial to my career and my life. I don’t want to be remembered as an apparatchik who took five million euros and spent the money euro by euro until the end of his life. I don’t care about that.

My personal property has been the same for the last 15 years.

I have everything I need and I have been in power before. I was also in the opposition and I am not hungry for power.

■ There has been a lot of talk about discord in the government and speculations as to who exactly is the prime minister – you or Ivica Dačić?

- I am not interested in that. I am not the prime minister.

■ Bearing in mind internal and frequent public disagreements in the government, do you think that the governing coalition has enough capacity to tackle not only crime and corruption, but also bureaucracy and the inefficient rule of law, which is something foreign investors have been complaining about for years?

- If I didn’t believe in that, I wouldn’t be doing what I am doing now. While tackling big ‘pests’ and corruption in the country, it is very important to conduct other reforms too, such as cutting back on red tape.

■ Are there many of those ‘pests’ as you call them?

- More than you think.

■ You have mentioned on several occasions that the new gov-

when it comes to fighting crime and corruption?

ernment will carry out ‘de-politicisation’ and that only the most professional people will be appointed to management positions. Are you happy with the results of that process?

- No I’m not. There are many investigations and pre-investigative

- I think that de-politicisation of public companies has been carried

■ Are you saying that we need to exercise a bit more patience

out for the most part. The problem is that many refuse to notice it.

We have two ministers that are not members of any political party.

The state secretary in the Foreign Ministry, Vera Mavrić, and the Foreign Minister are not members of any party. We all agree that he is an exceptional diplomat. We can ask ourselves whether our activities on de-politicisation so far have been ideal?! Well, they haven’t, but the situation is much better now than it was before. I am waiting to hear a complaint about the CEO of the Electric Power Industry of Serbia (EPS), his knowledge and expertise. I saw journalists who were too preoccupied with petty corruption, completely failing to see the large scale corruption in EPS and they wonder why the CEO was replaced. Well, watch closely and you’ll see why he was replaced. We are not in power to allow the Democratic Party and its personnel to continue ruling. I am against the Democratic Party officials remaining in their posts. We fought for change and not status quo. The new

Some people in the Democratic Party had a good chance of capitalising on the nation’s energy in September, but they lacked the courage Nikolić had in 2008 when he did just that director of EPS is a young manager who will try to raise the value of the company to €10 billion.

■ Why? So that the company will find a buyer more quickly?

EPS is not going to be sold, but it is important for its value to grow as much as possible. If the Czech Republic managed to increase the value of its national power company to €45 billion, we can try to do the same. I am not talking about the book value, but rather market value.

■ Is somebody from EPS going to be held accountable for the

Kolubara affair?

- The procedure is pending and we’ll see what will happen when it ends. I think that many issues will be opened at EPS and Kolubara. cordeditorial@cma.rs

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■ Minister Mihajlović is talking about launching investigations and is holding the former environment minister accountable. Does she enjoy your support?

- She does, but just like everybody else she needs to be patient.

We have engaged 300 people who are conducting various investigations. This is an entire army of people. Realistically speaking, we need 5,000 people who are going to investigate misuses and criminal activities. Even that many people are not enough at this moment. It is not easy to uncover all money trails, identify which company transferred the money to which company and in which way etc. All of that takes time. I am definitely going to persevere in

you are afraid of cold water too’. It is not in my job description to deal with the media. I will try to do something in order to step up the investigation into finding the people who killed journalists.

Maybe we can put special teams and commissions together to investigate that. The freedom of the press will be guaranteed and by that I mean the freedom of expression and speech which will be complete and without external pressures.

■ Currently there is no strong and well organised opposition to counterbalance the governing coalition, especially bearing in mind the recent events within the Democratic Party. This limits the advancement of democratic process in Serbia. How do you see the development of democracy in Serbia and who has the strongest opposition potential?

- When I listen to Čedomir Jovanović I can’t help but laugh at his objections. He says that spending is too high, but doesn’t say that he is against reimbursing salaries to railway workers or the 13th pension instalment. I hereby invite him to clearly state what he would do to cut back on spending and how he would do that.

The opposition has always been strong in Serbia. The fact that the Democratic Party (DS) is currently institutionally weak is a whole different issue.

We are yet to see whether that potential lies in DS or another party that will spring from DS. I don’t know who is going to be our strong opponent.

I think that they failed to utilise the chance to form a different political party when they could and I have to say that I am happy that they didn’t.

I saw journalists who were too preoccupied with petty corruption, completely failing to see the large scale corruption at EPS and they wonder why the CEO was replaced. Well, watch closely and you’ll see why he was replaced

■ There are speculations that the governing majority could

change its composition very soon and even you talked about possible early elections if the government failed to consolidate on major issues. Do you think that such a possibility is a real threat?

the fight against corruption and regardless of how certain people will fare, nobody will beat the state.

- I can see that Mrkonjić is unhappy with the work I do, and I presume Dačić too. It is up to them to demonstrate that dissatisfaction.

‘forensic scientists’ to carry that through?

state formula after the elections actually annuls the quintessential nature of local elections?

■ Do you think that Serbia has enough experts and financial

- No, it does not. You are right - that is the biggest flaw in our institutions which need to have such staff not only in the administration, but also in the Security and Information Agency (BIA) and the police. If such people exist, we would love to offer them a job.

■ Apart from overall reforms, you have also announced

significant reforms in the media sector. What are the priorities in that area, bearing in mind that most media are struggling financially?

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■ Could you be more specific?

- I would not like to elaborate on that, but I do know that they had a good chance of capitalising on the nation’s energy in September, but they lacked the courage that Nikolić had in 2008 when he did just that. Now DS will have to deal with internal accusations, while carrying the burden of being the party that was responsible for hopelessness from the last decade or so.

- The terrible Information Act will be abolished, but I am not going to be engaged in that since ‘ if you get scolded once by hot water 97 October 2012

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■ Do you think that changing local authorities along the

- Every authority has been formed along the state formula. Secondly, why don’t you ask Đilas the same question, since he annulled the electoral will of Belgraders four years ago.

■ Do you think that the Belgrade authorities will be modified to resemble the state ones?

- I clearly stated that I did not wish to be a mayor. I really don’t know what will happen. But if you ask me whether there is an order to re-assemble the government in Belgrade, I can tell you that there isn’t. ■

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interview H.E. Zhang Wanxue, Ambassador of the People’s Republic of China to Serbia

Deep and traditional

friendship

China and Serbia are two countries with geographical distances and different national conditions, but that has never impeded the stability and constant development of good bilateral relations

A

deep and traditional friendship exists between China and Serbia and bilateral relations have managed to withstand the test of time and remain intact, as they are based on mutual respect, equality and mutual benefit.

In this issue of CorD we speak to His Excellency Zhang Wanxue, Ambassador of the People’s Republic of China to Serbia ■ The previous government cited China as one of the pillars of

Serbian foreign policy. How dynamic is the cooperation between the two countries now, taking into account the geographic distance, huge economic disproportions and different priorities?

Since 2009, when our two countries established strategic partnership relations, bilateral relations between China and Serbia have gone through rapid development. It has grown into close bilateral contacts 14 |

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at all levels and through various channels. The growth of economic and trade cooperation has been stabilised, as has cooperation on large projects. We are very satisfied with relations with Serbia and have belief in the future development of bilateral relations, because we believe that it is only on the principles of mutual respect, equality and mutual benefit (win-win) that two countries with social disparities can build a friendly relationship and be good partners. Advancing and constantly developing the strategic partnership between China and Serbia is determined by the spirit of the times and adaptation to modern trends.

This not only favours the social development of our countries, but rather also contributes to world peace, development and cooperation.

On the basis of existing good relations, we are ready to further strengthen cooperation with the new government of the Republic of Serbia. Here I mean in the field of economy and trade, infrastructure, culture, education, science and technology, healthcare, energy and other areas. The goal is to transform the potential of our cooperation into concrete results, in order for our strategic partnership to be beneficial to our two peoples.

■ What does China expect of the new government in Serbia when

it comes to regional cooperation and European integration?

- The Chinese government respects the choice of the Serbian people to follow the path of European integration. We congratulate the establishment of the new Government of the Republic of Serbia and respect its domestic and foreign policies, because the Serbian people and government best know their own strategic interests. Serbia is an important country in the Western Balkans and China particularly appreciates the efforts and contributions made ​​by Serbia in promoting

consolidation

Based on good relations, we are ready to exert efforts with the new government of the Republic of Serbia to further strengthen cooperation.

respect

The Chinese government respects the choice of the Serbian people to follow the path of European integration… the Serbian people and government best know their own strategic interests.

good neighbourly friendship and regional cooperation. We sincerely hope that all countries of the region will deepen their comprehensive cooperation and ensure a beautiful future.

■ A little less than a year ago a cooperation agreement was signed

between AP Vojvodina and the Chinese province of Guangdung.

How is their cooperation progressing and have projects been completed?

- In October last year the Governor of Guangdong Province, Mr Huang Huahua, visited Serbia with a delegation. On that occasion he and the President of the Assembly of Vojvodina, Mr Pajtić, signed a “Memorandum on the development of relations of friendly exchange and cooperation between the Chinese province of Guangdong and the Autonomous Province of Vojvodina”.

Both parties agree that they should first strengthen economic, trade and investment cooperation and encourage enterprises from Guangdong to invest in Serbia. At the same time Serbian companies are invited to participate in the Cantonese Fair, China’s high-tech fair ELEXCON, the EXPO, the International Festival of Tourism and Culture in Guangdong and other events.

Agreement was also reached on strengthening contact among local governments, as well as strengthening cultural and sports exchanges and improving overall mutual understanding. Finally, there is also strengthening cooperation in the field of tourism in both directions. This memorandum represents a milestone in our relationship and an opportunity to build a new platform for cooperation. It is about good intentions that now require further efforts for both sides in order to be implemented.

■ China is increasingly characterised by the so-called policy of opening up. What are the main focuses of China’s future development?

- From this year the Chinese government is exerting efforts to continue steady growth, establish price controls, provide a good standard of living for people, maintain the reform process and ensure harmony and stability of overall economic development. We expect GDP growth in the first half of 2102 to be 7.8%, with a 14.4 percent increase in sales of consumer goods. The plan is to maintain the balance of foreign trade and establish even greater economic growth in the balance between domestic and external demand.

On the other hand, China’s economic development is unbalanced.

We have uncoordinated and unsustainable contradictions which put pressure on economic growth. Operational problems arise for SMEs and the export industry is also facing difficulties. There is also the problem of the employment of the population. That’s why the Chinese government will focus its future efforts primarily on endogenous growth. This means that we will continue to adhere to the strategic economic directions of accelerated transformation of economic growth and that building long-term mechanisms to expand domestic demand and promote economic growth will rely on consumption, investment and export coordination.

awareness

We are aware of the fact that China has a huge population, weak economic foundations and uneven development, which means it is still classified as a developing country.

In second place are efforts to promote inclusive growth. We will advocate for combining economic development with improving people’s living standards in order to solve problems directly related to the population and to improve the people’s social welfare.

Thirdly, we work hard to promote innovation as a driver of further development. With this we will ensure the realisation of the strategy of development for science and education, and special

Only on the principles of mutual respect, equality and mutual benefit (win-win) can two countries with social disparities build a friendly relationship and be good partners support for talent and innovators. Science and technology should be given a key role in future economic development and maintaining the economic structure of the country.

In terms of international cooperation, we will insist on arrangements that will ensure mutually beneficial and win-win projects.

China will follow the basic national strategy of opening up to the outside world, with the implementing of more active opening up, with even more of our initiatives, as well as further improving the models of regional cooperation.

We will support the use of foreign capital and our investment abroad, expand new fields and areas for processes of further opening up, expanding and deepening the converging points that are in the interest of all parties, improve institutional mechanisms in order to adapt to the demands of development and the process of opening up the economy as a whole. We will speed up the opening of the new free trade zone, strengthening economic ties with major trading partners and deepening pragmatic cooperation with other countries, emerging markets and developing countries. cordeditorial@cma.rs

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■ The expansion of the Chinese economy and the model on which it functions are gaining ever more supporters in Europe.

Do you think that such a model is implementable in Europe, given the large historical, cultural and political differences?

This year China’s economy is undergoing major changes. Our economy is the second largest in the world, but we are aware of the fact that China has a huge population, weak economic foundations and uneven development, which means it is still classified as a developing country. We chose our development strategy in which the main task of economic growth is also the development of social progress. Simultaneously we must maintain development orientated towards people’s standards and comprehensive and sustainable development, with respect to social equity and justice, in order to maintain social harmony and equality. Finally, we must protect the democratic rights of the people and further improve the motivation and creativity of our people.

and Eastern Europe, as well as representatives of diplomatic missions in China. With this a network of cooperation between China and the countries of Central and Eastern Europe began to function officially.

The mentioned 12 measures also include “a special line of credit of $10 billion.” This also prompted special attention in the countries of Central and Eastern Europe and among Chinese enterprises, as it facilitated the signing of a cooperation agreement in the fields of infrastructure, high technology, the green economy and other key areas where the Chinese loans are utilised. During the inauguration of the Secretariat, coordinators and representatives of the countries of Central and Eastern Europe presented their own ideas and measures for enhancing cooperation and strengthening bilateral cooperation with China. That’s how Serbia’s coordinator, Minister of Education and Technological Development, Mr Obradović, submitted to the Chinese side a list of initiatives and cooperation projects with Serbia. I hope that the relevant ministries

We hope that the competent Serbian ministries strive to create an open and transparent legal environment, a market of fair competition, as well as a stable and peaceful business environment in order to create favourable conditions for Chinese investments and their operations in Serbia

and enterprises on both sides have already addressed implementation studies, promotion and realisation of this project.

■ Despite many years of good relations, it seems that Serbia is

We believe that development doesn’t known only one model, the same all over the world. Every country has to go through development that meets its social circumstances. We respect the choice of each country and every nation and believe that different countries and their different development paths should serve for learning from each other.

■ The intensification of bilateral cooperation between Serbia and China was announced in April this year. What is envisaged in the plan and are there concrete steps?

- During Chinese Premier Wen Jiabao’s meeting with the leaders of 16 countries from Central and Eastern Europe in Warsaw in April, the two sides reached broad consensus on enhancing cooperation between China and Central and Eastern European countries. Premier Wen Jiabao has proposed 12 measures to promote cooperation in various fields, as well as facilitating funds to assist and support cooperation between China and Central and Eastern European countries.

In the context of the implementation of these measures, a forum was held in Beijing on 6th September at which the Secretariat for cooperation between China and the countries of Central and Eastern Europe was established, with national coordinators and agencies who will coordinate the work of these countries with China. The meeting was attended by representatives of the Secretariat of the Chinese side and the coordinators and representatives from 16 countries of Central 16 |

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not a target of Chinese investors. It this to do with a bad climate for investors or Serbia not representing a big enough market for serious investors from China; do you think that the stabilising of relations in the region would contribute to increasing the interest of Chinese investors?

- Serbia is an important country in Southeast Europe that has a good geographic location and quality workforce. With the accelerated process of Serbia’s integration into the EU and economic growth, the need to build infrastructure and reconstruct industry is strengthening. In order to free itself from the impact of international financial circles and the debt crisis, Serbia is actively committed to expanding export abroad, attracting foreign investment and economic development.

China, as the largest country in development in the world, in the construction of roads, bridges, power plants and other infrastructure - has both technological and financial strength and rich experience. At the same time, China is accelerating the transformation of its economic development model, implementing a strategy of diversification of foreign trade markets and the “exit” of companies to foreign markets. That’s why the key points of the agreement between our two countries over natural and economic cooperation is constantly expanding and the desire to develop complementary cooperation is constantly getting stronger, bearing in mind that bilateral cooperation has great potential and broad prospects. That’s why we have plenty of reasons to believe

that the efforts of both countries will ensure our cooperation will continue to expand to our mutual benefit.

■ When the Chinese loan was approved for the reconstruction of the Kostolac thermoelectric plant it was announced that Chinese companies were also interested in the Nikola Tesla plant.

Does that interest still exist?

- The Kostolac reconstruction project is the first project in the field of energy cooperation between our two countries and plays an important role as a demonstration of the deepening economic and trade cooperation and enriching the content of the strategic partnership between China and Serbia. In December last year representatives of the Chinese Export-Import Bank signed an agreement on funding the project with representatives of the Serbian government and in February 2012 the Serbian parliament approved the agreement. Currently the Chinese and Serbian sides are working full steam on preparations for the implementation of this project.

■ Is it true that the Serbian language is studied in China?

- The Serbian language was introduced at the Beijing University of Foreign Languages in the ‘80s. Today some of the graduates have become ambassadors of friendly exchanges between the Chinese and Serbian peoples, while some went into diplomacy and work at the front line of Chinese-Serbian diplomatic relations.

■ Many thousands of Chinese citizens live and work in Serbia.

How do they feel in Serbia and which problems do they encounter most frequently?

- At present about 6,000 Chinese nationals work, study and are engaged in business here. They live in harmony with the Serbian people, contribute to the promotion of mutual understanding and friendship, but also create new economic and social foundations of friendly relations. We believe that the business of Chinese entre-

■ Chinese companies are interested in building the biggest in-

frastructure and strategic projects in Serbia, including transport corridors, among others. What is the current status of negotiations with the Serbian government regarding these projects?

- In recent years, with the deepening and development of the global economy, as well as the comprehensive growth of the Chinese economy, Chinese companies have emerged on the international market and participated in various economic cooperation projects. These projects fully comply with the rules of the market economy and are based on the principles of equality, mutual benefit and common development.

They are based on regular commercial cooperation, which is not only important for the local economy, increasing employment and improving people’s living standards, but also functions as a positive contribution to improving the world’s sustainable economic development and common progress of mankind. The Chinese government encourages and supports the appearance of our reputable companies on foreign markets and, thus, their arrival in Serbia.

■ With the Minister of Education you have signed a Memoran-

dum of Understanding which stipulates that the Chinese language is to be taught in 31 primary and secondary schools in Serbia. How is this project progressing and was it a problem to find teaching staff?

- The start of studying the Chinese language in primary and secondary schools in Serbia represents the concrete result of cooperation between China and Serbia in the field of education, which is of great significance and has far-reaching impact. By learning the Chinese language Serbian pupils can become more familiar with China’s 5,000year-old history and great culture, but also our contemporary society.

The China National Office for Teaching Chinese as a Foreign Language (Hanban/Confucius Institute Headquarters) has sent 14 Chinese language teachers to eight Serbian municipalities, covering 31 primary and secondary schools in 95 different classes, with 2,387 pupils. My Reports say that teaching of the Chinese language has been met with a good and positive reception by pupils, teachers and parents, but also with Chinese teachers. I hope and believe that Chinese language courses in Serbia will run for a long time.

We believe that the business of Chinese entrepreneurs in Serbia is an important part of the economic and trade activities between China and Serbia preneurs in Serbia is an important part of the economic and trade activities between China and Serbia and hope that their legitimate interests and rights are effectively protected. We hope that the competent Serbian ministries strive to create an open and transparent legal environment, a market of fair competition, as well as a stable and orderly business environment in order to create favourable conditions for Chinese investments and their operations in Serbia.

■ It was announced that a large Chinese culture centre will be built in Belgrade. When will this project be completed?

- In July 2010 the National People’s Congress Chairman Wu Bangguo visited Serbia and on that occasion signed a memorandum on the mutual opening of cultural centres. This is a good step in the interests of future generations which creates conditions for better understanding between the two peoples, stronger cultural exchanges and overall bilateral relations between the two countries. The Chinese side is currently in preparation for the construction of the Chinese Culture Centre in Belgrade and we are trying to finish the project before the deadline. ■ cordeditorial@cma.rs

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global diary

France’s Wealthiest Man Sues Newspaper

Europe I

Europe II

“In 1980, Europe was 34 per cent of the world economy. This year it will be only 22 per cent and by 2020 it will be about 15 per cent - with the largest economy, Germany dropping from fourth largest in the world in 2011 to seventh largest in 2020.” - Douglas McWilliams, Centre for Economics and Business Research chief executive

“We need a social Europe adapted to our modern EU economy; we need to move to a genuine European labour market; we need to reinforce the systems that were invented in Europe and that represent the European social way.”

- José Manuel Barroso, EU Commission President

The Tunnel of Love

France’s richest man, Bernard Arnault, is suing newspaper Libération for public insult after its front-page headline last month ordered him to “Get Lost you Rich Idiot”. The left-wing daily was objecting to his decision to seek Belgian nationality.

The decision by the 63-year-old head of the Louis Vuitton, Moët and Hennessy (LVMH) luxury goods empire to seek Belgian citizenship, has been seen by some as a first step to his future financial exile from France.

It is an accusation Arnault has strongly denied.

Agri-Cube Produce 10,000 Vegetables a Day Japanese homebuilding firm Daiwa House Industry has developed the AgriCube, a unit that fits inside a standard parking space and can produce around 30 vegetables a day

In recent times, Springwise has come across a number of startups aiming to aid urban crop growth with innovative hydroponic solutions, from the NASAinspired Green Wheel indoor rotary garden to Efficient City

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Klevan is a little village of rural Ukraine, 25km northwest of the city of Rivne. Apart from a couple of churches and a tower and several buildings in ruins, the small agricultural settlement has incredibly little to see or visit To the north of the village, there is a private railway, that serves a fibreboard factory. Trains only pass three times per day to deliver wood. Part of the track -a three-kilometer section of it- has vegetation that has almost completely enclosed it. Were it not for the train passing, plants would have probably already reclaimed the tracks. The result is the most unique of places, one that seems taken from a fairy tale or a Tim Burton film. Young couples come here to make a wish. It is known as the Tunnel of Love, and people believe that if they are sincere their love will come true.

Farming’s rooftop aquaponic farm. Now Japanese homebuilding firm Daiwa House Industry has developed the Agri-Cube, a unit that fits inside a standard parking space and can produce 10,000 vegetables a year.

The Agri-Cube utilises variable fluorescent lighting, temperature control and a fertilizer circulation and drainage system to give urban farmers flexibility with their crops, which grow on stacked shelves inside the unit. Trials have shown best results with leafy vegetables such as lettuce and other salad greens, although a total of 23 varieties have been sustained using the system, including small root vegetables like radishes and turnips.

Lettuce heads can be grown within 42 days and the creators claim that the Agri-Cube has a yield of 10,000 heads per year. It is expected that the device could be used by city restaurants, hotels and grocers.

www.cordmagazine.com

Amazeballs! 86 New Words in Dictionary

www.collinsdictionary.com. which was launched last Collins said opening the normally closed process would make the way the language was recorded more democratic.

The term “mummy porn” was coined when the novel ‘Fifty Shades of Grey’, by British author EL James, shot to popularity this year.

‘Blootered’, an adjective commonly used in Scotland to describe someone who is drunk, was added, along with ‘Facebook’, ‘cyber bullying’ and ‘floordrobe’, which is defined as “a pile of clothes left on the floor of a room”.

Tanya Clarke from Nottingham, submitted the successful entry ‘amazeballs’, which is a slang word for giving approval to something. The entries will now be considered for the dictionary’s print edition.

Obama Hug Van Duzer, who owns the Big Apple Pizza and Pasta Restaurant in Fort Pierce, Florida was so happy Obama visited his establishment that he embraced the president and the photo of Van Duzer and Obama went viral.

More than 80 words and terms including ‘blootered’, ‘amazeballs’ and ‘mummy porn’ have been added to Collins online dictionary Publisher Collins said it was “blown away” by the thousands of entries it received for its online resource, after inviting all Englishspeaking members of the public

to become “word-spotters” and suggest new and emerging words for inclusion. A total of 86 were chosen and can now be seen at

Prince William Would Like to Have Two Children Britain’s Prince William and his wife Catherine, the Duchess of Cambridge, speak to student Tan Si Xue who gave them one of his paintings following a performance at Rainbow Centre, a school for disabled children, in Singapore September 12, 2012. Britain’s

down we’ve ever had’. His comments came in his first interview since the botched IPO in May. Facebook’s stock has lost half its value after one of the most anticipated stock offerings in history.

According to the report, Zuckerberg talked up the company last month, saying, ‘one of the main things misunderstood right now is how fundamentally good it is’.

Zuckerberg, 28, controls more than half of the voting stock in Facebook.

Eating Porridge Led to More Scots

Prince William and Catherine are in the city-state for a three-day visit that started on Tuesday as part of a tour to mark Queen Elizabeth II’s Diamond Jubilee.

Prince William says he wants to have two children with his wife, Kate. The British royal has spoken often in the past about wanting to start a family but had not given specific numbers.

Porridge is not only Scottish national dish, but also the meal that helped make Scotland by triggering a population explosion, according to new research.

Scotlands DNA, a project de-

signed to analyse the genetic background of Scots, discovered there was a huge rise in the population in around 3,000BC. According to A Genetic Journey, the reason ancient Scots women were able to give birth to more children was the discovery of porridge.

YouTube offers new iPhone In hunter-gatherer societies the rate of population growth was low because mothers suckled their children for as long as five years until their teeth were strong enough to consume the diet of meat and roots, fruits and fungi harvested.

During the period in which wom-

Google’s New Eyewear Technology

Zuckerberg ‘Disappointed’ by Stock Slump

Since then Floridians are boycotting his restaurant and Van Duzer’s store has even received negative reviews on Yelp, the restaurant review site, with a flood of one-star ratings and comments ranging from sarcastic to angry and “People are saying a lot of bad things and boycotting my restaurant,” Van Duzer said. “There’s no middle line anymore, and that’s exactly what’s wrong with our country right now.”

Facebook Chief Executive Mark Zuckerberg has admitted that the sharp sell off in the company’s shares since its IPO has been ‘disappointing Speaking at the San Francisco Disrupt conference, Zuckerberg said that the pressure over the stock offering is ‘not like the first up and

en were breastfeeding their children they were often infertile.

However, when farming techniques arrived in Scotland in around 3000BC, cereals were grown and were then mashed into a nourishing porridge which did not need to be chewed and so could be easily fed to infants.

This, in turn, allowed women to stop breastfeeding a lot sooner.

Google co-founder Sergey Brin with designer Diane Von Furstenberg

Project Glass, smart eyewear technology was the first time that any project has made a public appearance at a non-Google event . On the September 10 the Project Glass finally took to the catwalk at an event that kicked off New York Fashion Week It was opening unveiled a hi-tech collaboration between Google co-founder Sergey Brin and designer Diane Von Furstenberg. The idea behind Project Glass is to pair the owner’s glasses with their smartphone, so that they can access and view information directly through the spectacles.

Beyond just showing off the glasses to the public, the models at the catwalk show also used the technology to shoot footage for a behind-the-scenes video of the Furstenberg event that will be featured on Google’s YouTube channel.

It is anticipated that the technology will debut on the open market sometime in 2014.

YouTube is being reprogrammed for the iPhone and iPad amid the latest fallout from the growing hostility between Apple and the video service’s owner, Google The new format debuted in September with the release of a new YouTube application that will introduce more advertising and more videos on Apple’s trendsetting devices.

The changes are being made because Google Inc. and Apple Inc. didn’t renew a five-year licensing agreement that established YouTube as one of the built-in applications in the operating system that runs the iPhone and iPad. The new YouTube application will create more moneymaking opportunities for Google and video producers because it allows advertising to be shown with the clips.

That’s something Apple hasn’t allowed on the pre-installed YouTube app. The ban on ads prevented many music videos and other widely watched clips from being shown in the iOS applications because some copyright owners don’t allow their content to be shown if there is no way for them to be paid.

cordeditorial@cma.rs

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interview

■By Radmila Stanković ■ photo by ZORAN PETROVIĆ

Dejan Mijač, theatre director

Speaking when speach is required He stays away from big words, but everything he has done gives us the right to say that Dejan Mijač (78) is the greatest Serbian director. He has earned this title not only because he has won eight Sterija Awards, the most renowned theatre award, but also because he is the recipient of many other significant recognitions.

His contribution to Yugoslav and Serbian theatre is precious because he’s worked relentlessly for the past five decades

M

ijač is one of those intellectuals who speaks up when speaking up is required. He is aware that he cannot influence power by words only, but power has never stopped him from standing up to it. His plays have been staged all over the former Yugoslavia. He gave the biggest contribution to the Yugoslav Drama Theatre, but never directed a play at the Belgrade National Theatre.

He says that he has principles and if he is not able to “realise them” he “gives up the work”.

Mijač’s line of thought can differ from that of a typical theatre director.

He is a humorous cynic who is also not afraid to talk about politics. He is not fond of the Obrenović family, yet his favourite historical figure is Miloš Obrenović. Mijač says that this Serbian ruler (Author’s note: Obrenović 20 |

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ruled Serbia autocratically from 1815 to 1838 and from 1858 to 1860.

During that reign Serbia became an autonomous principality within the Ottoman Empire.) thoroughly understood his time.

“He knew his enemies perfectly. He was able to stand his ground and make other people see through his eyes. This is a person who did a lot for Serbia in terrible times. It was Miloš Obrenović who instigated and paved the way for Serbia’s independence and emancipation. He had a clear vision of what needed to be done and what had to be achieved, which he did, little by little, bit by bit. The illiterate Miloš knew all too well who was a shady character, who was the most important and who called the shots. If you don’t know that, than you have a problem. And the people in power today obviously don’t know that.”

Mijač has no respect for the other Serbian dynasty – the Karađorđević family. He only thinks highly of Prince Pavle while, in his words, other family members were megalomaniac and had no sense of the country’s perspective. “They didn’t have a vision. All of their ideas were wrong and pushed us into wars and conflicts.”

This calm man was among the first to see just how dangerous Slobodan Milošević’s regime would be, saying that Milošević would make our lives difficult and stand in the way of an opportunity for positive development. “The millionaires in this country made their first million during Milošević’s time. And today it is these millionaires who are refusing to go away.”

The latest recognition he received was the Sretenje Medal, which was given to him by then President Boris Tadić at the beginning of this year. Mijač says that the medal was a nice ending to his career.

government

Every single government that I can think of, and I do remember many of them, forgot about culture all together.

politician

If you ask any politician today why they think we need culture they will say that they don’t know.

“I see this recognition as the farewell to an era when theatre was completely different. This recognition also means that the values of the past are still respected by today’s generations. I was really touched by that.”

In October 2011, just when he finished directing Chekhov’s Cherry Orchard at the Yugoslav Drama Theatre, Mijač bid farewell to his work. However, he still remains curious and thoughtful.

■ What is it like not to work?

- It is a natural state for pensioners. I spend my time doing all sorts of fun things. I travel outside Belgrade, read, watch TV, surf the Internet... You have numerous possibilities for wasting time. I am trying to get used to having no obligations whatsoever and not having to be somewhere at a precise time.

culture

I think the concept of turning culture into the entertainment industry is very wrong and something that is incurable.

mentioned. Every single government that I can think of, and I do remember many of them, forgot about culture all together, with the exception of a 20-year period from 1950 to 1970. Back then the government chose people from its ranks who had open minds and were very tolerant. For instance, I was never a member of the Communist Party, but I cannot complain about the way the government treated me. They never stopped me from doing anything. I did my work, was happy with myself and used the opportunities that pre-

■ But you could have still worked as a director....

- Well, I didn’t decide just like that not to work anymore. I wasn’t offended in a way that made me stop working. Simply put, I had no strength to work at full capacity any longer. And I did not want to

I think Andrić, Crnjanski and Kiš will live on after my time. For the life of me I don’t know who the Serbian prime minister or chairman of the Belgrade City Committee were at that time fall into a routine of trying to remind myself of what I used to do.

sented themselves to me. We had politically correct relations and it was a decent co-existence.

■ If Biljana Srbljanović wrote a new play would that make you

■ That was the case until you directed the play Golubnjača in

work again?

1982, which was considered a political scandal. After nine performances at Novi Sad’s Serbian National Theatre the authorities banned the play, which was written by Jovan Radulović. You have never commented on this. What do you think of it now?

- My collaboration with Biljana was always somewhat odd. Biljana is a member of a very young generation and she could even be my daughter.

I don’t see why she should write for me and why I should be her director of choice. Generationally speaking, she belongs to a totally different time. Of course, I said that I was done with directing and I mean it.

■ Are you still writing and taking note of things so that you can leave us with a written record of your experiences?

- My life is not particularly edifying or attractive. I don’t know who I am supposed to write for. When I was a theatre director I always had a target group in mind. I did something for someone. So, I guess a writer is writing and leaving a written trail for someone. I don’t think that I have great potential or that I have to leave something behind. I also can’t contribute as a director when I see the junk that is being sold at bookstores.

■ Experts say that Francois Holland beat Sarkozy because he spoke a lot about education and culture in his election campaign, which won him many votes. How do you explain the fact that culture has been absent from Serbian election campaigns?

- I am not surprised at all and did not expect culture to even be

- That was a stupid set-up which was a testament to the fact that the regime was slowly deteriorating. They used the growing wave of nationalism and started to bicker among themselves who was the bigger nationalist. They used Golubnjača against me. Thinking back, all I can say is that whoever goes against artists will fail.

That’s an unavoidable historical certainty. I did not comment on what happened to me because, unlike them, I persevered. Why would I put a time limit on my work? Who do they think they are?!

If you expelled them from the party they would be nothing.

■ But culture was put on the back burner after the year 2000.

- With the arrival of the capitalist principle, which says that profit is everything, all non-profit activities, particularly culture, science, education and even healthcare, were put in a category of ‘spending but not earning money’. And they were severely hit. If you ask any politician why we need culture they will say that they don’t know.

Back in my time I had these dark thoughts, but I never presumed cordeditorial@cma.rs

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that I would predict something this bad. I used to say that if every museum in Belgrade closed nobody would notice.

■ And that’s exactly what happened. The National Museum and the Museum of Modern Art have been closed for years and nobody knows when they are going to be refurbished. The people responsible for that behave as if that is normal.

- From time to time somebody from the culture sector cries for help, but that has no significance whatsoever. It seems that Serbia can do without museums. Of course, it can also do without a Ministry of Culture, just like Slovenia, where the ministry merged with another one.

If we are talking about France, Germany and Italy, these are countries that have a cultural heritage. The Italians have two culture ministries.

One is engaged in contemporary production and the other takes care of cultural heritage. However, huge money is made from cultural heritage and this is a profitable economic branch.

■ What do you think about the lack of understanding for culture demonstrated by the Democratic Party?

- I expected the Democratic Party to do much more in other areas that were very important for our everyday lives. If we are talking about culture I didn’t have great expectations, but I also did not expect culture to be as neglected and minimised as it is today. They have always said that they didn’t have enough money. Let’s think back to how much money they wasted on other things which could have been spent on culture and how much damage they caused in other areas. I think that the concept of turning culture into the entertainment industry is very wrong. Thankfully certain talented artists, like top athletes, can relocate abroad where they will be adequately compensated for their services. Look at the success of Marina Abramović. What would she have done if she’d stayed here?

And who cares here what she does in the world?!

■ There are other examples too.

- Yes, of course there are. In that respect I don’t worry much about individual people. I worry about what is considered fundamental. I worry, above all, for education. When I see that 60% of the government’s members graduated from Megatrend University I get very worried. How can you expect somebody who has ideas and skills to graduate from Megatrend? You simply can’t. The same thing goes for my branch too. I have never seen a good actor or a good director who graduated from any faculty other than the Faculty of Dramatic Arts, with all due respect to other schools.

Once there was a politician who asked something from me. It was Zoran Đinđić when he was the prime minister

■ Unlike in Serbia...

- Yes, but you can’t force people who are here for a limited time to understand eternity. They have to comprehend that something is left behind and that is cultural property and not them.

I think Andrić, Crnjanski and Kiš will live on after my time.

For the life of me I don’t know who the Serbian prime minister or chairman of the Belgrade City Committee were at that time. These temporary people cannot understand things that are eternal. Whoever has a project that endures will help culture. And whichever politician uses three verbs to boss people around, and in our country governing is associated with three verbs – lie, steal and run – he knows nothing about culture.

Such people usually appoint some minor personalities to deal with culture. They need people with a vision who are capable and obliged to do something.

■ Expectations were high regarding culture after the political up-

heaval of 2000. Unfortunately, the situation deteriorated and less budget money was allocated to culture. Today that amount is less than 1% of the state budget. Many followers of the Democratic Party are very disappointed with that. You were close to that party.

- Not as close as people thought.

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pect him to build a maternity hospital at least.

■ In Russia, on the other hand, the government forced and even blackmailed their tycoons to spend money on culture.

- Well, that is a well known principle back from the time of Roosevelt and the New Deal, which was actually an agreement made with the black economy, i.e. big capital engaged in criminal activities. There was a price this capital had to pay to become legal. In Serbia nobody has enough strength or sound mind to make serious changes. Everything is temporary and politicians in power are working on surviving at least one term.

■ With all due respect to what you are doing and saying, some people have called you the Patriarch. Could you comment on that?

- There was this unnatural reputation that followed me. I was thought to be the shadow ruler masterminding theatre policy in Belgrade which, if you look at it, would not be such a great honour even if it were true. As it turns out, this reputation was not true and I was not interested in it at all. A lot has been said about me.

Some people said that I was astounded by the imagination of other people since I had very little and it would take me a long time to do what they did. I have always stuck to one principle – saying what is on my mind. If somebody provokes me I say what is on my mind. I was also very outspoken about what bothered me, although in my younger days I would prefer to keep my mouth shut.

■ Others did not keep their mouth shut.

- During that time people saw me as an industry standard, as well as a target and even an obstacle. I really don’t know why. They thought that if I left they would be free to do what they wanted. Some even claimed that I occupied the Yugoslav Drama Theatre and was preventing young people from working. They counted that in the last 20 years I directed 17 plays at the Yugoslav Drama Theatre.

■ That comes to less than one play a year.

- Of course, and during that time over 120 premieres were staged.

I couldn’t care less who did them, but I knew that the authors of those plays were sometimes even people I did not get along with or share aesthetic or other criteria with. Nobody was prevented from working because I wanted that. The fact of the matter is that I had continuity. Some would last for a season or several seasons and then they would disappear. I was probably in somebody’s way because I was constantly present, because I did not disappear. Now I am definitely gone and they probably couldn’t be happier.

■ You have never argued with your co-workers and other artists.

- No, of course I haven’t. I didn’t even try to refute what was thought about me or convince people otherwise. I also did not want to prove others wrong, because I couldn’t care less. I know what I know. I know how things are and my conscience is clear.

■ Has it ever happened to you that a politician asked you for an opinion about a cultural matter, i.e. that they asked something from you?

- Once there was a politician who asked something from me. It was Zoran

■ That’s where we have an advantage over others. Our Faculty of Dramatic Arts (FDU) has survived, while the famous FAMU in Prague, from which Kusturica, Paskaljević, Zafranović, Marković and many others graduated, has closed down.

- That happened when FAMU was forced to operate in line with market rules. The same thing happened in Slovenia. We should not be surprised by that. That’s what happens with small nations who are doing what they are asked to do in everything even when it comes to destroying one’s cultural identity. If we in Serbia, where people celebrate by waving flags and singing on patron saints’ days, think that Guča and EXIT are our cultural identity, then we are very wrong. After all, as the followers of Karl Marx said, culture is the superstructure and economy is the base. And this base provides money for great endowments and great monuments of culture. The Guggenheim Museum was built by a very wealthy man. Rich people in Serbia, like Ilija Kolarac and others, did the same in their time.

■ What is the situation like today?

- Today in Serbia you have a very rich man who donated a clock to Belgrade! A clock on Republic Square. And he even made sure to include a plaque which says that his company gave the clock to Belgrade. That is all that he gave to Belgrade. Just think how much money he earned in Belgrade. We can only speculate. I would ex-

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Đinđić when he was the prime minister. He invited me to chair the Radio Television Serbia (RTS) Managing Board. I didn’t know why he chose me, but I did accept. He explained to me that the TV station was falling apart, which was true, that he needed me there; that he had a lot of problems and wanted a person who was independent and would not succumb to political pressure. He probably thought that I would not succumb to corruption, which wasn’t present at all. I tried to do my job and lasted for three months. That wasn’t a job for me. I have never wanted to be a drama or theatre director. I avoided it like the plague. And then I found myself in a situation where I had to deal with a million problems and things which were borderline criminal. Many people could have ended up in prison, but only Milanović actually served time and we weren’t the ones that sued him. Somebody else did that and somebody else was the judge. There were a lot of things that he wasn’t even held accountable for. In a very short period of time I found out how RTS functioned, what actually went on there, and I wasn’t too pleased about it. I was looking forward to the day of my departure. My TV engagement ended and I never had any contact with government people after that.

■ So, that wasn’t your cup of tea?

- No it wasn’t. I tried to tell Zoran that on several occasions, but he always told me that he was glad I was holding to my principles and that that was politically stiff and useless. He understood that my proposals and suggestions would be very rigid and unacceptable to them, since they were playing a completely different game that wasn’t the game I played. They were actually political games that as, you said, were not my cup of tea.

I expected the Democratic Party to do much more in other areas. If we are talking about culture I didn’t have great expectations, but I also did not expect culture to be as neglected and minimised as it is today

■ Do you dread reading newspapers today? Many fear what will happen tomorrow, whether pensions will be reimbursed on time or at all.

- I know quite a few people who fear that, since everybody knows that pensioners will be hit first, just like in Milošević’s time. It is the same reasoning. Kids are being schooled along the same principles. Same noise, same messages, same mindset. They can sugar-coat it now, since they expect money from the West, but they won’t go all the way. And we all know what they think and they won’t be able to hide it for much longer.

I had a connection in the Ministry and a woman there informed me when the money for reimbursement of national pensions was on its way to the treasury. It was my job to forward the information.

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■ To your friends who were also the recipients of national pensions?

- Yes. To the ‘elite’ that is counting the days until they get those 50,000 dinars, this ‘lofty elite’ that will ‘squander’ the money. A famous actress called me yesterday to ask me whether I knew when the pension was going to be paid, since she had some bills to pay. I told her I didn’t know but, if I could guess, it would probably be never. Living off the ‘ordinary’ pension has become very hair-raising and unpleasant. With those 50,000 dinars life is a little bit easier.

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■ Do you see anything good around, on TV or in newspapers?

- No I don’t. Nothing. We can see that it will be even worse. Now we are going to experience that. I fear the days when shop shelves will be empty and cafe bars closed. I used to go to the bank and see bank tellers doing crosswords instead of working. I would ask them if there was any money and they would shake their heads confirming there wasn’t. I was on good terms with certain bank clerks who would call me when the bank had money and I would run to get it. When I arrived at the bank the queue was so long because apparently everybody had somebody in the bank who called them when the money arrived. Foreigners did not believe me when I said that I had money in the bank and that the bank had absolutely no money when I wanted to withdraw it. This government is ready for such a thing. The spokesperson of a governing party and prime minister today knows how to justify any situation. Now they are claiming that the international community is pressuring them into signing something about Kosovo. From what I know, I can tell you that they will sign it when they find a way of explaining to the people that it wasn’t THEM that signed but THOSE who were in power before them.

■ What do you think of the way the EU treats Serbia and the EU’s behaviour towards our country?

- I see our players as a group of pitiful people who have no justification for their behaviour. The fact that we care about our roots and the historical foundation of our statehood is a luxury for such a pitiful nation. The international community has very serious and lucrative reasons for the way they behave. We are talking about practical interests that cannot be stopped. I don’t look at the EU, the United Nations, human rights and democracy through rose-tinted glasses.

Allow me to finish off this interview with a joke I heard recently.

After a service in a mosque somebody asks the imam what democracy and human rights are. He responds: “Democracy is doing what you please. For instance, I can climb up to the mosque roof and piss all over you. And human rights is all of you climbing even higher and pissing on me.” ■

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Makenzijeva 67, 11000 Belgrade, Serbia Tel: +381 11 2450 508; Fax: +381 11 2450 122 office@auction-see.com; www.auction-see.com cordeditorial@cma.rs

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interview James Thornley, Senior Partner at KPMG Serbia & Montenegro

Auditing demystified

O

n numerous occasions, with more or less understanding, there has also been talk of the role of auditing houses in the process of revision operations. In an effort to clarify the role of auditors, we addressed KPMG director James Thornley to clarify and define the extent to which auditing houses, considering that they have no attributes of state bodies, can influence the credibility of its reports in a situation where the management of the company subjected to auditing wants to conceal information.

■ Many people operating within business and commercial life

may assume they are aware of the basic concepts underpinning an independent auditors’ opinion. This, as with many things, is quite often probably the case, as long as matters stay simple.

In more complex situations, however, it is often not a straightforward matter. What is your experience in that respect?

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- Firstly, I think it is important to understand some principal fea97 October 2012

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During the last few months the government has launched a number of cases in the economy that have become the subject of investigatory bodies. Special attention has been paid to losses in public enterprises, failed privatisations and shortcomings in the privatisation process

tures of the independent auditor’s opinion. Auditors, throughout most of the world, including Serbia, conduct their audits in accordance with International Standards on Auditing (ISAs).

These are issued by the International Federation of Accountants (IFAC) and require that auditors comply with substantial technical and ethical requirements. The aim is to perform the audit such so as to obtain and provide independent and reasonable assurance as to whether the financial statements, subject to audit, are free from material misstatement.

In accordance with ISA, the objectives of the auditor are: to form an opinion on the financial statements based on an evaluation of the conclusions drawn from the audit evidence obtained; and to express clearly that opinion through a written report that also describes the basis for that opinion.

It is important to understand that two important principles underpin this expressed opinion: Sampling and Materiality and Reasonable Assurance. In terms of sampling and materiality, the auditor’s view is not formed on a 100% test of all accounting records and transactions. To the extent that audit testing was to cover 100% of all items, this would raise significant questions as to the practicability, as well as cost and benefits of the audit.

Consequently, the audit opinions are formed on the basis of sample tests of detailed transactions and on checks on internal systems and controls designed to support an opinion within the context of materiality. The determination of audit materiality is prescribed by ISA and is usually based on either total assets, revenues or profitability. When it comes to reasonable assurance, the view expressed by the audit is ultimately intended, consistent with materiality, to provide reasonable but not absolute assurance. In very simple terms this means a reasonable person may rely on the opinion for reasonable purposes.

■ What type of opinion can the auditor issue in accordance with ISA?

- The auditor’s opinion, which is the key element of the wid-

er auditors’ report, may take the following forms: an unmodified opinion, a qualified or modified opinion, an adverse opinion and a disclaimer of opinion.

■ In what circumstances does the auditor express an unmodified opinion?

- The auditor expresses an unmodified opinion when the auditor concludes that the picture provided by the financial statements subject to audit is fairly presented (or complies with) the financial reporting framework (or rules) under which the financial statements have been prepared.

■ Does it mean that all other aforementioned types of opinions are modified and what does “modified” actually mean?

- Yes, all other aforementioned types of opinion, qualified, adverse and disclaimed, are modified due to certain reasons.

In general, the opinion is modified if the auditor concludes that, based on the audit evidence obtained, the financial statements as a whole are not free from material misstatement, or the auditor is unable to obtain sufficient appropriate audit evidence to conclude that the financial statements as a whole are free from material misstatement.

■ Could you please explain in what circumstances the auditor expresses each type of the modified audit opinion?

- The auditor expresses a qualified opinion when: (a) the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are material, but not pervasive, to the financial statements; or (b) the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, usually as a result of a limitation in scope, but the auditor

The auditor’s responsibility is to obtain sufficient appropriate audit evidence about the appropriateness of management’s use of the going concern assumption in the preparation of the financial statements

concludes that the possible effects on the financial statements of undetected misstatements, if any, could be material but not pervasive.

In simple terms, this means that the financial statements present a view which is reasonable but errors or omissions exist, or scope limitations have occurred, which the auditor believes, are material enough to be brought to the attention of the users of the financial statements.

Such opinions are in rare within mature capital market environments but more common in developing markets.

The auditor expresses an adverse opinion when, having obtained sufficient appropriate audit evidence, the auditor concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.

This means that errors or emissions within the financial statements are such that the financial statements cannot be viewed as providing a reasonable view, even with specific matters being identified by the auditor. Such opinions are relatively uncommon.

The auditor disclaims an opinion when unable to obtain sufficient

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appropriate audit evidence on which to base an opinion and the auditor thus concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive.

The auditor also disclaims an opinion when, in extremely rare circumstances, the auditor concludes that, notwithstanding having obtained sufficient appropriate audit evidence regarding each of the individual uncertainties, it is not possible to form an

opinion on the financial statements due to the potential interaction of the uncertainties and their possible cumulative effect on the financial statements.

In the context of misstatements, the term pervasive is used to describe the effects on the financial statements of misstatements or the possible effects on the financial statements of misstatements that are undetected due to an inability to obtain sufficient appropriate audit evidence.

Such opinions are very rare and in substance indicate that, despite undertaking audit procedures, the auditor has been unable to form a view on whether the financial statements present fairly the financial position of the entity subject to audit or not.

â– We live in times of severe economic and financial crises throughout the world, resulting in increasing number of corporate bankruptcy and liquidations of companies. How does this impact on auditors and their reports? What is the responsibility of auditors in that respect?

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- One of the key areas where modifications, of whatever type, are often required is with respect to the going concern issue.

In general, financial statements are prepared on a going concern basis, meaning that a business is assumed to remain in existence for the foreseeable future, usually regarded as at least 12 months from the balance sheet date, unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so as a result of external factors – creditors or regulators.

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When the use of the going concern assumption is appropriate, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business. Management’s assessment of the entity’s ability to continue as a going concern involves making a judgment, at a particular point in time, about inherently uncertain future outcomes of events or conditions.

The auditor’s responsibility is to obtain sufficient appropriate audit evidence about the appropriateness of management’s

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The auditor’s opinion, which is the key element of the wider auditors’ report, may take the following forms: an unmodified opinion, a qualified or modified opinion, an adverse opinion and a disclaimer of opinion

use of the going concern assumption in the preparation of the financial statements and to conclude whether there is a material uncertainty about the entity’s ability to continue as a going concern. A material uncertainty exists when the magnitude of its potential impact and likelihood of occurrence is such that, in the auditor’s judgment, appropriate disclosure of the nature and implications of the uncertainty is necessary.

Within the context of the framework described above, the auditor modifies its opinion: (a) if adequate disclosure of the existence of a material uncertainty is not made in the financial statements, the auditor expresses a qualified opinion or an adverse opinion (as appropriate and depending upon the auditor’s assessment of the significance and likelihood possible future events arising from current circumstances, (b) if adequate disclosure of the existence of a material uncertainty is made in the financial statements, but the auditor is unable to obtain sufficient appropriate audit evidence, the auditor expresses a qualified or in very rare cases where the interaction of the circumstances and potential of their impact is of such magnitude as to undermine the whole basis for their preparation, a disclaimer of opinion, or (c) if the financial statements have been prepared on a going concern basis but, in the auditor’s judgment, based upon the evidence, management’s use of the going concern assumption in the financial statements is inappropriate the auditor expresses an adverse opinion. â–

Illustrative table: modified audit opinions Nature of matter giving rise to modified opinion

Auditors’ judgment about the effects or possible effects of identified issues on the financial statements

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Material but not pervasive

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focus

Fiscal consolidation required

IMF

UNCERTAINTY

In February the International Monetary Fund froze the credit arrangement signed with Serbia because the then government planned a 45 billion dinar guarantee for public enterprises in the 2012 budget, instead of the agreed 30 billion dinars. Meanwhile, the budget deficit has increased from the planned 4.25 per cent of GDP to seven per cent of GDP (€2billion), while public debt has grown to 55 per cent of GDP (€15.3 billion), despite a legally defined limit of 45 per cent of GDP. It is clear that the existing arrangement will not be unfrozen, but the executive government is not hiding its expectations that a new deal will be struck with the IMF prior to adoption of the 2013 budget.

What must and should the executive government do in order for the IMF to sign a new arrangement with Serbia and how realistic is it that policymakers will fulfil the IMF’s requirements by the end of the year?

IMF among the Serbs again Dr.Ljubomir Madžar, Economist

W

henever the arrival of an IMF delegation is announced here in Serbia the pulse accelerates and the temperature rises noticeably. In this fever arrives the visual expression of our anxieties and, in particular, prejudices. The most common and strongest expression is fear that it will (again!) come with some sort of dictate and will impose some preposterous solution on us. And professionals forget – not to mention the uninformed – that the IMF regularly comes to countries with destructive economic policies with which they have led themselves to the brink of collapse. Serbia is no exception in this and the latest talks with the IMF will lead to a situation where hardly anything could be labelled as encouraging, while there is no room in this comment to list all the discouraging and unfavourable characteristics. Let’s mention only the proverbial lasting and deep macroeconomic imbalances - deficits in foreign trade balances, the disintegration of foreign exchange reserves, the alarming and contradictory to all criteria of the budget deficit and rapidly increasing public debt in relation to gross domestic product.

The economy is clearly losing momentum, budget revenues are wearing thin, expenditures persistently grow, down to the last thread, we don’t even know how we’re going to pay public sector

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wages in the coming months, pensions, outstanding state obligations to contractors and suppliers in the private sector... Instead of maintaining financial discipline, the state has been dragged down by the most destructive source of liquidity ... Economic Policies are burning under their feet, while officials were running in different directions, seeking loans even where we know it is difficult to obtain them and that they are uncomfortable expensive.

The IMF is not here because it needs us, but because we urgently need its help. Its expert support is invaluable; it often provides loans when we are massively avoided by others and the conditions under which it grants those loans are incomparably more favourable than loans that could be offered elsewhere; and when you can make a deal with the IMF it opens the door to other potential creditors. That all means improving the perception of

The IMF is not here because it needs us, but because we urgently need its help. Its expert support is invaluable...when you can make a deal with the IMF it opens the door to other potential creditors the country with the international financial public, which makes loans cheaper and collaboration more cost-effective in the truest sense of the word. We should accept the IMF unreservedly, coupled with efforts to finally realise that it has done ​​a lot of good and in return only received unfounded suspicion garnished with proverbial ingratitude. It could be said that the government will have to act precisely in that way, because the alternatives to what the IMF could offer are much less favourable. ■

country’s foreign currency liquidity. However, funds that can be provided from these sources are well below the required level for financing the state and maintaining the country’s external liquidity, and thus an agreement with the IMF is necessary. ■

Fulfilling conditions

Milojko Arsić, Professor of Economics, University in Belgrade

I

assess it as unlikely that a new arrangement will be agreed with the IMF by the end of the year, but it is possible that negotiations will start on the conclusion of a new arrangement. The basic precondition for the start of negotiations is that the government adopts a programme of fiscal consolidation, which will result in a relatively rapid reduction of the fiscal deficit and halting the growth of Serbia’s public debt. The revised budget for 2012 and the proposed budget for 2013, as well as related tax and other laws, show the extent to which the government is prepared to move from declarative commitments to specific measures.

If the revised budget for this and next year’s budget are in line with IMF demands, then I assess that the most important condition for the signing of a new agreement during the first

I think the government will be prepared to meet the IMF’s demands, because a new agreement is a necessary condition to avoid a public debt crisis and a balance of payments crisis half of next year will be fulfilled. In addition to fiscal consolidation, the IMF is likely to ask the government to provide detailed explanations of changes and amendments to the Law on the National Bank of Serbia, as well as the reasons for stealing the independence of the NBS (central bank) through the enforced resignation of the governor. It is not out of the question that the IMF will seek certain amendments to the law on the NBS, as a condition for signing the new agreement.

I also expect that the IMF will insist more rigorously than to date on the implementation of structural reforms in Serbia, starting from public sector reforms (pension system, rationalisation of the schools network, changing the method of funding health, redundancies of surplus workers in the public sector), to the reform of companies that are under state control.

I think the government will be prepared to meet the IMF’s demands, because a new agreement is a necessary condition to avoid a public debt crisis and a balance of payments crisis. Of course, in that process the Serbian government will not be a passive participant that merely receives demands, but I assess that room for manoeuvring in negotiations will now be very limited.

Representatives of the current government have probably already convinced themselves that bilateral arrangements with other countries can only serve to temporarily, and to a limited extent, overcome the problems facing public finances and the

Nikola Fabris, Professor of Economics, University in Belgrade

W

hen it comes to the old arrangement it is certain that conditions will not be fulfilled and that it will be finalised as unsuccessful. As for a new arrangement, it could realistically relate to 2013. A new arrangement between Serbia and the IMF would be very significant, bearing in mind that because of low credibility the financial markets are closed for Serbia or loans are offered under unfavourable conditions.

Given that further borrowing will also be necessary in 2013, an arrangement could bring at least two advantages: cheaper funding (although it should be noted that the IMF provides a limited amount of budget support) and increased credibility of Serbia on international financial markets.

I expect that the IMF will accept the new arrangement and new structural objectives (requirements) that must be met. A sustainable fiscal policy will certainly be a key condition. The IMF is aware of the situation Serbia finds itself in and certainly will not request that all “necessary cuts” be implemented in a single year, but rather that public finances gradually be brought to a sustainable level.

The key issue will be the level of budget deficit, as well as public debt trends. I expect the IMF to accept the budget deficit of about 4% in 2013 and approximately 3% for 2014. Of course, it will be necessary to also reach agreement on credible fiscal policies that would allow for this. That will certainly require a VAT hike, as well

The IMF is aware of the situation Serbia finds itself in and certainly will not request that all “necessary cuts” be implemented as expenditure cuts on more or less all positions. Other important issues will relate to structural reforms (labour market), strengthening the competitiveness of the economy, as well as insisting on an independent monetary policy of the NBS. Our experience has clearly demonstrated that it is much easier to agree on an arrangement than it is to later fulfil it. Fulfilling the conditions will be a test of the seriousness of the government and it would be extremely dangerous for Serbia to have two consecutive arrangements with the IMF completed unsuccessfully. As such, it is also of great importance that during the negotiations, which certainly will not be easy, only goals that can be realistically fulfilled are accepted. ■ cordeditorial@cma.rs

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focus

Never greater mutual distrust Prof. Mlađen Kovačević, Full member of the Academy of Economic Sciences

D

ue to the very modest exports that are even decreasing this year, a lack of foreign direct investment, the decrease remittances, and especially due to the fact that in the first seven months of this year the country’s total foreign exchange outflow was as much as €2.5 billion higher than total foreign exchange earnings – the government will be forced to beg, or more accurately beg, the IMF to conclude a new stand-by agreement through which it would provide a many new loans as possible. Negotiators from the IMF are certainly aware that the current minister of economy and finance is the previous minister of finance who used very problematic motives in late 2006 to force a decision to terminate the so-called Agreement on the extension of funding from the IMF and for Serbia’s remaining debt to that institution (about U.S.$1.1 billion) to be repaid early, which was done in late 2006 and early 2007, under the explanation was that the interest rate on those loans was too high.

Of course, it will be clear to the future IMF negotiating team that most members of the current Serbian government comprise ministers from the previous government with which cooperation was terminated due to dissatisfaction with its work and behaviour when it comes to the implementation of the agreed economic policy, which a priori from the start, and before any eventual negotiations on a new arrangement with the Fund’s negotia-

Because of the extremely heavy foreign exchange crisis in Serbia and the IMF’s insistence on privatisation, it is highly probable that the IMF negotiators will insist on the sale of Telekom Srbija, the Belgrade Airport and Energoprojekt land to foreign entitie tors, creates distrust. Prime Minister Dačić did not accidentally announce that the IMF is not a desirable creditor for Serbia, because he knows very well that getting such a loan means fulfilling a number of conditions, or rather dictates. Fund representatives have already made it clear that they are unhappy with the draft revised budget for this year and if it is nevertheless adopted by the Assembly the possibilities of starting negotiations on a new arrangement this year are more theoretical than practical.

Bearing in mind that since the beginning of the century there has never been less trust between the IMF and Serbia, it is my opinion that it is highly unlikely such an agreement will be concluded this year, and if it is concluded next year the conditions will not be any more favourable and the Fund will impose many conditions on the conducting of 32 |

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economic and fiscal policy. If the government proves incapable, as the previous one was, that would even be a lesser evil. Because of the extremely heavy foreign exchange crisis in Serbia and the unchanged stance of the IMF’s expert services when it comes to insisting on privatisation, it is highly probable that the IMF negotiators will insist on the sale of Telekom Srbija, the Belgrade Airport and Energoprojekt land to foreign entities. The Government of Serbia, except in extreme cases, could not accept this because the transferring of these enterprises and the most important resources to foreign entities is a priori very problematic, especially under the conditions of a very serious global economic crisis, particularly the crisis in the EU, while the potential sale would be made at very low, unacceptable prices, and after any eventual sale Serbia would more and more gain the characteristics of a modern colony.

And finally, as I have pointed out countless times in the past, new borrowing from the IMF and spending these funds for the defence of the still overvalued dinar it is not economically rational, and is in fact immoral, because otherwise the huge external debt only increases and is transferred to future generation. However, if this government also adheres to Đinđić’s motto that “anyone who is stuck on morals has no business in politics - let them go to church” it will borrow wherever it can, including from the IMF. ■

that it received in the past decade has not been used for development incentives. Serbia did not learn an important lesson then.

Serbian society must come to terms with the depth of the crisis and its causes and make a shift from populism towards the implementation of reforms. We need the IMF as it seeks to reduce the consumption of every country in the framework of disposable income and, secondly, because the cost of borrowing from the IMF is considerably lower than those to which Serbia is now indebted. In

We need the IMF as it seeks to reduce the consumption of every country in the framework of disposable income and, secondly, because the cost of borrowing from the IMF is considerably lower than those to which Serbia is now indebted this process of unfreezing the IMF will require the setting of consumption at a lower level, but that is something we should have done ourselves, because this should be in our interests.

So, in this case the IMF will force us to do what we should have done ourselves a long time ago. That will not be a popular measure, but if our political elite want to ensure a prosperous future and the reduction of unemployment that is the only thing that can follow.■

From populism towards reform

S

Deep reforms required

Prof. Nebojša Savić, Economics professor at FEFA

erbia did not respond in a timely and valid manner to the emergence and development of the crisis. In the grouping of these two circumstances – the unreformed system and the global crisis – the Serbian economy fell into a recession and experienced a sharp rise in unemployment, one of the biggest in Europe.

With problems piling up, delaying necessary reforms and led by populist policies, the leaders and elite of Serbia chose to put off the process of dealing with the problems, instead transferring them to future generations, our children. Without its own resources to finance development, Serbia is forced to become indebted.

Why does Serbia need the IMF? A country that has enough of its own resources and knowledge doesn’t have to not enter into a credit arrangement with the IMF. Its own funds can secure current liquidity. Serbia, unfortunately, spends more than it earns and so must seek external sources of funding. New borrowing is not dangerous if it is developmental borrowing to increase income and employment. But if you are borrowing to meet budgetary expenditures in current spending (increasing public sector salaries and pensions), as Serbia has done, then you’re in trouble because that borrowing has no developmental perspective.

Serbia has already done that, and the written off part of the debt

T

al expenses, increasing the deficit. Part of the measures aim to solve the consequences of the problem, rather than its root causes. For example, thirteenth pension instalments as a single measure will not solve the problem of the poor position of pensioners who deserve for the reform of the pension system to be dealt with seriously.

The executive needs to continue improving the business climate very seriously and in a coordinated manner, starting by reducing the number of quasi-fiscal levies. This involves reducing the regulatory burden, labour market reforms, improving the regulatory framework for finance companies etc. At the same time, it is more than necessary to reform the judiciary, the delay of which affects every element of doing business in Serbia, from the creation of an insecure business environment all the way up to the level of interest rates.

It is unrealistic for economic policymakers to meet the IMF’s requirements by year end, but the IMF is also aware of that. A good part of the reforms are not feasible in the short term, while the consequences of potential rapid decisions can be catastrophic.

What Serbia is expected to show that it knows what the goal is by

It is unrealistic for economic policymakers to meet the IMF’s requirements by year end, but the IMF is also aware of that... A serious turnaround is required in relation to the policies of the previous years seriously considers and setting the reform steps toward them.

A serious turnaround is required in relation to the policies of the previous years. Not because of the IMF, but rather for the citizens of Serbia. ■

Ana Jolović, Economist of the Centre for free markets

he idea of “painting the house because we have guests” in and of itself shows the lack of a goal Serbia is moving towards. A country that needs the IMF in order to bring control to its economic and institutional fundamentals, bring sustainability to the budget and take minimal efforts to trace the direction of its development, shows disharmony with the society in general regarding the further direction and development priorities. Accordingly, society, and consequently every government to date, has accepted the IMF as an imposed necessity.

With the signing of a new arrangement with the IMF the executive government must consider more long term. That is a chance to finally begin substantive reforms in Serbia, those that have been put off since the beginning of transition. The reforms that the government must and should carry out in order to sign a new agreement, but also for the revival of the economy, envisages parallel work on several tracks for the sake of stopping the further growth of the budget deficit.

Despite mostly being set in the right direction, the first measures of the government lack completeness. With an absence of serious reform of public expenditures, there is also the introduction of additioncordeditorial@cma.rs

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97 October | 33

feature APEC 2012 Leaders’ Week, Vladivostok, Russia

Strengthening Asia-Pacific Region The informal economic leaders’ meeting of the Asia-Pacific Economic Cooperation (APEC) wrapped up 9th September, with the leaders signalling the way ahead on regional development

october 2012 business leader’s meeting point

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uring the APEC 2012 Leaders’ Week, economic leaders and representatives actively exchanged views on four major issues, including trade and investment liberalization, regional economic integration, strengthening food security and establishing reliable supply chains, as well as cooperation to foster innovative growth.

Russian President Vladimir Putin told the meeting’s concluding news briefing the gathering had achieved all the goals set for it and the business community had received the necessary signal. “We believe that the tasks set by the summit in Vladivostok have been fully achieved... We managed not only to preserve the continuity of APEC activities, but to set new horizons and most importantly give a positive signal to business circles,” Putin said.

After intensive discussions, the leaders issued a joint declaration, outlining pathways to strengthen the Asia-Pacific region’s prosperity and leadership in the global economy. Against the backdrop of a global economy facing a number of challenges, the leaders said they welcomed European lead-

opment of green growth in a bid to seek practical, trade-enhancing solutions to global environmental challenges. In particular, the APEC economies endorsed an APEC List of Environmental Goods containing 54 items, whose tariffs would be reduced to 5 percent or less by the end of 2015. On food security, the leaders demonstrated their commitment by agreeing to increase sustainable agricultural production and productivity, develop food markets, enhance food security, improve access to food for vulnerable groups and raise farmers’ welfare. Highlighting the importance of establish-

APEC welcomed EU leaders’ commitment to taking all necessary measures to safeguard the eurozone’s integrity and stability ers’ commitment to taking all necessary measures to safeguard the eurozone’s integrity and stability.

They also reaffirmed their commitment to strengthening a multilateral trading system, vowing to push forward the Doha Round of global trade talks. Amid rising risks of protectionism and continuing uncertainties in the global economy, the leaders pledged to refrain until the end of 2015 from raising new barriers to trade and investment, and to not impose new export restrictions or implement WTO-inconsistent measures in all areas.

With regard to regional integration, the leaders recognized the Free Trade Area of the AsiaPacific (FTAAP) as a major instrument to further APEC’s regional economic integration agenda.

The leaders also reached consensus on the devel34 |

97 October 2012

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ing reliable supply chains, the leaders reaffirmed their commitment to achieving a 10-percent improvement in supply-chain performance by 2015 in the Asia-Pacific region. The proposed performance improvement included reductions in time, cost and uncertainty of moving goods and services through the entire region. On innovative issues, the leaders agreed to jointly foster innovative growth, which, in turn, would facilitate sustainable development of the region as a whole.

They agreed to take important steps to facilitate development of effective, non-discriminatory and market-driven innovation policies, innovation cooperation and innovation networking. APEC has already upgraded its Industrial

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Science and Technology Working Group into a Policy Partnership on Science, Technology and Innovation (PPSTI), to bring into full play such actors as governments, businesses and academia from the Asia-Pacific region.

The leaders also pointed out the importance small, medium and micro-sized enterprises (SMMEs) had in innovation-driven growth.

SMMEs are “a significant driver of development and innovation in the Asia-Pacific region that will improve the quality of economic integration and competitiveness of our economies,” the joint statement says. Chinese President Hu Jintao attended the leaders’ meetings and exchanged views on regional development. Hu told the meeting China would take the hosting of the APEC Economic Leaders’ Meeting in 2014 as an opportunity to deepen cooperation with other APEC members and make fresh and even greater contributions to the development, prosperity and people’s well-being in the Asia-Pacific and beyond. During his stay in Russia, Hu also delivered a keynote speech on infrastructure for sustainable growth at the CEO summit of APEC. The next APEC gathering will be held in Bali, Indonesia, in 2013.

China, the Philippines and Peru will host APEC in 2014, 2015 and 2016, respectively.

APEC, a premier economic forum in the AsiaPacific region, was established in 1989. It has grown to encompass 21 members spanning four continents, and accounts for about 40 percent of the world’s population, 57 percent of its GDP, and 48 percent of world trade. ■

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Energy efficiency under the patronage of Elektrovojvodina

Connect to the future

Page 44

Long-term commitment of Imperial Tobacco to the domestic market

Operating Capital of €140 Million Brought to Serbia

Page 48

Aleksandar Nikačević,

CEO of the Automobile Association of Serbia, AMSS

Family protects – friends help

local news

Business Dialogue 01

Piraeus Bank

Policy

Vision

“The Serbian people had enough of conflicts, wars and victims, now there is a need for a rational policy which will honor legitimate interests of all nations in the Balkans.” - Ivica Dačić, Serbian Prime minister

"An empty chair in the EU awaits you. Turn the vision into reality as soon as possible." - Miroslav Lajcak, EU Special Representative and Slovakia's Deputy Prime Minister

02 mERCEDES bENZ

Piraeus Leasing and Piraeus Rent Merked 5th

Mercedes-Benz CLS Shooting Brake: Surprisingly different

Piraeus Leasing and Piraeus Rent recently marked the 5th anniversary of their successful operations on the Serbian market

In a year full of challenges to the operations of leasing companies, Piraeus Leasing’s recent capital increase through Piraeus Bank Belgrade clearly shows its commitment to further operations and investment expansion in Serbia.

During an anniversary celebration attended by close associates and business partners, one could have observed the emphasis placed

by Piraeus Leasing and Piraeus Rent on continuing the improvement of corporate social responsibility and supporting the development of cultural, sports and environmental protection in our country.

According to the Chairman of Piraeus Leasing ExBo, Mr Konstantinos Tsiolis, the forthcoming period brings new challenges which will lead to new responses from these companies that will strengthen their position as a reliable and strong partner for both existing and future clients.

The five years of the successful operations of Piraeus Leasing and Piraeus Rent in Serbia was also congratulated by Mr Neoclis Neocleus, Chairman of Piraeus Bank Belgrade ExBo, whose branch network facilitates these companies’ operations in Serbia.

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Victoria Group

New Soy Protein Facility With the new facility, into which €30 million has been invested, a total annual capacity of 250,000 tonnes of soybean has been enabled.

Early September saw company Victoria Group officially launch operations at its new Sojaprotein factory in Bečej, which has a capacity of 70,000 tonnes and thus provides a total annual processing capacity of 250,000 tonnes of soybeans. The value of the investment amounts to €30 million. The products of the recently opened facility have their broadest application in the food industry, but also in the pharmaceutical industry – given the high percentage of protein it contains. Thanks to this investment in the new plant, exports will grow from 50 per cent to almost 80 percent of the

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The new CLS Shooting Brake sees Mercedes-Benz making its mark once again with a creative design concept that underscores its leading role in the design field: while unmistakably coupé in its proportions, the new CLS opens up a wealth of new possibilities with five doors and a roof extending back all the way to the rear end. As such, the new Shooting Brake represents an innovative development of the four-door coupé concept, which was successfully introduced with the first CLS in 2004 and has since provided the template for numerous copycat designs. The result is automotive independence at its most beguiling.

Surprising yet unequivocally coupé, the CLS Shooting Brake's proportions create a crouched posture, as if the vehicle were poised to make a leap: long bonnet, narrow window profile with frameless side windows, roof sloping dynamically towards the rear and continuing to the

04

production of Sojaprotein, which is based solely on genetically unmodified soybeans.

“The plant opened today by the Victoria Group is part of our company’s investment plan for the 2012-2013 period, which equates to a total value exceeding €100 million,” said Zoran Mitrović, CEO at Victoria Group. In addition to numerous provincial officials, the opening of the new facility was also attended by Serbian President Tomislav Nikolić

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tail end of the vehicle. It is only when taking a second look that it becomes clear that the Shooting Brake actually has five doors and offers more in terms of function.

In essence it represents an unprecedented version of a sports car with five seats and a large tailgate. It is a special proposition for people who are looking to differentiate themselves from the mainstream, and do not wish to compromise on either sportiness or stowage space when it comes to travelling in style. The Shooting Brake is a further highlight in the innovative luxury vehicle series from Mercedes-Benz and, like the CLS Coupé, has the potential to become the role model for a new market segment.

“The CLS Shooting Brake is based on the great tradition of stylish sportiness which has always characterised Mercedes and takes these unique icons an exciting step further", explains Gorden Wagener, Head of Design at Mercedes-Benz Cars. “It stands for the enhanced design idiom of Mercedes-Benz, which is orientated towards aesthetic, avant-garde principles".

Srbijagas

New gas prices on hold The price of natural gas will not go up until the end of the year, after which the Energy Agency will decide on the matter

"The price of gas will not increase before New Year," said Dusan Bajatovic, Director General of Srbijagas. He pointed out that, after a 12 percent discount Serbia has been granted by the Russian partner since the beginning of 2012, an additional USD 50 dis-

count for 1,000 cubic meters of gas will follow as of January 1, and added that the price for the supply of Serbian market should amount to around USD 420 per cubic meter. This price drop, although significant, will not bring reduction of gas prices for end users, Bajatovic said, and added that it should be expected that the price of gas will remain the same as in the previous heating season. (Source Tanjug

05

axa group

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Available, Reliable and Attentive Insurance companies “AXA Life insurance” and “AXA Non-life insurance” are members of the AXA Group, a global leader in the insurance industry. AXA Life Insurance has been present in Serbia since 2010 and AXA Nonlife Insurance since 2011

The AXA Group is a worldwide leader in insurance and asset management, with 163,000 employees serving 101 million clients in 57 countries.

The trust and reputation that AXA enjoys worldwide have been built on constant growth and success in insurance and asset management. In 2011 IFRS revenues amounted

06

to €86.1 billion and IFRS underlying earnings totalled €3.9 billion. AXA had €1,065 billion in assets under management as of year’s end 2011.

High standards bear a great responsibility. That is the reason why AXA standards are based on three core values – to be: available, reliable and attentive. In this way, AXA always remains client-focused, aware of their needs and expectations, ready to respond. Clients recognise it, so the AXA brand has been the first insurance brand on Interbrand’s list since 2009.

H.E. Heinz Georg Wilhelm German Ambassador

PTT Serbia

E-government in underdeveloped communities Post Serbia is ready to introduce e-governance to developing municipalities in order to simplify the lives of both citizens and businesses

This September saw Public Enterprise "Post Serbia" present not only the importance of e-government, but also social responsibility projects implemented by this company in order to stimulate development in underdeveloped communities.

The government, along with "Post Serbia", is launching a major project for all 46 underdeveloped municipalities – and that project is egovernment in those municipalities. Acting Director General of Post Serbia, Goran Ćirić, said that the company is ready to use this to simplify the lives of citizens and entrepreneurs, reminding that this has already been implemented in most Serbian towns. Ćirić said that "Post Serbia" is prepared to donate e-governance software to underdeveloped communities, adding that he has discussed the matter with the relevant government minister, Sulejman Ugljanin. The project of introducing e-government to underdeveloped municipalities was initiated by the Office for Sustainable Development, in order to improve underdeveloped regions.

One of PTT Serbia’s completed social responsibility projects is also the opening of an internet access point at the Post Office in Trgovište. Ćirić, who oversaw PTT Serbia’s investment in opening the Internet Corner, said the company recognised the need to provide the people in this impoverished area with this little gift, which will be available for free to all citizens – especially young people and the economy. Ćirić announced that the PTT building in Surdulica will be renovated with new counters and new computer hardware, which will be a gift to the municipality on the occasion of the 120th anniversary of the establishing of a postal services unit in Surdulica, which will be celebrated next year.

H.E. Michael D. Kirby U.S. Ambassador

H.E. Zaw Tun Myanmar Ambassador

The new German Ambassador to Serbia was born in Munich in 1950 and completed his law studies in his hometown in 1977. He passed the first state exam for lawyers the same year and already passed the second by 1980, when he became a research fellow at the University of Munich. From 1984 to 1986 he served at the Embassy in Riyadh and form 1987 to 1990 at the permanent representative office at the United Nations in New York. He spent three years working at the Ministry of Foreign Affairs and then as Deputy Head of Mission at the Embassy in Dakar. From 2001 to 2004 he worked in the Commercial Section of the Embassy in London and then as head of Germany’s Representative office in Lagos. Between 2006 and 2009 he worked in the political department of the German Embassy in Paris and from 2009 until his arrival in Serbia he was Head of the Department of Legal Affairs at the German Ministry of Foreign Affairs. He is a married father of two.

A career Foreign Service Consular Officer with nearly 32 years of service in the State Department, Michael D. Kirby served as Chief of the Consular Section in Consulate General Krakow from 1988 to 1991, Regional Consular Officer in Consulate General Frankfurt from 1996 to 1998 and Consul General in the U.S. Embassy to South Korea. A former Ambassador to the Republic of Moldova, he has held the position of Principal Deputy Assistant Secretary for Consular Affairs in Washington, D.C. The son of a diplomat, Ambassador Kirby earned a B.A. with Honors in History from the University of Pennsylvania and studied History and Biology at the University of North Carolina, Chapel Hill. He is a married father of two adult daughters.

Born 1955 in Pyin Oo Lwin, Burma, the new Ambassador of Myanmar to Serbia is a career military officer and helicopter pilot who is a recipient of his country’s Brigadier General Medal, among other awards for military service. Having risen up the ranks from a helicopter squadron pilot in 1979, Zaw Tun’s last military post was as Base Commander of the Magwe Airforce Base Headquarters from 2010 to 2012. He was transferred to the Ministry of Foreign Affairs as Ambassador at the beginning of 2012 and his first formal posting is as Ambassador Extraordinary and Plenipotentiary to the Republic of Serbia. His is married and is the father of a son and a daughter.

cordeditorial@cma.rs

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97 October | 39

Business Dialogue

Referendum

Accusation

“I hope that we have a real European constitution and that there will also be a referendum on it.” Guido Westerwelle, German foreign minister

“Germany is often accused of saying only what it does not want. It is now close to saying what kind of Europe it does want.” Markus Kerber, chief executive of the Federation of German Industries

Energy efficiency under the patronage of Elektrovojvodina

Connect to the future

such a network requires timely planning, conformity with standards and resolution of property and legal issues, Elektrovojvodina, in cooperation with the Novi Sad Faculty of Technical Sciences, will launch works on the resolving of the conceptual design and business plan for the implementation of the infrastructure network for charging electric vehicles on the whole territory of the province of Vojvodina.

Such a project can ensure the creation of more than 5,000 charging points on a territory which has a population of two million and 44 local governments, including the City of Novi Sad. This is about the infrastructure of the future with which Elektrovojvodina provides a significant contribution to environmental protection and the implementation of the purest, noblest energy in the func-

According to all indications, Elektrovojvodina is today the most efficient part of the distribution system of the Electric Power Industry of Serbia.

For the experts of Elektrovojvodina, however, this is not the end of their ambitions and goals.

Going always one step further and looking forward, Elektrovojvodina becomes part of projects that bring the future to us

Q

uality of service has become an imperative in the operations of Elektrovojvodina, which confirm it as one of the best parts of the Serbian national power company, Electric Power Industry of Serbia. By participating in projects such as patronage of the International Forum on Renewable Energy, initiating the establishment of Serbia Energy Group – an energy consortium which aims to promote and export domestic smarts and experience, as well as the project for realising infrastructure networks for electric vehicle chargers, saw Elektrovojvodina join the ranks of truly respectable enterprises also beyond the borders of our country.

At the sixth International Forum on Renewable Energy “Serbian Energy Challenge 2020-30-50” which will be held on 24th and 25th October within the Energy Days event in Novi Sad, in addi-

“The common expectations are that the work of the Forum will see the materialisation of effective investments in the process of increasing energy efficiency” (Tihomir Simić)

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tion to representatives of EU institutions, representatives of the governments of the region and our country in the field of energy will attend, as will more than 100 companies with more than 400 participants, who will participate directly in its work.

“In this way the International Forum “Serbian Energy Challenge 2020-30-50 Serbia” should open up real prospects for the development of the energy sector of the country and at the same time contribute to the promotion of standards reached that qualify us as potential strategic partners and competitive exporters of local expertise and technology through the presen97 October 2012

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tation of the Serbian energy consortium Serbia Energy Group on the markets of Africa, Central Asia and the former Soviet republics in the coming year,” noted the Chairman of the Forum and Managing Director of Elektrovojvodina, Tihomir Simić.

The Republic of Finland is the Forum’s partner country and its Export Promotion Agency, FINPRO, alongside the presence of representative energy sector companies recognisable on the global market, will represent the country in the work of the Forum.

“The expectations are for Finland as a partner country and its FINPRO agency to ensure the presenting of the latest technologies in the field of renewable energy and display the energy sector development strategy in all areas, with the best examples from their own practices,” says Dr Simić.

The participation of the Republic of Finland at this year's Serbian Energy Challenge 2020-30-50 Forum as the partner country is also recognition of the long-term efforts of the founders and the Forum Organising Committee, the INEA Institute of European Affairs from Dusseldorf, TMC Group, the Provincial Centre for Energy Efficiency and patrons – the Provincial Secretariat for Energy and Mineral Resources and Elektrovojvodina.

“The common expectations are that through the work of the Forum effective investment will materialise in the process of increasing energy efficiency, maximising the utilisation of renewable energy sources, early application of the SMART GRID concept and, thus, creating conditions for the secure energy future of Vojvodina and Serbia”, said chairman of the Forum Dr Simić. However, that’s not all.

Considering global trends and European infrastructure, which is being extensively built in recent years in the domain of using electric vehicles at the local level and in urban areas, as well as the interest of the economy and all citizens of Serbia, and that the construction of

ensures the overall energy security of all electricity customers in the world, is realised through successful implementation of the SMART GRID concept. Through its current way of doing business, Elektrovojvodina is shaping organisational and technological conditions for the start of the implementation of that concept,” says Dr Simić.

The capacity of a fully charged electric vehicle battery is about 20 kWh, which provides a range of more than about 100 kilometres. Hybrid vehicles have a capacity of about 3 to 5 kWh, providing electrical autonomy of 20 to 40 kilometres. Since the capacity of the batteries of electric vehicles is limited, the vehicle must be charged every two or three days. In practice, drivers fill their cars every day or two on average, while charging a vehicle takes an hour

Elektrovojvodina, in cooperation with the Novi Sad Faculty of Technical Sciences, will launch works on the resolving of the conceptual design and business plan for the implementation of the infrastructure network for charging electric vehicles on the whole territory of the province of Vojvodina

Serbia Energy Group – Serbian export of knowledge and technology on third markets

tion of satisfying the daily needs and maximum management of the energy balance in terms of reducing the consumption of fossil fuels.

The process of using electrical charges and payment is possible to do, since Elektrovojvodina has a concept and technology with which it can secure remote usage and billing of energy consumed for charging.

The goal is to use this form of transport for as much local movement as possible, in order to reduce absolute CO2 pollution and save the money spent on the use of fossil fuels.

The idea is to fill cars with the cheapest energy and for Elektrovojvodina to contribute in that way to reducing pollution. Creating the strategic infrastructure of the future, which has arrived in Europe, is what Elektrovojvodina wants. The development of infrastructure that should ensure the application of the concept of a smart grid certainly implies satisfying all the needs of citizens and businesses on the territory covered by the responsibilities of the distributor. "Applicable international standards in the energy community, whose application

Forum: Serbian Energy Challenge

or two. New technology is also available with so-called "DC quick charging station", which enables fast charging of an electric vehicle in 20 to 30 minutes. The aim is to develop the infrastructure for charging electric vehicles in order to give citizens a motive to switch from vehicles utilising fossil fuels to electrical vehicles.

When it comes to selecting the location for the charger to be installed, it is important that this place has additional facilities such as restaurants, sports facilities, shopping centres, public parking garages, taxi stands, bus and railway stations to allow the people to use their time qualitatively while they wait for their vehicle to be filled.

In the French capital there are more than 200 charging stations that are available in 50 locations throughout the city and are most commonly found in underground car parks, commercial car parks and on the street. All these stations are equipped with adequate protection and provide opportunities for charging electric cars that are available on the French market. Access to the stations is achieved via a chip card that is included in the EDF. ■ cordeditorial@cma.rs

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regional news

Business Dialogue 01

Albania

Euro I

Euro II

"Avoid the euro, my Croatian friends. In 10 years’ time I want to go back, order a bottle of superb red Dingac, and pay for it in kuna." - Boris Johnson, Mayor of London

If we were to hold a referendum now on the issue, I'm not sure that we would get the support of the Croatians." - Zoran Milanovic, Croatian Prime Minister

02

Bosnia’s Republika Srpska

Laktasi to use EIB loan for €10.2 mln water

Ashta I power plant launches operations Austrian energy companies Verbund and EVN and their Albanian unit, Energy Ashta, launched on September 18 regular energy generation at the first section of the Ashta hydropower cascade in Albania, EVN said in a statement. The construction of the Ashta I power plants commenced in March 2010. The construction of the second section of the cascade is expected to be completed in March 2013. The Ashta hydropower facility will have a combined capacity of 53 MW and will generate some 240GWh of electricity a year,

supplying power to more than 100,000 households. The total cost of the project is estimated at EUR 200mn. The Albanian government granted in October 2008 a 35-year concession to Verbund to build and operate the plants. Under the deal, stateowned power utility company KESH will buy the electricity produced by the Ashta plants for a period of 15 years. After that, the term can be either extended or the electricity can be sold on the open market.

EVN joined Verbund in July 2010 when it bought a 50% stake in the project.

03

Sale of Croatia Clumsy Osiguranje Regulatory and HPB Decisions

Croatia

Croatian Finance Minister Slavko Linić has published a tender seeking advisors for the sale of Croatia Osiguranje d.d., the country’s largest insurer, and Hrvatska Postanska

05

Banka d.d., the last major stateowned bank.

Offers will be welcomed on October 29th and October 30th for Hrvatska Postanska Banka and Croatia Osiguranje, respectively, the ministry said in a statement published on its website in late September.

Kosovo

Cooperation with Sloveni In order to increase cooperation in the field of supervision of insurance companies, Kosovo’s Central Bank governor Gani Gërguri and Director Sergej Simonit have signed a Memorandum of Understanding between Kosovo’s Central Bank and Slovenian Insurance Supervision Agency.

General framework of this Agreement is based on the Insurance Core Principles for Effective Insurance Supervision 42 |

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approved by the International Association of Insurance Supervisors. This Agreement, mainly addresses the issue of information exchange between the two regulators focused on reciprocal cooperation in the field of licensing of insurance companies, their auditing and examination as well as information on legal and regulatory changes in both countries.

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Bosnia’s Republika Srpska has confirmed the signing of a memo with the municipality of Laktasi for financing a €10.2 million ($13.3 million) water supply and waste water management project with part of the proceeds of a loan from the European Investment Bank (EIB).

The project in Laktasi is aimed at improving the municipal water supply and wastewater services, the Serb Republic’s Finance Ministry said in a statement.

The government of the entity signed a €100 million loan deal with the EIB in September 2010 to finance municipal water and sewage projects. So far, 23 municipalities have shown interest in the EIB funds but only two, Kozarska Dubica and Novi Grad, have signed project implementation memorandums.

Republika Srpska is one of the two autonomous entities that form Bosnia and Herzegovina, the other being the MuslimCroat Federation.

04

Bulgaria

Renewable energy developers from Austria, Germany, Japan, China, South Korea and the U.S. will take Bulgaria’s energy regulator to court over what they called “illegal” new fees on wind and solar installations that will deal a heavy blow to the sector

Bulgaria’s energy regulator has effectively cut preferential feed-in tariffs for electricity generated by wind and solar power parks for already operational installations by imposing new grid access fees.

The cut will apply to projects completed by June 30th this year by 40 percent, and by 20 percent for projects completed before December 31st 2011. Wind power plants tariffs will be reduced by about 10 percent.

“We will file a legal appeal to the Bulgarian court and we are preparing a separate complaint to the EU Commission too,” Bulgarian Wind Energy Association’s Executive Director

06

Hungary

Hungary will review its economic goals and likely make a downward revision to its 2012 growth target after third quarter figures are published, a senior Hungarian economy ministry official told the Wall Street Journal.

“It is clear that what we envisaged for [economic growth] this year won’t become a reality,” Gyula Pleschinger, the Minister of State at the economy ministry said.

The government targets currently include a near-zero growth forecast

07

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Reviewing Economic Goals

for this year. However, the economy contracted 1.3% in the second quarter and a spectacular recovery in the third is unlikely, looking at the latest industrial output statistics and reports of declining manufacturing output in September.

Despite the deteriorating growth outlook, the government still expects Budapest to meet its target of a deficit equivalent to 2.5% of gross domestic product.

Hungary is set to keep its budget deficit targets for both this year and next, officials have said repeatedly. Meeting these targets is a key requirement for getting financial aid from the International Monetary Fund and the European Union.

Mr. Steve J. Froustis Deputy General Manager of Piraeus Bank Beograd

Romania

EU Invests Nuclear Photonics Project Sebastian Noethlichs said.

Dozens of companies have rushed to take advantage of sun and wind power potential in Bulgaria. But growth in installations has outpaced forecasts, putting pressure on the ageing power grid and electricity prices in the EU’s poorest member state.

Investors, who have borrowed funds to build new solar and wind energy parks betting on high and guaranteed tariffs, say the regulator’s move was a clumsy attempt to reverse past decisions and claw back subsidies at the expense of private capital.

“The amount of loans from local banks only is two billion levs (€1 billion), without taking into account the international funding,” added Noethlichs.

(Source Reuters)

Torgny Svenungsson New head of Swedish Development Cooperation in Serbia

The European Commission approved nearly €180 million for a new laboratory in Romania that will study laser-based nuclear physics

The funding for Extreme Light Infrastructure - Nuclear Physics (ELI-NP) will be provided as part of a broader initiative with the Czech Republic and Hungary to form a pioneering European research consortium. ELI-NP is expected to involve 40 research and academic institutions from 13 member states. It is expected to be part of the first panEuropean multidisciplinary network to host the most intense lasers available.

“This is exactly the type of project we want to see more of in the future,” said Commissioner for Regional Policy Johannes Hahn.

The ELI-NP, to be built in

08 Magurele, south of Bucharest, will consist of two major components, a very high intensity laser constructed by combining the beams of two 10-petawatt Apollon-type lasers, and a high-intensity beam generated by combining laser light with an electron beam created by a linear accelerator. It is expected to be operational in 2015.

Research at the facility will be done in fundamental and nuclear physics, astrophysics, and material science and the life sciences, but also on new ways to handle nuclear materials and radioactive waste.

Piraeus Bank Beograd has appointed Mr. Steve J. Froustis to the position of Deputy General Manager.

Since 2010, Mr. Froustis has been an Executive Board Member and an Advisor for Large Corporate & Structured Finance of Piraeus Bank Beograd.

Steve J. Froustis was born in 1966. He received his Bachelor of Science Degree - Cum Laude and Masters Degree in Business Administration with an emphasis in Management and Finance from Arizona State University.

Mr. Froustis started his banking career in 1992 holding various positions of responsibility in large banking groups operating in Greece such as Banque Paribas, Banque Nationale de Paris (BNP) and Omega Bank.

In 2007, Mr. Froustis joined Piraeus Bank Group as Area Manager in the International Corporate Banking Division where he was responsible for the International Corporate Banking Portfolio of Piraeus Bank Group in Serbia, Bulgaria, Egypt and the United States. In 2009, Mr. Froustis became Head of the International Corporate Banking Division of Piraeus Bank Group.

Mr Torgny Svenungsson has been appointed Head of the Swedish Development Cooperation in Serbia as of 3rd September, according to an announcement of the Swedish Embassy in Belgrade Mr Svenungsson has vast experience in the field of international development cooperation throughout the world (Colombia, Cuba, Central America), as well as in the central office in Stockholm. He has been involved in this capacity in most of the Swedish government’s major development cooperation programmes.

Mr Svenungsson replaces Mr Björn Mossberg, one of the veterans of the international development community in Serbia and in the region.

FYROM

2Q GDP – 0.9% According to estimated data, the growth rate of Macedonia’s Gross Domestic Product (GDP) in the second quarter of 2012 was -0.9%. In this quarter the biggest decrease was registered in the following sections: (C+D+E) - Mining and quarrying, Manufacturing and Electricity, gas and water supply by 6.9%, F - Construction by 5.1%, and in section I - Transport, storage and communication by 3.0%. Household final consumption, including Non-profit institutions serving households, increased by 2.2% in nominal terms compared to the same period of 2011, and its share in the GDP structure was 79.2%. In the same period, exports of goods and services fell by 4.2% in nominal terms, while imports of goods and services rose by 4.5%.

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97 October | 43

Business Dialogue

Levo

Titanic

“When new, faster athletes take part in your race, you will not win by maintaining your original speed. Challenges to competitiveness cannot be overcome by continuing to do what you have always done. A change of approach is needed.” - David Lidington, UK Minister for Europe

“It is a total and utter failure. This ship, the euro titanic, has now hit the iceberg and sadly there aren’t enough lifeboats.” - Nigel Farage MEP, UK Independence Party leader

Long-term commitment of Imperial Tobacco to the domestic market

Operating Capital of €140 Million Brought to Serbia Since being established in 2003 its portfolio has expanded from a just few products to 35 products and six brands, including the world's leading brands Davidoff, Gauloises and West, but also Filter 57, Imperial Classic and Style, the growth of which has been impressive during this year. Over the past year the company has increased its team by 20 percent and now employs 70 people in Serbia Daniel Einhäuser, Regional Director of Imperial Tobacco for Eastern Europe (left), Vladimir Mikić, CEO of Imperial Tobacco Serbia, Saša Glušac, director of Veletabak

C

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ompany Imperial Tobacco Serbia has reinvested its profits by increasing the initial capital, which today amounts to €25 million, thereby showing the seriousness and longevity of its strategic approach to the Serbian market. On an annual level, on the basis of different taxes and contributions to the state budget, the company pays more than €100 million, which Imperial Tobacco ranks among the country’s most significant budgetary and economic factors.

“During the past three years Imperial Tobacco has introduced more than €140 million of operating capital to Serbia,” reveals Vladimir Mikić, CEO of Imperial Tobacco for Serbia and Montenegro. Despite the crisis, management expectations are optimistic and, above all, realistic.

“In the second half of our 2012 fiscal year, which ends in September, we expect double-digit growth in sales compared to the same period last year,” he said, pointed out that during the past three years Imperial Tobacco managed to increase sales volume growth twofold.

The long-term commitment of Imperial Tobacco to the Serbian market is witness by that fact that since being established in 2003 its portfolio has expanded from a just few products to 35 products and six brands, including the

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world's leading brands Davidoff, Gauloises and West, but also Filter 57, Imperial Classic and Style, the growth of which has been impressive during this year. Over the past year the company has increased its team by 20 percent and now employs 70 people in Serbia who are involved in management, administrative, commercial and control activities, together with about 600 people from partner companies with which they have achieved their contractual obligations.

Despite not participating in the acquisition of tobacco industry players on the Serbian market, Imperial Tobacco has achieved a significant market share, which has tripled

“In the second half of our 2012 fiscal year, which ends in September, we expect double-digit growth in sales compared to the same period last year” (Vladimir Mikić)

since 2009. In addition to participation on the cigarette market, Imperial Tobacco also supplies the Serbian market with other tobacco products, with company brands including Rizla, rolling tobaccos Drum, Van Nelle and Golden Virginia, but also cigars like Cohiba, Monte Cristo and Romeo and Juliet.

Commenting on the importance of the Serbian market to the Imperial Tobacco Corporation, which operates in more than 160 countries worldwide, regional director Daniel Einhäuser said that “Serbia has repeatedly shown outstanding achievements”.

“Thanks to the results achieved and the continued growth of the business, there is a long-term commitment by Imperial Tobacco to invest in Serbia,” said Mr Einhäuser.

Of the 20 countries that make up the region of Eastern Europe, Serbia is ranked fourth in terms of total sales of the strategically important Davidoff brand. It has a long history in Serbia and proven long-term growth, which is reflected in the leading position it now has in the premium segment.

“This is precisely why Serbia is among the first in the world to be selected for the launch of our new product - Davidoff ID, along with major markets such as Russia,

Company Imperial Tobacco Serbia has reinvested its profits by increasing the initial capital, which today amounts to €25 million China and Spain. Davidoff ID is one of the most important initiatives in the world, in line with our global growth strategy,” added Einhäuser.

Summarising the excise policy and Imperial Tobacco’s cooperation with the state administration, Vladimir Mikić

praised institutions in Serbia for their efforts invested in significantly reducing the tobacco products black market.

“Since excise paid on tobacco products is one of the most important Serbian budget revenues and total revenues account for 14 percent, but also that this is mostly included in the product price, we believe that the Serbian government will lead a wise policy in this area, so as not to bring into question anyone’s interest - neither the budget nor the tobacco industry, but not consumers either,” said Mikić, adding: “The safe way to ensure it also stays that

way is for the process of harmonising excise revenue to be raised to a more transparent level and for more parties to be included in the dialogue”.

At the same time, the regional director said that when it comes to the business climate in Serbia there is room for improvement in the area of free access to retail.

“Now this is not always the case,” specifies Einhäuser, noting that more than 80 percent of the average retail price of cigarettes in Serbia consists of taxes, so retail price include their growth.

“Serbia is among the first in the world to be selected for the launch of our new product - Davidoff ID, along with major markets such as Russia, China and Spain” (Daniel Einhäuser)

Imperial Tobacco has been present in Serbia since 2003, though for the first two years it operated as Reemstsma.

Today it employs 70 people who are engaged in managerial, administrative, commercial and control activities, alongside more than 600 people from partner companies with which it has contractual obligations. In the past three years Imperial Tobacco has brought more than €140 million of operating capital to Serbia.

The company began operating back in 1786, when Henry Wills opened his first shop. His shop was a mile away from today's corporate headquarters of Imperial Tobacco in Bristol, England. In 1901 an agreement was reached in Birmingham to merge the 13 most significant family businesses, of which the Will family, who owned the largest firm, provided the first president of the company - William Henry Wills.

In 1902 another five companies became part of the Imperial Tobacco Company. In 1996, after ten years of operating within the company Hanson PLC, Imperial Tobacco once again became an independent company that actively strengthened its position on markets beyond the UK. In the period from 1997 to 2008 the Group invested more than Imperial Tobacco - ID card

Founded: 1901 Location: Bristol, UK Number of employees: 38,000 Number of factories: 49 Annual income: around £30 billion in 2011 Ownership structure: Public Joint Stock Company cordeditorial@cma.rs

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world news

Business Dialogue 01

Study

Money

"The study of economy usually shows us that the best time for purchase was last year." - Woody Allen, American screenwriter, director, actor, comedian, author, playwright and musician

"Money doesn't talk, it swears." - Bob Dylan, American singer-songwriter, musician, and artist

02

Belgium

Workers’ taxes - the highest in EU For the second consecutive year Belgian workers’ taxes are the highest in Europe. After payroll taxes and VAT (sales tax), the typical Belgian is paying a “real tax rate” of 59.2%, according to the latest Europe-wide study. The average “real tax rate” on workers’ salaries rose again this year to 44.89%. The average rate was 43.99% in 2010 and 44.23% in 2011.

Most EU member states have “progressive” systems under which earners pay higher income tax rates on increasing levels of income. Eight EU countries – Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania,

Romania and Slovakia – have “flat tax” systems under which the tax rate, often below 20%, remains constant at all levels of income.

Compared as groups, taxes in “flat tax” countries (46.21% of the total employment cost) were once again higher than those in “progressive tax” countries (44.9%), suggesting that a flat tax on income – by itself – is not a good measure of the tax pressure on workers and employers.

Referring to Belgium’s “gold medal” in the taxation of wages could make Belgium a less attractive country for foreign investments.

British Gas posts huge profits

An Austrian court has lifted the ban on the use of the name Mozart for sweet products

The court said that the name “Mozart” should be free for use on any sweet products after a local company tried to expand the city’s monopoly from Mozart balls to a Mozart liquor - and were turned down.

In future sweet creations containing Marzipan, Nougat and chocolate can be named after the composer - but the court did rule that the trademark on Mozart balls (Mozartkugel) will remain in force.

The ruling came after the Mozart Distillery in Salzburg tried to trademark a new variety of Mozart alcohol based on the same recipe as Mozart Balls - that contain marzipan, nougat and chocolate.

But the court ruled that people’s association of the name Mozart with the sweet combination was now so widespread because of the popularity of Mozart Balls that it could not be applied to any new trademark protected products.

Trademark expert Clemens Thiele, however, warned that the ruling would mean a flood of foreign Mozart sweets and drinks on the market.

04

France

Jobless Tops Three Million

The owner of British Gas has increased profits at its residential arm by 23 per cent

Profits at British Gas Residential, which has 15.8 million energy accounts in the UK, rose to £345 million in the six months up to June 30th after volumes were boosted by the cool start to the summer.

But the UK’s biggest energy supplier also benefited from higher prices because, while it dropped its standard electricity prices by five per cent in January, this did not cancel out a 16 per cent rise in August, when gas bills also went up by 18 per cent.

Consumer Focus has accused utility companies of being quick to pass on rising wholesale costs to consumers, but being slow to drop prices when they fall and today’s bumper profits haul is likely to provoke further outrage.

The number of French unemployed has broken through the 3-million barrier for the first time since 1999, the country’s leaders say.

The latest total adds pressure on President Francois Hollande, whose administration is under attack for doing not doing enough to fix the economy. France’s unemployment rate is currently 10 percent.

Breaking the 3 million mark carries more symbolic importance than economic but it was covered extensively in the French media. The Ministry of Employment says the

Italy

ENI discovers major gas field in Pakistan Italian energy major ENI said in late September it had discovered a major reserve of between 300 billion and 400 billion cubic feet of gas some 350 kilometres north of Karachi in Pakistan.

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The discovery was made in the Khirtar Fold Belt region close to the ENI-operated Bhit gas processing facility. It confirms the

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07

Germany

Investor sentiment in Germany rose for the first time in five months in September, as the European Central Bank’s new bond-buying programme helped boost confidence

The widely watched investor confidence indicator calculated each month by the ZEW economic institute climbed to minus 18.2 points in this month from minus 25.5 in August.

“This is the first rise in the indicator following four consecutive months of decline, nut the fact that the indicator remains in negative territory shows that financial market experts are continuing to forecast a cooling down of the German economy in the next six months,” ZEW said in a statement.

08

3-million threshold was crossed in 1996 and again in 1999.

Employment Minister Michel Sapin confirmed the total on French radio and warned that the numbers would likely get worse. Prime Minister Jean-Marc Ayrault called the numbers “very violent”.

presence of significant exploration potential that can be exploited through the application of new geological models.

The company said it had begun talks with Pakistani authorities on creating a joint venture, adding that it would “help to reduce the national gas deficit.”

Pakistan has had an endemic energy crisis for years, characterised by frequent blackouts, which has crippled the economy.

The crisis is blamed on chronic mismanagement and corruption.

Finland

Belarus

Trade with Vietnam might reach $1bn

Rising Investor Confidence

Mozart balls face threat from rivals

03 UK

05

Austria

The end of the downward slide in September suggests that the experts believe the economic weakening will be only moderate.

“Nevertheless, the debt crisis has not been resolved and the economic risks remain virulent,” ,” ZEW president Wolfgang Franz warned.

The data were not quite as positive as had been expected. Analysts surveyed by Dow Jones Newswires had forecast a stronger gain in the indicator to minus 17.0 points.

Power Imports From Russia Drop 63% Finnish electricity imports from Russia dropped by 63 percent this year through August as Russian exports to the Nordic region have become less viable

Finland imported 2.8 terawatt-hours from Russia in the eight months, down from 7.5 terawatt-hours in the year-earlier period, according to data released today by the Finnish Energy Industries association.

Russia increased both its capacity tariffs and natural-gas prices, often making it unprofitable to sell electricity to Finland, its biggest market. Imports from Russia dropped 7.5 percent to 10.8 terawatt-hours last year.

“Russia levies a monthly capacity tariff of €25 to €30 per megawatt-hour on power exports for peakload demand hours, which limits the viability of shipping power to Finland,” Risto Lindroos, leading expert at grid operator Fingrid.

The average Finnish power price for base load delivery is €35.07 a megawatt-hour this year, compared with a Nordic average of €29.18, according to data from the Nord Pool Spot AS exchange.

The trade between Belarus and Vietnam might reach $1 billion in the near future, Deputy Trade Minister of Belarus Edvard Matulis told following the establishment of the trading house Belarus-Vietnam in Hanoi.

Vietnam is Belarus’ traditional trading partner in the Asian region.

Over the last five years the bilateral trade expanded 4.3 times to reach $211.9 million in 2011.

“I think the feasible task should be to increase the trade up to $1 billion in the nearest future,” said Matulis. Belarus’ export soared four

09

times over the five years and made up $164.3 million in 2011.

Belarus’ major exports to Vietnam include potash fertilizers, machine sets for trucks, dump trucks, tires, tractors, spare parts, bearings, metal products and foodstuffs. Belarus has started shipping new models of tractors, electrical products, equipment for movie theatres, meat products to Vietnam.

Belarus imports from Vietnam office equipment, communication devices, seafood, rice, nuts, footwear, clothing, natural rubber, processed fruits, spices, tea and coffee.

Denmark

Spar Nord Bank might acquire Sparbank Danish Spar Nord Bank said it would acquire rival Sparbank, fuelling expectations of more consolidation in Denmark’s fragmented banking sector as the financial crisis bites and regulations toughen.

The deal would improve earnings and create a company with a nationwide network of branches in a stronger position to take on competitors in the retail and commercial markets.

Sparbank shareholders will get two new shares in Spar Nord for each share currently held in Sparbank. That put the value of Spar Nord’s all-share offer at about 329 million Danish crowns (€44,410,748) based on 6.03 million Sparbank shares outstanding. Sparbank shareholders would end up holding about 9 percent of the share capital of Spar Nord, they said.

Danish banks have been stung by bad loans in the aftermath of a burst property bubble and rising write downs on loans to struggling farmers.

“For regulatory reasons, banks need to be bigger to be profitable,” said SEB Enskilda analyst Claus Therp.

The Chief Executive of Denmark’s second-biggest lender Jyske Bank, have forecast the number of small and medium sized banks in Denmark could halve over the next three years.

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Vacuum

Business Dialogue Interview

“Can the ECB fill the vacuum of lack of action by national governments on fiscal growth? The answer is no. Can the ECB fill the vacuum of the lack of action by national governments on the structural problem? The answer is no.” - Mario Draghi, president of the European Central Bank (ECB)

Aleksandar Nikačević, Secretary General of the Automobile & MOTORCYCLE Association of Serbia, AMSS

Family protects – friends help

Almost a million citizens a year receive free traffic information, advice and assistance simply by dialling 1987. Every day several million people watch and listen to our TV and radio show called ‘Road conditions’ and we provide information and dispense advice through over 80 electronic media outlets

L

ast year the Automobile & Motorcycle Association of Serbia (AMSS) celebrated its 90th anniversary. The main goals of this independent national drivers’ association, which is managed by its members, are to protect drivers’ interests and increase road safety. A million people a year call AMSS for advice or assistance, while hundreds of staff and mobile crews are constantly on-call to provide efficient help to anybody stuck on the road. Here we ask AMSS Secretary General Aleksandar Nikačević what citizens can expect from AMSS and services it provides.

■ Could you describe AMSS as it is today?

Although it is very rare and a great success to survive in this country for nine decades, we have managed to do much more. Today AMSS is the most socially responsible and successful automobile and road safety association in Serbia.

■ What has AMSS been doing to improve traffic safety?

We are the leading road safety stakeholder and have been investing huge amounts of money and resources to that end. We also organise major preventative campaigns in three areas – road users, vehicles and roads. Our experts have developed systems and software to monitor and analyse driving schools, technical inspections and road safety.

Every year we have various campaigns, such as educating 100,000 primary school pupils through an international competition called ‘What do you know about traffic?’ We also perform tens of thousands of free vehicle check-ups in a campaign called ‘A sound vehicle is safe vehicle’. We have also given away thousands of helmets to motorcyclists in a campaign called ‘Helmet saves your life’ etc.

We also provide free services for drivers. Almost a million citizens a year get free information, advice and assistance about traffic by simply dialling 1987. Every day several million people watch and listen to our TV and radio show ‘Road conditions’ and we provide information and dispense advice via more than 80 media outlets.

Hundreds of our people and mobile crews are ready to respond to a 1987 call, which is a symbol of our care for drivers, and offer efficient help to anyone stuck on the road. AMSS members are also entitled to free road assistance in Europe and Serbia.

All of these campaigns and free services provided for millions of Serbian citizens are worth over €1.5 million and that is our own money.

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JEAN TODT, FIA President, and aleksandar nikačević, AMss secretary general

Although we don’t get a single dinar from the state budget, because we are not a public enterprise, our annual contribution to the Serbian budget is over €3.5 million.

■ How did the economic downturn affect your operations?

In the last three years, since I have been the head of AMSS, we have recorded a 35% increase in our revenue year-on-year, so during the biggest economic crisis we managed to double our assets and capital compared to what was accumulated for decades.

AMSS is the founder of 24 companies and majority owner of AMS Insurance. It has the biggest network of automobile centres in over 70 towns in Serbia, which offer a wide range of services to drivers.

Apart from road assistance, AMSS also performs vehicle inspections, vehicle registration and insurance, it has driving schools and issues international driver’s licences and certificates.

In 2009, we were declared the best European roadside assistance club. We have been awarded an international agreement which stipulates that we organise medical roadside assistance on the territory of the former Yugoslavia

■ Could you tell us something about international cooperation between AMSS and other organisations?

AMSS is one of the most successful automobile clubs in Europe today. In 2009 we were declared the best European roadside assistance club. We have been awarded an international agreement which stipulates that we organise medical roadside assistance on the territory of the former Yugoslavia. We monitor and record thousands and thousands of kilometres of European roads as part of a project called EuroRAP. This year we received special recognition from EuroRAP. Our annual revenue from rendering services to foreign drivers is close to a million Euros.

As a respected member of FIA and many other international organisations, this year we hosted several conferences, such as the FIA Region I Conference with over 200 participants from 70 countries. ■

Political class

Business Dialogue

“We have a political class of kleptomaniacs that needs to put back what it has stolen - from their bank accounts to their lofts - and then, because we don’t want them sneaking off to the Seychelles, be put before a jury.” - Beppe Grillo, Italian comedian and blogger

Barroso’s successor

The Runners and Riders

As seasoned Brussels-watchers know, predicting the outcome of the race to be the next European Commission president is a fool’s game – but the candidates are already beginning to emerge

By Kevin Doran

T

he current president, José Manuel Barroso, is already halfway through his second term but there is no reason why he cannot go namic of appointing the commission president. Previously, candifor an unprecedented third. dates would lobby the capitals of Europe to get enough support to Nevertheless, speculation is mounting in Brussels over who will succeed be considered by the ‘Great Powers’ as a suitable candidate. This Barroso. Gossip about the runners and riders for the top job are inevitable time, they would have strong political backing to help them make at this stage in the political cycle. However, this time, there are new factors their case. Undoubtedly, big personality candidates will raise the to consider – not least how the appointment will be made and whether the profile of the European elections also in 2014. nature of the job will change.

Blair is still not forgiven by many on the European left for his hawkIn his annual State of the Union speech last month, Barroso said that ish stance on Iraq, so he has a tough battle ahead if he wants to be the he wanted to strengthen the European political parties statute. This nomination from the Socialists and Democrats. The S&D are likely to legitimises cross-Europe political groups so that in effect, if you are a hold primaries in January 2014. Do not be surprised if Martin Schulz, the member of the Liberal Democrat party in the UK, you are also indirectcurrently president of the European Parliament, comes through as a conly a member of the Alliance of Liberals and Democrats in Europe group. tender. He is German but with very good links to the French centre-left.

He wants the political groups to be able to select their own candidate Speculation about possible candidates for the centre right European for his job – and the nominations of the groups would be considered by People’s Party seems more informed. If Barroso decides to step down, the EU Council when appointing the new commission president. his cheerleader Viviane Reding is likely to step forward. Nevertheless the The 11 foreign ministers that produced the Future of Europe report present frontrunner appears to be Poland’s Prime Minister Donald Tusk. go so far as to suggest that the groups could propose one candidate for Elsewhere, for the ALDE group the Belgian liberal and former preboth the commission president and the council president. This idea mier Guy Verhofstadt is the current favourite. He was ruled out by Tony was raised by French commissioner Michel Barnier and others last Blair when he sought the appointment back in 2004. year, who were quick to point out that a single presidential figure comThe Autumn Congresses of the bining Barroso’s role with that of the council main political groups will see some president, currently Herman Van Rompuy, Speculation is mounting in Brussels over new names emerge. If France and would still be possible under the Lisbon Treawho will succeed José Manuel Barroso Germany decide that a politician ty. This is where the job would be interesting from a small member state should to a political heavyweight like Tony Blair. be appointed, then former Latvian president Vaira Vike-Freiberga, for The question is, if the two president system continues – more likely, example, will suddenly become a contender. So, the process is set to begiven that one president for both institutions would be politically very come more political – and perhaps less predictable. difficult – would Tony Blair still be interested? He admits he was keen And yet, it may result in a non-politician being appointed. Angela when the council president position first came up, but he has since Merkel is privately keen – despite recent tensions between them – that seen just how limited Van Rompuy has been in that role.Blair believes the technocratic prime minister of Italy and former commissioner Mario he has one big job left in him. Could it be commission president? And Monti is considered. Seasoned Brussels-watchers know that it is foolish if it is, is he ready to openly campaign for the nominations from centre to predict the outcome. Whatever the result, the race starts now. left parties across Europe?

(Author is the managing director of the Grayling consultancy in Each of the political groups will kick off the nomination procBrussels but writes here in a personal capacity).■ ess this autumn. Their nominations will change the whole dy50 |

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SURF & TURF IN BELGRADE

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after work

after work Press Council Celebrates 1st Anniversary

Serbia’s Press Council, an independent self-regulatory body established to monitor compliance with the Code of journalists in the print media, marked its 1st anniversary in September. The ceremony, which was held on this occasion at the headquarters of the Serbian Media Association, one of the founders of the Council, was attended by representatives of leading media in Serbia, international and national nongovernmental organizations and numerous public figures. The guest were addressed by Dragan Bujoševič, Chairman of the Press Council.

bojan radun, CEO of Nectar

New look Merkator

Mercator Centre Belgrade, which was closed for reconstruction in May, re-opened its doors on the first day of September. The reconstructed centre, into which €12 million has been invested, meets the highest standards of technical trade centres in the most developed countries of Europe. In addition to restaurants, cafes and fitness studies, Mercator centre includes a full offer of specialised service providers (post office, bank, dry cleaners, hair salon, car wash and florists).

Responsible activities Stanka Pejanović, Mercator society director, and Goran Sorak,

Ivana bajić, presenter

New Mercedes A class

Director of the Executive Area for Marketing and PR

Steve Froustis, Member of the Executive Board, Advisor for Large Corporate and Structured Finance and Neoclis Neocleous, president of the Executive Board,of Piraeus Bank AD Belgrade

Andreas Binder, CEO of Mercedes-Benz SCG

The New Mercedes A-class has been presented to the domestic market under the slogan “The pulse of new generation,” in the presence of lovers of this premium car brand, famous celebrities and other guests.

Following its premiere, the new Mercedes-Benz model in the compact vehicle segment was displayed in front of Belgrade’s Delta City shopping centre on 11th September 2012. The price of this car on our market ranges from €20,898 for the A180 model with a petrol engine.

As part of their corporate social responsibility policy, employees of Erste Bank and insurance company Wiener Städtische participated in voluntary action to refurbish the 9th May Primary and Secondary Schools in Zrenjanin.

The action included 22 employees of Erste Bank branches in Vojvodina and Belgrade, together with many members of the school staff, 12 employees of Wiener Städtische insurance in Zrenjanin, Pančevo and Vršac, as well as seven volunteers from the Technical University of Zrenjanin.

Volunteers painted the school building and fences, as well as fixing the sports court and physical education hall.

In addition to the voluntary action of employees, Erste Bank also contributed with a donation that enabled the planting of new grass in the school’s designated green areas and arranging parking.

aleksandra radović, pop star

Decade of success

božidar đelić, Economist, and Goran pitić, President of the BoD of Societe Generale Bank Serbia

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Fransoa-Gzavije Denio, French Ambassador to Serbia, Kostin Bork, CEO of Lafarge BFC, and Mrs Alison Andrews, daughter of Princess Katherine

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Last month, in the beautiful setting of Belgrade’s White Palace, Lafarge marked a decade of successful operations in Serbia with representatives of industry, government, local officials, representatives of the diplomatic corps and employees of the company.

This leading construction industry supplier in Serbia surprised guests with a concert of Aleksandra Radović, while the programme was led by Mary Kilibarda. Guests were greeted on behalf of the royal family by Mrs Alison Andrews, daughter of Princess Katherine, with guests then welcomed by Kostin Bork, CEO of Lafarge in Serbia.

National Dance Foundation

In early September the ballet hall of the National Dance Foundation staged a cocktail reception marking the start of the new school year and ballet.

The occasion saw representative of the Russian Vaganova Academy and teachers of Milan’s La Scala Theatre Academy presented, alongside a domestic professional team that will run with the students during the 2012/2013 academic year.

Vip mobile has awarded several ballet school scholarships for pupils, while the Belmedic General Clinic took care of the proper health of young ballet talent.

Thanks to the involvement of the Embassy of Russian Federation and cooperation with the Vaganova Academy of St. Petersburg, the school’s ballet teacher in the new season will be Ulitina Tatiana, who has taught classical ballet for 15 years. cordeditorial@cma.rs

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faces & places 30.08.2012 New Raiffeisen HQ Raiffeisen Bank Serbia boss Oliver Roegl is joined by Herbert Stepic and Petert Lennkh, senior executives of Raiffeisen International from Vienna, to cut the ribbon on Raiffesien Bank’s newly constructed headquarters in Belgrade. After 11 successful years in Serbia, Raiffesien Bank finally owns its own building in the capital. The festive reception unveiling the building was attended by numerous clients, partners and friends of the bank.

30.08.2012 Turkish Victory Day Ambassador of the Republic of Turkey to Serbia, H.E. Ali Riza Çolak, welcomes Serbian First Deputy Prime Minister and Defence Minister Aleksandar Vučić to a 30th August reception marking the 90th Anniversary of Turkey’s Victory Day. The reception, held at the Hyatt Regency’s Crystal Ballroom, was attended by many leaders of politics, diplomacy and business.

03.09.2012 Indian culture Indian dance troupe “Kathak”, which performs the traditional Indian dance of the same name, performed on Monday 3rd September on the Rasa Plaović Stage of the National Theatre in Belgrade with its performance “Her”.

The group’s performance was organised by the Embassy of India in Belgrade and the National Theatre, with assistance from the Serbian Ministry of Culture.

Pictured, left-to-right: Naveen Laxena, First Secretary of the Embassy of India, Serbian Culture and Information Minister Bratislav Petković and Kathak dance leader Sarmista Mukherdji, daughter of the President of India.

06.09.2012 German Chamber of Commerce Markus Sporer, representative of the Munich international trade fair Messe München International, pictured speaking to press at the Belgrade Media Centre on 6th September. Mr Sporer was the guest speaker of the German Chamber of Commerce in Belgrade on the occasion of the BAU 2013 fair.

06.09.2012 British-Serbian Chamber The British Ambassador’s Residence in Belgrade hosted a British Serbian Chamber of Commerce reception to honour Sir Paul Judge, Chairman of the Chamber, on 6th September. The Reception also welcomed Mr David Thomas MBE, President of the Council of British Chambers of Commerce in Europe (COBCOE). Pictured, left-to-right: KPMG’s James Thornley, Sir Paul Judge and H.E. Ambassador Michael Davenport.

06.09.2012 Slovak Day Serbian President Tomilsav Nikolić, pictured speaking to H.E. Slovakian Ambassador Ján Varšo at a reception marking the Constitution Day of the Slovak Republic.

The 6th September reception was attended by members of Belgrade’s political, business and culture scenes, as well as members of the diplomatic corps.

07.09.2012 Brazilian National Day Brazilian Ambassador to Serbia, H.E. Alexandre Addor Neto pictured on the dancefloor at a 7th September reception marking Brazilian National Day.

08.09.2012 Macedonia celebration H.E. Mercedes Felísitas Ruiz Zapata and friends of the Embassy of the Republic of Macedonia, pictured at Belgrade’s Progres Gallery during an 8th September ‘gala ceremonial exhibition and glass of wine’ with “Contemporary Macedonian painters and their Serbian friends” to mark the Independence Day of the Republic of Macedonia.

07.09.2012 Indonesian holiday Serbian President Tomislav Nikolić and Indonesian Ambassador to Serbia, H.E. Samuel Samson, pictured at a Hyatt Regency Hotel reception marking the 67th Anniversary of the Republic of Indonesia on 7th September.

05.09.2012 Telenor coming & going Telenor Serbia bade a fond farewell to outgoing CEO Kjell-Morten Johnsen (left), who goes on to become the new Executive Vice President of Telenor Group and director of European operations, and a warm welcome to new Telenor Serbia CEO, Ove Fredheim (right), at Belgrade’s Brankow Cocktail Bar on 5th September

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faces & places 20.09.2012

Fiat launch

Company Fiat Automobili (FAS) Srbija held a festive reception at Belgrade’s White Palace on 20th September to formally mark the launch of the new Fiat 500L model, which is being produced in Kragujevac and exported to the world. The reception was attended by politicians, diplomats, businessmen and other figures from Belgrade’s public life. Picture below: Antonio Cesare Ferrara, CEO of FAS, Katherine and Prince Alexander Karađorđević and Gerry Clarke, FAS Commercial Director.

13.09.2012 Russian farewell A scene from the 13th September farewell reception for outgoing Ambassador of the Russian Federation to Serbia, H.E. Alexander Konuzin.

Pictured (right): H.E. Ambassador Konuzin, Serbian Patriarch Irinej and Serbian President Nikolić.

14.09.2012 Mexican reception H.E. Mercedes Felísitas Ruiz Zapata, Ambassador of Mexico to Serbia, pictured welcoming Swiss Ambassador, H.E. Erwin Helmut Hofer, to a 14th September reception marking the 202nd anniversary of the Proclamation of the Independence of Mexico at the Hyatt Regency Hotel.

19&20.09. 2012 Management Forum The SEE Management Forum, held at the Serbian Chamber of Commerce, was marked by four plenary sessions and four panel discussions with more than 40 speakers. The meeting was opened by Aleksandar Vlahović, president of the Association of Economists of Serbia, and Miloš Bugarin, President of the Serbian Chamber of Commerce. Pictured (below, centre) is successful Serbian businessman Toplica Spasojević.

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17.09.2012 Malaysian birthday Charge d’Affaires of the Embassy of Malaysia in Belgrade, Yubazlan Bin Yusof, and Serbian President Tomislav Nikolić cut the cake at a 17th September Hyatt Regency reception on the occasion of the 55th anniversary of Malaysian National Day.

20.09.2012 Armenian holiday H.E. Gagik Ghalatchian, Ambassador of the Republic of Armenia to Serbia (right), and Honorary Consul Predrag Tomić, pictured during a 20th September reception on the occasion of Armenian Independence Day at Dedinje’s Museum of African Art.

21.09.12

Coca-Cola & NALED

The Coca-Cola system and the National Alliance for Local Economic Development (NALED) staged a press conference on 21st September to highlight the importance to Serbia of foreign direct investment and the operations of major business systems to society and a country’s economy. The occasion was used to present the results of the study “Socioeconomic impact of the Coca-Cola system in Serbia”.

Picture right: John Downes, Global Director of Government Relations for Coca-Cola, Ramon Vajdinger CEO of Coca-Cola Hellenic Serbia and Montenegro, and Vlajko Senić, State Secretary in the Finance and Economy Ministry.

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culture news

culture calendar CONCERTS 75 years of RTS Symphonic Orchestra Sava Center, 3 October @ 20.00

75 years of RTS Symphonic Orchestra, Sava Centre, 3rd October @ 20.00 Radio Television Serbia celebrates the 75th anniversary of the founding of its Symphony Orchestra with a concert to be held at the Sava Centre on 3rd October.

The RTS ceremony, marking 75 years since the founding of one of the most important musical institutions in the country – the RTS Symphony Orchestra – will be carried out under the leadership of Artistic Director and Chief Conductor of Music Production at RTS, Bojan Sudjić. The RTS Symphony Orchestra will perform Dmitri Shostakovich’s Symphony VII, known as Leningrad. A magnificent work of one of the greatest Russian composers of the 20th century, it was created in 1941. It will be performed in front of a domestic audience in its full scope for the first time as part of the Great RTS Jubilee.

Najlepse Pesme Rusije Sava Center, 19 October @ 20.00 The anniversary of Belgrade Liberation Day will see the most beautiful Russian songs performed on the main stage of the Sava Centre by stars of the Russian and Serbian music scenes.

Russian songs touch the heartstrings of the finest human soul and leave a trail of eternity, which is why this is recognised throughout the world as very emotional music that expresses the most beautiful feelings of joy, sorrow, conflict and love and, therefore, offers a tremendous contribution to the global fund for culture.

Russia’s favourite songs – patriotic, military,

public and Cossack escort – will be performed as compositions by the RTS National Ensemble.

Artists from the Bolshoi Theatre, The Russian Army’s “Aleksandrov” Choir, as well as soloists from Russia and Serbia, will perform at the Sava Centre on 19th October.

Aleksandra Radović Sava Center 20 October @ 20.00 Aleksandra Radović is one of the region’s most popular pop singers. In 2007 her solo concerts sold out and the audience had the opportunity to enjoy such hits as “The salt in the sea”, “I’m keeping you,” “Hold Me,” “You’re mine” etc. She graduated from the Music Academy of Novi Sad and now also successfully runs the region’s first

Paco de Lucia Sava Center, 18 October @ 20.00

Spanish guitarist Paco de Lucia, considered the greatest flamenco artist of all time, will perform for the first time during this year’s BEMUS. He previously performed in Belgrade during the 2010 Guitar Art Festival. This concert will be an opportunity for the Belgrade audience to enjoy the performance of this guitar virtuoso once again.

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Belgrade Jazz Festival Dom Omladine, 25-28 October @ 19.30 The 28th Belgrade Jazz Festival will be held from 25th to 28th October at the newly renovated Dom Omladine. As in previous years, we expect the top masters of jazz and some of the performers include Dave Douglas and the Joe Lovano Quintet, Ursula Rucker, the Ambrose Akinmusire Quintet, Jerry Gonzalez y el Comando de la Clave and many more.

one and we intend to remain so” - says Michael Flatly, creator and director of this award-winning international dance phenomenon, proving his vision that hearts and minds unite through music and dance. His Lord of the Dance continues to shatter box office records all over the world, leaving audiences breathless and clamouring for more.

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Satriani, when he was just 12 years old. By the age of 18 he had already started his professional music career, performing with another legend Frank Zappa.

CLASSICAL MUSIC Zagreb’s Philharmonic Orchestra Kolarac, 5 October @ 20.00 Conductor: Peri So, Soloist: Nin Feng, violin Programme: Ivo Josipović, Samba de camera for string orchestra, Bruh: Scottish Fantasy for violin and orchestra, Brahms: Symphony no.4

Academic Concert Choir Alexandrov Russian army and Emir Kusturica and his band The No Smoking Orchestra, that was scheduled previously for 12th June 2012, will be held on 26 October 2012 in Sava Center.

Aleksandrov Choir is world renowned vocal ensemble that fosters virtuosity, and their performance arouses in audience strong emotions. It comprises a choir soloists, chorus, orchestra and dancing ensemble, which makes the 146 members with its artistic engagement made ​​a great contribution to the fostering of Russian and world cultural heritage.

Famous film director Emir Kusturica

Steve Vai Kombank Arena, 30 October @ 20.00 Guitarist genius Steve Vai, will perform on 30th October at the Kombank Arena.

A role model for many musicians for over 30 years, he is not only a virtuoso on the guitar, but also a visionary of boundless creativity. This is by no means surprising, considering that he mastered his first notes, those of legend Joe

destinies into their own hands! A combined set of circumstances and coerced into acting together to try to free their common man from prison, they seek to raise money for his journey to freedom.

When they finally implement their plan they realise that the man (who is the husband of one and lover of the other) – perhaps didn’t deserve their sacrifice! This performance is realised in collaboration with the Mexican Embassy in Belgrade.

Some Like It Hot Terazije Theatre, 12 October Some Like It Hot has remained the longest running play on the Terazije Theatre repertoire. The musical’s director, Soja Jovanović, had the courage and majestic skill to successfully engage in the adaptation of Some like It Hot for the local scene. In this story of two

Zorba the Greek Terazije Theatre, 5 October Musical drama directed by Mihailo Vukobratović Following the positive experience of preparing musicians who cross-dress as women for the sake of work and a blonde beauty and her dreams about a millionaire boyfriend, but also about a real millionaire who falls in love with a man, is in fact a story about the triumph of love and beauty.

Akademski hor ruske armije Aleksandrov and Emir Kusturica & The No Smoking Orchestra Sava Center, 26 October @ 20.00

In addition to these performers, and a big surprise that follows, special emphasis will be on the German-Danish-French trio Das Kapital, which performs new interpretations of classical works of legendary composer, cabaret revolutionary and film music composer Hanns Eisler.

Lord of the Dance Kombank Arena, 20 October @ 20.00 Arguably the best dance show in the world, Michael Flatly’s Lord of the Dance has broken numerous world records: Flatly is in the Guinness Book of Records as the man with the fastest feet in the world – with a jaw-dropping 35 strokes per second, the show has been performed as many as 21 times in a row at the Wembley Arena in London and in just 10 days some 250,000 tickets were sold for the troupe’s tour of Australia, since its premiere in 1996, it has repeatedly broke the record as the highest earning tour ever.

“It’s absolutely fantastic to be number

school of pop singing, headquartered in Belgrade and Novi Sad. She has won every available prestigious music award.

& the No Smoking Orchestra will pass on their rich experience from the various venues around the world, but in a different musical style. Their performances are characterized by passion and spontainity of Balkans.

It will be certainly interesting to see a blend of the two styles of music. leaving audiences breathless and clamoring for more.

Aleksandar Madzar Kolarac, 13 October @ 20.00 As part of BEMUS, Aleksandar Madzar will perform pieces by Bach at Kolarac on 13th October.

and particularly accomplishing an artistic achievement with the performance of “Gloria”, Terazije Theatre is again collaborating with the Budva City Theatre this season, this time on an adaptation of “Zorba the Greek”.

Cigani Lete u Nebo Terazije Theatre, 7 October The musical Gypsies fly to Heaven (Cigani Lete u Nebo), directed by Vladimir Lazić, offers the most beautiful Russian songs with memorable

choreography by Krunoslav Simić in this love story about a gypsy woman and a horse rustler.

Chicago Terazije Theatre, 11 October Chicago, one of the most popular Broadway musi-

THEATRE Dva Mirisa Ruze Terazije Theatre, 4 October Two Scents of the Rose (Dva Mirisa Ruze) is a combination of drama, ballet ensemble and mariachi, directed by Slavenko Saletović.

Mexican writer Karbalido has written evolving,

graceful, fluid chamber music as a theatrical story of two women who decide to finally take their life

cals, is a mixture of passion, lust, intrigue, murder, showbiz and bribed judges and lawyers. Through the myriad of hits such as “All That Jazz” and a range of high quality and expressive choreography numbers, this Broadway hit musical in a satirical way tells the tale of America from the time of the turbulent 1920s. The story begins when unfulfilled musical actress and singer Roxie Hart, who dreams of success on the stages of Chicago, killing her lover.

In prison she meets her idol – the famous Velma Kelly. The two of them will stop at nothing to reach the finish line first in what helps them to expose extremely corrupt lawyer Billy Flynn.

Street Festival of Activism VREVA 21-22 September The VREVA Street Festival of Activism took place in central Belgrade on 21st and 22nd September, covering Vojvoda Vuk Park (Palas Park) and its surrounding streets.

With a varied, conceptually united and, above all, entertaining programme, VREVA seeks to promote values of multiculturalism, tolerance, anti-discrimination, inclusion and environmental protection. Visitors of all ages had the opportunity to enjoy good music, engaging top quality documentaries, performances and street food. They were moved and inspired by lectures and roundtables dealing with activism; they were able to engage their hands and minds in creative recycling workshops and be touched by photo exhibitions telling the stories of those who are socially most endangered and legally invisible.

Ciganlija in order to spread the idea of their creators. The goal is to motivate our fellow citizens on the positive changes and paint the world together, beginning with recycling bins at Ada Ciganlija.

The workshop is part of a project created by students of the Faculty of Architecture in Belgrade, founders of the NGO “Urban Eco Architects” - UECA. “urBINizacija” was the winning project of the competition “Responsible youth - Sustainable future”.

Cabaret Terazije Theatre. 16 October The original title of this musical is Welcome to Berlin. Cabaret is based on a piece “I am a Camera” by John Van Druten. This action “cabaret” takes place in Berlin during the 1930s. The story of this musical is about two loving couples: first

Sally Bowles, who works at cabaret club “Kit Kat”, and American writer Cliff Bradshaw and another pair of ladies: Ms. Schneider and her suitor Jew Schultz. The Broadway premiere of the musical was held in November 1966 and the play was restored in 1987. The 1972 movie based on this theatre play starred Liza Minnelli.

ART Gustav Klimt, Gallery Progres, 31 Oct. – 13 Nov. This autumn Belgrade will host an exhibition of paintings by Gustav Klimt, marking 150 years since the birth of the famous Austrian artist.

The COMPRESS Contact Bureau of Vienna, supported by Austrian jewellery company FREYWILLE, is organising this exhibition at the city’s Progres Gallery from 31st October to 13th November.

Some 15 high quality reproductions of Klimt’s paintings will be presented to the Belgrade public.

Visitors will have the chance to see reproductions of one of the most famous paintings “The Kiss”, as well as “Higija” (1907) and “Friends II” (1916/7), the originals of which were destroyed by fire at Austria’s Imendorf Castle in 1945.

use them and develop their environmental awareness.

Visitors of all ages had the opportunity to express their creativity and participate in the workshop to express their view of the importance of environmental protection. The result of the workshop, redesigned recycling bins, will be placed permanently in the area of Ada

With real entertainment and positive energy, VREVA seeks to encourage a different perception of the world and show that good change in every society are both needed and possible!

The festival is launched by Platform for activism LICEULICE and realized with the assistance of organisation Tačka komunikacije and numerous partners from Serbia and the region, as well as many different participants.

URBANIZACIJA Ada Ciganlija, 22-23 September Project “urBINizacija”, which promotes sustainable development, saw two activities held at Ada Ciganlija. The first activity was training on the impact of urban design on waste management and recycling, while the other involved creative workshops to paint bins.

The goal of the workshop is to provide people with an innovative, fun and creative approach to the idea of sustainable development and recycling. “urBINizacija” is a workshop on redesigning existing bins that would later become recycling bins that reflect the identity of the place and its relation to the environment. The redesign of bins includes painting and using appropriate materials that will convert ordinary bins into recycling collectors for paper, metal and plastic. The attractiveness of new, redesigned bins will send a visual message about recycling, inspiring people to

Researcher’s Night Belgrade, 28 September The annual Researchers’ Night was held in Belgrade in late September within the project Science in Motion for Friday Night Commotion (SCIMFONICOM).

The project endeavoured to offer Belgrade citizens several hours of an intense, interesting and unusual programme in order to enable them to get to know scientists and their work better, and to get younger visitors interested in science as a profession. The programme was held at seven different locations in the centre of Belgrade.

The purpose of the manifestation is to offer visitors attractive activities that combine science and entertainment, to organise a broad range of activities and enable direct contact between participants and researchers.

The project is organised by the Institute of Molecular Genetics and Genetic Engineering (IMGGE), the Institute for Biological Research

(IBR) and the Faculty of Physical Chemistry (FPC), as well as members of the University of Belgrade. It is supported by the European Commission.

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interview

■ By Zorica Todorović Mirković

Babken Simonjan Armenian poet, Serbophil, translator and Honorary Consul of the Republic of Serbia to Armenia

ARMENIAN

WITH SERBIAN ODES

For Babken Simonjan, connecting peoples and cultures is first and foremost a great honour, but also a responsibility, ensuring such missions should be conducted with love and affection

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wo women are responsible for Babken Simonjan, an Armenian from Yerevan, falling in love with Serbia and gaining a perfect understanding of its language, script, history, literature...

The first was Arus Sarkisjan, a history professor whose lecture about the Battle of Kosovo aroused the curiosity of a young high school student to learn more about the country of Tsar Lazar, of which he knew only that it was in the Balkans.

Simonjan did not even dream that one day he would write Cyrillic and recite the poems of Njegoš. The other woman is Irina Arbuzova, a Slavophil from whom he learnt the Serbian language with the ease of his mother tongue in her cozy St. Petersburg home. Professor Arbuzova, as if a prophet, bid farewell to her brave student, saying prophetically: “You will have a great future, you’ll make a career in the field of the Serbs and cultural ties”. The wonderful professor Arbuzova is long gone, but her words proved true.

Nowadays Simonjan is a professor of Serbian in Yerevan, as well as a poet, transla-

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tor and Honorary Consul of the Republic of Serbia in Armenia. He recently visited Serbia for a nice reason: to receive the Branko Radičević International Literary Prize, which is awarded by “Brankovo kolo” in Sremski Karlovci. This month CorD speaks to this devotee of Serbia – its history and literature, the study of being Serbian and Serbian mentality – about the importance of this and other awards, his literary work, translating and consulate duties.

■ You have received many awards. Why does this one mean so much to you?

School in Sremski Karlovci. Since then Branko Radičević became my brother of the pen, regardless of the fact that we are divided by nearly 150 years.

Awards have never been my goal and it is my strong belief that they are not a measure of a “good writer”. A good writer writes for the readers, not for prizes and medals.

However, I must admit, in some cases it is nice when a writer receives recognition through an award. In historical memory, nevertheless, a writer and his work remains, not his awards. Say for instance the masterpiece the Book of Mourning, which

Bringing together nations and cultures is a great honour, and on the other side it’s also a great responsibility. I carry out that mission with love and devotion - The Branko Radičević Award is one of my favourites for a very simple reason: Branko published his first book of poems in an Armenian printing house in Vienna in 1847, while just a few years ago I translated his famous poem “Mini Karadžić in remembrance,” which I recited at the award ceremony in the Gymnasium

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was written by Armenian poet Grigor Narekatsi and has survived for a thousand years. In the same way survive Yerznikatsi, Shnorali, Kuchak , Sayat Nova, Njegoš, Ilić, Šantić, Dučić ... None of them received a single award and no one was offended by that. But they are greats even without recognition. And that will remain so forever.

■ You’ve devoted more than half of your life - 37 years – to the formation of Armenian-Serbian links.

- Bringing together nations and cultures is a great honour, and on the other side it’s also a great responsibility. I carry out that mission with love and devotion. Armenians and Serbs were linked in the past. I am

to Prince Lazar”, then despot Stefan Lazarević’s poem “inscription on a Kosovo marble pillar”, which he wrote in 1402 and dedicated to his father. Two years ago I translated one of the most beautiful lyrical songs in the Serbian language: “Night collects century” by Petar Petrović Njegoš.

Unlike most translators, who work quickly

Babken Simonjan with Desanka Maksimović and Mira alečković

perceived as a bridge builder of our two peoples and I am endeavouring to link the “Armenian-Serbian coast” forever.

■ Thanks to your translation mission, Armenian readers can familiarise themselves with Serbian literature. How many Serbian songs and poems have you translated into Armenian so far?

- I have been translating for more than three decades, primarily the works of medieval authors. With great enthusiasm and devotion I translated the wonderful poem of the first Serbian poet Jefimije - “Praise

and immediately hand their translation over to printers, I don’t rush anywhere. I relate to a translation like to the dough needed to bake bread. This means that the dough needs to mature, to rise to perfection in order to make sure the bread is good and tasty. It is the same with a translation. It must “stand” on the desk for a few months and then be reread after a while. Only then can the translation be polished to perfection.

■ You have compiled an anthology

of Serbian poetry in Armenian. What proved decisive in your selecting of po-

ets and poetry to translate?

- Armenian publishing house “Apolon” released my anthology in 2003 under the title “Kosovo sun” and I wrote a deep and thorough preface for it, selected the poems and translated and wrote notes. This is the first anthology which presents a comprehensive picture of Serbian poetic thought to Armenian readers. Additionally, in 2002 I published a nice bilingual selection of Serbian contemporary poetry on Armenia entitled “Land of Ararat.”

I was very strict in selecting the poets that found their way into the anthology. For me the basic principle is that poets are of good quality, and that their works offer a true picture of Serbia. Starting from that, I chose those poets who used word and rhyme to defend their homeland, whose works are the true Serbian national identity.

I am personally acquainted with many of the poets whose works made it into my anthology and I am particularly a fan of the poems of Vladislav Petković Dis, Milutin Bojić, Desanka Maksimović, Stevan Raičković, Ivan V. Lalić, Branislav Petrović, Matija Bećković, Momir Vojvodić, Đoko Stojičić, as well as the works of poets of the middle and younger generation.

■ You began translating Njegoš’s “Moun-

tain Wreath” (Gorski Venac). Why did you opt for this challenging translation work and is Njegoš understandable and grasped in the Armenian translation?

- Njegoš is a great and his works represent the peak of Serbian poetry. What attracted me to Njegoš’s work? His messages, wise verses, philosophical reflections and diplomatic skills. I often think about Njegoš the bishop and Njegoš the poet, his religious and

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poetic activities. “Mountain Wreath”, it is my deep conviction, is different and stands out from all of his other works with its wisdom and strength. With that I don’t want to say that Njegoš’s other works are not immortal, but this poem of his is undoubtedly a masterpiece and one of the jewels adorning the world’s cultural heritage.

I chose to adapt this work for numerous reasons. For us Armenians “Mountain Wreath” has a double meaning: the poem, as I said, was first published in Armenian by the Mechitaristen Congregation print house in Vienna in 1847, and secondly because it talks about the centuries-long struggle for survival against Turkish executioners. Armenians will understand all too well the good bishop’s messages and wise thoughts as our struggle in history was almost the same. “Mountain Wreath” is the best example of how one should love and safeguard one’s homeland, how Serbdom should be defended and how you should preserve your dignity.

term projects. Compiling dictionaries is carried out by institutions, linguists, many scientists and the Academy of Sciences, but in my case I’m doing all the work myself. For such a big project it is important to have a good knowledge of both languages, as well as the culture and history of both nations.

This will be the first such dictionary, which

■ Another very interesting major project you’re working one is composing a Serbian-Armenian dictionary. How is that job progressing?

- Developing the Serbian-Armenian Dictionary is one of my extremely rare and long-

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-Every nation must respect its script, origins, customs, roots, because if they do not respect that and it is lost, that nations loses its historical memory. And the loss of that historical memory, in fact, means the loss of its identity.

Language and script are the mirror of every nation, a symbol of dignity, and through them the entire history, literature and customs of a nation are reflected. I am the author of five books in Serbian and several other books in Armenian. Not one of my books is published in the Serbian Latin script. It is the obligation and duty of Serbs to write in Cyrillic. I have nothing against them knowing the Latin script, but their script is Cyrillic.

■ Does your function as Honorary Con-

sul of the Republic of Serbia in Armenia hamper your literary work?

■ Many scholars of Njegoš believe and claim that this work is untranslatable. Do you agree with that?

- Absolutely not. It’s important to stay true to the original, but for the translation, on the other hand, to be adapted to the laws of the language into which it is being translated. I am a proponent of just that sort of approach and those methods of working. I did not alter in the slightest Njegošev’s poetic metre of 10; I stayed true to his epic decasyllable metrics.

It was absolutely not a problem for me to make a ten metre, because this form appears in Armenian poetry and, secondly, as a writer I have a lot of my own poems in decasyllables.

To date I have translated close to 450 poems and published only one monologue of Bishop Danilo (Behold the devil with seven coasts...).

Adapting Gorski Vijenac is a big project that demands patience and financial assistance.

Translating Njegoš for me is enjoyment and also a kind of mission; something sublime and divine. I would like to finish that job.

contribution to the preservation of the oldest Serbian script or do you simply like the Cyrillic alphabet?

Not one of my books is published in the Serbian Latin script. It is the obligation and duty of Serbs to write in Cyrillic will cover 30,000 words and phrases, with a short grammar section. Once, before I began putting the dictionary together, one of my Serbian friends asked me if I knew the number of people living on our planet. “Of course I know,” I said, “five billion.” To which he said that of all those people only I was fated to make the Serbian-Armenian dictionary, because there is no other Armenian or Serb who has an equal knowledge of both languages. “You are the only one!” – he said. He was right. So far I have completed eight letters. I have shown my work to Armenian and Serbian linguists, who have rated it highly. I truly hope I’ll soon be able to complete this job too.

■ The books that you’ve published in Serbian are printed in cyrillic. Is that your

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- It is a great honour for me that I am an honorary consul of the country I dreamt about back in my childhood, way back in 1965. This honour was a pleasant surprise for me, but also a great responsibility, towards both peoples, and most of all - Serbian. That function complements my literary activities wonderfully. Literature is my destiny and writing my daily need, while my duty as consul is the result of my 35 years of selfless and dedicated work. The time I dedicate to consulate obligations is never to the detriment of my writing. Both jobs are carried out with great pleasure. It is known that in the past Serbian writers, artists and scholars engaged in diplomacy, let us mention only: Milan Rakić, Jovan Dučić, Branislav Nušić, Ivo Andrić… I feel very nice that I am also in this wonderful company. If a diplomat is also a writer, that can only be an advantage.

■ What are you preparing on your writing plan?

- My writing plans are inexhaustible. I currently have three manuscripts (in Armenian, Russian and Serbian), while I’m working in parallel on other projects. My drawer is always full and I always have something to offer publishers and magazines. I expect that for the next twenty years, with God’s help, I will be in full creative force and that I will present readers in Armenia and Serbia with the most beautiful part of our literature. ■

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sport Paralympic Games 2012

"Get ready to be moved..."

The words “Made in Britain” have been stamped on London 2012, Lord Coe declared in an emotional speech at the Paralympics closing ceremony

The Paralympics opening ceremony

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either sport nor disability would be thought of the same way after the Paralympians “lifted the cloud of limitation”, the London 2012 chairman told a packed Olympic Stadium.

“There are some famous words you can find stamped on the bottom of a product.

Words that, when you read them, you know mean high quality, skill, creativity.

“We have stamped those words on the Olympic and Paralympic Games of London 2012. London 2012. Made in Britain,” Lord Coe said.

Fans from the around the world have flocked to the Paralympic Games. Here are some of their experiences.

Nations across the globe were not only represented among participants in the Paralympics – the crowds attending events had a real international profile too.

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Teacher Gwenn Hamon was there with youngsters from the Campus Sport Dinard sports school and college in Rennes, France.

They spent a week in the UK and several days at the Paralympic Games, attending goalball and swimming during the day.

“We are mainly looking for French athletes,” he said, describing the atmosphere in the Olympic Park as “great”.

Brazilians Fernanda Orrigo and Renata Fujiwara cheered on the unsuccessful women’s goalball team in the women’s quarter-final event in the Copper Box arena.

Orrigo, an IT worker, has lived in the UK for 10 years and is with her Australian partner, Stephen Amstutz, who also works in IT and has been in the UK for 15 years.

Fujiwara is with her 15-month-old baby and partner Anthony Trim, a British accountant. She has been in the UK for nine years and despite having Japanese family, she loyally supported her national team.

The group of friends were enjoying coming into the park and being able to get tickets for sports they might not have known about, such as goalball.

“I would not have looked at that,” said Trim. “It’s important to learn a bit more about other sports.”

Hairdresser Jeannica Jalmestal has come from Sweden to support her sister, Josefine, who was playing in the goalball

Rustam Nurmukhametov of Russia, prior to his Men’s 100m Freestyle S11 heat (for swimmers with complete or nearly complete loss of sight)

tournament.

“This is such a big event,” she said, “it has been great.” She said the Paralympic Games had given a high profile to the sport.

events, but feels the crowds are supportive of all nations.

South African Shameemah Williams has been in the Olympic stadium watching track

Roman Pavlyk (Ukraine):

“I am not married yet, it is quite complicated, but I am now very, very hopeful to find my other half”, speaking after taking gold in the long jump F36 Elena Winter, from Russia, has lived in the UK for more than 14 years and works in London’s top store, Harrods.

She brought here six-year-old daughter Emma to the Paralympic Games on the last day of the school summer holidays and the pair enjoyed the swimming events and attended basketball on another day.

“It’s been a very good experience,” she said.

“At the swimming I really enjoyed the atmosphere. People look more happy generally, it’s good to see people so entertained and happy and it’s good for the economy.”

She has supported Russian athletes at

and field events with her London Underground colleague, New Zealander Vicky Balderston. Williams has been in the UK for more

Felipe Gomes (Brazil):

“I spoke with my son today, he said he saw me running on TV and that he runs faster than me.” - after winning the 200m sprint T11 than eight years and Balderston for 16.

Balderston enjoyed seeing the Olympics on TV and so bought tickets for the Paralympic Games for the pair of them.

Noam Gershony (Israel):

“I am going to dedicate my medal to my grandmother, who is having her 88th birthday tomorrow.” - after winning gold in the men’s quad wheelchair tennis singles United States’ Matt Scott falls during a men’s Group A preliminary wheelchair basketball match against Australia

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“When the Olympics were on I was really excited and searched and found a few tickets for the Paralympics, so I got what I could,” she said. They watched track and field events in the Olympic stadium and had a fabulous time. “It’s amazing, incredible.”

Sixteen-year-old student Mohamed Naim, from Portugal, was with family who live in Britain and had bought tickets for events throughout the Games.

Wrapped in a Portuguese flag, he enjoyed seeing his nation’s athletes in the heat of the men’s 4x100m relay T11/13. “Though they came last,” his family reminded him.

Walter Haag is originally from Austria, but has lived in the UK for six years. He was wearing an Austrian football shirt and had tickets for the seven-a-side football in the Riverside stadium, but was unsure whether he would get to see any Austrian athletes during the day.

However, his countryman Gunther Matzinger was taking a gold medal in the men’s 400m T46 that morning.

Haag had also enjoyed watching the equestrian Paralympic events on TV, where his country’s Pepe Puch took a gold medal in the individual freestyle test grade 1b.

He is a consultant in renewable energy. “So I’ve been enjoying looking at the wind turbines in the Olympic Park,” he said.

New Zealanders Roger and Lorraine Seaton are in the UK for ten weeks, visiting their daughter Suzanne Taylor, her husband Paul, and grandchildren Oliver, six, and two-

year-old Nathan. The whole family spent the day at the Games on the last day before Oliver returned to school.

“It’s very well organised, brilliant, an amazing atmosphere,” said Roger Seaton.

And Sergi Blasco, from Spain, was loving the atmosphere as he supported his friends, Paralympic athletes Joan Borrisser Roldan and Martin Parejo Maza, taking photos of them with fans in the Olympic stadium.

“It’s a unique opportunity from them,” he said, and the short trip from Barcelona made it possible for him to come and support them. cordeditorial@cma.rs

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sport

PARALYMPICS & US Despite the great success of our athletes at the Paralympic Games in London this did not open the door to them receiving an invitation to appear on the "balcony of glory"

Paralympians are formally welcomed at Terazija

G

et ready to be inspired, to be mesmerised; prepare to be touched ... These Games will be attended like never before. These Games will be remembered," said Lord Sebastian Coe, twotime Olympic 1,500-metres champion and Chairman of the Organising Committee of the Olympic and Paralympic Games in London, speaking at the opening of the Paralympic Games in London. He was not wrong.

Venues in London were just as full with spectators as they had been for the "proper" Olympics, while participants were cheered by equally strong ovations and applause as they smashed Paralympic and world records, demonstrating and proving that their physical handicaps are not an obstacle to achieve the highest level of sports mastery. Among them were Serbia’s paralympians.

Serbia was represented at the Paralympic Games by Draženko Mitrović, Tanja Dragić, Željko Dimitrijević, Miloš Grlić (athletics), Zlatko Kesler, Borislava PerićRanković, Nada Matić (table tennis), Siniša Vidić, Dragan Ristić, Živko Papaz, Laszlo Šuranj, Mirjana Ilić-Đuričin (shooting) and 66 |

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Milan Petrović (cycling), a total of 13 athletes, who won five medals collectively.

This marked the biggest success in the history of our Paralympic sport. Željko Dimitrijević (club throw) and Tanja Dragić (javelin) won gold medals and set new world records, while Zlatko Kesler, Borislava Perić-Ranković and Draženko Mitrović, who broke the world record, all won silver medals and remaining just a step

Our athletes with disabilities have previously represented Serbia, as well as Serbia & Montenegro, FR Yugoslavia and SFR Yugoslavia, at major competitions and won medals, but their performances at the competition in London surpassed all previous appearances – not only in terms of the number and type of medals, but also in terms of the large publicity among the local public, and not just the sporting public.

- Until these Paralympics some 95 percent of people in Serbia did not know that the games exist. Now perhaps only five percent still do not know about them. Thanks to the media, Paralympic sport has now entered all of our homes, and the results of our Paralympians managed, such was the effect in the country, to make our people happy. The competitors who represented Serbia fully justified the confidence of those who chose them and, hopefully, the expectations of the nation – said Zoran Mićović, President of the Paralympic Committee of Serbia, speaking to daily ’Politika’ in London.

And that's really how it was. For the first time there were firsthand reports from the Paralympic Games, sent from reporters in London who were reporting for Serbian media companies like Politika (articles also published in Sportski žurnal), Sport, agency Beta and website of Novi Sad’s Dnevnik. This "turnaround" in media relations represents a major shift in the relationship of the "public" towards sport for people with disabilities and does not change the fact that this trip was realised with substantial support from the Paralympics Association of Serbia, among other

The balcony of City Hall remained out of reach for these athletes, despite all the great successes of our sport having been celebrated here since 1995 away from medal success, in fourth place, came Siniša Vidić and the women's table tennis team. Not onoe of our national team members gave up during the event. They all fought to the very end and gave their all...

That is the sporting dimension of the participation of our athletes with disabilities at the Paralympic Games in London, but it’s not the only dimension worthy of a mention, although they marked the country’s biggest success to date in the games.

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things, even for the most attractive competition the media seek financial assistance from sponsors or sporting associations.

However, neither this coverage, nor the fact that our paralympians won more medals and were better placed among the medal winners (39:42) than the full Olympic team and proved the most successful team from the former Yugoslavia, this did not lead them to the "Balcony of glory" of Belgrade City Hall, where Olympians earlier shared their

joy with Belgraders. Nor were they awaited by anyone at Nikola Tesla Airport, other than their closest friends and relatives.

If it was not for Serbian President Tomislav Nikolić, who hosted an official reception for them in the presence of Minister of Sport Alisa Marić, the highest award received by the Paralympians would have been their reception at the Serbian Chamber of Commerce. At a meeting with journalists at the

reach for these athletes, despite all the great successes of our sport having been celebrated here since 1995. Who is to blame and whose failure that was has not been established, nor does it need to be determined.

The organisers of the gathering under the "balcony" are usually people from the City Assembly, but the initial suggestion is supposed to come from sporting associations, though during the 1990s it was more com-

became an expected social event marking every major sporting success.

Mayor Dragan Đilas tried to lessen this shameful attitude towards paralympians by using his position as president of the Basketball Federation of Serbia to invite the country’s paralympians to attend the basketball match between Serbia and Israel, at which spectators rewarded them with a round of applause. However, the warmest and certainly

The organisers of the gathering under the “balcony” are usually people from the City Assembly, but the initial suggestion is supposed to come from sporting associations city’s Hotel Moskva worthy medal winners and representatives of Serbia were also congratulated by British Ambassador to Serbia, Michael Davenport, and those who did not make an appearance at Nikola Tesla Airport: State Secretary for Sport, Predrag Peruničić, Deputy Minister for Labour, Employment and Social Affairs, Vladimir Pešić, President of the Sports Federation of Serbia, Aleksandar Šoštar, president of the Serbian Olympic Committee, Vlade Divac, President of the Sports Federation of persons with disabilities of Serbia, Mijailo Sarić and others.

The balcony of City Hall remained out of

Paralympics in figures

• The London Paralympics 11 days of competition included 4,200 athletes from 164 countries in 20 sports and 503 events, winning a total of 1,522 medals.

• The most medal were won by China – 231 (95 gold, 71 silver, 65 bronze), followed by Russia with 102 (36, 38, 28) and team GB with 120 (34, 43, 43).

•The most successful participant is 20year-old Australian swimmer Jacqueline Freney with 8 gold medals, while the same number of medals – 5 gold, 2 silver and 1 bronze – were won by American swimmer Jessica Long and Australian swimmer Matthew Cowdrey.

Thousands of Londoners turn out to cheer on Paralympic athletes as they travel on floats during 'Our Greatest Team' parade through central London.

mone for such initiatives to come from the state or even political parties. At that time the celebration of sporting medals was used for political purposes, but over time is

• Paralympians broke 422 Paralympics and 252 world records.

- Some 2.7 million tickets were sold for the Paralympics’ events (1.8 million were sold at the previous Games in Beijing in 2008).

• More than 1.3 million Twitter tweets sent during the Games contained the word "Paralympics".

• The official website of the Paralympic Games had 25 million visits during the games.

• Footage of the incredible forehand shot of British table tennis player David Wetherill against Germany's Thomasz Kusiak has been watched more than five million times on Youtube.

most emotional celebration was staged for them on Terazije, organised by true friends and fans of sport, who arranged the event through social networks and greeted our Paralympic heroes by cheering "Champions"!

In truth there weren’t many wellwishers, but that did not bother Draženko Mitrović, Tanja Dragić, Željko Dimitrijević, Miloš Grlić, Zlatko Kesler, Borislava PerićRanković, Nada Matić, Siniša Vidić, Dragan Ristić, Živko Papaz, Laszlo Šuranj, Mirjana Ilić-Đuričin and Milan Petrović, nor the head of our mission at the Paralympic Games, Zvonimir Rot, selector Vlastimir Golubović, Secretary General Bojan Jaćimović and President of the Paralympic Committee of Serbia, Zoran Mičović, because – it came from the heart.

We believe that the "balcony of glory" will be open to them when they return from Rio in 2016. ■ cordeditorial@cma.rs

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97 October | 67

tourism

■ Photo by Dragan Bosnić/www.serbia.travel

Spas of Serbia

Havens of

health

mud. The healing waters that are sourced from five springs are slightly mineralised and have a temperature of 36 to 38°C. Accommodation is provided by the Niška Banja Health Centre and private accommodation.

Contact: +381 (0)18 502010; www.radonnb.co.rs; www.niskabanja.net

Accommodation is provided by the Gamzigrad Special Hospital for rehabilitation and private accommodation.

Contact: +381 (0)19 450443; office@gamzigradskabanja.org.rs; www.gamzigradskabanja.org.rs

Sokobanja

Aids in the treatment of rheumatism and diseases of the digestive organs, functionality disorders of the heart and blood vessels, as well as neuropsychiatric illnesses.

Bogutovačka Spa is located in central Serbia, 200km south of Belgrade and 23km from Kraljevo, in the valley of the lower River Ibar, at an altitude of 520m/asl. Due to its considerable altitude and position in a mountain valley, this resort is classed as an air spa. It has two springs of medicinal mineral water with a temperature of 24 to 27°C. It is rich in radioactive elements, hydrogen sulphide and silicic acids. Treatments here include bathing and drinking mineral water.

Accommodation is provided by private holiday apartments and rooms.

Aids in the treatment of milder forms of hypertension, chronic rheumatism and anaemia.

Sokobanja’s six hot springs are among the most radioactive in Serbia.

The water temperature ranges between 28 and 45°C, while emissions of radioactive gases are so great that every visitor is exposed to mild inhalaSOKOBANJA

Bogutovačka banja

This month we recommend some of Serbia’s top out-of-town destinations for those seeking rest, relaxation, recuperation and recovery from the toils and troubles of today’s world Mataruška banja Aids in the treatment of rheumatic, neurological and gynaecological illnesses, damage to the central and peripheral nervous system, peripheral vascular disease and pulmonary tuberculosis.

Mataruška Spa is located on the right bank of the River Ibar some 180km from Belgrade and 8km from Kraljevo. Surrounded by the mountains of Stolovi and Čemerno, it is rich in mineral springs and has numerous ‘baths’, the most popular of which are the “Staro” (Old) and “Novo” (New) baths.

tion which has a beneficial effect on the respiratory system. Sokobanja, the first ecological municipality in Serbia, is located 234km southeast of Belgrade and 60km northeast of Niš.

It is around 400 metres above sea level. A real haven of authentic folk art, Sokobanja offers a meaningful and original way of living in a natural setting.

Accommodation is provided by hotels, private lodgings, holiday apartments and rooms to rent.

Contact: +381 (0)18 833232; www.sokobanja.com VRNJAČKA BANJA

Accommodation is provided in hotels, holiday apartments, villas and houses for rent, as well as at the “Merkur” specialised treatment centre.

Contact: +381 (0)36 611105; tsc_vb@ptt.rs; www.vrnjackabanja.co.rs

Niška banja MATARUŠKA BANJA

The water has a temperature ranging from 48°C to 52°C and boasts the highest concentration of sulphur in southern Europe - 127 milligrams per litre.

Accommodation is available in apartments and hotels.

Contact: +381 (0)64 4838614; www.mataruskabanjasmestaj.com

Gamzigradska banja Aids in the treatment of peripheral vascular disease, arterial hypertension, connective tissue diseases, rheumatism of the joints and other forms of rheumatism, orthopaedic disorders and post-traumatic conditions, anomalies in childhood develop-

Aids in the treatment of rheumatism and cardiovascular diseases, motor system diseases, gynaecological problems and respiratory illnesses.

Niška Banja is located in southeast Serbia, directly adjacent to the main Niš - Sofia national road, at the foot of Mount Koritnjak, at an altitude of 248m. It is 10km from the city of Niš and 250km from Belgrade. Natural healing factors at Niška Banja include a mild, temperate continental climate, thermo-mineral water and natural mineral-rich

BOGUTOVAČKA BANJA

Contact: +381 (0)36 423762; www.bogutovackabanja.net

Banja Vrujci Aids in the treatment of urinary tract infections, neurasthenia, musculoskeletal and motor system diseases, as well as chronic gynaecological illnesses Vrujci Spa is located in the valley of the River Toplica, in the foothills of the mountains of Divčibare and Rajac, about 90km from Belgrade. This spa has thermal springs of sulphurous and slightly radioactive water, as well as medicinal mud. There are five major springs and several minor sources, with temperatures ranging slightly from 26 to 28°C. Mineral water here emerges from the mud over an area of approximately 200m by 60m.

Covering the body in the bluish mud, coupled with exposure to the sun, helps in the treatment of various rheumatic diseases.

Accommodation is provided by the Hotel Vrujci, private villas, holiday homes, apartments, chalets and rooms.

Contact:+381(0)143426340; www.banjavrujci.net

Vrnjačka banja Aids in the treatment of diabetes, jaundice post-recovery conditions, stomach and duodenum infections, as well as diseases of the kidney, bladder and urinary tract.

Vrnjačka Spa is Serbia’s largest and most famous health spa and has attracted guests to its centre for rest and recreation for millennia. Located around 200km south of Belgrade, the first health spa here was built and used by the Romans from the 2nd to the 4th centuries AD. It is the only site of healing in the world to boast four different types of high-quality mineral waters and different medicinal properties - three cold springs and one hot - within just three square kilometres. This ensures Vrnjačka Spa has exceptional importance as a health and tourist destination.

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GAMIZGRADSKA BANJA

NIŠKA BANJA

ment, neurological disorders and gynaecological problems.

The Gamzigrad Spa is located in eastern Serbia, 220km southeast of Belgrade and 11km west of Zaječar. Its micro-climate has the traits of continental and sub-mountain regions and it is rich in fresh and clean air, beautiful nature, greenery and flowers. Surrounded by forested hills, Gamzigrad represents a very pleasant and tranquil destination for healing, relaxation, recreation, sport and fishing. The spa has numerous thermo mineral springs with a temperature of about 42°C.

BANJA VRUJCI

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97 October | 69

Ribarska banja Aids in the treatment of orthopaedic, rheumatic and degenerative diseases.

Banja Vrdnik Aids in the treatment of joint and spinal column problems, all forms of rheumatism, soreness syndromes of different backgrounds, respiratory and gynaecological disorders and migraine conditions.

Vrdnik Spa is located on the slopes of Fruška Gora, just 20km from Novi Sad and around 80km from Belgrade. It is known for its thermal healing waters that rise from the great depths of a former coal mine. Thanks to its clean air, Vrdnik is also classed as an air spa. Its waters are classified as homoeothermic, with a temperature of around 32.8°C.

Banja Koviljača Aids in the treatment of rheumatic diseases, degenerative changes in the spine and joints, osteoporosis, minor damage to the central nervous system, peripheral nerve lesions, muscular disease, certain gynaecological and skin diseases, sterility etc.

RIBARSKA BANJA

Ribarska banja (Fisherman’s Spa) is located in a forested area at an altitude of 540m/asl in the valley of the River Ribarska. It is some 290km from Belgrade and 100km from Niš.

There are six sulphurous mineral water springs with temperatures ranging from 16 to 28°C. The water is used for bathing, drinking and rinsing.

This spa’s springs were used by Romans as far back as the 4th century, while today it boasts the Ribarska Banja Institute for Treatment and Rehabilitation, which has several covered swimming pools filled with natural mineral water of a temperature up to 39°C. Accommodation is provided in villas, with a total of 570 beds, and private accommodation.

Contact: +381 (0)37 865270; www.ribarskabanja.rs

Sijarinska banja Aids in the treatment of the musculoskeletal system, sciatica, lumbago, stomach disorders, kidney

and urinary tract illnesses, liver disease, biliary tract and pancreas infections, gynaecological diseases, pulmonary diseases, neuroses, milder forms of diabetes and conjunctivitis.

Sijarinska Spa is situated in a dense forest in the valley of the River Jablanica, 330km south of Belgrade. It has 18 mineral springs within a radius of just 800 metres, with a temperature ranging from 32 to 72°C. All of these springs have different physical and chemical compositions and temperatures. The spa also has two hot water geysers with eight-metre columns that eject water every 10 minutes.

Both are unique in Europe.

Treatment is carried out at the Gejzer Institute for Specialised Rehabilitation, which encompasses a medical unit with the latest medical equipment.

Accommodation is provided by the Gejzer Hotel and Special Hospital, as well as private accommodation.

Contact: +381 (0)16 895128; office@gejzer.rs; www. gejzer.rs 97 October 2012

This spa town is home to the Ravanica Monastery and the Vrdnička Tower, dating back to Roman times. As many as 16 Fruška Gora monasteries are located nearby. The town has numerous churches, museums, a magnificent baroque fountain and other attractions.

Accommodation is provided at the “Termal” Institute for Specialised Rehabilitation, as well as private accommodation in villas, holiday apartments and rooms.

Contact: +381 (0)60 3773399/(0)66 9671447; termal@ptt.yu; www.banjavrdnik.org

Banja Koviljača is one of the most beautiful and healthy spa resorts on the Balkan Peninsula, situated between the River Drina and Gučevo Mountain, just five kilometres from the Bosnia-Herzegovina border and 135km from Belgrade.

Rich springs of sulphurous water, healthy mud, good climatic conditions, as well as numerous cultural and historical monuments, are an enticing lure for the development of tourism in this area.

Accommodation is provided by private rooms and apartments, as well as at the Specialised Rehabilitation Hospital, which is equipped with 416 beds in single and double rooms and is classified in the “B” category of hotel standards.

Contact: +381 (0)15 818270; banjakov@eunet.rs; www.banjakoviljaca.rs

Prolom banja

Atomska banja

BANJA VRDNIK

Aids in the treatment of kidney, urinary tract and digestive tract infections, skin disorders, peripheral vascular disease and rheumatism.

Prolom Spa is located in southern Serbia, 85km from Niš and 23km from Kuršumlija, on the southern slopes of Mount Sokolovica. Prolom’s waters belong to the rare group of waters with high medicinal values, which provide the possibility of treating a very wide range of ailments. The main therapeutic values are alkalinity, the presence of ozone and silicon acids, as well as low fluorine content that allows the water to be consumed in unlimited quantities. Treatments are also carried out in mud baths.

Accommodation is provided at the “Prolom Banja” Institute for Rehabilitation, the B-class Radan Hotel’s 440 beds, as well as 1700 beds in private houses.

Contact: +381 (0)27 88111; marketing@prolombanja.com; www.prolombanja.com

SIJARINSKA BANJA

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Aids in the treatment of rheumatic and neuropsychiatric diseases, multiple sclerosis, diseases of the gastrointestinal tract and vascular diseases.

ATOMSKA BANJA

PROLOM BANJA

Atomska Banja (Atomic Spa) is situated between Čačak, Gornji Milanovac and Mrcajevci. It is 140km from Belgrade and 18km from Čačak.

The Atomic Spa is situated in the valley of the River Banja, on the slopes of Mount Vujan in a dense forested area. The mountain air is clean and the area offers magnificent peace and tranquillity.

Due to its favourable climate and unspoiled nature, this is an ideal place for people who are exposed to stress and the harmful effects of air, water and food.

Accommodation is provided by the dispensary station and chalets.

Contact: +381 (0)32 822063; recepcija@atomskabanja.com; www.atomskabanjagornjatrepca.rs

OMEGA Travel provides services such as Corporate Travel Management, Reporting and Expense Management Solutions, Group Meetings or Corporate Events, Meetings and Incentive programs, Team Building programs, Luxury Executive Leisure Travel Services.

OMEGA Travel offers the most competitive prices for specific destinations . We create a wide range of customised corporate travel solutions with the ambition of freeing our clients, so that they can apply their energy and focus on the business at hand.

Our complete packages include: EVENT REGISTRATION we manage the payment of participation fees, event registration and offer any other assistance that is needed; HOTEL ACCOMMODATION we provide hotel accommodation for our clients worldwide; TRANSPORT we can provide flight tickets to all destination worldwide, arrange bus and local transfers; FESTIVE DINNERS we can organize exclusive dinners for our clients; CONFERENCE ROOMS we manage the bookings and set up of the rooms where our clients can operate their meetings; GUIDED TOURS we have established contacts with local partners who can deliver the best programs for our clients.

Majke Jevrosime 14A, 11000 Beograd, Srbija Tel. +381 11 30 33 907, 30 33 908, 30 33 380 Fax. +381 11 30 33 114; Mob. +381 65 30 33 433 www.omegatravel.rs office@omegatravel.rs cordeditorial@cma.rs

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97 October | 71

chill out

Mum shaves numbers into quads' heads The mother of identical quadruplets has shaved numbers into her sons’ hair to help teachers and classmates tell them apart.

Mum Tan Chaoyun, from Shenzen in China’s Guangdong Province, shaved the heads of her six-year-old boys with the numbers one to four.

She took the drastic step before they started

Putin takes to the air to help cranes

Strip club claims lap dances are art

Russian president Vladimir Putin, who has previously tracked a Siberian tiger and posed with a polar bear, recently took his love of wildlife to new heights by flying with cranes, in order to lead them on a migration route.

Putin, who has communed with wild animals several times as part of an effort to create the image of a clean-living, nature-loving person, this time donned a baggy white costume, helmet and goggles and flew in a motorised deltaplane light aircraft surrounded by several young cranes that were born in captivity.

“They got used to it. They are not afraid; they are overtaking the deltaplane,” said a smiling Putin after landing.

“They are overtaking, approaching the wing from the left, from the right, from above.

Well done. Beautiful guys. Cute. They are three months old, but already quite big.”

A New York strip club is hoping to dodge a huge tax bill by claiming its dances are works of art. Nite Moves argues it’s so-called ‘couch sales’ are ‘live dramatic or musical arts performances’ equivalent to theatre or ballet.

Andrew McCullough, attorney for the club, said: “If you saw what these dancers do, you’d be saying ‘It’s not the Bolshoi, but it’s good’.”

The strip club’s bid is being backed by a cultural anthropologist who has studied exotic dance and visited Nite Moves.

“It’s definitely a form of art,” one dancer at Nite Moves told the AP news agency. “Some girls are up there practising for hours when nobody’s in here.”

But state solicitor Robert Goldfard argued: “If the women kept their clothes on, no one would be coming to this bar for the dance performances.”

A painting believed to be the work of famous French Impressionist Renoir is set to be sold at auction after a woman bought it for less than €40 at a flea market in the U.S. state of Virginia.

Experts believe the painting is the Paysage Bords De Seine, one of the artist’s river scenes painted along the Seine in Paris.

The painting is set to be auctioned in the 97 October 2012

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An American casino has claimed a new world record for the biggest ever burger after a mammoth bacon cheeseburger was cooked up and served by the Black Bear Casino Resort near Carlton in Minnesota.

Some three metres in diameter and weighing 914kg, Guinness World Records representative Philip Robertson was there to

verify the record for the biggest ever burger.

He called the feat a result of “remarkable teamwork” and said the burger “actually tastes really good”. According to a Duluth News Tribune report, the previous record burger was a mere 400kg.

Black Bear’s burger included 27kg of bacon, 23kg of lettuce, 23kg of sliced onions, 18kg of pickles and 18kg of cheese. It took about four hours to cook and an industrial crane was used to flip the burger.

Mars warns chippy over deep-frying A Scottish chip shop owner has been told that she can’t apply for protected geographical status for her deep-fried Mars bar, which has become an infamous Scottish ‘delicacy’ frowned upon by the chocolate bar’s manufacturers.

The chip shop owner, who first served up the battered bar 20 years ago, has been warned against claiming special status for the fatty treat, under the EU’s Protected Food Name Scheme.

Mars’ lawyers wrote to the owners of the Carron Fish Bar in Stonehaven, Aberdeenshire, saying they wouldn’t support such an application because the deep-fried bar is against its commitment to healthy living. The confectionery giant also wants a disclaimer on the chip shop’s menus pointing out that deep-frying the Mars bar isn’t endorsed by its makers.

Monkey 'found in smuggler's trousers'

Airport officials in India have arrested a man on suspicion of smuggling after finding a small primate in his underwear while he was attempting to board a flight bound for Dubai just after arriving from Bangkok. Two other passengers were also detained.

The 17cm-long Loris monkey, which is native to India and Southeast Asia, was found during a routine security check, according to the Press Trust of India.

A second Loris was also found in a rubbish bin at the Indira Gandhi International Airport. “They had abandoned him as they were unable to carry him,” a senior security official told the news agency. The passengers, named as Hamad Al-Dhaheri, Mohammed Al-Shamsi and Rashid Al-Shamsi, were handed over to the Wildlife and Customs Department for further questioning and were later arrested by customs police.

'Lost Renoir' found at U.S. flea market

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U.S. casino's recordbreaking burger

primary school, as she was worried that the boys would get mixed up.

“My sons are identical, even to me” said Tan, who reckons the only difference between them is the shape of their eyelids.

“I could only tell the difference between them by having different ankle tags on them before they turned 18 months old.

“Even now their father can’t tell which is which.

Sometimes he punishes the second one for something the third one has done.”

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States and is expected to fetch more than $100,000. A Renoir plaque on the frame prompted the woman to have it analysed.

Anne Craner, director of fine arts at Potomack auctioneers in Virginia, said: “The lady brought it in, she was very excited, but she didn’t know. She opened up the bag and straight away it just looked right.

“I mean, it’s the colour, it’s the vibrant colour; it’s the pinks and the purples. Renoir is known for his rapid brush strokes. And colour is really important with Renoir.”

Shop owners asked to change name Owners of a shop in India have agreed to change its name after protests. The shop, which sells Western menswear, opened in Ahmadabad in western Gujarat last month with the name “Hitler” spelled out in large white letters above the entrance, complete with a swastika as the dot on the “i”. Members of the tiny Jewish community in the city condemned the name, while a senior Israeli official raised the

matter with the state government. Co-owner Rajesh Shah said he had chosen the name in memory of his grandfather - a strict disciplinarian referred to by the family as “Hitler”. Mr Shah said he’d received dozens of calls asking him to rename the shop. Israel’s consul general in Mumbai also asked state officials to intervene.

Manish Chandani, another co-owner of the store, said: “I plan to change the store’s name very soon. There is tremendous pressure from the government and the Jewish community to drop the name. cordeditorial@cma.rs

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97 October | 73

techno talk Emerging tech that’s just bursting onto the scene

■ by Marko MILOšEVIć

Hottest tech you need to own

This month CorD brings you the latest top gadgets and new tech devices to record, communicate and entertain you through the autumn months

Classy & Compatible Sennheiser MOMENTUM headphones

€260

Delivering stellar sound is simply not enough for this style-conscious world we now live in and having realised that very thing, Sennheiser has served up its latest headphone collection that is more about looking the part. There’s little detail on the tech nestled inside, but headbands and earpads are made from soft leather and English tannery Pittards with a 3.5mm cable that hosts an integrated remote and mic which make the MOMENTUM headphones iPhone friendly.

Good Looker HP Envy x2 Hybrid

Multiple Viewing Samsung ES9500 OLED TV

€TBC | Sep.

We’ve come along way since Sony’s bedroomsized OLED offering from a few years ago, and now you can get a richer, more colourful picture in bigger 55-inch screen surroundings. Aside from deeper blacks and the impressive contrast ratio, prospective owners can expect faster response time compared to LCD sets which will eliminate motion blur and with Samsung’s Multi-View you can watch two different programmes on the same screen via the included 3D glasses that also have integrated headphones to avoid the leaking sound of Walford’s finest.

Pro Makeover Sony Xperia S tablet

Next Generation Canon EOS 650D

€800

The new Canon EOS 650D is a user-friendly enthusiast-level D-SLR full of new tech and functions, including a new touch-screen and much more than a simple upgrade from the Canon EOS 600D (which it now sits above in the range). As well as helpful intelligent auto modes, there are a wealth of advanced features available as your camera skills and photography progresses. The EOS 650D is equipped with a new 18-megapixel Hybrid CMOS sensor and powerful Digic 5 processor, that enables you to capture excellent, full-resolution images at up to five frames per second (fps).

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€TBC | Sep.

Having unveiled its first S tablet at IFA last year, Sony has given its latest slate the Xperia branded makeover, making it thinner (8mm) and lighter than its predecessor. Running on Android 4.0 and powered by a NVIDIA Tegra 3 quadcore processor, the Tablet S also hosts a 9.4-inch 1280x800 IPS OptiContrast display and Sony’s ClearAudio+ technology making it a suitable surrounding for watching movies. Comes with an 8-Megapixel rear-facing HD camera and 1.0Megapixel front-facing HD snapper.

€TBC | Sep.

Post-TouchPad demise, HP has decided to embrace Windows 8 and a QWERTY keyboard dock. Powered by an Intel Atom “Clover Trail” processor with 64GB of SSD storage, the 11.6-inch Envy x2 that can work as a laptop and a tablet sports a 1366 x 768 resolution IPS display and will have Beats Audio and NFC on board like the Spectre with a rear-facing 8-Megapixel camera and a HD webcam to take care of video chats.

With so many hybrid devices outed, the Envy x2 may just have the looks and the specs to stand out from the crowd.

Bouncing sound Yamaha YSP-4300 Soundbar

€1.300

If your current home cinema setup lacks an audio roar, Yamaha reckons its latest soundbar offering should help amplify your viewing with 7.1 surround sound. Using Intellibeam technology to bounce sound beams around the room, the subwoofer and bar setup uses AirWired2 technology for delay free sound and the ability to wirelessly send tunes from your Mac, PC or iOS device to put it into party action. There’s also an FM tuner on board and it can be wall mounted if space is currently at a premium.

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97 October | 75

techno talk

Twisted hybrid

Pedal power

Dell XPS Duo 12

€TBC | Sep.

masterpiece of bicycles

One of the biggest trends of IFA this year has been the surge of tablet and ultrabook mash-ups and keen not to be left out, the Duo 12 is another hybrid Windows 8 device, but with a twist. Featuring a glossy full HD touchscreen with tough Corning Gorilla Glass and an aluminium and carbon fibre chassis, a flip hinge mechanism let’s you swivel the screen vertically from within the frame so you can choose between ultrabook and tablet modes. Here’s hoping it fares better than Dell’s last hybrid laptop/tablet outing…

€5.500

Discover the technology behind the lightest, stiffest, best-performing road bike ever produced by Giant. From its all-new OverDrive 2 fork steerer-tube design, which improves steering precision by 40 per cent, to the Advanced SL composite material and cutting-edge construction techniques. Using Advanced SLgrade composite and technical innovations including the OverDrive 2 steerer tube, which boosts front-end stiffness and steering precision, the TCR Advanced SL is the go-to choice for Rabobank pros that need one bike that can do it all.

Retro tunes

Flagship device Sony Xperia T

€TBC | Sep.

Previously going by the name Xperia Mint, the Xperia T has now been made official and becomes Sony’s latest flagship smartphone.

Hosting a hulking 4.6-inch HD Reality Display, the Android 4.0.4 Ice Cream Sandwich handset features a 13-Megapixel with full 1080p HD video recording capabilities and 720p HD front camera. A 1.5GHz dualcore processor should handle all your multitasking and multimedia needs and with the PlayStation Certified stamp can play a host of PS One classic amongst other gaming goodies.

€TBC | Sep.

If your modest living abode cannot accommodate a hulking 84-inch television, this more bedroom-friendly 27-inch telly from LG might be more suitable. Featuring LG’s sleek CINEMA SCREEN with a narrow bezel, the full HD set boasts Smart TV support and SmartShare to share content between laptops, smartphones and hard drives plus DLNA, Wi-Fi and WiDi connectivity.

High class Monitor Audio i-deck 100 iPod €TBC | Sep. With iPod docks ranging from the reasonable to the eye-wateringly expensive, the Monitor Audio i-deck 100 hopes to win you over by offering a premium price tag for a premium product. Monitor Audio has overlooked the cheap and cheerful approach to iPod docks, instead offering up the high-end Monitor Audio i-deck 100, a well designed device which pairs good looks with strong performances.

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Big screen Samsung Galaxy Player 5.8

€TBC | Sep.

Former cassette specialists TDK have unveiled a slew of new retro-styled speaker setups with this updated boombox our pick of the best.

Sporting a 2.1 stereo speaker configuration, a built-in rechargeable battery means it’s parkfriendly and with Bluetooth AAC streaming can now deliver near-lossless audio from your mobile device. Other specs include a 3.5mm input, USB charging port and a carry handle if you don’t fancy putting it on your shoulder like you’ve just walked out of Breakdance.

Samsung’s latest iPod Touch rival has now been officially unveiled after specs and images of the device were recently leaked confirming that it will indeed host a monstrous 5.8-inch 960×540 qHD display. Other specs hoping to steal in on Apple’s PMP dominance include Android’s 4.0 Ice Cream Sandwich operating system, Wi-Fi and Bluetooth support and a VGA front-facing camera. The Samsung PMP will be available 16GB and 32GB models, but there’s no details as to pricing or when we can get our hands on it.

Space saver LG TM2792 Personal TV

TDK Life on Record Wireless €400

Classic reworked Polaroid Z2300

€130

The Polaroid Z2300 instant is the latest snapper from the cult brand to include a built-in Zink printer along with a 10 megapixel image sensor. The Polaroid Z2300 is the brand’s first compact camera with a built-in printer. A little on the chunky side for a compact, the camera is available in black or white and there’s even a rainbow stripe that harks back to the days of the classic Polaroid.

cordeditorial@cma.rs

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97 October | 77

fashion Ippolita

Earrings

Bottega Veneta

Necklace

Ippolita celebrates the beautifully bold colour of lapis lazuli stones with these stunning 18-karat gold earrings surrounded by 1.0carat diamonds.

This handmade necklace oxidizedsilver accessory is the ultimate way to wear the new season’s dazzling decoration.

€3,758

Elegant Colour

€3,654 Catherine Malandrino

Jersey dress

price:

price:

€233

Issa price:

€458 €780

Bottega Veneta

Clutch

Showcase dynamite style with Bottega Veneta’s bold turquoise clutch. This textural accessory is a stunning example of craftsmanship. Carry it to add colour to your evening portfolio.

Knitted dress Featuring a sleek silhouette and glamorous cutout back, it’s perfect for your next formal event.

price:

€608

€183

price:

€830

price:

The dress, the bag, the heels! Be brave and shake up your after dark look with colours!

price:

price:

€754

€541

Richard James

gucci

Wooyoungmi

PRINTED TIE

We don’t need to tell you that navy blue and charcoal grey are the default colours for business suits - that’s why you’ve already got a cupboar full of them. However, it remains important to refresh one’s collection, in order to look chic, as well as businesslike.

For professional perfection in pale pink or pale blue shirts, a printed tie, patterned socks and monk-strap shoes.

Paul Smith

price:

In recent seasons knitted ties have, for good reason, become near ubiquitous, but to add a more formal note to one’s furnishings seek out subtle printed designs and balance their classic style with modernity by keeping them relatively slim.

Blue or grey suits, blazers and soft jackets with both bold formal shirts.

€80

price:

Drake’s

€66

price:

€112

canali

Brioni

Valentino

Clutch price: price:

€390

€179

price:

€558

DKNY

Pumps

Give your favourite looks a kick of colour with DKNY’s blood-orange and magenta suede peep-toe pumps. Wear them with a dress in any colours.

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GREY SUIT

price:

price:

Catherine Malandrino makes evening glamour effortlessly chic with this purple jersey dress. Bare legs and gravity-defying heels are the only accompaniments you need to finish a fabulous after-dark look.

How to...

...combine a grey suit,printed tie and briefcase to stay elegant and consistent to the business look

97 October 2012

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Elizabeth and James

Dress

This dress will light up the dance floor with its electrifying hue. The flowing trapeze silhouette is a contemporarycool update on Studio 54 glamour .

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BRIEFCASE

price:

€658

This generously proportioned piece will give every look a hit of glamour. Carry yours with a lace pencil skirt for a perfectly executed outfit.

price:

There are few easier ways to upgrade your image than by carrying a decent briefcase.

A beautifully made case in a classic design won’t just look good for years; it’ll also last for decades - so it may be worth checking that your son likes it too. Any business outfit, whether that’s a traditional suit or just a shirt, go great with a leather briefcase.

€1,970 Swaine Adeney Brigg

Preen

Pants These orange pants will instantly refresh your work-to-weekend wardrobe.

price:

€1,991

GUCCI

price:

€1,905 Bottega Veneta

Valextra cordeditorial@cma.rs

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97 October | 79

FREYWILLE

SPIRIT OF AFRICA

Christopher Ciccone

Fashion News

Rubber Shoe

FREYWILLE is proud to present the new Spirit of Africa collection - a dedicated tribute to mankind and the continent where it all began: life and art.

The collection takes you to a world of colourful cultures, lavish nature and unique wildlife. The two designs, Safari and Kilimanjaro, reflect l boundless energy and powerfu you e mak rhythms that will yearn for the spirit of Africa.

Available at the FREYWILLE boutique, Terazije 26.

price:

€ 325

www.freywille.com

Vase

This grand vase by Donna Karan is part of the Abstract Coral range. The Donna Karan Lenox Collection is a balance of artistry and function, modernity and soul.

Christopher Ciccone, the younger brother of pop star Madonna, took a rubber-soled step outside of his famous sibling’s shadow as he launched his first shoe collection at the start of London Fashion Week.

Ciccone, 51, spun a modern twist on functional footwear, using rubber, leather and canvas to reinvent riding boots, Wellington boots, boat shoes, brogues and sandals, using a mixture of bold block hues, geometric prints and strap details.

Vivienne Westwood

design

Lamp

Pinto in Chicago Museum

British fashion designer Vivienne Westwood claims she hopes no one will buy her latest creations - for the sake of the planet.

Her latest offerings may, however, prove hard to resist for fashion lovers. She describes them as recyclings of really good ideas her brand has had in the past.

This Montauk Search Light table lamp by Ralph Lauren Home features an exquisite mahogany oak finish. In a strikingly unique design based on vintage search lights it will look magnificent wherever it is placed.

Designer Maria Pinto, well-known for dressing first lady Michelle Obama and Oprah Winfrey, used her eye for fashion to curate antiquities from the Field Museum of Natural History in Chicago for a new exhibit that includes a century-old shredded bark Brazilian ceremonial costume and a woven monkey fur necklace.

The materials are a stretch from the rich, bright purple silk Pinto used to design the sheath Obama wore during the 2008 Democratic National Convention.

Pinto walked through the vast storage areas under the museum and chose items that appealed to her. Pinto and co-curator Alaka Wali chose 25 garments and adornments to pair with seven pieces from Pinto’s collections. The museum items are juxtaposed with Pinto’s designs.

NY Fashion Week S/S 2013.

Rug

The result was a mixture of ladylike elegance with a quirky twist.

The designer herself wore a sequined hat, a white t-shirt emblazoned with her eco-slogan “Climate Revolution” and platform shoes. She even painted a moustache and circle around her eye in black during the show’s finale.

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This beautiful Tempera rug by Christian Lacroix for the Designers Guild is a brilliantly stylish piece of home fashion. The rich suffused colours of a painted horizon at sunset form the inspiration for this boldly striped and luxuriously textured rug.

Proenza Schouler

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Paul Smith

Matthew Williamson

Maison Martin Margiela works its iconoclastic aesthetic into your living space with this PVC snow globe. Place this directional ornament in an austere setting for maximum impact.

Cushion

Maria Pinto

Recycles Ideas

Snow Globe

Lived in Design The best new interior items to add the finishing touch to any stylish home.

Introduce a touch of graphic glamour to your home with Missoni Home’s boldly printed cottonsateen cushion. Make it the focus of a neutral living room to show it off to arresting effect.

Chair

Italian fashion house Marni is famed for its clean lines, colour blocking and bold, vintage-inspired prints.

If you close your eyes and dream of Marni chairs, you may conjure up an image of chic pieces upholstered in a signature fabric, but that’s not the path taken by the cult label.

Dolls

Maison Martin Margiela applies its signature minimal approach to traditional Matriochkas with this blank wooden set. These contemporary dolls, handmade in Russia, are sure to give your home a modern edge.

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97 October | 81

profile

Success is a combination of hard

work and good luck Nikola Vuletić,

Retail Sector Director at UniCredit Bank Serbia

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97 October 2012

sible for me to adjust to various situations and people. Also, social intelligence is vital for me to be a successful manager, as is teamwork and good collaboration with my co-workers in a positive atmosphere.

Together with my colleagues I often learned along the way and we were lucky to have access to extensive know-how that wasn’t available to others. Essentially speaking, success is a combination of hard work and good luck.â–

...or simply subscribe NOW! )SSUE .O

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At some point I started to seriously think about my academic career. I was very persistent and even worked as an assistant lecturer on a course called Business Finance.

This exploit of mine was short-lived, but I did prove to myself that I can succeed if I want to

/#4/"%2 k )335% ./

A

lthough it often takes a long time for somebody to pave the way for his professional development, it seems to me that I have always known that economics will be the number one discipline for me. This decision was also heavily influenced by my father, who had a Ph.D. in macroeconomy and who pushed me in the right direction from the very beginning.

It is quite strange to think that working in a bank was the furthest thing from my mind when I enrolled at the Faculty of Economics. Apart from many obligations I had at the Faculty, I used every single opportunity to read books or learn something new. We had a really huge private library stocked with economics books, so I did research on my own. All of that made me think hard about my academic career.

However, I realised in time that that wasn’t the job for me and that it was time to search for more dynamic and challenging work. That’s what attracted me to banking, i.e. the work pace, fast changes, opportunities for personal development and getting to know people of various profiles.

I am proud to have built my career at one bank. It would be very pretentious to say that I have ‘gone through’ all departments at the bank, but the fact is that I did work in different departments and every experience I gained was a valuable addition to my knowledge which, after all, helped me to get to where I am today. My first job at the bank was in direct sales, which was a combination of a cashier and an account manager. I spent less than a year at the branch and then, following a decision of the bank’s management, I was transfered to the bank’s headquarters, i.e. to the Retail Sector, thanks to my good results and engagement. That was certainly a milestone in my career because, after only two years, I became a manager with a significant portfolio.

After that job I became director of Mid Market, followed by a job in the Retail Sector which I readily accepted, despite the job being something new for me. As it turned out, the decision I had made was the right one, since my previous obligations prepared me for the duties of the head of the Retail Sector, which is my current position.

Knowledge, perseverance, durability and flexibility have made it pos-

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Knowledge, perseverance, durability and flexibility have made it possible for me to adjust to various situations and people.

Social intelligence is also vital for me to be a successful manager, as is teamwork and good collaboration with my co-workers in a positive atmosphere. Together with my colleagues, I have often learned along the way and we were lucky to have access to extensive knowhow that wasn’t available to others

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97 October

Delegation of the German Economy in Serbia

Partner for Prosperity

| 83 SPECIAL EDITION

2012

Delegation der Deutschen Wirtschaft in Serbien Delegacija nemaÄ?ke privrede u Srbiji

9/25/2012 6:04:05 PM