CorD Magazine, June 2022, Issue No. 212

H.E. ATTILA PINTÉR

GOVERNOR OF THE NBS

We Defend Stability And The Interests Of Citizens And Businesses

www.cordmagazine.com

No Stability Without Serbia

JORGOVANKA TABAKOVIĆ

IVANKA POPOVIĆ

PROFESSOR AT THE FACULTY OF TECHNOLOGY AND METALLURGY

Fear Of ‘The Other’ Is At The Root Of All Conflict

JUNE 2022/ ISSUE NO. 212

AMBASSADOR OF HUNGARY TO SERBIA

interviews opinions news comments events COMMENT

Era Of (post)historical Misgivings FOCUS

HOW THE UKRAINE CONFLICT IS SHAPING SERBIAN POLITICS

Exclusive 783002 771451

Food Is The Top Security Issue

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EUROPEAN COMMISSIONER FOR AGRICULTURE

ISSN1451-7833

JANUSZ WOJCIECHOWSKI

06 ERA OF (POST) HISTORICAL MISGIVINGS

CONTENTS

Comment ZORAN PANOVIĆ

18 FRUITLESS ELECTIONS

Focus HOW WILL THE UKRAINE CONFLICT SHAPE THE SERBIAN POLITICAL SCENE

08 JANUSZ WOJCIECHOWSKI

EUROPEAN COMMISSIONER FOR AGRICULTURE FOOD IS THE TOP SECURITY ISSUE

54 IVANKA POPOVIĆ 24 THE IMF IS STILL BEHIND THE TIMES ON CAPITAL CONTROLS

professor at the Faculty of Technology and Metallurgy of the University of Belgrade FEAR OF ‘THE OTHER’ IS AT THE ROOT OF ALL CONFLICT

Feature

27 BUSINESS DIALOGUE 12 H.E. ATTILA PINTÉR

AMBASSADOR OF HUNGARY TO SERBIA NO STABILITY WITHOUT SERBIA

44 ALEX KENDALL

THE AUTONOMOUS VEHICLE PIONEER WITH GLOBAL AMBITION DEPARTMENT OF ENGINEERING

60 CHILL OUT 62 THE BEST WATCHES OF WATCHES GENEVA 2022 Fashion

64 CULTURE CALENDAR 16 GLOBAL DIARY

47 SLAVIMIR STOJANOVIĆ

66 FACES & PLACES

AKA FUTRO, DESIGNER, ILLUSTRATOR, VISUAL ARTIST SHOULDERS

48 IMPROVING EMPLOYEE HEALTH Architecture SUSTAINABLE OFFICE BUILDINGS

@CORD_MAGAZINE @CORDMAGAZINE CORD MAGAZINE CORDMAGAZINE

EDITOR IN CHIEF: Neda Lukić n.lukic@aim.rs ART DIRECTOR: Branislav Ninković b.ninkovic@aim.rs CONTRIBUTORS: Rob Dugdale, Maja Vukadinović,

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Comment

BY ZORAN PANOVIĆ

Era Of (post)historical Misgivings The anxious apprehension of HBO show Game Of Thrones, or George R. R. Martin’s original source book, is easy to recognise in today’s era of (post)historical misgivings. But so is the symbolic statement that forms the thread binding the entire series: winter is coming

S

o, summer will pass quickly and then winter arrives (after a difficult autumn), bringing with it perhaps the most difficult times since 1944/45, as was noted recently by Serbian President Aleksandar Vučić. And he stressed that he wasn’t saying that coincidentally, and even did so in front of the leadership of the Church.

However, humanitarian aid from the West arrived here even after the end of World War II, in the form of supplies known popularly as “Truman’s eggs” (they were powdered).

And voila, Greece has abolished all Covid measures for Serbian citizens. Paradoxically, but Serbian tourists are preparing for their summer holidays in Greece, only to fly back to immediately face the most difficult autumn and winter since 1944. Instead of behaving like ants, they’ll behave like crickets. Or should they act like those who hold the craziest party on the eve of doomsday?

According to Vučić, “it is up to us to try to save our country and our people. To try to be united in difficult times”. Can Vučić, who’s accentuated divisions and hatred within society, now achieve that unity – a unity that’s probably pro-European and doesn’t exist without a pro-Western opposition? Just as it’s paradoxical for the pro-Putin opposition in Serbia to be demanding Western-style democracy. When he responded to the war in Ukraine by stressing that Serbia would strengthen its European path, that sounded almost sensational, though

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it shouldn’t for a country that’s already on the path to Europe. And there wouldn’t have been so much hysteria if it really was. In reality, Serbia was formally on the path to EU membership, but a cult of Putin was being constructed in the public space and in the media, as a pillar of support to the construction of Vučić’s own cult. Tito also partly built his cult based on the model of Stalin and as a reflection of the Soviet leader, but in 1948 that cult of Tito also proved to be a strong resource to unify the people and the state in resistance to Stalin. Does Vučić have

Without purification, which can only be offered by likely full EU membership for all of its countries, this region is doomed to what former British Ambassador to Belgrade Charles Crawford described as “a circus at the level of local symbolism” the strength to de-Putinise his own charisma or could he negotiate (through the medium of sanctions) a model of moving away from Russia. What is certain is that there’s nothing of the notion of Serbia as an offshore state. Even Montenegro wasn’t able to do that, despite it being structurally more suitable for it to do so.

I guess Vučić would now return to what were practically the original principles of the Serbian Progressive Party from 2011: accelerating European integration. On condition that

the EU itself finds a model that will overcome the paradox of fighting against what they dub “Russia’s malignant influence in the region” by procrastinating on the irreversible inclusion of that same region in the EU orbit. Macron’s “European political community” presumably won’t be just another collage of illusions, but rather a framework closer to what Italian Prime Minister Mario Draghi calls “functional federalism”. Without purification, which can only be offered by likely full EU membership for all of its countries, this region is doomed to what former British Ambassador to Belgrade Charles Crawford described as “a circus at the level of local symbolism”.

And when it comes to sanctions against Russia, and its stance regarding Kosovo and Republika Srpska, Belgrade expects the West to reduce its sense of decompensation. As a gesture of good will, we no longer hear anyone from Vučić’s circles mentioning the “Serbian world” as a reflection of the “Russian world”.

Francis Fukuyama’s End of History theory has long been denied, with history progressing full steam ahead. Instead of the Berlin Wall, perhaps we’ll now get that which resembled a wall from Game Of Thrones. But we’ve also seen the failure of Samuel Huntington’s competing Clash of Civilisations theory, which primarily defines religions. Orthodox Christians are fighting one another in Ukraine. And while Chechen leader Kadyrov, with his Muslim army, is on the side of some Orthodox Christians against others, Catholics and Protestants are on the other side of the Orthodox divide. This is also instructive for this region of the narcissism of minor differences.

Interview Exclusive JANUSZ WOJCIECHOWSKI

EUROPEAN COMMISSIONER FOR AGRICULTURE

W

ill there be flour and sugar on the shelves tomorrow? Will grain reach hungry people in sub-Saharan Africa? Is the battle for food and energy the most important line of resistance in the conflict that spilled over from Ukraine to engulf the world? During times when food has become a geopolitical weapon, these are the questions that dominated our interview with European Commissioner for Agriculture Janusz Wojciechowski, alongside the issues of the Green Deal, technological breakthroughs in the field of food cultivation and support to candidate countries like Serbia in sustaining their own food security. Some top EU officials have warned that a global food crisis is on the horizon, due to the war in Ukraine, and promised initiatives to avoid any disruption of food supply chains. How do these developments impact on your work?

Russia’s aggression in Ukraine has had a profound impact on the global food system and food security has become a key concern. First in Ukraine itself, but also in the EU’s neighbourhood, in North Africa and the Middle East, but also in Asia and sub-Saharan Africa. This concerns wheat in particular, as a key staple. At

Food Is The

Top Security Issue Putin is using food as a geopolitical weapon and the EU will not stand idle in the face of this aggression. It is crucial to put an end to the invasion and the suffering of the Ukrainian population, but also to avoid the consequences a prolonged war in Ukraine would have on global food security ~ Janusz Wojciechowski 8

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By Ljubica Gojgić

PRIORITIES

Monitoring and managing the impact of Russia’s aggression in Ukraine is at the very top of my political priorities

the Commission, we are keeping a close eye on the situation and on agricultural markets. My services recently launched an online dashboard monitoring production, prices and trade in the main commodities of cereals and oilseeds.

In the EU, we are lucky that food security is not at risk today, as the EU is largely self-sufficient in all major agricultural products. However, the crisis in Ukraine shows that we are dependent on key inputs, such as fertilisers and plant proteins for animal feed. In addition, rising food prices and food affordability have become a major issue, especially for our socially threatened citizens.

Social policies are important to protect the most vulnerable citizens against food insecurity and ensure that all people can afford sufficient quantities of healthy and nutritious food.

Monitoring and managing the impact of Russia’s aggression in Ukraine is at the very top of my political priorities. I am in touch on a weekly and almost daily basis with the Ukrainian minister of agriculture to discuss their needs and try to accommodate them. I have also been very committed to establishing solidarity lanes, especially via Poland, to help Ukraine export its agricultural produce. Putin is using food as a geopolitical weapon and the EU will not stand idle in the face of this aggression. It is crucial to put an end to the invasion and the suffering of the Ukrainian population, but also to avoid the consequences a prolonged war in Ukraine would have on global food security. What are the short- and long-term responses to the food shortages, triggered by the war in Ukraine, that are hitting African and other countries that have been heavily dependent on food exports from Russia?

We presented a response plan and visible political engagement combining different strands of action: trade, including avoiding export restrictions, agricultural measures, civil protection and humanitarian assistance, medium and longerterm support, as well as mobilising a multilateral response. The EU is a leading humanitarian and development donor in food and nutrition security and is spearheading international efforts in this regard, together with the World Food Programme (WFP) and the UN Food & Agriculture Organisation (FAO). We are also leading

COOPERATION

It is essential for all countries to avoid restrictive trade measures. Only global trade routes will allow us to cushion the blow of the war by moving stocks to where they’re most needed

food security efforts at the WTO in the run up to this June’s 12th Ministerial Conference.

We are also stepping up funding to vulnerable partner countries that rely heavily on certain food imports from Ukraine.

From a geostrategic perspective, it is essential that the EU contributes to narrowing the production gap in order to avoid expected global shortages, especially of wheat. The EU isn’t only a major net exporter of wheat, but also has the world’s highest wheat yields. Over the last five years, we have exported an average of about 27 million tons of common wheat. For the 2022-2023 campaign, our short-term outlook is for exports of up to 40 million tons, which would represent an important contribution to the world market. However, we should remain

Serbia and other neighbouring countries are part of the new European food security crisis preparedness and response mechanism (EFSCM), because the issues we face don’t stop at the borders of the EU cautious, as final exports will depend on weather conditions and the availability of inputs like fertiliser. We will monitor developments closely.

I would like to add that it is essential for all countries to avoid restrictive trade measures.

Only global trade routes will allow us to cushion the blow of the war by moving stocks of staple foodstuffs to where they are most needed. On the other hand, the impact on EU food markets is likely to be multifaceted, with the business sector hit by shortages of everything from food product ingredients to packaging materials. What measures are envisaged in this department?

You are right to point out the complexity and

MODERNISATION

Using the potential of digital and cutting-edge technologies to increase the sustainability, performance and competitiveness of the agricultural sector is an EU priority

intricacies of the food supply chain. This crisis again shows the need for resilience and diversified supply chains, particularly for products like fossil fuels, fertiliser and animal fodder. We should diversify our food supplies even more, just as we are doing for energy. Our trade agreements are an important tool in this regard. With the high level of ambition in our 46 deals with 78 countries, the EU is able to secure substantial tariff liberalisation from these countries for staple foodstuffs relevant to food and animal feed security. Furthermore, EU exports of food also benefit from improved market access to such countries, helping global food security. That’s why it is imperative we continue pursuing an open trade agenda.

I also launched a new European food security crisis preparedness and response mechanism (EFSCM) to discuss the food security impact of the price increase for energy and inputs and the impact of the war in Ukraine. The entire food supply chain is represented in this group: farmers and fishermen, food processors, traders, retailers, consumers, food banks, food transportation services, logistics and infrastructure, inputs and packaging industries, together with national experts from ministries, including some from Serbia. It was important to include Serbia and other neighbouring countries because the issues we face don’t stop at the borders of the EU. I firmly believe the risks to food security in the EU can be contained if we all cooperate and coordinate our actions. With this group meeting regularly, we want to ensure a better flow of information across the full food supply chain in order to minimise the level of uncertainty, coordinate responses at all levels and swiftly identify priorities.

I have also tasked this group with mapping the risks and vulnerabilities of the EU food supply chain and its critical infrastructure, and with setting up an appropriate communications channel for the timely exchange of information. When it comes to long-term action, what are the major EU-level policies for tackling climate change and improving biodiversity?

While short-term measures are needed to deal with this exceptional situation, we mustn’t forget that the transition to sustainable agriculture is our only path to long-term food security. The

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Interview Exclusive approach that includes supporting research and innovation, and tailoring advisory services and exchanges of experience and knowledge.

Stakeholders in non-EU countries can benefit greatly from training and knowledge exchange.

I invite you to take a look at the project portal of the European Innovation Partnership for Agricultural productivity and Sustainability (EIP-AGRI) to receive inspiration from end-user driven innovation developed by practitioners in collaboration with scientists. This will be crucial to enable all farmers to adopt such innovative technologies and practises. The EIP-AGRI and the Agricultural Knowledge and Innovation Systems (AKIS), as well as advisory services, will be strengthened, as will the synergies with R&I supported under Horizon Europe, which will increase the use of cutting-edge technology.

Advances in innovation, technology and digital solutions, such as precision farming, will lead to higher productivity and reduced inputs, thereby lowering costs.

Commission has taken various steps towards a fair, healthy and environmentally-friendly food system. The European Green Deal represents a holistic approach to adapting our economy to planetary boundaries and becoming carbon neutral by 2050. The Green Deal includes the Farm-to-Fork Strategy, which sets out ways to transform the EU food system. It also covers the EU Biodiversity Strategy with a transformative and ambitious biodiversity framework. Agriculture plays a key role in implementing these strategies and objectives.

Making the European food system sustainable and resilient is the key objective of the Farm to Fork Strategy. It brings together all actors in the food value chain to move towards sustainable food systems that have a neutral or positive environmental and climate impact, and to create the preconditions to make healthy diets the easy choice for EU citizens. The EU is also looking to that sustainability to increase its competitiveness. More specifically, we want to significantly reduce the use and risks of chemical plant protection products, as well as the use of antibiotics and the loss of nutrients.

It is also our objective to increase the area under organic farming, guaranteeing additional area for nature and providing access to fast broadband in rural areas.

While it is an EU initiative, we cannot achieve it on our own. This vision is not only European, but also global. We need to join forces with likeminded partners across the bilateral and multilateral spectrum.

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This crisis again shows the need for resilience and diversified supply chains, particularly for products like fossil fuels, fertiliser and animal fodder. We should diversify our food supplies even more, just as we are doing for energy To what extent is digitalisation and use on different cutting-edge technologies present in the agriculture sector across EU countries?

Using the potential offer of digital and cuttingedge technologies and other types of innovation to increase the sustainability performance and competitiveness of the agricultural sector is a priority for the EU. The uptake of novel technologies varies not only across countries, but also between sectors and types of farms within a single region. We find farms where production is almost fully automated and farms where all tasks are done manually.

To boost the uptake of innovative technologies in agriculture in a sustainable way, and to avoid digital divides, we follow a comprehensive

To what extent are the Horizon programmes focused on the agriculture sector? How much of this funding is used in candidate countries that have some of the most interesting EU projects, such as the one being applied by the Biosense Institute in Novi Sad?

From 2021 to 2027, Horizon Europe is devoting about €9 billion to Cluster 6, which deals with agriculture, food, the bioeconomy and natural resources. This cluster’s 2021-2022 work programme has a budget of €1.8 billion.

About a third of the resources of this work programme are invested in research and innovation in agriculture, forestry and rural areas.

This will support the transition of the farming sector to sustainability and enable it to cope with climate change.

It is too early to know Serbia’s full level of participation in Horizon Europe, but Serbia received around €10.4 million from Horizon 2020 for projects directly linked to agriculture, food and natural resources, for a total of 50 Serbian entities working on 53 different projects. I have no doubt that the participation of Serbia in Horizon Europe will exceed this level. How does the Common Agricultural Policy for 2023 – 2027 address major developments in the sector? What is in store for candidate countries?

The recent sanitary and geopolitical changes (Covid pandemic and Russian aggression against Ukraine) have demonstrated how relevant and important agriculture is for all of us. Food security concerns that so intensely impact agricultural production, but also the need to

adapt to climate change, tell us that the farming sector, and rural areas in general, must adapt and respond to challenges continuously. Hence, food sustainability is fundamental to food security.

The new CAP will do just that: help our farmers to produce sufficient food, of sufficiently high quality, while respecting the environment and increasing its resilience, and hence also contributing to the objectives of the European Green Deal, the Farm to Fork Strategy and the EU Biodiversity Strategy.

IPA (Instrument for Pre-accession Assistance), and more specifically its branch focused on rural development (IPARD), provides instruments for candidate countries, including Serbia, to increase their farming competitiveness, adapt to high EU food safety and quality standards, invest in modern technology and equipment, improve quality of life in rural areas, but also take care of the environment and manage natural resources sustainably. By doing this, we not only aim to increase food sustainability in pre-accession countries, but also for these countries to contribute to their own food security – both individually and collectively. IPARD supports investments that enable increases in the production of highquality agricultural produce and compliance with EU standards. Investments in processing capacities contribute to creating higher added value agricultural production.

Just a few months ago, the European Commission adopted the IPARD programme for Serbia for 2021-2027. This programme provides the basis for EU support in the field of agriculture and rural development. The programmes also provides a significant contribution to the implementation of the Economic and Investment Plan for the Western Balkans, and thus also to the long-term economic recovery of the region and its convergence with the European Union.

Serbia received €175 million under IPARD in the 2014-2020 period and is expected to receive €288 million to pursue these objectives in the 2021-2027 period. IPARD in Serbia has so far already co-financed around 540 projects, with hundreds more projects at various stages of implementation.

We expect the current programme to support some 800 investments in farms, with 600 of those modernising and progressively upgrading to EU standards, 30 investing in renewable energy and a further 80 developing manure storage systems. The measure should generate total investments worth some €190 million. It is also planned for around 220 investments in processing and marketing to receive support.

All of those beneficiaries will modernise and progressively upgrade to EU standards.

Through IPARD we not only aim to increase food sustainability in preaccession countries, but also for these countries to contribute to their own food security – both individually and collectively We often talk about major food producers, but you also support the development of medium-sized firms and the return of young people to agriculture. How can we realise these goals successfully given the circumstances – both in the EU and the Western Balkans – of negative demographics, age structures and migration?

The CAP and IPARD embrace the diversity of European agriculture, in terms of its structure, productivity and type of production. This is one of the reasons why the CAP has been so successful – while it is a common EU policy, it also allows each country’s specificities to be taken into account. This also means different types of farms and farmers can benefit.

I am fully aware of the problem of de-

population in rural areas and the ageing of European farmers, including in membership candidate countries. This is a process that needs to be addressed if we want to preserve family farms and vibrant rural areas. CAP and IPARD support provides tools to make work and life in farming and rural areas more attractive for all, including younger generations.

IPARD programmes support investments in harmonising with EU standards, including upgrading buildings, machinery and equipment.

They also help to establish short supply chains and increase the growth potential and attractiveness of rural areas, prevent depopulation via better infrastructure, diversify income-generating economic activities and foster rural employment, in particular among women and youth.

The beneficiary countries have several measures, established at the EU level, at their disposal to achieve these objectives.This includes, for example, support for rural businesses and farming families seeking to develop non-agricultural activities, and thus create new jobs, diversify income streams and reverse rural depopulation.There is also a measure targeting the economic, social and territorial development of rural areas through the development of physical infrastructure that improves the living standards of the rural population and the overall attractiveness of rural areas.

In the EU-funded IPARD programme for Serbia, young farmers also benefit from a higher co-financing rate for their investments, as well as from prioritisation in the selecting of IPARD beneficiaries.

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Interview H.E. ATTILA PINTÉR AMBASSADOR OF HUNGARY TO SERBIA

I

n elaborating ways to avoid being hit by the energy crisis caused by the war in Ukraine, the governments of Hungary and Serbia recently agreed that Serbia can store 500 million cubic metres of gas with its neighbour, thereby increasing its reserves. This arrangement is one in a series that confirm the high level of bilateral cooperation that was discussed recently in Novi Sad, at the Agriculture Fair that was opened by Hungarian Prime Minister Viktor Orbán. Speaking in this interview for CorD Magazine, Ambassador Attila Pintér says he doesn’t believe the two countries, with their strong agriculture, will be hit by food shortages, though he adds that the situation is more complex on the wider European and world markets.

Your Excellency, given that Hungary strongly supports Serbia’s European integration, how are your country’s current relations with its partners within the EU?

The question is ever relevant and I want to stress that we firmly believe that the EU can only benefit from the membership of Serbia. We use every forum to spread the word and convince our partners in the EU that this is the way to go. Serbia is important from the perspective of geopolitics, being the key state in the Western Balkans. We believe that the stability and future progress of the region cannot be ensured without Serbia.

No Stability

Without Serbia

I think there is no alternative to full EU membership for Serbia and the Western Balkans. I think we should present the same terms and benefits to prospective partners, not give them “second hand” alternatives. Serbia has proven itself as a valuable partner for us, and especially for Hungary, and we therefore do not consider alternatives when it comes to EU enlargement ~ Attila Pintér 12

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By Ljubica Gojgić

EU MEMBERSHIP

I want to stress that we firmly believe that the EU can only benefit from the membership of Serbia. We use every forum to spread the word and convince our partners in the EU that this is the way to go I usually explain to my partners that the discourse within the EU might seem chaotic and complicated – and sometimes it is – but that does not stop us from cooperating effectively. The member states understand the importance of the Western Balkans and many share our views about the immediate need for enlargement.

Certainly, there are sceptical positions, but I consider that as a perspective that can be changed. This is a long debate. I don’t believe that it will be concluded now, but that shouldn’t discourage anyone from taking part.

We need to emphasise our efforts in support of Serbia and the Western Balkans, because we need to present a credible route to EU accession for them. The President of France, who is currently presiding over the EU, has proposed the creation of a “European political community” that would extend beyond the EU and allow non-member countries to attach themselves to the Union.

How do you view this idea? Could it become an alternative to membership enlargement?

As for the French plans, I think we need to look at this as a proposal. From the Hungarian perspective, this does not seem to be a credible alternative for the Western Balkans. Such a political community would not have all the benefits of the EU and, as such, it wouldn’t appear to be a holistic alternative for candidates. I consider it more as a reaction to the present political situation in Europe, which would only solve problems in the short term.

I think that there’s no alternative to full membership for Serbia and the Western Balkans. I think we should present the same terms and benefits to prospective partners, not give them “second hand” alternatives.

Serbia has proven itself as a valuable partner for us, and especially for Hungary, and we therefore don’t consider alternatives when it comes to enlargement. During his most recent visit to Serbia in March, Prime Minister Orbán spoke of the need to “reconsider the joint plans” of Serbia and Hungary. How did you interpret that message?

Personally, I wouldn’t venture to interpret the message of the Prime Minister, but I can share my views here. It is evident that the international situation has changed drastically over the last three months. As Ambassador

INFRASTRUCTURE

Being neighbouring countries, infrastructure developments are of paramount importance in our bilateral relations. This is one of the most important shipping routes on the continent

to Serbia, I need to find ways to maintain and extend our bilateral ties even in very complicated and challenging situations – of which we’ve had many recently.

Solidarity and understanding prevailed between Serbia and Hungary during the darkest times of the Covid-19 pandemic and, based on that, I think we can find common ground even during difficult times.

The war has shifted the energy landscape of Europe – most notably gas and oil infrastructure – and we thus need to adapt. Serbia is obviously crucial to this.

As an EU membership candidate country, as our neighbour, and as a friend, we have the responsibility to cooperate closely The war has shifted the energy landscape of Europe – most notably gas and oil infrastructure – and we thus need to adapt. Serbia is obviously crucial to this. As an EU membership candidate country, as our neighbour, and as a friend, we have the responsibility to cooperate closely. I am certain that the good relations between our two countries will remain and that we can do more together to benefit our people. The reconstructed Belgrade-Novi Sad railway is already in operation, while works have now commenced on the section up to the Hungarian border. What is being done on your side of the border? Will the railway’s complete reconstruction – despite delays – be completed by 2025, as announced by President Orbán?

Considering the importance of the project and the magnitude of the investment, both the Hungarian and Serbian governments are exerting great efforts to ensure this railway line is operational as soon as possible. Being neighbouring countries, infrastructure developments

AGRICULTURE

Both countries follow GMO-free production.

An exchange of legislative solutions and plant breeding results, in this regard, is among the areas where our countries have lively cooperation are of paramount importance in our bilateral relations.

This is one of the most important shipping routes on the continent, with plenty of goods and millions of people passing through every year. Once completed, this railway line will offer the fastest transport route for Chinese goods between Greek ports and Western Europe. In recent months, the situation in Ukraine has further enhanced the importance of this railway line, as significant transport routes have become unusable due to the conflict. However, this project is important not only for freight traffic, but rather also for transporting passengers, as it creates the opportunity for a high-speed rail link between Belgrade, Budapest and Vienna. In addition to a reducing travel time, this could also help reduce waiting times at borders, as more people are expected to choose the train. If the full connection is established, we hope that the number of tourists visiting the two capitals will also increase, as Budapest and Belgrade can be made significantly closer to one another.

As you mentioned, the works on the Hungarian side have commenced and the cornerstone of the Hungarian section was laid on 15th October 2021 at Kiskunhalas. The works are going according to plan and are on schedule, and I therefore don’t see any reason to doubt that the Budapest-Belgrade railway line will be completed in 2025. Hungarian and Serbian officials insist on the importance of strengthening economic cooperation between our two countries. Are there any specific plans to continue Hungarian investments beyond the Serbian province of Vojvodina, which would represent a new trend in economic cooperation?

Hungarian companies are well aware that, in recent years, Serbia has had an impressive economic recovery that led the way to growing stability and competitiveness, making Serbia an extremely attractive investment destination. Historically, Hungarian companies were more interested in fostering business ties with the northern part of Serbia, owing to its close proximity to Hungary and the Hungarian minority living in the region. The situation has changed visibly over recent years as a result of two factors. The first is that highway infrastructure has developed significantly in the southern

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Interview part of the country, and now Niš, Čačak or Kragujevac can be reached from Budapest within a few hours. A second and very important reason is the clear goal and dedication of the Hungarian Government in fostering business relations to the south of Belgrade. Prime Minister Orbán has been clear about this strategic direction and has been advocating it consistently.

In terms of capital allocation, Serbia is today a priority target country for Hungarian enterprises. On this note, in November 2019 the Hungarian Ministry of Foreign Affairs and Trade launched a specialised financial instrument, the Western Balkans Investment Scheme, with the specific aim of fostering the economic development of the Balkan region – including Serbia – by strengthening the presence and role of Hungarian companies. The programme was considered highly successful and prompted the Hungarian Government to continue the initiative of promoting Hungarian investments abroad with a new programme called the Foreign Market Growth Incentive, which has a global scope. These new investments will have visible results in the coming years. Could the ongoing energy supply crisis, to which both Hungary and Serbia are exposed, threaten bilateral economic relations between our two countries?

Economic relations between Hungary and Serbia have developed on a historical scale over the past ten years.

This fact makes it possible, and the Covid-19 crisis has shown that economic synergies between our countries should be crisis-proof in the face of global economic difficulties.The international economic consequences of the Ukraine war and its impact on energy markets have put both countries in a difficult and precarious position.

Shipping and manufacturing costs for companies have risen, while governments in both countries are working to alleviate the difficulties. All this in order to keep our economies competitive and also ease the pressure on household budgets from the soaring inflation worldwide. Hungary and Serbia have jointly recognised that the economic growth of their countries, and the living standards of their populations, could be jeopardised if we completely abandon energy sources of Russian origin.

Such a move would instantly nullify the economic results of recent years, both nationally and bilaterally.That’s why we are working to ensure that both the public and the companies are shielded against the consequences of the worldwide energy crisis. Thus, the energy crisis is currently a difficult factor in the development of economic relations, but it is not an obstacle to those relations. We do hope that, despite the challenges, the two countries will still achieve a record foreign trade turnover this year.

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Indeed, the recent Covid-19 crisis and armed conflict in our neighbourhood have highlighted the fact that global food supply chains are far too fragile, and that food systems should therefore be built on a regional basis One of the directions through which Hungary is supplied with Russian gas is the Turk Stream gas pipeline, which runs through Bulgaria and Serbia. How is it functioning at present, given the tension between Russia and Bulgaria over payments?

Gas deliveries between Hungary and Serbia, through the infrastructure that is part of Balkan Stream (TurkStream), are taking place without any interruption. As two countries that depend heavily on their own agricultural production, can Hungary and Serbia avoid the dark scenario of food shortages that’s been mentioned; and, if so, how?

First of all, there is no reason to be worried about food shortages in either Hungary or Serbia. Both countries have favourable conditions for food production, moreover the export of food, animal feed and agricultural products represent a significant value in our export

figures. However, the food security situation isn’t the same at the global level. There are several countries that rely heavily on food imports and, unless the conflict between Russia and Ukraine is resolved, food shortages will become a challenging issue for them. Taking into consideration Hungary’s well established agricultural traditions and Hungarian agri-business potential, our country was invited to be the partner country of the 89th Novi Sad International Agriculture Fair this year.

And given the excellent bilateral cooperation between Hungary and Serbia, we were happy to participate and take on the role of special partner to the event.

The Fair was opened jointly by PM Viktor Orbán and President Aleksandar Vučić on 21st May, which signals the importance of both bilateral cooperation and farmers, who were mentioned in the opening address of the Hungarian PM as the heroes of current times.

Indeed, the recent Covid-19 crisis and armed conflict in our neighbourhood have highlighted the fact that global food supply chains are far too fragile, and that food systems should therefore be built on a regional basis. That’s why Hungary and Serbia agreed at the highest level to help each other avoid any future disruption of their food supply chains. While there is no immediate danger of food shortages in our countries, we are being hit by significant inflation. In order to protect consumers, both governments decided to set an upper limit on prices for essential food products. The impact of this measure is being fully monitored and regular consultations are being held between our professionals, universities and researchers on its effects and results.

When it comes to agriculture,Serbian and Hungarian companies have established several joint ventures and participate in joint projects to create quality products. One example of this is the new feed mill to be established in Šid by UBM Ltd., which is currently under construction.

The basic concept of this investment is to use raw material produced in Serbia to create higher added value that will benefit both countries. The two Governments have therefore also given financial support to joint projects to encourage investment in agriculture and reach new markets with processed food products from the region.

Alongside joint ventures, there are also several technical issues providing common ground for cooperation between Hungary and Serbia in the field of agriculture.

Both countries follow GMO-free production. An exchange of legislative solutions and plant breeding results, in this regard, is among the areas where our countries have lively cooperation. Furthermore, as an EU member state, Hungary is sharing the knowledge and best practices we gained when joining the EU, so in this way we can also help Serbia speed up its accession negotiation process.

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GLOBAL DIARY

CHILDREN “My impression is that taking a child into care is an extremely serious decision which is really taken as a last resort, when the situation warrants it, for the well-being of the children.” ~ JONAS GAHR STORE, NORWAY’S PRIME MINISTER

DAVOS: WORLD ECONOMIC FORUM ANNUAL MEETING 2022

Klaus Schwab, founder and executive chairman of the World Economic Forum

Under the title “Working Together, Restoring Trust”, more than 50 heads of government attended the World Economic Forum’s (WEB) annual meeting in the Swiss ski resort town of Davos from May 22 to May 26. In its 50-year history, the WEF has never been confronted with such unprecedented global issues as it was in 2022, as the world recovers from a global pandemic, grapples to contain the devastating impact of the climate crisis, and navigates a geopolitical storm following the invasion of Ukraine. Russia’s absence at one of the most important and exclusive meetings of the global elite has left a noticeable vacuum that is being filled in unexpected ways.

The programme had six thematic pillars: fostering global and regional cooperation; how to restore stability amid a new era of geopolitical conflict and tension as well as advancing trade, prosperity and partnerships; and securing the economic recovery and shaping a new era of growth.

ANADOLU EFES WIN 2ND CONSECUTIVE EUROLEAGUE TITLE

sive rebounds. Coming back from the locker room, although Real Madrid expanded the advantage to 9 points thanks to a 3-pointer of Adam Hanga (40-31), the opponents managed to fill the deficit ahead of the final quarter. Anadolu Efes took over the lead at 43-42 after Vasilije Micic’s 3-pointer and sealed the triumph over Real Madrid in the finish of the match. Micic once again pocketed the MVP with 23 points, Barcelona defeated Olympiacos 84-74 in a battle for third place.

Anadolu Efes won their second consecutive Euroleague title in final match against Real Madrid at the Belgrade Arena. Both teams delivered impressive defenses right after tip-off, and the Spanish team gained a 5-point lead over Anadolu Efes in the slow-paced first half thanks to their effective offen-

EUROVISION: SIX COUNTRIES REMOVED AFTER ‘VOTING IRREGULARITIES’ Voting irregularities were identified in six countries taking part in Eurovision 2022, according to the European Broadcasting Union (EBU). In a short statement, EBU said that certain “irregular voting patterns” were spotted following the second dress rehearsal and second semi-final of the competition.

The irregularities were related to national jury votes, not the public votes. While it did not name the countries in its statement, the teams which saw their jury votes removed were: Azerbaijan, Georgia, Montenegro, Poland, Romania and San Marino.

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CLIMATE “We will no longer wait for the slowest and least ambitious. We’ll turn climate from a cost factor to competitive advantage.” ~ GERMANY’S NEW FEDERAL CHANCELLOR, OLAF SCHOLZ

FINLAND AND SWEDEN NATO BIDS Finland and Sweden are seeking membership to the North Atlantic Treaty Organization, a historic shift for two traditionally non-aligned countries and a major expansion of the Western alliance as war continues in Europe. Leaders from Sweden and Finland officially signed their NATO applications together mid last month, following meeting with US President Joe Biden, as the US makes a show of support for their bids.

This is a dramatic turn for two countries that have defined their geopolitical identities around nonalignment — Finland, for decades, and Sweden for two centuries. However, Turkey’s president has restated his opposition to Finland and Sweden joining Nato - just hours after they said they would seek membership.

NATO Secretary General Jens Stoltenberg with the Minister for Foreign Affairs of Finland, Pekka Haavisto and the Minister of Foreign Affairs of Sweden, Ann Linde

QUEEN ELIZABETH II HAS ATTENDED THE CHELSEA FLOWER SHOW

flower show.

After cancelling a series of events earlier this year, the Queen has been much more visible in recent weeks. She attended the Royal Windsor Horse Show and made a surprise visit last week to officially open the Elizabeth Line.

On May 23rd afternoon the Queen arrived at the Royal Horticultural Society’s showcase, the day before it opens to an expected 140,000 public visitors.

The Queen Elizabeth II has visited the Chelsea Flower Show in London - using a buggy for the first time at the event, as she toured the gardens and exhibits. The 96-year-old monarch, who has mobility problems, was driven around the annual

GERHARD SCHRÖDER QUITS RUSSIAN ROSNEFT Former German Chancellor Gerhard Schröder (78) will step down from his position at Russian state energy company Rosneft. He informed Rosneft that he could no longer continue as chairman of the board of directors of the country’s largest oil company. Schröder’s announcement comes just one day after German lawmakers agreed to strip him of benefits, including his taxpayer-funded office and staff. Members of the European Parliament have also voted for a non-binding resolution calling on Schröder to resign from his posts and be added to EU sanctions lists. German Chancellor Olaf Scholz rejected demands from Brussels to further punish Schröder and said his resignation “would be best for all”.

ELISABETH BORNE – NEW FRENCH PRIME MINISTER French President Emmanuel Macron has chosen Elisabeth Borne to lead his new government. She was named the new prime minister of France following the resignation of Jean Castex.

Borne, whose appointment marks the second time France will be led by a female PM, will be in charge of steering through Macron’s controversial pension reform. Macron reportedly wanted to promote a woman and said he wished to appoint “someone who was strong on social issues, environmental and production issues.” Borne (61) has also served as transport minister and ecology minister under Macron and successfully shepherded through reforms related to vocational training and the French rail company SNCF.

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Focus

HOW THE UKRAINE CONFLICT WILL SHAPE THE SERBIAN POLITICAL SCENE

Fruitless Elections The insistence of the international community that Serbia take a clear stance on the conflict in Ukraine could have far-reaching ramifications for the mapping of the domestic political scene, though it remains unclear what could result from the government’s discomfort and the opposition’s impotence when it comes to finding an answer to a question that’s crucial to the future of the country

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he Serbian answer to the question of how it will determine its position on the war in Ukraine has seemingly halted and cast into shadow all processes on the country’s internal political scene. The results of the very recent presidential, parliamentary and local elections sound like “old news” under these new circumstances in which foreign policy responses dictate the composition of the future Serbian government and the conditions of cooperation between the government and opposition.

The price of the ruling party’s continuous satanizing of the opposi-

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tion is more striking than ever. It has ensured that the party is today tormented in its struggle to find provisional support for the operation of transferring responsibility in making far-reaching decisions and is being forced to rely more on the opposition’s thirst for power than on high-quality interlocutors of European origin who could point the way to a sustainable solution that’s “of critical importance to the future of the country”, as one Focus interlocutor defined it.

Here CorD’s four Focus interlocutors deal, in different ways, with unpacking and resolving this puzzle.

DUŠKO RADOSAVLJEVIĆ POLITICAL SCIENTIST

REGRET COMES TO HE WHO TAKES AND HE WHO DOESN’T IF OPPOSITION LEADERS DON’T AGREE TO HELP VUČIĆ NAVIGATE HIS WAY ACROSS TO THE OTHER SIDE OF THE POLITICAL SHORE, THEY WILL BETRAY THEIR OWN PROGRAMME, BUT IF THEY DO AGREE, THEY’LL FIND THEMSELVES DECLARED TRAITORS BY THEIR OWN VOTERS

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erbia has rightly been forced into a corner – figuratively speaking, it has painted itself into a corner and now has nowhere to go, except to spoil that which was done wrongly. Specifically, since the multiparty system was introduced to Serbia, numerous political options have taken political positions as an alibi: for manipulation of the unresolved Kosovo issue; an impetuous and arrogant attitude towards neighbours, particularly former Yugoslav republics; an unwillingness to enable, and active prevention of, the decentralisation of the state; a propensity for tycoons and neoliberal policies; “hooking on” to regimes that openly violate human rights; showing admiration for Eastern and Far Eastern political partners while disregarding the fact that the state and society’s economic, political and other interests lie in stronger and deeper cooperation with the countries of the EU, the UK, Canada and the U.S. And of course, when it is in the interest of Serbia, in stronger and deeper cooperation with all other countries, such as the BRICS nations and all other principled countries, in which we include the remnants of THE IMPETUS TO CHANGE FOREIGN POLICY the once highly reputed Non-Aligned Movement. So, everything is based on interest, appreciation and respect, and not on the PRIORITIES MUST FIRSTLY COME FROM THE basis of servility, so-called “fraternal assistance” and some OPPOSITION, WHICH IS QUITE DIFFICULT GIVEN unspoken and unproven love!

THAT A SIGNIFICANT PROPORTION OF THE That’s why it’s vital to end such a policy, which is essenOPPOSITION IS MORE PREPARED TO “SNATCH” tially a policy of the mentally impoverished, who explains that something will happen to us, that we will live better, just A SMIDGEN OF POWER THAN TO STRIVE TO because someone loves us (“eternal love”), or just because we CHANGE SERBIA PATIENTLY, TENACIOUSLY AND believe that someone loves us. Of course, this isn’t as much a METHODICALLY delusion as it is a scam to win over certain categories of voters in Serbia, and it’s one that’s been manipulated for too long!

The impetus to change foreign policy priorities must firstly come from the opposition, which is quite difficult given that a significant proportion of the opposition is more prepared to “snatch” a smidgen of power than to strive to change Serbia patiently, tenaciously and methodically. In Serbia, twenty grams of power has always been worth more than two kilos of brains, then wait to see who hold on! Whatever the case, it is more realistic for this undertaking, compelled – as noted, to be taken on by the unquestionable master of Serbian political life, who is ready to “disavow” his most loyal voters – most of whom are losers of transition – to stay in power for a little longer. Naturally, as a very shrewd player, he will try to draw certain opposition players into this dance. This tactic, of throwing the ball into the opposition’s court, is also a Serbian political speciality. If they don’t agree to help Vučić navigate his way across to the other side of the political shore, they will betray their own programme, but if they do agree, they’ll find themselves declared traitors by their own voters. Whichever way you turn, something gets left behind. Nothing new and nothing original in the arena of Serbian politics. “Lord, how quickly darkness falls here” (Danilo Kiš).

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Focus

HOW THE UKRAINE CONFLICT WILL SHAPE THE SERBIAN POLITICAL SCENE

DRAGAN ĐUKANOVIĆ

PRESIDENT OF THE CENTRE FOR FOREIGN POLICY AND PROFESSOR AT THE UNIVERSITY OF BELGRADE FACULTY OF POLITICAL SCIENCES

NEW SERBIAN GOVERNMENT MUST BE CLEARLY PRO-EUROPEAN BOTH NEIGHBOURING STATES AND LEADING WESTERN COUNTRIES LIKE THE U.S. OR GERMANY WILL CONTINUE TO INSIST THAT THE NEW GOVERNMENT OF SERBIA CLEARLY DETERMINES ITS GEOPOLITICAL STANCE. THIS ALSO IMPLIES, FIRST AND FOREMOST, A CLEAR DECLARATION ON SANCTIONS AGAINST RUSSIA, BUT ALSO AN UNAMBIGUOUS EXPRESSION OF ITS EUROPEAN INTEGRATION ASPIRATIONS

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iven that the war in Ukraine has caused a fundamental shift on the geopolitical scene in Europe and around the world, and somehow created a new Cold War-like division in Europe, Serbia is also expected to clearly determine and declare the foreign policy course it wants to pursue. In that sense, a certain degree of tolerance was evident – primarily due to pre-election activities – when it comes to the question of Serbia making a clear foreign policy commitment regarding restrictive measures imposed on the Russian Federation, but also regarding the Ukraine crisis generally.

Considering our real-world position surrounded by EU and NATO member states, it is to be expected that not only neighbouring states, but also leading Western countries like the U.S. or Germany, will continue striving to influence the new Government of Serbia to clearly determine its geopolitical stance. This also implies, first and foremost, a clear declaration on sanctions against Russia, but also an unambiguous expression of its European integration aspirations. Considering the degree of hesitation on this issue that’s been evident to date, I don’t think it will be viewed with benevolence following the formation of the new government. Thus, those who constitute the executive will be expected not only to be pro-European declaratively, but also I BELIEVE THAT THE ISSUE OF FUNCTIONAL to demonstrate their pro-European credentials clearly. Of course, REGIONAL COOPERATION WILL COME TO THE when it comes to the domain of foreign policy, the new government FORE IN THE PERIOD AHEAD, AND ALONG will also be expected to consolidate relations with our neighbours WITH IT THE RESUSCITATING OF THE BERLIN in the Western Balkans and Southeast Europe. Special emphasis will be placed on normalising relations with Kosovo, because it PROCESS AND - AS ITS CONSTRUCT - THE seems that, at this current geopolitical juncture, accelerating the COMMON REGIONAL MARKET process of normalising relations between Belgrade and Priština will also occupy a very important place in the foreign policy agendas of the U.S. and EU. It’s also clear that the new Serbian government will have to take on the energy diversification issue, which implies reducing the Russian Federation’s dominant influence when it comes to supplying gas. Alongside this, it seems to me that the issue of functional regional cooperation will come to the fore, and along with it the resuscitating of the Berlin Process and - as its construct - the Common Regional Market, but also some kind of harmonising of its operation with the Open Balkan initiative, which has been developing over the last three years. In a broader context, it is clear that the new Government of Serbia will be expected to continue to sign our country up to the declarations adopted by international organisations, like the UN General Assembly, the Council of Europe and the OSCE, related to further developments in the war in Ukraine.

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SREĆKO DJUKIĆ

DIPLOMAT, FORMER AMBASSADOR, MEMBER OF THE EPUS FORUM FOR INTERNATIONAL RELATIONS

THE INTERNATIONAL COMMUNITY WILL PROVIDE THE IMPETUS IN EITHER/OR DECISIONS THE COUNTRY’ PRO-RUSSIAN AND ANTI-EUROPEAN POLITICAL SCENE CAN BE RECONFIGURED, BUT NOT IN ONE FELL SWOOP AND NOT SOLELY BY THE RULING PARTY OR ONE MAN

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lesson not learned is repeated. Serbia is once again facing the “greatest” foreign policy ordeal. Ukraine, and actually Russia, is the new test for Serbia, but also a key internal question: (un)willingness to sanction Russia, as the “main element of the path to Europe”.

Serbian foreign policy has hit a wall, after trying to sit on two chairs. Serbian society has long been offered illusions about Russia, as some alternative to a realistic, possible and sustainable European policy. And we thus find ourselves in the middle of a maelstrom, swirling in a whirlwind, powerless against either side.

But Ukraine is connected to the Kosovo issue, and the one connecting them is Russia, which has gained a status as the sole guardian of Kosovo, which is reason enough to reject the imposing of economic, personal and other sanctions against the Russian Federation for its invasion of Ukraine following Serbia’s triple political vote in the UN General Assembly.

The Government of Serbia is aware that any decision to impose sanctions against Russia would leave it among the minority in Serbian society, which undoubtedly has a pro-Russian orientation and has strongly supported Russia for years. Russia is seen SYSTEMATICALLY DESTROYED AND SATANIZED, as the mythical protector of Serbia and an irreplaceable grenadier TODAY’S PRO-EUROPEAN OPPOSITION IS IN of Kosovo, omnipotent, along with gas and oil that render Serbia completely dependent on Russia.

NO POSITION TO ADDRESS THE PROCESS The country’ pro-Russian and anti-European political scene can OF RECONFIGURING DOMESTIC POLICY AND be reconfigured, but not in one fell swoop and not solely by the EUROPEAN VALUES ruling party or one man. They generated that dominant internal scene that fits their own character and deeds. That’s why proEuropean forces in the country are almost invisible. Their influence is imaginary and conscious, and not accidentally limited. An opposition scene in Serbia, in the true sense, barely exists. It has long been destroyed systematically and satanized, in parallel with the cultivating of the cult of a single party, single policy, single person.

Such a pro-European opposition is in no position to address the process of reconfiguring domestic policy and European values that are of critical importance to the future of the country. That is dependent exclusively on the government’s readiness to restore the deprived political and democratic rights and place of the opposition in Serbian society, in the domestic and foreign policies of the country.

The government is verbally ready to share the burden of Ukraine, as the biggest and most pressing issue, with others in the country, in an attempt to fake some post-election reconfiguring of its own ranks and relations with the opposition. The government is not ready to go it alone in confronting the majority opinion in our society, which supports Russia and anti-European policies. The trigger for changes to occur on the domestic front will probably come, once again, from the international environment, as is always the case when Serbia faces an either/or choice.

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Focus

HOW THE UKRAINE CONFLICT WILL SHAPE THE SERBIAN POLITICAL SCENE

ZORAN STOJILJKOVIĆ PH.D.,

PROFESSOR AT THE UNIVERSITY OF BELGRADE FACULTY OF POLITICAL SCIENCES

FORCED (HALF)CHANGES THE POST-ELECTION POLITICAL SCENE, CONFRONTED BY THE CERTAINTY THAT IT MUST IMPOSE AT LEAST SYMBOLIC SANCTIONS ON RUSSIA, WILL ITSELF EXPERIENCE CHANGES, AND THEY WILL COME AT THE LEVEL OF THE RULING PARTY, THE OPPOSITION AND THE ELECTORATE

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he traditional lines of political division in post-communist European societies have changed over the last three decades, and even been overshadowed by EUropeanisation processes. The division between Euro (Atlantic) integrationists and proponents of national populist sovereignty cuts through the fields of the understanding of the nation state, democracy and the rule of law, but also economic and social development models and dilemmas around desirable recipients of subsidies and investments in infrastructure.

Serbia and its policy of manoeuvring between the influences of the EU, U.S., Russia and China is, in this regard, a special example that’s justified by the history and memory of NATO aggression, Russia’s support for Kosovo and investments coming from “brotherly China”. Over the past decade, this mantra has served a hybrid regime that’s formally pro-EU integration to ease the pressure applied on it from the West, over its many democratic shortcomings, by fuelling pro-Eastern sentiment.

The war in Ukraine and its visible consequences – imperial games around the redistribution of power, Russia’s (self) expulsion from Europe, recession in Europe and U.S. political mentorship – represent a situation that’s behind us. The policy THE POLICY OF MANOEUVRING BETWEEN THE of conditionality has almost assumed its ultimate form. StabiINFLUENCES OF THE EU, U.S., RUSSIA AND CHINA, locrats, who have solved little and produced a few problems in WHICH SERBIA HAS PROMOTED OVER THE PAST the region, have been shoved up against the wall.

The post-election political scene, confronted by the certainty DECADE, IS NOW BEHIND US that it must impose at least symbolic sanctions on Russia, will itself face three types of changes. President Vučić, as currently the only legal actor, will strive to ease the open external imbalance by reducing internal tensions and expressing a “readiness” for a controlled dialogue with the pro-European opposition, relying on its proverbial weakness and fragmentation.

The sharing of responsibilities is becoming the government’s preferred scenario. Within the ruling party and the ruling coalition, those promoting anti-Western policies will be demoted to alternate positions, i.e., to practical invisibility. Sharp reciprocal confrontations in public, however, should not be expected.

The call for dialogue that’s in the national and state interest will practically create an additional division between realists and fundamentalists, particularly among the ranks of the opposition.

Among Serbia’s citizenry, following the further rise of existential fears, apathy and political cynicism, we will reach a more noticeable political reclassification and the quest for new political favourites. And this time around they won’t be infinitely trusted.

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Feature

The IMF Is Still Behind The Times On Capital Controls

BY JOSEPH E. STIGLITZ, JONATHAN D. OSTRY

Although the International Monetary Fund’s newly revised policy framework on capital controls makes some improvements on what came before, it is still likely to do more harm than good. Real-world experience and advances in economic theory have shown that the IMF’s suspicions about such policies are misplaced 24

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he International Monetary Fund’s revised policy framework for managing cross-border financial flows, approved by its Executive Board last month, broadens the circumstances under which countries may restrict capital inflows. Unfortunately, it also ties countries’ hands excessively and fails to contend with the myriad real-world contexts in which the proffered IMF advice is, or is not, appropriate. So, while volatile capital flows already pose an ongoing challenge for many emerging and developing economies, the IMF’s framework will reduce countries’ options for achieving their social objectives and may ultimately make the global economy less stable.

The previous IMF framework, approved in 2012 and known as the “Institutional View” (IV ), held that controls on capital outflows were legitimate only when a country was in the throes of a crisis, and that controls on inflows should be used only as a last resort when the country was experiencing a surge in foreign money. The IV was a political compromise, reflecting deep divisions between IMF member states (including some of the largest shareholders) that favoured fully liberalised capital movements, and those (including many emerging and developing economies) that wanted the IMF’s blessing to adopt policies to mitigate volatility.

Some countries opposed the IV not because they disagreed with it, but because they saw it as “overreach”. They worried that the IMF was going beyond the remit defined by its constitution (the Articles of Agreement), which gives countries considerable latitude on capital-control policies, and that a future IMF Board might suddenly change course and try to constrain what countries could do.

The IMF’s job is to prevent national policies from generating negative international spillovers. The Fund’s founding fathers, John Maynard Keynes and Henry Dexter White, deeply worried about the implications of competitive currency depreciations, emphasised rules against “beggar-thy-neighbour” policies in the IMF’s Articles. More recently, we have seen what can happen when one

country’s financial problems spread to others, as occurred during the global financial crisis.

When the IMF’s Articles of Agreement were written, most countries – including today’s advanced economies – used capital controls extensively. The Articles thus did not give the IMF the authority to push for capital-market liberalisation. Moreover, the last attempt to extend the Articles – at the IMF’s 1997 Annual Meeting in Hong Kong – came at the worst moment, just

when the Asian financial crisis, precipitated by massive capital outflows, was erupting.

In any case, small countries without undervalued currencies neither generate negative externalities nor engage in beggarthy-neighbour policies. Thus, when they are using capital controls, it is usually in circumstances that have little to do with the IMF’s remit.

Consider the social objective of ensuring affordable housing for the middle class,

small countries without undervalued currencies neither generate negative externalities nor engage in beggar-thyneighbour policies. Thus, when they are using capital controls, it is usually in circumstances that have little to do with the IMF’s remit

which many advanced and emerging-market economies have pursued by restricting foreign purchases of domestic real estate. These restrictions do not fall within the IMF’s responsibility, especially if they don’t significantly depreciate the exchange rate or cause salient cross-border financial spillovers. Nonetheless, the IMF recently urged Australia to reconsider a small tax on real-estate inflows to Tasmania (population 541,000), even though the measure could not possibly be macroeconomically significant.

And that is just one glaring example among many. Such advice, and related positions

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Feature involving countries as diverse as Canada and Singapore, undermine the credibility of IMF “surveillance” (monitoring).

The IMF’s revised framework wisely allows for preemptive measures against inflows in some circumstances. The Fund has come to realise that it is unwise to wait until financial imbalances reach a tipping point before doing something about them.

This rationale, essentially for preemptive macroprudential regulation, applies as much to imbalances generated by hot money from abroad as it does to those generated by excess borrowing from domestic sources.

But what about the outflow side of the equation? Now that the US Federal Reserve is raising interest rates, this question has become acutely relevant for many emerging markets. Yet the IMF’s new framework oddly sidesteps the issue.

Economists are generally deeply suspicious of outflow controls, due to a concern that such policies are necessarily tantamount to partial expropriation. But the issue is one of policy design and whether the rules of the game are clear and known ahead of time. For example, a pre-announced policy to tax short-term capital outflows (but not longer-duration flows), and to impose more extensive controls in the event of a crisis, could ultimately enhance macroeconomic stability and, in that respect, make foreign investment more attractive. It is part of the IMF’s job to assess whether outflow controls are needed, how their design can be improved and what role they might play within a country.

Conventional wisdom is constantly evolving to account for advances in economic theory, which has clearly demonstrated the prudence of imposing capital controls in certain circumstances. What was taboo in the late 1990s (when the IMF was championing full capital-account liberalisation) differs from what was taboo in 2012 (when the IMF endorsed inflow controls during surges) and in 2022 (when it endorsed preemptive inflow controls).

It seems clear, including to the IMF, that capital-outflow controls might have been desirable as part of its loan to Argentina under former President Mauricio Macri.

Without such controls, the IMF was simply

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The IMF’s Articles of Agreement correctly give wide latitude to member-state governments in deploying capital controls, provided that such policies do not harm other countries in a beggarthy-neighbour fashion. Rich countries have exploited this flexibility to the fullest

allowing international investors to take their money out of the country, leaving Argentina with a $44 billion debt burden and little to show for it. In circumstances such as those that Argentina faced, the IMF should consider not just allowing controls on capital outflows but actually insisting on them.

The IMF’s Articles of Agreement correctly give wide latitude to member-state governments in deploying capital controls, provided that such policies do not harm other countries in a beggar-thy-neighbour fashion.

Rich countries have exploited this flexibility to the fullest. The IMF could do worse than to uphold the spirit of its founders.

Joseph E. Stiglitz, a Nobel laureate in economics and Professor at Columbia University, is a former chief economist of the World Bank (1997-2000), chair of the U.S. President’s Council of Economic Advisers and co-chair of the High-Level Commission on Carbon Prices. He is a member of the Independent Commission for the Reform of International Corporate Taxation and was lead author of the 1995 IPCC Climate Assessment.

Jonathan D. Ostry, an incoming professor of the practice of economics at Georgetown University, is a former deputy director at the IMF, where he co-led the team responsible for the Institutional View on Capital Flows, and co-author of Taming the Tide of Capital Flows (MIT Press, 2018)

Leaders’

PORTONOVI

JELENA TADIĆ, Executive Director, PPP Investment

SAMIH SAWIRIS, Founder of worldfamous company Orascom Development Holding, which is developing the Luštica Bay project on the Montenegrin coast

MEETING POINT

MIRO MIJIĆ, Founding Director and Owner, Trezor Volga

DRAGOLJUB ZBILJIĆ, Energotehnika Južna Bačka Company President

Guardians Of Serbia’s Energy Strength

Creating The Perfect Synergy

Grand Kopaonik The Art Of Five-Star Pleasure

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Endless Summer Adventures And Relaxation On The Adriatic Coast

People First In PPP

A Vision Of Life As It Should be

Three Decades Of Dedicated Work

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JOVANA CVETKOVIĆ, TO and Innovation Director at MPC Properties

HOTEL GRAND KOPAONIK

PORTONOVI

Endless Summer Adventures And Relaxation On The Adriatic Coast

Portonovi Resort, a luxurious and unique destination that lies at the heart of the Bay of Kotor, announces the more than exciting summer season that’s ahead of us, thanks to numerous events and activities day and night.

This prestigious location represents a perfect mix of top-notch gastronomy, exclusive wellness opportunities, shopping and the highest-quality real estate available either to rent or buy

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his modern resort is situated less than an hour’s drive from Tivat and Dubrovnik international airports, but is also easily accessible to those who prefer private flights, thanks to its own heliport. In addition, Portonovi offers the possibility of docking in its modern marina, but also spacious private garage spaces.

In just a short period of time, Portonovi has become a favourite location for tourists

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from Western Europe, the U.S. and the Balkan region. According to Adrijana Husić, Senior Marketing and Communications Manager of Portonovi, the resort now has twice as many accommodation capacities compared to last year.

“We are not only talking about typical hotel accommodation, but about larger apartments and suites that are interesting for tourists coming to Montenegro, due to everything this

accommodation includes, but also swimming pools, the beach and the marina itself. These tourists sometimes come for a long weekend, while sometimes they stay for more than ten days or an entire month,” Husić points out.

LIVING A LUXURIOUS LIFE BY THE SEA Nearby Herceg Novi is well-known for its climate and warm summer evenings, while the Mediterranean spirit is further enhanced

by the design of some of the most desirable residences on the Adriatic coast, which can be either rented or bought. Each of these exceptional properties has been designed by world-renowned architects, ensuring that they fit perfectly into their surroundings. Tourists can choose from luxurious Sky Villas, Marina Apartments and One&Only Portonovi Private Homes - each of which is specific in its own way, with Portonovi being the thread that connects them all.

Situated on the waterfront, at the very heart of the complex, Sky Villas represent the epitome of sophisticated life on the riviera.

Their interior is a mix of warm and modern design, full of open spaces that are ideal for socialising and carefully selected materials that make these residences so luxurious and unique, with an addition of private terraces providing unobstructed views of the Bay of Kotor. However, the most exclusive spot in Portonovi is reserved for Marina Apartments, located right on the seafront and with direct access to the Marina. With an extremely convenient position in the culinary and social centre of the resort, these residences are perfect for those who enjoy being just a step away from the best restaurants, cafés, bars and shops.

Apart from these most exclusive residences, Portonovi also offers accommodation that varies from one-room apartments to private villas, built in a mixture of Mediterranean, Venetian and Montenegrin style and surrounded with an abundance of greenery and flowers in the very heart of the complex.

What they all have in common is a lot of indoor and outdoor space for fun, socializing or simply relaxing. Living here means spending time outdoors and enjoying the Adriatic sun in one of the numerous parks or by the pools.

events and activities, with special benefits for its members. In addition to the opening event, Portonovi Yacht Club organises two regattas this summer: the popular EST105 International Regatta Bari - Herceg Novi; and the already widely renowned III Portonovi Regatta Boka Islands.

“Portonovi Yacht Club will allow those who have not yet tried their hand at sailing, and would like to, to take sailing courses with experienced sailors,” says Azmont Investments CEO Rashad Aliyev, adding that Portonovi is striving to offer multiple reasons why people would like to come and stay for a certain period. “All those who are eager for adventure and excitement, beautiful landscapes, top spa centres and relaxation, as well as trips to Montenegro and cultural events by the sea,

will enjoy Portonovi this summer”.

Whether you want a home on the Mediterranean coast or to experience the charms of luxury living on the Adriatic by spending a few days in one of the apartments or villas, Portonovi offers everything you need for an unforgettable experience of life by the sea.

Throughout the year, visitors from all over the world enjoy the unique combination of luxury, the highest-quality real estate and design, as well as the magnificent, untouched nature of the Bay of Kotor. ...

For more information about events, please contact events@portonovi.com For special offers and to book accommodation, please contact stay@portonovi.com / +382 31 353 600

SAILING TOWARDS NEW ADVENTURES In international circles of yachting enthusiasts, the location of Portonovi Marina is widely known. The calm sea surrounding it allows easy access to the Adriatic and invites you to explore the Mediterranean right from the spectacular Bay of Kotor.

One new addition for this summer season is the freshly opened Portonovi Yacht Club, which attracts fans of sailing and other nautical sports. The club is preparing a series of

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“As the third-largest bank in Serbia in terms of total assets, NLB Komercijalna banka will play a systemically important role” ~ BLAŽ BRODNJAK, CEO OF NLB D.D., PARENT BANK OF NLB GROUP

LOCAL NEWS

THE U.S. ADDS $19.5 MILLION IN NEW FUNDS TO DEVELOPMENT PARTNERSHIP WITH SERBIA The United States Government announced an additional $19.5 million in assistance to the Government of Serbia, as part of amendments to existing assistance agreements. These funds will be used to, among others, help Serbia make the economy more competitive and inclusive, improve the public procurement process, strengthen the health information system, promote a stronger media environment, and improve energy efficiency and biodiversity conservation. U.S. Ambassador Christopher R. Hill witnessed the signing of the amendments by Minister for European Integration Ms. Jadranka Joksimović and USAID Mission Director Denny Robertson.

MK GROUP AND FINTEL ENERGIJA ARE BUILDING FOURTH WIND FARM The companies MK Group and Fintel Energija officially marked the beginning of works on the construction of the wind farm “Kula 2”.

Wind turbines of the most modern technology are being built near the first wind farm in Serbia, “Kula”, which was also opened by these companies in 2015. With an investment of 17.5 million euros, the works are planned to be completed by the end of the year and to be put into operation in March 2023.

NEW BOARD OF DIRECTORS OF THE HELLENIC BUSINESS ASSOCIATION OF SERBIA The Hellenic Business Association of Serbia held its annual General Assembly at which the members of the Association voted for the new Board of Directors.

The new board of directors is composed of the following members: President Nikolaos Sliousaregko (Hotel Junior), Vice President Vuk Dapcevic (Eurobank Direct), Treasurer Georgios Karafergias (Roda Točkovi), Member Vasilis Karanasios (Coral SRB - Official Shell Licensee), Member Stylianos Tsoktouridis (Alumil YU Industry).

OIP 10 YEARS IN SERBIA Outsource Insurance Professionals (OIP), a company that has existed in Belgrade since 2012, and in Nis since 2017 and is engaged in providing insurance services to clients throughout the United States, Great Britain, and Canada. From a small office with five employees, after 10 years, the MEC has more than 500 employees in offices in Serbia, Croatia, and the United States.

In the past 10 years, the OIP has produced great experts. Martina Seferović, CEO of the company, was presented at the IBA Hot 100 (Insurance Business America) in 2020, Miloš Petrović, Director of Operations, was named the best development manager in Serbia, Snežana Obradović, CFO, joined Forbes Financial Council, and OIP was awarded by the North America Business Awards as the best KPO insurance service provider.

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“By adopting a new legislative framework in the field of energy we created conditions to increase new capacities for the construction of wind farms” ~ ZORANA MIHAJLOVIĆ PH.D., DEPUTY PRIME MINISTER AND MINISTER OF MINING AND ENERGY OF THE REPUBLIC OF SERBIA

Placements postings

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appointments@aim.rs

JASNA TERZIĆ, NEW CHAIRWOMAN OF THE EXECUTIVE BOARD OF ERSTE BANK A.D. NOVI SAD

ORACLE CORPORATION OPENS REGIONAL CENTER IN KRAGUJEVAC A commercial contract was signed with the Oracle Corporation at the State Data Center in Kragujevac, which opened this IT giant as the first regional center in Southeast Europe.

The agreement was signed by the Vice President of “Oracle” and the Director of the State Data Center in Kragujevac, and the signing was attended by US Deputy Ambassador John Ginkle and Serbian Prime Minister Ana Brnabic.

Jasna Terzić has been appointed Chairwoman of the Executive Board of Erste Bank, as of 1st June. She replaces Slavko Carić, who decided to continue his career beyond the Erste Group after having spent almost 15 years successfully managing the operations of Erste Bank.

Alongside her new role as executive board chairwoman, Terzić will continue to take responsibility for the bank’s retail sector, while she will also assume temporary responsibility for the capital market and corporate sector, until the appointing of a new member to manage this segment of operations.

Terzić entered the banking world almost three decades ago, following her graduation from the University of Novi Sad’s Faculty of Economics, where she specialised in international economic relations. She has been a member of the Erste Bank Executive Board since October 2005. Her competencies have included retail banking, banking operations with small businesses and entrepreneurs, marketing, human resources and asset management.

NIKOLAOS SLIOUSAREGKO, NEW PRESIDENT OF THE HELLENIC BUSINESS ASSOCIATION

PROCESS OF MERGING KOMERCIJALNA AND NLB BANKA SUCCESSFULLY COMPLETED After a year and a half of working on one of the most complex integration processes in the region, Komercijalna and NLB Bank have successfully merged into NLB Komercijalna Banka - the systemic and third largest bank in Serbia, a member of the NLB Group, a leading regional banking group.

Thanks to the merger, the new bank will have 4.8 billion euros worth of joint assets, about 140,000 more customers, an approximately 25 percent larger loan portfolio, a new set of cards compliant with NLB Group standards, as well as significantly more products and services distributed through modern digital channels, but also one of the largest networks of ATMs and branches in the country.

Nikolaos Sliousaregko began his career at Heineken, where he spent 14 years and ended as head of sales for Northern Greece, before going on to serve as general manager at the Ermis food and beverages distribution centre for central Greece. He’s held the position of director for Balkan development at the Mantis group of companies since 2011, which has also given him the opportunity to engage in the implementing of Greek investments in Serbia as GM of hospitality company Junior d.o.o. and GM of construction company Notos Development d.o.o. Sliousaregko’s main activities focus on business management and development at the senior level. He has also devised his own training programmes, such as “Road to success” and “Managerial skills”. Author of the book and seminar 6 Steps + 6 Tools for a Perfect Service, he is president of the Hellenic Business Association of Serbia, a board member of HORES, the hotel & restaurant industry association of Serbia, and a board member and assembly vice president of the Kruševac Chamber of Commerce. Nikolaos is a married father of three daughters.

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JELENA TADIĆ, EXECUTIVE DIRECTOR, PPP INVESTMENT

People First In PPP The 6th UNECE International Forum on Public-Private Partnerships was held in Barcelona. It addressed a number of current challenges, such as climate change, the circular economy, digital transformation, green procurement and the blue economy, and how these challenges can be overcome through ‘People-first PPPs for Sustainable Development Goals’

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o far, about three billion euros of private capital have been invested in projects in Serbia using the PPP model, which can overcome challenges faced by the public sector. So it is not surprising that more and more local self - governments are showing interest in this type of project What topics were covered at the Forum and what did you talk about as the only

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panellist from Serbia?

The main topics of the Forum were ‘People first PPPs’ for sustainable development goals in providing sustainable infrastructure, accelerating implementation of the 2030 Sustainable Development Agenda and presenting a new document developed by UNECE, which formulates a new approach to PPP project development. This document is called Evaluation Methodology, and can be an excellent

The ‘Evaluation Methodology’ document can be an excellent tool to prepare and implement PPP projects for all participants in the process, especially for cities and municipalities

tool to prepare and implement PPP projects for all participants in the process, especially for cities and municipalities.

What are the novelties in the new UNECE methodology for developing PPP projects?

The good news for the development and improvement of the PPP model is that the ‘People-first PPPs for SDG’ approach has been formulated (People in the first place in PPP, for the Sustainable Development Goals), and that this approach is accompanied by a new Evaluation Methodology.

This document overcomes some of the weaknesses in the way PPP has been implemented so far and defines the PPP Evaluation Methodology for sustainable development goals.

Projects implemented in Serbia according to the PPP model are mainly related to the improvement of communal services – from energy efficiency, through public transport and road maintenance to animal hygiene and others The document will be available to all stakeholders as a tool for self-assessment of each PPP project to assess their compliance with the five ‘outcomes’ defined in this document.

It will assess whether a particular PPP project has increased access to basic services and reduced social inequality, improved economic effects and fiscal sustainability, taken care of the environment, promoted further project development and standardised documents, and involved all stakeholders in the project’s implementation.

The Evaluation Methodology is a complex document and could be applied in the preparation phase, especially before the project is adopted by the public body. But the staff of the public bodies

must be trained beforehand, so that they can properly assess whether a project satisfies the public interest, whether it is in line with the goals of sustainable development.

Since a public-private partnership is a synergy between public needs and private initiative, and realising the public interest is a mutual goal in a project, potential private partners should be familiar with this methodology and apply it in preparing and implementing a project.

Where is Serbia on the world map of PPP projects?

I can freely say that Serbia is a regional leader in the PPP model. Some data show that according to this model, about three billion euros of private capital have been invested in projects that serve to overcome challenges faced by the public sector. More and more local self - governments in Serbia are showing interest in this type of project, in bringing order, especially in communal activities, and in providing quality services for the money of their fellow citizens.

Projects implemented in Serbia according to the public-private partnership model are mainly related to the improvement of communal services. These are most often projects in the field of energy efficiency (reconstruction of public lighting, improvement of heating systems, etc.), but also projects for public transport of passengers, rehabilitation and maintenance of roads, animal hygiene and others.

By the way, in Serbia, the Law on Public-Private Partnerships and Concessions was passed in 2011. It has undergone some minor changes but it is characterised by a high degree of applicability. This is supported by the fact that the Commision for PPP of the Republic of Serbia has so far adopted more than 200 project proposals that meet the ‘public interest’, as defined by law, and 50% of adopted projects have been implemented.

Of course, there is always room for improvement of the legal framework that is in step with the development of PPP projects. For example, the Law on PublicPrivate Partnerships and Concessions recognises the category of ‘protection of public interest’ for which the methodology ‘value for money’ is applied, but this approach should be expanded in accordance with the definitions from the UNECE document and to protect public interest by setting the goals of sustainable development as an imperative, which are achieved by applying the methodology ‘value for people’.

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SAMIH SAWIRIS, FOUNDER OF WORLD-FAMOUS COMPANY ORASCOM DEVELOPMENT HOLDING, WHICH IS DEVELOPING THE LUŠTICA BAY PROJECT ON THE MONTENEGRIN COAST

A Vision Of Life As It Should be

“It is often difficult for me to convey my idea to people before the project comes to life. Although many believe that this type of business requires courage, I would say that the main quality that is needed is patience. I have enough patience and perseverance to start, and then take a lot of time until my vision becomes a reality.”

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uštica Bay, the emerging city, the largest investment project in Montenegro, is creating a unique way of life under the slogan ‘a place to call home’. Luštica Bay is a home, but also a summerhouse, where culture, heritage and gastronomy live in symbiosis, to create authentic experiences for all family members.

During our meeting with Samih Sawiris, leader of globally renowned company ORASCOM, which creates integrated cities in Egypt, the United Arab Emirates, Oman, Morocco, Switzerland and Great Britain, we discussed the business vision, long-term goals and benefits of this project, which already has the contours of an authentic city.

Given that you have chosen a business model that very few entrepreneurs follow, I guess it took a lot of courage to embark on something like that?

When I started my business many years ago, I didn’t know what I was getting into, where this journey was going, or how long it would take. I think that the big advantage is that I was much younger when I started. If I had known then what I know now, I probably wouldn’t have gotten into it. Now that I have several projects behind me, I realise that it is not a question of courage at all, but only of patience and perseverance.

When I say courage, I am also talking about the way of thinking that someone must have to embark on a project like this. In that sense, looking back, what did you learn on that business journey?

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I have faced many obstacles, but now, after so many years of work, I know that they are always only temporary and that, in the end, everything will work out as it should. You must be persistent and patient to overcome these obstacles.

Does that mean that, in some way, it is better to follow your instinct in business?

Absolutely! For example, another thing I learned through my work is that it is the community that gives life to a town. To give the simplest example - you can have the best restaurant, but if you only have two guests, it will not work. When I started working on the El Gouna project (Egypt), I thought that it was enough to have 60 beautiful villas, a hotel and a marina, and that the project was over. In fact, it took 16 hotels and 16 years to really say that. The project was successfully completed only when we had enough people who lived there permanently, as well as enough facilities and infrastructure that were crucial for life in the city. Today, we have between 25,000 and 27,000 permanent residents in El Gouna.

When we talk about the community, we must mention the importance of integrating the local community into the development process.

Do you think that the public has recognised the importance of this project?

It is not at all easy to convey your vision to the local population. If you have not had the opportunity to see and experience something like it, hardly anyone can imagine someone in the middle of the desert creating a new

city. The moment the project becomes tangible, when it comes to life, then the belief is stronger. I always have a bigger picture in my head, because I’ve been doing this for a long time, but I can’t expect others to think so broadly and so far ahead, it wouldn’t be fair.

To what extent did the local business community recognise the importance of this project and to what extent did it engage in this very successful new site?

Many stakeholders, such as the business community and potential investors, say that the people of Montenegro have recognised the importance of Luštica Bay. The rich offer, including boutiques, restaurants, shops and small and large spaces, is rented exclusively by local entrepreneurs, who bring the spirit of Montenegro to Luštica Bay. We have an increasing number of businesspeople in our city and they are the ones who bring in the new population. When you manage to attract local businesspeople to do business with you, it is a sure sign that you are on the right track.

this is their city, not a place where people buy real estate and come sometimes.

I guess you often change your location and the country you live in. Do you plan more frequent visits to Montenegro in the period ahead?

Montenegro is beautiful. The people are very kind and I feel at home here, so I always have the feeling that I want to return to this place.

Now I have a little more time, because I left most of the work to my son. I will keep my interest in the progress of small and interesting projects such as Mamula. This island will soon be open to the public and when it starts its life it will be a very interesting place that people will want to visit. I also have a project in Morocco that I am particularly attached to and that keeps me busy.

Luštica Bay has successfully attracted as many as 46 different nationalities under the slogan of the parent company Orascom - “Life as it should be”. If we look at the slogan as a whole, what does it promise?

The idea of Luštica Bay is to create an integrated community of new residents and locals who will feel connected to this place. I want them to think of Luštica Bay as their home. For such projects, people are much more important than numbers. That is the biggest and most important aspect! The area where Luštica Bay was created is a very interesting area of pristine nature and unexplored waters that was waiting to become a part of our everyday life.

What would you say is this project’s secret?

You have to see what people need and make it possible for them. This is the most important!

Local people and their needs are the first step in building an integrated community. It doesn’t matter to me how many people will buy houses and keep them closed for almost the whole year, as much as I care about individuals who live in the area and come to Luštica Bay to enjoy a cup of their favourite coffee with a spectacular view. I also want people who live near Luštica Bay to feel that

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“The developments in Ukraine are perhaps in the greatest focus of interest, however there are many other conflicts occurring on the global level that may also deserve our equal support and attention” ~ ZORAN MILANOVIĆ, PRESIDENT OF CROATIA

REGIONAL NEWS MONTENEGRO

UP TO €2.9 MILLION EIB GRANT TO IMPROVE EDUCATION The European Investment Bank (EIB), the bank of the European Union, will provide a grant of up to €2.9 million to the Government of Montenegro to accelerate the modernization of the national education system through the upgrade, construction, and reconstruction of preschool, school and vocational school infrastructure in the country. The EIB grant will cover technical and advisory support for project preparation and the public procurement process, and for developing national monitoring and evaluation standards for similar projects. It will accelerate upgrades that are expected to create an additional 2 070 places in schools across Montenegro and 530 new full-time jobs.

ALBANIA

FIRST SERBIAN EXPORT OF FRESH EGGS TO ALBANIA Serbia has exported the first quantities of fresh eggs to Albania, the Ministry of Agriculture, Water Management and Forestry told Tanjug. The ministry adds that this is the first time that Serbian producers of fresh eggs have exported to Albania and that the new market has been secured thanks to the Open Balkans initiative. They emphasized that this work is important for further strengthening the export of Serbian food products at a time when there are increasing global supply chain interruptions caused by the war in Ukraine. Serbia has a trade surplus with Albania, which will now be further increased. The Ministry points out that last year Serbia exported food for a record amount of five billion dollars.

CROATIA

€6.6M INVESTMENT IN MICROALGAE PRODUCTION The company called Phyox, specializing in the production of microalgae, substances rich in minerals, vitamins, antioxidants, and unsaturated fatty acids has invested 6.6 million euros in a microalgae production project in the city of Novska, the Večernji List daily reported. The project will enable the commercial production of microalgae for the pharmaceutical industry. The project has already gone through the stages of laboratory tests and trial production and the production of microalgae for commercial purposes is expected to start soon. There are plans to produce 40 tonnes annually. According to the information on the website this company is owned by four Croatian and German partners.

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MIRO MIJIĆ, FOUNDING DIRECTOR AND OWNER, TREZOR VOLGA

Three Decades Of Dedicated Work Trezor Volga is a Serbian company that is celebrating 30 years of successful operations this year. It has grown from a small family business which initially dealt exclusively with firefighting equipment to become one of the leaders in the distribution of personal protective equipment, fire & rescue equipment, and environmental protection equipment

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his company’s foundations of healthy and successful business relations are built on the nurture and advancement of its business culture, identity, positive image and, first and foremost, maintaining a good reputation in business. Throughout the years, Trezor Volga has persevered in this journey thanks to a great team of people who are dedicated to their work, who love taking on challenges, and love learning and progressing.

A full 30 years have elapsed since the founding of your company. Are you proud when you think about how you, as a very young man, dared to launch a company that has gone on to become a major importer and distributor?

Yes, I’m very proud of everything we’ve achieved, because it really was a bold move in those years that were difficult for all of us and difficult for the country. I come from a family of merchants; trade is somehow in my genes, and alongside that I also loved geography, international cooperation and travel.

So, with the little experience I had already acquired in selling protective firefighting equipment through working in the student service, I decided to enter this business. I had a strong desire, which was apparently crucial to the company’s success.

Private business was still in its infancy back then, so we overcame the obstacles gradually, step by step, just as we expanded our range gradually. Our development began from the moment conditions for international cooperation were created after the year 2000.

It was at that moment that we received a tailwind in the form of our biggest and most challenging contract, with U.S. Steel, which we wholly supplied with workplace safety equipment. That contract and operation provided an important confirmation of the quality of the service we provide and our mission to make professional and reliable relations the basis of our success and further development.

In your line of work, it is very important to monitor trends and insist on superior quality.

Are you succeeding in that?

Our portfolio and the number of products we offer grows year on year, because we

Our portfolio and the number of products we offer grows year on year, because we monitor trends and strive to provide our market with the kind of equipment that’s being used in the field of workplace safety on the global market monitor trends and strive to provide our market with the kind of equipment that’s being used in the field of workplace safety on the global market. This implies excellent familiarity with products and the constant education and training of employees, because in addition to supplying protective equipment, we provide our clients with com-

plete support, consultations, training, etc.

We are delighted that evermore attention is being paid to protective equipment, that regulations and standards are being respected, and that there’s rising awareness of the importance of prevention in protecting employees’ health and safety. Testifying to this is the fact that injuries at work are becoming ever rarer, as well as the fact that the number of new companies and industries using protective equipment is on the rise.

How difficult is it to make plans today?

Honestly, when I look back, I wouldn’t say we’ve ever had a long period of business environment stability, because somehow there’s been a constant shifting between difficult years and years of crisis, so we accept the current events unfolding on the international market in the same way.

These are all challenges that confront us, but it is my personal conviction that success is a result of knowledge, continuous work and advancement, but primarily faith in one’s own abilities and potential, regardless of the environment. With the support and understanding of employees, all goals are achievable. Finally, after 30 years of successful operations, the entrepreneurial spirit is still restless. New technologies and innovations are also present in the production of personal protective equipment. There is great potential for further development and, accordingly, there are ideas and plans to improve the business, which implies expanding operations to segments in which we haven’t been present to date.

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DRAGOLJUB ZBILJIĆ, ENERGOTEHNIKA JUŽNA BAČKA COMPANY PRESIDENT

Guardians Of Serbia’s Energy Strength Hungarian state-owned electricity company MVM has signed an agreement with the Maneks Group to take over 33.4% of its subsidiaries Energotehnika Južna Bačka and Elektromontaža, with which our company has stepped onto the market of the European Union in a big way able energy potential. With this partnership, Serbia has gained added stability and security in maintaining its transmission and distribution system, as well as additional production capacities and the possibility to independently design and build new power plants, and to improve and develop renewable energy sources. I think everyone can be satisfied.

And I would add that this is a job to make Serbia proud! We are a country of strong political leadership, business leadership, and when it comes to the production of electricity for the Balkans, we could represent what some countries are for oil production at the global level.

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he agreement with this Hungarian energy giant also shows that Serbia is a country of strong political and business leadership, and that, when it comes to the production of electricity for the Balkans, Serbia could represent what some countries are for oil production globally.

What do Maneks, Južna Bačka and Serbia gain from the partnership with MVM? The partnership with this Hungarian energy giant is a logical consequence of our determination to develop ourselves, to move beyond the framework of Serbia and do business on the European Union market.

We believed that we satisfy all the extremely high European standards, and MVM has obviously also showed that same faith in us.

On the flip side, MVM’s decision to enter Serbia is evidence of our country’s respect-

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In this time of uncertainty for electricity, how important is it to have a partner like MVM, which produces, distributes and trades in electricity, and is also a partner from the EU? It’s always good to have a strong partner.

And it’s even better to have one in extraordinary circumstances like we have today, because we gain the opportunity to advance professionally and technically, to access new technologies and enter the European market. MVM will increase its presence in the Balkans dynamically, together with an experienced partner.

The most expensive thing on today’s energy market is certainty. Serbia will share the destiny of the rest of the continent when it comes to challenges, but it strengthens its energy muscles and independence with this job and similar ones. Providing for citizens to live and the economy to

operate unhindered is today the height of patriotism, and a responsibility that we share with our state.

Given that Energotehnika Južna Bačka installs transformer stations, gas pipelines, the gas network, heating pipelines and other energy infrastructure elements, and that you are extremely well acquainted with the situation on the market, we can’t help but ask if we’ll have a winter?

Nobody in Europe can today answer that question with certainty. The war in Ukraine has brought many unknowns to the energy equation that everyone is trying to solve.

I believe deeply that the state will do all it

We believed that we satisfy all the extremely high European standards, and Hungary’s MVM has obviously also showed that same faith in us can to ensure energy stability, and I can guarantee that we will implement all the tasks within the scope of our competence that are entrusted to us in a high-quality way and within the deadlines set.

The whole of Europe is facing a great challenge, and I hope that we will be in a position to successfully respond to it together. Our old Serbian saying – only unity saves – is the most appropriate for Europe today! This job of ours is a firm handshake in that togetherness.

JOVANA CVETKOVIĆ, TO AND INNOVATION DIRECTOR AT MPC PROPERTIES

Creating The Perfect Synergy Demand for commercial real estate has remained stable and is expected to preserve that stability, which also applies to real estate commercial terms, which were not affected significantly during the time of Covid and are also expected to remain stable

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hopping centres, just like retailers, need to intensify the shopping experience permanently and steadily, as the combination of experience and pleasure is the trigger to the act of buying. More retailers develop hybrid retail models, making better use of the opportunity provided by the internet to complement their physical store.

How is the growth of online sales channels reflected in demand for commercial real estate?

Physical shopping is not merely the act of buying. It is a much more sophisticated overall process: this is a journey, a unique experience, a combination of interactions that give you pleasure. You cannot recreate that experience through e-commerce, because you will not be able to have all those things together at the same level and at the same time. In my opinion, ecommerce is growing on the back of the weakness of physical retail, and in that sense last year was a good barometer for retail centres, customers and retailers to realise that shopping is about emotion. Shopping centres, just like retailers, need to intensify the shopping experience permanently and steadily, as the combination of experience and pleasure is the trigger to the act of buy-

ing. Just as hypermarkets in the physical world are struggling to sell things other than basics, e-commerce should also become a place for just basic purchase process, provided we succeed in giving a unique flavour to physical shopping.

Retaining a position as market leader isn’t only about size and dominance, rather it is more about how relevant the products are for customers – the creation of value for customers. As regards demand for commercial real estate, it has remained stable and is expected to preserve that stability, which also applies to real estate commercial terms, which were not affected significantly during the time of Covid and are also expected to remain stable.

Do you expect online players to open physical retail outlets?

It will happen in time, since online and offline synergy will intensify, due to increasing customer awareness and therefore needs, and strong brands will need to have a physical appearance, just as the opposite is already the case. This will be an overall trend, but it will take time to invest in such a development and an innovative approach in the Balkans. Retailers also mostly have traditional business as a starting point, and only then expand to online operations.

What are the post-Covid industry trends and changes?

We can divide them into three categories: consumer habits changing due to them becoming more environmentally oriented; the synergising of online and offline retail; and the importance of loyalty programmes.

Retailers need to evolve alongside the consumer, in order to hold onto their brand

relevance in 2022 and beyond, while brands need to show off their culture and purpose.

Sustainability must be at the heart of their business model and across the entire supply chain, because consumers are more concerned than ever about sustainability.

After the boom of e-commerce platforms and digital growth in general, we should expect most shopping journeys to start online, but - on the other hand - that doesn’t

Retaining a position as market leader isn’t only about size and dominance, rather it is more about how relevant the products are for customers – the creation of value for customers mean they should always finish there. In many cases, an online shopping journey’s best and most convenient destination is a physical store. We are seeing more retailers develop hybrid retail models, making better use of the opportunity provided by the internet to complement their physical store.

But physical shops still have no competition when it comes to shopping and the key is synergy to find the best mechanism – for shopping to start online, but finish in store.

At a time when consumer behaviour is changing fast, the customer experience is becoming more important than ever, so brands will have to work harder to emotionally engage with consumers and retain their loyalty. With the rising cost of acquiring new customers, loyalty will become the new frontier for growth.

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“Raising corporate taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection” ~ JEFF BEZOS, FOUNDER OF AMAZON

WORLD NEWS U.S.

MULTI-BILLION DOLLAR PLAN TO ADDRESS WORLDWIDE FOOD CRISIS The U.S., several global development banks, and other groups unveiled a multi-billion-dollar plan Wednesday meant to address a worldwide food security crisis exacerbated by Russia’s war in Ukraine. The U.S. Treasury Department announced that several global development banks are “working swiftly to bring to bear their financing, policy engagement, technical assistance” to prevent starvation prompted by the war, rising food costs, and climate damage to crops. Tens of billions will be spent on supporting farmers, addressing the fertilizer supply crisis, and developing land for food production, among other issues. The Asian Development Bank will contribute funds to feeding Afghanistan and Sri Lanka and the African Development Bank will use $1.5 billion to assist 20 million African farmers, according to Treasury.

GREECE

START OF WORKS ON THE CONSTRUCTION OF AN LNG GAS TERMINAL The beginning of the construction of the LNG terminal in the Greek port of Alexandroupolis aims to reduce the dependence of this part of Europe on Russian gas, and the connection with Serbia should be the Nis-Dimitrovgrad gas interconnection, whose construction between Serbia and Bulgaria began in February.

The President of the European Council, Charles Michel, pointed out at the ceremony of the beginning of works on the construction of a gas terminal, which should supply northern Macedonia and Serbia with this energy, said that European sovereignty must be demonstrated and energy independence achieved. He added that this project is a turning point in Europe’s energy development.

UK

INFLATION AT ITS HIGHEST LEVEL IN 40 YEARS The annual inflation rate in Great Britain reached the highest level in the last 40 years in April, as the Russian invasion of Ukraine encouraged a further increase in food and fuel prices. Inflation in the previous 12 months amounted to nine percent, which is the largest annual increase in retail prices in Great Britain since 1982, the State Bureau of Statistics announced.

The annual inflation rate in Great Britain was 7% in March, and it was the highest since 1992. The jump in inflation will increase the pressure on the government to alleviate the crisis, which economists predict will lead to the biggest drop in living standards since the 1950s. Millions of households across the UK were hit by a 54 percent rise in gas and electricity costs last month.

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“The value of a mentor should never be underestimated – and reverse mentorship is another great to stay relevant and break down outdated hierarchies” ~ HOLLY BRANSON, CHIEF PURPOSE AND VISION OFFICER AT VIRGIN GERMANY

LUFTHANSA AIMS FOR 20% STAKE IN ITA AIRWAYS Germany’s Lufthansa wants to acquire a 20% stake in state-owned Italian airline ITA Airways, the successor to Alitalia, and its partner MSC is bidding for a 60% stake, a person familiar with the matter told Reuters on Tuesday.

The Italian state would initially keep the remaining 20%, the source said. The Lufthansa-MSC duo made their offer to acquire a majority stake in ITA on Monday. MSC, also known as Mediterranean Shipping Group, has filed an offer together with Lufthansa and is awaiting the next steps, a company spokesperson said.

FRANCE

FIRST BIG EUROPEAN NATION TO GRANT BINANCE REGULATORY APPROVAL

REUTERS

Binance has been granted approval from regulators to operate its cryptocurrency exchange in France. The company is now listed as a registered digital asset service provider by the French stock market watchdog AMF, enabling it to offer trading and custody services for bitcoin and other cryptocurrencies. Binance is the largest crypto exchange globally. The company handles spot trading volumes of more than $14 billion and nearly $50 billion in derivatives volume in a single day, according to data from CoinGecko.

The move makes France the first major European nation to give Binance the greenlight. The company is supervised in Lithuania by the country’s anti-money laundering regulators and is also seeking registration with the Swedish finance watchdog.

CHINA

HONG KONG HOME PRICES REVERSE 3-MONTH DROP TO CLIMB 0.5% IN APRIL Hong Kong private home prices reversed a three-month decline in April, the latest official data showed on Friday, as the financial hub stabilized after COVID-related woes and homebuyer sentiment was boosted by waves of new development launches. Prices in what survey company Demographia ranked the world’s most unaffordable housing market, climbed 0.5% in April from the previous month, according to official data, compared with a revised 0.6% fall in March. After months of muted activity, property developers rushed to launch new sales in April in response to the withdrawal of some COVID restrictions, triggering over-subscribed demand from buyers that drove up both transaction volumes and prices.

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HOTEL GRAND KOPAONIK

Grand Kopaonik The Art Of Five-Star Pleasure On the roof of Serbia, nestled in an area with the most beautiful scenery, interwoven with rich pine forests and mountain peaks as far as the eye can see, one of Serbia’s most beautiful hotels found its place it audaciously offers new and attractive ski lanes that lead to the emergence of the most beautiful personal expeditions.

Hotel Grand Kopaonik offers top comfort in 189 rooms and suites, as well as countless opportunities year-round for rest and recuperation, enjoyment and relaxation.

T

he Hotel Grand has a tradition that’s inextricably linked to that of Kopaonik, a mountain of outstanding beauty and infinite natural wealth. Hotel Grand Kopaonik has worked tenaciously for four decades already to ensure that it never welcomes its guests in the same outfit or bids them farewell with the same memories. Everything here ranks second to ensuring guests feel good and enjoy every day. Grand is a gathering point for experienced individuals who live true to the ideals defining modern luxury, which is why it proudly carries the epithet of one of the most recognisable symbols of Kopaonik.

By continuously nurturing the tradition of excellent hoteliers over four decades, Grand Kopaonik has come to represent a synonym for exclusivity and unsurpassed quality. Masterfully combining the local hospitality tradition with modern trends of tourism and hospitality,

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A WORLD TAILORED TO TOTAL ENJOYMENT Inspired by the nature of Kopaonik and its core wealth, hidden in its diverse plant world, Grand’s luxury spa & wellness centre radiates with relaxation, beauty, tranquillity and complete dedication to caring for body and spirit.

Its trademark spa rituals carry the signatures of some of the most prestigious spa brands, such as Switzerland’s Niance, while authentic luxury treatments make use of natural local ingredients and original products from the unique Aroma Spa laboratory, including the standout Ether Spa & Wellness.

Visitors are immediately won-over and relaxed by the luxuriously equipped space of the Spa & Wellness Centre.

A captivating indoor and outdoor swimming pool, offering views overlooking mountain peaks, is complemented by the truly inspirational thermal zone. Four different saunas are available, the most distinctive of which is the bio-sauna, with pine needles and dried flowers gathered from the slopes of Kopaonik. Then there’s the Finnish sauna and the infra-red sauna, with a salt wall and lower temperatures that make it suitable for use by children with respiratory issues. The fourth is the lava sauna, which is intended for couples. The special area designated for luxury treatments comprises six massage rooms named after indigenous Kopaonik plants, such as Orange mullein [Divizma], Yarrow [Hajdučka trava] and

Common wormwood [Beli pelin]. The Ether Spa’s treatments are inspired by its unique mountain location and are carefully selected to suit the needs of each individual. Selected services, experienced teams and exclusive treatments combine to make this luxury spa a unique place of relaxation and enjoyment.

The Essence Collection offers a luxurious and carefully selected range of treatments that carry you away from everyday worries in order to relax and balance your mind, body and spirit. You will be left completely revitalised by massages, facial and body treatments, and the Rasul ritual with peeling and mineralising mud.

The captivating outdoor and indoor swimming pool, with naturally organic green walls, is perfectly complemented by the rich thermal zone comprising four different saunas, a steam room with mountain crystals, Rasul rituals and an ice fountain.

LABORATORY FOR BODY AND SOUL In order to create an inimitable atmosphere for guests, Ether Spa therapists work on the spot – in a unique spa laboratory – to create luxury products by hand using carefully selected natural raw materials, fusing various scents of essential oils with dried herbs and flowers sourced from Kopaonik. The aromatic laboratory that’s included within the scope of this spa centre is the only laboratory of its kind anywhere across the entire region and represents the genuine exclusivity of this spa oasis, where visitors themselves have the opportunity to learn the basics of aromatherapy, making their own blends of oils and peeling solutions that they can use during treatments or take home with them.

The art of relaxation, being fully present in body and spirit in the moment, truly indulging in the respite of a holiday – these are things that are cared for here.

RESTAURANTS WITH IRRESISTIBLE FLAVOURS When the rhythms of life are harmonised with excellent dishes made using the finest ingredients, an atmosphere that satisfies all the senses is created. A carefully tailored selection of culinary specialities will ensure every morsel has the taste of perfection. Brand new restaurant and bar concepts, coupled with daily surprises, will ensure your holiday

here is a special experience. Refined and measured, and with equal charm that brings a smile to all faces and brightens everyone’s day, the Grand Salon represents the legacy of style, grandiosity and tenacity, while the Bacco restaurant is a venue worthy of connoisseurs and those who enjoy top gastronomic specialities, with a luxurious and unobtrusive character. A favourite hideout for wine lovers is the private wine cellar, with its top selection of vintages and wine maturing technology that adds value to certain labels after a period of storage and represents an indispensable part of an unforgettable fine dining experience.

Reserved as the surprise of the season is the good old gastro bar Garden, which – alongside a new face and a top offer of local specialities packed in a new form – has also received an unparalleled evening programme that brings a completely new experience to Kopaonik.

And don’t miss out on the chance to enjoy the most exclusive view of Kopaonik’s peaks from the unique Grand Terrace bar, and to complete the experience by sipping top champagne.

THE ESSENCE OF A GOOD LIFE The harmonious and sheltered ambience of the Grand adeptly forms a dynamic dialogue

with nature. With an interior that exudes the beauty of natural elements and simplicity, this is a place where comfort is the most highly prioritised criterion. With carefully selected interior details and an all-day Concierge programme, this famous hotel skilfully shows its holidaying guests that nothing is more important than the ability to enjoy life.

BETWEEN MOUNTAINS AND SKIES Allow yourself to indulge completely in the ambience, feel the warmth of the mountain atmosphere and the timeless touch of elegance.

Explore the charms of this unique mountain experience that’s perfectly adapted to meet the needs of experienced individuals who live a life of style!

INSPIRING KOPAONIK This mythical mountain, representing the largest mountain range in this part of Europe, with waterfalls, forests, rivers, hiking trails, nature reserves, archaeological sites, Via Metallica…

Kopaonik is a site of great discoveries, a hub of exploration and adventure – and the right place for you to find additional energy.

Discover the true nature and incredible energy of this magical mountain.

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Entrepreneur

eu-startups.com

ALEX KENDALL / THE AUTONOMOUS VEHICLE PIONEER WITH GLOBAL AMBITION

Department Of

Engineering 44

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anuary 2022 marked an important milestone for Wayve CEO Alex and his team, as the London-based start-up announced it had secured investment of $200 million in its Series B funding round to accelerate the development of AV2.0 – the next wave of AVs. Wayve is reimagining autonomous mobility. Its AI software, lean camera-first sensing suite and fleet learning platform for AV2.0 is designed to be the most adaptable AV system for fleet operators, one which can quickly and safely adapt to new driving domains anywhere in the world.

WAYVE – THE EARLY DAYS It was during his PhD in Deep Learning, Computer Vision and Robotics, under the

TheTelegraph

When Alex Kendall co-founded Wayve in 2017, he foresaw autonomous vehicles (AVs) with the intelligence to make their own decisions based on what they see with computer vision.

Fast-forward five years and the start-up is pioneering an artificial intelligence (AI) led approach to AVs on a global scale, using the embodied intelligence of an end-to-end deep learning system that continually learns from driving data I was fortunate enough to study computer vision and deep learning for my PhD at the University of Cambridge, with a supervisor and an environment which encouraged entrepreneurship. supervision of Professor Roberto Cipolla in the Machine Intelligence Laboratory, that the groundwork for what would become Wayve began to take shape.

In 2015, Alex contributed to developing a novel deep learning algorithm for semantic segmentation – SegNet – a practical algorithm to achieve accurate real-time pixel-level recognition on real driving sequences. The research was published in the journal IEEE Transactions on Pattern Analysis and Machine Intelligence and is one of the journal’s and research field’s most cited papers.

The early work that led to this paper was first funded by Toyota in 2007 and resulted in Professor Cipolla’s team building a fully labelled/annotated database (CamVid) of urban road scenes and driving videos, with each pixel in every image labelled by hand as belonging to one of 12 classes of object or background (Brostow et al; 2009). Using this data, the Cambridge team then trained state-of-the-art

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wayve.aiblog

Entrepreneur

machine learning algorithms for segmenting and labelling each pixel (Shotton et al; 2008 and Badrinarayanan et al; 2015). In later years, Vijay Badrinarayanan and Jamie Shotton both joined Alex at Wayve as VP Autonomy (2020) and Chief Scientist (2021) respectively.

In a recent blog post, Alex said: “I was fortunate enough at this time (2014-2017) to be studying computer vision and deep learning for my PhD at the University of Cambridge, with a supervisor and an environment which encouraged entrepreneurship. Our awardwinning research showed for the first time that it was possible to use deep learning to teach a machine to understand where it is and what’s around it, plus crucially understand what it doesn’t know.

“With this breakthrough technology, I imagined we could now move away from what we predicted to be the prohibitive hurdles to scale such as HD-maps, LiDAR and rulesbased autonomy, towards machines that have the intelligence to make their own decisions based on what they see with computer vision.

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Wayve began in a garage, developing a Driving Intelligence. The results were quickly promising “Wayve began in a garage, developing a Driving Intelligence. The results were quickly promising. For the first time in the world, we showed a reinforcement learning system learning to drive a real-life autonomous vehicle from computer vision. In our first year, we demonstrated model-free and model-based reinforcement learning driving our car, sim2real and more.

“In five quick years, we established the necessary ingredients to pioneer AV2.0: data, compute, partnerships, operations and – most importantly – our team. We’ve solved the fundamental technical challenges and earned the right to build AV2.0 at scale.”

WAYVE – THE NEXT CHAPTER Using machine learning, Wayve is building a more scalable AV platform that can adapt its driving intelligence to new cities, different use cases and vehicle types, both quickly and safely. This unlocks the potential to scale commercial deployments to other cities more quickly than the conventional AV approach, which typically relies on an expensive and complex array of sensors and is operationally limited by high-definition (HD) maps and rules-based control strategies. Wayve aims to be the first to deploy autonomy in 100 cities.

Wayve’s AV2.0 technology learns from petabyte-scale driving data provided by its commercial partner fleets. The announcement of the new investment from prominent global financial investors and strategic partners will enable Wayve to do the following: To continue to grow its team. The startup currently employs more than 120 people, including machine learning experts and AV industry veterans Develop a Level 4+ AV prototype for passenger vehicles and delivery vans Scale its deployments on partner fleets to commence last-mile delivery pilots Develop the data infrastructure to improve its core autonomy platform at fleet scale.

Achieving this will improve the accessibility of AV technology, allowing more businesses and individuals to benefit from safer, sustainable and more reliable forms of transportation.

“We were the first team to develop the scientific breakthroughs in deep learning to build autonomous driving technology that can easily scale to new markets using a datalearned approach,” said Alex. “Today, we have all of the pieces in place to take what we have pioneered and drive AV2.0 forward.

“We have brought together world-class strategic partners in transportation, grocery delivery and compute, along with the best capital resources to scale our core autonomy platform, trial products with our commercial fleet partners and build the infrastructure to scale AV2.0 globally.”

The latest round of funding brings total equity raised to $258 million since inception and reinforces Wayve’s position as a leader in autonomous driving. eng.cam.ac.uk

PROFILE

Shoulders No, we would rather remain in the cellar of civilisation with the notion that we’re the first, and thus also the best.

Konstrakta is a different case, a precedent that’s finally caught everyone’s eye and stayed there, burrowing its way further into the brain and heart. Her artistic undertaking, representing a continuous and uncompromising creative endeavour, has over the years aligned

SLAVIMIR STOJANOVIĆ, AKA FUTRO, DESIGNER, ILLUSTRATOR, VISUAL ARTIST

Am I to die?

What horror!

Am I to die?

What horror!

And maybe I’m one that won’t.

Horror.

T

hese verses by Ana Đurić Konstrakta, from her masterpiece Nobl, transport us back to the roots of the spirit of these lands. An obstinate departure from discontinued realities was an essential ingredient for the survival of the collective and individual spirit for centuries. On the flip side, our incurable hobby is continuous limbo, which is practised ever more successfully by each generation. It turns out that, in that way, in the traditional manner of patricidal killers, we are capable of crushing all of our ancestors into disconnected molecules, just so there’s no chance that we’d have to climb, from generation to generation, onto the shoulders of the next greats and see further, wider and clearer.

All an ingenious spirit needs is a platform. A socially organised structure through which it spreads exponentially and unstoppably. This implies pillars of support to carry this structure, and they are represented by people, individuals from the past, present and future who, with their contribution and mutual inspiration, make that structure permanent, resilient and unbreakable with and drawn from global and local culture references, and thus – through perseverance and non-capitulation – has become an entity unto itself, self-aware and monolithic.

What was essential for it in today’s time was to forever cement itself where it rightfully belongs, whether that’s in the framework of the Eurovision Song Contest, the seemingly superficial headdress of European pop culture, but a platform that allows those with such a desire to leap and dive as deep as they want. Konstrakta, whether she wanted to or not, leapt into the unknown in the name of all of us and achieved something that we’ve struggled with for decades: she returned spirit, culture, creativity and inspiration to their natural place, in daily life.

All an ingenious spirit needs is a platform.

A socially organised structure through which it spreads exponentially and unstoppably. This implies pillars of support to carry this structure, and they are represented by people, individuals from the past, present and future who, with their contribution and mutual inspiration, make that structure permanent, resilient and unbreakable.

Ana Đurić is backed by a strong team. Zemlja Gruva is a group composed of the best in the business. Maja Uzelac and Ana Rodić are a dream team with which, as it turns out, everything is easy, even making such a masterpiece Triptych, as an audio-visual spectacle that will be studied in the history of art.

With the Dah Theatre exhibition ‘You Must Be A Zenithist!’ at Belgrade’s Neon Gallery, she reminded us all of the source of that indestructible creative substance to which all of us here are bound. It was a hundred years ago that Ljubomir Micić created a structure that spread that spirit and ensured that it reached all the way to us today. By blending Dadaism, Surrealism and Constructivism, European and local artists, writers, painters and thinkers gathered around Micic’s Zenit magazine and created that obstinate cultural construct that found itself in the middle of our coordinates, precisely between West and East.

The strength of every cultural framework lies in the accepting of its predecessors, nurturing greats and their achievements. It is only in that way that we earn the right to inherit that legacy and thus create better successors. Konstrakta – as Ana Đurić, but also as an overall art project – stands firmly in equilibrium on the shoulders of previous projects and their actors. The Idoli album The Defence and the Last Days [Odbrana i poslednji dani] is one of them. Hand-in-hand with her are also the spirit of The Marathon Family and Monty Python. There are also parts of Belgrade at night, Bota and Tucko.

She has Branko Vučićević, Makavejev, Šijan.

It’s easy when one becomes aware of the list, they choose their own shoulders.

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Architecture Sustainable Office Buildings

Improving Employee Health The health and wellness of employees extend beyond creating greener, more sustainable business practises. Many of the recent advances in green building are also keeping employees healthier than ever before. Sustainable office buildings seem to be the wave of the future

TURBOSEALTECH NEW INCUBATOR AND OFFICE BUILDING

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W

ith the alarming changes in global climate and the running out of non-renewable energy resources, sustainability in design has become an essential requirement and not just a design option.

Architects from around the globe are now competing to design the most energy-efficient buildings and achieve the highest energy and green building rating scores.

Sustainable architecture has become very common, today, and the newly developed technologies to enhance it are in continuous and rapid development. So, here is a list of 10 of the world’s most sustainable office buildings and a brief on the techniques they have adopted to enhance performance, reduce energy consumption and provide a healthy working environment.

THE EDGE – AMSTERDAM, NETHERLANDS

THE EDGE – AMSTERDAM, NETHERLANDS

This office building in the Zuidas business district was designed by London-based PLP Architecture. It features a 15-storey atrium, which connects its interior space to the outside world and reflects a contemporary working environment. The Edge happens to have achieved the highest BREEAM (BRE Environmental Assessment Method) rating ever. It particularly standouts for its rooftop solar panels, which cover a vast area of 4,100m2.

Its massive atrium, which faces the north, allows daylight to flood the building. And Ethernet-powered LED-connected lighting, which can be controlled from smartphones, is used for the offices. The building also has sensors to measure temperature and carbon dioxide levels. It is also provided with a rainwater harvesting system that utilises reserved water for toilet flushing and plant watering.

BULLITT CENTER – SEATTLE, USA

This 6-storey commercial office building was designed by Miller Hull Partnership for the Bullitt Foundation to be certified as a “Living Building”. It was provided with a rainwater harvesting system that is capable of collecting and filtering 56,000 gallons of water. It also has five aerobic composters that treat human waste efficiently and without releasing an unpleasant odor.

BULLITT CENTER – SEATTLE, USA

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Architecture Sustainable Office Buildings The building’s rooftop additionally carries photovoltaic cells which generate 230,000 kilowatt-hours a year, which is the needed amount to operate the building.

RB12 – RIO DE JANEIRO, BRAZIL

The Sao Paolo / Paris-based Triptyque designed the RB12 commercial building to reanimate downtown Rio while adopting positive energy and sustainable development strategies. The building produces its own needs of electricity via photovoltaic cells. It

has a bioclimatic façade with windows that automatically control light intake, allowing for optimized daylight entry, and it carries gardens on its terraces which contribute to the cooling process of the interior spaces.

PIXEL – MELBOURNE, AUSTRALIA

Studio505 was assigned by Grocon Construction and Development Company to design a 6 Star Greenstar Carbon Neutral Development and Sales office building. The relatively small building integrates multiple

environmental systems to enhance the overall building performance.

The systems include an extensive green roof and a rainwater collection system which might be capable of making the building self-sustainable regarding the water supply. It also features a quite remarkable façade that combines playfulness with functionality—it is composed of fixed shading louvers, double-glazed curtain walls, and solar panel shades. Pixel has managed to achieve a perfect 100 score under the Green Star rating system as well as a LEED platinum certificate.

PIXEL – MELBOURNE, AUSTRALIA

RB12 – RIO DE JANEIRO, BRAZIL

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PIXEL – MELBOURNE, AUSTRALIA

1 ANGEL SQUARE – MANCHESTER, UK

1 ANGEL SQUARE – MANCHESTER, UK

This office building, designed by 3DReid, has the highest BREEAM rating in the United Kingdom, with a 50% reduction in energy consumption and an 80% reduction in carbon emission, compared to the city’s other commercial buildings. It is enveloped in a double-skinned façade and high thermal mass concrete to control the heating and cooling of the building.

The building is additionally provided with a rainwater harvesting system to lower water consumption, and it uses rapeseed from local farms to produce fuel for building operation. Moreover, the designers have prepared the building for possible future climatic changes, based on the predicted

1 ANGEL SQUARE – MANCHESTER, UK

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Architecture Sustainable Office Buildings

CH2 MELBOURNE CITY COUNCIL HOUSE 2 – MELBOURNE, AUSTRALIA

HEKIKAI SHIN-YO KINKO, NAGOYA, JAPAN

weather data for 2050. They have accounted, in their design for a possible rise in average temperature by 3 – 5 degrees during summer and increased rainfall by 30% during winter.

HEKIKAI SHIN-YO KINKO, NAGOYA, JAPAN

This 4,140sq/m office building (Kengo Kuma & Associates), serves for the bank and is situated at the center of Nagoya city.

The building welcomes its users with a big green void placed at a point facing the intersection of the building. This volume is designed as a “cubic green” that joins the ground and the rooftop.

Kengo Kuma wraps office building with wooden lattice in Japan The louvers applied at the façade of the theater are laid out diagonally and resonate with the wooden louvers for the exterior of the bank. Wooden louvers not only create a gentle rhythm to the streets but also take in foresty sunbeam inside the building.

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CH2 MELBOURNE CITY COUNCIL HOUSE 2 – MELBOURNE, AUSTRALIA

CH2 MELBOURNE CITY COUNCIL HOUSE 2 – MELBOURNE, AUSTRALIA

The commercial office building was designed

by DesingInc. to promote the interaction between the city and nature. Its façade is designed to control the indoor climate and its concrete structure minimizes variance in temperature. The building is 100% naturally ventilated via tapered ventilation ducts.

The air is changed every half an hour, providing a continuous supply of fresh air. Natural ventilation is combined with natural lighting to reduce energy consumption. Accordingly, the building managed to satisfy and exceed the 6-star energy rating system in Australia. It is expected to cover its innovation costs within 10 years from its completion date in 2013.

GENZYME CENTER – MASSACHUSETTS, USA

The office building, designed by Behnisch & Partner, is headquarters to a number of biotech companies. Its outstanding feature is its 12-story-high atrium which provides natural light to 75% of the building and refreshes the indoor air via stack effect.

Numerous Hanging mirror panels reflect the light coming through the atrium to ensure its distribution throughout most of the building.

A concrete structure is used for the building because of its various applications and high thermal mass, and the building’s green roof collects rainwater for evaporative cooling towers. Genzyme center was capable of achieving the LEED Platinum certificate for Building Design and Construction.

GENZYME CENTER – MASSACHUSETTS, USA

ONE EMBANKMENT PLACE – LONDON, UK

The world’s second-highest BREEAMrated building, in London, operates on biofuel sourced from locally collected and refined waste vegetable oil. It features green walls and gardens and saves water by using low-flush toilets and waterless urinals. It is, also, provided with sufficient staircases in the atria to be used instead of lifts for energy saving. The 25-year-old building was refitted by London-based TP Bennett, and it had the highest BREEAM rating of 96.31% before it was surpassed by The Edge in 2016 which could get a rating of 98.36%.

ONE EMBANKMENT PLACE – LONDON, UK

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My life

Ivanka Popović, professor at the Faculty of Technology and Metallurgy of the University of Belgrade

FEAR OF ‘THE OTHER’ IS AT THE ROOT OF ALL CONFLICT

She served as rector of the University of Belgrade in her last term and displayed the required decisiveness and strength to preserve this institution’s dignity and clear position as a public asset that should serve society, and not be used as a tool in some political or social clashes.

It could be said that she inherited some of her political thinking from her grandfather, David ‘Daka’ Popović (1886-1967), who was a senator, the first noble ban of the province of Danube Banovina and served as minister of Agrarian Reform, while some of her calmness was instilled by her father, renowned Yugoslav diplomat Gavra Popović 54

June

By Radmila Stanković

W

hen someone ’s I D card states that their birthplace was Rio de Janeiro, a journalist naturally latches onto that information. And immediately receives the answer that in 1959, when she was born, Ivanka’s father, Gavra Popović, was serving as a diplomat in Brazil. That’s how it came to be that his only daughter spoke her first words in Portuguese, but by the time she was two and a half her father had completed his term in that country. Her father later served twice in Washington, which would mark the years of Ivanka’s schooling.

“With the changing of schools, I had to learn to adapt. You’re always the newcomer in class and have to be communicative and find common topics with your new acquaintances.

Back when I was a child, ideological divisions were huge. While living in America, we represented a socialist country, so on occasion everyone would look at us with a sense of wonder. On the other hand, life brings with it the same temptations wherever you are, and the most important thing for me was to handle the new environment and adapt to it. The experiences I gained as a very young person proved useful later in life.”

The upbringing that she received at home determined the way she would behave in life.

That was a hard-working family unit where a lot was placed on doing something properly if you’re going to do it at all, dedicating yourself completely to that job. Whatever you undertake, you should do your best, standing behind and taking responsibility for what you did.

“My parents engaged particularly in developing my work ethic, because – given that I’m an only child – they didn’t want me to be a stereotypical spoilt brat. They supported everything in which I expressed an interest and taught me what freedom is, but also that freedom comes with responsibility. You might not be too fond of that responsibility when you’re a child, but it helped me later in life.

Everything I took from the family, where good relations reigned supreme, formed foundations that gave me a sense of certainty and self-confidence to believe that I could try my hand at anything I wanted. And that wouldn’t mean defeat even if I failed, but rather that I

You represent your country in a foreign environment, which puts everything in a different context. Or rather, it is never said that so and so did something by name, but rather ‘that little one from Yugoslavia’ did it needed to find a different way to approach the situation. It’s important not to quit.”

Her childhood didn’t lack anything, but nor was it one of overabundance. They acted as a good household with what they had, not wasting anything. Diplomatic service may seem glamorous and be presented as a life of privilege, but for Ivanka it was about getting acquainted with a serious job, a serious profession that her father mastered during the years of a career that demanded great dedication, because a diplomat has a 24-hour-a-day job.

“You represent your country in a foreign environment, which puts everything in a different context. Or rather, it is never said that so and so did something by name, but

rather ‘that little one from Yugoslavia’ did it.

My parents reminded me of that constantly when we were living abroad. Just as receptions weren’t places for having a good time, but rather opportunities for direct exchanges of information and conversations about business. My father was very busy, so I was happy whenever he was able to spend time with his family. Given that we were travelling constantly, it wasn’t really possible for my mother to have her own career, so she dedicated herself to us. She was a strong pillar of support for both me and my father. I had a beautiful and tranquil childhood. That was a time when it was possible to make longterm plans, because people lived under stable conditions. That’s almost impossible today.”

Although both her parents are from Vojvodina, Ivanka has never lived in the province, so when we ask her what’s Vojvodinan about her, she smiles and says that home felt like Vojvodina.

“Due to historical circumstances, the fact they weren’t part of their homeland for a long time because the territory belonged to another state, the people of Vojvodina are very dedicated to their country, so the Popović family had a tradition of public engagements in social life. Perhaps the Vojvodina in me is that which I inherited from my father, and

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My life

Ivanka Popović, professor at the Faculty of Technology and Metallurgy of the University of Belgrade

that’s peaceability and patience. Of course, that doesn’t apply to all Vojvodina folk. Srem folk are said to be temperamental, while us Bačva folk are mild-mannered. I have strong ties to Vojvodina, which I love due to its multiculturalism.”

She lived in America during a time when there was a very strong movement for black rights against racial discrimination, and protests against the war in Vietnam, and for her that was an inspirational kind of citizen engagement.

“You can’t be left feeling indifferent when observing the people who led these movements; that inspires you to believe that it’s worth fighting for ideals. You see people who’ve invested massively in their struggle.

That’s why it saddens me when I see what’s happening today and how the positive results of all those difficult struggles are being undone; struggles in which people really sacrificed themselves, and some even gave their lives.

We are today once again confronted by vast differences and huge divisions among different social categories in society, which is very discouraging, particularly at a time when such great technological advances mean that the world should be progressing.”

Rich experience and vast knowledge have shaped Ivanka’s views on the differences in society that are today the cause of many major conflicts.

“It seems that at the root of everything lies a fear of that which is different or, to be more specific, as a rule people avoid that which is different, that with which they’re not familiar.

That’s why it’s important to insist, always and in every situation, that people are able to communicate despite all their differences.

And we are a society that’s deeply divided.

It’s essential to overcome that division; it’s important to talk, to be patient and tolerant, to find ways to overcome differences so that we can live in peace and harmony.”

The current models on the public scene don’t inspire confidence that the culture of dialogue is a strong point among Serbs.

“The culture of dialogue is vanishing, with the model of conflict being offered as a solution, which is a truly unbelievable regression for human society.”

It is noted in Ivanka’s biography that she

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The culture of dialogue is vanishing, with the model of conflict being offered as a solution, which is a truly unbelievable regression for human society “hails from a famous Novi Sad family”. This also acknowledges the fact that her ancestors had various social and political engagements, but also the fact that many members of that family participated in World War II, among the ranks of anti-fascists. Nonetheless, the most interesting figure in the Popović line was Ivanka’s grandfather David ‘Daka’ Popović (1886-1967), a civil engineer responsible for the constructions of several important buildings in Novi Sad and Vojvodina, a senator, the first ban of the province of Danube Banovina and minister of Agrarian Reform. He also dealt with the history of Serbs in Vojvodina

and was a versatile figure with broad interests.

“What my grandfather did and dealt with professionally, the tribulations he faced, were things that I only started to address in my more mature years, by following the course of his career and looking at where he halted his public engagements and why. I found that very interesting and considered that, in some way, I was continuing the family tradition of public action that had been important in our family.

Political engagement requires that you be willing to compromise. Compromise doesn’t also mean that you’re ready to set aside some of your principles. When he was expected to ignore his own, he resigned from the positions he held, and I think that’s worthy of respect. I remember him only vaguely, but I feel some connection with him. He sent his own sketches in every letter he wrote to us when we were abroad, as a little gift for me.

He died while we were in America, with my grandmother passing away soon after. My mother’s parents had died during World War II, so it was always the three of us as a

While I was rector of the University of Belgrade, we did as much as we could, as much as the circumstances allowed. It was an honour for me to perform that duty and I hope that our performance will leave a lasting mark

family unit. And we often relocated, which functioned well, but our time spent residing abroad meant that we missed out on having a wider network of family and friends.”

Ivanka had known as far back as primary school that her choice of vocation would be some kind of combination of natural and technical sciences. She initially leaned towards pure natural sciences, but her final decision was to enrol in studies at the Faculty of Technology and Metallurgy, where she earned her doctorate and stayed on as a professor. Or, more precisely, she completed the first two years of her studies in America, then underwent a slightly complicated transition to the Belgrade Faculty of Technology and Metallurgy, but that didn’t have a negative impact on her very successful studies. Today, as a professor, she’s happiest when she recognises a good student, i.e., a good future expert.

“The standout students are always those that you feel aren’t only closely connected to the subject, but also take a broader overview of aspects of their future profession, have broad interests, ask you questions and want

to know as much as possible. That’s always been the key difference compared to the others. The average grade is a measure, but it isn’t the most important one. My opinion is that the breadth of observing things is very important in the case of a chemical engineer or chemical technologist. The fact is that this is a very progressive profession that’s highly sought-after around the world. In our country it’s a profession on which the functioning of our economy is directly dependent. It was in high demand during Yugoslavia’s period of rapid economic development, as were other technical professions. When we entered the period of sanctions and wars, we experienced the total collapse of individual areas, particularly in the chemicals industry.

It is now developing once again, but is doing so in accordance with completely different principles and criteria that are shaped by the need for sustainable development and with a view to all possible environmental aspects that enable technological development that doesn’t imperil the future. That’s something I’m very keen on instilling in my students: to

always see the bigger picture and not focus too closely on their own area of expertise.”

As a professor, Ivanka is loved by her students, because they can communicate with her easily and value her expertise. She is very interested in their problems and knows that life isn’t easy for them and that it’s today much harder to secure the finances needed for their studies. She is aware that, despite platitudes about free schooling, everything else costs a lot and it’s difficult for students to secure a job that they’d like to do. “ Today ’s professor must encourage students to not only concentrate on their academic studies, but also to work on their broader personal development, to master various other essential skills, from knowledge of foreign languages to a driving license, which can empower them on the job market. That’s because companies aren’t only seeking experts, but also individuals who are resourceful, dynamic and proactive.”

When she was appointed rector of the University of Belgrade in 2018, Ivanka found herself at the centre of public attention like few other Belgrade University leaders before her. She wasn’t affiliated with a political party and was led exclusively by her own knowledge and principled attitudes, which she used to defend the autonomy of the university. She’d previously served as vice rector for a long time, so she largely understood how the university functions. She knew what awaited her and expected certain types of complications.

“I’d prefer to say that I expected various types of challenges. Of course, this isn’t just about me, but rather is also about my team,

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My life

Ivanka Popović, professor at the Faculty of Technology and Metallurgy of the University of Belgrade

without the support of which I wouldn’t be able to do much. I carefully selected my vice rectors and am extremely proud that we worked together harmoniously as a collegium, really functioning as a team, which meant that we could better handle all challenges. We expected some things, but at times we weren’t even sure that we’d make it through the entire term. That was a turbulent three-year period, with much more challenges than there’d perhaps been during some other terms. And then there was the addition of a pandemic. We did as much as we could, as much as the circumstances allowed. It was an honour for me to perform that duty and I hope that our performance will leave a lasting mark.”

When it comes to what makes her most proud and the positive traces that she and her team left behind following their mandate, this former rector is clear.

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Halting the departures of young people isn’t possible without profound systemic changes, and I believe deeply that finances aren’t the main reason people are leaving Serbia. We could retain most of them if we demonstrate that the system and institutions work properly and that these educated young people can believe in them

“That good trace is the effort to maintain the dignity of Belgrade University, to clearly position it as a public asset that should serve society, and not be used as a tool in some political or social clashes. A university serves everyone and I think it’s terrible if it’s abused for some other purposes. The task of all universities in Serbia, including Belgrade’s, is to take care of the education of young people, which is why there must be broad social support for universities. We don’t know what awaits us, and it is only with educated people that we can survive and respond positively to all the challenges of modern life.”

Many people are ready to suggest that the flood of private colleges offering dubious qualifications has lowered the level of higher education in Serbia. However, professor Popović believes it’s normal for different sources of capital to invest in education today

and that all accredited private universities have formally satisfied the various standards that the state expects of educational institutions: “Their appearance is encouraging for stateowned faculties, preventing them from being able to relax. In this demographic situation, we fight for every student, and that student can choose what course to study. And they can choose what they want from their education: whether they want a profession that’s selected or perhaps want to more easily secure a qualification that would create a job opportunity for them. All countries have universities that are competing against one another and have different priorities, and competition leads to improving the quality of the entire education system, but that’s a lengthy process.

“To the extent that state-owned faculties are somewhat slaves to tradition, private colleges can be more flexible. Students have the possibility to choose, but employers also choose, and they choose those students from a college that provides knowledge that they need.”

Apart from the president of Serbia and a few government ministers who graduated from state-owned faculties, a large number of ministers in the Government of Serbia are graduates of private colleges that can’t be found at their own addresses. This gives the public the right to ask what system of values is being promoted by the people in power? And that’s without even mentioning individuals buying fake diplomas.

“Whether it’s the state or the private sector, the employer has to decide who it will employ. If we agree to compromises in hiring personnel who aren’t competent, such a state cannot have a bright future. It is, of course, up to those in power to decide. If the correct political decision for the development of society is made, that might be difficult, but it will bring long-term benefits – just not necessarily in time for the next election cycle. These are long-term investments, and politicians are reluctant to make such decisions, preferring to opt for those with an immediate impact.

“That’s why it’s important to return to personal responsibility, and thus to the responsibility of voters regarding how they vote.

If you vote, of your own free will, for people who received their degrees in a dubious way, it’s clear where that leads.”

The most important question for me is what kind of example we’re setting, as an academic community, for our students Ivanka has often highlighted one of the problems evident both at the university and in the wider society, and that’s the policy of turning a blind eye, which brings trifling benefits to individuals while causing damage universally. That’s why the system functions in some segments and not in others.

“The most important question for me is what kind of example we’re setting, as an academic community, for our students.

Students watch what we do and say very carefully, and whether what we say is aligned with what we do. If that message isn’t aligned, we can’t expect our students to believe in the possibility of surviving in another way. An exit from that vicious cycle must be found

somewhere, and I wouldn’t like abandoning the country to be the solution. Halting the departures of young people isn’t possible without profound systemic changes, and I believe deeply that finances aren’t the main reason people are leaving Serbia. We could retain most of them if we demonstrate that the system and institutions work properly and that these educated young people can believe in them.”

Alongside her teaching obligations, which are her greatest commitment, Ivanka also has significant obligations in international organisations: the European University Association, the Danube Rectors’ Conference and Circle U – the international project to develop the European University Alliance, of which the University of Belgrade is a member. When all this is combined, her day is packed and doesn’t leave her with much free time. Her scientific obligations have led to her sacrificing many things, and she’s only today returning to books that she’s regularly bought at the Book Fair but didn’t find time to read. She most enjoys spending time outside the city. And she says that Serbia is beautiful and has many beautiful places that are worth exploring and visiting.

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CHILL OUT Red Star Is Serbian Football Champion For The Fifth Time In A Row Red Star football team won the title of Serbian champion by winning at the “Rajko Mitic” stadium over Vozdovac (3:1) in the last, 37th round of the championship. With a total of 100 points, two more than Partizan, Zvezda won the fifth consecutive and the 33rd national champion title in total. Red Star will play in the qualifications for the Champions League from the third round as the first qualifier, Partizan as the second qualifier. Red Star fans gathered to celebrate the title on central Belgrade streets with fireworks, burning torches, and singing.

After the ceremony awarding medals and trophies, fans are heading to Kalemegdan Park, where traditionally celebrate the success of their club.

Cannes Winner Ruben Östlund For ‘Triangle of Sadness’ Ruben Östlund won his second Palme d’Or for “Triangle of Sadness,” a biting satire of the rich and (Insta-) famous, bringing the 2022 Cannes Film Festival to a close. Östlund’s follow-up to his 2017 Palme-winning “The Square” takes a boat full of shallow people — models, millionaires and their various trophy partners — and abandons them in deep water, forcing the survivors to reconstruct a desert-island society where money holds no power. In such a system, for better or worse, beauty becomes the most valuable asset.

12M People Will Enjoy Marking Of Queen’s 70 Years On The Throne A record 12million people are set to celebrate the Queen’s Platinum Jubilee at street parties. The nation’s admiration for Her Majesty will bring together people like never before, organisers believe, with more than 200,000 special lunches due to be held on 5th June. And the royals will be leading the way, with the Prince of Wales and Duchess of Cornwall and the Earl and Countess of Wessex all sitting down to tea and cake at community events.

The Big Jubilee Lunch is just one part of the four-day extravaganza to honour the Queen’s historic 70 years on the throne, which kicks off on 2nd June.

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Mona Lisa Attacked With A Custard Pie Visitors to the Louvre art gallery in Paris were left stunned by the incident which happened moments before closing time on Sunday 29th May. Witnesses said a man, who was wearing a wig and dressed as a woman, was rolling past Leonardo da Vinci’s famous masterpiece in a wheelchair before suddenly leaping to his feet and launching a pie at the canvas. The perpetrator then threw a bouquet of roses into the air and was tackled to the ground by Louvre security guards moments later. No damage was caused to the priceless painting which is protected by a bulletproof screen. Scores of bystanders watched on, snapping pictures of the Mona Lisa which was partially obscured from view by smears of pie crusted on the protective glass.

Picasso’s Masterpiece Of Lover And Muse Shines At Sotheby’s $408m Evening Sale Following the Macklowe Collection’s white-glove sale, the Modern Evening Auction saw glittering results at Sotheby’s New York. Amongst 58 lots offered, 51 were sold and garnered an 87.9 percent sale rate. The sale total achieved US$408 million dollars – ranking as the third-highest total for an auction at Sotheby’s. Picasso’s Femme nue couchee – a depiction of lover and muse, Marie-Therese Walter – was the sale’s most expensive lot and fetched US$67.5 million dollars. Alongside his work, Monet’s Le Grand Canal et Santa Maria Della Salute and Cezanne’s Clairiere (The Glade) paintings were the second and third most expensive lots. Each of the two paintings both realized more than US$40 million dollars.

Lost Cities Of The Amazon Discovered Using ‘Lasers In The Sky’ A newly discovered network of ‘lost’ ancient cities has been discovered in the Amazon, using lidar technology – dubbed ‘lasers in the sky’ – to peer through the tropical forest canopy. The cities, built by the Casarabe communities between 500-1400 AD, are located in the Llanos de Mojos savannah-forest, Bolivia, and have been hidden under the thick tree canopies for centuries. They feature an array of elaborate and intricate structures unlike any previously discovered in the region, including 16ft-high terraces covering 54 acres – the equivalent of 30 football pitches – and 69ft-tall conical pyramids.

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The Best Watches OF WATCHES GENEVA 2022 The now-largest horological trade show of the year returned in 2022 for its in-person first edition since 2019. Thankfully, 2022 turned out to be a fine mix of highbrow complications (some of which were brand new) and fresh takes on more utilitarian wares. Narrowing down the newness to just 10 was a tough challenge, but the following were definitely among our favourites.

Hermès Arceau Le Temps Voyager Pair this to a platinum/titanium or steel case, and you’ve got yourself one hell of an elevated timepiece.

Diameter: 41mm; Movement: automatic; Functionality: World time, Water Resistance: 30m

Price €27,000

Patek Philippe 5326G-001 It only needs manual adjusting once a year if it’s kept wound.

Diameter: 41mm; Movement: automatic; Functionality: Time; second time zone; annual calendar; Water Resistance: 30m.

Price €71,500

Omega Seamaster Planet Ocean Ultra Deep As part of the Five Deeps Expedition in 2019, the Ultra Deep made history when it reached the deepest place on Earth Diamewter: 45.5mm; Water Resistance: 6,000 meters

Price €11,200 62

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Parmigiani Fleurier Tonda PF GMT Rattrapante Tudor Black Bay Pro

The Tonda PF GMT Rattrapante integrates “flyback” functionality into its GMT function — when not in use, one hour hand is superimposed over the other Diameter: 40mm; Movement: automatic; Functionality: Rattrapante GMT (second time zone); Water Resistance: 60m

Handsome looks, intuitive functionality, reasonable price and great bracelet are already winning people over.

Diameter: 39mm; Movement: automatic; Functionality: Time; second time zone; Water Resistance: 200m

Price €26,800

Price €3,735

Vacheron Constantin 222 The original 1977 Vacheron Constantin 222 luxury sports watch is a rare bird indeed — with less than 1,000 examples out in the wild.

Diameter: 37mm; Movement: automatic; Functionality: Time and date; Water Resistance: 50m

Price €58,360

Rolex GMT Master II 126720VTNR New Rolex is available in a new colorway and on both Oyster and Jubilee bracelets right from the jump.

Diameter: 40mm; Movement: automatic; Functionality: Time; date; second time zone; Water Resistance: 100m

Price €10,300

TAG Heuer Aquaracer Professional 200 Solargraph The Aquaracer Professional 200 Solargraph is TAG Heuer is the first solar-powered timepiece, requiring only two minutes of exposure to sunlight in order to run for a full day. Diameter: 40mm; Movement: solar-powered quartz; Functionality: Time and date; Water Resistance: 200m

Price €2,750 June

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Culture

calendar Les Misérables

23 June – Madlenianum The musical, already seen by generations of our audience, directed by Nebojsa Bradic, under the conducting baton of Vesna Souc, still intrigues. The first premiere was on 18 October 2007, with Zafir Hadzimanov as Jean Valjean. At the request of the audience and the cultural public, this cult play, which has become a symbol of the Madlenianum, was revived in 2014,

Mario Biondi

8-9 June, Bitefart Café Mario Biondi, an Italian soul-jazz star who was also called Italian Barry White, will hold a Belgrade concert on 8 and 9 June. He will perform at the Summer Stage of the Bitefart Café.

This singer and songwriter with a gorgeous and unique voice is coming to Belgrade to present his new album

with the same team of authors, but with major casting changes. One of the greatest novels of French and world literature, Les Misérables of Victor Hugo, continues to be of interest to film, television and drama creators, and since the moment it was written in 1862, it has been among the bestseller in the whole world.

10th ArtLink Festival

“Romantic”, which premiered in March. Mario Biondi wrote “Romantic” in collaboration with band members Massimo Greco and David Florio. “A handful of musicians, beautiful female voices, songs full of groove, reminiscences of the sound of the seventies that inspires us to reach the excellence of soul music,” Mario said of the new album.

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25 June – 25 September, various locations

This year, the ArtLink festival, in its tenth edition, as part of the European initiative Cities Festivals and with the motto Artists for Nature, is being held from 25 June to 25 September at various locations in several cities in Serbia.

The programs of the 10th Art Link Festival will take place this year at the Belgrade Fortress, at the Golubac Fortress, Ram, Pirot, Petrovaradin Fortress and Felix Romulijana. Artists from Austria, Belgium, Italy, Denmark, Spain, Germany, Brazil, Morocco, Egypt, Israel, the Czech Republic, Slovakia, Hungary, and the region will revive some of the most important and beautiful cultural monuments in Serbia and support the nature protection campaign.

SEE MORE: WWW.CORDMAGAZINE.COM

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Bismarck: The Iron Chancellor

Grip

Otto von Bismarck (1815-98) has gone down in history as the Iron Chancellor, a reactionary and militarist whose 1871 unification of Germany set Europe down the path of disaster to World War I. But as Volker Ullrich shows in this new edition of his accessible biography, the real Bismarck was far more complicated than the stereotype. A leading historian of nineteenth- and twentieth-century history, Ullrich demonstrates that the “Founder of the Reich” was in fact an opponent of liberal German nationalism.

The week just started and already you’re playing catch-up. At the end of another busy day, your to-do list is longer than it was this morning. Enter GRIP: the book for everyone who has too much to do. This fresh, no-nonsense guide brings clarity and direction to even the most hectic workweek. Using tools you know - like your calendar, to-do list, and email - Grip walks you through working smarter, thinking bigger, and clearing the way for what matters most. And Grip’s pick-and-choose structure makes it easy to dive in and start applying what you like straightaway.

Recipes from an Italian Butcher

Humour

The Italian approach to cooking with meat is to keep things straightforward and maximize the flavour. This book showcases simple, hearty dishes that are true to this tradition, from chicken cacciatore and braised beef with Barolo to osso buco and Roman lamb. With more than 150 recipes, most published for the first time in English, it’s comprehensive and authoritative, demystifying the different cuts, cooking methods, and techniques unique to each meat type - along with the side dishes that best complement them.

A compelling guide to the fundamental place of humour and comedy within Western culture—by one of its greatest exponents Written by an acknowledged master of comedy, this study reflects on the nature of humour and the functions it serves. Why do we laugh? What are we to make of the sheer variety of laughter, from braying and cackling to sniggering and chortling? Is humour subversive, or can it defuse dissent? Can we define wit?

Volker Ullrich 1295 rsd

The Silver Spoon Kitchen 4009 rsd

Rick Pastoor 1700 rsd

Terry Eagleton 2186 rsd

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&FACES PLACES 11/05/2022

Program Of French Regions Presented At The French Embassy A reception was held at the French Embassy in Belgrade on the occasion of the presentation of the new program of the French Institute, which will represent the French regions, and the island of Corsica was presented for the first time within the program called “Direction”.

H.E. Pierre Cochard, the French ambassador to Serbia, stated that the choice of Corsica was not accidental and in that sense pointed out that the program would renew the old ties between that “island bathed in light” and Serbia, which were built during the First World War.

12/05/2022

Swiss Cooperation Program For Serbia 2022-25 Introduced Support of Switzerland for Serbia in the European integration process, contributing to sustainable inclusive growth, and encouraging democratic processes were announced at a ceremony marking the presentation of the plan of the cooperation between the two countries for the 2022 to 2025 period. The ceremony held in Belgrade was attended by H.E. Urs Schmid, Swiss Ambassador in Serbia, Economy Minister of Serbia Andjelka Atanasković, as well as numerous representatives of the EU and the Government of Serbia.

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SEE MORE: WWW.CORDMAGAZINE.COM

12/05/2022

Moroccan Handicrafts Presented In Novi Sad As part of the celebration of the 65th anniversary of the establishment of diplomatic relations between Rabat and Belgrade, on 12 and 13 May, a special event of Moroccan crafts and handicrafts was held in Novi Sad. This event was organized by the Embassy of the Kingdom of Morocco in cooperation with the Chamber of Commerce of Vojvodina and the institution of the Kingdom of Morocco, La Maison de l’Artisan (House of Crafts from Morocco). The Moroccan delegation that arrived to Novi Sad on this occasion consisted of high state officials, representatives of the craft sector in Morocco, as well as the private sector.

16/05/2022

CorD Charity Masters Held At The Belgrade Marathon Traditional humanitarian-run CorD Charity Masters was held on 15th May as a part of the 35th Belgrade Marathon. This year the 14th edition of the run dedicated to the less fortunate was attended by numerous members of the diplomatic, government, civil and corporate communities. Most members were from the following teams – the Embassy of Malaysia, Embassy of the Czech Republic, and Radisson Collection Hotel.

CorD Magazine wishes to congratulate all attendees of this year’s CorD Charity Masters on their humanitarian effort. We hope to see you again next year!

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&FACES PLACES 17/05/2022

EU Day Celebrated In Belgrade The European Union continues to be a project of peace and solidarity, as well as a zone of prosperity and democracy where people can realize their dreams, said EU Ambassador to Serbia Emanuele Gioffre at the opening of the European Festival, which was held in Kalemegdan.

At the Kalemegdan promenade, stands were set up where member countries presented themselves, and where visitors could try food from different parts of Europe, but also get acquainted with the cultural offer and even get books in the language of the country presented.

20/05/2022

Serbia: Ready For Stockholm+50 The fifth and last in a series of dialogues on the environment in Serbia was held at the Jevremovac Botanical Garden, as part of our country’s preparations for participation in the “Stockholm + 50” conference. The national consultations, with the support of the Government of Sweden and in partnership with the Ministry of the Environment, were organized by the United Nations Development Program (UNDP).

The final event within the national consultations was opened by the Minister of Environmental Protection Irena Vujović, together with the Ambassador of Sweden to Serbia H.E. Anikka Ben David, and UNDP Resident Representative in Serbia Francine Pickup.

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SEE MORE: WWW.CORDMAGAZINE.COM

20/05/2022

Constitution Day Of Norway Marked At The Ambassadorial Residence Ambassador H.E. Jorn Gjelstad hosted a reception at the residence marking the Constitution Day of Norway. Ambassador of Norway to Serbia, H.E. Jorn Gjelstad addressed guests in his speech highlighting historic ties between Norway and Serbia dating back to the 12th century when King Sigurd traveled through Smederevo and Belgrade.

In his speech, Ambassador also talked about Norway’s path to democracy.

21/05/2022

2nd Diplomatic Tennis Tournament Held The 2nd Diplomatic Tennis Tournament to help Children took place very successfully at Novak Tennis Centre, from 21-22 May 2022. It was attended by a record number of 44 participants, including several Ambassadors, representing over 30 embassies, diplomatic missions, and international institutions, as well as the theater, cinema and arts, and CEOs or executives from the private sector. This charity event was organized with the aim of helping and supporting early childhood development and pre-school education, through the Novak Djokovic Foundation. Part of the proceeds will also be channeled via UNICEF to help children in need in Ukraine. The tournament was held under the auspices of the Cyprus Embassy in Belgrade, in collaboration with the EU Delegation, the French Presidency of the EU, and the Embassy of Japan. It was organized with the support of Procon Group and Novak Tennis Centre.

21/05/2022

Agricultural Fair In Novi Sad Opened The President of Serbia, Aleksandar Vučić, and the Prime Minister of Hungary, Viktor Orban, opened the 89th International Agricultural Fair in Novi Sad, whose partner this year is Hungary.

Before the official opening, Vučić and Orban held a short meeting at the Novi Sad Fair, and after the address, they visited the exhibitors, 1,100 of whom are from 21 countries this year. The day of the partner country of this year’s Fair, Hungary, was held on 23 May. Hungary presented itself at three locations, in Hall 1 at the national stand, then in individual performances of almost 50 more companies, as well as in the Hall of the Novi Sad Fair and the Novi Sad Theater, where it presented its cultural heritage, reports Tanjug.

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&FACES PLACES

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23/05/2022

SMEs: How To Be Responsible In The Digital Age With the intention to share knowledge on responsible digital transformation, digital products and services, responsible communication, responsible processing of personal data, ethics, and other elements of responsible modern business in order to protect the digital rights of consumers and customers, last year the initiative “Ambassadors of responsible business” was launched, which brings together leading companies and business associations in Serbia. The initiative is being implemented by the United States Agency for International Development (USAID) and Propulsion in cooperation with the Office of the Commissioner for Information of Public Importance and Personal Data Protection and the Association for Compliance in Business, within the New Literacy Program.

25/05/2022

Africa Day And The Day Of Friendship Between Serbia And Africa Marked The host of this year’s celebration of Africa Day, H.E. Mohammed Amine Belhaj, Morocco’s ambassador to Serbia, said that the continent’s great friendship with Serbia has lasted since 1963 when the African Union was founded, and it is based on the help of the former Yugoslavia to African countries.

“59 years ago, African leaders united in the fight against colonialism, and today the countries are recording economic and social development,” Belhaj pointed out.

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CONTENTS

04

WE DEFEND STABILITY AND THE INTERESTS OF CITIZENS AND BUSINESSES JORGOVANKA TABAKOVIĆ, GOVERNOR OF THE NATIONAL BANK OF SERBIA

07

BANKING IDENTITY AS A UNIVERSAL IDENTITY PAVEL MACO, PRESIDENT OF THE EXECUTIVE BOARD OF MOBI BANKA

08

SERBIA NEEDS A STABLE BANKING SECTOR VLADIMIR VASIĆ, SECRETARY GENERAL OF THE ASSOCIATION OF SERBIAN BANKS

10

HIGH-END, TRUSTWORTHY AND RELIABLE PREDRAG MIHAJLOVIĆ, EXECUTIVE BOARD PRESIDENT AND CEO AT OTP BANKA SRBIJA

15

12

16

EFISCALIZATION HAS CLEAR BENEFITS VIOLETA JOVANOVIĆ, NALED EXECUTIVE DIRECTOR

14

A SUSTAINABLE TOMORROW IS BUILT TODAY ŽELJKO PETROVIĆ, MEMBER OF THE EXECUTIVE BOARD AND DIRECTOR OF THE DIVISION FOR BUSINESS WITH INDIVIDUALS AND SMALL BUSINESS, BANCA INTESA

AOFI, ANOTHER NAME FOR SECURITY DEJAN VUKOTIĆ, DIRECTOR, EXPORT INSURANCE AND FINANCING AGENCY AOFI

WE’VE YET TO SEE THE FULL BENEFIT OF DIGITALISATION IN THE INSURANCE SECTOR ALEKSANDAR LJUBIĆ, EXECUTIVE DIRECTOR OF THE FOREIGN INVESTORS COUNCIL OF SERBIA

18

INFLATION IS THE BIGGEST CHALLENGE NEBOJŠA NIKOLIĆ, DIRECTOR IN RISK ADVISORY, DELOITTE SERBIA

IMPRESSUM EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen mrpeditorial@mail.com

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Financial Sector Serbia 2022

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Financial Sector Serbia 2022

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INTERVIEW JORGOVANKA TABAKOVIĆ, GOVERNOR OF THE NATIONAL BANK OF SERBIA

WE DEFEND STABILITY AND THE INTERESTS OF

CITIZENS AND BUSINESSES We remain determined, even under conditions of increased geopolitical uncertainty, to implement – without delay – all measures necessary with a wide range of regulatory mechanisms, with the aim of protecting the financial stability and interests of citizens and businesses

T

he development of events at the global level suggest that we’re entering a period of inflationary struggles.

After a long period without change, Serbia’s central bank, the National Bank of Serbia (NBS), was recently compelled to raise the key policy rate, within the framework of broader measures taken by the Government of Serbia to curb the effects of inflation.

We asked NBS Governor Jorgovanka Tabaković about the central bank’s forecasts on how long these inflationary pressures will last. “We took the decision to increase the key policy rate in an environment of inflationary pressures on the global and domestic markets that are stronger and more persistent than expected, and here one should bear in mind that we started the moderate tightening of monetary conditions back in October last year,” explains our interlocutor. “When it comes to how long the pressures will persist, they are largely related to the duration of the conflict in Ukraine, but also its outcome and ramifications, so it isn’t possible to predict its full impact on food and energy prices.”

Nevertheless, under the assumption that a solution to the ongoing crisis in Ukraine will be found in the coming months, Tabaković believes that it could be said that inflation will start to fall from the middle of this year, supported by the effects of the previous tightening of monetary conditions and a lower than planned fiscal deficit. The Government’s measures on restricting fuel price hikes will also contribute to reducing inflation, as will the temporary ban on exports of certain cereals and other food products.

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Financial Sector Serbia 2022

INFLATION

STABILITY

SUPPORT

Under the assumption that a solution to the ongoing crisis in Ukraine will be found in the coming months, we could say that inflation will start to fall from the middle of this year

The ongoing geopolitical crisis and growing uncertainty on the international financial market haven’t impacted on the relative stability of the exchange rate or the smooth functioning of the foreign exchange market

Since the outbreak of the crisis in Ukraine, all state institutions have been working to help companies resolve certain operational problems that they have encountered

What is your opinion on how the expected growth of interest rates on loans on the domestic market will reflect on lending activity as a whole and banks’ operational results?

- We’ve been tightening monetary conditions gradually since October 2021, and to date that hasn’t had a major impact on conditions for financing businesses and citizens in dinars, which have remained favourable. The average interest rate on dinar loans in February stood at 3.2% for loans to businesses and 8.7% for retail loans, which is around the 2021 level.

Although the raising of the key policy rate and the previous tightening of monetary conditions can be expected to cause a slight increase in interest rates, it should be noted that it is often the case that several months pass before the effect of higher interest rates on the money market is reflected in rising interest on loans. Furthermore, due to increased competition in the banking sector, banks can partly compensate for the increase in the key policy rate by reducing their margins, which actually often happens in practise. When it comes to domestic lending activity, we expect it to continue growing and supporting economic growth, though we project growth rates of lending activities to be slightly lower than was the case in previous years, when they hit double digits, also given the high base from the previous period.

times of crisis. Under conditions of increased uncertainty, it is a particularly important fact that the NBS, with its timely and decisive responses, succeeded in preserving stability and securing the operations of all banks in Serbia, as well as preserving citizens’ trust in the banking sector. A significant contribution to that was also provided by activities aimed at maintaining the relative stability of the

banking sector is ready and able to respond to all potential challenges. The NBS’s responsible approach, which was also recently confirmed with the swift action taken in response to events with the Sberbank Group, the careful monitoring of challenges and a timely response to risks, always serve the function of preserving macroeconomic stability and the stability of the financial system.

Rising inflation usually also causes an increase in interest rates on savings. Will this gradually happen despite banks still having plenty of money that isn’t easy to place at their disposal?

- As I’ve noted already, the NBS has implemented a number of measures to respond to rising inflation in the right way – in a timely and adequate manner. In accordance with that, we also expect a certain increase in interest rates on financial instruments denominated in dinars, including dinar savings. It is advised that impulsive spending and hasty decisions – such as converting dinar savings into foreign currencies – be avoided during

The results of a survey on credit activity indicate that loan demand is on the rise and is also being led, among businesses, by the financing of investments, alongside needs for liquid assets, while among retail clients it is being driven by the need to purchase real estate exchange rate. Likewise, the regular halfyear analysis of the cost-effectiveness of savings for the period from December 2012 to December 2021 confirmed that it pays off more to save in our local currency, both over the long and short term.

We entered the Covid-19 crisis much better prepared than we were during the financial crisis, at least when it comes to the banking sector. What is the situation like now and do you expect certain companies or citizens to be unable to settle their obligations regularly, given that enterprises that work with Russia and Ukraine are suspending production and forcing their employees to take holiday leave?

- Thanks to all NBS activities during the previous period, and despite the pandemic, we have preserved banking sector liquidity, profitability and high capitalisation, while maintaining high lending activity growth rates. The share of non-performing loans has also declined further compared to the pre-crisis period, down to 3.46% at the end of February, so even under the new circumstances, with NBS support, the

What instruments do the Government of Serbia and the NBS have at their disposal to curb these unfavourable trends, which could have a more lasting impact on social product development?

- Since the outbreak of the crisis in Ukraine, all state institutions have been working to help companies resolve certain operational problems that they have encountered. The key policy rate is being increased in order, among other things, to gradually impact on domestic demand and discourage excessive lending, thereby reducing inflation, which is a prerequisite for us to have sustainable and high rates of economic growth over the medium term. The decision for us to increase the interest rate also eases inflationary expectations, which is particularly important from the perspective of preserving price stability over the medium term.

You had to intervene a month ago when lunacy over the crisis caused the euro to strengthen sharply against the dinar. How far can the NBS go in making interventions from foreign exchange reserves, given the major instability on the global market?

- We have spent more than ten years successfully maintaining the relative stability of the dinar exchange rate against the euro.

Even under the conditions of the ongoing geopolitical crisis and growing uncertainty on the international financial market, neither the relative stability of the exchange rate, nor the smooth functioning of the foreign exchange market, have been imperilled for an instant. Contributing to this has been the

Financial Sector Serbia 2022

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INTERVIEW macroeconomic stability achieved, as well as the high level of foreign exchange reserves, which have been further strengthened in recent years with our purchasing of foreign currency amid appreciation pressures. The NBS will thus continue, with such strengthened funds, to act continuously to preserve stability. Moreover, as of the second half of February, we began implementing additional operations and activities through which we’ve provided banks with a sufficient level of dinar and foreign currency liquidity. The NBS intensified its supplying of banks with foreign cash, without delay, in order to overcome the problem of supplying citizens with cash, which prevented panic from spreading further. In addition to this, we have instructed banks that there must be absolutely no interruption in supplying exchange offices with cash, in order for them to be able to respond to the increased demand of citizens quickly and efficiently. This need has also led to the NBS strengthening its control over the operations of exchange offices.

Some insurance companies have announced that, following the end of the pandemic, they expect more intensive work on the further development of the “soft infrastructure” of the financial market among regulators, insurance companies and the Association of Serbian Insurers, as well as the Government. What is on your agenda when it comes to this area?

- We cooperate actively with all insurance market participants, as well as with the Association of Serbian Insurers [UOS], in order to protect the rights and interests of the users of insurance services. One area in which we cooperate is the drafting of regulations in the field of insurance, where public debates are organised and include the main participants of the insurance industry who provide suggestions and proposals for draft regulations, in accordance with best practices in insurance oversight. The UOS is also a participant in the working group for drafting a new regulation on compulsory transport insurance, and we expect full cooperation when it comes to amending regulations related to financial reporting.

The volume of e-services, online payments and digitalisation in general increased sharp-

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We are committed to contributing to improving market stability, and thus the quality of insurance services, by exchanging opinions and experiences on all issues of importance to insurance market participants ly during the Covid-19 pandemic, both among players on the financial market and among citizens. Which direction should further modernisation in this area take?

- The number of non-cash transactions increased during the pandemic, as did the use of digital services generally, but this isn’t about a sudden leap, rather constant and high growth.

For instance, over the course of the past ten years, the number of transactions we perform on a quarterly basis using mobile banking has increased 100-fold. This is, of course, a result of the development of technology and the altered habits of users, but it is also a result of our dedicated work. We pay particular attention to the digitalisation of financial services, especially non-cash payments, through our normative activities and by providing citizens and businesses with the latest payment infrastructure. The pandemic only made more visible that which we’ve already done in this area and directed users towards

communicating with financial institutions exclusively through digital services, including through the use of video identification, which we’ve enabled in a regulatory sense.

The start of the process of using artificial intelligence (AI) among banks and insurance companies is being monitored with great attention by regulators in many countries around the world, as well as efforts to prevent possible misuses of AI. Under the conditions that we have, who should be tasked with monitoring the ethical use of AI in the banking and insurance sectors?

- Regulators and supervisors have a responsible role to play when it comes to finding a balance between protecting users of financial services and ensuring fair competition, on the one hand, and removing regulatory barriers and actively stimulating the development of technology, on the other. Protecting the clients of banks and insurance policyholders from possible misuse, as well as protecting their data, is one of our priorities, and the NBS, in its role as a supervisor of financial institutions, also influences the implementing of adequate measures and controls to ensure that financial institutions apply protection measures when using modern technological solutions. It is very important for consumers to receive financial education, which we are also working on continuously.

PAVEL MACO, PRESIDENT OF THE EXECUTIVE BOARD OF MOBI BANKA

BUSINESS

100% DEDICATED TO DIGITALISATION

BANKING IDENTITY AS

A UNIVERSAL IDENTITY Mobi Banka recently reached two milestones: a hundred thousand completely online loans; and a hundred million transactions. The bank ended last year with 650,000 clients and expects to have been chosen by another 100,000 users by the end of this year

A

would seem that you’re striving to become the leading provider of mobile and online financial services in Serbia. Is that correct?

- As the first provider of digital financial services in Serbia, we don’t only desire to be a leader, but are bound to be a leader in banking sector digitalisation. We ended last year with 650,000 clients and expect another 100,000 users to choose us by the end of this year. Our client pool includes tens of thousands of retirees, which proves that we’ve made mobile banking simple and accessible to everyone. I believe that, with this dynamic, we will be able to strengthen our leading position when it comes to digital banking.

s the first provider of digital financial services in Serbia, we don’t only desire to be leaders, but are bound to be leaders in the digitalisation of the banking sector.

Our client pool includes tens of thousands of retirees, which proves that we’ve made mobile banking simple and accessible to everyone ~ Pavel Maco.

You were visionaries when you created the first completely mobile bank in the region, and then the pandemic encouraged others to follow suit. Is mobile banking our reality and our future?

- We live in the digital era, and that’s best expressed through numbers. Mobi Banka recently reached two milestones: 100,000 completely online loans; and 100 million transactions. People easily get used to the fact that financial services are now available to them in just a few clicks, within a few minutes. However, we haven’t forgotten that we’re still transitioning, which is why we’ve formed a network of 40 credit advisors at Yettel shops, with whom clients can consult on everything related to our offer.

Also, the support of institutions is extremely important for the further development of mobile banking and I have to commend the NBS [Serbia’s central bank], headed by Governor Jorgovanka Tabaković, for embracing emerging trends and for being so innovation oriented. In cooperation with the Association of Serbian Banks, the Government of Serbia and the NBS, we last year implemented the project My Data for Bank and launched an eGovernment service that allows citizens

We’ve formed a network of 40 credit advisors at Yettel shops, with whom clients can consult on everything related to our offer to submit all necessary data for banking products online. In a very short period of time, 3,000 citizens sent their data for loans and almost 4,000 credentials for eGovernment registration were issued.

Given the constant expansion of your offer and increasing client numbers, it

In your opinion, what’s crucial to the further digitalisation of the Serbian banking sector?

- I come from the Czech Republic, where a consortium of banking institutions has provided a favourable environment to implement a system of banking identity.

This ’banking identity’ allows us to securely verify the identity of users and create a completely digital onboarding experience for new clients, all in accordance with KYC needs.

Banking identity can also be used for different identifications beyond the banking sector. Imagine if all 3.5 million users of internet banking in Serbia could instantly access the many eGovernment digital services. I thus believe that banking identity would represent a great step towards the complete digitalisation of the banking sector, and I’m sure that Serbia is once again ready to spearhead global innovations.

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BUSINESS VLADIMIR VASIĆ, SECRETARY GENERAL OF THE ASSOCIATION OF SERBIAN BANKS

SERBIA NEEDS

A STABLE BANKING SECTOR Crisis situations show best that Serbia definitely needs its Association of Banks, an organisation that performs important work for banks and the entire financial system. This has been the case for the past 100 years of the Association's existence, and will remain so in the future

S

tating with optimism that events in Ukraine cannot lead to great risk for our banks, Vladimir Vasić, Secretary General of the Association of Serbian Banks, spoke to CorD Magazine about inflation, the indebtedness of individuals and industry, the consolidation of the banking sector and other topics.

You recently stated that the quality of service provided by banks in Serbia and the overall stability of the banking system are at a very high level. How resilient are our banks to external, global influences?

- If anyone thinks they can be resilient to global events today, they are definitely

Inflation is a consequence of rising fuel prices and broken global supply chains, which no central bank can currently influence mistaken. Globalisation is a process that has long taken hold of all segments of life and no one, including Serbia and, therefore, the banking system in Serbia, is completely beyond the influence of the global market.

This is a general view, but if the real question is whether our banks are in danger or at a greater risk due to events in Ukraine and beyond, then the answer is negative. This is firstly because the banking system confirmed its satisfactory capitalisation and stability during the pandemic. Furthermore, banks are savings and loan organisations, the money they have at their disposal is the money of Serbian clients, and is not even directly tied to the international owner, let

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Financial Sector Serbia 2022

alone foreign banks. So, in that sense, we can remain calm.

standards through growing wages and stable disbursement of pensions, while at the same time showing a significant increase in confidence in the local currency and the banking system. The fact that we are witnessing growth in both retail and commercial activities is a positive sign.

Inflation has already reached 9.6% and is expected to increase further, while the NBS has intervened only once, increasing interest rates by one percentage point.

Do you believe this measure was enough?

- If we take a look at the past several years, it is difficult to find a period when the dinar exchange rate was this stable, and inflation this predictable. No stronger argument than this can be found to show that the current leadership of the National Bank has really conducted its monetary policy well, and I see no reason to doubt that it will continue to do so in the future. Regarding inflation, we need to understand that it is global, the world’s largest economies are currently experiencing year-on-year inflation of 9 or 10%. This inflation is also imported, mainly caused by an increase in fuel prices and broken global supply chains. This is not something any central bank can currently have any influence over. Projections by the NBS indicate that inflation will start to settle during the middle of the year, and in my opinion we can believe this assessment. In any case, the NBS still has many instruments it has not used and it has ways to react to unforeseen circumstances.

The merger of NLB Bank Belgrade and Komercijalna Banka into the new NLB Komercijalna Banka was recently completed. Do you think this consolidation should continue?

- Every consolidation produces a stronger banking group and usually introduces new services and technologies to the market, generating a positive signal for the banking system, and therefore for the entire Serbian economy.

Whether bank mergers should continue is a question for their owners. If they assess that they have an interest in new acquisitions, if the market shows such a need, rest assured that we will witness new consolidations.

Total lending increased by 9.7% in 2021.

Individuals mainly took out cash and housing loans, which is assessed as a positive signal of economic activity. What is the situation now?

Every person in Serbia has a debt of just under 2,000 euros, in Croatia it is 3,000, while the average debt of the Slovenian population is around 5,000 euros. Is the risk of borrowing higher now?

- Regarding personal risk for each of us, we always appeal to citizens to be well informed and to make responsible financial decisions on their own. The extent to which borrowing is a risk depends not only on the global situation, but far more on one’s personal financial status. When it comes to potential over-indebtedness, I must say that citizens and companies have continued to settle their obligations to banks in a highly regular manner during the crisis, and the share of high-risk loans has never been lower. It is currently around 3.5%, whereas we may recall that only a few years ago it was as high as 18%.

Positive trends in our banking system have been present for years and have not stopped, even during the severe crisis caused by the Covid pandemic - Our banking sector has been showing positive trends for years without stopping, not even during the severe crisis caused by the Covid pandemic. We are still showing growth in both savings and loans. I believe this indicates at least two things: first, that we have achieved a real increase in

Although membership of your Association has been voluntary for the past 100 years, it actually includes all the banks that operate in Serbia. Is the justification for the existence of the Association best seen in times of crisis?

- The fact that literally all banks in Serbia are part of our Association is a great compliment for us. This shows that there is a true need for us, and that we are doing important things for the banks and for the entire financial system. In fact, this was best seen when certain crisis situations had to be resolved. Banks, by the nature of their work, are oriented towards daily communication with clients and state bodies, and this is just one of their many duties. Therefore, some of the most important initiatives were shown to have originated from the Association of Banks.

Furthermore, the ASB was one of the key factors in resolving these situations. I am convinced that, at this precise moment, when the Association is celebrating 100 years of its work, we have shown that we are very much necessary for another 100.

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BUSINESS

PREDRAG MIHAJLOVIĆ, EXECUTIVE BOARD PRESIDENT AND CEO AT OTP BANKA SRBIJA

HIGH-END, TRUSTWORTHY

AND RELIABLE

We create value through our distinctive approach, which places the client at the centre of everything we do at OTP banka. Whether providing capital to fund growth or refinancing debt, we offer solutions that support the right capital structure to meet companies' short- and long-term financing needs

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y working in partnership with our clients, we help provide a full range of solutions to meet their ongoing needs, including liquidity management, but also structured finance. With our regional presence in 11 countries, OTP Group helps clients grow internationally ~ says OTP banka Srbija Executive Board President and CEO Predrag Mihajlović, speaking in this CorD Magazine interview.

It has been precisely a year since the merger of OTP banka and Vojvođanska banka? What are your impressions and takeaways?

- I can highlight a few takeaways: integration has been done smoothly, without neglecting business targets and daily business operations.

The aligning of different corporate cultures is still ongoing; this is not something that can be done with an integration date. The cultures may have differed, but focus and hard work were equally represented at both banks, resulting in the creation of not only a bigger bank, but a more efficient and better one. This is proven by our business results for both 2021 and Q1 2022.

Today, OTP banka is the no.1 creditor on the Serbian market, both in retail and corporate, holding a leading position in factoring, e-commerce and leasing services, with an extensive footprint of 170 branches in 91 cities across the country. The secret of our successful merger and business results lies in the great teamwork coming from teams in Belgrade, Novi Sad and Budapest. The fact that it was mostly done during the pandemic, under quite challenging circumstances, brings additional value to our success.

What would you highlight among business results?

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Financial Sector Serbia 2022

- In 2021, which was undoubtedly one of the most demanding years for the banking market, we managed to achieve excellent business results, with over €228 million in revenue and high profitability of €68 million, which is almost seven times higher than the preceding year. An historic result was also recorded in factoring, where turnover of €400 million strengthened OTP’s long-term status as a leader in this field. We have continued in the same direction in 2022 and generated income of €57.7 million, while our assets stand at €5.78 billion, representing an increase in net assets of €521.8 million compared to the first quarter of 2021. When it comes to loans, OTP banka recorded nearly €4.5 billion in Q1 2022, representing an increase of 13.5%, and we thus retained first place on the Serbian market, with a share of 17.5%. Our housing loans stand at a billion euros, with a market share of 21.9% in Q1, and a surge has also been recorded in terms of cash loans, which have reached a value of 1.1 billion euros and thereby represent a high market share of 20.3%. Our OTP Leasing maintained its leading position on the market in Q1 2022 as well, with an increase in new production of 17.4% y-o-y, and total financing of €24.4 million in new placements, which represents a 20.2% market share in new production. We are also quite satisfied with the results of life insurance service provider OTP Osiguranje and the synergy it has formed with the Bank.

We are witnessing banking consolidation and it seems the competition is quite strong, especially in the corporate segment. What do you think distinguishes OTP banka’s approach to corporate clients?

- We can say that loan demand in Serbia is growing, and investment lending in particular, both in the retail and corporate sectors, which means that banks are keeping pace with market demands. The consolidation of banks has generally enabled them to financially support significantly larger projects than was previously the case.

It is important to emphasise that banks’ possibilities depend significantly on their access to long-term sources of financing, so the financing period is in line with the

economic life of the actual investment.

We continued our excellent results in the corporate segment in Q1 2022, recording growth of 16.2%, with €2.4 billion y-o-y. In this way, OTP banka continues to be ranked number one, with a 16.6% market share in corporate lending. As such, we have clients from all industries, from entrepreneurs and SMEs, to large domestic and multinational companies.

I would say that we create value through our distinctive approach, which places the client at the centre of everything we do at OTP banka. Whether providing capital to fund growth or refinance debt, we offer solutions that support the right capital structure to meet companies’ short- and long-term financing needs. By working in partnership with our clients, we help provide a full range of solutions to meet their ongoing needs, including liquidity management, but also structured finance.

Through coordinated business lines and proven expertise, OTP banka provides a full range of innovative solutions adapted to clients’ needs, such as traditional and

Our goal, as a leader in corporate and retail lending, is to actively participate in building a sustainable future and to be an example of environmentally responsible business specialised financing, payment operations, cash management, access to treasury services, capital markets and financial advisory services, as well as securities services.

We have been the market’s top bank in factoring services since 2013, with the largest market share, and we continued along the same path in 2022, with an increase exceeding 30% in production.

The Euromoney Awards for Excellence 2021 awarded OTP as the best bank in CEE, while Global Finance recently awarded OTP banka as the best bank for SMEs and the best private banking bank in the CEE region. This recognition confirmed our efforts to create a leading bank in these segments in particular, and the fact that we received this award for results achieved

during the pandemic and the process of integrating the two banks makes it even more valuable. Ever since the establishment of our private banking operations in 2004, which was in fact the first private banking setup in Serbia, we have managed to successfully secure our presence in this segment and ensure we are perceived by clients as a high-end, trustworthy and reliable banking institution. We today have two premises dedicated to private banking, in Belgrade and in Novi Sad. Bearing in mind that our readers are diplomats and people from international companies, does OTP banka have special services or forms of cooperation with them?

- Yes, we devote special attention to clients who are non-residents in Serbia, including foreign offices, diplomatic missions, international companies and their employees.

Our long and fruitful cooperation with embassies and diplomatic missions and their staff is something we are proud of, as it requires the special expertise of our employees in branches and different departments in headquarters where they have a single point of contact for daily business with the Bank.

It seems that OTP banka is a true green bank?

- Absolutely, in every sense. Green is our colour and our philosophy of doing business and everyday life. I am very proud of our strategic focus on the green transition and all activities, especially the results we achieved with the Generator Zero project focused on reducing the carbon footprint. That is one of our most important and largest projects, which we’ve been implementing with the same enthusiasm for five years and which deals with current topics through each new edition, resulting in ever-more innovative solutions. Our goal, as a leader in corporate and retail lending, is to actively participate in building a sustainable future and to be an example of environmentally responsible business.

The very recent Grand Prix 2022 Award for our CSR is confirmation that we are on the right track.

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INTERVIEW VIOLETA JOVANOVIĆ, NALED EXECUTIVE DIRECTOR

eFiscalization

HAS CLEAR BENEFITS We see eFiscalization as a powerful weapon against the grey economy, which causes incomparably more damage to responsible entrepreneurs than other negative influences.

And we will very quickly see the benefits of this change, both as individuals and as a society

A

ccording to the assessment of the latest NALED study, the economic grey zone has an annual turnover exceeding seven billion euros. The new system of fiscalization, which should lead to significant reductions in unfair competition, was introduced with great haste and without the extending of deadlines for those resisting this change. Violeta Jovanović, executive director of NALED – an organisation that has long since advocated in favour of this reform – believes that we’re readily entering a system that was introduced by many countries a full decade ago.

Are we now really ready for this step?

- The new system of fiscalization brings great change to Serbia’s business climate, because it will significantly improve supervision of the recording of retail turnover and help improve tax culture and responsibility among both citizens and businesses when it comes to the issuing or accepting of fiscal receipts. eFiscalization will also encompass a much larger number of entrepreneurs than were included under the pre-existing system, thus giving us a clearer picture of the volume of retail turnover. We are now replacing the extremely outdated technology that we introduced more than a decade and a half ago with a modern solution that’s being introduced by ever more countries. The Tax Administration is gaining an effective means of control and thus has a higher level of responsibility to use this tool to its full extent. Croatia introduced this system back in 2013 and, thanks to eFiscalization, improved the efficacy of tax inspectors who had the “luxury” of reducing the number of onsite inspections threefold while detecting four times as many irregularities. It’s tough to find justifiable reasons for why we’ve had to wait so long, because the first preparations for eFiscal-

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ization in Serbia also began almost 10 years ago. The statistic showing that slightly more than 120,000 businesses applied for fiscalization by the beginning of April demonstrates that, with every reform, we have a significant number of businesspeople who always wait until the last minute to adjust to new ways of working or don’t sufficiently inform themselves with regard to obligations. That’s why all the training we’ve organised on eInvoicing and eFiscalization – and we’ve conducted more

than 30 workshops and training courses for many thousands of users, in cooperation with the Ministry of Finance and with the support of the British Embassy, within the scope of the Small Business Info project – we placed our focus on accountants because they are, according to research that we’ve conducted, the main source of information for approximately 80% of small enterprises. That’s why we believe that the vast majority of businesses are ready for 1st May.

THRIVE

MISSION

INFLATION

The introduction of eInvoices and eFiscalization is something that should be welcomed by every society that wants to thrive both socially and economically

Our aim is to build a society with responsibility and solidarity that will thrive economically for the benefit of all citizens and businesspeople, which is why we must all contribute equally

Reduced consumption caused by rising prices will inevitably also influence budget revenues, which will make a realistic overview of the initial effects of the introduction of eFiscalization difficult

For many skilled craftsmen and traders, such as hairdressers, beauticians, painters and plasterers, ceramists, sporting associations and many other smaller businesses, this was an additional burden that came when they’d already been weakened by Covid-19 and inflation. When will they see the first positive effects of this change?

- We welcome the Ministry of Finance’s decision to secure subsidies for all those who shift to the new system of fiscalization or are just becoming taxpayers. Those 100 plus 100 euros have significantly reduced the costs to businesses. On the other side, we always view the transition to eFiscalization as an investment.

Taxpayers will feel the first positive effects of fiscalization already during the first year, as it will eliminate the costs associated with the need to store copies of invoices, maintain a mandatory cash register etc.

However, they will benefit much more from fiscalization’s indirect effects. First and foremost, we see eFiscalization as a powerful weapon against the grey economy, which causes incomparably more damage to responsible entrepreneurs than other negative influences.

Unfair competitors, who don’t keep records of their turnover and sell smuggled goods or unregistered products, are much more price competitive and reduce the turnover of responsible enterprises. Just last year, the Tax Administration temporarily closed 41% of controlled facilities due to irregularities in the issuing of invoices, which testifies to the scope of the challenge we’re confronting.

their customer base and securing a higher turnover. The value of noncash payments in Serbia increased from 4.6 to 5.7 billion euros last year alone, and is increasing at double-digit rates annually, thanks to having proven their practicality, efficiency and reliability, both around the world and in our country. We plan

The National Cashless Payment Initiative has launched the website boljinacin.rs, which is intended to help transitioning entrepreneurs. How much interest has this programme generated?

- The boljinacin.rs website is currently running pre-registrations for participation in the POS programme, through which we want to provide help to small traders and all other entrepreneurs in improving their operations by introducing noncash payments and thereby broadening

We welcome the Ministry of Finance’s decision to secure subsidies for all those who shift to the new system of fiscalization or are just becoming taxpayers to distribute about 4,000 POS terminals and software solutions for regular and online shops during this year and a total of 25,000 over the course of the three years of the project, thus expanding the acceptance of infrastructure significantly.

Do you expect inflation, which threatens to hit double digits, to influence the eFiscalization process and its ability to increase budget revenues?

- The inflation being seen around the world today is a direct consequence of the conflict in

Ukraine and its negative effects won’t bypass any country, Serbia included, so reduced consumption caused by rising prices will inevitably also influence budget revenues, which will make a realistic overview of the initial effects of the introduction of eFiscalization difficult.

Starting from 1st May, more than 10,000 users of public funding will switch to the new model of electronic invoicing, and they will be joined by all 125,000 VAT payers by January 2023. What has this practise brought in the many countries that have already introduced it?

- At this moment, around 80 countries around the world are in some phase of introducing eInvoices, which are already strongly present in Europe. According to European Commission data, the costs of producing invoices have been reduced by 95% in Lithuania and Finland, while the time required to process one invoice in Poland has been reduced by as much as 90%, thanks to them having shortened the process from 30 minutes to just three. Croatia has calculated that its economy’s operating costs have been reduced by €350 million annually thanks to eInvoices. Increased efficiency and reduced costs are the basic advantages, while – as with eFiscalization – the state has received another important instrument for monitoring the transparency of financial flows, this time in the wholesale domain.

The latest NALED Grey Book included your recommendation that the Ministry of Finance expand the scope of fiscalization to include lawyers, taxi drivers, veterinarians and other sectors that often remain beyond the reach of fiscalization. Do you expect the Ministry to implement this recommendation?

- These activities will inevitably come under the scope of fiscalization at some point, and thus we shouldn’t wait too long. Our aim is to build a society with responsibility and solidarity that will thrive economically for the benefit of all citizens and businesspeople, which is why we must all contribute equally.

Financial Sector Serbia 2022

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BUSINESS ŽELJKO PETROVIĆ, MEMBER OF THE EXECUTIVE BOARD AND DIRECTOR OF THE DIVISION FOR BUSINESS WITH INDIVIDUALS AND SMALL BUSINESS, BANCA INTESA

A SUSTAINABLE TOMORROW

IS BUILT TODAY

A

Since it arrived on the local market, Banca Intesa, part of the Intesa Sanpaolo Group, has profiled its services for all types of customers. To contribute to the quality of life and business of its customers, it has focused equally on individuals and companies, but also on the agricultural sector

s Banka Intesa is an important support for both industry and individuals, one of the most important tasks of its management is to provide a range of services that will be relevant in any given context, but also to respond to current trends that shape customer needs.

Business results in the first quarter of 2022 show that your highly diversified and resilient business model is delivering excellent results.

Is that the way to continue?

- One contribution to the good results of the first quarter was undoubtedly our improved processes and services, service models that speed up and simplify interaction with the bank, both through implementing and further developing innovative functions on digital channels and transforming our branches across the country.

We are dedicated to working on achieving the goals we have set for ourselves, which focus on the client, the only guarantee of future success. It is a special pleasure that our work in this has been recognised by reputable world magazines such as Global Finance, which awarded Banca Intesa the recognition of Best Bank in Serbia in 2022.

Is it enough to meet the expectations of customers or should we go one step ahead of them and repeatedly offer them innovative products and services?

- The banking sector is one of the most important pillars of a country’s economic development. It is undoubtedly expected to drive and support economic transformation and progress. I think we must anticipate and respond to emerging trends in time, to “build a sustainable tomorrow today” including housing loans for energy efficient buildings, consumer loans for energy efficiency and support to industry and agriculture for energy efficiency projects with further digital innovation.

An important support for this is our parent group

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Financial Sector Serbia 2022

Dedicated work on achieving the goals we have set for ourselves, which focus on the client, is the only guarantee of future success Intesa Sanpaolo, whose innovation centres in Turin and Tel Aviv are working on developing technologically innovative projects in the field of the circular economy, artificial intelligence and neuroscience.

What can your clients do today without going to your branches and waiting in front of the counter?

- For us at Banca Intesa, the digital transformation began in 2019 when we shifted to a new core system as the basis for improving

services that will provide our customers with an even more advanced user experience. We continued to work on improving the digital platform during the challenging pandemic period, to introduce a new digital banking application for individuals last year, with innovative features that make daily transactions even faster and simpler.

In addition to the standard options of making payments or checking the balance, our customers can transfer money via the new Banca Intesa Mobi application without entering the recipient’s account number, withdraw cash from ATMs using a mobile phone with #withCASH, check their PIN, pay bills even faster and easier using IPS Scan and IPS Show options, make foreign currency payments, or take out a cash loan or overdraft arrangement, all via their mobile device.

DEJAN VUKOTIĆ, DIRECTOR, EXPORT INSURANCE AND FINANCING AGENCY AOFI

BUSINESS

AOFI, ANOTHER NAME

FOR SECURITY AOFI supports exporters with direct financing for preparing exports through a range of credit programmes and by insuring the risk of unpaid invoices both at home and abroad. This is important both in regular and now in extraordinary circumstances

I

world is yet to come. The war in Ukraine will undoubtedly have great consequences on the world economy and that’s already reflected in the average growth of inflation.

t is extremely important that our businesses, especially exporters, are sure of collection and that the risks of foreign trade are as low as possible. The certainty that receivables from foreign and domestic business will be realised is a condition for uninterrupted business and planning, for sustainable economic growth.

Despite everything that’s happened over the last two years, the Serbian economy has preserved exports, investment and employment. How did you contribute?

- The Republic of Serbia responded in good time to the challenges posed to the economy, and above all to fiscal policy, by the pandemic. Despite the pandemic and difficult business conditions, exports were preserved, investment and employment were preserved, and at AOFI we actively participated in the implementation of the programme of economic measures to support Serbian industry. In cooperation with the Government, both during and after the pandemic, we intensified our activities related to credit insurance of claims by domestic exporters and helped a large number of export-oriented businesspeople to continue their business without hindrance.

How do the war in Ukraine and Western sanctions against Russia affect our economy?

- The Serbian economy is closely connected with the economy of the region and the EU, but also the rest of Europe, which certainly includes the Russian Federation and Ukraine, so any instability and crisis in those markets strongly affects us. Our economy has managed to withstand the first blows of the global crisis, exports are

Over the past two years, the Export Insurance and Financing Agency has actively participated in the programme of economic measures to support Serbian industry growing and other parameters are good, but we must be careful, because we think that the crisis in the world and from the

Is the risk of uncollectable receivables and the interest of export insurance companies growing? Do you expect the situation to stabilise?

- We are facing a challenging period that we cannot influence so much, because of the problem’s global nature. However, despite the challenges, the Serbian economy continues to grow and we are far from a recession. The challenges facing the economies of the whole world are enormous, because wars, energy crises, sanctions and instability are factors that put the world in danger of inflation. Fortunately, our state has taken a number of measures to protect the interests of industry and the Serbian public, from the controlled price of fuel and low prices for electricity, to prices limits on foodstuffs, which are in sufficient supply.

We continue to cover payments for Serbian exporters in more than 80 countries on all continents. Just as in the middle of the pandemic, this is extremely important now because there are definitely unforeseen circumstances and a war, and market changes can lead the most trusted long-term clients into a situation where they are unable to meet their obligations.

It is important to note that AOFI also deals with short-term lending, which means providing financial resources to finance the working capital of exporters. This has a number of advantages, including improved liquidity, simpler lending procedures and lending services tailored to the needs of exporters.

Financial Sector Serbia 2022

15

INTERVIEW ALEKSANDAR LJUBIĆ, EXECUTIVE DIRECTOR OF THE FOREIGN INVESTORS COUNCIL OF SERBIA

WE’VE YET TO SEE THE FULL BENEFIT OF DIGITALISATION

IN THE INSURANCE SECTOR

The Foreign Investors Council of Serbia has a multitude of ideas on how to continue the wave of digitalisation and render numerous financial sector services even more accessible to citizens

D

igitalisation, which the FIC has spent years advocating for, has brought advances in many fields, from e-government to the financial sector. Now, according to FIC Executive Director Aleksandar Ljubić, it is very important for further reforms in this field to continue.

The pandemic brought us hitherto unseen acceleration in all fields, and particularly when it comes to the digitalisation of financial services.

How has Serbia’s financial system responded to these challenges?

- We’ve seen a sharp increase in electronic transactions since the outbreak of the pandemic, but also

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Financial Sector Serbia 2022

in the wider application of contactless payment options using digital “wallets”, which have been made available to a large number of financial institutions. In addition to this, significant progress in the area of the legal framework that enables the further digitalisation of financial services in Serbia has also led to the acceleration of digitalisation. The exceptional advances that Serbia has made during the time of the pandemic, and which will have a lasting positive impact on the competitiveness of the Serbian economy, are represented by the introducing of the service of issuing qualified funds for the creation of a remote electronic signature, a so-called cloud qualified signature, then the

real-time electronic recording of transactions via the internet, or online fiscalization and electronic invoicing, and the introduction of the first registered electronic identification scheme, as well as the enabling of payments of monthly bills, shopping at retail outlets and online in an exceptionally simple way, via the national IPS (Instant Payment System) using QR codes. Simultaneously, Serbia’s e-government system has reached a critical juncture at which there is sufficient infrastructure and the technical and personnel capacity required to quickly develop new services (such as the “My Data for Bank” service) and place them in the function of resolving urgent social issues. The

greatest progress has been achieved in the field of electronic payments on the eGovernment portal, where citizens are now able to make direct electronic payments without the need to submit paper evidence confirming payment.

The banking system has experienced a significant transition to e and m services over the previous period. As advocates of digitalisation and the development of e-services, what does the FIC today see as the main avenue for further changes in this sector?

- Although the greatest strides on digitalisation have been made in the financial services sector, many challenges remain ahead of us. Our members particularly emphasise the importance of easing the use of digital identity/signatures in such a way that they become accessible to the widest circle of citizens, in a simple way and without high costs, as well as enabling the application of the institute “digital bills of exchange”, which should be registered as such in a unified register of bills of exchange, i.e., signed electronically. Alongside the public administration’s further digitalisation, it is also extremely important to conduct continuous educational campaigns to ensure citizens are informed about the possibilities and advantages of digitalisation, but also to empower them to utilise the digital tools of public administration that are available.

When talk turns to the financial sector, we most commonly discuss banking. However, there is also ample room in the insurance sector for the changes that you’ve long advocated for.

Do you see progress in that area?

- A large number of insurance companies, as well as other participants in the insurance market, are striving to adapt their services to suit the digital world. However, alongside technical, cultural and other obstacles, regulation also represents an important limiting factor. Despite recent years having seen huge steps taken towards the creation of regulatory conditions for digital operations, room still exists to make further improvements, especially in the insurance domain. Apart from this, FIC members are of the opinion that it would be extremely important for the Serbian economy and citizens to improve solutions when it comes to group insurance contracts that would enable direct communication with all insured parties prior to the concluding of insurance contracts, access to information on the way a claim is submitted

and the prescribed deadline for filing a damages claim, i.e. the exercising rights on the basis of insurance, as well as the way the rights and interests of insured parties are protected with insurance companies etc. It is vital to determine a strategy for catastrophe and natural disaster insurance, and to create conditions for tax breaks to apply when paying premiums for all types of life insurance, which would both stimulate the development of the insurance sector and create conditions to improve the social function of these types of insurance.

V The last FIC White Book included several recommendations related to simplifying and easing

The greatest progress has been achieved in the field of electronic payments on the eGovernment portal, where citizens are now able to make direct electronic payments without the need to submit paper evidence confirming payment international financial transactions. Has progress been made on this front in the meantime?

- Improvements were achieved in the period between the last two editions of the White Book when it comes to the solutions of individual bylaws, but even more significant improvement was achieved in terms of transparency and the availability of the views of the National Bank of Serbia regarding the interpreting of provisions,

primarily of the Law on Foreign Exchange Operations. It is extremely important for this process to continue and speed up in the period ahead.

Our members gave a series of constructive proposals that, when implemented, would bring essential improvement to the business climate in Serbia. Our members expect, among other things, the further easing of administrative requirements, a switch to ex-post reporting on cross-border financial loans, simplification of the so-called “settlement” of claims for all types of current and capital transactions, but also relaxation in terms of providing residents with warranties for international credit transactions and the like.

We’re already halfway through 2022 and nearing the completion of the implementation of the Government’s programme to develop e-government services, which have had a strong impact on the development of financial sector services. How would you today summarise the successes achieved and challenges that remain in fulfilling that plan?

- In the process of overcoming the challenges posed by the pandemic to the Serbian economy, but also the society as a whole, the fact that the Government of the Republic of Serbia placed digitalisation high on its agenda of priorities was critical. Great efforts have been made and progress achieved, especially when it comes to regulations aimed at enabling the further digitalisation of the economy and the public sector. The readiness of all state institutions to continue in this spirit in the period ahead is extremely encouraging, because digitalisation is an endless process that permanently demands innovative and swift solutions, provided we want to find ourselves in the company of developed countries.

From the perspective of the FIC, and under today’s conditions, what are the most important next steps when it comes to guaranteeing financial stability and the further development of financial services?

- Financial stability is largely conditioned by essential economic growth, fiscal consolidation and the implementing of structural reforms. Furthermore, the privatisation and corporatisation of public enterprises and the reform of public administration will impact total macroeconomic indicators significantly, thereby also impacting the further development of the financial services sector.

Financial Sector Serbia 2022

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BUSINESS NEBOJŠA NIKOLIĆ, DIRECTOR IN RISK ADVISORY, DELOITTE SERBIA

INFLATION IS THE

BIGGEST CHALLENGE The outbreak of the pandemic led to uncertainty becoming a new reality, after which the world entered a period of even more pronounced uncertainty due to the war in Ukraine, which came on a wave of inflation that was already growing rapidly. This, unfortunately, will have a negative impact on the financial sector, which is always inextricably linked to challenges

I

example, the unusual statement of European Central Bank President Christine Lagarde, who characterised rising inflation on these two continents as “a completely different beast”. This raises an additional question regarding the effective and efficient fight against inflation, as well as a question over the appropriate levers of fiscal and monetary policy that should be applied to curb inflation.

The absence of a unified stance on inflation at the global level leads to suspicions that the fight against inflation will be neither easy nor short. We all know what’s brought by this process and the fight against inflation: rising prices, higher unemployment, increased credit risk, entry into a recession.

t is common knowledge that investments should always be coordinated with risk aversion, desired returns, macroeconomic expectations and the planned investment horizon. We spoke to Nebojša Nikolić, risk advisory director at Deloitte, to find out how all this is achieved today.

We’re living in turbulent times. How is the financial sector being impacted by the pandemic and the war in Ukraine?

- The financial sector is always inextricably linked to the challenges confronting the economy and the population. Multinational companies that have their operations and part of their revenue linked to Russia and Ukraine need to make up for unexpected losses, while alongside that it is also necessary to harmonise their operations with the new lists of sanctions against Russia. New ways of reaching fresh sources of income will be sought, which won’t be an easy mission, given that demanding regulations and the banking system’s inertness are causing certain delays in the implementation of digital agendas.

Some groups will utilise the market turmoil and there will probably be further consolidate of the banking sector, and perhaps also withdrawals from the market. Rising inflation will be the main driver of further uncertainty. There’s likely to be a nominal increase of income in banks’ balance sheets, due to rising interest rates as a result of inflation. Such a situation could also impact on the expenditure side of the balance sheet through an increase in loan-loss provisions and growth in NPLs as a consequence of increased credit risk.

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We all know what’s brought by this process and the fight against inflation: rising prices, higher unemployment, increased credit risk, entry into a recession According to Serbia’s central bank, the National Bank of Serbia (NBS), the country should maintain strong, sustainable and diversified growth. Do you share that optimism?

- The road to realising these optimistic forecasts will be filled with challenges.

Let’s take, for example, the fact that mutual incompatibility exists at the level of the EU and the U.S. related to the causes and impact of inflation. Let’s also take, for

Which areas now have the greatest investment potential and the least risk?

- As a result of increased market uncertainty, due to the war, inflationary pressures, the recurrence of the virus and Covid-19 lockdowns in China, investors at the global level are running to some safer and traditional “tangible” forms of investment: in gold, other precious metals and real estate.

We are currently seeing on the market, both around the world and on our market, an increase in the value of these investment categories, while declines are being recorded on the stock market and the cryptocurrency market. Still, exaggerated demand and the excessive influence of investors in the aforementioned investment categories can create price bubbles, which are usually followed by “bursting”, i.e., a price inversion and the return to long term price averages.

Financial Sector Serbia 2022

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Financial Sector Serbia 2022

CONTENTS

04

DYNAMIC AND COMPREHENSIVE COOPERATION COMMENT

06

WE’RE ONLY OPPONENTS IN

SPORT H.E. DAMJAN BERGANT, AMBASSADOR OF SLOVENIA TO SERBIA

COURAGE, IDEAS, FAITH IN SUCCESS DANIJELA FIŠAKOV, PRESIDENT OF THE SLOVENIAN BUSINESS CLUB

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ALWAYS AT THE SOURCE OF INFORMATION DUŠAN MILIĆEVIĆ, GENERAL MANAGER, COMTRADE SYSTEM INTEGRATION

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ALWAYS THE FIRST CHOICE

COPY EDITOR Mark Pullen mrpeditorial@mail.com

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs FINANCE Dragana Skrobonja finance@aim.rs

BUSINESS PARTNER | SLOVENIA 2022

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PLEČNIK’S CONTRIBUTION TO BELGRADE 150TH ANNIVERSARY OF THE BIRTH OF JOSIP PLEČNIK

40

EXPERIENTIAL TRAVEL GLAMPING

DEDICATED TO DEVELOPMENT DEJAN TURK, CEO, A1 SRBIJA AND A1 SLOVENIJA

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PHOTOS Zoran Petrović

ACTIVITIES OF THE SLOVENIAN BUSINESS CLUB (SPK) SPK, THE PLACE FOR CONNECTIONS

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BORN VRNJAČKA BANJA

ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs

NATURE’S MIRRORS TOURISM

ADVERSITIES ECONOMY

A PLACE WHERE MEMORIES ARE

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs

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TWO STABLE PILLARS OF BUSINESS OPERATIONS BORUT ČEH, CEO, LABENA D.O.O.

LEGAL PRACTISE IS THE BACKBONE OF BUSINESS IGOR DODIĆ, LAW FIRM DODIĆ ĐURIĆ DABIĆ

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EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs

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INTERNATIONAL KNOWLEDGE NEEDED LOCALLY NENAD TEŠIĆ, PARTNER, EGZAKTA ADVISORY

CONTINUING TO CREATE A SECURE FUTURE DRAGAN MARKOVIĆ, PRESIDENT OF TRIGLAV OSIGURANJE BEOGRAD EXECUTIVE BOARD ’CLOUD’ QUALIFIED CERTIFICATES

NEMANJA ĐURIĆ, CIVIL STRUCTURAL ENGINEER, MOBECO D.O.O.

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ALEKSANDAR SPREMIĆ, DIRECTOR, HALCOM

EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica SLOVENIA 2022 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com

www.aim.rs; www.cordmagazine.com No 40 ISSN: 2560-4465

IMPRESSUM

All rights reserved alliance international media 2021 The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

THIS PUBLICATION IS FREE OF CHARGE

COMMENT

Dynamic And Comprehensive

COOPERATION The excellent bilateral and business relations between Slovenia and Serbia shed light on two things: first, provided they are not burdened by the past, former Yugoslav states can benefit from their interconnectedness; and, second, EU membership candidate countries can be successfully supported by their neighbours on their EU path, as Slovenia showed during its 2021 Presidency of the Council of the European Union.

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t is often said that people in our region tend to be immersed in past grievances and unable to follow the path of, for example, European or Scandinavian countries, which underwent rough histories to end up as successful partners. Luckily, the recent history of Slovenia and Serbia show that tough times can be set aside, clearing the way for successful bilateral relations and a thriving economic exchange. Indeed, 2022 is expected to go down as one more successful year. In short, Slovenia and

The value of Slovenian investments in Serbia, including NLB's investment in Komercijalna Banka, exceeds 1.6 billion euros Serbia have excellent cooperation in the fields of politics, the economy and cultural cooperation, and no political changes in either country have so far disturbed these trends.

Indeed, Serbia’s progress on the economy – where conditions for doing business have been changing step-by-step in a positive direction, with infrastructure development, the digitalisation of state institutions and inflows of foreign investment also attracting Slovenian businesspeople. By following 4

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BUSINESS PARTNER | SLOVENIA 2022

Slovenia’s path in joining international value chains, Serbia is developing its SMEs into suppliers of large foreign companies that are aligning their standards, pushing exports and creating high-quality jobs.

The trade exchange between Serbia and Slovenia is gradually expanding to encompass new fields, such as the green economy, digitalisation and ecology. In short, there are many new directions strengthening business ties.

Slovenia is one of the largest investor countries in Serbia, with its companies employing more than 25,000 Serbian workers. There are currently around 1.5 billion euros worth of Slovenian investments in Serbia, and about 250 million euros worth of Serbian investment in Slovenia. Although a balance is clearly lacking, the situation is improving gradually. More than 4,400 companies from Serbia and Slovenia were active on both markets in 2019, not only through trade, but also through investment. The trend of increasing Serbian investments in the Republic of Slovenia has been prominent, especially in the field of tourism.

Of course, these relations can be raised to a new level with Serbia’s accession to the EU as soon as possible. As Slovenian Ambassador to Serbia H.E. Damjan Bergant put it: Serbia's rapprochement with the EU and respect for European values is an excellent foundation to further upgrade the good relations between our two countries.

Both countries have naturally been hit by the global crisis and the war in Ukraine. And this is particularly worrisome in the case of the Western Balkan region, as the crisis in Ukraine could certainly have a negative impact on its stability.

Looking back to the 2021 Slovenian Presidency of the Council of the European Union, one has to note that Slovenia provided a significant contribution to the enlargement process. In the informal meeting of the European Council and Western Balkan partners held last October, an important signal was given that reinforced the prospects of EU membership for the countries of the Western Balkans. Furthermore, the Council also succeeded in adopting conclusions related to the enlargement and the Stabilisation and Association Process. ■

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INTERVIEW

WE’RE ONLY

OPPONENTS IN SPORT H.E. DAMJAN BERGANT AMBASSADOR OF SLOVENIA TO SERBIA

I can confirm that Serbia and the Western Balkans remain high on the list of the Republic of Slovenia’s interests and that the level of interest coming from Slovenia will be the same or even higher ~ Damjan Bergant

S

lovenian Ambassador Damjan Bergant is convinced that the EU is the future of Serbia. Membership in the same EU family would additionally strengthen existing economic cooperation between Serbia and Slovenia, which currently stands at around two billion euros.

Speaking in this interview for CorD Magazine, the Slovenian ambassador directs attention towards the importance of strengthening the domestic economy and local cooperation, particularly in agriculture and food production, which are becoming increasingly important in the context of global shocks.

■ Your Excellency, Slovenia is in the process of gaining a new government, which should be confirmed during June. Can we expect it to show the same level of interest in Serbia and the rest of the Western Balkans?

- We had regular parliamentary elections in late April and the results appear to show that a new government could be formed very quickly, so you’re right when you say that Slovenia will most probably have a new executive by the beginning of June. When it comes to Serbia

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COOPERATION

EU MEMBERSHIP

INVESTMENTS

Slovenia and Serbia have excellent cooperation in the fields of politics, the economy and cultural cooperation. There are contacts that exist at different levels and in different activities

The successful opening of the 4th cluster of chapters indicates that EU membership is an achievable goal for Serbia, and one that depends primarily on its progress in the negotiation process

Our investments in Serbia have a value of around 1.5 billion euros, while Serbian investments in Slovenia are worth about three times less. This would naturally balance and strengthen cooperation

and the Western Balkans, everything remains within the same framework, because the Ministry of Foreign Affairs of the Republic of Slovenia is bound by the Declaration on Foreign Policy of the Republic of Slovenia, which was adopted by the National Assembly of Slovenia in 2015. I personally don’t expect any proposal of changes to come, so I can confirm that Serbia and the Western Balkans remain high on the list of interests of the Republic of Slovenia and that the level of interest coming from Slovenia will be the same or even higher.

■ The recent meeting between the presidents of Slovenia and Serbia included discussion of the two countries’ “sincere friendship”. Have you considered what influenced relations between the two countries, following the collapse of Yugoslavia, now reaching such a high level?

- Serbs and Slovenes are nations that are traditionally closely connected. It’s true that there’ve been different interests historically, but that doesn’t mean that our peoples weren’t connected. I was born in Maribor, On the basis of experiences from Slovenia, I can so I remember the stories of families from emphasise that the development of small and Styria being exiled to Serbia during World War II. Those Slovenes were well received medium-sized enterprises, more than anything, by the Serbs, as recounted by older people. leads to the achieving of lasting stable conditions for On the other hand, my job is to visit differthe successful and sustainable economy of a small ent parts of Serbia and Slovenian societies country based on exports and greater competitiveness, around Serbia and that helps me to discover which in turn create unlimited opportunities for very interesting things about the links bestrengthening business ties tween Slovenes and Serbs. The most recent interesting thing that I came across, and didn’t previously know existed, is the cemetery in Vrdnik, in the Serbia to join the EU as soon as possible. Serbia’s association with foothills of Fruška Gora, where 90% of the names and surnames on the EU, and its respect for European values, provides excellent the gravestones are Slovenian. That’s the burial site of the miners foundations to additionally build upon the existing good relations and their families who came from Slovenia to work there and who between our two countries. lived and died in the area.

Slovenia and Serbia have excellent cooperation in the fields of ■ And, as you noted recently, businesspeople from politics, the economy and cultural cooperation. There are contacts Slovenia consider that conditions for cooperation that exist at different levels and in different activities. We are op- “have never been better”. What are the new directions or areas for strengthening business ties: energy, the ponents, but only in sporting contests.

We still want to develop our friendly relations further and for environment or something else?

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- Serbia is increasingly advancing in all areas of society, and that’s especially so with the economy, where conditions for doing business are unquestionably improving with the development of infrastructure, the digitalisation of the operations of state institutions, an excellent tax policy, the opening up of the economy with the great support of foreign capital and thus the strengthening of competitiveness, the rapid industrialisation of the economy that’s also vigorously developing the SME sector, suppliers, though gradual investments

■ You’ve said that you’d like to see more Serbian enterprises arriving in Slovenia? What do you consider as being an obstacle to that process?

- Of course, our investments in Serbia have a value of around 1.5 billion euros, while Serbian investments in Slovenia are worth about three times less. This would naturally balance and strengthen cooperation. I don’t see any obstacles; Slovenia is open and ready to help Serbian investors on their path to expanding operations, and I would like for Serbia to join the EU family as soon as possible, for us to play by the same rules, overcome administrative obstacles and thus improve cooperation.

■ You said in one interview that it’s not a question of whether Serbia will join the EU, but when.

It seems that the citizens of Serbia aren’t so convinced that this will happen, as shown by one recent public opinion poll.

On what do you base your optimism?

- I’m convinced that Serbia has no other alternative and that the EU is the best possible path for Serbia. President Vučić says that those investing the most in Serbia are from Western countries, led by the EU. This enriches Serbia and enables the country’s advancement and development. Why are people from Serbia seeking jobs in the West? Why do they drive Western cars? Why do If the 27 member states have a common position, those young people from Serbia want to study wanting to become part of that group must accept the in the West? It’s all because Serbia is same position, otherwise they can’t be in that group. a country in Europe and is naturally That’s completely clear. Serbia is a sovereign country and bound to the EU. When it comes to it should decide on its own political will and desire public opinion and the current results of how the EU is perceived, this is actually a single moment in a long story. Public opinion can flip very in development and innovation, which creates additional value for quickly, provided society offer the right impetus. My optimism is the employee and results in stronger and more specific exports.

On the basis of experiences from Slovenia, I can emphasise that also drawn from experiences during our presidency, when we succeeded in initiating the negotiation process. The successful opening the development of SMEs, more than anything, leads to lasting stable conditions for the successful and sustainable economy of a of the 4th cluster of chapters indicates that EU membership is an small country based on exports and greater competitiveness, which achievable goal for Serbia, and one that depends primarily on its in turn create unlimited opportunities for strengthening business progress in the negotiation process. ties. Of course, due to current world events and the achieving of ■ Do you consider Serbia’s stance that it cannot join the sustainable development goals, the development of sustainable energy sources and ecology, and major investments in them, has economic sanctions imposed on Russia as complicating become a trend around the world and, more importantly, in our the country’s European integration process? common EU region. We are glad that Serbia has bold and ambitious - I think that, at this moment, it doesn’t ease the process. When we plans on that front. And not to forget about local food production, reach the point of a new assessment of Serbia and its status as an adequate logistical systems and the development of digital services EU membership candidate, it will certainly impact on the evaluand solutions. The world is changing rapidly from a global story ation. We’re talking about the issue of sanctions against Russia, to a regional and local one, and there are plenty of suitable new but we’re essentially referring to the harmonising of the country’s foreign policy with that of the EU – meaning it’s not just about directions for strengthening business ties.

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sanctions against the Russian Federation. If the 27 member states have a common position, those wanting to become part of that group must accept the same position, otherwise they can’t be in that group. That’s completely clear. Serbia is a sovereign country and it should decide on its own political will and desire.

■ What kind of stance does Slovenia have regarding Republika Srpska? The public here has become convinced that Slovenia isn’t on the side of those EU members advocating the policy of sanctioning Republika Srpska officials, primarily Milorad Dodik?

- It wouldn’t be appropriate for me, as ambassador to Serbia, to comment on the situation in B-H. Bosnia-Herzegovina is a sovereign country on basis of the Dayton Peace Agreement, and Republika Srpska is part of that country.

■ For what reason does the EU insist that a country that’s just an EU membership candidate, and not a member state, fully harmonise its foreign policy with that of the Union?

- The essential factor is that candidate countries should share the ■ Slovenia, like other EU countries, is facing gas and values that are common to the EU family. That’s especially so in oil supply problems, which impacts on electricity and the foreign policy domain, if there have been gross violations of petrol prices. Former Prime Minister Janša mentioned the basic principles that are advocated by the civilised world.

In the short term, there are no alternatives to These are the rules that everyone should have Russian energy, which can be seen in current energy gone through following the introduction of the prices. But all of that only pushes those of us in the EU’s common foreign and security policy. It’s certainly in the interests of everyone for each EU towards the faster transformation of energy, in candidate country to show that it is at the level order for us to be able to achieve the sustainable of the group prior to gaining full membership in development goals that have been set, as well as the EU, and not for it to first become a member greater energy independence, ahead of schedule and only then decide whether or not it will do this or that.

Algeria as Slovenia’s new supplier of natural gas. Do ■ Are you concerned over claims that the crisis in reliable and ample alternatives to Russian energy exist?

- Slovenia is a small country and we buy energy on the spot market.

Ukraine could destabilise the Western Balkans?

- Unfortunately, the Western Balkan region hasn’t yet achieved a Of course, our economy also had long-term stable cooperation with state of long-term stability. The crisis in Ukraine certainly could Russia’s Gazprom prior to the crisis, and we also sourced gas from have a negative impact on stability. However, I’m an optimist by elsewhere. Oil too. In the short term, there are no alternatives to nature and think that the political leaders in the Western Balkans Russian energy, which can be seen in current energy prices. But are sufficiently experienced, that they have a clear understanding all of that only pushes those of us in the EU towards the faster transformation of energy, in order for us to be able to achieve that conflicts and wars don’t help and, on the contrary, cause damage that takes decades to repair. As the countries of the Western the sustainable development goals that have been set, as well as Balkans have recently, unfortunately, experienced the horrors of greater energy independence, ahead of schedule. This all costs a war, that should be a guarantee of peace. And that’s why every lot and is painful not only for the economy, but also for individucountry should fight for itself to ensure that extremist and nation- als, though they’re also adapting at light speed and investing in personal power plants on their roofs and in changing their habits. alist ideas don’t prevail.

It’s difficult for the economy to do that overnight.

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INTERVIEW

Courage, Ideas,

FAITH IN SUCCESS DANIJELA FIŠAKOV PRESIDENT OF THE SLOVENIAN BUSINESS CLUB

The work of the Slovenian Business Club, which has commemorated its 19th year of active existence, is marked by an impeccable reputation and highquality engagement.

We cooperate wonderfully with Serbian institutions and other associations and business clubs, and we’re proud of that cooperation because it enables us to contribute to the advancement of the Serbian business environment

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othing’s as successful as success – that’s the story of the Slovenian Business Club, which year after year maintains its reputation as a place that can provide its members with high-quality support and has its doors open to cooperation with the business community in Serbia.

■ You will soon commemorate a decade of your work as president of the Slovenian Business Club. Are there any unknowns and new challenges in this field for you?

- When I accepted the challenge of managing the Slovenian Business Club slightly over nine years ago, I knew that I would need courage, ideas and faith in success. I knew all the ingredients, but not the quantities. I wasn’t aware of just how much courage, ideas and faith I would need, and the last thing I could have imagined was how much arduous work and sacrifice would need be invested

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in the endeavour that I’d taken on. After nine years, I would claim that it was definitely worth it. Of course, I wasn’t alone on that journey. The other members of the Board of Directors were with me. Together we overcame obstacles and achieved successes.

The kind of team and members that are a source of pride for the Slovenian Business Club make it a genuine pleasure to cooperate and implement the mission of the club.

We are all very well aware that it’s neither simple nor easy to work with people, particularly with people whose job description requires them to demand high-quality and good results of themselves and others. Nor is it easy and simple to work with the kind of demanding people that businesspeople are. However, it is a real pleasure to work with an upstanding, refined, business-minded and hardworking world like the one represented by our members and business partners. I constantly meet new people, people with new

GRATITUDE I’m eternally grateful to every individual and company that’s participated in the creation of the brand of the Slovenian Business Club throughout all these years

SOCIALISING After two years when we didn’t really have much in the way of conditions to get together, our socialising has again become very intensive, perhaps even more intensive than before

ideas and visions. Over the past nine years, I’ve been incredibly enriched by my time spent socialising with all of them. I draw energy and motivation from socialising and cooperating with them.

■ When it comes to membership numbers, efficiency and efficacy, the Slovenian Business Club in Serbia ranks at the very top among Slovenian business clubs around the world. To what do we owe that ranking?

- The Slovenian Business Club has just completed 19 years of its existence and activities, which have been marked by an impeccable reputation and high-quality work. It has succeeded, or rather all of us have succeeded together, in establishing high standards with which we send everyone a clear message that we are a trustworthy organisation that can be relied upon. To spend 19 years as a reliable partner to its members and two countries is certainly a significant success that’s worthy of respect. I’m eternally grateful to every individual and company that’s participated in the creation of the brand of the Slovenian Business Club throughout all these years.

We strive constantly to maintain the reputation we’ve acquired, i.e., for the Slovenian Business Club in Belgrade to be and remain the hardest working and most valuable Slovenian business club in the world, and for it to firmly and securely take its place among the very top of similar foreign clubs or chambers operating in Serbia.

■ There’s no doubt that the Slovenian Business Club is among the biggest, in terms of membership numbers, and most successful foreign business associations in Serbia. Where is your niche on the business association market and how do you handle the competition?

- The Slovenian Business Club is the only business association in Serbia to connect the economies of Slovenia and Serbia directly. As such, we don’t have competitors among other business associations, rather only partners. All similar business associations represent the

RECORD According to Slovenia’s official statistics, the volume of the trade exchange reached almost 1.9 billion euros in 2021, representing the largest volume in the last five years

business interests of their country or companies from their country operating in Serbia. As partners, we together organise meetings and lead dialogue with state institutions aimed at improving the Serbian business environment and the operations of our members.

We very often jointly organise events at which our members gather, network, get better acquainted, mutually exchange experiences and information, educate one another and create opportunities for future business cooperation.

We strive constantly for the Slovenian Business Club in Belgrade to be and remain the hardest working and most valuable Slovenian business club in the world, and for it to firmly and securely take its place among the very top of similar foreign clubs or chambers operating in Serbia The specific activity that distinguishes us among the others is reflected in our establishing of “one-on-one” contacts, i.e., the Club’s one-on-one work with individual companies to identify solutions to specific problems faced by members that the Club can contribute to overcoming, as well as providing companies with support in finding potential partners for cooperation.

■ Your cooperation with numerous other associations is evident from your activities. What are the most important areas of cooperation for your members and what does that cooperation bring in terms of providing your members with high-quality information and enabling their interconnecting?

- We can boast of having excellent cooperation with all other business associations, which represents an added value of membership

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in the Slovenian Business Club. We cultivate traditionally good relations with other foreign chambers and clubs, which really came to the fore during the extraordinary circumstances of the Covid-19 pandemic. We mutually exchanged information and helped each other. And today we cooperate wonderfully on the organisation of joint events like working breakfasts, panel discussions and business networking events at which our members have the opportunity to meet members of other business associations. The bestknown joint event is the Speed Business Meeting. Another form of cooperation is on joint initiatives to approach state institutions, which relate to improving the business environment in Serbia.

We are proud of this cooperation, as we thereby contribute to the advancement of the Serbian business environment, which enables better business conditions for our members and their connecting with members of other business associations.

follow the wishes of our members, which is why we’ve already organised a lot of interesting gatherings since the beginning of the year, and those that are yet to come will be very interesting and useful.

■ From the perspective of the business climate in Serbia, which topics are in your focus today?

- Following the two-year struggle against Covid, we were unfortunately hit by the Ukraine crisis, which is impacting the economy of the whole world, and thus also Serbia. We are struggling with drastic increases in prices and rising inflation, with a lack of various inputs and a labour shortage. As such, all our topics relate to the impact of this crisis on the economy and post-Covid economic recovery. Of course, there are also themes that have been topical for several years: combatting the grey economy and corruption, simplifying tax procedures, reducing red tape, increasing the efficiency of the public administration and administration, and all in parallel with intensive digitalisation.

■ Can we say that we’ve now returned to the old ways, meaning the policy of meeting and ■ Which business sectors in Sersocialising in person? bia are currently the most topical - The preceding 2020 and 2021 were for your members? years during which we didn’t really - Slovenian-Serbian relations, both have much in the way of conditions to economic and political, are traditionally gather with the kind of intensity that good and constantly developing and we were used to. Those were years deepening. Slovenia is wholeheartedly of great challenges for the Slovenian Following the two-year trying to contribute to, and accelerate, Business Club, because realising and struggle against Covid, we were Serbia's European integration process. maintaining contacts isn’t just the core unfortunately hit by the Ukrainian Serbia is the only country of the former of our affinity with our members, but crisis, which is impacting the Yugoslavia to have a representative rather the very essence of our existence economy of the whole world, and office of its national chamber of comand activities. Ultimately, before and merce in Ljubljana. since the days of Aristotle, man has thus also Serbia… That’s why all The volume of the trade exchange been a social being. the topics in our focus relate to between the Slovenian and Serbian Anti-Covid measures imposed sigthe impact of this crisis on the nificant restrictions on us. However, economies has expressed a continueconomy and the post-Covid ous and significant upward trend for we were capable and succeeded in recovery of the economy many years. According to Slovenia’s utilising every moment of their easing official statistics, that volume reached in a timely manner, to quickly and properly organise, and then to also gather in person. Since the month of almost 1.9 billion euros in 2021, representing the largest volume September last year, thanks to the more favourable epidemiological of this trade exchange in the last five years. In the future, the value situation, all activities of the club have been held live, in-person, of our trade exchange could be much higher and the volume even and I can state unreservedly that socialising has again become very more significant, as there is great and still completely unexploited intensive, perhaps even more intensive than it was two years ago. potential and capacities for that on both sides. The IT, agriculture, The atmosphere at gatherings is traditionally lively and cordial. construction and environmental protection sectors are still a long It’s clear that we all desired in-person contact. Ultimately, it’s also way from achieving their cooperative maximum. easier to do a job if people are sitting face to face. At the club we 12

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BUSINESS

Continuing To Create

A SECURE FUTURE

Despite demanding circumstances, Triglav Group recorded revenue and profit growth DRAGAN MARKOVIĆ PRESIDENT OF TRIGLAV OSIGURANJE BEOGRAD EXECUTIVE BOARD company continuously monitors, reached the highest measured level so far. In its operations, the group focused on development and on clients, which remains one of the key directions in the revised strategy until 2025. Triglav Osiguranje Beograd also increased its total premium in the first quarter of 2022, and the company's premium growth exceeded that of the Serbian insurance market.

n the demanding circumstances of the first quarter of 2022, the Triglav Group increased its total revenues by 12% compared to the same period last year (EUR 442.9 million), and the volume of gross insurance premiums written (EUR 407.1 million) rose by 10%. Premiums grew in all insurance segments and in all markets of the region in which it operates. Quarterly consolidated pre-tax profit of EUR 38.1 million is 20% higher than in the same period last year. We are speaking with Dr Dragan Marković, president of the Executive Board of Triglav osiguranje a.d.o. Beograd, about how the group that Triglav osiguranje Beograd belongs to has maintained its financial strength.

■ The pandemic is not yet over, we are close to a raging war that could further escalate and the world is threatened by famine and an energy crisis. Does this instability make people want to insure themselves against what's coming?

- Without a doubt. The instability that people feel due to new circumstances influences their desire to insure themselves against what is coming. The pandemic pointed out the need to expand risk coverage and the scope of coverage, both in the insurance of natural persons and in the insurance of legal entities. Expansion of coverage for natural persons is primarily related to travel health insurance, voluntary health insurance, loss of earnings, unemployment and life insurance, while for legal entities (including sole traders) in addition to employee insurance, extensions are related to business interruption due to the pandemic, insurance of claims due to economic effects on the business environment. The pandemic’s appearance also required the adjustment of business models (e.g. work from home), the improvement of services, the modification of methods of distribution and communication with clients, and the accelerated digitalisation of business processes. As a consequence, the exposure to cyber risks has increased, and the need for an additional commitment to occupational safety and staff health has arisen, especially in the post-Covid period.

■ How do you explain the fact that, despite serious competition, the Triglav Group is gaining increasing customer trust, continuous and stable growth and market recognition?

- In the first quarter of this year, the Triglav Group achieved premium growth in all insurance segments and in all markets in which it operates, and also strengthened its position in most markets. The good results came from taking on the risk of insuring and managing clients' assets in mutual funds and individual management. Last year, the Group received the high A rating from recognised credit rating agencies. Also, during 2021, staff and client satisfaction, which the

■ Does membership of the Triglav Group, the leading insurance group in the Adria region, allow you to use experience and practises from other markets to improve services and products intended for customers?

- The Triglav Group is the leading insurance and financial group in the Adria region and, as such, transfers examples of good practice to all member states. Triglav osiguranje in Serbia continues its development in the direction of digital transformation and service-oriented business models and ecosystems, with a constant focus on the client and his needs. We have serious strategic initiatives and plans that adhere fully to our mission of creating a more secure future for all stakeholders.

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BUSINESS

ALEKSANDAR SPREMIĆ, DIRECTOR, HALCOM

’Cloud’ Qualified

CERTIFICATES In May this year Halcom celebrated its 30th anniversary.

It was created in a turbulent period full of challenges and opportunities. The challenges have made it stronger and opportunities have given it a chance for the future. Today, three decades later, Halcom continues to raise the bar in line with the latest security standards in electronic banking

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he end of the state-owned SDK and the restructuring of the banking sector enabled the introduction of electronic banking in the former Yugoslav republics. Halcom made an effort to fill this empty space with a quality product (Hal E-bank), which is one of the first ’cloud’ solutions in this region and beyond.

This product alone would not be enough if behind the company there were not people who have been doing their best for decades, so that customers have a high quality and secure service. At the time, PKI technology (reader and card) was a real little IT marvel of the crypto world.

Whether we admit it or not, informatics dominates the world. Recent events with

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the still current Covid-19 pandemic have convinced us that we need computers and computer services even more in times of crisis. They allow us to work remotely, more efficiently and faster. The number of interactions between businesspeople in the cyber world has increased dramatically, so the usefulness of electronic identity has become more important.

At the end of 2020, Halcom was among the first in Serbia to register a ‘cloud’ certificate, HalcomOne: a combination of a legally valid means of identification and a signature, legally the equivalent of a handwritten signature, and easy to use in the form of an application on a mobile phone. HalcomOne is designed to meet all legal and security standards, while providing both the electronic service provider and end user with full flexibility and ease of use.

The banking sector, which is the focus of Halcom's business, has traditionally been at the forefront of introducing digital services.

The HalcomOne solution has already been implemented in several banks that provide their clients with almost complete banking operations in digital form, starting from the first account opening, to contracting all types of credit and related services, but also daily communication with the bank.

In addition to banks, a growing number of businesses have recently turned to ecommerce, even in sectors that until recently were conservative and based their business on traditional ways. The two years of the pandemic, which set the condition for the transition to digital ways of doing business in order to survive on the market and continue

doing business in ‘new normal’ circumstances, also contributed to this.

HalcomOne cloud certification can be easily and quickly integrated with any service or solution, so in this sense the digitalisation of business is much easier for those companies whose focus is not information technology and who have no experience in implementing complex electronic services.

HalcomOne cloud certification can be easily and quickly integrated with any service or solution By recognising complementary services and networking with other market innovators, we strive to create an ecosystem of digital services that operate through remote access to the service centre. In this way, the users of our services can quickly and easily start using the solution for their own needs, but also for the needs of their clients, without large investments in infrastructure. By using the infrastructure in the safe environment of Halcom, all our clients can relax when it comes to the stability and availability of the service, but also the most modern security and regulatory standards of the European Union.

We can proudly point out that, by providing innovative solutions for both banks and other companies, Halcom helps reduce operating costs, increase revenues and generate faster economic growth in Serbia and the region, which will remain Halcom's focus in the years to come.

BUSINESS

NENAD TEŠIĆ, PARTNER, EGZAKTA ADVISORY

International Knowledge

NEEDED LOCALLY

Egzakta Advisory is a team of professional consultants, analysts and experts in management consulting who are highly dedicated to their clients and help them overcome current challenges and improve performance

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he domestic consulting market is becoming more mature – more and more companies are today planning annual budgets for local consulting to continuously improve their company and utilise its full potential ■ You are seen as the fastest growing consulting company in the region, with a brilliant portfolio. Is your team really able to compete with big global players on the market?

- We take care of a holistic approach to projects in which we use workshops with clients to come jointly to solutions and the successful implementation of their most demanding projects. Every time we strive for the same goal - to transfer knowledge to our client. We believe that only then do clients feel the true value of working with consultants. We today have 15 consultants engaged in the region. They work with some of the most famous companies on strategic national projects in digitalisation, the IT sector etc.

We have proven that beginning with intensive teamwork and educating our people, both through training, scholarships for the best business schools, our mentoring programmes, an intensive approach to work and insistence on quality and detail can yield results that are no different from those of a global consulting company. We plan to expand our business to markets in the region, primarily North Macedonia, Romania, Bulgaria and Slovenia, where we believe we can be very competitive.

■ Due to specific and challenging economic opportunities, many companies are opting to transform their

and implemented if we are to meet the demands of the global market. What was acceptable as a practice until yesterday probably has to change today or in the near future. When we talk about transformation, I don't mean only digitalisation, which is one of the imperatives and the most recognisable changes in business models.

I also mean transformation like changing the approach to staff, understanding new consumer habits or the requirements of public sectors. We set ourselves up as a 'devil's advocates', we lead clients in the direction of reviewing all their processes and reviewing all their habits, in order to realise the full potential of the company, and not just individual segments.

We plan to expand our business to markets in the region, primarily North Macedonia, Romania, Bulgaria and Slovenia business models. Egzakta deals with that business as well, but in its own way...

- We believe that transformation is necessary for all kinds of work, regardless of the sector. Initiatives must be adopted

■ You have your own methodology and rich practise, but the speciality you bring to your clients is your knowledge of local markets. Is that the best combination?

- At the very beginning, we set up our company as a local management consulting company based on international knowledge and many years of experience. Knowledge of local markets and culture is certainly a great advantage. Bringing international knowledge to the local level leads to modernisation, catching up with new trends and expectations. The changes we have foreseen in the management consulting industry itself include an even greater focus on our clients, who have been expecting an even greater presence of consultants in their companies lately. In this way, clients want us to provide a new view of things and new knowledge for which they do not have time due to ongoing work.

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BUSINESS

IGOR DODIĆ, LAW FIRM DODIĆ ĐURIĆ DABIĆ

ADVOKATSKA KANCELARIJA

DODIĆ / ĐURIĆ / DABIĆ

Legal Practise Is The

BACKBONE OF BUSINESS Law firm Dodić Đurić Dabić has vast experience when it comes to working with business. Their clients include local and foreign companies operating in the fields of construction, IT, energy, transport, import and export, while they also include several insurance companies

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estate prices remain lower compared to other European capitals even with such a price hike, which is why we consider it a good idea for companies and individuals from Slovenia to invest in constructing or buying real estate in Serbia, as prices are estimated to continue rising.

n work with the real estate sector, Dodić Đurić Dabić is considered a very reliable partner, as its team does everything successfully – from choosing a construction location, obtaining permits and cooperating with works contractors, to representation during the sale and renting of residential units and business premises.

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■ Your clients include a number of insurance companies, including one from Slovenia. Are there products that have yet to fully emerge on our insurance market?

- In view of the fact that legal practise is an integral part of every business, our law firm is a friend to its clients because it takes care about their operations and advises them with the aim of protecting their interests.

As such, in the insurance field we advise clients to conclude insurance policy claims through which the client transfers the risk of collection claims from themselves to their insurance. In the case that the buyer of products and services fails to fulfil their obligation to pay within a given deadline, the insurance pays the insured amount to the client and thereby reduces the client’s business risk, provides security and certainty in payment and increases their competitiveness, all of which leads to the growth of sales and revenue. We also suggest that clients take out transport insurance.

The stable political and economic climate in Serbia has contributed to the expansion of the construction sector, along with the fact that Belgrade is the centre of the region

■ There are no secrets for you in the real estate sector. What led to the construction sector’s expansion?

- The current situation on the Serbian real estate market is extremely favourable for both investors and buyers. The stable political and economic climate in Serbia

has contributed to the expansion of the construction sector, along with the fact that Belgrade is the centre of the region and thus ever more foreign companies have headquarters in Belgrade. Real estate prices have increased in some locations by 100% over the last five years. And real

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■ We know that you also deal with energy... Does the introduction of the concept of institution of buyers-producers of electricity on our market mean that conditions have been met for the construction of solar power plants and that there’s now a need to invest in solar panels?

- With the 2021 adoption of the Law on the Use of Renewable Energy Sources, conditions have been met for the construction of solar power plants, which will contribute significantly to ensuring a stable future for Serbia’s electricity market, as this reduces our energy supply dependence on other countries. We thus consider this the right time to invest in the construction of solar power plants.

With this law, the concept of the institute of buyers-producers of electricity was introduced, which enables citizens and businesses to install solar panels on their facilities that will produce electricity for their own needs, and they can sell or exchange whatever energy they don’t consume for kilowatt hours. The procedure is relatively simple and can be carried out in just a few steps.

The essential protection of the environment is achieved in this way, while savings are created in the budgets of both households and businesses, and Serbia becomes a modern European state.

BUSINESS

DUŠAN MILIĆEVIĆ, GENERAL MANAGER, COMTRADE SYSTEM INTEGRATION

Always At The

SOURCE OF INFORMATION Comtrade System Integration has existed for more than 20 years as part of the Comtrade Group, which has been operating successfully for more than three decades.

In Serbia, CTSI has two technology campuses, and the Ljubljana office manages all the company's capacities located in Serbia and B-H.

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orking with industry leaders allows us to be positioned at the source of information on upcoming trends and technologies, and thus prepare well, which is a very important aspect of our dynamic IT industry ~ explains Mr Milićević.

■ We know that Comtrade System Integration is the leading regional system integrator. What does it mean to work with you?

- In the two decades of our operations, we have achieved the highest partner status with global IT giants like Microsoft, IBM, CISCO, HP, VMware, DELL and many others. This tradition of successful collaboration is also reflected in hundreds of clients from financial institutions, private and large business systems, TELCO industry actors and numerous public institutions, who have had the opportunity to witness the quality of our services in over 1,000 delivered projects. This is due to the expertise and dedication of our engineers, solution architects, business analysts and other highly qualified experts we employ in Serbia, Slovenia and Bosnia-Herzegovina.

A common condition on certain calls for bids and tenders is the formal status that the bidder company should have with a particular vendor, where the statuses we have achieved over the years - Microsoft Gold, IBM Platinum, CISCO Gold, DELL Titanium - are just some of the competitive advantages that enable us to be successful.

■ We know that in Serbia as many as 73% of banks and more than 40 public institutions use your services. Are you similarly positioned and competitive in Slovenia?

The strategic direction of our future development is aimed at parallel development of our own solutions, for our existing and future clients - We have two technology campuses in Serbia, where, in addition to developers, our colleagues from the field of business analytics and business support processes work. Our strength is evenly distributed throughout the region, which has been recognised by numerous clients from Slovenia, such as the NLB Group, Triglav, SID Bank and many others.

The history of our company is also deeply interwoven with the tradition that Comtrade has in Slovenia: companies that until recently were members of the group, Comtrade Solution Engineering and HYCU, were actually mostly created in the acquisition of Slovenian company

Hermes Soft Lab in 2008. So, at the level of the group, as well as the Integration System, the Slovenian market has been very well known for almost 15 years.

■ You help companies improve their business models, but so do others.

What is your competitive advantage?

- Thanks to the size of our company, by which I mean the range of the portfolio, Comtrade System Integration is practically a ‘one-stop-shop’ for our clients and all their IT needs. Also, sharing certain capacities that other companies in the CT group brought has added value, CTSI today has the opportunity to offer custom development services in addition to operating as a system integrator, which relieves us of the pressure of depending on any vendor. Of course, we are still a system integrator and relations with our vendors are invaluable, but the strategic direction of our future development is aimed at parallel development of our own solutions, for our existing and future clients.

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ECONOMY

Favourable Trends Despite

ADVERSITIES

Despite the setbacks resulting from the war in Ukraine and unfavourable global conditions, the Slovenian economy is doing well. Slovenia and Serbia remain good trade partners, while investments are also growing on both sides

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ccording to the Bank of Slovenia’s latest estimate, the Slovenian economy expanded by an estimated one per cent quarter-on-quarter in the first three months of 2022, despite the impact of the Russian invasion of Ukraine on economic activity. The current EBRD forecast for Slovenia’s real GDP growth stands at 3.6% in 2022 and 3.8% in 2023.

According to the country’s central bank, inflation in Slovenia totalled six per cent on an annual comparison basis in March, due to the rise in energy prices that’s being transferred to the cost of other goods.

At the same time, the central bank noted, labour market conditions remain very favourable as employment continues to rise, while the falling availability of local workers is resulting in the employment of foreign workers increasing.

Slovenia has a skilled and productive labour force of around a million people, of a population of 2.08 million. The agricultural sector is declining and equated to only 2.1% of GDP, employing around 4.3% of the population in 2021 (World Bank). Forestry is a key economic factor, with 66% of land area forested and an annual production value to the economy of €250 million. The industrial sector represents 29.4% of GDP and a third of employment (34.1%). Historically, the dominant industries in Slovenia have been the forestry, textiles and metallurgical industries. Tertiary services remain the most significant sector of the Slovenian economy. Representing 56.9% of GDP and employing 61.6% of the total workforce, this sector has shown a strong growth pattern over the last ten years, particularly in the fields of information and communications technology (ITC), financial services, commercial services and retail business. Furthermore, Slovenia’s tourism sector is very dynamic and has been undergoing a period of strong development over recent years. A total of four million tourist arrivals and more than 11 million overnight stays were recorded in Slovenia in 2021, representing 31% more arrivals and 22% more overnight stays than the previous year.

Slovenian investments in Serbia total almost a billion euros and Serbian investments in Slovenia stand at €250 million. To put these figures into context, the trade exchange has more than doubled over the last decade and is continuing to grow constantly Slovenia is highly open to foreign trade, which represents about 146.5% of the country's GDP. Slovenia is integrated within German and Austrian production chains for motor vehicles and electrical and electronic equipment, and is included in Swiss chains for the pharmaceuticals industry, generating more than half of its goods exports from these four sectors. Slovenia’s exports had fallen due to the drop in global demand during the global financial crisis and the economic difficulties faced by EU countries, but since 2011 exports have been increasing continuously, according to analysis performed by Credit Agricole.

According to Comtrade data, the main destinations of Slovenian exports in 2020 were Germany (18.0%), Switzerland (12.1%),

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Italy (9.3%), Croatia (8.0%) and Austria (6.4%), while that year’s imports came chiefly from Germany (14%), Switzerland (12.7%), Italy (10.8%), Austria (7.5%) and China (7.3%). Slovenia has an external trade deficit with EU member states that has been decreasing over recent years. On the other hand, the country has been enjoying an external trade surplus with non-EU member countries.

Slovenia took over the rotating presidency of the EU Council in 2021, and it was decided during its mandate that the Economic and Investment Plan for the Western Balkans would be brought forward, thus bringing concrete deliverables of the EU’s engagement in the Western Balkan region and establishing shared EU-Western Balkan priorities for the coming years, enabling the Union and this region to advance together towards more innovative, greener and digital economies.

The countries of the Western Balkans, and Serbia in particular, are long-term trade and investment partners of Slovenia. According to the latest data, Slovenia exported goods worth approximately €1.2 billion to Serbia, while the value of Serbian exports to Slovenia totalled €800 million.

Investment cooperation is also good. Slovenian investments in Serbia total almost a billion euros and Serbian investments in Slovenia stand at €250 million. To put these figures into context,

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the trade exchange has more than doubled over the last decade and is continuing to grow constantly.

Furthermore, the Slovenian and Serbian power transmission system operators (TSOs) ELES and Elektromreža Srbije (EMS), and EPEX SPOT have signed an agreement and recently announced the establishing of the first regional power exchange for Central and Southeast Europe.

Slovenian and Serbian power transmission system operators (TSOs) ELES and Elektromreža Srbije (EMS), and EPEX SPOT have signed an agreement and recently announced the establishing of the first regional power exchange for Central and Southeast Europe The newly founded Alpine-Adriatic Danube Power Exchange – ADEX – will offer harmonised, one-stop-shop spot power trading services in Slovenia and Serbia, with the ambition to also extend operations and services to other countries in the region of Central and Southeast Europe (CSEE), according to a joint press release issued by the three companies.

BUSINESS

DEJAN TURK, CEO, A1 SRBIJA AND A1 SLOVENIJA

Dedicated To

DEVELOPMENT A1 Srbija, as part of the A1 Telekom Austria Group, has raised the bar to an even higher level. With the “tailwind” provided by the parent Group and the high motivation of employees, the company has implemented its largest investment cycle to date

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e spent the whole of last year as leaders in the number transfer process, and the latest RATEL data show that this trend isn’t stopping, with more than 10,000 users having switched to us in the first three months of the year ~ reveals A1 Srbija CEO Dejan Turk, with undisguised pride.

■ The launch of the A1 Srbija brand saw the announcing of great advances in network infrastructure and modern new services. How much of this has been achieved more than a year after rebranding?

- When we last April entered a new era of operations, together with our customers, the idea was to retain everything good that set us apart from the competition, and to raise the bar to an even higher level thanks to the fact that we’re part of the A1 Telekom Austria Group.

We’ve constructed 130 new base stations across Serbia and – with a total of 2,315 – become the second largest operator in terms of the number of base stations. Radio capacities at Serbia’s national level have increased by 63%, while the user experience has been improved through the automating of VoLTE technology, all of which has contributed to the quality of the A1 network confirming second place in RATEL’s annual rating. Recognition of this among users is even more important, given that the largest number of users of other operators by far are switching to A1.

■ What are the greatest operational changes in 2022?

- Although I’m a child of these lands, where a lot has happened over the last 30-odd years, the world is being changed fundamentally

tions are at the core of that pillar, because the focus is increasingly shifting to the ICT field. For example, at A1 Srbija we don’t only connect people, but also devices, creating machine-to-machine communication in a big way. Apart from that, our experts have launched excellent business solutions for cyber security, device connectivity and cloud platforms, all in accordance with the turnkey system.

We have great support from the A1 Group, which means that we’re cooperating in this field with the best of the best on the world’s IT market. Thanks to these insights and experiences, we’re in a position to predict customer needs and provide them with fully rounded solutions that are tailored according to their needs, both private and business.

We’ve constructed 130 new base stations across Serbia and – with a total of 2,315 – become the second largest operator in terms of the number of base stations by the changes that we’ve been witnessing since 2020. Apart from operational sustainability having become an essential condition, particularly sustainability related to the environment and the world around us, I would single out the speed with which digitalisation has consolidated its position as one of the most important pillars supporting economic development and improved quality of life for our users. And telecommunica-

■ There was lots of talk about the 5G network until recently, before the topic somehow disappeared from public discussion. What is happening in this field?

- We all know that the frequency spectrum is limited and that expanding radio resources is only possible through the acquisition of a new spectrum intended specifically for 5G technology. The field of telecommunications worldwide is being changed massively by 5G, with users benefiting the most because this technology can best respond to the huge growth in data transfers and the need to connect devices, with high speed and low latency. A1 Srbija is committed to developing in accordance with the new spectrum, which we expect an auction for, and we are fully prepared for the rollout of 5G technology, which is one of the key factors of further economic development based on digitalisation.

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BUSINESS

VRNJAČKA BANJA

A Place Where

MEMORIES ARE BORN It is difficult to demonstrate uniqueness today, but Vrnjačka Banja definitely has many advantages which, for good reason, make it one of the foremost tourist destinations, with the status 'town of the first tourist category'

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t is a place of unique history that dates back to the distant past when, more than two millennia ago, the healing properties of the mineral waters of the spa at Vrnjci were discovered by the Roman legionaries of Emperor Constantine.

Kings enjoyed its blessings, actors, writers, famous doctors, painters and bohemians gathered here, and officers and politicians walked its Promenade.

But Vrnjačka Banja is also a place of unique modernity adorned with magnificent buildings with a variety of content, a rich tourist offering and top class service which, in combination and balance with nature, leaves the unforgettable experience of a place where the most beautiful memories are born.

This fairy-tale green oasis, about 200 km south of Belgrade, is recognisable by its centuries-old parks with walking paths and fountains, the healing properties of its springs, a sculpture park, the Castle of Culture, a Japanese Garden, a labyrinth, the Bridge of Love connected to a tragic love story, the proximity of Goč mountain and the West Morava river, the old spa villas…

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With many events that are part of the Vrnjačka tradition such as the Vrnjačka Carnival, the Film Screenplay Festival, the Festival of Pop, Folk and Classical Music, the 'Love Fest', and many new events, the season at the spa lasts all 12 months.

You will experience its spirit and a magic that relaxes all the senses with long walks in the spacious parks of Vrnjačka Banja, with obligatory photos at the waterfall, the bivouac, the Goč sparrow, the roundel and the new fountains.

We know that your most valuable resource is energy, and you will need it for so many wonders that you just have to experience here, and the attractions that you must try! But don't worry. Here

you will find many magical places to replenish your reserves. Hotels and restaurants, but also fast food spots offer a large selection of delicious food and drink, each with a unique idea and concept.

A modern water park promises an unforgettable adventure for all lovers of swimming pools, water and slides. Its grand opening is scheduled for 14 July this summer, when Vrnjačka Banja marks one of the most important dates - 154 years of organised tourism. Every millimetre is designed with great attention to the smallest of detail to inspire you to embark on an unforgettable whirlwind of emotions. Among the beautiful oases of natural greenery, you will find an incredible variety of water facilities covering 3.5 hectares of unforgettable fun. It will be the biggest water attraction in the region, both because of the number of people it can serve and because of the modern construction that can be seen in the best aqua parks in the world.

We recommend a walk along the paved hiking trails of the Crkveni Brdo hill, which through its long history has been called Krš, Stena, Aleksandrovo and Čajkino Brdo. This is a large rock of volcanic origin in the heart of the spa town, surrounded by greenery and adorned by a cascading waterfall which, with its murmur, unobtrusively reveals a secret that Lehr's tunnel has been hiding for eight decades. In this 130-metre-long tunnel, nine rooms will be turned into a museum space with exhibits found during archaeological excavations. It will testify to the distant year of 1942 when the German command led by General Alexander Lehr, known for bombing Belgrade and an airborne attack on Drvar, built a shelter here. One part will be turned into a 6D cinema, in which a multimedia experience will show visitors films about the history of Vrnjačka Banja.

Unique in its splendour, Crkveno Brdo is adorned by the Summer Stage, which in summer becomes the central place of cultural and enter-

tainment for the Spa. It also sports a monument to poetry – a Muse with a bird reminiscent of the spirit of bygone times. Decades ago, Yugoslav poets of all generations and genres recited their verses from this hill. And next to the Museum of Poetry, with a view of the central spa park and the Tople Vode buffet, a glass belvedere will soon shine in the thickets of mountain greenery, similar to a previous one which, as a reminder of the days spent at the spa, was a frequent background motif for old photographs of those who came here to find a cure for their ailments, a refuge and peace.

Dressed in a new outfit, the beauty of the Vrnjačka Promenade is complemented by the

spa park that gradually harmonises with it in style and connects it with dozens of thematic bridges.

At the end of the year, right at the place where the promenade ends, a new tourist attraction will greet you. The largest panoramic wheel in Serbia, 58 metres tall, which will offer the most beautiful view of the green oasis of the spa.

With 32 closed air-conditioned cabins, it will be available to everyone throughout the year. From a rush of adrenaline to complete relaxation, it will become part of an unforgettable experience that will be especially enhanced in the evening by the impressive ice lighting.

For lovers of clean mountain air, Mount Goč is an ideal choice. In addition to panoramic

views, adrenaline sports, quad driving, staying in typical Goč houses and enjoying untouched nature, new features are being designed under the symbolic name Goč Mountain Paradise. This paradise will include a wide range of attractions for all generations - plush meadows designed as a children's village, a sunny slope with forest cabins, the Proplanak recreational complex, a lake of calm water at Seliste, a maze, a mini zoo, a zip line, an adventure park, a fist-shaped observation post. As one of the most important and most ambitious endeavours, the construction of a panoramic gondola is planned, which will connect the centre of this spa town with the beauty of this virgin mountain.

“Thanks to its rich content, more beautiful and tidier atmosphere, high accommodation capacity and many events, Vrnjačka Banja is today a competitive tourist destination and one of the most visited places in Serbia and the region.

Achieving that would have been impossible without the synergy of the state, local government, businesses and tourist agents. A successful start to the year and huge interest in holidaymaking in Vrnjačka Banja promises to set new records in 2022.

What's most important to us is the growing number of loyal guests and their positive comments, which confirms that, with new contents and investment every season, Vrnjačka Banja retains the magic of its leading position and as a place where the most beautiful memories are born.” So says the first man of the Vrnjačka municipality, Boban Đurović, whose three consecutive terms have overseen the unprecedented revival and renaissance of Vrnjačka Banja.

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BUSINESS

NEMANJA ĐURIĆ, CIVIL STRUCTURAL ENGINEER, MOBECO D.O.O.

Always The

FIRST CHOICE Mobeco was founded by Put Inženjering for the construction of large business facilities, and is successfully operating in Slovenia, Croatia, and this year in Hungary, successfully competing with much larger companies

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n a short period of time, Mobeco can build thousands of square metres of production and storage space, in controlled conditions for certified production, at a competitive price. Currently, intensive work is being done on expanding production capacity and the range of construction products, with the introduction of new automated production lines. In this way, Mobeco will confirm its leading position as a supplier of prefabricated concrete structures in this region.

■ Are you satisfied with the results you have achieved and the place you occupy after only five years?

- I can say that I am. Like any company on a new market, Mobeco has had many and varied challenges in the past to position, prove and build its image and name. After five years of business on the Slovenian market, we are largely present in Croatia, and from this year we are active in Hungary.

Every year we do better than the previous one, and the number of buildings doubles.

■ You specialise in building large business premises for production and storage. What are the advantages of prefabricated construction in the high-rise buildings you offer?

- The advantages are primarily reflected in quality and speed. Prefabricated concrete structures have always been synonymous with speed in construction. We are able to build thousands of square metres of production and storage space in a short period of time, depending on the complexity of the project itself. Since the production of construction products takes place in controlled and certified conditions, we are not dependent on weather conditions, so that 26

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Mobeco has had many and varied challenges, but it has successfully positioned itself, proved itself and built its image and name work is possible throughout the year. Even if we add to all the above that the whole arrangement is obtained at a competitive price, it is clear which choice is the right one.

■ One of the main advantages of prefabricated construction is speed.

Has that brought you new clients and jobs today, when more is being built than ever? Is it time to expand capacity?

- Of course it is. I will cite an example where we were the only ones in the wider environment for a facility located in Croatia

who were able to meet the challenge in a very short time, which we did successfully, thanks to the largest production capacity of prefabricated mezzanine or roof slabs.

As far as the expansion of production capacities is concerned, this is being worked on intensively, together with an expansion of the range of construction products, the introduction of new automated production lines etc. As the market develops, Mobeco is consequently developing, and in this way we will confirm our leading position as a supplier of prefabricated concrete structures in this region.

BUSINESS

BORUT ČEH, CEO, LABENA D.O.O.

Two Stable Pillars Of

BUSINESS OPERATIONS Labena is a company that has spent almost three full decades as one of the market’s leading providers of complete solutions in laboratory and process analytics. It has expanded gradually and today boasts offices in six former Yugoslav countries, as well as plans to open new ones

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round 20 per cent of Labena employees are doctors of science, while the remainder have university degrees in the fields of molecular biology, chemistry, biochemistry, electrical engineering, physics etc., which creates the huge advantage of a multidisciplinary team. Interestingly, our company has 112 employees and women account for more than 50 per cent of the management team - notes Labena Manager Borut Čeh with pride.

■ How would you describe the development and expansion path of your company, which next year celebrates three decades of successful operations?

- Labena began as a small family firm with four employees. Founded back in 1993 by my mother, it opened an office in Croatia in 1994, in BosniaHerzegovina in 2001, in North Macedonia in 2003, in Serbia in 2012 and in Montenegro in 2019. The company has two pillars of operations. One is represented by the distribution of analytical and process equipment in four areas – science, medicine, nutrition and the materials industry, while the other pillar is represented by our laboratories in Ljubljana, which are certified by the European Medicines Agency and the U.S. Food and Drug Administration (FDA), and are where we develop and test medicines for some of the world’s biggest pharmaceutical companies. This work relates to the early-stage development of medicines. We sometimes assist in the development of formulas for medicines and controls, while sometimes we just check to ensure all procedures are carried out in accordance with GMP (Good Manufacturing Practice) standards and whether they meet the requirements of the European Medicines Agency or the U.S. FDA, depending on the market for which a particular medicine is intended. We sometimes create and develop specific procedures for pharmaceutical

and clinical institutions – development methods and service development advisory services. We attempt to identify a point through which our clients can generate earnings with our equipment and applications, solve a problem or release a highly rated scientific work. We have excellent cooperation with colleges and universities, pharmaceutical companies and clinics in Ljubljana, Zagreb, Belgrade and the wider EU area.

companies, which later results in us carrying out quality controls of the medicines that they have and partly dealing with market placements for those medicines.

■ Apart from your known presence in medicine and pharmacy, what other areas do you cover?

- Those areas include R&D, analysis of raw input materials, semi-finished products and pharmaceutical products, while the other areas are distribution, sales and complete equipment support. We are distinct from other distributors in this sense, because we also have laboratories and thus combine our distribution experience with knowhow from laboratories.

The same kind of equipment that we distribute is used at our Labena laboratories as development equipment for the life sciences and pharmaceuticals, and we are unique in the region in that we offer our clients – including medical institutes

■ Your company framework also includes a department for comprehensive technical support, servicing and consultation.

How important is that to your customers, users and partners?

- This is another way in which we differ from other distributors. After making a sale, other distributors, for example, only offer installation support and basic operational training, but they can’t do anything if an application problem arises, or if the client shows interest in setting up new applications. Well, in this sense we are unique, because our clients can rely on us completely, and that also explains our exponential growth.

There were 34 of us employed at Labena back in 2016, and we generated a turnover of 3.4 million euros. In 2021, there were 112 of us and we generated a turnover of 22 million euros. It was in 2016 that laboratories became an integral part of our operations, because I always wanted to offer clients something more than the equipment we distribute, and that more has come in the form of services and products. Our laboratories generate a good part of our turnover, but they also contribute significantly to sales, because our partners understand that we’re the only ones in the entire region that they can rely on fully.

That’s the reason we’re planning our further expansion, with the opening of offices in Albania and Banja Luka and a laboratory in Zagreb, but even that won’t be the end of our expansion.

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ACTIVITIES OF THE SLOVENIAN BUSINESS CLUB (SPK)

SPK, THE PLACE

FOR CONNECTIONS

Through intensive and rich activities, the Slovenian Business Club works on continuously improving cooperation between the economies of Serbia and Slovenia, as well as regional connections, with a focus on members and their needs. SPK successfully weathers challenges and continues to be a place for connecting, exchanging experience and information, educating and opening opportunities for future business cooperation, but also for finding solutions to specific problems that companies face. In addition to its many events, it continuously provides its members with the latest information from the business world and the opportunity to make direct contacts.

SEPTEMBER 2021 INTERNATIONAL NETWORKING COCKTAIL PARTY In cooperation with the German and French Chambers of Commerce, the Japanese Business Alliance in Serbia, the Hellenic Business Association, the Croatian Business Club, the Chamber of Italian-Serbian Businessmen, the Swiss-Serbian Chamber of Commerce, the Belgian-Serbian Business Association, the Dutch-Serbian Business Association and the CANSEE Canadian Serbian Business Association, SPK organised a highly successful International Networking Cocktail Party.

Over 300 representatives of companies that are members of 11 bilateral associations gathered with the aim of improving mutual cooperation. The large number of companies present was a clear indicator of the business interest of the members of all chambers in getting to know each other, cooperating, spreading their ideas and laying the foundations of further successful bilateral cooperation in Serbia.

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OCTOBER 2021 SPEED BUSINESS MEETING - AUTUMN EDITION - SPK, SAM, CANSEE In cooperation with the Serbian Association of Managers, SAM, and the CANSEE Canadian Serbian Business Association, SPK organised the eighth consecutive Speed Business Meeting - Autumn Edition at the Hyatt Regency Belgrade, which was also a partner in this event.

In order to network foreign and domestic businesspeople, the Speed Business Meeting brought together 59 companies from various business sectors, which had the opportunity to present their companies, services and products in eight-minute one-on-one meetings. This proved to be a great opportunity to connect and expand contact bases.

NOVEMBER 2021 DIGITAL WORKING BREAKFAST: BUSINESS ENVIRONMENT OF SLOVENIA HOW TO DO BUSINESS IN SLOVENIA? In cooperation with BNI Serbia, SPK organised a digital working breakfast with several lecturers in three sessions.

Mr Primož Križaj, Consul at the Embassy of the Republic of Slovenia in Serbia, gave an introductory speech in which he said that the Embassy is at the service of all those wanting to invest in Slovenia.

The first session, 'Business and Investment Environment of Slovenia', was led by Mr Zoran Stamatovski, Secretary of the Department for Promotion of Foreign Direct Investments of SPIRIT, a public agency of the Republic of Slovenia. He pointed out Slovenia's greatest advantages.

The second session, entitled 'Opening a company in Slovenia, obtaining permits to work in Slovenia and the EU for Serbian citizens and business taxes in Slovenia', was led by company DATA d.o.o. from Ljubljana.

The event was intended for all businesspeople who plan to expand their business and are interested in business and working conditions in Slovenia and the EU. The third session, 'Opening accounts and offering banking products NLB d.d. Ljubljana', was followed by questions and answers.

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DECEMBER 2021 NEW YEAR'S GATHERING Members and friends of the SPK gathered after a one-year break at the traditional New Year's meeting of the SPK to exchange good energy, toast each other and wish good health and new successes. At the same time, SPK celebrated its jubilee at the Hyatt Regency Hotel in Belgrade – eighteen years of business in Serbia – and marked another successful year of continuous and stable growth. The event was attended by a large number of members, friends of the club, representatives of the Embassy of the Republic of Slovenia in Serbia and representatives of other important economic institutions in Serbia.

FEBRUARY 2022 WORKING MEETING WITH THE SERBIAN MINISTRY OF MINING AND ENERGY A very successful working meeting was held between SPK members and the Ministry of Mining and Energy of the Republic of Serbia. Businesspeople had the honour of being addressed by Ambassador Damjan Bergant of the Republic of Slovenia, State Secretary of the Ministry of Mining and Energy, Jovanka Atanacković, and State Secretary Zoran Lakićević. With very specific questions from Serbian and Slovenian businessmen, club members had the opportunity to enjoy and participate in an interactive discussion.

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MARCH 2022 SPK ASSEMBLY

The SPK held a regular session of its assembly, an election session, at the Hyatt Regency Belgrade.

Janez Vončina, Ph.D., a lawyer at the law office of JPM, Janković Popović Mitić, was elected President of the Assembly. Danijela Fišakov, MA, was unanimously re-elected President of the SPK, with managing board members Dragan Marković, Ph.D., President of the Executive Board of Triglav Insurance, Miodrag Stojković, Director of Eti B Serbia, Ninko Tesić, General Manager of Impol Seval Sevojno, Vlastimir Vuković, MA, President of the Executive Board of NLB Komercijalna Banka, Zoran Lazukić, MA, Director of Profil Group Belgrade, and Zoran Popović of the Translation Agency Zoran Popović.

In her address, President Fišakov pointed out that, despite the past challenging year, the Slovenian Business Club has maintained stability and that the new Board of Directors will continue its work in the future, with a focus on the interests of SPK members.

MARCH 2022 WHAT ARE THE NEW AMENDMENTS TO COMPANY LAW? In cooperation with the member of the Law Office Stanković & Partners (NSTLAW), the SPK organised a working breakfast on the topic ’What amendments to the Law on Companies bring’.

What are the compensation policies and what do they entail? What are the new obligations of certain individuals (persons with certain duties within companies) in the case of a legal transaction or the undertaking of an activity that includes a personal interest? What are the new reasons for initiation of forced liquidation, and what is the role of the voting advisor/property manager and institutional investor - these were just some of the topics discussed.

APRIL 2022 PANEL DISCUSSION ‘CURRENT TOPICS IN THE FIELD OF INSURANCE ON THE SERBIAN MARKET’ In cooperation with the Croatian Business Club, SPK organised a working breakfast in the form of a panel discussion on the topic ‘Current topics in the field of insurance on the Serbian market’ on the premises of Hotel IN. Representatives of insurance companies Triglav, Sava and Milenijum Osiguranje, together with representatives of DistriRisk d.o.o. insurance brokerage, exchanged experiences and presented insurance programmes that have gained importance on the Serbian insurance market during the last two years of turbulent and uncertain business.

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CULTURE

150TH ANNIVERSARY OF THE BIRTH OF JOSIP PLEČNIK

Plečnik’s Contribution

TO BELGRADE

Little was known about Plečnik in Serbia until the 1920s. The credit for his arrival on the Belgrade cultural and arts scene belongs to artist Ivan Meštrović, who nominated him for membership in the Honorary Presidency of the Committee for the Organisation of Artistic Affairs, and Kosta Strajnić, who offered Plečnik the position of director of the future Higher School of Fine Arts

By Aleksandra Stamenković, Docent lecturer at the Faculty of Digital Arts, Belgrade Metropolitan University

J

osip (Jože) Plečnik (Ljubljana, 23rd January, 1872 – Ljubljana, 7th January, 1957) was a prominent architect, national servant and one of the most renowned figures on the (Yugo)Slavic cultural scene. An interesting educational journey was marked not only by Plečnik studying architecture at the Vienna Academy of Fine Arts and spending several years working at the studio of Otto Wagner, but also study trips to Italy and France, followed by professorships at the Academy of Arts, Architecture and Design in Prague and the Technical College in Ljubljana. As a consequence of this path, he developed a specific cultural identity, which simultaneously favoured both the urban ideals of the European elite and national patriotism. His artistic versatility brought him influential patrons from the very start of his first creative work, including – as mentioned in literature on the matter – members of the Karađorđević royal family and representatives of the government of the Socialist Yugoslavia.

Little was known about Plečnik in Serbia until the 1920s. The credit for his arrival on the Belgrade cultural and arts scene belongs to artist Ivan Meštrović, who nominated him for membership in the Honorary Presidency of the Committee for the Organisation of Artistic Affairs, and Kosta Strajnić, who offered Plečnik the position of director of

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the future Higher School of Fine Arts. He turned down Strajnić’s offer, but his friendship with Meštrović, alongside good professional cooperation with the Slovenian Franciscans, landed him the project of the Church of St. Anthony of Padua in Belgrade.

The first monumental Roman Catholic church to be built in Belgrade’s wider city centre area, it is included on the list of the most important sacral buildings in Jože Plečnik’s oeuvre. It took quite a while to build – from 1929, when the first design emerged, to 1932, when exterior works were finalised. The interior elements of the church were added gradually, yet to this day it isn’t fully completely. With the exceptions of some unavoidable deviations due to changes in liturgical practise, the project was built in accordance with the design plans that Plečnik devised during his lifetime.

A combination of very diverse cylindrical shapes, making up the rotunda nave where the congregation gathers, and an accompanying

Plečnik considered Belgrade to be an oriental milieu, and it was this thinking, coupled with the Christian Orthodox tradition, that led to the idea of a church with a central rotunda base and a belltower, as well as brick masonry cylindrical belltower and vestry, dominate the look of the church.

The central nave has three equal conch roofs. One covers the axis of the nave and functions as a chancel (presbytery), while the flanking conches cover functioning chapels.

All three are connected at a lower level on the exterior, with the area between the conches filled by two smaller semi-circular sections, each with two altars housing windows - one intended for storage and the other given the function of a vestry and providing direct access to the semicircular confessional. It is precisely in this concealing of the confessional that Plečnik's close familiarity with the canons of the Roman Catholic Church can be seen.

In order to connect the belltower with the body of the church, Plečnik employed a connecting element with a spiral staircase, which serves the function of a choir on the first floor.

Although not quite appropriate for hosting religious services, the church’s rotunda shape was not chosen by chance. Plečnik considered Belgrade to be an oriental milieu, and it was this thinking, coupled with the Christian Orthodox tradition, that led to the idea of a church with a central rotunda base and a bell tower, as well as brick masonry. According to the first design, a large dome was meant to rise directly above the central rotunda of the church, representing a theme seen at the BUSINESS PARTNER | SLOVENIA 2022

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In a desire to create architecture that conveys a message, Plečnik assigned great importance to the façade. The concentration of decorative elements in the structure’s entrance section reflect Plečnik’s inclination towards embellishment and the way he approached decorative elements Pantheon and in Byzantine temples, but also in Plečnik's own 1924 design for the church in Bogojina, Prekmurje, marking his first church project. This time around, however, Plečnik very quickly rejected a dome, opting instead for a flat loft roof, on which he placed a pseudo-light drum, in order to retain the motif of the composition. The application of a flat loft roof emphasises the theme of permeating rotunda forms, and in that sense the implemented solution has a clearer conceptual form than the initial project design.

The altering of the plans also included the relocating of the belltower from the left to the right side of the altar.

The exterior has accentuated strictness due to its extremely simplified forms, which Plečnik considered as best expressing Franciscan asceticism. The brickwork masonry is a theme connecting the church’s exterior and interior. The use of a rotunda as the primary geometric shape provides the impression of massive monumentality. Concrete frieze decorations divide the rotunda into coronets.

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was influenced by the use of horizontal concrete wraths. The first and second zones are defined by the enveloping circular mantle of the central nave, with conch recesses in the middle of the wall and the shrine. They are not clearly divided by any distinct elements, other than the space above the entrance allocated for the choir. The third zone extends above the flat roof of the conch and shrine, encompassing a crossbeam on stepped consoles, above which stands a cross with the crucified Christ and a gallery with railings over the choir and conch. The fourth zone extends above the galleries and encompasses a circular passage (ambulatory), covered with brick pilasters without chapiter elements on the inside and rectangular windows on the outside. The motif of rectangular windows placed at equal distances and connected in a row can be seen in other churches designed by Plečnik. The fifth and final zone is connected by an architrave, like a fifth wreath linking the upper pilasters with the flat wooden ceiling.

The shaping of the walls is controlled strictly, so here the kind of striving for the heights

that’s commonplace in Roman Catholic houses of worship is interrupted abruptly through the application of a flat ceiling. Plečnik’s expressive nature as an architect came to the fore with the arranging of this condensed rotunda with the figures of angels and highlighting its window frames with plaster work.

The main portal is accessed via the covered square porch, which has a gabled roof supported by pillars with high, trumpet-shaped chapiters on the entrance side and pilasters on the flanks. The form of a colonnade of pillars with trumpet-shaped chapiters is repeated in the vestibule of the church. The entrance lobby also culminates in a gabled roof, with natural light reaching it via the large oculus on the façade. The church entrance is further accentuated with the addition of lower, singlenave chapels with apses along the side walls.

In a desire to create architecture that conveys a message, Plečnik assigned great importance to the façade. The concentration of decorative elements in the structure’s entrance section reflect Plečnik’s inclination towards embellishment and the way he approached decorative elements.

Plečnik also created designs for the interior of the church. The nave height of 25 metres provided the possibility to additionally break down the organisation of the contents, through the form of galleries, steps, a pulpit or choir.

The division of the interior space is a result of Plečnik's notion of concealing the conch system in the covering of the nave, thereby achieving the effect of buttresses that provide strength and stability to the structure. The architect had previously used this same concept, but he advanced it significantly for this Belgrade church.

Plečnik again used a circular base for the belltower, which is also topped by a flat loft roof, with a central sculptural composition of a cross. The belltower was considered a risky endeavour, which is why it was only finally built in 1962, during the second phase of works on the church that came after the architect's death, and was built thanks to his student and assistant Janez Valentinčič.

Plečnik wanted his design for the church of Saint Anthony to symbolise the monastic order and thus emphasise the overall diversity of Catholicism. With its geometric forms, this church appears monumental and extremely modern. It directs the observer towards considerations of the ideological role of the Christian temple and the function gained by each element of the building in that context.

One recognises an adherence to expressionist tendencies in the conception of primary forms, though the need to return to the classical style pushes expressionist elements into the background. Builders of Serbian sacral architecture were also influenced by this Plečnik work, with its artistic forms.

At the request of Andrej Tumpej, priest of the Belgrade parish of St. Cyril and Methodius, and without having previously acquainted himself with the milieu, Plečnik created a design project for the Roman Catholic Church of the Sacred Heart of Jesus in Obrenovac in 1934.

That church was never built, but why not remains unclear to this day.

Based on the preserved design, it was to be a church of small dimensions, with an apse, vestry, clergy room and separate belltower structure. It is reminiscent of Plečnik’s other works from the 1930s in terms of the morphology and modern stylisation of traditional forms.

One significant recorded appearance of Plečnik’s name in contests for public buildings in Belgrade was the design contest for the building of the Ministry of Defence and the General Staff of the Yugoslav Army (DSNO), which was announced in 1953.

Giving great consideration to the site that the future building would occupy, Plečnik stepped forward with a design solution for the building and an urban landscaping proposal for the site. His contest solution, aligned with the DSNO’s essential functionality, proposed two buildings connected into a unified whole and accessed via a representative square, thereby deviating from usual streetside extensions.

With the applying of pronounced vertical forms, Plečnik ensured the building would have the required representativeness. He didn’t avoid asymmetry and decorativeness, but rather considered them as giving objects expressiveness, which is why they were two motifs that were always present in his designs. The first building of the DSNO complex would receive its expressiveness from towers with rich plaster decoration, which were to be placed on either side of Nemanjina Street. In seeking to emphasise asymmetry, he envisaged only one tower for the second building, in the middle of the façade overlooking Nemanjina Street.

Although Plečnik was marked as a “participant beyond competition”, first place in the contest was won by the project of Nikola Dobrović, whose design was implemented in the constructing of the DSNO building.

In 1956, Plečnik came up with a design for the interior of a chapel and wooden altar for the nuns of the order of the Daughters of Charity of Saint Vincent de Paul. The chapel is located in the Caritas of the Archdiocese of Belgrade in Višegradska Street.

Although Plečnik was marked as a “participant beyond competition”, first place in the contest was won by the project of Nikola Dobrović, whose design was implemented in the constructing of the DSNO building Originally the property of doctor Ljubomir Zdravković, this nuns’ order bought it in 1954 and rearranged it to suit their own needs.

Alongside the aforementioned works, Plečnik signed a draft design in 1950 for the altar stone of the Belgrade Roman Catholic Church of St. Peter the Apostle, located in Makedonska Street – though it was ultimately only installed in 1960, after the architect’s death – as well as a design concept solution for the confessional of the parish church of Christ the King.

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TOURISM

NATURE’S MIRRORS Slovenia has an exceptional abundance of waters. Everywhere you go, you will find water. The landscape is dotted with numerous lakes, both natural and man-made. They offer popular sanctuaries for both those looking to relax and have some “me time”, and those looking for active holidays by and on the water. What appeals most to you, the tranquility of the water’s surface or the idea of lively water activities? Choose your own way of experiencing the most picturesque lakes in Slovenia

LAKE BLED The famous island in the lake. Fairy-tale beauty, surrounded by green hills. Take the traditional pletna boat to the island in the lake, where a magnificent Gothic church is located. Make sure that you ring its bell if you want your hidden wishes to come true. Take a walk along the lake and marvel at the nearby mountains and the lake itself, and at the end of your walk treat yourself to the original Bled Cream Cake.

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LAKE BOHINJ Lake Bohinj is the ideal choice for lovers of nature, as you can experience the many joys of hiking in the Alps and still find refreshment in the largest natural lake in Slovenia. From here, a wonderful trail takes you to the enchanting Savica Waterfall and to the nearby hills, where you can take in the beauties and delights of the Alps.

LAKE CERKNICA The lake that disappears and reappears. This special natural wonder is located in the middle of a large karst field. Lake Cerknica is one of the largest intermittent lakes in Europe.

Enjoy some rowing, fishing, biking, walking, and watching more than 270 different species of birds. The changing shape and size of the lake provides you with a different, unique experience every time.

TRIGLAV LAKES Triglav Lakes, also known as the Valley of the Seven Lakes, is a wonderful hiking destination in the mountains.

The valley has seven permanent and a few intermittent lakes, so the view of the lakes slightly changes every time. You will be impressed by their natural colourfulness, also evident from their names – the Green, Brown, and Black Lake.

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WILD LAKE One of the pearls of Slovenian natural heritage can be found near the town of Idrija. The mysterious karst Wild Lake is a true natural monument and the first Slovenian museum in nature. The usually calm, emerald green surface of the lake changes into a true wild water treasure when it rains.

LAKE ZELENCI Walk along a special wooden footpath to the lake and its marshy surroundings. You are in for an unforgettable green experience. In this natural reserve, many interesting plant species can be found, including the carnivorous sundew, and the animals mostly include amphibians and nesting birds.

THE LOVRENC LAKES One of the most eye-catching creations of nature in the Pohorje area is the Lovrenc lakes, which are like windows in the broad peat bog. While walking along the gentle meadows and the mossy wetlands you can marvel at the peat bog pools and beds of rare plants, and enjoy the amazing views. The best views are to be had from the wooden tower that stands next to the highest-sitting pool.

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KRN LAKE In the heart of the Krn highlands, where the battles of the Soča Front once raged, lies the peaceful Krn Lake. It is Slovenia’s largest high mountain lake, which reflects the mighty nearby peaks with two-thousand metre Krn at the fore.

Although you can still find the vestiges of war here, the lake offers a true escape from the everyday hustle and bustle.

PLANŠAR LAKE Planšar Lake in Jezersko could also be called the lake of love, as it is shaped like a heart. It endures as a reminder of the former glacial lake, from which Jezersko (which translates roughly as “the lake place”) takes its name.

Let yourself dream by the lakeside, surrounded by the majestic peaks of the Kamnik-Savinja Alps.

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Source: Slovenian Tourist Board

PIVKA INTERMITTENT LAKES Discover the playfulness of nature on the Karst surface and visit the Pivka intermittent lakes. Along a length of 15 kilometres as the crow flies lie 17 different-sized lakes that form a unique feature in Europe. The largest is Lake Palčje. The lakes are also characterised by their exceptional biodiversity. The area of the lakes is protected as a nature park. You will gain the greatest insights into the origin of the lakes and the life around them at the Ecomuseum in Pivka

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GLAMPING

EXPERIENTIAL TRAVEL Some call it luxury camping. Some call it glamorous camping. Either way, Glamping inspires and guides those seeking a different kind of trip, the kind that encourages cultural immersion, a broadening of horizons and a deeper engagement with one’s surroundings, while enjoying this upscale approach to sleeping under the stars

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lamping is where stunning nature meets modern luxury. Experiential travel is an authentic way to connect with nature. Together, the experience is about stepping off the beaten track, walking away from superficial tourist activities and embracing an immersive cultural environment. By pushing themselves out of their comfort zones, experiential travellers experience a shift in perspective that improves the way they connect with the world. This transformational style of travel will enrich a person’s life and, ultimately, leave an impression that lasts much longer than the journey itself.

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CONNECT TO THE MOON AND STARS The story of Nebesa begins a hundred years ago, when the slopes of Matajur and Kuk were mowed and grased in summer and skied over in winter. After that, a ski lodge was erected in Ručnovka above Livek. A popular ski slope went under at the end of 1990s, due to green winters.

Nebesa is the name for four chalets captured on a panoramic deck between the sky and earth. A privilege set almost a thousand metres above sea level and overlooking the peaks of the Julian Alps, the Triglav National Park and the emerald Soča river in the valley belo.

LUXURY VINEYARD GLAMPING For lovers of nature, luxury and wine. Glamping resort Chateau Ramšak invites you to a hidden gem in one of the most beautiful and untainted parts of Slovenia. Nestled within over fifteen hectares of rolling green hillsides to the exquisite vineyards, in the heart of the scenic wine region of Styria, is a true paradise for lovers of nature, luxury and wine itself. Only a moment away from the bustling city of Maribor is one of the most unspoilt destinations in Slovenia. The Ramšak estate, with its fairytale country castle, is over two centuries old, steeped in ancient history and drenched in natural beauty.

LUXURIOUS FAIRY-TALE COTTAGES WITH AMAZING VIEWS In the midst of this pristine nature sit cottages built in the traditional manner, each with magnificent views of romantic sunrises and sunsets, looking north into the Alps and south to the valley below.

By night the sky casts a blanket of stars over you, and early mornings are the freshest and most revitalising, long before the day-trippers arrive. The architecture of Velika Planina cottages is unique and distinctive, recalling something out of Middle Earth. During the winter, snow covers the plateau and makes it special, when the spring comes saffron covers the area with a violet carpet. Summer is the time for cows and traditional herdsmen who live in unique cottages. And then there are the fairy-tale cottages.

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THE MAGNIFICENT GLAMOUR OF NATURE A glamping resort with luxury safari tents set in the small picturesque town of Podčetrtek, awarded as a Slovenia Green Destination. An architecturally and perfectly designed resort, which impresses its guests with a high level of prestige, the magical atmosphere is complemented by an external ambient full of paths, streams and a central fireplace. A great location for adventoures and active family holidays with an amazing family water park and one of Europe’s best wellness & spa centres, Wellness Orhidelia.

GLAMPING LAKE BLOKE IN HARMONY WITH NATURE CALMS THE MIND AND SPIRIT Located in the immediate vicinity of Lake Bloke, which invites you to swim and spend free time in the shade of spruce and wood bears in the summer months, company Hija d.o.o. built this park from local wood, which gives a touch of homeliness. Glamping is unique because all the buildings, fences and sculptures are one of a kind.

Glamping Lake Bloke is located on the eastern edge of Notranjska - on the Bloke plateau. It is a remote land of unspoilt nature and Krpan's people. A land of vast forests, rich flora and fauna, winding Bloščica and a colourful landscape. A land of cold and warm people, which also gave the world Bloke skis. Bloke is a bowl-shaped plateau at an altitude of 720 - 800 m.

Glamping is located in the immediate vicinity of Lake Bloke, which invites you to swim in the summer months. It also offers the possibility of fishing.

GREEN GLAMPING ADVENTURE In the embrace of the river Drava, forests and colours of Carinthia offer everything that ones needs in the modern world to feel connected with the primal nature, and thus calm the pace of life. In the immediate vicinity of the natural bath, wooden houses are situated, inviting all who stop there only for a short time, as well as families and couples seeking accommodation for longer.

The green experience at the base of Pohorje! Swim in the green oasis between the water lilies in the natural lake, refresh yourself by jumping from the pier and catch the sun on the green beach! Radlje Water Park - fun, relaxation and new energy for your body and soul.

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Source: Glamping.si

"UNFORGETTABLE EXPERIENCE IN THE TREETOPS" When you decide to sleep in nature, you accept the challenge of “survival in the wild.” A treehouse cannot offer such an experince, because it protects you from the wind and cold and takes away a view of the stars. A treebed, on the other hand, offers exactly that: an experience of sleeping in nature, covered only with a blanket and protected by a mosquito net. You are high above ground, so wild animals can't reach you, but you still have the privilege of observing the stars before closing your eyes and feeling the wind on your cheeck just before you cover yourself with a blanket. After you pull up a ladder or rope, it is just you and the person next to you in a perfectly romantic natural envirnoment. Morning sun will shine directly onto your bed and wake you with its warmth, if the birds don’t wake you even before that with their singing.

FOREST GLADE COTTAGE Treat yourself in the quiet village of Prihova at the heart of Savinja valley. This village cottage is built exclusively of wood, with a lot of love. The cottage is fully equipped for the stay and indoor or outdoor activities.The Upper Savinja valley is a very attractive tourist area offering numerous day-trip destinations. You can hike to the beautiful valley of Logar (Logarska dolina), drive through the scenic route over the Logar Valley, head to Mozirski Gaj or visit any of the many local farms, where you will be served excellent local food.

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SERBIA’S EU ACCESSION EFFORTS SHOULD BE BETTER ACKNOWLEDGED H.E. CARLO LO CASCIO, AMBASSADOR OF ITALY TO SERBIA

CONTENTS

ITALY 2022

04

11

THE RIGHT MIX FOR SUCCESS ANNINO DE VENEZIA, GENERAL MANAGER, AUNDE SRB D.O.O

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WE NEVER STOPPED BRINGING ITALIAN ARTISTS TO SERBIA ROBERTO CINCOTTA, DIRECTOR OF THE ITALIAN CULTURAL INSTITUTE OF BELGRADE

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15 YEARS IN SERBIA: RESPONSIBLE GROWTH ANTONIO ZANETTI, CEO AND FOUNDER OF THE KMZ GROUP

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COMMITTED TO SHARED PRINCIPLES AND VALUES ITALIAN PRESIDENCY OF THE COMMITTEE OF MINISTERS OF THE COUNCIL OF EUROPE

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GREAT ENTHUSIASM AMONG MANAGERS AND BUSINESS OWNERS ANNINO DE VENEZIA, PRESIDENT OF THE ITALIANSERBIAN CHAMBER OF COMMERCE

A MATTER OF REGIONAL PRIDE ITALIAN CUISINE

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08

RESILIENCE KEPT US ON TRACK ANTONIO VENTRESCA, DIRECTOR, ITALIAN TRADE AGENCY

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14

GLOBAL DEMAND FOR SHORT CONTENT IS GROWING ANDREA IERVOLINO, CEO AND CO-FOUNDER OF IERVOLINO & LADY BACARDI ENTERTAINMENT AND IERVOLINO STUDIOS; LADY MONIKA BACARDI, CO-FOUNDER OF IERVOLINO & LADY BACARDI ENTERTAINMENT AND IERVOLINO STUDIOS

RURAL IDYLL TOURISM

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CARE FOR THE PEOPLE WILL BE THE SOLUTION MAURIZIO PANIZZO, DIRECTOR OF PANIZZO CONSULTING

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EXCELLENT CULTURAL CONNECTIONS CULTURAL COOPERATION

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“INTERVIEW WITH PASOLINI” BY DAVIDE TOFFOLO EXHIBITION

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SERBIA IS A GOOD MARKET VLATKO SEKULOVIĆ, LAW OFFICE SEKULOVIĆ

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A TRUE “ONE-STOPSHOP” LJILJANA AHMETOVIĆ, SHOPPSTER CEO

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THRIVING ECONOMIC EXCHANGE ECONOMIC COOPERATION

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COOPERATION FOCUSED ON APPLIED TECHNOLOGY AND INNOVATION SCIENTIFIC COOPERATION

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A REAL JEWEL TO EXPLORE ACCADEMIA GALLERY IN FLORENCE

IMPRESSUM EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen mrpeditorial@mail.com

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PROJECT MANAGERS Biljana Dević b.devic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs FINANCE Dragana Skrobonja finance@aim.rs

EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica ITALY 2022 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com

www.aim.rs; www.cordmagazine.com No 39 ISSN: 2560-4465 All rights reserved alliance international media 2022 The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

THIS PUBLICATION IS FREE OF CHARGE

ITALY 2022

COMMENT

“The enlargement process in the Western Balkans is a strategic priority of the European agenda and we will continue to do everything in our power, even in Brussels, to ensure the accession of all countries in the region remains a tangible goal”.

Luigi Di Maio, Italian Minister of Foreign Affairs and International Cooperation, during his visit to Serbia Belgrade, 21st June 2021

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ITALY 2022

INTERVIEW

H.E. CARLO LO CASCIO, AMBASSADOR OF ITALY TO SERBIA

SERBIA’S EU ACCESSION EFFORTS SHOULD BE

BETTER ACKNOWLEDGED

Italy supports Serbia in fulfilling its EU accession requirements, acknowledging Belgrade’s efforts to implement crucial reforms and looking forward to the new National Assembly and the new Government proceeding steadily along the same track flows have been rising to pre-Covid levels and reached a new record level in 2021, with total trade worth 4.1 billion euros (+24%). And our bilateral trade has retained its positive pace in this first quarter of 2022 (up 19% compared to the first quarter 2021).”

Our interlocutor also notes that the nearshoring opportunities offered by the Serbian market were also discussed during the successful recent visit of Confindustria and Confindustria Est Europa to Belgrade on 9th and 10th May.

F

irst the pandemic and then the sudden geopolitical challenges brought about by Russia’s aggression against Ukraine have been hitting logistics, supply chains and the energy and commodities markets.

It is therefore no surprise that this topic dominated the first part of our interview with Italian Ambassador to Serbia H.E. Carlo Lo Cascio.

“Following the general trend towards nearshoring, several Italian companies (both multinationals and SMEs) are considering relocating their operations

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from the Far East to Serbia,” says Ambassador Lo Cascio at the start of this interview. “Belgrade has thus attracted direct investment flows, which have been increasing constantly, even during the pandemic, and reached a record amount of 3.9 billion euros in 2021. Allow me to recall just the recent deal signed between the Government of Serbia and the Stellantis group. This latter will start manufacturing a new FIAT electric car at its historical plant in Kragujevac from 2024 onwards.

Besides, if we look at bilateral trade,

When we think of Italy, we usually think about luxury brands and exquisite food. However, you are also among the most advanced countries when it comes to the application of cutting-edge technologies in industry. To what extent is Italy today a knowledge-based economy?

Italy is indeed more than food & fashion and our new national branding campaign, “Italy is simply extraordinary – be IT”, explains that very well.

Our Country is leading the Fourth Industrial Revolution in the same way Serbia is doing in the Balkan region, which is by investing in education and infrastructure. With approximately 5,400 high-tech manufacturing companies, according to Eurostat, Italy is one of Europe’s top four countries in this field. When all sectors are taken into consideration, Italy remains one of the foremost countries in Europe, with

COMMITMENT

LEADERSHIP

The current conflict in Ukraine requires further efforts on the Serbian side, particularly in terms of alignment with the CFSP, in order to continue advancing along the path to the EU

Italy is leading the Fourth Industrial Revolution in the same manner that Serbia is doing in the Balkan region, which is by investing in education and infrastructure

more than 105,000 high-tech companies.

Italy also outdoes the European average in terms of production and the use of industrial robots, and in the adoption of Industry 4.0 technologies like the Cloud or the Internet of Things. The private sector is also doing its part because, according to the European Commission, the average annual research and development expenditure of Italy’s top companies for R&D spending is at a level of 185.4 million euros, which exceeds the EU average. Just to mention one of the results achieved by our country: Italy ranks 7th in industrial robotics worldwide and 2nd in Europe, just behind Germany. Innovation is also one of the key themes of Rome’s candidacy to host World Expo 2030.

systems to address future scientific, technological and societal challenges.

Italy and Serbia have had very dynamic cooperation in “science diplomacy” for a while, which serves to connect industrial application and value-added manufacturing to science and research. What are the most important outcomes of this cooperation?

This is very true, and the most significant outcome of this dynamic cooperation – on top of the numerous success stories – is its solidity and the richness and breadth of initiatives, from humanities to particle physics, as well as the special value of this cooperation for both countries. Over recent years, Serbia has developed strong competencies in many areas: applied IT, agri-food technology and bioengineering, to mention just a few. This has resulted in increased reciprocity in R&I collaboration that also fosters interest in investing in Serbia among innovative Italian firms.

We are monitoring this process closely and are committed to creating conditions for even stronger cooperation in R&I. Tangible opportunities for more structured collaboration will be offered by the ambitious research policies and programmes that Italy and Serbia are developing to mobilise their research

The Serbian national innovation system is young and suffers a lot from the lack of cooperation between universities and particularly SMEs and start-ups. What could we learn from the Italian experience in this respect?

Public-private research collabora-

There are, and will be, old and new tough challenges to overcome. We still need to enhance efforts for a common recommitment to the values of the European Convention on Human Rights tion between Italian universities and domestic industry is indeed increasing. We have also suffered due to the separation of these two worlds, but university–industry interactions have grown rapidly in Italy over past years.

The presence of different sources of innovation increases the likelihood of collaboration; proximity is more important for SMEs, while larger enterprises

INVESTMENTS

We have been investing in the IT sector in Serbia and are keen to deepen our bilateral cooperation in this field

collaborate with universities better and are able to sell the results of their research. This is truly the reason behind the success story of industrial districts in Italy, where the craftsmanship inherited from the past is combined with innovations coming from universities and research laboratories, leading to continuous improvements and generating a constant flow of new patents, machines, materials and designs. This is a positive example that we would like to disseminate and replicate in Serbia, and also the reason we’re investing a lot to strengthen the “dual system” between the Serbian education system and Italian companies.

The Italian Presidency of the Committee of Ministers of the Council of Europe, which concluded in May 2022, aimed to remind us of basic values related to democracy and human rights, through the lenses of social rights, culture and the ethical use of artificial intelligence. What were the main messages conveyed by the Presidency?

We identified these as our priority areas from the very first moment of our Chairmanship. The international environment was very different, but Italy still considered those selected to be the primary concerns of the modern world. Tragic events have occurred recently, with the brutal and unjustified Russian aggression against Ukraine and the consequent worst humanitarian catastrophe in Europe since World War II. This sadly showed how the identified priority areas were not only a set of standards permanently reached by the Member States of the Council of Europe, but principles that we must continue to reaffirm and apply. I believe that the key message of the Italian Chairmanship is acknowledging that basic values, such as democracy, human rights and fundamental freedoms, are not secured forever.

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ITALY 2022

INTERVIEW

in communication strategies, as well as in access to cultural events. This process of reshaping all programmes and initiatives affected both content providers and users alike. There is no doubt that the return of in-person events provided an opportunity to bring to Belgrade some unique new cultural initiatives, such as the recent concerts of brilliant Italian singer Alice and Oscarwinning composer Nicola Piovani. The public was craving participation in live events and that was proven by the huge attendance that we had. Nevertheless, we did learn that broadcasting events online could provide access to a broader audience that would like to experience Italian culture, albeit at a distance. We will continue to share a high number of initiatives online and reach out to those who might not be able to physically attend events organised by the Italian Cultural Institute of Belgrade.

As you’ve stated recently, there is a need for the serious and credible revitalisation of the EU enlargement process. What does that mean in practical terms?

When the European Council met in Thessaloniki in 2003 and clearly set out the EU perspective of the Western Balkans, membership seemed like a goal that would be achievable in the near future. Today, almost 20 years on, many things have changed and, unfortunately, that same goal looks to be even further away. We are running the risk of a disaffection with EU prospects among the citizens of this region. Regardless of the lengthy procedures entailed by the Enlargement process, EU member states should still demonstrate how much they support and advocate for Serbia’s accession path. For its part, Italy supports Serbia in fulfilling the accession requirements, acknowledging Belgrade’s efforts to implement crucial reforms and looking forward to the new National Assembly and the new Government proceeding steadily along 6

Regardless of the lengthy procedures entailed by the Enlargement process, EU member states should still demonstrate how much they support and advocate for Serbia’s accession path the same track. The current conflict in Ukraine requires further efforts on the Serbian side, particularly in terms of alignment with the Common Foreign & Security Policy, in order to continue advancing along the path to the EU. During the times of the Covid-19 pandemic, we were often restricted to only virtual communication. Now, with the pandemic abating, people are increasingly interested in reuniting and delving into cultural issues. How is this reflected in the work of the Italian Cultural Institute of Belgrade?

The outbreak of the pandemic required a swift shift to new methodologies

We are at the beginning of a tourism season that could more resemble those that preceded Covid-19.

To what extent have business visits and tourist trips between our two countries rebounded?

Italy has already experienced the strong revival of tourism over recent months, with more and more people spending their holidays in our country than was the case before the pandemic.

We had nearly 10 million visitors in March 2022 alone, equating to 70% of the pre-Covid levels, and this is just at the beginning of the new summer season. Not only are Italy’s major cities benefiting from this trend (such as Venice, with the ongoing Biennale international event, or Turin, which hosted the recent Eurovision Song Contest), but niche tourist destinations are also being impacted positively (smaller islands, environmentally sustainable and rural tourism, Southern Italy). Italy remains one of the world’s most popular destinations and tourism represents nearly 10% of the country’s economy.

We are sure that the decision of Air Serbia, which is a very reliable partner for us, to increase connections with our country and the recent lifting of travel restrictions in Italy will spur more tourist flows between our two countries.

ITALY 2022

FEATURE

7

ITALY 2022

INTERVIEW

ANTONIO VENTRESCA, DIRECTOR, ITALIAN TRADE AGENCY

RESILIENCE

KEPT US ON TRACK We’re here to help Italian and Serbian companies work together and to continue reiterating the business values that they’ve been creating over past decades. Resilience and persistence have helped both of our economies to stay on track and have reinforced our relationship EuroFlora, Oro Arezzo, to name just a few. We are very happy to see that the economic and business environment has returned to what it was prior to the pandemic. We currently have over a dozen Serbian business representatives residing in Italy, while in the coming months we plan to further strengthen this important channel of communication. One of our most important business events – the Novi Sad Agriculture Fair – will host 24 Italian companies that will represent our excellence in the agriculture sector.

T

he pandemic was felt deeply worldwide and our two countries experienced nothing different - says Antonio Ventresca, Director of the Italian Trade Agency (ITA). Following a period of understandable stagnation in 2020, last year showed that economic collaboration between Italy and Serbia is as strong as ever. Italian exports to Serbia in 2021 grew by 20% compared to 2020 and quickly reached pre-pandemic levels, at a value of 2.3 billion euros. The same can be observed when we analyse Serbian exports to Italy, where the annual growth rate stands at almost 30% and looks to be reaching 1.8 billion by the end of this year, explains our interlocutor. “Re-

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silience and persistence have always characterised the entrepreneurs of both countries and the crisis seemed to have reinforced the most stable economic relationships.”

When could we expect a return to the pre-pandemic period in terms of business travel and the organising of full-scale fairs and other events that help to fuel economic exchange?

I believe this time has already come.

Our Agency organised business trips for a number of fairs, trade shows and business meetings in the first quarter of 2022: the Verona Agriculture Fair, BEER&FOOD ATTRACTION, Vinitaly, MacFrut, IPACK IMA, MIDO,

How has the world of trade and investments changed during the two years of the pandemic and how has that impacted on the overall goals of your organisation?

Something has obviously changed, but it wasn’t necessarily negative. The last two years allowed us to gain new experiences, as we used different online and offline tools to enable and maintain business communications. While travelling was banned or hampered, the majority of our partners, in both Italy and Serbia, adapted quickly to online events and companies have been very responsive to this “new normal”.

Our Agency is already deeply oriented towards online services, and we haven’t skipped a beat. I believe that good oldfashioned face-to-face meetings and a physical presence at significant business events will still remain unparalleled in terms of experience. However, I must say that Serbian companies are showing a great deal of flexibility and willingness to embrace the new trends,

MOMENTUM

Italy has a lot to offer in the renewable energy and environmental protection sectors and I believe that now, more than ever, is the right moment to take further steps in that direction

something that hasn’t been the case in all European countries.

From that perspective, what are the ITA’s main goals in Serbia today?

Our goals remain the same: we are here to help Italian and Serbian companies work together and to continue reiterating the business values that they’ve been creating over past decades.

We are focused particularly on certain sectors that we believe can further broaden and reinforce our economic cooperation – namely, the agri-food sector, construction and infrastructure, the environment and apparel. The ITA takes pride in all the initiatives we organise or participate in as partners, such as the aforementioned Novi Sad Agriculture Fair or the recent Italian Design Day in Belgrade. However, most of the Agency’s activities aren’t perceived on the surface: there are activities that have a strong public projection, but then there are the very specialised activities that aren’t seen from the outside – like constant dialogue with Italian (and Serbian) entrepreneurs, flows of information regarding specialised sectors, laws and procedures, quick or deep market analyses and so on.

Where do you see opportunities to further expand our cooperation?

When it comes to opportunities for further cooperation between Italy and Serbia, I can say that they are as diverse as the current trade data suggests.

We obviously remain strongly focused on the food and agriculture sector, particularly wine, but also other typical Italian products that have been in quite high demand in recent years, like olive oil, mozzarella and others. The entire building, interior design and architecture sector, as well as associated sub-sectors, offers plenty of room for cooperation and we plan to promote it wholeheartedly. The clothing and shoes

OPPORTUNITY

COLLABORATION

The future will bring us more collaboration between Italian and Serbian companies in the digital sphere and it is our task to facilitate the “business” side of the dialogue

We are very happy to see that the economic and business environment has returned to what it was prior to the pandemic

sector is another area that presents opportunities, as well as relatively newer topics like nutraceuticals and the like.

We have been active in promoting collaboration in the renewable energy and environmental protection sectors and I believe that now, more than ever, is the right moment to consider current

When we speak about the Serbian ICT sector, we aren’t speaking about potential: the companies are already present, the workforce is skilled and educated and the myriad topics being encompassed by the companies are indeed very modern: from AI and machine learning development and implementation to

One of our most important business events – the Novi Sad Agriculture Fair – will host 24 Italian companies that will represent our excellence in the agricultural sector circumstances in Serbia and around the World and take further steps in that direction.

The ongoing shift to digitalisation has piqued the interest of Italian companies in further investing in Serbia’s ICT Sector.

Which other sectors are drawing your attention?

novel blockchain solutions, alongside more traditional sectors like banking, eGovernment, web development and so on. The future will bring us more collaboration between Italian and Serbian companies in the digital sphere and it is our task to facilitate the “business” side of the dialogue and provide a solid and healthy framework for both parties, in order to enable them to present their products to an international audience.

We are also striving to find technological ways to speed up customs procedures and waiting times. ICE Belgrade is also considering the creation of a platform aimed at facilitating dialogue and cooperation among innovative startups from the two countries. We are eager to wager on the expansion of the Serbian IT sector.

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ITALY 2022

INTERVIEW

ANNINO DE VENEZIA, PRESIDENT OF THE ITALIAN-SERBIAN CHAMBER OF COMMERCE

GREAT ENTHUSIASM AMONG MANAGERS AND BUSINESS OWNERS Despite the setbacks prompted by the pandemic, there is great energy among Italian and Serbian companies to make it up for the times when they were less active and to launch new business endeavours

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talian-Serbian Chamber of Commerce President Annino De Venezia is certainly very busy these days. There are new Italian companies looking to enter the Serbian market, but also Serbian companies wanting to present themselves to the Italian market. On top of that, De Venezia - as the association’s new president - wants to meet its members and let them know what the CCIS can do for them.

What are the Chamber’s most important initiatives that you, as the new president, intend to pursue for the benefit of members and the Italian-Serbian business community as a whole?

My personal task is to provide all possible support to both Serbian and Italian Companies interested in sharing business in either Serbia or Italy. We never forget that Serbia is a strategic location for Italian business. How can I do this? Firstly, by understanding their needs. I wish to visit all our associates to catch up on their needs and expectations. My intention is also to acquaint them with our most relevant activities aimed at our associates. I think that our members are not always fully aware of the ways we can support them. There needs to be constant dialogue between the Chamber and its members, so that the Chamber can implement targeted

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initiatives to support to the operations of its associates.

What do you see as the advantages of carrying out activities in Serbia and Italy in the business context following the pandemic?

After the Covid-19 Pandemic, I saw great enthusiasm among managers and business owners. I understood that the end of the pandemic was a sort of “time of a new renaissance”. Everyone is exerting efforts to rebuild business and open some new markets. That’s confirmed by the fact that, over recent months, the Chamber has received a large number of requests from Italian companies looking

to enter the Serbian market, but also Serbian companies intending to place their products on the Italian market.

The company I head was under pressure, since the automotive sector contracted dramatically, but we succeeded in reorganising our production processes and restarting without big drama.

How much is the Italian business style accepted today among Serbian companies? Which skills do Serbian businesses have to adopt in order to work better with their Italian counterparts?

Italians are hard workers. That is one of the reasons we are leaders in certain

market segments, like the automotive, machinery, chemistry, electronics and fashion sectors, for example.

The right mix of positive Italian and Serbian energies and experiences can work wonders in the business world Serbia has a very good and strong capacity to offer investors major opportunities.

Its workers are good and professional. The right mix of positive Italian and Serbian energies and experiences can create the right fertile soil for doing business.

THE RIGHT MIX FOR SUCCESS AUNDE SRB d.o.o. is part of the worldwide AUNDE Italia Group, which is itself part of the AUNDE Group. The company’s manufacturing plant in the Central Serbian city of Jagodina employs approximately 750 workers

BUSINESS

ANNINO DE VENEZIA, GENERAL MANAGER, AUNDE SRB D.O.O

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erbia remains a country in a very important geostrategic area, which enables important investments. And we, as Italians, firstly came to Serbia to invest and then developed the trust to continue doing business.

AUNDE SRB, as a part of the worldwide AUNDE Italia Group, has received some important awards in Serbia thanks to its very high turnover level. Its turnover leapt over the course of seven years from six million euros to 29 million. This progress is impressive thanks to some important factors, among which the company’s management would highlight: * Lean manufacturing: representing the right approach to any industrial activity; * Workers loving their job: the environment, the atmosphere, cooperation between workers etc., serve to create the right mix for success. * We are definitively like a small village where everyone knows each other.

The current production area covers around 10,000m2, but that will have increased to around 15,000m 2 after July 2022. That’s because AUNDE has

Workers love their job: the environment, atmosphere and cooperation between workers create the right mix for success gained another two important projects: IKEA and the Junior Jeep of Stellantis Automotive Group.

According to company bosses, there are some things that should be fixed in Serbia, because not everything is simple and perfect, but they trust that the country has great potential to achieve good results in just a few years and have personally witnessed positive changes in terms of infrastructure. This means that Serbia is heading in the right direction and be-

ing monitored carefully by all investors.

About 200 children with mothers working at AUNDE SRB have been born over the last seven years, and the company is proud of this important positive impact on society.

AUNDE needs workers that are motivated to learn a job in the automotive sector. At the company they like to say that it feels like they’re all part of a big family, which is true and always important to bear in mind.

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ITALY 2022

INTERVIEW

ROBERTO CINCOTTA, DIRECTOR OF THE ITALIAN CULTURAL INSTITUTE OF BELGRADE

WE NEVER STOPPED BRINGING ITALIAN

ARTISTS TO SERBIA The Serbian public will once again have the privilege of enjoying Italian culture at in-person events organised by this Institute. Starting from the next academic year, all interested learners will be able to take Italian classes either on site or online. who don’t live in Belgrade to learn Italian,” says Cincotta.

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e can happily say that the current programming is up to speed and back to pre-Covid levels - says Italian Cultural Institute Director Roberto Cincotta. Despite the return to in-person activities, the Institute will continue to explore online activities, as they’ve proven to be able to entice new devotees to Italian language and culture from smaller places in Serbia.

Indeed, the experiences of 2020 and 2021 point to that.

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“In 2020 and 2021, the shift to online work was not followed by a decline of enrolment numbers in the Italian language courses. As a result of the pandemic, and as it has happened all over the world, teaching had to be adapted to new methods, to which our teachers adapted with great competence and flexibility. We plan to reactivate face-to-face courses starting from the next academic year, though without giving up the offer of online courses that allow students

Apart from the online presence, we see a lot of your programmes being implemented throughout Serbia. To what extent have the Institute’s activities rebounded to pre-Covid levels?

We’ve resumed the organising of cultural events throughout Serbia and can happily say that the current programming is up to speed and back to pre-Covid levels. We believe it is necessary to support cultural events that take place not only in the capital and major cities, but also in the other Serbian towns that have demand for an Italian cultural offering. We hope that the pandemic will abate further, to allow for a richer and more varied programme of cultural events, confident that these will meet the public’s interests and expectations.

How has the digital experience changed the way we are able to familiarise ourselves with Italian heritage and culture?

The digital experience at Italian cultural events and in Italian language classes has certainly modified our public’s approach to the knowledge and fruition of Italian heritage and culture. Nevertheless, we shouldn’t forget that digital cultural experiences had started spreading even

before the pandemic – these include virtual visits to museums and famous Italian sights, digital books from all times (including manuscripts) made available by Italian libraries, online concerts and conferences, and virtual Italian language courses. Since the outbreak of the pandemic, the digital experience has become an essential aspect of our daily life by increasing what was already becoming a trend.

I believe the digital experience can be useful if conceived not as an exclusive option, but rather as a complementary aspect coupled with the direct experiences of studying Italian, visiting Italy and enjoying Italian culture. With the help of technology, it is easier to prepare, deepen and preserve knowledge of our culture, and participation in it, over time.

At the time we’re conducting this interview, another Biennale di Venezia is taking place. How does this most extremely popular cultural event connect our cultures?

La Biennale di Venezia is one of the most important cultural events in the world. Since its foundation in 1895, La Biennale di Venezia has remained at the forefront of the promotion of new artistic trends by organising contemporary art events through a unique multidisciplinary model. With a leading role in the research and dissemination of new contemporary artistic trends, La Biennale di Venezia organises many events in the fields of art, architecture, cinema, dance, theatre and music, with exhibitions and performances. The Biennale Arte, whose number of participating countries has grown from 59 in 1999 to 82 in 2022, has been recognised as having a prime role among contemporary art exhibitions worldwide. This is a prestigious event that showcases the most recent artistic expression of various countries, including Italy and Serbia, and connects cultures and visitors in an international context.

All stages of preparation and the implementation of participation in La Biennale di Venezia are extraordinary opportunities for mutual exchanges of

knowledge between curators, artists, art critics and visitors.

Many of the festivals that the Institute traditionally participates in, actively and regularly, suffered organisationally during the period of the pandemic. In which of the upcoming editions of festivals we will be able to see Italian artists?

The Italian Cultural Institute of Belgrade has never stopped ensuring Italian participation in Serbia’s numerous festivals with high-level artists, in all fields of culture, whether music, art, cinema, theatre or photography. In 2022, the Serbian public will

The Institute intends to attend the Belgrade Book Fair with its own stand, which will be a meeting point for the Serbian public to get acquainted with many Italian authors, novelists, poets, essayists, teachers and journalists continue to be offered opportunities to encounter Italian culture. Here I’m thinking of Italian participation in the Belgrade Dance Festival, the Belgrade Film Festival, the Film Days in Kragujevac, Užice and Bor, the Beldocs International Documentary Film Festival, the Belgrade International

Review of Archaeological Cinema, the Night of Museums in Subotica and Novi Sad, the Guitar Art Festival, Belgrade Photo Month, the Art Link Festival of Classical Music, without overlooking the dozens of events that are organised directly by the Institute in collaboration with the National Theatre in Belgrade, Dom Omladine, the Kolarac Foundation, the Museum of the City of Novi Sad, Madlenianum Opera & Theatre, the Yugoslav Cinematheque Film Archives and many other institutions of Serbian culture.

It is a quite impressive list! Let me also remind your readers of a number of recent and upcoming concerts of Alice, Nicola Piovani, Mario Biondi and the Belgrade stage of Sanremo Giovani. You can find out more on our website at any time.

The Institute also participates in the Belgrade International Book Fair with its own stand each year.

Are you preparing as if we will be in a position this October to enjoy the true gathering with poets and books? How have you managed to keep the public informed about new IIC publications?

Our Institute is extremely active in the publishing field, both through its own publications and collaborations with Serbian publishers. I would like to mention the imminent publication of Carla Fracci’s autobiography Step by step, realised in partnership with the Belgrade Dance Festival; the Serbian edition of Con ventiquattromila baci

by Francesca Rolandi; and the graphic novel by Davide Toffolo Intervista a Pier Paolo Pasolini, without forgetting several Serbian editions of Italian books published with the support of our Ministry of Foreign Affairs. For this reason, the Institute decided to attend the Belgrade Book Fair with its own stand, which will be a meeting point for the Serbian public to get acquainted with many Italian authors, novelists, poets, essayists, teachers and journalists. So, once again, we advise our dear followers to visit our website and our social media channels and subscribe to the Institute’s newsletter.

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ITALY 2022

BUSINESS

ANDREA IERVOLINO, CEO AND CO-FOUNDER OF IERVOLINO & LADY BACARDI ENTERTAINMENT AND IERVOLINO STUDIOS; LADY MONIKA BACARDI, CO-FOUNDER OF IERVOLINO & LADY BACARDI ENTERTAINMENT AND IERVOLINO STUDIOS

GLOBAL DEMAND FOR SHORT

CONTENT IS GROWING

Iervolino & Lady Bacardi Entertainment (ILBE) and Iervolino Studios (IES) have been setting new standards of innovation in the entertainment industry in Serbia since their very arrival. After just two years, they’ve achieved great results and built a team of more than 100 exceptional creatives, which is a better result than in any other country where they do business also great talent and creative potential.

Being able to create content intended for distribution on leading global platforms from their own city and country, for the first time ever, sparks this special kind of creativity and innovation in them, and that is indeed a beautiful thing to witness.

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audience is particularly attached to. On the other hand, demand for content is growing, which is proven by the expansion of highquality series on streaming platforms in the “up to 30 minutes” category.

Speaking from your rich experience as a Hollywood producer, what do you think the future of entertainment will look like?

Andrea: The everyday routines and habits of viewers have changed drastically during the last couple of years. Their attention-span is getting shorter, therefore relevant and high-quality content, whether in the fields of entertainment, art, education or sales, “packaged” in a short and easily accessible form, is something the

What makes Serbia so special?

Monika: From the very beginning, we had only the highest of expectations and a lot of faith, but I have to say that the results we achieved after only two years surprised me, too. Every start is hard, especially when it happens in the midst of a pandemic, and we certainly had some ups and downs along the way, but it was worth it. The result is a team of more than 100 exceptional creatives, better than in any other country where we do business.

What makes them unique is their great devotion and eagerness to learn new skills and techniques that they maybe haven’t had the chance to see or use before, but

his duo of Andrea Iervolino and Monika Bacardi thinks that Serbia and its creatives have everything it takes to be successful: talent, passion and imagination, which they say are deeply ingrained in our country’s culture and tradition, helping these artists tell strong, memorable stories that will leave a mark in the years to come.

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The first “product” of IES is the animated short series Puffins Impossible. How many episodes have been created so far and where can they be watched at present?

Andrea: By the end of 2021 we’d created 54 episodes of the series, produced

by Archangel Digital Studios, which is owned by our great friend Miloš Biković, and with the support of the Ministry of Culture and Information of the Republic of Serbia. Starting from April this year, the first 18 episodes are available for streaming on leading global platforms – Amazon Prime, Apple TV, Google Play, Chilli TV and TaTaTu, making them accessible to millions of people all around the world.

However, we wish to double the number of episodes created in 2022 – somewhere between 80 and 100, and we are already on the right track to achieve that.

How about other formats, besides short ones? Will we talk about the first Iervolino Studios feature film this time next year?

Monika: Plans for doing that are definitely there and in motion – we have a lot of exciting new projects ahead of us and we can’t wait to talk about them in more detail in the period ahead.

IERVOLINO STUDIOS

CELEBRATING

TWO SUCCESSFUL YEARS Every great film or TV series starts with a great story and, very often, with a sequence of unexpected events that ultimately turn out to be fortuitous. And that’s precisely how the story of Serbia-based animation company Iervolino Studios (IES) started: from co-founder Andrea Iervolino being stuck in Belgrade during the first months of the pandemic and his brave decision to start his business here, to a studio which, just two years later, employs more than 100 creative professionals in uniquely designed studios in Belgrade and Novi Sad, equipped with top-notch technology the fields of animation, film and special effects (VFX) that are led by renowned local and international experts.

“With its final goal of contributing to the development of the animation industry in Serbia, as well as building and supporting the local creative community, our training center is an educational platform

for professionals wishing to enhance their existing creative skills. What’s more, it provides a chance for the most talented students to start their careers at IES after completing the course,” says Iervolino Studios Head of Marketing and Communications Anđelka Janković.

IES has even bigger plans to implement by the end of 2022: completing five seasons of the Puffins Impossible series, hiring more skilled professionals, opening a brand-new department alongside its current VFX and post-production departments, as well as launching numerous new projects, particularly in the field of education.

Photo: Archive IES

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ith its main focus on creating high-quality short animated content, the studio recently announced that the first 18 of 54 completed episodes of the animated series Puffins Impossible, created at IES and produced by Archangel Digital Studios, are available to watch on leading streaming platforms, such as Amazon Prime, Apple TV, Google Play, Chilli TV and TaTaTu. Over a period of just two years, this project has achieved something that was difficult to even imagine: the work of Serbian artists and creative professionals can now reach millions of people worldwide. What makes this series even more special is the fact that Johnny Depp gives his voice to the main character, while he also officially opened the studio in Belgrade last October.

“We are very proud of the fact that the animated series that’s available on the leading streaming platforms is signed by Serbian artists. Our teams in Belgrade and Novi Sad have done a great job and confirmed that we are a talented, adaptive, and fast-growing community that’s always ready to inspire others, learn and progress.

We will continue to further expand our team and our business in the years to come,” says Iervolino Studios Local Country Manager Dragan Nikolić, adding that IES is already working on new creative projects for global distribution, as well as on developing tailored content to meet the needs of specific users and clients in Serbia.

Another important step for IES during the previous period was the opening of the IES Internal Training Center, which is dedicated to educating all interested current and future creative professionals through specialised workshops and courses covering

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ITALY 2022

BUSINESS

VLATKO SEKULOVIĆ, LAW OFFICE SEKULOVIĆ

SERBIA IS A GOOD MARKET During the three decades of its work, Law Office Sekulović has specialised in the corporate domain and those branches of law that are essential to the functioning of the economy, from property relations to classic commercial law

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he economic challenges brought by the two major historic events of the pandemic and the war in Ukraine are huge and it isn’t currently possible to see all of their consequences, though it is certain that the Serbian economy will not be exempt from world trends.

Your Office is among the leaders in the field of commercial law. How much have you been helped in gaining such a status by the fact that you have a team with broad local and international education and experience?

Thanks for that statement! We try to provide the highest possible quality in a specific branch of law. We understand the necessity for law firms to focus on both the types of clients they have and the types of law that they address. This development of legal practice is conditioned by the complexity of legal norms in the 21st century and the broad range of coverage of the regulating of social relations as a result of overall economic and technological progress.

Your clients also include embassies, chambers of commerce etc. That is a great honour, but isn’t is also a great responsibility?

We are a “trusted law firm” [Lawyers of Confidence] of the Embassy of Italy and the Italian Trade Delegation in Belgrade, a member of the Italian-Serbian Chamber of Commerce and Confindustria Serbia...

In our profession, responsibility is a given. Moreover, due to the special role of legal practice in society, its constitutional position, the position of a lawyer presupposes a high ethical level and responsibility for one’s own work. This applies particularly to our colleagues who are tasked with determining guilt, because they are on the first line of ethics, given that the lives of specific people are decided in this legal area.

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Our legal system, both in its normative part and from the aspect of its application, particularly the judiciary, doesn’t deserve the negative assessments that are often emphasised among our public How is our legal framework rated by the many foreign investors that you represent?

Our legal system, both in its normative part and from the aspect of its application, particularly the judiciary, doesn’t deserve the negative assessments that are often emphasised among our public. Our legal system certainly isn’t as efficient as, say, Germany’s, but nor are we – as a society and individuals – as efficient as German citizens. I consider that, in the balance between the attractiveness of profitability and legal security, Serbia represents a good market for foreign and local investors.

The world is still struggling to overcome the consequences of the two-year pandemic, while it has now

been additionally rocked by Russia’s attack on Ukraine. How will this reflect on our economy?

The world is today a completely different place compared to two years ago. The Covid-19 pandemic and war in Ukraine represent unprecedented events in many ways. The issue of security is certain to have a significant impact on economic processes, both when it comes to the availability of raw and semi-raw materials, and when it comes to supply chains. These factors subsequently have a knock-on effect on supply-demand relations, which leads to inflation. The Serbian economy will not be exempt from these flows. Given that Serbia is fully integrated into the EU market of goods and services, as well as the U.S. financial market, the framework of our actions has been clearly determined.

In that sense, the Serbian economy may experience serious disruption if it moves, for political reasons, towards its own exclusion from these markets, which could have very negative ramifications not only for the standard of living, but also for the overall stability of our social system in all areas – from the economy to health, security and education.

ITALY 2022

LJILJANA AHMETOVIĆ, SHOPPSTER CEO

Last year saw the first and largest online and TV store in Serbia, Shoppster, begin its cooperation with the local association of Italian entrepreneurs – Confindustria Serbia – to strengthen the friendship with Italian entrepreneurs and Shoppster’s offer of Italian brands

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nterest in Italian brands and recognisable products on the Serbian market is huge, and this cooperation will ensure the regular growth of an already rich offer. Speaking in this CorD interview, Shoppster CEO Ljiljana Ahmetović doesn’t hide her delight about this new cooperation.

How does the introduction of a large offer of Italian products at Shoppster fit with the goals of this company?

As pioneers of the modern eCommerce industry in Serbia, our primary goal is for Shoppster to become a platform that gathers global brands and offers the widest range of products, a true “one-stop-shop”. Today, with over 180,000 products and 3,500 brands, we can state proudly that this goal has been achieved, and represents an integral part of the new eCommerce standards that we’ve set on the market.

Likewise, we want Shoppster to become a meeting point for new cultures, where our customers can feel the spirit of countries, nations, their customs and consumer habits. I think it’s fair to say that not many countries have contributed like Italy to the diversity of our everyday life, with its history, culture and traditions.

You have launched cooperation Confindustria Serbia. How is that going today?

Confindustria is our extremely important partner in presenting the unique spirit of Italy to our customers. Their mission matches ours completely: improving business cooperation and the business environment in Serbia, and selfless support of ideas, initiatives and development projects that will

BUSINESS

A TRUE “ONE-STOP-SHOP” number of customers and establish a strong market presence: a platform developed with a top-of-the-line Marketplace model; a unique shopping TV channel; and logistics on par with the largest European eCommerce markets.

Our experience with companies at all levels, from small businesses to globally renowned brands, has established us as a “safe haven” for all Italian entrepreneurs wanting to enter our market.

As pioneers of the modern eCommerce industry in Serbia, our primary goal is for Shoppster to become a platform that gathers global brands and offers the widest range of products, a true “one-stop-shop” bring entrepreneurs closer to a wider audience. We are the first eCommerce company to partner with an association of this type, and it is wonderful to see the friendship with Confindustria grow.

Cooperation is not just about big brands?

Shoppster has everything an Italian company needs to reach a large

What range of Italian products is covered on Shoppster?

Shoppster presents Italian brands such as Kappa, Campari, Lavazza, Olitalia, Bormiolli, Cremonini, Chicco, Schar, to name just a few. Italian fashion, home appliances, the best Italian wines and pasta - all imbued with the Italian lifestyle that we admire so much. For us, the most important thing is that we have brought our Italian partners into an environment that’s filled with the great trust that we’ve built on foundations of a fast, safe and reliable online shopping experience.

How are your customers reacting to new Italian products?

The reactions are more than positive.

Our “Days of Italy” page on Shoppster. com, which is dedicated to Italian products, remains one of the busiest, and its offer will continue expanding, to our mutual delight.

I can conclude with great pleasure that we have, in a short period, contributed to better connecting our two cultures. As Shoppster grows and expands across the region, I’m sure that many more customers will discover the charms and values of the Italian lifestyle.

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ITALY 2022

ECONOMIC COOPERATION 18

THRIVING ECONOMIC

EXCHANGE

Both the volume of investment and the number of Italian companies in the Western Balkan area are extremely high. In Serbia in particular, Italy is one of the most important investor countries, with small, medium-sized and large companies having relocated their production operations to the country

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he history of economic relations between Italy and Serbia is marked by almost continuous progress and the efforts of both sides to improve and deepen mutual economic, investment and trade connections. Italy has long been among Serbia’s top three foreign trade partners and the country’s second largest export market, but is also among the ten largest foreign investors in Serbia.

Economic cooperation between Serbia and Italy is built on the foundations of the excellent bilateral diplomatic relations that were first established more than 142 years ago. Mutual trade and economic ties have been further strengthened by the current ItalianSerbian Strategic Partnership Agreement, which was signed in 2009.

Approximately 1,850 Italian companies, under partial or majority Italian ownership, are registered in Serbia and employ around 39,000 workers. The first important Italian investment in Serbia was that of Fiat, which helped branches of numerous companies from the automobile industry subsequently establish themselves. Italian companies differ in terms of size and area of activity and are present nationwide across Serbia. Italian companies are today present in almost all economic sectors

in Serbia, including construction, IT, renewable energy sources, footwear, packaging, mechanical elements, wood processing, the furniture industry and agriculture. Among the most significant investors are Intesa Sanpaolo, Fiat Chrysler, UnipolSai S.p.A., Ferrero, Cogeme Group, Pompea, Golden Lady, Calzedonia, Olimpias and many others. Indeed, this exchange is strongly influenced by the two countries’ level of develop-

The presence of major Italian banks, with direct investments or via the control of subsidiaries, is extremely important for the support of further Italian investments ment. In 2020, Italy ranked 19th in the Economic Complexity Index (ECI 1.3), and 7th in total exports ($481 billion).

That same year, Serbia ranked 37th in the Economic Complexity Index (ECI 0.68), and 68th in total exports ($20.6 billion).

According to the Observatory of Economic Complexity (OEC), an online data visualisation and distribution platform, Italy exported goods worth 1.95 billion dollars to Serbia in 2020. The main products

exported products included tanned equine and bovine hides ($88.2 million), vehicle parts ($69.2 million), and raw copper ($50.7 million). Over the course of the last 14 years, Italian exports to Serbia have increased at an annual rate of 3.26%, increasing from $1.24 billion in 2006 to $1.95 billion in 2020. Italy didn’t export any services to Serbia during 2020.

On the other hand, Serbia exported goods worth $1.71 billion to Italy in

2020. The main products included cars ($351 million), corn ($89.8 million), and footwear parts ($70.9 million). Serbian exports to Italy have increased at an annual rate of 4.21% over the last 14 years, from $959 million in 2006 to $1.71 billion in 2020. According to the latest data available, Serbia exported services to Italy worth $1.63 million in 2019, with the largest in terms of value being transportation ($551,000), other business services ($503,000), and travel ($237,000).

Italy had large net trade with Serbia during 2020 in the exports of machines ($447 million), metals ($261 million), and textiles ($203 million), on the other side, Serbia had large net trade with Italy in exports of transportation ($373 million), textiles ($254 million), and metals ($186 million).

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ITALY 2022

FEATURE

ANTONIO ZANETTI, CEO AND FOUNDER OF THE KMZ GROUP

15 YEARS IN SERBIA

RESPONSIBLE GROWTH

Once vertically integrated, Mr Zanetti’s interests in his companies in Serbia and Italy (including MG Precast and Penta Ge.Co. Construction) will become the KMZ Group of companies

Photo: Marko Kranjc, Origo

blueberry orchard Bacca Blu and Burnout, through which we have become the exclusive distributor of Ducati and Benelli motorcycles in Serbia and the region – a true synthesis of passion and our impeccable management and professional standards.

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G Precast – a regional leader in precast concrete structures, was Antonio Zanetti’s first endeavour in Serbia. Fifteen years on, CorD Magazine met with Mr Zanetti as part of our series of interviews with leaders of the Italian business community in Serbia.

Mr Zanetti, fifteen years on, yourself and your companies have become synonymous with excellence in the construction industry. Tell us more about your work?

- To be honest, this trajectory of my work and the success of our companies in Serbia is something I would not have dared to forecast back in 2007. In the last fifteen years we have successfully been at the forefront of the region’s economic expansion. We started out with MG Precast, as a manufacturer of precast concrete structures (a key part of any industrial facility), and moved on to establish Penta Ge.Co. Construction – our turnkey general contracting company. This year we have proceeded with the aquisition of SPI SRL – a company from Italy that specialises in precast concrete products in the tunnel-building industry. Since 2015, we are also active in the agricultural technologies sector with Loom Of Fruit, which specialises in prestressed concrete anti-hail products. Something unrelated to our core business of construction and concrete is our

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You smile when you mention motorcycles. How come?

- To be honest, growing up in Mantova – famous for being the birthplace of many talented motorists, a connection with motorsport comes naturally. In my case, it was motorcycles – Ducati to be specific. To be able to do business with a brand like Ducati – one I have admired since my childhood days – is pure passion. Hence the smile.

You mentioned the success of MG Precast. Could you tell us more?

- This is a company that has grown significantly since its founding. To put it into numbers – in our first years here, we were producing some 50,000 square metres of precast concrete structures annually.

Last year we produced and installed over 400,000 square metres. With increased demand, we had to increase our capacities. Two years ago, we doubled our output with the opening of our second production plant in Inđija.

With such an increase in operations (the plant spreads across over 40,000 square metres) the company essentially entered a new era and we felt that its name should also evolve in a way that mirrors this. Martini Gradnja therefore became MG Precast.

Penta Ge.Co. Construction has taken its place among the region’s most respected general contracting companies. What are your thoughts?

- Penta Ge.Co. Construction is a company that was founded on the basis of our extensive experience in the construction business. In these seven years, we have had the pleasure to work with global market leaders in building their factories, logistical centres and retail parks in Serbia. Just recently, we were chosen as the general contractor for the new ‘Lastavice - Blok 58’

residential complex in Belgrade. This is a huge milestone for us, as it speaks volumes about our reputation within the investor community in the region and beyond. Additionally, after building several hundred thousand square metres of industrial and logistical facilities, this will be our second large residential and commercial project.

What are your next steps, considering the diversification of your various businesses?

- We are currently working on the vertical integration of our companies both here in Serbia and in Italy. Loom Of Fruit has established itself as one of Europe’s leading manufacturers of prestressed concrete antihail poles and we will work on establishing the company’s presence in other European and Asian markets. With regard to Burnout and our motorcycle business, we plan to build a 1,500m2 motorcycle centre from which we will directly supply all EU and Extra-EU markets that we are covering with Ducati and Benelli motorcycles. We also plan to introduce a third brand, but no details can be made public at this time.

With MG Precast, the goal is to maintain stable and continuous growth, in line with previous company history and the recent expansion of our production output. Penta Ge.Co. Construction will work on further increasing its presence in both Serbia and other European countries by taking benefit our own knowhow, activities with our businesses in Italy and the reputation we have built by working with global industry-leading companies.

KMZ Contractor, the group’s project bureau, will undergo a rebranding as we understand it?

- The KMZ Contractor project bureau, known for its excellence in service, will soon be renamed to Indicon. Under this new name, Indicon will focus on acquiring new clients in regional and EU markets, as well as retaining its market-leading position here in Serbia. All things considered, this scope of activities certainly provides for a positive outlook.

ITALY 2022

FEATURE

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ITALY 2022

ITALIAN PRESIDENCY OF THE COMMITTEE OF MINISTERS OF THE COUNCIL OF EUROPE

COMMITTED TO SHARED

PRINCIPLES AND VALUES The Italian presidency focused on three main themes: recommitting to the Council’s shared principles and values; enhancing women’s empowerment and the rights of children and adolescents; and building a people-centred future

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uring Italy’s six-month Presidency of the Committee of Ministers of the Council of Europe, from November 2021 to May 2022, the country worked hard to further familiarise the citizens of member states with the values and work of the Council of Europe and strengthen awareness-raising activities targeting schoolchildren and students.

Within the scope of theme one recommitting to shared principles and values - Italy’s presidency took

the opportunity to emphasise the importance of decisive action among governments to finally place equal access to healthcare at the heart of their concerns; to contribute to joint efforts to strengthen the Social Charter by simplifying its monitoring procedures and fostering more regular dialogue with governments, and to set an example on the use of new technologies in the service of knowledge, art and beauty by holding a major event focusing on culture, landscapes and common heritage.

The second theme - enhancing women’s empowerment - was intended to draw attention to increasing instances of domestic violence and gender abuse during lockdown, as well as the declining participation of women in the labour market as a consequence of the Covid-19 pandemic. In that respect, the protection and promotion of women’s fundamental rights were

of minors’ rights in all multilateral cooperation activities, prioritising the eliminating of all forms of violence and abuse against children and adolescents and ensuring that they fully enjoy their fundamental rights.

The Italian Presidency also invited young people from all Council of Europe member States to attend the Forum on Education for Democratic Citizenship and Human Rights, both in person and virtually. This event focused on the five-yearly review of the implementation of the Charter on Education for Democratic Citizenship and Human Rights Education.

When it comes to discrimination, Rome hosted the plenary session of the Steering Committee on AntiDiscrimination, Diversity and Inclusion and the meeting of LGBT focal points.

The third theme - building a people-centred future - focused on the

Italy was proud that Rome hosted the launch of the new Council of Europe strategy on the rights of children and adolescents

interplay between technologies and science and people’s needs with full respect for their dignity and inalienable rights, with a focus on the development and use of artificial intelligence in the service of human needs and the strengthening of democracy through science.

In addition to all that, Italy also committed itself to reaffirming the function of punishment, both as a means of the rehabilitating of offenders and the recovery of victims.

This led to the organising of two high-level events in the justice sector: the Conference of Ministers of Justice on restorative justice and its role in European criminal justice; and the meeting of the General State Prosecutors of the Supreme Courts of the Council of Europe Member States, focused on the independence of prosecution departments.

at the core of the Italian presidency’s activities; Italy devoted itself to adding signatures and ratifications to the Istanbul Convention, as the most advanced instrument to fight violence against women and domestic violence at the multilateral level.

Under the scope of the same theme, the presidency focused on the rights of children and adolescents, promoting youth policies while fighting discrimination. The Italian Presidency pushed to raise the level of protection of minors under the panEuropean and international framework through the mainstreaming

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ITALY 2022

BUSINESS

MAURIZIO PANIZZO, DIRECTOR OF PANIZZO CONSULTING

CARE FOR THE PEOPLE

WILL BE THE SOLUTION

Despite the turbulent times, Panizzo Consulting and Panizzo Engineering believe in the future and in their business model that has been functioning perfectly in Serbia for more than 50 years, based on family values and experience. Today, with the same care and dedication, the Panizzo family is developing two companies, Nicma Balkan and Abacaar

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oon, the third generation of the family will become part of the team, my daughter Sofia Panizzo, who from the Turin Faculty of Design is setting up support for new horizons of style and branding of companies and products - said Mr Panizzo, with unconcealed pride, speaking to CorD Magazine.

The Panizzo family has been present and operating in Serbia ever since 1968, when your father worked for FIAT as a manager. Can you tell us more about the history and business in Kragujevac?

My father, Mario Panizzo, came to the Crvena Zastava Institute on 21st October 1968, as a representative of FIAT, the Turin car factory. Every year on that date, the Great School Hour is held in Kragujevac, a traditional anti-war event dedicated to the civilian victims of the Nazi occupiers. This is of special importance for our family, because the basis of our professional and life approach has always been respect for the cultural and historical heritage of the people in whose territory we live. Thus, our business model from 1968 puts the socio-cultural factor first. Our business model is based on fairness, justice, and finding the right solutions under existing laws and norms.

We started as management in the company, and over the years other companies came to Serbia, ones that I mostly represent. We are actively working on solving all kinds of problems, from administrative to technological, and connecting 24

with institutions and ministries. I do not remember that there were ever any serious difficulties and we did not have a single moment when the representatives of the institutions did not help us or solve a problem. Successful cooperation with institutions is also the result of our efforts to accurately and clearly inform our clients about the laws and the way of doing business in Serbia.

Can you tell us a bit more about Panizzo Consulting, which has been operating since 2012, and which you personally run? In addition, you run Nicma Balkan and Abacaar, which will include other members of your family.

While solving problems, Panizzo consulting has developed a special engineering sector for companies. Once a significant part of our work was related to the translation of customs documents or the interpretation and understanding of cadastral documents, today the biggest challenges are of a technological nature, so Panizzo consulting has grown into Panizzo Engineering.

We are currently working on the digitalisation technology project of Aerostrutture spa, which has worked in the aircraft industry for more than 20 years producing titanium, steel and aluminium components and is located about a hundred kilometres south of Rome. The Cooperation Agreement was signed on 20th December 2021 with those responsible for the R&D sector, Cavaliere del Lavoro della Repubblica (Knight of Labour of the Republic) Augusto Michelagnoli. In this cooperation, we have very ambitious plans for the development of technological processes that can be applied in a wide range of industries.

One of my favourite business cases is Nicma Balkan, where I have been working as a director since 2012. Nicma Balkan is part of Nicma Group Italy, which has been dealing with facility management since 1971. This activity started with winning a big tender for technical and civil cleaning in the Fiat factory in Kragujevac right at the beginning of the project. I remember placing an inscription on the administrative building ‘Proudly made in Serbia’ and moving my team to the same administrative building where my

Currently, my wife Sonja Panizzo, who is part of my team, runs Abacaar, which had a minor standstill and is now moving into electronics in the automotive sector, with young and motivated engineers on several projects including AI and a battery management system for electric vehicles.

The third generation of the family will soon become part of the team, my daughter Sofia Panizzo, who from the Turin Faculty of Design is setting up support for new horizons of style and branding of companies and products.

We are actively working on solving all kinds of problems, from administrative to technological, and connecting with institutions and ministries father started working in 1968. In April 2015, I was offered the chance to run the company Idest, among other things. It is an engineering company from Turin founded in 1999, which opened a company in Serbia in 2010, as engineering support to the capital investment of Fiat Automobiles Serbia during the reconstruction of the Crvena Zastava factory. Some time later, we started cooperation with the Italian Embassy in Belgrade, where we monitored the project of rehabilitating river flows in certain flooded parts of the territory of Serbia. In addition to standard engineering services, the company specialises in industrial design at all levels. The work is guided by FIDIC international engineering principles and EU standards. In addition to design, it also offers works supervision and management services on behalf of investors.

Along with other support to various companies in Morocco, Romania and Serbia, we followed the construction and start of activities of the Fiat supplier factory called PMC. PMC is a fusion of two companies, and I am involved as a long-time friend and a person of trust, which is another word that represents a strong pillar of our business model.

A representative office of Confindustria will open in Kragujevac soon and you will be their authorised representative. What nominated you for that position and what are your plans?

A quality operating system has become a reference for many companies that have come to Serbia and for serious cooperation with the Confindustria system, which has more than 150,000 members in Italy.

Confindustria has been present in Serbia since June 2012, and since then it has made great strides in promoting and improving economic and social relations between Serbia and Italy. Cooperation with this extraordinary organisation led to an agreement to open a representative office in Kragujevac, where I will be the territorial representative.

Let me remind you that Confindustria is a representative office of the Confederation of Italian Industry in Serbia, founded with the aim of being an address for Italian business people looking for business partners in Serbia and for Serbian companies that want to be part of the system’s network.

The main goal is to expand the network of companies, both domestic and foreign, on the territory of Šumadija.

Kragujevac also has a very long industrial tradition in the region, and in the last 10 years the number of foreign investors has skyrocketed. A few months ago, coordination began with the director of PKS in Kragujevac, Mr Predrag Lučić, and with the mayor’s office. We have set up a base with institutions and companies that always welcome organisations like Confindustria in this area for increasing visibility, business opportunities and the exchange of technological and business achievements and capabilities.

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CULTURAL COOPERATION 26

EXCELLENT CULTURAL CONNECTIONS Cultural exchange between Serbia and Italy spans from scholarships, inter-university cooperation and research programmes, to projects and initiatives aimed at creating libraries, museums and cultural centres

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ilateral relations between Italy and Serbia are very developed and intensive.

They build upon the Strategic Partnership that was established between Serbia and Italy in Rome in 2009. The cultural programme between the two countries was particularly rich a decade later, in 2019, when the 140th anniversary of the establishing of diplomatic relations and the tenth anniversary of the strategic partnership between Serbia and Italy were commemorated.

Cultural exchange between Serbia and Italy is based on cultural cooperation sector agreements for scholarships, inter-university cooperation, research programmes, and projects and initiatives aimed at creating libraries, museums and cultural centres.

One of the most important events in the long history of cultural cooperation between the two countries was the opening of the new headquarters of the Italian Institute of Culture in Serbia at Palazzo Italia back in 2006. The promotion of Italian culture in Serbia has since entered a new phase, with services and events pushed to a higher level each year.

Belgrade’s Palazzo Italia has become a “showcase” of Italy in Serbia and a centre of services and information intended for citizens.

One of the most important tasks of the Italian Institute of Culture is to popularise the Italian language, and the number of students taking

classes in the Italian language is growing year-on-year.

At the university level, the Department of Italian Studies of the Philology Department is one of the most popular among students, and the Italian language is ranked second in teaching after English. In Novi Sad - where a permanent lectureship has been established - Italian language classes have been running for four years and have over 200 students. Italian language classes were also introduced at the University of Kragujevac as of 2009.

The Italian language has also been added to the curricula of Serbian primary schools, as one of the main languages, on an equal standing with

The number of students enrolling in Italian language classes is growing year-on-year the so-called “universal languages”.

There is also the Serbian-Italian bilingual department at the prestigious Third Belgrade Gymnasium secondary school.

Furthermore, scholarships funded by the Italian Government are awarded to deserving students and researchers to cover the costs of study trips and Italian language training in Italy.

Projects to publish and translate Italian works into Serbian, funded by the Italian Ministry of Foreign Affairs, are aimed at intensifying

the exchange of ideas between Italy and Serbia.

Numerous cultural events are organised each year by the Institute of Culture, such as concerts, art exhibitions and events of major importance. The Institute cooperates with local Serbian academic, artistic and museum institutions, such as the Academy of Sciences and Arts, the National Museum, the Museum of Applied Arts, the Museum of Con-

temporary Art, the Belgrade Cultural Centre, the Sava Centre, theatres like the National Theatre, the Yugoslav Drama Theatre, the Belgrade Drama Theatre, Bitef Theatre, and the main cultural endowments of the city, such as the Kolarac Foundation and numerous other institutions that depend on the Serbian Ministry of Culture and Belgrade City Council. In 2018, Belgrade Dance festival Director Aja Jung was awarded the highest state

award in the field of culture – “The Order of the Italian Star” – at the Italian Embassy in Belgrade.

The most important Serbian festivals that the Institute has participated in actively and regularly include the BITEF International Theatre Festival, Music Festival BEMUS, the Belgrade Summer Festival, BELEF, Film Festival FEST, the Belgrade Dance Festival and the International Book Fair in Belgrade.

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SCIENTIFIC COOPERATION

COOPERATION FOCUSED ON APPLIED TECHNOLOGY

AND INNOVATION Italy and Serbia are keen to support collaboration between research and industry, in an effort to convert research into innovation and exploit the results of research for economic advancement

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taly and Serbia are continuously advancing their scientific and cultural cooperation. Over recent years, a particular emphasis has been placed on increasing cooperation in the field of applied technology and innovation, biomedicine and biotechnology, agriculture, food technology, energy and environmental protection, nanotechnology, information and communication technologies, and technologies in the field of cultural heritage protection. Prior to the outbreak of the Covid-19 pandemic, a total of 96 inter-university cooperation agreements between the two countries had already been signed.

One of the pillars of this fruitful collaboration was the establishment of the Association of Italian and Serbian Scientists and Scholars – AIS3, which become a point of reference for the two countries’ research communities. This association has organised numerous events and book publications.

Another cornerstone of cooperation is the Italian-Serbian Collaboration Platform. Founded in 2013 as a joint initiative of the Academy of Engineering Sciences of Serbia and the Italian Association of Automation and Mechatronics, ISCP Conferences aim to strengthen and facilitate the Italian-Serbian partnership through intensive industry-research collaboration in technology innovation and robotics. The partners have engaged in several research and innovation projects in the domain of the manu-

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facturing industry, with the financial contribution of the Ministry of Foreign Affairs and International Cooperation.

Previous ISCP conferences brought together the likes of the Italian Association of Mechatronics and Automation, the Association of Italian and Serbian Scientists, Confindustria Serbia, the Chamber of Commerce & Industry of Serbia, the Italian Trade Agency (ITA-ICE) in Belgrade, the

Among the major goals of scientific cooperation is the promotion of technology and innovation through exchanges of knowledge between scientists and scholars, in both Italy and Serbia Sant’Anna School of Advanced Studies (Pisa) and the University of Belgrade.

They were also sponsored by the Italian Ministry of Foreign Affairs, the Government of the Republic of Serbia and the Italian Embassy in Belgrade.

Among the major goals of scientific cooperation is the promotion of technology and innovation through exchanges of knowledge between scientists and scholars, in both Italy and Serbia, to support joint research and development projects between scientists, scholars and non-profit, for-profit and governmental organisations in the two countries, in order to promote the bilateral flow of scientists and scholars between Italy and Serbia,

and assist prospective students in finding fellowships for the exchange of scientists and scholars. The two countries also agreed to work jointly to identify significant research opportunities – with specific regard to European Union Scientific Projects for Italian and Serbian scientific institutions, academia and the hightech industry – and to stimulate their development.

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ITALY 2022

ITALIAN CUISINE

A MATTER OF

REGIONAL PRIDE Italian cuisine is surprisingly diverse. Each of the twenty Italian regions has a distinctive set of flavours, recipes, products and ingredients. In fact, the Italian regions were not officially united as a nation until the mid-19th century, and thus each individual region has retained much of its original exclusive identity

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limate and natural landscape have played a major role in shaping regional cuisines.

Creamy risotto and other delicately flavoured dishes predominate in the Northern regions, while bright olive oil and tomato-based recipes rule the sunny South. Beef is best enjoyed as Florentine steaks in Tuscany, from choice cattle raised in the Chianina Valley. The city of Alba and surrounding areas of the Piedmont region are a top source of expensive truffle mushrooms, particularly pungent white truffles. Access to both the Mediterranean and Adriatic Seas makes fresh seafood dominant, though varied, throughout the peninsula.

Proximity to other countries and a history of militant invasions play a role in the uniqueness of regional cuisines as well. This explains the unprecedented popularity of sauerkraut and goulash in the Alpine regions of Trentino-Alto Adige/Südtirol and Friuli-Venezia Giulia. The culinary footprints of conquerors can be seen in the unexpected presence of Arabic spices and North African couscous in Sicily today. In fact, these conquerors are largely responsible for bringing such Italian staples as tomatoes and basil to flourish in the South.

Such artisan products as wine, cured meat and handcrafted cheese can be found throughout Italy. The style and flavour of these delicacies varies greatly according to region.

Italy is one of the largest wine producers in the world with a broad span of both white and red varietals. Yet the Sangiovese varietal, originating in Tuscany, is arguably Italy’s winemaking claim to fame. Derived from the words “sanguis Jovis” or “blood of Jobe,” this red wine grape is the main grape in Chianti and Brunello wines.

Cured meats, like the popular prosciuttos of the North and various salamis of the South, are used in such culturally significant dishes as the savoury Easter pies made throughout Central and Southern Italy.

Cheeses range from the soft, mild Buffalo Mozzarella of Campania to the hard, salty Pecorino Romano of

Sardinia. These products often carry names indicative of their origins, such as the increasingly popular Grana Padano (a “grainy” cheese from the “Padana” or Po Valley of the Lombardy region).

Location is so important to many Italian food products that laws exist to protect the authenticity of products made in a certain region. For example, any vinegar labelled Modena Balsamic vinegar must be crafted in the town of Modena, and any cheese labelled Parmigiano Reggiano must be produced in one of several provinces in Emilia-Romagna.

A wide regional assortment of wonderful breads and pastas can be found throughout Italy. Italian breads differ significantly in size, taste, and texture.

The large, chewy ciabatta loaves of Lombardy’s Lake Como and the thin, crunchy grissini breadsticks of Turin are on opposite ends of the spectrum.

Pasta is also unique from place to place. Fresh homemade pasta abounds throughout Italy and is often simply dressed, so as not to overwhelm its delicate flavour. Dried pasta is most popular in the South and can be adorned in countless inventive ways. Some say there are more pasta shapes in Italy than one person could conceivably eat in a lifetime. Italians have been known to squabble over the

proper name and culinary use of a particular pasta shape. Some shapes have legends behind their creation, such as tortellini, from Emilia-Romagna.

Legend has it that a lusty innkeeper in the city of Bologna invented this ring-shaped, stuffed pasta after peeping on the goddess Venus through a keyhole. With merely a glimpse of her bellybutton, he ran straight to the kitchen in a fit of passion to make this pasta in honour of her bewitching navel.

Local chefs will still argue for hours over the proper name, preparation, and origin of particular dishes. Italian food is always a matter of regional pride. But if one were to try and summarise this diverse cuisine, Italian cooking can best be described as a celebration of local flavours held together by a singular appreciation of high-quality, seasonal ingredients, presented in elegant simplicity.

Across all regions, Italian dishes are straightforward preparations of a few choice ingredients artfully combined.

Italy is unified by a national concept of classic meal structure. Rather than serving up everything in one or two courses, Italian dinners traditionally include an array of many small plates enjoyed in succession, giving diners an extended time to savour food and company. Meals progress

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ITALIAN CUISINE 32

from antipasto (appetiser), to a first course of pasta or other starches, a main dish of meat or fish with a simple side of vegetables, followed by salad, cheese and fruit, coffee and possibly a digestive (like grappa or sambuca liquor). Contemporary city dwellers, who have largely abandoned this meal structure for the sake of convenience, often still follow it on holidays, when the long feast still prevails. Yet these time-consuming meals arguably inform the Italian understanding of food as a sensory bliss beyond mere nourishment.

Dessert is sometimes served at the end of a special meal, but more often is enjoyed on its own as a midday snack. Characteristically, Italian dolci are restrained in terms of sweetness.

Cookies, cakes, pastries, and tarts can be savoured with coffee as a daytime energy boost.

The ever-popular tiramisu literally means “pick me up” and is composed of sweetened mascarpone and Marsala with espresso-soaked lady fingers.

One theory asserts that Northern Italian women created this caffeinated dessert to stimulate and fortify troops during World War I. Some sweets are more specific to holiday seasons, such as panettone, a buttery egg bread laced with dried fruit and candied citrus, eaten around Christmas. This famous Milanese treat is quite laborious to make, traditionally taking up to a week to complete.

Gelato is a popular year-round dessert. This rich, intensely flavoured Italian ice cream can be enjoyed anywhere at any time. The most exceptional Italian contribution to the field of pastry is probably the Piedmontese invention of gianduja (a sweet chocolate containing 50% hazelnut paste). Gianduja is used as an ingredient in innovative desserts throughout the world. It even inspired the creation of Nutella, one of Italy’s many popular food exports.

Coffee, particularly espresso, enjoys widespread popularity and cultural significance throughout Italian cities.

The vast range of espresso drinks served in Italian cafes has been mimicked in coffee houses throughout

much of the world. Luigi Bezzera filed the first patent for cappuccino in 1901, deriving its name from this foamy drink’s resemblance to the brown and white hooded garments worn

by Capuchin monks. Espresso was first developed in Milan in the early 20th century, although the modern espresso machine did not appear until the mid-1940s. Many people misunderstand the term espresso. Rather than referring to a specific style of coffee bean or roast, espresso is simply a thicker, concentrated extraction of coffee through a highly pressurized brewing process. The barista, responsible for preparing espresso drinks in cafes, is a highly regarded career position in Italy. Busy urbanites rely on local baristas for a delicious pickme-up at various times of day.

Street foods, such as gelato and panini sandwiches, are also popular in the hectic metropolitan cities. But no street food is as ubiquitous in Italy as pizza. Despite pizza’s global status, most international pizzas bear little resemblance to the thin, crunchy crusts invented in Naples.

Served with only a minimal topping of garlic and herbs or fresh mozzarella and basil on sparsely smeared tomato sauce, this tasty, wood-fired

bread has a distinctive flavour. The tomato sauce, garlic, herb variety, called Pizza Marinara, is said to be the oldest variety of pizza, and was named for a Neapolitan fisherman who often enjoyed this dish. Baker Raffaele Esposito created another variety, Pizza Margherita, in honour of Queen Margherita, using red sauce, white mozzarella, and green basil to represent the Italian flag. This queen, who could appreciate the splendour of workingman’s food, subsequently rose in the esteem of her people.

A somewhat wider variety of pizzas can be found throughout Italy today. Nevertheless, the classic Naples pizza remains a perfect symbol of the beautiful simplicity intrinsic in Italian cuisine: the clever uncomplicated preparation of a few delicious ingredients to render a truly worldclass dish that is at once humble and supremely epicurean.

LOBSTER AND PASTA HOMEMADE POTATOE AND SAUSAGE - TOSCANA SOUP ITALIAN RISOTTO WITH OCTOPUS AND MUSHROOMS

BOWL OF PASTA WITH SQUID INK CANNOLI STUFFED WITH CREAM CHEESE

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TOURISM

RURAL IDYLL With Florence, Rome and Venice (and that is just three of the most obvious ones) Italy boasts some of the most beautiful and rewarding cities in Europe. You can head there and find history, architecture, art and culture that cannot be found anywhere else in the world, and experience a lifestyle that’s almost impossible to forget. But the thing is, that’s not even the best part of Italy

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f you want to enjoy the full Italian experience, it is not enough just to lounge around in milling piazzas and learn the proper way to order an espresso – much of Italy’s true charm can be found in its abundant countryside. From the many gorgeous villas in Tuscany to the breath-taking vistas of vineyards and olive groves stretching to the horizon, the country shows a side of Italy that’s as intoxicating as any vintage Chianti.

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And the best way to experience this wonderful side of Italy? A day trip out from one of the bigger cities is all well and good, but if you really want to revel in the splendour, sun and relaxing atmosphere of rural Italy, the only thing to do is hire a car, head out and stay right at its heart.

The culture you will find out there might not be as famous as Renaissance art, but it is certainly got as much pedigree – after all, rustic wine-making and farming techniques predate even the

Romans! And if you think Italy’s best food is confined to five-star restaurants in swish new neighborhoods, clearly, you’ve never indulged in some farm-bought goat’s cheese, freshly baked bread and artfully produced salami and ham. The countryside (especially around Naples) is also where you’ll find proper, authentic pizza – a world away from most of the tourist-friendly imitations you’ll be eating in the inner city.

CETONA Cetona is a medieval hilltop town located in the southern slopes of Siena, Tuscany. The entire town is encircled by an imposing 10th century rocca (fortress), and is brimming with archaeological riches. Cetona is believed to have been one of Italy’s oldest settlements, with humans living at the foot of Mount Cetona over 40,000 years ago due to the area’s vast clay supply and forests. Steeped in history, Cetona marks a moment in time with its Etruscan archaeological sites and early neo-Paleolithic caves. Cetona boasts all the picturesque views you would expect from Tuscany, with striking cypress trees and a beautiful backdrop of pine forests.

ASSISI Holidays to Assisi show visitors the true Italian countryside in all its glory.

The town sits in the region of Umbria, just east of Perugia and lies nestled in the foothills of Mount Subasio. Assisi is known as the birthplace of St. Francis and has been attracting pilgrims since the 13th Century. The most famous site in Assisi is of course the Basilica of San Francesco d’Assisi, which is dedicated to the saint. There is also the 12th Century Rocca Maggiore Fortress and a huge medieval complex, all of which gave the town its UNESCO World Heritage status. The town is dotted with beautiful churches,

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small narrow lanes and charming piazzas, where you can sit and people watch from the quaint cafés. By day Assisi filled with day trippers from nearby Perugia, but by nightfall, you’ll have the town all to yourself and can enjoy milling with the locals in the soft evening light.

LAKE ORTA Holidays to Lake Orta take you to the best kept secret of the Italian Lakes in Northern Italy. It remains one of the most pristine areas in Italy, and one of most beautiful. The incredible architecture of the town of Orta San Giulio, with its pastel coloured buildings, picturesque streets and lakeside location add to the enchanting island of Isola San Giulio to make this destination a real hidden gem.

For historians and culture seekers, there is plenty to intrigue and entertain; visit the UNESCO-protected Orta Sacro Monte, a collection of centuries-old chapels located in Orta San Giulio or the Church of Santa Maria Assunta on the western side of the lake, with its striking classic medieval façade.

MATERA Holidays in Matera, situated in the southern region of Basilicata, transport you back to ancient times. One of the oldest cities in Italy, this enchanting place is best known for its UNESCO honoured Sassi where you will find stone houses and caves, believed to be home to Italy’s earliest settlers. Today, tucked into the caves of the Sassi are cafés, hotels, dwellings and even art galleries, all waiting to

LAKE ORTA

be discovered. Perfect for those looking to immerse themselves in history, Matera is filled with piazzas, Benedictine churches and museums all waiting to be explored.

And beyond the Sassi, the hills of Basilicata are home to old rock churches which were cut into the hillside many years ago.

The adventurous will revel in exploring the caves and the many streets, with so many treasures waiting to be discovered.

If culture is what you seek then Matera is for you. Still relatively unknown to Italy’s visitors, this unique area has retained its traditional charm and character, offering you a real Italian experience.

TROPEA If you want to explore another side of Italy, there is no doubt that holidays to Tropea will guide you off the beaten track.

The charming historic town is perched on top of a cliff that towers above the mesmerising blue and turquoise waters of the Tyrrhenian Sea and is part of the

wider region of Calabria, in Southern Italy.

Tropea overlooks Stromboli, a small island that inhibits one of three active volcanoes in Italy and while the volcano has been active for more than 2,000 years, Tropea itself dates back to medieval times, with traces of civilization dating back to 4,500 BC. Tropea has borne witness to the rise and fall of the Ancient Greek authority, the Byzantines, Roman Empire, the Normans and more. With a history laced with the thread of Greek mythology, legend has it that Hercules declared Tropea to be one of his ports along the 40km of La Costa degli Dei - The Golden Coast of the Gods. The town embodies a wonderful combination of majestic natural beauty, fascinating architectural charm and is in close proximity to the mysterious Aeolian Islands, a UNESCO World Heritage Site.

Great for couples, explorers and adventurers alike, the seaside terrace town of Tropea is a historical and cultural escape just waiting to be explored.

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EXHIBITION

“INTERVIEW WITH PASOLINI”

By Davide Toffolo

To commemorate the centenary of the birth of writer and director Pier Paolo Pasolini (Bologna, 5th March 1922 - Rome, 2nd November 1975), the Italian Embassy in Belgrade, the Italian Cultural Institute in Belgrade and the Viva Comix association present an exhibition entitled Interview with Pasolini, by Davide Toffolo.

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he exhibition will include over 70 comic art pages of the homonymous graphic novel also known as “Pasolini”, in the 2015 Rizzoli Lizard edition - that Toffolo first created in 2002 and which has also been published in French and Spanish. Also on display will be a selection of drawings created

by Toffolo on the occasion of the live performance Pasolini, L’incontro, as well as covers of the book’s various editions.

The book sees Toffolo establish an imaginary conversation with Pasolini’s alter ego (a double, perhaps a ghost).

The words spoken by Pasolini in the comic are actually derived from essays, interviews and authentic speeches of this intellectual, thus creating an original and captivating introduction to his critical reflection and non-fiction production.

The exhibition project was conceived

by Paola Bristot, professor at the Academy of Fine Arts in Venice and president of the Viva Comix association.

As the curator explains, “Pasolini loved comics and in his artistic research used them for the screenplay of the storyboard of the film La terra vista dalla luna [The Earth As Seen from the Moon]. For a writer who creates comics like Toffolo, this was one of the “hooks” from which to start addressing the works of this Friulian poet. The choice of imagining a character, Mr Pasolini, who introduces himself and, above all, who speaks like the Friulian poet, was a fictional solution that allowed him to continue still active reflections while simultaneously remaining consistent.

“The topics that Pier Paolo Pasolini took on with great intellectual clar-

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ity and poetic illumination include his complicated relationship with his father, with the state, but also his passion for cinema, for the shapes of a city and people whose ancient and original beauty he admired. There doesn’t seem to have been much difference between the problems of the past and those of the present day, and indeed many of the problems that Pasolini reflected on remain unsolved: homologation, systems of authoritarianism and making spectacles of culture and communication. These are some

of the aspects from which the great popularity of this graphic novel is derived, which gives us an opportunity to observe the power of drawing the comic art pages presented in the exhibition.

These art pages highlight Pasolini’s intense portraits, but also the landscapes of the main places he resided, such as the Friulian countryside, the University Centre of Bologna and the countryside around Rome. Toffolo’s drawings offer an analytical perspective of this exceptional Friulian poet and intellectual, filtered through the

eyes and pen of a contemporary comic book author who manages to present his insight through original but faithful and compelling invention.”

The exhibition is being promoted by the Ministry of Foreign Affairs and International Cooperation of Italy and displayed at Italian institutes of culture around the world. It is one in a series of events dedicated to the centenary of the birth of one of the greatest intellectuals of the 20th century and his versatile genius. Writer, journalist and essayist, playwright, film director and

screenwriter, but also translator and painter, Pasolini left behind a diverse and multifaceted, and sometimes controversial, body of work, and always proved to be a profound observer of the social and cultural changes taking place in Italy after World War II. The significance of this jubilee is confirmed by the recognition of UNESCO: on 11th November, as a part of the 41st General Conference, UNESCO approved the inclusion of the centenary of the birth of Pier Paolo Pasolini in the 2022-2023 Anniversary Programme, thus joining the celebration.

The formal opening of the exhibition, in the presence of artist Davide Toffolo and curator Paola Bristot, took place on 18th May at the Italian Cultural Institute in Belgrade. The exhibition remains open to visitors until 17th June.

DAVIDE TOFFOLO was born in Pordenone in 1965 and is one of Italy’s most important graphic novel authors. He is the author of the books Carnera, Pasolini, Il Re Bianco, Il Cammino della Cumbia, The Graphic Novel is Dead and, most recently, The Last Old Man on Earth, based on the texts of Roman artist and poet Remo Remotti. He is also author of the Cinque Allegri Ragazzi Morti series about this well-known vocalist and guitarist of indie band Tre Allegri Ragazzi Morti and, together with Enrico Molteni and Luca Masseroni, co-founder of record label La Tempesta Dischi, which has produced and released a lot of Italian independent music.

His public image sees him wearing a mask in the shape of a skull.

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ACCADEMIA GALLERY IN FLORENCE

A REAL JEWEL TO EXPLORE The Musical Instruments Museum of Florence, inside Accademia Gallery, is a real jewel to explore with your eyes, and especially with your ears. The collection shows the importance of the role music played in the Medici Court, celebrating the invention of the piano, which was created for the Medici by Bartolomeo Cristofori

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he museum was inaugurated in 2001 with entrance included in the Galleria dell’Accademia ticket. It displays about fifty musical instruments from private collections of grand dukes of Tuscany, the Medici, and Lorena, being a hidden gem for opera, theater, and classical music lovers. The instruments were collected from the late 17th century to the early 19th century. They were then given to the Cherubini Conservatory in Florence, which then loaned them to the Galleria dell’Accademia in 1996.

A multimedia area in the Galleria dell’Accademia makes it possible to listen to the sonority of many of the instruments on display and watch a video that retraces the birth and the growth of theater in Florence.

COURT MUSICIANS The Museum of Musical Instruments of Florence exhibits two largescale paintings by Anton Domenico Gabbiani in the musical instrument section. They portray the Grand Prince Ferdinando de’ Medici surrounded by his court musicians. The elegantly dressed young musicians proudly show off their violas, cellos, a lirone, or lira da gamba, and a cello with a precious silver tailpiece used to increase its sonority. You can recognise Pietro Salvetti, cappella master and chamber assistant, and Francesco Veracini, a composer among some of the best musicians of the era.

The room dedicated to Bartolomeo Cristofori displays two XVII century still lifes that combine elegantly set tables and detailed depictions of musical instruments of the era.

Ferdinando de’ Medici’s first passion from his earliest years was music.

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GRAN PRINCIPE FERDINANDO DE’ MEDICI, INITIATOR OF THE MUSICAL INSTRUMENTS COLLECTION

A GROUP PORTRAIT BY ANTON DOMENICO GABBIANI OF MUSICIANS IN THE ENTOURAGE OF FERDINANDO DE’ MEDICI

A GROUP PORTRAIT BY ANTON DOMENICO GABBIANI OF MUSICIANS IN THE ENTOURAGE OF FERDINANDO DE’ MEDICI IN THE 1680S 41

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He became an accomplished harpsichordist, able to sight-read a piece and then play it from memory. He built up a sizable permanent group of players and financed the development of new types of instruments.

He brought Bartolomeo Cristofori from Venice to be his chief instrument maker — and in 1700 Cristofori invented and constructed the first piano. Ferdinando attracted to Florence musicians from all over Italy and beyond, making the city a centre of excellence and innovation. Among those who enjoyed his patronage was the 22-year-old Handel, whose first Italian opera “Rodrigo” was staged in Florence in 1707.

Ferdinando’s role in musical history has been recognised since the late 19th century, when scholars began to re-examine his life and times. What has been all but forgotten were his energetic activities as a collector and patron of the visual arts.

THE INVENTION OF THE PIANO Bartolomeo Cristofori dedicated his work to experimenting with new materials for his instruments and creating innovative sounds, making an elegant spinet and a precious harpsichord in an ebony case. The most amazing discovery is finding the “piano”, or pianoforte in Italian, documented for the very first time in history. This was the invention of a keyboard instrument where the chords aren’t plucked; they’re hit by little hammers that produce softer and less “silvery” sounds than the harpsichord.

TRADIVARI’S AND AMATI’S S INSTRUMENTS In the midst of ancient harpsichords, wind instruments and percussion, you will find a unique piece by the master Antonio Stradivari.

The viola on exhibit at the Musical Instruments Museum of Florence is a one-of-a-kind by Stradivari and is perfectly conserved in its original condition. It was built in spruce and maple for the exceptional Medici Quintet, a group of two violins, two violas, and a cello. Elegance and outstanding sophistication are found in its exquisite mother of pearl, ivory and ebony inlay, and in the details of the Medici crest that make it unique.

TENOR VIOLA OF THE “MEDICI” QUINTET 1690

VIOLONCELLO AMATIF

PIANO CREATED BY BARTOLOMEO CRISTOFORI 42

But this is not the only Stradivari piece on display, there’s also a violin from 1716 and a cello from 1690.

Furthermore there are a violin and a cello of 1650 by Niccolò Amati, an important luitist who teached to Stradivari.

VERTICAL PIANO, GALLIANO

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