No Alternative To Normalisation

Municipal elections in the municipalities of North Kosovo that are boycotted by the Serb population do not represent a lasting political solution. They have to be reorganised with the full participation of the Serb population. That’s what we will be working on to make sure that we can return to the original agreement that is still in place and is still binding for both parties -

Pierre Cochard

As a member of the Quint and a country with a leadership that’s viewed with respect from the Serbian perspective, France provides its own contribution to the process of normalising relations between Belgrade and Pristina. In this interview for CorD Magazine’s special edition on France, Ambassador H.E. Pierre Cochard insists that the only alternative to returning to dialogue is “growing incessant tensions”. He reiterates France’s assessment that the government in Pristina “has an important share of responsibility in the latest events”, adding that the obligation to form the Association of Serb Municipalities must be met.

Your Excellency, what will be your key message when you address guests at the traditional Bastille Day reception on 14th July?

— My key message will be one of fraternity and solidarity. Fraternity is one of the elements of our national motto “liberté, égalité, fraternité” [liberty, equality, fraternity] that’s sometimes forgotten. But this year I want to address the Serbian people with a message of fraternity and solidarity after the Ribnikar school mass shooting. That was a shock for everybody. It was also a shock for us because we have strong ties with the Ribnikar community. So, we share in the sorrow of the children, the parents and the teachers, and we will continue to support the Ribnikar school in the future. But I also want to share a message of solidarity and fraternity with Serbia in order to help the country implement its green agenda and thus accelerate on its path towards the EU and to ensure that the country belongs to the broader European community of shared values.

Speaking on the occasion of the unveiling of the new runway at Belgrade Airport, which is managed by French company VINCI Airports, you described this venture as symbolising a new page in the annals of bilateral cooperation between our two countries, in which you see Serbia as a regional power. Could you elaborate?

— Yes, I think that the VINCI investment in the airport is emblematic of the long-term perspective in which French companies want to invest in Serbia. And if they do so it’s because they believe in the future of this country, its European future, its capacity to utilise its assets of geographical location, good infrastructure and a skilled workforce in order to, let’s say, become even more developed and become a true regional power in the positive sense of that term, i.e., to become a driving force propelling the entire region towards EU standards and EU integration.

Key Message

Fraternity is one of the elements of our national motto “liberté, égalité, fraternité” [liberty, equality, fraternity] that’s sometimes forgotten

Investments

I think that the VINCI investment in the airport is emblematic of the long-term perspective in which French companies want to invest in Serbia

KOSOVO

We invite Kosovo to take stock of the situation and exert all possible efforts to enable a productive dialogue and to return to agreements

By Ljubica Gojgić

Nonetheless, at the political level there is often talk of the danger of Serbia being isolated in the region. How do you view these two parallel realities?

— I don’t think anybody wants to have Serbia isolated in the region and in Europe. That would be a dead end for the country and the region. That’s why we called on Serbia to join the EU sanctions against Russia. That’s not only to tick the box, but rather to show that we have the same assessment of the impact of this war of aggression on our collective security, and on the way of life that we all want to protect together. Of course, that’s also an illustration of the fact that, as a regional power, Serbia also has challenges and responsibilities. It has to overcome the legacy of the past. It has to promote regional reconciliation and once again represent a driving force for all countries of the region, bringing countries together and not sidelining them in striving to achieve this objective.

The start of this year was marked by optimism over the latest attempt to forge an agreement on the normalisation of relations between Belgrade and Priština. Given the latest events, do you think this process is once again in crisis? — We have just witnessed the fact that there is no alternative to normalisation. The only alternative is growing incessant tensions, and that is unfortunately now playing against the interests of the local population, chiefly and primarily. That’s why we invested a lot, as you mentioned, in restoring the dynamism of this normalisation process. We are naturally worried by the unilateral gesture taken notably by Pristina and have made it clear that Pristina has an important share of responsibility in the latest events. So, we invite Kosovo to take stock of the situation and exert all possible efforts to enable a productive dialogue and to return to agreements. For example, municipal elections in the municipalities of North Kosovo that are boycotted by the Serb population do not represent a lasting political solution. They have to be reorganised with the full participation of the Serb population. That’s what we will be working on to make sure that we can return to the original agreement that is still in place and is still binding for both parties. We will make sure that it will produce the expected effects.

It has been announced that France, and President Macron in particular, will have increased involvement regarding Kosovo in the future. Will this involvement prioritise the formation of the Community of Serb Municipalities or concessions on the Serbian side, in the form of Serbs returning to institutions, which is an insistence of the U.S.?

— Of course, in this approach concessions are expected from both sides, but what was already decided and agreed upon in 2013 and 2015, in terms of the Association of Serb Municipalities, is clearly a priority. It must be implemented forthwith. That’s not only the message of France and Germany, but rather is the message of the whole of the EU and the United States. So, yes, it’s a step to be taken immediately. The return of Serbs to Kosovo institutions – be that the police, the judiciary and municipalities – is also important and we have all witnessed the negative impact of their withdrawal. There is a vacuum that allows unilateral steps to be taken and that’s partly the explanation for the current situation. So, both are important, but discussion of the Association of Serb Municipality must start immediately and implementation must come soon.

Given that you often emphasise that there will be no overlooking of Serbia’s obligation to strengthen its democracy and institutions on its path to EU membership, how do you see the current political situation in the country, marked by mass protests among citizens?

— Rule of law is a key milestone on Serbia’s journey towards the EU. We want to give impetus to new momentum in this process of Serbia achieving full membership, but that doesn’t mean the rule of law, functioning institutions, the separation of powers and so on being neglected or downgraded in terms of importance. In order for that to remain a key element, we are looking very carefully at positive reforms already implemented and other reforms that are planned for the coming months. That will, of course, be an important part of all these equations. I would not like to comment on internal political developments: that’s up to the Serbs to decide. Coming from a country where mass protests are not rare, all I can say is that I think that, provided they don’t descend into violence, mass protests may be considered part of lively democratic life at the same level as a functioning parliament, functioning institutions, pluralist media landscape etc. All that is part of democratic life, again provided violence is clearly excluded.

When it comes to economic cooperation, you stated recently that the full potential for further economic cooperation between the two countries has not been utilised. France is present in Serbia in the sectors of environmental protec- tion, wastewater treatment, and major infrastructure projects, with more than 100 French companies operating in Serbia. Which new areas do you see as having the potential to further develop bilateral cooperation?

— There’s great potential. We've done well over previous years. Our bilateral exchanges have tripled since 2010 and now total around 1.6 billion euros, which is a more than 30% increase compared to last year. We have more than 100 French companies here and they are employing a lot of Serbian people, so all that is positive. Our main sectors of activity are wastewater treatment, waste treatment, the environment, infrastructure and so on. There’s also a strong French presence in the area of automobiles and vehicle equipment. Just to mention the fact that Hutchinson, for example, will increase its presence, while Michelin has now extended its capacities in Pirot. We have a lot of mechanical industry players, like Mecafor and so on. There’s also another important sector in the form of the agri-food industry, where we have major companies like Savencia, Lactalis and Axereal that are mainly present in Vojvodina. Renewables also represent a sector that’s of great interest to us and one in which we’re sure French companies will be increasingly present. We already have a large, modern project in the field of the solar power industry. And another sector is IT. Just to mention the fact that I recently inaugurated, together with the Prime Minister, the new Novi Sad hub for Schneider Electric worldwide, which is a very well-known company. And here in Novi Sad they will be producing software that will be exported all over the world and will help make the electrical network much more effective. They will also be present in Serbia.

In your capacity as ambassador, you are heavily engaged beyond Belgrade. You signed the Convention on Cooperation in Kragujevac and provide support to the City of Niš in organising its public transport system based on the model of Nice, while you also led ambassadors of francophone countries in their visit to the City of Cacak, which is this year’s Serbian capital of culture. How do you see Serbia from that perspective?

— Everywhere, but especially in Serbia, local authorities have a key role to play in addressing important challenges like the environment, mobility, and so on. That’s why we are trying to increase our ties with local authorities here. They also have an important role in allowing for an active civil society at the local level to also promote culture through popular culture for everyone. That’s why we also try to forge links between French and Serbian local authorities. This is even more important, for example, through the seminar of municipalities at which they can exchange their environmental protection solutions, promote energy efficiency etc. This seminar has been a huge success, with a lot of Serbian and French local authorities coming to hear – initially in Niš, Novi Sad and Belgrade – exchanges and also bilateral visits. In the important field of culture, I very much enjoyed the visit to Čačak together with my francophone colleagues. We also brought French artists to this city, and having an annual capital of culture for Serbia is a very good initiative. I would also like to mention the fact that, as you perhaps know, France will be the guest of honour country at the upcoming International Belgrade Book Fair in October. We are happy to see that a lot of French local authorities are interested in coming and bringing their own… let’s say ‘assets’. We will certainly have Ille De France and Rhones Alpes (City of Lyon) presenting at our stands and also showing the local dimension of France dynamism.

Optimistic With Reason

The trade exchange between Serbia and France is experiencing continuous growth, while the number of French companies and French partners interested in investment in our country is on the rise. These positive trends fill us with optimism and represent inspiration for our work ~ CCIFS President Dragan Stokić

The number of French companies operating in Serbia has been increasing ever since the signing of the Stabilisation and Association Agreement with the European Union, as has the number of inquiries from French companies interested in launching their operations in Serbia, says Dragan Stokić, president of the French-Serbian Chamber of Commerce and Industry (CCIFS). These developments have resulted in a threefold increase in the volume of trade between Serbia and France over the last 12 years, with bilateral trade reaching a value of 1.6 billion euros in 2022. And that growth was up 29 per cent compared to the previous year alone.

“Moreover, if we take into consideration the involvement of French companies in capital infrastructure projects in Serbia (Belgrade Airport, waste treatment project in Vinča and the Belgrade metro), we are optimists when it comes to the volume and expansion of bilateral trade and we hope that the value of the total trade exchange will soon exceed the figure of two billion euros,” says our interlocutor.

To what extent are changes on the world market, and the responses of French companies to those changes, relevant to your activities in Serbia?

— Globalisation has contributed to us being networked/interconnected, but also to us being simultaneously dependent on one another, and to changes on the world market influencing changes in individual countries to a certain extent. When it comes to French companies in Serbia, we can say that these changes are limited. They relate more to the initial decision of French companies to start doing business in Serbia generally. French companies are now more cautious when it comes to making such decisions, considering all possible scenarios and not taking lightly the decision to enter any market. On the other hand, it should be noted that those companies that already operate in Serbia continue to conduct their activities without hindrance and are not impacted to a great extent by changes on the world stage and geopolitical challenges.

Given the repositioning of major value chains, how relevant is the Western Balkan market for French companies under these new conditions?

— The fact that the value chain is shifting and that European companies are seeking alternative solutions when it comes to their supply chains is actually beneficial to Serbia, because it positions our country as a potential destination for new FDI. Serbia is recognised as a traditional industrial country with a high-quality workforce, and if we add to this it’s good geographical position, developed transport infrastructure, favourable business climate, and the gov- ernment’s willingness to accommodate investors through various subsidy programmes, we can say that the repositioning of the value chain can benefit Serbia. tions of companies in these cities. This campaign helped us to establish significant contacts and familiarise ourselves with local institutions and projects, but also helped us present to our member companies the potential of the region in Serbia. This was one more wonderful way for our members to connect, establish joint cooperation and perhaps decide to take advantage of the potential

To what extent did the “Bonjour Serbia” campaign help to better acquaint you with Serbia’s potential and to present, in a targeted way, the potential of the local market to French companies?

— Under the scope of the Bonjour Serbia event, we visited Kragujevac, Niš, Kikinda and Zrenjanin. Members of our Chamber had an opportunity to meet with institutional and business partners, and to better acquaint themselves with the opera- that regions across Serbia offer to expand their operations.

You stated at this time last year that you respond to challenges with enthusiasm and hard work, and that nu- merous objective challenges can be overcome with an intelligent combination of measures, the dedication of the business community and good cooperation with the Government of Serbia. How would you rate the current economic juncture from that perspective?

— We entered 2022 optimistically, believing that last year would bring us many more opportunities and fewer challenges to doing business. However, the business world is unpredictable, and we are learning with each year to adapt to new changes and utilise them to make progress. Happenings at the world level and in our country, as well as the uncertainty and unpredictability they bring with them, prompt us to change our business strategies and decisions, to take risks, in order for us to be the best in what we do despite all the tribulations. By encouraging mutual cooperation and the strength of the community, we strive to improve the state of the economy and ease access to the market for French companies.

How does the clear slowdown in Serbia’s economic growth reflect on the operations of French companies in our country?

— Just like other countries in the region and further afield, Serbia is experiencing slower economic growth. The reason for this is largely high inflation, which is reflected in the reduced pur- chasing power of the population, and that consequently impacts companies’ business revenue. Despite these negative circumstances, the vast majority of French companies in Serbia carry out their activities unhindered. Slow economic growth does influence decisions to invest and expand operations in Serbia. Such situations cause companies to be more cautious with investments and often prompt decisions to delay expansion plans.

Over the past several years, numerous chambers – acting both independently and in unison – have influenced the improvement of the business climate in Serbia. What changes are you focused on today and to what extent are they understood by the Serbian administration?

— These same initiatives remain current at the level of the Chamber. We listen to the needs of our member companies and try – through the good communication that we have with the relevant government bodies – to suggest the consideration of certain economic laws that would primarily help companies carry out their activities unhindered. Our Chamber commends the state bodies on their cooperation; they always happily respond to our invitations to organise meetings with members and respond to every inquiry we make quickly and with precision.

Synergy

By encouraging mutual cooperation and the strength of the community, we strive to improve the state of the economy and ease access to the market for French companies

Caution

Serbia is facing slower economic growth... Such situations cause companies to be more cautious with investments and often prompt decisions to delay expansion plans

Connecting

The “Bonjour Serbia” campaign was a wonderful way for our members to connect, establish joint cooperation and take advantage of the potential for expansion offered by regions across Serbia