June 2024, Issue No. 236

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“CorD - 20 Years of Independent Thought and Inspiration”

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Ljubica Gojgić

Zoran Panović

Radmila Stanković

Maja Vukadinović

Mirjana Jovanović

Miša Brkić, Rob Dugdale

Steve MacKenzie

Zorica Todorović Mirković

Sonja Ćirić, Miloš Belčević

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COMMENT

Growth Plan

By Zoran Panović

Late April saw the European Parliament give the green light to the Growth Plan for the Western Balkans, with the Council of the European Union duly adopting it in early May and thus formally concluding the procedure. As announced from within the EU, the Growth Plan will support reforms linked to the region’s EU accession and improve economic growth. Aid totalling six billion euros will be provided to the region through the scope of this new financial instrument. This plan was also promoted at the most recent summit between the EU and the Western Balkans in Kotor as the “Kotor Cream Pie”, which was preceded by the “Bled Cream Pie” at the previous summit held in the town of Bled

he Kotor Cream Pie basically differs from the traditional (and Bled) cremeschnitte in that it is made with three layers of pastry instead of two. If the Bled cremeschnitte arrived in Slovenia from Vojvodina, Kotor folk will tell you that their recipe was brought by Italians. The European journey of the countries of the region is seemingly a cream pie with seven pastry layers, because in these lands it is said that arduous work and a hard road are earned as “bread with seven crusts”. Okay, at least cream pie – as a beloved delicacy – still sounds better than a carrot – in the context of the old “carrot and stick” metaphor for the method used by the “collective West”, as Putinophiles like to say, to talk with the Western Balkans, or more specifically with the Serbs and the Serbian element in the region.

TSpeaking at September 2023’s Bled Strategic Forum, European Council Pres-

ident Charles Michel stated that the EU and the Western Balkans should be ready for enlargement by 2030. That’s even worse than “Junker’s date” (referring to former European Commission President Jean-Claude Juncker), according to which Serbia (together with Montenegro) could become an EU member state in 2025 (which now sounds ridiculous), but is nonetheless better than “Mitsotakis’s date” (refer-

The wars of Yugoslavia (Titoland) weren’t

civil wars, but rather ethnic and religious conflicts. This should also be considered with the Growth Plan for the Western Balkans, because normalisation cannot be achieved by hiding the taboo war narratives of the ‘90s behind economic prosperity and forced resolutions

ring to current Greek Prime Minister Kyriakos Mitsotakis), according to which Serbia would only join the EU in 2033. And that is independent of the fate of other Western Balkan countries. The only worse assessment than this one was recently given by former Slovenian President Borut Pahor, who is offering himself up to suc-

ceed Lajčak as the EU’s special representative for Kosovo and who stated that, if developments continue at the current pace, the region won’t be in the EU even by 2050 – or just a year after the year in which Denis Villeneuve’s Blade Runner sequel is set.

The wars of the 1990s in Yugoslavia (Titoland) did not start due to poverty, but rather because of frenzied nationalism. These weren’t civil wars, but ethnic and religious conflicts. This should also be considered with the EU’s Growth Plan for the Western Balkans, because normalisation cannot be achieved by hiding the taboo war narratives of the ‘90s behind economic prosperity and forced resolutions, or that one UN resolution regarding the Srebrenica massacre. That would be a deceptive normalisation akin to Tito’s modernisation that was conducted by sweeping under the carpet some of the episodes and magnitudes of World War II in these lands. That is not sufficient, just like Angela Merkel’s Berlin Process.

Vučić downplays euro-optimism with his cynical (Euro-realism) suggestion that Serbia won’t be able to join the EU before Ukraine. Is that really more realistic than the hope that Serbia would join the EU together with Croatia, as could have been heard at the 2003 EU Summit in Thessaloniki?

Only Inclusive Societies can Grow Sustainably

Jakob Granit

Director General of the Swedish International Development Cooperation Agency (SIDA)

Inclusiveness, equity, gender balance and respect for nature represent the core values woven into all SIDA-supported projects. In striving to foster a society that leaves no one behind, SIDA draws on Swedish and EU values as guiding principles in its efforts to aid Serbia’s development

We often touch on initiatives that are aided by diverse donors in our conversations, yet we seldom explore the fundamental philosophies guiding their support. During our discussion with Jakob Granit, Director General of the Swedish International Development Cooperation Agency (SIDA), we delve deep into SIDA’s overarching intervention principles, alongside the Swedish and EU values driving this agency’s sustained backing of reforms. This interview makes it clear that these interventions frequently adopt innovative methodologies and digital tools in an effort to optimise efficacy, precision and outreach.

After many years of discussing the emigration of Serbian citizens, we are now talking about circular migration and your support for talented young Serbs coming home after forging successful careers abroad. What does this project entail and what is the logic behind it?

— The project’s primary objective is to cultivate an environment that nur-

We are proud to support NALED’s project, which aids Serbia’s growth through the Regulatory Index of Serbia (RIS), assessing regulatory predictability and efficacy

tures innovation and prosperity by actively involving the Serbian diaspora, facilitating the return of skilled individuals and promoting innovative economic opportunities.

Excessive emigration presents a serious challenge, with potentially significant development consequences for a country. It causes disruptions in labour, healthcare, pension and other large public systems; it exacerbates regional developmental differences, depletes human capital for innovation and development; and changes environmental conditions in specific areas. That’s why circular migration can contribute to Serbia’s sustainable and inclusive development.

The project is being implemented by Returning Point and UNDP, both

of which already have some experience of approaching depopulation in this manner. What do you see as a particular Swedish approach that may further enhance the efficacy of this initiative?

The Swedish government sees important synergies between development cooperation and migration, which should strengthen the positive impacts of returning migrants. Development not only encompasses economic growth, but should also ensure that the benefits are shared equitably among all segments of society, including marginalised groups. Leaving no one behind is a purpose in all Swedish development cooperation.

An environment conducive to innovation and prosperity can be created by engaging with the Serbian diaspora, facilitating the return of skilled individuals and promoting innovative economic opportunities. This enabling environment will also encourage members of the diaspora to participate in Serbia’s development efforts.

INCLUSIVENESS

Development doesn’t only encompass economic growth, but should also ensure that the benefits are shared equitably among all segments of society, including marginalised groups

Could you elaborate on any potential challenges or obstacles that SIDA anticipates encountering during the project’s execution, particularly in relation to depopulation and migration dynamics in Serbia?

— The success of this project depends on actors like the government and the diaspora expressing an interest in participating and engaging. There are then many factors that must be considered. It is important to understand why people migrate from a country in the first place, and then to address these root causes. Additionally, a country needs to deliver on its social contract in order to retain young and talented people. This means investing in the environment, healthcare, education, the level of freedom and social inclusion, as well as socioeconomic equality.

Given the significant Serbian diaspora in Sweden, how does SIDA envisage leveraging their expertise and resources to enhance this project’s effectiveness?

— We certainly hope that the Serbian diaspora in Sweden will be interested in engaging in this project and sharing their insights and possible learnings from living in Sweden. We now need to reach out and inform them about the project.

How does the Circular Migration project align with SIDA’s broader goals and objectives for development cooperation in Serbia?

— All Swedish development cooperation in Serbia aims to support Serbia’s EU accession, focusing on democracy and human rights, peace, environment, and inclusive economic development. We cooperate with different actors in the Serbian society, such as

IMPACT

Sweden is among the world’s most gender equal countries and we are proud to have contributed to increased gender equality in Serbia

civil society, international organisations, academia and institutions, to implement our development assistance, while we also involve and coordinate with the private sector when suitable. For example, support to EU accession reforms is prioritised and addressed in all projects, including this Circular Migration project. Through its various activities and objectives, the circular migration project will play a role in supporting Serbia’s EU accession process. The project activities address key areas related to governance, economic development, inclusivity and alignment with EU standards and values.

Another fundamental aspect of EU membership is the EU’s free movement principle, which allows citizens of EU member states to move freely within the EU for the purposes of work, study or retirement. This project is a step towards realising this principle.

What major successes have you observed in your support for the three thematic fields of administration training for officials, more effective policing and increased transparency in the justice system?

When it comes to the continued development of officials and our support to the National Academy for Public Administration (NAPA), I think the ability to provide cutting-edge training is worth mentioning. Modern learning techniques like e-learning have been introduced and NAPA’s courses have been designed to meet the specific needs of civil servants, like training in EU-related topics, ethics for civil servants, anti-corruption etc. These have been attended by more than 77,000 public civil servants from across the country.

CREDO

A country must fulfil its social contract by investing in the environment, healthcare, education, freedom, social inclusion and socioeconomic equality to retain young and talented individuals

Turning to justice sector reform, I believe that our support has contributed to Serbia’s steady progress in areas such as the improved independence and efficiency of the courts, including the reduction of backlogs and the introduction of more streamlined judicial procedures. There has also been improvement in the quality of court services, enhanced institutional capacities, increased use of evidence-based strategies and decision-making in the justice sector, and improved access to justice. I would like to mention in particular the project on improved public procurement implemented by the NALED organisation. This is a project that aims to support competitiveness and private sector led growth in Serbia. One interesting part of the project is the development of the Regulatory Index of Serbia (RIS). This is a tool that

The National Academy for Public Administration (NAPA) receives support from SIDA in offering cutting-edge training to over 77,000 civil servants nationwide

provides insight into the predictability and stability of the Serbian regulatory framework. RIS assesses the whole law-making process, from the preparation of a law, through the method of adoption, the speed and cost of implementation, to the final monitoring of its effects, pointing to possible systemic flaws in its various segments. RIS identifies continued challenges in relation to efficacy in the implementation of laws and the administrative burden related to the implementation of the law on companies. Cooperation between the Serbian and Swedish police started as far back as 2004. The project focuses on core

police activities, such as the establishment of a National Forensic Training Centre and a Quality Management System for Crime Scene Investigations. It has also improved the collection of evidence and cross-sectoral cooperation in cases of gender-based violence and introduced Intelligence-Led Policing as a management model in all regional police directorates. This cooperation has grown to become a mutually-rewarding partnership benefitting both the Serbian and Swedish police forces.

I would also like to take this opportunity to mention our support to gender equality. Sweden is among the world’s most gender equal countries and we are proud to have contributed to increased gender equality in Serbia. The Serbian Government adopted the Strategy for Preventing and Combating Gender-based Violence against Women and Domestic Violence for the 2021-2025 period with support from the Swedish funded project Integrated Response to Violence against

Women and Girls in Serbia. This project has also contributed to initiating a full legal ban on child marriage and on corporal punishment against children, as well as several other important initiatives.

As the leading supporter of environmental protection in Serbia, where do you primarily focus your efforts and investments?

— Sweden currently provides direct support to the Ministry of Environmental Protection in three projects.

Firstly, the Swedish Environmental Protection Agency is providing expert

We prioritise Serbia’s green transition by supporting projects aimed at aligning environmental standards with EU requirements, controlling industrial pollution and enhancing biodiversity, water protection and climate resilience

technical support to the Ministry in strengthening its capacities to address Chapter 27 of the accession negotiation process. The aim is to align Serbia’s environmental protection and climate change standards and policies with EU requirements.

Secondly, we support the project Green Transition: Implementing Industrial Emissions Directive, which is being implemented by the Centre for Cleaner Production within the scope of the University of Belgrade in order to improve the prevention and control of industrial pollution. Thirdly, as part of the broader EU for Green Agenda in Serbia initiative, Sweden finances the project EU for Green Agenda in Serbia: Protecting and Investing in Biodiversity and Water for Enhanced Climate Resilience. This Project focuses on biodiversity, watercourses and wetlands, as well as climate resilience in Serbia by improving the legislative and policy framework and by supporting further work on nature-based solutions.

More I taly in S erbia

Serbia is now among the few non-EU Countries to boast such a strong presence of the ‘Italian System’, underscoring this market’s strategic importance to us. The strengthening of Italy’s institutional presence in Belgrade has been accompanied by the launch of significant financial instruments to support investments by our companies and Serbia’s green and energy transition processes ~ Luca Gori

H. E. Luca Gori Ambassador of Italy

By Ljubica Gojgić

This year’s celebration of Italy’s national holiday also provides an opportunity to recall that it was precisely 100 years ago that the foundations of the embassy, located at the heart of Belgrade, were laid. Throughout this entire century, this embassy hasn’t only served as a venue for high level talks on politics and the economy, but also as a place to promote Italian culture, fashion, cuisine etc. “Italy, like many countries, embraces globalisation while nurturing its unique cultural heritage and values,” emphasises ambassador Luca Gori in this CorD Magazine interview.

Your Excellency, Italy celebrates its National Day on 2nd June. You have mentioned that this day is very significant because it is linked to the post-WWII renewal of Italy’s national identity. In today’s era of globalisation, where do national and identity issues stand?

— It is on 2nd June that we celebrate the date when Italians chose the Re-

public. This was a critical moment for our national identity. Over the past 20 years, globalisation has brought increased interconnectedness and cultural exchange, blurring traditional boundaries. However, rather than eroding national identities, globalisation has highlighted the importance of preserving and celebrating different cultures within a global framework. Italy, like many countries, embraces globalisation while nurturing its unique cultural heritage and values. Italy also promotes an inclusive identity that is part of European civilisation. The EU does not obliterate national identities, but rather welcomes and cherishes differences.

This year is marked by the “strengthening of the Italian system in Serbia,” which includes the opening of the office of the Italian financial institution for development cooperation, CDP. The Belgrade office, as mentioned during its opening in February, is the first of its kind to be

opened in a non-EU country. Could you outline the CDP’s priorities?

— Following the commitment made during the bilateral Business and Science Forum of March 2023, we opened the representative offices of SIMEST, SACE and CDP in Belgrade. Serbia is thus now one of the few non-EU Countries to boast such a strong presence of the ‘Italian System’, underscoring this market’s strategic importance to us. The strengthening of Italy’s institutional presence in Belgrade has been accompanied by the launch of significant financial instruments to support investments by our companies and Serbia’s green and energy transition processes. Italian financial institutions also participated in the second edition of the Business Forum held in Trieste last 24th May, which was opened by Italian Vice President Tajani and Serbian Prime Minister Vučević and attended by almost 200 Italian companies and 80 Serbian companies, with a focus on agri-tech, infrastructure and green and energy transitions. On

The inclusion of obligations arising from the agreements reached in Brussels and Ohrid in 2023 in Chapter 35 should be considered as an attempt to give new impulse to the process

that occasion, CDP – along with SACE and SIMEST – signed substantial new agreements with its Serbian counterparts, confirming our steady and solid commitment to Serbia.

Speaking in a previous interview with CorD Magazine, you stated that “economic relations between Italy and Serbia are not dependent on Serbia’s European Integration status”, but that Serbia’s approximation to the EU common market certainly “boosts the trade exchange”. In this regard, are you concerned about Serbia’s slow progress in its EU accession negotiations?

— The enlargement process is slow and I understand the Serbian people’s frustration. But there is a new scenario around enlargement today. The prioritising of this issue has returned, especially in light of changes in the European geopolitical landscape caused by the war in Ukraine. It is therefore time for a deep acceleration of the process of integrating Serbia and the Western Balkans into the European Union. Serbia must seize the restored momentum, utilising all tools made available by the EU, starting with the Growth Plan. Belgrade must take advantage of this new package because it aims to gradually integrate the region into the Single Market and can provide funding of up to six billion euros to the countries of the Western Balkans. Italy is confident that Serbia will be able to fulfil what is required of it by the EU to make substantial progress on its accession process, and we will continue to strongly support the process of integrating Serbia and the Western Balkans into the European Union.

IDENTITY

Italy promotes an inclusive identity that is part of European civilisation. The EU does not obliterate national identities, but rather welcomes and cherishes differences

What can be expected in Italy during June’s elections for EU institutions? Which parties will Italians support and will there be significant interest in participating in these elections?

— The European elections are among the largest democratic exercises in the world, involving over 370 million citizens across 27 member states. First and foremost, it is important that all EU citizens participate in this process. Democracy is indeed an achievement, but also a collective responsibility in which we all have a role to play. Europe is a vast system of values through which we have, over the years, built a context of security, prosperity and growth for all European citizens.

Whatever the outcome of the elections, we can be certain that the new European Parliament will continue to promote and operate guided by the founding values of the EU: peace, freedom, democracy, justice and respect for human rights.

How would you interpret the EU’s decision to supplement Accession Negotiation Chapter 35 with obligations to implement the Brussels and Ohrid agreements? Do you see this as further indication that non-recognition of Kosovo’s independence stands in the way of Serbia’s EU membership?

— Through the facilitation of Special Representative Miroslav Lajčak, the EU supported the conclusion of the “Agreement on the path to normalisation between Kosovo and Serbia” and its Implementation Annex. With this move, following a period conditioned by increasing tension on the ground between Belgrade and Pristina, the EU tried to create new momentum for both parts to achieve progress in the normalisation of relations,

RELATIONS

Following the commitment made during the bilateral Business and Science Forum of March 2023, we opened the representative offices of SIMEST, SACE and CDP in Belgrade EU

Serbia must seize the restored momentum, utilising all tools made available by the EU, starting with the Growth Plan

the fulfilment of which represents a prerequisite for both parties’ future membership in the EU. It is up to the parties to define the content of this normalisation. Therefore, the inclusion of obligations arising from the agreements reached in Brussels and Ohrid in 2023 in Chapter 35 should be considered as an attempt to give new impulse to the process.

An Italian MP in the Parliamentary Assembly of the Council of Europe voted against Kosovo’s membership in the organisation. Do you believe that Pristina has met the conditions for membership?

Italy is confident that Serbia will be able to fulfil what is required of it by the EU to make substantial progress on its accession process, and we will continue to strongly support the process of integrating Serbia and the Western Balkans into the EU

— Kosovo’s application for membership in the Council of Europe was not included on the agenda of the last meeting of the Committee of Ministers of this organisation. Italy, like other EU member states, believes that decisive progress on the establishment of the Community of Serb Majority Municipalities is necessary in order for Pristina’s request to be considered. By pursuing such a goal, the Kosovo Authorities can demonstrate their commitment to minority rights, thus strengthening Kosovo’s position and re-energizing the EU-facilitated Dialogue. We believe that this is the best way for Kosovo to pursue the success of its application.

Numerous cultural events organised by the Italian Embassy this year are tied to an interesting initiative. Could you explain what is behind the name “Birčaninova@100”? — Behind the name “Birčaninova@100” stands an initiative aimed at celebrating the centenary of the laying of the foundation stone of Birčaninova Palace, built at the behest of Queen Elena of Montenegro to house the Italian Embassy in Serbia. The Palace is the house of the friendship between Italy and Serbia. It symbolises the excellence of our relationship. This year also marks two other anniversaries: 145 years of the establishment of diplomatic relations between Rome and Belgrade; and 15 years since the signing of the bilateral strategic partnership. Moving from this important commemoration, we launched “Bircaninova@100” with a rich calendar of events dedicated to fashion, art, solidarity, design, music, cinema, language and so on. The initiative, created with the support of Unicredit Serbia and Banca Intesa Serbia, will unfold over the course of a two-year period.

Global Diary

“The principle of give and take is the principle of diplomacy - give one and take ten”

Mark Twain

Spain, Ireland, and Norway Recognize Palestinian State

Spain, Ireland, and Norway have officially recognised a Palestinian state, a move aimed at reigniting efforts to resolve the ongoing Middle East conflict. This collective decision seeks to encourage other European nations to follow suit, potentially aiding in achieving a ceasefire in Gaza and the release of hostages held by Hamas. However, this has led to a diplomatic fallout with Israel, which has accused the three countries of supporting terrorism and responded by recalling its ambassadors and issuing formal reprimands to their envoys in Tel Aviv. The recognition has also intensified diplomatic pressure on Israel, especially after two international courts demanded an end to IDF operations in southern Gaza and accused Prime Minister Benjamin Netanyahu of war crimes.

New York Crowned World’s Wealthiest City with Over 359,000 Millionaires

New York has been declared the wealthiest city globally, boasting 359,500 millionaires and 60 billionaires, according to a report by Henley & Partners. The city’s millionaire population has surged by 48% over the past decade, with New Yorkers now holding wealth exceeding $3 trillion—more than the GDPs of Brazil, Italy, or Canada. The United States continues to widen its lead as the world’s top creator of millionaires and billionaires. It hosts 11 of the top 50 wealthiest cities worldwide. The past decade has seen a significant increase in tech wealth, alongside stock market gains and business deals, generating unprecedented wealth levels. Meanwhile, Tokyo, the wealthiest city a decade ago, now ranks third, while London, a long-standing leader, has fallen to fifth place and for the first time, China has broken into the top 10.

Putin Inaugurated for New Term in Kremlin Ceremony

Russian President Vladimir Putin has been sworn in for a new six-year term in a ceremony held at the Grand Kremlin Palace. During his inauguration, Putin declared Russia would emerge stronger and victorious from its current challenges. Having continuously served as either Prime Minister or President since 1999, Putin secured a convincing victory in the presidential elections this March. The ceremony was notably boycotted by the United States and several Western countries in response to the ongoing war in Ukraine.

“In international relations, you don’t base your work on hope”

Federica Mogherini

Macron Advocates for Consolidation of European Banks

French President Emmanuel Macron has voiced his support for greater consolidation within the European banking sector, suggesting that a major French bank might need to be acquired by a European rival. In a televised interview with Bloomberg, Macron emphasised the need for a unified European capital market, arguing that the current fragmentation within the banking sector is hindering the bloc’s growth. Macron’s comments coincided with the annual “Choose France” summit at the Palace of Versailles, where he welcomed worldwide CEOs. The summit concluded with commitments to invest a record total of 15 billion euros in the French economy, underscoring Macron’s ongoing efforts to attract global business to France.

North Macedonia Gets Its First First Female President

Klaus Schwab Steps Down as WEF Leader After Over 50 Years

In North Macedonia, the conservative opposition coalition VMRO-DPMNE has declared victory in both the presidential and parliamentary elections. Gordana Siljanovska-Davkova, the VMRO-DPMNE candidate, won approximately 60% of the votes in the second round of the presidential elections, defeating incumbent President and ruling SDSM candidate Stevo Pendarovski. This victory marks her as the first female president of North Macedonia. In her post-election speech, Siljanovska-Davkova emphasised that her political focus will primarily be on the Balkans, and her first task in office will be to steer the country towards European integration.

Tech Industry Leaders Plan to Build Ultramodern City in California

Ambitious plans are in motion to create a cutting-edge city in rural Solano County, a 90-minute drive from San Francisco. The California Forever project, championed by influential figures in the tech industry, envisions a transformation of 60,000 hectares of agricultural land into a modern city capable of housing up to 400,000 residents. The project’s commitment to inclusivity and accessibility is commendable, offering a promising vision for the future of urban planning. However, the project does face challenges, with a potential hurdle in the form of a law restricting building, which will be put to a vote in November.

Klaus Schwab, the founder and long-standing leader of the World Economic Forum (WEF), has decided to step down after more than 50 years in charge. This move marks a significant shift in the governance of the influential global institution renowned for its annual gathering in Davos. According to a statement released by the WEF, this transition is part of a multi-year strategy to change its leadership structure by transferring powers to its President, Borge Brende, and the Board of Directors. Since its inception in 1971 by Schwab, a German engineer and economist, the Forum has evolved from a mere platform for networking into a pivotal institution for public-private cooperation.

“THINKING GREEN & LIVING CLEAN” CONFERENCE

Green Transition as an Opportunity

The Thinking Green & Living Clean Conference took place in mid-May marking the release of the 10th edition of CorD Magazine’s special publication of the same name

The conference, dedicated to the green transition, featured discussions on the “EU for Green Agenda in Serbia” project, which is implemented with the technical and financial support of the European Union and in partnership with the

Ministry of Environmental Protection by UNDP in collaboration with the Swedish Embassy and the European Investment Bank (EIB), with additional financial support from the governments of Sweden, Switzerland, and Serbia.

Key topics at the conference included aligning EU candidate countries with the European Green Agenda, Serbia’s initiatives, the supportive role of the Growth Plan, sustainable practices, energy-efficient technologies, innovations by individual companies, waste

Till Barmeier, Project Leader “Promotion of sustainable energy sources and energy efficiency in Serbia”

Jelena Puzović, PhD, JVP Srbijavode, Head of the Public Relations and International Cooperation Sector

Neda Lukić, CorD Editor in Chief

Alessandro Bragonzi, Head of the Regional Office of the European Investment Bank (EIB)

management, and sustainability. Notable speakers included H.E. Annika Ben David, Swedish Ambassador to Serbia; Nicola Bertolini, Head of Cooperation at the EU Delegation to Serbia; Sandra Dokić from the Ministry of Environmental Protection; Alessandro Bragonzi, Head of the EIB Regional Representation for the Western Balkans, and Yakup Beris, UNDP Resident Representative in Serbia. The discussions were moderated by Ljubica Gojgić.

H.E. Annika Ben David highlighted Sweden’s experiences with the green transition, emphasising the importance of education on environmental preservation from an early age. She noted that citizens are encouraged to make informed choices and view green projects as sources of economic growth. “We have come a long way, learning much along the way, and we see the green transition as an opportunity. Today in Sweden, buses run on biogas; 98% of our electricity comes from renewable sources, and our goal is to eliminate greenhouse gas emissions by 2045. While the shift away from traditional energy sources initially led to job losses, it also created new professions, jobs, increased exports, and stable GDP growth,” she said.

Nicola Bertolini remarked that as an EU candidate, Serbia has a long road ahead

H.E. Annika Ben David, Ambassador of Sweden to Serbia

Sandra Dokić, representative of the Ministry of Environmental Protection

Nicola Bertolini, Head of the Cooperation Department of the Delegation of the European Union in Serbia

but has shown progress. When asked about the potential opening of lithium mines in Serbia, he stated that the Serbian citizens should make the decision.

“President Vučić has said that Serbia’s potential lithium mines could meet up to 20% of Europe’s lithium needs and supply up to one million electric vehicles annually. However, environmental protection and concerns must also be addressed, ensuring full implementation of better ecological laws for local residents,” he emphasised.

Sandra Dokić from the Ministry of Environmental Protection stressed the crucial support of the European Union in helping Serbia achieve standards set out in negotiation Chapter 27 and in developing infrastructure projects to protect the environment.

“Serbia has seriously tackled environmental protection only in recent years, making significant legislative advancements and securing investments for concrete projects in waste management, and reducing water and air pollution,” she said, highlighting the importance of collaboration between various ministries.

Alessandro Bragonzi, EIB Head of Regional Representation for Western Balkans, thinks the struggle the world is facing to reach the target of reducing emissions shows that the formula does not really exist; there are ambitions, actions to be undertaken.

H.E. Mohammed Amine Belhaj, H. E. Jaewoong Lee, Ana Novčić CorD CEO, Aleksandar Ljubić FIC CEO

Ljubica Gojgić, journalist, moderator

Jelena Petljanski Kiš, Sustainability and Public Affairs Manager, Ball Packaging Belgrade

Srđan Tomić. Head of Technical Department at ACO gradjevinski elementi

“According to the International Energy Agency, only 30% of investments can come from the public sector; 70% has to come from the private sector. Now, not as a formula, but a sensible approach to this, and I think this is what is adopted by the Western Balkan countries with the Sofia Declaration and the alignment to the Green Agenda, is that, first of all, you tackle it at the level of the policy, through the Ministry and the implementation of the adequate laws, regulations, bylaws. That creates, as the second step, an enabling environment which allows not only for public investments to be undertaken in efficient way, but

also creates competitiveness in the market for private sector investments and, for example, we can talk about the advancement Serbia made with the auctions for renewable energy”, he remarked.

He further underlined the importance of setting up clear decarbonisation targets when it comes to Serbia, specifically in the energy, manufacturing and transportation sectors.

Yakup Beris from UNDP emphasised Serbia’s significant potential and the need for collective effort in the green transition. “Everyone should contribute as they can. For example, the ‘Mi-

hailo Pupin’ Institute created an installation at the Ušće Shopping Center that uses the kinetic energy produced by cars to power air purification installations. This is their contribution, and it’s up to us to understand the concept of green energy and the Green Agenda and feel the need to contribute in our own way,” he said.

Jelena Puzović, PhD, from Srbijavode discussed climate change impacts, risks, and responses, marking the tenth anniversary of the major floods in Serbia. “Our company undertakes numerous activities to address the challenges posed by climate change, including irrigation projects and flood and torrent

protection works. In the past decade, systemic changes have been improved to prepare Serbia for the consequences of climate change,” she noted, stressing that progress means moving toward a safer future.

Till Barmeier, project leader for “Promotion of Sustainable Energy Sources and Energy Efficiency in Serbia,” introduced GIZ’s support for households and companies transitioning to solar energy. “The solar panel introduction project we supported isn’t a new idea, but it is new that in 2021, the Serbian government legally enabled citizens to produce green energy for their consumption and become prosumers (producer-consumers). Although these investments are significant, they are worthwhile, which every prosumer can immediately see in their electricity bill,” he said.

Jelena Petljanski Kiš from Ball Packaging Belgrade, a pioneer in recycling in Serbia, spoke about the importance of a circular economy, recycling, and eco-friendly packaging. “Although our company can boast excellent results, we need to introduce a deposit system, which has raised recycling rates

to 90% in European countries. This is crucial for Serbia because there is also an economic aspect besides the primary ecological aspect,” she explained.

Srđan Tomić from ACO Building Elements discussed efficient water resource use, highlighting the need for a shift in mindset. “For Serbia to make significant progress in water purification and reuse, we must understand that water is not an unlimited resource. Unlike developed European countries, we spend enormous resources and energy on water purification only to release it back into rivers instead of reusing it,” he said.

Conference visitors had the opportunity to view an exhibition of Green Innovations, which, as part of the EU’s Green Agenda initiative, received funding to put their ideas into action.

Numerous diplomats, business community members, environmental experts and government officials attended the conference, all coming together to discuss and promote sustainable practices and the green transition in Serbia. The conference was also watched via live stream.

Green Innovations Exhibition

A Puzzle with Many Unfamiliar Pieces

In the process of shaping a new multipolar world, many countries – including Serbia – will find themselves constantly in a position to reconsider their relations with the major powers. On the practical front, issues of Serbia’s high exposure to Chinese debt, security challenges posed by new technologies, compliance with environmental standards, labour rights and investments all remain high on the agenda

Chinese President Xi Jinping’s visit to France, Hungary and Serbia, as well as German Chancellor Olaf Scholz’s previous visit to China, prompted

numerous responses in the public and in the media of the U.S. and Europe, including the Western Balkans. In our talks with several experts, we’ve attempted to scrutinise the

complexity of these relations on the security, economic and political fronts, as well as they ways they reflect on foreign policy relations between China, Russia and Serbia.

Dr Aleksandar Mitić

Research Fellow of the Centre for “Belt and Road” Studies at the Institute for International Politics and Economy

Cooperation with China Raised to the Highest Level in Europe

Both Germany and France desire close cooperation with China, so any criticism of Serbia’s close relations with China is an example of double standards

I was in Beijing during German Chancellor Olaf Scholz’s visit and I discussed President Xi Jinping’s visit to Paris with numerous experts and journalists who monitored his European tour. The basic impression is that the EU’s leading member states are trying, on the one hand, to observe Chinese investments through the Western visor of “securitisation”, i.e. through the threat of security implications – whether real or constructed. This, in turn, leads to numerous attempts to slow the penetration of Chinese products, primarily in the field of new technologies – such as electric vehicles and solar panels – that should be at the foundation of the European This could perhaps lead to praise from Washington and the protection of certain segments of industry, but it also brings into question the sincerity of the commitment of Brussels, Berlin and Paris to the green transition and globalisation based on free trade. On the other hand, when you visit Beijing’s E-Town quarter, which is home to the world’s first demonstration zone for autonomous vehicles in real traffic, and you are aware that the automobile cluster is led by Benz China, i.e., the Chinese subsidiary of Germany’s Mercedes-Benz, it becomes clear that German corporations have no intention whatsoever of turning their back on extremely profitable and successful cooperation.

The situation is similar with France. According to data from the Ministry of Commerce, French FDI in the Chinese economy increased 586% in the first two months of 2024. In such a context, the pressure being applied to Serbia and other countries of Central and Eastern Europe to refrain from intensifying cooperation with China seems improper, to say the least. Those who fail to resist the applying of double standards are left as the main losers. Serbia has raised the level of

its cooperation with China to the highest in Europe –with the community of China and Serbia for a common future in the new era, founded on four cornerstones: political and economic cooperation; a culture of remembering the NATO aggression of 1999; a common view of the future world order based on international law and multipolarity, as opposed to “Western rules”. It is well known that Serbia isn’t aligned with the EU’s restrictive measures against Russia and China. Cooperation with Russia has come under special pressure from Brussels over the last two years, while we’ve also seen collateral negative effects, such as the inability to import Russian oil by sea (JANAF pipeline)

We so far haven’t seen the same intensity of threats to Russian cooperation when it comes to Serbia’s cooperation with China, and I hope that we won’t see it in the future

as a result of EU sanctions. This compelled Serbia towards energy diversification with the Hungary-Serbia oil pipeline construction project in order to join the “Fellowship”. We so far haven’t seen such intensity of threats when it comes to Serbia’s cooperation with China, and I hope that we won’t see it in the future. Still, within the scope of the COMPASS project, which is being funded by the Science Fund, researchers from the Institute of International Politics and Economy and the Institute of Social Sciences are currently working to analyse perspectives and threats to cooperation in the triangle of EU-Serbia-China relations.

Slobodan Zečević Ph.D full professor, scientific advisor at the Institute for European Studies

Delicate Seesaw

France and Germany have contrasting views on cooperation with China, but the internal reasons for such views don’t automatically relate to their stance regarding Serbian-Chinese relations

The talks held in Paris in early May between French President Emmanuel Macron and Chinese President Xi Jinping were also attended by European Commission President Ursula von der Leyen, but German Chancellor Olaf Scholz wasn’t present, despite having also been invited. Scholz had visited China earlier, in April, accompanied by a delegation of dozens of German business leaders. This fact testifies to the differences in the strategic approach of these two large European states. In essence, France favours raising European tariffs on Chinese technology products, such as solar panels, cars and similar products. The French opinion is that European companies are unable to develop new technologies as long as they are exposed to Chinese competition, which even enjoys subsidies from the Chinese state. Macron is also seeking equal conditions for European companies on the Chinese market, free of any form of discrimination.

There are major differences between the level of trade that Germany and France have with China, with one amounting to approximately 240 billion euros in 2023 and the other standing at slightly less than 100 billion. Following the loss of the Russian market, export-oriented Germans don’t want to jeopardise exports of their machinery and cars to China in any way, which is why they avoid threatening Chinese interests in Europe. The views of these two key EU member states regarding Serbia differ somewhat. The

French have slightly more understanding for Serbia’s vital economic and national interests. In this sense, it could be expected for the French side to show slightly more understanding for Serbia’s endeavours to increase its economic cooperation with China. Nevertheless, both the Germans and French fear China’s possible political influence in Serbia, which would come as a consequence of the increasing economic exchange between the two countries. As for Serbian relations with Russia, the approach is different

France could have slightly more understanding for Serbia’s endeavours to increase its economic cooperation with China

due to the fact that EU member states have imposed sanctions on the Russian Federation and are supplying Ukraine with weapons and humanitarian aid, but are also subsidising the Ukrainian budget. The EU and Russia practically find themselves in a kind of undeclared war. And it is in this context that EU member states would like Serbia to clearly distance itself from Russia, first and foremost by joining the European sanctions against this country.

Vuk Vuksanović Senior Researcher at the Belgrade Centre for Security Policy

Russia will be Challenging, but China is the Dilemma of the Century

The geopolitical and security rivalry between the U.S. and China will shape the international system, in which other countries, including Serbia, will face the major challenge of having to ponder how to position themselves

The latest round of talks between China and leading European countries like Germany and France shows that, for Europe, China remains a strategic dilemma that’s difficult to solve. China isn’t abandoning the European market, but it is still aware that relations have been disturbed, particularly following the Covid-19 pandemic and the outbreak of war in Ukraine. China chose to tour three European countries – France, as the EU’s de facto political leader, and Serbia and Hungary, as two countries with ruling elites who are open to China – in order to show that China continues to have influence in Europe. On the flip side, the EU still considers China as being increasingly important for the socioeconomic prosperity of Europe, but a threat is seen in China when it comes to the Asian giant’s potential ability to dictate global technology standards and the rules of international trade, as well as the prospects of it dominating global supply chains and international economic institutions. This is the main reason that the EU treats China as an economic partner while defining it in its strategic documents as a “systemic rival”; a rival that advocates for a different conception of the international system than the European one. In this respect, it isn’t such an anomaly compared to the rest of Europe that Serbia cooperates with China because it is aware that China is still on the rise in an economic sense. The moment Serbian cooperation with China becomes a problem is the moment Serbia cooperates with China in a way that’s perceived as China approaching from the position of a “systemic rival”. That’s when China erodes the EU’s appeal or implements projects that aren’t harmonised with EU

standards. However, it isn’t the EU that’s the main obstacle to the Serbian-Chinese partnership, but rather the U.S., which sees China as its only direct challenger in the 21st century. Serbia is already demonstrating its awareness of the American factor in its cooperation with China, with nobody talking anymore about Chinese companies installing 5G infrastructure in Serbia, while defence was one area not included in the memorandums exchanged between the Serbian and Chinese sides during the visits.

Russia is slightly different, as it was previously also a partner to many European governments. Still, given that we’ve seen the burning of bridges between

It isn’t such an anomaly compared to the rest of Europe that Serbia cooperates with China because it is aware that China is still on the rise in an economic sense

Europe and Russia since the original 2014 crisis in Ukraine, and especially after 2022, Serbian-Russian relations are starting to be perceived as a potential threat and a platform for Moscow to disrupt EU interests in the Balkans.

Russia will be a challenge, but China remains the dilemma of the 21st century, because the geopolitical and security rivalry between the U.S. and China will shape the international system, creating a geopolitical positioning dilemma for all other countries, including Serbia.

Business Dialogue

Bilateral Trade on the Rise Again

Patrizio Dei Tos President of Confindustria Serbia

Confindustria Serbia has established itself as a central point of reference for Italian companies and institutions in relations with Serbia. Its goal is simple: to work to make it easier for Italian companies to do business in Serbia

Patrizio Dei Tos firmly believes that growth is stronger where politics and businesses have discourse and cooperate. Our interlocutor has a lot of confidence in the Italian business community in Serbia, which represents a network of highly experienced professionals that has built strong knowledge of Serbian culture and society over past decades.

You have been at the helm of Confindustria Serbia for five years. Despite numerous challenges and global crises, have you managed to realise the plans and ambitions with which you took on this important role?

— I am an entrepreneur, so I’m used to starting conversations with numbers as the best way to express results. In December 2023, Confindustria Serbia had 200 member companies – the highest number since this organisation was established in 2012. Secondly, I am also satisfied with the strengthening of our offices: the president is the figurehead, but the quality of the association is provided by the dedicated work of the people who work in our offices every day. Their dedication and skills are the key to our results. Confindustria Serbia has established itself as a central point of reference for Italian companies and institutions in relations with Serbia. On the other hand, during the years that I’ve held the presidency of Confindustria Serbia,

I’ve felt the growing trust of the Serbian institutions and business community towards us and our work. It’s undeniable that we’ve been hit by “black swans” over the past five years, such as the pandemic and international crises, but, on the other hand, this climate has strengthened the general awareness of the importance of cooperation within the European continent. Italy and the Western Balkans are natural partners and, as president, it has been my job to work to make this natural affinity increasingly evident.

Could you explain your clearly defined strategy encompassing several key aspects?

— We work to make it easier for Italian companies to do business in Serbia. It is an all-encompassing task that covers the initial phases of the internationalisation process, but also daily problems arising from bureaucracy, legislative aspects, or relations with local institutions. The heart of our strategy is the strengthening of institutional relations with the Serbian authorities at all levels – from mayors to ministries. Confindustria Italia is based in Rome and has a direct relationship with Italian ministries, and is consulted by ministers when reforms are implemented. We have set ourselves the same goal for our offices in Belgrade: we firmly believe that growth is stronger where politics and businesses have discourse and cooperate.

As a long-term strategy in this sense, we recently launched a new platform of collaboration called “Confindustria per i giovani” (Confindustria for the youth), with the aim of fostering strong relations between young people in Serbia and Italy at all levels: academia, career growth, collaborations with Serbian companies operating in Italy and vice versa, and of course bringing young people into contact with institutions.

Economic relations between Italy and Serbia, which are characterised by decades of successful cooperation, are now gaining new opportunities to deepen even further. Which areas and sectors offer the best prospects for improvement? — As emerged during the Italy-Serbia Business Forum held in Trieste, trade between our countries in 2023 reached 4.5 billion euros. Growth is transversal across all sectors, both traditional ones, such as manufacturing or agriculture, but even more in areas

like IT and sustainability. As for Confindustria itself, we see extraordinary margins for growth in a circular economy, as in the entire agri-food chain. The latest edition of Wine Vision hosted more than 570 wineries and attracted great interest from Italian companies. Another sector in which Serbia has great room for growth is that of logistics and transport. Confindustria Serbia has been trying to keep pace with these tendencies, by launching an ESG Lab to offer concrete support to SMEs, but also by organising conferences and workshops on green tech solutions, as well as on transport and logistics. The real challenge will be to enhance advanced technologies, including artificial intelligence, to place them in the service of sectors in which Serbia already represents a natural partner.

As emerged during the Italy-Serbia Business Forum in Trieste, trade between our countries reached 4.5 billion euros in 2023

How important is it for potential Italian investors to receive encouraging messages from Serbia, to understand that they can count on the unwavering support of both our Government and Confindustria Serbia?

— It is crucial! Bottomline, this is my main job as president. It is for this reason that I always want to remember that, beyond my role in Confindustria, before anything else, I am an Italian entrepreneur who decided to invest in Serbia around ten years ago. I am satisfied with the choice I made, which is why I’m fully convinced to recommend it to anyone considering this country. The economic continuity demonstrated by Serbia, even through political crises, demonstrates the country’s maturity and its desire for growth. Furthermore, I have a lot of confidence in the work of our office and in the entire Italian business community generally, which can support not only Italian companies, but all European companies. The support of the Government, ministers and authorities has never been lacking. We have always found collaboration and pragmatism.

The second Business Forum of Serbian and Italian Entrepreneurs was held in Trieste recently and brought together more than 200 companies. How important are such events for our two countries and our cooperation?

— The Business Forum was a success. More than 15 representatives of our governments participated, including Italian Foreign Minister Antonio Tajani and Serbian Prime Minister Miloš Vučević. In addition to a strong political presence, there was a significant participation of financial institutions… SACE, SIMEST and CDP all have their own offices in Belgrade. This means that the Italian Government not only believes in relations with Serbia, but that it tangibly encourages companies to internationalise in this country. Five bilateral agreements were signed in Trieste, enabling the launch of concrete collaborations between Italy and Serbia in the sectors of infrastructure, energy, telecommunications and decarbonisation. The Forum provided a chance for over 150 Italian companies to meet potential partners and clients among the 100 Serbian companies that participated. “I also want to express my sincere gratitude for the excellent collaboration we have with the Embassy of Italy in Belgrade, H.E. Luca Gori and his team.”

Considering that Europe is increasingly opening up to the Balkans, does the intensification of relations between Italy and Serbia represent a crucial factor for enhancing stability and economic development in the Balkans? — We are natural partners thanks also to our geographical proximity. We must have the ability to see what the world will be like in ten years, and in that context I want to see Serbia in the European Union. That’s because the European integration process is not complete without Serbia. It has been said for years that the U.S. creates, China copies and the EU regulates. Europe must regain its role and position as the leading continent in the creation and production of ideas and products. We must have a common industrial strategy and must remove the obstacles – whether infrastructural or bureaucratic – that currently limit our ability to compete. But History has taught us that commercial relations aren’t always enough to stop wars. It is for this reason, besides the process of economic integration, that we need to work together to strengthen the common European spirit.

EXPO 2027 Calls for Cooperation

Annino De Venezia President of the Italian-Serbian Chamber of Commerce (ISCC)

The Chamber has recorded significant interest from Italian firms eager to explore opportunities at EXPO 2027, and I am confident in the enthusiastic collaboration between us for the purposes of this important event

In this CorD Magazine interview, we discuss with Italian-Serbian Chamber of Commerce (ISCC) President Annino De Venezia how Serbia can leverage Italy’s industrial expertise through the concept of specialised industrial districts. According to Mr De Venezia’s proposal, these districts aim to streamline training, waste management and regulatory compliance, while simultaneously nurturing entrepreneurial opportunities within

Serbia and thus presenting promising prospects for the country’s industrial advancement and economic growth.

“I believe it’s crucial to create specific areas, specialised in certain types of manufacturing. In other words, from my perspective, it would be suitable to establish so-called “monothematic industrial districts”. Why? For instance, because specialised schools and training institutions can be established

The

Council of European Business Associations and Chambers in Serbia is crucial for fostering partnerships between Italy (and other countries) and Serbia

near companies. Secondly, when it comes to managing industrial waste, it could be treated in areas located not far from the district, thus providing easily understood benefits like reduced waste transit on roads and highways, and therefore also a reduced risk of accidents and easier compliance verification of environmental and safety regulations by regulatory bodies, suggests our interlocutor. “We shouldn’t overlook the possibility for specialists within these districts to subsequently decide to start their own enterprises. And much more.”

How do CDP (Cassa Depositi e Prestiti), Simest, and SACE support Serbia’s growth prospects?

— SACE opened an office in CCIS in 2023 and we are happy to host them. This allows our members to talk directly to SACE’s managers, if needed.

SACE is the Italian insurance-financial group that’s directly controlled by the Ministry of Economy and Finance and specialises in supporting companies and the Italian national economic network.

SACE comprises: SACE FCT, which operates in factoring; SACE BT, which is active in the fields of credit, deposits and other damages to property; and SACE SRV, which is specialised in data collection and information asset management.

As I noted, SACE expanded to the Balkans in 2023 and today stands ready to assist our members and others.

CDP is a Joint-Stock Company with public control, while its main shareholder is the Italian Ministry of Economy and Finance. Minority shareholders are foundations with banking origins.

CDP supports the development of the Italian entrepreneurial network both at home and abroad. And this is the reason CDP arrived in Serbia. Through a range of financial, equity and advisory services, CDP helps with the growth of productive sectors and the acceleration of digitalisation.

It became the Italian National Promotional Institution in 2015.

SIMEST is the society of the CDOP group that supports Italian enterprises through the internationalisation of their activities. Its shareholders include CDP, as well as some Italian banks and entrepreneurial Associations.

I must highlight the fact that SIMEST supports companies throughout the entire expansion cycle abroad, while also contributing to the firms’ capital. I also have to note that SIMEST is a member of EDFI – European Development Financial Institutions, and is a partner of the main global financial institutions.

How do you perceive the opportunities presented by Expo 2027 in Belgrade? — Thanks to the considerable interest among companies that are planning to

We listen, evaluate and always give concrete answers to our members and those timidly approaching Serbia in order to gauge its potential

take advantage of the opportunities that EXPO will offer, CCIS has recently registered quite an interest from some Italian firms wanting to explore what EXPO has in store. I am very confident and assured that Italians and Serbs will work together towards this historic event with great enthusiasm. We are also working to provide maximum support to Italian firms that de-

Dialogue With Italy

cide to internationalise through Fondiexport, a digital platform created by the Italian Chambers of Commerce abroad that centralises tenders for internationalisation financed by Italian institutions, Italian Chambers of Commerce and regions. CCIS is ready to offer its full knowledge of Serbia.

How do your member companies evaluate the current economic trends, and what are their expectations regarding their operations in Serbia?

— As CCIS, we are recording a certain weariness and mistrust among companies and freelancers. This is primarily as a result of what history is giving us, i.e. the changed strategic and energetic equilibrium. These two factors give rise to problems linked to increasing industrial costs and so on. Only after returning to “normal” will it be possible to restore citizens’ trust in consumption and the future.

A memorandum was signed last 14 th May that established the Council of European Business Associations and Chambers in Serbia. This Council isn’t only crucial to the partnership between Italy (and other Countries) and Serbia, but also aims to ensure that foreign companies operating in Serbia do so successfully.

What possibilities does your association offer member companies? In which areas do they seek your assistance the most?

— We don’t have a set area of specialisation at CCIS. We are thus able to interact with existing and future members from every industrial and consulting sector. We are well-connected with our Assocameraestero system, which includes 83 Chambers spread across 63 countries worldwide, with more than 20,000 members. This implies that we have a prompt response for every member, who can also leverage our network.

The needs of Italian firms range from a simple contact to distribute Made in Italy products to the need to find a good location to establish potential industrial production. We listen, evaluate and always provide concrete answers to our members and those timidly approaching Serbia in order to gauge its potential.

Serbia and Italy Forge Ahead with €250 Million Wind Farm Ventures

Serbia and Italy have reinforced their energy partnership, marking the completion of three wind farms valued at €250 million and planning further renewable projects, highlighting their commitment to sustainable development at the Italy-Serbia Business Forum in Trieste

At the recent Italy-Serbia Business Forum held in Trieste, Serbia‘s energy landscape was thrust into the limelight, showcasing burgeoning collaborations with Italian companies that signify not just economic alliances but a shared vision for a sustainable future.

Dubravka Đedović Handanović, Serbia‘s Minister of Mining and Energy, extended a warm invitation to Italian enterprises, urging them to seize the enhanced investment opportunities within Serbia‘s energy sector. The call comes as Serbia, led by a delegation including Prime Minister Miloš Vučević, marked the completion of three wind farms—a joint project with Italian firms—valued at nearly €250 million, with ten more developments underway.

The energy transition process, according to Đedović Handanović, opens a new chapter for expanding Italian-Serbian cooperation. “We have refined our legislative framework, thus paving the way for diverse investment avenues in renewable energy sources (RES). Come November, we are set to launch new auctions for market premiums, offering about 400 MW capacity, pending market analysis confirmation,” she stated during her panel discussion on ‚Techni-

Serbia in a joint project with Italian firms completed three wind farms valued at nearly €250 million, with ten more developments underway

cal Innovations and Green Energy Transition‘.

Additionally, Serbian, Italian, and Chinese companies are spearheading one of Europe’s most ambitious photovoltaic projects, Agrosolar Kula. The project uniquely combines agriculture and energy production across approximately 700 hectares, signalling a dynamic approach to solar energy.

Serbian, Italian, and Chinese companies are spearheading Agrosolar Kula, one of Europe’s most ambitious photovoltaic projects, integrating agriculture and solar energy production across 700 hectares

The regional Trans-Balkan Corridor project was also highlighted, promising enhanced connectivity between the electric markets of Romania, Serbia, Bosnia and Herzegovina, and Italy. This initiative is poised to facilitate the integration of substantial capacities from wind and solar energy, projecting an addition of 3.5 GW by the decade‘s end.

Đedović Handanović also touched on the automotive sector›s green transition, noting the commencement of electric vehicle production by Stellantis in Kragujevac this year. This move aligns with strategic documents aimed at boosting the share of RES in transportation. Serbia›s rich mineral resources are seen as a pivotal asset in developing the electric vehicle industry.

Reflecting on the robust ties between Serbia and Italy, the minister expressed confidence that the forum would mark the beginning of new collaborations and initiatives. During the event, she signed a Letter of Intent for financial support with Italian insurance and financial group SACE, and Serbia‘s public power company, Elektroprivreda Srbije, inked a financial support program with Italian financial institution Cassa Depositi e Prestiti to aid decarbonisation and green transition efforts. These developments underscore a pivotal era for Serbia and Italy, as they harness shared goals for energy innovation and sustainability, reinforcing not only their economic bonds but also their commitment to a cleaner, greener future.

Returning Treated Water to the Danube

Here Milan Marković, General Manager of Smurfit Kappa Belgrade, shares his insights about the company’s legacy and innovative strides in environmental protection

Milan Marković

General Manager, Smurfit Kappa Belgrade

ounded in 1921 as the first paper mill in Serbia, Smurfit Kappa is now leading the way on the introduction of new technologies and solutions that boost production and safeguard the environment. Its cutting-edge water treatment system exemplifies the company’s

Fcontinuous investment in sustainable production and products, with significant upcoming investments planned to reach the goal of producing 200,000 tonnes of recycled-based packaging paper.

Your company last year opened its first wastewater treatment plant. Was this a significant investment?

— Upon our establishment in Serbia, one of Smurfit Kappa’s primary missions was to create the conditions necessary for environmental protection. As a socially responsible company, we are committed to ensuring that the natural resources we utilise are preserved for future generations in at least the same condition that we found them. Given the unique circumstances and the state of the Danube in Serbia, we currently return water to the river that’s cleaner than what we extract. The wastewater treatment plant constructed last year represents an investment of approximately five million euros. Despite the lack of immediate financial benefits, we internally aspire to achieve net-zero by 2050, which is the goal that drives our environmental initiatives.

Will Smurfit Kappa continue seeking even more innovative water treatment methods?

— This facility is one of the most modern and complex in Serbia at the industrial level. The water treatment project is the first of many planned projects that will have a direct positive impact on the environment. Upcoming investments include boiler plants, biogas and solar energy. We hope to soon utilise biogas, which is obtained as a by-product of the existing water purification process, and use it to reduce the amount of natural gas we consume in the coming period.

What plans did Smurfit Kappa have when launching its operations in Serbia?

— When Smurfit Kappa arrived in Serbia in 2019, it set three key goals for the paper mill. The first was to increase workplace safety and employ-

ee welfare, the second was to double production capacity, and the third was to accelerate the alignment of all technological processes with those of other European plants, with the aim of protecting the environment. The global goal of the Smurfit Kappa Group that we believe we will achieve locally is achieving net zero emissions by 2050. We currently process 150,000 tonnes of waste paper annually, basing our production process entirely on recycling, which makes us one of the largest recyclers in this field in Serbia and the region. We consider achieving this goal both realistic and attainable.

Through investments in technological processes, personal protective equipment, employee education and partner education, we are already well on our way to making safety a core

We process 150,000 tonnes of waste paper annually, basing our production process entirely on recycling, which makes us one of the largest recyclers in this field in Serbia and the region

value. We intend to continually create conditions under which our employees are satisfied and motivated to meet the challenges ahead. When it comes to the second goal, we have improved efficiency significantly, increased our production volume by 20% and enhanced product quality to the satisfaction of over 100 customers in 17 European countries. Our paper from Belgrade is used in packaging to protect and promote some of the world’s largest brands. Upcoming investments planned for the next two years will bring us significantly closer to our ultimate goal of producing 200,000 tonnes of packaging paper.

“We plan to invest over 150 million euros in the construction of a new petrochemical factory”

Kiril Tjurdenjev General Director of the NIS Serbia

NELT Group and UNICEF Partner to Equip Children with Essential Skills

NELT Group and UNICEF have announced a strategic partnership to provide essential 21st-century skills to children in Serbia, North Macedonia, Bosnia and Herzegovina, and Angola. Supported by a $1.3 million investment over three years, this marks the most extensive cooperation between UNICEF and a Serbian company. This initiative aims to ensure that the younger generation is equipped to thrive in the rapidly evolving digital era.

Sanja Ivanić Elected as CEBAC Secretary General

The inaugural meeting of the Council of European Business Associations and Chambers in Serbia (CEBAC) was held in Belgrade, focused on the election of the Secretary General and the future steps of the Council. Sanja Ivanić, General Director of the French-Serbian Chamber of Commerce, one of the 13 founding signatories, was unanimously elected as the Secretary General of the newly established Council for a one-year term. Ivanić’s role will be to represent the Council, communicate its decisions, positions, and proposals.

Serbia-Austria Joint Venture to Boost Balkan Logistics

Serbia’s Transfera, one of the largest logistics companies in the region, has partnered with the Rail Cargo Group, the freight division of the Austrian Federal Railways (ÖBB), to establish a joint company in Belgrade. The agreement, sealed at the Austrian Embassy, aims to advance intermodal transport development in the Western Balkans, enhancing the logistics sector’s efficiency and sustainability. Austrian Ambassador Christian Ebner praised the initiative as crucial for regional development and bilateral relations between Serbia and Austria. Transfera’s CEO, Duško Radović, expressed enthusiasm, predicting that the partnership will set new industry standards in logistics.

Golubac Welcomes First Wind Farm in Eastern Serbia

The “Krivača” wind farm, Eastern Serbia’s first wind park, has been ceremoniously inaugurated in Golubac. With a capacity of 105 megawatts and comprising 22 wind turbines, the farm is set to generate 310 gigawatt-hours of clean energy annually. This €165 million collaborative venture between Serbia’s MK Group and Slovenia’s Alfi Renewables marks a significant milestone in Serbia’s energy transition. The sustainable output from the wind farm will meet the electricity needs of 75,000 households, highlighting the crucial role of renewable energy in Serbia’s future energy landscape.

“This region boasts a highly-skilled workforce with a background in technical and engineering fields”

Petr Hermann President of the Schneider Electric cluster for SE

Lorenzo Mayol Takes the Helm as General Manager of Glovo Croatia

Celebrating five years in Croatia’s market, Glovo, a versatile platform offering on-demand access to a range of products and meals, has appointed Lorenzo Mayol as its new General Manager. Glovo, with its extensive network of over three thousand active partners and over two thousand delivery riders operating weekly, spans 30 cities in Croatia. During its five-year journey in Croatia, Glovo has solidified its position as a thriving tech company and a sought-after employer. It is driven by a dedicated team of over 50 employees who ensure the app’s consistently high performance. Lorenzo Mayol, known for his wealth of experience in management and business development at esteemed companies like HP, Lime, and Glovo, steps into this role to oversee Glovo’s continued growth and innovation in the Croatian market.

Croatia Grants 10 Adriatic Energy Exploration Licences

Croatia has recently awarded exploration licences to three groups, marking a significant step in its ambition to become a prominent energy supplier in the Adriatic region. The Marathon Oil consortium from Houston and Austria’s OMV secured seven of the ten licences, while two were granted to INA, jointly owned by Croatia and Hungary’s MOL. Italy’s ENI and MEDOILGAS clinched the remaining licence, announced the national hydrocarbon agency. The tender, encompassing 29 exploration blocks of varying sizes, attracted bids from six contenders. Economy Minister Ivan Vrdoljak disclosed that investments in these exploration activities are estimated at around 523 million euros ($629 million). Contracts are slated for signing by 2 April, with the exploration phase expected to span up to five years.

Albania Hosts Key Balkan Summit on EU Integration Goals for 2030

Tirana, Albania, hosted the third instalment of the BSC Leaders Meetings series, focusing on the topic “Albania and the Western Balkans in the EU by 2030: Tackling the Obstacles Ahead.” This event featured a panel of prominent figures, including Albania’s Prime Minister Edi Rama, Prof. Dr. Daniela Schwarzer from the Bertelsmann Stiftung, Majlinda Bregu, Secretary General of the Regional Cooperation Council, and Vessela Tcherneva, Deputy Director of the European Council on Foreign Relations. Nikola Dimitrov, co-founder of the Balkan Center for Constructive Policies – Solucija, moderated the discussion.

“MFIC is prioritising the green economy in 2024 as one of the core policy domains”

Arijana Nikolić Vučinić Executive Director of the MFIC

Slovenian Fund Acquires Majority Stake in Solvis

Slovenian investment fund Advance Capital Partners, led by President Aleš Škerlak, has acquired a majority stake in Solvis, Croatia’s leading solar energy provider. In collaboration with Stjepan Talan, Founder and Director of Solvis, this strategic partnership marks a transformative step for the company. It signifies a new era of sustainable energy solutions in the Adriatic region. Pending regulatory approvals, this acquisition will enable Solvis to accelerate its growth and innovation efforts. With plans to expand solar power plant projects and implement eco-friendly energy initiatives, Solvis is poised to impact Croatia’s energy landscape substantially. Aleš Škerlak’s strategic vision and leadership, combined with Stjepan Talan’s expertise, underscore the potential for Solvis to become a global leader in advanced integrated photovoltaic modules.

SOURCE: connectingregion.com

Marijana Knežević Tudić Appointed New CEO of Kraš

Marijana Knežević Tudić has been appointed the new CEO of Kraš, effective 20 June. The decision was made at the recent Supervisory Board meeting. Knežević Tudić steps into the role with extensive experience, having served as a member of the Kraš Board, overseeing operations including production, maintenance, procurement, and investments. Her journey with Kraš began in 2000 as an intern after graduating from the Faculty of Food Technology and Biotechnology. Over the years, she has amassed valuable experience across various departments, such as production, marketing, sales, and procurement.

PPC Group and MYTILINEOS Forge €2 Billion Solar Alliance

PC Group has inked a strategic Cooperation Framework Agreement with MYTILINEOS Energy & Metals to develop a solar power portfolio worth up to €2 billion in Italy, Bulgaria, Croatia, and Romania. This ambitious initiative will unfold over the next three years, marking a significant push towards energy transition in Europe. The pact covers approximately 90 solar projects in the four countries, with capacities ranging from 445 MW in Croatia to 516 MW in Romania. MYTILINEOS will oversee the development and construction of these projects, and PPC Group will acquire them once they are connected to the local electricity grids.

Business Dialogue

“We put an end to the wild installation of ground-mounted photovoltaic panels”

Francesco Lollobrigida Agriculture Minister of Italy

Copper Surges to Historic Highs

The price of copper has soared to unprecedented levels, continuing its months-long upward trajectory fueled by financial investors who have flooded the market in anticipation of deepening supply shortages. Banks, mining conglomerates, and investment funds have been touting favourable long-term prospects in the copper market for months, leading to a surge in investments. This influx of capital has pressured traders, who have adopted a more cautious stance due to weak demand, especially in China. Futures on the London Metal Exchange surged by over 4%, propelling copper prices past the $11,000 per ton mark for the first time.

Over 100 Million Americans to Use Cryptocurrencies by 2028

The adoption of cryptocurrency in the United States is surging, driven by the sector’s impressive performance this year. By the end of 2024, it is estimated that nearly 88 million Americans will use cryptocurrencies as a payment method or for investment purposes, marking an increase of 15 million users from the previous year. This trend is expected to accelerate, with projections suggesting that by 2028, over 100 million Americans—almost one-third of the current US population—will be engaged with cryptocurrencies, according to data from AltIndex.com.

Argentina Introduces 10,000-Peso Note Amid Soaring Inflation

In response to soaring prices, the Argentine government announced the release of a 10,000-peso banknote worth roughly 10 US dollars. This new denomination is driven by an inflation rate of 287% in March, one of the highest globally. The Central Bank of Argentina issued a statement highlighting that this measure aims to ease the burden on citizens who find themselves carrying large bags, sometimes even suitcases of cash, for simple transactions. The new 10,000-peso notes will feature portraits of Manuel Belgrano, a founding father of Argentina, and María Remedios del Valle, a Black Argentine woman renowned for her role in the country’s independence war. Furthermore, the Central Bank of Argentina has announced plans to introduce a 20,000-peso note later this year.

“Global economic risks could eclipse anything since second world war”

Jamie Dimon CEO of Chase

EU Member States Approve Electricity Market Reform

European Union member states have endorsed a reform of the EU electricity market in response to the energy crisis triggered by the war in Ukraine. The new legislation is expected to shield consumers from volatile energy prices and promote renewable energy sources while encouraging nuclear power. With these rules, the EU aims to better prepare for future energy crises, providing mechanisms to declare energy crises in specific regions or across the entire Union under special circumstances. The reform will allow member states to temporarily set electricity prices for small and medium-sized enterprises and energy-intensive industries.

Italy Proposes Ban on Solar Panels on Farmland

The Italian government has approved a new law banning the installation of solar panels on agricultural land to protect the agriculture and fisheries sectors. The ban will not affect projects with solar panels above fields, vineyards, or land designated for electricity production. Agricultural lobbies have supported the ban, while environmental groups have criticised the government for undermining green objectives agreed upon by the G7 nations. The proposal will need approval from both houses of parliament before becoming law.

Portugal Generates Nearly 95% of Electricity from Renewable Sources

Portugal has achieved a milestone in renewable energy, generating 94.9% of its electricity from renewable sources in April, according to the national grid operator REN. Most of this green energy was produced by hydroelectric plants, accounting for 48%, followed by wind farms at 30%, and the remainder by solar power plants. The surge in solar energy production marked the largest monthly increase since records began, with solar power meeting 10% of the country’s electricity demands. Also, fossil fuels contributed only 9% of Portugal’s electricity generation in the year’s first four months.

Pioneering Safer Internet a

Michelle Zatlyn, co-founder and COO of Cloudflare, has been a transformative force in shaping the landscape of internet security and performance

Michelle Zatlyn COO of Cloudflare

I

n the world of technology and cybersecurity, few names resonate as profoundly as Michelle Zatlyn. As the co-founder and Chief Operating Officer of Cloudflare, Zatlyn has played a vital role in steering the future of internet secu-

Her

leadership is marked by a relentless commitment to innovation leading to its expansion across more than 100 countries

rity and performance. Her vision and leadership have catapulted Cloudflare into a crucial service that fortifies and accelerates any Internet application without the need for added hardware, installing software, or modifying existing code.

Hailing from Saskatchewan, Canada, Michelle Zatlyn’s educational journey was marked by a commitment to excellence and a keen interest in making a substantial impact. She earned her undergraduate degree in Chemistry from McGill University, an in-

stitution renowned for its research and academic rigor. After her stint in Canada, she relocated to the United States to pursue an MBA at Harvard Business School. It was here that the foundational ideas of Cloudflare began to germinate in collaboration with her future co-founders, Matthew Prince and Lee Holloway.

Cloudflare’s inception traces back to a project conceived at Harvard Business School. The trio of founders saw a glaring need for services that could offer robust security and enhanced effi-

ciency for websites. Officially launched in 2009, Cloudflare was set up with the mission to provide essential security features that safeguard websites from prevalent threats such as DDoS attacks, malicious software, and data breaches. Simultaneously, it aimed to enhance the performance of these sites, ensuring faster loading times and smoother user experiences.

As COO, Michelle Zatlyn’s role spans across critical business operations including strategy, product development, and customer relations. Her

As a staunch advocate for a secure and open internet, she influences global internet policy discussions

leadership is distinguished by an unyielding commitment to innovation, customer satisfaction, and operational excellence. These attributes have been instrumental in Cloudflare’s explosive growth. The company now operates from over 200 cities across more than 100 countries, providing

vital security services to millions of websites, among them prominent organizations like IBM, Nasdaq, and the European Parliament.

Zatlyn’s contributions have garnered numerous accolades, placing her on Fortune’s 40 Under 40, Forbes’ Top 50 Women in Tech, and Fast Company’s Most Creative People in Business. Her influence stretches beyond Cloudflare as she is a sought-after speaker on topics such as entrepreneurship, internet security, and digital innovation.

Beyond her executive responsibilities, Michelle Zatlyn is profoundly involved in global internet policy dialogue. She is a staunch advocate for an open and secure internet, championing policies that defend individuals and businesses against emerging cyber threats. Her extensive knowledge and experience make her a respected voice at major international forums where the nexus of technology and policy is discussed.

Looking to the future, Michelle Zatlyn is relentlessly pushing Cloudflare towards new technological frontiers, focusing on developing pioneering products that secure and stabilize the internet. As digital landscapes evolve, her foresight and leadership are vital in addressing the myriad challenges and seizing the opportunities that lie ahead.

Michelle Zatlyn’s narrative is one of relentless innovation, influential

leadership, and a steadfast commitment to a safer internet. As she continues at the helm of Cloudflare and influences the broader tech ecosystem, her impact is set to expand, promising a more secure digital environment for users worldwide.

Language as the Measure of All Things

With Daničić’s words that the language of man is a mirror of the human spirit, Protagoras’s claim that man is the measure of all things gains a new interpretation. Language reveals the way we think about the world, both as individuals and as a society. I had an inkling of this even before my Serbistics studies at the University of Belgrade Faculty of Philology, when I discovered the depths of civilisations articulated in ancient Greek and Latin while attending the Philological Gymnasium high school

Katarina Begović Ph.D

Member of the Department of Serbian with South Slavic languages, University of Belgrade Faculty of Philology

As someone who deals with the relationship between language and culture over time, I was drawn in particular to the phraseology of the Serbian language, which enables the reconstruction of the traditional folk view of the world, and at the same time the naïve, mythical image of the world around us. In this reconstruction, the language reveals the rages that haunt us, the kind of god we swear by, what we’ve inherited from our ancestors and what comprises the ethno-national specifics of our community. We discover the former morphological form of the language, how it used to sound, how we constructed sentences to convey our thoughts, which complex grammatical and semantic laws had ruled it back then

and speak now through language. I earned my doctorate on that archaeological plain of language, fascinated by everything that’s waiting to be interpreted in language.

The lecture halls of the Faculty of Philology are places where I encounter inquisitive young people. However, I’d be lying if I said that I don’t experi-

It seems to me that I’m striving, again and again, to present one important truth to my students. Disagreement shouldn’t make us feel threatened – in the civilised world, it is a call to dialogue that can teach us a lot

ence every such encounter as a challenge. In this challenge, all the complexity of linguistic depths should be associated with the general Zeitgeist, which defines everything that isn’t direct as being anachronistic. Perhaps more importantly, I see the true value of my job in constant questioning – of both myself and the existing paradigms of reality. What I’m gradually coming to realise is that the most important thing with young people is to cultivate a critical detachment from everything presented to us in the intellectual and public media space.

Between research and the classroom, a person needs to find their intimate life. I feel fulfilled by the people who surround me, by occasionally fleeing the crowds of Belgrade, which I love so much, and, finally, by sport. The lake, river, sea, mountain and forest, tent and clear sky – those are places where I find peace. I enjoy swimming, sailing, running, skiing and lifting weights. Every activity helps me to distance myself from the unrelenting pressure of daily life, as I try to remain in harmonious balance with myself and the world around me.

I believe it is the responsibility of us academics to talk about important social issues, because we thus contribute to shaping the culture and consciousness of our community. It seems to me that I’m striving, again and again, to present one important truth to my students. Disagreement shouldn’t make us feel threatened – in the civilised world, it is a call to dialogue that can teach us a lot. In a world filled with communicative babble, being capable of holding a real conversation is the most important thing. I try to use my activism, which is based on an attempt to shed light on socially important topics from the perspective of linguistics, to contribute to the community in Serbia. I am ready to listen, learn and attempt to help those who are on a journey to knowledge. That’s my way of giving back a part of what Belgrade gave me: this rich language with the culture that it reflects, and the people I’ve encountered in my life.

Life Dedicated A to the Arts

Milan Cile Marinković, a visionary Serbian artist, masterfully weaves tradition and modernity in his vivid paintings and dynamic sculptures, captivating audiences worldwide

Milan-Cile Marinković painter

Photo:

Milan Cile Marinković is a name that resonates profoundly within the world of arts and culture in Serbia and beyond. With a career spanning several decades, Marinković has established himself as a multifaceted artist, whose work encompasses painting, sculpture, and cultural advocacy. His journey is one of unwavering commitment to his craft, marked by a profound influence on contemporary Serbian art.

Born in Belgrade, Milan Cile Marinković displayed an early interest in the arts. This passion led him to enrol at the Faculty of Fine Arts in Belgrade, where he honed his skills under the mentorship of some of the most respected artists and educators of his time. His formative years at the academy were characterised by rigorous training and an exploration of various artistic styles and techniques, which would later inform his diverse body of work.

Marinković’s work is often described as a fusion of traditional and modernist elements. His paintings are known for their vibrant colour palettes and

A multifaceted Serbian artist, Milan blends traditional and modernist elements in his vibrant paintings and fluid sculptures, earning global acclaim

dynamic compositions, often reflecting themes of nature, human emotion, and abstract forms. His sculptures, on the other hand, are celebrated for their intricate details and innovative use of materials.

One of his most acclaimed works is the painting series “Eternal Landscapes,” which captures the serene beauty of the Serbian countryside. Through bold brushstrokes and masterful use of light and shadow, Marinković brings to life the rolling hills, dense forests, and tranquil rivers of his homeland. This series not only showcases his technical prowess but also his deep connection to the natural world.

In sculpture, Marinković has made significant contributions with pieces such as “Harmony in Stone” and “The Spirit of Freedom.” These works are characterised by their fluid forms and the seamless integration of different materials, such as marble, bronze, and wood. His sculptures often convey a sense of movement and vitality, inviting viewers to engage with the physicality of the pieces and the emotions they evoke.

TOP: Cocktail party

Beyond his art, Marinković champions Serbian culture, founding the Marinković Art Foundation to support emerging artists and preserve Serbia’s rich artistic heritage

RIGHT: On the green road

LEFT: Brotherhood

Beyond his contributions as a visual artist, Milan Cile Marinković has been a tireless advocate for the arts in Serbia. He has played a pivotal role in numerous cultural initiatives and organisations, working to promote the visibility and appreciation of Serbian art both domestically and internationally. His efforts have included organising exhibitions, participating in cultural forums, and mentoring young artists.

One of his notable achievements in this area is the establishment of the “Marinković Art Foundation,” which aims to support emerging artists through scholarships, residencies, and exhibitions. The foundation has become a vital resource for the next generation of Serbian artists, providing them with opportunities to develop their talents and gain recognition in the broader art world.

Marinković has also been instrumental in the preservation and promotion of Serbia’s artistic heritage. He has worked closely with museums and cultural institutions to curate exhibitions that highlight the

richness and diversity of Serbian art history. His efforts have helped to ensure that traditional art forms and contemporary practices are celebrated and preserved for future generations.

Throughout his career, Milan Cile Marinković has received numerous accolades and awards in recognition of his artistic achievements and contributions to culture. His works have been exhibited in prestigious galler-

TOP: A woman who devours

ies and museums around the world, earning him a global following. Despite his international success, Marinković remains deeply rooted in his Serbian heritage, drawing inspiration from the cultural and natural landscapes of his home country.

Marinković’s legacy is one of passion, innovation, and dedication to the arts. His body of work continues to inspire and challenge audiences, while his advocacy efforts have paved the way for future generations of artists. As he continues to create and contribute to the cultural fabric of Serbia, Milan Cile Marinković stands as a testament to the enduring power of art and the vital role of the artist in society.

Milan Cile Marinković’s life and work exemplify the profound impact that a dedicated artist can have on both the art world and society at large.

Through his paintings and sculptures, he has explored the depths of human experience and the beauty of the natural world, while his cultural advocacy has fostered a vibrant artistic com-

munity in Serbia. As he looks to the future, Marinković remains a guiding light for aspiring artists and a cherished figure in the world of contemporary art.

RIGHT: Adela in love

LEFT: Miss rosemary

Who is afraid of the wolf?

Marina Rajević Savić

TV journalist & author

By Radmila Stanković

Photo Bojan Rajević

Goal Mission Christian be a the – and To That’s

She inscribed the history of Yugoslav and Serbian television with her show Dok anđeli spavaju [While Angels Sleep]. With her personal style and prowess, she presented the most important people from all fields of creativity, the greatest minds and greats of the arts, to the viewing public. Bearing witness in front of the cameras for her were the likes of Serbian Orthodox patriarchs Pavle, Irinej and Porfirije. She married legendary footballer Dušan “Dule” Savić at a tender age and together they have two sons, who have in turn brought them five grandchildren

She was born in the Kosovo city of Peć and spent the first six years of her life there. The colours and scents of the city of her birth live on inside her to this day, as if she can still hear the voice of the hodja from the mosque that she could see from the balcony of her house; as if she can see her friend Mahija-Shqiptar in front of her; as if she can hear the cooing of doves from the garden. Leaving Kosovo was the first time she experienced suffering, while the other two times were when she left Belgrade to go abroad with her parents and husband. After a marriage that’s last-

ed more than four decades so far, Marina Rajević Savić (63) feels the same as she always has: love and devotion, joy and commitment, a close attachment to her husband, the only man with whom she wanted to have children, the one with whom she will remain until the end of her life.

Marina is in many ways unique on the small screen. When she first appeared on our TVs, she was a very young and refined beauty with subtle mannerisms. She captivated audiences with her charm, serenity and intelligence, while she avoided overemphasising her modest appearance

with either excessive make-up or loud outfits. Television Belgrade utilised her skills as a journalist and presenter to the extent that Marina accepted. She took hiatuses from her work –when heading abroad with her husband, giving birth and raising her sons, Uroš and Vujadin – only returning when she felt the desire to do so. Her remarkable career endures with the success that she first established with While Angels Sleep, which can rightly be said to be an iconic show. Initially broadcast on the Third Channel of Television Belgrade, then subsequently on BK Television and later also

on Studio B, where she’d first launched her career (on the radio) as a secondary school pupil, and on Television Hram. Over recent years, we’ve been watching this cult show on Sputnik.

Marina is a descendant of the Rajevićs, one of the most respected Serbian families from Kosovo. Her ancestors hailed from Peć and she was herself born close to the famous Patriarchate of Peć. She is a child of the Golden Garden of the Rajevićs. That was the name of one of the most beautiful parks in the Balkans, which was under state protection and had been created as a work of her great-grandfather, Živko. He had brought plants and trees from around the world and planted and cultivated them. A Television Belgrade documentary was even made about the Rajević garden and its famous black rose. In an effort to ensure it resembled Versailles or Schönbrunn, the garden was later cared for by Marina’s grandparents, and then by other members of the Rajević family. Her grandmother Vera was a famous French language professor who is still discussed throughout the former Yugoslavia as a unique lady, while her grandfather Milorad was a banker.

“My great-grandfather Živko was a wealthy merchant who fell in love with botany, travelled the world and brought back the most varied plant life. Over the course of his lifetime, that garden was maintained by 14 gardeners. I still remember that, while playing as a child, I had to be careful around the flowers and boxwood shrubs, and to avoid spilling gravel on the paths. The water in the pool was spotlessly clean, lanterns shone and illuminated the entire garden. I was six when we moved to Belgrade, but I perfectly recall everything I experienced until that time. I also took it very hard when my parents informed me that we would be moving to Belgrade. I would return to Peć each year to stay with my grandparents during the summer and winter holidays, and later – following the death of my grandfather in 1984 – to visit my grandmother, who lived until 1994. I had a wonderful social cir-

cle and a very good Shqiptar friend. I would feel excited when I heard the voice of the hodja from the mosque. Everything seemed somehow idyllic.”

All that remains of that idyll today is the fact that Peć, or Peja as it is known to the Kosovo Albanians, is no longer home to a single Serb (with the exception of the nuns of the Patriarchate of Peć), while in the Golden Garden of the Rajevićs – prior to its complete destruction – some 37 Kosovo Albanians were known to have been felling trees and carrying them home for firewood.

“My most beautiful childhood memories are linked to Peć. I would feel a special sense of excitement when approaching my city. Just the thought of it gives me palpitations today. I remember Mount Čakor, the river Bistrica, the Patriarchate of Peć, all those magical colours and aromas, tastes and sounds, and it’s as if those times come to life within me – those people, those magical places that are unique to me, exalted, mine. I felt a similar sense of excitement in Herzegovina. Bishop Atanasije Jevtić told me that this is because both Kosovo and Herzegovina are holy lands, saturated in the blood of martyrs and the tears of prayer.”

Marina was 12 years old when she moved to Paris with her parents, where her father was a representative of Yugoslav company Centrotextil.

“That departure was also difficult for me. As was the case ten years later, when I again went to France for a longer period, that time with Dušan. I actually always find it hard to leave and grieve for my country whenever I go somewhere. When I was 12, I lamented the loss of my classmates, so I refused to skip a year, which I could have done as an excellent pupil, because I wanted to be in the same grade as them when I returned. After a year residing in Paris, I had the best

grades. I also attended ballet classes at the famous Salle Pleyel ballet school, under Mrs Vera Krylova, who was very strict, but who liked me and did extra work with me after regular classes. She begged my parents to allow me to stay at the ballet school in Paris after they returned to Belgrade.”

One of Marina’s good friends in high school was Maja Sabljić, who would go on to become a famous actress. They shared the same fate in that Branislav Rajević and Steva Sabljić were fathers who only allowed their daughters to go out only until 9pm.

Privately, Patriarch Pavle was a jolly, sparkling and incredibly witty man

“There was no point in begging; all we could do was cry because they didn’t back down. My parents were both gentle and strict. I was more rambunctious than my brother and sometimes a cane was deployed, which my mother was prone to use when I didn’t work hard at school. I don’t think that was a bad thing, nor did I receive any serious beatings. It was just a little reminder to get my act together. Dad kept a watchful eye on what I was doing, worrying

Golden Garden of the Rajevićs, Peć

about me in the way patriarchal families show concern for female children, and on top of all that, I started working at an early age on the radio at Studio B. He would drive me to and from work at the Beograđanka building.”

When she later raised her own sons, she attempted to act strict and failed. It was a good thing that Dušan was always there.

“Dušan was the real authority for our children. And it’s good that he didn’t change at all with the later arrival of our grandchildren – Andrej, Lena, Adrijana, Mihajlo and Anika. He treated them with the same authoritative approach. I wasn’t capable of being strict with my children like my parents had been with me, but I’m satisfied with the kind of people they’ve grown up to become.”

Because of the ballet that she continued to devoted herself to for quite a long time after returning to Belgrade, her friends called her ‘Marina the Ballerina’. When she once appeared as a guest of a Studio B show intend-

Dušan never hampered my career and actually, on the contrary, supported and helped me in everything

ed for high school pupils and spoke about ballet, editor Aleksandar Kostić really liked her voice and offered her the job of presenting the show Prekobrojni čas [Extra Lesson].

She was soon invited to work at Television Belgrade, just prior to turning 18, and that’s how her successful television career began.

working very successfully on the Television Belgrade Weekend Programme, a show that was broadcast live and that she took to like a duck to water.

Marina

and Dušan at their wedding

“Everything happened somehow spontaneously, and in spite of my wish to become a ballerina or a doctor. My curiosity prevailed; the need to explore and study people and phenomena, to immortalise events with a photo or film camera, to convey my experiences to others.”

When she took the first hiatus of her career, she was 22 years old and

“It was tough for me to drop everything and head to France with Dušan. I was sorry to be parted from my parents, my friends, I simply never felt a need to leave Belgrade. That world was beautiful and like a fairytale for me, but I constantly felt a need to return home.”

When she gave birth to Uroš, peace and contentment reigned supreme in her life. And Vujadin came into the world three years later. She had wanted more, but she lost a third child when she was five months pregnant. She dreamt that there were five of them. She was increasingly a moth-

er and the wife of red & whites football legend Dule Savić.

“It would bother me slightly back then when someone would present me as the wife of Dušan Savić, instead of saying what I do for a living. If I could turn back the clock today, I wouldn’t object in the slightest to being presented as only Dule Savić’s wife.”

She says that her husband is so authentic and true to himself that he is capable of defending his position in such a way that she finds it cute even when she thinks the complete opposite.

“Dušan’s life views are fixed and immovable. On the other hand, he never hampered my career and actually, on the contrary, supported and helped me in everything. Of course, circumstances proved decisive in us heading abroad, but it was natural for me to support Dušan’s career at that juncture.”

For many television viewers, Marina was the first presenter to interview church dignitaries on the small screen, firstly discussing life, and then faith. It was thanks to her that Patriarch Pavle became more beloved by many believers and closer to atheists. Dušan was initially helpful to her when she wanted to address some religious topics or interview some officials of the Serbian Orthodox Church. He was on personal terms with Patriarch German and many bishops. Her interest in this area also implied studying spiritual literature, socialising with people from the Church and constant learning.

“It isn’t easy to live a proper Christian life, to be conscious of yourself and your origins, of your faith and tradition; having understanding and respect for those who aren’t Christians, for members of other faiths; to love people, both friends and enemies, and to be ready to make sacrifices for the sake of love, to have humility and to be patient and courageous. To be a Christian – that is the goal and mission.”

Marina’s speech is ennobled by her faith in God, while her conversations with patriarchs Pavle, Irinej and Porfirije represent the most pre-

Life is much better if there’s no inflated ego implying that everything starts from oneself and only “I” is the priority

cious testimonies and legacies of these church dignitaries. She did her first show with the future Patriarch Porfirije back in 1996, when he was the abbot of Kovilj Monastery, and they have since spoken many times on various occasions. She describes him as gentle, caring and sensitive.

el. And he continued from then until today.”

Marina preserves her most beautiful memories from her meeting with Patriarch Pavle, the much-loved head of the Serbian Orthodox Church. Marina’s grandmother, Vera, had sung in the choir of the Patriarchate of Peć. Patriarch Pavle had known her and it was the best recommendation for him to accept to be interviewed by her granddaughter.

Marina and Dušan with their son Uroš and granddaughter Lena (left)

Grandchildren

Adrijana, Lena, Anika, Andrej i Mihajlo, and son Vujadin (right)

“That’s how I experienced him the first time and he remains the same today. I’ve followed his gradual development – from abbot, via metropolitan bishop of Zagreb, to Patriarch. His residency in Zagreb was a serious school and provided a huge contribution to improving relations between the two churches and the two nations. I’m certain that he was our best diplomat in Zagreb, as a man who knows how to deal with people due to having learned that while he was the abbot of a monastery. He transferred all the good things he’d done in his diocese when he went to Zagreb, only doing so at a higher lev -

“Privately, Patriarch Pavle was a jolly, sparkling and incredibly witty man. I knew that he sang well and had heard that he played the guitar well, so I begged him to play something, but he didn’t accept. The Patriarch was also loved by those who didn’t believe in God, but did believe in the Patriarch. That was demonstrated at his funeral, which is remembered as an outpouring of immense love from the people. Even in the worst among us, a grain of goodness worked within them to be there that day, in that silence. Dobrica Ćosić dubbed that event a triumph of virtue.”

Marina has the rare ability to be able to talk with people on television even during times of strain and woe. And to present them to the viewers quite laid bare, but not hurt. When

asked who she would confess to in the way her interlocutors confided in her, she answers categorically.

“Nobody. I know no such person. Maybe, possibly, Dragan Babić, if he had asked me during his lifetime. You know, I always recall my wonderful colleague Svetolik Skale Mitić, a legend of television and one of the first journalists and hosts of Television Belgrade’s Dnevnik [daily news bulletin], who would say that the most attractive interview with me would be done by Marina Rajević Savić. That would present the genuine contrast between the two Marinas that exist within me, with one Marina immediately cancelling out the other. Although I don’t believe in horoscopes, everyone attributes this quality to the sign of Gemini, under which I was born.”

Few people have been able to emulate what Marina managed to do in her shows. One of her anthological interviews was with the poet Mira Alečković (1924-2008), who spoke publicly for the first time about her decades-long love affair with Slovenian novelist and

I’m certain that Patriarch Porfirije was our best diplomat in Zagreb

translator Ciril Kosmač (1910-1980), which lasted throughout all the years that she was married to painter Sava Nikolić (1920-1981), with whom she had three children. One of her children, journalist Neda Nikolić, testified to this fact in front of the cameras.

“How she spoke fascinated me. It’s as if I’m now listening to her describe her mother as being modest, calm and measured, but when Ciril would appear she would become excited, happy, red-faced... That daughter, who unfortunately died early, was a witness to her mother’s love and the layers of her personality. That really was a story worthy of a novel.”

Marina has been airing While Angels Sleep on Sputnik in recent years. She has equally interesting guests and great viewing figures, and she finds it particularly satisfying to talk with young people who marry early and are big champions of marriage. She says that Serbia is full of such young people and that they serve as evidence of the normal state of a nation that has a future. Marina admires them in the same way that she admires her own daughter-in-law, actress Mirka Vasiljević, who is a mother of four children, because she had more feminine wisdom and life wisdom at the age of 21 than Marina had herself had at her age:

“We all know that no marriage is ideal. None of us are ideal, but life is much better if there’s no inflated ego implying that everything starts from oneself and only “I” is the priority. What would it be like if we turned to the one who is beside us and gave ourselves and bowed down to him? If we view life as a couple in that way, we receive more than we expect. And we can instil as sense of security and confidence in our children.

“Our sons established their own families at a very young age. Dušan and I are today alone in our apartment and enjoying each other’s company. We receive our children and grandchildren, relatives and friends, and look forward to each new day. Does the meaning of life not reside in those little things?”

With Serbian Patriarch Porfirije

With son Vujadin and daughter-in-law Mirka Vasiljević

LOST CARAVAGGIO PAINTING UNVEILED AT PRADO MUSEUM

The Prado Museum has unveiled a painting by the Italian Baroque master Caravaggio, marking its first public exhibition this week after what the museum describes as one of the greatest discoveries in art history. The painting, titled “Ecce Homo” (Behold the Man), had been lost since the 19th century until it resurfaced three years ago. Initially attributed to an unknown Spanish painter, the work was nearly auctioned in Spain for a fraction of its true value. Caravaggio, who died in 1610 in his late thirties after a tumultuous life, was renowned for his mastery of the chiaroscuro lighting technique, which brought his subjects to life. Depicting a suffering Jesus Christ crowned with thorns, the painting was created between 1605 and 1609, just before Caravaggio’s death, and is believed to have once belonged to Spanish King Philip IV.

FIRST IN EU: IRELAND TO BAN TOBACCO SALES TO UNDER-21 S

Ireland is set to become the first EU member to ban the sale of tobacco to those under the age of 21, up from the current age limit of 18. This would make Ireland the first country in the European Union to introduce such a measure. Health Minister Stephen Donnelly said he hopes the legislation will progress quickly to become law. He explained that the government did not adopt the UK government’s approach, which aims to legally ban smoking for those born after 2009, due to EU single market rules and the Tobacco Products Directive. However, he mentioned that a review of the EU’s position is underway.

GOOGLE SET TO ACTIVATE ARTIFICIAL INTELLIGENCE IN ITS WEB SEARCH

Google has announced a groundbreaking change to its renowned web search engine, revealing plans to integrate artificial intelligence-generated responses directly into user search results. This development heralds one of the most significant transformations in the world’s leading internet search engine. The new feature, “AI Overview,” will initially roll out to users in the United States. The company has also confirmed plans to extend this functionality to users in other countries in the near future. With this update, Google search results will offer an AI-generated overview prominently displayed at the top of the page, powered by the company’s artificial intelligence platform Gemini. Users can expect to find traditional search results below this AI-generated overview section.

WORLD’S MOST POISONOUS FISH CAUGHT NEAR CROATIAN ISLAND

Near Ceja Island in Croatia’s picturesque Medulin Bay, seven elusive specimens of Lagocephalus sceleratus, famously known as the silver-striped puffer fish, were recently reeled in. The spotlight fell on one of these notorious aquatic daredevils, snagged at a depth of 19 meters, then promptly whisked away to the Centre for Marine Research in Rovinj, courtesy of the intrepid Slovenian fisherman Anton Vidovič, who not only netted the catch but immortalised it in a captivating photograph. However, this seemingly innocuous fish conceals a treacherous secret within its elegant stripes – tetrodotoxin, a venom so potent that even a minute dose can spell perilous health complications or, worse, a grim departure from the mortal coil.

GLOBAL WINE CONSUMPTION HITS 30-YEAR LOW

Global wine consumption in 2023 has dropped to its lowest level since 1996 due to inflation driving prices to record highs, according to the Paris-based International Organisation of Vine and Wine (OIV). This trend has further strained consumers who are already grappling with reduced purchasing power. The OIV estimated that global wine consumption reached 221 million hectolitres in 2023, a 2.6% decrease from 2022 and a 7.5% decline compared to 2018, as reported by Reuters. The report revealed a significant drop in demand in China, with consumption plummeting by 25%. Notably, Italy’s production of 38.3 million hectolitres was the lowest since the 1950s, marking a 23% decrease from the previous year. This drop caused Italy to lose its position as the leading wine producer, ceding the title to France.

ZAGREB VENUE RANKED AMONG TOP EUROPEAN PIZZERIAS OUTSIDE ITALY

Franko’s Pizza & Bar in Zagreb has been named the 14th best pizzeria in Europe outside of Italy, according to the esteemed 50 Top Pizza Guide. The prestigious recognition was announced at an awards ceremony held in Madrid. Elevating from 43rd place last year, this ranking underscores Franko’s as a pinnacle of culinary excellence in Zagreb’s vibrant gastronomic landscape. The pizzeria is celebrated for its elegant ambience and exceptional cuisine, featuring a menu that blends traditional and inventive toppings, all crafted from high-quality ingredients. 50 Top Pizza commended Franko’s for its consistency in offering a top-tier Margherita and a diverse wine list at competitive prices. The guide highlighted, “Franko’s sets the bar high for quality, making it a must-visit for anyone in Zagreb, whether residing or just passing through.”

10LUXURIOUS SUMMER Essentials

Summer offers gentlemen a chance to refresh their wardrobe with versatile essentials. This curated list includes practical yet luxurious items like printed shirts and sandals, perfect for embodying the summer spirit

The cardigan is knitted from breathable cotton with ribbed trims and charmingly stitched with the brand’s moniker at the back

LORO PIANA

Straight-leg linen trousers cut from lightweight linen with an aloe treatment that makes them resistant to wrinkles

MANOLO BLAHNIK

These ‘Otawi’ leather sandals have denim crisscross straps and supple leather footbeds for comfort

BRUNELLO CUCINELLI

For overnight trips and short breaks, both business and pleasure, it is crafted in Italy from leather and has a capacity for up to 52 litres’ worth of packing

MARNI

MR P. Suede Loafers

When seeking smart shoes, it’s

JACQUES MARIE MAGE

Meticulously handcrafted by skilled artisans in Japan from acetate and finished with intricate hairline engravings and signature arrowhead pins at the temples

ANDERSON & SHEPPARD

Woven from sand-hued sisal, a fibre drawn from the agave plant that’s known for its durability

DRIES VAN NOTEN

A nod to classic Hawaiian styles, it’s made from cotton and silk-blend satin, embroidered with rows of tonal stitching and printed with a banana leaf motif

TOM FORD

Checked CottonBlend Western shirt, made from a breathable cotton blend and finished with two chest pockets beneath the angled yoke

DE PETRILLO

This double-breasted tuxedo jacket is tailored from naturally insulating virgin wooltwill and detailed with wide peak lapels and two back vents

KOREAN FUSION MUSIC GROUP CONCERT

10 June – Kolarac

The lead performer, Hyun-ji OH, is a young and talented gayageum (Korean traditional plucked 12-string zither made of twisted silk that gives it a unique, earthy timbre) player who is gaining great popularity online, with over 320,000 YouTube subscribers and over 100 million cumulative views. Her performance redefines the boundaries of this traditional instrument by mixing it with various genres, including K-pop, folk songs, and even game and animation soundtracks. Oh’s talent brought her to the big stage at Wembley Stadium for a concert in 2023, where she performed along with many world-famous K-Pop stars. Guests will enjoy various traditional Korean instruments and Korean traditional dance.

DUTY OF MEMORY EXHIBITION

until 20 June - the Italian Cultural Institute

An exhibition featuring two Italian artists, Stefano Benaco and Tonino Maurici, will be held at the Italian Cultural Institute in Belgrade under the auspices of the Embassy of Italy in Belgrade. The exhibition, “Duty of Memory: Architectural Models; Shipwrecked Relics: Photographs and Paintings,” showcases various works. The exhibition presents twenty-one architectural models crafted by Stefano Benaco, alongside pairs of exhibits dedicated to shipwrecks: twenty-three photographs of wrecks taken by Benaco during his travels and twenty-three paintings of the same shipwrecks by maestro Maurici, inspired by Benaco’s photographs. In this dual exhibition, the two artists engage in a dialogue about the remnants of maritime history.

THE EVENING OF PHILIP GLASS’S MUSIC

1 June - Belgrade Philharmonic Hall

Leading Belgrade musicians, pianist Vladimir Milošević and cellist Nemanja Stanković, recipients of the 2023 “Despot Stefan Lazarević” City of Belgrade Award for musical and music-stage creativity as members of the Corda Piano Trio, will present a new concert program on 1 June at the Belgrade Philharmonic Hall. The concert features the music of renowned American composer Philip Glass. It is part of the Ninth International Conference “Minimalist Intersections,” which is being held for the first time in Belgrade and Southeast Europe this year. The concert program will include some of Glass’s most famous works, originally written or arranged for these instruments, such as selections from the “Glassworks” suite, music from the film “The Hours,” Piano Etudes, and “Songs & Poems” for cello.

GIN - A TASTING COURSE

ANTHONY GLADMAN

Join award-winning drinks writer Anthony Gladman as he explores the story of gin, from ancient uses to its present-day renaissance, offers insight into the unique distillation processes, teaches you to establish and develop your own palate and write your own tasting notes before guiding you through over 100 of the most exciting gins from across the world. It features a classic cocktail section, how to make an icon - the G&T - and the spirit’s impact on the climate and how the industry changes.

BE USEFUL

Arnold Schwarzenegger

Seven lessons from the international icon on how to live a meaningful, purposeful life for fans of Atomic Habits and Wim Hof. The instant number 1 Sunday Times bestseller, October 2023. The seven rules to follow to realise your true purpose in life are distilled by Arnold Schwarzenegger from his journey of ceaseless reinvention and extraordinary achievement and are available for anyone. The world’s greatest bodybuilder. The world’s highest-paid movie star. The leader of the world’s sixth-largest economy. That these are the same person sounds like the setup to a joke. But this is no joke. This is Arnold Schwarzenegger. And this did not happen by accident.

GET YOUR MONEY RIGHT

Emmanuel Asuquo

Get Your Money Right is a no-nonsense, nojargon guide to money that will help you become in control of your money so that you can earn more of it, spend less, build wealth, and eventually pass more of it on to the next generation. Get Your Money Right takes complicated financial principles and breaks them into practical, easy-to-understand concepts. It shares stories of clients Emmanuel had helped, describing the mess they were in before they met him and giving specific tips on how he helped them out of their situation.

CHEFWISE

Shari Bayer

Leading chefs worldwide offer inspiration, advice, and life lessons from both in and out of the kitchen. To become a great chef or run a top restaurant, you need to learn from the chefs who have already been there and done it. In this unique book, author Shari Bayer has collected the wisdom of Michelinstar celebrities, rising professionals, and restaurant owners worldwide to provide essential insider advice for all aspiring chefs and culinary business people.

UNDERSTANDING THE WORLD

Sandra Rendgen

Dazzling in scale, diversity and detail, the world never ceases to open our eyes and captivate our curiosity. Since the earliest cave paintings, humans have looked at this Earth, our home, and endeavoured to understand it. This expansive visual atlas presents the most exciting, creative and inspiring ways of explaining the world in information graphics. Divided into five chapters, the book covers the environment, technology, economics, society, and culture to reveal some of the Earth’s greatest intricacies in accessible visual form.

ANDO: COMPLETE WORKS - 40 TH ED. Philip Jodidio

Discover the unique aesthetic of Tadao Ando, the only architect ever to have won the discipline’s four most prestigious prizes: the Pritzker, Carlsberg, Praemium Imperiale, and Kyoto Prize. This collection spans the breadth of Ando’s entire career, including such stunning new projects as the Shanghai Poly Grand Theater and the Roberto Garza Sada Center in Monterrey, Mexico. Each project is profiled through photographs and architectural drawings that explore Ando’s unprecedented use of concrete, wood, water, light, space, and natural forms.

Faces & Places

EU Delegation Head Supports Serbia’s EU Membership at EU Day Event

9/5/2024

During an event marking EU Day, Emanuele Giaufret, the Head of the European Union Delegation in Serbia, affirmed unanimous support for Serbia’s full membership in the EU. The statement came as Giaufret, along with EU ambassadors and Serbian Minister for European Integration Tanja Miščević, unveiled a floral installation at Kalemegdan Fortress. This installation symbolises the unity between the EU and Serbia. It serves as a gesture of solidarity with the families and friends of the victims of recent mass killings in Belgrade and three villages in Mladenovac. “Serbia’s place is in the EU,” stated Giaufret, emphasising the EU’s support for Serbia in these difficult times.

CEBAC Launched to Boost European Business Ties in Serbia

14/5/2024

European business associations and bilateral chambers have established the Council of European Business Associations and Chambers in Serbia (CEBAC) to foster economic collaboration and represent European business interests. The initiative was inaugurated with a signing ceremony attended by European Commissioner for Enlargement Oliver Varhelyi and various ambassadors, emphasising the strengthening of “Team Europe” in the region. CEBAC’s primary goal is to enhance the legal and competitive business framework to support international and local companies in Serbia.

Norwegian Constitution Day Celebrated in Serbia

17/5/2024

Kristin Melsom, the Ambassador of Norway to Serbia, hosted a reception in the garden of the Norwegian ambassadorial residence to celebrate Norway’s Constitution Day. The event was attended by members of the Serbian Government and the diplomatic community, among others. This celebration underscores the strong diplomatic ties between Norway and Serbia and provides an opportunity for both nations to strengthen their relations. The event also featured traditional Norwegian food and music, adding to the festive atmosphere.

Turkish Cuisine Week Celebrated in Belgrade

17/5/2024

During Turkish Cuisine Week, the Ambassador of Turkey in Belgrade, Hami Aksoy, and his wife, Canan Parmaksizoglu Aksoy, hosted a special reception to promote Turkish culture through its cuisine. The event offered guests a taste of authentic dishes and highlighted Turkey’s rich culinary history. The reception provided an opportunity for attendees to experience the diverse flavours and traditional cooking techniques that are integral to Turkish cuisine. Through this event, the hosts sought to foster a greater appreciation for Turkish culinary traditions and create a space for cultural exchange. Overall, the reception was a wonderful celebration of Turkish cuisine and its significance in promoting cultural understanding.

Faces & Places

Novi Sad Hosts 91st International Agricultural Fair with EU Partnership’

16/4/2024

The 91st edition of the International Agricultural Fair in Novi Sad, partnered with the European Union this year, was inaugurated with the European Commissioner for Agriculture Janusz Wojciechowski in attendance. Accompanied by the EU Ambassador to Serbia, Emanuele Giaufret, and other dignitaries, Commissioner Wojciechowski toured the exhibitors in Hall 1 and expressed his pleasure at visiting Serbia, a close neighbour and significant partner of the European Union. This year’s agricultural fair brought together more than 1,200 exhibitors from 40 countries.

Serbia Celebrates Africa Day

18/5/2024

In a grand ceremony at the Palace of Serbia, the nation marked Africa Day, celebrating the rich and enduring bonds between Serbia and the African continent. The event was opened by the Moroccan Ambassador to Serbia, Mohamed Amin Belhaj, along with Serbia’s Foreign Minister Marko Đurić and National Assembly President Ana Brnabić. Addressing the gathering, Minister Đurić expressed honour in speaking during the 61st anniversary of African unity, highlighting Serbia’s longstanding support for the African unity movement since its inception.

Serbia Highlights EU Integration Challenges at Enlargement Conference

21/5/2024

At the “Twenty Years Since the Great Enlargement of the European Union” conference, Tanja Miščević, Serbia’s Minister for European Integration, emphasised the unique challenges countries seek EU membership face. She highlighted Serbia’s progress in judicial reform, aligning with EU visa policies, and revising media and electoral laws. Miščević called for increased dialogue within Serbia on the challenges of joining the EU. Plamena Halacheva, Deputy Head of the EU Delegation, addressed the misinformation about the EU and stressed the need for more professional media coverage. The conference emphasised the need for clear communication about EU integration.

Public Discussion on Jacques Delors’ Vision of the EU

22/5/2024

EPuS, in collaboration with the French Embassy, hosted a public discussion at the French Institute in Serbia titled “Jacques Delors and His Vision of the EU - Past and Future of Europe.” The event honoured Delors as a key figure who significantly shaped the EU. Duško Lopandić, President of the Forum for International Relations EPUS, emphasised that Delors, the former President of the European Commission from 1985 to 1995, was pivotal in introducing the euro and is often called the creator of the modern European Union. The French Ambassador Pierre Cochard noted that many European treaties were established, and the euro concept was born during Delors’ tenure. Emanuele Giaufret, Head of the EU Delegation in Serbia, and Slobodan Zečević from the Institute for European Studies in Belgrade also praised Delors’ decade-long effort and credibility in steering the EU through its evolving challenges and crises.

Azerbaijan Marks Independence Day with Belgrade Reception

28/5/2024

Ambassador Kamil Khasiyev of Azerbaijan hosted a reception in Belgrade to commemorate Azerbaijan’s National Independence Day. Organized by the Azerbaijani Embassy, the event celebrated the 106th anniversary of Azerbaijan’s declaration of independence. It attracted a diverse crowd, including key figures from Bosnia and Herzegovina’s political, economic, and cultural sectors, along with the diplomatic community. Notable guests included representatives from the Serbian Government and various ambassadors and diplomats from international missions.

Long-Haul Champions

View through an arched window at St. George's Parish Church in Piran, Slovenia

06 COMMENT Long-Haul Champions

08 MATJAŽ HAN

Slovenian Minister for the Economy, Tourism and Sport Fostering Cooperation

10 H.E. DAMJAN BERGANT Ambassador of Slovenia to Serbia Good Relations Despite Differences

14 BOGDAN GAVRILOVIĆ

Managing Director, WTO Slovenia Transport and Logistics Without Borders

16 VESNA JOVANOVIĆ

Director, EurologSystem Connecting Italy and Serbia by Rail

18 PETER GRK

National Coordinator For Western Balkans, Ministry Of Foreign Affairs Of Slovenia The EU Still Feels Like Home

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

DESIGN

Slađan Radosavljević

Zoran Perović design@aim.rs

PHOTOS

Zoran Petrović

COPY EDITOR Mark Pullen

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Mihailo Čučković m.cuckovic@aim.rs Nataša Novković n.novkovic@aim.rs

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs

FINANCE Dragana Skrobonja finance@aim.rs

22 BRANKO MILIKIĆ

Business Development Director at Halcom Serbia Innovations in Digital Banking

CEO Ana Novčić a.novcic@cordmagazine.com

PUBLISHER Ivan Novčić i.novcic@aim.rs

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica SLOVENIA 2024

Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 125806, Serbia Phone: +(381 11) 2450 508

E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com ISSN: 2560-4465 All rights reserved alliance international media 2023

The views expressed in this publication are those of the presenter; they do not necessarily reflect the view of publications published by alliance international media THIS PUBLICATION IS FREE OF CHARGE

23 DRAGANA AŠIĆ RATKOVAC

Business Manager

Consulting & Tax

Advisor at Unija

Consulting d.o.o. Beograd

Our View of the Tax World and What’s Important

24 SAVA TODIĆ Organisational and Business Advancement Manager, Doja Winery In vino PANTHEON

Slovenia 2024

26 ALMA MAXIMILIANA KARLIN, 1889-1950 The Remarkable Life and Enduring Legacy

30 DANIJELA FIŠAKOV

President of the Slovenian Business Club We Will Outdo Ourselves

32 DECADE ANNIVERSARY OF SLOVENIAN FILM DAYS CELEBRATED

34 CELEBRATING 30 YEARS: THE TOUR OF SLOVENIA

36 SLOVENIAN BUSINESS CLUB ACTIVITIES

Bridging the Economies of Serbia and Slovenia

The Slovenian business community has forged strong ties with the EU, with a significant portion of the country’s exports directed towards EU member states

Long-Haul Champions

Despite political changes nationally, Slovenia has remained dedicated to EU values and continues to advocate strongly for EU enlargement, particularly to encompass the Western Balkans

Slovenia’s two-decade journey within the European Union reflects a consistent and unwavering positive approach to integration and cooperation. Since its 2004 accession, Slovenia has embraced EU membership as a central pillar of its foreign policy and national identity. This commitment is evidenced by various official documents, including the Basics of the Strategy of Foreign Policy of Slovenia and the Foreign Policy Declaration, which have consistently underscored Slovenia’s alignment with EU values and objectives.

One of Slovenia’s key foreign policy priorities has been its unwavering support for EU enlargement, especially in the Western Balkans. This commitment has transcended changes in government and political orientation, highlighting the country’s bipartisan consensus on the importance of EU membership for regional stability and prosperity. Slovenian leaders, regardless of their political affiliations, have consistently advocated for the swift integration of Western Balkan countries into the EU, emphasising the positive role of EU membership in promoting peace, security and economic development across the region.

At the institutional level, Slovenia has established mechanisms such as the Committee for EU Affairs within its National Assembly to facilitate discussions and decision-making on EU-related matters. These forums serve as platforms for deliberating issues related to EU integration, differentiated integration and the adoption of EU

regulations and policies. While there may be differences of opinion on specific policy approaches, there is a general consensus on the need for Slovenia to align itself more closely with the core of the EU and accelerate its integration efforts.

The Slovenian business community has forged strong ties with the EU, with a significant portion of the country’s exports directed towards EU member states. This close economic relationship underscores the importance of EU membership to Slovenia’s economic stability and growth. Slovenian companies prioritise research and development in order to remain competitive on the EU market, with support from EU funds that play a crucial role in driving innovation and technological advancement.

Slovenians show strong trust in the EU, with notable support for EU intervention in areas like security and defence (42%), migration and refugees (38%), and foreign policy (36%). Moreover, citizens value the impact of diverse EU projects, which range from infrastructure development to social initiatives targeting the improved wellbeing of various age groups.

Despite fluctuations in the public’s perception of the EU, as a result of economic crises and other challenges, Slovenians maintain a strong belief in EU integration and Slovenia’s role within the EU. And while there may be ongoing debates and discussions on specific policy issues, Slovenia’s overall commitment to EU membership and integration remains steadfast under the new government.

Fostering Cooperation

Photo Danijel Novakovič

World Expo 2027 certainly represents an exceptional opportunity for Slovenian contracting and service companies, especially in the areas of the sustainable development, infrastructure construction, tourism and event-related services, which can boost the volume of direct investments and further foster good economic cooperation between both countries

Commenting in this exclusive interview on economic cooperation between our two countries and the areas in which bilateral trade could be improved, Minister Han notes: “I would highlight the following areas, namely ecology, municipal and transport infrastructure, environmental protection, ICT, renewable energy, wastewater management and sustainable development. Those areas are all very important for future development. I also believe that both countries can further strengthen their economic cooperation in these areas.

Do you see the upcoming Expo2027 Serbia as an opportunity for the active participation of Slovenian companies; and how could it further economic cooperation between Serbia and Slovenia?

— We most certainly see this as an opportunity for the active participation of Slovenian companies. We particularly welcome Serbia’s plans to build the entire complex in a spirit of sustainability, ensuring that the exhibition venue will not only be for this one-off event, but will live on and develop beyond the expo. Furthermore, the specialised World Expo 2027 is certainly an exceptional opportunity for Slovenian contracting and service companies, especially in the areas of sustainable development, infrastructure construction, tourism and event-related services, which can boost the volume of direct investments and further foster good economic cooperation between our countries.

In which sectors do you believe economic cooperation between Serbia and Slovenia could be further enhanced, particularly in terms of investments?

— I would highlight the following areas, namely ecology, municipal and transport infrastructure, environmental protection, ICT, renewable energy, wastewater management and sustainable development. These are all areas that are very important for future development. And I believe our two countries can further strengthen their economic cooperation in these areas.

What are the main areas of interest for Serbian companies in Slovenia and vice versa, espe-

TRADE

Serbia was Slovenia’s 11th largest trade partner in 2023 and its 8th most important export market

GOODS

Bilateral trade in goods between Serbia and Slovenia in 2023 reached a total value of 2,051 million euros

VALUE

Goods worth €1,266 million were exported from Slovenia to Serbia in 2023, while goods imported to Slovenia from Serbia were worth €785 million

cially in the context of increasing bilateral trade and investment?

— According to data, the main interests of Serbian companies in Slovenia are represented by the fields of ICT, real estate and hospitality, while Slovenian companies in Serbia mostly focus on insurance, banking and industrial sectors, including automotive, machinery, chemicals, metals, food, furniture, textiles and pharmaceuticals.

Could you provide an overview of the current volume of bilateral trade between Slovenia and Serbia; how do you envisage its development in the coming years?

The main interests of Serbian companies in Slovenia are represented by the fields of ICT, real estate and hospitality, while Slovenian companies in Serbia mostly focus on insurance, banking and industrial sectors

— Economic cooperation between our countries is traditionally good. Serbia was Slovenia’s 11th largest trade partner in 2023 and its 8th most important export market. The value of goods exported from Slovenia to Serbia in 2023 totalled 1,266 million euros, while goods imported from Serbia to Slovenia were worth 785 million euros. In total, the trade in goods in 2023 reached a value of 2,051 million euros.

As for future developments, particularly in light of measures to attract foreign investment to Serbia in strategically important sectors, which encompass a wide range of state aid and incentives, we estimate that, together with the reduction of inflation and the growth of private consumption, the volume of total trade in goods will increase even further in the future.

Good Relations Despite Differences

Given the extent to which Borut Pahor would be an acceptable candidate to all – both the parties in the dialogue, and especially the EU – he could probably contribute to the resolving of open issues in the dialogue between Belgrade and Pristina. It therefore doesn’t matter whether Pahor comes from Slovenia or elsewhere, rather what’s important is what he can do to improve life in these lands ~ Damjan Bergant

By Ljubica Gojgić

Despite serious differences of opinion regarding events in the wider region and around the world, which became evident with the opposing views expressed by Slovenia and Serbia during the vote on Kosovo’s membership in the Council of Europe and on the subsequent UN General Assembly Resolution declaring the Srebrenica massacre a genocide, Ambassador Damjan Bergant remains convinced that recent tension between Belgrade and Ljubljana shouldn’t threaten “joint action and cooperation”.

“I consider Slovenia and Serbia as countries that are bound by friendship and that both sides strive to deepen their bilateral relations,” says Ambassador Bergant. Speaking in this interview for CorD Magazine, he confirms that Slovenia will support the candidacy of its former president, Borut Pahor, to succeed Miroslav Lajčak as the EU’s mediator in the dialogue on the normalisation of relations between Belgrade and Pristina.

Your Excellency, Slovenia is this year commemorating the 20th anniversary of its EU accession. Have citizens’ expectations been met when it comes to membership in the Union?

— I consider the decision of Slovenia and Slovenes to join the EU as being one of the best and most important decisions for Slovenia since the establishing of the Slovenian state. After Slovenia’s EU accession, the country and its citizens gained much more than they would have done if they hadn’t become part of the Union. The free movement of people and goods is just one segment that’s important for the country’s development. Other opportunities that were created with our inclusion in the EU family are particularly important. Joining the single currency and the Schengen area undoubted-

ly marked the upgrading of everything. Opportunities opened up for us to utilise various EU funds that have contributed to the development of the country and to a better and higher quality of life for Slovenia’s citizens. Young people have more opportunities to study and acquire knowledge at a large number of European universities, especially through Erasmus programmes. They then return to Slovenia with that knowledge and thus strengthen the society and contribute to the country’s further development. The advantages of an open labour market have also been demonstrated in this context. EU accession also relaxed any tension formerly felt at borders with neighbouring countries. I can say that the areas along the border with Italy, particularly Trieste and the countryside around Trieste and Goriška, have been reinvigorated. The side of the border that you live on is no longer important, rather what matters is quality of life, progress and mutual coexistence. The life of Slovenia and Slovenians has simply become more beautiful, more affordable and more advanced. And this is precisely why Slovenia will strive to preserve the EU, regardless of the critical situation around the world and the internal and external attempts to portray the European integration project as something negative that forces countries to partially sacrifice their own independence. On the contrary, EU integration represents one of the most tangible and positive integration processes in the history of humanity, which should also be nurtured in the future. Europe has been confronted by various crises throughout history, but these have primarily been threats to peace. It endured two world wars that left great scars on the lives of people and countries, but nonetheless succeeded in constructing an integration model that represents the shared values of democracy, the rule of law and the guarantee of human rights. In this regard, both EU citizens and member states have progressed, while the culture and identity of each individual country has been incorporated into the principles of European citizenship, the wide range of so-called official EU languages and the rich cultural heritage of Europe.

After the accessions of Slovenia and Croatia, a question remains as to whether and when EU enlargement will continue. The EU has recently also been focusing on Ukraine and Moldova as candidate countries. Viewed from the perspective of Slovenia – as a country that advocates strongly in favour of enlargement – should the priority be enlargement to include one of these former Soviet republics or the Western Balkans? — Enlargement is in the interest of the EU and its member states. It should also be in the interest of candidate countries, and their citizens in particu-

SREBRENICA

I would have been happier personally if the resolution had been adopted by consensus and if Serbia had participated in the process of adopting it in a different way

ENLARGEMENT

Convincing citizens that the EU doesn’t want enlargement and is to blame for nothing having been done on the part of the Union isn’t helpful for future membership

INVESTMENTS

Slovenian businesses invested approximately 161 million euros in Serbia over the previous year, according to which Slovenia ranks 7th among all foreign investors

lar. It isn’t important whether that means expansion to include the countries of the so-called former Eastern Bloc or the countries of the Western Balkans. Countries that want to become part of the EU will be able to join, though on condition that they are ready to accept EU rules. This is the foundation and expansion and membership won’t be possible without it. What is meant by rules? In particular, it means strengthening and implementing the system of democracy, the rule of law and human rights. In other words, it is about adapting national legislation to the EU acquis, and especially –and even more importantly – applying the rules and laws adopted. This is even more difficult than making rules. Likewise, there must also be a desire and inclination to really want EU membership among political structures, both those in government and the opposition, and especially among the citizenry indirectly. That desire must be expressed by public opinion. Convincing citizens that the EU doesn’t want enlargement and is to blame for nothing having been done on the part of the Union isn’t helpful for future membership. Any undue criticism of the EU by the political leaders of individual countries is unwarranted. Of course, the context of the European story changes and depends on the development of events, challenges and needs. The context of the process changes as a consequence, along with the recommendations and criteria. But if a country wants to become part of the EU family, it must conduct itself and live in accordance with EU values and rules. And those values and rules are primarily determined within the framework of the EU. No one should be forced to do something against their will.

In short, it is necessary to play with cards face up and to have a clear vision that must be clearly defended and presented. This is the only possible pathway to the goal. We will see which countries will be more successful in the future, whether those in Eastern or Southeast Europe. Serbia has every chance to become a member of the EU, and that depends solely on Serbia.

Relations between Slovenia and Serbia have been plagued by tension in the previous period. Serbian President Vučić dubbed the conduct of Slovenia’s UN representative towards Serbia as “abhorrent”. How would you comment on our bilateral relations?

— I believe that the words you mentioned cannot contribute anything positive to the development of good relations between our two countries. President Vučić realised that and apologised immediately, especially given that Slovenia – as a member of the UN Security Council – had nothing to do with the composition of the delegations attending the

session and that it related to the UNMIK annual report. It also gave a balanced statement at the meeting. Slovenia performed its task correctly, which is why it is all the more surprising that the president said what he did.

Slovenia desires good relations with Serbia and I think our relations are good regardless of everything. We have some differing views on what’s happening in the wider region or what’s happening around the world globally, but that shouldn’t and doesn’t jeopardise our joint activities and cooperation. I consider Slovenia and Serbia as countries that are bound by friendship and that are both striving to deepen their bilateral relations.

At the time when the new Government of Serbia was just being constituted, I already received a request from the Cabinet of the Prime Minister of Slovenia to convey to Prime Minister Vučević an invitation to visit Slovenia as soon as the Government of Serbia is formed and to express my readiness to organise the next joint session of our two governments to be held in Slovenia by the end of this year. I forwarded this message to the prime minister informally when I had an opportunity to speak with him at the recent opening of the Krivača Wind Farm. We agreed on a formal meeting at which we will finalise the details. I presume that we will soon hold a formal conversation on this topic. In our informal conversation, Prime Minister Vučević emphasised that he would be happy to come to Slovenia and that the Government strongly welcomes the proposal for a joint session. He reminded me that the last meeting of this kind was organised in Novi Sad in 2019, when he was still the mayor of Novi Sad. In short, I want good relations and am convinced that we can do a lot on both sides by the end of this year to ensure the continuation of existing good relations between our two countries.

As ambassador of a country that is the sponsor of the UN General Assembly resolution on genocide in Srebrenica while at the same time being a great advocate for dialogue in the region, how do you view the fact that the text of the resolution was agreed upon without regional consultation and without the knowledge of both Belgrade and Banja Luka?

— It is difficult for me to comment on an issue about which I’m not specifically aware, or that I’m only aware of via the media. I believe that coordination in New York is necessary for the adoption of documents like UN General Assembly resolutions. Serbia is a UN member and had an opportunity to participate in the process of creating the resolution from the beginning, and later in the stage of revising the text. This is also indicated to a considerable extent by Serbia’s activities in New York, which were cov-

ered in detail by the Serbian media. Republika Srpska is part of Bosnia and Herzegovina and, as such, was included in the process of creating and adopting this resolution.

When it comes to the contents of the resolution on genocide that was adopted by the UN General Assembly, Slovenia considers the purpose of this resolution as facilitating reconciliation and empathy and building trust within Bosnia and Herzegovina. This is the point at which our views differ from those of Serbia. The genocide in Srebrenica has been acknowledged by two international courts, and they are the International Criminal Court and the International Tribunal for War Crimes in the former Yugoslavia. The purpose of this resolution was not – as has been highlighted in Serbia in particular – to accuse any nation of having commit-

ted genocide in any way, rather the precise opposite. Of course, I would have been happier personally if the resolution had been adopted by consensus and if Serbia had participated in the process of adopting it in a different way. Whatever the case, efforts must be exerted to ensure that this resolution really contributes to its goal and isn’t used for negative purposes that would lead to aggravating the situation in this region. Serbia in particular can contribute a lot to that.

How important for Slovenia is former President Borut Pahor’s candidacy to become the EU’s new mediator in the dialogue between Belgrade and Pristina, thus replacing Miroslav Lajčak? — President Pahor is a great aficionado when it comes to events in the Western Balkans. It was un-

der his leadership that the so-called Brdo-Brijuni Process bore fruit and contributed a lot of useful elements to the region. This is among the rare forums that has included, and still includes, all the leaders of Southeast European countries. Given the extent to which Borut Pahor would be an acceptable candidate to all – both the parties in the dialogue, and especially the EU – he could probably contribute to the resolving of open issues in the dialogue between Belgrade and Pristina. It therefore doesn’t matter whether Pahor comes from Slovenia or elsewhere, rather what’s important is what he can do to improve life in these lands. That’s why Slovenia intends to support the candidacy of President Pahor to succeed Miroslav Lajčak. If his candidacy proves successful, we will be happy and will give him our full support, just as we would support anyone else appointed to this position.

Slovenia and Slovenian companies invested significantly in the Serbian economy in the previous period and topped the list of foreign investors. If our impression isn’t mistaken and that position has now been occupied by others, which areas would you highlight as the best example of our economic cooperation?

— Slovenia remains among the countries whose

companies invest in Serbia. Slovenian businesses invested approximately 161 million euros in Serbia over the previous year, according to which Slovenia ranks 7th among all foreign investors and 3rd among investors from EU countries. Of course, as a country of just two million inhabitants, it is difficult to compare us with large countries. However, if we view investments in relation to the investor countries’ GDP, Slovenia still ranks top. There is actually a large investment of Slovenian capital or a Slovenian company in Serbia almost every year. We ranked top in terms of investments in 2020, with NLB’s acquisition of Komercijalna Banka. Then, two years ago, the Hrastnik glass factory bought the Paračin glass factory, again marking an investment of several hundred million euros. We saw the opening of the wind farm in Krivača this month, which is half owned – alongside the MK Group – by Slovenia’s Alfi Renewables investment fund. And this once again marks an investment of almost one hundred million euros of Slovenian capital. In short, Slovenia is and will remain an important investor in Serbia. When it comes to future bilateral economic cooperation, we can expect intensive cooperation, but also new investments in the fields of renewables and energy efficiency, ecology, tourism, biotechnology and industry.

Transport and Logistics Without Borders

World Transport Overseas is one of the fastest-growing logistics companies in Eastern Europe, with branches in Bulgaria, China, Croatia, Greece, Kosovo, North Macedonia, Serbia, Slovenia and Taiwan

WTO’s policy is focused fully on meeting and exceeding all client requirements in the field of transport and logistics, and on providing additional services related to this activity. The company can this year boast of having new offices and receiving a valuable international accolade.

World Transport Overseas – Winner at the Forbes Business Awards 2024. Does this accolade confirm that you are on the right track?

— We are excited to announce that the WTO Group has been awarded the prestigious Forbes Business Award for services for 2024, repeating our success of 2020. The award received by WTO Bulgaria CEO Svetlin Pešev confirms our commitment to business and innovations in the logistics sector.

We express huge thanks to our dedicated team, whose hard work and perseverance made this possible. We are also immensely grateful to our clients and partners for their continued trust and

support. This award motivates us to continue pushing boundaries in transport, logistics and supply chain solutions, ensuring a top-notch service that meets our customers’ dynamic needs.

WTO opened a branch in China in 2020 and offices in Skopje and Thessaloniki in 2021, as well as in Pristina and Piraeus in 2022... Are you stopping there?

— In line with our “Vision 2030” strategy at the level of the group, we have successfully advanced in accordance with

the strategy’s plan and opened new offices in 2024. In addition to the two previously opened offices in China, in Shanghai and Ningbo, we have successfully opened new offices in Shenzhen and Chongqing. Chongqing is particularly interesting because of its railway connections towards Europe.

Besides the aforementioned offices in China, we also have a newly opened office in Bosnia and Herzegovina, specifically in Sarajevo, headed by our dear colleague and great expert in logistics and transport, Vladan Kuharević. We expect very good results and exceptionally good future intercompany cooperation, and the joining of this office signifies a significant expansion of the WTO Group, which now employs over 300 staff at 25 locations across 12 countries.

New offices aren’t the only thing you can boast of… Don’t you also have a new railway service?

— It is with great pleasure and pride that we introduce our new LCL railway service from China directly to Belgrade, which covers all Balkan countries. This solution is unparalleled on the market of Southeast Europe! Our new consolidated railway service from China includes numerous advantages, including a direct connection, as the train from Xi’an to Belgrade operates non-stop on a weekly service basis and a fast transit time – transport from the Xi’an railway station to Belgrade takes only 21 days. Among the most significant advantages of this service is cost-effectiveness, as the costs are significantly lower compared to air transport, which has a competitive transit time, not to mention the reliability of the regular schedule provided by the regional leader in LCL business.

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Connecting Italy and Serbia by Rail

EurologSystem, which is set to commemorate two decades of successful operations in 2025, transports an average of 500,000 tons of goods annually, primarily agricultural raw materials and food products

In order to further stabilise our market positions and increase our competitiveness, we established Elsway Ltd. Ljubljana, a company in Slovenia that specialises in rail freight transport, announces EurologSystem Director Vesna Jovanović in this interview.

Who are your clients and which markets are in your focus?

— Our business revolves primarily around logistic support and creating conditions that enable the successful placement of our agricultural raw materials and products on the Italian market and markets in our immediate vicinity. Since the company’s establishment, our focus has been on rail transport of grains from Serbia to Italy. In addition to organ-

freight transport. It is directed towards the Central European market, Italy, and the Port of Koper.

Our clients are large Italian companies that, over 20 years of collaboration, have become known as examples of successful family businesses with traditions spanning several generations. These businesses also keep pace with contemporary trends and achieve rapid progress on European and global markets.

You entered the logistics field from the IT sector. Has this enabled you to offer modern business solutions and applications for transport companies and carriers?

— I switched from jobs related to high technologies and computer communications to those organising goods trans-

Our MyELS and iELS business apps are evolving and being supplemented with new modules, just as our company is undergoing change

ising international rail transport, we have also provided wagon capacities for the past eight years and, through a strong partnership with rail operators, offer an efficient and economical service along the transport route.

In order to further stabilise our market positions and increase our competitiveness, we founded Elsway Ltd. Ljubljana in Slovenia, which focuses on rail

port. I utilised my experience in designing and programming business solutions and, with the support of colleagues from both sectors, implemented a business application that fully monitors business processes in goods transport. Other companies involved in organising rail transport have also adopted this application. Our business apps, MyELS and iELS, are evolving and are supplemented with new

modules, just as our company is also undergoing change.

You are the second generation in the company, the “keeper of the flame” for the third generation that will continue to develop the family business? — Tragic life circumstances compelled me to take over the management of the family enterprise, and a lack of conventional education in transport, traffic and economics was compensated through practical experience. My father, Danilo Mrvošević, founder of EurologSystem and a “veteran railwayman”, was a great pillar of support and role model. As I advocate that everyone should do the job they are educated for, I consider myself the “keeper of the flame” for the next generation that is being educated and prepared to lead the company.

My family is involved in both companies. My husband handles fleet management, my son has been working at the company for three years and, after going through operational roles, is preparing to take on a managerial function, and my daughter is pursuing a master’s degree in international economics. They have been involved in the company’s operations in various ways and have attended important business decision-making sessions since childhood. They are now participating in the creating of new business opportunities and shaping an environment that will be tailored to them.

GRAH Automotive has 20 years of experience in development and production of automotive parts. Our portfolio and know-how is constantly growing. In our production plant in Serbia, new products and technologies are developed that are used all over the world.

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TThe EU Still Feels Like Home

The date of 1st May 2004 represented a day of hope and new beginnings, as Slovenia became a member of the European Union. We felt as though we’d finally arrived where we always belonged: in the family of democratic and liberal European countries, who share common standards, norms and values

he road to membership was long and, looking back, we would never have fulfilled this dream if EU accession hadn’t been treated as a national project, the biggest and most important one after independence. It’s worth underlining again that this wasn’t a project of political elites, but rather a project ingrained into all pores of society. It was driven by civil society and citizens, who understood the value and, ultimately, the necessity of being part of the most advanced and ambitious political project in the history of Europe.

Of course, we had our doubts and fears (like everybody embarking on a journey into the unknown), as we were a very young country that had

Slovenia recorded its highest ever annual GDP growth rates in the years immediately after joining the EU, when our economy began participating fully in the Single Market

just recently gained its independence, and the lessons learned/experiences from the past were still fresh in our collective memory.

After 20 years, it is appropriate to look back and attempt to analyze the impact EU membership has had on Slovenian society; on our economic, social, political and cultural development. In the following paragraphs, I will attempt to answer one simple question that everybody asks themselves, especially if they have been living together for a long time: would I do it again?

Personally, I certainly would do it again, and this feeling is still shared by a vast majority of

Slovenian citizens. Although the EU has gone through many crises over the previous decades and many questions have been raised about the ability of the Union to survive in the broader geopolitical context, the support of Slovenian citizens for the EU has always remained strong and unquestionable. Why?

Let’s start with the economy. By becoming part of the European Single Market, Slovenian companies gained access to around 450 million consumers, which was crucial to their growth and development. Slovenia recorded its highest ever annual GDP growth rates in the years immediately after joining the EU, when our economy began participating fully in the Single Market. To date, our per capita GDP has more than doubled compared to the year before accession: up from around €13,200 in 2003 to €27,000 in 2023.

By becoming an EU member state, Slovenia also became eligible for EU budget funding. Over the previous 20 years, more than 15.000 projects – infrastructural, business, educational, social, touristic or energy – have been implemented with the help of European funding. Between 2004 and 2023, Slovenia received €14.3 billion from the EU budget and paid €8.7 billion, meaning that Slovenia has received more than €4.7 billion from the EU budget over the last two decades.

In combination with the euro, cohesion funding and other support policies, this has brought progressive upward economic convergence and has steadily reduced the extent to which Slovenia lags behind older EU member states. The Slovenian standard of living rose from 78% of the EU average in 2004 to 90% of the EU average in 2022.

However, the benefits of EU membership go far beyond the purely economic.

Membership enables our citizens to move, study or work freely throughout the EU, while goods, services and money can move almost as freely as they can within the borders of a single country.

Slovenian tourism has boomed since our country joined the EU. Slovenia recorded 15.6 million overnight tourist stays in 2022, which is twice as many as arrived in the year prior to EU accession. This has created new tourism sector jobs and revenue.

Every year, 2,200 Slovenian students and young people take part in Erasmus+, which gives them the opportunity to study or gain work experience abroad, enriching their education and giving them the chance to acquire valuable international experience.

Free mobility contributes to the transfer and exchange of knowledge and information, which in turn enhances human capital. We have improved our environmental standards and legislation, while the development of Digital Single Mar-

ket has extended the freedoms of the single market to the digital sphere.

EU membership also enables us to better tackle global challenges like climate change, migration, pandemics, security threats and political instability in our neighbourhood.

And finally comes something that I need to both underline and highlight: solidarity. The EU is a family in which solidarity is one of the most important values. Slovenia was hit by catastrophic floods last year, and the level of solidarity shown by the EU and its member states was unimaginable (for lack of a better word).

These are just a few examples that clearly show why we desired so strongly to join the EU and why we believe that only a strong, democratic and resilient European Union is capable of leading by example in the new global geostrategic environment.

WORK IN PROGRESS

The EU remains a work in progress. The Union clearly isn’t the same today as it was 20 years ago, when Slovenia joined the club. Decades of crises and a shifting global environment have left the EU with many questions over our common future. As a sui generis political project, the EU must evolve, adapt and change in order to thrive as one of the most important global actors in the new geopolitical reality.

Over the last 20 years, Slovenians have demonstrated that we are trustworthy, active and responsible partners within the EU, while our ambition is for the Union to grow, develop and integrate.

But what represents the building blocks of this new, more resilient, democratic, transparent and ambitious Union?

Let’s start with the most obvious policy, which was - and remains - the most successful

Enlargement towards the countries of the Western Balkans, which are already located at the heart of Europe, is a must and a geopolitical necessity

Slovenian standard of living rose from 78% of the EU average in 2004 to 90% of the EU average in 2022

tool to enhance democratic transition and economic development in Europe: enlargement. Slovenia believes that the EU cannot become a reliable and strong partner in the global international community without the final consolidation of the European continent. Now, more than ever, when the European neighbourhood is in flames and we have conflicts to the east and to the south of our territory, we need to make bold and geostrategic decisions that will bring countries with a European perspective closer to, and ultimately into, the European family. Russia’s aggression against Ukraine is a sad reminder of what happens when the EU fails to exercise its influence over its immediate neighbourhood. In this context, enlargement towards the countries of the Western Balkans, which are already located at the heart of Europe, is a must and a geopolitical necessity. Slovenia will remain among the most ferocious and adamant advocates of a swift and efficient enlargement process. That’s simply because we know what enlargement brings – both to the EU and to the accession countries. The aforementioned facts are more than evident.

Moreover, the EU needs to change in such a way that it becomes less dependent on external factors and more autonomous in critical areas like technology, economics, energy, defence and security. The EU needs to increase its own competitiveness, while at the same time preserving the

kind of social model that represents the backbone of our modern society.

Am I optimistic? Certainly! The EU has gone through many battles, crises and issues over the past 20 years, and despite many having predicted its demise, it is still here, and is more vibrant and resilient than ever. Slovenia is a proud member of the EU and is looking forward to the next 20 years.

By becoming part of the European Single Market, Slovenian companies gained access to around 450 million consumers

Innovations in Digital Banking

Halcom is a leader in the domain of digital banking and banking solutions. This company has spent 30 years enabling the safe and efficient digitalisation of financial processes for banks, companies and state institutions

Our role is to stay ahead of trends and provide solutions for our clients that are not only at the cutting edge, but also sustainable in the long run. Our desire is to hold on to our leadership position in the domain of digital banking and to continue expanding our portfolio of products and services, says Halcom Serbia Business Development Director Branko Milikić.

Halcom is a company that’s well known in the field of digital payments. Could you tell us more about your products and services?

— Our offer includes a wide array of products and services, such as solutions for e-banking, mobile payments and digital certificates. I would highlight in particular our Digital Journey platform, which enables banks and other financial institutions to provide users with a flawless digital experience.

Could you provide a more detailed explanation of how the Digital Journey platform helps banks adapt to today’s challenges?

— The Digital Journey platform is a key part of our business ecosystem, and integration with the Hal E-Bank solution enables banks to offer their clients a fully integrated and intuitive experience across all digital channels. It is de-

signed to help banks transform themselves into agile organisations that are capable of responding swiftly to changes to the market. Banks need to be both fast and flexible in today’s dynamic environment. Our platform enables banks to integrate new functionalities and products without the need for lengthy development cycles. In this way, banks –or more precisely digital banking sectors – gain a tool that enables them to react quickly to business opportunities

Mobile payments are becoming increasingly popular, while new technologies like AI are changing the way we think about financial transactions

and the needs of users, thereby ensuring their competitiveness and the satisfaction of clients.

How do you see current digital banking trends in Serbia and around the region?

— We see an ever-increasing need for the digitalisation of financial services, especially in light of recent global events, but also the ever-greater focus on a personalised customer experience. Mobile payments are becoming increasingly popular, while new technologies like AI are

changing the way we think about financial transactions.

Could you tell us more about your “Halcom Br-AI-n” AI product and how it contributes to your solutions and future plans?

— Halcom Br-AI-n is our advanced AI product that utilises sophisticated artificial intelligence algorithms to analyse and predict user needs and behaviour. By being integrated into our solutions, including the Digital Journey platform and Hal E-bank, Halcom Br-AI-n enables banks to personalise their services and offers in a way that was hitherto unimaginable. For example, Halcom Br-AI-n can analyse user transactions, help users in their work with the e-bank or manage financial transactions. This not only improves the user experience, but also significantly increases the security of users and their trust in digital banking services.

What are your plans for the future of Halcom in Serbia?

— Our plans are ambitious. Our desire is to hold on to our leadership position in the domain of digital banking and to continue expanding our portfolio of products and services. We are likewise planning to strengthen our presence on the regional market and establish new partnerships with key players in the industry. Innovation lies at the heart of everything that we do, and we believe that’s the key to our long-term success.

Our View of the Tax World and What’s Important

The success of companies in today’s world depends, among other things, on the ability to adapt to constant amendments to tax laws. My experience tells me that regulations change quickly and that lifelong learning and adaptation represent a winning investment for every company. This can be a long and arduous process, but it is important for companies to realise the value of strategic tax planning and the proper structuring of their business.

Not all companies are the same and, as such, they don’t all need the same service and tax planning. Large and medium-sized companies often require a different approach. Unija Consulting, with its regional presence in six countries, offers advice that can significantly improve the operations of these types of companies.

Proactive tax planning is crucial to achieving long-term success. The key to the approach that we take at Unija Consulting is represented by personalised strategies that optimise operations and minimise risks.

Tips for successful tax planning:

Regular monitoring of legislative amendments: constantly monitor changes to laws in order to remain up to date with the latest rules and regulations. Tax optimisation: take advantage of all legal tax breaks and exemptions in order to reduce tax liabilities.

International taxation: plan global activities in such a way that double taxation is avoided.

Transparency and documentation: maintain detailed documentation in order to avoid misunderstandings with the tax authorities.

Where

our strength lies

A regional team and constant communication, as well as work with experts from around the region, enable us to keep abreast of the laws and legislative changes in the region, as well as the trends that await us, and to thus optimise the taxation element of our clients’ regional operations.

We additionally aim to facilitate our clients’ operations and save them time, so we are now able to offer “one-stop shop” services from the very first step of consulting, when it comes to choosing the best legal form for establishing a company, through the second step of providing company establishment services and the third step of establishing good accounting and tax setups that ensure the durability of business operations.

Transparency and education represent the foundations of our work. All our clients are able to rely on us as dependable partners in all of their tax challenges.

In vino PANTHEON

It was in 2010 that the cultivation of grapes and production of wine became the core activity of family company Tody, which has existed for 25 years and saw its operations improve even further with the inclusion of the second generation in the business

Sava Todić, son of the founder of Doja Winery, who joined the family business immediately after graduating from college, introduced us to the software solution that he uses to integrate all important business processes –from accounting and bookkeeping, via warehousing, retail and wholesale operations, to servicing and production.

We know the most important thing about your wines – that they are excellent and we like them – but we don’t know much about your winery. Please familiarise us with Doja... — Doja forms part of family company Tody, which has existed for 25 years already. The winery is located in the Toplica wine region, where we have 42 hectares of vineyards that are dominated by autochthonous Serbian and local varieties Prokupac and Tamjanika, while the remainder is occupied by international varieties like Chardonnay, Cabernet Sauvignon, Merlot and Cabernet Franc.

Tody currently has a staff of 30 employees. Half of them work in production, while the other half are engaged in management, administration and sales. All family members are involved in the business, which is a characteristic of a true family business, and I joined in 2018, after completing my undergraduate studies at the University of Belgrade Faculty of Organisational Sciences.

Considering that many processes unfold within the framework of our company – from production to the sale of products – I am in a position to work on numerous different jobs. I started as a Key Account Manager, which implied maintaining and developing relations with systems of buyers in order to ensure lasting partnerships and profitability, then I gradually shifted increasingly to dealing

We conducted our operations throughout the whole of last year in PANTHEON, which for me is synonymous with order, orderliness, precision and systemisation

with finances, which is my primary interest in general.

When did the need arise to introduce an ERP (enterprise resource planning) software solution? Was it when you realised that it could help you automate business processes and achieve a competitive advantage?

— The process of producing wine lasts several years and it is very demanding to allocate to a given product all the costs (depreciation, energy, staff salaries and other costs) that arise during the production period. It was necessary to implement an ERP programme that would enable this, and PANTHEON was recommended to me in conversation with my accountant and business partners.

The database was ready for us to launch regular operations from the beginning of January 2023, while over the course of the subsequent few months, through its support, we solved problems that had arisen in the process of calculating the cost of production per grape, and then the cost of producing the wine. We solved the problems with work orders and monthly allocations of costs, while reports on production, sales, and expenditure factors were adapted to our requirements.

Are you satisfied with the solution and support? What is your overall impression of PANTHEON?

— I liked the clear and simple look of the program and the way it works, as well as the wide range of reports already generated. We conducted our operations throughout the whole of last year in PANTHEON, which for me is synonymous with order, orderliness, precision and systemisation, and we now have a clear approach to the cost per grape in the previous harvest, as well as the white wine that produced from those grapes. For the rest of the wines, which are currently aging, we will receive the cost per unit in the following period. PANTHEON has enabled us to arrive at a precise cost per unit, which is otherwise difficult to achieve in our production process and is essential for us to run the entire business well.

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Life The and Remarkable Enduring Legacy

Have you ever heard of Columbus’ daughter? This is how the citizens of Celje referred to Alma Maximiliana Karlin, a Slovenian traveller, writer, poet, collector, polyglot, and theosophist. She was one of the first European women to circumnavigate the globe alone

Alma Karlin lived her life with extraordinary independence and determination, despite numerous challenges and dangers. Unlike many of her contemporaries, she travelled without financial support. Setting off at the age of thirty, she encountered and overcame many obstacles. Her travel books, published during the interwar years, made her one of Europe’s best-known authors. However, her outspoken opposition to the Nazis and refusal to align with Communist demands led to her being largely forgotten.

CHILDHOOD AND ADOLESCENCE

Alma M. Karlin was born in 1889 in Celje, then part of the Austro-Hungarian Empire. Her parents were German-speaking Slovenians; her mother, a forty-five-year-old teacher, and her father, a sixty-year-old retired major of the Austro-Hungarian Army. Born with a low-

In London, she taught languages and immersed herself in the diverse cultures of her students, which sparked her desire to explore these cultures firsthand

ered left eyelid, Alma faced rejection from her mother from an early age. However, she shared a close bond with her father, who educated her with an emphasis on fortitude and independence. Tragically, her father died when she was just eight years old, leaving her at the mercy of her mother’s strict and often harsh upbringing. Alma’s mother tried to mould her according to contemporary social norms, but Alma resisted. Despite developing inferiority complexes due to her mother’s rejection, she grew into a brave and determined young woman. At sixteen, she realised that education was her key to economic independence and a way to break free from her mother’s influence. This insight drove her to leave Celje, a town rife with nationalistic

tensions between Germans and Slovenians, and seek opportunities elsewhere.

SETTING OFF INTO THE WORLD

At eighteen, Alma left her home for London, embarking on what she called a “voluntary exile.” In London, she taught languages and immersed herself in the diverse cultures of her students, which sparked her desire to explore these cultures firsthand. She excelled in learning languages, passing top of her class in exams for Norwegian, Swedish, Danish, English, French, Spanish, Italian, and Russian at the Royal Society of Arts.

The outbreak of World War I forced Alma to leave London for Norway and Sweden, where she discovered her passion for writing. In 1919, at the age of thirty, she returned briefly to Celje, packed her typewriter “Erika” and the ten-volume dictionary she had compiled, and set off on a global journey. She worked as a language teacher, translator, journalist, and travel writer. Despite facing financial hardships and lacking travel permits, she navigated numerous detours to reach her destinations, particularly Japan, which she longed to explore.

THE JOURNEY

Alma’s journey was anything but smooth. She travelled across South and North America, Japan, Asia, Australia, the Pacific Rim, and India. Along the way, she faced numerous personal challenges and life-threatening illnesses. Despite these obstacles, she continued her travels, documenting her experiences in her writings. Alma’s resilience and determination to overcome adversity were evident as she navigated through unfamiliar territories and cultures, often without adequate financial resources.

In Japan, Alma spent a blissful year filled with profound impressions. From Japan, she continued her travels, visiting various countries and immersing herself in their cultures. Her extensive travels and the stories she gathered enriched

her writings, which became well-known in Europe and beyond during the interwar period.

DIFFICULT TIMES

Upon returning to Celje in 1927, Alma continued to write novels and travel books. Despite her literary success, she faced hostility and scepticism in her hometown. Her travel trilogy, published in Germany between 1929 and 1933, was translated into several languages and achieved international success. However, the rise of the Nazis brought severe repercussions. Her books were banned, and she was imprisoned as an enemy of Hitler’s ideology. Remarkably, she escaped execution thanks to a Gestapo officer who was a fan of her travel books. During World War II, Alma joined the partisans in 1944, but her movements were restricted, and she was constantly monitored. Her opposition to

the partisans ordering her liquidation, she managed to survive. However, she never returned to England, where she had hoped to spend the rest of her life. In post-war Yugoslavia, she was ostracised as a German-speaking writer and lived in poverty until her death from breast cancer in 1950.

LEGACY

Alma Karlin was a prolific writer, publishing twenty-four books, over forty short stories, numerous articles, poems, notes, and drawings. Her works were highly regarded in Central Europe, and her lectures attracted large audiences. Many of her travel books, novels, ethnological, and theosophical works were published between 1921 and 1938, some reaching print runs of over 80,000 copies and being translated into multiple languages.

She excelled in learning languages, passing top of her class in exams for Norwegian, Swedish, Danish, English, French, Spanish, Italian, and Russian at the Royal Society of Arts

Despite her financial constraints, Alma collected a variety of items during her travels. These collections include postcards, textiles, and her own zoological and botanical watercolour drawings. These artefacts offer a glimpse into her eight-year journey around the globe and her deep interest in the cultures she encountered. Alma’s contributions to literature and her adventurous spirit are commemorated in a permanent exhibition titled “Paths of Alma M. Karlin” at the Celje Regional Museum. In 2009, a documentary about her life, “Alma M. Karlin: A Lonely Journey,” was released, further solidifying her legacy as one of the most remarkable women of her time. Her story is a testament to her resilience, independence, and unwavering quest for knowledge and adventure.

Kneza Miloša

We Will Outdo Ourselves

The Slovenian Business Club will become an even stronger and more influential business player in Serbia, Slovenia and around the region, with a strong network of contacts and partnerships

An entire generation of businesspeople has grown up since the founding of the Slovenian Business Club two decades ago. “Our membership today includes companies whose directors are the children of those directors who were at the peak of their power at the time of the SBC’s inception. That’s why this jubilee represents an impressive achievement,” says Slovenian Business Club President Danijela Fišakov in this interview.

Numerous parameters have contributed to the SBC’s durability and to its vitality, as well as the fact that it is constantly current. “Among these parameters, I would highlight dedication and maintaining operational continuity, as well as the constant engagement and support of members. In order to retain their support throughout this entire time, and to ensure their participation in the association’s work, the SBC set itself the imperative of constantly delivering new values to its members,” explains Fišakov.

Speaking in another interview 10 years ago, you criticised the lack of a financial culture in Serbia. What has changed for the better over these 10 years and what still concerns you?

— Improving the business climate in Serbia depends, firstly and undoubtedly, on the state’s attitude towards this issue and its focus on creating a favourable environment for doing business. Serbia has done a lot over the last ten years to position itself as one of the most important investment destinations in Central and Eastern Europe. The advantages of doing business in Serbia are reflected in competitive tax rates that are among the lowest in Europe, a restructured and stable financial system, simple procedures to establish and register a company, simple procedures for conducting foreign trade operations and implementing investments, free access to a market numbering billions of consumers, a high-quality business environment with a system of incentive measures that are provided by the state, and an educated workforce, particularly in the fields of IT, engineering and languages. The development of innovative technologies also attracts foreign investors and increases Serbia’s attractiveness as a business destination. Coupled with other factors, these advantages make Serbia an attractive destination for foreign investments in certain industries.

It is nonetheless essential to continue strengthening the rule of law constantly and more intensively, i.e. advancing the independence of the judicial system, while intensifying the fight against corruption and organised crime, which would ensure personal and business legal security.

How interesting to your members are the projects being encouraged by the EU in Serbia under the scope of green transition and the Growth Plan for the Western Balkans?

— The development of industry has brought humankind, apart from progress, the essential need to protect the environment. The implementation of the Green Deal and adaptation to new business circumstances represent major challenges for all economies around the world, including Serbia’s. As with all challenges, these ones are overcome more easily and successfully by working together. Given that Slovenia is an EU member state and that Serbia is on the right track to attaining EU standards, endless opportunities for cooperation exist when it comes to developing policies and strategies, and to implementing regulations on environmental protection and sustainable development.

The projects being encouraged by the EU in Serbia under the scope of green transition are attractive primarily to companies that operate in the fields of producing and using sustainable materials, green energy production and other areas that contribute to preserving the environment. These companies find it very useful to exchange experiences and knowhow, and to work on the development of new products and services together with other companies outside of Serbia. Our members operating in the research and development field have the capacity to develop new technologies and innovations that will contribute to preserving the environment and implementing the Green Deal.

Expo 2027 is viewed in Serbia as an opportunity for both the economy and tourism. Considering Slovenia’s experience in developing tourism and the hotel industry, what would you advise our businesspeople?

— Despite Slovenia having not yet organised events of this scale, the Slovenian experience of developing tourism and the hotel industry could prove very valuable for Serbia in the context of preparations for Expo 2027. Slovenians are known for their sustainable approach to tourism, for promoting green tourism, local gastronomy and wine, for developing specific forms of tourism and for the constant educating of tourism personnel. Slovenian experiences and good practices are highly applicable in Serbia. Investing in environmentally friendly hotels, reducing waste materials and promoting local products will attract environmentally conscious tourists to Serbia. Serbian tourism workers can take advantage of Serbia’s authentic cuisine and develop an offer that includes local gastronomic

COUNCIL

The CEBAC will work with dedication to advocate for and encourage the implementation of strategies that will strengthen cooperation between Serbia and other European markets

OBSTACLES

It is essential to reduce administrative obstacles that hamper operations in Serbia, such as the continued lengthy procedures for issuing various permits and many unclear laws and regulations

OPPORTUNITY

Our member companies see green transition projects as an opportunity for investment and economic growth through the implementation of new technologies

The Slovenian experience of developing tourism and the hotel industry could prove very valuable for Serbia in the context of preparations for Expo 2027

specialities and wine tours. There is huge potential to develop historical, spa, health and adventure tourism.

In order for Serbia to realise its full potential, it is essential to continue investing in transport infrastructure. Modernisation of the road and rail network eases access for tourists, but also other participants in the economy. We also have very positive experiences with the use of digital tools to promote tourism. Tourists like to know where they are going and what they can expect in advance, and they are helped and attracted a lot in this sense by high-quality websites, mobile apps, social media presentations and online booking systems. Last, but by no means least, it is necessary to point out the extremely positive experiences and good practices resulting from cooperation between the private and state sectors, which is key to the development of tourism.

What are the main goals and expected impacts of the newly established Council of European Business Associations and Chambers in Serbia; and how, in this light, do you envisage the improvement of the business climate in Serbia? — European business associations and bilateral chambers representing the interests of companies operating with European capital in Serbia joined forced with the establishing of the Council of European Business Associations and Chambers in Serbia. The memorandum of association has been signed, thus marking the start of a new era of cooperation and synergy within the European business sector in Serbia. In its future work, this newly established body will provide a more detailed definition of common interests and serve as a platform for all future initiatives and activities. The main goal of the CEBAC – Council of European Business Associations and Chambers is to further develop and support the improvement of the legal, institutional and competitive business framework for the successful performance of all companies operating in Serbia, both those with international capital only and those that also have local capital.

Decade Days Celebrated Anniversary of Slovenian Film

The milestone tenth edition of the Slovenian Film Days, showcasing a retrospective of selected films by Slovenian authors, guests, and participants from 2015 to the present, was held at the Yugoslav Film Archive in May

Speakers at the event included H.E. Damjan Bergant, Ambassador of the Republic of Slovenia in Belgrade; Dr. Asta Vrečko, Minister of Culture of the Republic of Slovenia; Saša Verbič, President of the National Council of Slovenians in Serbia; and Jugoslav Pantelić, Director of the Yugoslav Film Archive.

The festival was officially opened by Jure Ivanušič, a prominent Slovenian actor and versatile film author. In his speech, Ivanušič expressed his enjoyment of spending time with colleagues from Serbia and friends from Slovenia.

“As I enjoyed walking the city streets alone in the rain without an umbrella two days ago, I thought about how we live in epic times without

anything epic in us, how music is sold like shaving foam, how all despair is sold—everything is capital, advertisement, and consumers. I want to say that these are the themes Slovenian film deals with and themes with which you can dance in the rain without catching a cold. In short, I wish you to enjoy the screenings, constructive debates, a lot of socialising, and good cheer,” said Jure Ivanušič.

Saša Verbič, President of the National Council of Slovenians in Serbia, thanked the event’s partners and sponsors and presented a plaque to Jugoslav Pantelić, Director of the Yugoslav Film Archive.

After the opening ceremony, two films premiered in the Makavejev Hall of the Yugoslav

The festival was officially opened by Jure Ivanušič, a prominent Slovenian actor and versatile film author.

In his speech, Ivanušič expressed his enjoyment of spending time with colleagues from Serbia and friends from Slovenia

Film Archive. The short documentary “Ita Rina – Diva from Divača” by Vladimir Šojat is about one of the most beautiful and noted actresses of the silent film era who sacrificed a Hollywood career for love in Belgrade. The audience also watched “Caught at the Source – Slovenian Children of Lebensborn” by Maja Weiss, a documentary about the last surviving victims of the Nazi racial experiment. In 1942, thirty “racially suitable” Slovenian children were included in the infamous Lebensborn program, founded by Heinrich Himmler to expand the Aryan race.

An exhibition of posters and photographs from previous editions of the Slovenian Film Days was also organised in the hall of the Yugoslav Film Archive as part of the opening ceremony. The exhibition featured valuable artistic works by photographer Irena Herak, cultural and media advisor at the Embassy of the Republic of Slovenia in Belgrade. From the beginning of the Slovenian Film Days festival, Irena Herak contributed to the visual identity of the event by capturing personalities, events, and artist encounters with her camera.

Celebrating 30 Years: The Tour of Slovenia

The Tour of Slovenia is the country’s main cycling event, featuring a top-class field of Slovenian and international professional cyclists. Having hosted many world-class cyclists and teams since its launch more than 30 years ago, the Tour of Slovenia has established itself as an event of international stature. The winners of the race include Slovenian aces and currently two of the world’s top cyclists, Primož Roglič and Tadej Pogačar. Throughout its rich history, the race has become a unique sporting event

that, with its varied stage routes, connects places across Slovenia and attracts large crowds of spectators, both on the roadside and in front of TV screens, spreading the good word about Slovenia and its image as a boutique and green country.

Although it officially celebrated its 30th anniversary last year, the 2024 Tour of Slovenia is the 30th edition of the race. The race has been cancelled only once. In 2024, cyclists will race in Slovenia between 12 and 16 June.

Bridging the Economies of Serbia and Slovenia

The Slovenian Business Club (SPK) is a business association that, for over two decades, has acted as a stable bridge between the economies of Serbia and Slovenia, providing strong support to its members in all their activities and business ventures. One of the key factors that has made SPK enduring is its continuity in operations and the constant engagement and support of its members.

The club, with its 150 members, is a hub of activity, successfully organizing more than 20 events each year. These include working breakfasts with the most current topics, regional conferences, networking events, and many other meetings. These

events are not just opportunities for members to stay updated with the latest information from the business environment but also platforms for direct communication and networking, fostering valuable connections and collaborations.

In April 2024, the club embarked on its 22nd year of operation, filled with anticipation for the diverse activities and ample support for companies ahead. The coming period promises a wealth of events within traditional and proven formats, supplemented by new formats that align with trends and needs, offering our members exciting opportunities for growth and development.

MAY

2024

ESTABLISHMENT OF THE COUNCIL OF EUROPEAN BUSINESS ASSOCIATIONS AND CHAMBERS IN SERBIA

European business associations and bilateral chambers representing companies with European capital in Serbia, including the Slovenian Business Club, joined forces to establish the Council of European Business Associations and Chambers in Serbia. The signing of the memorandum marks the beginning of a new era of cooperation and synergy for the European business sec-

tor in Serbia. This newly established body will define common interests and serve as a platform for all future initiatives and activities. The signing was carried out at the Hyatt Regency Belgrade Hotel in the presence of the European Commissioner for Enlargement, Oliver Varhelyi, and ambassadors from the member association countries. In addition to the Slovenian Business Club, the memorandum was also signed by the following organisations: Belgian-Serbian Business Association, Confindustria Serbia, Croatian Business Club, French-Serbian Chamber of Commerce, British-Serbian Chamber of Commerce, Hellenic Business Association of Serbia, Italian-Serbian Chamber of Commerce, Dutch-Serbian Business Association, Polish-Ser-

bian Chamber of Commerce, German-Serbian Chamber of Commerce, Nordic Business Alliance, Swiss-Serbian Chamber of Commerce. The same day, a celebration and the council’s first official event, the European Networking Cocktail, was organised. The event gathered over 200 guests from the diplomatic and business world, including many members of the Slovenian Business Club.

APRIL 2024 CEO GATHERING

In collaboration with its member and friend of the club, NLB Commercial Bank, the SPK organised a CEO gathering in the new setting of the NLB Commercial Bank building. This exclusive event brought together over 60 CEOs and company owners for networking and idea exchange. Speakers included Danijela Fišakov, President of the Slovenian Business Club; Vladimir Bošković, Board Member of NLB Commercial Bank; and His Excellency Damjan Bergant, the Ambassador of the Republic of Slovenia to Belgrade. After the welcoming speeches, members had the opportunity to exchange business visions and experiences in a friendly atmosphere, creating potential new contacts for developing and expanding professional networks.

MARCH 2024

WORKING BREAKFAST: “IMPACT OF THE AMENDMENTS TO THE FOREIGNERS ACT AND THE EMPLOYMENT OF FOREIGNERS ACT”

In collaboration with the CANSEE Canadian-Serbian Business Association and TSG Lawyers Belgrade law firm, a Working Breakfast was organised on the topic “What do the amendments to the Foreigners Act and the Employment of Foreigners Act bring us? Dilemmas and challenges in practice”. The Working Breakfast was held at the Holiday Inn Hotel, with the presence of representatives from relevant state authorities and a

large number of members, as well as foreign embassies, consultants, and legal advisers. Representatives from the Ministry of the Interior, Ministry of Labour, Employment, Veteran and Social Affairs, and the Office for Information Technologies and Electronic Administration spoke on this very topical issue, which includes changes in regulating the immigration status of foreigners in the Republic of Serbia and examples from practice. Participants had the opportunity to hear from panellists, who possess significant experience in this area, about the new rules for the employment of foreigners in Serbia and exchange dilemmas and challenges from practice. After the lecture, in an informal atmosphere, the discussion continued on all open questions and expectations about the results that the changes will bring.

INTERNATIONAL COFFEE BREAK KOPAONIK

In collaboration with the British-Serbian Chamber of Commerce, German-Serbian Chamber of Commerce, Chamber of Italian-Serbian Businessmen, and Nordic Business Alliance, the Slovenian Business Club organised the “INTERNA-

TIONAL COFFEE BREAK”, a special networking event within the Kopaonik Business Forum. Over 100 members, representatives of the business community and companies from various business sectors gathered at the fifth consecutive event - International Coffee Break at Casa Restaurant of the Grand Hotel.

Forum participants had the opportunity for informal networking, sharing experiences and ideas, creating new business contacts, and interacting with members from other business associations in Serbia, providing insights into collaboration opportunities, activities, and company plans. This initiative was the result of collaboration among five bilateral chambers in Serbia, aimed at enhancing the business climate through mutual connection and cooperation.

DECEMBER 2023

NEW YEAR’S GATHERING AND 20TH ANNIVERSARY CELEBRATIONSLOVENIAN BUSINESS CLUB

The Slovenian Business Club celebrated its landmark 20th anniversary at the Hyatt Regency Hotel in Belgrade. The traditional New Year’s gathering brought together over 200 guests

to celebrate this impressive milestone and all past business successes. Members, friends, representatives of the Embassy of the Republic of Slovenia in Serbia, and representatives from many other companies were addressed in the opening part by the club president Danijela Fišakov, as well as His Excellency Damjan Bergant, Ambassador of the Republic of Slovenia to Belgrade. For significant contributions and great support, SPK extended thanks to the state institutions of both countries and to the most loyal member companies that have been a support and foundation in the business and development of the club from the very beginning.

OCTOBER 2023

SPEED BUSINESS MEETING

The Speed Business Meeting at Mona Plaza Hotel was held in collaboration with the Slovenian Business Club, CANSEE Canadian-Serbian Business Association, Chamber of Italian-Serbian Businessmen CCIS, AmCham, British-Serbian Chamber of Commerce BSCC, and Swiss-Serbian Chamber of Commerce.

The event gathered 70 representatives from member companies across various business sectors intending to connect foreign and domestic businessmen. During the 10 quick and efficient eight-minute “one-on-one” meetings, participants had a unique opportunity to present their company, establish a large number of business contacts, and initiate possible new business projects.

SECOND REGIONAL CONFERENCE LOGISTICS AND TRANSPORT: AT THE HEART OF THE ECONOMY

SPK held the conference “Transport and Logistics: At the Heart of the Economy” in partnership with the Association of Italian Industrialists-Confindustria Serbia, the Chamber of Commerce and Industry of Serbia, and the Croatian Chamber of Economy at the Chamber of Commerce and Industry of Serbia, attended by over 200 businessmen from four countries. The conference was organised through interactive and dynamic panels, which aimed to offer innovative solutions and new strategies while also identifying critical issues concerning the transport and logistics sector. Participants had the honour of being ad-

dressed by His Excellency Damjan Bergant, Ambassador of the Republic of Slovenia to Belgrade, and Goran Vesić, Minister of Construction, Transport and Infrastructure.

SEPTEMBER 2023 INTERNATIONAL NETWORKING COCKTAIL

Continuing the tradition of gathering representatives of prestigious companies in Serbia, organised with as many as 16 bilateral chambers of commerce and business associations, SPK organised an “International Networking Cocktail” at the Metropol Hotel in Belgrade, which brought together more than 350 company representatives from member associations. Cocktail participants were representatives from a wide range of industries and sectors, members of the Slovenian Business Club and bilateral associations present in Serbia, including the Belgian-Serbian Business Association, British-Serbian Chamber of Commerce, Brazilian-Serbian Chamber of Commerce, CAN-

SEE Canadian-Serbian Business Association, French-Serbian Chamber of Commerce, Hellenic Business Association of Serbia, Dutch-Serbian Business Association, Croatian Business Club, Irish-Serbian Chamber of Commerce, Japanese Business Alliance in Serbia, Chamber of Italian-Serbian Businessmen, German-Serbian Chamber of Commerce, Nordic Business Alliance, Business Club UAE & Serbia, Swiss-Serbian Chamber of Commerce, Confindustria Serbia.

JUNE 2023

BUSINESS CONFERENCE ON SLOVENIAN TRANSPORT LOGISTICS

In partnership with the Chamber of Commerce and Industry of Slovenia (Association for Transport and Centre for International Business), the SPIRIT Slovenia agency, Slovenian Railways, the Port of Koper, and with the support of the Chamber of Commerce and Industry of Serbia, SPK organised a Business Conference on Transport Logistics - a Slovenian logistics conference for the needs of the Serbian economy and market,

attended by a business delegation of more than 30 Slovenian companies, with over 120 businessmen participating.

The purpose of the Slovenian delegation was to present and promote the competencies, capacities, and services of the Slovenian transport and logistics sector for the needs of Serbia and the region, thereby reviving Slovenia’s significance and leading role and encouraging greater cooperation between the Western Balkans and the rest of Europe.

MAY 2023

REGIONAL CONFERENCE - BUSINESS WITH A PURPOSE

The regional conference Business with a Purpose, under the slogan “The whole region—one conference,” was organised in collaboration with SPK and its member D.R. Gil -

bert Center Group at the Mona Plaza hotel in Belgrade. To the great satisfaction of all present, the Minister of Internal and Foreign Trade, Tomislav Momirović, addressed the introductory part.

The conference gathered over 200 participants and 30 speakers, providing opportunities for inspiring lectures, panel discussions, and informal networking, promoting ideas about regional connection and cooperation.

FINANCE FORWARD

Jorgovanka Tabaković Governor of the National Bank of Serbia

Aleksandar Bogdanović President of Executive Committee of Yettel Bank

14 Let a Thousand Flowers Bloom

Rade Rakočević CEO and Founder of Senzal Capital Belgrade

16

and Adaptive

Zoran Blagojević Chairman of the Executive Board of Wiener Städtische Insurance

Twenty Years of the Credit Bureau of the Association of Serbian Banks

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

DESIGN

Slađan Radosavljević Zoran Perović design@aim.rs

PHOTOS Zoran Petrović

COPY EDITOR Mark Pullen

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Mihailo Čučković m.cuckovic@aim.rs Nataša Novković n.novkovic@aim.rs

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs

FINANCE Dragana Skrobonja finance@aim.rs CEO Ana Novčić a.novcic@cordmagazine.com

PUBLISHER Ivan Novčić i.novcic@aim.rs

Rotografika d.o.o. Segedinski put 72, Subotica FINANCIAL SECTOR 2024

Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 125806, Serbia Phone: +(381 11) 2450 508

office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com

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2023

SERBIAN FINANCIAL SECTOR’S STRONG MODERNISATION

By prioritising digitalisation, Serbia’s financial sector can remain agile and responsive in a rapidly evolving market landscape, positioning itself for continued success in the digital age

Serbia’s steady growth prospects indicate a resilient economy with opportunities for investment and innovation. Additionally, falling inflation rates suggest a controlled economic environment that’s conducive to sustainable growth. For the financial services industry, this translates into a stable operating environment, encouraging confidence among investors and consumers alike. As Serbia continues to position itself as an attractive destination for business and investment, the financial sector is poised to play a pivotal role in driving economic development and prosperity.

Banks have historically been the go-to source for companies seeking financing, as they offer a range of products and services to support business growth. In Serbia’s banking sector, a small number of banks dominate the market. However, while larger banks hold sway, smaller institutions, like the new Yettel Bank, are carving out their own niche, indicating a potential shift in strategy for highly specialised players offering tailored services to specific sectors. By focusing on specialised servic-

es, these banks can distinguish themselves from larger competitors and attract clients seeking personalised solutions. Moving forward, this diversification of the banking sector could lead to increased competition and innovation, ultimately benefiting consumers with a wider range of options and tailored services.

Serbia’s banking and insurance sectors are digitalising rapidly, boosting efficiency, modernising services and enhancing client satisfaction. This shift also spurs innovation from start-ups offering cutting-edge solutions and services in these industries. Moreover, these changes receive support from expert services that are crucial for fulfilling legal requirements in delicate and complex financial operations.

AS CONSUMERS INCREASINGLY TURN TO DIGITAL CHANNELS FOR THEIR BANKING AND INSURANCE NEEDS, MARKET PLAYERS ARE COMPELLED TO ADAPT AND INNOVATE IN ORDER TO REMAIN COMPETITIVE

In the future, it will be essential to actively showcase the investment opportunities available to Serbian citizens, including shares, ETFs, alternative funds, cryptocurrencies, gold, and crowdfunding. By diversifying sources of capital, Serbia’s economy can become more resilient and adaptable to changing market dynamics. Moreover, increased competition in the financing space could lead to improved terms and conditions for borrowers, ultimately benefiting all stakeholders in the economy.

WE’RE ADVANCING STEADILY TOWARDS OUR GOAL

The improving of the country’s external position as a result of a stronger export performance and higher net FDI inflows, as well as the maintaining of a stable fiscal position, will bring us closer to obtaining an upgraded credit rating

ational Bank of Serbia

NGovernor Jorgovanka Tabaković stated recently that the Serbian economy’s resilience in the face of global shocks has once again been put to the test and confirmed. This relates primarily to easing inflation, steady economic growth and good export results. However, growth figures remain far from sufficient to place Serbia on a trajectory ensur-

ing the country’s faster convergence with the EU.

What are the key challenges preventing Serbia from achieving this kind of growth?

— According to our May projection, economic growth will stand at around 3.5% this year, while we project growth ranging from four to five per cent in the coming years. According to international finan-

cial institutions, this year Serbia’s economic growth will be among the highest in the region of Central and Southeast Europe. Those responsible for Serbia’s economic policy are striving to secure a sustainable economic growth rate over the long term that doesn’t cause a problem in terms of external and fiscal imbalances and doesn’t lead to rising inflation, and that is only possible in the way Serbia’s

Governor of the National Bank of Serbia

economic policy is currently being conducted. In the period prior to the 2008 global economic crisis, Serbia’s economic growth averaged six per cent annually, but this was unsustainable because it was based on expenditure, while investments and net exports had a contribution that was either negligible or negative. Achieving a GDP growth rate of seven per cent at this juncture would imply significantly faster growth of personal and government spending, which isn’t sustainable in the long term because it would result in rising inflation and an increasing fiscal deficit and public and external debt, as well as a poorer credit rating and sources of financing being more expensive and less available. Instead of this,

the end of this April. Given the fact that we were exposed to the biggest shocks in recent history over the past three years and that rising inflation was largely driven by global cost-push pressures, but also that we managed to maintain our country’s overall macroeconomic stability even under the circumstances of the greatest global uncertainty following the outbreak of the energy crisis and the conflict in Ukraine, reducing inflation to levels close to the target range can be considered a success. It should be noted in particular that we succeeded in preserving the relative stability of the foreign currency exchange rate, and the anchoring of medium-term inflation expectations, throughout the entire period of the global cri-

WE WEREN’T ABLE TO PREVENT INFLATION GROWTH FROM OCCURRING, BUT WE CERTAINLY LIMITED THAT GROWTH SIGNIFICANTLY AND ENSURED ITS DOWNWARD TRAJECTORY

we’ve decided to accelerate economic growth and increase production capacities gradually, while simultaneously ensuring a favourable growth structure.

According to your forecasts, inflation could enter the target tolerance band of 3 to 4.5 per cent as early as this month (May). However, looking back at the total increase in the cost of living over the previous period, could it really be said that Serbia’s struggle against inflation was successful?

— According to our projections, inflation is most likely to return to within the target range this month, after which it will continue to slow and will, as of next year, fluctuate around the midpoint of three per cent. Inflation has maintained a strong downward trajectory since April last year and fell by 11.2 percentage points to five per cent by

— The key factor contributing to high FDI inflows, which reached a record level of 4.5 billion euros last year, is certainly the maintaining of macroeconomic stability even during periods of the biggest challenges at the global level, while relative exchange rate stability and a healthy and stable financial sector were ensured by the favourable macroeconomic prospects of our economy, an important part of which is price stability over the medium term. Additional factors of importance for FDI inflows include structural improvements to the competitiveness of our economy, a good strategic position and close proximity to the European Union, which is still the source of the majority of investments, as well as the fact that Serbia has the largest economy in the Western Balkan region. As is often emphasised by foreign investors, it is no less important that Serbia has a high-quality and highly qualified workforce and that it has signed FTAs with the European Union, CEFTA countries, Turkey, Russia and, as of recently, China.

GRADUAL

We’ve decided to accelerate economic growth and increase production capacities gradually, while simultaneously ensuring a favourable growth structure

ses that emerged one after another, while in recent months we’ve also recorded an accelerated decline in the short-term expectations of the financial and business sectors. We weren’t able to prevent inflation growth from occurring, but we certainly limited that growth significantly and ensured its downward trajectory, while simultaneously minimising the negative impact of tightening monetary conditions on economic growth and financial stability. Moreover, we have ensured the preservation of the real value of citizens’ wages and living standards as a result of the curbing of inflation and the growth of nominal income under conditions of positive economic growth expectations.

When it comes to FDI inflows, what are the key growth triggers today?

You recently assessed Serbia as being halfway towards the historic goal of receiving an upgraded credit rating. What represents the other half of this journey?

— We take great care in analysing every recommendation of ratings agencies in areas requiring further improvement, which we address responsibly and systematically. Ratings agencies are essentially seeking that we merely continue applying sound and sustainable economic policies. It is precisely due to the fact that countries were confronted by multiple crises over the previous four years that credit rating agencies are currently taking into consideration the ways economic policymakers reacted under such circumstances. The strengthening of Serbia’s economic position during the aforementioned period, as well as the resilience against shocks from the international environment demonstrated by our economy, provide us with reason for op-

ADVANTAGES

An important factor for FDI inflows are the FTAs that Serbia has signed with the EU, CEFTA countries, Turkey, Russia and, as of recently, China

RESERVES

We have secured record foreign currency reserves exceeding 25 billion euros, which cover over 300% of the debt due for repayment within a one-year period, so we have no reason to worry about our external debt

timism that Serbia could receive an investment grade in the near future. Factors potentially leading to an upgraded credit rating include an improved external position of the country under the conditions of a stronger export performance and higher net FDI inflows, as well as maintaining an orderly fiscal position. One of the recommendations that’s under the jurisdiction of the NBS relates to the need to make further progress in the area of dinarisation. With an awareness that this is a long-term process, we are working with a commitment to en-

THE NBS PROVIDES STRONG SUPPORT, IN THE POLITICAL FORMAT OF THE TALKS, TO FINDING A SOLUTION AND ENSURING THE USE OF THE DINAR IN OUR SOUTHERN PROVINCE

suring the future continuation of the positive trend of dinarisation, which has undoubtedly been present since 2012.

Despite investments being generally high, there have essentially been no changes in the former main investment sectors, such as the banking and insurance sectors, except if we exclude the departure of foreign banks and the reinforcement of the positions of domestic ones. How would you explain this?

— Thanks to decisive and essential reforms, as well as intensive regulatory activities, we have established a suitable operational framework for banks and insurance companies, as well as a favourable environment for the arrival and operations of credible and creditworthy investors. The changes of ownership and status that led to the consolidation of the domestic banking sector in the previous period were depend-

ent on the individual decisions and business policies of shareholders, who were guided by the legislating of a competitive market and their own business interests, as well as the NBS’s assessment of the economic justification of those status changes and their impact on the state of the financial market. From our perspective, it is crucial that bank owners be committed to effectively supervising their own operations, regardless of whether they are under foreign or domestic ownership. This is achieved by ensuring the professional management of banks that focus on both business results and stable growth in the value and quality of the assets those banks manage, but that focus above all on the interests of the clients that they live from. The same principles also apply to the insurance sector.

We are recording good current account deficit coverage, very good export results and the growth of foreign currency reserves. Is that sufficient for us to consider it unnecessary to worry about the growth of debt in general, and particularly towards large creditors such as China?

— When it comes to the indebtedness of the state, the economy or individuals, it is important to bear in mind what these funds will be used for, the debt repayment deadline, the borrowing conditions and currency, and primarily whether it will be able to be utilised to service our obligations. Our economy’s external debt possesses all of these desirable aspects, as supported by the declining trajectory of that debt, the good currency compatibility of the government debt with the currency structure of foreign reserves and the predominant debt of the economy in euros, in which export revenues are also generated. When it comes to the debt to China, it accounts for approximately 10% of our total foreign debt, and the lion’s share of that debt belongs to the government, which relates entirely

to loans for projects in the fields of transport, energy and utility infrastructure. The infrastructure that it provides will contribute to building our production and export capacities, and thus also to generating income that we will be able to utilise to service our existing debt repayment obligations.

What is your stance with regard to the position of the dinar in Kosovo and possible outcomes?

— Our position has remained unchanged from the outset. We most strongly condemn the illegal measures taken by the Provisional Institutions of Self-Government in Kosovo and Metohija, which prohibit the use of dinars in our southern province. These measures were adopted hastily, covertly, under the pretext of various quasi-monetary and quasi-financial excuses, and without any legal and legitimate basis. These measures don’t only contravene elementary international finance and banking standards, as well as agreements made to date and the way dinar cash flows have been unfolding for years, but are rather directly intended to deny the basic income earned in dinars by the population and businesses in Kosovo and Metohija. The institutions of the Republic of Serbia are exerting huge efforts to ensure an effective solution to the problem that has arisen. And in discussions to date, under extremely difficult circumstances, they have demonstrated exceptional constructiveness and willingness to reach an agreement and solve the problem, which has unfortunately been lacking on the Priština side so far. The NBS provides strong support – in the political format of the discussions and within the dialogue at the existing level – to providing an effective solution, without delay, to the problem caused by the adoption of these discriminatory, illegal and unprecedented measures, and to providing protection to the Serbian people in Kosovo and Metohija.

CORPORATE

YETTEL BANK APP: SECOND-GENERATION VIDEO IDENTIFICATION

I am proud to lead our customers into a new era of secure digital banking by the end of this year, with the introduction of second-generation video identification: Liveness

ALEKSANDAR BOGDANOVIĆ

President of Executive Committee of Yettel Bank

s we move forward with launching the new Yettel Bank application, we have taken the first step towards creating a bank that prioritises your needs and preferences. As we advance along this path, we have placed the utmost importance on enhancing security measures, because safeguarding your data is our top priority. We have implemented the latest technologies and established stringent protocols to ensure that your data remains safe and protected at all times.

ATechnologies like facial recognition and fingerprint identification were once rare, while they are today popular features integrated into numerous applications, including the new Yettel Bank app. However, our drive to provide customers with uncompromising security has led us to seek solutions that set new standards in data protection. I am thrilled to announce that, by the end of the year, we will propel our customers into a new era of secure digital banking by introducing second-generation video identification: Liveness.

Liveness is a state-of-the-art biometric solution that’s applied widely across the EU as a mechanism for identity verification at border crossings and by fi -

nancial and other institutions offering personalised services. It represents video identification with individual characteristics that are almost impossible to copy or misuse. This advanced mechanism uses the device’s camera to thoroughly analyse facial characteristics and expressions, thus confirming the customer’s physical presence. Instead of biometric templates that smart devices store and use for facial recognition, Liveness identifies the actual person in real time and space with near 100% reliability.

INTRODUCING SUCH FUNCTIONALITIES IS PART OF OUR VISION FOR MODERN, SECURE BANKING. HOWEVER, ALL EFFORTS WOULD BE IN VAIN WITHOUT THE SUPPORT AND EXAMPLES PROVIDED BY THE NATIONAL BANK OF SERBIA

This technology uses 3D face detection to eliminate all attempts at impersonation. This means that false objects, photographs, or video recordings cannot be used to create or access online accounts. In addition to increasing customer security and preventing potential data misuse, Liveness is also an excellent tool for enhancing the customer experience. It is well known that people dislike having to remember passwords and security questions, queue for verification, or fill out lengthy requests. By using second-generation video identification, we arrive at a simple solution to this problem, whilst also saving time and increasing data security in the online world.

Trust is crucial in digital banking, and we are committed to earning and maintaining it. Our proactive security strategy involves anticipating and preventing potential threats and continuously educating users on various aspects of online security to ensure the highest level of safety. Introducing such functionalities is part of our vision for modern, secure banking, and we are grateful for the support and examples set by the National Bank of Serbia. The NBS’s commitment to creating a stimulating regulatory environment, and to continuous innovation in the banking market, inspires our further development.

TWENTY YEARS OF THE CREDIT BUREAU OF THE ASSOCIATION OF SERBIAN BANKS

10 MILLION CREDIT REPORTS, ZERO INTERRUPTIONS

The servers of the ASB Credit Bureau generate reports in just two seconds, making it the world’s fastest credit bureau

The Credit Bureau of the Association of Serbian Banks, which is now celebrating its 20th anniversary, has not only marked a significant milestone, but has also revolutionised banking practices. Over the course of the two decades of its existence, it has delivered nearly 10 million credit history reports without a single major security incident.

Reflecting on the past, it’s hard to fathom the era before the establishment of the Credit Bureau. Prior to 2004, banks struggled to maintain independent records of their clients’ creditworthiness, leading to lengthy approval processes and higher interest rates for diligent payers. The lack of valid credit history data posed a significant risk to banks.

The heart of the Credit Bureau now resides in the Zelendata [Greendata] Centre in Vršac, Serbia’s pioneering ecological data centre. This state-of-the-art facility houses data for as many as 5.2 million citizens and nearly half a million registered businesses and entrepreneurs, using servers that are physically small, yet extremely powerful. The innovative immersion cooling technology submerges the servers deep in mineral oil, creating an efficient cooling system. This results in annual energy savings of up to 800,000 euros compared to other cooling systems, while extending the lifespan and enhancing the performance of these invaluable devices.

In an era of heightened concern over citizens’ data, the Credit Bureau employs one of the most advanced and secure methods. Each bank has a private space on the server that it uses to store clients’ data. These data do not belong to other banks or the Credit Bureau itself, and it

is only with the formal consent of the account holder that the Credit Bureau app can access specific data and make them available to the bank or the client in the form of a report.

High security requirements do not negatively impact the speed of operations. Indeed, on the contrary, the Credit Bureau generates a requested report within two seconds and, considering the communication time between the bank and the Credit Bureau, a total of approximately five seconds is required for the report to be delivered. This makes the Credit Bureau of the Association of Serbian Banks the world’s fastest credit bureau.

Such systems are targets of cyberattacks worldwide, and our Credit Bureau is no exception. The fact that all such attacks so far have been repelled speaks volumes about how the Bureau’s security is protected.

However, cybersecurity success to date cannot be taken for granted. The

Financial CERT (Computer Emergency Response Team) – which also operates under the auspices of the Association of Serbian Banks – is continuously engaged in enhancing the security of the banking system and the financial sector as a whole.

CERT experts work in multiple directions with various interested groups. One of these efforts is a continuous campaign to educate citizens. Through traditional and new media, clients are informed about new cyber risks and given helpful advice on avoiding dangers.

CERT connects with all relevant authorities, institutions, and experts in the country and around the region. Permanent cooperation has been established with the Special Prosecutor’s Office for High-Tech Crime in the exchange of data in the field of cybersecurity. Training sessions have been organised with leading experts on cryptocurrencies and potential fraud, while a meeting has also been held with the Montenegrin Cyber Incident Response Team in order to exchange experiences and achievements.

The development of the Credit Bureau of the Association of Serbian Banks has benefited everyone. Banks can enter into credit transactions with reduced risk and can more easily introduce new services. Clients can quickly meet their financing needs and benefit from their clean banking history. A diligent client is now clearly distinguished from one that fails to fulfil their obligations on time.

It is for all these reasons that the Association of Serbian Banks has every reason to be proud of the achievements of the Credit Bureau, which will continue to enhance the quality of its services.

INTERVIEW

CEO and Founder of Senzal Capital Belgrade

LET A THOUSAND FLOWERS BLOOM

As a developing country, we need increased competition and a better quality and more innovative offer in the banking and financial sector

We’ve seen a reduction in the number of banks operating in Serbia in recent years, with large banks having taken over smaller ones. There are 20 banks currently operating in Serbia,

which is nine fewer than a decade ago. The wave of consolidations and bank takeovers is also expected to continue next year. We are simultaneously also witnessing the departure of foreign banks and the strengthening of domestic ones.

Here we discuss these and other Serbian financial market trends with Senzal Capital Founder and CEO Rade Rakočević.

What do these banking market trends tell you?

— The five largest banks in Serbia have a market share exceeding 60%, and it is only a matter of how many days we will have to wait to see some new banking sector takeover. Potential buyers have a clear motive, as they can achieve more positive effects with an increased number of clients and higher deposits and credit potential.

However, my view is that this isn’t a positive trend and that talk of Serbia needing even fewer banks only benefits the big banks, which are becoming even bigger, while we – as a developing country, according to the IMF – need increased competition and a better quality and more innovative offer in the banking sector.

I think it would be beneficial for Serbia to have more specialised banks doing business with specific groups of clients from specific fields of business, such as entrepreneurs, start-ups and the agricultural sector, which could tailor their offers to companies and individuals from that sector and should be subjected to more liberal conditions for their establishment.

It also isn’t clear to me why Serbia doesn’t have microcredit organisations that should ensure speed and simplicity when it comes to investing in and financing SMEs and citizens.

We only have a few investment and pension funds in Serbia. Is this due to the lack of a culture of investment or something else? If, as you’ve said, one serious German city has more funds than the whole of Serbia, what prevents our country from having a larger and more diverse offer? — I like to describe the Serbian financial market as a big puddle with only a few crocodiles.

I founded the Senzal brokerage house back in the year 2000 with capital of just €5,000. Today’s threshold for establishing a brokerage house is €125,000. If that threshold had applied back then, you would now be conducting this interview with someone else.

The number of licensed pension and investment fund management companies in Serbia can be counted on two hands. This is a result of excessively restrictive conditions for establishing such companies, which should be relaxed and adjusted to the reality of the Serbian economy, as opposed to being mere transcriptions of European laws.

The regulations protecting investors in pension and investment funds should be extremely stringent, but we should let a thousand flowers bloom, in order for citizens

tremely poorly and wasn’t utilised for the purposes of promoting investment and the stock market.

On the flip side, I see that there are now serious announcements of the issuance of corporate bonds and new IPOs on our stock exchange and I’m hopeful of good news in the coming period and tangible support from the competent authorities in developing the Belgrade Stock Exchange.

The same goes for the possibility for citizens to buy government securities. We had relatively strong activity at some point. However, unlike in many other countries, Serbian citizens aren’t the majority owners of the national debt. Why is that the case?

— The Serbian Ministry of Finance decides on the issuance of govern-

UNDER THE CONDITIONS OF AN INSUFFICIENTLY DEVELOPED CULTURE OF INVESTING AND POOR FINANCIAL LITERACY, IT IS NECESSARY TO WORK ACTIVELY TO PRESENT THE INVESTMENT OPPORTUNITIES AVAILABLE TO SERBIAN CITIZENS

to be able to additionally educate themselves on the importance of financial planning and asset management, with many more investment options.

We have been discussing the need to diversify financing methods, including through the issuance of bonds, since the time of the establishment of the Belgrade Stock Exchange. It was in 2018 that Fintel Energija implemented the first IPO on the Belgrade Stock Exchange. Why didn’t such an event prompt a turnaround in the financing of companies?

— I also slept through Fintel’s IPO. That historic event for the Belgrade Stock Exchange was promoted ex-

provide a great impetus for the development of our capital market.

You ultimately know on the basis of your personal experience that there is an appetite among various financiers to invest in something other than real estate. How could such trends be channelled to give impetus to the domestic economy?

— The Holy Grail of Serbian investors is owning real estate in Vračar, New Belgrade and/or the Belgrade Waterfront, together with a small apartment on the mountains of Kopaonik or Zlatibor. If we add to this another unit that they can rent to a betting shop, our investor’s feet don’t touch the ground when he walks.

It could be said that, until recently, the Serbian real estate market played the role of the country’s capital market, while investment unit was the value of a one-bedroom flat.

However, given that inflation in Serbia totalled 36% over the previous four years, while the real estate market has been in decline in terms of turnover and prices for more than a year, citizens have begun considering alternative investments.

SPECIALISATION

It would be beneficial for Serbia to have more specialised banks doing business with clients like entrepreneurs, start-ups and the agricultural sector

EXAMPLES

ment bonds and is focused on foreign stock exchanges and institutional investors for now. We can but be envious of Croatian, Slovenian and Belgium citizens, who are able to buy the government bonds of their countries that are issued for them specifically.

The situation in Serbia is currently as follows: Serbian citizens deposit money in savings accounts with commercial banks at an annual interest rate of 2.0-2.5%, while those same banks have the option of buying Serbian government bonds that carry an annual interest rate of 5-6%.

I think an annual interest rate of 3.5-4% on Serbian government bonds would prove extremely interesting to our citizens and would

Under the conditions of an insufficiently developed culture of investing and poor financial literacy, it is necessary to work actively to present to Serbian citizens the investment opportunities that are available to them, such as investing in shares and ETFs on stock markets around the world, alternative investment funds, cryptocurrencies, investment gold and crowdfunding.

With the issuance of Serbian corporate bonds and through the raising of capital via the Belgrade Stock Exchange, local companies will also gain the possibility to secure alternative sources of financing for the development of their business, which will certainly lead to lower rates for borrowing and will reduce the Serbian economy’s extremely high bank-centricity.

We can but be envious of Croatian, Slovenian and Belgium citizens, who are able to buy the government bonds of their countries that are issued for them specifically

GOOD NEWS

I’m delighted by the serious announcements of the issuance of corporate bonds and new IPOs on our stock exchange

INNOVATIVE AND ADAPTIVE

Wiener Städtische Insurance is part of Vienna Insurance Group (VIG), an Austrian conglomerate that operates on 30 European markets through 50 companies and holds a leading position in Central and Eastern Europe

ZORAN BLAGOJEVIĆ

Chairman of the Executive Board of Wiener Städtische Insurance

Through constant improvement and innovation, as well as dedicated work, particularly during the most challenging times, our interviewee’s company has reached the third spot on the market. One of its strategic goals is to transform its business model towards digital technologies and introduce new products tailored to clients.

Are you satisfied with your company’s current insurance market position, which is experiencing constant growth?

— We have been present on the Serbian insurance market for more than 21 years. While that is a long period, it has passed quickly. I am extremely proud that we have a consistent team. Apart from the members of the Executive Board, 20-30% of employees have been with the company for more than ten years. We have grown together, supported each other, learned from each other, and lifted each other up when necessary.

Wiener Städtische Insurance has demonstrated an admirable level of resilience and stability, recording positive growth rates and profitable operations during years characterised by unusual crises. With the outbreak of the pandemic, we quickly changed our business model and, despite the lockdown, continued working without interruption. After that, despite global crises, we continued with the trend of insurance premium growth, which has been continuously positive since the company was founded.

We achieved gross premiums of RSD 17.477 billion in 2023, which represents growth of 11.4%. The highest growth was recorded in voluntary types of insurance (voluntary health insurance 35.4%, auto casco 19.2%, property insurance 15.3%), which certainly testifies to our focus on clients.

THROUGH CONSTANT IMPROVEMENT AND INNOVATION, AS WELL AS DEDICATED WORK, ESPECIALLY DURING THE MOST CHALLENGING TIMES, WE HAVE REACHED THIRD PLACE ON THE MARKET

Which types of insurance are the most popular in Serbia?

— Increased interest in voluntary health insurance has been noticeable in the post-pandemic period, but there has also been growth in other types of insurance: travel insurance, property insurance, and insurance against various types of liabilities. We are striving to overcome the slowed growth of life insurance with an innovative approach, which is why we are recognised as pioneers in selling unit-linked life insurance products.

You often point out that our market has great potential that we have not yet fully realised. Is it time to transform the business model?

— The Serbian market is one of the focus markets of the VIG conglomerate precisely because of its potential, but also because of the faith in our company’s team. We are achieving excellent results, with the constant and stable growth of premiums. We could have done more, which is why we are dedicated to making additional strides in the coming period, because I believe in the market and in our collaborators. One of our strategic goals is to transform the business model towards digital technologies wherever this is recognised as a benefit by our clients. Changing and adapting are no longer advantages, but rather conditions for survival. We have managed to create a high level of awareness within our team and now we no longer face questions over whether we want to make changes, but rather how we can create them in a shorter period. In the coming period, we plan to pay special attention to communicating and collaborating with the youngest generation — Gen Z, who have grown up in the digital age, with technology and the internet having been available for most of their lives. We believe that this will be an effective way to bring insurance closer to citizens.

SUPPORTING DIGITAL BANKING ROADM

SRC Belgrade, as part of the SRC Group, which has spent more than 35 years dealing with the digital transformation of business processes, focuses on supporting the financial sector in automation and digitalisation processes

hen it comes to the processes and transitional changes confronting all banks in the region, as well as other challenges brought about by digitalisation, the APS platform, which is based on the credit process and its automation, has proven to be a very powerful tool and has provided strong support to the banking sector.

WWe strive to familiarise our bank clients with our decades-long presence and our active participation in the process of transforming the financial sector, in order to subsequently work together to bring banks’ services closer to the end user. We also have the goal of providing banks with a simple, effective and positive experience in the process of cooperating with them, and that cooperation relates to the lending process, which represents a stressful element for the vast majority of clients.

With an awareness of the processes and transition being undertaken by banks in Serbia and around the region, as well as the challenges they face and the demands and dynamics of change in light of digitalisation, the SRC Group has offered the banking sector the APS platform. This platform is based on the notion and understanding that each bank is an ecosystem in its own right; that every bank has a different structure and is currently at a different stage of digitalisation, given that some are just embarking on that process and some have advanced a long way. The APS platform enables them to launch that process in a simple and effective way, accelerate what they’ve already started, or – with the help of our platform – crown and conclude that process.

WHETHER A BANK IS SEEKING TO DIGITALISE PROCESSES IN ITS BRANCHES, PROMOTE ITSELF ON SOME OF THE VARIOUS

within the organisation through a wide range of platform modules. Regardless of whether a bank is seeking to digitalise processes in its branches, promote itself on some of the various digital channels (m-app, e-portal, website etc.) or establish cooperation with partners, the APS platform provides unlimited possibilities. With an understanding for the fact that every process represents a tree with many branches, wherein it is essential to take care of each individual branch, the APS platform also takes care of all supporting parts that are required to ensure the flawless functioning of various processes, such as:

* Product management

* Administration of rights, users, organisations, partner networks, digital channels

* Automation of documentation, including dynamic document generation and system placement

* Digital signatures, digital archiving etc.

* Mass document generation

* Scoring model management and automation

* Management and automation of credit policy, risk rules

* Automated decision making

* Integration of all key systems into a common ecosystem

* Centralisation of information and data

The credit process and its automation is at the foundation of our platform. Whether this relates to the automation of credit processes for corporate clients or private individuals, it provides the possibility to additionally automate, digitalise and optimise every aspect of the process

Our APS platform isn’t merely software. It is more like a living organism that develops together with the bank, providing support and all the comfort required for the bank to be able to continue concentrating on its clients and on the development of future products, plans and strategies... It serves to pave the way to the bank’s future development, while our task is to provide for a carefree journey.

SERBIA’S IMF PROGRAM ON TRACK

Serbia and the IMF have reached a staff-level agreement on the third review under the Stand-By Arrangement, pending approval by the IMF Executive Board in June 2024

An International Monetary Fund (IMF) mission, led by Donal McGettigan, held in-person meetings with Serbian authorities from 14th to 26th March 2024 to discuss Serbia’s progress under the Stand-By Arrangement (SBA). Following these discussions, Mr. McGettigan issued a statement announcing a staff-level agreement on the third review of the SBA. This agreement is subject to approval by the IMF Executive Board, which is set to consider it in the second half of June 2024. If approved, approximately EUR 400 million (SDR 316.46 million) will become available to Serbia. Given the strong accumulation of reserves and fiscal buffers, Serbian authorities have expressed their intention to treat the SBA as precautionary.

Mr. McGettigan noted that Serbia’s economy has performed well under the IMF-supported programme, despite a challenging global and regional environment. Macroeconomic outcomes in 2023 surpassed expectations and are projected to remain robust in 2024, with growth expected to rise to 3.5% in 2024 and 4.5% in 2025 as domestic demand increases. The current account deficit sharply narrowed to 2.6% of GDP in 2023, supported by lower regional energy prices and resilient exports, and is projected to widen moderately in 2024 as investment and private consumption pick up. Foreign exchange reserves have reached an all-time high, ex-

ceeding EUR 25 billion, while inflation is declining and is expected to fall within the National Bank of Serbia’s target range by summer 2024. The fiscal deficit narrowed to 2.2% of GDP in 2023, and public debt fell below 53% of GDP.

However, risks to Serbia’s economic outlook include geopolitical and energy sector developments, uncertainties over trading-partner growth, and further global financial market instability. Nonetheless, Serbia’s strong foreign exchange reserves, public sector deposits, relatively low public debt, sustainable external debt dynamics, and a well-capitalised and liquid banking system provide significant buffers against these uncertainties. Continued prudent policies, supported by the SBA, offer additional protection.

The existing monetary policy stance is appropriate and supports ongoing disinflation. Although disinflation has outpaced earlier projections, it would be prudent not to loosen monetary policy prematurely due to remaining inflation risks, including a tight labour market.

The financial sector remains stable, but continued vigilance is required given the high interest rate environment. Temporary regulatory measures adopted in 2022-23 should be allowed to lapse as

scheduled at the end of 2024. A phased approach to the treatment of foreign exchange positions under the new Net Stable Funding Ratio, allowing time for bank feedback and refinements if needed, is appropriate.

The “Leap into the Future—Serbia 2027” development plan envisions significant public infrastructure investments in the coming years. Prudent fiscal management and medium-term investment planning are critical. Low fiscal deficits should be maintained to consolidate Serbia’s gains in reducing public debt and rebuilding external and fiscal buffers. Given the existing high level of public investment, any additional spending should be carefully prioritised and phased in, considering the costs, benefits, and broader macroeconomic implications. Authorities are urged to increase investment transparency and fully operationalise the public investment management framework to ensure investment quality.

For 2024, a fiscal deficit of 2.2% of GDP is consistent with SBA commitments. Any revenue overperformance and underutilised contingency reserves may be used to further increase capital spending above the budgeted envelope of about 7% of GDP, including expenditures related to

SERBIA’S ECONOMY SHOWS STRONG PERFORMANCE UNDER IMF PROGRAMME, WITH SIGNIFICANT GROWTH, HIGH RESERVES, AND DECLINING INFLATION

Expo 2027. Untargeted transfers should be avoided.

Ongoing efforts to improve public workforce planning, medium-term budgeting, and fiscal risk management are welcomed. The modernisation of the tax administration should be supported by a new HR strategy and accelerated hiring to ensure adequate staffing and mitigate risks to revenue collection from the upcoming retirement wave.

Energy sector reforms should continue, with a commitment to removing energy price controls for the non-regulated sector. This should be followed by necessary revisions to electricity and gas pricing systems to ensure the financial sustainability of state-owned energy enterprises and their capacity to finance crucial investment projects.

Implementing a broader restructuring plan for EPS to make tangible changes

to the company’s operations is critically important.

It is also crucial to continue preparing secondary legislation to make the new SOE governance law operational by September 2024.

The Ministry of Economy should prioritise fully staffing all necessary internal structures to assume its expanded responsibilities under the SOE governance law.

THE AI AGE REQUIRES INEQUALITY INSURANCE

The AI revolution will almost surely lead to an increase in income disparities. To ensure that the emerging technology doesn't widen the wealth gap, governments must reform the tax system so that rates for high earners increase automatically once an inequality threshold has been breached

European Union lawmakers recently reached a provisional agreement on a landmark regulation to mitigate the risks that artificial intelligence poses to humanity, and other countries seem ready to follow the EU’s lead. But this regulation does not address one of the greatest disasters AI may bring: the prospect of mass unemployment and sharply increased income inequality. Regulation cannot eliminate these risks without precluding the world from enjoying AI’s potential benefits, namely dramatic increases in productivity and enormous wealth creation. That is why policymakers must also enact policies to compensate citizens if these disasters occur.

Let us be clear: we are not opposed to regulating AI, but just as we take a two-pronged approach to protect flood-vulnerable homes – building sea walls and providing flood insurance – so, too, must governments offer inequality insurance to ensure that AI doesn't widen the wealth gap. While future administrations could conceivably change the terms of such a programme, cutting back on widely experienced benefits would be politically difficult.

The writing is already on the wall. This year, Hollywood actors joined

screenwriters in the first industry-wide strike in more than six decades, with safeguards against generative AI being one of their main demands. But AI will revolutionise the future of work for all types of professionals, from doctors and lawyers to taxi drivers and checkout operators, and the subsequent increases in total output will not be shared equally. Those who make and own the inventions could amass immense wealth, much of which will come from economising on labor costs.

It is tempting to believe that AI will turn huge swaths of the workforce into hamburger flippers, but even that job is being automated. Perhaps there will

be other low-value services for people to provide. If not, the ranks of the chronically unemployed will swell. Either way, income disparities will almost surely deepen.

Policymakers can limit, or even prevent, the resulting increases in inequality by reforming the tax system. For example, if inequality exceeds certain limits, federal income-tax rates on high earners could increase automatically. To stop inequality from rising fur-

ther, taxes on the top 1% could be set each year to ensure that their share of total national after-tax income never rises above current levels.

To be sure, if AI causes truly catastrophic increases in inequality – say, if the top 1% were to receive all pretax income – there might be limits to what tax reforms could accomplish. Consider a country where the top 1% earns 20% of pretax income – roughly the current world average. If, owing to AI,

this group eventually received all pretax income, it would need to be taxed at a rate of 80%, with the revenue redistributed as tax credits to the 99%, just to achieve today’s pretax income distribution; funding the government and achieving today’s post-tax income distribution would require an even higher rate. Given that such high rates could discourage work, we would likely have to settle for partial inequality insurance, analogous to having a deductible on a conventional insurance policy to reduce moral hazard.

Such a lopsided income distribution is unlikely, and in less extreme cases, full or nearly full inequality insurance would be possible and warranted.

But while this thought experiment highlights a weakness of our plan – it cannot provide full insurance in the most catastrophic cases – it also points to the importance of building some form of automatic insurance into the tax system. After all, most people would agree that if economic inequality does spike, the 1% should be taxed at a substantially higher rate than they are today.

To deal with the massive unemployment that AI may bring, many –from Juliet Rhys-Williams in 1943 to US presidential candidate Andrew Yang in 2018 – have proposed a guaran-

teed minimum basic income for everyone, regardless of what they do. Other economists, such as the Nobel laureate Edmund Phelps, have instead suggested subsidizing wages by expanding the negative income tax for low-income families or by adjusting corporate tax deductions. Either way, these plans require funding, and building inequality insurance into the tax system could be a long-term adjustment.

Even though our proposal does not cap the amount of money people can earn or save, we are under no illusions that establishing inequality insurance will be politically easy. But too much is at stake not to try. As US Supreme Court Justice Louis Brandeis put it, we can have democracy or great wealth concentrated in the hands of the few, but not both.

Two aspects of our proposal make it more politically feasible than a traditional tax. First, the cap on inequality can be set above current levels – meaning that it would not be triggered immediately. Psychologists have shown that people are more idealistic when deciding about the distant future rather than the present. Because voters don’t know their future income bracket, they are likely to decide in favor of inequality insurance based on abstract moral principles.

Second, if the insurance is triggered, the beneficiary class would be much greater in number than the top earners paying the higher marginal rate. In fact, the transfer of wealth from the 1% should go to the bottom half of earners, although it could conceivably be shared with higher earners to garner their support. Once the insurance kicks in, the legislation could eventually lower taxes for most workers.

Explicitly defining tax rates to provide insurance against extreme inequality was a good idea two decades ago. But it is a much better idea today. To reap AI’s benefits, we must prepare for a potentially catastrophic increase in disparities of wealth and income.

By Ian Ayres, Professor of Law at Yale University

THE RISE OF THE FINTERNET

Financial services must catch up with the advances made in communications since the advent of the internet and smartphones. That will require taking bold action to build a seamless, interconnected network that would give all individuals and businesses full control over their financial lives

The financial system is ready for a giant leap forward. It’s time to explore new frontiers.

We foresee a time when applying for a mortgage or a small business loan could be as easy as texting a friend or booking a hotel room online.

There has been some progress on technology to enable such a new reality, as evidenced by the proliferation of mobile-payment apps. But transforming financial services will require creating an entirely new system to match the advances made in communications since the advent of the internet and smartphones. Today’s mobile phones are powerful computers, after all, so it would be a waste not to maximize their use.

To this end, we have drawn on our joint expertise in economics and technology to offer a blueprint for the future financial architecture. What we call the “Finternet” is a vision of multiple financial ecosystems that connect with one another, much like the internet, in order to give individuals and businesses full control over their financial lives. We foresee a world in which people and companies can use any device to transfer any financial asset – no matter the amount – to anyone in the world. These transactions would be cheap, secure, near-instantaneous, and available to all.

This new system would be particularly important for emerging and developing economies, where large gaps in access to financial services remain despite efforts to bolster inclusion. Many services are simply unavailable or not widely available, particularly to people living in remote areas and with low incomes. And even when people are able to access financial products, using them is often expensive and slow.

Important breakthroughs in recent years have paved the way for the Finternet. One example is tokenization, whereby tokens representing digital assets can uniquely identify ownership as well as

applicable rules. Another is programmable ledgers, the digital platforms that combine the record-keeping functions of traditional databases with the governance arrangements required to update them.

To unlock the value of financial innovation and build a seamless, interconnected network, we must combine all these elements and break down the current financial system’s barriers and silos. Specifically, bringing together different tokenized assets on unified programmable ledgers would drastically reduce the need for lengthy messaging, clearing, and settlement systems that create extra costs,

take more time, and limit access to credit and other financial services.

Unified ledgers would also enable “smart contracts,” which can trigger an action – transferring ownership of a house, for example – if prespecified conditions are met. They could even bundle together numerous automated transactions. So, in the case of a property transfer, the payment of the purchase price and anti-money laundering checks could happen at the same time and take seconds rather than weeks. Overall, these ledgers would meet – and perhaps surpass – today’s regulatory and supervisory standards, while also being faster, cheaper,

Finternet. Safeguards such as deposit insurance and public oversight of financial-services providers should be maintained to protect customers and ensure that money has the same value regardless of whether it is issued by a central bank or a commercial bank.

The radical use of new technology could streamline the layers of manual checks now required to comply with rules and regulations. This would enable the

THIS IS A ONCE-IN-A-LIFETIME OPPORTUNITY TO REDESIGN THE ARCHITECTURE OF THE FINANCIAL SYSTEM, AND WE SHOULD BE THINKING BIG AND IMAGINATIVELY, INSTEAD OF FOCUSING NARROWLY ON INDIVIDUAL TECHNOLOGIES

and more reliable than current systems.

But technology is not enough. Central banks, as the guardians of public money, have a major role to play in the new financial architecture. The money they issue is the vehicle through which all economic transactions are ultimately settled. A digital form of this money is thus a necessary foundation for the Finternet. Commercial banks will also play a crucial role in interacting with consumers, not least by providing tokenized bank deposits that will form the lifeblood of the Finternet’s monetary system.

Moreover, a robust regulatory and supervisory structure must underpin the

creation of products that otherwise might not be developed due to compliance burdens, while also ensuring that the Finternet is not used by bad actors seeking to exploit loopholes.

Making the Finternet a reality will take years, but we must start now. The technology is mature enough, and, crucially, we are not yet locked into rigid institutional frameworks or trapped in “walled gardens” of services created by monopolies. This is a once-in-a-lifetime opportunity to redesign the architecture of the financial system, and we should be thinking big and imaginatively, instead of focusing narrowly on individual technologies.

We know where we need to go. Equally important, we have the tools to get there. Now the global financial system just needs its “Neil Armstrong moment” – a small step that represents a giant leap for mankind.

By Agustín Carstens, General Manager of the Bank for International Settlements

CENTRAL BANKS IN A CASHLESS WORLD

With cashless transactions rapidly replacing physical cash, central banks have an opportunity to serve the public interest by providing or shaping the infrastructure on which digital-payment systems are built. But to do so effectively, they will have to abandon outdated assumptions and re-imagine their own roles

Economics has always had a strange and much-debated relationship with money. For a long time, economists – including Nobel laureates like Merton Miller and Franco Modigliani – regarded money merely as a medium of exchange. But by building on the work of John May-

nard Keynes and Hyman Minsky, economists have since moved beyond a narrow focus on the quantity of money to consider its structural influence on the real economy and the financial system.

A structural understanding of money and finance becomes even more important in an increasingly digitalized

A STRUCTURAL UNDERSTANDING OF MONEY AND FINANCE BECOMES EVEN MORE IMPORTANT IN AN INCREASINGLY DIGITALIZED AND CASHLESS WORLD, BECAUSE THERE IS A GROWING NEED FOR POLICYMAKERS TO OPERATE NOT JUST AS MARKET FIXERS BUT AS PROACTIVE MARKET SHAPERS

and cashless world, because there is a growing need for policymakers to operate not just as market fixers but as proactive market shapers. A cashless world not only changes people’s relationship with money and creates new opportunities for how it is managed or even conceived; it also puts new pressure on cen-

tral banks to reimagine their role and become more innovative.

While plenty of attention has been devoted to experiments with central bank digital currencies, an even more important intervention is to create and shape a new digital infrastructure around interoperable payment systems. Given the structural component of capital, this can increase bank competition, inclusion, and accessibility, and possibly offer new tools for managing economies in the face of crises.

Cashless transactions are growing faster than ever as reliance on physical cash declines. Consumers, businesses, and governments clearly prefer cashless technology’s cost-effectiveness and ease of use. Tap-based payment systems, once confined to the realm of tech-savvy urbanites, now pervade even the most rudimentary economies. Interoperable payment systems are quickly emerging as the core economic infrastructure of the digital-era economy, marking a departure from the past 2,000 years of government-issued physical cash.

As with all technological change, this one is not neutral. It has a momentum of its own, and if policymakers do not direct it in the public interest, it could

lead to deeper forms of exclusion and other structural problems across the economy. For example, digital payments systems in many countries are not interoperable, which means that the owners can determine who gets access and thereby extract undue rents. Those already on the margins are then pushed further outside the cashless world or, worse, outside the formal economy altogether.

DIGITAL PAYMENTS SYSTEMS

IN MANY COUNTRIES ARE NOT INTEROPERABLE, WHICH MEANS THAT THE OWNERS CAN DETERMINE WHO GETS ACCESS AND THEREBY EXTRACT UNDUE RENTS

Here, a central bank can serve as more than just a regulator, by influencing or even creating shared infrastructure. It can not only reduce the costs of digital transactions but also create new opportunities to improve efficiency and financial inclusion for those on the fringes of the formal economy. That is what India has done with UPI, an interoperable digital payments infrastructure that has been strongly shaped by the central bank.

It is also what Brazil has done with its Pix system, an interoperable instant-payment service that allows individuals and businesses to send and receive money at any time of day, usually for free or at very low cost. According to the Brazilian Central Bank (BCB), Pix is now the country’s most popular payment method, surpassing credit and debit cards and other transfer methods rivaling cash. Over 66% of the population uses it.

This may sound like a typical fintech success story. Yet it was the BCB that stepped in proactively to build Pix, after it realized that private players would not make their systems interoperable on their own.

Before Pix, each financial institution used its own transaction system and set

its own fees. But now the competition has shifted away from fees to focus on the quality and quantity of services that financial institutions offer. Pix, as infrastructure, is delivering real, direct savings for consumers, and supporting inclusion and accessibility.

By driving this change, the BCB is helping to shape a much larger trend toward serving the common good. When a common-good framework becomes the foundation for most economic activities, there will be many more opportunities for collaboration, coordination, and co-investment between governments, private companies, civil society, and international organizations.

Of course, this role for central banks challenges the traditional view that they are regulation-oriented market fixers that should focus only on guaranteeing financial stability, thus leaving questions of equity, access, and inclusion to the private sector. The public sector has long been assigned the task of merely de-risking the value creators, not taking risks or creating value itself. It is seen as a lender of last resort, not an investor of first resort.

This narrow view of the state’s role in wealth creation has limited policymakers’ understanding of the range of tools and

instruments they have for catalyzing sustainable economic growth. Although ensuring the financial system’s stability will remain essential, Brazil and India’s market-shaping efforts around interoperable payment infrastructure demonstrate that central banks have the tools to do more for the common good.

In the United Kingdom, the Bank of England’s newly declared secondary objective is to facilitate innovation in pro -

viding financial-market infrastructure services when it exercises its powers as a regulator. It seems the appetite for more ambitious market-shaping may be spreading. We certainly hope so, because bringing about an equitable future will require more ambitious central banks.

By Mariana Mazzucato, Professor

in the Economics of Innovation and Public Value at University College London

WHILE PLENTY OF ATTENTION HAS BEEN DEVOTED TO EXPERIMENTS WITH CENTRAL BANK DIGITAL CURRENCIES, AN EVEN MORE IMPORTANT INTERVENTION IS TO CREATE AND SHAPE A NEW DIGITAL INFRASTRUCTURE AROUND INTEROPERABLE PAYMENT SYSTEMS

THE RISE OF CONSUMER CRYPTO

Although non-fungible tokens are often misunderstood and even derided, they remain a general and flexible solution for establishing and tracking ownership in the digital domain. As a superior solution to existing technology in many areas of the consumer economy, their widespread adoption is all but inevitable

Since its inception with the launch of Bitcoin in 2008, blockchain technology has gone through numerous cycles of public attention. Over time, growing interest and investment in the bestknown cryptocurrencies has led to greater acceptance, as highlighted by the US Securities and Exchange Commission’s approval of a spot Bitcoin ETF (exchange-traded fund) in January. While blockchains and their associated “crypto” assets have yet to be adopted by a truly broad base of consumers, that is starting to change, owing to a shift in how these technologies are being used. Contrary to what mainstream media coverage often suggests, for many people, the value of these innovations lies not so much in cryptocurrencies as in block-

chain-based digital goods such as virtual sneakers, gaming assets, and membership passes – all managed by way of non-fungible tokens. The Everything Token, NFTs –often misunderstood and even derided –are a general and flexible solution for establishing and tracking ownership across all manner of digital assets.

NFTs are already being used in a wide range of contexts – from course credentials to coffee rewards – and they are poised to reshape the management of everything from concert tickets to healthcare data. Since these are business contexts that affect consumers’ everyday experiences, NFTs may start to drive widespread consumer adoption on a scale that previous crypto applications have not.

A big reason for crypto’s lack of mainstream adoption has been its inaccessibility. These are early days, and many crypto applications still require users to interface near the technological rails that run the system. There are few protections against user error or having one’s account compromised, and the necessary technical knowledge makes everything difficult to navigate. But lest we forget, the early internet also was not user-friendly.

Much of the existing crypto infrastructure also lacks the capacity to manage

transactions at a global scale, resulting in high transaction costs that frequently fall on the user. Years of regulatory uncertainty have not helped. Both in the United States and globally, there has been a general lack of clarity about which types of digital-asset transactions are permitted, how those assets are assessed for tax purposes, and whether that treatment may change in the future.

But market immaturity and mismatches between available applications have also been significant challenges. As with any novel, general-purpose technology,

BLOCKCHAINS ARE MASSIVE GLOBAL LEDGERS

THAT USE DECENTRALIZED CRYPTOGRAPHIC PROTOCOLS TO RECORD INFORMATION IN A WAY THAT IS PUBLICLY VERIFIABLE, SECURE, AND IMMUTABLE

many early crypto applications were poorly conceived, unsustainable as businesses, or – in some cases – entirely fraudulent.

On top of that, much of the media and regulatory attention has focused on financial and monetary applications. In fact, crypto is hard to use as a medium of exchange until there is broad adoption. Meanwhile, because some early adopters were interested in crypto as a potential investment, financialization bled over into other applications. When domain addresses were introduced on the Ethereum blockchain, for example, the result was a massive speculative market in what amounted to URL-squatting (when someone registers an address in hopes of later reselling it at a premium), which was supercharged by highly liquid crypto trading.

In short, the parallels to the early internet are manifold: the early crypto market has faced technical barriers that limit adoption, early experiments that didn’t always make the best use of the technology, and significant speculation. But, as with the internet, we are witnessing a shift toward better designed, more productive applications as the technology matures. To understand the new-generation applications, it helps to examine more precisely what blockchains are good for.

WHAT BLOCKCHAIN CAN DO FOR YOU

Blockchains are massive global ledgers that use decentralized cryptographic protocols to record information in a way that is publicly verifiable, secure, and immutable. Today’s blockchains can run complex software that makes it possible to define, allocate, and track ownership, on a public ledger, of all manner of digital assets – from units of account (cryptocurrency) to domain addresses, user profiles, and even music tracks and web games. Individual accounts on blockchain-based systems, often referred to as digital wallets, give users direct ownership of whatever is recorded as “theirs” in the ledger. The owner of a given digital asset holds a unique key with which to verify herself as the owner and control which applications interact with her assets (and in what ways).

This is very different from most of the web and social-media experiences that we are accustomed to. Instead of a user having an account on a specific site like Facebook or Amazon – where that user’s data, profile, and other information are stored and controlled by the platform –blockchains allow users to retain complete control over their own account and associated data.

Moreover, users can connect that account to whatever platform they want and switch seamlessly between platforms. By contrast, although you can quit Facebook if you don’t like its policies, you cannot take your content, audience, and reputation with you.

NFTs are digital records that can be held in an individual digital wallet. They act similarly to property deeds. By associating an NFT with another asset – for instance, a piece of digital art, an item in a game, or even a physical asset like a book or a piece of clothing – it becomes easy to define and identify ownership in the digital realm. Some NFTs are transferable and can be bought and sold just like physical goods. Others are non-transferable and tied to a specific account, just like a driver’s license or diploma.

Perhaps the simplest case for NFTs is in contexts where ownership is otherwise difficult to verify, such as with digital event tickets. In this case, NFTs provide a far better solution than the exist-

ing technology. A well-known market failure in this area stems from the difficulty of identifying whether a ticket (say, to a Taylor Swift concert) has been resold to multiple people at once on the secondary market – hardly an unimaginable scenario. When a ticket is just a QR code in an email, there’s no way to verify whether a prospective seller has “sold” it to multiple people, or even used it themselves.

NFTs address this by making each ticket a unique digital asset, which only one person – or more precisely, one digital wallet – can own at a time. Once a seller has transferred a ticket NFT to a buyer,

AS CONSUMERS BECOME ACCLIMATED TO OWNING

THEIR OWN DIGITAL ASSETS AND USING THEM FLEXIBLY ACROSS THE INTERNET, THEY MAY EVEN START TO DEMAND THE SAME EXPERIENCE FROM OTHER BRANDS AND WEB PLATFORMS

the buyer has direct control of it and can verify that she is now the unique owner. Moreover, blockchain software can integrate the ticket transfer and exchange of payment into a single transaction, thus executing a secure transaction without the need for a third-party intermediary.

GOOD FOR BUSINESS

These uses explain why NFTs have grown so popular as a means of defining and exchanging ownership of digital images and other media files. Before NFTs, these markets were especially difficult to establish, because sharing a copy of a media file with a prospective buyer was often tantamount to giving it away. (That is why image databases have historically posted only low-resolution or watermarked files, and why online music marketplaces often allow only short previews of a given song.) Looking ahead, it is easy to see how the same uses will extend to digital trading cards, in-game items, and even library books.

Non-transferable NFTs, meanwhile, allow for secure digital credentialing without the need of a third party. A “digital diploma” NFT certifying completion of a course or academic program could be freely read and verified by any platform to which the holder connects his digital wallet. (For example, LinkedIn could seamlessly verify whether you really did complete an “exec ed” program at Harvard Business School.)

Similarly, NFTs can implement cross-platform subscriptions or memberships. Instead of needing an account with a given publication, simply holding a subscription NFT in your digital wallet could unlock access. Moreover, NFTs can be used to give people direct control of personal data such as health-care records, allowing patients to transfer their data seamlessly to new providers without all the hassle this currently entails.

And, of course, in a world where concern about AI fakes and impersonation is growing, there is a lot of value in being able to create interoperable, platform-agnostic, securely verifiable identity records that a person can use to prove they are who they say they are. These sorts of “proof of personhood” NFTs leverage offline identity verification to produce an on-chain digital asset that can be used to certify identity in contexts such as personal finance, e-commerce, and social media.

Finally, in all these cases – at least with public blockchains – it is easy for digital-asset owners and third parties to create value on top of NFTs beyond simple ownership. These functional utilities range widely in character and scope, from enforcing access to private chat rooms to offering free merchandise and even shared intellectual-property rights. An event sponsor could leverage ticket NFTs as the digital keys to an online fan community. Or a publication like The Economist could give free access to anyone holding a Project Syndicate subscription NFT without needing to interact with PS’s own database.

All of this makes NFTs an ideal technology for fostering consumer engage-

ment. Unlike previous incarnations of digital goods, NFTs are truly owned by their holders, and we know that a greater sense of ownership can enhance brand attachment. If you truly own a valuable item in a popular video game, for example, you will have an incentive to help that game continue and attract new players. At the same time, NFTs’ interoperability makes them easy to showcase and use as part of one’s online identity throughout the digital domain.

BLOCKCHAIN BRANDING

Here, the decentralized value creation that NFTs enable also can help. NFTs publicly surface a brand’s fans and connect them to one another within a mutually reinforcing network. By building community among an initial group of

holders, NFT brands cultivate superfans who share their enthusiasm online and draw in others. We are seeing the makings of a new, powerful model of digital brand-building.

New and established brands alike are using this strategy. NFT-native brands like the Bored Ape Yacht Club, Pudgy Penguins, and VeeFriends started with NFT collections and leveraged their communities of early adopters – that is, their NFT holders – as they offered products to a broader consumer market. Similarly, established companies like Nike, Porsche, The Hundreds, and even Time magazine have released NFT collections that encourage their fans and followers to express enthusiasm for their respective brands online.

For example, members of Starbucks’s Odyssey NFT reward program (where one

of us, Kaczynski, serves as community lead) can collect NFTs representing the classic Starbucks siren and the popular pumpkin spice latte.

Many then display these digital assets online. Because of the way the underlying software works, nearly any NFT can take on this role. An NFT that starts as just a ticket to a baseball game or ballet performance can become an anchor for a rewards program, unlocking a community of shared interest and giving high-value customers unique and valuable perks (like time on the field or an opportunity to meet their favorite prima ballerina).

Of course, NFTs are open to the same kind of speculative financialization that we have seen elsewhere in the crypto market. But the most compelling busi -

ness uses will center on ubiquitous consumer applications. Even in the context of digital collectibles – which will likely remain a key use – NFTs are likely to become far more broadly accessible, and more focused on identity and community formation than on financial value. For example, we expect to see collectible NFT stamps for national parks, pop concerts, and maybe even for airport security dogs. (Yes, K9 units have trading cards. Ask for one the next time you travel!)

FROM NOVEL TO NATURAL

Unlike with cryptocurrency, for which some people don’t see a reason to own the asset unless they are interested in conducting crypto transactions, consumers will see direct value in these types of NFT

NFTS

PUBLICLY SURFACE

A BRAND’S FANS AND CONNECT THEM TO ONE ANOTHER WITHIN A MUTUALLY REINFORCING NETWORK. BY BUILDING COMMUNITY AMONG AN INITIAL GROUP OF HOLDERS, NFT BRANDS CULTIVATE SUPERFANS WHO SHARE THEIR ENTHUSIASM ONLINE AND DRAW IN OTHERS

uses. Someone might receive her first NFT in the context of an ordinary ticket or coffee purchase, or when she completes an online course. As this happens more frequently, people will enter the blockchain ecosystem, establishing digital wallets and then connecting to more third-party applications.

Because a single digital wallet can be used flexibly across many different platforms, there will be a positive feedback loop whereby consumers who adopt crypto in this way can also more easily acquire and use other types of digital assets. As consumers become acclimated to owning their own digital assets and using them flexibly across the internet, they may even start to demand the same experience from other brands and web platforms.

Thus, even the simplest consumer NFT uses have the potential to become a major driver of crypto adoption, linking fans to the brands and ideas they love, and driving businesses to create more opportunities for them to do so.

By Steve Kaczynski

Discover a unique meeting place for the fintech community—solution providers, end-users, businesses, banks, investors, advisors, startups, and government representatives from the SEE region, Europe, and beyond.