CorD magazine 71 by CorD Magazine

CorD, MAY 2010

A COLLECTIVE MONETARY POLICY?

NOBODY DOCKED IN BAR PORT

BUSINESS NEWS FROM SERBIA

Dimitrije Boarov, journalist

Montenegro

THE KEY FOR EUROPE

SELLING THE BONANZA

Dr Bojan Pajtić, President of the Government of Vojvodina

CONTROL OF NON-IONIZING RADIATION

TIME FOR CAREFUL OPTIMISM

Ivan Vejvoda, Executive Director, Balkan Trust for Democracy German Marshall Fund of the U.S.

NATO NOW!

Čedomir Jovanović, President of the Liberal Democratic Party

CHALLENGES OF A FUTURE TOGETHER

H.E. Mr. Luís de Almeida Sampaio, Ambassador of the Republic of Portugal in Serbia

OFFICIALS BEHIND BARS

PRE-ELECTION CONVERGENCE OF HDZ AND SNSD

EDITORIAL DIRECTOR Tatjana Ostojic, t.ostojic@cma.rs EDITOR Vera Didanovic, v.didanovic@aim.rs ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs ASSISTENT DESIGNER Miloš Aleksić, m.aleksic@aim.rs EDITORIAL CONTRIBUTORS Jelena Mickic, Jelena Jovanovic, Sonja Ciric, Ilija Despotovic, Petar Djoric, Dejan Jeremic,

4 CorD 71 / May 2010

Zdenko Lekan, CEO Konsing Group

WORLD BUSINESS NEWS

CorD B2B

TRIUMPH OF HUMANITY

CorD Charity Masters 2010

CULTURE NEWS

IS THERE A PILOT ON BOARD?

CULTURE CALENDAR

Managing public enterprises

PARTI – COLOURED SEATS

LEADERS

DEEP ROOT CONNECTION

44 46

Serbian City Club

An Unforgettable Night Out

Where The Danube Kisses The Sky

LIFESTILE &LEISURE

FACES AND PLACES

Zorica Todorovic Mirkovic, Tatjana Tagirov PHOTO Slobodan Jotić, Darko Cvetanović TRANSLATION Goga Puric, Snezana Bjelotomic LECTOR Pat Andjelkovic EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PROJECT MANAGER: Vesna Vukajlović, v.vukajlovic@aim.rs; Marija Savić, m.savic@ aim.rs; Snežana Terzić, s.terzic@aim.rs FINANCIAL DIRECTOR

LIFESTILE &LEISURE

Science

64 CULTURE

BIG BANG –ATOM SMASHER

Slovenia and Croatia

Bosna& Herzegovina

Privatization of Telekom Srbija

CorD B2B

Serbia`S Most Attractive Fishing Grounds

ECONOMY OVER POLITICS

82 Ana Besedic, a.besedic@cma.rs GENERAL MANAGER Ivan Novcic, i.novcic@cma.rs PRINTING Rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance intrenational media Kneginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11)

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ABC Serbia

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Election of the National Bank of Serbia’s new governor

A collective monetary policy?

fter March 23rd, when the long-standing first man of the National Bank of Serbia (NBS), Radovan Jelašić, handed in his irrevocable resignation (allegedly for personal reasons), as soon as April 12th Prime Minister of Serbia Mirko Cvetković, announced that the ruling coalition- nominated Dejan Šoškić, professor at the Faculty of Economy in Belgrade and president of the NBS Council during Jelašić‘s last term, had been nominated for new governor. In the process, he accentuated that Šoškić was being nominated for the head of monetary powers as a highly-qualified and a non-party figure. Following such a formal nomination and previous statements by Dejan Šoškić (when he had not yet been nominated for the head of the NBS) where he underlined his certainty that the central bank would remain an independent institution dedicated to, above all, the fight against inflationary tendencies, it seemed that the shift at the top of NBS would really be a change of people, not of substance. Namely, in his interview in NIN (April 8th), Šoškić even stated his opinion about the most ticklish matter of the current economic policy, the “new model of development,” which had been the subject of a fierce debate in the economic public this spring. He spoke out in favour of the new model as well as his predecessor, Governor Jelašić. Simply put, so far advocates of the model (above all, large financiers) used to constantly point out the need for “stability of foreign currency” and the “credit- monetary policy easing,” with strong “pro-conjunctive measures” with the aim of “promoting demand” on the domestic market, and which would rely on Serbia’s high foreign currency reserves. On the other hand are mostly economic experts, who speak in favour of the change of the development model, that is to say, those who seek sharp measures for a decrease in public and private spending and a real decline of the dinar to motivate export policy and demotivate excessive imports. So, in the above- mentioned NIN interview favouring the changes, Šoškić said that he thought it was important to stop the policy of excessive public spending and to turn to savings, investments, and exports, also adding that “with the already-existing development model, Serbia cannot be anything else but a highlyindebted country with a low rate of economic growth.” In his first interview to Belgrade’s Politika (April 13th) since he has officially been nominated for the new governor, Šoškić changed the emphasis of his statements. He pointed out that in the current deflationary conditions there is room for a careful future easing of the monetary policy. Then he announced an “easing of obligatory reserves” in business banks, but of such a nature that they “should not create instability on the foreign currency market,” (which is to be understood as a commitment to the stable dinar course). Finally, he no longer emphasized state saving, but spoke in favour of “making a redistribution within the already-existing budget deficit in favour of investments in the country’s infrastructure.” One would get the impression that in the final talks with the competent factors about his nomination, Dejan Šoškić accepted passing a new law about the central bank which would favour the “delegation of part of Monetary Fund authorizations to a broader body, e.g. the Council,” (as he said in the aforementioned interview in Politika.)

Neither this statement of Dejan Šoškić’s nor the statement of Prime Minister Cvetković gives a clear answer to the question whether (and when) the National Assembly of Serbia would vote on the election of the NBS’s new governor according to the existing law on the NBS from 2003 (which is very likely), or according to some new law on whose sketch a wide debate has already developed. According to the current law, the governor himself has extremely broad discretion authorities and practically he alone hand-picks NBS’s vice-governors, that is to say, he dominates NBS’s Monetary Board, which, led by him, makes key decisions about monetary and foreign currency policies. Having seen the heterogeneous projects of the new law on the central bank, none of which were officially presented to the public, one is under the impression that the Government of Serbia desires to strengthen the role of the NBS Council at the expense of the independence of the governor of NBS. Milojko Arsić (also mentioned as a possible heir to Jelašić as head of the NBS), a member of the NBS Council, is in favour of strengthening the role of this body, and he suggests that the structure of this body be extended from 4 to 6 members (plus the governor), and that actually that be the body to make all key decisions about monetary policy “because we do not need an independent governor, but rather an independent National Bank.”Another candidate for new governor, Dušan Vujović, the chief economist of the World Bank currently on duty in Kiev, accepted the opinion that shifting the monetary power towards the NBS Council “might increase the expert and professional foundation of decisions, and thus decrease foreign pressure and empower the basic independency of the NBS and the governor.” On the other hand, a number of economic experts fear that shifting power inside NBS as a collective organ chosen by the National Assembly would lead to a kind of ‘politicizing’ of the monetary policy in the literal sense of the word, which might be done by an election of ‘suitable’ people (that is to say, loyal to the party), instead of experts into the NBS Council. This fear is stated by Boško Živković, Vojislav Vučković, Danica Popović, and numerous other respected experts. Among the broader expert public, both the election of a young and inexperienced new governor and the mentioned alternation of the new law on the NBS are interpreted primarily as a victory of Prime Minister Mirko Cvetković and the lobby of the biggest financiers in Serbia (who were affected by Governor Jelašić’s new foreign currency policy with rapid devaluation.) In simple terms, there are reasons to think that the Serbian Government has put the central bank under control. The bank’s measures in the last months, along with the effects of the financial crisis, have shaken up the disposition of the interior centres of economic power, constituted in the last decade. How this ‘newly gained imperium’ will be used remains unknown.

By Dimitrije Boarov, journalist

CorD 71 / May 2010 7

INTERVIEW |

Dr Bojan Pajtić, President of the Government of Vojvodina

THE KEY FOR EUROPE “The advantage of Vojvodina is well-developed infrastructure, rate of productivity, work and product quality, and the price the investor has to pay for that rate. Our success is in quality of work and in productivity.” By Zorica TODOROVIĆ MIRKOVIĆ r. Bojan Pajtić, President of the Governement of Vojvodina does not care about the constant media statements regarding alleged quarrels between Vojvodina’s Democratic Party committees and its Belgrade headquarters, in other words, between Vojvodina and central Serbia authorities. “There will always be those who disagree with us, but a democratic society implies tolerance and respect of different opinions,” he says, among other things, in his interview for CorD magazine, where we discuss key political, economic, and social topics in Vojvodina and Serbia.

The Government of Vojvodina has undertaken numerous activities to alleviate the effects of the global economic crisis. In your opinion, what has been the most effective? Stimulating measures put into effect by our regional Government correspond exactly with the goal to maintain the macro-economical stabil8 CorD 71 / May 2010

ity of Vojvodina, as they are aimed at economic development and support keeping post through employment programmes. There are measures aimed at opening new technology production sections, where those Vojvodina municipalities with a lesser rate of development have a head start. In order to further stimulate economic development

How far along are you with the jurisdiction transfer matter, which was determined by the adoption of the new AP Vojvodina Statute? It is a complex and responsible matter, and in my opinion, it is advancing at a suitable pace. The whole process of jurisdiction transfer will certainly last this entire year.

It is in Vojvodina‘s best interest that other regions in Serbia receive the opportunities it has

What is the role of Vojvodina in Serbia’s Euro-Atlantic integrations? Is there a greater responsibility in it since the new Statute has been enacted? The state will be obliged to adjust its regulations to the regulations of the EU, on all levels, including the regional level. The new statute anticipates the creation of a regional mission in Brussels, which is something that all regions of EU member countries of and EU candidate countries have. However, that mission will not be opened until Serbia has become a candidate for the membership because, considering the extent of funds and means our country would have at its disposal, it would realistically have the need

through advantageous credit from the AP Vojvodina Development Fund and Guarantee Fund, the Regional Bank of Vojvodina finally sprang to life, and its goal will be to direct all its assets toward stimulation and assistance to the economy. The influence of the global economic crisis is visible in countries much more developed than ours, but with all the logistics we put into this, we hope to lessen the consequences of the crisis.

to have someone to do direct lobbying for the region’s greater participation in the funds forecast for this part of Europe. On several occasions you have emphasized that Vojvodina is the key that opens Europe’s doors to Serbia, implying that Serbia has to accept that. Has Serbia accepted it and, in your opinion, has it become aware of the role this region has in Europe and the world, thanks to its position, economy, personnel, and potentials? Yes, it has. If it had not, we would not be currently working on jurisdiction transfer and we would not have a new development mechanism either. There will always be those who disagree, but a democratic society implies tolerance and respect of other opinions. It is considered that Vojvodina is already late when it comes to opening its office in Brussels. When will Vojvodina open its mission in Brussels and thus come one step closer to EU key institutions? What is stopping Vojvodina from doing so? There is no economic justification for starting that mission before Serbia becomes a candidate for membership in the EU. Regional offices are very expensive and they should bring more money in than out of the country. That is why we

have to be careful in picking the moment to open such an office. The aim of that mission would be, above all, to broaden logistics possibilities and to bring more financial means from European funds for development of infrastructure and economy. Do you still claim that the Democratic Party, in which you are the vice- president, is not looking for new coalition partners on any level of authority in Vojvodina? It was talked about after the Alliance of Vojvodina Hungarians in Subotica officially joined opposition parties. You said then that regional offices had always cooperated properly with that political party.

40% of the total production in Vojvodina is in agricultural products, and as a result we have the interest of Israeli investors The Democratic Party has its traditional partners, which means that today we work with those parties with which we constituted a majority in the two previous sessions of the regional parliament. We are devoted to the idea of gathering a broader corps of pro-European forces in a coalition on the regional level, since that kind of coalition guarantees the broadest support of people in

Vojvodina for plans and projects realized by the regional government. To prove this, I shall state the fact that the Democratic Party after the last elections had the absolute majority in Vojvodina Parliament on its own, but there are four other parties in the regional ruling coalition. Regionalization is one of the topics Serbia will deal with in the years to come. How do you see Vojvodina’s position in Serbia’s regional development? The regionalization of Serbia is a necessary process, since it implies faster, cheaper, and more efficient administration, and more even economic development. I am looking forward to that process, for then not every useful initiative coming from Vojvodina will be denounced as an attack on the integrity of the state or as some Vojvodina exclusivity. It is in Vojvodina‘s best interest that other regions in Serbia receive the opportunities it has. Vojvodina’s autonomy is defined by the Constitution, and the circumstances are such that Vojvodina was designed as a region, while other parts of the country were not regionalized. Vojvodina is attractive for investors, which is true considering that foreign companies have invested € 5 billion in this region and that they have hired 70,000 workers. Can that number be doubled, and what are your aspirations,

REGIONALIZATION

FAR EAST

FIRST ADDRES

The regionalization is a necessary process, since it implies faster, cheaper, and more efﬁcient administration, and more even economic development.

Besides undertaking numerous actions to attract investors from the EU and North America, we are dedicated to attracting investors from the Far East.

VIP is the ﬁrst address for those who want to start their own activities, and so far the results of this Fund have been really remarkable. CorD 71 / May 2010 9

INTERVIEW |

Work, Employment and Equality of Sexes, and the Regional Secretariat for Science and Technological Development, to the Regional Investment Support Fund ‘VIP’.

considering the problems representatives of foreign companies have to deal with when setting up business here? Vojvodina is extremely attractive for investors, and we have been constantly working really hard on the promotion of investment potentials. The last two years have been very difficult for everybody since, if the global economic crisis is an attack on the world’s biggest economies, it is quite normal that we experience difficulties too. The inflow of foreign investments mostly depends on EU market stabilization, as well as on the stabilization of Russian market. It is unwise to forecast and bid, since attracting investments is not a short-term or quick job, nor does it end in a week or two, or even a month. On the contrary, working on such projects could last for years. Slovenian businessmen are interested in relocating part of their production to Serbia and Vojvodina. What is the advantage of Vojvodina and what reductions are there, compared to Serbia? Just last week I had a meeting with a delegation of the Slovenia Business Club and Vojvodina, when I, as president of the regional Government, was given a plaque for long-standing cooperation and the positive echo Slovenian businessmen have in Serbia. Then I realized that there is no better marketing for a region than praises for its positive business dealings. The tradition which Vojvodina and Slovenia have in their economicbusiness cooperation is long, our communication is successful, and there are many investments in Vojvodina that originate from Slovenia to support these facts. The influence of the global crisis is visible in countries much more developed than ours, but with all our logistics we hope it will be milder in our country. When speaking of comparisons, we mostly compare with other regions, not Serbia of which we are a part. In Vojvodina the Investment support fund (VIP) is the first address for those who want to start their own activities, and so far the results of this Fund have been really remarkable. There are national priorities which are the care of the national agency SIEPA, but that is certainly not a problem for the VIP Fund business. The VIP Fund and SIEPA contribute to each other; they do not exclude each other. What foreign investment funds say about us is that our advantage is well-developed infrastructure, rate of productivity, work and product quality, and the price the investor has to pay for that rate. Our success is in quality of work and in productivity. 10 CorD 71 / May 2010

In all strategic documents in the field of energy production and environment preservation, as well as in the Vojvodina’s economic development programme, alternative energy sources and energetic efficiency are priorities Serbia and Vojvodina have always been agricultural areas. You talked about this during your recent stay in Tel Aviv, where you discussed Israel’s investment in Vojvodina agriculture with Minister of Agriculture Shalom Simhon. What exactly are your expectations from those negotiations? 40% of the total production in Vojvodina is in agricultural products, and as a result we have the interest of Israeli investors. During my visit to Israel in March, we had a meeting with the minister of agriculture and his associates, as well as with the representatives of the Israeli business community. The whole point of the meeting was to present our region’s investment potentials and to stimulate the Government of Vojvodina’s measures that enhance each investment to opens new posts on APV territory. Those measures are financial and logistical, and cover dealings of different secretariats, from the Regional Secretariat for

You said that Vojvodina has energetic potential which has not been used so far? What steps are you taking to draw investors to that area, and how aware are citizens of the importance of the application of new renewable sources of energy? The actuality of renewable energy sources in the world is enhanced by the permanent problem of limitations of conventional energy sources, their price, environmental pollution, and the obligation of reduction of gases, which cause the greenhouse effect and result in climate changes and global warming of the planet. Usage of renewable sources of energy, alongside the reduction of negative influences on the environment, contribute to local, economic, and socio-economic development, as well as to the application of new technologies and cleaner production. In all strategic documents in the field of energy production and environment preservation, as well as in the Vojvodina’s economic development programme, alternative energy sources and energetic efficiency are priorities. Vojvodina has a lot of potential in the area of using renewable energy sources, especially biomass, geothermal energy, eol- energy, hydro- potential, solar energy, etc. The Government of the AP Vojvodina helps and participates as much as it can in the realization of projects which promote production of energy from renewable sources, on the condition that their realization does not cause negative consequences for the environment. The Development Fund and the Guarantee Fund of AP Vojvodina have signed an agreement on strategic partnership with ‘Metals Bank,’ which turned this bank into Vojvodina Development Bank. What will it do to justify the name, and what will be the benefits for the economy and businessmen? That is correct; ‘Metals Bank,’ the future Vojvodina Development Bank, and Development Fund of AP Vojvodina have signed an agreement on strategic partnership, which directed RSD 3 billion into the revival of Vojvodina’s economy, with very favourable conditions. The interest on these credits in dinars is the lowest on the market, from 10 to 11 percent, right now when interests for credits in dinars go up to 30% on a

yearly level. So, those means are the cheapest not only in Vojvodina and Serbia, but in the entire region, and that is why they are the trigger for further development of our economy. At the same time, with combined means and efforts of the Guarantee Fund and the Vojvodina Development Bank, RSD 200 million were directed for purchasing agricultural mechanization in the region, which is significant because we succeeded in lessening the average age of agricultural mechanization in Vojvodina by more than 10 years, through this action which, until now, we could put into action only through the Guarantee Fund. Five years ago, when this action started, the average mechanization age was over 25 years, now it is about 15 years, meaning that our efforts were quite fruitful. This action will continue even more strongly and intensively thanks to the fact that we now have more means at our disposal, since there is Vojvodina Development Bank. I am pleased to say that thanks to the new law and statute, the region gets a new, strong development mechanism, an instrument for investment in economy and agriculture, which will be a significant support for those industrials and businessmen with ideas who are willing to join us in this mutual undertaking. China is becoming more and more interesting to us and vice-versa. That country has a growing interest in Vojvodina. Will Vojvodina have its representatives at the Economy Fair in China? Yes, we will be there at our national stand EXPO 2010 in China. The presentation programme is being currently compiled, and our aim is to introduce our comparative advantages when it comes to investment potentials to as many investors as possible. Besides undertaking numerous actions to at-

tract investors from the EU and North America, we are dedicated to attracting investors from the Far East. So far, an investor came to us with three possible strategies: either to supply the Southeast Europe market, to supply the already- existing client on the EU market, or to use Vojvodina’s production for benefits given by the Free Trade Agreement with Russia. Our project with the Chinese company ‘Yto,’ which is a joint investor with ‘Agrovojvodina mehanizacija,’ has shown its potential for Far East companies to supply both European and Russian markets through production in Vojvodina.

Besides humanitarian help, we also provided development help for returnees to Croatia The Government of Vojvodina has been helping displaced and exiled persons and refugees, whose number in Vojvodina is around 250,000. What do you do for them and what is the current situation in solving the refugee problem? The regional government, aware of the fact that about 50% of the total refugee population lives in its territory and that the problems those people face are really difficult, suggested to the AP Vojvodina Assembly in 2006 to start a fund to provide help for permanent aid for displaced and exiled persons and refugees, and so it was done. Since then, through housing programmes, we have helped 615 families, providing them with residences suitable for life in the 21st century. This project implied three forms of help: giving houses in the country, giving packets of construction material for improving present conditions of

living, and giving packets of construction material for finishing residential objects owned by displaced persons and refugees. 2010 will be dedicated to housing people who still live in three collective centres in Vojvodina: in Nova Pazova, Kovin, and Pančevo. We also tried to help those who want to return to their previous places of residence. In the last two and a half years, 139 returnee families (106 went to Croatia), got returnee packets with kitchen appliances, motor cultivators, and tools, with the purpose of facilitating the beginning of their returnee lives and to help people settle down more easily. Still, this is not the only form of assistance that the Government of Vojvodina provides for returnees. Besides humanitarian help, we also provided development help for returnees to Croatia. Returnee cooperatives in Dalmatia, Lika, Banija, Kordun, and western Slavonia were given agricultural mechanization, each worth up to one million dinars, and in cooperation with Novi Sad Institute, they were provided with expert assistance and education in modern technologies of farming and plant cultivation. In cooperation with the Departments of Viticulture, Horticulture and Landscape Architecture of the Faculty of Agriculture in Novi Sad, in 2008 and 2009, we sent help in the form of seeding corn and fruit seedlings worth RSD 11, 800, 000, 00 to Serbian fruit cooperatives included in the Government of Vojvodina’s project called ‘Education of Producers and Set-up of Microexperiments with Different Kinds of Fruit in the Returnee Environments of Ličko- senjska and Karlovac Districts in Croatia.’ This expert help encompassed growing several kinds of grapevines from seedlings grown in the Department for Fruit Growing, Viniculture, Horticulture, and Landscape architecture.

CorD 71 / May 2010 11

INTERVIEW |

Ivan Vejvoda, Executive Director, Balkan Trust for Democracy German Marshall Fund of

TIME FO All countries in the region have committed themselves to European integrations and peaceful conﬂict solutions.There should be no illusions about simplicity, but we assume that a positive step forward will take place By Vera DIDANOVIĆ Photo: Slobodan JOTIĆ he United States Senate has adopted a resolution in which it congratulated Serbia on submitting its application for membership in the EU. The Senate also invited the Council of Europe to timely take a clear stand on Serbia’s qualifications as a candidate country. The resolution was adopted a week before the hearing ‘Unfinished Business in South-East Europe: Opportunities and Challenges in the Western Balkans,’ where Ivan Vejvoda, Executive Director Balkan Trust for Democracy German Marshall Fund of the U.S. was one of the speakers. Thus, we started off our CorD interview with Mr. Vejvoda with the question:

What was the bottom-line of the Senate’s hearing? The American Congress, both the upper house (the Senate) and the House of Representatives, regularly organize testimonies concerning relevant questions from world 12 CorD 71 / May 2010

and domestic politics. The last testimony on the topic of the Balkans was held in April 2008, just after the declaration of Kosovo’s independence. The Balkans are not a priority in American politics, considering all that is happening in Iraq, Afghanistan, the Middle East, their own economic matters, etc. It seems to me that the testimony

Since Kosovo’s selfproclamation of independence in February 2008, Serbia has been behaving constructively and responsibly as a future EU member in the Senate held on April 14th was proof that the Balkans, although not a priority, are still in their spotlight. The very name of the panel, “Unfinished Business in South-East Europe,” points to the fact that US supports the region’s Euro-Atlantic integrations and

that they would do anything to help finish that job. Besides, that is exactly what was said during Vice-President Biden’s visit last May, and recent the visit of James Steinberg, Deputy Secretary of State. Senator Vojnović, who is the most instructed in the matters of Balkan politics, will retire from the Senate at the end of his mandate. He instructed Senator Jeanne Shaheen in these matters. They visited the region together about a month ago, and this testimony was organized after their journey. Could this mean that a new course of US politics in the region has taken place? There is no new course. It seems to me that there is some fresh energy in enacting the politics of European and Euro-Atlantic integrations ever since President Obama and Vice-president Biden came to key positions in the USA. Vice-President Biden’s visit in May marked that. This is the just re- stepping forward in finishing the region’s democratization and integration. Before Washington, you were in Brus-

the U.S.

R CAREFUL OPTIMISM sels where you moderated the Forum about the Balkans. There you gave a positive evaluation of the public appearances of the Serbian and Croatian presidents, when you said that they were ready to work together so their countries would support each other in their advancements towards the EU. How do you see the further development of these two countries’ relations? I observe a very positive development of those relations. It seems to me that SerboCroatian relations, from the historic point of view, have always defined the state of the region now called the West Balkans. Not only that the both presidents have a similar perspective and vision of the Balkans, but they both face immediate challenges. For Croatia, that is the end of their negotiations with the EU. In that process, difficult issues are being raised-the fight against organized crime and corruption- all the things which are problematic for the entire region. Serbia is expecting the continuance of the candidacy process. The EU Council of Ministers will consider its next step in June. It is in both countries’ best interest to show good neighbourly cooperation. I find the use of the phrase ‘European partnership’ quite interesting, and that was the phrase used by the both presidents in Opatija during their first meeting. It was repeated in Brussels at the panel where they sent a number of homogenous messages about the region and the need for further stabilization, peace consolidation, the integrity and sovereignty of Bosnia and Herzegovina, and the desire for regional cooperation. Soon after, there was a three-party meeting with the Hungarian president. All that points to an upward line, awareness, and the need to solve still-open questions.

Both countries are trying to present themselves as regional leaders. Is this some kind of rivalry? I do not think of it as a rivalry. The facts are that Serbia is the biggest country in the region, but Croatia is economically the most powerful. If the biggest and the economically most powerful countries- Serbia is the second most powerful- want to regulate their relations and solve the most difficult questions, it sends a positive signal to other countries, without any pretensions to play a homogenous part or to impose something on others. I would call it ‘leadership on a positive example,’ making role-models

How big of a threat could the potential, future absence of political representative at international meetings, like the one held in Brdo near Kranj and the inauguration of President Josipović, pose for cooperation between Serbia and Croatia, as well as for Serbia’s international position? Symbolical questions are not to be underestimated. Wars were caused by them. Macedonia and Greece are current examples of such, seemingly simple, yet profound historical matters. Also symbolical but important and difficult are the questions of Kosovo’s presence at international forums, and how to

Serbia has not yet reached its 1989 GDP level, and now we are around 60- 65%. Croatia has just now come to the level of 1989. An enormous price was paid. We are all aware of it, and that we have to act differently based on a positive attitude towards the future, and not closing one’s eyes before unresolved business. It can also prompt others to start facing their unsettled matters. Let us take the question of Macedonia, for example. Greece is still holding out in its attempts to block Macedonia’s road toward full membership in NATO and getting negotiator status. Macedonia became a full candidate for EU membership in 2005, and for 5 years its further stabilization and reform process consolidation have been thwarted. Lately there have been signs that efforts between Greece and Macedonia have been doubled, and that after 18 years, we can hope for the closure of a really difficult symbolic problem. That would also be a sign of Macedonian and Greek leadership in European matters. So, leadership is not exclusively made for the biggest or for the most powerful.

keep representatives of Belgrade and Priština in the same room, without somebody dropping his fundamental stand. Kosovo has been recognized by 65 countries, among which are most of EU countries and the USA. On the other hand, twothirds of UN members did not accept its independence, among which are big countries like China, Russia, and Brazil, and a few members of the EU. That is the where the space that allows the solution of how to keep Belgrade and Priština at the same table is to be found. The meeting of Spanish, Turkish, and Serbian ministers of foreign affairs, where it was said that they were really being working hard on finding a magic formula to allow for everyone to be present at the June meeting in Sarajevo, was favourable. I believe it points to the awareness in all

EXTREME VOICES

A WIN-WIN SITUATION

HISTORY

Some, I would say more extreme voices in The USA and Europe, say that Bosnia might enter a new armed conﬂict.

Nobody should be completely defeated, but everybody should, to a certain degree, be a winner in one matter.

It seems to me that Serbo-Croatian relations have always deﬁned the state of the region now called the West Balkans. CorD 71 / May 2010 13

INTERVIEW | relevant cities that there is no room for a status quo, which helps no one. There is an extra complication, as the International Court of Justice has not yet given and advisory opinion whether the selfproclamation had been done according to the international law or not. I feel that both parties should be careful not to do something which might prejudice the opinion of the judges in the International Court of Justice. If we take one step back and look at the dynamics with which things took place, not only in 2000, but also over the last two years since the proclamation of independence in February 2008, we can see that there has been some development, which suggests that further steps are necessary, but the question is in which modality. That is why any assistance from countries like Spain, which is presiding over the EU but has not recognized Kosovo’s independence, not only because of this area’s history, but also because of its government policy of ‘zero problems in the region,’ is welcome. This was obvious on the occasion of the Srebrenica Declaration brought by Serbian National Assembly. Turkey was the mediator with the Bosnians, so it would enable an adequate reaction to a very important step made by Serbia. At the meeting in Brussels, the importance of a constructive role of Serbia and Croatia in the stabilization of situation in Bosnia was emphasized. Can the distinctly good relations of Belgrade and Milorad Dodik, Prime Minister of the Republic of Srpska, who is in favour of separation, be an obstacle? Both Serbia and Croatia have a significant role, considering that they are guarantors of the Dayton Peace Agreement (DPA). Since then, they have been expected to play a constructive role, to work together with the EEU, the USA, and those countries in the Council of Peace to promote the situation in Bosnia and to maintain safety. It is important to say that nobody has denied the structure of the DPA, or of Dayton Bosnia, which is Bosnia made of two entities. Regarding European integrations, it is necessary for Bosnia not to be a protectorate any more. Bosnia has to be sovereign in the practical sense of government and power. Privileged relations between Serbia and the Republic of Srpska, that is to say, 14 CorD 71 / May 2010

It is important to say that nobody has denied the structure of Dayton Bosnia, which is Bosnia made of two entities Serbian people in Bosnia, are allowed, just like special relations of Croatian people are allowed. There is the dimension of internal politics in Bosnia, which will have elections this autumn. Political parties and leaders are trying to create the best possible conditions for them, so their electoral results would be as favourable as possible. This leads to stronger rhetoric, which thwarts the feeling that Bosnia is stable and that there would be no greater turbulence. Some, I would say more extreme voices in The USA and Europe, say that Bosnia might enter a new armed conflict. I do not think so. Bosnia has had democracy for 15 years now; no matter that it was estimated as weak, mediumstrength, or less strong. It is up to the people of Bosnia to decide whether party rhetoric is adequate, and whether they want a change or not. Serbia and Croatia cannot solve that problem, nor can the USA or the EU. Altogether, they can point to dilemmas and the results of passivity about the distant future.

There is some estimation in Serbia that the recognition of Kosovo would be a condition for joining the EU. How realistic is this? I do not think this is based on any facts. Anybody who was here and who issued any statements on the matter- from Vice- President Biden to the new European enlargement chief, Stefan Fule, said that such a condition had not been put before Serbia. Regardless of what some analysts or lower-ranking officials may claim in private conversations, so far the official politics have been to work in favour of the entire region’s European integrations and that, as far as Serbia is concerned, Kosovo is a separate subject. It is important to say that since Kosovo’s selfproclamation of independence in February 2008, Serbia has been behaving constructively and responsibly as a future EU member. Luckily, no catastrophic scenarios took place, from an exodus of Serbs out of Kosovo to a trade blockade and blockade of watercourses from the north to the south of Kosovo. Serbia stated it would defend its national interest and that it would not recognize Kosovo, but that all of this would be done within institutions and according to international rules. I generally feel that the region is the key thing. That is why we can be moderately optimistic about the region’s positive movement, due to the fact that all countries are in favour of European integrations and peaceful conflict solutions. There should be no illusions about simplicity, but we assume that a positive step forward will take place. Serbia has not yet reached its 1989 GDP level, and now we are around 60- 65%. Croatia has just now come to the level of 1989. An enormous price was paid. We are all aware of it, and that we have to act differently. It is important to point out that the EU and the USA are aware of that. At the testimony in the Senate, former US ambassador in NATO, now professor at the Johns Hopkins University, Kurt Walker, distinctly said that Serbia should not be cornered. And that is the bottom-line. Nobody should be completely defeated, but everybody should, to a certain degree, be a winner in one matter, and here, this is the matter of relations between Belgrade and Priština. Since all parties are aware of that, there is the possibility to move towards the solution of that matter.

POLITICS |

Čedomir Jovanović, President of the Liberal Democratic Party

By Vera DIDANOVIC he International Institute of Security and NATO’s Public Diplomacy Division voted Čedomir Jovanović, President of Liberal Democratic Party and MP in the National Assembly of Serbia, as the first laureate of the Award for the Euro-Atlantic Person of the Year. Jovanović, as stated in a commentary accompanying the award, has contributed to the promotion of Euro-Atlantic values in Serbia in the most concrete way, and has clearly spoken his mind on topics like Serbia’s joining NATO, without any calculations about the electorate’s emotions. However, according to public polls, it is still not possible to speak out about the widely-spread understanding of the citizens for values promoted by the LDP and its leader. In an interview for CorD magazine, Jovanović, among other things, answers the question where the solution to this problem lies. “There is no doubt that Serbia must very soon become a NATO member if it wants to develop as a modern European country should. It is one more example of our politicians’ irresponsibility towards society and citizens, of those politicians who refuse to take responsibility and who want to hide behind the people’s referendum choice. The decision about joining NATO should be above this Government. It has to be an expression of political will that speaks about long-term commitment, about a vision for this society. If our army can adequately cooperate with the armies of NATO member countries, why is it a problem and what is the cause of our politics’ incompetence to stay on such a course? The Parliament, during the time when Vojislav Koštunica was in power, reached a rather cheap political decision. Back then, the Kosovo Resolution got a paragraph, half of a sentence about the military neutrality of Serbia. That was not a rational and reasonable decision, and we, as politicians, must lead rational and reasonable politics,” Jovanović says.

NATO NOW! T

“Despite everything, the rate of support for Serbia to join NATO is growing, and today it is almost 30 per cent.The aim of LDP is to speed up lethargic Euro-integrations, to bring them back into the frame of `Euro-Atlantic integrations.’ Both the European Union and NATO are rational choices for our country.” 16 CorD 71 / May 2010

You are for Serbia joining NATO. Do you feel that this is realistic, taking into consideration public opinion and Parliamentary majority? Politicians must raise that question and stand behind their decision about joining NATO. Distraught citizens could not be expected to do so. Despite everything, the rate of support for Serbia to join NATO is growing, and today it is almost

30 per cent. The aim of LDP is to speed up lethargic Euro-integrations, to bring them back into the frame of `Euro-Atlantic integrations.’ Both the European Union and NATO are rational choices for our country. There are numerous security, political, and economic reasons why Serbia should set the question of joining NATO as one of its priorities in its foreign-political orientation. This alliance is important for Serbia since it is based on common values: democratic order, protection of citizen and minority rights, market economy, rule of law, as well as common defense and solidarity in case of endangerment of any member. Why did not you support the Srebrenica Declaration in the National Assembly? LDP could not vote for a text that paid more attention to the needs of the ruling coalition than to those of society. If society wants clearer, cleaner politics, and it does, since this society is made up of normal people who care about their children, then in the future society should vote for the party which has such political representation. We opened the topic of our stand on Srebrenica. We offered solutions: saying that genocide took place in Srebrenica, requesting that at least the people be told that Mladić has been accused of genocide and the harshest war crimes, that if we cannot arrest him, to proclaim July 11th as Remembrance Day to show that we sincerely accept the attitude of of 500 million Europeans, as stated in the resolution of the European Parliament.

Taking into consideration the division in the Parliament on some difficult questions, do you think that Serbia is capable of leaving the past behind to focus on the solution to current life matters? LDP is ready, as it has been so far, to support any European project or legal suggestion, but we cannot do so if we do not receive a precise strategy for inner reforms, enhancement of institutional efficiency, execution of adopted laws, and restraining economic populism. Our society certainly has the potential for something like that. Unfortunately, LDP fights

It is our aim to create conditions for the victory of ‘Europe without compromises’ policy at the next elections, whose scheduling is demanded by LDP right after the acceptance of the submitted candidacy for membership in the EU Would the adoption of the Srebrenica Declaration in Parliament be able to promote regional relations? Regardless of all its flaws, it is a good thing that the subject of Srebrenica and the politics which started it became open. Serbia must help itself by becoming part of the solution of each significant problem in the region. On that platform and specific questions which burden the relations and common future in EU and NATO, Serbia should overcome these problems and look for the bright side of a regional partnership.

against it. There are politicians in Serbia who are perfectly at ease with the current position of Serbia: our candidacy has been submitted, followed by a complete cease in inner reforms, singing of the occasional patriotic song accompanied by a ‘gusle’, and encouraging the minister of foreign affairs to mistreat and annoy Serbia’s neighbours in the region. It is the wrong way, and not only because it influences in a terrible manner Serbia’s relations with the EU and other important partners of our country. LDP did not support the request of some

opposition parties to schedule early elections. Alongside some instances of supporting the ruling coalition in the Parliament, which was the main factor for adopting certain laws in the Parliament (like the Information Act), that is one of the reasons that it is not clear whether LDP is for or against the ruling coalition. What is LDP’s true stand? Since the 2008 election, LDP has been very consistent, despite of occasional misunderstandings it came across, in supporting every political step or decision which brought at least minimal benefit to Serbia in the process of joining the EU. People know that we cannot be the opposition to the society just because we are not in power. We strongly support pro-European orientation, but we refuse to be silent before the fact the Government is leading a catastrophic economic policy. It is our aim to create conditions for the victory of ‘Europe without compromises’ policy at the next elections, whose scheduling is demanded by LDP right after the acceptance of the submitted candidacy for membership in the EU. That is why the political struggle for the faster full membership in the EU must and will be non- compromising in 2010. You have expressed your concern over the resignation of the Governor of the National Bank of Serbia, Radovan Jelašić. In your opinion, what caused that act on his side? LDP is the toughest opposition to the current economic policy. For the first time, Serbia took a credit from another country, namely from Russia, so that it could cover the budget CorD 71 / May 2010 17

POLITICS | deficit. The mechanisms at disposal ran out and that is the message of the Governor’s retreat. Everything that was happening around him, the expansion of populism, the announcement of cash credits, pressure on the currency, were triggers for such a decision on his part. Everybody is talking about economic growth, but it is not clear how it is possible, if no sure export for larger economic activity is planned. The only realistic model of growth is the one which generates investments coming from domestic savings. This means that a larger export, annihilation of negative influence of the exchange rate on the competitiveness of the economy, letting go of employees in the public sector, and tax reduction are needed. In your opinion, how can we get out of this difficult economic situation? We must make a U-turn as soon as possible, both as a state and as a society, and we must never again use an MMF or any other banking credit for filling up budgetary holes or postponing indefinitely serious reforms. We are paying for that postponement through monetary instability and a cessation of economic growth, which on a yearly level causes damage measured in billions and years lost. LDP thinks that the key measurements of the new economic policy of Serbia should be: tax reform and reform of the public sector, uncompromising European integrations, flexible exchange rate and depolitization of fiscal policy, re- industrialization through potentials of domestic saving for investing into future exports, speeding up privatization, competitiveness reinforcement, and de- monopolization. On what did you base the election the next year you announced at a recent meeting of your party’s main board? Does that announcement have anything to do with the sale of Telekom? The Government cannot maintain its popularity until the end of its term and avoid difficult decisions. All LDP’s messages stood alone, due to the populism which is the basis for the economic policy of those in power. In 2009 alone, the GNP

SREBRENICA Regardless of all its ﬂaws, it is a good thing that the subject of Srebrenica and the politics which started it became open 18 CorD 71 / May 2010

ficiency in public companies cannot be tolerated forever. It is important for Serbian economy and all citizens to avoid in the future what is happening to JAT Airways now. It is better to solve all of these problems now, so that ‘Srbijagas’, NIS, and other so-called giants can get ready for a normal market, rather than at some new telephone conference of the Government and similar to JAT’s case, a decision about closing the company without any plan and programme is reached, along with starting a new company with the assets of the old one, all the while leaving debts, losses, and enormous obligations to citizens.

We strongly support proEuropean orientation, but we refuse to be silent before the fact the Government is leading a catastrophic economic policy dropped by 4%. The potential growth rate is 5%, meaning that we have lost 9% of possible growth. That loss is measured in billions.This is why we have to dedicate ourselves to preparations for normal elections. That is the moment when Serbia’s membership in the EU is certain, when we get the green light for our candidacy. We expect that to happen in the next year and that will be the right time for the elections. What do you think of the practice of distributing the management of public companies as loot among the parties after the elections? Is LDP, in any way, participating in it? No, we do not participate in any way. We even support people who are not LDP members for positions in local governments. In institutions and companies where we had the chance to do so, a public competition was organized for the first time. It is a standard here in Belgrade, it is an article in the City Statute, and never again shall an individual have the possibility to name party management, the way it is being done by state authorities. The political patronage and inef-

MODEL OF GROWTH The only realistic model of growth is the one which generates investments coming from domestic savings

You have well-branched political contacts. What are your most frequent topics in conversations with international officials? Are you lobbying for anything? European liberals and reformers gathered around ELDR see in us Serbia with the strength to change, to respond to challenges, and to function on the principles of liberal democracy. That contact and trust we have used several times for Serbia’s Euro-Atlantic integrations. We try the hardest with German, British, and Swedish liberals, as well as with regional liberal parties. Our approach is very important in Holland in reaching a decision to allow application of the Trade agreement, and we have large regional support for Serbia’s rapid integration and that of the entire region in the EU and NATO. In your opinion, what is Serbia’s biggest stumbling block on its European path and what can we do to speed it up? Serbia’s European integrations have slowed down once again at the beginning of the year, and there are serious, mostly political reasons for that. The initiative must come from us alone, because this is a process in which Serbia must be the most interested and the most active. We missed our chance at last year’s regional summit in Slovenia, but Serbia must be a participant and in positive news from the meeting of the EU and counties in the region in Sarajevo. That is the only way to fulfill our ambition to be leaders, as much as our interests and still weak performances allow us to be.

PUBLIC COMPANIES The political patronage and inefﬁciency in public companies, like JAT Airways, cannot be tolerated forever

DIPLOMACY |

H.E. Mr. Luís de Almeida Sampaio, Ambassador of the Republic of Portugal to Serbia

CHALLENGES OF A FUTURE TOGETHER “There is a lot to be done and a lot of potential. Serbia is the heart of the Western Balkans and the Western Balkans is the next step in European Union enlargement.” By Vera DIDANOVIĆ Photo: Slobodan JOTIĆ he world has changed a lot over the last few years. There are new challenges that imply new responsibilities,” says H.E. Mr. Luís de Almeida Sampaio, Ambassador of the Republic of Portugal to Serbia. Judging by his words, Portugal is not afraid of new challenges. In his interview for CorD magazine, the ambassador negates the assessments of a ‘Greek scenario’ occurring in his country. He also talks about the importance of European integrations and numerous ambitious plans related to cooperation between Serbia and Portugal. We start our conversation with a topic of broad significance- the effects of the Lisbon Contract, which after a lot of problems, became valid on December 1st.

20 CorD 71 / May 2010

From Portugal’s point of view, has the Lisbon Agreement fulfilled expectations, or are those analysts who say that the majority of Portuguese people support it only because it was named after the capital right? The Lisbon Treaty is a decisive piece of the European integration process. It is intended to grant European Union institutions ways and means to replace Europe as a leading actor in the present international political, economic, and social circumstances. Both Europe and the entire world have changed a lot during the last years. There are new challenges that imply new responsibilities. Some of these challenges are global challenges. Security threats, environmental concerns and awareness, large financial and economic transformations, etc. All these impose the adoption of new policies that require new institutional mechanisms. The

emerging economic powers are no longer just emerging. The world has become a very different place. The European Union had to adapt and that is what it did with the Treaty of Lisbon. Even though the complexity of the Treaty does not facilitate broad public familiarization with its many aspects, I am convinced that European public opinion, not only the Portuguese one, understands that the Treaty was a welcomed and indispensable evolution. Mr. Barroso was elected president of the European Committee for the second time. What is the significance of this for our country? It is very important for any European Union member state to have a representative in such a prominent political position. It is not only a question of prestige. It is also something with serious positive political implications. Portu-

gal, a medium-size European economy, is very active in pursuing a policy of serious engagement in all relevant European Union institutions. Barroso is the President of the European Commission, a Portuguese is the President of the European court of Auditors; we have a Portuguese as vice-president of the European Bank for Reconstruction and Development, at the European Investment Bank, and at the European Central Bank. All this is very important and our diplomacy is very much involved in this pursuit for optimum Portuguese international high-level representation. I would also like to mention that a former Portuguese president is the UN High Representative for Dialogue Between Cultures and Civilizations and a former Portuguese prime minister is the UN High Commissioner for Refugees. How founded are the assumptions that the Greek scenario might repeat itself in Portugal? Even though there is a lot of sympathy and solidarity with Greece and with the Greek people because of the serious financial situation they are experiencing, all serious analysts recognize that the situation in other European countries, Portugal included, is essentially different. European institutions have recently approved national programs to face the consequences of the international economic and financial crisis and to bring their deficits under tight control. The programme presented by Portugal was approved and it is being put into practice. To give you a concrete example, the measures in motion will bring the deficit down to 2.8 percent of the GDP in 2013. This strategy is based on the reduction of the public expenditure, reduction of fiscal expenditure, increase of fiscal revenues, and key stabilization measures that were devised in close coordination and with the approval of European Union institutions. We believe recovery has already started and rating agencies acknowledge that very fact. Concerning the 100 years since the signing of the first contract between Serbia and Portugal, a high delegation, spearheaded by the Prime Minister, might arrive in Belgrade this fall. What could be the results of that visit? Indeed we will celebrate in September 2010 the first century of the first agreement between Portugal and Serbia. It is a special and symbolic occasion that will be com-

memorated as it ought to be. I am personally involved in the preparations. It is also a very good occasion to take stock of the recent development and deepening of bilateral relations between Serbia and Portugal. There are a lot of things in the making and in that context, with the materialization of some big and ambitious projects, a visit of the Portuguese Prime Minister leading an important delegation of Portuguese businessmen will only be the natural culmination of this process. How do you value the current economical relations between our two countries? There is a lot to be done, and there is a lot of potential. Serbia is the heart of the Western Balkans and the Western Balkans are the next step in European Union enlargement. This is a very important region. Many projects will see the light of day in the course of the next few years. Portuguese companies, with their experience and with their very competitive prices and quality standards, are bound to be part of the effort of modernization that Serbia

and the Balkans will benefit from. After his visit to Portugal, the Minister of Foreign Affairs of Serbia announced the arrival of investors from your country to Serbia. What are these business ventures? Portuguese companies are in the midst of a very accelerated process of internationalization. During the last 24 years since our European integration, Portuguese companies have built infrastructures of all sorts in Portugal and abroad. Portuguese companies have built and are building motorways, railroads, ports, airports, bridges, dams in Europe, in America, in Asia, in Africa, all over the world, acquiring a know-how that places them amongst top-level infrastructure companies. In the energy field, especially in renewable energy, Portuguese companies excel. Our banking system is considered one of the most advanced in the world. Urban development and environmentally friendly urban solutions are clusters where Portuguese companies share top-level worldwide rankings. Sports-

TOURISM

ACTIVE IN EU

SPECIAL OCCASION

Tourism is a very good example of a domain where cooperation is not only suitable but presents great economic opportunities

Portugal, a mediumsize European economy, is very active in pursuing a policy of serious engagement in all relevant European Union institutions

The ďŹ rst century of the ďŹ rst agreement between Portugal and Serbia is a special and symbolic occasion that will be commemorated as it ought to be CorD 71 / May 2010 21

DIPLOMACY |

Even though there is a lot of sympathy and solidarity with Greece and with the Greek people because of the serious financial situation they are experiencing, all the serious analysts recognize that the situation in other European countries, Portugal included, is essentially different related infrastructures are also amongst the best examples of Portuguese companies’ know-how and capabilities. Tourism, again environmentally friendly and economically sustainable, is another field Portuguese companies are very proud of. Agro-industries and agriculture-related activities, such as wine producing and wine quality improvement and preservation, are other examples. In all these sectors Portuguese companies are discovering the Serbian market and their presence will start to be felt. Is there an option for the Serbian companies to do business in Portugal? Of course there is. There are Serbian companies with very important incorporation of added value. They are welcome in Portugal. Moreover, there are triangular cooperation possibilities that could lead Serbian and Portuguese companies participating in joint ventures directed to investing and doing business in countries like Brazil, Angola, North African countries… Is there a possibility to promote cooperation in the area of tourism? Tourism is a very good example of a domain where cooperation is not only suitable but presents great economic opportunities. Serbia is relatively unexplored in terms of tourism. It is an incredibly beautiful country with a unique cultural heritage and a well preserved natural environment. There are breathtaking natural jewels in Serbia. The time has come to develop a tourism industry and related services in Serbia that could 22 CorD 71 / May 2010

bring to the full those immense possibilities. The Portuguese tourism-related experience could be of a great value for Serbia. We have very good examples of tourism development that is simultaneously profitable, of very high quality, respectful of history and culture, and perfectly integrated in terms of environment and natural preservation. It seems that at this moment cultural cooperation between the two countries is the most developed. Are there any plans in that area? Cultural cooperation between Portugal and Serbia is intensifying by the day. There are hundreds of students learning Portuguese at Belgrade University. This school year 2009/2010 Portuguese language classes started at Universities of Novi Sad and Kragujevac. This is a very important endeavor. The Portuguese language is one of the most spoken languages on Earth. It is truly a language of globalization. It is already an indispensable business tool in Latin America and very large parts of Africa and its importance is growing in North America and Asia. We share the language with hundreds of millions of citizens of Brazil, Angola, Mozambique, Cape Verde, Guiné Bissau, S. Tomé e Príncipe, Timor, etc. Portuguese music and other various forms of arts are very appreciated in Serbia. The Serbian public is very educated and knowledgeable and demanding and I am determined to continue promoting that the very best Portuguese artists come to Serbia. Recent fado performances in Belgrade and Novi Sad are examples of the quality of the best Portuguese

music representatives. Our best pianist has just recently come to Nis to play during an extraordinary performance of a modern Portuguese dancing company. Portuguese painters will be present at the Pancevo biennale and there will be some surprises reserved for later in the year. Your country became an EU member in 1986. What benefits have you had from that process, and is there something Serbia could learn from that experience? Portugal benefited immensely from European integration. Structural and cohesion funds that were attributed to Portugal allowed for modernization of our infrastructure network and became the engine for accelerating overall economic progress. Portugal is a very different country today from what it was back in ’86. It changed for the better in almost all economic and social aspects. That would not have been possible without the financial support of the European Union. Politically speaking, European integration also had a very important stabilizing dimension. There is a sense of belonging. Our youth knows that is a part of a bigger family of shared values, interests, and objectives. We share a common future with other European nations. All these could be very important examples for Serbia. But I would also add and underline that everything that happened did not affect out national identity, our cultural heritage, our role outside the European Union context, nor did it did impinge upon our capability of reaching out to our natural sphere of interests and influence. The essential remains.

CorD 71 / May 2010 23

REGION |

Slovenia and Croatia

OFFICIALS BEHIND BARS In the course of the ﬁght against corruption, under suspicion that they had participated in large affairs, former state ofﬁcials were arrested in two neighbouring countries. In both cases, the suspects claim this is a case of political persecution By Tatjana TAGIROV ot only had Croatian Prime Minister Jadranka Kosor and her Slovenian colleague Borut Pahor apparently established excellent relations between their countries, they also seem to be in collusion over the fight against corruption. First, ‘the affair Podravka’ was set to motion and in its duration the entire managerial establishment of that company and recently the Deputy Premier of the Croatian Government were sent to jail. In short, it seems that sale of ‘Podravka’ shares is related to the privatization of INA. To be more accurate, the selling of INA shares to the Hungarian company MOL is closely related to ‘Podravka’ and the purchase of 10.6% of its stock. Former Deputy Premier Damir Polančec convinced the heads of MOL that the ‘hostile takeover’ is threatening ‘Podravka,’ and that it should be prevented, and thus, thanks to the guarantees of MOL, ‘Podravka’ got € 34.2 million in credit from the Hungarian OTP Bank. This covered the purchase of those 10.6 per cent of ‘Podravka’ stocks, which are assigned to the ‘Fima Ami’ company. This company is the property of unknown owners, with headquarters in Malta. The only thing known for sure about it is that the director is Ranko Mimović, a Serbian businessman who set up business dealings in Serbia (where, according to the media, he failed). Mimović ambitiously claims that he will not stop at a package of the 10 per cent ownership of ‘Podravka’, but that he will attempt to buy off a 26% ownership package of stocks from the state. The Croatian political establishment is sur-

24 CorD 71 / May 2010

Ivo Sanader prised and scandalized by the idea that a part of ‘Podravka’ is in Serbian hands. A question of the role in the whole story of the notorious Croatian tycoon, Miroslav Kutla, is raised, while Polančec is in custody in Remetinac prison in Zagreb for the exact malfeasance, which, as it was claimed, should have protected ‘Podravka’ from the ‘hostile takeover’. Around that same time, on March 11th, Slovenian Criminal Police arrested five persons under the suspicion of corruption during the selling of land. Among them are Minister

Who was completely ignorant of any of the affairs which have been rolling over Croatia in the last couple of months? of Agriculture Milan Pogačnik, Mayor of Murska Sobota Anton Štihec, President of Slovenian National Party Zmago Jelinčić, and his party colleague and representative in the Parliament Srečko Prijatelj, as well as the former Chairman of the Board of Kopar Port Robert Časar. They are suspected of malfeasance- corruption, breach of duty, giving and receiving bribes, and illegal gun trade in the process of the selling of the 63 hectares of land for golf courses in Orleška Gmajna near Sežana, and in some other areas near Kopar, Ljubljana, and Murska Sobota. All of them claim these are cases of political prosecution. Those arrested in Slovenia claim that this is the revenge of the Minister of the Interior Katarina Kresal, while in Croatia the prognosis is that the arrest of Polančec is actually a ground-breaking event for the prosecu-

Damir Polancec tion of runaway Prime Minister Ivo Sanader. Sanader even made an announcement few days ago, claiming that he has nothing to do with that of which Polančec is accused, and that in his government, each Minister was independent in his own job. ‘It is certainly possible that any member of the government could have taken up any given action in his area,’ Sanader states. On the other hand, in the statements issued over the last couple of days, once his own and now ministers of Prime Minister Kosor, claim that they consulted their former Prime Minister about any important decisions, including this ‘Podravka’ matter. Prime Minister Kosor has taken the same attitude, and says that it is hardly possible for ministers in the government of her predecessor to have acted on their own, and that the Prime Minister was ignorant of that. ‘I notified the Prime Minister about everything I had done as the Deputy Premier and a minister, and I believe it is the principle which should definitely be nurtured. The first man of the Government is the most responsible. He must have his fingers in everything and must constantly supervise all processes’, she says. Still, the Croatian public asks the question: How is it that Jadranka Kosor herself, who for years was a Deputy Premier in Sanader’s Government, was completely ignorant of any of the affairs which have been rolling over Croatia in the last couple of months? We still do not know what the final outcome of these two affairs will be, but it is clear by now that nothing was ever possible without the sponsorship of high politics, and that corruption is a part of business dealings, a fact which does not change anything, not even the swearing to the principles of the European Union.

Bosnia & Herzegovina

PRE-ELECTION CONVERGENCE OF HDZ AND SNSD The biggest Croatian party in the Federation of Bosnia and Herzegovina and the leading Serbian party in the Srpska Republic are opposed to the suggested constitutional changes, over which the international community is playing hard ball

Milorad Dodik and Dragan Covic

By Vojislava VIGNJEVIĆ lthough the general elections in Bosnia and Herzegovina are not scheduled until October, a kind of campaign has already begun. The most evident in that process is the convergence of the BIH Croatian Democratic Community (HDZ BiH), led by Dragan Čović, and the Union of Independent Social Democrats (SNSD), led by Milorad Dodik. In Banja Luka, on the eve of the elections to be held soon, they reached an agreement that SNSD would support a HDZ candidate for membership in the Presidency of Bosnia and Herzegovina, and that HDZ would do the same for a SNSD candidate. After meeting with Čović on the premises of the Government of the Srpska Republic, Dodik said that HDZ BiH and SNSD would sign a protocol about cooperation at a meeting in Mostar at the end of April. “For a long time we have been acting in coordination on important issues, not because we want to make problems for anyone else in Bosnia and Herzegovina, but because many of our stands overlap, and that is the reason we are trying to maintain the functionality of Bosnia and Herzegovina within the Constitution,” Dodik said. Čović confirmed the good cooperation between the two parties and added that SNSD would support the HDZ member from the Federation of Bosnia and Herzegovina for the BiH Presidency, and vice versa. The convergence of the biggest Croatian party in the BiH Federation and the ruling Serbian party in the Srpska Republic could be noticed as early as last autumn, during the unsuccessful Butmir talks. The international community and the USA initiated the talks,

wanting to speed up the process of constitutional changes in Bosnia and Herzegovina so that the whole state would make faster progress towards the Euro-Atlantic integrations. However, the strengthening of the central powers in Sarajevo, which was the framework of the suggestion international officials had presented, was dismissed by representatives of Serbs and Croats, who all along insisted on preserving the Dayton principle of the entity elections. Their mutual stand was that by the constitutional changes, all the power should actually belong to the majority, that is to say, to the Bosnians. Particularly harsh was the reaction of the Serbian delegation, which accused the USA and EU of an attempt to bring down the Dayton Treaty. Representatives of both Serbian and Croatian parties also expressed their dissatisfaction with, as they claimed, too much authority of

the community is trying to procure the assent of the political protagonists for the constitutional changes after the general elections this autumn by the so-called Madrid Declaration. This declaration states the commitment of the signatories to take up the alternation of the Constitution after the elections, as well as their personal commitment to protect freedoms, enter the EU, and join the NATO alliance. However, the first reactions to the declaration coming from the Srpska Republic state that this newest initiative of the international community might not go according to plan. Nebojša Radmanović, member of the Presidency of Bosnia and Herzegovina from the Srpska Republic, said that the Madrid Declaration about the constitutional changes in Bosnia and Herzegovina is unacceptable for the Srpska Republic because it is a remnant of the old, failed propositions from the

The significance given to Bosnia and Herzegovina by the international community is clearly shown in the intention to give epithet ‘historic’ to the conference about BiH, which should be held in June in Sarajevo the high representative for BiH, especially with his so-called Bonn powers, which allow him to dismiss from duty any official and ‘disobedient’ members of Parliament. Better relations between HDZ and SNSD were encouraged by the recent meeting of the presidents of Croatia and Serbia, Ivo Josipović and Boris Tadić, in Opatija. The international community however, did not abandon its attention to accelerate needed constitutional changes in Bosnia and Herzegovina, as pointed out, so that BiH could move faster towards the European Union as a functional and efficient country. This time,

Butmir package, and that he was seeking radical changes in the Constitution of Bosnia and Herzegovina. “Unacceptable are those clauses of this declaration which state that everything adopted through pressure and imposed in BiH should be built into the Constitution,” Radmanović said. He pointed out that each conversation regarding BiH Constitution changes must be top priority, and that must be led and concluded within the country, and that it was highly uncustomary to accept any obligations before the elections, since it is unknown who will be in power after October. CorD 71 / May 2010 25

REGION |

For the Srpska Republic and its representatives, according to Radmanović, “the avoidance of the first article of the Constitution of Bosnia and Herzegovina, which states that BiH is made up of two entities and that the representatives of three constitutional nations have the decisive role” is unacceptable. Bosnian parties are unanimous over constitutional changes, arguing that the state is not functional and the administration is slow in moving faster towards the European Union. Haris Silajdžić, leader of the Party for Bosnia and Herzegovina and president of the Presidency of BiH, had an uncommonly sharp reaction to the stands of the HDZ BiH and SNSD leader. He said that “those who are not satisfied with the state of things in Bosnia and Herzegovina are free to leave, but they cannot take anything from here.” Responding to that statement, Dragan Čović, President of HDZ BiH, responded by saying that “it says we have some serious problems. ‘All those who want and love Bosnia and Herzegovina, and many swear on it, should think about what kind of message they are sending to the public and citizens of Bosnia and Herzegovina,” Čović said. The significance given to Bosnia and Herzegovina by the international community is clearly shown in the intention to give epithet ‘historic’ to the conference about BiH, which should be held in June in Sarajevo. During his visit to Sarajevo, the Minister of Foreign Affairs of Spain, Miguel Anhel Moratinos, said that the Western Balkans and Bosnia and Herzegovina are “high on the EU’s priority list” and that the June EU- Western Balkans conference would be historic and a great chance for Bosnia and Herzegovina to show their firm commitment and dedication to a European future. Spain is devoted to its efforts to fulfill EU priorities, and the Western Balkans and Bosnia and Herzegovina are high on that list, Moratinos added. One can only wait to see what and how large the scope of the conference to come will be, and if there will be constitutional changes in Bosnia and Herzegovina after the election. One thing is certain, though. The state is in a complex situation, and the processes the international community is trying to speed up so it could accelerate Euro-Atlantic integrations are slow. These are overly-demanding challenges for the entire region of the Western Balkans. 26 CorD 71 / May 2010

Montenegro

NOBODY DOCKED IN BAR PORT The public was slightly surprised when, at the beginning of April, offers on tender for selling 54.5% of the main port sector ‘Container terminal and general cargo’ were opened, and when it became clear that not a single offer came from companies that had previously bought tender documentation.

Bar Port By Ilija DESPOTOVIĆ ontenegro has still not found a buyer for a part of Bar Port, although all its capacities were the object of interest for investors and businessmen from several countries. The public was slightly surprised when, at the beginning of April, offers on tender for selling 54.5% of the main port sector ‘Container terminal and general cargo’ were opened, and when it became clear that not a single offer came from companies that had previously bought tender documentation. There are no offers from Serbia, whose officials and businessmen on several occasions had stated their interest in Bar Port. Buyers from Lebanon and the United Arab Emirates, who had also bought tender documentation, were absent. The offer for the purchase of 85.4% of shares in ‘Montecargo’, which had previously been singled out from the Port, was sent by the Romanian consortium ‘Grampet,’ and a maritime company from Bar ‘Nimont’ and ‘Interlog’ sent their offers for the organizational sector ‘Maritime affairs.’ That is how the

tender for selling Bar Port practically failed. Andrija Lompar, Minister of Maritime Affairs and Transportation of Montenegro, explains that the potential buyers of ‘Container terminal and general cargo’ most likely gave up because the purchase of 54.5% of shares does not give them guarantees of comfort as future owners. In this story of a tender, the most import thing is the relation of Serbia to Bar Port. As far as we can see, politics, Serbian in the first place, but also Montenegrin, are very influential in that area. Serbian officials stated on several occasions that that country had, so to speak, a ‘natural right’ to Bar Port. In this context, they accentuated Serbian investments in the Port’s construction and in its reconstruction after the catastrophic earthquake in 1979. According to these explanations, Serbia would have the right to get a part of the Port even without giving any money. There are political aspects of the story. People in Montenegro still vividly remember the political populism two decades ago, when on the well-known protests that preceded the Yugoslav drama, the song ‘Serbia has a sea,

via Montenegro.’ Some Serbian analysts, like Slobodan Antonić, state yet different arguments, trying to prove that Bar Port is not in the best interest of Serbian economy. He claims that Europe is not interested in a strategic traffic artery from Bar via Montenegro and Serbia, and thus, Bar Port cannot be useful. According to Antonić’s data, 75% of Serbian economy is gravitating towards Corridor 10, meaning in the direction towards Thessaloníki Port. “It is not difficult to conclude that Serbia has much more reason to turn itself towards building long-term relationships with Thessaloníki Port than with Bar Port,” Antonić stated. Serbian Minister for Infrastructure Milutin Mrkonjić said in February this year, among other things, that the transport of goods by rail from Serbia to Bar Port is “much more efficient, faster, and cheaper than those which are used right now,” like ports in Constanta, Koper, and Rijeka’. In Montenegro there are warnings from relevant political addresses that it would not be good that Serbia has control over Bar Port and the railway from the sea to Belgrade, either by ownership or in some other way. Such remarks are the expression of fears from the political influence of Belgrade via economic supremacy in Montenegro. Nobody can deny the importance of the good relationship between Serbia and Montenegro, exactly over Bar Port, which was proven by earlier agreement between the railways of two countries on the introduction of container train BarBelgrade. The management of Bar Port is very attentive towards the needs of Serbian economy. There is a general consensus that Bar Port has an excellent position at the entry point from the Mediterranean to the Adriatic Sea. For example,

Bar Port, metaphorically speaking, slightly resembles a girl praised by everyone, but who has difficulties ‘getting married’ to anyone Italy made it clear in its ‘Marco Polo 2’ project that it would like to introduce its goods to the Central and Eastern Europe precisely via Bar Port, which of course, implies a more modern railway and highway from Bar to Belgrade. The interest in the purchase of part of the Port or business dealings with it has been expressed by Chinese, Cuban, and Macedonian companies. However, there are still not any concrete arrangements. Thus, Bar Port, metaphorically speaking, slightly resembles a girl praised by everyone, but who has difficulties ‘getting married’ to anyone. Bar Port is a very respectable economic source not only for Montenegro, but also as a Montenegrin brand with a long history. The construction of Bar Port commenced in the spring of 1906. The foundation stone with his initials in it was launched into the sea by King Nikola. The port was completed three years later. Actually, a 250 metres long breakwater was constructed, based on a project by the Italian Coen Callia, and the port began working. A kind of a pier in Bar existed even in the times of the Turks, who made a wooden jetty in the second half of the 19th century. From 1918 until 1941 the Port did not receive any investments, and it was mined by the Germans in 1944. The reconstruction of the Port started in 1950 and the works lasted for many years. The port was ruined in the 1979 earthquake, after which its rebuilding began in 1981. The ‘new edition’ of Bar Port was finished three years later and became functional to reload five tons of merchandise. Now Bar Port barely reloads something more than a half of this quantity. CorD 71 / May 2010 27

ECONOMY |

PRIVATIZATION OF TELEKOM SRBIJA

Selling the bonanza The Serbian Government has reached an ofﬁcial decision to sell ‘Telekom Srbija,’ or better to say, to sell 40% of shares of this state-owned company. Contradictory assessments over the justiﬁcation of the sale of one of the most successful domestic companies and speculations about the motifs that lead to this decision, as well as about the way in which the money will be spent, have appeared in the expert and political public. CorD conducted a poll among experts, who responded to the following question:

Is it necessary to sell ‘Telekom,’ and what are the arguments on which you have based your decision? Jasna Matić, Minister for Telecommunications and Informational Society

PUBLIC CORPORATIONS ARE NOT EFFICIENT

he necessary condition for the selling ‘Telekom Srbija’ was met when fixed telephony was liberalized, meaning that the telecommunications market would still function undisturbed in all its segments, regardless of ownership structure.

In the area of fixed telephony, where there was no competition, ‘Telekom’ stagnated. This is a non-profitable area of business, so there were not many investments and today, we are one of the few countries in Europe where party lines can still be found.

The policy of all governments in Serbia since 2000 was that public corporations should be privatized, because they are not efficient and they transfer their inefficiency onto the entire economy The policy of all governments in Serbia since 2000 was that public corporations should be privatized, because they are not efficient and they transfer their inefficiency onto the entire economy. If you go through Telekom’s business records, you will see that efficiency exists only in the part where there is competition, in other words, in the area of mobile phone networks, where ‘Telekom Srbija’ had to make some investments so that it could keep up with its rivals, ‘Telenor’ and ’VIP.’ 28 CorD 71 / May 2010

One should also bear in mind that the process of concentration is currently taking place in telecommunications, as well as in numerous other industries. Major world telecommunication operators, who serve hundreds of millions of users, buy their equipment wholesale, and thus get far more advantageous prices and terms than small national operators. It is very difficult for our ‘Telekom,’ which buys equipment for four or five million users, to compete with someone who buys it for 200 million users.

Public corporation management is further burdened and slowed down by the need for strict obedience to the law on public procurements, which, of course, are non-existent for the private sector. Thus, it is certain that a good strategic partner would contribute to more efficient management of ‘Telekom,’ which would result in improving services available to citizens and economy.

Aleksandar Vlahović, Director of the Economic Institute in Belgrade

ECONOMICALLY-BASED DECISION ABOUT TELEKOM’S SALE

deem the decision to sell Telekom valid and economically-based. I shall state several reasons in favour of this assertion. Last year, Telekom recorded the largest financial profit since its foundation. Therefore, the company’s financial and business accomplishments represent a good starting point for structuring the entire transaction. This is, among other things, the consequence of prudent, strategic decisions, which were made and put to action in the previous period. This, above all, refers to the purchase of Telekom in the Republic of Srpska, as well as to greenfield investment in the mobile phone network in Montenegro. By doing so, Telekom has become a regional partner, which significantly increased the company’s value and substantially promoted the transaction attractiveness rate for potential multinational companies. On the other hand, should the state decide to permanently retain majority ownership over Telekom, intensive investments in the following period would be implied, all with the aim of maintaining the regional competitive position; in other words, of keeping and promoting business and financial accomplishments. Having considered that the company’s solvency is rather burdened by already-existing credit commitments, the sources of financing, or at least a part of them, are due to be provided by the state budget. However, taking into account the state of the Serbian budget, it is not re-

alistic to expect such financing. The remark that in the circumstances of the global economic crisis, unfavourable results of the privatization would be accomplished is not true. Telecommunications, along with a

Financial and business accomplishments of the company represent a good starting point for structuring the entire transaction few other areas, have only slightly been hit by the negative effects of the crisis, and thus, one could expect a significant rivalry among bidders during the planned privatization transaction. Favourable to this estimation is the fact that even before the tender was made public, at least three major companies confirmed their participation in the privatization. The quality of corporate management in state-owned companies is currently at an extremely low level. Unfortunately, management is not selected through international competitions, and the influence of political parties is still dominant. Discontinuities in management are quite frequent, which correlates to political shifts of power. There is a latent tendency

towards transferring a part of the social burden, which is a responsibility of the executive branch of government, to state-owned companies. This results in, for example, the fact that the price policy does not reflect economic reality, which altogether in the long term, devastates business and property. Under such conditions, public interest is not protected according to required standards. Telekom is an exception, but despite this, one could certainly await management changes, provided that the next elections bring upon a shift in the political power structure. Thus, the standards of quality management could be implemented only if they are founded on principles of private property, or on the ownership of a multinational company.

Miodrag Zec, economy professor at the Belgrade Faculty of Philosophy

WHY IS THE STATE RECANTING SAFE INCOME?

money as they want to. This is an issue that can be easily resolved. he joy lies in buying and expanding, and not in selling property. They say, “We have no money for expansion.” Have we even tried Lesson number one in economy is: “I am going to sell assets. I to find the money? If we can’t get a loan, let’s try the next option. am not getting a satisfactory return and if I have a chance to turn it inSerbian citizens have 5 billion euros in savings. We could try the folto something else that will bring me better and safer revenue, I will.” lowing: Give each citizen a chance to buy Telekom’s corporate bonds Could we say that what we have now is insufficient revenue? Telekom for certain projects, and see whether they are gois such a wondrous apparatus that we haven’t The joy lies in buying ing to sell. Have we tried that? No, we have not. managed to pull apart so far because of the nature of its business. This is the reply to the quesand expanding, and not Have we, as a society, given an opportunity to the people who save to invest their money? What can tion whether we should sell the company or not. in selling property they invest in, aside from opening a café bar? The second question is “Why sell it now?” The argument in favour of selling Telekom They say, “Well, we don’t know how to manage it is that the company is worth the most now. Nobody is going to buy properly.” I agree, you should not manage it in a typically corporate way. Telekom for what it is today, but rather what it could be in the future. Let me dispense some free advice to the government. If corporate manThe price at which the company is going to be sold should depend on agement is not the way to go, you ought to launch an international comprojected future revenue. petition, bring in the best team in the world, and let them give as much CorD 71 / May 2010 29

ECONOMY |

The third question about the sale of Telekom is, “What are we going to spend the money from the sale on?” Many argue that it is not advisable to keep the money in a fund. It’s like mother keeping a cake in the fridge, while children are hungry. They say, “We are going to spend it on building roads.” I know one thing for sure – there are non-profit projects that make sense to implement, that improve the overall environment and they are Corridor 10, the Belgrade bypass, and bridges across the river Sava. All of these issues are important, but let’s get back to the strategy. We are withdrawing from

one business sector – telecommunications, and this is the sector of the future, of the 21st century. We want to become more active in automobile manufacturing, but that is a business more suited to the early or mid-20th century. We are salvaging privatized companies, giving money and development loans to the Paraćin glass factory that produces jars and beer bottles. Is the state embarking on a business or withdrawing from it? Our state is withdrawing from a highly profitable business, and investing money into a profitless one. I really don’t know why the state is doing that and I am wondering if there is any order to this craziness.

Aleksandra Smiljanic, professor at Belgrade University

ANOTHER MAJOR MISTAKE

strongly believe that the selling of Telekom would be another major mistake of the Serbian transition. The reasons are many. First, Telekom holds the complete Serbian telecommunication infrastructure that has been developed for many decades. This infrastructure is essential for the proper functioning of Serbia. It connects almost all citizens, companies, government institutions, healthcare, military, police... The government can influence in the best possible way prices of telecommunication services, and further develop infrastructure if it owns Telekom. Second, because of the investments that they require and their nature, telecommunication markets are

Telekom Srbija should remain Serbian, because it is the only way to provide the telecommunication services properly to the people of Serbia, and to grow Serbia’s ICT industry effectively typically not liberal to a great extent. Usually there are few operators who own the complete infrastructures. For this reason, telecommunication services are profitable by rule. Telekom Serbia is a profitable company, and its valuable profit goes mainly to the Serbian budget. Finally, the total revenue of Telekom Serbia is around 1 billion euros. By selling Telekom 30 CorD 71 / May 2010

Serbia, our government will waive forever the possibility to support Serbian industry through Telekom that will buy the equipment, software, and services from local vendors. If Telekom is sold, I can see only very negative consequences. First, since Telekom has a monopoly over the fixed network infrastructure, the buyer will be able to raise prices, offer low quality services, and fire employees. Unlike an irresponsible government, such an owner cannot be voted out in the next democratic elections. One would argue that the regulatory agency would control the monopoly or dominant operator, but it is not a realistic assumption. Resolving all kinds of possible monopolistic behaviors through international courts is not an option for a poor country like Serbia. We are already witnessing that phone subscriptions were raised four times within the last year, amounting to about 5 euros now. It appears that such a price increase is some kind of deal with potential Telekom buyers since similar scenarios have happened in the region. Around 10% of the people in Serbia are recognized to have incomes of less than 70 euros a month. For them, a telephone is becoming a luxury, and Serbia is not moving toward European standards, but rather backwards. Second, since Telekom could only be sold to a foreign company, its large profit will leave the country. For the same reason, Serbian companies are becoming less likely to supply Telekom with required resources, because the foreign buyer of Telekom will have its own agenda and is more likely to support the industry of its own country.

Explanations of government officials for the sale of Telekom are rather disturbing. Their major argument is that Telekom must be sold because the government is not capable to run it. This is a strange explanation because in many countries with highly developed telecommunication infrastructures, the dominant telecommunication operators are owned by the governments. Also, Telekom has been doing pretty well for decades. It is profitable, its network is growing, and its broadband penetration is rapidly increasing. It has the highest penetration of fixed lines in the region, compared to the telecommunication operators that were mistakenly sold. Further liberalization of the telecommunication market in Serbia will speed up the development of the broadband network and improve the efficiency of the state-owned Telekom. But, Telekom Srbija should remain Serbian, because it is the only way to provide the telecommunication services properly to the people of Serbia, and to grow Serbia’s ICT industry effectively.

QUOTATIONS “MPs of the Democratic Party of Serbia in the Serbian National Assembly have not seen the leader of our party, Vojislav Koštunica, in two years, but we do not have a problem with this, since our MP group functions just fine even without him. I feel that Koštunica should have participated in the talks with Cvetković yesterday, but I am an individual, and besides, there is no way for me to know what he thinks. I said I have no problem with telling anything to him, straight to his face. But, when I see him...” Dragan Šormaz, MP in the Serbian National Assembly

The Serbian economy has great structural problems, a deficit, pressure of all forms of debts, and a government which is good and stable but not quite unified, with very different interests, so things will not be easy for the new governor.” Dejan Erić, Director of the Institute of Economic Sciences

It is not realistic to expect to have politicians who served as drug mules, but it is very realistic to expect that certain holders of political functions or representatives of certain political parties be subject to financial investigation. This is a classic act of corruption, or money laundering.” Slobodan Homen, State Secretary in the Ministry of Justice

If the requirement for Serbia to join the EU is membership in NATO, then ‘Jedinstvena Srbija’ is for Serbia becoming part of NATO, provided that our army does not go to Iraq, lead war against any nation,

but maybe, in the case of necessity, to participate in some peace missions.” Dragan Marković Palma, President of ‘Jedinstvena Srbija’

We could not express an opinion, or better said, we expressed an opinion that we had no opinion on the final budget accounts for 2008.” Radoslav Sretenović, President of the State Audit Institution

Premature elections would not contribute to the stabilization of circumstances in the country. The present situation is a stimulant for the Government to keep working intensively on the realization of the set goals. The Government takes all suggestions seriously and is open to consultations with representatives of the opposing parties to improve the situation in society and economy in the country.” Mirko Cvetković, Prime Minister of Serbia

If construction sites are not opened soon, we will replace the people working on issuing the necessary permits because they either won’t or don’t know how to work.” Oliver Dulić, Minister for Environmental and Spatial Planning

The answer to the crisis that struck the West Balkans should be mutual regional plans.” Boris Tadić, President of Serbia

The extent to which things in the region have changed for the better is maybe best shown by the fact that Croatia and Serbia, for the first time in two decades, without the international commu-

nity as the middleman, are looking for a solution to the problem bears upon all of us- retreating the indictments.” Božidar Đelić, Vice-President of the Serbian Government

We are looking for an actual regionalization, and not a statistic one, which is nothing but a fraud and a great con so that the central Belgrade parties and funds could acquire large sums of money which should be given to us as an encouragement for the development of Serbia, south of Bubanj Potok.” Vuk Drašković, President of ‘Srpski Pokret Obnove’ (SPO)

I will suggest that a breath test be introduced in the Assembly and those who do not pass the test will not be allowed to attend sessions.” Suzana Grubješić, President of G17 Plus MP group in the National Assembly of Serbia

Serbia has a relationship with NATO via its Partnership for Peace programme in which it has actively participated so far, and we hope

that it will seek extra opportunities for cooperation. When it comes to Russia, it also has a relationship with NATO. Over there, we are looking for ways to reinforce our cooperation through the NATO- Russia Council. Lately, there have been some important steps in that cooperation, regarding Afghanistan, fighting terrorism, and other challenges.” Mary Warlick, US Ambassador in Belgrade

It is true that one million signatures is an impressive figure, but it is also one-half of the number of votes Tomislav Nikolić alone won at the presidential elections. The opposition is also aware of that and that is why they are resorting to uncivilized methods in their approach, and cursing and threats are demonstrations of impotence!” Dragan Šutanovac, Minister of Defence of Serbia

I do not expect the scheduling of premature elections. The ruling majority is unanimous that the trigger for elections will not be one million signatures of citizens for the elections, raised by the opposition.” Tomislav Nikolić, President of ‘Srpska Napredna Stranka’ (SNS)

DESTINY IN A CUP OF COFFEE

No matter how busy they are with state and party obligations, ministers and highest officials of the Socialist party of Serbia (SPS) mark each Tuesday in red in their agendas. It is a reminder for an unusual ritual they have been nurturing since the founding of the Government. On that day, all of their ministers, the Chairperson of the National Assembly Slavica Đukić- Dejanović, Prsident of the

Executive Board Branko Ružić gather in the cabinet of their party boss Ivica Dačić. They usually meet around 10 o’clock, and the ‘menu’ is always the same, humble, black coffee. After they ‘turn over the cups’ and read their fate in the grounds, they consult with their leader over their future assignments. That is why they brag they are the only party with ‘VIP flying sessions.’” ‘Večernje novosti’ CorD 71 / May 2010 31

CORPORATE |

Zdenko Lekan, CEO Konsing Group

CONTROL OF NON-IO “Konsing Laboratory is the only laboratory fully equipped for all standards required by current legal regulations,” said Lekan. tenance of a significant number of base stations, which is our company’s primary field. On the other hand, in our country there is a very widespread unjustified fear, or maybe misconception, that those base stations ‘radiate’ and that they are harmful to one’s health. International organizations for protection from non-ionizing radiation have set standards which clearly define allowed levels of electromagnetic field, and which were introduced to our laws last year. Wanting to provide a full, quality, and transparent service to citizens and to any interested parties, as well as to substantially contribute to saving and improving the environment, in December 2009 we successfully accredited Konsing Laboratory with the Accrediting Agency of Serbia. It is competent for performing works on the testne of the key aims of stra- forming tests of the level of radiation of tegic business, which is be- non- ionizing radiation sources of special ing of electromagnetic fields - electromagnetic ing realized in daily life and interest in the environment. How long compatibility, testing of low-voltage electrical in ‘Konsing Group Ltd’s’ has there been a laboratory within Kons- installations, testing of low-voltage switchgear work is to do business in ing Ltd., and what is its significance for and control gear assemblies, testing lightning protection systems, testing of electrostatic beKonsing’s general business dealings? a socially responsible way,” said Zdenko havior of walls, shields and Lekan, CEO Konsing Wanting to provide a full, quality, and transparent sheets, floor coverings, and Group, in an interview installed floors, and testing with CorD magazine. service to citizens and to any interested parties, of lighting in the workplace. as well as to substantially contribute to saving and The above-mentioned solu According to resoluenabled us to substantions by the Ministry improving the environment, in December 2009 we tions tially increase the engageof Environment and ment of all available resourcSpatial Planning and successfully accredited Konsing Laboratory with es of our laboratory. Regional Secretariat the Accrediting Agency of Serbia for Environment Protection and Sustain How many such laboraable Development, it was determined that Lately, we have witnessed a growing need tories are there in Serbia? Konsing Laboratory fulfilled all the nec- for mobile phones and Internet usage, their There are many laboratories of this kind essary requirements for performing sys- being essential forms of communication any- in Serbia, but they have not been accredited. tematic tests of the level of non-ionizing where, anytime. Their growing use must be When it comes to resolutions brought by the radiation in the environment, and per- followed by design, construction, and main- Ministry for the Environment and Spatial

32 CorD 71 / May 2010

ONIZING RADIATION tem and prominent contribution of all employees); risk control (risks which could be consequence of surrounding influences, mistakes, business impediments, and losses due to incidents), and maintaining respectability and position on the market.

Planning and the Regional Secretariat for Environmental Protection and Sustainable Development, there are only a few such laboratories. However, this is an opportunity to mention that Konsing Laboratory is the only one fully equipped for all the standards required by current legal regulations. Regarding the laboratory, what are your future plans? Our investment plan for next year includes, among other things, further development of Konsing Laboratory. The area of development is electromagnetic compatibility, specifically testing products according to CISPR standards (The Comité International Special des Perturbations Radioelectriques). According to these standards’ specific demands, we set aside substantial funds to purchase of a test ground and all the needed equipment, as well as for specific personnel training. We expect to finish all activities regarding further development, including the accreditation for the mentioned area, by the end of this year. The integrated application of the ‘Konsing Group Ltd.’ management systems is fully based on social responsibility principles. To what extent do you pay attention to social responsibility in your company? One of the key aims of strategic business which is being realized in everyday life and in ‘Konsing Group Ltd.’ company work is doing business in a socially responsible way. This means that the integrated application and continual improvement of the certified quality management system (ISO 9001:2008), environmental management system (ISO 14001:2004), and occupational health and safety management system (OHSAS 18001:2007) are oriented towards fulfillment of demands set by users, the company, and the entire society. The company’s management, together with all its employees, their families, and the local community, is trying to contribute to the sustainable social and economic development with the aim of improving quality of life. This contribu-

International organizations for protection from nonionizing radiation have set standards which clearly define allowed levels of electromagnetic field, and which were introduced to our laws last year tion is made in three key areas: productivity, social area, and environment protection. What are the advantages of integrated managerial system in your case? Our business need for an integrated application of above-mentioned management systems is based on demands made by our users and other interested parties, on principles proclaimed in our own business policy, on financial savings in process efficiency, on satisfying legal and other demands, and on realizing some other business gains, e.g. ‘always one step ahead of the others.’ ‘Konsing Group Ltd.’ recognizes the following benefits from the integrated application of the management systems: material benefit (avoiding system requests repetition); business benefit (knowledge related to changes and their influence on quality, environment, health and safety of employees and others); managerial benefit (unique management of the entire business system); strategic benefit (unique management sys-

What are ‘Konsing Group Ltd’s’ plans for 2010 and the following year? The ever-present global economic crisis has not avoided us, especially in the area of our primary field-- design, construction, and maintenance of radio- telecommunication systems, where we mostly depend on development and investment policies of present mobile phone operators. That is why we were forced to alter our development strategy. In 2010 we plan to develop intensively and offer two new programmes through newly-founded sectors: • Provide services in the area of informational and communication technologies (ICT), based on products and solutions of the world’s most famous IT equipment makers (Internet providing, virtual private networks- VPN, IP technologies, IP video surveillance, information systems and software development, IT systems maintenance packages- basic, extended and constant support, renting Cisco equipment and computer renting)- Konsing Net, and • Build up our own infrastructure and rent it to mobile phone operators- Konsing Network. We plan to separate the aforementioned sectors into two new daughter companies next year, which would create conditions for the company’s redistribution of gross incomes- at least 50% of incomes are planned to be gained out of new service development, and the rest out of development and maintenance of networks of present mobile phone operators. In this way, we wish to reduce the risk factors of reducing the company’s gross income, which are result of substantial cuts or complete shutdown of investments of single or all interested mobile phone operators, which was the case last year. CorD 71 / May 2010 33

ANALYSE |

Managing public enterprises

IS THERE A PILO It’s been over six years since the introduction of practices that party leaders are the best solution for managing public enterprises.The ﬁrst major division of functions in public companies based on political afﬁliations was completed in 2004. Six years of experience shows that apart from Telecom and a few other small companies, the majority of public enterprises have had no luck in forming their management

34 CorD 71 / May 2010

OT ON BOARD? By CorD Team n this respect, it seems that JAT Airways has been dealt the worst card of all. The company’s current loss stands at 15,636,443,315.00 dinars or over 173.7 million euros. In 2009 alone, the company generated a loss of 26 million euros. Since 2000, state authorities have appointed and replaced seven Chief Executive Officers (CEO) in the national airline, three Managing Board Chairmen, and three ministers who had been “assuming responsibilities” for one of the most complex business sectors in Serbia – civil aviation. In the period from 2004 until today, JAT Airways has had four CEOs, three Managing Board Chairmen, and three ministers running it. Out of the aforementioned four CEOs, only Aleksandar Vlaisavljević was more or less qualified to run an airline, since he had previously worked in JAT’s traffic centre. In this issue, CorD gives an overview of the company’s current situation and the strategy that downgraded JAT to its present financial and organizational level.

2004 ● Minister in Charge: Velimir Ilić, Minister for Capital Investments (Nova Srbija party - NS) ● Chairman of the Managing Board: Miloš Aligrudić (Democratic Party of Serbia - DSS) ● Chief Executive Officer: Aleksandar Milutinović (Serbian Renewal Movement - SPO) – from March 25, 2004 to February 18th, 2005. Aleksandar Milutinović is now retired. When he took over the company, his first statement was “The political party of which I am a member, i.e. the Serbian Renewal Movement (SPO), was allocated the position of CEO of JAT Airways in line with the coa-

lition agreement. My party chose me to be at the company’s helm and I am eternally grateful for that. It is simply not true that SPO ‘occupied’ top positions in the company. If we are talking about SPO members, there is

Podgorica back to Belgrade. During his short term, Milutinović managed to ‘finalize’ negotiations with Boeing about ‘purchasing’ eight 737-800s and leasing two Boeing 767 for transatlantic flights.

“The political party of which I am a member (SPO) was allocated the position of CEO of JAT Airways in line with the coalition agreement. My party chose me to be at the company’s helm and I am eternally grateful for that”- Aleksandar Milutinović 2004 me, as the CEO, one of the four executive directors comes from my party, and there is my deputy.” The strategy devised by the company’s executives was simple and rather abstruse. “In the upcoming period, JAT aims at maintaining its regional activities,” which translated means that a plane would pick up passengers in Belgrade, take them to Niš, from there to Timisoara, from Timisoara to Sofia, from Sofia to Skopje, from Skopje to Tirana, from Tirana to Podgorica, and from

Luckily, these negotiations never materialized. In any case, the director was quoted as saying that such ambitious plans could lead to “JAT joining the EU before Serbia.” However, the situation developed in a completely different direction. On February 15th, 2005, only eight months after Milutinović had been replaced, the Serbian government stated that following “the skirmishes that led to the biggest crisis in the history of Serbian civil aviation,” it would take full responsiCorD 71 / May 2010 35

ANALYSE |

In the spring 2005, JAT’s employees staged the biggest and the longest strike in the history of the company, following JAT Tehnika’s and JAT Airways’ division into two companies. The negative financial consequences of this careless division are still felt today bility for the national airline. Minister of Capital Investments Velimir Ilić announced that the government would appoint an interim receiver in JAT Airways, with precise duties, a limited term in office, and the widest possible authority.

2005 ● Minister in Charge: Velimir Ilić, Minister for Capital Investments (Nova Srbija party - NS) ● Chairman of the Managing Board: Miloš Aligrudić (Democratic Party of Serbia - DSS) ● Chief Executive Officer: Nebojša Starčević (Serbian Renewal Movement - SPO) from February 18th, 2005 to October 31st, 2007), now Managing Director of the Serbian Civil Aviation Directorate Immediately after his appointment, Starčević said, “Certain former executives demonstrated great arrogance by needlessly firing people without any legal basis. Responsible management doesn’t mean obstinately laying off workers, but rather managing the company with its best interests in mind.” Not long after, in September 2005, Starčević said, “JAT Airways currently employs 1,500 people, and the optimum number of employees should be close to 800.” Starčević also continued perpetuating old promises. “JAT will not give up the idea of establishing transatlantic flights with the U.S. and Canada, although we still don’t have ‘category one’ requirements for such flights.” At a later press conference, he said, “JAT meets all technical prerequisites for establishing transatlantic flights and the company has enough money to lease a plane solely for that purpose. However, the problem lies with the Civil Aviation Directorate, which for the past four years hasn’t been able to carry out the re-categorization of our country.” During his term, Starčević talked a lot about the Directorate, of which he was sub36 CorD 71 / May 2010

sequently appointed director after he “took responsibility” of the situation in JAT. On December 8th, 2008, as JAT’s CEO, he stated, “As far as we know, several European low-cost companies want to establish flights to Belgrade in the autumn and winter. In reviewing their requests, our civil aviation authorities are considering such initiatives in light of the European integration process. This doesn’t mean that we are automatically going to say ‘yes’ to their requests.” On February 3rd, 2010, as director of the Civil Aviation Directorate, Starčević said, “Our country’s policy is to open our skies and respond positively to all requests for issuing licenses to airlines that meet the criteria. In the following 10 to 15 days, we expect to receive a substantial number of requests for establishing summer flights, since now is the time to do that. Every airline that fulfills the relevant criteria will be given permits.” With regard to JAT’s business results, in December 2005, Starčević said, “The company’s (JAT) business plan for this year envisages an end-of-year loss in the amount of 16 or 17 million euros.” It should be mentioned that in the spring 2005, JAT’s employees staged the biggest and the longest strike in the history of the company, following JAT Tehnika’s and JAT Airways’ division into two companies. The negative financial consequences of this careless division are still felt today.

2007 ● Minister in Charge: Velimir Ilić, Minister for Capital Investments (Nova Srbija party - NS) ● As of 2008: Milutin Mrkonjić, Minister for Capital Investments (Socialist Party of Serbia - SPS), as of 2008 ● Managing Board Chairman: Miloš Aligrudić (Democratic Party of Serbia) ● Chief Executive Officer: Aleksandar Vlaisavljević (Democratic Party - DS) – from October 31st, 2007 to June 30th, 2009) A month after his resigna-

JAT inflight service tion as CEO of JAT, Vlaisavljević was appointed acting Chairman of the Managing Board, while at the same time holding the function of manager of the City of Belgrade (for three weeks). After he resigned, he became one of the vice-presidents of the Serbian Chamber of Commerce in charge of marketing and PR and chairman of JAT’s Managing Board. In November 2007, following his appointment to JAT, he said, “Judging by everything that has happened so far, 2007 will the most successful year that the company has had in the last seventeen years. By the end of this year, we will have flown over 1.3 million passengers and we expect to become the regional leader.” At a press conference February 4th, 2008, Vlaisavljević informed the public that the 2007 business results were better than expected and that the company managed “to record a profit of 3.75 million euros (300 million dinars) or 100 million dinars more than planned.” Saša Vlaisavljević also confirmed that “in 2007, JAT Airways flew a total of 1,306,301 passengers, i.e. 100,000 passengers more than in 2006, which is an 8% increase.” He added “it was the best business result that JAT has accomplished in the past 17 years.” What he failed to mention is that in 2007, following a ruling by the International Arbitration Court in Paris, JAT had been reimbursed 14 million euros as a result of court proceedings that were insti-

gated back in 2000. This was extraordinary revenue, but the real business results in 2007 showed that the company actually recorded a loss of around 10 million euros. “We expect the company to be privatised as soon as possible, and it is in our best interest for that to happen in the spring of 2008, i.e. before the summer and before implementation of the Open Skies Agreement, in order for the company to get new investments to purchase planes. The privatisation strategy will have been written by the end of January and the government is probably going to adopt it by the end of March,” Vlaisavljević pointed out and added that the privatisation

“By the end of 2007, we will have flown over 1.3 million passengers and we expect to become the regional leader.” – Aleksandar Vlaisavljevic advisor and the Privatisation Agency were holding consultations about the strategy. Following a government decision on September 7th, 2007, a consortium of companies, with Rothschild Investment Bank and Citadel at its helm, was picked as privatisation advisor, since it had submitted a better bid than BNP Paribas. The government an-

ticipated selling a 41% share in JAT, with the possibility of upping the share to 70%. The privatisation advisor’s fee was over a million euros, and not a single company expressed interest in acquiring a share in JAT by the official deadline of September 26th, 2007. Prior to the aforementioned privatisation strategy, two other similar strategies had been written. The first was written by the US company AFC and cost $500,000 (paid from a donation from the Norwegian government), and the second by PricewaterhouseCoopers, which also cost several hundred thousand US dollars. JAT’s new CEO, Srđan Radovanović, described his predecessor’s managing of the company as follows: “Last year, JAT’s business loss stood at 29 million euros. When you add to this figure the company’s financial loss, you get the fantastic figure of 80 million euros. Out of 16 air planes, 5 are ‘dormant’ and two are ‘cannibalized,’ so to speak, i.e. stripped of their parts. We don’t know when these planes are going to be able to take off.”

2009 ● Ministar in Charge: Milutin Mrkonjic, Minister for Capital Investments (Socialist Party of Serbia - SPS), ● Managing Board Chairman: Aleksandar Vlaisavljević (Democratic Party - DS) ● Chief Executive Officer: Srđan Radovanović (Democratic Party - DS), since July 2nd, 2009 A lawyer by vocation, Srđan Radovanović’s first job was in the Internal Affairs Secretariat in Belgrade, followed by a management position in Grand Kafa and Droga Kolinska. He was also a member of the Board of Directors in Soko Štark and Chairman of the Managing Board in Palanački Kiseljak. Following his appointment as CEO of JAT, Radovanović stated that “My task is to generate profit,” followed by “JAT’s organizational structure is obsolete. Such an oldfashioned system cannot deal with modern market conditions and be successful. What we can say now that it is highly likely that this year’s loss will be lower than the 2008 one of 29 million euros.” In order to improve its business results,

JAT decided to go for a marketing strategy never before implemented by any airline: to offer free health insurance for all passengers who fly from Serbia to an EU country. The airline also offers free shuttle service in Belgrade. Both of these campaigns are additionally depleting the company’s poor ticket sales revenues by 2 million euros annually. JAT’s loss in 2009 was close to 27 million euros.

Epilogue On April 20th, 2010, Politika published the new idea for the Serbian Government to register a new air company, which would take “all that is good” from JAT, and that the state would pay JAT’s debts to its creditors. The minimal founding deposit in the new company, which would be paid by the Government, is $400,000, and strategic partners would have the obligation to finish capitalization of the new company and to invest money in it. At the same time, the Serbian Government will invite tenders for a consultant (the third in a row in the last five years- editor’s note) who would finish the job according to the so called “Greek model.” Miodrag Miljković, State Secretary at the Ministry of Infrastructure, explains what the “goods things” from JAT will be transferred to the new company: “Property, the fleet, and some of the employees will be transferred to the new company. Most likely, the state will not have the majority of shares package in its possession.” Nowadays, JAT has a total loss of RSD 15,636,443,315.00 and its management is currently requesting an extra loan of €40 million from the Government. JAT has 15 planes more than 20 years old, of which only eight fly. In addition JAT is about to enter its period of regular engine repairs, which will cost them several million of euros more.

Conclusion Srđan Radovanović, CEO of ‘JAT Airways,’ stated in the middle of April that “JAT has not lost its market, and the appearance of low-budget air-companies has not jeopardized the company’s privatization. That is healthy rivalry with which JAT has dealt rather successfully and I am convinced that we could continue to fight successfully for our position in the market!” CorD 71 / May 2010 37

LEADERS

PARTY- COLOURED SEATS In Serbia, it is quite usual that the parties in power appoint exclusively their own personnel as directors of public companies and to key positions in state administration. As long as there are opposition parties, this practice criticized, but as soon as they come to power, they follow in the footsteps of their predecessors. Thus, CorD asked some of the leading experts in the country this question:

Can Serbia find its way out of the crisis if it relies exclusively on the expertise and knowledge of a single party or coalition? Rade Pribićević, Corporate and Regulatory Affairs Director, Danube Foods Group DANGER OF ENTERING DEBT CRISIS The question of Serbia’s emergence from the crisis is not a question of the skills of a party, an individual, or an institution. Serbia is in a deep economic, structural, and political crisis, which is a consequence of wrong decisions, as well as the decisions that failed to be made during the last 10 years. Serbia was struck by the global economic crisis last year, and so, all the instruments for defense against the crisis were and remained limited insofar as one could influence global trends with local means; in other words, very limited. In addition to this global misfortune, we will also deal with the crisis caused by a mixture of both global and local reasons this year. In my opinion, local causes of the crisis are a bigger problem than global ones. By this one refers to the non-finalized transition process, foreign trade deficit, budget deficit, weak and non-competitive economy, high unemployment rate, vast corruption problem, plus the fact that we wrongly spent substantial extraordinary monetary means that came to Serbia in the last 10 years onto patching holes in the state budget, instead of investing them into infrastructure development. We will not have any more of those extraordinary means because there is nothing left to sell, which brings us to the real danger of entering a debt crisis. If all of this is taken into consideration, it is clear that we need all the sense we have got to survive, regardless of who holds the power or who opposes it. Not even then is it certain what the future holds for us, knowing that there are factors we cannot influence, and knowing that our mechanism of establishing consensus on any matter, be it crucial and existential or not, is rather feeble.

In my opinion, local causes of the crisis are a bigger problem than global ones 38 CorD 71 / May 2010

Slobodan Šoškić, lawyer EGOTISTICAL ATTITUDE OF POLITICIANS The reason for Serbia’s current crisis lies in the egotistical attitude of its politicians who are of the opinion that the political parties they belong to are fully capable of independently running the country. The politicians’ conscience functions with the sole purpose of satisfying their personal interests. They believe that none of their party colleagues have the same qualities as they do, i.e. expertise and knowledge needed to execute power. Of course that they are not mistaken when it comes to expertise and know-how. They know very well that they don’t want people who possess such qualities near them, since they would jeopardize their work, which is geared towards satisfying their personal needs. Expertise and know-how are contrary to selfish interests and are aimed at fulfilling the general needs of one country and its society, hence the suspicion towards people who are knowledgeable and professional. Since Serbia is engulfed in a deep social crisis, its value system is completely destroyed, which means that knowledge and professionalism are not treated as important social values. Individuals with other kinds of personal characteristics are in demand now, and these individuals have nothing in common with know-how or professionalism. This is because life in our country is tailored to suit the politicians’ needs and their acquisition of political and material power. Serbia has failed to set up respected institutions, which in turn would entail paying special consideration to professionalism and knowledge. Through print and electronic media, the public’s attention is being diverted from the actual causes of the society’s current situation, while at the same time the public is encouraged to form a wrong perception of what their true personal and social needs are. This has all been done by political parties, and if quite a few of these parties are orientated towards encouraging such public behavior, that will always be a diminished criticism of their work. However, what is really surprising is how knowledgeable and profes-

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Serbia has failed to set up respected institutions, which in turn would entail paying special consideration to professionalism and knowledge Prof. Dr. Mihailo Crnobrnja, Dean of the Faculty of Economy, Finance, and Administration THE GOVERNMENT ALWAYS CARRIES THE BIGGEST BURDEN The shortest reply to this question is: It could be. But the problem is such that no short answer would suffice. First of all, we need to consider that in other countries with a democratic political system it is the political party (or parties) in power that bears the biggest burden, and that seldom, if at all, can we see opposition parties sharing the burden of responsibility in the crisis. Actually, the moment you include the opposition into a decision-making process, you create, officially or unofficially, “a great national coalition,” which means that all parties are in power, albeit not formally. Second, the opposition is trying to weaken “the position” during the crisis in an effort to come to power. It is not realistic to expect that all this available knowledge in the country will unite and work together towards overcoming the crisis. Third, the way out of a crisis is usually found in a combination of “political intelligence,” i.e. a political party or a coalition in power, on one hand, and institutions that specialize in economic and other research relevant to finding the way out of

Dejan Šoškić nominated for next Governor of the NBS Dejan Šoškić, a reader at the Faculty of Economy in Belgrade and Chairman of the Council of the National Bank of Serbia (NBS), has been nominated for next Governor of the NBS, Prime Minister Mirko Cvetković said. Šoškić was born in 1967 in Belgrade, where he graduated from the Faculty of Economy in 1989 as the top student of his generation, and later earned his doctoral degree at the same faculty in 1999. He taught the following subjects: financial markets and institutions, financial management, and international business and economy for bachelors’ and doctoral studies at the University of Nebraska in Omaha. In 2002, he was a visiting professor at universities in New Haven, Rhode Island and Berkley, California. During his specialization in the area of financial markets, he was in the USA three times (1994, 1998, and 2002) and in the Swiss Central Bank. He was a Fulbright

It is not realistic to expect that all this available knowledge in the country will unite and work together towards overcoming the crisis the crisis, on the other. We need to add to this a third element, made up of an international environment and international institutions that are offering possible solutions. In my opinion, all of this is applicable to Serbia too. The search for the solution so far has been mainly done by the parties that make up the ruling coalition and research institutions that are close to them. It is difficult to discern whether offered solutions are good or bad, since in economy there is no such thing as a controlled experiment or the possibility of repeating solutions only with different parameters. The ruling coalition could certainly benefit from the opposition parties, whether jointly or individually, not offering a comprehensive programme that would serve as an alternative to the anti-crisis strategy. All in all, it all boils down to the usual political criticism of the government, without offering a true alternative. CorD 71 / May 2010 39

APPOITMENTS

sional people are behaving. They have withdrawn from the public life, feeling pretty helpless and failing to react in line with their possibilities. At the same time, there is this group of intellectuals, who, albeit professional and insightful, have put themselves in the service of political parties that rob them of their critical attitude towards social reality. Such a situation will not lead to recovery and the way out of the crisis.

APPOITMENTS

EACH MONTH,, CORD KEEPS YOU UP TO DATE WITH THE MOST IMPORTANT CHANGES AT THE TOP OF BUSINESS,, POLITICS AND DIPLOMACY IN SERBIA

scholar. He is the author of several expert papers, mostly on securities. He was special advisor for financial markets in the National Bank of Yugoslavia (end of 2000- 2002), advisor for economic policy in the EU Advisory Centre for Economic and Legal Matters (2002- 2003), and a member of the NBS Council (2003-2004).

Slavimir Stojanović new Art Director of Communis DDB Team Slavimir Stojanović is one of Belgrade’s most famous designers. He is considered meritorious for raising standards not only in Serbia, but also in the entire Eastern and Central Europe. He started his designing career as art director of the S Team Bates Saatchi & Saatchi. He is the author of the B92 radio station’s logo, for which he was twice awarded the MTV Free Your Mind award. He is the laureate of over 200 international awards and prizes. Communis network exists in Belgrade, Sarajevo, Skopje, and Sofia, and Communis became part of the world’s largest marketing network on January 1st, 2010.

Danilo Drobnjak new Public Policy, Government Affairs and Communications Manager for West Balkans The PepsiCo Company announced that Danilo Drobnjak has taken over the position of Public Policy,

Government

Affairs

and

Communications Manager for the West Balkans of this company on January 1st,2010. Danilo Drobnjak earned a master’s degree in economy at La Sapienza University in Rome, and started his career as a financial adviser in the Embassy of the Republic of Korea. After that, until 2009, he worked in the consulting company Mmd Corporate, Public Affairs Public Relations Consultants, as deputy director for Serbia and as public relations manager in the public institutions department. Within the PepsiCo Company, Drobnjak will be in charge of development and implementation of communication strategies, all with the aim of reinforcing corporate identity and public relations, and of development of communication programmes in crisis situations for the West Balkans.

40 CorD 71 / May 2010

LEADERS Nenad Vuković, Chairman of Henkel Serbia THE LACK OF EXPERTS IN THE ENTIRE REGION The year behind us was marked by the economic crisis, which significantly influenced business dealings in Serbia. In global terms, experts mention that this has been the biggest crisis of the capitalistic system since World War II. Taking into consideration factors which influence the dealings of an external company, it is by all means necessary to single out political and macroeconomic stability, which are the two key prerequisites of successful business. The lack of experts might be most prominent in the time of the crisis. However, it is not an exclusively Serbian problem, for a similar problem is to be found throughout the region. On its way towards the European Union, Serbia needs experts who, apart from their knowledge, also possess leadership abilities and the ability to motivate people, with the aim of scoring better results. One of the hardest tasks was the selection of experts with a suitable profile for a given position. The question of political background should be secondary. I believe that the well-being of our citizens and a better life in Serbia in general, is a priority for any individual who holds an important office.

On its way towards the European Union, Serbia needs experts who, apart from their knowledge, also possess leadership abilities and the ability to motivate people, with the aim of scoring better results. Here in Henkel, during the last year, we took a clear stand. We want to emerge stronger from this crisis. That is the reason the previous year was far less turbulent for us than for the rest of the economy, since we have adopted a winner’s attitude and culture which only make us stronger in challenges like these. I think that our strategy of investment into employees, their knowledge and motivation, has rewarded us with some good results. We have created a winning expert team comprised of managers who know how to organize and lead an inventive organization, and to manage people in conditions of developed informational infrastructure and global market. The best confirmations of my words are certainly the results of Henkel in 2009 when, despite the global economic crisis, we scored some good results. On a global level, the Henkel Company in the last fiscal year reported €13.573 billion worth of sales, while operative profit increased by 38.6% from €779 million to €1.364 billion. Henkel in Serbia achieved a considerable growth of incomes of 12.7%, and a market of over 18 countries was supplied from production halls in Kruševac and Inđija. It is our plan for this year to achieve a global growth of corrected operative profit (EBIT), as well as a return per preferential share (EPS) of over 10%, compared to 2009.

CorD 71 / May 2010 41

CHILL OUT WORLD’S MOST EXPENSIVE CAR Bugatti Veyron $1,700,000. This is by far the most expensive street legal car available on the market today. It is the fastest accelerating car reaching 0-60 in 2.6 seconds. It claims to be the fastest car with a top speed of 253 mph+. However, the title for the fastest car goes to the SSC Ultimate Aero which exceed 253 mph pushing this car to 2nd place for the fastest car.

... AND MOST EXPENSIVE PHONE iPhone 3GS Supreme Rose, Uniquely Designed and Crafted by Stuart Hughes is the world’s most expensive phone. The 3GS Supreme Rose has been commissioned from the Goldstriker team at a price of £1.93 million (€2,1 million) which beats the previous luxury version by a further £10,000 (€12,000)

007 AT MARIE-ANTOINETTE PALACE Environmental terrorists rampage through the palace once home to Marie-Antoinette before making their escape past gardens designed on the orders of Louis XIV, the Sun King. It can only be a job for Bond. James Bond. That, at least, is the hope of Parisian civil servants who have written a storyline for 007 centred on Versailles, hoping to persuade producers of the next Bond film to set a scene or two in the 17th-century château.

GORILLAS Gorillas in Central Africa are in danger from illegal logging, mining and from hunters killing great apes for meat, says a new report from the United Nations and Interpol. In 2002 it was estimated that only 10 per cent of gorillas would remain by 2030. 42 CorD 71 / May 2010

CHILL OUT NEW COACH CABINS In a bid to turn long-haul international travel on its head, Air New Zealand revealed a freshly outfitted Boeing 777, designed by Recaro. The world-class coach area includes 11 rows of Skycouches that can actually fold flat in order to create beds for two. The “third seat” in the row will only cost a couple 50 percent of what it normally would, making it somewhat more affordable to buy a bed without springing for first class.

THE ITELMENS - RUSSIAN INDIANS Itelmens are a small ethnic group, who are original inhabitants of the Kamchatka peninsula. Their population today is about 1500. Their name is indeed a Russian-adapted pronunciation of the ethnically correct “itenman” which means “existing” or “living here”. A number of anthropological studies revealed that the Itelmens’ closest genetic relatives are Indians of the Tlingit tribe resident in Alaska, Itelmens have a lot of in common with the other famous Indian tribe of Navajo.

DONER KEBAB GERMANY’S FAVORITE FAST FOOD Forget about bratwurst, currywurst and other kinds of sausages — Turkish doner kebab, or shawarma, has overtaken traditional German fast food as the country’s favorite snack on the go. First brought to Berlin by Turkish immigrants in the 1970s, the grilled meat snack that comes wrapped in a pita bread with shredded lettuce, tomatoes, onions and different dressings, is now being sold everywhere in Germany from the Baltic Sea to the Bavarian Alps.

CHINESE PAINTING SOLD FOR 3 MILLION New Sotheby’s a record was set for a Classical Chinese painting sold in the US when Bada Shanren’s “Two Mynas on a Rock” from 1692 sold for $2,994,500 at the Fine Chinese Ceramics and Works of Art auction. “Two Mynas on a Rock” led the largest and most important selection of Classical Chinese painting offered at Sotheby’s New York for many years.

CorD 71 / May 2010 43

SOCIETY |

Serbian City Club

DEEP ROOT CONNECTION Until now, organizing the Serbian diaspora was a problem which had not been solved in the most successful way, especially when it came to serious business cooperation. Aside from the level of culture or personal connections, Serbian heritage did not show to be a cohesive factor, so the existence of the Serbian City Club in London is a positive example that merits attention

Left to right: Milos Stefanovic, Slavjana Ulph, Jelena Krzanicki, Natasa Kocis, Ivan Miletic he club was founded on the basics of business networking from its rudimentary roots conceived in the 90’s and developed into a serious platform for the return of young, smart, educated, and talented people to Serbia. Club founders Miloš Stefanović and Jelena Krzanicki, who have been living in London, UK, for years, are satisfied with today’s dealings of this club that has almost 900 members. These are young men and women who left Serbia or ex-Yugoslavia during the 90’s, and who, using the knowledge gained at home or expanded in Great Britain, have become honoured and responsible members of British corporations.

44 CorD 71 / May 2010

Where did the idea for the Serbian City Club come from? Miloš Stefanović (MS): The Serbian City Club came to life in the 90’s here in London. Those who started forming it sporadically dur-

tional name we have kept. After that first generation, which dissolved around 2000, a new generation of younger people came, and they formed Serbian City Club on stronger foundations with two ideas in 2004. One of the ideas

The Club had about 20 people in the beginning, but we kept expanding, and today we gather around 800 people, mostly concentrated in London, but we have members all over Great Britain ing the 90’s were a new kind of immigrants who bore connection primarily to the City of London financial institutions, and that is the reason why Serbian City Club is the tradi-

was networking, that is to say, a way of connecting our people in the city, and the other one was to form a club which would enable a slightly more formal relationship with Serbia

and above all, financial institutions in Serbia. By that, the accent was placed on financial institutions, banks, insurance companies, etc., and after that, the circle which gathered young professionals of all trades of economic life, not only bankers, but also engineers and academicians, became larger and larger. The Club had about 20 people in the beginning, but we kept expanding, and today we gather around 800 people, mostly concentrated in London, but we have members all over Great Britain. Considering the fact that London is the meeting point of most young intellectuals, the network started in London expanded globally, including Serbia, so some of our members already have returned to Serbia and the Balkans. How is the Club organized? Jelena Krzanicki (JK): The five of us who have been members since 2000, and now there are also Nataša Kočiš, Ivan Miletić, and Slavjana Ulf, run the club and now we have over 800 members. What we organize in London is monthly gatherings in the form of networking evenings held in the centre of London, so people can come together and exchange opinions, ideas, and business contacts more easily. On average, more than 100 members come to each of these gatherings. We also advertise over our web site, but the network expands via friendships too. Last year, we were in Belgrade several times with the aim of making business contacts with employers and ministries. The Ministry for the Diaspora is well-acquainted with us, and we had contacts with the Ministry for Science. We had excellent contacts with employers in Serbia, maybe even better than we had hoped for. We realized that there is a need for personnel from the West who have five to seven years of experience and who plan in perspective to return to Serbia. Our goal is not to take away jobs from people who are already in Serbia, but to fill the blanks which exist in Serbia and which, shall we say it, are not filled with people from the region. It is our goal to bring back people to Serbia to posts which would best fit both those people and the Serbian economy. Finding a mutual language in the Serbian diaspora has not been an easy task so far. What were the obstacles that you faced? MS: In this case, we had no obstacles, since we are a transparent organization with a clear mark that we gather young profession-

works in state services, so we did not expect too much. Thus, in the end, we were not disappointed; on the contrary, we feel that, given the circumstances, we ought to be satisfied.

City of London

We realized that there is a need for personnel from the West who have five to seven years of experience and who plan in perspective to return to Serbia als, above all things. We have seen people who joined and left and who were simply not interested in the Serbian City Club as such. However, I hope that these 800 people, the number we have today, will accept the modalities on which the SCC is functioning. If some kind of networking is our basis, then the idea is that people who gather there have something to talk about, and that those connections be real and substantial, not only on the basis of our origin and roots. The SCC is here to support the business networking, but also to allow people to communicate in their mother tongue and to feel part of that culture in London. To what extent is Serbia in tune with your activities and do you expect serious cooperation with the Serbian government? JK: So far, our experiences have been positive. We are in constant contact with the Ministry for the Diaspora. Prime Minister Cvetković was our guest during Serbian week in February, so he and the members of his cabinet are very well-acquainted with us. The problem is that so far support for our concept has been exclusively verbal, although I have to admit that we know what kind of system generally

One of your missions is to bring experts back to Serbia. How is this coming along? MS: Bringing back experts is an important factor and that is something that is developing slowly. It is not an idea we conceived yesterday or 10 years ago. It was developed slowly. I see that the Ministry for the Diaspora and some other organizations in Serbia are making concrete steps to bring those experts from the western countries to Serbia. What we feel could be our biggest contribution is our constant contact with these people. This is not empty talk but a concrete basis of people we have here. From our perspective and from direct communication with a great number of our men here in London, we draw the conclusion that most people do not want to return to Serbia, for they have no private, family, or business motives. Those who do want to come back are actively looking for jobs in Serbia or to start companies there. The third group is the most interesting for us. These are people who have work experience, fine western education, and want to return to Serbia, but simply do not have the knowledge or contacts to find a job there. This is where we, through our contacts in Serbia and arrangements in companies and institutions, can set up communication and help them return. Do you have plans for any other activities in Belgrade and Serbia in the period to come? JK: We were there in March and October of last year and we had a series of meetings in the private and public sector. I have to comment upon the great support of Mark Harrison and Harrison solicitors, who helped us organize our first official club promotion in Belgrade to be held on May 27th. The point of these gatherings is to organize meetings of our of our members returnees, whom we have 60 so far. These are the people who via our or their personal contacts secured their return to Serbia. It is our desire to connect them in Belgrade, since we think that the networking concept is underdeveloped in Serbia, although it is very useful. We want to present ourselves to employers once more in a completely new light. CorD 71 / May 2010 45

SCIENCE |

BIG BANG – ATOM SMASHER Scientists at the world’s biggest atom smasher at the European Organization for Nuclear Research (CERN) near Geneva started colliding particles at record energy levels, opening a new era in the quest for the universe’s deepest secrets

he European Organization for Nuclear Research (CERN) said it had unleashed the unprecedented bursts of energy on the third attempt, as beams of protons thrust around the 27-kilometre accelerator collided at close to the speed of light.

46 CorD 71 / May 2010

“This is physics in the making, the beginning of a new era, we have collisions at 7 TeV (teralectronvolts),” said Paola Catapano, a CERN scientist and spokeswoman, referring to the record energy levels achieved.

at unraveling some of the outstanding secrets of the universe. But collisions among the 20 billion protons emerged in the Large Hadron Collider (LHC) creating powerful but microscopic bursts of energy mimicking conditions close to the Big Bang that created the universe. “We’re within a billionth of a second of the Big Bang,” CERN spokesman James Gillies told AFP. Cheers and applause erupted in separate control rooms as the detectors recorded the collisions of sub atomic particles on computer screen graphs. “We’re certainly going to do the same thing several times over the coming week and hundreds of times over the year,” said Steve Myers, CERN’s Director for Accelerators and Technology. Myers had likened the attempt to firing needles from either side of the Atlantic and getting them to collide half way, while the particles sped around the ring more than 5,000 times a second.

Collisions among the 20 billion created powerful but microscopic bursts of energy mimicking conditions close to the Big Bang that created the universe

CERN Director General Rolf Heuer could barely contain his excitement by video conference from Japan: “It is a fantastic moment for science.” Within an hour, physicists from dozens of countries around the world were marveling at their initial observations, rendered graphically as colorful bursts of energy. “What we saw within the detector was really a firework, a lot of energy, something completely different from what we have seen until now,” said Fabiola Gianotti, spokeswoman for one of the biggest parts of the experiment. The success came after a faltering start at the giant 3.9 billion Euro machine under the Franco-Swiss border near Geneva, which is aimed

The new stage, dubbed “First Physics”, marks only the beginning of an initial 18- to 24-month series of billions of such collisions. Scientists around the world will sift through and analyze huge quantities of data on a giant computer network, searching for evidence of a theorized missing link called the Higgs Boson, commonly called the “God Particle”. “Internationally we sent out data at the rate of one DVD every two seconds,” CERN computing chief David Foster said after Tuesday’s first steps, illustrating the vast volume of data generated by the atom smasher. Physicist Despiona Hatzifotiadu said much of the observation of new phenomena would rely on number crunching. “It will give us a clue of how we were created in the beginning.” The experiment also aims to shed light on “dark matter” and subsequently “dark energy”, invisible matter or forces that are thought to account together for some 96 percent of the cosmos. At this stage the LHC is still running on only partial power. It is designed to run collisions at twice the energy -- 14 TeV, equivalent to 99.99 percent of the speed of light. CERN is aiming to cross that threshold with the giant, cryogenically-cooled machine, which straddles the French-Swiss border near Geneva, after 2011. At full power the detectors in cathedral sized chambers should capture some 600 million collisions every second among trillions of protons racing around the LHC 11,245 times a second. The decades-long attempt by CERN to observe and understand mysterious forces has inspired in recent years the fictional Hollywood blockbuster “Angels and Demons”. The venture has also attracted skeptics who claim that the organization is tampering with forces that might suck the world into a black hole. CorD 71 / May 2010 47

| FACES & PLACES |

Ambassador of Australia Clare Birgin, Katarina and Aleksandar Karađorđević, heir to the throne of Serbia, Dragan Đilas, Mayor of Belgrade, and Vuk Bojovic, director of Belgrade Zoo at the opening of the Australian Animals Pavilion on April 15th

Chargé d’affairs of the Libyan Embassy Gium Ahmed Alghali (right) congratulated the secretary of the Students Union of Great Jamahirya in Serbia, Embarac Omar, the Day of Libyan students, 9th April 2010 in the Centre of Fine Arts Guarnerius

Sir Ivor Roberts, the Dean of the Trinity College and the former ambassador of Great Britain in Belgrade (third on the left), professor doctor Nevenka Žarkić Joksimović, proctor of University in Belgrade, and Stephen Wordsworth, ambassador of Great Britain, on the occasion of handing the donation of the Trinity College to the Rowing club of the University in Belgrade, on 15th April in Belgrade.

From left: Minister of Economy and Regional Development Mlađan Dinkić, Deputy Prime Minister in charge of European Integration Božidar Đelić, U.S. Ambassador Mary Warlick and Minister for Environment and Spatial Planning Oliver Dulić, at the closing ceremony regarding the ﬁnals of the competition of local governments in investment promotion ‘Invest in Serbia’, organized by USAID’s Municipal Economic Growth Activity on 31st March 2010 in Hyatt hotel in Belgrade.

48 CorD 71 / May 2010

From left: Alberto Cammarata, Head of Economic and EU Integrations section, Rade Pribićević , president of the SEKOPAK Administrative Board, Jelena Krstović, director of the corporate affairs sector of Delta Holding, Dušan Jakovljević, moderator, Oliver Dulić, Minister for environment and spatial planning, and Jure Fišer, executive director of Ecology division in Gorenje and director of Surovina company, at the conference ’Green Serbia’, on 31st March in ‘Klub poslanika’ in Belgrade.

From left: Nataša Đurđević- regional market manager of CocaCola company, Karolina Lamačova- representative of FIFA, Goran Kreclovićassistant of the Minister for Sport and Youth, and Sotiris Yanopoulos- CEO of Coca-Cola Hellenic Serbia, at the airport Belgrade on the occasion of the arrival of FIFA World football cup trophy in Serbia, as a part of the Coca-Cola World tour, on 31st March

Mr. Habibollah Valiollahi Malekshah First Counselor, Chargé d’Affaires, a.i. of the Embassy of the Islamic Republic of Iran, receiving guests at the reception on the occasion of Army Day at Hotel Intercontinental, on April 16th

From left: Dalia Narkis, executive director of Manpower company for the countries of eastern Mediterranean, the leading company in mediation in employment, and Snežana Samardžić- Marković , the Minister for Sports and Youth, signing an agreement on cooperation in the area of promoting economic potentials and including young people in social circles, on 14th April in Belgrade. The key mediator in establishing the cooperation was USAID’s project team for planning, enabling and strengthening the economic security (PPES) in Serbia. CorD 71 / May 2010 49

| FACES & PLACES | Ambassador of Israel H.E. Mr. Arthur Koll, with his wife and the Governor of the National Bank of Serbia in resignation, at a reception on the occasion of Israel’s Independence Day, April 21st

From left: Mrs. Ilham Suleiman, wife of the Syrian ambassador; His Holiness Mr. Irinej, Serbian Patriarch; H.E. Dr. Majed Shadoud, Ambassador of Syria; Bishop Atanasije (Rakita) at a reception on the occasion of the National day of the Republic of Syria, April 20th, Hotel Continental

Ambassador of Russia Aleksandar Konuzin handed the Medal of Friendship to Nenad Popović, Vice- president of the Democratic Party of Serbia (DSS), which had been awarded to him by Russian President Dmitri Medvedev for his merits in building economic and cultural relations between Serbia and Russia, on April 16th From left to right: Velimir Ilić (NS), Dragan Todorović (SRS), Dobrica Ćosić, Vojislav Koštunica (DSS), Nenad Popović (DSS), Amﬁlohije Radović, Alexandar Konuzin, Valerij Rjazanski, Ivica Dačić (SPS), Tomislav Nikolić (SNS), Milorad Vucelic, Rasim Ljajić (SDP) in Russian Embassy

50 CorD 71 / May 2010

Reception held by H.E. Mr. Erwin H. Hofer, Ambassador of Switzerland to Serbia, at the Ambassador’s residence in Senjak on April 22nd on the occasion of the 7th Belgrade Dance Festival and the performance of the Ballet du Grand Theâtre de Genėve

PROMOTION AT SERBIA MEDIA ASSOCIATION On the occasion of the appearance of the first issue of the magazine, Color Press Group organized a special promotion in the headquarters of Media Association, hosted by Robert Čoban, President of Color Press Group. The first issue of the Serbian magazine ‘Intelligent Life,’ published by Color Press Group (member of Media Association) in cooperation with the London weekly ‘The Economist,’ has appeared on newsstands in Serbia and Montenegro.

The Ambassador of the United State of America in Serbia, Mary Burke Warlick, visited Media Association with her associates on April 10th. In a longer conversation with chief editors and directors of media houses gathered around Media Association, all political and economic subjects in bilateral relations of the two countries were touched upon, as well as topics related to Serbia’s path towards Europe. The ambassador expressed hope that their forthcoming encounter would be entirely dedicated to questions related to media freedom and the functioning of Serbia’s media industry

CorD 71 / May 2010 51

FROM THE WORLD PRESS Ingenhoven, the tower mirrors the excesses of London’s financial industry. “The thing looks like the risky financial constructions that were dreamt up by the City,” he says. HOLLAND

BUDGET DEFICIT REACHES 5.3%

SIMPLY TOO MUCH The ArcelorMittal Orbit tower is supposed to be the symbol of the 2012 Olympics and London’s answer to the Eiffel Tower. But despite Mayor Boris Johnson’s assurances that it represents the city’s “dynamism,” not everyone is impressed by the recently unveiled design. “There is simply too much,” comments one German architect It’s certain to be the show-stopper of the 2012 Olympic Games in London - 115 meters of tangled red steel that will be hard to ignore. The ArcelorMittal Orbit tower, which is slated to sit next to the city’s Olympic stadium, is almost sure to be the symbol of the London games. But what will the €21.8 million tower represent? Designed by Indianborn sculptor Anish Kapoor, the tower has provoked endless debate since the design was unveiled at the end of March. After all, the structure will remain part of the urban landscape long after the games’ closing ceremonies. The tower is being seen as London’s answer to Paris’s Eiffel Tower. For London Mayor Boris Johnson, who initiated the project, the tower “represents the dynamism of a city coming out of recession and the embodiment of the cross-fertilization of cultures and styles that makes London the world capital of arts, the cultural and creative industries.” The press, however, hasn’t been as kind. The Times of London compared Kapoor’s monument to a “mangled rollercoaster” and Abu Dhabi’s The National remarked that it looks like “an ear trumpet caught in a giant piece of chicken wire.” The Düsseldorf architect Christoph Ingenhoven, 50, whose projects

The tower is being seen as London’s answer to Paris’s Eiffel Tower

have included Stuttgart’s main train station and the new convention center in Hamburg, is critical of the tower’s style. The project’s architectural elements are inspired by civil engineering, for example bridge building, Ingenhoven told SPIEGEL. “There, the key thing is to build something as elegantly as possible using as little steel as possible. But here, one immediately gets the feeling that there is simply too much.” It’s also a question of what kind of message the city wants to project, Ingenhoven says. London is one of the world’s most important financial markets -- and helped trigger the recent economic crisis. For 52 CorD 71 / May 2010

The Dutch budget deficit rose to 5.3% last year, almost double the euro stability pact limit of 3%, according to preliminary figures from the national statistics office CBS. In 2008, the Netherlands had a small budget surplus of 0.7%. The deficit amounted to just over €30bn, or €2,000 per head of the population, the CBS said. Public expenditure rose nearly 8% in 2009 and ministers spent €19.6bn more than the treasury received in taxes and premiums. Local governments overspent their income by €3.4bn. Government revenues fell by 5%. ‘This was predominantly caused by

The deficit amounted to just over €30bn, or €2,000 per head of the population, the CBS said.

lower revenues from corporate tax, value added tax, property transfer tax and dividend tax,’ the CBS said. ‘Total revenues from wage tax and social contributions remained almost the same. In addition, income from the Netherlands natural gas revenues plummeted by one third. But the treasury earned extra cash from interest and dividends following the bail-out of the banking sector following the financial crisis. Earlier this month, the European Commission warned the Netherlands to take steps to get public spending back under control. The deficit is forecast to top 6% this year. SWEEDEN

SWEDBANK PULLS OUT OF STATE BANK RESCUE PLAN Swedbank’s board has announced that the bank will leave the Swedish government’s bank rescue programme with immediate effect as the bank credit market has stabilized. The bank pointed out in a statement announcing its decision that Swedbank had not had cause to borrow under the programme since July 2009. “Achieving financial independence was one of the main arguments behind Swedbank’s rights issue in August 2009. Leaving the formal government guarantee programme is another step in the process,” said CEO Michael Wolf. The state guarantee programme gave the bank access to finance during the turbulent period from autumn 2008 until summer 2009. The guarantee has been a key factor in the Swedish banking system re-

maining relatively strong during and after the financial crisis, Swedbank chairperson Lars Idermark said. Swedbank has borrowed 200 billion kronor ($27.7 billion) since July 2009 in long-term financing from sources outside the state loans programme. During the first quarter of this year, the bank has borrowed 100 billion

Swedbank has borrowed a total of 412.2 billion kronor within the state guarantee since 2008. 234.8 billion kronor is made up of short-term maturities.

MOLDOVA

MENTAL HEALTH CERTIFICATES State post seekers may apparently be demanded to present a doctor’s certificate of normal mental health, as per the draft amendments to the Law on the Duties and Status of the Civil Servant, which were approved by the Government of Moldova at its ordinary meeting on the 10th April. Among the counter-indications for holding essential state posts are: chronic mental disorders, disorders caused by using psychotropic substances, the syndrome of dependence on alcohol or psychotropic substances, drug addiction, toxicomania, psychic diseases. Such certificates shall be issued by authorized health institut

GREEK-TURKISH COOPERATION

kronor, which represents more than two-thirds of total long-term loans which will fall due during the year, the bank wrote. Swedbank has borrowed a total of 412.2 billion kronor within the state guarantee since 2008. 234.8 billion kronor is made up of short-term maturities. At the end of the first quarter of this year, Swedbank had 201.5 billion kronor in outstanding loans.

IRELAND

Rarely do Turkish President Abdullah Gul and Prime Minister Recep Tayyip Erdogan receive a visiting alternate foreign minister, but Greece’s Dimitris Droutsas’ April 8 visit to Ankara was special Armed with an olive branch and the blessings of the American superpower, Droutsas’ trip to Turkey laid the groundwork for Erdogan’s planned trip to Athens in mid-May. Critics in Greece expressed fears that Athens will be negotiating from a singularly weak position, due to the unprecedented economic crisis.

MORE PAY CUTS ON THE WAY Irish Independent

More pay cuts, wage freezes and reduced working hours are predicted among private sector firms this year as the recession continues to bite. Over four in 10 businesses are planning further cuts to their wage bill in 2010 through either pay freezes, cuts or reduced hours. The figures, revealed in a North/South survey, show that pessimism in the Republic about jobs and wages is far greater than in the North, with

Over four in 10 businesses are planning further cuts to their wage bill in 2010 through either pay freezes, cuts or reduced hours.

more than twice the number of firms in some cases predicting wage cuts or reduced working hours for their staff. A total of 1,000 private sector firms (500 on each side of the Border) were surveyed by Millward Brown as part of an ongoing monitor of business by InterTradeIreland. While its latest figures for the last quarter of 2009 show that 51pc of companies surveyed said they had already cut their wage bill last year, 44pc of businesses were planning further cuts this year.

The hope is that the Turkish leader’s visit will open the way for solving various outstanding Greek-Turkish problems, ranging from jurisdiction in the Aegean to reuniting Cyprus. The diplomatic initiative began with Erdogan’s October 30 letter to Prime Minister George Papandreou calling for a sweeping dialogue on the Aegean and other issues and was followed by the Greek PM’s response, neither of which was made public in their entirety. Critics in Greece expressed fears that Athens will be negotiating from a singularly weak position, due to the unprecedented economic crisis. But the government insists that it is determined to defend sovereign interests. Droutsas and Turkish Foreign Minister Ahmet Davutoglu announced at a joint news conference that Erdogan’s proposal for a high-level cooperation council will be signed by Papandreou and Erdogan in Athens. The two countries’ ministers of foreign affairs, finance, environment and energy, transport, culture and tourism, public education and European affairs will also seek areas of cooperation. The two ministers announced new military confidence-building measures. They included joint training in the context of Nato’s Partnership for Peace programme, having each country’s chiefs of staff lecture at the other’s military academy, and linking certain Greek and Turkish military divisions and brigades’ staff at each other’s Nato commands, for training purposes. The two sides agreed to intensify Aegean exploratory talks. The Greek side announced that its team will be led by retired ambassador Pavlos Apostolidis, a former head of the EYP intelligence service. CorD 71 / May 2010 53

B2B |

NEW SELLING OF ZLATARA MAJDANPEK

PIRAEUS BANK

NEW ATTRACTIVE SERVICES

Piraeus banka has launhed new technological innovative service for money transfer - „Card to card“. This unique service provides funds transfer from payment card to card in real time by sending SMS message via mobile phone. The Privatization Agency of Serbia has announced an auction invitation for purchasing the property of Zlatara Majdanpek to be held on May 21st.

Piraeus bank branch in Sava Business Center, Belgrade

ard to card service enables to all users of Dina Card debit and credit payment card, issued by any bank, money transfer to the another user of Dina Card via SMS without visiting the bank or Internet usage. User to whom money is sent is able to use this fund at once. This service is on clients disposal 24/7, no matter of their location. „Card to card“ is available to the Dina Card user who are registrated for this service with card issuing bank. At registration, clinet will receive mPIN for fund transfer confirmation, while transfer procedure is initiated by sending SMS messages on numebr 1770. Daily limit for this kind of tranaction is 5.000 dinars, i.e. 20.000 dinars on monthly level. Beside this, Piraeus bank has prepared very attractive offer for refinancing debt on credit cards issued by other banks with lowest and fixed interest rate on domesitc mareket. Interest rate of 1.54% on monthly level, i.e. 18.5% anually, will remain the same during whole repayment period of debt refinancing (NIR=EIR). This offer is design for existing and new customers with credit card in otehr banks, who can by submmiting refinancing request apply for any credit card from Piraeus bank portfolio (Visa Classic, Visa Gold, MasterCard Standard, MasterCard Gold, Visa Photo card, Dina Card Credit). Beside refinancing, clients can use their credit cards for daily payment of goods and services, as well for cash withdrawal in country and abroad at the applicable interest rate.

ll movables and immovables, stocks of material, petty inventory, final products, and semi-products, with an estimated value of € 4,731, 658, will be offered at the auction. Materials, petty inventory, final products, and semiproducts are estimated to be worth €3,135,864, a public invitation published in Politika states. The buyer is obliged to keep all 344 employees and to secure production continuity. The Slovenian company ‘Laser Bled’ bought Zlatara Majdanpek on July 7th of last year for € 4.6 million, but this company failed to pay the sale price in the legal limit, which gave reason to terminate the contract and keep the € 460,000 deposit, previously given as a guarantee for participation in the auction. ‘Laser Bled’ announced it would not give up purchase of Serbia’s largest jewelry manufacturer, and that they had filed a suit against the Privatization Agency, as it is their opinion that there had been some irregularities during the process for changing the ownership structure. Source: Beta

KRAGUJEVAC: PLAZA IS BUILDING A SHOPPING MALL AFTER ALL? The Israel company Plaza will continue construction of its first shopping mall in the Balkans, worth €1 million, in Kragujevac.

laza started building this shopping mall (area 80,000 square metres) in the autumn 2008, but in the spring of last year construction was stopped due to the global economic crisis. According to unofficial information from sources close to Plaza Company, the construction site will liven up at the beginning of June, by which time a new building constructor and a managerial team of the construction site should be selected. There will be stores of over 100 international brands and domestic 54 CorD 71 / May 2010

makers, a 2,000 square-meter Fantasy Park, a 900-seat multiplex cinema, coffee-shops, fast-food restaurants with 350 seats, a bowling alley, pool room, small sport field, etc. In the old workers’ colony, a settlement a short distance from Plaza, two more residential- business settlements are under construction and in the first phase, 500 flats and 100 premises will be finished. The Greek company Global has began construction of a residential-business block of 75,000 square metres, estimated at €25 million. Currently, the first object with 160 flats and premises of 1,200 square metres is under construction. Company Nelt is building Smallville settlement with 360 flats and 40 premises, estimated at €25 million. In that same settlement so far, in the programme of replacing run-down wooden huts, almost 600 flats have been constructed, and in the old workers’ colony several other smaller construction investments, apart from Plaza, Global and Nelt, are being realized. Source: Fonet

FARMINA PET FOODS OPENED A FACTORY IN INĐIJA

‘Farmina Pet Foods,’ an Italian maker of pet food, opened a factory in Inđija. The construction of the factory cost around €8 million.

t is planned that 90% of this factory’s products will find their market across the European Union and Russia. The owner of ‘Farmina,’ Angelo Russo, thanked Inđija and Goran Ješić, chairman of this Vojvodina district, for their welcome, and promised to recommend this town to other Italian companies as a fine place for starting their business in Serbia. Minister of Economy and Regional development Mlađan Dinkić said that he was extremely pleased that an Italian investor had undertaken a greenfield investment in Inđija after the Foreign Investment and Export Promotion Agency had recommended as early as 2006 that Farmina open a factory in that district. ‘As a minister in charge of economy, it gives me great pleasure to know that 90% of products will be exported, which means that Serbia will have foreign currency income from this factory’,’ Dinkić said. He stated that this factory would export to European and Russian market, which is enabled by the Free Trade Agreement. Source: B92, Beta

CHINESE COMPANY BUILDING A BRIDGE OVER THE DANUBE

onstruction works will start in September, Verica Kalanović, the Minister for National Investment Plan (NIP) said, after signing the contract with Lu Shan, Vice- President of the Chinese company CRBC that will build the bridge, and Dragan Đilas, Mayor of Belgrade. The bridge over the Danube which will connect the Belgrade municipality of Zemun and suburban settlement Borča will be 1.5 km long, and 21km of access roads will also be made. As stated, 85% of the money needed for the construction of the bridge will be provided from credit from the Chinese Exim bank, while 15% will be financed from the National Investment Fund, while expropriation and technical preparation expenses will be handled by Belgrade. The payback period is 15 years, with a three-year grace period and a fixed interest rate of 3% a year. By this contract, the minimal participation of 45% by Serbian subcontractors is also defined. The pre-contract on the bridge’s construction was signed between the Serbian Government and the City of Belgrade with the Chinese company CRBC last October 23rd.

A RESPONSE TO THE ECONOMIC SITUATION

BETTER FINANCIAL CONDITIONS FOR ALL CLIENTS Cooperation of Mercedes- Benz with NBG Leasing and SOGELEASE

ercedes- Benz Company has signed a non- exclusive contract on cooperation with NBG Leasing and SOGELEASE to improve financial conditions for all Mercedes- Benz clients. The aim of this cooperation is to allow, despite the harsh times, all buyers of Mercedes- Benz brand to become owners of a vehicle under extremely favourable conditions. Counting on the fact that 50% of Mercedes- Benz vehicles purchased are financed under leasing, it is obvious that such a step was necessary. The Mercedes- Benz Company is trying to offer the best service and repair to its clients, and starting now, also very competitive financing conditions in cooperation with its partners. This offer is extremely significant for market revitalization, for these excellent conditions would attract clients to buy Mercedes- Benz passenger and commercial vehicles. “This is just the beginning of a partnership based on the previous successful cooperation and trust Mercedes- Benz clients have given to these two financing houses. NBG Leasing and SOGELEASE have great and significant experience on the automotive market, and are both very professional and competitive. This cooperation will allow us to offer our clients a very attractive financial package, and that is one very significant segment in our business dealings,” said Andreas Binder, CEO of Mercedes- Benz SCG Company.

CARLSBERG SETS IN MOTION A NEW SYSTEM FOR LIQUID WASTE PROCESSING

t a celebration on April 19th, Carlsberg Serbia Group Company set in motion a new system for liquid waste processing at its factory in Čelarevo, worth is over € 5 million. The factory was opened by Prime Minister Mirko Cvetković, and Oliver Dulic, Minister for Environment and Spatial Planning. Representatives of the diplomatic corps, relevant Serbian governmental institutions, authorities from Vojvodina, local authorities, and numerous business partners of the company attended this event. Prime Minister Cvetković congratulated the company on its socially responsible endeavor and accentuated his expectations that a growing number of companies in Serbia would invest in environmental preservation and thus contribute to faster development of the country. CorD 71 / May 2010 55

B2B |

CAS MEDIA TO MANAGE AD SALES IN THE COUNTRY ON BEHALF OF DISCOVERY NETWORKS

DIRECT FLIGHTS BELGRADE BARCELONA

iscovery Networks EMEA announced that it has teamed up with CAS Media to launch advertising sales on Discovery Channel and Animal Planet in Serbia. These two channels are the oldest cable and satellite channels, introduced to the Serbian market back in 1991. The deal means that as of today, CAS Media will be selling advertising on Discovery Networks’ two flagship channels, offering Serbian companies the chance to integrate Discovery Channel and Animal Planet into their marketing plans for the first time. CAS Media emerged on the Serbian market at the beginning of 2010 as a onestop shop media buying house for cable and satellite channels. The advantages of advertising on CAS channels include a better audience targeting, an upscale population, a growing share, association with world-class brands, and excellent pricing. www.casmedia.rs

The Spanish air company Spaner began direct flights between Belgrade and Barcelona on April 15th.

ccording to the Belgrade Airport’s seasonal flight chart, Spaner will have three weekly flights – on Tuesdays, Thursdays, and Saturdays. Promotional tickets for journeys from Belgrade to Barcelona cost €75 with no airport taxes included, this company’s web site states. The Spanish air company also announced that starting May 28th, flights from Belgrade to Madrid would be introduced twice a week, on Fridays and Sundays. Spaner has a fleet of 36 airplanes and is a member of the Star Alliance, spearheaded by German Lufthansa. Source: Beta

SECOND INTERNATIONAL ARCHITECTURE AND REAL ESTATE CONFERENCE

A three-day BLOK conference, organized by Projmetal company, which will bring together fifteen well-known architects and experts in the field of design, construction and real estate, will be held from June 2nd to 4th, at the Zira Congress Center in Belgrade Experts in these fields will offer the answers to the current topics in the world and in Serbia today, such as: the quality and ecological building, cost efficiency, affordable housing, project financing, design in nowadays changed economic circumstances... to the participants - architects, designers, construction companies, investors, and the entire professional and business community. As announced in Projmetal, one of the largest companies for the design, engineering and construction in Serbia, which portfolio includes almost all major industrial complexes in the former Yugoslavia, as well as contemporary objects (complex Zira, business building B23 in New Belgrade, Trošarina shopping mall, Robne Kuće Beograd department stores chain, etc.), the aim of organizing this conference is promoting high quality, modern concepts of building and improving business standards in this field. The speakers who have confirmed the attendance at the BLOCK are among the most important names of the contemporary architecture. BLOCK 2010 will be organized through five panels: “New Tendencies“; “Realised“ , “Green“ , “Affordable Housing“ and “Blo(c)ked“. Find more about the conference and lecturers, and register on-line at the web site www.blok.rs. 56 CorD 71 / May 2010

SERBIAN RAILWAYS ARE BUYING 10 TRAINS

The public company Serbian Railways signed a contract with the Russian company ‘Metrovagonmaš’ to purchase 10 new diesel-engine trains, worth CHF 34.3 millio.,

part from the trains, this contract also includes the purchase of tools and cleaning equipment, expendable materials, and spare parts, compiling of technical documentation, and training of t Serbian Railways personnel. This is the first time after almost three decades that Serbian Railways will acquire new passenger trains. These trains are planned to promote domestic and especially regional traffic on non-electrified railways in Serbia. Assets for the purchase of the new trains were provided through a credit from the International railways bank ‘Eurofim.’ The Russian company was chosen as the most favourable on a international public tender, which was monitored by ‘Eurofim.’ The first trains should arrive in about one year, and all 10 diesel-engine trains in about two years. The maximum speed of the trains is 100 km per hour, and they will have inner video-supervision, inner and outer display, sound system, and modern vacuum toilets accessible also to people with special needs. Source: Beta

NOVI SAD GETS ‘HOLIDAY INN’ HOTEL Novi Sad will get a ‘Holiday Inn’ hotel, in whose construction ‘Aleksandar Gradnja,’ a company from Novi Sad, will invest around €11 million.

he contract for the construction of this four-star hotel was signed by Peter Vermer, Vice- President of the hotel chain company ‘International Hotels Group’ (IHG), and Vojislav Gajić, owner of ‘Aleksandar Gradnja,’ the Regional informational secretariat announced. The hotel, which should be constructed in 2011, will be stand on the corner of Subotički Boulevard and Futog Road, and would employ about 100 workers. When signing the contract, Vermer said that at this moment, the East European market is developing quite quickly and that when it comes to construction of new hotel industry projects, it is showing a significantly larger growth compared to the rest of the old continent. “For every future new investor, the presence of such an important international brand will signify an extra stimulus to come to our area and invest his funds. The more brands are present here, the better marketing for a city, region, or state,” said Vice- President of Vojvodina Government, Bojan Pajtić, who was also present for the signing. He added that the Government of Vojvodina is willing to set aside financial support for each newly-opened working place and logistical support in the hotel construction phase and through partner relations with the representatives of IHG Company. Source: Beta

SEVERINA IN ATLAS CENTRE

he business- residential complex Atlas Capital Centre, technologically and technically the most advanced project in the region, hosted pop star Severina, whose team, led by the director Aleksandar Kerekeš, decided to shoot a video for the song “Lola” in one of Atlas Capital Centre’s exclusive suites of Atlas on the Montenegrin coast. At a press conference held in the Media Centre of BW Premier Hotel Montenegro, Vuko Dragašević, CEO of Atlas Group, Aleksandra Golubović, CEO of CENTURY 21 Capital Real Estate, the official representative for selling Atlas Capital Centre, and Severina Vučković herself, spoke about Atlas Capital Centre, her video for the song “Lola,” and future plans. In the name of the group and Atlas Mont Bank, Duško Đukanović presented Severina with a ‘Gold’ card. Aleksandra Golubović, CEO, stated that Century 21 Capital Real Estate agency was very pleased that Severina chose their showrooms to make her video. “I have a very positive experience with Atlas Group, which confirmed that it always recognizes quality and artists, whose plans they fulfill without any drawbacks. I will certainly recommend Atlas Group as an excellent partner for cooperation,” Severina said. “Last year we tried hard to bring Hollywood stars to Podgorica, and this year we had the honour to have Severina as our guest and associate at the promotion of our biggest current project,’ CEO of Atlas Group Vuko Dragašević said.

BANKS GAIN OVER €200 MILLION

The banking sector in Serbia ended 2009 with a net income before taxation of over €200 million.

s stated in the bulletin ‘Macroeconomic Analyses and Trends’ (MAT), the value of income is a mere 57.3% of that made in 2008, and 85.3% of financial scores in 2007. MAT experts point out that the significant decrease of financial results in the banking sector could be considered satisfying, taking all business circumstances into consideration. The banking sector is hyper-liquid, and the high liquidity of the sector is reflected in the significant share (11.7%) of cash and cash equivalents in the entire balance of assets. Data from the final banking balances confirm the frequently-stated diagnosis that the sector is stable. The period of crisis has influenced the net results of the sector, but it did not ruin it, nor did it stop its growth, MAT stated. In the investment structure, credits given to the economy are still dominant. Almost 43% of the overall growth of balance assets last year is the consequence of these credits’ growth, MAT says. Source: Tanjug CorD 71 / May 2010 57

B2B |

GOLDMAN SACHS UNDER FSA INVESTIGATION

The UK Financial Services Authority (FSA) is investigating Goldman Sachs’s London operations Jill Treanor , guardian.co.uk,

profits and bonus announcement by Goldman Sachs was overshadowed by an announcement from the City’s top regulator that it is beginning a formal investigation into the Wall Street’s firm London operations. The decision by the Financial Services Authority follows a preliminary investigation - which lasted barely 24 hours - after the Securities and Exchange Commission charged the firm and one of its London-based executives with a $1bn fraud. The FSA was only told by Goldman that the London-based employee Fabrice Tourre was being investigated by the SEC middle of April - even though the firm had known for months that his role in the controversial Abacus transaction was being scrutinised by the US authorities. The FSA said: “Following preliminary inves- were professional investors. Today the bank tigations the Financial Services Authority said in a statement: “We believe the SEC’s (FSA) has decided to commence a formal en- charges are completely unfounded in law and forcement investigation into Goldman Sachs fact and look forward to cooperating with the International in relation to recent SEC allega- FSA.” The FSA authorises most of the people tions. The FSA will be liaising closely with the who work in the City and Tourre is permitted SEC in this review.” to work with clients. The regulator would be The regulator refused to add any more infor- able to recall his authorization if Tourre were mation, arguing that formally referring the found to have committed fraud by the SEC. case to its enforcement division restricted Goldman is understood not to have known its ability to provide more details. Tourre has the SEC was bringing formal charges against been told by Goldman Goldman is denying that it has done the firm until last that he can take indefFriday when it was ananything wrong and the parties inite leave, although involved the transaction knew what nounced by the reguthe firm is adamant lator, although it had they were doing because they were that the 31-year-old been issued with a soprofessional investors has done nothing called Wells notice, inwrong. The French man, who is still author- forming it of the investigation, in July. ised to work and operates under the individ- The bank has conducted its own investigaual reference number FPT01004 granted to tion into the affair and concluded that Tourre him by the FSA, was based in New York at the had not done anything wrong. The firm’s cotime the Abacus transaction was broked by general counsel Greg Palm will accompany Goldman to help hedge fund manager John Goldman’s chief financial officer David Viniar Paulson place a big bet in 2007 that the sub- during the profits annoucement later today to prime mortgage market would collapse. field the questions relating to the SEC invesGoldman is denying that it has done anything tigation. wrong and the parties involved the transac- Goldman is expected to post first quarter revtion - financial firm ACA and German bank IKB enues of more than $10bn and set aside up to - knew what they were doing because they $5bn in bonuses. 58 CorD 71 / May 2010

GERMANY

PUMA  NO MORE SHOE BOXES Shoes will go into cardboard frames wrapped in reusable bags

RANKFURT - Sporting goods maker Puma will launch eco-friendly packaging for its sneakers next year to reduce its carbon footprint, beating governments to the punch as it kisses old-fashion shoe boxes good-bye. Puma said it would roll out the new packaging in the second half of next year and that by putting its shoes in cardboard frames wrapped in reusable shoe bags, it would save 8,500 tonnes of paper — the weight of more than 1,400 adult elephants. It also said the change would mean a reduction of 60 percent in water and energy used during the production process and the amount needed for transportation due to lighter packaging. However, Puma Chief Executive Jochen Zeitz told Reuters the company would not save money with the new packaging. “To begin with, we don’t expect to save costs with this. It may even have a negative impact in the short term. But over the long run, there should be cost savings,” he said. “Sustainability is not only absolutely necessary considering the situation our planet is in, we as companies are also overdue to take responsibility,” Zeitz said. “We can’t wait for governments. Companies have to lead the way and we want to be among the leaders.” The chief executive said he hoped other companies would follow their lead. “In changing the packaging and distribution life cycle from the ground up, we hope our new design and comprehensive solution encourages other retail companies to follow suit,” said industrial designer Yves Behar, who created the new packaging. Puma is the world’s third-largest sporting goods maker, behind U.S. bellwether Nike and local rival Adidas.

USA

JAMES BOND FILM SUSPENDED

The production of the next James Bond film has been suspended “indefinitely” because of uncertainty over the future of film company MGM, producers say

roducers Michael Wilson and Barbara Broccoli said they did not know when work on the 23rd Bond film would resume and there was no date for its release. The latest Bond, due to star Daniel Craig as 007 for the third time, had been due out in 2011 or 2012. James Bond is one of the longest running franchises in film history. Wilson and Broccoli, of EON Productions, said: “Due to the continuing uncertainty surrounding the future of MGM and the failure to close a sale of the studio, we have suspended development on Bond 23 indefinitely.” Daniel Craig, who made his Bond debut in Casino Royale in 2006, said: “I have every confidence in Barbara and Michael’s decision and look forward to production resuming as quickly as possible.” Craig is the sixth actor to play the British secret agent on the big screen, after Sean Connery, George Lazenby, Roger Moore, Timothy Dalton and Pierce Brosnan.

His first outing, in Casino Royale, was the most successful instalment in the franchise’s 48-year history, taking $594m (£385m) at the global box office. There is little doubt he will eventually return to the role, said Helen O’Hara from film magazine Empire - either with the backing of MGM or another film company.

The latest Bond, due to star Daniel Craig as 007 for the third time, had been due out in 2011 or 2012 “The last two films have done phenomenally well, and the series is a very reliable performer,” she told the BBC. “If the Bond franchise went up for sale I don’t think there’d be any problem at all.” Work on the latest film was still in the early stages, Ms O’Hara added. “I’m not sure they were vey far on,” she said. “The Bond machine is always in motion and it

felt like it was just beginning to heat up. “You were beginning to have the inevitable and endless casting rumours - Rachel Weisz had been mentioned - because the British press goes nuts for it.” EON productions holds the rights to Ian Fleming’s works - including the Bond series and Chitty Chitty Bang Bang - while film studio MGM owns the rights to the Bond film franchise. The studio is also home to the Pink Panther and has a stake in the forthcoming Hobbit movie. It is saddled with $3.7bn (£2.4bn) debt, and has been trying to find a buyer since last year. Several companies have expressed an interest - but offers are thought to be significantly below the $2bn (£1.3bn) sought by MGM and its debt holders.

JAPAN

AUTOINDUSTRY FORCES COMBINE

Nissan Motor Co. and Renault SA of France announced a business and capital tie-up agreement with Daimler AG of Germany. In December, Suzuki Motor Corp. and Volkswagen AG of Germany struck a capital tie-up deal. The auto industry is undergoing sweeping transformation as markets in developed countries show signs of shrinking and demand for environment-friendly cars grows. The Japan Times he Volkswagen-Suzuki alliance is now the world’s No.1 in terms of the number of units sold (8,644,000 cars in 2009), Toyota Motor Corp. the No. 2 (7,810,000 units) and the Nissan-Renault- Daimler alliance the No. 3 (7,636,000 units). Toyota, which became the No. 1 automaker in 2008, is now making strenuous efforts to rebuild its reputation after the damage suffered from recall problems. The Volkswagen-Suzuki and NissanRenault-Daimler alliances show that the carmakers are trying to become more competitive by utilizing each other’s technological strengths. For example, Daimler, which en-

joys strong brand recognition for its large luxury cars, is lagging behind in the development of fuel-efficient compact cars and electric cars but its low-pollution diesel engines

The Volkswagen-Suzuki alliance is now the world’s No.1 in terms of the number of units sold (8,644,000 cars in 2009), Toyota Motor Corp. the No. 2 (7,810,000 units) and the NissanRenault- Daimler alliance the No. 3 (7,636,000 units) are attractive to Nissan and Renault. Nissan is strong in the development of electric cars. Suzuki hopes to strengthen its “green” technology by utilizing Volkswagen’s exper-

tise on hybrid and electric cars. Volkswagen wants to further strengthen its presence in emerging economies by utilizing Suzuki’s superior knowledge of low-priced minicars. Suzuki has a strong presence in India, while Volkswagen is strong in China. As governments try to fight global warming and reduce reliance on oil, fuel-efficient and environment-friendly cars will be of greater importance to the car industry. (Europe, for example, will introduce strict regulations on carbon dioxide emissions in 2012.) For carmakers, it will be essential to be flexible and have the ability to adapt to meet the needs of individual customers and society as a whole. CorD 71 / May 2010 59

TRIUMPH OF HUMANITY Like every year, CorD, in cooperation with numerous friends and readers, organizes a charity race, similar to those held during marathons in London, New York, and other cities all over the world.

he aim of all runners is to run as many kilometres and win as much money as possible for those who, in their opinion, need it the most. Traditionally, the most humane were representatives of Coca-Cola (with 23 participants), Henkel (15 participants), the Embassy of the USA, Korea, and others. Up to this issue’s closure, we calculated that a sum of €8,000 was collected, and that the money would be donated to the Home for Children and Youth with Disabilities in Sremčica, the Children’s Shelter on Zvečanska Street, and others. Like every year, the rules of the race were quite simple: each contestant for each kilometre gets a previously agreed upon sum of money from his sponsor. Some got €10, some €20, and there were companies that motivated runners with

40 or 50 euros per each kilometre run. After completing the race, each participant donated his or her earned money to those who need it the most. In any case, charity marathons have existed around the world for a long time. At last year’s London Marathon, over 46 million pounds were collected was donated to charity. The situation is quite similar in other cities in the world. Only a small number of people compete for results and prestige. Right after the race, CorD started preparations for Belgrade Marathon 2011, and we use this opportunity now to invite all those who want to help to join us so that we can organize the biggest charity race ever in Serbia! All applications of participants and sponsors can be sent to: charitymasters@aim.rs

NO DEDUCTIONS The participants of the CorD Charity Masters themselves decide upon raising and donating money. CorD magazine simply organizes and finances the race. Money is given by the companies that employ the participants, their friends, parents, et al. The aim is to raise as much money as possible for each kilometre run, which is why no one can know in advance what sum of money will be collected. This depends solely on the generosity of sponsors and the stamina of the runners. A single runner might have several sponsors, which increases the sum to be given to the charity. Each contestant must state prior to the race to whom would he like to donate the money. And most importantly, without any deductions, on the same day, the money is sent to those it was meant for. 60 CorD 71 / May 2010

RECOMMENDED – NEWLY OPENED! Njegoseva 28a, 11000 Belgrade

23RD BELGRADE TIME FORCE MARATHON

TRIUMPH OF KENYA RUNNERS or more than two decades, the Belgrade Marathon has certainly been the biggest and the most massive sporting event in Belgrade. This year’s 23rd race brought together 259 runners from 24 countries, while several thousand racers of all ages participated in various races. Among them were a hundred participants in our magazine’s traditional race ‘CorD Charity Masters,’ who collected over RSD…. for different humanitarian actions. The Belgrade Marathon consists of a 5 km long ‘Fun Run,’ a semi-marathon, and marathon. According to many, this is the biggest sporting and promotional event traditionally held in our country. On the whole, the Children’s Marathon and Belgrade Marathon attract a great deal of media attention at the beginning of each spring. Athlete from Kenya Johnstone Kibet Maiyo was the winner of Belgrade Marathon, where runners from Kenya confirmed their supremacy by winning the top 5 places. Johnstone Kibet Maiyo completed the track in two hours, 16 minutes, and 2 seconds. Second was Feni Kipkorir Kibetsa with 2:18:15, and third Paul Lomon Lopio with 2:18:19. In the women’s competition, Hellen Wanjiku Mugo from Kenya was the fastest, with a time of two hours, 41 minutes, 19 seconds. Second was Rezkaya Volha from Belarus with 2:53:57, and third Neža Mravlje from Slovenia with 2:59:30.

Lavender is not native in Serbian, but it is commonly grown as an ornamental and medicine herbal. Since May 2010 it grows at Lavanda shop at Njegoseva 28a (in between of Prote Mateje and Alekse Nenadovica Streets)

● The newly opened chain of small shops offers wide range of fresh foods, healthy sandwiches, natural products based on herbs, soy, integrated pasta, all kinds of breads (with no yeast) various kinds of oils, integral flour, organic products and bio growing. ● Special offer of gluten free program and programs for diabetics. ● Wide selection of local sugar free jams and juices

Exclusive range of the famous Jamie Oliver Kitchenware, under special prices.

/ May CorD 71CorD / May 71 2010 61 2010 61

CULTURE

NEWS

DAYS OF BELGRADE HELD In the middle of April Days of Belgrade, an event commemorating two significant dates in the history of the Serbian capital, were held. Namely, the name Belgrade was mentioned for the first time in a written (and preserved) document on April 16th, 878, and on April 19th, 1867, Prince Mihajlo Obrenović was symbolically given the keys of Belgrade. Days of Belgrade were celebrated for the seventh time in a row and they included a number of various events. The central event of this year’s celebration was the gala opening of the renovated Avala Tower. In the City Hall, the prestigious traditional awards from the city of Belgrade were given to meritorious individuals and groups who have distinguished themselves by their work and creativity. The Touristic Organization of Belgrade designed several programmes, and some of the most attractive and most visited ones were tours of parts of Kalemegdan with an expert guide, and a tour around Skadarlija, the bohemian quarter. The most important part of the sports programme was the Belgrade Marathon on April 18th. In the cultural segment of Days of Belgrade, the opening night of the musical ‘Na slovo na slovo’ took place, as well as a soirée dedicated to the recently deceased writer, Momo Kapor. The new Zepter Museum was opened on Knez Mihajilova Street, and in the private Museum of Jevrem Grujić on Svetogorska Street, an exhibition of paintings by Belgrade painter, Cile Marinković, was put on display. 62 CorD 71 / May 2010

TOUR OF THE NATIONAL THEATRE IN KOSOVO The National Theatre from Belgrade gave guest performances in Kosovo from April 15th to 17th, as part of the action ‘Serbia within Serbia,’ organized by the Ministry of Culture. The Minister of Culture, Nebojša Bradić, presented the book ‘World heritage- Serbia’ and opened an exhibition dedicated to that publication in Leposavić on April 18th. The delegation of the Ministry of Culture and the Republic Office for Cultural Monument Preservation visited Visoki Dečani monastery on that same day. On the tour around towns in Kosovo and Metohija, there were performances by Miloš Nikolić’s drama ‘Kovači,’ directed by Stefan Sablić, staring Milenko Pavlov, Zorica Mirković, Dragan Nikolić, and Uroš Urošević. The play was performed five times- in Gračanica, Goraždevac, Velika Hoča, and Zvečan.

‘MILIVOJE ŽIVANOVIĆ’ AWARD HANDED OUT A c t o r Tihomir Stanić was awarded for the best acting performance at the 15th Acting Ceremonies ‘Milivoje Živanović’ in Požarevac, for the role of Anđelko in the play ‘Falsifikator,’ written and directed by Goran Marković, performed by Belgrade Drama Theatre. The festival in Požarevac started 15 years ago, and is held as a commemoration to the famous Serbian actor Milivoje Živanović (1900- 1976), who was one of the most significant Serbian actors of the XX century. Živanović performed on stages all around Serbia, and he was the only foreign actor to receive the Stanislavsky Medal in Moscow 1966.

PAGANINI ON TRUMPET PERFORMED WITH BELGRADE PHILHARMONIC ORCHESTRA

Sergei Nakarjakov, known around the world as‘Paganini on trumpet,’performed on April 15th with the Belgrade Philharmonic Orchestra in the synagogue in Novi Sad, participating in NOMUS festival, and a day later in ‘Kolarac Zadužbina’ in Belgrade, as part of the regular season of the Belgrade Philharmonic Orchestra. Both concerts were conducted by Islandic conductor Gudney Emilson, and on the programme were the composition ‘Geyser’ by Islandic composer Jon Leifs, Variations on Rococo Motifs by Petar Illich Tchaikovsky (arrangement for flugelhorn and orchestra), and Grieg’s Symphony in C- Minor. Sergei Nakarjakov is considered to be one of the most virtuous trumpet players of today by international critics.

SUPERNATURAL FESTIVAL HELD The Supernatural Festival was held on April 25th at Hajdučka česma in Košutnjak, and like previous years, it gathered music and nature lovers. Once again, it drew attention to ecological problems and the importance of finding solutions. The Supernatural Festival was started in 2007 with the idea to gather young people who would have the opportunity to get closer to nature and ecological knowledge through music, art, and socializing. The festival, which has as its main goal

to raise awareness of young people in Serbia, unlike other festivals, takes place during the day in an outdoor setting. This year also, visitors had the chance to enjoy nature, music, and numerous other side-events at the festival. The festival started with a children’s programme, an ecological performance by the ‘Eco Musketeers’ group and a performance by the children’s choir ‘Čarolija.’ The main programme started with the performance of the dub/ dance band Zion train on the Biodizel stage, and after that, the popular Belgrade band Darkwood Dub, and the young Belgrade pop band Svi na pod!, American guitar player Adam Rafferty, Japanese DJs Aki and MC Yuki, Belgrade duo Braća Burazeri, funk DJ Peppe, and others held their sets. Sponsor of the Supernatural Festival this year was again the Ministry for Environment and Spatial Planning of Serbia.

SERBIAN DESIGNERS AT MILAN FAIR Young Serbian designers presented at a World Furniture Fair in Milan, held from April 14th to 19th. Designers Ana Kraš, Đorđe Čukanović, Jovan Topalović, Jovana Bogdanović, Miljana Nikolić, and ‘Antipod’ studio group with of Branko Nikolić, Petar Savić, and Milan Stefanović, presented their works at Salone Satellite talent show in Milano. This year, the participation of young Serbian designers was the second exhibition in Milan within the ‘Young Serbian designers’ project. This is the first organized strategic promotion of the new Serbian designer scene, initiated last year by the cultural organization MIKSER, together with the Foreign Investments and Export Promotion Agency (SIEPA). The results of this year’s selection in Milan will be presented on a national festival ‘Mikser,’ to be held in Belgrade from May 25th to 29th.

‘NA SLOVO NA SLOVO’ MUSICAL The opening night of the musical ‘Na slovo na slovo’ from the well-known TV

series for children, was held on April 17th in Terazije Theatre. According to Director Darijan Mihajlović, this musical was an attempt to bring the spirit of the cult TV show of RTV Belgrade closer to the children of today. The show, made by the authors Duško Radović and Miodrag Ilić Beli, was screened during the 1970’s, and it was very popular. The musical was done according to a script of Duško Radović, adapted by Vladimir Andrić, and music was done by Dragan and Sanja Ilić according to the original music of Miodrag Ilić Beli. Choreography is the work of Sonja Lapatanov, with scenography by Aleksandar Denić.

DADO ĐURIĆ IN CHAOS A retrospective exhibition of drawings by painter Miodrag Dado Đurić, who lives and works in Paris, will open on May 11th the in art gallery Chaos. At the exhibition, which will last until June 11th, the series ’30 crowned heads’ (Trente têtes couronnées), Đurić’s drawing interventions with colour on printed portraits of famous scientists, rulers, and thinkers, will be presented for the first time in Belgrade.

At the exhibition at Chaos gallery, Đurić will display his selection of 30 people who were, one way or another, ‘the crowned heads of their era,’ like Henry VIII, Copernicus, Maria Medici, Pope Leo X, Ana of Austria, Martin Luther, et al. The exhibition will be opened by the ministers of culture of Serbia and Montenegro, alongside French ambassador in Belgrade.

SPANISH METRE 2010 ANNOUNCED Under the slogan ‘For a Handful of Hope,’ this year’s mini-festival of contemporary Spanish movies will bring nine movies to Belgrade Cultural Centre in mid-May. “The hope that a better life must happen to them is sometimes the only thing that keeps them standing and determined to last. This hope connects all the movies, regardless of their genre and theme. In the movie A Day t Relax, we meet young people getting ready to conquer new times although, deep-down, they are aware that the price of such an undertaking is too high. Contrary to them, the old man from The Road Sprinkled with Stars does not allow the new age to kill the sacred things in his life. That the hope implies basic human dignity which makes a man a man, is proven by two strong dramas about people from the borders of society- Under the Stars and Life and Nothing but Life, while heroes of the movie Get Away from Me and the omnibus Eight Dates hope to articulate their emotions, to accept them, and make peace with the world around them. The musical comedy Baptism of Fire brings us back to movida, a time after Franco’s dictatorship, when hope for a new life was limitless and liberating. Dancer and a Thief and The Good Life, two movies set in Chile and whose heroes suffer the consequences of the past, show that, regardless of realistic hopes, things cannot change overnight.” Authors of these movies that will be shown during Spanish Metre, from May 14th to 19th are directors: Feliks Viskaret, Chus Gutiérrez, Victor Garcia Leon, Santiago Zannou, Maks Lemke, Mario Camus, Peris Romano, Rodrigo Sorogojen, and Andrés WooD. By Jelena Jovanović CorD 71 / May 2010 63

CULTURE CALENDAR

I. Stravinsky: Le Baiser de la Fée, ballet suite 28. 05. 2010 Red Cycle Conductor: Thomas Rosner. Soloist: Liana Issakadze, violin. Program: A. Dvorak: Othello overture P. I. Tchaikovsky: Violin concerto. C. Debussy: Iberia. M. Ravel: La Valse

CONCERTS IN KOLARAC CONCERT HALL 08 May / Great Hall, 20:00 Yann Tiersen

ANNUAL EVENTS RING RING INTERNATIONAL NEW MUSIC FESTIVAL 12 May-16 May

12 May Cultural Center Rex, Jevrejska 16. Branko Džinović featuring Luka Toyboy (Serbia). Iva Bittova (CH) 13 May Cultural Center Rex. Angles (Sweden/Netherlands). The Ex (Netherlands) 14 May Cultural Center Rex. Xu Fengxia/ Lucas Niggli (China/CH). Transmit Project (Austria/Nl) 15 May Cultural Center Rex. Mia Zabelka Trio (Austria/CH). Rempis Percussion Quartet (USA) 16 Маy Kolarac Concert Hall. Huun Huur Tu (Tuva). A Filetta (France)

Guillaume Yann Tiersen (born 23 June 1970) is a French musician and composer. His music is recognized by its use of a large variety of instruments in relatively minimalist compositions, often with a touch of either European classical music or French folk music, using primarily the piano, accordion, or violin together with instruments like the melodica, xylophone, toy piano, ondes martenot, harpsichord, and typewriter. His musical style is reminiscent of Frédéric Chopin, Erik Satie, Philip Glass, and Michael Nyman.

09 May / Great Hall, 20:00 Diego El Sigala , ﬂamenco singer with his group Diego Ramón Jiménez Salazar, known as El Cigala is a famous Spanish Romani Flamenco singer. One of his great albums is “Lágrimas Negras” from 2003, in cooperation with 85 year-old Cuban pianist Bebo Valdés. The easy fusion of Cuban rhythms and flamenco vocals made this record an international success.

12 May / Music Gallery, 18:00

CLASSICAL MUSIC BELGRADE PHILHARMONIC ORCHESTRA All Concerts are in Kolarac Hall at 20:00 14. 05. 2010 Red Cycle Conductor and soloist: Barry Douglas, piano. Program: L. van Beethoven: Piano concerto No. 5 (Emperor). F. Mendelssohn: Symphony No. 3 (Scottish) 21. 05. 2010 Blue Cycle Conductor: Peter Marchbank. Soloist: Sol Gabetta, cello. Program: C. Scott: Aubade E. Elgar: Violoncello concerto 64 CorD 71 / May 2010

Katarina Simonovic- Ivankovic, soprano Marija Dinov Vasic- piano Program- List, Rahmaninov, Konjovic Admission is free

Amadeus Festival

CONCERTS ORGANIZED BY JUGOKONCERT BELGRADE STRING ORCHESTRA DUŠAN SKOVRAN 11 May, 20:00 / Kolarac, Great Hall Composers’ dialogue: DEJAN DESPIĆ (other composer to be announced) In cooperation with Belgrade String Orchestra Dušan Skovran

CHAMBER MUSIC BY MIRJANA ŽIVKOVIĆ - 75th ANNIVERSARY 18 May, 20:00 / City Hall Performers: Jovana Miladinović, mezzo-soprano; Jovana Jovićević, mezzo-soprano; Natalija Mladenović, piano; Zoran Božanić, accordion; Neda Arsenijevic, flute; Borislav Čičovački, oboe; Aleksandar Tasić, clarinet; Ivan Jotić, bassoon; Milan Roksandić, horn; Edit Makedonska, violin; Dejan Božić, violoncello; Srđan Palačković, percussion; Ivan Marjanović, percussion; Siniša Jove, percussion

HECTOR BERLIOZ – THE DAMNATION OF FAUST, stage performance 22. May, 20:00, Sava Center Conductor Gabor Hollerung For soloists, mixed choir, male choir, symphony orchestra and ballet ensemble Director: Zoltan Ballazs; Soloists: Bernadette Wiedemann (Marguerite), Michael Sutner (Faust), Evert Sooster (Mephistopheles), Peter Kalman (Brander)

CONCERTS IN ART CENTER GUARNERIUS THE PEAR-SHAPED CONCERT - HAPPY BIRTHDAY SATIE! Monday, 17 May 2010 at 20:00 THE PEAR-SHAPED CONCERT HAPPY BIRTHDAY SATIE! Pianists, students of FMU, from the class of Nada Kolundžija, with guests Program: Satie, Satie & Satie Ticket: pear or Williams brandy

MILENA ĐUKIĆ, violin Thursday, 20 May 2010 at 20:00

15 May / Great Hall, 20:00

Program: Marić, Prokofiev

Concert- Music School Slavenski

SILENCE AND NOTHING Saturday, 22 May 2010 at 20:00

18 May / Great Hall, 20:00 Big band RTS (Serbian Radio and Television)

24 May / Great Hall, 20:00 Mladen Djordjevic, trumpet Aleksandar Serdar, piano

26 May / Music Gallery, 18:00 Music workshop- Concert of the winner of

Program: Ligeti, Cage, Webern, Glass, Pert, Berio

EXHIBITIONS CARRY ON, ALEKSANDAR CVETKOVIĆ

11-26 May / Gallery 212, Vlajkovićeva 25 Paintings and Objects www.galerija212.co.rs

WOMEN, VIDAK RADMILOVIC Gallery HAOS, Dositejeva 3 / Through May 7 MIODRAG DADO ĐURIĆ – RETROSPECTIVE EXHIBITION 11 May- 11 June

ANA STANIĆ Sava Center, Great Hall / 20 May Pop and rock singer and musician of the younger generation.

DANCE LORD OF THE DANCE Sava Center, Great Hall 17 and 18 May, 21:00 Lord of the Dance is an Irish musical and dance production created, choreographed, and produced by IrishAmerican dancer Michael Flatley, who also took a starring role. The music for the show was written by Ronan Hardiman

OPERA EUROPEAN OPERA DAYS 8-9 May 2010 / Madlenianum Opera and Theatre

Exhibition will present new paintings by significant Serbian painters Trente têtes couronnées

CLUBBING ARMAND VAN HELDEN 01 May, 22:00 / Expo Center HERNAN CATTANEO 1May, 22:00 / Student Cultural Center Progressive House, Deep House, Funky House, Tribal House, Minimal House, Tech House, Electro House, House, Breaks, Techno

DAVID GUETTA 08 May, Belgrade Arena

POP, ROCK VAYA CON DIOS Sava Center, Great Hall / 03 May, 20:30 ARSEN DEDIĆ Sava Center, Great Hall / 09 May, 20:30 Croatian singer, songwriter, and musician of the older generation (born in 1938). He became a household name in the 1960s, thanks to pop music festivals and his brand of music, which was at first influenced by Dalmatian folklore, but is mostly comparable to the French chanson genre. Throughout the decades Dedić became one of the most respected musicians in the former SFR of Yugoslavia and has maintained this reputation to this day.

Saturday, 8th May at 13:00 “Opera – a universe bridge between cultures”. Program: Opening speech by Mr. Eduard Ille (Chair) Exhibition and sale of various handmade articles stemming from our guests’ national heritage, which will also include an exhibition of naive paintings. Workshops during the day.

FILM SPANISH METER 2010: FOR A HANDFUL OF HOPE Organizers: The Belgrade Cultural Centre and Instituto Cervantes in Belgrade: Friday, 14th May 21:00 The Dancer and Thief / El baile da la Victoria Saturday, 15th May 19:00 Under the Stars / Bajo las estrellas, dir. Felix Viscaret 21:00 El Calentito, dir. Chus Gutiérrez Sunday, 16th May 19:00 Go Away from Me / Vete de mi, dir. Victor Garcia Leon 21:00 The One-Handed Trick / El truco del manco, dir. Santiago Zannou Monday, 17th May 19:00 Casual Day, dir. Max Lemcke 21:00 The Field of Stars / El prado de las estrellas, dir. Mario Camus Thursday, 18th May 19:00 Eight Dates / 8 citas, dir. Peris Romano, Rodrigo Sorogoyen 21:00 The Good Life / La buena vida, dir. Andrés Wood.

Sunday, 9th May at 19:30 Opera “Mandragola,” by Ivan Jevtic, Serbian composer living and working in Paris.

ART MUSEUM NIGHT Belgrade, 15 May, 18:00- 02:00 And Novi Sad, Kragujevac, Valjevo, Sremski Karlovci, and many other towns in Serbia

CorD 71 / May 2010 65

CULTURE NIGHT OF MUSEUMS 2010

AN UNFORGETTA By Jelena JOVANOVIĆ ne of the most popular spring cultural events, the Night of Museums, will be held on May 15th and will connect more than 40 cities in Serbia. In only one night, from 6 p.m. to 8 a.m., 150 cultural institutions in Serbia will open their doors to visitors to present different museum and gallery expositions, performances, concerts, etc. The Night of Museums, an event which has existed in Europe since 1999, first started in Belgrade in 2005 and has been taking place throughout Serbia since 2005. Since 2006, at the invitation of the French Ministry of Culture, the Serbian Night of Museums has officially become a member of the European Association of Nights of Museums, whose sponsors are the European Commission and UNESCO. The founder and the organizer of the Serbian version of this European event is the art- production group ‘Night of the Museums.

Especially for this event, the new Belgrade Museum of Sports and Olympics will hold its opening night

From the new Museum of Sports and Olympics, the Zsolnay jewelry exhibit in Novi Sad, the exhibition of traditional folk garments and unusual wedding customs in Loznica, to an authentic 19th-century inn in Sremski Karlovci 66 CorD 71 / May 2010

HISTORY In Europe, the first Night of Museums was held in Berlin in 1997. The idea to open the doors of numerous museums and galleries in the city in a single night to allow the visitors to see everything they might be interested in with a single ticket soon became an attractive and accepted concept. Also memorable is the Parisian Night of Museums, first held in 1999. After that, the concept of the Night of Museums has been constantly growing, gaining more members each year. Today, 120 cities all over the world participate in the Night of Museums. Last year over 1900 museums in 42 countries were included in this event. The most massive Night of Museums is in France, and the Serbian Night of the Museums is, according to the organizer, second in Europe by the number of visitors. NATIONAL CULTURAL HERITAGE This year, on May 15th, the programme in Belgrade will take place on more than 70 locations, in Novi Sad on 40, and in Šabac and Valjevo on nine. Other cities- Subotica, Svilajnac, Bela Crkva, Loznica, Sremski Karlovci, Zrenjanin, Aleksandrovac, Kragujevac, Niš, Bor, and Zaječar will participate. Since its foundation, the focus of the Night of Museums has been to present national cul-

ABLE NIGHT OUT In Belgrade this year the content of events will be arranged in 7 city zones tural heritage and popularize museums and museum exhibitions. This unique event is also an opportunity for visitors to see all exhibitions, including new, imaginative ones, and areas that are usually closed to visitors. The founder of the Belgrade Night of Museums, Ana Jovanović, stated during the presentation of the 7th edition of the event in Serbia that the characteristic of each Night of Museums is to be different and unique. “I sincerely hope that visitors will recognize that this year. Wherever they are on May 15th, they will have the chance to experience a cultural heritage presentation.” EXHIBITIONS AND CONCERTS In Belgrade this year the content of events will be arranged in 7 city zones. An exhibition on the doll manufacturing from the 19th century. A new exhibition in the Museum of Science and Technology will be presented, and especially for this event, the new Belgrade Museum of Sports and Olympics will hold its opening night. The house of Đorđe Vajfert, as well as the ‘kazamat’ (underground halls and dungeons) of the Military Museums, will be opened. A musical programme and concerts on several locations around the city are planned, and some of the included bands are young Belgrade bands- Intruder, Zemlja Gruva, Inje, and Sevdah Baby, for example. MUSEUM IN THE OPEN Visitors of the Night of Museums in Novi Sad will be able to see what a typical street in Vojvodina looked like at the beginning of the 19th century, view famous Hungarian Zsolnay jewelry, and observe unusual sculptures and objects on water. A programme ‘The Archeologist as a Detective’ was thought-out as a prize contest. In Šabac, an exhibition of photos of old photo shops in Šabac will be presented. Subotica will organize a visit to atheatre currently under construction and an all-night screening of video footage of the most popular theatre plays. At the same time, the new look of the City Museum in Subotica will be revealed and a concert of Jozef Nađ will be held. Although it does not have a museum of its own, Svilajnac will join this event for the first time this year. Within a programme called ‘Following the Traces of the Reseva Museum,’ the main street in Svilajnac will become a museum in the open.

HALF A MILLION MUSEUM LOVERS

ince the first Night of the Museums in Belgrade, which was held in 2005 in five museums and had 4,000 visitors, this event has been constantly growing. Last year it was held on 160 locations in cities all over Serbia and was visited by half a million visitors, 300,000 visitors in Belgrade alone. BELA CRKVA AND LOZNICA This year for the first time, Bela Crkva will join this event. Visitors of the Night of Museums will have the opportunity to learn everything about the Nera River, Romanian culture present in this area, theatre life, and old costumes and theatre plays. The small town of Loznica, known in Serbian culture as a district where the language reformer, Vuk Karadžić was born, is also participating in this event for the first time this year. WINE AND VERMOUTH TASTING In Sremski Karlovci programmes will take place on 21 locations. Programmes will incorporate bee products, wine, and vermouth made in this area, as well as a tour of wine cellars. In Valjevo, during the Night of Museums, the remodeled Nenadović house and the premises of the Valjevo City Museum will be opened. The organizers are expecting more visitors than last year and an even bigger interest for all kinds of attractive exhibitions. Sponsors of the Night of Museums are the Ministry of Culture of Serbia and the Secretariat for Culture of Belgrade. The entire preliminary and executive organization is done by APG ‘Night of Museums’. This event was supported by town halls of the participating cities, numerous cultural centres, and embassies. The general sponsor of the event for the fourth time in a row is ‘Telekom Srbija.’ CorD 71 / May 2010 67

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RESTAURANT

AMPHORA FLOATING RESTAURANT

WHERE THE DANUBE KISSES THE SKY

The restaurant is elegant and contemporary, not ﬂashy and pretentious. It is suitable for business, casual, and family gatherings By Jelena MICKIĆ Photo Slobodan JOTIĆ s someone who spent her entire childhood on the Danube, and who recalls fond memories at every mention of the river, the news that the well-known and thoroughly refurbished floating restaurant Amphora had reopened for business was something that I had to check out in person. That is why one lazy Wednesday afternoon my companion and I strolled along the Danube and reached Hotel Yugoslavia, which used to be the best hotel in town a long time ago. Then, after descending several short steps towards the water we enthusiastically embarked on our new gastronomic journey.

72 CorD 71 / May 2010

I had been to the old Amphora for coffee and drinks on several occasions and remember it as an upscale café/restaurant. After having been completely redone, this place now has a refreshed concept and has become an elegant and spacious restaurant that still has several tables and a sofa for a coffee/ drink and chitchat too. After being greeted by the welcoming staff, we entered an open space with a metal/glass installation representing a grape vine. Most dining tables line either the river bank or the water side of the restaurant. The interior is done in simple but elegant chestnut-brown wood, while two other focal points in the room are a real fireplace and a painted ceiling that recalls skies depicted in Baroque paintings. Furniture, tableware, and other details are carefully se-

with raw red peplected, and the same can be said for the dishes on the menu. per, and kackavalj It is not easy to define precisely the type of cuisine served in cheese, and baked on Amphora. Fusion would be too bold a statement, so let’s call it mashed potatoes in a free-style mix that can be experienced in some newer, more earthenware. When modern Belgrade restaurants. The food is actually a combinaserved, the meat was tion of traditional Serbian fare, mostly meat dishes, and sevtopped with kajmak, eral continental and Mediterranean choices we are all very fatoo. Although rich miliar with, with the addition of interesting and usual touchin calories, the dish es created in mostly fruit sauces, and sea food delicacies. The was not too heavy, menu is comprised of cold and hot starters, pasta dishes, and and the chicken risottos, while the meat list includes Karadjordjeva steak and was nicely cooked, a traditional beef steak, among other choices. The selection whereas the mashed of fish is limited, but then this is not a fish restaurant. On the potatoes were neuwine list you can find the most notable Serbian wine productral and much too ers, with the addition of several foreign ones. mashed for my taste, We started off with excellent domestic quince and apricot so they lacked the brandies from Kovilj Monastery, the restaurant’s cream cheese much-needed russpread, and a selection of breads. The cheese spread was mild, tic and chunky texenriched in taste, colour, and texture with sweet paprika, spicture in order to cores, and bits of grilled red pepper, while the fresh and warm respond better with bread assortment included whole grain pumpkin seed, cornthe meat. Both servings were big enough for two. bread, and olive breads, small cornbread muffins, and tortilThough I always take note of the dessert list in a restaurant, la strips. After these tasty bites we were ready to order a plate I usually skip it and head off somewhere else for a short esof hot soup: a veal one, for my companion and a mushroom presso instead. It’s only if I really enjoy the whole restaurant potage for me. The soups came steaming hot. Mine was actuexperience that I stay in the same place for coffee. My comally served in a crispy, oven-kissed bowl of bread with plenty panion and I were having of mushroom slices. Not only It is not easy to deﬁne precisely the type of such a good time at Amphora did it look attractive, but was very tasty too. Do be aware cuisine served in Amphora. Fusion would be that the decision to stay there not only for coffee, but for when ordering the potage that too bold a statement, so let’s call it a freesweets as well came natuit is actually a very generous style mix that can be experienced in some rally. Pancakes gratinée and portion in itself, and can easnewer, more modern Belgrade restaurants chocolate soufflé were highily feed two. As for my comly recommended to us, but panion’s veal soup, it was the we opted for something lighter, a fruit flambé, spiced with most delicious soup we’d tasted in a long time. With nicely aromatic cloves and chilled, topped with a scoop of raspberchopped veal and carrot cubes, sprinkled with parsley, the seary ice cream. The hot and cold combination of slightly alcosoned-to-perfection soup was a delicate salty and tangy pepper holic fresh fruits and prunes was the perfect finishing touch balance. Whoever was in charge of the soup has an exquisite to our highly pleasurable afternoon. gift for flavours and nice seasoning. Our compliments. Amphora is a place that is run smoothly and that is noticeaAfter a more than a satisfying and enjoyable starter we felt ble. The staff is very professional and our waiter was not ona bit indecisive about what to choose from the menu, and so ly sincerely polite and helpful, but a good listener and very we consulted the waiter. Carefully listening to our preferencknowledgeable about the food he served us. The restaurant is es and tastes, his recommendations were chicken “Djavolja elegant and contemporary, but not flashy and pretentious. It Varos” for my companion and Mediterranean lamb for me. is suitable for business, casual, and family gatherings. There As I had been reading an excellent biography of Elizabeth is a buffet lunch offer on weekends at a reduced price and Davis, who introduced the Mediterranean cuisine and flais free for children under eight. The prices for the à la carte vours to the British, I was more than eager to try out somemenu are very affordable and significantly less than in most thing that is Mediterranean, but not in the mainstream way. upscale Belgrade restaurants. It is certainly worth making The lamb meat was soft and young, taken from the ribs, the effort to come to this part of town for a high-quality meal stuffed with pork, rolled in bacon, and baked with potato, carand excellent service. Until my next restaurant review, you rots, and herbs in an earthenware dish. Fresh cherry tomatoes might like to listen to the great hit from the 80s, “Show Me and young and mild kajmak were added when the lamb was Where the Danube Kisses the Sky.” served. The chicken rolls were wrapped in prosciutto, stuffed CorD 71 / May 2010 73

LIFESTYLE & LEISURE

FISHING

SERBIA’S MOST

ATTRACTIVE

FISHING GROUNDS There are 94 fish species in Serbia, which makes it one of the richest areas in fish species in Europe. 79 fish species are said to be indigenous to the river Danube and its watershed 74 CorD 71 / May 2010

he largest freshwater fish in the world – wells – is abundant in Serbia’s rivers and lakes. There are historical records that the wells used to grow up to 400 kg, but nowadays specimens over 80 kg have become rare and the average weight is usually about 1 kg. The most attractive fishing grounds in Serbia for wells fishing is the Danube (especially in the Iron Gates Gorge), Morava, Tisa and a number of lakes. The best baits for wells are leeches and earth worms, but the biggest specimens are caught on live minnows and pieces of dead fish. The best spots for catching zander are on the Danube around the town of Novi Sad and in the Iron Gates Gorge. They are usually caught on wobblers and silicon minnows. Pike is abundant all over Serbia, especially in canals and ponds in Vojvodina. The best baits are all sorts of streamers and spoons, but the biggest fish is caught on live minnows. Danubian salmon has become rare in the past years, but the Drina still holds a fairly good population of this fish. Carp can be found all over the country, usually in larger rivers, such as: Morava, Tamiš, Danube, Tisa; but it is the most numerous in shallow lakes and canals. Some of the best lakes for fishing trophy carps are: Srebrno Jezero, Ada Safari and all the lakes in the Fruška Gora Mountain. The best bait for catching carp in Srebia is corn. Bighead has become very common in Serbia’s big rivers and catching a 10 kg fish is not unusual. They usually weight about 2-3 kg, but specimens over 30 kg have been recorded. The best places for catching them are: the Sava River (especially around Belgrade), the Danube and Tisa.

APATIN TO MONOSTOR Located along the left bank of the Danube, it is the paradise for the fishermen! On 5.560 ha, 50 fish species, of which the trout, the carp, the pike and the pike perch. Many sporting competitions.

is connected to the river itself via two streamlets and is a real fishing haven.

THE DANUBE RIVER In Serbia, the ‘big and blue’ Danube River is mostly a lowland river, with quite wild and untouched shores in some sections. The following fish are the most popular: carp, perch, catfish, pike, and all species of socalled ‘white fish.’ Fishing in Golubac is allowed throughout the river’s length (3 kilometres). Two types of fishing are popular in Kladovo: • Sport fishing (various dry land fishing techniques) – white fish, perch (using live bait or silicone lure bait) • Professional net fishing – catching catfish with a so-called ‘bućka’ (a flat wooden stick used by fishermen to attract catfish by hitting water with it), as well as via other traditional types of fishing in the Danube River. Beška is suitable for sport fishing. The water here is between 15 and 20 metres deep, and there are many estuaries, river islands, and floodplains.

THE GREAT MORAVA RIVER THE DRINA RIVER The Drina is known for having the biggest examples of huchen (Danube salmon) in Europe, with some even weighing 30 kilos. Other salmon-rich waters in Serbia are nearby. The rivers Samkovka, Tara, and Rača are ideal locations for trophy or recreational fishing.

THE SAVA RIVER If you are into sport fishing on Sava River, then the river’s two meanders, Zasavica and Obedska Marsh, are the best places for it. Zasavica is one of the few well-preserved marsh areas, located 60 kilometres south of Belgrade. The Obedska Marsh is just 30 kilometres from Belgrade. This is the meander of the Sava River which

Areas around Jagodina, Smederevo, and Velika Plana are all suitable for sport fishing. There are also two attractive lakes – Predorsko Lake and Bagrdansko Lake. The first one is popular with sport fishermen who usually engage in so-called CART carp fishing. In the area around Smederevo, fishermen usually fish near the riverbed, using leads, since the river is quite fast and fishing is more difficult than in the rest of the Danube. They usually fish for barbel, catfish, perch, and other white fish.

THE TISA RIVER The Tisa runs through Banat and Bačka and is a real lowland river – wide and seemingly slow. It is rich in various fish species and attracts many fishermen. The most popular fish here are carp, ide (orfe), big catfish (fished CorD 71 / May 2010 75

LIFESTYLE & LEISURE

with ‘bućka’), and some quite rare species like barbel and sterlet. Aside from this mysterious and mostly unexplored river, there are river beds that are full of pike, white fish, carp, grass carp, silver carp, and other fish.

THE EMPEROR’S MARSH (CARSKA BARA) This marsh is situated between the rivers of Begej and Tisa, and covers an area of 1,700 hectares. The diversity of this natural reserve’s life and the mix and match of the river, marsh, swamp, field, morass, and forest ecosystems make Emperor’s Marsh a unique place in this

Lakes Some of the best lakes for ﬁshing trophy carps are: Srebrno Jezero, Ada Safari and all the lakes in the Fruška Gora Mountain 76 CorD 71 / May 2010

part of Europe. The area is an excellent location for hunting tourism (the wider area of Ribnjak), with especially designated areas for sport fishing.

ADA SAFARI, ADA CIGANLIJA www.adasafari.co.rs The Sava Lake on Ada Ciganlija is situated virtually in Belgrade. The lake has very rare, trophy species of fish of strictly controlled quality. Fishermen are given 40 or so numbered locations for fishing from a tidy shore. The lake bed is muddy and sandy, and the lake itself is full of carp, Prussian carp and tench, also known as doctor fish.

BELI RZAV LAKE Beli Rzav Lake (or Zaovine) is located on Tara Mountain, some 30 kilometres from Bajina Bašta. The lake is surrounded by lavish vegetation, and has crystal clear water which doesn’t leave anybody indifferent, especially fisherman. The lake is rich in chub, catfish, pike, and trout.

PERUĆAC LAKE Perućac Lake is located 13 kilometres from Bajina Bašta. The rugged shoreline and authentic canyon are lovely to look at, but difficult to reach. Fishing is usually done from a boat or small stilt houses dispersed all over the lake shore. The lake is full of carp, catfish, nase, and butterfish, and an occasional large trout.

TRESETIŠTE LAKE The appeal of Tresetište Lake lies in its unique combination of sand and water. The lake is located in a protected area of the Subotica Sands and is exceptionally clean, with many sport and tourist activities going on. The carp and grass carp here weigh between 15 and 12 kilos, and sometimes even more.

VLASINSKO LAKE Vlasinsko Lake was created following the construction of a dam on the Vlasina River. The lake is situated at an altitude of 1,214 metres and is a real oasis of untouched nature. By raising the water level, many floating islands have been formed on the lake’s surface and this is the lake’s trademark. Aside from trout, other species can be found here, namely catfish, chub, perch, white grass carp, ordinary carp, and Prussian carp.

FISHING LICENCE

he price of a fishing licence, valid in entire Serbia (with the exception of special category waters), in 2010 is 5,300.00 dinars. An angler needs to submit two photographs, (one for the membership card and one for the licence). In addition to the licence, he will get a special booklet for keeping track of his daily catch. At the end of the year, anglers are required to submit their booklets to the relevant river or lake management company. If an angler fails to do so, he will not be issued a licence for the following year. Licences in Serbia are issued by fishing clubs. CorD 71 / May 2010 77

Floating femininity With a display of pastel colors from its Spring/Summer 2010 palette of pastel colours, â&#x20AC;&#x2DC;P.S. Fashionâ&#x20AC;&#x2122; has continued to put femininity in the spotlight. The collection is now more flowing, fresher, and more casual than usual. The models are asymmetrical, with flounces found in the most unusual and unexpected places.

profile

Economy over politics Nataša Trslić Štambak has extensive experience in corporate reputation, ﬁnancial communications, merger and acquisition, and privatisation. She has come to Belgrade as regional manager of Grayling for Southeast Europe.

ataša Trslić Štambak, new regional manager of Grayling for Southeast Europe, arrived at her post in Belgrade with high ambitions and serious experience. “We are one of the top 3 strategic communication consultancy firms in Serbia, Croatia, and Slovenia. From extensive knowledge of our markets in the region, I can say that we have one of the highest client retention rates, measured in years of cooperation and by the variety of communication projects undertaken. Our aim is to build on this track record and grow our business in markets such as Macedonia, Montenegro, and Albania. Key areas of our business expansion will be FDI support, healthcare, and the energy sector,” the new regional manager said for CorD. Nataša took over the regional role in Grayling in February 2010, following her success as country manager of Grayling’s Croatian operation and her good results in many projects implemented across the SEE region. She was promoted only a month after Mmd merged with its sister companies Trimedia and Grayling, thus creating a new global PR, PA, and IR consultancy under the name Grayling. With 10 years in this sector, Natasa has extensive experience in corporate reputation, financial communications, merger and acquisition, and privatisation. Natasa was responsible for overseeing the coordination of public affairs campaigns and corporate communications for several foreign investors in the SEE region.

“My arrival here shows that our region is starting to think about economy rather than only politics and I have noticed increased exchanges of managers and experts between countries of the former Yugoslavia“ Her experience includes advising the Russian oil company YUKOS on the Druzba Adria project in Croatia, handling the merger between UniCredit and HVB on the Croatian and Bosnian markets, as well as consultancy to IKEA in their process of establishing a business in the SEE region. In addition, Natasa is responsible for Grayling’s business development in the SEE region, increasing client portfolios, and developing a team across the former Yugoslavia and Albania. Natasa joined Grayling in 2002 with a background of in-house public relations, previously responsible for communication at a 82 CorD 71 / May 2010

Croatian manufacturing company and a major publishing house. Natasa was also a journalist for several publications including the leading national daily, Jutarnji List. She holds an MA from the Faculty of humanities at the University of Zagreb, Croatia. By assuming a regional role, Natasa moved to Belgrade as the hub for Grayling’s operation in the SEE region. Natasa says that working on different communication projects in the region has increased her gained knowledge about the country, its economy, and client needs. “My arrival here shows that our region is starting to think about economy rather than only politics and I have noticed increased exchanges of managers and experts between countries of the forNataša Trslić Štambak mer Yugoslavia. I am privileged to work with a very talented team, which has superb knowledge of the local market and socio-economic context. My main goal is to expand business and ensure that Grayling Serbia remains the number one choice of all companies who appreciate strategic communication and public affairs.” Grayling, the global public relations, public affairs, investor relations and events consultancy, was launched in January as the world’s second largest independent communications firm. Grayling has 900 staff in 70 offices in 40 countries across Europe, the US, the Middle East, and in Asia-Pacific and is owned by Huntsworth plc. Grayling represents the coming together of three major successful companies – Mmd, Trimedia and Grayling - as one global consultancy which now competes on the world stage offering integrated communications whilst maintaining a strong heritage and local client base in each individual market. In addition, Momentum in the Middle East joins Grayling to form Grayling Momentum and Technology. PR experts Connecting Point Communications in San Francisco also joined, becoming Grayling Connecting Point.