CorD Magazine No.98

Ambassador

Vincent DEGERT,

Costin Borc,

President of the Foreign Investors Council

www.cordmagazine.com

Head of the EU Delegation to Serbia

Steps in the Right Direction

Fostering Good Relations HE Mr. Abolghasem Delfi,

Ambassador of the Islamic Republic of Iran to Serbia

november ‘12 / ISSUE No. 98

It’s Time to Accelerate

interviews opinions news comments events PRICE 300 RSD

Nikola Samardžić, professor at the Belgrade Faculty of Philosophy

No Experience of Democracy In the last two centuries, Serbia has been in more wars than all European states put together and each generation has paid the price Borislav Stanković, Honorary Member of the International Olympic Committee & Honorary Secretary General of FIBA

Sports Have Become Too Professional Borislav Stanković has dedicated all of his life first to basketball and later to the Olympic movement by actively participating in their development and successes

Zorana Mihajlović Minister of Energy, Development and Environmental Protection

Energy Will Move

Serbia Forward

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COVER Zorana Mihajlović, Minister of Energy, Development and Environmental Protection

Energy Will Move Serbia Forward

November 2012

contents

Along with agriculture, energy could be the driving force behind development. We have the potential to be energy-safe, and I am not talking about gas or oil, since we have very little of those to have sufficient energy security. As far as electricity goes, we cannot only be safe but we can even export it. We have a huge untapped potential, and all of the Ministry’s activities will be focused Page 8 on the maximum utilization of this potential and on opening our county to foreign investors

6

It’s Time to Accelerate

Ambassador Vincent DEGERT, Head of the EU Delegation to Serbia

8

Fa ces & Places

66

Spanish

Spirit in Belgrade

Energy Will Move Serbia forward

Antonio Lásaro Gozalo, Director of the Cervantes Institute in Belgrade

Zorana Mihajlović, Minister of Energy, Development and Environmental Protection

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60

70

Steps in the Right Direction

Borislav Stanković, Honorary Member of the International Olympic Commi ttee (IOC ) and Honorary Secretary General of the International Basketball Federation (FIBA )

Costin Borc, President of the Foreign Investors Council

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The Best Serbian Asset Novak Djokovic

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global diary

34

74

R oyal Wedding Fever Sweeps Luxembourg

82

A re you thinking about skiing?

Fostering Good Relations

HE Mr. Abolghasem Delfi, Ambassador of the Islamic Republic of Iran to Serbia

Sports Have Become

TOO profess ional

No Experience of Democracy

Techno Talk

Nikola Samardžić, Professor at the Belgrade Faculty of Philosophy

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ASSISTANT EDITOR: Christen Bradley Farmer, c.farmer@aim.rs CONTRIBUTORS: Rob Dugdale, Mirjana Jovanović, Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Sonja Ćirić PHOTOS: Zoran Petrović, Časlav Vukojičić TRANSLATION: Snežana Bjelotomić PROJECT MANAGERS: Biljana Dević b.devic@aim.rs Nataša Nešić n.nesic@aim.rs Svetlana Okanović s.okanovic@aim.rs Jelena Bulić j.bulic@aim.rs EXECUTIVE DIRECTOR: Ruža Ristanović r.ristanovic@aim.rs

FINANCIAL DIRECTOR: Ana Besedić a.besedic@cma.rs

Budget Review - Bankruptcy OR SALVATION ?

Focus page 40

Business Dialogue

Savings Week and Beyond

GEORGIOS PANOUTSOPOULOS, Piraeus Bank, Assistant Director for Product Development and Marketing and PR

Profile page 90

86

N ew Season for Creative Women and men Fashion

90

T hink like your own customer and Lend a Hand When Most Needed

No Quick Fixes

NIKOLA LAKETIĆ, Director of Avalon Partners

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ART DIRECTOR: Ilija Petrović, i.petrovic@aim.rs

GENERAL MANAGER: Ivan Novčić i.novcic@cma.rs

Focus

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EDITOR: Sasa Marić s.maric@aim.rs

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comment

It’s Time to

Accelerate

I have been working and living in Belgrade for more than three years and this city is undoubtedly a European capital offering a wide range of events, architecture, art, culture and dynamism. In a way not only Serbia is in Europe, but Europe is also present in Serbia

I

t is enough to spend only a couple of hours here to recognise that Serbia and the European Union are natural partners. They are linked to each other culturally, geographically and also in economic terms. Just like the flow of Danube links eight European countries and four European capitals, including Belgrade! It is only obvious that the EU will not be fully complete without Serbia.

Equally for Serbia: its future is undeniably with the EU. Our economies are closely linked: 56% of Serbian trade is with the EU, more than three times higher than trade with any other trading partners. These close links are also reflected in the level of support for the country’s transformation: assistance from the EU and its Member States totalled some EUR 3.7 billion in grants between 2001 and 2011. This is seven times more than the largest non-EU donor, which is, by the way, the United States. The European Union is also the biggest investor with more than EUR 11 billion of investment and is also contributing with 7 billion in loans to Serbia’s development.

In March following a first series of reforms Serbia has gained its status of candidate for accession to the European Union. Now its time to move ahead with renewed ambition and perseverance!

In this regard the annual Progress Report on Serbia just recently published by the European Commission should serve as a roadmap. The report is indeed looking factually and objectively at the progress or the lack of progress made in the last 12 months until September 2012.

While some ground has been covered in spite of the pre-electoral and post electoral period, it is clear that a number of challenges lie still ahead in order for the country to advance on its EU path To move to the next stage in the process, that is the opening of negotiations, Serbia needs to tackle one single key priority; to reengage in the dialogue with Pristina and work towards normalisation. The recent meeting in Brussels with Baroness Ashton is an important step in that direction. Serbia is now expected to implement in good faith all agreements concluded to date, to engage constructively on all issues defined by the European council in particular in the field of telecom, energy and cooperation with EULEX and more in general to take steps towards a visible and sustainable improvement of relations with Pristina. The overall aim of this process is to achieve a normalisation that enables both Belgrade and Pristina at their respective rhythm to move on the EU path and to avoid blocking each other. This of course also encompasses the issues in the North of Kosovo, where the interests of all people living

Ambassador Vincent DEGERT, Head of the EU Delegation to Serbia there must be taken into account.

Next to this key priority, Serbia is also expected to reinvigorate its reform process, notably in the field of rule of law that encompasses areas such as the fight against corruption and organised crime, freedom of expression in the media, respect of minorities and inclusion of all vulnerable groups, as those are still too often victims of discrimination in the society, for example the Roma or the LGBT population. A new and convincing strategy on judicial reform is obviously needed to regain the trust and the confidence of citizens in their justice system. As a candidate aspiring to become a full member, Serbia is of course expected to align further its legislation and practices with the one prevailing in the EU; the recent legislative changes related to the National Bank of Serbia were in this regard a step in the wrong direction and would need to be corrected and avoided in the future.

On the economic criteria, Serbia like several of the EU countries is facing both fiscal and economic challenges; these call for courageous measures to achieve fiscal discipline and restore macrofi-

The overall aim of this process is to achieve a normalization that enables both Belgrade and Pristine at their respective rhythm to move on the EU path and to avoid blocking each other

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nancial stability in order to avoid further deterioration and regain credibility. But Serbia also needs to tackle urgently every postponed structural reform that are critical for Serbia’s long term competitive position: reform of state own companies, finalisation of the privatisation process, improvement of the business environment, structural deficit of both the pension and the health funds… just to mention a few of the most needed ones.

All of the above is challenging but achievable with determination as it was demonstrated by other countries that have gone or are going through the same process. And we strongly believe that the time is now ripe for the new authorities to energise their efforts and to move decisively And as we share the same common objective, the European institutions will remain fully committed to support European Serbia on its EU path and will accompany it politically, financially and technically all along. This is a chance that must be seized. I am confident that Serbia will seize the chance and is ready to reengage in the dialogue and to reinvigorate reforms with focus and determination! ■

interview Zorana Mihajlović, Minister of Energy, Development and Environmental Protection

Energy Will Move Serbia

forward

■ By Mirjana Jovanović Photo: Zoran Petrović

Along with agriculture, energy could be the driving force behind development.

We have the potential to be energysafe, and I am not talking about gas or oil, since we have very little of those to have sufficient energy security. As far as electricity goes, we cannot only be safe but we can even export it. We have a huge untapped potential, and all of the Ministry’s activities will be focused on the maximum utilization of this potential and on opening our county to foreign investors

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or over two decades, not a single infrastructural energy facility has been built and, simply put, the energy system is ruined. Investors are not able to invest since obtaining the required permits takes as long as constructing the facility.

Despite having an ambitious strategy of which very little has been implemented, Serbia is still a land of unregulated landfills. If the plans put forward by Zorana Mihajlović, Minister of Energy, Development and Environmental Protection, come true, next year investors will be able obtain the necessary papers from the Ministry and, in a foreseeable future, Serbia could become a huge building site with many energy facilities under construction. In an exclusive interview for CorD, the minister talks about the Ministry’s plans, the current situation in energy and environmental sector, and announces new projects and a new state strategy for both sectors.

TENT B2

The TENT B2 thermal-power plant was supposed to be connected to the grid in 2007, and we have only now signed a memorandum on its construction.

Recycling

We need urgently to open recycling facilities and regulate landfills, that is, recultivate the existing landfills and open new ones.

■ You have taken over two former departments and said on quite a few occasions that you were not satisfied with the situation that you found there. In a few short lines, could you tell us what has to be changed in order to create the basis for the implementation of strategic projects in these two sectors?

- I have been dealing with energy issues for that past twenty years, and I have always said that energy is the sector that can move Serbia forward, but also inhibits economic growth.

In the previous period, unfortunately energy did the latter.

■ Could you provide arguments to support those claims?

- There wasn’t a single infrastructural energy facility built in the last 27 years. At the same time, consumption of electricity was growing between three and five percent annually regardless of the country’s battling economic crises for years and industry not developing. This means that it was the population that has been paying for electricity consumption. Just think what would have happened if the industry grew! What would happen to electricity then? Our current deficit is 20% and, on top of that, we import electricity during the winter and sometimes even in summer. If we had a developed industry, I am afraid that we wouldn’t be able to produce the needed quantities. What we are talking about is a ruined energy sector where nothing has been constructed for years. There isn’t a single good reason why no hydro or thermal-power plants have been built. The TENT B2 thermal-power plant was supposed to be connected to the grid in 2007, and we have only now signed a memorandum on its construction. The Kolubara B plant could have also been built in 2005 or 2007. I don’t even want to talk about hydro-facilities on the Drina River or small hydro-power plants. Serbia has 900 locations suitable for small hydro-power plants and, for the past 12 years, all 900 could have been built. In terms of gas, we haven’t built gas systems all over the country, although we made a commitment that we would do so.

■ Let’s talk about your dissatisfaction with the environmental protection sector. What are you planning on changing?

- It seems to me that with all of these numerous energy and environmental strategies that Serbia has, we have no results to show for them. No new facilities have been built, no landfills regulated, no new landfills or recycling facilities constructed; we don’t have cleaner water, air or land.

In short, there are several things that have to be changed.

As far as energy goes, we need to launch and build new

Priorities

This Ministry is completing plan that contains investment priorities in the energy and environmental protection sector.

facilities, find new mineral fields, raise energy efficiency and use the resources we have at our disposal: hydro-resources and renewable energy sources. If we are talking about environmental protection, we need urgently to open recycling facilities and regulate landfills, that is, recultivate the existing landfills and open new ones.

■ You claim that a lot more could have been done.

- In just over two months, which is how long we have been in office, it became clear to us that serious investors are interested in investing here. However, they have been put off by bureaucratic procedures and severe problems they had with public enterprises and ministries, as well as with a huge number of permits they had to obtain.

We are going to try to finish some hydro -power plants, like Bistrica, in that way.

Public-private partnership is something that still hasn’t taken off here, since we had to have certain bylaws in place ■ At the beginning of your term in the office, you talked about three strategic priorities – increasing energy efficiency, constructing new facilities and establishing recycling centres. Where is the money for these projects going to come from?

- From several venues. One option is forging strategic partnerships, and this applies mainly to large-scale infrastructural projects. Also, in certain cases Serbia will own a facility, while a strategic partner would provide equipment and render consulting services.

■ Could you give us an example of that?

- We are going to try to finish some hydro-power plants, cordeditorial@cma.rs

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like Bistrica, in that way. Public-private partnership is something that still hasn’t taken off here, since we had to have certain bylaws in place. Now, when we do have those bylaws, we might not need to borrow money to build. Energy efficiency projects can be drafted only by the state. The state, banks and potential investors need to collaborate. I believe that, in the following three to four years, we are going to see the first effects of energy efficiency. We are waiting for the results in that area. For instance, Poland needed 12 years to reduce its consumption of final energy by 20%.

■ You have already mentioned that foreign investors

were interested in investing in other projects apart from energy and environment. This was confirmed at a recent meeting between the Foreign Investors Council

Next year, we are going to have a department in the Ministry whose sole purpose will be to prepare the documents that investors need and the German-Serbian Business Association. Have you already instigated talks about these topics and which key criteria are you going to insist on?

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- This Ministry is completing a very important document on which I have been insisting. It is a plan that contains investment priorities in the energy and environmental protection sector. In this document, projects will be ranked, since one of the reasons that investments here have been insufficient is not having set priorities. Several projects were implemented at the same time without a clear goal.

We know what we want, and I believe that investments will be made much quicker than before. Investors from all over the world – from China and Germany to Russia and Canada - have been expressing their interest in investing here. All of them are waiting for this document to be finished and for talks about concrete projects to start. Chinese investors are interested in Đerdap 3 and we have already had initial talks with them. We are now waiting for a draft memorandum for Đerdap 3 to be sent to us so that we can move on with the project.

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■ Speaking of memoranda, what is the status of the memorandum that was signed with RWE in Germany recently about construction of the Nikola Tesla 3 thermal-power plant and a hydro-power plant on the Morava River?

- A task force has been formed, and we expect them to give us their opinion early next year so that we can proceed with drafting a feasibility study or preliminary project documents. After that, we are going to sign a contract which, in my opinion, is the most important. Once we do that, the project becomes binding for both sides and, until that happens, we can change or add to the document.

■ Even when you sign a contract that doesn’t mean that

we have a favourable investment environment in Serbia that will facilitate investments.

- Because of difficult and serious bureaucratic problems, an investor can lose up to two years in trying to obtain all documents, while, at the same time, Serbia is losing new quantities of heat or electricity. Hence, we are going to finish writing a rule book. Once that is done, we are going to reduce the number of permits required to build a small hydro-power plant from 27 to five or six. Next year, we are going to have a department in the Ministry whose sole purpose will be to prepare the documents that investors need.

So, once an investor wins a public tender and is allowed to build one or five small power plants, he won’t have to wander from institution to institution but will come to the Ministry that will do the job. All of this will be regulated by contracts. It is in our best interest for construction to start as soon as possible. It takes two years to build a small power plant which is exactly how long it takes an investor to obtain all the permits now. While we are wasting time, we are also losing 4.5 million kilowatts of electricity each year.

■ Does the government support your plans for reforming the energy and environmental protection sectors?

- Maybe there hasn’t been enough awareness about the importance of the energy sector in the past, but there is no doubt now that energy is virtually the only sector that can push Serbia forward. What else do we have? I am not talking about gas or oil, since we have very little of those to have sufficient energy security. If we are talking about electricity, we can be safe since we are even exporting it.

We have enough potential, primarily hydro-potential. By endorsing the Memorandum that we have signed with German RWE, the government is also raising awareness about the importance of this sector.

■ A regional energy strategy has been adopted recent-

ly. What do you expect from it and what will the strategy mean to the economy and citizens?

- Only a framework strategy has been adopted. As far as its importance is concerned, everybody in the region finally understands that we need to connect to each other.

Southeast European countries don’t have enough electricity, and estimates have shown that it will take at least EUR 20 billion in investments in order to secure sufficient quantities of electricity. Each regional country has submitted its projects, just as we have submitted the projects for Đerdap 3 and power plants on the middle Drina. Also, at the ministerial summit, where the framework strategy was adopted, each of the countries presented an overview of their energy situations. Apart from that, very important EU directives have been endorsed, one of them being the modulating of statistical data on energy. We undertook to have enough oil and oil products to last us at least 90 days in case a crisis strikes, and we need to do this by 2023. Serbia also undertook to generate at least 27% of its electricity from renewable energy sources by 2020.

■ Do you think that we can do what these directives

er plants. We are going to accommodate investors as much as possible in order for them to come here and start building. Very little has been said about modernizing heating plants which are also going to produce electricity.

■ Where will you get money for that?

- Through opportunities offered by public-private partnerships. In terms of how high the investment is going to be, that will depend on what fuel the heating plants use. We estimate the figure to range between EUR 10 and 100 million.

■ How can we improve energy efficiency?

- There are plenty of opportunities to do that! Our task is to encourage investors to use technology that is energy efficient. Households cannot do that by themselves so we

want us to do?

- We can and we have to if we are serious about tackling the aforementioned problems. If we don’t do that, without a grid or relevant facilities, we are going to be excluded from the energy transit.

■ When are the projects from the regional strategy going to be implemented and which countries are Serbia’s project partners?

- We have already been talking with the Republic of Srpska and Montenegro which are our natural partners. We have been discussing the projects on the mid-stream Drina with the Republic of Srpska. This is already stipulated in the energy treaty that we have signed with Italy and which is supposed to be ratified soon. With Montenegro, we are probably going to cooperate on the Brodarevo I and Brodarevo II projects, but I will be able to tell you more about that once we discuss the details.

■ In terms of the pace at which the energy sector should

develop, which investment projects could be realistically implemented in the next three years?

Everybody in the region finally understands that we need to connect to each other. Southeast European countries don’t have enough electricity, and estimates have shown that it will take at least € 20 billion in investments to secure sufficient quantities of electricity

are going to try to financially help them, as well as educate - It is realistic to expect that the construction of the them about the importance of energy efficiency. We are go700-megawatt TENT B3 thermal power plant will start within that period. We are going to find out soon whether ing to conclude certain financial arrangements with banks Edison will sign an agreement on construction of the Kolso that we can help people to use energy rationally in their homes and at work. ubara B thermal power plant and start with the works.

Also, it is realistic to expect not only a memorandum but also a The South Stream contract to be signed on the conCurrently, we have only one gas delivery route (Russia-Ukraine-Hungarystruction of the Đerdap 3 hydroSerbia) and this poses a serious problem for our gas security. The gas transit power plant, as well as the Bisfee that we pay to Hungary is very high and that is on top of the price of trica hydro-power plant. Also, we the gas. As soon as we get another gas delivery route, thanks to the South have projects to be implemented Stream, it will become possible for certain fees, like the transit fee that we on the mid-stream Drina for pay to Hungary, to be drastically reduced. By doing so, the price of imported constructing four hydro-power gas will be lower so we will be able to invest more money in gas systems installation in the country. plants. On top of that, there are Gas is cleaner than coal, but, at this moment, we are paying a high price for it. projects like building small powcordeditorial@cma.rs

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■ From everything that you have said we can conclude

ing so incentivising?

that your plans are pretty ambitious. Do you think that Serbia has enough professionals to implement all of those projects?

- Because of the red tape and quiet resistance from Electric Power Industry of Serbia (EPS). If you have privileged independent energy producers, EPS is obligated to sign a contract with them that will stipulate buying energy according to the said feed-in tariffs. This hasn’t been done in order for EPS to maintain a monopoly. That is going to change, and we are not only going to have cleaner energy, but also force EPS to be more efficient because of the competition.

- Our ministry is open to people with the know-how and experience. There are such people in Serbia and they are welcome to come to us.

■ As you said, one of the priorities is opening recycling

facilities and reducing harmful gas emissions. This entails education and big investments. How are you going to approach this problem?

- The current strategy has proved to be too optimistic, which can be seen from its results or rather lack thereof. Out of 27 recycling centres, only four were opened, and out of 30 landfills that were supposed to be recultivated, only three have been recultivated and two built. These are very disappointing results achieved in the last six years. We want to build five regional landfills in the next two years. We are going to talk to local authorities in order to find partners for public-private partnerships. It is important to use the best possible technology, to avoid bank loans, and for the landfills to be profitable both for investors and the towns.

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■ EPS is the biggest financial loser in Serbian economy

if we consider that accumulated debts have been reducing the company’s value year-on-year. How are you going to resolve the problems in this company?

- The two biggest public energy enterprises – EPS and Srbijagas – have sustained huge losses and have big loans to repay. You cannot tell which one is worse, but EPS has a better chance of recuperating since it produces electricity. With every new facility, EPS should do better. We are not going to sell these companies, but we will try to reform and restructure them. We are working on the incorporation of EPS by consolidating the management in order to save money and to have a clear picture of who does what in the company. This will cover everything ■ What plans do you have for genfrom public acquisitions erating electricity from We need to review the subsidies to minute details. We renewable energy sourcfor investors who are investing in think that we can save at es? The hot issue right now is reducing feed-in renewable energy sources since the least 15% to 20%. Finally, electricity price needs tariffs. current policy hasn’t yielded results the to change, but only when - A feed-in tariff offers the state finishes what it has set out to do: change the tariff long-term contracts to producers of electricity from small system and social map. As of next year, we can start talking hydro power plants, biomass facilities, solar energy, wind about a more realistic price of electricity. and biogas. These contracts are valid 12 years from the beginning of production. By having feed-in tariffs, countries, including Serbia, stimulate investments in renewa■ EPS keeps on saying that the company would be more ble energy sources. Due to the crisis, many countries have efficient if the electricity price was more commercial. abolished these tariffs. We are going to re-examine ours, What do you think about that? and we are probably not going to reduce them. We might - Analyses conducted by several globally renowned conreduce the length of the contracts. We need to review the sultancies have shown that the price of electricity makes subsidies for investors who are investing in renewable up only 40% of the company’s problems. Other problems energy sources since the current policy hasn’t yielded repertain to its efficiency. We can have any price we want as long as the people can pay it. Also, a billion euros in sults. No solar or wind power plants have been built in the liabilities pose a problem. We are going to try to have inpast period. However, we are going to increase the preferential quotas for manufacturers of solar and wind energy terest rates written off. Nevertheless, everybody should since the existing ones have already been reserved. understand that electricity and gas bills have to be paid.

We are going to allow people to pay their bills in instal■ So, why have no investments been made in renewments, but we are also going to insist on payments being made on a regular basis. ■ able energy sources despite the feed-in tariffs be-

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interview Costin Borc, President of the Foreign Investors Council

Steps in the

Right Direction “It is necessary to move reforms from the production of laws in the Parliament towards their transparent and consistent implementation by an efficient public service. Moreover, the authorities need to involve the business and civil sectors in the reform process and organize timely consultations in order to prepare both market and society for the upcoming changes”

S

erbia’s economic barometer has been, for the past ten years, the White Book of the Foreign Investors Council (FIC). In this interview for CorD, FIC President Costin Borc speaks candidly about the various successes and shortcomings of efforts to shore up the Serbian economy all the while reiterating the dual mantras of predictability and transparency as being vital for progress.

■ The tenth edition of the “White Book” compiled by the

Foreign Investors Council (FIC) was presented in mid– October. Could you tell us about the key changes that happened in business environment in the last decade?

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- First, we at FIC believe that a lot has been done in the past decade, and the Serbian market is far more competitive than it was ten or twelve years ago. Nonetheless, we believe that more could have been achieved and that reforms could have been executed at a faster pace. In terms of achievements, Serbia introduced the pillars of market economy 98 November 2012

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and to a large extent harmonized its laws with EU regulation. However, issues that Serbia has not yet properly addressed pertain to strong structural deficiencies, an unfinished privatization process, unsustainable public finances and inefficient state administration. All these elements impact economic development.

■ During that period, which reforms could have and

should have been more intense and with which ones are you especially satisfied?

- We advocate the acceleration of reforms in general with the dual goal of improving business conditions and bringing Serbia closer to the European Union. Looking back over the years, from FIC’s foundation, we can say that a significant number of FIC proposals have been accepted. Serbia has finished the first part of the transition and we are satisfied with the fact that in the previous period, the largest part of the legal framework was adapted to EU acquis as part of the EU integration process.

Proposals

Looking back over the years, from FIC’s foundation, we can say that a significant number of FIC proposals have been accepted.

Recommendations

One of our key recommendations is the enactment of important bylaws to complement recently adopted laws.

■ At the presentation of the White Book, you said that Serbia was a good place to invest and that it had a qualified and professional workforce. Do you think that that is the only advantage that Serbia, as an investment destination, has over other regional countries?

Charges

We expect going forward the introduction of safe-guard measures to block the accumulation of new parafiscal charges.

plementation of adopted legislation, which has led to an increased level of uncertainty and a lack of predictability in this important field. Starting from the lack of systemic and consistent support in infrastructure investment and subsidies programmes, through the speedy adoption of horizontal legislation without an appropriate consultation process, to a lack of implementation of adopted regulations or followthrough with relevant bylaws – these have all contributed to the uncertainty being faced by all those operating in the agricultural sector. Therefore, one of our key recommendations is the enactment of important bylaws to complement recently adopted laws.

- A qualified and professional workforce is certainly not the only advantage of Serbia, but it is an important one. Sustainable profitability of any company cannot be achieved without good quality human capital. Also, in times of economic crisis, human capital becomes increasingly important. Although the labour market demand has decreased, resulting in fewer job opportunities, the retention of key personnel is more than ever in the focus of HR professionals as something which is vital for surviving the crisis. It can be said that Serbia compares relatively well with its neighbours, but it is not only with neighbours that Serbia competes. Serbia gains advantages from its well-developed frame of free-trade agreements, not only within the region through CEFTA, but also with Russia, Ukraine, Belarus, Turkey and EFTA countries. All things considered, it is a good place to invest if you are a big company, and you are coming with a large investment. Big companies are in a position to cooperate with the authorities to establish a relatively solid framework for business and can negotiate directly and openly. They are less vulnerable, and their voices are better heard. But if you are a smaller investor, there are too many obstacles, such as bureaucracy and stiff competition. As we all know, economic growth cannot be based We believe that a lot has been done in the past decade, solely on big investments, and Serand the Serbian market is far more competitive than it bia definitely needs to do more to was ten or twelve years ago. Nonetheless, we believe become more attractive for small that more could have been achieved and that reforms and medium sized businesses.

■ You have also mentioned sev-

could have been executed at a faster pace

eral sectors with a great future like industry and agriculture and said that a stable and predictable business environment was needed for big investments. This is not the first time that we have heard that. The question is: what does that mean for those sectors?

■ One of the FIC’s demands, which is also not new, is the

- I can give a concrete example related to the agriculture sector. Namely, agriculture has been cited by most governments in our recent history as a development opportunity, an export-boosting sector, and a source of competitive advantage in the region, and all governments have declared their dedication to agriculture as one of their priorities. Unfortunately, a strong dedication to maintaining agriculture high on the agenda did not follow these announcements.

We have seen frequent policy changes and altered subsidy programmes, coupled with a lack of consistency in the im-

- The biggest obstacle for foreign direct investment in Serbia, apart from the euro-zone crisis, is this lack of predictability in the business environment. Issues pertaining to inadequate law implementation, too much bureaucracy and an inefficient public sector remain the key obstacles to more investments. It is necessary to move reforms from the production of laws in the Parliament towards their transparent and consistent implementation by an efficient public service. Moreover, the authorities need to involve the business and civil sectors in the reform process and organize

demand for the creation of a predictable business environment. What do you and your colleagues think of this environment today and how much does “unpredictability” affect business operations?

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timely consultations in order to prepare both market and society for the upcoming changes. Abrupt changes in the regulatory framework send negative signals to both current and potential investors.

■ What kind of influence does the overall macroeconomic

environment have on investors and how would you describe this environment in terms of business development? How much is this environment stimulating or not?

- Overall the macroeconomic environment is very relevant for investors. In the short run, the support of international financial institutions will be critical to keep the framework under control, and the news that IMF arrangement has not been negotiated does not represent a positive sign. Therefore, macroeconomic environment is not currently stimulat-

making process and also doing away with discrimination between foreign and domestic players. This is specifically important in public procurements, tenders and other statecontrolled activities. One of our key recommendations is a level playing field for all participants in this market, whether foreign or domestic.

■ Immediately after coming to power, the new govern-

ment adopted economic measures which are mainly focused on changing tax laws. What is your view of these changes, the abolishment of certain parafiscal burdens and of the macroeconomic situation in Serbia?

- Firstly, with regard to the changing of tax laws, I would like to be clear: the FIC does not comment on any economic policy issues as it is the sovereign right of the government to develop the policy-mix which would drive economic growth.

Secondly, the recent government decision to abolish 130 parafiscal charges is a step in the right direction, and it is welcomed by investors. Thirdly, the restoration of macroeconomic stability is a must, and synchronized monetary and fiscal policies will be needed to address burning issues of the fiscal deficit and rising public debt, as well as tackling price instability, economic recession and unemployment.

■ You were very vocal about layoffs being inevitable.

What does that exactly mean? What is your prediction of economic tendencies next year?

- I tend to look into the situation realistically, believing that it is the only sustainable way to advance further. We cannot close our eyes and say that the crisis is The biggest obstacle for foreign direct investment over since it is still all around us, and it in Serbia, apart from the euro-zone crisis, is this lack certainly highly influences the economic in each and every country. Beof predictability in the business environment. Issues situation ing in a transition, Serbia is much more pertaining to inadequate law implementation, too vulnerable to the crisis, and unfortunately there are some industries, such much bureaucracy and an inefficient public sector as, for example, real estate, which were remain the key obstacles to more investments severely affected by the crisis, resulting in the bankruptcy of even big domestic players on this market. ing to doing business, and we express the hope that serious This also means that layoffs were inevitable. I think that the structural reforms will be conducted in the upcoming period perception of the bankruptcy is somehow often wrong. We that will help businesses grow and prosper. shouldn’t be afraid of it and should be aware that bankruptcy is happening to companies in Serbia as well as in the rest ■ The Foreign Investors Council wants the government of the world. It is a normal cycle of a company which, at a to continue with structural reforms, transparency and certain time period, does not operate profitably. At the same modernizing state administration. Which reforms are we time, and unfortunately, bankruptcy is not a good situation, talking about and what does transparency in decisionneither for the country, companies nor its citizens; but it just making process mean for investors? happens sometimes. It is hard to predict economic tenden- In order to address the issues in a sustainable manner, Serbia needs to undergo painful structural reforms: tackle cies for next year and in that regard we are waiting to see the current structural deficiencies, finalize the privatization budget for 2013. process, improve the structure and mechanisms of public finances, and, very importantly, create a more efficient state ■ This year, inflation will reach 12%. How much does inadministration. This would lead to a more stimulating enviflation rate affect businesses? ronment for doing business. The most important element - It certainly affects businesses. But let us not forget two is the transparency of the system including the decisionthings. First, companies make long-term business plans in16 |

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cluding predictions of the inflation rate, and, secondly, the question is how much we can influence foreign exchange rate fluctuations? The reality is that we cannot do much regarding that but only to comply with the changes.

■ Government representatives, who took part in a debate

at the presentation of the White Book, said that they were ready not only to cooperate with the Council, but also to apply the suggestions made by the investors. Could you tell us about the cooperation with the government during the past 100 days?

- It is too early to talk about our cooperation, bearing in mind that the new authorities have just recently taken power and they should be given sufficient time to prepare and present their strategies for the next year and the following period. We very much appreciate that high government officials participated at the promotion of the newest White Book and FIC’s 10th year anniversary expressing their readiness to implement our proposals. That being said, the FIC welcomes the positive steps taken to abolish the 130 parafiscal charges, as well as the measure taken by the National Bank to repeal the statutory reserve requirement for financial leasing. We do hope that these are indications of more positive policies going forward. The new government also expressed its readiness to continue the process of EU integration, which means conducting serious structural reforms and working on the improvement of the business environment. In that sense, we look forward to seeing the new government’s economic policy for 2013 and the way it will address major macro and micro economic issues going forward.

■ The Economy and Finance Minister announces new

excise and fee policies. Do you think that investors should be happy with this announcement?

of new mechanisms, such as binding rules, and increasing the capacity of the tax administration to ensure consistent application of the tax regulations. In a nutshell, in order to preserve present investors and attract more investors, Serbia needs to create and maintain predictable tax surroundings, where companies can understand the business conditions under which they operate.

■ Finally, at the presentation of the White Book, you un-

derlined the importance of Serbia getting closer to the EU. How important is that for foreign investors and what does the economy stand to gain from stronger ties with the Union?

- The FIC advocates Serbia’s economic integration into the EU, as it brings predictability and transparency to the busi-

The FIC advocates Serbia’s economic integration into EU, as it brings predictability and transparency to the business surroundings, as well increasing the competitiveness of the Serbian market

- As I have mentioned earlier, the government’s recent decision to eliminate 130 parafiscal charges is a step in the right direction, and we expect further positive developments in this regard. With regards to the announced new excise policies, I believe that the investors in tobacco industry will be satisfied with the mid-term calendar if the calendar itself is in line with purchasing power, thus generating higher government revenues from tobacco as well as allowing for smooth harmonisation with minimum EU requirements in the area of tobacco without a distortion of the domestic tobacco market. It is important to have determined a mid-term excise policy that will bring better certainty to the companies. Better certainty is also important for the tax policy in general. Therefore, regarding tax policy, we have three major expectations going forward. First, we expect going forward the introduction of safe-guard measures to block the accumulation of new parafiscal charges.

Second, and very important, we hope that process of future tax reforms will include consultations with stakeholders.

Thirdly, we hope that the government, and especially Ministry of Finance and Economy, will consider the introduction

ness surroundings, as well increasing the competitiveness of the Serbian market. Its positive aspects are multiple, both in economic and regulatory spheres. The EU negotiation process includes an evaluation of EU economic criteria, where the country needs to demonstrate that it has a functioning market economy and that it is competitive. This means that a number of important economic elements are considered, such as macroeconomic stability, free interplay of market forces, an adequate legal system, state influence on competitiveness, and so forth. This having been said, the EU integration process is a great mechanism to evaluate domestic laws and regulation, their mutual relations, as well as their impact on the economy, citizens and society at large. Also, through the EU integration process, the ability of the state to implement its laws is consistently assessed and how the institutional capacity of the state is built to foster a transparent and predictable environment. Lastly, through this process, the Serbian market will rise in the global competitiveness charts and become more familiar to potential investors. ■ cordeditorial@cma.rs

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exclusive Interview

Novak Djokovic

the

Best Serbian

Asset

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exclusive Interview Novak Djokovic

When several organizations in Serbia embarked on a project of branding Serbia a couple of years ago, they soon realized that nothing would come off it unless the campaign included a twenty-year-old young man by the name of Novak Djokovic who was on a path for the top of world tennis 20 |

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“Believe in your dreams. If you have dreams, don’t give up. Faith is a big word in my vocabulary, even bigger than hope.

In order to realize your dreams, you need to have sincere faith in them! I was dreaming of becoming no. 1 in the world. I dreamt of Wimbledon.

In only two days, dreams became reality. For a long time, I have had these images flashing in my head – images that were clearer than ever before”

S

erbia has always had and will always have champions. Every championship title is a product of talent, hard work, a lot of sacrifice, motivation and mental stability.

Champions are people of special virtues which are constantly validated at sports arenas, as well as in their private lives, their friendships, family, fans and the media.

True champions have always stood out and, apart from winning medals, they have always been recognized for their achievements all over the world and are role models to aspiring athletes.

Novak Djokovic is certainly one of the few champions of today’s world who meets all of the criteria of a great champion by taking a very high place in the history of world sport.

Without a doubt, Novak Djokovic is the best Serbian asset today.

When he visits a nursery in the village of Lešnica on the Drina River, both young and old and half of the citizens of Loznica come to see him. Grandparents bring their grandchildren, while young people have patiently waited on the side since the early morning, eager to see their hero. They just want to say “hi” to him and show just how much he means to them.

When Novak arrives, the people cheer and emotions are running so high that you feel as if the space around you has become condensed.

When Novak comes to attend the consecration of a church in the village of Jasenovo Polje near Nikišić, Montenegro, over a thousand people gather around the church gate to catch a glimpse of him. There are hundreds of people, clutching posters, pens and tennis balls for Novak to sign. Cameras and mobile phones take pictures of him. Everybody loves him. Everybody is cheering.

These people, who are often referred to as “ordinary people”, cannot be fooled.

They can easily spot good, positive, nice, successful and dear things, as well as poor and superficial ones. They have had enough of false authorities from the past. Novak Djokovic is one of the brightest and the best things that has happened to them this decade – they say. Actually, he is the best thing that has happened to Serbia. Luckily, they add, there are many people who have recognized that on time, who understand the greatness and importance of the young tennis player from Belgrade. In return, he selflessly spreads his positive energy around.

Nothing is too difficult for him; he always has a sincere smile on his face and time for other people.

“If you really want to know, love is my motivation. It keeps me on my toes despite the hardships and my obligations,” says Djokovic in an exclusive interview for CorD. the best serbian asset

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Novak received the most prestigious sports award - the Laureus World Sportsman of the Year – for the best athlete on the planet.

The award is given by members of the Academy who are the biggest sport legends of all time

People in need It is wonderful to have been able to help somebody, and, for years, my family and I have been trying to help people in need

What kind of love?

- Love for everything and everybody – says our champion while sinking into a comfortable chair in his room full of trophies, next door to the “Novak” restaurant in Dorćol.

●

● Last year was historical both for you and the tennis world. This year, you played phenomenally. Your results were the best out of all ATP players and, judging by everything that has happened so far, you are going to finish this season as Number 1. When you sum up 2012, what result will you get?

- Bearing in mind that, last year, everything went my way at tournaments and that I usually returned home with a trophy in my hand, it is logical to think that there were great expectations as far as this season goes and great pressure exerted primarily by media and the general public as they contemplated whether I would be able to repeat the last year’s success. From the get-go, I was very aware that those results were special because they don’t happen all the time, so I did not put additional pressure on myself trying to fulfil other people’s expectations. I just set myself different goals and played my game accordingly. I am happy that I was able to put up a good fight and impose my game style in most matches. I failed to fulfil completely some of my goals, like Roland Garros, Wimbledon and the Olympics, but I did learn some valuable lessons, and I am ready to use them at the first given opportunity. ● You have been doing charity work for a long time and your foundation was established in 2007. Was the recent charity dinner in New York truly spectacular?

- It is wonderful to have been able to help

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somebody, and, for years, my family and I have been trying to help people in need. I established the Novak Djokovic Foundation in order to draw attention to problems that children of very young ages are facing and to join forces in order to help them to get the best start in life as possible. The charity evening in New York did just that – it raised awareness of the problems in our country, and it drew in other people to get involved and improve the lives of children living in Serbia.

There are many goodhearted generous people in the world who are always ready to help, and I would like to invite these people to help since we need it. ● You have said on several occasions that the help from your girlfriend Jelena Ristić meant a lot prior to the event as well as her dedication to the work that the Foundation.

- That’s right. Jelena is the Foundation’s director, and she is very focused on the organization’s work and activities. We are currently sifting through early education projects that we will work on. Jelena is currently gathering information from the areas in Serbia that need help primarily in reconstructing facilities, buying educational materials and books so that kids can learn and develop without any obstructions. Also, my family is involved in this, particularly my mother Dijana who has been working for the Foundation since the very beginning.

At the Foundation, we are focused on the inclusion of children with special needs, as well as minority and marginalized groups. A lot of work needs to be done, and I think that we are constantly going to progress which will leave a mark on society.

● You have everything that you have been dreaming about for years – you are the top tennis player, you have the world at your feet, you have fame, popularity and wealth.

Is there something that you don’t have but would like in order to be even happier and more content?

- Things are not that simple as they look. I am just a regular guy who has his ups and downs, good and bad days, big and small wishes.

I am happy and satisfied because I am doing something that I love, I am successful at it, I am healthy and I have a healthy family.

My friends mean a lot to me, as does my girlfriend and the time we spend together. I need more time to do simple things. I often miss my home, but I am happy with what I have, and I always try to be optimistic and full of positive energy. ● There are probably many advertising agencies, companies and brands that would love to become a part of your team.

Are you happy with the sponsor pool with which you are currently working?

- That is only natural since tennis is big business. I don’t think about that aspect of my career. I play tennis to the best of my abilities, and the managers are the ones who deal with sponsors. I am happy with my sponsorship pool since I advertise good brands and we share the common interest of giving back to society through our partnership. When I signed a sponsorship deal with the Japanese clothing brand UNIQLO in May, we started talking and came to the conclusion that we have the same desires - to improve the lives of people within our means. As a result of that, UNIQLO decided to launch a $10 mil-

lion project called “Clothes for Smiles” with all proceeds from the sales of two clothing articles going to the foundation. I would like to invite your readers to visit website clothesforsmiles.uniqlo.com and send their suggestions on how to bring smiles to children in Serbia or elsewhere, since the campaign is global, and at the moment it is focused mainly on Asia and Serbia.

How difficult is to cope with so much pressure that comes with popularity, high earnings and a lot of money in professional sport, and to remain so down to earth, polite and approachable like you are?

- I don’t find it difficult. You need to be aware of who you truly are, what kind of man you are, to have your family by your side and to have a place to go back to. You need to have a place where you can find your peace.

My parents raised me and my brothers to appreciate little things, and even today little things make me happy. On the other hand, I think it was very important and crucial for me that I did not achieve all the success overnight. I have invested a lot of effort and hard work in accomplishing results, and my best season came when I became mentally strong to face all challenges.

●

● For

years, your nation has been expecting a lot from you when you played for Serbia in Davis Cup or at the Olympics.

Has this load ever become too heavy for you to carry?

- No, never. Playing for your country is a special feeling and something that you remember for the rest of your life. Tennis is even more special in that way since you play alone for the

The State of Serbia has bestowed on Novak the state’s highest order – the Order of the Star of Karadjordje of the First Degree - for special merit and success in representing the Republic of Serbia

Children All children have rights and those rights must be protected

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By July 3, 2011, he spent exactly 365 days at the world no.1 spot.

He failed to defend his Wimbledon title, losing to the eventual champion Roger Federer in the semifinals

Society Building a solid foundation in the early years of a child's life will not only help him or her reach their full potential but will also result in better societies as a whole

most part, except when you play in the Davis Cup or at the Olympics. There has never been any animosity in our team, no fighting, not a single problem. There is no team that can win a medal and not get along. In order to be in a team and have results, you need to feel unity.

That’s why we were the best in the world and, with a bit of luck, we will be champions again to the joy of the entire nation. ● The relation between money and sport is becoming more cruel which is the most obvious at tournaments like the US Open.

- When organizing a tournament, the general rules of the game and the quality of the game should be taken more into consideration, though I completely understand the business interest in tennis. We want to play, but our health is our priority. Hence, we need to have the best possible conditions to play. For example, a roof over center court at the US Open. ● Speaking of New York, at this year’s tournament, as well as past ones, the players were talking about undertaking radical measures like going on strike in order to have better conditions at the biggest tournaments.

- I have never like radical measures in life or in sport. We need to sit down and talk until we resolve all issues. We should not discuss them publicly too much. Tennis is a sport that I love the most, and I don’t want anybody to discredit it publicly. And I certainly don’t want to be involved in public altercations. ● What your life would’ve been like today, if you had never picked up a tennis racket?

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- I would probably have been a football player or a skier. I come from a sports-loving family. My father was a ski instructor and very talented at football. My mother graduated from a physical education college, so my predispositions were very clear. Even today, football is my passion and, whenever I get a chance, I play indoor football with my friends. I would love to be able to play it more often. This year, I’ve skied at the Kopaonik Mountain and I really charged up my batteries. I saw the place where I grew up, where I started playing tennis, and where I have wonderful memories of the mountain. ● Your sense of humour, wit and cheerful character that you show on and off the court are traits that distinguish you from other players.

- In order to play tennis, you need to feel good in front of audience and not mind being there alone, with so many people around watching you, sometimes not cheering for you. In my case, I can have fun just about anywhere. I think people from this part of the world are very amusing. I am fascinated to see how jokes are flying left and right only a couple of hours after a certain event, and I often find photomontages and great videos online that have me in tears from laughing. ● Speaking of the Internet, you are very active in social media. You use Facebook and Twitter and have millions of followers. How important to you is that way of communicating with people?

- It is very important to me since a lot of people use Internet on a daily basis. Since

the beginning of this year, my PR team has improved my communication with fans through social media, my website has been redesigned and we are pioneers in introducing new things. It is really important to me to be able to interact with people who follow me and my career, and we have managed to realise that through an application called Nole4You which enables the fans to ask me questions, vote for the best ones, and then I answer to them. We will also introduce live chat communication. When I was in Asia recently, I chatted online with my fans for the first time, and I was just as thrilled as they were. I try to upload photos often and to inform my fans where I am and what I do, and I really appreciate the support I receive from them daily. My family, as I call them, that is, my official fan group #nolefam, is very active. They recently recorded a video with messages for me from all over the world which left me speechless.

They have also chosen a new “anthem,” and I can definitely say that I have the best fans in the world. ● You

recently launched a mobile phone application which was said to be one of the best out there.

- I am glad to hear that. The application is very synoptical, easy to use and gives the kind of information that people are interested in the most: like news, real time results, new tournaments, matches and interviews that I give after matches. ● The media has branded you as a very communicative and approachable public person. Do you find that segment of your life tiring?

- No, not at all. Thanks to the team I work with, we are able to respond to all media demands on time, and there are many of those. We try our best to meet all requests.

Good planning and organization help me not to feel too preoccupied. Reporters are a part of my life, and I really appreciate their work as they do mine. I meet with journalists from Serbia at least once a year to talk to them, hang out with them, and exchange opinions, which means a lot to me since I get to see their point of view.

I can say that I have a great relation with journalists from all over the world, and not only the sports ones. ● What are your plans for the remainder of this year? Where will you celebrate the New Year?

- After the season ends, I will play two exhibition tournaments – in Bratislava and Rio de Janeiro. After that, I am going on vacation. I still don’t know where, but I need to relax completely for at least ten days.

After that is the Necker Cup, then an exhibition tournament in Abu Dhabi and after that Australia. This year, I will play the Hopman Cup with Ana Ivanović and quietly celebrate New Year’s Eve there since we have matches to play. ● How difficult is it to be on good terms with your biggest rivals like Nadal, Federer and Murray?

- You’d be surprised how easy it is. They are great guys. We are rivals on court, but privately we get along very well. It is difficult to have a real friendship, but we have great respect for each other. ■

On November 5, 2012 he will reclaim his no. 1 spot on the ATP list. Before the Paris tournament, he had 70 victories, i.e. 70 victories in 2011, which was a historical year for him. Now he has a chance to improve that score

Serbs It's because we have a harder way to succeed in life as Serbs because of the past that we had and because of the history that we had.

We have to dig deeper and we have to do much more in order to be seen and to be spotted

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VELVETSPORT DOO, Beograd, Ruzveltova 33, TC ZIRA KOPAONIK KONACI SUNČANI VRHOVI www.velvetsport.com

History

global diary

“The Balkans produce more history than they can consume.”

— Winston Churchill, formerBritish Orator, Author and Prime Minister during World War II. 1874-1965

Azerbaijan

Defending Mexico's Monument A life-size bronze statue of late Azerbaijan president Geidar Aliev is seen on Mexico City’s main boulevard, Reforma Avenue beginning October. Mexican protesters say that a man who ruled such a far-away land with such a heavy hand shouldn’t be on a boulevard decorated with statues to Mexican and foreign heroes.

Express Robberies Express robberies often last less than three minutes, but Argentina’s Federal Police say thieves steal about US$8,000 on each theft

The Caucasus republic of Azerbaijan is defending a multimillion-dollar renovation of Mexican parks and a monument to late president Geidar Aliyev that it paid for, saying Mexico is a natural choice to commemorate their leader.

Azerbaijan’s ambassador says that Mexico was among the first countries to recognize Azerbaijan after the 1991 breakup of the Soviet Union. Azerbaijan paid the entire cost of renovating a park and a plaza, including a statue of Aliyev in one of the parks.

A few protesters say the statue is out of place, but Azerbaijan Ambassador to Mexico Ilgar Mukhtarov says relations with Mexico are growing stronger.

Cyprus

'One stop Shops' for New Investors

“Time’s up!” yelled one of the robbers before the group ran out of the bank. In just three minutes, the “Stopwatch Gang” performed their final heist at the Derqui branch of Citibank, in the province of Buenos Aires, just hours before they were apprehended by authorities.

The fall of the “Stopwatch Gang” is an important development in what has become an increasingly popular form of crime in Argentina: rapid bank robberies, known as “express robberies”.

Twenty express robberies in Argentina occurred between November 2011 and April 2012, according to the most recent figures provided by the Ministry of Public Safety.

The robberies take less than three minutes, which is normally how long it takes police to arrive. The groups are made up of three or four individuals, who each play a specific role. Upon entering the bank, one robber points a gun at the security guard, while another goes to the booth and threatens the police officer stationed there. The third member takes a hostage and demands access to the money.

They immediately abandon the car and split the money, which often is about $35,000 Argentine pesos (US$8,000) per robbery, according to the Argentine Federal Police.

order to reduce considerably the time needed for setting up a business. This system not only quicken the processes it also happens to combine different offices under one roof and makes it easier for people new to the country to get over with processes and get to running stage of their business faster.

Cyprus has implemented a new concept to encourage as well as the life of foreign and local trade and investment businessmen.

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China, India

Consumer Spending to Triple by 2020 Consumer spending in emerging market powerhouses China and India is expected to triple by 2020 to a combined $10 trillion a year, potentially helping to boost economic growth and corporate profits in the developed world.

The study by Boston Consulting Group (BCG) is based on a survey of 24,000 consumers as well as interviews with business leaders. The business strategy consultancy predicts con-

sumers in China and India will spend a combined total of $64 trillion on goods and services in the decade leading up to 2020.

Annual spending on consumer goods will be three times the level spent in 2010.

“We are at a turning point in history where relative wealth will shift from the West to China and India, but absolute wealth, including in the West, should increase,” said Michael J. Silverstein, a senior partner at BCG.”The middle class in the two countries is expected to reach 1 billion by 2020,” said Silverstein It named Kraft, Yum! Brands, PepsiCo, Gucci, LVMH, BMW, and Pernod Ricard as companies that have deployed successful strategies in these countries.

Monaco

Prince Albert to Visit Wyoming Next Year Prince Albert II of Monaco plans to travel to Wyoming next year to mark the 100th anniversary of a visit by his great-great-grandfather.

The Buffalo Bill Historical Center in Cody says the prince has accepted its invitation to attend the 2013 Patrons Ball in Cody next September.

Prince Albert I visited Cody in September 1913. He spent two weeks hunting for elk and deer with William “Buffalo Bill” Cody outside Yellowstone National Park.

Prince Albert II is the ruling sovereign of Monaco and the son of late American film star Grace Kelly.

New settlement

Italy

“I don’t think it is in Britain’s interests to leave the EU but I do think that it is increasingly becoming the time for is a new settlement between Britain and Europe. “ — David Cameron, British Prime Minister

Gelato Museum Italy’s la dolce vita just got a little sweeter, thanks to the opening of a free museum about seven miles outside Bologna that chronicles the evolution of Italian ice cream and offers tourists the chance to taste and create their own frozen treats.

An hour-long guided tour at the Gelato Museum Carpigiani, takes visitors from an 11th-century Arab pomegranate sorbet recipe to the invention of Italian gelato five centuries later by Cosimo Ruggieri, alchemist and astrologer at Florence’s House of Medici.

In the tasting area — where instructors make modern versions of strawberry and raspberry sorbet recipes from 1822 and coffee sorbet first formulated in 1854 — visitors can sample several types of gelato for about €3.00; a short hands-on lesson costs about €10.00 and an intensive, four-hour session in gelato making, production and tasting costs about €50.00.

symptom of couples’ marital values rather than a cause-and-effect relationship. In what appears to be a slap in the face for gender equality, the report found the divorce rate among couples who shared housework equally was around 50 per cent higher than among those where the woman did most of the work.

“What we have seen is that sharing equal responsibility for work in the home doesn’t necessarily contribute to contentment,” said Thomas Hansen, co-author of the study entitled Equality in the Home.”The lack of correlation between equality at home and quality of life was surprising,” the researcher said.

The figures clearly show that the more a man does in the home, the higher the divorce rate, he went on.

The reasons, Mr Hansen said, lay only partially with the chores themselves.

New Zealand

Anti-allergy Milk Researchers in New Zealand have genetically engineered a cow to produce milk with very little of a protein that causes an allergic reaction in some children.

They hope the technique, which uses a process called RNA interference that reduces the activ-

Cow Daisy was without a tail - a defect the researchers say is linked to cloning

ity of certain genes without eliminating it completely, can be used to control other traits in livestock.

With mothers breastfeeding less, cows’ milk is an increasing source of protein for babies, but the different composition of cows’ milk can cause an allergic reaction.

“In developed countries, 2-3 percent of infants are allergic to cows’ milk proteins in the first

Meet The Fokkens

Norway

Couples Who Share the Housework are More Likely to Divorce A new study from Norway has found that the divorce rate between couples that share housework equally is significantly higher than between couples where the wife does the majority of housework.

Before husbands step away from the dishwasher, the study found that chores seemed to be a

Amsterdam’s oldest prostitutes have been thrust into the spotlight with the release of their memoirs and a documentary film about their lives. The film, Meet the Fokkens, follows 70-year-old identical twins Louise and Martine Fokken as they share secrets of selling sex in the city’s famous red light district.

Louise and Martine shuffle round their cluttered two-bedroom apartment in Ijmuiden, just west of Amsterdam.

Martine still sells sex. She says the Dutch state pension alone is not enough to live on, so she has found a niche in the fetish market for older men Louise quit because of arthritis.

cordeditorial@cma.rs

year of life,” the researchers said.

Representatives of the government-run AgResearch company said their genetically modified cow produced milk with a 96 percent reduction in the protein betalactoglobulin (BLG), a component known to cause allergic reactions.

UK

Taxi Creates Music The Make The City Sound Better project has equipped a London black cab with the technology to create music for the passenger based on the locations they are passing through.

Both consumers and businesses usually see transportation as a fairly functional necessity, rather than an enjoyable way to get around a city. Coming at it from a different perspective, the Make The City Sound Better project hopes to provide a new experience for passengers by equipping a London black cab with the technology to create music based on the locations they are passing through.

Conceived by Denmarkbased audio product manufacturer, AIAIAI, in collaboration with UK sound artist Yuri Suzuki, the campaign saw the taxi fitted with microphones and large speakers. Sounds collected by the microphones were translated in real-time through a computer algorithm to create music whose basis was the ambient sounds of the city. This music was then played to passersby through the speakers, although the rider could listen on their own headphones for a clearer sound. All of the tracks were recorded and uploaded onto Soundcloud so that passengers could listen again to their journey. |

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interview HE Mr. Abolghasem Delfi, Ambassador of the Islamic Republic of Iran to Serbia

Fostering Good

Relations

■Photo: Zoran petrović

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Economic ties between Serbia and Iran can be expanded in a wide range of sectors

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n diplomacy, dialogue is the name of the game. For HE Mr. Abolghasem Delfi, Ambassador of the Islamic Republic of Iran to Serbia, it is fundamental for the fostering of good relations among nations to maintain a high level of dialogue. Speaking to CorD, the Ambassador outlines the potential of developing such relations.

Potentials

The present potentials in the sphere of economy, energy, finance, industry, agriculture and science ensure the dynamism of our relation to a great extent.

Kosovo

We welcome dialogue between representatives of Belgrade and Pristina, stressing the need for continuity in order to achieve the needed solution.

■ As of recently, Serbia has a new government and one of the first foreign officials visits to Belgrade has been that of Mr. Ali Asghar Khaji, special envoy of the Iranian president. Could you tell us whether our country’s having a new government opens up new opportunities for collaboration?

- The relations of the Islamic Republic of Iran with different countries are defined by the principles and relations prevailing in international relations, as well as by bilateral interests, based on friendship and the respect of people’s rights. In this regard, Serbia is not an exception to the rule. For years, the two countries have had relations founded on friendship, bilateral, international and regional cooperation. With time, these relations have enhanced. The present potentials in the sphere of economy, energy, finance, industry, agriculture and science ensure the dynamism of relations to a great extent. Increasing awareness of these potentials is an efficient incentive to activate these domains. At the end of August this year, the Islamic Republic of Iran hosted the 16th Summit of Heads of States and Heads of Governments of the Non-Aligned Movement, during which the leaders and representatives of 120 countries around the world, along with representatives of international organizations, gathered in Tehran and had the opportunity to hold bilateral and multilateral meetings to discuss the complex international developments aimed at finding solutions for the problems challenging the international community. In this regard, Mr. Khaji, Special Envoy of the President of the Islamic Republic of Iran, visited Belgrade in July 2012 and had a meeting with President Tomislav Nikolic and, aside from presenting him an invitation to participate at the Tehran Summit, he talked with him about bilateral relations, regional development and the international situation.

This meeting was a chance for the Islamic Republic of Iran to be better acquainted with positions of the new president and Serbian government regarding the current state of relations and pave the way to using the new potentials in cooperation.

■ For two months now, Serbia is presiding over the UN General Assembly. To what extent could the good relations between Belgrade and Tehran help in better presenting Iranian policy at the UN?

- The United Nations General Assembly (UNGA) is one the important and influential bodies in the international arena, unlike the United Nations Security Coun-

Religion

Islam is the religion based on love, friendship and peace among people. What is attributed to it as aggressiveness and radicalism has absolutely nothing to do with Islam's goal.

cil (UNSC), which has few member countries and five permanent member countries with the right of veto enforcing special conditions for its functioning. Within the UNGA, all UN member countries have equal rights to present ideas and positions, and this is precisely

Cooperation between the Islamic Republic of Iran and Republic of Serbia covers many international topics, and Serbia’s presiding over the UNGA will ensure a chance for this cooperation to be enhanced and broadened why presiding over this body has a very important role for realization of rights of all countries. Cooperation between the Islamic Republic of Iran and Republic of Serbia covers many international topics, and Serbia’s presiding over the UNGA will ensure a chance for this cooperation to be enhanced and broadened.

■ Iran is one of the states that do not recognize Kosovo’s independence. Do you think that the Iranian government will continue to endorse that stance?

- The Balkans region has been witness to many developments and tragedies in the past two decades, and the nations of this region have suffered a great number of problems. The Islamic Republic of Iran, by respecting the importance of the peace and stability of the Balkans to the peoples of this region and to Europe, considers dialogue as the most essential for reaching understandings and solving problems. On this basis so far, and within framework of its foreign policy and international laws, cordeditorial@cma.rs

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the Islamic Republic of Iran has presented its position regarding Kosovo, welcoming dialogue between representatives of Belgrade and Pristina, stressing the need for continuity in order to achieve the needed solution.

■ The former Yugoslavia was one of the founders of the Non-Aligned Movement (NAM) in which Iran plays an important role today. Although Serbia is no longer a member of the Movement, there has been an effort on the Serbian part in the last several years to re-establish a connection with the Movement.

Does that create an opportunity for the two countries to cooperate?

■ Economic cooperation between Serbia and Iran is far lower from the time of the former Yugoslavia when the trade exchange between the two countries amounted to a billion dollars. Today, it barely amounts to 50 million dollars. In your opinion, what sectors of the economy could contribute to better economic cooperation between our two countries?

- Economic cooperation is a fact which has an influence on the deepening and development of relations between the two countries in political, international and cultural directions. The Islamic Republic of Iran, as a country which has much to offer in the domains of energy, industry, agriculture and modern technology, always welcomes the interest of Serbia to enhance cooperation in these fields, stressing the significance of the Joint Committee for Economic Cooperation and its activities, and it is ready to prepare the ground for the work of the chambers of commerce and private sectors of the two countries to expedite mutual cooperation in these fields.

■ Muslim countries have been outraged by a movie which insults Islam. Do you think that the reaction of the Muslim world is justified?

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- Islam is the religion based on love, friendship and peace among people. What is attributed to it as aggressiveness and radicalism has absolutely nothing to do with Islam’s goal, which is based upon The Islamic Republic of Iran, by respecting the divine teachings of the Holy Quran the importance of the peace and stability and thoughts of beloved Prophet Mohammad (SA). The production and screening of the Balkans to the peoples of this of an insulting film, offending the beliefs region and to Europe, considers dialogue of more than a billion and half Muslims in the world, is not a banal event; it is surely as the most essential for reaching the continuation of an attempt to disturb understandings and solving problems relations among nations and to prevent the realization of international friendship. Insulting - Although in the past due attention was paid to the the beliefs and religious feelings of Muslims around capacities and potentials of NAM and its influence on the world is absolutely unacceptable and not excusable international events and solutions to global problems, under freedom of speech and expression, and the still the success of 16th NAM Summit held in Tehran, and the ongoing peaceful demonstrations of Muslims all over events that ensued, showed very well that this was one the Islamic world, protesting that insulting film, are the of the most important gatherings, which might provide natural right of people and we must do so, not only to answers to many complex global issues. In its three-year condemn such an insulating creation, but also to punperiod of chairmanship in NAM, the Islamic Republic of Iran will devote great efforts and make use of national, ish the public and secret organizers, in order to create regional and international potentials to modernize the the conditions that deny the right to insult any religious capacities of the movement in the international arena, belief and feelings of the people. in which the role of all country members and observers of NAM cannot be denied. Although, not a member of ■ Last year, quite a few Arab countries experienced NAM at present, Serbia is aware of its political, internauprisings and their governments were forced from power. How do you explain the causes of the “Arab tional, economic and cultural potentials, as well as the Spring”, including the Syrian civil war? support it gained related to such subjects as the preservation of territorial integrity and presiding over the - Over the past several years, the Middle East region has UNGA, and, within its national interests, it has an opporbeen witness to an awakening of Muslim peoples and their endeavor to attain their true and Islamic identity, tunity to define a special framework for cooperation.

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as well as to retrieve their lost rights. It is regrettable that we are also witnesses to a biased and unacceptable approach of the West in this development, especially of those who support the occupying Zionist regime, which extended their entire material and moral support to continuity of this illegitimate entity in the Islamic-Arab region. Allegedly for the sake of the defense of Syrian people, Westerners use all kinds of methods of foreign interference, including, among other things, military meddling to unseat the Syrian government, but at the same time, by using force and foreign troops, they support the regime in Bahrain, which oppresses their people in a most brutal way. The Syrian people has to decide its fate without foreign interference, and one democratic and exclusively Syrian-Syrian process might achieve this objective. The people of Bahrain, Yemen, and other countries must have the same rights. The countries of the region and the world must help them to accomplish this objective.

■ The Muslim community in Serbia has been divided in the past few years. What are your relations with them and do you cooperate?

- As an Islamic country and within the framework of its relations with Serbia, the Islamic Republic of Iran endeavors to provide a basis for a better connection between the two countries and their mutual understanding. Muslims in Serbia also make up a significant part of the population and because of their past religious and cultural connection and joint religious link with other Muslims in the world and in Iran, they have good relations with our country and this connection will continue.

■ The security situation in the Middle East is a very sensitive issue. In your opinion, what needs to be done in order for permanent peace to be established in the region?

- Security and stability in the Middle East are very much needed for the sake of international peace and stability.

They cannot be realized by the existence of the occupying Zionist regime, which is an illegitimate enISLAMIC AWAKENING: Over the past tity, governed by “some emigrants”. Palestinians from the occupied territories and refugees from several years, the Middle East region these territories, regardless of their faith, must has been witness to an awakening of determine their own destiny with a referendum, and the realization of this process is required as Muslim peoples and their endeavor to an introduction to the restoration of peace and attain their true and Islamic identity, security in the region, in which we now witness as well as to retrieve their lost rights the awakening of all of its Muslim peoples.

■ There is an Iran-Serbia Friendship Association in Belgrade, but also Iranian Culture Centre. How interested are people in Serbia in their activities?

- Mutual understanding of the peoples of the two countries is a factor which influences the increased promotion and development of relations. The friendship associations, which exist both in Serbia and Iran, might have an effective role in the realization of this objective. Until now, the friendship association has been active in various cultural and art gatherings, organized throughout Serbia, showing to the Serbian people the diverse aspects of Iranian culture and art. The Cultural Center, affiliated with the Embassy of the Islamic Republic of Iran in Belgrade, is yet another institution active in this domain, aiming to bring Iranian culture, civilization, history, art and language closer to the people of Serbia, through numerous programmes that have been organized so far.

■ You are also the non-residential Iranian ambassador to Montenegro. Could you describe for us your cooperation with the Montenegrin authorities, and is there any room for improving the economic ties between Iran and Montenegro?

- Relations between Iran and Montenegro, after proclamation of independence of this country, have a very good quality, and some of the visits of officials of the two countries in the few past years have shown the necessity for stronger connections between Tehran and Podgorica. Annually, more than 10 millions tourists from the Islamic Republic of Iran are traveling worldwide, and the tourist offering of Montenegro, especially its coastal area as well as its other parts, might be attractive to them. Also, the model of a multi-ethnic community in this country, very similar to the one present in Iran, might become a basis for future connections and the development of relations and cooperation between the two countries. ■ cordeditorial@cma.rs

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Points of view Nikola Samardžić, professor at the Belgrade Faculty of Philosophy

No Experience of

Democracy

While he has been politically active as a member of the Democratic Party (DS) and later the Liberal Democratic Party (LDP), professor and Ph.D. holder Nikola Samardžić (51) was the reason that many students did not leave the country and decided to stay here while waiting for a better tomorrow they would create to suit their needs. He instilled confidence in them so that they felt that a better future was entirely possible. And then he left political life all together

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t is very difficult today to answer the question of an-Turkish relations under Ottoman rule is still, to this what happened and why the hope was lost folday, scientifically unparalleled. He was also a member of the SANU (Serbian Academy of Science and Art) and lowing the October 2000 political upheaval. Howundoubtedly had a strong influence on his son. ever, historian Nikola Samardžić has an interesting “My father brought point of view about In the last two centuries, Serbia me up to be a person the present moment and with a strong character about the influence that has been in more wars than all history and politics are European states put together and which is in contrast to the world that surrounds exerting on the time in each generation has paid the price us, especially to what we which we live. He is the call our elite. But he also made me somewhat incompeauthor of several highly relevant books with one of the most important being “The Second Twentieth Century”. tent or unready to adapt to the world as it is. The enviNikola’s father – Radovan Samardžić (1922-1994) ronment that we live in has been very poorly brought – was also a Ph.D. holder, professor and head of the hisup and is of weak character. His death came too early for me. It was so difficult to part from him. Our relation tory department at the Faculty of Philosophy. He also had nothing to do with his and my profession. What was had quite a distinctive character and his work on Serbi-

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regime

Tadić reconstructed Milošević’s regime and it was this regime that defeated him at the election.

symbols

If Slobodan Milošević and Zoran Đinđić were the symbols of political polarity, then the people that followed after them were poor copies of them.

important was his propensity to easily move around in this complex world, to try to understand it, and to love it even when he rejected the core values and messages that that world was sending out. The only process that he did not want to understand was the nationalist movement that broke up Yugoslavia which was the last Bolshevik reaction of the 20th century. It is no coincidence that with Yugoslavia falling apart, Serbian society was also disintegrating and our personal and collective tragedy started to unfold.”

■ At what point in Serbian history did the Serbian elite actually mean something to the Serbian people?

- That probably was at the time of economic prosperity and positive social changes. These periods were few and far between, like in the late 19th and early 20th centuries. However, this very same elite participated in the Balkan wars and the First World War and it was then that we lost our biological substance. In principle, eugenics is morally unacceptable but we lost so many good families and outstanding individuals who were mostly anonymous. In the period before the World War II, there was a certain economic growth and, in 1939, that growth reached its pinnacle. Post-war Yugoslavia needed decades to reach the previous Democrats today economic performances.

■ At the very beginning of the rebellion against Milošević did you believe that his government could be brought down?

reform

Today, we are facing the dreadful economic consequences of the reform which has nothing to do with capitalism or neo-liberalism.

- Yes, you are right; but I don’t believe that Dačić and Dinkić can sleep peacefully while the Democrats today resemble more Šešelj than Zoran Đinđić in their arrogant licentiousness, and the inability to recognize truth, except the truth that there are no sparrows in Belgrade any more.

If all of them were capable and professional politicians, Serbia would not be at the European bottom today. And our country is at the European bottom. Let’s assume that I have the right to point up that fact since

I work in an institution – Belgrade University which is far above all performances, Serbian society and Serbian politics.

I stand behind my words and I speak on behalf of the people who share my political views and who did not vote at the last election. They are the people who think that a peaceful change of power, which was a result of the election, is our new political chance.

The question of why are we at the very bottom in Europe is the question that reminds us of the circumstances in which former Yugoslavia was created and destroyed. Belgrade was the centre of a joint criminal endeavour which started in Kosovo or Slovenia depending on which event you consider more important and which one started the snowball effect. It seems that that the process had to return to its origins. The hodgepodge power that you are talking about has just rounded off the entire process. The only thing that it is clear is that the people in power have their own interests and that they protect each other. Just like Oliver Dulić is protected today, so that he can, in turn, protect his other fel-

resemble more Šešelj than Zoran Đinđić in their arrogant licentiousness, and the inability to recognize truth, except the truth that there are no sparrows in Belgrade any more

- I did believe, and I was mistaken just like anybody who shared my opinion. We are still living with Milošević’s system, in a chauvinistic socialism which has outlived itself both in time and history. Even the people who are considered victorious over us, the people whose illusions have been shattered, are in essence defeated since they are obscene cartoon characters in the history of Serbia, at a time when ethical values have completely collapsed.

■ We are talking about the supremacy that has brought all political parties together in the last twenty years – the supremacy that was exercised

by Milošević, the Democrats, the former G17, and Šešelj’s former Radicals. We have been defeated since we failed to fit into their scheming of how to get to and stay in power.

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lows. Tadić reconstructed Milošević’s regime and it was this regime that defeated him at the election.

■ Could you give us an example of the opposition, with whom you have been more or less close for years, turning into interest groups, as you said?

- I can’t recall being close to anybody. But if you carefully read political biographies, and I read them in “Who’s Who” of 30 years ago, you can really understand the poverty in Serbia which lasted for centuries and which was only superficially eradicated by modernization.

In the last two centuries, Serbia has been in more

a worthy opponent. He built his own value system by preserving the most disgusting traits of Serbian politics and culture. He had his personal army, the police and all the tools of force and waged several wars, winning some and losing others. In the end, he went up against NATO claiming that he won. Actually, he was just a little man of limited ability who has shown his true face and character when he appeared in a court and was held accountable for his own and other people’s criminal acts.

If Slobodan Milošević and Zoran Đinđić were the symbols of political polarity, then the people that followed after them were poor copies of them.

■ It has been said of Tito and Milosevic that they were great, capable, and honest but surrounded themselves with bad advisors and thieves. Is it the same with those who came to power after 2000?

- The same was said of Vojislav Koštunica and Boris Tadić – supposedly they were right and moral, but it was the people around them who gave them poor advice and were stealing. That is not true. The fairytale about Alibaba is a fitting parable and can be applied to each and every one of them, but the only difference is that they had more than 40 thieves. There is no person that is able to formulate even one public interest in the way that Milošević and Đinđić were able. Milošević assembled people to follow Dobrica Ćosić and eventually to be killed. Đinđić tried to lead us into civilization and was assassinated in a complex conspiracy that had some of the aforementioned persons involved as the wars than all European people who ordered his asBy not paying the taxes, the sassination or were simply states put together and each generation has paid the Church has no right to meddle public abetters. price. We don’t have good That’s why Đinđić is more in politics but, in our country, families any longer who are important than the sum of that is carefully glossed over his successes and failures. able to contribute to creation of a useful and diligent character. What we are seeing In 2001, he abandoned his idea of national capitalism are recycled paupers who are cocky, wearing smuggled and chose a model of expedited privatization which is designer suits and driving German cars, the people who how we got tycoons. Today, we are facing the dreadful are suddenly connoisseurs of wine and Cuban cigars. economic consequences of the reform which has nothDoesn’t that remind you of Tito, who, in the beginning, ing to do with capitalism or neo-liberalism. That was a was a lowly Soviet agent and subsequently became one predatory campaign against banks, companies and facof the wealthiest people in the world? The people who tories. Most of the population has no private assets or think of him fondly today are right. Montenegrin genany valuable stock. That is the crowning achievement of Milošević’s politics. eral Peko Dapčević did not participate in liberation of Belgrade for purely ethical reasons but to get his hands on deserted mansions.

■ Does that mean that the system hasn’t changed at all?

■ The people who fought against Slobodan Milošević in the 1990s are today more disillusioned with the people who came in power after 2000, the very people for whom they voted before, than with Slobodan Milošević.

What happened to these fighters for democratic change who are so despised by the ordinary people?

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- From today’s point of view I can say that Milošević was

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- That’s right. The system has not essentially changed.

Bringing Oliver Dulić to be questioned by the police reminds us of Slobodan Milošević, Mirjana Marković and Duško Mihajlović, of their quotas, smuggling and scheming. Today, you have a handful of people that are controlling and monopolizing the market and that’s why there is a decline in foreign investment while do-

police and army circles, which are exempt from the civil control, the church and drug lords, psychopaths and covert murderers. It is no coincidence that politi■ Do you think that banning the Gay Pride Parade cians are members of sport club’s managing boards. in Belgrade this year is a result of the government Financially speaking, that sector is totally unregulated. fearing the church or Jagodina’s mayor Palma or And it is not a coincidence that professional sport and Dveri and similar groups? Could allowing the Parade sport in general get funds from the budget. I don’t see to happen have cost someone votes at the next elecsport as being in public interest and, as such, getting tion? How can we refunds from the budget.

Kosovo is a moral obligation for solve this unnecessary Sport is a private matter problem?

Serbia, both for the Albanians and or, at best, should be in care of local commu- The Patriarch gives pothe Serbs. Kosovo provides export the litical statements, yet he nities. Hooligans have opportunities and a chance for doesn’t pay taxes. The been fostered by secret Patriarch has deceived development. Hence, our relations services of the former the public into believing Yugoslavia: Arkan, Beli need to be regulated somehow that he is a spiritual not and their cronies. It is a political person, and yet by participating in the secular the secret services that have recruited national heroes. world, he is now eligible to pay taxes. By not paying the And that is the machinery that is fired up when issues taxes, the Church has no right to meddle in politics but, like Kosovo or the Pride crop up. in our country, that is carefully glossed over.

In reality, the things are much more serious. By ■ What is your view of the Kosovo issue? banning “The Pride,” the state did not let the hooli- This problem has been degenerated to the level of hoogans have their own way. Hooligans are the state or liganism and organized crime. A TV channel is currenta para-state. There is a clear and specifically defined ly showing the Insider show and everything becomes link between professional sport, organized crime, the very clear. Kosovo is a sword that is dangling above mestic investments have disappeared together with the downfall of small and medium enterprises.

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our heads. The problem lies in establishing normal relations, and that is not a condition that the EU has imposed later but something about which Tadić has been lying to us for years.

I really want to know how Kosovars and us are going to join NATO and the EU, and how can we pull ourselves out of the European gutter which we have definitely deserved. It is also important to know in which way are Serbs will participate in Kosovo’s government and how are they going to execute their powers rather than how are they going to be protected.

In Croatia, Serbs have used the government quota they have been given and some of them are getting a lot of money for that. Also, there is a tendency of slowing down Croatia’s accession to the EU. In Serbia, un-

Any partition along national lines destroys the positive energy and development capacities on both sides regardless of who is victorious and who defeated. The issue of recognizing or not recognizing Kosovo’s sovereignty is less important than other concrete problems.

Kosovo is a moral obligation for Serbia, both for the Albanians and the Serbs. Kosovo provides export opportunities and a chance for development. Hence, our relations need to be regulated somehow. I think that it is more honourable to admit to those people that they have won the independence and shake their hands.

There are no winners or losers. We have both lost a lot in the last 30 years, since 1981.

■ With the arrival of the new government there are a lot of reasons to talk about getting closer to Russia.

As a historian, what is your opinion about SerbianRussian relations throughout history?

- Every Serbian government has been Rusophile. It is a fact that has been transferred from generation to generation. While Eastern Europe suffocated under Soviet Communism, we were fostering the Russian myth and Stalin’s cult of personality.

■ Do you think that Serbia is prey that will be strategically divided between the EU, Russia and Turkey?

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- Those three powers have a realistic presence, although I don’t see that there is any prey to divide, prey that is a common denominator of the relations between them which have absolutely nothing to do directly like Croatia, there is no We have no experience in Serbia. I would love debate on how to catch independent democratic rule which with it if the EU and Russia up with the 21st century entails advancing institutional were to tarnish their reand nobody is talking about joint investments performance, the rule of law and lations because of Serbia, in Kosovo in order to but I don’t believe that individual freedoms build infrastructure, howill happen. Either we are going to become Russian peasants, which is how tels, hire people, or attract tourists. I won’t even go into they perceive us, Turkish commoners, as in the past, or things like destroyed factories and devastated society.

European gentlemen. At the moment, nobody knows Everything is just like in Serbia. that in Serbia.

We have no experience in independent democratic ■ What is your opinion about the idea of partitionrule which entails advancing institutional performance, ing Kosovo, endorsed by the Serbian prime ministhe rule of law and individual freedoms. Hence, the deter, and what do you think of the Serbian president’s stance on the issue? mocratization process is our future in contrast to the current governing policy and its value system. In its na- Both of them have a sycophantic attitude toward the public and by doing so they are underestimating the ture, this process is open to the past and future and it is public. The result of this is a new misunderstanding never going to be self-redundant. with the EU and promises that we are going to become Democracy does bring uncertainty. Dictatorships a part of the new Soviet Union. The Kosovars would also are also uncertain and dictatorships are not particularly like to join the EU on their own terms. Dačić has already popular in Serbia. Maybe an authoritarian form of govadmitted Kosovo’s sovereignty by signing an agreement ernment can succeed here, maybe our people can toleron the integrated management of border crossings. I ate arrogance and corruption but dictators have never see our future relations within the scope of European been able to survive here. That is our good trait. We asintegration which will abolish all border crossings. sassinated dictators whenever the opportunity arose. ■

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focus

Budget Review - Bankruptcy

OR SALVATION?

In late September, the Serbian parliament adopted the 2012 budget review and a string of concomitant tax laws following a government proposal which presented the new budget calculation as a necessity and something that will prevent the state from going brankrupt. However, experts warn that the new budget calls for higher spending and that planning higher budget revenues is not realistic. According to the new calculation, the year end budget deficit will make 6.2% of the national GDP. The government is planning to reduce this percentage to 4% of GDP next year.

What are your predictions about the final outcome and the results of the government measures in terms of macroeconomic stability of the country?

Public Spending is Unsustainable

due to a significant increase in prices this year (probably over 12%).

This will spill over into 2013 and will nominally affect the budget and macroeconomic projections.

Still, the big question is whether the government will have enough determination to start a permanent and sustainable process of reducing public spending. Currently, public spending makes up almost 50% of the national GDP which is unsustainable for a counJurij Bajec, Economy expert try that has a low per capita income and a weak and uncompetitive economy. Hence, the promise given by the new government that it n a time of crisis, a budget review is a more or less normal ocwould bring the fiscal deficit to zero in the following few years and currence. A drop in economic activity, a huge decline in dostart cutting back on public spending must be supplemented by a mestic demand on a market which is no longer export-orientclear and operational plan where the percentage of public spended, a drastic increase in unemployment, the depreciation of the dinar and a significant increase in prices, as well as the adverse ining would be gradually but surely reduced to a sustainable level.

That is not possible with short-term, ad hoc, measures but through a ternational surroundings, have resulted in a drop of public revecomprehensive reform of the public sector, particularly in areas like nue. Since very little has been done on cutting back public spendpensions, healthcare, education, ing, and especially in trying to The promise that the fiscal deficit in 2012 security, social welfare, state adfind permanent and sustainable solutions, the growth of will be reduced by 3.5% of the national GDP ministration and subsidies – all the fiscal deficit and public in line with the principle “doing is, in principle, attainable debt is an inevitable consemore with less”. This would open up a space for a bigger share of public investments in economic and quence. Such developments were exacerbated in 2012, which was social infrastructure, as well as provide support to a faster economan election year, and when bigger fiscal expansion happens as a matter of course. ic development and employment. Only then could we really talk The 2012 budget review has been criticized by experts because about a budget that is developmentally and socially oriented while of the fact that public spending, compared to the standing budget, being fiscally sustainable. was increased by 25 billion dinars, while public revenue went up by Public sector reform is a difficult, socially and politically sensionly 20 billion dinars which meant that the initial deficit was further tive issue. Governments usually shy away from making decisions that increased. If there was even a symbolic reduction in deficit (by mainwould add more fiscal burden in the short run, while tangible and esly cutting back on spending), the overall impression would be better sential effects are achieved only over a longer period of time. Still, and the good moves, particularly in increasing the transparency of painful decisions are inevitable. The warning comes from a fiscal defthe tax system, would mean much more. icit which is becoming increasingly difficult to cover and the growing The promise that the fiscal deficit in 2012 will be reduced to funding of the expanding public debt. In 2013, the state will need 3.5% of GDP is, in principle, attainable. Budget revenue is expectover 90 billion dinars to pay interest rates alone, more than the estied to grow due to higher VAT, excises and income tax, while, when it mated 2% growth of the national GDP. comes to spending, the biggest budget item – increasing salaries in So, in carrying the arduous task of reforming the public sector, it the public sector and pensions – would be realistically reduced. is good to have allies like the EU and the IMF which, each in its own Bearing in mind that public revenue and spending is expressed in way, are monitoring and checking the accomplished results and, in current prices, we should bear in mind that, aside from the first esticase they look favourably on them, they could significantly contribmates of GDP realistically growing by 2%, the inflation rate will rise ute to the country’s credibility. ■

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Public Sector Should be Reformed

Manipulation by the Numbers

Miladin Kovačević, Associate of the “Macroeconomic Analyses and Trends” Bulletin Issued by the Economics Institute

Aleksandar Stevanović, Economy Expert from the Free Market Centre

he number one task for the new government will certainly be to carry out a 2012 budget review, bearing in mind the overall situation of public finances. The new budget review did nothing to re-

duce planned public spending and the deficit. Neither has it instigated a strong consolidation of public finances. Furthermore, the new projected deficit is significantly higher than the one projected at the beginning of this year. Even the implementation of measures aimed at consolidating the state’s balance sheet, was not enough to compensate for the inherited gap in the budget (i.e., tax revenue falling short of budget spending).

Although, it must be said, the measures did establish some kind of equilibrium (in terms of deficit) and, by the end of the year, they have slowed down the expansion of the deficit which was growing at an inherited pace.

Tax reform marks a long awaited turning point in the expansive budget imbalance. The need for increasing the VAT rate was unavoidable at this moment due to rapid consolidation. However, one should bear in mind the strategic determination of the state to lower salary contributions (in order to reduce high unemployment in Serbia) which would be compensated by

Instead of further increasing VAT in order to cover the budget deficit, which comes a result of lower income tax revenue, the focus should be shifted towards additionally burdening capital a higher VAT rate as suggested by the Fiscal Council. We think that instead of further increasing VAT in order to cover the budget deficit, which comes as a result of lower income tax revenue, the focus should be shifted towards additionally burdening capital. Increasing income tax and profit tax

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hoever is talking about the results of government measures for achieving macroeconomic stability in the country is implying at least two things: First, he must know what the government intends to do in that area.

So far, we have not seen anything tangible apart from the budget review a badly written fiscal consolidation strategy which will increase the deficit and create more problems early next year. The measures adopted so far are just a bag of pre-election promises given to carefully targeted groups, cheap rhetoric and, most importantly, differing greatly one from the other.

Secondly, that person would be pretending that he knows which promises, lately given the grotesque appearance of the scientific, will be broken.

This is because if what the old parties in the new government are planning to do comes true, there will be no macroeconomic stability whatsoever.

At the moment, we may only comment on what the government has really done on macroeconomic stability. That is very little, and even that little was done poorly. For instance, nobody knows how we are going to cover the budget deficit next year. The deficit was even a problem this year.

Let’s not mention that we are going to continue breaking our own laws.

Sadly, the budget review process and the enacting of its concomitant laws were non-transparent. The budget is still horribly uninformative and, as such, an excellent vehicle for all sorts of creative manipulation. It is quite disappointing to see that MPs knew very little about these proposals, just like the Serbian public. There is no single clear idea about subsidies. Money is being squandered left and right without having any effect on the economy, apart from pushing out the private sector.

Money is being squandered left and right without having any effect on the economy, apart from pushing out the private sector

utilisation of space and not from a higher VAT rate which, after all, burdens

Economic programmes are not adjusted to the real needs of the economy and nobody knows what the effects of those programmes will be. On one hand, the government is talking about austerity, while on the other it is creating new economic programmes. You cannot do both. There is no meaningful social policy. There is no detailed ‘poverty map’, the very poor have virtually no rights, and it has become terribly expensive to exercise their few existing rights. This is just adding fuel to the fire of corruption at all levels.

The state has virtually stopped reimbursing money to certain categories. This bill will have to be paid soon. There is also the difficult problem of not knowing which revenue comes from which power level. The fondness for violence on the market still lives on, although mostly in the form of an appeal. It is obvious that public sector reform is not going to happen, particularly in areas like health, education and pensions. If that happens, the aforementioned services will be available only in theory and that would be a true catastrophe. This is also a sure way to downfall since if we do not work on the big spenders, we are doomed. Even if public finances achieve some kind of equilibrium, it would be in spending, which can never facilitate fast development. Poverty has been stalking us for years. Most problems are corrected by those who have created

the poor and stimulates inflation. ■

them. That will certainly not end well. ■

would be a step in that direction, but these increases would not be enough to compensate for the reduced revenue from the lower salary contributions.

Permanent consolidation is possible only with comprehensive and coherent public sector reform as the “Macroeconomic Analyses and Trends” bulletin has reported many times. Reform is feasible only if the process of corporatisation of public goods and rights (primarily city owned land and land plots) is carried out and by reforming the pension system, (which would be for the most part emancipated from the central budget). By doing so, we would be able to achieve fiscal decentralization which entails releasing local budgets from the central budget through the creation of an authentic local source of fiscal revenue – the city rent which would largely be spent on infrastructure. This would lead to lower central budget transfers, as well as the end of the central budget receiving revenue from local income tax, which would be subsequently abolished. In this way, the compensation for lower salary contributions and employed capital would come from a fiscal base which would be made up of property and income from

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focus

Another Missed Opportunity Saša Radulović, Economy Expert

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he budget review is neither bankruptcy nor salvation. It is just a continuation of the agony that our economy has been experiencing and yet another missed opportunity.

We lost 670,000 jobs from 2008 to April 2012 when the last survey on labour was conducted. According to this survey, we have lost 66,000 jobs in the time between two surveys. Only civil servants have not lost their jobs.

The most important measure of this review is higher VAT. We expect to have a revenue of EUR 400 million from this newly increased VAT alone. This is exactly how much fiscal decentralization has cost us. This decentralization has led to local spending spiraling out of control although nowhere in the world is income tax considered a local revenue.

Would it be better if we abolished it instead of increasing VAT? Higher VAT leads to higher prices which, in turn, reduces spending which causes a drop in production and the same VAT revenue. It seems that the minister is counting on inflation as an ally in this review. There will not be realistic growth. The only ostensible growth will be in inflation.

The only good thing to come out of this set of measures is making order in the fee system. A fee is a money that we pay for the services that the state provides and cannot be used as a parafiscal burden that will fill out the budget.

The VAT system will collapse since VAT is paid once an invoice is paid. The excise system will collapse because we are refunding the oil excise to certain groups of buyers. The opportunities for abuse are countless here.

Our social policy is futile, bearing in mind that the government is reimbursing the so-called 13 pension and refunding VAT on baby prod-

The only good thing to come out of this set of measures is making order in the fee system ucts. Social policy is exercised through social cards. You have different critieria according to which a family is considered a social case. Then a family applies for social security. The state performs a random check, and those who cheat on social security are severly punished. Just like anywhere else in the world.

Why are we losing jobs? Because of huge fiscal burdens on labour.

If a painter or a computer programmer is paid EUR 300, they need to pay the state EUR 120. This is unreasonable. The result of this is a huge gray economy. On the other hand, the taxes that corporations pay on their assets are virtually non-existent. Hiring is expensive, possessing something is cheap. If we are serious about production, then production needs to be the most profitable. A flippant economy does not create jobs.

While we were ‘buying’ jobs a dime a dozen, we were, at the same time, losing thousands of them. We have been squandering tax payers money on irrational investments and subsidies for all sorts of things.

We did not analyze it. We did not analyze the effects of it.

Half of the ministers in the new government were also ministers in the previous government when the system started to fall apart. What has been done wrong in the economy? What needs to be changed?

Instead of answering these questions, the review continues where the former government stopped. We are doing everything the same, yet we expect a different result. ■

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Higher Unemployment Zoran Popov, Economist

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he Serbian budget review and concomitant measures will neither cause the country to go bankrupt nor bring salvation. In terms of the current situation of the Serbian economy, the aforementioned measures have minor importance. Their end result could be summed up in few points which clearly demonstrate that the measures will not save Serbian economy but will, quite likely, result in a further decline in living standards and an increase in poverty.

To be precise, the measures will somewhat alleviate the decline of the living standard of the poorest population, but that is almost insignificant. This category, which is made up of over a million people, is on the verge of hunger so alleviating the drop in their living standards will not help much. Inflation will grow even more rapidly without a chance of reducing it in the following ten months. As a result of all of the above, the economic situation in the country will worsen, a drop in production will be more pronounced, while unemployment will probably go up.

On the other hand, Serbia is not facing bankruptcy. This can be seen from analyses made by foreign experts and institutions. Certain local economists have talked about bankruptcy, probably with the in-

For the Serbian economy to recover, many actions will have to be taken, and they will have to be far more serious and far-reaching than a budget review and complimentary measures tention of getting themselves into the public eye. Of course, Serbia could be facing bankruptcy if, in the following few years, the economy does not recover, that is to say if we do not start tackling the many major economic issues and if the state is unconcerned about eliminating corruption and crime.

It seems to me that such conclusions are quite logical for two reasons. Firstly, the Serbian economy has been in a deep economic crisis since 1989 (maybe even earlier), more than two decades.

As a result, industrial production has fallen to the level of the early 1960s, agricultural production has not shown growth for several decades, transport infrastructure lags far behind Western European countries, and prices of almost all products (especially food) are higher than in other European countries. Secondly, the budget review and its concomitant measures obviously have very limited reach and their primary task is “to bring the fire under control”. In order to start tackling the long-term, deep-rooted problems of the Serbian economy, we need to instigate a process of recovery and start eliminating corruption and crime.

For the Serbian economy to recover, many actions will have to be taken, and they will have to be far more serious and far-reaching than a budget review and complimentary measures. The first step in that direction would be devising a long-term strategy for economic recovery which would be based on re-industrialization, the revitalization of agriculture and modernization of transport infrastructure (especially roads). We do not have such programmes currently, and it seems to me that economic experts who have been hired to work with the government cannot create it. Secondly, this programme should not be based on the concept of economic neo-liberalism. ■

apr 2012 business leader’s meeting point

Page 46

Nikola Laketić,

Director of Avalon Partners

No Quick Fixes Page 47

Georgios Panoutsopoulos,

Piraeus Bank, Assistant Director for Product Development and Marketing and PR

Page 48

Violeta Jovanović, Executive Director of NALED

Savings Week and Beyond

Certified Responsibility

Page 54

Page 52

Milan Knežević,

Miljana Vidović,

The Agony Will Continue

One Step From the Finish Line

Deputy Chairman of the Association of Small and Medium Enterprises

Director of Renewable Energy Ventures

local news

Cooperation

Business Dialogue 01

The New GL-Class from Mercedes

“The main message is that we (Serbia and Albania) should cooperate and be led by common interests in the future. We should recognize what brings us together, since in the past we lost pace in many things.”

— Ivan Mrkić, Serbian Foreign Minister

02

First Class Driving

Piraeus Bank Acquired Geniki Bank

The superior comfort of the sevenseater's ride as well as its outstanding power and confident performance are really convincing even when the going gets really rough

First Class In the SUV world, the new GL-Class is setting new standards in comfort, dynamics, safety, elegance and efficiency and with this spectrum it is regarded as the S-Class among off-road vehicles.

This premium SUV is able to demonstrate its exceptional capabilities in everyday situations with dense city traffic, over very winding roads or on well-built motorways as well as way off the beaten track. Here the multi-talent’s qualities are even more evident.

Whether driving over tracks with potholes, continually altering road surfaces or dusty natural trails interspersed with off-road sections – the superior comfort of the seven-seater’s ride as well as its outstanding power and confident performance are really convincing even when the going gets really rough.

First Class Fuel Consumption The new GL-Class gives extremely efficient and outstanding performances. Fuel consumption of the GL 350 BlueTEC 4MATIC is 7.4 litres diesel per hundred kilometres which is about 20 % less than its predecessor, and at the same time it undercuts the future EU 6 emission standards.

First Class Interior The GL-Class spoils its passengers with an interior which comes up to the first class standards of a luxurious saloon. Up to seven passengers are able to enjoy the outstanding seating. The elegant interior decoration is dynamic and full of vigour with high-quality materials and great attention has been paid to details. Extensive trim elements in various kinds of wood or in aluminium, controls in silver-chrome and upholstery in permeable man-made leather material underline the overall high-quality impression.

First Class Design The GL-Class 2012 can immediately be recognised as part of the Mercedes-Benz SUV family, with its pronounced dynamic strength and sporting elegance. At the front, the design is dominated by the GL’s typically upright radiator grille with its central star and the clear, high-quality design of the headlamps – the new Mercedes-Benz LED signature. we take it personally transport + logistics

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Piraeus Bank signed on October 19 a final agreement with Société Générale regarding the acquisition of Société Générale’s total stake (99.08%) in Geniki Bank.

Piraeus Bank management is confident that the acquisition of Geniki Bank offers synergies to the enlarged Group and facilitates its forthcoming recapitalization.

Mr. Michalis Sallas, Chairman of the Board of Directors of Piraeus Bank Group, stated: “Following the acquisition of selected assets and liabilities of ATEbank, Piraeus Bank continues to play a leading role in the Greek banking sector’s restructuring. The addition of Geniki Bank will further strengthen our capital and funding sources and improves our positioning for the upcoming recapitalization.”

This agreement falls within the process framework that has been defined by the Bank of Greece and the Hellenic Financial Stability Fund (HFSF) aiming at the restructuring of the Greek banking system and strengthening its financial stability. The terms and conditions of the transaction have been approved by the HFSF. The transaction is expected to be consumated before the end of 2012 and is subject to final regulatory approvals.

The aggregate consideration for the acquisition of (i) 100% of Geniki shares held by Société Générale and (ii) Société Générale’s receivables corresponding to the capital advances, was agreed at €1 mn.

It should be noted that total equity of Geniki Bank stood at €100 mn at the end of March 2012.

With Geniki Bank, Piraeus Bank acquires a fully capitalized and self-funded bank. Piraeus Bank is uniquely positioned to restore the operating performance and profitability of Geniki Bank, leveraging upon the synergies that will result from its integration into Piraeus Group.

This acquisition will improve the financial and strategic position of Piraeus Bank and will increase its overall attractiveness in the context of the forthcoming recapitalisation of Greek banks.

03

Telenor

Good Results in 3rd Quarter Serbian Telenor's revenues in the 3rd quarter amounted to RSD 11,347 billion, an increase of 10.7 percent compared to the same period in 2011 The number of subscribers has reached 3.25 million, an increase of 3 percent compared to the third quarter of 2011. Capital costs were reduced by almost half compared to the same period last year, after network modernization earlier this year.

“Telenor Serbia continues to record revenue growth and continues to strengthen its market position, despite the unfavourable macroeconomic environment and the very strong competition. We remain determined to provide our customers

with even faster, safer and more reliable services, and we plan to continue with new investments in our network,” said Erlan Neten, Chief Financial Officer.

Placements & Postings

Wars “We should not wage wars and we must not forget the wars we waged.” — Tomislav Nikolić, Serbian President

GREEN BUILDING

appointments@cma.rs

www.cordmagazine.com/corporate/appointments.html

Marija Golubovic Named to USGBC Faculty Energo Energy Efficiency Engineering CEO and Technical Director Marija Golubovic received yet another great accolade for her work in the field of green building.

In September 2012, Golubovic has become a licensed member of the USGBC Faculty The success is even more significant considering that only ten countries outside the US have a combined total of 15 USGBC Faculty, and now a Serbian professional is among them.

“USGBC Faculty™ are expert practitioners in the green building industry and the only individuals authorized to teach USGBC education programmes. With hundreds of courses a year taught worldwide, Faculty are on the front lines of the green building movement, educating thousands per year on the use and value of green building practices and the LEED rating systems. They are passionate advocates, advancing USGBC’s goal of market transformation through fundamental education initiatives. With an increasing international presence, Faculty are helping to shape the global green building market,“ according to the USGBC website.

In practice, this means that Serbia will now have the opportunity attend LEED education courses based on the original USGBC education programme, starting with LEED GA and LEED AP education, up to the CMP courses taught by Energo Energy Efficiency Engineering.

One particular advantage is that now LEED education can be taught in the Serbian language, although the exams remain in English.

In June 2012, Golubovic was also elected by the USGBC as one of the International LEED Advisors, thanks to the very successful LEED certifications of green buildings and great experience as one of the leading green building experts in Europe.

ENERGO LEED Consultant and LEED Certification Process Administrator for the New Beograd Plaza Centers Shopping Mall Energo Energy Efficiency Engineering, the leading Serbian company in sustainable building certification will perform the LEED certification of the new Plaza Centers shopping mall to be build in Belgrade, the company announced in a statement to the press.

“The fact that we were chosen for this complex project represents a significant recognition of the technical know-how and management skills of Energo in the particularly strict and selective field of the LEED Protocols”, said Marija Golubovic, CEO of Energo.

Johannes Eigner New Austrian Ambassador to the Republic of Serbia

Predrag Ćulibrk Acting director general of Telekom Serbia

Aleksandar Obradović New acting CEO of Electric Power Industry of Serbia (EPS)

Johannes Eigner was born in Bad St. Leonhard in 1960. He completed his studies (Dr. iur) in Graz and postgraduate work in International Law at the University of Strasbourg, France.

He was appointed to the Austrian Embassy in Moscow in 1987 as press attaché and later, in 1992, as Deputy Chief of Missions until 1995.

From 1995 to 1999, he served in the Austrian Foreign Ministry as Deputy Head of the OSCE Department before being named to the post of Deputy Head of Mission at the Austrian Embassy in Bratislava from 1999 to 2004. In 2004, Mr. Eigner joined the Department for EU-Enlargement within the Austrian Foreign Ministry. He became head of the Department for EU-Enlargement in 2005, and in 2008 was named Deputy Director General for Economic Affairs and European Integration.

Mr. Eigner was appointed Austrian Ambassador to Serbia on October 23, 2012.

Predrag Ćulibrk was born in Ruma in 1968 and graduated from the Belgrade Faculty of Economy, Telecommunications Department, in 1994. The same year, he started to work in Telekom Serbia (called public enterprise PTT Serbia at the time). Ćulibrk has been working for Telekom Serbia since 2005 as the director of the strategic planning department. The same year he was also appointed director of the strategy and development department. He was responsible for applying new initiatives in the telecommunications sector and implementing the project called “Telekom Serbia”. He was also a coordinator of activities pertaining to the company’s privatization. Ćulibrk was appointed director general of M:Tel (a Telekom Serbia company) in June 2007, and is now director general of Telekom Serbia.

Aleksandar Obradović was born in Belgrade in 1974 and is an economics graduate. He completed his economics and business studies at Prague’s Anglo-American University and obtained his Masters degree in the Czech Republic and in the United States.

Mr. Obradović has worked in a German publishing house, Jürg Marquard Group Publishing, and in the Prague office of the French consultancy ATOZ Marketing Services. He was also director for the Czech , Slovakian, Serbian and Montenegrin markets at Arthur D. Little, as well as working as a strategy manager at French cement maker Lafarge. Mr. Obradović was also the head of Nove Elektrane Republike Srpske, which is a joint company established by ČEZ and Elektroprivreda Republike Srpske. Apart from that, he was ČEZ’s director for Serbia and managing director of EneTel Solutions.

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Progress

Business Dialogue Interview

“European banks have made significant progress in boosting their capital positions and in strengthening the overall resilience of the banking system. Banks are now in better shape to finance the real economy but must continue on the path.” — Andrea Enria, Head of the European Banking Authority

Nikola Laketić, director of Avalon Partners

No Quick Fixes Many problems in domestic energy practice have this aura of unsolvability mainly because of a lack of knowledge, experience and good will on the maintenance part. When factory management hits a “wall,” the time is right for them to get in touch with us

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he economic crisis has demonstrated just how important it is to consider every single overhead and loss.

Only those factories that have concurrently raised the quality of products and cut back on operative costs have succeeded. This tendency will grow in the future – says director of Avalon Partners Nikola Laketić in an interview for CorD.

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■ You specialize in electrical energy efficiency activities but what is really interesting is that you do a detailed technical analysis of each individual solution. What do clients get from that and could you illustrate that with an example?

- Electrical energy efficiency is a relatively broad term – it covers anything from power demand, curve optimisation and power factor correction to resolving problems associated with voltage like higher harmonics, asymmetry and voltage sags. There are no quick fix solutions for such a wide range of problems. For instance, one of the biggest open pit mines in the country has had problems in connecting a new excavator to a power source due to overloaded existing transformer stations. New transformer stations and the supporting switch gear cost a huge amount of money, and the delivery period is very long. By measuring and analyzing the load profile, we came to the conclusion that transformer’s capacities were trapped in reactive power. Also, the fast fluctuating excavator current posed a problem. After conducting an in-depth analysis we made a proposal to the investor to which he agreed, and we have solved the problem with dynamic filtering power factor correction unit at 35 kV busbars. The solution was implemented in less than 60 days and the total investment yielded a return in about two years in the form of reduced costs of reactive power.

■ You have over 400 clients all over the region. When is the right time for the companies to turn to you? Do they need to contact you only when they have to use electrical energy more rationally?

- The electric bill is still a significant overhead and it is obvious that money can be saved there. Apart from delivered electricity, we need to take care of other aspects of electricity utilization like voltage quality, conductor and transformer losses, load optimisation, and equipment stresses. Many problems in domestic energy practice have this aura of unsolvability mainly because of a lack of knowledge, experience and good will on the maintenance part. When a factory management hits a “wall,” the time is right for them to get in touch with us.

■ What are the overall advantages of electrical energy ef■ This year is nearly over. Are you satisfied with your busificiency and do you think that companies here are aware of ness results this year and what are your plans for next year? the losses sustained from not applying these methods?

- Last year, we recorded 30% growth which is a fantastic result.

- It is important to mention that This year, we have maintained We have a product and service portfolio 2011 levels despite the market electrical energy efficiency is not only about your electricity bill. For that is exceptionally competitive outside woes, but we should not stop at instance, due to voltage quality the regional market too, and we are fully that. We are continuing to work fluctuations huge losses can occur on improving our presence in the prepared for what 2013 will bring because of disruption in producregion since there are no compation, rejects, uneven the quality of the finished product or damnies of this profile in the area. Our experience shows that, duraged equipment. This is where the biggest battle on the market ing a crisis, the demand for our services grows, and we do plan is waged. We are trying to point out to domestic companies to increase our turnover. We have a product and service portfolio that is exceptionally competitive outside the regional market that electrical energy efficiency has a much bigger potential in too, and we are fully prepared for what 2013 will bring. ■ reducing operative overheads.

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Greece

Interview

“I honestly haven’t seen any austerity in Greece. It’s a rich country with a high level of consumption and the present situation in Greece is far better than what we experienced in Estonia in the early 1990s.” — Jürgen Ligi, Estonian finance minister

Georgios Panoutsopoulos, Piraeus Bank, Assistant Director for Product Development and Marketing and PR

Savings Week and Beyond Attractive offers in the offing during Savings Week in the beginning of November

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anks do not only want you to borrow money, but they encourage you to save yours too. In an interview with CorD, Piraeus Bank’s Georgios Panoutsopoulos talks about the offers in savings which exist not only during Saving’s Week, but all year round.

I also believe that, overall, banks participating in ‘Savings Week’ will place a premium on attracting deposits with varying maturities, that is to say not equal to twelve or even six months, so as to reduce the concentration of deposits maturing in any single period, by diversifying into three, five, and nine-month deposit periods.

■ What kind of benefits is Piraeus Bank preparing for its savings account holders?

- As a Serbian bank that is part of the Piraeus Bank Group, Piraeus Bank AD Beograd offers deposit products in all major currencies prevailing on the Serbian market (RSD, EUR, CHF, GBR and USD) with standard, upfront or monthly payments of interest.

It should be noted that Piraeus was the first bank in Serbia to introduce deposit products that allow for the partial withdrawal and use of funds without breaking the entire time deposit.

Piraeus 30 and Piraeus 50 are the most popular savings products. They enable the depositor to withdraw up to 30% or 50%

■ Research has shown that interest rates on deposits in Serbia are higher comparable to the region. How would you explain that?

- This is largely due to the characteristics of the local banking landscape. There are thirtythree credit institutions in Serbia, and competition among them is fierce, both with respect to products as well as rates and tenors. This means that depositors have a high degree of choice, maybe higher than in neighbouring jurisdictions, both with respect to local currency deposits as well as euro deposits.

At the same time, the National Bank of Serbia is interested in the “dinarisation” of the economy. This implies maintaining the purchasing power of the dinar and, by extension, places emphasis on dinar-denominated products. For its part, Piraeus bank seeks to attract depositors with various products, applying a mix of favourable rates and customized product characteristics to meet consumer needs.

■ What are your predictions about interest rates on savings which the banks will offer to citizens during ‘Savings Week’?

- ‘Savings Week’, taking place in the first ■ Recently, Piraeus Bank presented its week of November, is not the only period new savings product Piraeus 2x6 which when banks offer special conditions on has been promoted as ‘Savings Week savings. Deposit products are available All Year Around’. Could you tell us more throughout the entire year, designed to meet about the product? the needs of depositors with favourable in- Piraeus Bank is keen to provide attractive terest rates. deposits to its customers all year round. Our During ‘Savings Week’, we expect proresearch shows that consumers motional interest rates to indiBanks, and Piraeus Bank especially, are making placing money into time deposits viduals for euro deposits to range from 4.0% to 4.5% for periods every effort to be transparent in their advertising are sensitive to the rate of return, of up to 6 months, from 4.5% to of the true cost and benefits of deposit products a bank’s reputation, and the flexibility offered via early with5.0% for up to 12 months, and respectively of the deposited amount withdrawal. Our view is that depositors will ulti4.0% to 5.0% for longer terms above 12 out cancelling the term deposit. Moreover, mately go for the longer term and the higher months. For dinar term deposits to individuPiraeus 30 is offered for all possible periods, returns it offers. als, we expect interest rate offers to range from one to twelve months, tailored to indiWe thus recently launched a new term from 10.0% to 11.0% for periods of up to 6 vidual customers’ needs. deposit product called Piraeus 2x6 savings in months and from 11.0% to 12.0% for periIn addition, we also offer the Piraeus Preeuros covering two six-month periods. Upon ods of 12 months. mium Plan, a three-year euro term deposit expiration of the first period, interest is acPersonally, I feel that depositors will be where the interest increases annually. The crued on the principal and continues to the inclined to take advantage of longer-term Piraeus Premium Plan is best suited for denext period at a higher interest rate. At the deposits. At the same time, the banks, and positors aiming for returns beyond one year. same time, it allows withdrawals of the deposPiraeus Bank especially, are making every Finally, very attractive offers in dinars it after the first period of six months, without effort to be transparent in their advertising and Swiss francs term deposits with higher losses in terms of interest received. Piraeus of the true cost and benefits of deposit prodinterest rates for shorter periods comple2x6 thus seeks to extend the beneficial rates ucts, especially with respect to the returns ment Piraeus’ offers in ‘Savings Week’. of ‘Savings Week’ over the entire year. ■ calculated after taxes. cordeditorial@cma.rs

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Business Dialogue Interview

Price “Every nation has to either be with us, or against us. Those who harbor terrorists, or who finance them, are going to pay a price.” — Hillary Clinton, US Secretary of State

Violeta Jovanović, Executive Director of NALED

Certified Responsibility Consumers will know that they are buying a safe product and that they got all the information they need. Business partners will know who they are doing business with since the information about socially responsible companies will be transparent.

If a company has sincere and clear relations with its consumers, employees, business partners, local community and environment that will significantly enhance the company’s public and business image

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he first five companies have received the CSR Certificate from the National Alliance for Local Economic Development (NALED) and have thereby positioned themselves at the forefront of a group of socially responsible companies which entails carrying out more humanitarian activities. In an interview for CorD magazine, NALED executive director Violeta Jovanović explains what the certificate means to consumers, business partners and social community.

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formation about a socially responsible company will be transparent. They will know the company’s financial situation, whether their invoices will be paid, who the company’s owners are and in which markets they operate. Simply put, they will be certain.

All of that is of benefit to the company which is awarded the CSR Certificate since, if it manages to fulfil all conditions in the process, it will increase its own capacity and catch up with companies in developed countries. On the other hand, if they have sincere and clear relations with their consumers, employees, business partners, local community and the environment ■ What was the idea behind the launch of the CSR Certificate project? that will significantly enhance the company’s public and business image. This, in turn, will strengthen their market position - Corporate social responsibility is frequently becoming a and increase revenue. Banks are more eager to grant loans to hot topic much more in the European Union than in Serbia. socially responsible companies. FiTherefore, we wanted to make CSR a relevant topic in Serbia too. Our aim We have created a standard which nally, the state appreciates such comwas to explain what a company needs you cannot find in more developed panies more, which certainly should not be overlooked in business. to do in order to be able to call itself countries, and that is a fact socially responsible. By awarding ■ How difficult is to get this certificate since there are 119 certificates, we wanted to ensure a clear validation that will set indicators that have to be met? that a particular company apart from a multitude of other companies which claim to be socially responsible but which actually - It is certainly not easy. We have compiled the list of indicators based on the experiences from 40 countries and the numstill need to do a lot in order to be able to call themselves that. ber of criteria clearly shows just how extensive is the area of corporate social responsibility. This list is now considered a ■ What guarantees does this certificate give to companies, national standard for what needs to be done in order to obtain clients and consumers? the CSR Certificate. We have split the criteria into five areas.

- Specifically, consumers will know that they are buying a safe Number one: corporate management, where the companies are product, that they were given all the needed information, and required to implement a transparent and ethical management that they can complain to a manufacturer if something is not and supervision system. The second area is the market, where right and that their complaint will be considered. Business partners will know with whom they are doing business since the incompanies need to foster fair relations towards their suppliers, 98 November 2012

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Ratifications “We have had 16 and half ratifications, but we hope to hope to have 20 by the end of the year, including the UK.” — Vesna Pusic, Croatian Foreign Minister competitors and consumers. The third area is work environment, which means setting up a safe and motivating environment for employees where everybody is given equal treatment, where there is no gender inequality and where everybody has the same chance for promotion. Last but not least, there is an environmental protection area and the way companies treat local communities. The first five companies that have received the certificate needed six months on average to meet the 119 criteria. We have created a standard which you cannot find in more developed countries, and that is a fact. In implementing this project, we have received help from Smart Kolektiv and the Balkan Community Initiative Fund (BCIF). The initiative was also supported by the U.S. Agency for International Development (USAID) through a programme implemented by the Institute for Sustainable Communities (ISC).

■ The first five companies have been recently awarded certificates. What sets them apart from the companies that do not have a certificate?

- The companies that have received the certificate are Coca-Cola Hellenic Serbia and Montenegro, Eurobank EFG, Holcim Serbia, Sunce Marinković and Tigar. When you look at these names you can see that the certificate means a lot to them and that they have recognized the fact that there is more room for improvement.

These companies have no problem in admitting that. All of them have now raised their operations by one level and can rightly ex-

socially responsible companies and give them an advantage as a reward for the effort invested in reaching such high standards.

■ How would you rate the level of corporate social responsibility in Serbia?

- Foreign companies which have come to Serbia in the past ten years have brought with them many good practice cases including socially responsible behaviour. They gave an excellent example to domestic companies with some of them actually embracing this work ethic. The problem is that such companies are few and far between, and such is the realistic picture of CSR in today’s Serbia. Reaching the set standards should be considered an investment, not a cost or lost time. It takes time for an

The European Union has and will have high demands for companies when it comes to CSR and they are bound by a new policy which the EU has recently adopted. When the accession moment comes, we should not be unprepared to enter such market pect to reap the benefits I have mentioned earlier. The great advantage for them lies in the fact that they have met the criteria with flying colours which is an important indicator of how much they have worked on themselves and how much they have advanced.

■ Essentially, the CSR Certificate is a validation of a company’s socially responsible behaviour. How and why is such behaviour important today?

- The European Union, to which we aspire to be a member, has and will have high demands for companies when it comes to CSR, and they are bound by a new policy which the EU has recently adopted. Future business operations will depend on how much a company adheres to the socially responsible standards, and it will affect state subsidies. When the accession moment comes, we should not be unprepared to enter such a market which, in the meantime, will continue to progress and set the bar even higher. On the other hand, the state can also help with the preparation by implementing policy that would honour the

investment to yield a return, but when you know that by making this investment you will be neck-and-neck with the companies that seemed unreachable to you only yesterday, then you can perceive how useful the certificate can be.

■ Are you satisfied with the interest that companies have shown for the certificate, the interest shown for fulfilling the required conditions?

- The project is in its first year, but we can already say that we are more than happy. We were very pleasantly surprised by the huge interest shown by the companies which already have the certificate for working with us in other areas too. This is the first clear and tangible piece of evidence that we did the right thing by launching the process of CSR certification.

■ What are your expectations? How many companies could ‘adorn’ themselves with the CSR Certificate?

- I expect the number to be higher than this year. After the first awards ceremony, we started to hear from many companies.

What is especially important is that we are contacted not only by large companies but also small ones. This process is perhaps even more important for them. The big companies have already positioned themselves on the market, but it is the small ones that will have to fight. This certificate will certainly make their job easier. ■ cordeditorial@cma.rs

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regional news

Business Dialogue 01

Reforms “It is crucial for Slovenia that reforms are enforced by the end of this year... to ensure normal repayment of our debts and normal functioning of the public finances.” — Janez Jansa, Slovenian Prime minister

Bulgaria

Cutting Red Tape by 20% Bulgaria's Economy and Energy Minister Delyan Dobrev has boasted about the results of state measures to attract investors

Delyan Dobrev promoted the results of the reimbursement of social security payments to big investors and the opportunity for projects in the sphere of services to take advantage of such privileges. Dobrev added that the privileges had only been applicable to investments in equipment and real estate prior to the recent amendments.

He specified that big Bulgarian and foreign investors had had the opportunity to not pay social security contributions for their employees for a period of 2 years, adding that the Ministry of Economy, Energy and Tourism had earmarked a sum of BGN 2.5 bn (EUR 1,27 bn) for the measure.

“In exchange for this, we save the money for unemployment benefits, which amounts to EUR 360,000 - 410,000 for the first nine months, while the law requires that the jobs are kept for a period of five years,” Dobrev stated.

He added that an Indian IT company was about to create no less than 900 jobs in Bulgaria. The administrative burden on businesses would be reduced by 20% by end-2012 and that the e-government would be launched in spring 2013.

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Hungary

Chance to Link China-Europe Freight Hungary is expecting to play an important role as a bridge between Western, Eastern and Southern Europe

Daniel Wieland, senior vice-president

“With growing distances into the Chinese hinterland, rail-based transport directly from there to Europe can generate economic advantages and ideally complement the possibilities of air freight and sea freight,” says Daniel Wieland, senior vice-president of rail logistics and forwarding at DB Schenker.

Prospects for economic growth through multiple methods of transport in countries within the “Mediterranean Corridor/Corridor V” were examined at a conference in Budapest last month, with Hungary said to be well-placed to play an important role as a bridge between Western, Eastern and Southern Europe.

The conference, organised by the Hungarian-Italian Chamber of Commerce, focused on “Pan-European inter-modal corridors as opportunities for regional development from an anti-crisis perspective” rail logistics and forwarding at DB Schenker

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Source: The Budapest Times

Slovenia

Raiffeisen to Scale Back in Slovenia Raiffeisen Bank International will scale back operations in Slovenia but continue to serve clients there in a retrenchment the Austrian lender described as specific to that market 50 |

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Croatia

Eight Bidders to Advise on Highway Operator Croatia collected eight bids to advise the government on selecting an operator for its new highway system, said Transport Ministry official Marija Hrebec Macquarie Group Ltd. (MQG), Goldman Sachs International (GS), BNP Paribas SA (BNP) and N M Rothschild & Sons submitted individual bids to advise on the search for strategic partners for the project, Hrebec said in the Zagreb last month. Offers ranged from KN 50 million (EUR 6.64 million) to KN 86 million (EUR 11 million), she said.

Croatia is trying to upgrade its infrastructure and transport links as it prepares to join the EU in 2013.

The future operator will run the highway system for 30 to 35 years in exchange for as much as EUR

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Albania

Three Agreements Signed With Bulgaria Three agreements were signed during Bulgarian Prime Minister Boyko Borisov’s official visit to Albania. They are in the area of education, science and culture, econBoyko Borisov, omy and readmission of people staying Bulgarian Prime Minister without a permit.

PM Borisov and the governmental delegation visited Albania end last month at the invitation of Albanian Prime Minister Sali Berisha.

During the visit, Bulgarian and Albanian businessmen met while Boyko Borisov met with his Albanian counterpart, Parliament Speaker Jozefina Topalli as well as Tirana Mayor Lulzim Basha.

The Bulgarian delegation comprised of Minister of Regional Development and Public Works Lilyana Pavlova, Minister of Economy, Energy and Tourism Delyan Dobrev, Healthcare Minister Desislava Atanasova, Minister of Education, Youth and Science Sergey Ignatov, Culture Minister Vezhdi Rashidov, Deputy Interior Minister Veselin Vuchkov and Sofia Mayor Yordanka Fandakova.

“Due to the competitive environment in Slovenia and in order to optimise the allocation of resources within the group, we intend to rescale our operations in the country,” an RBI statement said in response to media reports about the move.

“This will go hand in hand with a An outlet of Austrian bank Raiffeisen International in reduction of assets over time and an Ljubljana, Slovenia www.cordmagazine.com

3 billion, Transport Minister Sinisa Hajdas Doncic said Zagrebacka Banka d.d., a unit of UniCredit SpA (UCG), and JP Morgan Chase & Co. (JPM) made a joint bid, as did Erste Bank Group AG (EBS) and Deloitte and a group made up of Lazard Frères, Watson Farley and Williams LLP Paris, according to Hrebec. Odvjetnicko Drustvo Bardek, Lisac, Musec, Skoko, Sarolic d.o.o. is the final bidder in a joint bid with CMC ReichRohrwig GmbH Vienna and the Economy Institute of Zagreb.

Source: Businessweek

adaptation of resources in the next years,” it said on Tuesday.

RBI had 17 outlets and employs 326 in Slovenia, where it is the 10th biggest bank, it said. It did not say how many branches or jobs might go in Slovenia, which accounts for around 1 percent of group assets.

Consensus “ Kosovo has created a broad consensus of the political and academic leadership, of the necessity of normalization of bilateral relations between Kosovo and Serbia.” Hashim Thaci, Kosovo Prime Minister

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Bosnia and Herzegovina

Cooperation With Azerbaijan In the middle of last month in Baku, Azerbaijan, a business forum was held, attended by over 70 businessmen from Bosnia and Herzegovina and Azerbaijan After the talks between Azerbaijani President Ilham Aliyev and Chairman of the Presidency of Bosnia and Herzegovina Bakir Izetbegovic, a ceremony of signing the Azerbaijan-Bosnia and Herzegovina documents was hosted in presence of delegations.

Azerbaijani Minister of Education Misir Mardanov and Minister of Security of Bosnia and Herzegovina Sadik Ahmetovic signed a “Cooperation agreement in the field of education between the Ministry of Education of Azerbaijan and the Ministry of Civil Affairs of Bosnia and Herzegovina”.

Azerbaijani Deputy Foreign Minister Khalaf Khalafov and Minister of Security of Bosnia and Herzegovina Sadik Ahmetovic signed a “Convention on the elimination of double taxation with regard to profits and property and the prevention of tax evasion between the Azerbaijani government and the Council of Ministers of Bosnia and Herzegovina”.

Khalafov and Ahmetovic also signed an “Agreement on the cancellation of visas for persons with diplomatic and service passports between the Azerbaijani government and the Council of Ministers of Bosnia and Herzegovina”.

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Placements & Postings appointments@cma.rs

www.cordmagazine.com/corporate/appointments.html

Milan Krkobabić was born in Kačarevo in 1952.

He completed his high school education and then graduated from the Belgrade Faculty of Economy.

He has been working in banking and finance for 30 years. He started off as a bank intern and later went on to become a director of a financial organization. He is one of the founders of the Party of United Pensioners of Serbia (PUPS). Today, he Milan Krkobabić is one of the party’s presidents. In August 2008, he was appointed deputy mayor of Belgrade and New director worked for four years at that post. He is married of public enterprise and has two children.

Serbian Post Offices

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

Montenegro

New Golf Course to Boost Property Market

Montenegro is one of the few markets in the world that has remained positive during the financial crisis, or at least it saw very few of the negative effects that became so commonplace

Kotor Bay Montenegro

Now that things are once again starting to look up for overseas property, Montenegro looks well-placed for a revival. This will hardly be hurt by the news that the country is to receive its first European PGA golf course in Kavac overlooking the Bay of Kotor. The course, which will take about two and a half years to complete, will be just five minutes from Europe’s newest and most exclusive yacht marina at Porto Montenegro.

The WTTC already predicts that Montenegro will be the fastest growing tourism destination within 10 years. By 2021, tourism is expected to contribute EUR 2 bn or 37.3% of GDP, with the world’s highest projected annual growth rate for investment of 16.4% p.a..

“This is a major development in the leisure profile of Montenegro.

For Sea Breeze, the first luxury villas on the market in the golf zone, it means a massive upside in terms of both facility and letting potential for our buyers. They will benefit from being the first completed properties in the zone and from EUR 181 m of someone else’s money pouring into their direct environment and adding value as a result. We predict that having PGA golf on the door-step will now increase rental-yield and volume as well as adding significantly to capital gain potential,” said John Kennedy, founder of the Boka Group and Sea Breeze developer.

Torgny Svenungsson New head of Swedish Development Cooperation in Serbia

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

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

Steve J. Froustis received his Bachelor of Science Degree - Cum Laude and Masters Degree in Business Administration from Arizona State University.

He started his banking career in 1992 holding various positions of responsibility in large banking groups operating in Greece.

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

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

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

cordeditorial@cma.rs

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Conflict

Business Dialogue Interview

“Germany and France have no other choice but to come together. Otherwise, they will be in conflict. That’s why the European idea, despite all its mistakes and failures, remains unavoidable.”

— Nicolas Sarkozy, former president of France

Miljana Vidović, Director of Renewable Energy Ventures

■ Early this year, the government gave you its consent to extend the building permit for construction of hydro-power plants Brodarevo 1 and 2. In June, you confirmed that the feasibility study was completed.

What is next for the implementation of this largescale project?

- Over EUR 15 million and five years of work were spent on the research and preliminary work on the construction of the hydro-power plants on the Lim River. So far, we have completed the key segments in the project’s preparation. The feasibility study is done, detailed geological research has been conducted, we have made a 1:35 scale hydraulic model with over 120 experiments performed on it; our spatial plan for special purpose areas has been approved, and we have finished an environmental study that will be up for public discussion soon. Conceptual designs for the relocation of a road, adjusting the river flow and the construction of two tunnels are also ready.

One Step From the Finish Line As always, the company will continue doing everything that is required within the legal framework of the Republic of Serbia in order to reach its final goal – launching the operations of hydroelectric power plants and generating electricity from renewable sources

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■ What comes next?

- We are in the last stage of obtaining a building permit and reaching an agreement with official institutions with the aim of starting to build as soon as possible.

As the preliminary activities are nearly done, we plan to move on and start building. As always, the company will continue doing everything that is required within the legal framework of the Republic of Serbia in order to reach its final goal – launching the operations of hydroelectric power plants and generating electricity from renewable sources.

The project’s progress has been slowed down due to the fact that the guaranteed subsidized electricity price is now in question. We do hope that we will reach an understanding and get support from the state in order to overcome this emerging problem. Further project progress will certainly depend on the state, which should continue to demonstrate its firm resolve and openly cooperate with the companies that are investing in important projects, and in the development of the country’s infrastructure. What this really means is being constructive and proactive in an approach through dialogue, stability and legal predictability, providing guarantees for invested capital and having a relatively stable economic situation.

enewable Energy Ventures has been in Serbia for the past ten years. The company’s owner is Canada-based Reservoir Capital Corporation whose shares are traded on the Toronto, Berlin and Frankfurt stock exchanges.

The company’s largest shareholders are known for their considerable investments in renewable energy sources and mineral raw materials. At the beginning of her interview for CorD, the Further project progress will certainly depend on the company’s director Miljana Vidović state, which should continue to demonstrate its firm says that the company in Serbia is resolve and openly cooperate with the companies managed by the biggest private investor in the hydro-energy sector with an that are investing in important projects, and in the investment of over EUR 140 million. development of the country’s infrastructure

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

— José Manuel Barroso, European Commission President ■ We know how you had to overcome bureauand to hire 1,500 people to construct the plants. cratic obstructions after your arrival in Serbia At this moment, we already have 450 unemployed impeding project implementation. Could you tell people who are waiting for the works to start, providing them with a steady income. Hydro-power us what today’s cooperation in that area is like? plants, which have not been built in Serbia for the - The company had to overcome huge challenges in past 20 years, mainly contribute to the development trying to obtain the permits and fulfil all the conditions from state institutions. These challenges were of the local infrastructure, tourism, and attractive dealt with quite successfully through time and effort. As a result, we have obtained almost all the required permits and we are in a position to start constructing hydro-power plants fairly quickly. Still, as I have mentioned earlier, the company is currently trying to overcome an obstacle that has been significantly impeding the project’s progress.

After we received a confirmation that our project had been included in the bilateral energy agreement signed by Serbia and Italy, allowing for a guaranteed The output of the Brodarevo 1 and 2 hydro-power plants will be 59 megawatts which means that the annual production subsidized electricity price, we learned would amount to over 230 gigawatt hours, enough to supply that even that is now 60,000 households with clean electric energy uncertain. Still, as usual, we are pressing ahead with our activities activities such as water sports. During the construction, as well as in later stages, the community will with optimism and hope that we will resolve this be educated on renewable energy sources, environnew issue in the shortest possible time so that we mental issues and importing modern technologies can keep the sustainability of the entire project. which they will apply when using water power.

■ Sometimes the local community can exert a great influence on a project’s development, be it ■ When do you expect Brodarevo to start generating energy and, once the system is completed, negative or positive. What are your experiences how important is it going to be for Serbia’s overwith this? all energy potential?

- Our collaboration with local authorities has been - The output of the Brodarevo 1 and 2 hydro-power thus far good and their approach has been fair and plants will be 59 megawatts which means that its understanding. We cannot say that this applies to annual production would amount to over 230 githe local community as a whole, but we are working on that. All our efforts are focused on giving gawatt hours, enough to supply 60,000 households them a better understanding of the advantages that with clean electric energy. The biggest importance all sides will enjoy once the hydro-power plants are of these power plants is that they can be used in built. A thorough and serious environmental impact striking a balance in electricity grids since their production can be controlled, unlike solar or wind enstudy, written during the preparation stage of the ergy. This means safer distribution of electricity durproject, shows that we have identified and included ing the season when consumption is at its highest: in the plan everyone that would benefit from these in summer and winter when people use electricity hydro-power plants – the local authorities, local community, environment and businesses, as well as for cooling and heating. The better part of this direct the state and the investor. For instance, local people investment will be spent on construction work, with local construction workers being engaged, and new will participate in the construction of the power jobs being created both during the construction plants and economic development. phase and once the plants become operational. ■ Our plan is to complete the project in four years cordeditorial@cma.rs

But that is not all...

The project will become even more important for the environment since we are talking about clean energy. There will be no emissions of harmful gases, no burning of non-renewable fossil fuels or undue degradation of the environment. The power plants’ dams are designed in a way to have fish locks, enabling the uninterrupted movement of fish both up and downstream. There are also a number of other solutions that will alleviate or eliminate the impact on the flora and fauna in the vicinity of reservoirs. The local community can feel safe and will be able to control the river flow with no negative effects on people and land in the Lim River basin. Also, we will avoid constant land erosion and flooding. |

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Business Dialogue Interview

EU “People feel that in too many ways the EU is something that is done to them, not something over which they have a say.” — William Hague, British Foreign Secretary

Milan Knežević, Deputy Chairman of the Association of Small and Medium Enterprises

The Agony Will Continue The Serbian economy has been turned into a huge welfare institution that only takes care of employed people, settles its financial obligations toward the state and pays interest rates to banks. Nobody cared or cares about it. We are waiting for the collapse to happen

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he 2013 budget awaits us. Judging by the ecoof the aggregates are negative – foreign investments, purnomic measures we have seen so far, is there any chasing power, living standards - while aggregate demand reason to be optimistic? What will happen to the is declining and business overheads are growing. Loans economy and macroeconomic environment next year? have become expensive and most companies are struggling to repay their inherited financial obligations. Nearly - The government is continuing to perpetuate the inherited matrix that caused the economic crisis. The new 60,000 small shops and 14,000 companies have had their measures are actually old measures. We cannot be cured bank accounts frozen. The state doesn’t know what to do by the same system which has infected us and brought the with the 173 companies that are undergoing restructuring. Close to EUR 700 million is spent on these companies economy to the verge of collapse. Raising the VAT rate will annually, and they account for 60,000 employees. There reduce investment volume, slow down turnover, reduce is also the problem of the 1,300 state-owned companies company profit, and will not stop the declines in purchasing power and aggregate demand. Raising profit tax will which cannot be privatized. The state has no solution for also further burden the economy. The same goes for fuel the biggest problems. Even if it had, it wouldn’t be able to excise since the increase will spill over into business oversolve them. The agony will continue. heads. How can anybody consider all of this as economic relief is beyond me! There is no relief. Abolishing some ■ What is your view of the proposals made by the National Council for Economic Recovery which is made of the parafiscal burdens will only slightly reduce overheads. Also, paying VAT once an invoice is settled will not mostly of business people? reduce business expenses.

- The composition of the The black market and gray economy are National Council for EcoOverheads are overheads, the ‘plague’ of the country’s economic nomic Recovery doesn’t however you call it and whenever you pay it. Small system. This phenomenon spans across look promising. The Counbusinesses are not going to 40% of the total goods and services sector cil is made of six people from the Privrednik Busiuse cash registers, but will ness Club, which is a creation of the Chamber of Comhave to issue cash bills. Again, I really do not know how merce, and banking and political mentors. The Council this constitutes a benefit. proposes cheaper loans for export-oriented companies, and cheaper loans for tycoons that import. They do not ■ Experts estimate that the crisis will hit the hardest care about the government subsidizing interest rates next year. What could that mean for our economy and with taxpayer money. They took out loans with six or what we need to do to recover from it? seven percent interest and are repaying them with a - The time for economic recovery has been wasted on 3.5% interest rate. The half-dead economy is paying meaningless improvisations and ‘ingenious’ solutions. subsidies. The proposals are so ridiculously meaningless.

The Serbian economy has been hit by all of the biggest For instance, one idea is to reduce the required bank economic woes – high inflation, high unemployment, reserves so that banks will have more money for loans. recession, and widespread illiquidity and insolvency. All

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Action “The significant lack of political pluralism on television is very worrisome and requires immediate action.”

— Catherine Ashton, High Representative of the Union for Foreign Affairs and Security Policy This would lead to higher inflation and a depreciation of the dinar. The proposal for the state to issue guarantees to construction companies so that they can compete in tenders here and abroad is also senseless. If that is the case, then the state should issue guarantees to all kinds of companies. All in all, the measures boil down to what the import lobby wants – give us cheap loans so we can import and do business, keep the euro exchange rate low and let us have a privileged market position by allowing us monopolistic behaviour. The banks that serve them say the same thing. The Council members are giving suggestions that would benefit themselves.

tailored to their needs. Unfortunately, the black market and gray economy constitute the government’s social programme for 1.5 million citizens.

■ Small and medium enterprises are the driving force behind economic growth, but it seems that that doesn’t apply to our economy since SMEs have had to carry the biggest burden of the crisis. What is your view of that? How is it possible and how long will it take SMEs to return to the Serbian economic scene?

■ Could you tell us what are the key problems of the domestic economy and how can we resolve them?

- The key problems of the domestic economy are illiquidity and insolvency, huge public debt, a drop in GDP, mounting unemployment, high indebtedness of the state, businesses and citizens, hyperinflation of 12%, and a lack of structural reforms carried out in the public sector, pension system and healthcare.

The solution is to conduct very painful structural reforms which simply have to be done. In order to do that, we need good politics and professional credibility. That is precisely what the governing elite do not have. The measures that we proposed were not popular and they are the following: a comprehensive tax reform, law on limited payment terms, a crafts act, changes to the labour law, strongly fighting the black market and gray The key problems of the domestic economy are illiquidity economy, market equality and insolvency, huge public debt, a drop in GDP, mounting guaranteed by the Constitution, reforming the public secunemployment, high indebtedness of the state, businesses and tor and deep-rooted changes citizens, hyperinflation of 12%, and a lack of structural reforms in the structure of the busicarried out in the public sector, pension system and healthcare ness and economic system.

- Small and medium enterprises and small shops employ ■ Foreign investors often complain about unfair com56% of the total number of working people in the country. petition and the gray economy. There is no mention This sector creates 46% of the additional value. Unfortunately, it is this sector that is at most risk due to its huge fiof these two problems in the government’s platform. nancial obligations toward the state. Also, income tax at 63% How serious are these problems? and high labour fees are intolerable. Close to 330,000 SMEs - The black market and gray economy are the ‘plague’ run the risk of not surviving in the next two years because of the country’s economic system. This phenomenon of enormous public spending, a completely unregulated spans across 40% of the total goods and services sector. business environment, unfair competition, reduced liquidIt abolishes constitutionally guaranteed market equality, ity, and over-indebtedness. We did propose a solution for and it completely wipes out pricing logic – businesses the problem. Unfortunately, the Serbian economy has been not settling their financial obligations toward the state turned into a huge welfare institution that only takes care of have a huge advantage over those that operate legally. Another evil are monopolies, which certain companies hold employed people, settles its financial obligations toward the because of their dominant market position. These posistate and pays interest rates to banks. Nobody cared or cares tions are usually acquired through political ties and laws about it. We are waiting for the collapse to happen. ■ cordeditorial@cma.rs

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world news

Settlement

Business Dialogue 01

“I don’t think it is in Britain’s interests to leave the EU but I do think that it is increasingly becoming the time for is a new settlement between Britain and Europe.”

— David Cameron, British Prime Minister

US

The Priciest U.S. Addresses An exclusive area of New York's Upper East Side, where the median price for a home is $6.5 million and the most expensive will reach $40 million, has become the priciest address code in the United States, according to Forbes

The tree-lined streets that border Central Park and the East River and run from E. 61th to E. 69th streets, home to media mogul Rupert Murdoch and cosmetic tycoon Ronald Perelman, bumped Alpine, New Jersey from its perch on the annual list.

“This is the first time that a Big Apple neighbourhood has topped our list,” Forbes said of the New York area with the ZIP code 10065. “The main factor driving listing prices in America’s most expensive ZIP codes this year is lack of inventory.”

Alpine, the affluent New Jersey neighbourhood where the median house price is $5.75 million and its ZIP code is 07620, dropped to the No. 2 spot, followed by Atherton, in California’s Silicon Valley with a 94027 postal code.

Sagaponack, the Southampton village on Long Island in New York where singer Billy Joel and Goldman Sachs chief Lloyd Blankfein enjoy the summer sun, came in fourth for the second consecutive year. Hillsborough, just south of San Francisco California, rounded out the top five.

Forbes added that wealthy foreign buyers have helped push up prices as they look at cities like New York, Los Angeles, Seattle and Source: Reuters Washington D.C. for a place to park their money.

04

Russia

Rosneft Offers BP $28 bln for TNK-BP Stake Russia’s largest state-owned oil company Rosneft has offered British oil major BP $28 billion in a cash and shares deal for its 50 percent stake in the TNK-BP joint venture Rosneft submitted its bid mid last month, according to people familiar with the deal. Rosneft Chief Executive Igor Sechin flew in to London on October 17 for talks on the deal, Financial Times reported.

“The move would be transformational for Rosneft. Absorbing half of TNK-BP would make it the world’s largest publicly traded oil company, with higher crude production than global energy titans Exxon Mobil and Royal Dutch Shell,” the FT said.

BP is currently holding talks both with the AAR consortium of Russian billionaire shareholders, which owns the other half of TNK-BP, and Rosneft on a possible sale of its stake, which analysts previously said could be worth $25 billion.

BP announced its decision to quit TNK-BP, which accounts for a quarter of the British oil giant’s global production and almost a fifth of its reserves, in June 2012 after a long-standing row with the Russian oligarchs that cost BP some of its control over the company.

Source: RIA Novosti

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02

China

MGM China Build New $2.5bln Macau Casino The Chinese arm of U.S. casino company MGM Resorts International signed a land deal for a new $2.5 billion casino resort in Macau, the world's biggest gambling market MGM China Holdings Ltd. said it formally accepted a long-awaited land concession contract from the Macau government for a 7.2 hectare plot in the Cotai district, an area of reclaimed land that’s earmarked for all new casinos in the Asian gambling haven. The land lease is for 25 years.

MGM China is paying $161.4 million for the land, including a $56.2 million down payment. The rest will be split into eight equal installments.

The company plans to build a casino resort with a “truly unique

03

Finland

MGM experience” that will include a five-star 1,600-room hotel, 500 gambling tables and 2,500 slot machines. The company is a joint venture between Las Vegas-based MGM Resorts International and Pansy Ho, daughter of Macau casino kingpin Stanley Ho. Macau’s casino revenues have rocketed since its government opened gambling to foreign operators about a decade ago.

The former Portuguese colony raked in $33.5 billion in gambling Source: AP revenue last year.

More Bad News from Nokia

Nokia Corporation is expected to unveil more bad news when it reports its third-quarter results as the struggling cellphone maker faces increasing competition from rivals during its transition to using Microsoft’s software in its devices.

Analysts say sales and profits will plunge, with a further drop in market share for the former industry leader that lost its top position to Samsung earlier this year. Strategy Analytics expects Nokia to sell 8 million smartphones in the quarter compared with Samsung’s 55 million and Apple Inc.’s 27 million iPhones. Markets will be watching keenly if the Finnish company’ teaming up with Microsoft Corp. last year has helped reverse its slide and raise the company’s profile.

Source: AP

05

Azerbaijan

BP Meets SOCAR

The bosses of BP Plc and Azerbaijan's state oil company SOCAR met to discuss the future of the Azeri ACG oilfield just days after the country accused the British oil company of making "false promises" about output there SOCAR building, Baku, Azerbaijan

In a statement dated Oct. 17, BP said the president of the Azerbaijan state oil company SOCAR, Rovnag Adbullayev, met BP group chief executive Bob Dudley in London.

The statement said the parties agreed to continue working closely together to manage oil production from the Azeri-ChiragGuneshli fields in the Caspian Sea for the benefit of the State of Azerbaijan and its partners.

“It was an open and constructive meeting and the task ahead is clear. BP is fully committed to Azerbaijan and the effective management of the ACG field complex, one of the world’s great oil Source: Reuters fields,” Dudley was quoted as saying.

British “I would like a UK fully engaged in Europe, but I can’t decide in place of the British. I see that for the moment they want to be more in retreat.” — Francois Hollande, President of France

06

07

France

‘Beauty Drinks’ in France

Egypt – the Largest Foreign Investor in Algeria

The drinks will be made of mineral water, fruit juice and nutrition additives The drinks will be positioned under the Oenobiol Beautific brand, but Coca-Cola declined to provide further details. The Coca-Cola business unit in France said in a statement that the drinks will be sold in a “small scale pilot” limited to a number of pharmacies in the country.

Earlier this year, Coca-Cola in France introduced Sprite with stevia, a natural sweetener that has no calories. The launch followed its introduction of Fanta with stevia in 2010.

Sanofi, a drug maker based in Paris, bought Laboratoire Oenobiol in 2009; the company makes nutritional supplements for skin and hair care.

The partnership to make the drinks was reported earlier last month.

The drinks will come with claims that they “help strengthen hair and nails, embellish skin, lose weight and improve vitality.”

08

North Korea

North Korea Seeks Chinese Tourists

The Democratic People's Republic of Korea is improving its infrastructure in the hope of attracting more Chinese tourists Hong Yin-chel, head of the publicity bureau of the DPRK national tourism administration, noted that the DPRK offers a wide variety of tourist attractions ranging from its spectacular natural beauty to cultural and religious heritage.

The number of Chinese tourists traveling to the DPRK has shot up over the past two years. Around 60,000 to 70,000 Chinese tourists visited the country last year, according to Sin Kyong-jin, head of the DPRK national tourism administration’s Dandong office.

He added that he expects his company to send 40,000 tourists to the DPRK this year, up from 20,000 in 2010. The cost of traveling to the DPRK is also relatively competitive, with four-day tours from Dandong to Pyongyang priced at about 2,500 yuan ($400).

Analysts said that the DPRK has shifted its focus from military to economic development since 2007, and is focusing on developing light industry, agriculture and services. China is the DPRK’s biggest trade partner. Statistics show that bilateral trade increased 62.4 percent yearon-year to $5.64 billion last year.

Source: China Daily

10

Turkmenistan

Foreign Investments

Turkmenistan plans to seek foreign investment to help finance a $1 billion expansion programme of its cotton industry up until 2016

The Central Asian country of 5.5 million people, which is rich in natural gas resources, is among the top 10 producers of cotton and its high quality, fine-fibre “white gold” is used for local production of jeans wear exported to dozens of countries.

“The approved programme of developing the textile industry aims to attract a total of $1.1 bn in investment in 2012-16,” Textile Industry Minister Saparmyrat Batyrov told an investment conference.

He did not elaborate on the sources or form of this investment, much of which would come from abroad.

Jeans with a “Made in Turkmenistan” label are sold in a variety of Western supermarket chains, including U.S. company WalMart.

Since Turkmenistan’s independence from the Soviet Union in 1991, more than $1.3 billion has been invested in building new textile factories and modernising existing ones. This includes $300 million in foreign investment,” Batyrov said.

Algeria

Prime Minister Hisham Kandil (left) in a meeting with Algerian President

Abdelaziz Bouteflika

Egypt's investments in Algeria amount to $6 billion, representing the country's largest foreign investment, the government revealed end last month

Cairo recently signed several economic agreements with Algeria, as disclosed by a report on Prime Minister Hisham Kandil’s official page. Kandil’s visit to Algeria counts as the first of a high-ranking Egyptian official following the uprising that toppled former President Hosni Mubarak.

Businessmen and other members of the Cabinet including the Petroleum and the Communication Ministers accompanied the Egyptian PM on his visit.

The Egyptian-Algerian ties were rigorously affected by a football match in 2009, which led to the departure of a large number of Egyptian laborers from Algeria.

In the aftermath of this hassle, Algeria accused Djessy GSM owned by Egypt’s Orascom Telecom of tax evasion by the estimate of two billion dollars, but Orsacom denied the charges.

Fifty Egyptian enterprises operate in Algeria; investments in the construction sector exceed $3.76 billion and in the telecommunications sector mount up to $2.29 billion.

09

Singapore

The Most Business-friendly for 7th Year Straight For the seventh year running, Singapore has come out in pole position in a ranking of the 185 economies in the area of business-friendliness But the Doing Business report by the World Bank and the International Finance Corporation (IFC) released yesterday noted that the improvements made to Singapore’s regulatory environment have been minimal each year, and that the next few economies in the rankings have been closing the gap.

Singapore improved by only one per cent from last year; the score for second-placed Hong Kong, on the other hand, went up 5 per cent.

The Doing Business report assessed the economies in 11 areas of business regulation, among them, the ease of starting a business, getting construction permits, electricity and credit, paying taxes, enforcing contracts and employing workers.

It focused particularly on regulations relevant to the life cycle of a small to medium-sized domestic business in the most populous city in each country.

The report found that 23 economies in East Asia and the Pacific have made their regulatory environments more business-friendly since 2005, with nearly half having done so in the last year, making Singapore’s position at the top less certain in the long term. cordeditorial@cma.rs

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after work Piraeus leasing

henkel serbia

Piraeus Leasing and Piraeus Rent Marked 5th Anniversary At the end of September, Piraeus Leasing and Piraeus Rent celebrated its 5th anniversary of successful operations on Serbian market in the Caruso restaurant

During the official part of celebration, which was held in presence of close associates and business partners, business results and future goals were presented.

Guests were addressed by the CEO, Konstantinos Tsiolis, who noted that forthcoming period brings new challenges which will lead to new responses from these companies that will strengthen their position of reliable and strong partner for clients in Serbia.

Neoclis Neocleous, (left) Chairman of Piraeus bank ExBo and Konstantinos Tsiolis, CEO of Piraeus Leasing and Piraeus Rent CARLSBERG SERBIA

Čelarevo Breweries - 120th Anniversary During an exclusive reception in honor of the 120th anniversary of Breweries Čelarevo, Carlsberg Serbia presented a limited edition "Dunđerski beer"

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Henkel - 10th Anniversary in Serbia

Henkel has celebrated the first ten years of successful business in Serbia festive celebrations in the City Hall

On this occasion, Mr. Günther Thumser, President of Henkel Central Eastern Europe congratulated Serbian Henkel first decade of successful operations by emphasizing the importance it has in the global organization of Henkel. Mr. Georg Grassl, President of Henkel Serbia commented on the successful business outcomes, and the past of the total investments of €130 million. The audience was told of investments in the current year in the amount of €7.5 million in a new production plant in Krusevac. The celebration continued with a cocktail party, and the guests enjoyed the performances Plants Krstic and Bistrik orchestra and string quartet White witches

Georg Grassl, (left) President of Henkel Serbia and Günther Thumser, President of Henkel Central Eastern Europe

Henkel Management Team

In honor of the 120th anniversary of the Čelarevo Breweries, Carlsberg Serbia organized an exclusive reception on October 18 at the Student Cultural Centre in Belgrade. During the reception, invited celebrities were given the opportunity to taste the new “Dunđerski beer”, launched in honor of the founder of the Čelarevo brewery - Lazar Dunđerski .

The VIP reception was attended by celebrities, as well as representatives of the diplomatic corps, the leaders of the most successful companies in Serbia, the most important partners of Carlsberg Serbia and its employees.

After a short theatrical performance, the guests enjoyed live musical performances and a new taste from Čelarevo - “Dunđerski beer.”

“We are launching limited edition of

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“Dunđerski beer in honor of the founder of the brewery, famous landowner and philanthropist Lazar Dunđerski . We are glad that our loyal customers are happy with another excellent taste which will they will be able to enjoy in the future,” said Ralph Zigerlig ,CEO of Carlsberg Serbia.

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faces & places 27.10.2012 Serbia – Indonesia Business Forum

The first Serbia-Indonesia Business Forum took place at the Ball Room of Serbian Chamber of Commerce, organized by the Indonesian Embassy in Serbia and Serbian Chamber of Commerce on the issue of business opportunities between Indonesia and Serbia.

26. 09. 2012 American Chamber of Commerce

Member companies of the American Chamber of Commerce in Serbia (AmCham), representing 160 American, international and local companies, met with Prime Minister and Minister of Internal Affairs of the Republic of Serbia, Ivica Dacic. The Prime Minister met with representatives of major domestic and foreign companies on the implemented initiatives and plans of the new government in the area of improving the business climate.

Miloš Djurković, President of the AmCham Serbia (left) and Ivica Dačić, Serbian Prime Minister.

28.09.2012

Indonesian Ambassador to Serbia H.E. Mr. Samuel Samson

Mr. Samuel Samson (left), Dragan Nikolic, General Manager Tigar Pirot and Deddy Saleh, Director General of Foreign Trade, Indonesian Ministry of Trade.

National Day the People’s Republic of China

The ambassador of the People’s Republic of China HE Mr. Zhang Wanxue organized a reception at the Chinese Embassy in Belgrade to celebrate the 63rd Anniversary of the Founding of The People’s Republic of China.

Nikola Selaković, Minister of Justice and Public Administration (left), HE Mr. Zhang Wanxue and Tomislav Nikolić, Serbian President 01.10.2012 „Third Iraqi Cultural Week“

01.10.2012

From the 1st to October 5 in Belgrade, the Third Iraqi Cultural Week was held, starting a with concert and Iraqi fashion show at the Sava Center followed by a succession of events in several locations throughout Belgrade, depicting present musicians, visual artists and filmmakers from Iraq.

Deputy Prime Minister Aleksandar Vucic and H.E. Dr. Falah A. Abdulsada, Iraqi ambassador to Serbia at the opening of the exhibition of Iranian artists Riad Al Qays Nebojsa Stefanović, President of Serbian Assembly opened Iraqi cultural week in Sava Center

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Nebojša Stefanović, president of Assembly of Serbia and HE. Mr. FrançoisXavier Deniau French ambassador in Serbia

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National Day of Cyprus

On the occasion of the National Day of Cyprus, Cypriot Ambassador HE Ms. Nafsika Krousti hosted a reception at the residence of the Embassy, which, in addition to the President of Serbia, Tomislav Nikolic, was attended by members of the diplomatic corps and personalities from political and public life of Serbia.

HE Ms. Nafsika Krousti and Serbian President Tomislav Nikolić Ms. Nafsika Krousti welcomes Greek Ambassador and H.E. Mr. Dimosthenis Stoidis

02.10.2012

EBRD WeBSEFF sustainability energy Excellence Award 2012

On October 2, the WeBSEFF held its first ever Awards Ceremony in Serbia. The 90-minute ceremony was attended by almost 100 prominent guests from private companies, banks, ministries, donors and the media.

The keynote speech was delivered by Ljubomir Aksentijevic, Special Advisor to the Minister of Energy, Development and Environmental Protection, and a presentation was made by Ian Brown, Director of the EBRD Resident Office in Belgrade. The participants were informed about the current status of sustainable energy in Serbia and the achievements of EBRD’s Sustainable Energy Initiative and the WeBSEFF. 03.10.2012

Laureates of the EBRD WeBSEFF sustainability energy Excellence Award for 2012

The Day of German Unity

In the residence of newly appointed German ambassador to Serbia, HE Mr. Heinz Wilhelm, was a reception to mark the 22nd anniversary of independence and united Germany was organized, attended by Serbian President Tomislav Nikolić and Prime Minister Ivica Dačić.

Cultural, political, commercial and diplomatic figures enjoyed the festive atmosphere while sipping the famous German beer. The President and Prime minister of Serbia was helped by the German Ambassador to cut the celebratory cake.

05.10.2012 National Day of South Korea

On the occasion of the National Day of the Republic of Korea, Korean Ambassador H.E. Mr. Kim Keun Kwan held a reception which was attended by Serbian President Tomislav Nikolic. The reception at the Hyatt hotel was attended by many representatives of political and cultural life and the diplomatic corps of Serbia. The National Day in South Korea celebrates the first Korean kingdom of the 2,333 BC.

Prime Minister Ivica Dačić (left), German Ambassador Mr. Heinz Wilhelm and Serbian President Tomislav Nikolić

08.10.2012 Marking of the 45 years since the death of Che Guevara

An exhibition of painter Ljubinke Fimić Siba, under the heading ‘The memory of Che Guevara’ was organized to mark 45 years since the death of Che Guevara, and was held at the Russian House in Belgrade.

Mr. and Mrs. Kwan welcomed the guests

H.E. Mrs. Hannah Hubackova, Czech Ambassador to Serbia and H.E. Ali Rıza Çolak, Turkisn Ambassador

Director of Russian House Mikhail Denisov and Ambassador of Cuba in Serbia, H.E. Ms Mercedes Martinez cordeditorial@cma.rs

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faces & places The UN Agencies - helping marginalized groups United Nations agencies in Serbia have launched a two year project valued at $ 2.8 million, funded by the UN Fund for human security and to assist marginalized groups in Southwest Serbia, creating new jobs, improving access to services and intercultural dialogue.

In Southwestern Serbia, more than 60,000 people in 6 municipalities will benefit from the project, mostly from socially and economically disadvantaged groups, especially women, youth and Roma.

09.10.2012

UN Resident Coordinator, Mr. William Infante The Foreign Investors Council presented the White Book 2012 to Prime Minister Ivica Dačić and the highest officials of the Serbian Government. This year’s edition, published in 10t anniversary year of the FIC, represents the basis for continuing dialogue between foreign investors and the government on ways to improve business climate in Serbia.

The key note speaker was Ivica Dačić, Serbian Prime Minister.

Opinions were exchanged between the Serbian officials Zorana Mihajlovic, Minister of Energy, Development and Environmental Protection, Mladjan Dinkic, Minister of Finance and Economy and Jorgovanka Tabakovic, Governor of the NBS. On the other side, the FIC were represented by Costin Borc, FIC President, and FIC Vice Presidents Gabor Bekefi and Goran Pitić.

16.10.2012 White Book 2012

Prime Minister Ivica Dačić

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14.10.2012 Fragrances of Japan in Belgrade and Niš

Japanese Embassy in Serbia organized the “Fragrances of Japan” event, which shows a demonstration of Ikebana (the Japanese art of flower arranging), calligraphy (beautiful art of writing) and ceremonies of aroma. The demonstration was performed by renowned Japanese master Kihachiro Nishiura.

Nishiura is a descendant of Nishiura Enjija, founder Nishiura Yaki pottery, which during the Meiji period (from 1868 until 1912) was recognized both in Japan and abroad because of its outstanding technical and artistic commitment.

Kihachiro Nishiura explains how to “listen” to smells 17.10.2012

Annual Members Diner

Members of the German-Serbian Business Association organized on October 17 traditional business dinner. The key speaker was Zoran Mihajlovic, Minister of Energy, Development and Environmental Protection on the issue of the plans of the new government in the field of energy sector. The dinner was attended by over 150 members of the association, hosted by Michael Schmidt, Director of the German-Serbian Business Association.

Director Michael Schmidt and Minister Zoran Mihalović

23.10.2012 Hungarian National Day

On the occasion of the National Day of Hungary, Hungarian Ambassador H.E. Mr. Oszkar Nikovitz organized a reception at the Hyatt Hotel, attended by the President of Serbia Tomislav Nikolić and representatives of cultural, political, diplomatic and business elite.

25.10.2012 National Day of the Czech Republic

On the occasion of the National Day of the Czech Republic, the Czech Embassy organized a reception, attended by Serbian President Tomislav Nikolic, as well as many members of the diplomatic corps and public and cultural life in Serbia. The host was H.E. Mrs. Hannah Hubackova, Czech Ambassador to Serbia.

Mr. and Mrs. Nikolić and Mr. and Mrs. Nikovitz (middle)

H.E. Michael D. Kirby U.S. Ambassador and H.E. Mrs. Hannah Hubackova, Czech Ambassador to Serbia 25.10.2012 Austrian National Day

On the occasion of the Austrian National Day and 60th anniversary of economic relations between Austria and Serbia, the Austrian Embassy organized a reception in the City Hall, which brought together over two hundred distinguished guests from the world politics, business, diplomacy and culture.

The hosts of the evening were Mr. Wolfgang Wagner, Charge d’Affairs and Mr. Andreas Haidenthaler, Commercial counselor at the Embassy of Austria.

The guests were welcomed by the new Austrian Ambassador to Serbia HE Mr. Johannes Eigner.

Austrian Ambassador to Serbia HE Mr. Johannes Eigner welcomes HE Mr. Zhang Wanxue Chinese Ambassador

25.10.2012 “Oktoberfest” in Rakovica

“Oktoberfest,” a festival for beer lovers, was opened on October 25 in the premises of “Messer-Tehnogas” in Rakovica. The one-day festival was “transferred” from Munich and organized by the German-Serbian Business Association and the Delegation of German Economy in Serbia.

The famous festival was officially opened by the newly appointed German Ambassador to Serbia H.E. Mr Heinz Georg Wilhelm All proceeds from this event will go to “SOS Children’s Village” in Kraljevo.

Austrian Ambassador HE Mr. Johannes Eigner (left) on opening ceremony and Michael Schmidt (right), Director of the German-Serbian Business Association

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culture calendar CONCERTS

composers (Johannes BRAHMS, Georges BIZET, Aram KHATCHATOURIAN, Gioacchino ROSSINI, Pablo de SARASATE, Johann STRAUSS and Piotr TCHAÏKOVSKI). Sándor Buffó Rigó is now the President, the Artistic Director and the leader of the orchestra with József Lendvai Csócsi as master of Violins. One of the most outstanding members of the orchestra is the cimbalom virtuoso Oszkár Ökrös. The Orchestra has never ceased to play and has already had enormous success over the last years in many world-famous concert halls and festivals, leaving the audiences speechless while transmitting energy of the people who chose music as universal language.

ČEDA MARKOVIĆ Sava Center 1 November @ 20.00 One of the best folk singers Čeda Marković will have a big solo concert called „Soulful Songs to Enjoy“. Belgrade audiences will be able to hear Marković’s long lasting music and wonderful folk songs. Also, many of Čeda’s friends and colleagues from the folk music industry will attend the concert.

J LO, Kombank Arena 20 November @ 20.00 Globally popular pop diva Jennifer Lopez will perform at the Kombank Arena on 20th November during the European leg of her world tour ‘Dance Again’. An actress, an entertainer, a musician, a film and TV producer, a fashion designer and a great philanthropist, Jennifer Lopez has been called one of the most influential show business people ever.

Marković began his career at Radio Skopje by singing the songs from the Vranje area until the 1980s. He has been a singer for over three decades and is very respected for his original folk singing. By staying true to the original folk music he managed to withstand the onslaught of new music genres. His interpretations of hit songs like “Stani suzo izdajice”, “Drugovi moji, drugovi”, “Žal iz mladosti”, “Ako me nekad poželiš”, “I da se vrate godine mlade”, are widely known.

100 GYPSY VIOLINS Budapest Gypsy Symphony Orchestra Sava Center 8 November @ 20.00 “The Budapest Gypsy Symphony Orchestra” (also known as “100 Gypsy Violins”) is the biggest Roma symphony orchestra in the world.

It was founded in 1985 at the funeral of Sándor Járóka, one of the most famous Hungarian violinists. Many Hungarian Roma musicians attended the funeral. Following the burial, they started to spontaneously dance and the orchestra was born.

Today, the orchestra has 60 violins, 9 violas, 6 cellos, 10 basses, 9 clarinets and 6 cymbals. Their repertoire includes the famous Hungarian and international Roma music composed by acclaimed musicians (Vittorio MONTI, Grigoras DINICU, Elemer SZENTIRMAY), as well as remakes of classical music composed by the world renowned

CLASSICAL MUSIC DREAM II Kolarac 3 November @ 20.00 As a part of Kolarac’s Classic Pop cycle, audience will have the opportunity to enjoy the performances of Goran Dime, tenor and Ivan Jovanović, piano.

BELGRADE PHILHARMONIC ORCHESTRA Kolarac 9 November @ 20.00 Conductor: Muhai Tang Soloist: Beibei Vang, percussion Programme: Respigi, Debussy, Tan

COUPLES Exhibition Guarnerius 6 November @ 19.00

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an inseparable union of male and female figures, sculpted in a uniquely stylized form, which is dominated by volume, cylindrical mass, serenity and peace in contrast to minimal movement and gesture. |

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Islamic New Year Kolarac 29 November @ 20.00 Conductor: Howard Griffiths Soloists: Fazil Saj, piano; Ajkut Kosherlerli, Turkish percussion; Hakan Gingor, kanun; and Buru Karadag, ney flute BRIT FLOYD, Sava Center, 2 November @ 20.30

„A foot in the door“ tour of Liverpudlian band Brit Floyd kicked off in the U.S. and England to the joy of many fans of Pink Floyd’s music. Brit Floyd are known for their perfect performance, a unique Floydian animation and an artistic combination of sound and light.

Rightly so, they became famous as the greatest Pink Floyd tribute band show in the world.

The European leg of their tour kicked off on 5th October with scheduled shows in Paris, Vienna, Madrid, Prague and Belgrade. Brit Floyd will perform at the Belgrade Sava Center on 2nd November 2012.

The band was formed in Liverpool in 2010 by Chas Cole, Managing Director of CMP Entertainment, and Damian Darlington, the bands Musical Director who played at the celebration of David Gilmour’s 50th birthday in London in 1996.

The tour is dedicated to Pink Đorđa) after many years. The violinist and the string orchestra will play some of the favourite pieces of the classical music greats – Sarasate, Leclair, Saint-Saens and Kreisler. The Ladies in Lavender concert will present to us the most beautiful and most loved movie music themes, which will be performed for the first time by Maestro Kolundžija.

THE MUSIC SCENE GREATS Kolarac 15 November @ 20.00 Maksim Vengerov, violin Rusten Sajtkulov, piano Programme: Bach, Beethowen, Schubert, Tchaikovski

The young Macedonian artist, the winner of numerous awards for his sculptures that adorn many public venues and collections in the region and around the world, will premiere its exhibition “Couples” in front of Belgrade audiences. These works in bronze, marble and onyx are inspired by the idea of couples whom the author considers the beginning, friendship or partnership.

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LADIES IN LAVENDER Kolarac 13 November @ 20.00 Gala concert “LADIES IN LAVENDER” will bring together our famous violinist Jovan Kolundžija and the most prominent Serbian chamber orchestra - Saint George Strings (Gudači Sv.

Floyd’s Greatest Hits compilation. “A Foot in the Door” has been visually designed to correspond to the last tour of Pink Floyd – the Division Bell Tour in 1994 – and has identical lighting and video projections for each song.

The concert will last just over two hours and Brit Floyd will perform most of the hits from every single Pink Floyd’s period including the ones from the most popular multiplatinum album “The Wall” (1979).

The band will perform all songs from the album as personally selected by members of Pink Floyd. As a bonus, and due to a great interest shown, Brit Floyd will also perform a full 23-minute version of the song “Echoes” which appeared on Pink Floyd’s album “Meddle” from 1971.

Tickets can be purchased at the Save Center and Bilet Centar.

BALLET SWAN LAKE National Theatre 1 November @ 19.30 After summer break, Swan Lake is returning for the second time to the National Theatre this autumn.

ST. PETERSBURG FESTIVAL BALLET ‘SLEEPING BEAUTY’ Kombank Arena 8 November @ 20.00 St. Petersburg Festival Ballet will perform ‘Sleeping Beauty’ in front of Belgrade audiences on the theatrical stage of the Kombank Arena on 8th November.

St. Petersburg Festival Ballet combines the best tradition and the spirit of St. Petersburg ballet. Elegance, grace, the spirit of the 21st century, perfect dancing n combination with the sublime grandeur of costumes and stage set the St. Petersburg ballet apart from others.

The Theatre often tours around the world and

culture news so far it has performed in over 13 countries.

Prima ballerinas and ballet dancers Suleymanova Guzel, Arkadis Zinovia, and Gulsina Mavlukasova have received many international

RAKIJA AND WINE FESTIVAL, Nikola Pašić Square 12-13 October Rakija and wine festival was be held on 12th and 13th October at Nikola Pašić Square in Belgrade.

At the festival, visitors were offered a taste of the best Serbian rakija, Serbian wine, but also Italian, Portuguese, Croatian and Chilean finest wines.

awards and are currently dancing in the troupe of Artistic Director Teregulov Shamil who worked with some of the most famous dancers of today Roman Rikin and Natalia Sologub.

CHILDREN DISNEY ON ICE Kombank Arena 15 – 18 November @19.00 Feld Entertainment would like to invite children and their families to come to Kombank Arena from 15th to 18th November and turn an ordinary day into an ice extravaganza day with Disney.

The production’s original storyline transports audiences to exciting events with their favorite Disney characters, including a Valentine’s Day

Serbia is famous in Europe and worldwide for its rakija. High quality rakija from various fruits - plums, quinces, apricots and pears produced in Serbia, were presented in a beautifully designed packaging, ready for the world market.

During the two days of the festival, visitors had the opportunity to enjoy the all-day music programm. Besides a good atmosphere at the festival, visitors enriched their rakija and wine bars with the highest quality beverages at promotional prices.

BELGRADE BOOK FAIR 2012 21 – 28 October

Royal Ball with Princess Tiana, a Very Merry UnBirthday Party with Alice and the Mad Hatter, Hawaiian luau with Lilo and Stitch, etc.

The show dates are the following: 15.11.2012 at 7 pm; 16.11.2012 at 7 pm; 17.11.2012 at 11:30 am; 3 pm and 6:30 pm; 18.11.2012 at 11:30 am and 3 pm.

57th International Belgrade Book Fair was held at the Belgrade Fair between October

CHILDREN’S CHOIR VRAPČIĆI Sava Center 3 November @ 19.00 Children choir Vrapčići will again perform on the stage of the Sava Center’s Great Hall. This is one of the most popular regional choirs which held a solo concert in front of the full Hall at Sava Centre in September 2007. The choir sang all of their hits - “Ti i Ja”, “Barbika”, “Dvanaest godina”, “Trla baba lan” and other – to the delight of the audience.

The children choir Vrapčići was founded twenty years ago and has been very successful ever since.

It held many concerts in several countries, performed at international events, and made 15 albums with over 80 songs.

The concert is being held to mark the cultural cooperation between

towns of Belgrade and Banja Luka and is a gift from Vrapčići to Belgrade children. The Republic of Srpska Government, the Belgrade Assembly, the town of Banja Luka and public enterprise Sava Center are the concert’s sponsors.

Entrance is free and tickets are available at the Sava Center.

OPENING OF ‘ČERN IN SERBIA’ Knez Mihailova, 19 October

"ČERN in Serbia" was opened on 19th October in Belgrade, presenting an opportunity to become acquainted with the work of this organization. The exhibition, organized by the Center for the Promotion of Science and the Committee for Cooperation with ČERN, will last until 7th November in the Gallery of shopping mall "Belgrade" in Knez Mihailova Street.

Visitors had the opportunity to see what the largest research laboratory in the world looks like as well as what part Serbia plays in this project and why.

Great interactive exhibition presents the latest developments in the largest research institution in the world - the instruments, detectors and the technology of the Large Hadron

Collider, an accelerator which proved the existence of the Higgs Boson and other key issues of modern physics.

Exhibits also present the research at ČERN. More than 30 Serbian scientists from ČERN will participate.

Within the exhibition, a rich accompanying program is organized. In cooperation with the Institute of Physics in Belgrade, in the gallery space made for lectures, a series of popular lectures was organised as well as three forums with Q&A sessions about the limits of science, about how ČERN awakens the imagination of millions of people and what is the practical purpose of this institution.

In addition, in cooperation with the Faculty of Physics, University of Belgrade, there will be popular demonstrations of physics experiments, coordinated by students of this Faculty, as well as scientific demonstrators from the Center for the Promotion of Science.

21st and October 28th 2012. The Fair run under the official slogan From A to Z and hosted 478 publishers from the country and abroad. This year’s Guest of Honor Country was Hungary, known for its strong and diverse literary and publishing tradition. This was an ideal opportunity for our neighboring country to present their writers, translators, publishers, distributors, and other representatives of Hungarian literary and culture.

During more than a decade of existence, Sinergija has become the regional brand connected not only to Microsoft technologies, but to everything that is new and actual in the IT world. As always, visitors of Sinergija Conference had the opportunity to hear the lectures of the most eminent local and foreign experts in the field of information technology.

STANDUP FEST 2012 Dom Omladine 19-21 October

SINERGIJA 12 Sava Center 23-24 October Sinergija 12 is the largest and most influential IT conference in South East Europe. Moving technology into cloud – is brief description of this year’s Conference.

Traditionally, Sinergija thematically follows the current IT developments in the world and sets the trends on Serbian market. Cloud Computing, global trend and Microsoft’s strategic orientation which has finally become commercially available on Serbian market, was once again going the central topic of the Conference. This year one step further was made and as Sinergija focused on the implementation of Cloud technologies in both commercial and public sector.

cordeditorial@cma.rs

International StandUpFest2012 gathered the best stand-up comedians from Serbia and the region, as well as comedians from the UK, Canada and Australia, a total of 20 artists.

On the first evening of the Festival, visitors had a chance to hear stand-up comedy from the region when performers from each of the former Yugoslav republics took the stage.

Among them were the debut comedians who perform in front of the home crowd: Ivan Šarić from Croatia, Saško Kočev from Republic of Macedonia and Aida Bukva from Bosnia and Herzegovina. The program was hosted by a comedian from the organization Standup. rs - Srđan Dinčić. |

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interview Antonio Lásaro Gozalo, director of the Cervantes Institute in Belgrade

Spanish Spirit in Belgrade “When I live in a certain city, I am not attracted to monumentality of its buildings but rather to how I feel living in it. I have to admit that I feel better in Belgrade, mainly thanks to the open and kind-hearted people that surround me” ■ By Sonja Ćirić Photo: Zoran Petrović

T

Dele exams which the Institute has he Cervantes Institute in ■ What is the basic mission of the Cerbeen holding on behalf of the Spanish Belgrade is one of those invantes Institute in Belgrade?

Education Ministry. Students are given stitutions that clearly enrich diplomas confirming their knowledge the cultural and social life of - The Cervantes Institute has two basic of Spanish language which are valid a the city. One of the Institute’s goals – promoting Spanish language and lifetime. These are some of our more more successful cultural programmes the culture of all Spanish speaking coungeneral activities. was the exhibition of Goya’s etchings, tries, which means Spain’s culture and “The Disaster of War and War Photograculture of all Latin American countries where Spanish is mother tongue. phy,” which was seen by over 5,000 peo■ Spanish is the mother tongue of alPromoting the Spanish language ple early this spring. most 500 million people in over 20 can be done directly and indirectly. The Although, the Institute is the youngcountries and, as such, is the second est of its kind in the in the world judging Two exhibitions that we are going to stage by the number of peoBelgrade cultural environment (it was open in in cooperation with the Cuban Embassy are ple who speak it. How December 2004), in this is Spanish lanvery interesting. We are going to present popular very short time, it has guage in Serbia? photographs of the best Cuban ballet become one of the most - Although the Cervantes active foreign cultural Institute was opened in ensemble, and showcase photographs centres according to the Belgrade in late 2004, from the most important Spanish films public. The Cervantes our academic activities Institute is located in Belgrade, on the Spanish language can be learned online started in February of the same year. I corner of the Knez Mihailova and Čika via the Ave - Aula Virtual de Español would like to underline that, at the very Ljubina streets. programme. We are also here to help beginning, we had 600 admissions. InMr. Antonio Lásaro Gozalo has been Spanish language teachers in perfecting terest in Spanish has increased so now the director of the Cervantes Institute in their knowledge of the language through we have 2,000 admissions annually.

Belgrade for the past three years. Eduorganizing various seminars. We also asCurrently, due to the economic cricated as a lawyer, prior to coming to Belsist and support the Hispanists in Serbia sis, the number has gone down a little. and research into Hispanic culture.

1,800 people graduated at the end of grade he was deputy director at the CerOf course, I have to mention the the academic year ending in September vantes Institute in Bucharest and Prague.

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Activities

We have been present in Serbia for almost nine years and during that time have realized over 400 cultural activities.

2012 which we certainly do not interpret as a decline in interest for learning the Spanish language. We just cannot take in more students due to the financial reasons. Our goal is to maintain that number. We consider that quite a success in Belgrade.

Language courses

Currently, due to the economic crisis, the number of people who attend Spanish language courses has gone down a little, to 1,800 in the last academic year.

National Library, Etnographic Museum, among others.

I would like to say that the cooperation with all of the aforementioned institutions has been very good and that they were very open to the idea of cooperating with us. If we are talking about academic activities, we have been collaborating with Belgrade University, mostly

Goals

Our goals are promoting the Spanish language and the culture of all Spanish speaking countries.

■ One of the burning topics of this and last year’s Book Fair was the number of translated books. What do you think about the number of books that have been translated from Spanish to Serbian?

- I have to say that I am quite happy with the number of books that are be■ How many cultural activities have ing translated, although I would love to see more Spanish writers you had so far? being translated into Ser- Each year we have about 50 cultural activibian. As we are talking, one of them is coming ties but I have to say that to Belgrade as our guest we count each movie - Rafael Argullol, who is showcase as one cultural one of the most promiactivity so we are talking about 50 general activinent Spanish speaking philosophers. The pubties which can be broken down to several more lishing house Geopoetika individual activities. We has published his book have been present in Ser“Lampedusa” in Serbian and Geopoetika’s director bia for almost nine years Vladislav Bajec told me and during that time that they had been planhave realized over 400 cultural activities. ning to publish all books written by Rafael Ar■ You have managed gullol. Two weeks ago, at The 1990s are not that far away.

Since the Comic Books Saloon to establish numerous contacts with Serbian 2000, stability in Serbia has been growing in the Student Cultural Centre, we had a presinstitutions. Which ones and, during this short period of time, entation of three comic would you single out?

Serbian institutions have progressed and books written by Migue- Of course we have.

One of the goals of the lanxo Prado which were are doing wonderful work. People who Cervantes Institute is to translated into Serbian. work there have great enthusiasm closely cooperate with One of the best ways local institutions, both cultural and acaof encouraging translation of Spanwith Faculty of Philology. We have been performing various cultural and academic. If we are talking about cultural ish books is via the Spanish Ministry institutions, we have been cooperating of Education and Sports’ Foundation demic activities with them. Together, with virtually every single one. Let me which assists foreign publishing houswe are inviting professors and lecturers mention a few of them – the Belgrade from Spain to come to Serbia, and we es in the translation of Spanish books.

Cultural Centre with which we organhave been organizing interesting activiOf course, I expect the Foundation’s budget next year to be reduced due ize one of our most important activities ties for students. Currently, we are workto the economic crisis in Spain, but I – the Spanish Metre, the Dom Omladine ing on bringing a member to the Royal think that the state will certainly try Cultural Centre, the Student Cultural Language Academy here. We should also to support foreign publishing compaCentre, the Madlenianum Theatre and not forget Novi Sad’s Faculty of PhilosoOpera, the International Dance Festival, phy which, two years ago, started with nies. I believe that that is the best way which was opened last year with a peroptional Spanish classes. These are some to help publishing companies in Serof the most basic academic institutions formance by a Madrid based ballet combia which have expressed interest in that we have been cooperating with.

Spanish literature. pany, BITEF, the Guitar Art Festival, the cordeditorial@cma.rs

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■ Your programme of cultural activities, especially the visual ones, depends mostly on travelling exhibitions.

Have you managed to bring to Belgrade the best exhibitions on offer?

I started to work in the Cervantes Institute in Madrid in 2001, a time when Spain was more prosperous and when cultural institutions were used to getting money from the state. Now, when the crisis has engulfed Spain too, we will have to be more imaginative in order to stage good cultural events.

ate. What would you object to our institutions of culture?

- Cultural activities are a reflection of social and political situation in the country. Let’s not forget that Spain was a very stable country until recently, and that Serbia has survived a very traumatic period in the last several decades. I am referring to the 1990s which are not that far away. Since 2000, stability in Serbia has been growing and, during this short period of time, Serbian institutions have progressed and are doing wonderful work. People who work there have great enthusiasm. We should consider all of that if we are talking about the work that institutions of culture do in Serbia.

- So far, we have had the freedom to pick and choose exhibitions that we like from the list that the Cervantes Institute in Madrid compiles. But, due to the crisis, we have to be mindful of practical reasons in picking exhibitions. For instance, if Belgrade is interested in a certain exhibition and this exhibition needs to be moved to São Paulo later, than that can be very costly. In this complicated economic situation we are going to try to coordinate better with the Cervantes Institute headquarters and other centres in ■ Lastly, we have a private question for our efforts to bring a certain exhibition here. You might prefer one exhibition you. How is life for you in Belgrade? over the other, but they are all of good - I have been living out of Spain for the quality, diverse, and true to the contempast 13 years and I have no problem with adjusting to life in a foreign counporary scene.

Two exhibitions that we are going try. I have to say that, so far, I have lived to stage in cooperation with the Cuban only in European countries. There are Embassy are very interesting. We will two ways that a person can leave his present photographs of the best Cuban homeland – as a tourist or to live in a ballet ensemble, which foreign country. I prefer We are going to cooperate with Spanish the latter. I like to live in will be very interesting. institutions more, primarily with the Another exhibition will a certain place and get to showcase photographs know it well. Prague was Spanish Embassy with whom we have from the most important my previous destination. been cooperating well so far Spanish films. The exhiAs we all know, Prague is one of the most beautiful cities in EuHow are we – The Cervantes Instibition is called “Stories about Filmmakers – Spanish Film Directors” and the tute in Belgrade – going to overcome the rope and a little bit different from Belauthor is Óscar Fernández Orengo. crisis? We are going to cooperate with grade. When I live in a certain city, I am Spanish institutions more, primarily not attracted to monumentality of its with the Spanish Embassy with whom buildings but rather to how I feel living ■ You have come to Belgrade during the we have been cooperating well so far.

We in it. I have to admit that I feel better in economic crisis. How are you managing? are going to advance this cooperation, as Belgrade mainly thanks to the open and - There is a saying in Spain that somewell as cooperate more with the embaskind-hearted people that surround me. times you have to turn a flaw into a virYou are very similar to the Spanish peotue. That happened to me when I started sies of Latin American countries in Serto work during the crisis. We have to bia even though that effort has also been ple and their way of life. If I had to menturn some of the negative things that excellent so far. I would like to mention tion one negative thing, then that would have been happening to us into positive an agreement that has been signed bebe the lack of direct flight between Belones. I would like to underline again that tween the Spanish and Mexican foreign grade and Madrid. regardless of the current circumstances, ministries according to which the two I work in the centre of Belgrade, I our cooperation with the Serbian culturcountries will support each other in cullive in Dorćol, which is a beautiful part of the town, and everything that sural institutions is easy and simple. I would ture. This means that the Cervantes Inalso like to add that cultural institutions stitute will be able to use the facilities all rounds me in Belgrade is very positive. in Serbia are capable of staging an event over Latin America.

Of course, I have to mention a great with very little money thanks to their nightlife, bars, coffee shops... All of that vivid imagination. I believe that this trait makes my life in Belgrade richer and ■ You are familiar with the way Spanish was developed during the time of crisis. similar to the one in Spain. ■ and Serbian cultural institutions oper-

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interview Borislav Stanković, Honorary Member of the International Olympic Committee (IOC) and Honorary Secretary General of the International Basketball Federation (FIBA)

Sports Have Become

TOO professional Borislav Stanković is one of the leaders of world sport, many of whom having originated from Yugoslavia and Serbia in the second half of the 20th century.

He has dedicated all of his life first to basketball and later to the Olympic movement by actively participating in their development and successes

H

is knowledge of the Olympism and the Olympic Games is still an indispensable tool for the development and popularization of global sports which qualifies Stanković as the best possible person with whom to talk about the direction that global and Serbian sport is taking, and basketball in particular.

was an economic crisis. The 1976 Olympic Games in Montreal ended in a financial disaster; the host country was left with huge debts while the IOC had only a few countries to compete for hosting the next Olympics. Also, many wondered whether the Olympic Games would survive. At that time, sport was afflicted by rigid amateurism which was strongly endorsed by then president of the IOC Avery Brundage from the US, which brought more harm than good to the world of sport. Back then, hypocrisy ruled sport – we had so-called amateurism in the Socialist block where athletes were army or police officers. These were bogus jobs giving the athletes salaries so that they could play sports. On the other side, in the US, you had students who were more athletes than students and who apparently lived off their scholarships while, in actuality, they were paid to play sports. Political tensions between East and West led to many Western athletes boycotting the Games in Moscow with the Eastern countries, apart from Romania, boycotting the Los Angeles Games in 1984 in return. On top of that, there was the issue with China which, because of Taiwan, was not allowed to join the Olympic Samaranch did was movement and global sport.

■ Your former close associate, Juan Antonio Samaranch, became the president of the International Olympic Committee (IOC) in 1980 when 5,217 The first thing that athletes from 80 countries competed in 21 sports at to tackle economic problems by insisting the Olympic Games in Moson having only top athletes compete at ■ What kind of problems did Samaranch and the IOC cow. He was also the president of the IOC during the the Olympic Games. He opened the door members have to deal with?

2000 Olympic Games in to professional sportsmen and, by doing - The first thing that Samaranch Sydney when 10,551 athso, changed the way television covered did was to tackle economic problems by insisting on havletes from 199 countries the Olympic Games ing only top athletes compete competed in 28 sports. The at the Olympic Games.

He opened the door to professional sportslatter numbers became the standard for future Olympics.

- Juan Antonio Samaranch was appointed president of the International Olympic Committee when the Olympic movement and the entire world of sport was undergoing a terrible crisis which had been brewing on several fronts. First and foremost, it

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men and, by doing so, changed the way television covered the Olympic Games. The cost of TV rights to broadcast the event was growing at tremendous speed, and the money returned to the IOC through advertisements. The IOC became financially independ-

Money

Today, the money paid to soccer, American football, baseball, and basketball players is incredibly and ridiculously high.

Financial crisis

Sport world has overcome the last financial crisis rather effortlessly. However, a similar crisis could irretrievably destroy it.

ent. This is how Samaranch introduced democracy to the Olympic movement. IOC members had their travelling expenses paid and, more importantly, the host country was paying for the costs of athletes competing at the Games. Previously, it had been that the countries participating in the Games would pay ten or twenty dollars a day for an athlete’s stay in the Olympic Village. This resulted in more countries and more athletes competing at the Games.

The problem with China’s participating in the Olympics and international competitions was solved with help from international sports federations, and that was really revolutionary as can be seen from the results accomplished by Chinese athletes in Beijing or London, as well as from having professional tennis, cycling and basketball players competing at the Olympics.

■ Today, the entire sports world has become professional...

Investment

Foreign capital will go where the stadiums are sold out and where sponsors and TV can generate them big money.

■ If we presume that sport will find a formula for reimbursing just and sustainable financial compensation for sport performances, do you think that there will be enough room for the Olympic Games to grow even more?

- That would be possible only if aliens from Mars and Venus would compete, and since that is highly unlikely it seems that the number of sports and athletes is probably going to stay at the present level for a very long time. Any expansion would be too much for the organizers to handle. However, changes will happen since some sports have been knocking at the door, and we are going to have a group of sports that will be dropped from and later included into the Games every eight years depending on how the IOC members vote. That is how baseball and softball fell out, while golf and rugby 7 will have their debut in Rio. Baseball and softball will compete in the Games in 2020, and the question remains whether rugby 7 can survive since it is not the most widespread or the most attractive type of rugby.

- Yes, but that opens up a whole new can of worms. Sport has become too professional, since no one has found a formula for paying an athlete without having to pay too much. Today, the money paid to soc■ But rugby 7 is the cheapest. cer, American football, baseball, and Jacques Rogge did rugby 7. He will basketball players is incredibly and rino longer be the president of the diculously high. One day, that will disIOC with the end of the last Olymcourage the people who are looking to pic cycle. Golf, as one of the most sports to fulfil their ideals. Those peoprofitable and the most attractive ple are still out there, and they should sports, could have a long Olympibe the very foundation of sport. If that an future. Do you think basketball does not happen, everything will be recould be in jeopardy because of the The proposal for the US to duced to “Bread and Circuses” and end idea, coming from the US, that only up just like in the Roman Empire when have young basketball players players age 23 and under should Theodosius was forced to cancel the at the Games is senseless and play basketball at the Olympics, Olympic Games. It really wouldn’t be just like in football? good if sport were to head in the direc- should not be even brought up - Because of that, football, through tion that would force a modern-day Theodosius to ban it all toFIFA, has been waging a secret undeclared war against the gether since all facets of sports, except the competitive one, had IOC for purely financial reasons. The best football players do been neglected. I am primarily referring to an educational role not partake in the Olympics so that the world football chamthat sport plays which is at its very core. pionships are not financially devalued. This is the only reason.

When they talk about sport, young people usually talk about Having only players under 23 is a bad hybrid solution. Other contracts, money, and spectators and they do not even think about sports federations take a completely different attitude toward how much more sport gives them. It is very dangerous to look at the Olympic Games. After all, some of the revenue generated sports in that way since that would imply disrespecting the edfrom the Games is given to them, and, indirectly, to the nationucational role that sport plays, socialization, the benefits of takal Olympic committees too. The proposal for the US to have ing the kids off streets and protecting them from alcohol, drugs young basketball players at the Games is senseless and should and crime, as well as the health benefits. I am afraid that greed in not be even brought up. sport could outgrow the benefits that sport provides. The money that is paid to certain athletes today, and I am not only refer■ The IOC became much more democratic thanks to Samaring to contracts and indemnities, is huge and impossible to susranch.... tain. Sport world has overcome the last financial crisis rather ef- That was his sports legacy in a way – to limit the number of fortlessly. However, a similar crisis could irretrievably destroy it. mandates and the age of IOC members. cordeditorial@cma.rs

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interview ■ Since you have dedicated your entire life to sport, primarily basketball, could you tell us which direction is the world basketball taking?

■ The new era brings a new game philosophy. Older lovers of basketball fondly recall Yugoslav championships, as well as the European and world titles, with each team scoring 100 points and shooters being exquisite. Today, defence dominates European basketball. How did we come to that?

- In the very beginning, basketball was a small sport played at American universities. Little by little, it began to spread all over the world as a student sport. In time, it be- Earlier, basketball was virtually withcame available to everybody, and, today, out defence, and it was common pracright after volleyball and athletics, it is tice that a good team could score over the most widespread sport on the plan100 points per game. That is still true et, played in over 213 countries. When in the NBA, but you have to bear in I was appointed as secretary general of mind that NBA games are eight minthe FIBA, basketball was played in only utes longer and that a zone defence is 83 countries. TV played an important forbidden there. NBA basketball is basrole in making this sport more popular, ketball of aces, the stars, one-on-one. and it is absurd to think that the FIBA In NCAA and FIBA basketball, we are controlled 200 million basketball playfostering the idea of team sport and ers, but not the top 500 who played in the zone defence is the European thing. the NBA. This concept was abandoned I prefer the beauty of a team game. Our in the last decade of the 20th century, basketball has always been about the mainly thanks to Samaranch’s vision. team, and high scores are no longer beTogether with David Stern, we have recause the rules have changed. Referees cently celebrated in London the twenwere instructed to treat defence and tieth anniversary of the Olympic debut offense the same. So far, offense had of the American professional basketbeen more important, and it usually ball players. ends up in a score or a foul. Now, teams Generally speaking, basand players have the chance to ketball has grown so much that The only way to stop too many players defend themselves, and many it is becoming increasingly diffrom leaving for foreign clubs is to give have perfected that part of the ficult to manage it from one game. However, we have a new them salaries that can satisfy their place alone. Contrary to the problem that is not financial.

FIBA’s old practice of centralpersonal needs while offering them a Because basketball stars are ism, now we have continental chance to develop like players in the US few and far between since they federations which are asking are blended into the team game, for bigger rights and higher levels of independence. It seems that the media, TV and sponsors’ interest for basketball is dwindling. this is inevitable, as is the further adjusting of basketball rules. It We did have basketball stars. Radivoj Korać was the first one. has become obsolete to still have three sets of rules –FIBA rules which are valid all over the world, NBA rules and NCAA rules, ■ Today, our stars play in foreign clubs with domestic clubs which apply to amateur college basketball in the US. Even the bashaving brand new players with each new season. As soon as ketball courts are not uniform, which serves to confuse the speca player is no longer a junior, he leaves the club. Before the tators. They should look alike, but that is very difficult to achieve.

1990s, they could have played for a foreign club only if they ■ World and European championships are getting longer and the number of players is growing just like in football....

- You cannot compare one sport to other and you cannot compare basketball to football. Football is played at big stadiums that can take up to 100,000 spectators, while basketball is played in halls that can take up between 20,000 and 25,000 people the most. So, during the next European championship, we are going to have 24 teams - almost half the number of all European teams.

This is what TV and sponsors want. We are not copying football.

More players means more TV audiences who are going to watch the commercials by sponsors who, in turn, are conquering new markets in that way and increasing sales on existing markets.

This is a pure economic interest.

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were at least 28 years old. Back then, we had more basketball stars than today....

- That was a completely different time. We could do that back then. Today, there is the issue of human freedom which is regulated by the constitution. Even if a player has a contract with a club, it does not mean that the club or the player would survive in the long run. Contracts can be broken; and the only way to stop too many players from leaving for foreign clubs is to give them salaries that can satisfy their personal needs while offering them a chance to develop like players in the US. In order to do that, we need a lot of money. And Serbia doesn’t have that kind of money.

■ Do you think that privatizing clubs, maybe even with the help of foreign capital, could solve that problem?

er, when clubs like Olimpija, Zadar, Jugoplastika, Bosna and Cibona became stronger, did our clubs start to ascend and become very successful at the international scene.

Today, we don’t have a club that could be successful in Europe. I don’t consider it success if one of our clubs makes it into the top 16 in the Championship League. We do not have any respected figures to represent us in the international basketball forums. We have lost leadership in basketball; we have lost the cult of the national team ■ What do you think about state’s Borislav Stanković (right) and David Stern, Commissioner of NBA and the cult of success - something behaviour in that segment? which our basketball syn- Unfortunately, money for In NCAA and FIBA basketball, we are with onymous. We barely qualified sports is still a problem and fostering the idea of team sport and for the European championship that is a terrible handicap.

Having certain clubs resolv- the zone defence is the European thing. where 24 national teams will play. It is obvious that we have ing their problems with the I prefer the beauty of a team game to create good national team help from the state is a rathplayers in the national team. We need that driving force but it er tragic solution. In Serbia, sport rests on two clubs – Partizan seems to me that the organization is too weak to recreate that. ■ and Crvena Zvezda and that is a catastrophic error. Nobody is wondering about other clubs since everything –money from Borislav Stanković the state and money from local authorities – goes to either Born in Bihać, July 9, 1925. He was a Zvezda or Partizan. Talented players will leave basketball, and member of the Yugoslav Basketball these other clubs will die out. Also, the money that Zvezda and Federation’s Managing Board (1953 Partizan get as help is usually invested in foreign players as a to 1966), secretary general of the reinforcement instead in Serbian sport. State money is spent without any guidelines and control. Unbelievable! On the othYugoslav Basketball Federation (1956 er hand, there is, for instance, OKK Beograd which was the – 1966), undersecretary of FIBA (1960national champion four times and which has been financial1972), deputy secretary general of FIBA ly struggling for years. Nobody has offered to help this club.

(1972 – 1976) and secretary general of FIBA (1976 – 2002).

We could have built 50 training facilities with the money that He was a member of the IOC Committee in 1982, the Partizan and Zvezda got. Still, we don’t have a single training secretary general of the ASOIF (1982 – 1993), a member of facility. Building these cheap training halls would be the right the IOC (1988-2005), a member of the Yugoslav Olympic thing for the state to do.

Committee since 1988, a member of the IOC Coordinating - Maybe a dozen people in Serbia have that kind of money, but they are not ready to invest it in sport because of a difficult and uncertain economic situation. On top of that, our championships are of low quality, often on the verge of regularity. Foreign capital will go where the stadiums are sold out and where sponsors and TV can generate them big money. No, we don’t have appropriate conditions for privatization.

■ It seems that you are not too optimistic about the future of Serbian basketball.

- I am confident that world basketball has a bright future. If we are talking about our basketball, we should be very careful not to fall into a trap and compare Serbian basketball to the Yugoslav sport, which came about and developed in different social surroundings. Not to mention that Yugoslavia had 20 million inhabitants and a far bigger base. Basketball was developed in all Yugoslav republics. Teams from all former Yugoslav republics have played at the last world championship. Clubs were there to stay, only the players who were 28 and older were allowed to transfer abroad (which was ideal), with the national team being the main driving force behind development. It is the team that developed the game, and the success that the national team accomplished topped the success of individual clubs. Only lat-

Committee during the Olympic Games in Barcelona in 1992, Atlanta in 1996 and Athens in 2004, a member of the IOC Programme Committee (1992), a member of the IOC Committee in selecting the host of the 2000 Games and a member of the IOC task force “Women and Sports” (1996).

He was inducted into the FIBA Hall of Fame in 1991.

He is the recipient of the Global Sports Leader award given to him by the United States Sports Academy in 1983, the recipient of the French Legion of Honour (2001) and the Serbia and Montenegro Olympic Committee Trophy (2003).

He is an honorary member of the IOC and the Serbian Olympic Committee, as well as the honorary secretary general of FIBA. He received a silver Olympic medal in 1985 and a gold Olympic medal in 2005.

cordeditorial@cma.rs

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98 November 2012 | 73

Royal Wedding

Royal Wedding Fever

Sweeps Luxembourg Crowned heads of Europe and ordinary citizens gathered Saturday for Luxembourg’s biggest royal event in decades to see heir-to-thethrone Prince Guillaume wed Belgian countess Stephanie de Lannoy Luxembourg’s Hereditary Grand Duke Guillaume and his wife Princess Stephanie, Hereditary Grand Duchess of Luxembourg, wave on the Grand Ducal Palace balcony after their religious wedding in Luxembourg

F

ollowing a sombre religious ceremony, thousands crammed the centre of Luxembourg City to demand the newlyweds exchange their first public kiss as a married couple, belying the tiny country’s reputation for a lack of exuberance.

The cream of Europe’s royalty including the monarchs of Belgium, the Netherlands, and the Nordic countries, had attended the Catholic wedding mass on October 20 at Notre Dame cathedral blending tradition with modernity, the day after the pair tied the knot in an intimate civil ceremony.

Luxembourg’s openly gay mayor, Bettel Xavier, was accompanied by his partner to the festivities, along with some 270 ordinary residents of the Grand Duchy.

In another modern touch, the rings the couple exchanged were made from fair-trade gold. Luxembourg Archbishop Jean-Claude Hollerich celebrated the multilingual mass, which began shortly after 11:00 am as the blonde countess, wearing an ivory lace gown embroidered with silver filigree, entered the cathedral on the arm of her brother Jehan.

The gown, designed by Elie Saab of Lebanon, featured three-quarter

Luxembourg’s Hereditary Grand Duke Guillaume and his wife Stephanie, the Hereditary Grand Duchess of Luxembourg pose with royal family after their wedding

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length sleeves and a silk tulle veil, also adorned with the silver floral motif, that trailed some four metres behind her. The 28-year-old bride is a member of one of Belgium’s oldest aristocratic families and the youngest of eight children. The wedding was one of her first big outings as a public figure and offered Luxembourg a chance to show the world it is more than just a banking haven.

The countess’s efforts to learn Luxembourgish paid off as she pronounced her vows in the language, raising cheers of praise from a crowd watching the ceremony on a giant screen in a central square.

Luxembourg’s Hereditary Grand Duke Guillaume and his wife Princess Stephanie, Hereditary Grand Duchess of Luxembourg, leave the NotreDame Cathedral after their religious wedding service in Luxembour

Prince Guillaume, the 30-year-old Hereditary Grand Duke of Luxembourg, sported a tightly groomed beard and wore full military regalia. He arrived with his mother, Grand Duchess Maria-Teresa, wearing a bright coral outfit with a silver brooch.

Crowned heads and lesser royals had rolled up in black limousines or more modest green minibuses, stepping out onto a long red carpet to enter the cathedral in the bright sunshine of an unseasonably warm day.

Princess Caroline of Monaco, Britain’s Prince Edward, and Japan’s Crown Prince Naruhito were among them, as well as King of the Belgians Albert II and Queen Paola, who have family ties with the Luxembourg monarchy.

Also in attendance were Norway’s King Harald V and Queen Sonja, Prince Hans-Adam II and Princess Marie of Liechtenstein, Queen Beatrix of The Netherlands, Queen Margrethe II of Denmark and her consort Prince Henrik, Sweden’s Queen Silvia and Princess Lalla Salma, wife of Moroccan King Mohammed VI. Grand Duke Henri of Luxembourg, also in full dress uniform, was accompanied by Stephanie’s aunt, the sister of Countess Alix de Lannoy, who died in late August. Saturday’s wedding mass began with a minute of silence in her honour.

The 28-year-old bride countess Stephanie de Lannoy is a member of one of Belgium’s oldest aristocratic families and the youngest of eight children

The wedding, at an estimated cost of €500,000 to the Luxembourg taxpayer, included free concerts, street shows and a giant fireworks display in the evening.

In a speech broadcast ahead of the event, Prime Minister Jean-Claude Juncker acknowledged that not everyone was happy with its cost and the expedited naturalisation process for the Belgian bride, who became a Luxembourg national on Friday.

“The world is watching us. We aren’t going to overdo it, but we mustn’t make ourselves smaller than we are,” he said.

After the wedding the couple clowned about on the balcony, pretending to have met there by accident, before exchanging a first brief kiss followed by a longer smooch to the cheers of the crowd. But no sooner had the couple left the balcony to rejoin their prestigious guests, then the crowd quietly dispersed.

Local newspaper Le Quotidien reported the crowds were smaller than during national holiday celebrations. Guillaume, who will become Luxembourg’s seventh grand duke, said ahead of the ceremony: “Our wedding is an international event, meaning it’s a good excuse to show Luxembourg’s festive side.”

The grand duke plays an essentially ceremonial role in the tiny country of some half a million people lodged between France, Belgium and Germany, a wet and windswept place best known as a financial hub and tax haven. Luxembourg’s NassauWeilbourg dynasty dates to 1890. Grand Duke Henri, 57, became the sixth in the line when his father Jean abdicated in 2000. ■

Spain’s Crown Prince Felipe and his wife Princess Letizia (L) and Prince Edward and his wife Countess Sophie of Wessex arrive for the religious wedding service of Luxembourg’s Hereditary Grand Duke Guillaume and Countess Stephanie de Lannoy at the Notre-Dame Cathedral in Luxembourg

French actress Clotilde Courau, Princess of Savoy (L) and The Netherlands’ Princess Maxima arrive for the religious wedding service of Luxembourg’s Hereditary Grand Duke Guillaume and Countess Stephanie de Lannoy at the Notre-Dame Cathedral in Luxembourg

Morocco’s Princess Lalla Salma arrives for the religious wedding service of Luxembourg’s Hereditary Grand Duke Guillaume and Countess Stephanie de Lannoy at the Notre-Dame Cathedral in Luxembourg

Grand Duke Guillaume (right) and Princess Stephanie are seen during their religious wedding at the Cathedral of Our Lady of Luxembourg cordeditorial@cma.rs

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tourism

Where to Ski? W

hen you are planning a ski vacation it is important to choose the right ski resort, to get the best deals on lodging and lift tickets, and, most of all, to find the best skiing. Here is some information on several skiing options and vacation packages for both the region and Europe. In many ski resorts, the season starts in November, so it is the right time to start planning and find the best solution for you, your friends and family.

1/11 Kopaonik, Serbia Level: Beginner to Expert

Prices: Accommodation (double-twin rooms) from €35.00; Ski Pass (adult 6 days) €93.00

The Kopaonik ski resort is located at 1770 metres altitude in the region of central Serbia. With the highest lifts and ski slopes at 2017m Kopaonik, the ski area is not snow-sure. Snow cannons at Kopaonik ensure artificial snow, covering 8.5 km of ski trails, or around 15 of the ski slopes. The total number of ski lifts is 24, including a ski kindergarten, with a capacity of over 32,000 skiers per hour. Kopaonik has an natural potential of about 160 sunny days with snow cover. The resort has about 88 km of trails for alpine skiing and 18 km for cross-country. The nearest airport transfer to Kopaonik is Belgrade at a distance of 273 km.

The ski season at Kopaonik runs from December to April.

2/11 Zlatibor, Serbia Level: Beginner and Intermediate

Prices: Accommodation (double-twin rooms) from €30.00. Ski Pass (adult 6 days) €56.00 The Tornik ski centre is located at an altitude from 1,110 to 1,490 meters, with the highest lifts and ski slopes at 1,400 meters. The ski centre is only 9 km from the tourist centre of Zlatibor. The total ski lift capacity is about 5,400 skiers per hour. Four ski slopes - Čigota, Tornik, Ribnica and Zmajevac (for a total of 8 km) are covered by snow cannons ensuring artificial snow, making ski resort no longer dependent on the weather.

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3/11 Stara planina, Serbia Level: Beginner and Intermediate

Prices: Accommodation (double-twin rooms) from €20.00. Ski Pass (adult 6 days) €38.00

The Babin zub ski area, with its peak at 1758 meters, consists of Konjarnik, Sun Valley and the Mark Meadows ski slopes.

Babin zub has a four-seater ski lift with a capacity of 1,400 skiers per hour and the Sun Valley ski lift capacity of 1,200 skiers per hour, as well as a children’s ski kindergarten with conveyor at Mark Meadows, and from this season will have another new four-seater chairlift and an 8-person gondola, the first in Serbia.

4/11 St. Anton, Austria Level: Beginner to Expert

Prices: Hotel accommodation (double-twin rooms) from €80.00; Ski Pass (adult 6 days) €198 - €208

The Austrian ski resort, St Anton, sits at an altitude of 1304 metres in the Tyrolean region of the Austrian Alps. With the highest lifts and ski slopes at 2811 meters, the St Anton ski area is snow-sure. Over 418 snow cannons ensure artificial St Anton snow, covering 102 km of ski trails, which is around 53 of the ski slopes. The nearest airport transfer to St Anton is Munich, at a distance of 250 km or approximately 180 minutes driving time. The St Anton ski season runs from December to May.

5/11 Chamonix, France Level: Beginner to Expert

Prices: Accommodation (double-twin rooms) from €85.00.

Ski Pass Prices (adult 6 days) €200 - €240

The renowned French ski resort of Chamonix lies at 1035 metres in altitude in the Haute Savoie region of the French Alps. With the highest lifts and ski slopes at 3842 meters, the Chamonix ski area is snow-sure. Over 96 snow cannons ensure artificial snow over 23 km of ski trails, or around 15 of the ski slopes at Chamonix. The nearest airport transfer to Chamonix is Geneva at a distance of 88km or approximately 80 minutes driving time. The ski season runs from December to May. cordeditorial@cma.rs

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6/11 Cortina d'Ampezzo, Italy Level: Beginner to Expert

Prices: Hotel accommodation (double-twin rooms) from €80.00. Ski Pass (adult 6 days) €167 - €208

Cortina is found at 1224 metres altitude in the Veneto region of the Italian Dolomites.

With its highest lifts and ski slopes at 2939 meters, the ski area is snow-sure. Snow cannons ensure artificial snow making over 75 km of ski trails, which equals around 95 of the ski slopes. The nearest airport transfer to Cortina is Venice at a distance of 160 km or approximately 120 minutes driving time.

The Cortina ski season runs from November to April. There are over 600 hotels in or near Cortina d’Ampezzo.

7/11 Verbier, Switzerland Level: Beginner to Expert

Prices: Hotel accommodation (double-twin rooms) from €140.00.

Ski Pass (adult 6 days) €260

Verbier is at 1500 metres altitude in the Valais region of the Swiss Alps. With the highest lifts and ski slopes at 3330 meters, Verbier ski area is fully snow-sure. Over 50 snow cannons ensure artificial cover on 4.2 km of ski trails, or around 40 of the ski slopes. The nearest airport transfer to Verbier is Geneva at a distance of 161 km or approximately 172 minutes driving time. The Verbier ski season runs from November to April.

8/11 Kranjska Gora, Slovenia Level: Beginner to Expert

Prices: Accommodation (double-twin rooms) from €45.00.

Ski Pass (adult 6 days) €147

Kranjska Gora lies at an altitude of 810 metres in the Gorenjska region of the Slovenian Julian Alps. With the highest lifts and ski slopes at 1623 meters, the Kranjska Gora ski area is not snow sure. Snow cannons ensure artificial snow at Kranjska Gora over 9 km of ski trails, covering around 75 of the ski slopes. The nearest airport transfer to Kranjska Gora is Ljubliana at a distance of 60km or approximately 90 minutes driving time. The ski season runs from December to April.

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9/11 Bansko, Bulgaria

Level: Beginner to Expert Prices: Accommodation (double-twin rooms) from €40.00.

Ski Pass (adult 6 days) €227.00

The Bulgarian ski resort Bansko is at 936 metres altitude in the region of the Bulgarian Pirin. With the highest lifts and ski slopes at 2560 meters, the Bansko ski area is snow sure. Over 161 snow cannons ensure artificial Bansko snow over 45 km of ski trails, which means around 70 of the ski slopes. The nearest airport transfer to Bansko is Sofia at a distance of 170 km or approximately 180 minutes driving time. Bansko ski season runs from December to April.

10/11 Jahorina, Bosnia & Herzegovina Level: Beginner to Expert

Prices: Accommodation (double-twin rooms) from €15.00.

Ski Pass (adult 6 days) €60.00

The Olympic downhill ski centre of Jahorina, in Bosnia and Herzegovina, is just 28 km from Sarajevo. The main road leads from Sarajevo to the top of Jahorina ski resorts with over 20 kilometre-long ski runs, with four ski-lifts and four two-seaters. There is also night skiing. The nearest airport transfer to Jahorina is Sarajevo at a distance of 17 km or approximately 20 minutes driving time. The Jahorina ski season runs from December to April.

11/11 Popova Šapka, Macedonia Level: Beginners and Advanced

Prices: Accommodation (double-twin rooms) from €17.00; Ski Pass (adult 1 day) €9.00

Popova Šapka is the most famous ski resort in Macedonia and is located in Šar Planina at an altitude of 1700 meters.

18 kilometres away from town of Tetovo and 53 km from the Macedonian capital, Skoplja. The highest peaks are over 2500 meters. The ski centre has ski lifts with the total length of 6,070 metres, with a capacity of 4,000 skiers per hour. Popova Šapka has a large number of sunny days during the skiing season. The nearest airport transfer to Popova Šapka is Skopje at a distance of 60km. cordeditorial@cma.rs

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chill out

Online novel written in real-time Apps such as Local Books are already helping literature lovers to get closer to the authors they admire, but Silvia Hartmann’s Naked Writer project is inviting fans to start reading before the manuscript is even finished. She aims to complete a novel in front of an online audience using Google Drive.

Readers will be notified via social networks when Hartmann is about to work on the

book, enabling them to read the plot as it develops in real-time, as well as any editing and reworking the author chooses to do. The fantasy fiction – entitled The Dragon Lords after suggestions from readers – will also take into account feedback given by those watching the work take shape. As well as using new media to bring audiences closer to the process behind writing a novel, the project also offers a unique experience for reading – the words are not dead on the page, but constantly evolving. www.silviahartmann.com

Coffee on wheels

Cut-away leaf art Spanish artist Lorenzo Duran finds the perfect leaf and then washes, dries, molds and gently cuts away at it until he makes his incredible delicate art. He often depicts animals and insects, as shown below, but has explored a wide variety of geometric patterns and also does custom work on request.

Velopresso is now offering mobile coffee which is powered by the the very wheels open which the machine sits.

Pedal power has proven to be a versatile way for businesses to add an eco-friendly touch to their operations, with hotels, cinemas and even prisons employing the idea.

The startup was created in London by former Royal College of Art students Amos Field Reid and Lasse Oiva, who developed a customized trike and coffee machine hybrid. While the device can be used to ride the espresso maker around the city, it is also set up so that the gears can be switched from powering the bike to powering a grinder which produces fresh grounds. Hot water comes from an onboard gas-powered boiler, meaning that no electricity is used during the process. Velopresso aims to make its coffee even more eco-friendly by finding a way to re-use old grounds at some point in the future. The duo have already won the Deutsche Bank Awards for Creative Enterprises for their design, which takes into account both practicality and aesthetics. www.velopresso.cc

Victory for German Catholic Church

come tax bills of registered Catholics.

The judges at the Federal Administrative Court in Leipzig ruled against retired German

Germany’s top administrative court has ruled that Catholics who opt out of paying religious taxes must automatically leave the church as well.

The court’s verdict Wednesday is a victory for the Catholic Church in Germany, which receives more than €4 billion annually from a surcharge of up to nine percent on the in-

theologian Hartmut Zapp, who wanted to leave the church as an institution but remain a member of the Catholic community.

Germany’s bishops announced last week that believers who refuse to pay the tax are committing a “grave lapse” and as a result won’t be able to receive the sacrament, become godparents or have a religious funeral.

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Oktoberfest 2012

Munich mayor Christian Ude taps the first keg of beer to kick off the Oktoberfest beer festival in Munich

On Saturday 22nd September, the 179th Oktoberfest opened in Munich, Germany, with the traditional tapping of the first keg of beer by Munich’s mayor, Christian Ude, as he shouted, “O’zapft is!” (“It’s tapped!”). The Bavarian festival was opened until October 7, and over 6 million people attended the biggest beer festival in the world. The visitors

drank nearly 8 million one-liter mugs of beer.

Attendance was free, but this year price of a mug at any of the 14 tents comes to €9.50.

Virgin plans to order 40 Airbus A320 jetliners Virgin America has just announced big plans for their fleet in 2013. Starting in 2013 Virgin America has plans to order 40 Airbus A320 jetliners. At this time the airline is not disclosing value amounts for the deal.

Industry insiders are stressing that the deal is worth up to $3.26 billion dollars.

This deal will also come with an option to purchase additionally 20 aircraft for delivery in the year 2017. Projections for Virgin America include growth from 28 aircraft to 90 aircraft units by 2016.

Towering jump Base jumper Aurelien Chatard (left) and Florian Pays from France leap from the top of the 421-meter Kuala Lumpur Tower during the International Tower Jump in Malaysia yesterday. Some 95 professional base jumpers from 18 countries are taking part in the annual event.

Burn iPhones Rabbi Haim Kanievsky, who ranks in some estimations among the top five most influential rabbinic authorities, issued a public notice saying that anyone who owns an Apple iPhone should burn it.

In the pronouncement, published on the front page of Yated Neeman - the most influential haredi newspaper - as well as several other ultra-Orthodox dailies, Rabbi Kanievsky

said that it is completely forbidden to own an iPhone, comparing the device to weapons of war in its potential to cause harm.

Rabbi Kanievsy’s public announcement is part of a general offensive being waged by many ultra-Orthodox rabbis at the moment, who frequently denounce smart phones and the Internet because of the ready access they provide to pornography, as well as sources of information beyond the strict confines of the ultra-Orthodox world. cordeditorial@cma.rs

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techno talk

Are you

thinking

about

?

skiing

November is the month when we start thinking on New Year's holidays, vacations, and of course, skiing. It is also the month when the first snow is expected and the beginning of the ski season. Many are impatient but they certainly started checking your ski equipment.

If you are missing a piece of equipment or want to buy a new ski equipment, here are some ideas

Best Men’s Ski Boots for Winter 2013 With over 200 different types of boots available for the 2013 season, we were very overwhelmed with all the choices that were available with men’s skiing boots. Nearly all the major brands introduced new lines of skiing boots for the upcoming season Based on experts's tests, however, we believe that the best ski boots for the 2013 season for men include: Dalbello Havok Ski Boots, Nordica Transfire R3 and Cruise 70, Atomic Hawk 80 and Rossignol Evo 80.

Nordica Transfire R3 cca €270.00 The Transfire R3 is part of a completely new line from Nordica.

This series is for the sport performance skier looking for a high level of precision combined with a more forgiving blend that supports their advancing skiing ability in a wide variety of conditions and terrain.The adjustable cuff profile allows for a neutral standing position for all day comfort, and the all new lateral shell design allows for a more efficient transfer of energy that is compatible with today's style of skiing.

Dalbello's Axion 9 cca €270.00 Dalbello's Axion 9 Ski Boot offers athletic male riders some good solid support in a last width that's wide enough for human feet. A TRUFIT Sport liner is warm and padded, but it's also designed anatomically so that you don't lose any of your effort to dead space in the boot.

Canting, flex control, and microadjustable buckles give you all the adjustability you need to get the most out of the Axion 9 Boot.

Rossignol Evo 80 cca €270.00 A great boot for the true beginner, with a wide foot and wide shaft of the leg.

Notches in the plastic along the instep make it really easy for you to enter and exit the Evo 80. The Neutral Stance will give you more control, better balance, and reduce fatigue. The Sensor Liner is 104mm wide, and has a V shape in the forefoot, wide heel cup, and an asymmetrical toe box, all for added comfort as you slide your way down the mountain. The Rossignol Sensor Shell uses a boot board that connects key receptor points to the boot sole.

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Nordica Cruise 70 cca €240.00 The Nordica Cruise 70 Ski Boots are a fun performance boot for the intermediate skier who needs a wider boot. This wider design has a 104mm last and an adjustable cuff profile to ensure that you have a very comfortable feel without the cramping up. The Natural Foot Stance is an abducted stance with your toes pointing outward (the way you would normally stand) helps you with energy transfer and balance.

Atomic Hawx 80 €150.00 - €230.00 Atomic Hawx 80 Ski Boots have an i-Flex zone at the front of the boot that works like an additional joint. It promotes natural forefoot flexibility, improves balance on the ski and provides for precision control. A soft Hawx flex delivers convincing performance while offering maximum comfort. Atomic Hawx 80 Ski Boots have an ASY Comfort T2 liner that can be individually adjusted in the ankle and forefoot zones.

Atomic Line Influence 115 cca €600.00 The Early Rise rocker at the tip and the 115mm waist make the ski soar over the slope like a lord, and any obstacles will be annihilated. Its twin-tip shape makes it super playful while the titanal reinforcements give it tons of personnality and power. This monster handles speed incredibly well, it stays stable and very active on energy transfers.

Elan Amphibio 78ti cca €620.00 The Amphibio ® Waveflex 78Ti is just as versatile and flexible as its name suggests. Equipped with WaveFlex technology, RST Sidewall, reinforced with a layer of Mono titanium and upgraded with the revolutionary Amphibio ® technology, it is ready to roll whenever you are. The Power Woodcore brings better edge hold on tip and tail areas resulting in a uniform ski flex.

Menzella Get Intense Ski Gloves

cca €35.00

Oakley Proven MX Fire Skull Sprocket Men's Dirt Goggle

cca €45.00

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techno talk Best Women’s Ski Boots for Winter 2013 When it comes to women’s skiing equipment, it is sometimes difficult to find the best fit for most female skiers. Many of them assume that women will just want to wear unisex boots but in most cases, men’s boots are just too big or do not fit properly. During our tests, we were able to try on over 100 pairs of women’s skiing boots to crease this list. Some of the best skiing boots of the 2013 season for women include:

Dalbello Voodoo Ski Boots cca €365.00 Dalbello’s new Sherpa models are for the next generation of alpine touring enthuasists looking for a boot with balanced crossover performance, both uphill and down.

The Dalbello Sherpa 7/3 Ski Boots are engineered for comfort on the ascent and lightweight handling, and designed to be powerful enough to steer long, wide, modern big mountain skis through the most difficult snow and terrain.

Nordica Transfire R4 cca €240.00 Nordica Transfire R4 Ski Boots: Lower upper cuff hinge location increases dampening and margin for error and 45-degree middle buckle enhances heel hold. The Adjustable Cuff Profile allows for increased calf room and single cuff adjustment helps dial lateral stance balance.

G3 Empire cca €620.00 With its clean lines and full reverse camber, the Empire stands out as one of 2013’s most attractive new powder skis for both man, woman. The wood core is reinforced with two layers of metal alloy, producing a burly ride for big descents. But G3 also softened the tip and tail for a playful and buttery float in powder—perfect for drifting down the mountains of your dreams.

Fischer Koa 78 cca €320.00 The Fischer Koa 78 with V9 Railflex is a women’s ski that’s perfect for the expert skier who wants to be able to go anywhere on the mountain. The versatility and durability of these skis make them a great buy for any woman who really wants to enjoy all of the surfaces on the mountain rather than just stick to the groomed paths.

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Nordica FireArrow F1 cca €540.00 Technology and power are combined to give the Nordica FireArrow F1 Ski Boots an edge above so many other boots on the market. Offering a 45 degree closure, you'll have the maximum amount of heel retention and forefoot comfort so your fit can be secure inside these boots. Easy entry and exit are also made possible by this 45 degree feature. Micro Buckles on all buckles ensures the most customized and comfortable fit.

Full Tilt Classic Ski Boots cca €425.00 Full Tilt brings this living legend back to life each year using all of the original molds, lightweight materials and same looks that put this Original 3-Piece Design on the map. If you loved the original, you'll love the classic even more thanks to the addition of the Quick Fit Performer liner with Intuition foam that molds 100% to your feet for a custom fit that's as ahead of it's time as the Original 3-PieceDesign was itself.

Nordica Double Six cca €385.00 The Double Six Ski Boots are light in weight but heavy on power and performance. The boots have a 45 Degree Instep Retention which provides the maximum amount of heel retention and forefoot comfort so you're fit can be secure inside these boots. Easy entry and exit are also made possible by this 45 degree feature. Its Progressive Flex offers a buttery initial flex for easy ankle flexion and a high level of support on the landing.

Scott Traverse Ski Gloves

cca €35.00

Scott Dana Women's Goggles

cca €43.00

cordeditorial@cma.rs

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fashion

New Season for Creative Women Jil Sander

Leather boots

price:

€450

Sleek and minimalist with a sports-chic rubber platform, Jil Sander’s leather ankle boots are just the shoes to satisfy fashion’s craving for athletic-inspired designs. Create a winning combination with a baseball-style shirt dress, adding a sharp cuff and printed bag for a directional finish.

price:

€666 Christian Louboutin

price:

Dolce & Gabbana

€1.160 price:

€416 Alexander Wang

Knee boots Make a sleek style investment for fall with Alexander Wang’s black leather knee boots. Wear this pointed runway pair with a knitted sweater and a mini skirt, removing the snap-fastening back strap and rolling down the cuffs for a slouchy-chic look.

Marc by Marc Jacobs

Tapestry

Dolce & Gabbana’s acclaimed FW12 collection featured breathtaking tapestry fabrics that had the front row abuzz. These beautiful leather-trimmed ankle boots are a fabulous way to work the look and are a guaranteed sartorial talking point.

Wear them as your only note of pattern and print for maximum impact.

price:

€208 price:

price:

€470

Maison Martin Margiela

€500 Christian Louboutin

Chloé

price:

€666 gucci

Ankle boots Subtly shaded, Gucci’s gray lace-up leather ankle boots are a prim and polished choice for this season and next.

Employing the luxury Italian brand’s beautiful craftsmanship, this supple pair will instantly upgrade your outfit, so wear them with a smart tweed dress and a tailored coat.

price:

€550

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price:

€330 Alexander McQueen

Jimmy Choo

and Men...

price:

€300

Jimmy Choo

Biker Boots

price:

€612

Black leather Jimmy Choo biker boots with thick rubber soles and pewter buckles at the ankle and cuff. A combination of understated design and heavy-duty leather will make these boots an instant winter favourite.

price:

€360 O’Keeffe price:

Red Wing Shoes

€233

Leather Boots One of the most popular and recognised of Red Wing Shoes’ styles, these leather boots combine flexibility and rugged detailing to powerful effect. Triple-stitched and rubber-soled for durability, they’ve been hand-crafted in the USA by the company’s skilled workmen to ensure the highest quality. price:

Grenson

Stanley Leather

marni price:

€350

price:

€659

€166

Fine brown leather brogues are a perennially stylish essential.

Designed to wear in for the perfect fit and look, this burnished tan pair from Grenson will make a timeless investment. Team them with jeans at the weekend or a navy suit for days in the office.

Thom Browne Mark McNairy

price:

€230

Leather Brogues Crafted from robust full-grain leather with a bold crepe sole, this stylish wingtip pair is apt for striding through the city streets. Channel the label’s modern-meets-heritage aesthetic with plaid wool trousers and a trim blazer.

price:

Yves Saint Laurent cordeditorial@cma.rs

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€880 98 November 2012 | 87

fashion news Giorgio Armani

Coco Chanel

Little Black Jacket Exhibition Control of UK Sales Business

O

ver 100 black and white photographs of Karl Lagerfeld’s favourite muses wearing the label’s iconic jacket - both men and women - fill four expansive rooms, all taken by the Chanel helmer himself.

Although the French fashion house has included images of expected personalities such as Alexa Chung, Vanessa Paradis and Daphne Guinness, it also celebrates more surprising names - from Kanye West to one of the label’s youngest catwalk stars, Hudson Kroenig. Each picture effortlessly captures its subject’s personality, a testament to the close relationships Lagerfeld has with the industry’s biggest names. Daphne Guinness is as dramatic as ever, decked in sparkling jewellery; Georgia May Jagger oozes sex appeal wearing little more than a black bra and dishevelled hair; while Carine Roitfeld looks like a contemporary Coco Chanel in her pearls and hat. If nothing else, it is ample inspiration in how to sport your tweed black jacket Chanel or otherwise.

Fashion designer Giorgio Armani is taking direct control of his sales business in Britain to improve efficiency in the retail sector, which has become a revenue-spinner for luxury makers amid economic turmoil.

Armani said in a statement on Tuesday he had agreed to take control of his UK wholesale and retail business from long-term retail partner Club 21 after 23 years of cooperation.

The 1.8-billion-euro Armani empire is among top luxury makers that have moved to manage their businesses internally, reducing costs in the long term and boosting profitability.

Mulberry, Roksanda Ilincic and Meadham Kirchhoff shows

Cute, Abstract and Surreal

London served up a thick slice of cute, abstract and surreal themes on Tuesday to end its reign on the fashion calendar with the Mulberry, Roksanda Ilincic and Meadham Kirchhoff shows.

British brand Mulberry, famously known for its covetable bags, offered up a collection of sorbet-colored and floral-inspired outfits on the last day of London Fashion Week’s spring/summer 2013 shows.

Designer Roksanda Ilincic offered a more abstract-inspired collection of elegant day dresses, skirts, and blouses with a modern graphic feel in the grand setting of the Savoy Hotel.

Coco Chanel

Hula Hoop Bag

Last night’s opening was celebrated by the toast of the fashion world, including Keira Knightley, Carine Roitfeld, Karl Lagerfeld, Edie Campbell and Anna Mouglalis.

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98 November 2012

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Alexa Chung has received her very own bespoke Chanel hula hoop bag - arguably the star of the label’s latest show.

The Vogue cover girl was given the statement style, with personalised initials, by US television presenter Anderson Cooper on his show earlier this week.

“You really shouldn’t have, no I mean really you shouldn’t have,” Chung laughed upon being presented with the accessory. “It’s amazing, I was reading about this and I think Karl Lagerfeld called it ‘a very practical piece’. It seems like a buoyancy aid too, you could really pad it out.”

The Chanel helmer has previously explained that the item is targeted at beach-goers.

“You need space for the beach towel,” he told the Telegraph. “And then you can put it into the sand and hang things on it.”

design

Lived in

design

The

best new

interior items to add the finishing touch to any stylish home!

Muuto Desk Lamp Wood Green

The all-wood design is a low-tech antidote to the usually very modern work desk lamps. All of the details are pragmatically chosen with every screw visible. The wooden lamp gets a lot of personality with the most simple methods.

€ 149,oo

Gold Leaf Wood Tray Wood Veneer Polyhedron Vase Maple wood veneer is folded in an origami-like fashion to create this modern table top vase design. The geometric shape contains a removable glass vase for easy cleaning.

€ 30,oo

Dress up your table with designer dinnerware and accessories from Diane Von Furstenberg.

Chic colours and styles in tableware will enhance your dining experience.

Modern Wood Circle Coffee Table

€ 105,oo

This table was designed by a designer from Portland, United States, named Michael Arras.

€ Unknown

WOODWALLET DARK

Limited edition of 30 (6 left) Handmade, using 1 piece of solid walnut wood. Ideal to use for credit cards, money, id and business cards. Its unique id will be written at the backside, and you will recieve a certificate for your edition.

€ 127,oo Design biodegradable pendant lamp

This chandelier’s organic form is full of movement and elegance, originally designed to represent the fluidity of flocking birds.

Made Using 90 individually steambent and twisted strips of Sycamore, delicately suspended from a ceiling plate.

Wooden Chandelier With LED Lamps

Here is a sample design of the Modern Luxury Wooden Chandelier is designed by using wood. And we are all familiar with glass and metal chandeliers, pendants, and Wood is the most luxurious materials among other materials and environmentally friendly ever, and a lamp hanging from the wood look unusual. cordeditorial@cma.rs

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98 November 2012 | 89

profile

Think like your own customer and

Lend a Hand When Most Needed

The construction market in Serbia has been suffering for a number of years due to various types of economic crisis and a lack of resources. Years of recession and the latest hits from financial markets combined with a higher level of unemployment and an increase of costs left deep scars on the market surface. To be able to overcome these difficulties, it is important to have right vision and to discover a light at the end of the tunnel and proudly bring your client a mutual benefit

Dejan Jančić, Country Marketing Director, LAFARGE BFC d.o.o. task has been responsible for my diving deeply into marketing and for further developing my carrier in this area.

Immediately after graduation I joined an international team which had started as the first international company with direct trading operations in Serbia. With a small team, we did business that was growing as GDP was growing. With customer expectation as a target in our business, we have managed to reach unmet customer needs and to develop ourselves to the top level.

People usually say that it is not difficult to have respect for your customer’s needs, and that is the key to success on the market and the motto I have been following for the last 15 years.

A

This is the approach I was preaching during my internations a child, I had the opportunity to live in a rural family,

al carrier, during expatriation in Germany, where I have spent

with my grandparents and relatives, where I discov-

several years as a regional marketing manager for TAMECIS

ered the beauty of countryside life and the basics of

(Turkey, Middle East, Central Asian Republics, CIS countries

trading and economy. My grandfather was not an educated

and Africa) countries. From today’s perspective, I can say that

man. All his life he has been involved in aggregate trading, ex-

in all these countries, I have met a number of unmet customer

ploitation, transport and sales. During the winter time, he did

needs, and all the success achieved there was based on listen-

wood and cattle trading, based on his evidence from a note-

ing to customer wishes, dreams, and needs.

book. In a word: not much, but from the conceptual aspect –

Of course, with the pressure we are facing today, it is dif-

everything he did years ago, today I see as modern trade in a

ficult to satisfy all the customer ‘s needs, yet, more than ev-

somewhat shaped way. In reality, not much has changed; still, this early childhood gave me certain insights into what real business means and what you and your customer can expect from each other.

As a generation that faced new technol-

People usually say that it is not difficult to have respect to your customer’s needs, and that the key to success on the market and the motto I have been following for the last 15 years

ogy and was passing through the IT era, I have been fascinated with the new wave and tools in business.

er, we at Lafarge today are focusing on giving these tailor

That has motivated me to study Organizational Sciences in the

made solutions that will satisfy those with the most demand-

department for Informational Technology at the University of

ing needs on the contemporary construction market. When

Belgrade. The program of the studies involved a number of re-

you are focused to your customer, technical solutions that

searches in the real business environment and has developed

you offer are given as light in the darkness and an extra hand

my liking for commercial activities and marketing. During the

when it is most needed. Times are changing and the tech-

last years of studies, I was selected to work on the develop-

nical solutions that Lafarge offers change with them for the

ment of a CRM project for a big international company. This

better of all of us. ■

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98 November 2012

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