CorD magazine 69 by CorD Magazine

CorD, MARCH 2010

REGIONAL COOPERATION, ANYONE?

through subscription, earn money from broadcasting advertisements?”

SIGNALING SERBIAN REFERENDUM

By HE. Mr Stephen Wordsword, British Ambasador to Serbia

MUTUAL UNDERSTANDING ABOVE ALL

ITALY IS SUPPORTIVE OF MONTENEGRO

West Balkan

Region - Bosnia and Herzegovina

ENTERING COMPETITION PHASE

DIFFICULT AND INTERESTING YEAR

Kirill Kravchenko, C.E.O. of NIS Serbia

Region – Montenegro

By Ph.D.E.E. Milan Janković the Executive Director of the Republic Telecommunication Agency

INTERNATIONAL BUSINESS UNDER SERBIAN LAWS

OPEN POLICY - WITHOUT PREJUDICE

PROFESSIONAL CONDUCT RUNS BUSINESS

H.E. Mr. Shpetim Caushi, Albanian Ambassador to Serbia

LOOK WITH CONCERN TO 2010

The 40th World Economic Forum (WEF) annual meeting in Davos

MAYBE YES, MAYBE NO! LEADERS

“Should national television, in addition to revenue generated

ACTING EDITOR: Sasa Maric ASISTANT EDITOR & EDITOR OF SPECIAL EDITIONS Tatjana Ostojic, t.ostojic@cma.rs ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs DESIGNER Miloš Aleksić, m.aleksic@aim.rs LECTOR Pat Andjelkovic EDITORIAL CONTRIBUTORS Jelena Mickic, Jelena Jovanovic, Sonja Ciric, Ilija Despotovic, Petar Djoric, Dejan Jeremic

4 CorD 69 / March 2010

Iain Forrest, General Manager Dufry Serbia

Par Eriksson, Project Manager of International Aviation Projects, Swedavia

EMBASSIES WAITING FOR HOSTS

46 48 B2B 52

Business news

RE-THINKING, RE-DESIGNING AND RE-SETTING VALUES By Božidar Đelić, Deputy Prime Minister and Science Minister of the Republic of Serbia

FROM THE WORLD PRESS FACES & PLACES

Cetinje – Montenegro

PHOTO Slobodan Jotić, Darko Cvetanović TRANSLATION: Snezana Bjelotomic EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PROJECT MANAGER: Vesna Vukajlović, v.vukajlovic@aim.rs; Marija Savić, m.savic@ aim.rs; Marija Petrović, m.petrovic@aim.rs; Snežana Terzić, s.terzic@aim.rs FINANCIAL DIRECTOR Ana Besedic, a.besedic@cma.rs GENERAL MANAGER

FAVOURABLE REGION FOR INVESTMENT

Srđan Lazović, Director of Corporate and Regulatory Affairs for the East Balkans in British American Tobacco (BAT)

ANTIC’S EAGLES TO CHALLENGE ITALY

Euro 2012 QualiﬁErs Draw

CULTURE CALENDAR

64 CULLTURE NEWS

66 CHILL OUT 68 PANNONIAN NOAH’S ARK

70 BG CAR SHOW 03 75

Ivan Novcic, i.novcic@cma.rs PRINTING Rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance intrenational media Kneginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fax: +(381 11) 244 81 27

Vojvodina farmsteads

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ABC Serbia

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comment

Regional Cooperation, Anyone? When I was asked to write this article – ‘to explain the beneﬁts of having at least sustainable political co-operation and economic relations within the region’ – my ﬁrst reaction was ‘Why?’ Isn’t it obvious why this is a Good Thing? Why would anyone want to have no political cooperation, or no economic relations?

ut then I thought back to Barbara Tuchman’s ‘The March of Folly ’– an examination of why governments throughout history have doggedly pursued policies which were clearly contrary to their own self-interest. On the face of it, this sounds absurd. But there are countless examples, from every continent and period. And the reason it happens is that, time and again, the voice of reason is drowned out by other voices – ambition, fear, pride, prejudice, self-deception. It works like this. Someone in government launches a policy which is, in fact, a mistake. Maybe he got his facts wrong. Maybe he underestimated the resistance he would encounter. That mistake is challenged – by a rival, or maybe by ‘life itself’. Logically, our politician should re-think. But his pride is engaged, and his ambition; he doesn’t want to admit to a mistake, which might cost him his reputation, or even his job. Emotion takes over from reason – he no longer thinks he is right, he knows he is. So, instead, he reinforces his initial failure. He invests more and more in the policy that isn’t working. His mental world view shrinks. His position becomes more and more rigid. His colleagues are forced to support him; any hint of private reservations becomes treachery. As the costs rise, and as outsiders look on aghast, he insists he will ‘never’ change, whatever the consequences. He genuinely believes that it is all a matter of will-power – that if he is only strong enough, he will be able to prove everyone wrong, and win through. The result, inevitably, is disaster – for him, for his party, his government, maybe even his whole country. ‘He’, of course, can be ‘she’. Many people would see the paragraphs above as a fair description of Mrs Thatcher’s end, as she tried, against every warning, to force through a deeply unpopular new tax, until finally her own party forced her from office. Closer to home here in Serbia, one recent example is the fall of former Prime Minister Kostunica as, obsessed with the issue of Kosovo, and ignoring everything else, he single-handedly led his party from a position of national importance into the political wilderness. The hardest words for any politician, anywhere, are: ‘I got that wrong. Sorry. Let’s start again.’ It’s so much easier to blame someone else – ‘They made the first move. We had no choice but to respond.’ No choice? No, not when Pride is making the decisions. And below the level of high politics, other factors creep in. An instinct for protectionism. Cronyism. Economic self-interest, blending so easily into corruption. And so decision-making is

distorted. Investment opportunities are missed. Trade is stifled. Everybody ends up poorer. How different it can be when people behave rationally. We can see how that works from the example of organised crime in the region. Criminals are not immune from emotions, of course; they have their fair share of pride and ambition. But their over-riding goal is a rational one – to make as much money as possible. In the history of organised crime around the world, even after the bitterest of turf wars, that principle has reestablished itself. It explains why in the Balkans, even in the 1990s, crime gangs were collaborating across all the national and ethnic divides, trafficking their goods, making their profits. As they still do today. Of course, at a rational level, everyone recognises the need for poBy HE. Mr Stephen litical and economic cooperation across the region – and cooperaWordsword, tion in other areas too, such as law British Ambasador enforcement. And a lot is going on, to Serbia some of it of real importance, some of it high level. All credit to those involved. But too much still goes on unremarked, obscured by grandiloquent gestures and provocative declarations. What the region needs is a new type of leadership – not the sort that is arbitrarily asserted by one side (if you are the leader, where are your followers?), but a leadership which inspires, because it is clearly in the interests of all. A leadership which says – ‘I am not just thinking of myself, or my own country, but of the welfare of the whole region, and all its peoples.’ A leadership that is prepared to admit past mistakes and so make it easier for others to overcome theirs. A leadership that puts regional economic well-being – the legal version of the criminals’ profit motive – at the heart of its agenda, above all narrower national interests. The sort of leadership that the founders of the modern EU showed, many years ago, to overcome the deepest divisions and consign them to history. Perhaps then – probably only then – will this region see real progress. CorD 69 / March 2010 7

COVER STORY|

WEST BALKAN

MUTUAL UNDERSTA The region of the West Balkans, which mainly consists of former Yugoslav republics, is still riddled with disagreements and misunderstanding, making it difﬁcult to create a stable common basis that would help all countries ﬁnd the easiest and fastest road to the European Union By CorD Team ach country has its own historical, religious, national, and other distinctions, but it seems irrational that these countries cannot share a common interest on the path to EU accession, whether on bilateral or multilateral bases. Let’s not forget that joining the EU en-

tails exactly the values that the regional countries seem to refuse to accept: understanding, being considerate about individual and above all mutually beneficial interests, cohabitation, joint projects, assisting each other, and cooperation in almost all important areas of life. Not a single country can expect that 100% of their needs, expectations, and plans will be met,

since that borders on utopia. Sustainable and long-term cooperation is achieved only when each side respects both its own needs and those of others, along with all possibilities and idiosyncrasies. In this issue, CorD has approached a some of its esteemed readers – accredited ambassadors in Serbia - with the following question:

What are the current major obstacles for better regional cooperation and what steps have to be taken in order to improve global relations for the mutual benefit of the West Balkan countries?

HE, Mr. Dimosthenisa Stoidisa, Greek Ambassador to Serbia

ESSENTIAL COOPERATION Mutual understanding and acceleration of the pace of reforms are indicative ways of proceeding towards attainment of the objective of joining the EU. Regional cooperation is a very essential element in the process of the integration of the Western Balkan countries into the European and Euro-Atlantic institutions. In that respect, good neigh-

able cooperation. Active and constructive participation in regional initiatives i.e. CEFTA, SEECP, R.C.C, SEDM, involvement of NGOs, civil society, think-tanks in enriching the communication and mutual understanding process along with the acceleration of the pace of reforms, are indicative ways of proceeding towards

Good neighborly relations and peaceful resolution of outstanding issues are prerequisites for an effective and operable cooperation. borly relations, peaceful resolution of outstanding issues through mutually acceptable solutions, economic development, social consciousness of sharing a common future with all other peoples in the region in a reconciled environment, are prerequisites for effective and oper8 CorD 69 / March 2010

the attainment of the objective of joining the EU family. Obviously, the EU and the members states must remain committed to lending their multifaceted support to the countries that deserve to be evaluated according to their individual performance.

ANDING ABOVE ALL H. E. Mr. Imre Varga, Hungarian Ambassador to Serbia

FLEXIBILITY AND CREATIVITY REQUIRED Regional cooperation is the interest of the Union. The Union is ready to facilitate, mediate and if necessary, finance efforts put in finding compromises. The enlargement policy of the European Union has the aim, among others, of strengthening the stability and prosperity of the whole continent. The EU would not like to import additional problems. Therefore, it is the essential task of the countries that desire to be part of the Union to settle their relations with their neighbors. This was the case of the countries involved in the 5th enlargement circle. Accession is a possibility, but application is always a voluntary decision. In the ex-Yugoslav area, it means that the conflicts of the past 20 years has to be terminated, that “the hatchet has to be buried,” and that finding the solution for open issues is a task of all parties involved. There are plenty of open issues, but the regional frameworks exist (CEFTA, RCC etc.), and these frameworks provide appro-

OPEN ISSUES Serbia has a number of major and less important unresolved issues with all former Yugoslavia republics. According to Blic daily newspaper, the list looks like this: With Montenegro: Saric case; Recognition of Kosovo by Montenegro Serbian minorities in Montenegro With Bosnia and Herzegovina: War and the declaration on the legacy of Srebrenica; The announcement of the referendum on the national question in Republika Srpska With Croatia: Mutual lawsuits before the International Court in The Hague; Return of Serbian refugees to Croatia; The issue of leadership in the region With Macedonia: Recognition of Kosovo by Macedonia; Macedonian Orthodox Church

priate conditions for communication as well. In the course of looking for solutions, one has to be flexible and creative, because there are no standards set in advance. The EU offers no answers. It has no specified models or scripts (actually, there are several well-functioning models in Europe), but it could provide its experi-

Being a neighboring country, Hungary is more than interested in regional stability and prosperity ence in solving similar problems and principles on which the Union’s internal cooperation lies, like dialogue, mutual confidence, trying to reach a consensus, and so on. Regional cooperation is the interest of the Union. The Union is ready to facilitate, mediate, and if necessary, finance efforts put in finding the compromises.

Being a neighboring country, Hungary is more than interested in regional stability and prosperity. As we see the role of Hungary, it is to assist the countries in the region to find solutions and if needed, to serve as a mediator between them. Unsolved questions must be put on the agenda, and Budapest is ready to contribute to finding appropriate solutions in a bona fide dialogue on open issues.

HE Mr. Iou Macovei, Rumanian Ambassador to Serbia

EASY QUESTION, DIFFICULT ANSWER! For Romania, the road towards the EU was one of the national objectives laid down in the beginning of the nineties and constantly had the support of the entire political class, government, or opposition. I would begin by saying that the questions are not difficult by themselves, but the answers might be complex and, I would add, they are different on a case-by-case basis, depending upon the region. I would focus on the Romanian experience and on the long process of integration. It required a lot of energy and effort, political will, and internal consensus on national objectives and, most of all, involvement in articulating mechanisms of regional cooperation, one of the essential criteria benchmarking

the successive stages towards EU membership. First of all, it is necessary to try to define the concept of “regional cooperation,” starting with the European example. There are two levels, which are strongly connected: The first is the common spiritual heritage, value system, and their hierarchy. By engaging with this system, we find again the availability to communicate, to identify resources to harmonize different approaches, and to shape a common vision of the future. The second level is related to pragmatism, to daily life, to satisfying all the criteria generating prosperous economies and as a result, high living conditions for the citizens. Here we can talk CorD 69 / March 2010 9

COVER STORY|

about infrastructure, exploitation of common assets (EU Strategy for the Danube), harmonizing the legal framework that could support investments with the aim of generating mutual development for each country and for the region as a whole, and substantiating regional cooperation mechanisms focused on generous and efficient projects. Against this background, we recall the RCC and SEECP, as well as the CEFTA Agreement, relevant structures in the Western Balkans and among partners in the region. Dialogue facilitates devising the first level and consequently the passage towards the second one. It is a

difficult and long process, which favors integration within a common space, shaped by the same values, the same visions, and ultimately, by the same future. Europe has built itself and has reinvented itself through dialogue. Romania, like all states in Central and Eastern Europe, has worked individ-

2009 certainly represented an extremely important year in the region’s road towards the EU: visa liberalisation regime, unfreezing of the Interim Agreement for Serbia ually as well as cooperatively in order to rejoin a space where they have always belonged, with the exception, I would say, of a history gap. The benefits stem from the political level (participation in the European decision-making process), economic level (guarantee of a

favourable environment for investments), and social level (free movement of people and of labour force; the right of children and students to study abroad under extremely favourable conditions). These represent only a few concrete examples. In a wider perspective, these benefits are measurable through stability, predictability, certitude, and the guarantee of a safe future. This experience of adjusting to the processes within the EU had a solid foundation and beginning, meaning cooperation at the regional level. Without this exercise, cooperation at the extended level, within the Union, is much more difficult. It is also true that throughout this process a concrete European perspective stands for a necessary incentive. From this point of view, 2009 certainly represented an extremely important year in the region’s road towards the EU (visa liberalisation regime for certain countries, unfreezing of the Interim Agreement for Serbia). But it was a consequence of the substantial progress of the countries in the region as well as of the European perspective, from which the Western Balkans region should be perceived.

H.E. Mr. Georgi Dimitrov, Bulagrian Ambassador to Serbia

RELY ON THE THESSAALONIKI AGENDA Bulgaria stands firmly behind the European and Euro-Atlantic integration of the Western Balkan states as a foundation for settling longterm security, economic prosperity, and good neighborly relations in the region. I wouldn’t say that there are significant obstacles to the development of regional cooperation at the moment. We have witnessed different approaches based on dialogue and balanced positions that have helped overcome certain issues and open questions. A noticeable increase of interest for new forms of cooperation was developed recently, which is in the core of the basic idea of general improvement and support

Progress of good neighborly relations is a fundamental precondition for regional cooperation development, including bilateral and multilateral collaboration among states 10 CorD 69 / March 2010

for the European perspective of the Western Balkans. As you know, Bulgaria stands firmly behind the European and Euro-Atlantic integration of the Western Balkan states as a foundation for settling long-term security, economic prosperity, and good neighborly relations in the region. We believe that the integration process of the Western Balkans to the EU should be realized according to the Thessaloniki Agenda. It’s necessary to find mechanisms for the achievement of its goals, including significant regional infrastructure projects, as a keynote for stability and prosperity of the region. The Thessaloniki Agenda recommends that the Western Balkan countries work on progressing in the areas of education, social development, and culture, including the initiative for objective review of history schoolbooks, as a way to pave the path to tolerance and a modern democratic society. I’d like to point out good neighborly relations as a fundamental precondition for regional cooperation development, including through all forms of bilateral and multilateral collaboration among states, and sharing responsibilities instead of simultaneously covering identical

tasks. With a great deal of certainty one could say that the priority of the Serbian government referring to the construction of the Road and Railway Transportation Corridor No. 10 and its branches will contribute to the development of cooperation and economic relations in the region. Similar is the perspective for the countries in the region participating in the Pan-European energy projects. Bulgaria is very much confident and highly supportive of the European future of the Western Balkans countries. This position is based on our belief that security, stability, and prosperity in the region can be achieved only in terms of shared values. In regard to the process of preparation for membership of these states, I’m positive that, democratic reforms in them will be deepened and standards of good neighborly relations will be covered.

COMMENT |

By Božidar Đelić, Deputy Prime Minister and Science Minister of the Republic of Serbia

RE-THINKING, RE-DESIGNIN The ﬁnancial crisis of 2008 and the deep economic recession in 2009 have brought to the forefront the question of the global economy’s future. Because of the crisis, the validity of the concept of economic liberalism and system risks associated with the globalization process are being questioned, which in turn creates a need to come up with a new economic model and a new way of global guidance. discussion ensued about re-designing the existing world as painlessly as possible, while harmonizing national policies, setting up supervision institutions, and reforming international organizations with the aim of preventing future downfalls and securing sustainable development. Re-thinking, re-designing and re-setting values, norms, and incentives that will re-shape the society, the global economic model, and the way we manage the world were the key topics of this year’s World Economic Forum in Davos. The main conclusion was that the global crisis was still not over and that the two key causes of the crisis might be under fragile control at the moment, but had not been eliminated. The first crisis factor is certainly a financial gamble and an international financial system that is out of control. The pressure exerted by financial lobbies, especially in the United States, can be precisely determined in thousands of billions of dollars that the government had to pay via recapitalization and acquiring worthless financial assets, while at the same time, fearing that the entire system would collapse. Making the accounting standards even more lax is becoming absurd. Also, there was a problem with transitioning from market evaluation of stock to theoretical evaluation (!) which happened in the U.S. in April of last year which resulted in bankers being reimbursed with billions and billions of dollars in bonuses at the tax payers’ expense, amidst the terrible crisis. The second factor is global macro-economic imbalance. In only fifteen years, the disparity of the global current account balance grew fivefold from $200 billion to over $1,000 billion in 2008. In order to stop the crisis from spreading in the financial sector and spilling over into the real sector, the economic theories by Keynes have been gaining momentum. Last year, state subsidies led to an unprecedented state debt generated in OECD countries in excess of $5,300 billion, which is 9% of the aforementioned countries’ GDP. In 1993, Serbia lived through devastating hyper-inflation, the second worst in the history of humankind, prompted by Slobodan Milošević’s printing money without having real economic backing. That’s why we held our breath in March of 2009 when the

12 CorD 69 / March 2010

G AND RE-SETTING VALUES central banks of Great Britain and the United States decided to do the same, under the pretense of “quantitative mitigation.” Although, this time around the circumstances were different, this decision was a surprising choice, to say the least, by those countries who had been teaching other states for decades how to implement a sound monetary policy while making sure central banks remained independent. In this context, we can rightly say that a new world is being created. Now the world no longer has the American super-power at its helm, like immediately after the fall of the Berlin Wall and the disintegration of the Soviet Union. This is not a multi-polar world either, like at the time of the Cold War, when power centers butted heads because of opposing ideologies. The economic growth of BRIC countries (Brazil, Russia, India, and China) is still high, i.e. much higher than in the developed world. In China alone, it stands at 8%. The influence exerted by new economies and oil producing countries has been gradually growing. We are witnesses of many regional and global initiatives that exclude western countries. ASEAN, for instance, is progressively turning into a united Asian market, just like the EU. In only two years, the financial sector has become completely transformed. In 2007, nine out of ten leading financial institutions (in terms of market capitalization which stood at $1,500 billion) came from the West or Japan. Today, 55% of the overall capitalization of the ten leading banks is in the hands of four Chinese institutions.

Global management of the world is absent.There is no consensus about required bank capital, managing and limiting bonuses, or the so-called Tobin tax on all spot conversions The Central and East European countries, which have developed their financial systems the most, as well as the Baltic countries, have been hit the worst. However, Serbia and Southeast Europe were not as affected since their financial mechanisms are not developed to that extent. We should view this as a warning as to which economic model should we adopt and apply. We can also see that the crisis served as a sort of development impetus to industry, agriculture, economy of knowledge, with finances, services, and non-export sectors taking a back seat. However, we still haven’t found a new model of managing this new world, although the crisis did result in rather useful initiatives. G7 officially became G20 (which has already met three times), while Europe was quick to develop a joint operational framework. In the case of Lithuania, Romania, Hungary, and Greece, the advantages of being EU members or joining the euro zone have been very obvious indeed. Europe has also established a joint European Financial Supervision System and European Systematic Risk Council. For the first time ev-

er, the fight against tax evasion and offshore centers yielded significant results in the U.S., France, and throughout Europe. The initiatives launched by President Barack Obama at the beginning of 2010 are pointed in that direction. Still, global management of the world is absent. There is no consensus about required bank capital, managing and limiting bonuses, or the so-called Tobin tax on all spot conversions. Decisions made by G20 are still not mandatory. The recent Copenhagen summit on global warming clearly demonstrated the risk of G7 turning into G2 rather than G20, and the risk of confrontation between the U.S.A. and China, where Europe and the rest of the world would be mere spectators. Climate issues pose a special challenge to Europe, since Europe has been the global leader in this area. Also, the Doha Development Agenda has still not been concluded. The German initiative for setting up the Economic Security Council in the UN failed to materialize. Countries are implementing uncoordinated fiscal policies which could lead to a new crisis where overindebted states would no longer be safe havens, like two years ago. Regardless of the irrefutable progress made in the last few years, the world and capitalism are still facing economic problems and there is no sustainable value system as yet. So, what needs to be done? First, we need to eliminate the two aforementioned causes of the crisis. Political leaders need to put state interests first in order to overcome the huge influence that financial lobbies exert. The current structure of bank balance and loans they provide to the real sector cannot please anybody. We should not subject banks to a new witch hunt, but rather reduce the system risks for the population and economy alike. We should reinstate the Glass-Steagall Act and split the biggest banks into two categories – low risk banks that will deal with retail and corporate sectors, and high risk ones that will operate on the capital market. Also, we should introduce certain mechanisms in order to avoid the syndrome of a bank being too big to fall down, and create a global reserve system as an introduction to a multi-monetary world. It is time for an institution like the World Trade Organization to be set up which would supervise the financial sector. Finally, the new global public goods like climate, water, energy, and health, should be good enough reason for G20 and other countries to get involved with the UN system and specialized international organizations in an effort to guide the world along a sustainable growth trajectory. For its part, Serbia is doing everything in its power to maintain the country and region’s stability and to continue to attract investments ($2 billion worth of investments were made last year), with the country’s expected economic growth of 2% in 2010. We are building an infrastructure that is of European importance, especially the road and railway Corridor 10. At the end of last year, we formally applied for EU membership, and our citizens are now free to travel to the EU without visas. Serbia’s aim is to become an appealing and constructive member of the European family. CorD 69 / March 2010 13

INTERVIEW |

KIRILL KRAVCHENKO, C.E.O. OF NIS SERBIA

DIFFICULT AND IN Itâ&#x20AC;&#x2122;s been just over a year since Gazprom Neft came to Serbia by acquiring a majority share in Petroleum Industry of Serbia (NIS), following a series of agreements and misconceptions.The arrival of the new owner shook the old habits to the core which resulted in misinterpretation of the companyâ&#x20AC;&#x2122;s end-of-the-year accounts for 2008. Following two quite costly audits, it turned out that NIS did generate huge losses in 2008, which had been hidden not only from the future owner, but also from the Serbian taxpayers

14 CorD 69 / March 2010

TERESTING YEAR By Snezana TUMIC he man who has been running the company throughout these trials and tribulations and who managed to untangle the complicated web that this huge company entangled itself in is called Kirill Kravchenko. He is only 33 years old, and with a rational and assertive management of the company, he succeeded in resolving the inherited problems, applying new solutions and raising overall company efficiency. Now, at the end of the first full business year, C.E.O. of Petroleum Industry of Serbia Kirill Kravchenko gave an exclusive interview to CorD magazine.

Last year was pretty turbulent. What stands out most in your mind? We could say that last year was both difficult and interesting. Regardless of hardships, I think that 2009 was quite successful for the company – we have stabilized its financial situation, started with modernization and devised a development strategy covering the period of next five years. Also, we have started to produce high margin petroleum products, primarily euro-diesel, and managed to secure the most profitable business direction for us – that is crude production. Regardless of the fact that the Q2, Q3 and Q4 were profitable, at the end of the year, we will see loss. First of all because the loss generated in the Q1 was quite high, and second, too many problems from the past have not been resolved due to an understandable reason – the economic downturn. Still, I think

EDUCATION The graduate diploma in sociology and a doctorate degree in Economics have enabled me to look at things from various perspectives.

that we have laid a good foundation for further transforming of NIS from the sluggish state-owned monopolist into a company that will be able to compete with the biggest players on the Balkan oil market soon, as well as become the regional leader. Can we say that 2010 will be the year when we are finally going to see a dynamic and programmed development of NIS? Our aim is to make NIS the most efficient oil company in the Balkans and maintain its leadership position in Serbia. In 2009,

a person. But if we transfer this analogy to the language of business and to the corporate discussions, then it is called efficiency. For the first time in several years, NIS will be profitable, especially when we bear in mind a positive tendency that we managed to achieve in the latter half of 2009. Back then, we started to get ourselves ready for when the Serbian market of petroleum products opens up, which is planned for next year, as well as to cut back on the costs, develop NIS’s retail network in line with environmental standards and modernize the com-

For the first time in many years, NIS will be profitable, especially when we bear in mind a positive tendency that we managed to achieve in the latter half of 2009. our main aim was to stabilize the company. In 2010, we are going to make significant progress in quality, or as you put it, a dynamic and programmed development. Bearing in mind that NIS is a vertically integrated company, we are going to strive to accomplish a balanced development of all business segments – from increasing production and processing of our own crude to extending the retail network. What are the company’s strategic priorities in 2010? A whole year program including intensive fitness training, healthy way of living, abandoning bad habits, losing weight. That is how I would describe the priorities for 2010, for

PLANS Special attention will be given to developing the company’s retail network and building new petrol stations in accordance with the new marketing policy.

pany’s oil refineries. As I said before, special attention will be given to developing the company’s retail network and building new petrol stations in accordance with the new marketing policy in NIS. As a result of this modernization, NIS will have the latest refining complex and the biggest network of petrol stations in Serbia. I am sure that this is an excellent prerequisite for victory. With regards to investments, aside from the money that we need to set aside for development of processing activities as per the SPA, NIS will invest its own funds in development of retail and exploitation projects. In addition to that, we are going to continue making active changes, as well as improving efficiency within the company. One of the priorities

GOALS The state of Serbia and Gazprom Neft share the same goal – to increase NIS’s efﬁciency and make the company one of the leaders in Europe. CorD 69 / March 2010 15

INTERVIEW |

Russia says that it has made a u-turn towards modernization, technological development, and rational utilization of natural resources. What is your view, as a young expert, of these changes taking place in your country? In the last 10-15 years in the oil industry there were significant technological changes both in the area of crude production and refining. In Serbia, we are taking the same path and we have already started to exploit new technologies in production and we have introduced the new catalyst production scheme for refining of Euro-Fuel in our Refineries. Introduction of modern technological facilities such as hydrocracking will have a significant impact on technology. Modernization and technological development are a must for the countries that were economically lagging behind developed countries at the end of 20th century and are now rapidly developing. We need to make up for what we lost. We need to catch up with the leaders together.

is also transforming NIS into a public limited company and I am sure that we are going to provide small shareholders with convincing evidence that the company is stable and has a great potential for increasing its value. When making plans for 2010 and with the aim of increasing our business range, we paid a great deal of attention to seeking out possible partners, as well as new assets, not only in Serbia, but abroad too. It seems that Gazprom Neft has been adhering to its obligations stipulated in the contract on acquisition of NIS. How much has the other side adhered to it? The state of Serbia and Gazprom Neft share the same goal – to increase NIS’s efficiency and make the company one of the leaders on the European oil product market. With that aim in mind, we are having regular consultations with both the Serbian president and Prime Minister. I do hope that, in the following few months, we will succeed in resolving the remaining problems, like the unregulated issue of registering the company’s property which makes a significant portion of its value, as well as settling close to 4,000 ‘old’ lawsuits filed against NIS, with the Serbian side being actually obligated to deal with them too. Together with the Serbian government we devised a certain plan, and I hope that by the time we float NIS’s shares on the stock exchange, most of these property issues will be worked out. I would also like to underline that at the beginning of this year, the Serbian government settled its obligations stemming from the sales contract relating to allocation of company’s shares to Serbian citizens. According to the information we dispose of, NIS is now a company with the highest number of shareholders in the world – 4.7 million, to be precise. We began to get ready for the new circumstances back in the summer last year in accordance with the plan approved by our Board of Directors. I think that the process of floating our shares on the stock market will be relatively painless for the company. As soon as you were appointed C.E.O. of NIS, you announced more rational business operations and settling various claims. How much have you succeeded in that? In 2009, we stabilized the company’s finances, ascertained claims, reduced credit li16 CorD 69 / March 2010

Modernization and technological development are a must for the countries that were economically lagging behind developed countries at the end of 20th century and are now rapidly developing. We need to make up for what we lost. We need to catch up with the leaders together abilities, and defined our reserves. We did a lot on restructuring our credit portfolio and reducing the amount NIS owes to banks. What is exceptionally important is that we have managed to achieve a positive cash flow of 17.4 billion dinars, which made it possible for us to implement our investment programme. In 2008, the operating cash flow was negative, in the region of 15 billion dinars.

Mr. Kravchenko, for a person of 33 years of age your resume is quite impressive. You have graduated from the Lomonosov University, studied in Great Britain, received a Ph.D. in economy and finance, and worked in Siberia and Latin America. In which way has all of this helped you in Serbia? The graduate diploma in sociology and a doctorate degree in Economics have enabled me to look at things from various perspectives. Doing business also means managing people, and economy is simply a measuring instrument. If I compare Serbia to Russia, I would say that Serbia is closer to Europe, in terms of tradition, working hours, and practical approach to work. However, we share certain similarities. We have Slavic roots, deep souls, we like to work, but we also like to relax. At this moment, Serbia is in a very active stage amidst integration into international structures. The changes that are happening now are much faster than those from ten years ago. I am confident that in three years’ time, Serbia will be a completely new state. We are witnessing great changes taking place which are leading towards a great future and I am confident that NIS can make its contribution.

CorD 69 / March 2010 17

INTERVIEW |

H.E. MR. SHPETIM CAUSHI, ALBANIAN AMBASSADOR TO SERBIA

Open Policy Without Prejudice We pay special attention and give priority to the relations with Serbia since they create an atmosphere of positive development in all the Western Balkans. It is evident that in Tirana as well as in Belgrade, these relations have been evaluated and have the predisposition to be developed at a rapid rhythm By Stefan PEROVIC Photo Slobodan JOTIC Your Excellency, what is your view of the overall relations between regional countries comparing to five years ago? Are these relations stagnating or improving? I follow the opinion that the main characteristic of our region, the Western Balkans, in general and especially in the years you mention, is not stagnation, but a moving forward toward the new developments our continent of Europe offers. Stagnation on the economic plane can be judged as a pause that is needed for a higher temp on our common way towards democracy and rule of law. This pause could have been affected by geopolitical changes too, which we experienced in our region in recent years, and as a historical determination, which must be managed progressively, peacefully, and democratically . The pause we went through had also been imposed on us by the global economic financial crisis, unforeseen by developed countries of the world, too. I think our region in general has made progress. Iâ&#x20AC;&#x2122;m not schematic; I see, I judge the dialectic of development in a rightful way, and therefore I am optimistic on this positive tendency of our region. 18 CorD 69 / March 2010

What role does Albania play in these relations? Albania has always held a constructive and moderate attitude in its foreign policy, even in the most dramatic situations our region has gone through. Currently, we have offered to every country of the Western Balkans, including Serbia, an open policy of cooperation, without prejudice. Albania is seriously committed to European integration processes. It is now a member of NATO and has applied for the status of a candidate country in the EU. We pay special attention and give priority to the relations with Serbia since they create an atmosphere of positive development in all the Western Balkans. It is evident that in Tirana as well as in Belgrade, these relations have been evaluated and have the predisposition to be developed at a rapid rhythm. Do you think the Kosovo events could lead to the borders in the region, as well as around the world, changing? Borders will become symbolic in the process of integration of the Western Balkan countries in the European Union. I served for 7 years as Ambassador of Albania to the Council of Europe in Strasbourg. There I had the opportunity to closely look the â&#x20AC;&#x2DC;nat-

We pay special attention and give priority to the relations with Serbia since they create an atmosphere of positive development in all the Western Balkans. development on the whole continent, a format of an admirable friendship. Concerning the Kosovo issue, I may say we do not share the same opinion with the Serbian side and this is known. We maintain the same position with 65 countries that have recognized the state of Kosovo. We think this serves stability in the region. Moreover, I may underline and emphasize that most EU countries share the same opinion as we do. Serbia and Albania have had very strained relations. In your opinion, what needs to be done in order for these relations to improve? Could they become better even without the EU demanding so, with economic interests of both countries being the corner stone? Do you think that economic interests are more important than political or vice versa? I would not like to comment on the relations that Albania and Serbia had in the past. I would like to concentrate on the current ones. We are of the opinion that no country in the region should apply politics emotion-

Concerning the Kosovo issue, I may say we do not share the same opinion with the Serbian side and this is known. We maintain the same position with 65 countries that have recognized the state of Kosovo. uralâ&#x20AC;&#x2122; transformation of state borders to symbolic, virtual, open ones, which are examples of human and material cooperation. . Only about 60 years ago, these boundaries carried within themselves a great deal of old enmity between France and Germany. Today these two countries are examples of European democracies, powerful factors of

BORDERS Borders will become symbolic in the process of integration of the Western Balkan countries in the European Union.

ally based on past motives loaded with hatred and hostility, but a country should look to the future, which we should share in the interest of prosperity and from a European perspective. At present, between Albania and Serbia there are offered possibilities of cooperation especially in the field of economy, where

EUROPE Albania is seriously committed to EU integration processes.We are a member of NATO and has applied for the status of a candidate country in the EU.

there exist interests to benefit both countries. Albania, even at the peak of the world financial crisis (despite its influence) continued its economic growth, the highest in the whole region. Important components of the road infrastructure have been built in our country, something which could not be imagined even a few years ago. We offer our southern Adriatic ports for the transport of goods of Serbia and of other central European countries .In recent years, tourism development has been admirable. Our beaches, still virgin, are the best offer to Serbian interested investors, as is the agriculture and food industry, which will better support tourism development. The number of foreign tourists in Albania is expected to exceed the number of population of the country. Serbian tourists are welcome in the warm waters of the Adriatic and Ionian Seas. This economic indication is to affect the policy in Tirana and Belgrade in order to be closer to business interests and economic development. Messages are actually positive from both our capitals. The visit of the Albanian Deputy Prime Minister and Minister of Foreign Affairs in Belgrade, which will take place in coming days, carries in itself this rapid development between our two countries. Of special importance will be the expected official visit of the President of the Serbian Republic, Mr. Boris Tadic, in Albania at the invitation of Albanian high authorities, especially through the initiative of Dr.Sali Berisha, Prime Minister of Albania and former President of the Republic. We expect very much positive outcome from these highlevel exchanges between our two countries, which will be accompanied by the signing of a series of interstates agreements.

KOSOVO I am convinced that Kosovo will be actively present in the processes of development with regional interest. CorD 69 / March 2010 19

INTERVIEW |

Once regional countries join the EU, this will greatly change their mutual relations. Until this happens, they will have to live together and continue developing. What do you anticipate when it comes to the development of relations between Serbia, Kosovo and Albania in the following period? There is no doubt that the common integration of all countries of the region in the EU will happen one day. As I have mentioned, the EU offers equal standards for all countries and peoples of this region in which traditional boundaries in the close future will be transformed into symbols of friendship, good understanding, and human communication, free opinion, without prejudice. This is not only a dream. This is a reality, in which the synergies of our countries are united for a common goal. In your opinion, what will be the end result of the process pertaining to the Kosovo’s unilateral declaration of independence that is pending in The Hague? Concerning the Kosovo issue, as I previously said, unfortunately we do not share the same opinion with Serbian side. I am convinced that Kosovo will be actively present in the processes of development with regional interest, because cooperation with it is part of the common processes we have in the framework of European integration. Given the circumstances, is it realistic to expect for Serbs in Kosovo to live under same conditions as other nations there, and what should be done in order for Serbs in Kosovo not to fear what the future has in store for them? The level of democracy of a country is determined particularly by minority rights respected throughout it. This is valid for all minorities and majorities wherever they are. It is certain that after the European integration processes, they will have the same standards of respect for their rights. The state of law being designed by all Western Balkan countries will have the same effect, protection, and respect of human rights, democracy and state of law, social guarantees, and equal legal justice, regardless of race, religion, and cultural traditions, etc...

20 CorD 69 / March 2010

culture, mutual investment in industry, agriculture, particularly in tourism, and other spheres of mutual interest.

“I would like to ...imagine, to dream that my son is ambassador in Belgrade and hope that when he looks back to our days he would not complain or criticize me, his father, and the present generation for wasted time, the valuable time of progress” Could you give us a comment about the statement made by the Kosovo Parliament’s Speaker, Jakup Krasniqi about the status of Serbs in north Kosovo, in the context of reducing the tensions in the region? Regarding this statement, I would suggest you should ask Mr. Krasniqi himself. I have no comment. What is your view of the economic collaboration between Albania and Serbia, and which aspects of this collaboration have the greatest potential, i.e. which economy branches or projects? This issue was explained above, regarding cooperation in the field of economy,

In which direction are the relations between Albania and Macedonia developing and what is their future? Is the quite high number of Albanians in Macedonia and Macedonian ethnic minority in Albania considered the factor that facilitates or cumbers the good relations? Albania and Macedonia are maintaining very good relations and work cooperatively in many fields of mutual interest. Albanians in Macedonia are the connecting bridge of friendship between Tirana and Skopje. Both our countries are in the advanced stages of Euro Atlantic integration, which will lay a solid basis for developing future relations. According to data I have, our coast has been visited by a significant number of Serbian citizens, not including here businessmen and others interested in agreements, contracts, and connections of an economic and business character. Also, as far as I know, many Albanians have visited your beautiful country, but I hope in future this number will increase, especially after the facilities of the visa regime between our two countries. I am sure that many Albanians will come to Kopaonik… Do you think that one day Serbs will vacation on the Albanian section of the Adriatic shore or, for example, an Albanian sports club train on the Kopaonik mountain? Although it is a hypothetical question, I would like to ...imagine, to dream that my son is ambassador in Belgrade and hope that when he looks back to our days he would not complain or criticize me, his father, and the present generation for wasted time, the valuable time of progress. What would be the Abanian Embassy’s activities in Serbia in the year 2020, which is the year when all West Balkan countries are supposed to become EU members? Could you compare them to your current activities? So, we have to work hard and seriously today, with an open mind so that future generations will not accuse our generation for wasted years.

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ECONOMY |

The 40th World Economic Forum (WEF) annual meeting in Davos

Look with Concern to 2010

World leaders concluded their ﬁve-day discussions on post-crisis economic recovery, the improvement of ﬁnancial regulation and climate change.The world economy, after experiencing the worst ever crisis since the Great Depression in the 1930s, is recovering unevenly in different countries and regions, according to the annual meeting of the World Economic Forum (WEF) in Davos. Most participants believe the recovery is being led by fast growing emerging markets like China and India, while the United States and European nations are falling behind By Anne SEITH, Der Spiegel any in Davos were skeptical about the speed with which the global economy might recover.Many countries have started to see a rebound from last year’s economic recession. But will it last? Economists at the World Economic Forum in Davos warn that paying down massive public debt will be “very, very painful.” Deep spending cuts and significant tax hikes may be unavoidable.For those now in

22 CorD 69 / March 2010

their 30s, Kenneth Rogoff has bad news. “It will be terrible for you,” the Harvard University economics professor told a young German at the World Economic Forum in Davos. “Germany’s debt is exploding, the population is aging,” he said. “And to be honest, I think your country is going to have average growth of just 1 percent in the coming years.” Rogoff went on to say that, should Germany wish to begin making inroads into its mountain of debt, there is no way around strict savings measures and significant tax increases. “It will be very, very painful,” Rogoff said, adding that it will take at least a decade, and possibly many more, for Germany to pay down its debt. He wasn’t the only one in Davos with a dark vision of the future. Many countries could be stricken with the “Japan illness,” said Robert Shiller, a behavioral economist at Yale University. Following a financial crisis in the 1980s, Japan’s economy remained in the doldrums for years as trust in the economy’s ability to recover evaporated. Few were willing to take risks, sapping the Japanese economy of its life blood, said Shiller. “Such a situation could take hold in many regions of the world.” Such prognoses raise questions about the recent global economic recovery, modest though it may be. Is a second recession just around the corner, part two of what some warn could be a “double dip?” In the fourth quarter of 2009, the US economy grew by an impressive 5.7 percent -- but how durable are such gains?

‘HISTORICALLY EXCEPTIONAL’ One thing is clear: 2010 presents steep challenges to the world economy. “There is an illusion of normalcy,” Rogoff warns. But that illusion, he points out, comes largely as a result of the immense amount of money pumped into the economy by governments around the world. The result -- massive public debt across the globe -- is “historically exceptional,” Rogoff says. The only comparable situation can be found during the Great Depression, he points out. The question now is when to shift priorities. When can one begin focusing on paying down public debt without immediately stifling the fragile recovery? And, of course, will taxpayers play along? “In the US, for example, any politician who tries to significantly raise taxes would be gone immediately,” Rogoff is convinced. “We haven’t had to tighten our belts for 50 years.” Shiller says he can already sense a widespread feeling of anger among his compatriots -- a degree of anger, he said, that hasn’t been felt among the America populace since the Vietnam War.The situation isn’t much different in many other countries in the industrialized world.

CONDUCIVE FOR THE RUMOR MILL It is the situation in Greece, however, that shows just how dangerous the situation has become. The country is facing public debt that is 110 percent of its GDP -- a state of affairs which has proven conducive for the rumor mill. Last week, it was said that Greece was looking for money from China; others reported that Athens might extract itself from the common European currency, the euro; still others said that Germany and other EU countries were preparing a bailout package for Greece. Denials from the Greek government did little to help. Greece saw its borrowing costs rise sharply amid a hike in interest rates. “Such stories frighten investors,” says Shiller. It might only be a matter of time until similar stories destroy investor confidence in other countries too. “Currently, the world is still keen to lend us money,” said Rogoff referring to the US. “But that will not continue forever.” In Europe there are already warnings that a domino effect could spread from Greece. The finances of countries like Ireland, Spain and Portugal are in a similarly sorry state.

STRESS TEST FOR THE EURO The Greek crisis is also a dangerous stress test for the euro, as it presents the rest of the euro-zone members with a tricky dilemma. If they were to help out Greece financially, it would set a risky precedent -- other countries with shaky finances could in the future rely on being bailed out in an emergency. The financial markets would suddenly require risk premiums for bonds even from countries like Germany, because of the possibility that they might have to rescue their weak neighbors. But if the euro-zone members were to leave Greece to its own devices and the state went bankrupt, the impact on the single currency would be disastrous. “The euro is getting more and more important as a reserve currency,” says Shiller.

Many countries could be stricken with the “Japan illness”. Following a financial crisis in the 1980s, Japan’s economy remained in the doldrums for years as trust in the economy’s ability to recover evaporated “People believe that euro-denominated debt is safe.” A state bankruptcy would profoundly shake that confidence, Shiller warns. There are also those who are spreading cautious optimism and drawing attention to glimmers of hope. The head of the International Monetary Fund, Dominique Strauss-Kahn, said in Davos that growth was returning faster than expected. He pointed to the fact that Asia has already almost completely recovered from the crisis, with the Chinese economy growing by 8.7 percent last year.

QUOTES NICOLAS SARKOZY, President of France “This crisis is not just a global crisis. It is not a crisis in globalization. This crisis is a crisis of globalization.” LI KEQIANG, Executive Vice-Premier, State Council of the People’s Republic of China “As we stand at a new historical juncture, we must change the old way of inefficient growth and transform the current development model that is excessively reliant on investment and export.” SHARAN BURROW, President, International Trade Union Confederation (ITUC) “This is a fool’s paradise, for people who think [the recession] is over... “If we don’t have jobs, there is no sustainable way of re-balancing the global economy...” “People... sit here and say ‘It’s over’, while we know there are millions of jobs still to be lost.” DAVID CAMERON, LEADER OF THE CONSERVATIVE PARTY, UNITED KINGDOM “We’ve got to make sure we learn the right lessons from the crisis. One of those: It wasn’t the free enterprise system as a whole that failed, it was the financial bubble and imbalances that caused the problem. And so we mustn’t go back to some sort of failed corporatist model of picking winners. I think that would be a big mistake.” JOSEF ACKERMANN, CHAIRMAN OF THE MANAGEMENT BOARD AND THE GROUP EXECUTIVE COMMITTEE, DEUTSCHE BANK AG “I think the situation is still pretty fragile. And if you look at the financial markets, they have become pretty nervous again... So all in all, I would say we better keep everything on the somewhat cautious side.” MUHTAR KENT, CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER, THE COCA-COLA COMPANY, USA “As we enter the second decade of the 21st century, it is clear to all that fresh ideas and new approaches are critically needed to accelerate sustainable global economic growth and job creation, stimulate innovation, and advance human welfare. For businesses, the imperative is both real and pressing and absolutely essential to rebuilding trust which has been in historically short supply this past year.” CorD 69 / March 2010 23

ECONOMY |

It was said that Greece was looking for money from China; others reported that Athens might extract itself from the common European currency, the euro; still others said that Germany and other EU countries were preparing a bailout package for Greece the debate. The international financial services industry is in turmoil as a result of the plan. Few bankers have responded to the ideas as calmly as Martin Blessing, the head of Germany’s Commerzbank, who told the Frankfurter Allgemeine Sonntagszeitung that “the basic idea is reasonable.” “We have seen over the last two years that the current system has flaws and we can not just return to normalcy.” At the beginning of the summit, Deutsche Bank CEO Josef Ackermann had warned against Obama’s plan. “In the end, we could all be losers if we no longer have efficient markets,” he said.

‘NO IMPACT ON POLICY’

Bill Gates at the World Fconomic Forum in January in Davos, Switzerland

INDUSTRY IN TURMOIL It seems that 2010 will be the decisive year. As well as showing whether the recovery is sustainable, this will also be the year when the international community finally puts concrete proposals ont the table regarding the implementation of the G-20’s much-discussed goals. Barack Obama’s recent proposals to separate traditional commercial and investment banks and to stop banks from engaging in so-called proprietary trading with their own money, have added plenty of fuel to

Josef Ackermann, Chairman of the Management Board and the Group Executive Committee, Deutsche Bank AG and other financial representatives met in Davos behind closed doors with politicians such as French Finance Minister Christine Lagarde, her British counterpart Alistair Darling, EU Economic Affairs Commissioner Joaquin Almunia, ECB President Jean-Claude Trichet and IMF Managing Director Dominique Strauss-Kahn. However, it appears that little agreement was reached. American Congressman Barney Frank, who heads the House Financial Services Committee, said after the meeting that the Obama administration was determined to push through “tough, sensible regulation.” “It is very important to tell the banks and hedge funds what we will do,” he added. Asked about the reaction from the financial world, Frank answered: “It doesn’t concern me. That has no impact on policy.” However, Rogoff is skeptical about the degree to which Obama’s proposals can be put into practice or if they can serve as an example for the rest of the world. “Obama has already made many good speeches,” he says. The question is whether he will obtain the necessary majorities to make his ideas reality.

ACCORDING TO PRELIMINARY RESULTS OF THE REPORT PRESENTED TO THE WORLD ECONOMIC FORUM IN DAVOS, SERBIA AND MONTENEGRO TOOK 29TH PLACE AMONG 163 COUNTRIES, IN ENVIRONMENTAL PERFORMANCE FOR THIS YEAR

SERBIA: PROBLEMATIC AREAS Corruption Political instability Access to finance Inefficient state bureaucracy

SERBIA:THE WORST PARAMETERS 14.3 * 12.5 11.7 11.5

NOTE: REPORT World Economic Forum (* Out of 30)

Burden of government regulations 129th Efficiency of legal framework to resolve disputes 124th Quality of infrastructure 122nd Dominance on the Market 131st Efficiency of anti-monopoly policy 130th Sophistication of buyers 111th NOTE: Serbian Position on the list of 133 countries

24 CorD 69 / March 2010

REGION: BUSINESS CONDITIONS Macedonia Slovenia Montenegro Albania Serbia Croatia Bosnia & Herzegovina NOTE: Out of 183 countries

32nd 53rd 71st 82nd 88th 103rd 116th

NO COMMENT Of course I am in favour of EU enlargement. I do support the membership aspirations of the West Balkan countries. At the same time, I am against setting any deadlines, since that is counterproductive. We should all be clear about the rules of the game, everybody should be treated fairly by European institutions and member states, and everybody should focus on fulfilling obligations. If we were to discuss dates, this would not be helpful at all.” Miroslav Laicak, Slovakian Foreign Ninister (Večernje Novosti)

If the government doesn’t view its role as simply governing but rather as managing a public function in line with the population and economy’s best interests, then improving transparency is not absurd, but rather a point of interest.” Rodoljub Šabić, Public Information Commissioner (Ekonom:east)

The law says that the president’s cabinet chief, the prime minister’s cabinet chief, his deputy, and deputy prime minister all have to report what they own. However, this does not apply to the interior minister’s cabinet chief.” Radomir Čupić, head of the AntiCorruption Agency Committee

Many of you laughed at me when I said I carried a gun. And today I did not bring a gun. Is it really a sin to take the life of such a hooligan? Is it? He attempted to take my life. He publicly attacked me, unscrupulously from behind, with the police only two metres away. So, we have to defend ourselves. We have to get organized and stage a protest, as a party.” Velimir Ilić, head of the Nova Srbija political party, after he was attacked in downtown Belgrade (The Blic)

It is not true that I want to be a protected witness. I totally oppose drugs. Maybe the Privatization Agency could be a protected witness in this case.” “Controversial businessman”, Mile Jerković, talking about becoming a protected witness in a trial against drug dealer Radovan Šarić (The Večernje Novosti)

“If I were Šarić, and if I had that kind of money, I would finance all political parties, both in government and opposition, because that’s the only reliable protection.” Ministry of Justice State Secretary Slobodan Homen in B92 TV’s Impression of the Week talk show

Serbian President Boris Tadić does not look favourably upon this flat, the residence of the Serbian ambassador to UNESCO, being rented for €7,000 if that price is unrealistic. He expects the lease agreement to be reviewed,” the President’s cabinet said. The government, however, claims that that the decision to rent this flat at such an exorbitant price was made by the Foreign Ministry. Our source in the government says that both the President and Prime Minister had nothing to do with this decision. (Blic) Tomić is a person of high integrity and possesses all qualifications needed for this job. She is one of the best ambassadors of Serbia abroad, and many say she is the best ambassador. This is not a flat that Zorica Tomić only lives in, but rather the official residence of the Serbian ambassador to UNESCO. This official residence is not only for living, but many important activities are also carried out there, activities that need adequate space. This flat was chosen in accordance with all relevant regulation and laws, and has been selected by the Foreign Ministry’s Commission. Procedures have been adhered to, and the transaction of funds was carried out in line with budget rules.” Serbian Foreign Minister Vuk Jeremić, commenting the amount paid in rent for the flat in Paris where the Serbian ambassador to UNESCO, Zorica Tomić, currently lives

We should investigate whether that qualifies as a criminal offense and ascertain whether the media reports can be backed up with truthful information. Anyhow, no individual is above the police. I already gave orders for these media speculations to be investigated. I have said on many occasions that whoever is engaged in criminal activities is not allowed to work in the Ministry of the Interior, regardless of their position” Interior Minister Ivica Dačić, commenting on media reports that his cabinet chief is involved with the Šarić family. (The Večernje Novosti)

In determining the penalty, the Commission consulted the Rule Book and available measures, and it also considered both the aggravating and attenuating circumstances in this case. Branislava is a good employee and I am truly sorry that this has happened.” Serbian Parliament Speaker Slavica ĐukićDejanović, commenting on her cabinet chief, Branislava Parezanović, who has been penalized for unauthorized use of a government vehicle. Parezanović was stripped of the right to promotion for the next four years

The interest expressed by several western embassies in appointing certain persons to functions in the Eparchy is reprehensible meddling of worldly powers into the life of the Church. We do hope that the Serbian Orthodox Church will express its disagreement with such interest.” Bishop Artemije wrote in the Raško Prizrenska Eparchy’s press release, following accusations regarding his personal secretary, Simeon Vilovski. (Ekonom:east)

CorD 69 / March 2010 25

LEADERS

MAYBE YES, MAYBE NO! Drafting the new Press Law, which has begun in the Serbian Ministry of Trade and Services, has already aroused the interest of the Serbian media. No wonder, bearing in mind the fact that the entire media industry in Serbia is undergoing a great crisis, while advertising revenue often exceeds 80% of the entire annual revenue of Serbian newspapers. When it comes to TV and the web, advertising revenue quite often represents 100% of their overall income. The Serbian advertising market is quite a small one, with advertising prices being very low. State authorities, unlike those in other countries, have failed to provide any financial assistance to the media during the crisis, so it is quite normal that at the beginning of the writing of the draft law on advertising, the issue of financing RTS, a public service television that absorbs a chunk of the market share, popped up. We have tried to get a statement about this topic from newly-appointed President of Radio and Television of Serbia’s Programming Council Dragoljub Mićunović, but he declined. Hence, CorD is putting following question to the participants of our survey:

“Should national television, in addition to revenue generated through subscription, earn money from broadcasting advertisements?” Jelena Drakulić, Director of Ringier d.o.o, Serbia TO AVERT MISUSE AND PRESSURE Rendering a public service while acting as commercial television involves two incompatible things. National television’s main source of financing should be through subscriptions, and money generated this way should be primarily directed towards science, educational, and cultural programmes. National television could generate additional revenue by selling these, high-quality programmes to commercial TV stations. In this way, possible misuse and pressure exerted by commercial advertisers on national television would be averted, while the required programme quality that viewers pay for will be maintained.

“Rendering a public service while acting as commercial television involves two incompatible things. ” Andrew Glass, Director of the British Council, Serbia WHAT’S THE SITUATION IN THE UK? BBC domestic services don’t have advertising because of the universal licence fee. BBC World TV has always been commercial and has always run on subscriptions and advertising (streaming has allowed them to develop ways of broadcasting news bulletins with a news agenda slightly more swayed to the region receiving it and it places relevant adverts for those markets). BBC World Service radio doesn’t carry ads because it’s paid for like the BC from a Foreign Office grant. BBC News Online uses IP addresses to recognise where you are in the world. If you’re in the UK, you don’t get ads or sponsored links, 26 CorD 69 / March 2010

but internationally you do. This was to get around the argument that the licence fee was being used to serve overseas audiences (News Online’s top audiences are UK, US, Canada).

“An overwhelming majority, 77% think BBC is an institution people should be proud of. ” There are often tense relationships between the BBC and other commercial channels over competition and ‘unfair advantage’ allegations about the licence fee (especially because of the number of websites the BBC runs compared to others and BBC research and development in the technology field). There have always been questions raised around BBC’s Digital Channels, BBC 3 and 4, because not everyone can access them (although virtually everyone has Freeview now so this is less of an issue). Every time BBC faces cuts, these newer channels tend to be in the firing line. There are arguments around the BBC i-player too….. and whether you should pay to access it overseas and even in the UK if you don’t have a TV licence. The landscape has changed so much over the last two to three decades. It was ‘simpler’ when you just had BBC and ITV! Channel 4 has a public service remit as well but no licence fee (it funds itself through on-air advertising and other commercial activities). There’s often talk of BBC and C4 doing more together A Guardian/ICM poll 4 reported in the Guardian of 4 September 2009 stated: An overwhelming majority, 77%,, think BBC is an institution people should be proud of – up from 68% in an equivalent ICM poll carried out five years ago. Most (63%), also think it provides good value for money – up from 59% in 2004. Most people also question the continued need for the licence fee, although support for it has risen over the last five years. Asked to pick from a range of ways of funding BBC, including the licence fee, a subscription service and selling advertising, more people back the licence fee than any alternative.

Ivan Stankovic, President of Communis Agency TV MARKET - €95 MILLION IN 2009 The question whether national television has the right to earn money from advertising as well as from subscriptions is, like many other issues in Serbia, a quite controversial one. There are two aspects to consider here – ideal and realistic. If we go by the first aspect, the ideal one, the answer would be ’No’. There is very straightforward logic behind this. National television is obligated to perform certain public functions, to cover certain areas that commercial TV stations cannot or don’t want to cover. Consequently, that is why the state is financing it and in return, the state holds national television accountable. Bearing this mind, why would national television need marketing in the first place? Taking into account the realistic aspect of this issue, the answer would be ‘Yes’. In this case, we need to consider the realistic situation as well. First, the state is not wealthy enough to provide financing for (yet another) public service, since we already have so many problems with the health system, education, poverty, and similar. Second, it seems that the state is having trouble thinking what principal interests national television should endorse. Considering the experiences so far, I am afraid that its main role would be to serve the ruling party and employ people recommended by that very same party, disregarding professionals who are actually best suited for the job (which is, currently, one of the biggest Serbian downfalls). In this way, speaking from a journalist’s point of view, national television would lose its independence. And we all remember what ‘Bastille’ television was like.

“Taking into account the realistic aspect of this issue, the answer would be ‘Yes’ ” There is also an ethical issue with spending the money earned from advertising. According to some estimates, the TV advertising market in Serbia was worth close to €95 million last year, with national television taking over €25 million. If they were to stop generating money from advertising, this would mean that the money would spill over to other commercial privatelyowned TV stations. Who would then be able to withstand accusations that such a decision was made because of reasons other than ethical ones? Or maybe I am a bit crazy and naive? When I remember how many trains went by (Remember when the state bought those run-down Swedish trains, among a slew of other silly things?) and nobody raised an eyebrow. So, the answer to the question whether national television has the right to earn money from advertising in addition to charging subscription in line with the current situation that we find ourselves in is definitely MAYBE. CorD 69 / March 2010 27

LEADERS Robert Čoban, C.E.O. of Color Press Group REALITY SHOWS ARE NOT BEFITTING NATIONAL TELEVISION If the term ‘commercial programmes’ entails music shows, Hollywood movies, domestic series, and similar, then I agree that such programmes should be broadcast on RTS, Radio and Television of Serbia. However, reality shows are not befitting national television. It is a real shame that every single TV station granted national frequency by the Republic Broadcasting Agency (RRA), whether commercial or RTS, has entirely deviated from what it stated in its national frequency application, although all stations were obligated by the RRA to adhere to their applications.

“If the print media were to reduce advertising prices, this would make them totally unprofitable,” There is another issue, that of the ‘dumping pricing’ policy when it comes to TV advertising (in the case of RTS and commercial TV stations), and not adhering to the advertising time limit, which drastically erodes the advertising market while creating even more problems for the press which has now become too expensive to advertise in. If the print media were to reduce advertising prices, this would make them totally unprofitable, bearing in mind an overall drop in circulation figures and high production costs. Jelena Kolo, Head of PR in the Republic Broadcasting Agency (RRA) UP TO NATIONAL TELEVISION TO DECIDE Financing a public broadcasting service is done in different ways – through TV subscription and commercialization of some programmes, a concept which many countries are accustomed to. According to Article 80 of the Law on Broadcasting, radio and television subscription is paid in order to finance activities of the institutions within the public broadcasting service directed towards accomplishing general public interest.

“The Agency has no legal authority to deal with conceptual issues of financing national television or to draft laws that regulate this area” In order to finance other activities, the institutions within the public broadcasting service generate funds by producing and broadcasting advertisements, producing and selling audio-visual programmes (shows, films, series, audio media, and other), rendering other broadcasting services (like teletext), putting together concerts and other public events, and carrying out other activities stated in the Articles of Association, in accordance with relevant regulation. The Agency has no legal authority to deal with conceptual issues of financing national television or to draft laws that regulate this area. 28 CorD 69 / March 2010

APPOITMENTS H.E. Ms. Nengcha Lhouvum New Ambassador of India to the Republic of Serbia During her diplomatic career, she has held varied assignments at Indian Missions in Mexico City, Dhaka, Havana, and New York. At the Ministry of External Affairs in New Delhi, she has worked in different capacities in the departments of West Europe, Southeast Asia & the Pacific, and the Americas. Prior to her appointment as Ambassador to Serbia, she was Ambassador of India to Lebanon. Mrs. Lhouvum presented her Credentials on January 28, 2010. She is a recipient of the Prime Minister’s Award for Excellence in Public Administration for her work in evacuating Indian nationals from Beirut during the war in July-August 2006. She is married to Ambassador Gautam Mukhopadhaya, who is also a career diplomat of the Indian Foreign Service. They have two children – a daughter (21) and a son (18). Her hobbies include music, reading, and gardening. H.E.Mr. Samuel Valis- Akyianu New Ambassador of the Republic of Ghana to Serbia H.E. Samuel Valis- Akyianu (68) was born in Cape Coast in the Cenral Region of Ghana. He is a graduate in Fire Engineering and attended the Fire Service Technical College in Morton-inMarsh, Gloucesershire, in the UK. Ambassador Valis-Akyianu was the Chief Fire Officer of Ghana for eleven years and also former Ambassador of Ghana to the Czech Republic with accreditation to Hungary, Poland and Slovakia. He was chairman of the present government’s political party, the National Democratic Congress (NDC) and president of the Ghana Amateur Boxing Association and Vice President of the Ghana Handball Association. He is also a member of the Red Cross. He is a devout Christian and is married to Mrs. Love Valis-Akyianu with whom he has 8 children. Ambassador Valis- Akyianu is also accredited to Bulgaria, Romania, and Macedonia. H.E. Mr. Shpetim Caushi New Albanian Ambassador to Serbia Mr.Caushi was born 1946 in Tirana, Albania. He graduated from Faculty of Political and Legal Studies of the University of Tirana and has Master degree in Legal Studies. PhD in International Public Law (“Albanian diplomacy in the normalisation of relations with Germany”) His diplomatic career includes the heads of the Department for Western EU at the Albanian Foreign Ministry; Assistant director at the EU Directorate of the Foreign Ministry; Ambassador to Sweden; Ambassador to Germany... Mr Caushi spaks English, German, Russian, Italian Married, with two children.

CorD 69 / March 2010 29

REGION |

Bosnia and Herzegovina

Signaling Serbian referendum Bosnia and Herzegovina’s progress towards the EuroAtlantic integrations has been slow indeed. An attempt to expedite this process through changing the Constitution, i.e. making the state more functional, has failed.The Butmir negotiations also fell through, with the Serbian side being quite happy about the negotiations collapsing since, from the very beginning, its negotiating position was that the Dayton Peace Accord would be breached if the Constitution were amended By Vojislava VIGNJEVIĆ

Fifteen years after Serbia’s Slobodan Milosevic, Croatia’s Franjo Tudjman, and Bosnia’s Alija Izetbegovic (left to right) sign the Dayton peace agreement ending the war, Bosnia is still divided ethnically.

that its status be defined in the Bosnian Constitution. The opposition his is just one of the angles that demonstrate the com- that the Serbian referendum has been facing stems from the fear that plexity of the situation Bosnia and Herzegovina finds it- the referendum would jeopardize the so-called Bonn Powers that the self in. In the meantime, the situation became even more High Representative in Bosnia and Herzegovina has. These could be intricate, following the Banja Luka’s announcement annulled following the referendum. Although Belgrade has been quite reticent when it comes to the issue of a referendum in which citizens of the Republic of of the referendum and has not reSrpska are supposed to vote for acted to a heated debate caused or against the Dayton Accord. In the event that the referendum does by Dodik’s statement, Brussels Republic of Srpska’s Prime take place, the West could ask Serbia has done the opposite. EU forMinister Milorad Dodik said that eign ministers are fully backthe reason for scheduling the to provide more than just frequentlying the High Representative who referendum was to ensure that voiced his opinion against the the peace accord stayed intact. repeated statements about the country referendum in the Republic of However, the international combeing in favour of Bosnia and Herzegovina’s Srpska. Dodik, however, rejectmunity fears that the referendum ed Brussels’ stand, while sourcin the Republic of Srpska might sovereignty and political independence es close to the State Department lead to a referendum about the entity’s status in Bosnia and Herzegovina, i.e. its Constitution, which say that the international community believes that Belgrade authoriin turn could lead to the Republic of Srpska’s leaving the Federation ties will play the key role in the referendum since the U.S. believes that and Bosnia and Herzegovina disintegrating. During the Butmir ne- Belgrade officials can control Dodik. While the Federation of Bosnia and Herzegovina and Croatia have gotiations, Dodik hinted that the Republic of Srpska might request

30 CorD 69 / March 2010

In the event that the referendum does all smooth sailing in Banja Luka either, contrary to his expectations. Opposition parties take place, the West could ask Serbia to see the referendum as a carefully orchestrat- provide more than just frequently-repeated maneuver by the current prime minister, ed statements about the country being in which should result in solidifying his position, favour of Bosnia and Herzegovina’s sovas well as the position of his political party in ereignty and political independence, i.e. in favour of the Dayton Accord. Serbia will an election year. The international community has been be probably asked to deter the Republic keeping its eye on the events in Bosnia, and of Srpska’s prime minister from the idea swiftly reacting to the announcement of the of holding the referendum. Bearing this in Serbian referendum. U.S. ambassador in mind, Daniel Server from the WashingtonBosnia and Herzegovina Charles English said based Institute for Peace says that Belgrade that the Dayton Accord could not be the sub- officials told him that they would not like to ject of referendums or disputed in any way. see the Republic of Srpska as an independU.S. Deputy Assistant State Secretary for Europe and Euroasia Stewart Jones expressed the severe concern that the U.S. administration has about passing the law on referendum in the Republic of Srpska, especially about the entity’s going through with the referendum. Jones informed Igor Radojčić, president of the Republic of Srpska’s Parliament, about the U.S. stand during Radojčić’s official visit to Washington. It was no coincidence that following the news about the Republic of President Boris Tadić said that Serbia Srpska’s referendum a group of U.S. would reject any acts or referendum congressmen travelled to Sarajevo. that could result in the division of U.S. Senator and Republican Bosnia and Herzegovina. John McCain said that Bosnia and Herzegovina simply had to overcome its ethnic divisions and work on build- ent state. Server adds that the referendum in ing a country that would ultimately become a the Republic of Srpska would put Belgrade NATO and EU member. The U.S. congress- in a very awkward position, since it would men met with the Bosnian Presidency, rep- have to choose between supporting Serbs resentatives of Bosnian Ministry of Defence in the Republic of Srpska on one hand, and and the Bosnian army to discuss the current the country’s European future and fight for situation in the country. The U.S. delegation Kosovo on the other. In the end, the thought-provoking question of the extent to which Dodik’s The international community fears that the referendum behaviour is a result of Belgrade’s inin the Republic of Srpska might lead to a referendum fluence remains unanswered. The lack of Belgrade’s public denunciation of the about the entity’s status in Bosnia and Herzegovina, i.e. referendum could be interpreted as the Republic of Srpska’s PM having already its Constitution, which in turn could lead to the Republic been ’worked on’ behind the scenes or of Srpska’s leaving the Federation and Bosnia and that Belgrade is still contemplating which moves to make. It is quite clear Herzegovina disintegrating that if Belgrade fails to convince Dodik to give up on the referendum all togethresulted in twelve people being removed clearly expressed its support for Bosnia and Herzegovina’s sovereignty and integrity, add- er, it might spoil relations with Brussels from their positions, his enforcing 24 laws, and changing the Constitutions of both en- ing that the only prosperous way for the coun- and Washington. And this certainly cannot be the winning combination. tities. Dodik’s referendum initiative was not try was the Euro-Atlantic integration process. been highly critical of the referendum by saying that it could jeopardize the country’s stability, Belgrade is still not taking sides if we don’t take into account routine statements about Serbia’s continuing to endorse the Dayton Accord since the country is one of the Accord’s guarantors. Serbian President Boris Tadić said earlier that Serbia would reject any acts or referendum that could result in the division of Bosnia and Herzegovina. Retorting to the statements from Brussels, Dodik said in Banja Luka that he did not find anything disputable about the High Representative’s authority or mandate. The socalled Bonn Powers are not to most Bosnians’ liking, but the fact remains that Banja Luka was most vocal in protesting against these powers. Dodik’s statement that the High Representative imposes laws can be attributed to the fact that the High Representative devises interim measures when relevant political parties cannot agree among themselves. His measures remain in force as long as the Bosnian Presidency or Council of Ministers make no independent decision in line with the peace accord. There are a few other rights that Dodik finds unacceptable, especially those that pertain to the High Representative’s decisions concerning securing peace in Bosnia and Herzegovina and its entities and joint institutions. These decisions necessitate the Representative’s taking action against public officials who fail to show up at official meetings without a viable explanation or against persons thought to be breaching legal regulation stemming from the peace accord. The following is a practical example of this. At the end of his term in Bosnia and Herzegovina in May 2002, High Representative Wolgang Petrich made a total of 44 decisions, which

CorD 69 / March 2010 31

REGION |

HUNGARY

MACEDONIA

MOL COULD LOSE INA

NAME DISPUTE SHOULD BE RESOLVED S

www.banka.hr he new information concerning Podravka might bring about annulment of the agreement in which the Croatian Government let Hungarian MOL run Ina. If it is proven that MOL had influenced the granting of the EUR 34m loan to Podravka via OTP bank in order to gain a greater power in Ina, legally speaking, this is a criminal intent that could result with annulment of the agreement. OMV’s lobbyist Marijan Kostrencic says that it is a sad coincidence that the talks about the agreement between OTP and Podravka, and the talks about Ina were conducted simultaneously and warns that the matter should be investigated. He says the whole sale of Ina was not run well and nobody ever asked OMV what they thought about it. A corporate law expert believes that the contract on the takeover of Ina could be challenged on the grounds that MOL knew that it was acting against the Croatian positive regulation. He says that there was a series of illegal actions, from the fact that the stock exchange and the Croatian Financial Services Supervisory Agency (HANFA) were never informed that Ina’s shares were used as collateral to the fact that unauthorized persons were arranging the whole operation.

The takeover of Ina could be challenged on the grounds that MOL knew that it was acting against the Croatian positive regulation 32 CorD 69 / March 2010

peaking to the European Parliament Foreign Policy Committee, Spanish Foreign Minister Miguel Moratinos announced that he would soon visit Skopje. Athens and Skopje are close to settling the name row, Moratinos said, pointing out that the new Greek Government’s position on the matter is rather satisfactory. Taking MEPs questions, Moratinos said Spain’s EU Presidency was ready to do its best to that effect. “Both parties have been working under UN auspice, and at the moment it is better for them to talk with each other with the support of the world organization. If European intervention is to be needed, the Spanish Presidency is ready for that. For this purpose I have naturally decided to visit Skopje in the near future and reaffirm this position,” Moratinos said.

Meanwhile, the statewide poll conducted by Transparency-Zero Corruption with 400 respondents showed that 56 percent didn’t believe the row could be resolved within the next six months as the EU hopes, while 31 percent remained optimistic, and 12 percent had no answer. Skopje declared independence from the former Yugoslavia in 1991 and took the name of Macedonia. Greece insisted the name implied territorial claims to a Greek

province also called Macedonia. According to the poll, about 50 percent of respondents said changing the country’s name would jeopardize national identity, while 44 percent held the opposite opinion. The poll again confirmed the disparity of views on the name issue between the two largest ethnic communities in Macedonia. While most ethnic Macedonians feared the country would lose its identity if it was required to give up its official name, ethnic Albanians, who make up a quarter of the country’s two million population, tended to agree with the name change if it meant quick NATO and EU entry. Greece has blocked Macedonia’s efforts to join the NATO defense alliance and the European Union because of the dispute. The survey also revealed that the vast majority didn’t know exactly what Greece demanded in the way of name change. Slagjana Taseva, head of TransparencyZero Corruption, said many people lacked information about the negotiations and had no idea how far the country’s leaders would go in making compromises According to Dnevnik, the Macedonian daily, Macedonia and Greece will not resolve the name issue by June. However, it should be done at the NATO Summit scheduled for November in Lisbon. Few people share the optimism of Spanish Foreign Minister Miguel Ángel Moratinos Cuyaubé who has expressed his conviction the name dispute will be resolved soon. According to Moratinos, Athens and Skopje are close to the resolution of the name issue.

Prime Minister George Papandreou accepted an invitation to meet with his Macedonian counterpart, Nikola Gruevski. The date will be determined and require significant preparation. Papandreou said he would meet Gruevski in Macedonia or any mutually acceptable location

ALBANIA

ROW OVER MACDONIAN LANGUAGE IN ALBANIA

hile Albanian children in Macedonia study all of their subjects in Albanian (and refuse to learn Macedonian), Macedonian children in Albania aren’t allowed to study their native Macedonian language. Sali Berisha, Albania’s Prime Minister, has publicly stated he would make sure Macedonian children study their native language, but so far no Albanian institution answered our questions why the Ministry of Education ordered teachers to stop teaching the Macedonian language. The only exception came from the OSCE and the Council of Europe in Tirana, who said they would investigate why Macedonian was banned in Golo Brdo. For the most part, the Albanian media has ignored the case. “The situation is quite different when it comes to ‘problems’ of Albanians in Macedonia. The media in Tirana do not even consider printing our press releases, let alone

anything else,” says Vasil Sterjovski, member of the NGO “Ilinden,” which holds free courses in Macedonian for about 200 children in Golo Brdo. Council members of Trebište and Golo Brdo came upon a document sent by the regional director of the Ministry of Education, which requires local authorities to take measures against those who hold courses in the Macedonian language. This document was sent by the editorial board of “Nova Makedonija” to the Ministry of Education of Albania, the Ministry of European Integration whose spokeswoman Majlinda Bregu is also the spokesperson for the Government, and the Embassy of Albania in Skopje. All of the above institutions failed to respond, although Macedonian journalists were informed they would receive a response. No response from the author of the scandalous letter, Miranda Kurti. However, some reaction is expected from the OSCE office in Tirana. Greece’s Joanna Karapataki, press officer of the OSCE in Tirana, sought to review the disputed document. The Macedonian Foreign Ministry is following the situation. “No comment so far. We will see how the situation develops, then we will decide how to act,” says Peter Chulev, a spokesman for the Foreign Ministry. Macedonians in Albania believe that the Albanian government wants to ban the Macedonian language in Golo Brdo and to the north in Gora because of pressures from the European Union that Albania put a graph on the 2011 census for ethnic minorities.

Sali Berisha, Albania’s Prime Minister, has publicly stated that he would make sure Macedonian children study their native language

CROATIA

GDP TO DROP 1.1% Z

AGREB - Five out of six chief economists in Croatia expect further deceleration of country’s GDP in 2010, with the average drop set at 1.1%, the survey conducted by the Croatian Employers’ Association (HUP) shows.

Personal consumption is seen to drop by 1.2%, gross investments by 4.2% and export by 1.1%. Personal consumption is seen to drop by 1.2%, gross investments by 4.2% and export by 1.1%. Regarding unemployment, currently at 10.6%, is forecasted to reach 12.5% in the worst scenario, while salaries should be cut by an average of 1%. Deflation is nowhere in sight, the HUB says, with annual inflation to range around 2.7%. 2010 budget deficit will exceed the planned figure and should comprise for 3.8% of country’s GDP.

At the same time, foreign debt is expected to equal the annual GDP due to forecasted contraction in economic activity.

CorD 69 / March 2010 33

REGION |

MONTENEGRO

Italy is supportive of Montenegro Rome (The Repubblica) – Montenegrin Prime Minister, Milo Đukanović made an ofﬁcial visit to Italy on February 6th. Đukanović was met by Italian Prime Minister Silvio Berlusconi with the highest state honours and a ceremony reserved only for a chief of state or a head of government.This was the ﬁrst visit of a Montenegrin Prime Minister to Italy in the past 10 years. On the occasion, Đukanović and Berlusconi discussed the bilateral relations between the two countries and the situation in the region e undertook to support Montenegro’s bid for the EU and we will do our best in helping the country along this road,” Berlusconi said at a press conference after meeting with Đukanović. “There are quite good chances of the two sides jointly implementing certain projects, primarily in the energy, toursism, and retail sectors.” Đukanović said that Italy was naturally inclined towards Montenegro as its partner and outlined that he expected Rome to be supportive of all West Balkan countries on their way to joining the EU. The Montenegrin prime minister added that there was great cooperation potential particularly in transport, mentioning the Port of Bar and Montenegrin Railway. Đukanović also thanked Berlusconi and the Italian government on the support given and their past and future assistance both to Montenegro and the countries in the region when it comes to their EU aspirations. The First Secretary of the Montenegrin Embassy in Rome, Ksenija Popović, said for The Repubblica daily that Đukanović has already extended an invitation to the Italian PM to visit Montenegro, which was enthusiastically met by Berlusconi. “We discussed the situation in the region, Montenegro’s road towards the EU, and the collaboration in transport and energy,” Popović said. She added that Berlusconi informed the Montenegrin state delegation of the interest expressed by Italian inves-

34 CorD 69 / March 2010

tors for the Port of Bar and the Montenegrin Railway. “Through the Port of Bar and the railway, Montenegro can serve as a natural bridge that links Italy to Central Europe,” Popović added. The First Secretary also announced that Italian investors interested in investing in Montenegro’s tourism would come to Montenegro soon. The meeting between the two prime ministers was widely covered by the Italian media. According to Italian and Montenegrin media alike, Đukanović’s official visit to Rome held great significance for the restoration of political, economic, and cultural ties between the two states.

This was the first time that Fini had met with Đukanović. After the introduction, Fini said that now he understands why is he (Đukanovic) the absolute leader in his country The meeting lasted for an hour and a half, which is quite rare, since the original plan was for the two prime ministers to meet for half an hour. Đukanović is the first prime minister from a former Yugoslav republic to meet with Berlusconi since his appointment as prime minister. Montenegrin and Italian foreign ministers Milan Roćen

and Franco Frattini respectively also participated in the meeting. Gianfranco Fini, head of the Chamber of Deputies, the lower house of the Italian Parliament, promised Italy’s full support for Montenegro on the country’s path towards Euro-Atlantic integrations. “Montenegro can be assured that Italy will provide its full support in the EuroAtlantic integration,” Fini said, following his meeting with Đukanović. This was the first time that Fini had met with Đukanović. After the introduction, Fini said that now he understands why is he (Đukanovic) the absolute leader in his country.” “I was pleasantly surprised by the clarity demonstrated by your prime minister when he said that Montenegro aspires more and more to truly be a part of Europe, not because of the European market, but because of values that the EU endorses,” Gianfranco Fini said. Italian partners also made a promise to Đukanović that Italy would have ratified the Stabilization and Association Agreement between the EU and Montenegro by October of this year. At the press conference, no one discussed Đukanović’s trip to Bari in March where he gave a deposition regarding accusations by the Italian prosecution office that he had been involved in cigarette smuggling. According to available information, the so-called ‘Bari case’ is now archived, pending official confirmation by the Bari prosecution office.

THE FIXED TELECOMMUNICATION MARKET IN SERBIA

ENTERING COMPETITION PHASE Total revenues from telecommunications services in the Republic of Serbia in 2007 amounted to €1.47 billion and €1.61 billion in 2008, whereas the telecommunications’ share in the total gross domestic product (GDP) increased from 4.7% in 2007 to 4.87% in 2008. otal revenues from fixed telephony traffic services in Republic of Serbia in 2008 amounted to €413 million, about 2% higher as compared with €414.1 million in the previous year. However, what was worrisome was the fact that the investments made in the fixed telephony in 2008 amounted to €64.7 million, a decrease of 44% in respect to 2007. A decrease in investments in the fixed networks affects the development of all telecommunications, since fixed networks may be used for transferring other services as well, such as mobile services and Internet. The number of unmet requests for new fixed-line connections, which amounts to over 150 thousand, poses an additional problem. The Internet market, in particular broadband Internet, is a rather important aspect of Serbian society too. According to various studies on the relation between the broadband Internet and GDP carried out in recent years worldwide, the increase in the number of broadband connections has a direct impact on the increase in GDP. Broadband telecommunications represent the basis for the provision of services which contribute to societal development because they increase the availability of public administration services for the population, influence learning processes, provide faster and quality-enhanced services in the field of medicine, facilitate trade and e-commerce, and encourage the development of rural and distant areas. The Internet can also contribute to CO2 emission control and positively address issues related to climate change by enabling people to work from their homes and thereby decrease the volume of traffic, which is, once again, an important prospect for a developing country. From 2005 on, there have been significant changes in the Internet market in the Republic of Serbia, in particular in the structure of the end-users’ Internet connections and the amount of revenues generated by Internet services. Namely, in 2008, the number of broadband

connections exceeded that of dial-up for the first time, although if the access is observed by different technologies, dial-up is still the most common technology. However, the decrease in dial-up connections over the past years indicates the growing needs of the users for easily accessible contents of a higher quality, offered by broadband access. This is further confirmed by the fact that the number of broadband connections in Serbia reached 490,000 in 2008 (55% of the total number of Internet connections), twice as many as in 2007. The most common broadband access is ADSL, and the whole infrastructure for the access to end-user is in the ownership of Telekom Srbija. In addition to technologies mentioned above, Internet connection can be enabled through cable modem or network developed and built by cable operators, through wireless, using the licensefree frequency bands around 2.4 GHz and 5.8 GHz, through UMTS (3G) mobile operator networks, or through CDMA technology. However, if 3G mobile network subscribers are excluded from the total number of broadband subscribers, broadband penetration amounts to 6.57%, which is still below average in both the Southeast Europe of 7.74%, and in the European Union (EU27) of 22.9%. Commitment of the Republic of Serbia to become a member of the European Union directs it to adhering to reform agenda called ’Employment, Economic Reform, and Social Cohesion – towards a Europe of Innovation and Knowledge’, which defines three key elements: 1. Creating a Single European Information Space by encouraging the development of broadband access and the development of new multimedia contents; 2. Strengthening innovation and investment in the further development of information and communication technologies; 3. Increasing availability and possibility of using information- communication technologies in all regions of the European Union.

The strategy for the development of broadband access in Serbia by 2012 defines the strategic aim of achieving a broadband penetration of at least 20% of population, or 1,200,000 subscribers Strategy for the development of broadband access in the Republic of Serbia by 2012 defines the strategic aim to be realized by year 2012 - achieving a broadband penetration (bitrates not lower than 4Mb/s for fixed networks and 512kb/s for mobile networks) of at least 20% of population, or 1,200,000 subscribers. Bearing in mind the existence of only one operator in the fixed communications market, a decrease in investments in networks and services, as well as the digital divide between urban and rural areas, the procedure for the issuance of the second license for public fixed telecommunications networks and services was accelerated. Only one company, Telenor of Norway, had submitted a valid offer in time and offered €1,050,000.00 for the one-off second fixed operator license issuance fee. On January 22, 2010, RATEL made a decision to grant the license to Telenor, marking the end of the bidding procedure. The license will be issued for a period of ten years with possibility of renewal for an additional ten years. The new operator has to launch commercial services within one year from the day the license was granted. Therefore, Serbian fixed communications are entering the competition phase. Services which will be offered to end-users should be packages (voice, date, video, mobile) which require broadband access. Market competition launched by the new entrant for end-users will result in better quality of services and the possibility of carrier selection. Ph.D.E.E. Milan Janković is the Executive Director of the Republic Telecommunication Agency CorD 69 / March 2010 35

INTERVIEW |

IAIN FORREST, GENERAL MANAGER DUFRY SERBIA

INTERNATIONAL BUSINESS UNDER SERBIAN LAWS Both optimistic and cautious, Iain Forrest believes that Serbia will understand how international business standards will help the country’s development. As a leader in international duty free retail, Dufry has a very simple and clear viewpoint – a passenger is only interested in things that make life easier By Veljko JOVANOVIC Photo D. CVETANOVIC fter doing business in Russia and Kosovo, Iain has a picture of a similar environment in Belgrade. The Balkans still have huge potential, but they need to change their legislation and way of thinking.

company is a big market player and, I think, it is the third largest operator in travel retail industry. It main function is running travel retail shops and dealing with tax-free items, so we are operating duty-free shops around the world, cruise ships, and also train stations in Italy.

What exactly are the main business objectives of DUFRY, as this kind of company has become well known in Serbia? Dufry is a global travel retail operator. It operates in 41 different countries in the world. It is represented on nearly every continent, with the exception of Australia. It has over one thousand shops worldwide. The

What is specific about duty free shops and tax free businesses? It is a great business to be in. We hold a privileged position all over the world as against other general retailers. To be able to operate on a tax – free market is a great advantage, as well as to deal with excise goods. We work within specific airport zones, i.e. the terminals. We do business in transit

36 CorD 69 / March 2010

zones that are exempt of local customs and taxes. This is a multi-billion business globally, and a very profitable one too. But you have to pay high rates to be in this position. You have specific clients who are generally ready and willing to travel, no matter if they are going on a holiday or on business or to see their loved ones. They usually want to spend money. You are selling them attractive products, designer products from the top end market, at attractive prices. Of course, all the goods come with guaranteed 100% quality, because everything comes directly from the manufacturers. So it is a great situation to be in, and in majority of the airports, we have only one or two competitors. You don’t have a High Street or a

shopping center to compete against. What triggered Dufry to come to Serbia that has fewer than 2.5 million passengers? Belgrade, as well as the former Yugoslavia, was always on the company’s radar. The key markets of Europe and northern and southern America have always been traditionally strong. Business flourishes on developing markets, and the Balkans area was specifically targeted as a new market. Everybody talks about the BRIC countries Brazil, Russia, India, and China, and we are represented on all of these markets now. No one thinks about the small ones. The world is actually shrinking in the ability to generate new business, so you always have to go down and see where the developing markets are. The Balkans always had traditionally strong trading countries. And the fact that the former Yugoslavia had the most valued passport in the world at one time meant a lot. You could travel both east and west without restrictions. In Milosevic’s times, the country shut down and duty free shops were abolished following his departure from power. They were closed I think because they were abused by several companies that were set up at that time. I also think that the Balkans was somewhat of a black hole back

similar to other eastern European countries. This is a very lucrative business to get into and I’m not surprised by the way business is done here. What is interesting is to see the way it has been growing and changing for the better. It is becoming much more transparent. The business has to go that way for foreign companies to come in, because if there is no transparency in business, you don’t want to invest. As the country adjusts to certain European criteria, companies have to adjust themselves to the country they are coming to. What is so specific about Serbia? What’s specific about Serbia? It has certain rules that I would call an “old school,” a very old system. It is still very restrictive if you want to operate as a normal European company would do. It is very unusual for a company, for instance, to pay income tax on salaries of its employees. In western countries, an individual is responsible for paying his own taxes. That is very restrictive for us and very expensive. That is one thing that we see as abnormal. The other thing is trying to change the way the authorities think, particularly in terms of doing business. Duty free shops had been abolished here and later reintroduced in 2005, but the legislation still hasn’t changed. We are dealing with the old

We also have a fantastic working relationship with customs officials.They are very helpful.The legislation is changing in direction of the European one which certainly reduces administration then, as far as smuggled goods transiting through Montenegro, Albania, and Serbia. This was a very suspicious area. When the power changed, the new government probably made the right decision to close duty free shops. I think that they were prompted by the EU laws because the whole business was getting out of hand. Upon your arrival, were you surprised by the way business was done here in Serbia? No, because for the last thirteen years I’ve predominately worked in Eastern Europe, namely in Russia, the Ukraine, and Uzbekistan, and before I came to Belgrade, I was in Kosovo for two and a half years. Serbia is not new for me because it is quite

legislation which isn’t conducive to the way modern duty free business is operated. That is a big obstacle for us since we want to do business just like in any other part of the world. We are the only duty free shop in the world that has to apply excise stamps on our tobacco goods, the only one in the world! This is a major problem for us since it is not only an administrative problem but it is ex-

There is still miscommunication between the departments, which is frustrating for us pensive as well, because we have to provide guarantees to the Ministry of Finance. Also, suppliers themselves find it very expensive to stop their production line so they can produce an excise stamp for Serbia. Certain companies won’t produce for Dufry because of that restriction. For instance, we are not able to sell Philip Morris products in our shops because it is too expensive for them to stop production lines just to make a relatively small quantity of cigarettes for duty free shops in Belgrade. In which way do passengers at Nikola Tesla Airport differ from those at other main European and world airports? First, they spend a lot of money here. They usually go for more expensive luxury items, like Breitling watches, expensive cognacs, and high-end fashion and this is good for us. They are very similar to the Russians and Montenegrins. Serbs are among the top three spenders in our shops.

Belgrade, as well as the former Yugoslavia, was always on the company’s radar. The key markets of Europe in additional to northern and southern America have always been traditionally strong CorD 69 / March 2010 37

INTERVIEW |

As a company, you can’t work without a functional airport. What are the things like at Nikola Tesla Airport at the moment? The first few years here were very turbulent for Dufry, with various things going on. I can’t say if they were politically driven or not, I really don’t know. Since 2008, we have different people managing the airport and we are establishing a really good relation with them. This is very important for us because without a good relationship with the airport management, we are stuck. We must share a common interest and a common goal and we believe that we are on that path now. However, it is not only the airport that we have to have good relationship with. There is also the Ministry of Finance. We also have a fantastic working relationship with customs officials. They are very helpful. The legislation is changing in direction of the European one which certainly reduces administration. The Ministry of Health is also very important for us because they are the ones who could be instrumental in changing the legislation in a way that will allow us to sell cigarettes with warning messages in English, which is the international standard.

you just have to change the legislation. With regard to using foreign currency, you can’t change your money after passport control, for example. Quite a few Serbs change their money before they travel and if they want to pay for their coffee in euros, they simply cannot do that. They don’t understand why that is so. Relevant authorities should change that in order to make the whole travel experience a more enjoyable one. Quite a few things happened that should make the airport companies happy, and those are visa liberation, the open skies agreement, and low-cost airlines coming to Serbia. In which way did that influence Dufry? Without passengers and travelers, we have no business. We can have the best-looking shops with all the best products inside, but if there is nobody to buy them we are nothing. The passenger is crucial to us. We are trying to give the best customer experience, and where possible, the best prices

Some things are obviously moving forward, but what obstacles are you facing in Serbia? There are still some problems because sometimes the left hand does not understand what the right hand is doing. You have one part of the Ministry of Health saying yes to warning messages in English language because goods are not for sale on the territory of Serbia, and you have the other part also saying No to the request for exemption for sanitary checks on tobacco products despite the product not being offered for sales on the territory of Serbia. There is still miscommunication between the departments, which is frustrating for us. We need to know who the person we have to talk to is. Passengers are not interested in legislation. They are interested in what makes the life easier, like lifting visa restrictions, which is, 38 CorD 69 / March 2010

Have you been thinking about becoming operational at other airports, like Niš? One of the first things I did when I came to Serbia was to visit Niš airport. I was impressed by what I saw. The people there are certainly committed to developing the airport further. The Civil Aviation Directorate ought to help them. Serbia needs a second airport for sure and not only because the main one is closed because of fog, for instance. Niš is definitely interesting to us. At the moment, very few international passengers go there, and we need that kind of passengers. Another thing that we are looking to do is to try to set up a diplomatic sales business. Belgrade has a huge number of diplomatic residents. If we can offer a specific retail environment to diplomats, this can be very encouraging. We would like to open a diplomatic warehouse where diplomats could come to purchase various goods.

Serbia needs a second airport for sure and not only because the main one is closed because of fog, for instance. Niš is definitely interesting to us. I have to say, fantastic. However there are still issues like our customers being allowed to use foreign currency in our shops, after passport control, but coffee shops and restaurants are not allowed to do that and the passenger is baffled as to why this is. Why is it that he can pay for a perfume he bought in euros, but cannot do the same when buying a cup a coffee? Those are just some of the abnormalities that we are trying to resolve with the Ministry of Finance. These things are allowed at most international airports. Do you think that this will change for the better soon? I am sure it can be changed very quickly;

| INTERVIEW

Par Eriksson, Project Manager of International Aviation Projects, Swedavia

PROFESSIONAL CONDUCT RUNS BUSINESS In this issue CorD is talking to Par Eriksson, Swedavia International Aviation Project Manager, who has been with the company for twelve years and has worked in some ﬁfteen different countries, many of which are located in Eastern Europe, as well as in Russia, Africa, and Asia. Par Eriksson has been engaged in most of the projects implemented in these countries and ﬁnanced by organizations from developed countries, i.e. Swedish Development Agency and the European Commission (EC) to any destination outside the EU should be as safe as traveling within EU.

By Tatjana OSTOJIC e are working quite a lot with government bodies in different countries, assisting them in developing ground aviation sector. We don’t deal with airlines that much. It is more about establishing a legal basis and administrative organizational matters. Our job is to work on legalizing subjects, getting the sector in order, and raising the professional competence of the staff involved in order making the sector efficient and safe. After all, this is the main purpose of the aviation business wherever you are. Aviation has to be efficient and it must be safe. When I say safe, I also mean secure.

You arrived in Serbia eight months ago

and so far have vast knowledge of our aviation business specifics. What would be your global view? As far as I can see, the aviation sector and aviation business in Serbia is as old as aviation itself, over one hundred years, and is not bad at all. Our objectives here are to implement EU standards through projects financed by the EC. The aim is to implement in Serbia the same rules and standards we have within the EU. These projects should equalize the safety standards and technical level between EU countries and surrounding countries. Our consultancy includes various supports to help establishing flights without interference, whether technical or professional. Safety is most important for the EU and the Union wants to make sure that people traveling from Europe

So, what would be your first impression? The main problem seems to be separating political and professional issues. The aviation business is all about pure professionalism. Being a pilot or being a traffic controller means making sure that everything functions on a professional basis - safety, security, everything, and everything has to be based on many guides and training sessions. We are aware that the aviation industry cannot function on its own. There has to be a good, efficient connection with politicians because politics steer us, providing guidelines for society’s development. However, the cornerstone of everything in the aviation industry is to devise an appropriate strategy which will not interfere with operational performance. Judging from my eight-month experience here, I can say that Serbia would benefit immensely from working more on the aviation industry. What would you underline? First of all, the entire global aviation industry is guided and steered by the web of instructions and regulations coming from the international supervisory organization called the International Civil Aviation Organization, which is actually a UN organization. Most countries are members of that organization. If you are a member, you have to make sure that you fulfill at least the basic prerequisites which are accepted around the world. I cannot say that Serbia differs from any other place where I used to work. However, comparing Serbian CorD 69 / March 2010 39

INTERVIEW |

Left to right: Dr. Branko Lucovnik, Team Leader, Predrag Vujovic Former JAT MD and Par Eriksson talking to our editor aviation with Sweden’s, I would say the main difference is not the financial side, but the completely unclear distinction between political and professional matters! Failing to recognize this distinction will never lead to success, and Serbia will never have high-performance aviation. In aviation business, Serbia has competent people, but only a few professionals. These professionals are very good at what they do, but Serbia needs more such people who can help make a distinction between the political and the professional. The professional staff is changing things for the better and the whole organization is working much better. Going back to your previous statement, would you say that privatization of JAT would result in avoiding further “political” influence in the business? Of course, you can shine through as an individual, but you won’t exert much influence since you will be stuck within the system. This is why it is so exceptionally important to establish professional conduct when running the aviation business. The common trend worldwide is to open up the market, whether we are talking about airlines, airport control, or airport operations. Despite the fact that JAT already has competition in Serbia, the open market is beneficial because competition will be even tougher, bringing a higher level of efficiency for these who stay on the market. JAT has to improve its own efficiency. If a company wants to be successful today, it has to compete on the international market and, frankly, that market doesn’t really care about 40 CorD 69 / March 2010

the old Soviet Union, Yugoslavia, Serbia, or politicians. The EU market, or any other, recognizes only successful and unsuccessful companies. We have to go down and check each and every relevant marketing information and opportunity. JAT’s costs of running its business are too high, there are fewer passengers, less profit, and the profit margin is very small. So, if a national airline wants to survive and become more competitive, it simply needs to develop its business knowledge and operation. JAT has a lot of aircraft, but only a few are flying. On the other hand, those that are flying are very old. Although I am very well aware of the costs, JAT needs to form a new fleet and that is a really great challenge. So, how would you make JAT a successful company? Our main goal is to help Serbia’s aviation sector develop itself and reach EU standards and practice. The EU wants to extend the use

GOOD LUCK

very time I fly, wherever I go abroad, I always pick up an in-flight magazine. All of these have a comment from the airline’s top manager, telling us just how very good the airline is. When I read JAT magazine, I saw they had many positive things to say about themselves like “efficient and developed JAT.” I can only say good luck with that. If that ever comes true, JAT will be successful indeed.

Comparing Serbian aviation with Sweden’s, the main difference is not the financial side, but the completely unclear distinction between political and professional matters! Failing to recognize this distinction will never lead to success, and Serbia will never have highperformance aviation of its aviation regulations beyond its borders and the details are defined in the ECAA agreement (European Common Aviation Area). We are also working with the police due to security matters, in addition to aircraft safety policy, airport security measures, air traffic management (i.e. traffic control), economic regulation, etc. What is specific in EU economic regulation? There are a lot of different requirements in EU regulation of aviation in general, as economic influence is very important. In Europe, for example, state-owned companies are not allowed to get state subsidies. Then, all European airlines are allowed to fly to any destination in Europe, whether domestic or foreign. That regulation is crucially important in positioning the financial side of an airline company. Just to explain, at the time when Slovenia was getting closer to becoming an EU member, I was also involved in a very similar project, even the name was the same. In Slovenia’s case, the EC found out that Slovenia had to be much more involved and invest much more money in achieving higher standards, as all former EU candidates had the same problems in achieving the satisfactory level of standard. And still, there is still a big difference between German and Slovenian aviation standards. Belgrade Airport was finished last year. Is there anything else to be done there in terms of new equipment, security measures,…? This equipment is mainly security equipment that every airport needs - magnetic doors,

30 MILLION LOSS

ince 2004, JAT had five different managing directors, who have all been appointed along political lines. This year, the company is expected to generate loss again in the region of 30 million euro.

screening and X-ray equipment (popularly called “sniffers”). This machinery is used to detect powder substances, drugs, and other dangerous materials in luggage. These are things that Serbia will be getting along with know-how and staff training. Serbia has good quality aviation personnel, who are doing their jobs in line with the ICAO (International Civil Aviation Organization) rules. You have to understand that Europe has its own standards and rules, and these have to be adhered to in order for Serbia to become an EU member. We have been conducting training on a daily basis for almost two years, and have been developing manuals and creating a state safety program. But putting together these programmes is relatively easy; but implementation is always the problem. I am happy to say that Serbia is the only country where such a project is being implemented. There are other states which are even closer to EU membership (Croatia) and they haven’t got it. What is on your agenda for this large project? It is good that the European Commission’s office in Belgrade has decided to start the project and provide the financial means for it. We were chosen via a tender to implement it. So far we haven’t had any major problems with the project. The crew is multi-national led by a Slovenian; a person responsible for ATM comes from Sweden, while security issues are directed by Icelandic experts. We are expecting a total of 800 students to go through our training program. All in all, this is a rather extensive program, our biggest training program so far, and there are a lot of things to be done. The training will last fourteen days, followed by a break, and will continue later. I am expecting some 400 people to attend, with some of them attending several courses. The session will last until the end of March. It seems as if our major problems appear when it comes to implementation. As mentioned, the current situation in Ser-

bia is very similar to what Slovenia’s was. We had long-term problems in introducing the new aviation law which was eventually accepted in 2000, only two years before the country’s accession to the EU. Just like in Serbia, there was no relevant legal background. The problem with legislation is even more pronounced here, which is the reason why we are in Serbia. Of course, we are only human, and things sometimes go faster and sometimes slower, but for the time being I think we should be satisfied with the progress made so far. People are helping, they are active, and they see the benefits of this project. As always, it takes time, but I don’t see any difference between Serbia and the states that have recently become EU members. I have to reiterate – Serbia has quite a few experts here who are capable of doing things the right way, so you should not fear that you will not acquire the know-how. What are your further plans in the region? We would like to continue our cooperation, of course. Every project has its beginning and the end, but we would like to continue working together with the people from the Balkans. As we are in consultancy business, it is pretty much

In Europe, for example, state-owned companies are not allowed to get state subsidies about interacting with other individuals. Consultancy is about all people working together. If there is no good relationship between individuals, there will be no transfer of knowledge, cooperation or development. You cannot establish cooperation if you don’t trust each other. If you don’t do that, you are wasting your Would you estimate that two years would be enough to finish your objectives here in Serbia? We have been working for eight months now and we have made a lot of progress, but I would like to see proof of this before I say that we have been fruitful or successful. We need to improve the implementation aspect. But the point is not only about our own aim and efforts. There are so many angles and documents, laws, by-laws, regulations, standards…and everything has to be in line with the European

Dr. Branko Lucovnik, Team Leader, Technical Assistant for the Implementation of the ECAA agreement and former Adria Airways MD legal system. It is not an easy task, as our main objective is to open up Serbian airspace. That doesn’t entirely depend on us, but rather on all of us involved in developing our common goal, including the EC’s Belgrade office. The results of our efforts have to be implemented prior to Serbia’s EU membership. I know this process may be painful to a certain extent, and I am not talking only about the aviation sector, but all changes can be painful sometimes. If Serbia wants to be an EU member, implementation is unavoidable. Who are the other members of your team? Different people. When it comes to security training, we are backed by an Israeli company that is quite experienced in this domain. With regards to safety issues, we use a training centre in Belgrade as well as foreigners, and we are covering the training costs here. We have already organized workshops - two in Slovenia and one in Austria, covering issues like security and legal systems. These are the most powerful tools we have, because our trainees are taught by people who are very experienced and knowledgeable. We also try to use seminars as much as possible, i.e. we are trying to be as practical as we can. We are also going to have a lot of training sessions called on-job trainings in aviation, meaning that work inspectors and other professionals come and basically ex change know-how. CorD 69 / March 2010 41

EMBASSIES WAIT

CETNJE - MONTENEGRO

By Ilija DESPOTOVIĆ

he Constitutional stipulation about the capital city implies that certain state institutions ought to relocate to Cetinje. So far, Cetinje has only the Presidential Residence where Montenegrin president carries out just some of these duties, mostly of special protocol nature. In Cetinje, Filip Vujanović receives newly-appointed ambassadors, who present the President with their credentials, holds receptions, and makes important decisions like when to schedule elections or whom to name as prime minister.

T Although a small country, Montenegro has many attractions, whether natural, historical or contemporary. Above all, this is a land of duplicity. The country has two names (domestic and foreign), two academies of science, two writers’ associations, two Orthodox churches... It also has two capital cities. According to the Montenegrin Constitution, Cetinje is the country’s seat, while Podgorica is ofﬁcially the capital city, with the ﬁrst being more an honorary and ceremonial title 42 CorD 69 / March 2010

According to some sources, the tennis club is the oldest registered sporting club in Montenegro. Tennis was played on various tennis courts and in the Italian Embassy’s courtyard There is a plan to relocate the Ministry of Culture, the Academy of Science, and several other institutions to Cetinje. Some even say that the Montenegrin Parliament should be based in Cetinje. For now, and in accordance with the Constitution, the Parliament only holds the first spring and autumn session in the town. However, it seems that nobody is too keen on moving to Cetinje. Despite the town’s history and its

T ING FOR HOSTS picturesque nature, today’s Cetinje is a silent town, just like many other towns in Montenegro. The socialist industry, with household appliances producer, Obod, which at one time was the mightiest company, has collapsed. The unemployment rate is high, and the town comes alive only during the summer when swarms of tourists come. However, over the last couple of years, even those are few and far between. Naming Cetinje in the Constitution as the country’s seat was supposed to give the town a chance to finally achieve economic and spiritual prosperity, aside from feeling honoured by being declared the seat. The econom-

In summer, Podgorica is virtually unbearable because of the heat. Cetinje is a real air spa and it is actually quite close to Podgorica and the sea, some thirty and twenty kilometres respectively ic downturn annulled these plans, although the promises about restoring Cetinje to its glory were obviously politically motivated at the time when Montenegro was getting ready to re-

Russian Embassy (since 1903), designed by Italian architect Corradini instate its sovereignty. Such political promises somehow are always made just prior to elections, and, this time around was no exception. Just before the local elections scheduled for February 7th, Prime Minister Milo Đukanović, who is also at the helm of the ruling Democratic Party of Socialists, announced that close to €20 million euros would be invested in Cetinje over the following three years. Aside from this, Montenegro has asked UNESCO to assign Cetinje with world culture heritage status. Despite the plan

for all of the aforementioned activities to jump-start Cetinje on its road to prosperity, its mayor, Milovan Janković, wants a couple of other things to be done too. He hopes that the countries that used to send their ambassadors to Cetinje will so again. Representatives of Serbian and Greek embassies currently located in Podgorica have already expressed interest for the buildings that used to house embassies in Cetinje.

Italian Embassy (since 1910), designed by Italian architect Corradini. Since 1976, the building is the location for the Đurđa Crnojević Library. The Italian embassy is the biggest building of its kind and has the most spacious yard. The Austro-Hungarian embassy also has sport courts CorD 69 / March 2010 43

The construction plan for the French Embassy building was originally envisaged for the embassy in Cairo. Some say that the blueprint was sent to Cetinje by mistake and a building with a mosaic Arabic-like front was raised, more befitting an Arabic country than Montenegro It is quite realistic to expect that other countries might follow suit and open their offices in Cetinje. The historical sentiment is obviously quite appealing, but is not the only reason. In summer, Podgorica is virtually unbearable because of the heat. Cetinje is a real air spa and it is actually quite close to Podgorica and the sea, some thirty and twenty kilometres respectively. Embassies could move from Podgorica to Cetinje at least during the summer period. Italian, Russian, Bulgarian, Serbian, Turkish, British, Austrian,

Bulgarian Embassy (since 1897) is Ivo Radonjić’s house. Today, the town’s inn is located here

Serbian Embassy (since 1906) is just across from the royal palace. Before that, the embassy was located in a privately-owned house. Today, this building houses the Montenegrin Ethnographic Museum 44 CorD 69 / March 2010

and Hungarian embassies already have their residential buildings in Cetinje, as do the Germans and Belgians. The U.S. embassy used to be located in the old Cetinje hotel called Lokanda which was destroyed in the catastrophic earthquake in 1979. Most of these buildings were tall, purposefully built to house diplomats. Today, they are educational facilities or museums. Only the buildings, used by the German and Belgian embassies in the past, are used as residential housing today. The Russian Embassy, for example, now houses the Art Academy, the Central Library is situated in the former Italian Embassy, the Music Academy now takes up what used to be the British Embassy, while the Ethnographic Museum is located in what used to be the Serbian Embassy. The first plenipotentiary ambassadors came to Montenegro

following the Congress of Berlin in 1878 when Montenegro was officially granted independence, although factually the country had already been sovereign for quite some time. The first foreign diplomats were housed in wealthy privately-owned houses, while the Americans took up residence in the Hotel Lokanda that had been built

The construction of diplomatic facilities began at the end of 18th century and lasted all the way to 1912. in 1864. Also, Spain had its own embassy in Cetinje. The construction of diplomatic facilities began at the end of 18th century and lasted all the way to 1912. Foreign embassies or deputations / legations, which is how they were referred to in Cetinje, are among the most beautiful architectural edifices not only in Cetinje, but in all of Montenegro. They have preserved their authenticity to this day. It seems like the mighty European countries have invested a lot of effort in trying to present themselves to the Montenegrins in the best possible light. The size and grandeur of these buildings showed a certain respect towards Montenegro. There are quite a few anecdotes about these buildings too. The construction plan for the French Embassy building was originally envisaged for the embassy in Cairo. Some say that the blueprint was sent to Cetinje by mistake and a building with a mosaic Arabiclike front was raised, more befitting an Arabic country than Montenegro.

British Embassy (since 1912), designed by British architect Hartey. Since 1996, it houses the Music Academy The buildings that housed embassies were designed by renowned architects from countries that opened their embassies back at the time of the King Nikola Petrović. The Russian Embassy, for example, was built in the Russian Baroque style. Still, the ambassadors in royal Montengero did not spend much time in their Cetinje residences. Bulgaria closed its embassy in 1913 after Montenegro and Serbia joined the Second Balkan War. The Austro-Hungarian diplomatic mis-

The building used by the German embassy in the past, is used as residential housing today

sion was active until 1914, when the First World War started. Following Montenegro losing its sovereignty in 1918, Cetinje was no longer considered a diplomatic destination. Nonetheless, ambassadors are now coming back to Montenegro’s seat. Cetinje aspires to become a diplomatic centre again. It wants to see tennis and golf played again on its courts, just like one hundred years ago. Back in 1906, a Cetinje daily wrote that “in the field, just above the newly-opened Italian Embassy along the road to Lovćen, a new golf club has been opened under the patronage of the Princess, heiress to the throne.” The opening ceremony was attended by “the esteemed Royal Family, diplomats and their spouses, and many other distinguished guests.” That was the time when Cetinje wasn’t known only for devising battle plans, but the time when Montenegrins were getting accustomed to European royal etiquette. CorD 69 / March 2010 45

FROM THE WORLD PRESS Italy ‘WELCOME ANGLICANS’ SAYS POPE (ANSA) Pope Benedict XVI urged English and Welsh bishops to give a warm welcome to Anglican clergy wanting to ‘return’ to Rome.

M Great Britain BUCKINGHAM PALACE VALUED AT CLOSE TO £1 BILLION Photo: PA Zoopla has estimated that Buckingham Palace has fallen in value by £57 million in the last 12 months.

he Queen’s official London residence was estimated to be worth £935 million by home valuation site Zoopla.co.uk, making it the UK’s most expensive family property.

The Queen’s weekend retreat, Windsor Castle, has also been valued for the first time at £180 million.

But the price tag is hardly surprising when you consider that the palace has 775 rooms, including 19 State rooms, 52 Royal and guest bedrooms, 188 staff bedrooms, 92 offices and 78 bathrooms. It also has a cinema, swimming pool, 40 acres of land and it’s very own post office. A Zoopla spokesman said: “Everything has a price, even Buckingham Palace. “And it shows that the Royals might be shrewder investors than they are given credit for, given that Buckingham House - as it was known then was reportedly purchased for only £21,000 by George III in 1761. He was clearly the Sarah Beeny property developer of his time.” The Queen’s weekend retreat, Windsor Castle, has also been valued for the first time at £180 million. The figure takes into account the £37 million spent on restoration following the 1997 fire. However, it seems that Royals do have something in common with other British property owners, and are not immune to the fall in the housing market. Zoopla has estimated that Buckingham Palace has fallen in value by £57 million in the last 12 months, meaning it would have been worth £992 million. Windsor Castle fared only slightly better with a drop in value of £8 million since last summer. Alex Chesterman, CEO of zoopla.co.uk, said: “As a nation obsessed with both property values and the Royal family, it’s certainly interesting to know what it might cost to live the life of a Royal.” Zoopla.co.uk allows users to research the current value of any home in the UK, and provides value estimates and sale prices. 46 CorD 69 / March 2010

eeting the bishops in the wake of a report that Queen Elizabeth II had been concerned by the Vatican’s November move to make it easier for disaffected Anglicans to join the Catholic Church, the pope asked the bishops “to be generous” in applying the ‘Anglicanorum Coetibus’ (‘Groups of Anglicans’) constitution set up by the Vatican on November 4. He urged the bishops to help groups wanting to have “full communion” with the Catholic Church. “I am convinced that, if they are given a warm and sincere welcome, these groups will be a benediction for the whole Church,” Benedict said. The pope also confirmed he will visit Britain in mid-September and told the bishops that Britain’s new equal-rights legislation threatened religious freedom. The meeting came after the Daily Telegraph reported that the royal household’s most senior official met with the head of the Catholic Church in England and Wales, Archbishop of Westminster Vincent Nichols, two weeks after the establishment of the new ‘apostolic constitution’ in order to allay concerns. Queen Elizabeth, who is the Anglican Church’s Supreme Governor, was not warned of the move, which paved the way for groups of Anglicans to enter into full communion with the Holy See. According to the Telegraph, Archbishop Nichols assured Lord Peel that Benedict had only issued the decree in response to the requests of traditionalist Anglicans disillusioned with liberal moves such as the ordination of gay priests and women bishops. Nichols stressed that “it had not been intended as a hostile act or to in any way destabilise the Church of England,” the Telegraph said. Exarchbishop of Canterbury Lord Carey said the Anglican Church should not be treated as a ‘’junior partner’’ and that the Vatican had only given Williams two weeks’ notice of its plan. It is unclear how many Anglican groups will move over to Rome, with several English newspapers saying practical problems such as the conversion of churches and property. The first initially expected to take advantage of the door opened were the some 500,000 members of the Traditional Anglican Communion (TAC), a conservative group which broke away from the international Anglican Communion in 1991.

With some 77 million members, the Anglican Communion is the third largest Christian communion in the world

The Church of England is regarded as the ‘mother’ of all the other churches in the worldwide Anglican Communion, which considers itself to be both a product of the Reformation and also in many ways Catholic. With some 77 million members, the Anglican Communion is the third

largest Christian communion in the world after the Roman Catholic Church and the Eastern Orthodox Churches. The English church was under papal authority for nearly a thousand years before splitting from Rome in 1534 when King Henry VIII was refused an annulment of his marriage to Catherine of Aragon so he could marry Anne Boleyn.

“The crisis in Spain is very deep, notably because of the property situation,” International Monetary Fund Managing Director Dominique Strauss-Kahn told France’s RTL radio. “But the Spanish really need to make a considerable effort.”

Sweden SAAB SALE DELAYED Spain NO RISK TO EURO ZONE By Jason Webb Spanish Economy Minister Elena Salgado said she saw no risk to the euro zone and said foreign analysts homing in on Spain’s travails misunderstood the role of the single currency in its economy

“T

he euro is a very strong currency and we will continue to strengthen the currency. I certainly do not see any risk for the euro zone,” she told radio station La Cope, adding that her country’s situation was very different to that of Greece. Asked about comments by Nobel Prize-winning

Spain has a problem with debt markets as economists doubt economic forecasts for about 3 percent growth by 2012

economist Paul Krugman, who identified Spain as the euro zone’s biggest trouble spot, Salgado responded by saying that analysts and media from outside the euro zone did not understand how the bloc worked. “Maybe there is a lack of comprehension about what the euro means for our economies,” she said. Krugman argued that Spain was more of a problem to the single currency than Greece, despite its lower ratio of public debt to gross domestic product. This is because of the scale of Spain’s economic collapse in the downturn, which has sent unemployment close to 20 percent. “Underlying that collapse is the real problem with the euro: the one-sizefits-all monetary policy, which offers no relief to countries that suffer adverse shocks,” Krugman wrote. Spain has a credibility problem with debt markets as economists doubt economic forecasts for about 3 percent growth by 2012 on which the government has based its fiscal deficit projections. They fear the country faces long stagnation as it struggles with a relatively high euro exchange rate, high stocks of private sector debt and the vacuum left in its economy by the end of a property boom. The country’s image took another blow when the government floated a move that would effectively reduce pensions and then just hours later put out a communique saying it was only an idea and not a firm proposal. Madrid also raised forecasts for budget deficits in coming years, although it repeated its promise to cut the shortfall to the European limit of 3 percent of GDP by 2013 from 11.4 percent in 2009. The head of the IMF said Spanish Prime Minister Jose Luis Rodriguez Zapatero faced a difficult situation over pension reform but needed to act decisively.

The U.S. Government participated in stopping General Motors from selling Saab to a Dutch automaker in December due to possible involvement in the deal by the Russian Mafia, a Swedish media outlet is reporting.

ccording to the Dagens Industri newspaper, the Swedish government asked its security force, the Sapo, to investigate the financial affairs of the Convers Group, a Russian investment group owned by the family of billionaire Alexander Antonov that was one of the major shareholders of Spyker when the Dutch automaker made the offer to buy Saab in December. That investigation reportedly turned up a “strong suspicion” of ties between the Antonovs and organized crime, information that was passed on to the FBI. The report goes on to say the the board of General Motors was then contacted by the U.S. Government and told to stop the sale. Since then, Spyker founder Victor Muller has assumed ownership of the 4.6 million shares in Spyker that were controlled by the Convers Group, through a recently created holding group called Tenaci, which is run by Muller. This move apparently opened the door to another offer to purchase Saab, which was accepted by GM last week. A spokesman for Spyker tells Foxnews.com that Victor Muller says the report is “nonsense and speculation.” In the weeks leading up to the sale several media outlets reported that GM was wary of the Antonovs’ involvement over concerns that intellectual property rights could be transferred to competing automakers. When asked during a conference call following the agreement if GM was satisfied with the exclusion of the Antonov family from the deal, GM Vice President for Corporate Planning and Alliances John Smith responded, “as part of finding a sustainable solution for Saab, we are happy with the structures of the company that Victor Muller has put in place for Saab Spyker and I’ll just leave it at that.” When contacted by Foxnews.com about the Dagens Industri story, General Motors issued the following statment:

A spokesman for Spyker tells Foxnews.com that Victor Muller says the report is “nonsense and speculation.”

“We are declining to comment in any way on the specifics of any negotiations, as they were covered by confidentiality agreements. Our interest was in finding a buyer that could create a viable future for Saab, and we believe we did.” CorD 69 / March 2010 47

FACES & PLACES | The celebration of the 31st Anniversary of the Islamic Revolution of Iran was held in Belgrade City Hall on February 10th. Chargé d’Affaires of the Embassy of the Islamic Republic of Iran and Mr. Habibollah Valiollahi Malekshah (left) welcoming Brazilian ambassador H.E. Dante Coelho de Lima.

Dragan Todorovic, Vice president of the Serbian Radical Party (left) and former Serbian Foreign Ministar Zivorad Jovanovic

Mladjan Dinkic, Serbian Deputy Prime Minister (left) and Damir Bajs, Minister of Tourism of Croatia, at the opening of the Tourism Fair in Belgrade on February 24th

Andre de Lima Junior (left), H.E. Dante Coelho de Lima, Brazilian Ambassador, Milorad Bašić, BNB Internacional and Karlos Avrantes, Chanceler, Embassy of Portugal in Belgrade during the promotion of Portugese vine in Belgrade restaurant “Monte Cristo on February 23rd

Alexander Konuzin (middle) presenting the book ‘Russians in Serbia’ in the Russian Center on February 2nd

Vlade Divac of the “Ana & Vlade Divac” Foundation, Žarko Obradović, Minister of Education, and Philippos Karamanolis, President of the Executive Board of Eurobank EFG at the presentation of EFG’s new “Big Heart” afﬁnity credit card, under the auspices of the Serbian Ministry of Education on February 3rd in Belgrade.

48 CorD 69 / March 2010

Predrag Umićević, Mayor of Smederevo (left), Oliver Dulic, Minister of Environment and Spatial Planning and Matthew Perkins, CEO of U. S. Steel Serbia during plant visits to U. S. Steel Serbia in Smederevo on February 18th, where more than $ 60 million of environmental protection equipment has been installed in the last three years.

On the occasion of Serbian Army Day on February 15th, Minister Šutanovac held a reception for many renowned guests in the Great Wartime Hall in the former army headquarters in Belgrade.

Prime Minister of Serbia Mirko Cvetković and Director of the 38th International Film Festival ‘FEST 2010’ Milos Paramentić at the Festival’s opening ceremony on February 19th at Sava Center in Belgrade.

Minister Šutanovac and General Miloje Miletić with the crew of the popular TV show, ‘Selo gori, a baba se ceslja’

On February 3rd, the Democratic Party (DS) marked its 20th anniversary. The celebration entitled ‘Twenty years of DS – Serbia on the Right Path’ was held in Belgrade’s Expo Centre.

Minister Dragan Šutanovac and Serbian Army Chief of Staff General Miloje Miletić welcoming Patriarch Irinej CorD 69 / March 2010 49

FACES & PLACES |

Election of new Members of the Board of Directors of AMERICAN CHAMBER OF COMMERCE IN SERBIA (left to right): Gabriel Dina (General Manager, Merck, Sharp, and Dohme); Marko Mićanović (Managing Partner, Altis Capital); Matthew Perkins (General Director, US Steel Serbia); Skip Bornhuetter (Area Manager Southeast Europe, Philip Morris International); Jelena Kralj (Country Manager, Pedersen and Partners); Gustavo Navarro (Country Manager, Holcim Srbija); Borislav Miljanović (Managing Director, McCann Erickson PR); Vladan Živanović (General Manager, Microsoft Serbia). Within its traditional charity initiative, the International Women’s Club, which gathers wives of ambassadors in Serbia, organized a fund-raising event for the beneﬁt of the non-governmental organization Creative Educational Center for Disabled People (KEC MNRO), which supports mentally disabled persons in Serbia. This time the host was Jeanette Koll, wife of the Israeli ambassador, who received great number of guests at the “Morning Coffee on the Shores of the Dead Sea.” Guests were able to purchase cosmetic products from the Dead Sea. The leader in the telecommunications sector with close to 9 million users in Serbia (5.6 mobile telephony users, 3.031.858 ground telephony users, and 240,000 ADSL users) and 11 million subscribers in the region, Telekom Srbija gave its support to the 6th Brand Fair, explaining that these kind of events draw due attention to brands and the value they hold. At last year’s Brand Fair, Telekom Srbija presented its sub-brands mt:s and Open (Open IPTV received an award for innovation), while this year the company decided to present itself as one brand.

Branko Radujko, CEO Telekom Serbia and Miloš Bugarin, President of the Serbian Chamber of Commerce are equipped internet cabinet in elementary school “Olga Petrov” in Padinska Scaffolding, regional ofﬁces in Dunavcu in Action “e-dukacij @” on 3rd February. So far, Telekom Serbia has introduced the Internet in 3330 schools and protruding departments in Serbia. 50 CorD 69 / March 2010

Mrs. Nichol Wordsworth, wife of the British ambassador, Mrs. Jeanette Koll, wife of the Israeli ambassador, and the representative of the Israeli cosmetic company (left to right).

CARLSBERG “Bearing in mind last year’s overall business climate, our primary task was to not compromise the top quality of our products and services, maintain affordable prices, and continue improving existing conditions in order to augment our market share in the coming period. Our business aims are included in our future plans whose implementation will lead to better market positioning, and further financial investments in all areas of our operation this year will amount to €14 million,” Managing Director of Carlsberg Serbia Aleksandar Radosavljević said at a working lunch with media representatives regarding the successful year that the company has had. In 2009.

Tomislav Karadzic and Aleksandar Radosavljevic

Party time

Aleksandar Radosavljevic talking to media representatives

Serbia Group presented the new design for the Lav beer bottle on Nikola Pašić Square in Belgrade February 19th. The company had a fireworks display, which announced the beginning of the ‘New Era,’ i.e. the launch of the newly-designed beer bottle. The guests, including diplomats, state officials, and leading company executives, artists, media and fashion people, and athletes continued the celebration in Dom Sindikata Hall. The party guest who found the specially-labeled Lav bottle with photo of the famous actor Gordan Kičić was awarded with a journey to South Africa, where he will travel together with the Serbian national football team.

THE WHITE CITY KNIGHTS The second international assembly of the Knights of Wine in Belgrade brought together all wine orders from Serbia, as well as quite a few guests from abroad. The highlight of the event was the establishment of the Belgrade wine order, Singidunum, with Professor Stojan Jevtić, Ph.D., who is also Vice-President of the Serbian Chamber of Commerce, appointed as Grand Master. Grand Masters of all four Serbian wine orders addressed the assembly, as did Singidunum’s Grand Master, foreign guests, and the assembly’s director, Milenko Nikitović. CorD 69 / March 2010 51

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APPOINTMENTS INTERNATIONAL AWARDS

AWARDWINNING FAMILY

DRAGAN FILIPOVIĆ NEW VICE PRESIDENT OF DELTA HOLDING The current managing director of Delta Maxi Group, Dragan Filipović has been appointed new Vice President of Delta Hodling. Vice president is in charge of negotiating with potential equity partners from the company’s core businesses, establishing strategic connections and regional expansion.

LOANS FOR KBC, PIRAEUS BANK & ERSTE BANK

tuttgart – The E-Class has always taken its place in the ranks of the world’s most popular automobiles. An impressive collection of major national and international awards underlines its exceptional status. Just recently, this public favourite and trendsetter was the recipient of the GOOD DESIGN® Award in the Business category – the oldest award for outstanding product design. Since its market launch in March 2009, numerous noted national and international institutions and publications have presented highly prestigious awards to the new Mercedes-Benz E-Class. They include, for example, ADAC Motorwelt with the “Yellow Angel” or Auto Bild with the German Design Award. In addition, the E-Class family consisting of the Saloon, Estate, Coupé, and Cabriol et has won numerous other major awards. For example, during the annual readers’ vote organized by Auto Motor und Sport magazine, the premium business Saloon took first place as “Best Car of the Year” in the upper medium-size category. The E-Class also racked up many international successes: the Irish Motoring Writers Association voted the E-Class the Continental Irish luxury/sports Car of the Year, the Turkish publication “Otohaber” declared the E-Class to be the Best Car of the Year, and in India it won Autocar magazine’s Road Test Award. The most recent award was from the Chicago Athenaeum Museum of Architecture, the GOOD DESIGN® Award, which has been presented for almost sixty years and is therefore the world’s oldest design award. The Mercedes-Benz E-Class particularly impressed motoring juries and readers with its dynamic design, innovative technology, exemplary comfort, and excellent economy, as well as an unrivaled combination of driver assistance systems.

he European Investment Bank (EIB) will provide loans for small and medium enterprises in Serbia worth a total of €65 million, which are going to be granted through Erste Bank, Piraeus Bank, and KBC. The latter bank signed a contract with EIB worth €20 million that will be spent on financing projects implemented by SMEs and local self-governments. KBC Bank will provide an additional €20 million from its own resources for the same purpose. Piraeus Bank was also one of the banks that signed a €20-million-credit line contract with EIB. “The contract will secure additional financing for the Serbian economy, the SME sector, and local self-government,” Piraeus Bank said, adding that the money will be spent on financing investments and permanent working capital. Just like the other two banks, Erste Bank Novi Sad and EIB also signed a contract stipulating a €25-millioncredit line that will be used on financing investment projects implemented by small and medium enterprises. At least 70% of the money will be used on funding SME projects, while the rest will be spent on investments made by local authorities and other entities.

FIAT: €150 MILLION INVESTMENT

n the following few weeks, Fiat Automobili Srbija (FAS) will start reconstructing production facilities and acquire new equipment worth €150 million for the Kragujevac plant. Serbian Economy Minister Mlađan Dinkić said that he was informed by the Chairman of FAS’s Managing Board, Giovanni de 52 CorD 69 / March 2010

Filippis, that the works would commence in the following few weeks, with FAS investing the aforementioned €150 million. The minister added that in addition to the reconstruction, the company would acquire new equipment to be used in production of a brand new Fiat model. Source: Beta, Tanjug

PIRAEUS VISITS NOVI PAZAR

hile promoting Greek investment activities in Serbia and expanding the existing economic collaboration, representatives of Piraeus Bank, along with the Greek Ambassador to Serbia, H.E. Dimosthenis Stoidis, executives from several Greek banks, the Hellenic Business Association, and a Greek economic delegation visited Novi Pazar. On the occasion, the Greek guests met with business community and municipal authorities from Novi Pazar, Sjenica, Tutin, and Raška. The object of the meeting was to present investment opportunities in the region and to discuss future investment directions. “For the fourth consecutive year, Piraeus Bank has been successfully operating in Novi Pazar. During this period, we paid great attention to the needs of both citizens and companies in this area in order to provide products tailored to their specific needs. That is why today the bank has a clear insight and plans about how to help this area to further develop. We used the meetings to present the new credit line for small and medium enterprises, entrepreneurs, and local self-government. The credit line, amounting to €20 million, has been granted by the European Investment Bank, and we added

First from left: Mr. Konstantinos Vagiotis, Piraeus bank Member of Executive Board another €20 million from our own sources,” says Mr. Constantinos Vagiotis, a member of Piraeus Bank’s Executive Board. The aforementioned credit line has a great interest rate which is 0.5% (50 b.p.) lower than the interest rate usually applied by the bank for this kind of loan, without the European Investment Bank’s involvement.

EPS ASKING €80 MILLION FROM THE EBRD

he Electric Power Industry of Serbia (EPS) has applied with the European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) for a €80-million-loan. EBRD would grant half of that amount and EIB the other half. The money will be spent on projects implemented by EPS, but before that, certain consultancy services are needed, and this will be also financed by the EBRD. The tenders for acquisition of equipment will probably be invited in the Q2 of this year, while the tender for the aforementioned consultancy services will be invited in the Q3. Source: Tanjug

APPOINTMENTS DEJAN JEREMIĆ NEW MANAGING DIRECTOR OF DELTA MAXI GROUP The new managing director of Delta Maxi Group is Dejan Jeremić, the former managing director of Delta Agrar. CorD 69 / March 2010 53

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SRBIJAGAS REACHED AGREEMENT WITH THE EBRD

rbijagas and the European Bank for Reconstruction and Development (EBRD) have signed a contract stipulating that the EBRD is granting a €150-million-loan to Srbijagas. EBRD’s director for Serbia, Hildegard Gacek said on the occasion that this was the first contract ever to be concluded between the bank and Srbijagas which will help the Serbian company to achieve energy stability and efficiency. Gacek also pointed out that in 2008 the EBRD provided a total of €180 million for the implementation of various projects, while in 2009 the bank invested €423 million. “Since becoming operational in Serbia, the bank has financed 94 projects worth €1.8 billion,” Gacek outlined.

Nataša Pantović – Mihailović, Executive Director of Century 21 Serbia & Montenegro “YOU MIGHT WORK FOR YOURSELF, BUT YOU ARE NOT ALONE.”

THE ART OF DOING BUSINESS

ransfer of know-how, sharing experiences, visual identity, and trademarks are just some of the daily tasks performed by real estate consultants of the Century 21® franchise network, the most extensive network of its kind in the world, which has recently become operational in Serbia and Montenegro under the name Century 21 Serbia & Montenegro. “Following the slogan, “You might work for yourself, but you are not alone,” the company assists franchise owners with starting their businesses while using the name and licenses of the globally renowned trademark Century 21. Century 21 also provides various manuals, marketing strategy and aims, technological support, clearly defined financial plans, and profitability parameters along with cooperation with strategic partners who have been agreed upon in advance. “All of the aforementioned makes the Century 21 value system a completely comprehensive one,” says Nataša Pantović – Mihailović, Executive Director of Century 21 Serbia & Montenegro. The company helps agencies within the network to operate independently, while implementing the latest trends at the same time. This is possible only through a developed and elaborate system that fosters a healthy working atmosphere that motivates highly-trained and educated real estate professionals to focus on accomplishing both individual and mutual goals. 54 CorD 69 / March 2010

KOREANS IN “ZASTAVA ELEKTRO”

representative of Jura, a South Korean company, toured the production facilities of Zastava Elektro in Rača Kragujevačka in order to assess the company’s potentials. The representative did not give any statements during his visit. However, the visit validated earlier announcements made by Minister of Economy Mlađan Dinkić about the factory being sold and at least 1,000 new jobs created as a result. Jura is engaged in the production of car installations for renowned carmakers like Hyundai, Daewoo, and KIA. The South Korean company wants to start producing in Rača in June, but prior to this, the company will have to fulfill the conditions stated in a tender for selection of a strategic partner that will be invited by the end of the month. Jura Company has already inquired about the technical conditions in the factory, and plans to hire at least 1,000 workers, while workers wishing to leave the company following the acquisition will get a severance pay of €300 per year of employment in the company, according to minister Dinkić. Source: B92

EBRD: MONEY FOR GAZELA IN MIDMARCH

he Board of Directors of the European Bank for Reconstruction and Development (EBRD) is supposed to make a decision by midMarch whether to grant a loan for reconstruction of the Gazela Bridge in Belgrade. Director of the EBRD’s Belgrade office Hildegard Gacek says that the bank is “fully aware of the project’s urgency” and reminded that the EBRD visited the Roma families which had been re-located from their cardboard homes underneath Gazela Bridge. The bank is currently finalizing the report about the re-location which is going to be presented to the Board of Directors before they make a decision about the loan, Gacek explained. Serbian Infrastructure Minister Milutin Mrkonjić said earlier that in order to get an international loan for the reconstruction of the Gazela Bridge, Serbian authorities were obligated to find jobs and create relatively good living conditions for all 45 Roma families that had been relocated in Leskovac, Vranje, Merošina, Surdulica, and Bojnik. Source: Tanjug

APPOINTMENTS MILAN GRGUREVIC NEW MANAGING DIRECTOR OF DELTA AGRAR The former deputy managing director of Delta Agrar, Milan Grgurević was appointed the company’s new managing director in February. He replaces Dragan Jeremić, who is now managing director of Delta Maxi Group.

APPOINTMENTS MILKA FORCAN REPRESENTS THE SERBIAN LOBBYIST SOCIETY IN THE EU At the assembly of the Serbian Society of Lobbyists, which was held in midFebruary, Vice President of Delta Holding, Milka Forcan was appointed the Society’s Vice President in charge of European relations. Ms. Forcan has also been a member of the Society’s Council since its establishment. The Society’s presidency says that as head of the International Relations Department in Delta Holding, Milka Forcan gained significant experience in the way lobbying process is conducted during the decision making process in Brussels. Following her appointment, Ms. Forcan held a lecture entitled ‘Business Lobbying and the European Union’ during which she talked about the institutional framework of a decision making process, as well as transparency and efficiency of lobbying in Brussels.

SMART  ENVIRONMENTAL CHAMPION

indelfingen - Smart Fortwo Cdi tops the list of internal combustion engine cars with the lowest CO2 emission. Now, the new Smart Fortwo emits only 86 grams of CO2, which beats the competition. This low emission of harmful gases is one of the features that led to Smart’s reaching an almost cult status. In the diesel aggregate, the Smart Fortwo Cdi emits only 88 grams per kilometre, which at the same is the best emission result for a car with an internal combustion engine. The Smart Fortwo is a record breaker with 86 grams per kilometere and a diesel fuel consumption of only 3.3 litres per 100 kilometres, which again puts it ahead of the competition.

NOVIMIX COOPERATING WITH NUTRECO

ovimix, a Serbian company that produces vitamin and mineral additives for animal food, signed a €20-million cooperation contract with the Dutch fodder manufacturer Trouw Nutrition International. The contract stipulates production of vitamin and mineral additives for fodder according to the Dutch company’s licence, with production expected to start in March 2010, Managing Director of Novimix Ivan Vujičić said. Novimix will put its Velika Plana-based factory at disposal during the project. The factory produces 25,000 tons of additives annually, and currently employs 15 people. “The plan is to create 50 new jobs in the sales department,” Vujičić added. He also outlined that in the following three years the company would produce a total of €20-million worth of goods that would be exported to Hungary, Bulgaria, and Romania, with plans to export to Croatia, Bosnia and Herzegovina, and Macedonia too. Source: Beta

Milica Bisic (left) and Nina Bulatović

KPMG: SUCCESSFUL RESULTS

uditing company KPMG achieved successful business results in 2009, with a profit increase of 7.3 percent year-on-year. Globally, the company recorded positive business results and profits of USD20.11 billion. This auditing company increased the workforce in Serbia by nearly 10 percent in 2009. “The year behind us was difficult, but we are glad that we managed to maintain service quality and provide proper advice to the largest companies on the local market. Based on an insight into business operations of the most prominent business entities, we believe that 2010 will be more stable for business. The end of the crisis is on the horizon, and the local market and consumers may soon feel the benefits of the visa-free regime and the implementation of the Interim Trade Agreement with the EU,” says Nina Bulatović, Senior Partner in KPMG. As a socially responsible company, KPMG last year provided its contribution to the local community where it operates. This auditing company is one of the strategic partners of the Association for the Support of Developmentally Disabled Individuals Stari Grad and continuously supports the organization of humanitarian creative workshops. KPMG also conducts a student workshops program. The most outstanding attendees have the opportunity to undergo an internship and get a job in this auditing company. Since 2006, more than 160 students have attended the workshops, including 26 who have been employed and 20 who have undergone internship in KPMG.

TERMINATED SALES CONTRACT

he Privatisation Agency has terminated the contract on sale of the Belgrade Beer Industry (BIP) with a consortium of companies Alita and United Nordic Beverages. The contract has been terminated due to the consortium’s failing to make the contracted investments (in the second year since purchase) worth €2.6 million, and due to failing to buy out shares, not paying taxes, and disposing of the company’s property contrary to contract stipulations. The Privatisation Agency also said that in line with the Law on Privatisation, the Share Fund will appoint an interim representative of the company’s capital, who will take over BIP’s management. Source: B92, Tanjug CorD 69 / March 2010 55

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RUSSIA

FIRST MAJOR DEAL WITH NATO

PARIS (AP) — France has agreed to sell Russia an advanced amphibious warship and is considering a Russian request for three more, French defense officials said. It would be the first major arms deal between Russia and a NATO member. French President Nicolas Sarkozy approved the sale of one Mistral assault ship after months of discussions, but then Russian naval officials submitted a request for three more, said Jacques de Lajugie, head of international development at the French arms agency DGA. “We are in the process of examining” this new request, de Lajugie said at a news conference, predicting a decision in the coming weeks. He said the new request came not at the “political level” but from the general staff of the Russian Navy. Among outstanding questions in the deal are where the Mistral would be built, de Lajugie said. No details about price were released. Possessing a Mistral, which can carry 16 helicopters, would significantly increase the Russian military’s capability to mount quick offensives. France sent a Mistral, which

weighs 23,700 tons (21,500 metric tons) and is 980 feet (299 meters) long, to visit St. Petersburg last year in a clear sign of interest in a potential sale. NATO members and Russia have had some small, country-to-country technology deals in the past but this would be the first sale of a major piece of equipment by a NATO nation to Moscow. The prospect of the deal has alarmed some ex-Soviet countries. “I believe that it’s not a good idea to sell such ship to a country that has occupied another nation’s territory,” Temur Yakobashvili, a Georgian cabinet minister for reintegration who is in charge of issues related to separatist regions, told The Associated Press in a telephone interview after the French announcement. The Mistral can anchor in coastal waters and deploy troops on land, a capacity the Russian navy now lacks. Russia’s

navy chief said last year that a ship like the Mistral would have allowed the Russian navy to mount a much more efficient action in the Black Sea during the Georgia-Russia war. He said the French ship would take just 40 minutes to do the job that the Russian Black Sea Fleet vessels did in 26 hours. Russia’s Interfax news agency had quoted naval first deputy chief of staff Vice Adm. Oleg Burtsev as saying the deal “is unlikely to happen in February or March this year, but work on the matter is continuing.” President Dmitry Medvedev visits France in March. Russia has been looking at similar ships made in Spain and the Netherlands.

GERMANY

THREATENING GOOGLE OVER STREET VIEW Germany says it’s considering legal moves to stop Google from offering its ‘street view’ service in Germany. The country’s consumer protection minister has warned of a ‘millionfold violation of privacy rights.’ Germany has warned internet giant Google that it might take legal action to prevent Google Street View from offering photos on the country’s cities and streets. The country’s Consumer Protection Minister Ilse Aigner told Focus magazine that she was considering “legal steps and possible changes to the law,” to prevent Google from publishing photos taken in Germany. Google’s Street View offers 360-degree pictures taken along streets in cities and towns across a country. The service is already available for the US, Britain, France and other countries. Aigner said she was considering reversing a 2009 settlement whereby individuals would 56 CorD 69 / March 2010

have to object should they not want to have their house or property photographed. Rather, Aigner suggested, it should be Google who has to seek permission from individuals to put their data online. The minister described the images on Google street view as “a millionfold violation of privacy rights.” “No secret service in the world would hunt for images in such a cavalier manner,” Aigner said. Google rejects the criticism, saying that it had been granted the permission to take the pictures under the 2009 settlement with the German authorities. The deal included a provision that licence plates and faces would be blurred and that any individual could object to the their photographs appearing online. Google says only some hundred people so far had objected. The internet company plans to make the street view service available later this year.

CHINA

DISNEY PLANE TO BUY CHINESE BUS ONLINE

A consortium led by Walt Disney Co is in advanced talks to buy into China’s largest in-bus digital media and advertising company, a deal that could offer the U.S. entertainment giant a new platform to promote Mickey Mouse in China, three sources told Reuters. more about the promotion of Disney, the brand itself, and this is strategically important to Disney in China.” In November, Disney’s made a breakthrough deal to build one of its signature theme parks in Shanghai, marking a major advance for Western media and entertainment companies seeking to crack the tough Chinese market. Senior executives of Disney are expected to fly to Beijing to meet Chinese media regulators to discuss Disney’s long-term development plan in China including the Bus Online deal, said another of the sources. Google was expected to take only a small stake in the Bus Online deal, while Disney aimed to

“To Disney, the deal is not just about sharing in the growth of China’s advertising market but more about the promotion of Disney, George Chen and Melanie Lee (Roiters) Google Inc, the world’s No.1 Internet search company, which threatened to quit China last month over censorship and hacking concerns, was among investors in the Disney-led consortium. The consortium planned to buy a stake of between 30 and 40 percent in Bus Online for more than $100 million via a purchase of old and new shares to be issued by the company in private placements, said the sources. “Disney wants to be a strategic partner not just a financial investor in Bus Online as Disney is going to do many things in China - for example, the theme park to be opened in Shanghai,” said one of the sources. “To Disney, the deal is not just about sharing in the growth of China’s advertising market but

take the greater part, said the sources, adding that no agreement had been signed yet. The sources briefed on the possible deal declined to be identified as the negotiation process is confidential. Bus Online, headquartered in Shanghai, declined to comment. Bus Online is China’s No.1 in-bus digital media and advertising company, with revenue of about 314.5 million yuan ($46.07 million) in 2009. Since 2004, the company has received a total of $80 million from venture capital funds and banks including IDG, Yangtze Fund, China Renaissance Capital Investment and CCB International. Bus Online is the exclusive partner of state broadcaster CCTV and the official Xinhua news agency for in-bus media content and advertising.

Canada’s Finance Minister Jim Flaherty (L), U.S. Treasury Secretary Tim Geithner, Britain’s Chancellor Alistair Darling and Japan’s Finance Minister Naoto Kan. Credit: Reuters/Chris Wattie

CANADA

GREECE WILL NOT SOOTHE GLOBAL INVESTORS

TORONTO (Reuters) - Investors are skeptical of assurances European finance ministers gave to their Group of Seven counterparts that the euro zone’s debt crisis is under control. William Schomberg The 16-country currency bloc is facing its biggest ever test after concerns about Greece’s huge public debt and deficits spread to several other euro zone countries, pushing the euro to a near nine-month low against the dollar. A sell-off of Greek, Portuguese and Spanish debt, which hurt global stock markets, pushed Greece’s debt woes onto the agenda of the meeting of Group of Seven rich nations’ finance ministers and central bankers in Canada’s remote north. European ministers told their G7 peers on Saturday 8th February, they would make sure Greece sticks to its budget-cutting plan. European Central Bank President Jean-Claude Trichet issued a statement to express confidence in that plan while U.S. Treasury Secretary Timothy Geithner said the Europeans “made clear to us they will manage this with great care.” CorD 69 / March 2010 57

B2B |

But analysts said Europe needs to go beyond words to restore confidence among investors worried about costly financial help for Greece to prevent a default that would upset the recovery in financial markets from the 2008 credit crisis. “What I think is needed is an agreement on behalf of the EU to provide further support for Greece to further ensure that it doesn’t default,” said Michael Woolfolk, senior currency analyst at Bank of New York Mellon. The cost of insuring the sovereign debt of Greece, Portugal and Spain against default hit record highs on Friday and investors demanded higher yields to buy bonds of other euro zone states. The idea of a Greek bailout by the International Monetary Fund was quashed at the G7 meeting by Jean-Claude Juncker, chairman the euro zone finance ministers’ group. Some investors saw that as a sign that Europe might be preparing financial support for Greece although European leaders would have to settle differences about setting a precedent for bailing out members of the euro zone. “The problem in Europe is that there is not a single Treasury secretary that will coordinate that,” said Axel Merk, president of Merk Investments in Palo Alto, California. Analysts at investment bank UBS said before the G7 meeting that an IMF rescue of Greece would be the best solution. “An EU bailout that is half-hearted in its fiscal assistance would damage the euro zone’s credibility even further,” they said. Under European Union law, member states cannot assume debt of other members. The EU’s options include: faster disbursement of regular aid to Greece; issuing debt backed by the full euro zone to give Greece a share of the proceeds; and the purchase by EU governments or by the European Investment Bank of Greek debt on the markets.

INVESTORS SHOULD BE MORE WORLDLY

NEW YORK (Reuters) - The most promising investment opportunities are increasingly found outside the United States, yet the vast majority of Americans place little stock in overseas markets. By Joseph A. GIANNONE That is a huge mistake, considering that China, India and other emerging markets promise superior growth, said Brent Ciliano, a portfolio strategist at Goldman Sachs Asset Management, who advises brokers and financial advisers on portfolio construction. “The world is massively global. It follows your portfolio should be what the world is,” he said. The facts should speak for themselves, Ciliano said: 70 percent of small-cap stocks are outside the United States; two-thirds of REITs are overseas; about 55 percent of global equities are outside the United States. Yet most U.S. investors have no more than 5 percent to 10 percent exposure to foreign markets, he said. Thanks to the slowdown in developed markets, and the expansion of Asian markets, the rest of the world will represent a bigger and bigger share of the global marketplace. Ciliano cited Ibbotson Associates research showing the U.S. share of the world’s financial markets could shrink to 30 percent by 2030, down from about 45 percent at present. It was as high as 70 percent in the 1970s. But Ciliano said the share held by other countries is increasing at a must faster clip now, which means the U.S. share could fall to 30 percent in just five years.

“International market capitalization relative to U.S. market capitalization is increasing faster than in the past,” he said. “The rate of change is accelerating.” Foreign exposure is a key part of a “core and satellite” diversified investing strategy that Goldman has promoted since the late 1990s. The strategy calls for surrounding a core portfolio with satellite assets -- emerging market stocks and debt, U.S. and global REITs, commodities, high-yield debt and international small-cap stocks -- as well as private equity, hedge funds and private real estate investments. Ciliano says this approach has generated higher returns with less volatile swings than the typical “balanced” portfolio of U.S. stocks and bonds. Ciliano said satellites and alternatives should comprise 15 percent to 20 percent of the overall portfolio. Some of Goldman’s largest clients have as much as 49 percent invested in satellites and alternatives, he added. Another key component of the Goldman approach, hedge funds, also is more accessible to retail investors through vehicles that replicate hedge fund returns. Since its debut in June 2008, the Absolute Return Tracker Fund has attracted $730 million in assets.

BA: £50M LOSS SMALLER THAN EXPECTED

British Airways has announced it made a pre-tax loss of £50m ($79m) in the three months to December 2009. This was down from the £122m it lost in the same period in 2008 and smaller than many analysts had expected. However, BA’s pre-tax loss in the nine months to December rose to £342m from £70m in the same period in 2008. BA is currently locked in a High Court battle with the union Unite over changes to cabin crew and is facing possible strike action. Analysts had predicted BA would announce a loss of £151m in the third quarter, taking its loss for the nine months to £443m. British Airways’ chief executive Willie Walsh said the figures were 58 CorD 69 / March 2010

representative of cost-cutting measures across the company. “Operating costs are down by 10.5% and show that we’ve adapted quickly to the new businesses realities created by the global recession. “We still expect to make record losses this year. Permanent structural change is being introduced in all areas and will return us to sustained profitability,” he said in a statement.

| INTERVIEW

Srđan Lazović, Director of Corporate and Regulatory Affairs for the East Balkans in British American Tobacco (BAT)

FAVOURABLE REGION FOR INVESTMENT Political stability followed by macroeconomics is a precondition for a successful operation for any investor, whether local or foreign he Club of Business Journalists of Serbia has established a new category in its traditional competition called ‘Companies and Personalities that Marked the Year,’ and that is ‘Best Young Manager.’ The first winner in this category is Srđan Lazović, Director of Corporate and Regulatory Affairs for the East Balkans in British American Tobacco (BAT).

the exchange rate is 90, 95, or 100 dinars as long as these oscillations do not vary too much.

What does award “Young Manager of the Year” in 2009 mean to you? This award means a lot to me because it is a landmark in my career. The fact that it comes from business journalists makes it all the more important. While being highly commendable, it is also an obligation to continue down the same path which others have acknowledged as a good one. I think that this award applies to my entire career – both to my present company and the ones I have worked for before, as well as to the Serbian Government that I started working for in 2002.

With all the funds invested in Serbia, is

n What are your activities within FIC in order to create a strong business climate for new foreign investors? Our aim is to create the most favourable climate possible highlighting the importance of the regulatory environment in Serbia.

How does BAT as a foreign investor rate

BAT satisﬁed with the results as yet? What are BAT’s business results in 2009 and what do you expect in 2010? Unfortunately not. Even six years after the privatization of DIV, BAT is not recording a profit. This is not making us happy, of course, and we want to turn this around as soon as possible. We think that the dynamics of the Serbian market are not adequate, so we’ll try, as much as conditions allow, to change this. Numerous factors have contributed to our company’s negative financial results in the past period. Some of them are internal, but the majority is external – extremely aggressive competition, negative foreign exchange rates, consumer down trading caused by the economic crisis, as well as the coming into force of CEFTA in 2008. This changed market dynamics to a great extent, for instance, it allowed free access to tobacco companies from the CEFTA region. Unfortunately, tobacco companies from Serbia did not receive the same treatment on the other regional markets, and this is something that must be changed. Despite this, we are full of hope and optimism that things will improve in 2010. We think that even after 6 years and 115 million € invested in Serbia, it is absolutely legitimate to expect that BAT will start operating at a profit and paying off its not so insignificant investment.

the business climate in Serbia? Political stability followed by macroeconomics is a precondition for a successful operation for any investor, whether local or foreign. Therefore, we are concerned about the dinar exchange rate and its daily oscillations. It does not matter whether

Do you encounter problems in marketing your products in the region and have any of your markets been closed? There had been stiff competition in the Serbian tobacco market even before CEFTA came in-

The jury describes you as an ambassador for the Serbian economy. How do you feel about that? As a major investor, BAT is often invited to talk about its experience at numerous forums abroad. Whenever we had the opportunity, we gave our best to represent Serbia as a favourable region for investment and a good market with a generally favourable climate for foreign investors. That entails constant hard work on improving the investment climate in Serbia at the Foreign Investors Council given that BAT is one of the founders of the Council and a member of the Board of Directors.

to force more than two years ago. The application of CEFTA rendered Serbia an equal ground for all cigarette manufacturers whatever their country of origin. On the other hand, the rules that equally apply to both foreign and domestic cigarette manufacturers are not being enforced abroad. There are three major global tobacco manufacturers operating in Serbia which gives Serbia right to perceive its tobacco industry as very substantial. With respect to its export potential, which is undoubtedly substantial, it should be primarily focused on CEFTA countries. However, we cannot talk about better export until better conditions are introduced into country. In order to solve this problem and to encourage tobacco industry export potential, the Serbian Government must help Serbia through bilateral relations with the countries in the region where there is still a problem regarding Serbian tobacco product placement.

In 2010 CEFTA (Central European Free Trade Agreement) gave Serbia a mandate to carry out. What are your expectations regarding this fact? We think that the Serbian Government could be more agile insisting on abolition of any kind of discrimination that exists in the markets of CEFTA countries within the CEFTA committee and Secretary. We sincerely hope that this would be one of the Serbian Government’s top priorities since Serbia is the presiding CEFTA country in 2010. It should provide equal treatment to all Serbian tobacco producers in the markets of the CEFTA region. CorD 69 / March 2010 59

EURO 2012 QUALIFIERS DRAW |

ANTIC’S EAGLES TO The draw for the qualifying section of Euro 2012 was made and it threw up a few tough groups that the likes of England, Holland, Germany, and France should negotiate but will ﬁnd the going difﬁcult. Serbia football team have been placed in Group C of the UEFA Euro 2012 qualifying competition, together with the teams of Italy, Northern Ireland, Slovenia, Estonia and the Faroe Islands.The main event takes place between 8 June and 1 July in Poland and Ukraine 60 CorD 68 / February 2010

ifty-one countries entered the draw, with duel host nations, Poland and Ukraine, waiting for them in the finals. The groups will be contested across the usual league system on a home-and-away basis, with all matches scheduled between September 2010 and October 2011. The nine winners and the runner-up with the best record against the top fie teams in their group will join the two hosts in the finals. The eight remaining runners-up go into play-off matches in November 2011 to decide the final four sides to join co-hosts Poland and Ukraine, making it 16 teams who will battle for Spain’s title.It’s worth noting that Euro 2012 will be the last European Championships with 16 teams, as form Euro 2016 the tournament will be expanded to 24 teams after the Scottish and Irish Football Associations raised the issue of expansion in a recent meeting. As it stands, France, Italy, and Turkey are competing to host the tournament. But back to the present. The draw was made in Warsaw and the road to Euro 2012 can finally begin. To see a UEFA simulation of the draw click here.

GROUP A Germany, Turkey, Austria, Belgium, Kazakhstan, Azerbaijan roup A has Germany as favourites and top seeds. But they will pretty much have to face six derby’s after being drawn with local rivals Austria and Belgium , as well as having to face Turkey, who have massive representation in Germany. Kazakhstan and Azerbaijan will make up the group, but in reality neither have a chance of qualification. The German’s should top the group even though their matches against their three rivals will be tight affairs as the Kazakh’s and Azerbaijani’s are likely to take points off the unprepared. Belgium could cause a few shocks, especially as they have a brilliant youth system about to blossom. Winners: Germany / Second: Belgium

“We are very pleased,” said Azerbaijan coach Vogts. “We’ll get a lot of money from the games against Germany, which means we can built more stadiums and invest more money in youth training. We’re happy to be able to play against the great Germans, from whom we can learn a lot. We know we’ll have to work on our game, but we’re on the right track.”

CHALLENGE ITALY GROUP B Russia, Slovakia, Republic of Ireland, FYR Macedonia, Armenia, Andorra Group B is one of the most wide open. Russia are top seeds but will have to face Slovakia, as well as a trip to Lansdowne Road when they play Ireland. There is not much between these teams and while the Russians will be favourites, the Slovak’s and Irish will fancy their chances of either sneaking the group of taking the best runner up spot that would also guarantee qualification. Macedonia, Armenia, and Andorra will make up the rest of the group, with the Macedonian’s in particular likely to cause some upsets. Winners: Russia / Best runners-up: Ireland

Russia coach Guus Hiddink was saddened that UEFA had been forced to keep apart former Soviet states. “I’m a sportsman and it’s always a pity when countries are separated for non-sporting reasons,” the former Netherlands, South Korea and Australia coach told reporters after the draw. “I’m not a politician.” GROUP C Italy, Serbia, Northern Ireland, Slovenia, Estonia, Faroe Islands Group C will be carved up between Italy and Serbia. No one else in this section has a chance of topping the group and it is very likely that it could come down to goal difference, even at this early stage of predictions. Northern Ireland, Slovenia, and Estonia will all hope that each other takes points off one of the big two while they capitalise on the situation. The truth of the matter is that they are all evenly matched are are more likely to damage each others seeding for the next World Cup draw. The group is finished off by Brian Kerr’s Faroe Islands. They’re guaranteed to finish bottom but should take

vital points off the less experienced teams. Winners: Italy / Second: Serbia

Italian coach Marcello Lippi who did not attend the draw, said: “‘Italy have a balanced group with Serbia and Slovenia, both of which will compete in the World Cup.” The 61-year-old added: “There is also the benefit of being in a group of six teams, other groups are more difficult, like that of England.” GROUP D France, Romania, Bosnia-Herzegovina,Belarus, Albania, Luxembourg Group D will be tough to call, especially if Raymond Domenech holds onto his job past South Africa. It’s most likely that he will be replaced by Laurent Blanc by the time the Euro’s start so expect a new look French team to take the battle to their rivals. Even with their recent lack lustre displays, France are easily the strongest team in this weak looking group. Romania will have a lot to do to finish sec-

ond never mind win the group. Bosnia-Herzegovina are improving and will look to take advantage of Romania’s demise over the past couple of years. Belarus, Albania, and Luxumbourg will make up the group and none of the leading teams will fancy needing to take points in these hard to go places, with the exception of Luxumbourg. Winners: France / Second: Bosnia Herzegovina GROUP E Holland, Sweden, Finland, Hungary, Moldova, San Marino Group E is possibly the toughest the call. Holland are joined by Sweden, Finland, and the improving Hungary. Moldova and San Marino make up the make-weights of this nasty looking group. Holland are very dependent on Robin van Persie and will be hoping that the Arsenal star will be fully recovered from his injury problems come September never mind next June. If fit, the Dutch are easy favourites. Without him, they could be exposed by the Swedish. Sweden are really Holland’s only rivals, but they themselves could be overtaken by Hungary in particular if they are off form. Winners: Holland / Second: Sweden

Spain’s players will be seeking to repeat their success of 2008. CorD 68 / February 2010 61

EURO 2012 QUALIFIERS DRAW | GROUP F Croatia, Greece, Israel, Latvia, Georgia, Malta Group F is probably the weakest group on show. Croatia are no great shakes and are the type of team who can all too easily be put off their game. For that reason almost every team in this hardest to call group has a chance. Greece are always tough to beat, but don’t score enough. Israel score their fair share, but drop silly points. While Latvia and Georgia will both be looking to finish second. Poor old Malta finish out the group, but on their day they can be difficult to beat, especially in the heat of Valetta. Winners: Greece / Second: Israel GROUP G England, Switzerland, Bulgaria, Wales, Montenegro Group G is the first of three five team groups, and as such will be at a major disadvantage in chasing that coveted best runner up spot. England are easy favourites, but will have to work to qualify. Switzerland and Bulgaria are the immediate threats but should not trouble England in the slightest. The hard working Swiss will perhaps show the biggest threat over the Dimitar Berbatov led Bulgarian’s. Actually, England’s most difficult matches should be against John Toshack’s young Wales. Fixture negotiation will be key in ascertaining the Welsh threat in this group, but Wales could finish second and improve their seeding. Montenegro are the worst possible fifth seeds England could have drawn. More than capable of putting it up to the group favourites, they will fancy their chances of causing a major upset

62 CorD 68 / February 2010

The greatest Polish player, Zbigniew Boniek, and Andriy Shevchenko conducted the draw and finishing second. Winners: England / Second: Switzerland

The Wales manager John Toshack said: “Without doubt, drawing England will please all the Welsh fans – plenty of history there and we like nothing better than another chance against the old enemy GROUP H Portugal, Denmark, Norway, Cyprus, Iceland Group H is the group of death before the group of death. Denmark , Portugal, Norway, and Cyprus will be joined by Iceland in a group where every team is capable of taking points off each other. Portugal will probably start as favourites but that will not frighten any of their rivals. Denmark won’t fear them, neither will Norway or Cyprus who improve with every qualifying campaign. The fact that the group is made of five teams means that there is almost no room for error. For that reason I expect the well drilled Dane’s to progress. Winners: Denmark / Second: Portugal

GROUP I Spain, Czech Republic, Scotland, Lithuania, Liechtenstein Group I sees current champions Spain face the Czech Republic , Scotland , Lithuania , and Lichtenstein. Qualification as best runner up is practically impossible in this of all groups as it’s likely to be so tight, as all the five team groups seem to be. Spain will qualify easily so that leaves a straight up battle for second. Scotland are about as poor as they have ever been. The Czech Republic are getting worse every year and Lithuania are no great shakes. At home all three will be formidable but they will drop points away. It’s all a matter of who will hold their nerve when it’s needed most. Winners: Spain / Second: Lithuania

Spanish coach Del Bosque welcomed the fact that the his side will play less matches,“We are facing teams that are not in the World Cup, but nowadays in football there is very little difference between sides

CULTURE CALENDAR

even simply ...wow! These are the words that typically fall from the lips of fans after a Rammstein concert. When the band continues its European tour in 2010, it’s guaranteed to be no different, because it will be a kick-ass show complete with pyrotechnics.

Marija Misita, violin. Natasa Mitrović, piano Program- Schubert, Tchaikovsky, Sent-Sans, Gershwin

8 March, 20:00 / Great Hall Nebojsa Maksimović, piano. OrganizationJugokoncert, Faculty of Music

11 March, 20:00 PLAVI ORKESTAR 27 March, 20:30 / Belgrade Arena Plavi orkestar, one of the most popular bands from the former Yugoslavia, was founded in Sarajevo, Bosnia and Herzegovina in 1983.

POP, ROCK

Concert- Music School ‘Stanković’

13 March, 20:00 / Great Hall Belgrade String Orchestra ‘Dušan Skovran’ Soloist- Anika Vavić, piano

15 March, 20:00 / Great Hall Concert- Music School ‘Mokranjac’

17 March, 20:00 Concert- Music School ‘Vojislav Vučković’

20 March, 20:00

VLADA DIVLJAN & NEVLADINA ORGANIZACIJA 08 March, 20:00 / Dom Sindikata Vladimir “Vlada” Divljan is a Serbian singer and songwriter, known best as front man of the former Yugoslav rock band Idoli, and as a musician with a long, successful solo career.

GORAN KARAN Sava Center, Great Hall / 08 March, 20:30 Popular Croatian singer born in Split, with his powerful and refined tenor voice and songs with strong Dalmatian influence.

ANAHÍ 10 March, 21:00 / Belgrade Arena Anahí Giovanna Puente Portilla, better known as Anahí (born 1983), is a Mexican actress and singer. She began her career as a child participating in several television series and movies, several of which earned her awards such as the Ariel Award and the Palme d’Or. She gained international fame after being cast as Mia Colucci in the hit Mexican soap opera Rebelde, and as a member of the Latin Grammy-nominated pop group RBD.

RAMMSTEIN 20 March, 20:00 / Belgrade Arena Rammstein Tour 2010 kk3 Bombastic. Mind-blowing. Awe-inspiring. And sometimes 64 CorD 68 / February 2010

CLASSICAL MUSIC MUSIC MARATHON: FREDERICK CHOPIN Belgrade Cultural Center / 1 March, 12:00 – 00:00 On the occasion of 200 years of Frederick Chopin’s birth March 1st Programme of the concert consists of nocturnes, waltzes, preludes, etudes, sonatas, ballads...

ANA SINICKI, MEZZO-SOPRANO AND NEMANJA BOGUNOVIĆ, GUITAR Guarnerius Art Center / 11 March, 20:00 An evening of Spanish, Italian, French, Russian, and Serbian songs. Program: Schubert, Rossini, Bizet, Giuliani, Glinka, Dvorak, Obradors, Masne, Babić, Krstić

TRANSYLVANIAN PHILHARMONICS 15 March, 20:00 / Sava Center, Great Hall 200 years of the birth of Frédéric Chopin Program. Chopin – Piano Concertos JEAN-FRANCOIS ANTONIOLI, conductor LUDMIL ANGELOV and DEJAN SINADINOVIĆ, pianists

CONCERTS IN KOLARAC HALL IN MARCH 3 March, 20:00 / Great Hall Aleksandar Madžar, piano. Program- Chopin

7 March, 20:00 / Great Hall

Opening of the XL INTERNATIONAL COMPETITION JEUNESSES MUSICALES BELGRADE

22-30 March VIOLONCELLO Symphonic Orchestra RTS. ConductorBojan Sudjic. Soloists- Mineo Hayashi, violoncello. Enrice Gereg, piano

BELGRADE PHILHARMONIC ORCHESTRA IN MARCH All concerts are in Kolarac Hall at 20:00 05. 03. 2010. / Blue Cycle Conductor: Irwin Hoffman. Soloist: Hagai Shaham, violin. Program:H. Berlioz: Corsair overture. J. Hubay: Violin concerto P. I. Tchaikovsky: Symphony No. 6 (Pathetique)

12. 03. 2010. / Red Cycle Conductor: Uros Lajovic. Soloists: Miroslav Pavlovic, Ksenija Milosevic, violins. Maja Bogdanovic, violoncello. Program:T. Ibragimova: Faraway Voices. B. Yusupov: Concerto for violoncello and orchestra A. Copland: Symphony No. 3

19. 03. 2010. / Blue Cycle Conductor: Fabrice Bollon. Program: F. Bollon: Concerto Viderunt Omnes for DJ and orchestra. J. Sibelius: Four Legends Lemminkainen op. 22

BALLET CARMEN SUITE Great Hall / 20 March Title role: Svetlana Zakharova. Sponsored by the Serbian Ministry of Culture. Svetlana Zakharova (born in 1979), prin-

cipal dancer with the Bolshoi Ballet and the Teatro alla Scala, is widely considered among the greatest living ballerinas today and reportedly commands among the highest fees of any ballet dancer, after Sylvie Guillem and Diana Vishneva.

EXHIBITIONS AND THERE WAS LIGHT... Natural History Museum Gallery Mali Kalemegdan 5 / Until April 24th The first exhibition of rocks and minerals created by the Belgrade Natural History Museum in this century. The exhibition displays various items- different minerals, diverse in their beauty, size, and shapes, precious and semi-precious stones, volcanic stones… All items exhibited are part of the oldest collection of the Belgrade Natural History Museum, Department of Mineralogy - Petrology.

1987 and completed postgraduate studies in 1990.

FILM ALICE IN WONDERLAND 02 March, 20:00 / Sava Center, Great Hall Director: Tim Burton. Cast: Johnny Depp, Mia Wasikowska, Anne Hathaway, Helena Bonham Carter, Crispin Glover. Genre: fantasy / adventure. Nineteen year-old Alice returns to the magical world from her childhood adventure, where she reunites with her old friends and learns of her true destiny: to end the Red Queen’s reign of terror. Based on the book by Lewis Carroll

ANA KNEZEVIC - INSTALLATION Gallery HAOS, Dositejeva 3 Until March 13th In 2009 she presented her light/sound/video installation “The Messenger of Light,” commissioned for the 25th Universiade by Belgrade’s Nikola Tesla Museum, for the 153rd anniversary of Nikola Tesla’s birth.

DOBRICA BISENIĆ - DRAWINGS Gallery Kolarac, Studentski Trg 5 Until March 14th Dobrica Bisenic, born in 1962, graduated from the Faculty of Fine Arts in Belgrade in

FEST FILMS IN BELGRADE CINEMAS IN MARCH Baaria Directed by Giuseppe Tornatore. StarringFrancesco Scianna, Margareth Madè, Raoul Bova, Giorgio Faletti, Leo Gullotta

Chanel Coco & Igor Stravinsky Directed by Jan Kounen. Starring- Anna Mouglalis, Mads Mikkelsen

Valhala Rising DAYBREAKERS KK9 From March 10th

Directed by Nicolas Winding Refn Starring- Gary Lewis, Jamie Sives

Invictus Directed by Clint Eastwood. StarringMorgan Freeman, Matt Damon. In his first term as South African President, Nelson Mandela initiates a unique venture to unite the apartheid-torn land: enlist the national rugby team on a mission to win the 1995 Rugby World Cup

DALI IN LA FONTAINE’S WORLD 1 March- 23 March French Cultural Center Salvador Domingo Felipe Jacinto Dalí was a prominent Spanish Catalan surrealist painter born in Figueres in 1904. (He died in 1989.) The exhibition presents 11 Dalí illustrations of 11 of La Fontaine’s fables.

As homicide detective Thomas Craven investigates the death of his activist daughter, he uncovers not only her secret life, but a corporate cover-up and government collusion that attracts an agent tasked with cleaning up the evidence

Life during wartime Directed by: Michael & Peter Spierig Starring- Ethan Hawke, William Dafoe, Sam Neill .In 2019, a plague has transformed almost the entire human race into vampires. Faced with a dwindling blood supply, the fractured dominant race plots their survival. Meanwhile, a researcher works with a covert band of vamps on a way to save humankind

LEAP YEAR From March 18th

Directed by Todd Solondz. Starring- Ciarán Hinds, Ally Sheedy, Allison Janney, Paul Reubens.

Shutter Island Directed by Martin Scorsese. StarringLeonardo DiCaprio, Mark Ruffalo, Ben Kingsley, Michelle Williams and Max Von Sydow

Men Who Stare at Goats Directed by Grant Heslov. Starring- George Clooney, Ewan McGregor, Jeff Bridges, Kecin Spacey. Comedy

A Serious Man

Directed by Anand Tucker. Starring- Amy Adams, Matthew Goode, John Lithgow, Adam Scott. Romantic comedy A woman with an elaborate scheme to propose to her boyfriend on Leap Year’s Day, an Irish tradition which occurs every February 29th, faces a major setback when bad weather threatens to derail her planned trip to Dublin.

THE EDGE OF DARKNESS From March 25th Directed by Martin Campbell Starring- Mel Gibson, Ray Winstone, Danny Huston, Bojana Novaković.

Directed by Ethan Coen and Joel Coen Starring- Adam Arkin, Michael Stuhlbarg, Fred Melamed, Richard Kind, Aaron Wolf, Sari Lennick CorD 68 / February 2010 65

CULTURE

NEWS

ZUBIN MEHTA IN KOLARAC

set up a foundation for the acquisition of instruments that bears his name, run under the auspices of the Belgrade Philharmonic Foundation. Last year, Mehta lent his support to the Philharmonic at the time when the orchestra was going through a financial crisis. The conductor is the recipient of many awards and acknowledgments. He was inducted into the Legion of Honour in 2001 by French President Jacques Chirac, and was awarded by the United Nations in 1999 for his life- long contribution to peace and tolerance.

POLITICAL PHOTOGRAPHY IN CERVANTES KV4

amed conductor Zubin Mehta held two concerts with the Belgrade Philharmonic in Kolarac Central Hall in Belgrade on February 21st. The interest shown for the two concerts was huge indeed, with the celebrated conductor and the orchestra performing Brahms’ Symphonies No. 1 and No. 4. Zubin Mehta donated his entire fee for both concerts to the Belgrade Philharmonic Foundation, of which he has been honourary president for the past five years. During his stay in Belgrade, Mehta also promoted his autobiography, ‘The Score of My Life,’ which was translated into Serbian and published by the Belgrade Philharmonic. Mehta was born in Mumbai (India) in 1936, and, at the age of 18, he left for Vienna to study composing and conducting. His global career began after he won the International Conductor Competition in Liverpool in 1958. Since then, Mehta has been conducting over 180 concerts annually.

His Belgrade conducting debut took place some 50 years ago, at the very beginning of his career. During his last stay in Belgrade in 2005, the conductor 66 CorD 68 / February 2010

n February, The Cervantes Institute and Spanish Embassy in Serbia put together an exhibition of photographs called ‘Views of History – from the Constitution to the Present.’ The exhibition is staged in honour of Spanish presidency over the European Union and is made up of 70 stills depicting the most important political events in Spain and scenes from the Spanish Parliament from the 1978 Constitution to the present. Over half of the photographs have never been exhibited or published anywhere before. The most prominent Spanish and world photographers captured the significant moments in Spanish history with dignitaries like the Spanish king and queen, former Prime Minister José Maria Aznar and current Prime Minister José Luis Rodríguez Zapatero. Some of the photographs carry quite a historical value, such as the one depicting members of the Constitutional Commission in the Hotel Parador de Gredos in Avila, taken by one of the waiters,

or a photograph of the charismatic secretary general of the Communist Party, Dolores Ibaruri (nicknamed ’La Pasionaria’), and poet Rafael Alberti.

THE JUBILEE OF MEŠA SELIMOVIĆ

t the beginning of February, the Serbian Ministry of Culture announced that it had formed a Committee for the Celebration of the Centenary of the Birth of Writer Meša Selimović. The Committee, with Minister of Culture Nebojša Bradić at its helm, will devise celebration activities. Other committee members are Special Advisor to the Minister, Zoran Hamović; academic Predrag Palavestra; Drama Director in the National Theatre, Ivana Dimić; Director of the Museum of Theatre Art, Ksenija Radaković; Editor-in-chief of the Večernje Novosti daily, Manojlo Vukotić; and Director of Radio and Television of Serbia, Nikola Mirkov. The celebrated Serbian author, Meša Selimović was born on April 26th, 1910 in Tuzla. His most famous book is certainly the classic ‘Death and the Dervish,’ published in 1966. Meša Selimović also wrote ‘Pro et Contra Vuk,’ ‘Fortress,’ ‘The Island,’ and ‘The Circle.’ He was president of the Yugoslav Writers’ Association, was awarded with an honourary Ph.D. from the University of Sarajevo, and was a regular member of the Academy of Science of Bosnia and Herzegovina and the Serbian Academy of Science and Arts. Selimović received the NIN award for ‘Death and the Dervish’ in 1967. He died in Belgrade, on July 11th, 1982.

BEST PHOTOGRAPHERS IN 2009 KV5 I 6

ccording to the Belgrade-based Status magazine, the author of the best journalistic photograph of 2009 is Marko Risović, born in 1981. Risović is an official photographer of the ‘Na Dlanu’ web portal and an associate photographer for many Belgrade magazines. Marko Risović is known for having strong personal poetics and has been already awarded for his classic documentary photography. Status magazine gave him a prize for a photograph taken

at last year’s World Student Games (Universiade). Second place went to Rade Prelić, and third to Sanja Knežević.

today’s world and especially against international corporations. Hair’s musical score has been translated into Serbian, with music backing provided by a Belgrade band, Vroom. Mojca Horvat from Slovenia is the musical’s choreographer.

SERBIAN INSTRUMENTS IN BRUSSELS

All awarded photographs were showcased at the exhibition titled ‘People with Their Eyes Open’ in the O3one Gallery in Belgrade. Status magazine also bestowed the ‘Personality of 2009’ award to swimmer Nađa Higl. Brankica Stanković, B92 journalist and author of the television programme ‘Insider,’ was declared best journalist of 2009.

‘HAIR’ IN ATELJE 212 KV 2 I 3

he updated version of the famous Broadway musical ’Hair,’ now placed in contemporary times and dealing with global problems, had its premiere in Belgrade’s Atelje 212 on February 3rd.

The new Hair, a celebrated musical by James Rudd and Gerome Ragni, was directed by Kokan Mladenović, with main roles played by Sergej Trifunović, Branislav Trifunović, Gordan Kičić, Ivan Jevtović, Jelena Gavrilović, Katarina Žutić, Feđa Stojanović, Dara Džokić, Tatjana Bošković, Nenad Ćirić, and Gorica Popović. The cast also included many young and upcoming actors, singers, and dancers. The 1960s post-war spirit of rebellion has been replaced with a new feeling of anti-globalism. In this version of ‘Hair,’ young people are rebelling against growing social gaps in

The Museum of Musical Instruments in Brussels now has several traditional Serbian instruments on display. This donation was initiated by the Serbian Embassy in Brussels and the Ministry of Culture, where a lecture on Serbian traditional instrumental music was given on February 6th. A concert was also held on the same day using these traditional instruments, and several workshops about the craftsmanship that goes into the making of such instruments were held. The ceremony regarding the donation took place February 5th and was attended by Serbian Minister of Culture Nebojša Bradić, Serbian Ambassador in Brussels Radomir Diklić, Belgian Minister for the Self-employed Agriculture and Science Policy (SMEs), Sabine Laruelle, and Director of the Royal Museum of Arts and History of Belgium, Anne Cahen Delhaye. An ethno-music expert, Dimitrije Golemović, the exhibition’s author, presented the history of the use and types of these instruments, while musicians Žorž Grujić and Zoran Bogdanović held a concert with the Serbian traditional instruments (single and double flute, ocarina, mouth harp, bagpipes, gusle etc.)

THE 7TH NORDIC PANORAMA

or the seventh consecutive year, the Balkankult Foundation organized ‘A Nordic Panorama’ film festival. The event took place in mid-February, and Belgrade audiences were able to see 35 documentary and short films from north european countries. This year’s programme was put together by Jing Haas from Kopenhagen-based Filmkontakt Nord and film

director Milan Malešević. The 7th Nordic Panorama is based on the 20th Nordic film festival – ’Nordisk Panoram’ (Five Cities Festival) which took place in Reykjavik in September 2009. The Reykjavik festival showcased films made by young authors, as well as established ones. A total of 35 films were shown in Belgrade – 14 short feature films, 9 documentary films, 8 animated features, and 4 experimental films. The film called ‘Anna,’ which opened the Festival, was also declared the best Nordic short film last year, while ‘Elkland’ was given the student Oscar for the best foreign film. A film called ‘Strays,’ which received the International Federation of Film Critics prize in Cannes, got a special award, and ‘English Lessons’ was awarded at the festival in Tampere.

PROTECTION OF WRITTEN COPYRIGHT

he Organization for Protection of Written Copyright is due to be established in Serbia in the spring of 2010, with the approval of the Institute for Intellectual Property. The decision to form the Organization was announced by an advisor to Serbian Culture Minister Zoran Hamović at a seminar called ‘Reprography in Serbia,’ held in the Institute for Study in Cultural Development in Belgrade. Hamović warns that the biggest problem in this area (copyright pertaining to written work) is the sale of photocopied university textbooks and pirated e-books. Olav Stokkmo, the new secretary general of the International Federation of Reproduction Rights Organisations (IFRRO), said that although the issue was well regulated in Serbia, the relevant laws were not implemented in adequate manner.

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CHILL OUT

SCARLETT JOHANSSON attends Dolce and Gabanna: The Make-up launch held at Selfridges department store in London.

JENNIFER ANISTON is organising a screening of The Last Station in aid of Haiti. The Friends star will host the benefit her rep confirms. Tickets range from $100 to $50,000, with proceeds going to disaster relief agency AmeriCares. Guests will also be treated to a cocktail reception with the movie’s director Michael Hoffman. Jennifer, 40, has donated $500,000 to Doctors Without Borders, Partners In Health and AmeriCares to help earthquake victims.

French President NICOLAS SARKOZY and his wife CARLA BRUNI-SARKOZY take a dip below the villa belonging to Carla’s family on the secluded promontory of Cap Negre.

VICTORIA BECKHAM the wife of the most famous football player David Beckham, now playing with AC Milan, frolicks in the Malibu Beach waves with son Cruz.

PRESIDENT OBAMA’S VACATION HOME: A Victorian house is the centerpiece of the 28-acre Blue Heron Farm on the island of Martha’s Vineyard, Massachusetts. The compound recently served as the vacation getaway for the nation’s first family.

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ANDY MURRAY, world’s tennis number three, has reportedly bought a new €6.3 million house boasting a triple garage, a cinema and a jacuzzi but no tennis court. Murray, 22, is to move from his riverside apartment in Wandsworth, south London, for the mockRegency home in Surrey. He is expected to share the home with his girlfriend, Kim Sears, 21, an English student at Sussex University. Murray’s new neighbours will include John Terry and Didier Drogba, who both play for Chelsea.

CHILL OUT

GABOUREY SIDIBE, the untrained actor who is drawing serious Oscar buzz for her acclaimed performance in the ghetto drama Precious, is suspicious of the media’s obsession with her body. The 26-year-old New Yorker is aware that she doesn’t fit the Hollywood mould.“It’s something I’ve had to work at. My first diet started when I was six years old,” Gabby said. “I’ve never been a small girl. One day I had to sit down with myself and decide that I loved myself no matter what my body looked like and what other people thought about my body.” She said that she was 21 or 22 when she finally became comfortable in her own skin. “I got tired of feeling bad all the time. I got tired of hating myself.”

A bold aerie overlooking los angeles for the pop star SIR ELTON JOHN and his partner, DAVID FURNISH new apartment. “After the initial walk-through, Elton never sees a project again until it’s finished,” explains Furnish, “which, of course, puts pressure on everybody. The first time we visited this apartment, he didn’t like much of anything. So when he finally saw the finished product, he couldn’t believe it was the same apartment. His jaw hit the floor.”

Seven-time world champion MICHAEL SCHUMACHER, who is returning from retirement, was taking part in a threeday session testing a GP2 car as well as his fitness ahead of the 2010 F1 season beginning in March. Official Formula One testing does not begin until February 1 in Valencia, but Schumacher has been given approval from international motorsport federation FIA to drive the GP2 development car. The tests come three weeks after the 41-year-old German announced his return to Formula One racing with the new Mercedes GP team after three years in retirement.

Albanian GJONARIN GJINI, 27, sits at the wheel of a F1 McLaren-Mercedes racing car carved in stone by his younger brother Alfred at a workshop in the village of Tresh in northern Albania, some 70 km (44 miles)

SIR PAUL MCCARTNEY’S SON JAMES is keeping the family trade alive by going on his first ever tour with songs partly inspired by The Beatles. The 32-year-old multi-instrumentalist played a handful of concerts in October last year under the pseudonym Light in a bid to distance himself from his world-renowned father. McCartney, who is the son of Sir Paul and his first wife, photographer Linda McCartney, is playing a string of gigs to showcase what are billed as ‘’melody-driven, hook-laden anthems that show songwriting clearly runs in the family’’.

Heavyweight WLADIMIR KLITSCHKO has finally made his relationship with HAYDEN PANETTIERE public. The 33-year-old boxing world champ and the ‘Heroes’ actress (20) had their first outing at the Best of Musical Gala 2010 in Hamburg. “I am happy,” revealed Wladimir when he was asked about his new girlfriend. She is 13 years younger – and that’s not the only difference. He weighs 109 kilos, she just 50 and at 155cm, she’s 43 cm smaller than him. CorD 68 / February 2010 69

PANNONIAN NOAH’S ARK VOJVODINA FARMSTEADS

The Vojvodina farmsteads (salaš is a typical local farmstead or grange farm, derived from the Hungarian word szallas) are islands on the plain, the vast expanse of the Vojvodina flatland used to be divided into farmsteads – or wealthy self-sufficient country economies.They consisted of fields of wheat and corn, a main residential building, a guesthouse and special servants’ quarters, auxiliary buildings, a separate area for drying and smoking meat, a warehouse, corals, barns, stables, pigsties and chicken houses. Usually, a salaš would have a large living room, a spacious kitchen and pantry. Behind the kitchen, protected by the same roof, one could ordinarily find a horse stable and a cattle shed. Nowadays, however, following a long hiatus, we are witnessing a renaissance of sorts of the salaš.Today, salaš’s are being revived as salaš restaurants and salaš-motels, complete with electricity and running water, while Vojvodina’s tourist offer has discovered the guest rooms of old country manors that still boast old furniture and maintain the scent of quince and freshly-washed linen.

THE RABBIT FARMSTEAD - Krčedin Address: Krčedin, 7, Uče Zeljkovića; Tel/fax: 022/500314, 064/641-55-75; 064/635-92-01; e-mail: office@zekinsalas.com; web: www.zekinsalas.com

n the centre of Krčedin near St. Nikola Church lies a one-acre farmstead with an ethno-restaurant and a one-of-a-kind Rabbit Museum with the Guvno Gallery. The farmstead is ideal for business meetings, presentations, and seminars. The restaurant can seat 150 people and has a summer garden (seating 300). The small Guvno square is suitable for concerts, theatre plays, ethno events, and similar. Old-style, nearly- forgotten meals are served here with typical Srem hospitality. The Rabbit Museum is a permanent exhibition inspired by and dedicated to rabbits. The exhibition’s author is the academic painter, Nikola Džafo. Work hours are 11:00 a.m. to 11:00 p.m., except Mondays, with a ‘tamburica’ orchestra playing on Thursdays, Fridays, Saturdays, and Sundays. 70 CorD 68 / February 2010

THE ČUVARDIĆ WINE FARMSTEAD - Kelebija Adress:139, Put E. Kardelja, Kelebija; Tel/fax: 024/515-720; e-mail: jutkic@yahoo.com; web: www.visitsubotica.rs

he Čuvardić wine farmstead is situated on an old family vineyard, just beneath two ancient linden trees. The farmstead is a warm, cozy place that offers older and newer wines. Smaller groups of visitors are required to call in advance, and the farmstead offers excellent traditional dishes. It is located near the exit to Subotica, on the left side of the road in the direction of the Kelebija border crossing.

CAPRIOLO - Bačka Topola Address: Salaš 264, Bačka Topola; Tel/fax: 024/712-055; e-mail: info@capriolo-restoran. co.rs; web: www.capriolo-restoran.co.rs

he Capriolo Farmstead (or Farmstead 264) is situated near Bačka Topola and radiates a charming family atmosphere. The farmstead is the ideal place for relaxation and recreation, and guests can take long walks around the fish pond. They can also relax in beautifully furnished rooms or unwind in one of the farmstead’s saunas. The farmstead’s restaurant has a lovely, warm atmosphere, a traditional Vojvodinian clay furnace, and serves classic Vojvodinian dishes.

THE VIŠINKA ART FARMSTEAD - Sombor Address: Gradina 83, Sombor; Tel/fax: 063/554-694; e-mail: yovanka@sezampro.rs

he Višinka Art farmstead is located in the farmstead village Gradina, some five kilometers from Sombor near the bicycle track Panonian Peace Road, in close proximity to the Great Bačka Channel. The farmstead was built in 1925, and, in 2007, it was reconstructed and adapted to suit its new purpose – a painting studio. The farmstead is now owned by painter Jene Višinka. In the farmstead, visitors will be able to see a collection of ethno pieces like hand-painted furniture and an exhibition of art paintings and souvenirs, which are for sale. The farmstead also has a children’s playground and it is ideal for relaxation, meeting friends, or hosting painting colonies and workshops. Visitors need to call in advance. The entrance fee with a souvenir is 100 dinars for adults, 80 dinars for pupils, and 50 dinars for pensioners.

THE CVEJIN FARMSTEAD - Begeč Address: 2, Nikole Tesle, Begeč; Tel/fax: 021/ 898-045, 063/ 538-976; web: www.plustours.org

he Cvejin Farmstead is in close proximity to Novi Sad on the road to Bačka Palanka, located just before the entrance to Begeč. This is a real family place. Bačka’s famous hospitality, delicious traditional cuisine, and the shade of one-hundred-year-old oak, linden, and almond trees are just some of the wonderful things that this farmstead offers. For nature lovers, the Danube River, the Begeč Pit (abundant in fish), and hunting grounds are all nearby. This is an ideal place to experience tasty Vojvodinian meals, to see farm animals, or to rest in comfortable rooms. The farmstead is mostly used for private parties and gatherings. CorD 68 / February 2010 71

LEISURE & LIFESTYLE |

THE MLAĐIN FARMSTEAD - Begeč Address: Nikole Tesle bb, Begeč; Tel/fax: 021/6-275-870; 6-275-701; 063/430-635

he Mlađin Farmstead is suitable only for private parties and gatherings, and visitors are required to call in advance. It is located in Begeč on the 1270th nautical kilometer of the Danube River. The farmstead has nicely furnished rooms, each with a Jacuzzi and TV. It is quite close to the Danube River and a fish pond. The visitors can engage in hunting (with suitable accommodation for hunting dogs), fishing, boating, cycling, and walking while bird watching. The farmstead serves traditional Serbian meals – barbecued and skewed meat, as well as traditionally cooked meat, fricassees, etc. Close to 1,500 fruit trees are planted on the farmstead, and the fruit grown here is pesticide-free. This fruit is also used in making the best quality quince, apricot, apple, plum, and pear brandy. The

THE DEER FARMSTEAD - Palić Address: 7, Lopudska, Palić; Tel/fax: 024-753-586, 069-753-004; e-mail: kontakt@jelensalas.com; web: www.jelensalas.com

nly a kilometer away from stunning Palić Lake, surrounded by forests and plains, lies the Deer Farmstead. In an authentic ethno-atmosphere and surrounded by the wonderful smells of a traditional homestead, you will be able to experience the spirit of old times. Gastronomic indulgence, the sounds of traditional ‘tamburica’ (mandolin) music, and the farmstead’s kind staff will make your stay a truly unforgettable one. The farmstead offers a wide range of traditional dishes, international ones, and an extensive wine list. It boasts two large suites furnished in ethno-style with handmade furniture, each of which has a double and an auxiliary bed.

THE KATIĆEV FARMSTEAD - Deronje Address: 17, Donja Branjevina, Deronje; Tel/fax: 025/543-440; 063/75-22-377

etting to the Katićev Farmstead is fairly easy. It is situated in the village of Deronje, Donja Branjevina, 55 kilometres from Novi Sad. The location is a truly spectacular one, near the Donja Branjevina forest that covers close to 3,000 acres of land. Deronje is also known for the Donja Branjevina archeological site. Smaller groups can book a room at the farmstead and stay for several days, while one-day-visits can be arranged for large groups (up to 100 people). Guests will be able to see original ethnofurniture and old agricultural machinery and can take long relaxing walks, weave on old looms, fish at the pond, while children and pupils can attend an environmental workshop, learn about medicinal herbs etc. Provala Lake is located nearby, as are the town of Bač and the famous 17th-century monastery, Bođani. Visitors need to call in advance. They can stay in two family-size rooms. 72 CorD 68 / February 2010

THE FARMSTEAD 84 - Kać Address: Stari žabaljski drum bb, Kać; Tel/fax: 021/ 445-993, 6417-263 e-mail: salas84@neobee.net; web: www.salas84.co.yu

he international panel of jurors has declared Farmstead 84 to be “The Perfect Place” on Corridor 10. The reconstructed farmstead offers an unforgettable experience to tourists, business people, and passers-by. The farmstead has luxury suites, a restaurant in a shape of a rotund that seats 150 people, and a conference hall. A lake, fish pond, orchard, lawn, and promenade are all nearby. The farmstead is heated with the help of old tile stoves, while the roof is covered in hand-stitched reeds. What strikes a Farmstead 84 visitor is the silence, the feeling that only a green plain can offer – golden wheat and blue skies, intersected by church steeples. The famous Mileva Marić-Einstein owned a farmstead nearby, where she stayed on many occasions with her husband, Albert. The farmstead is open from 8:00 a.m. to 10:00 p.m. The visitors can engage in fishing, play beach volleyball, badminton, soccer, and use wireless Internet.

THE BOŠNJAK FARMSTEAD - Lugomerci Address: Lugovo 18; Tel/fax: 025/ 484-909, 064/ 49 333 11; e-mail: fbosnjak@ravangrad.net; web: www.salas.org.yu

his farmstead is situated on the Sombor – Novi Sad route, four kilometers from Sombor, an hour’s drive from Novi Sad at the very north of Serbia on the border of three states in close proximity to three border crossings (towards Hungary and Croatia), and close to the Danube River and its channels. The farmstead is open to guests who happen to be nearby and want to spend a night or several days here, whether alone or with a family. Exquisite traditional cuisine, a wine cellar, affordable prices, fishing grounds, places to relax, play soccer, tennis, basketball, cycling, jogging, walking are what this farmstead can offer. The farmstead’s old-fashioned spacious house offers accommodation, with each room equipped with TV and Internet. There is also garage and a large parking place for buses and trucks. The farmstead can also organize field trips to neighbouring Hungary and Croatia.

THE KATAI FARMSTEAD- Mali Iđoš Address: Lenjinova bb, Mali Iđoš; Tel/fax: 024/ 731-222, 731-368, 062/62-94-26 e-mail: katai@stcable.co.yu; web: www.kataitanya.co.yu

he Katai Farmstead is in Mali Iđoš and is an ideal place for educational activities for children. On the farmstead you will find traditional Vojvodinian furniture, farm animals, and a children’s playground. Tractor rides, horse and donkey rides, and a tour around the farmstead with a guide who is also a children’s entertainer can be arranged. Accommodation and food are available on request. The farmstead is made especially for children, although adults are also welcome. There is a traditional house nearby, and a bakery whose staff can show how bread was made back in the old days. There’s also a small-scale museum with an old weaving loom used in weaving workshops.

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Chrysler Jeep Dodge

Exceptionall Offer Chrysler Jeep Dodge Belgrade will exibit in Hall 1, with the latest models from the Chrysler Jeep Dodge series At this year’s BG Car Show, Chrysler Jeep Dodge Belgrade will exhibit in Hall 1 of the Belgrade Fair. The media and visitors will be given an opportunity to see the stunning models from the Chrysler Jeep Dodge series. Taking into consideration the spirit of the upcoming car show, Chrysler Jeep Dodge Belgrade, as the only authorized dealership and service centre of the renowned American carmaker here, has prepared an exceptionally appealing offer and special discounts for most of the exhibited cars. At the upcoming Belgrade Fair, Chrysler Dodge Belgrade will exhibit the following cars: • Dodge Nitro, 2,8 CRD SXT - prices starting at 22,990 euro • Dodge Caliber, 1,8 SXT - prices starting at 14,990 euro • Dodge Journey, 2,0 CRD SXT - prices starting at 26,550 euro • Jeep Patriot, 2,0 CRD Sport - prices starting at 23,590 euro • Jeep Cherokee, 2,8 CRD Sport - prices starting at 27,900 euro • Jeep Grand Cherokee, 3,0 CRD Laredo - prices starting at 39,900 euro • Jeep Wrangler Unlimited, 2,8 CRD Sahara - prices starting at 31,300 euro

The cars are custom cleared, with VAT and additional equipment included in the price.

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