Business Partner GERMANY 2019

Partner

G E R M A N Y

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S E R B I A

Business Partner

GERMANY

H.E. Thomas Schieb, German Ambassador to Serbia ● Marko Čadež, President of the Chamber of Commerce & Industry of Serbia ● Ronald Seeliger, President of the German-Serbian Chamber of Commerce and the CEO of Hemofarm Group ● Martin Knapp, Director of the German-Serbian Chamber of Commerce ● Frank Baumann, Director of Goethe-Institut Belgrade ● Jovanka Jovanović, General Manager, Robert Bosch D.O.O. (Ltd.) ● Kruna Gavović, TMS CEE Marketing and Academy manager, and CEO The Lean Six Sigma Company CEE ● Darko Babić, Managing Director Of DHL Express Serbia ● Ina Bulat, Director, Merck Serbia ● Clemens Sachs, Managing Director, Leoni Wiring Systems Southeast D.O.O. ● Alexandra Olivera Korichi and Vesna Stojanović, CEOs of dm Serbia and dm North Macedonia ● Milan Grujić, Managing Director of ZF Serbia ● Ljiljana Topić, Director Of Galenika Pharmacia

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EUROPE AT HOME AND ABROAD COMMENT

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BOSCH CONNECTS THE PHYSICAL AND VIRTUAL WORLDS

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INVESTING IN KNOWLEDGE ALWAYS PAYS

KRUNA GAVOVIĆ, CEO, THE LEAN SIX SIGMA COMPANY

JOVANKA JOVANOVIĆ, GENERAL MANAGER, ROBERT BOSCH D.O.O. (LTD.)

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OUR BUSINESS IS GROWING

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DYNAMIC COOPERATION

CLEMENS SACHS, MANAGING DIRECTOR, LEONI WIRING SYSTEMS SOUTHEAST D.O.O.

OPPOSITION TO PARTICIPATE IN FAIR ELECTIONS

CONTENT

H.E. THOMAS SCHIEB, GERMAN AMBASSADOR TO SERBIA

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STRONG BONDING

RONALD SEELIGER, PRESIDENT OF THE GERMAN-SERBIAN CHAMBER OF COMMERCE AND CEO OF HEMOFARM GROUP

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THE WORLD’S MOST INTERNATIONAL COMPANY

DARKO BABIĆ, MANAGING DIRECTOR OF DHL EXPRESS SERBIA

DEEPER COOPERATION TO MUTUAL SATISFACTION

MARTIN KNAPP, DIRECTOR OF THE GERMAN-SERBIAN CHAMBER OF COMMERCE

MARKO ČADEŽ, PRESIDENT OF THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA

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MERCK IS LEADING THE WAY

INA BULAT, DIRECTOR, MERCK SERBIA

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GERMANY INVESTOR NO.1

DRESDEN – PHOENIX CITY

VOJVODINA DEVELOPMENT AGENCY – RAV

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STRATEGIC INTERNATIONALISATION EDUCATION

ROBUST AND RESILIENT

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WE STRIVE TO FOCUS ON THE FUTURE

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WHEN FORM FOLLOWS FUNCTION

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KEY MESSAGES

FRANK BAUMANN, DIRECTOR OF GOETHEINSTITUT BELGRADE

PEOPLE WITH A DANUBIAN MENTALITY

VOLKSDEUTSCHE

GERMAN ECONOMY

CONTENT

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“FLORENCE ON THE ELBE”

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EXPANDING PRODUCTION AND MARKETS

LJILJANA TOPIĆ, DIRECTOR OF GALENIKA PHARMACIA

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AHK SERBIA – LEADER IN CONNECTING FOREIGN AND DOMESTIC ENTREPRENEURS AND INVESTORS

CENTENARY OF THE FOUNDING OF THE BAUHAUS

ACTIVITIES

EDITOR IN CHIEF: Miroslava Nešić-Bikić m.bikic@aim.rs DESIGN: Jasmina Laković j.lakovic@aim.rs EDITORIAL MANAGER: Neda Lukić n.lukic@aim.rs PHOTOS: Zoran Petrović

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COPY EDITOR: Mark Pullen

Mihailo Čučković, m.cuckovic@aim.rs

TRANSLATION & EDITING MRP EDITORIAL Halifax Translation Services

OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs

SALES MANAGERS: Biljana Dević, b.devic@aim.rs Nataša Trifunović, n.trifunovic@aim.rs Vesna Vukajlović, v.vukajlovic@aim.rs

FINANCE: Dragana Skrobonja finance@aim.rs GENERAL MANAGER: Maja Vidaković m.vidakovic@aim.rs

PUBLISHER: Ivan Novčić i.novcic@aim.rs DIRECTOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com BUSINESS PARTNER GERMANY Published by: alliance international media Makenzijeva 67,

11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile:+(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com No 14; ISSN: 2560-4465 All rights reserved alliance international media 2019 THIS PUBLICATION IS FREE OF CHARGE

The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

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COMMENT

Europe At Home

AND ABROAD A healthy democracy with a strong parliamentary opposition, coupled with a pluralistic society that fosters dialogue and free media, represents a precondition for the creation of a robust market economy in Serbia. That speaks to the quality of EU integration processes in the country, which are being actively supported by Germany and other EU countries

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capacities are choosing Serbia for their operations. t seems that Serbia is increasingly getting the message Indeed, making Serbia a prosperous country with a clear that the number of closed chapters testifies much more to European path is a recipe for success. At present, many success in the EU integration process than the number of Serbian citizens are leaving the country not just to find those opened. In other words, the government, parliament jobs, but to secure quality of life and a prosperous future. and civil society stakeholders need to continue pursuing One of the litmus tests for assessing how much Serbia the reform course. While there are many chapters waiting is progressing in achieving standards in terms of quality of to be opened, progress on those that have been open for life would be a start of the implementation of the German quite some time is sometimes slower than expected. The law that promotes inflows of skilled immigration, so called emphasis is on the rule of law, and this is a message that ”Fachkräfteeinwanderungsgesetz”, in March 2020. emanates from both political and business circles.

Many countries will find themAll one has to do it read the interview of German Ambassador to Serbia selves in a position to deliberate on There are today more than how to retain their highly qualified H.E. Thomas Schieb in this edition of 400 German companies CorD, or delve into the 2018 annual people at home. Serbia took the official survey of the German Chamber of stance that the flow of people and their supplying some 60,000 Commerce. German companies expect ability to work and live abroad is somejobs in Serbia, all of whom Serbia to continue with the reform thing that shouldn’t be prevented, and process and the creating of a “level are eagerly awaiting further that the country may prosper if these playing field”. people decide at some point to return changes in the business “More needs to be done regarding home and bring valuable experience to environment an efficient and independent judicial their country of origin. Germany has system, and that could unleash bigger thus been cooperating with Serbia in FDI, not only from Germany,” says Ambassador Schieb. creating conditions that are conducive to circular migration, The German Government and the German-Serbian to the benefit of both Serbia and Germany. Some German Chamber of Commerce are very active in supporting programmes are envisaged to promote the transfer of Serbia in important reforms, each in their own field. Some knowhow that Serbian professionals have acquired during progress is evident, and Serbia is recognised as a partner their studies or work in Germany and that they are thinkoffering a politically and economically stable and sustaining of implementing in Serbia, by launching a business in Serbia or joining some of the companies operating here. able environment for FDI, and as possessing a well-trained The success of this reversible path will clearly depend on and highly-educated workforce. Consequently, more and the pace of the EU accession process. more German companies with strong R&D and innovation

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BUSINESS PARTNER

INTERVIEW

H.E. THOMAS SCHIEB, GERMAN AMBASSADOR TO SERBIA

OPPOSITION

To Participate In Fair Elections

All democratic elections can only benefit from the experience of OSCE observers and their assessment can increase the legitimacy of an election process as a whole. It is common practise in all OSCE member countries to invite them, and Germany is no exception – Thomas Schieb 10

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he German ambassador shares the view that opposition parties should also participate in the upcoming parliamentary elections, because, as he notes, “a healthy democracy needs a strong opposition in parliament, a pluralistic society where dissenting voices and alternative policy ideas can make themselves heard.” On the other hand, notes Ambassador Schieb, elections must be fair and free, a contribution to which could be provided by the involvement of the OSCE mission. Commenting on the selection of former German defence minister Ursula von der Leyen as president of the European Commission,

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ACTION

It is up to Serbia to decide how fast it wants to become a member and to take the action necessary

ELECTIONS

The opposition should participate in elections - which need to be free and fair, that goes without saying

Ambassador Schieb says he’s pleased to see her also joining the ranks of European officials who insist on the importance of EU enlargement. The door remains open, he says in this interview for CorD Magazine, adding that the pace of accession negotiations depends on Serbia’s progress with regards to these criteria, especially in the fields of the rule of law, media freedom and the fight against corruption.

Your Excellency, when taking on the post of President of the European Commission, former German defence minister Ursula von der Leyen chose the Scorpions’ song “Winds of Change” as an illustration.

What kind of changes do you expect in the EU? - I am happy that a compatriot, a very experienced, dedicated and smart German politician, has been chosen for the top position of the European Commission. Ursula von der Leyen is a true European, and I think it is excellent news that she underlined the importance of EU enlargement in one of her first statements.

JOBS

Today we see more than 400 companies supplying some 60,000 jobs in Serbia

the country is ready for much more. Do you agree with the assessment that the opening of just one chapter is the result of dissatisfaction among EU Member States regarding progress achieved to date on Serbia’s reform processes, especially in the area of the rule of law?

- I think there is too much focus on the number of chapters opened – in the end, it is more important to close chapters than to open them. The negotiation process is a work in progress; everyone knows what has been achieved and what remains to be done. I encourage stakeholders in the government, parliament and civil society to continue pursu-

How much will Serbia’s path towards EU membership change in the light of the deep internal reforms within the Union?

- We see the further accession negotiations and necessary EU reforms as two parallel processes. The door AMBASSADOR SCHIEB VISITS THE CONSTRUCTION SITE OF THE NEW GERMAN EMBASSY to the EU stands open for Serbia. EU heads of state and government have ing the course of reform; in particular We see the accession reiterated this commitment on various concerning the rule of law, which is occasions, including the Western Balnegotiations and necessary indeed of particular importance. kans Summit in Sofia last year. The pace EU reforms as two parallel You have stated that Germany “closely of accession negotiations depends on processes. The door to Serbia’s progress with regard to these monitors developments in Serbia”. criteria, especially in the fields of the do you see attempts to establish the EU stands open for Serbia How rule of law, media freedom and the fight a dialogue between the government against corruption. The most recent and the opposition aimed at creating report of the European Commission renders the areas of the conditions for fair elections? progress very transparent, but also shortcomings. It is up - A healthy democracy needs a strong opposition in parliato Serbia to decide how fast it wants to become a member ment, a pluralistic society where dissenting voices and and to take the action necessary. alternative policy ideas can make themselves heard. And, of course, the opposition should participate in elections - which Serbia only opened one new EU accession negotiation need to be free and fair, that goes without saying! That said, chapter in June, while the Serbian government insists I welcome the dialogue between governing and opposition 11

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parties, and I do hope that they can find common ground on how to safeguard conditions for free and fair elections.

Considering that the EU has so far relied on the reports of OSCE observers when it comes to monitoring election processes, do you think it would be useful for Serbia’s upcoming elections to be monitored by an OSCE mission in its full capacity?

the message that was also signed by your country?

- The recent statement of the Quint is crystal clear: both sides, Belgrade and Pristiana, are called upon to resume the normalisation dialogue and to abstain from any action that could poison the atmosphere and make it impossible to gather around a table. Whatever they may agree upon in the end, it has to be mutually acceptable, comprehensive and legally binding, so that both countries can pursue their chosen path towards EU membership.

CONSTRUCTION SITE GUARDS, THE SO-CALLED "BLUE BEARS" (RETIRED GERMAN POLICE OFFICERS)

- All democratic elections can only benefit from the experience of OSCE observers and their assessment can increase the legitimacy of an election process as a whole. It is common practise in all OSCE member countries to invite them, Germany being no exception. So, the answer is a definite “yes”.

German companies expect Serbia to continue the path of reform to create a “level playing field”. The German Federal Government will continue supporting Serbia in the implementation of important reforms in that regard

How would you rate the current state of media freedom in Serbia?

- We share the assessment of the European Commission contained in the aforementioned report. There is room for improvement and the issues are well known: transparency of media ownership, fair access to public funding and media independence, to mention but a few.

Responding to the recent call of the countries of the socalled NATO Quint (Germany, the UK, Italy, France and the U.S.) for the dialogue between Belgrade and Pristina to be restored as soon as possible, Serbian President Aleksandar Vučić said that he considered it a form of pressure on Serbia to recognise the independence of this breakaway province. Is this the actual meaning of 12

Do you think that the message of the Quint – insisting that Pristina abolishes taxes on goods coming from central Serbia, while Serbia ceases lobbying against independence – creates an illusion that both parties are equally responsible for the current crisis in the dialogue?

Does such a description really correspond to reality?

- I believe that the statement takes account of the situation as it stands and points to a more promising future for the people of Serbia and Kosovo.

Looking backwards and engaging in “blame games” is always tempting because it is easy, but it is not helpful. Germany wants the dialogue to resume as quickly as possible. The Quint has encouraged both sides to help make this happen.

Following the cancellation of the planned meeting between the presidents of Serbia and Kosovo with the leaders of Germany and France in Paris, you stated that this dialogue is not dead but is just “not currently happening”. When do you think it will continue?

- Berlin and Paris remain committed to the process, but are equally aware of political timetables in Serbia and Kosovo. They will be very diligent regarding the timing of this meeting.

Considering the time you’ve spent as ambassador to Serbia, how would you rate the level of economic cooperation between the two countries?

- I am very pleased to see that economic cooperation continues to widen and deepen. We see more companies investing in high-tech sectors, such as the establishment

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of R&D divisions of German companies here. Today we see more than 400 companies supplying some 60,000 jobs in Serbia. The German-Serbian Chamber of Commerce is very active and, with further progress being made in the accession process, this situation will most likely improve even more.

- The law to which you are referring is the so-called ”Fachkräfteeinwanderungsgesetz”. It will enter into force as of march 2020 and is meant to attract highly qualified people from all over the world. The competent authorities in Germany are now working on regulations to govern how this law will be implemented and how the process will be organised. The consequences for the countries of origin are indeed something that we have to keep in mind. Know-

You’ve noted that German investors are satisfied with results in Serbia but lack more legal certainty in doing business. Are there any other obstacles that need to be overcome in order for German companies to continue being interested in investing in Serbia?

- Here again we are back to the aforementioned chapter 23 - rule of law, and the report of the EU Commission. Yes, I think that more needs to be done regarding an efficient and independent judicial system, and that could unleash bigger FDI inflows, not only from Germany. The 2018 annual survey of the German Chamber of Commerce confirmed that German companies expect Serbia to continue "THE PARLIAMENT IS THE BEATING HEART OF EVERY HEALTHY DEMOCRACY." the path of reform to create a “level playing field”. The German Federal ing that the decision to leave home Looking backwards Government will continue supportto work abroad is an individual one, and engaging in “blame we will continue to cooperate with ing Serbia in the implementation of to create conditions that are important reforms in that regard. games” is always tempting Serbia conducive to circular migration, to the because it is easy, but it is not benefit of both Serbia and Germany.

World Bank experts recommend that Serbia try to attract investments helpful. Germany wants What kind of results have been that create jobs for highly educated the dialogue to resume achieved to date when it comes to the people, because at present there are a German Government’s programmes large number of investors employing as quickly as possible. to encourage Serbian citizens who’ve lower skilled and cheaper labour. Do The Quint has encouraged studied in Germany to return home? you see an opportunity for German both sides to help make - The idea behind this and other procompanies with that kind of profile to come to Serbia? grammes is to promote the transfer of this happen - We already see that more and more knowhow that Serbian professionals German companies employ highly skilled people like engihave acquired during their studies, professional training or on the job. We are aware that Germany continues to attract neers and IT experts. A number of companies have developed qualified people from Serbia. However, we also know that interesting models of cooperation with technical schools some of them at a certain point imagine returning home, and universities. I am very encouraged by this and do hope capitalising on what they’ve learned in Germany by, for that this is just the beginning. example, starting a business. That’s why we will soon start an additional programme supporting the return home from There is concern in Serbia that the opening up of Germany Germany of these future entrepreneurs. The success of to foreign specialised staff, now also facilitated by law, this and other programmes will have to be evaluated in could further encourage Serbian citizens to leave the the medium to long term. country. How do you view this situation?

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BUSINESS PARTNER

INTERVIEW

MARKO ČADEŽ, PRESIDENT OF THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA

DEEPER COOPERATION To Mutual Satisfaction

It has been announced that several more major German investors will confirm their decisions to invest in Serbia by the end of this year. This provides reason to believe that the growing trend of cooperation between the two economies will continue and will deepen

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erbia's trade exchange with Germany continued to grow again this year. After an increase of 12.5% in 2018, when it reached a record total of 4.88 billion euros, that exchange has now exceeded three billion euros, according to the latest data published for the seven months of 2019, which represents 7.2% more than during the same period of last year. “Provided this trend continues, we will end this year with more than 5.2 billion euros in mutual trade,” says Marko Čadež, president of the Chamber of Commerce & Industry of Serbia (CCIS).

It is particularly important for the Serbian economy that exports to the German market, which are now 2.5 times higher than a decade ago, are growing continuously, notes Čadež.

“It is certain that we will exceed two billion euros this year.”

An important contribution to Serbia's growing export performance and the improving structure of our exports is provided by German companies that have invested here and are among the largest exporters – not only to Germany, but to the markets of the world. In seven months, our exports reached 1.28 billion euros, which is an increase of 11.3% compared to the same of period last year, and they are growing faster than

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imports. “In this way, Germany – in addition to being the top foreign trade partner and the country from which we import the most goods – has again, after a break of a few years, become the top export market worldwide for Serbian goods. This has also contributed to increasing the coverage of imports by exports, which have risen from last year's level of 66 per cent to 72.9 per cent,” says the CCIS president. “Germany is also our top foreign trade partner in the trade of services, but unlike the deficit that we have in the trade exchange, in this field we are also recording a positive balance in 2019. In the first half of the year, we recorded revenues of 334 million euros from exports of services, which is actually twice as much as imports (162 million euros) and represents a surplus of 172 million euros.”

What kind of impact on the trade exchange and level of investment of German companies do you expect in the period ahead, considering the slowdown in the German economy?

- There is no hint of a reduction in the operations of German companies in Serbia for now. On the contrary, in the latest poll conducted by the German-Serbian Chamber of Commerce – which was published in May, when the potential risk

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of a slowdown in both the global and German economies was already known – 88 per cent of the members of this association said that they would again invest their capital in Serbia, while 51 per cent announced that they will hire new workers this year and 43 per cent said that they will also invest in 2019.

Of course, any slowdown in global growth always carries great risks for small and externally dependent economies like ours: there is a danger that reduced economic activity, especially in major partner countries, will lead to reduced demand for our products and services, delays in previously planned investments and restrictions on the investment operations of their companies that already operate here.

When it comes specifically to Germany, Europe's strongest economy, I'm convinced that with its strength it will, as always, find the right response to the latest global challenges and that, thanks to a stable financial base it will – if necessary to resist the recession – take the announced measures of injecting billions of euros into its economy. A solid start to the third quarter, as measured by July's rise in German exports, is encouraging, as is the fact that, following the European Central Bank's announced monetary stimulus and the German government's fiscal stimulus, the sentiment of German investors had improved more than expected in September.

And our best response to the risks of a potential spillover of the crisis will be for us to raise the vitality and capacity of the domestic economy, improve the competitiveness of local companies, network them with partners around the world, strengthen regional cooperation and make the business environment more attractive for both local businesses and the international business community.

Aero Engines AG has formally confirmed that it is building a facility for the repair and servicing of aircraft engines in Serbia and that Boysen received land for a factory in Subotica.

Encouraged by the positive experiences of major German companies that have already invested, employ about 60,000 workers or have suppliers from Serbia, interest is also growing among those that haven't previously done business in our country of cooperated with our companies.

German SMEs are also increasingly interested in Serbia. We also received confirmation of this during Prime Minister Brnabić's recent visit to Berlin – during talks with representatives of the German Association for Small and Medium-sized Businesses (BVMW), the Foundation for Family Business and BITKOM, the German digital association. It has already been agreed that BVMW member companies will come to Serbia in midJanuary to more fully acquaint themselves with conditions and investment potentials, and the experiences of those who operate here successfully.

A business and consular delegation from Baden Württemberg arrives in October, and after business forums held in recent years in the states of Hesse and North Rhine-Westphalia regions, at which business and investment opportunities in Serbia were presented, we are next heading to Bavaria. Together with association OWWF Bayern, we are preparing a major forum in Munich for next March that will include the participations of around 50 of our companies from the food, IT, chemicals and furniture manufacturing industries.

Despite news of a slowdown in the German economy, there is no hint of a reduction in the operations of German companies in Serbia for now

Apart from expansions in the capacities of existing German investments, are there any announcements of new ones?

- It has been announced that several more major German investors will confirm their decisions to invest in Serbia by the end of this year. Until then, in expectation of the official opening of factories of both old and new investors, which are already being built or extended, I would remind readers that in recent months, among other things, MTU

You often highlight the importance of including Serbian enterprises in the supply chains of German companies. How successful are our companies in this regard?

- Interest is constantly growing among German companies that have already convinced themselves of the reliability, quality and ability of our companies as suppliers, and our companies are increasingly ready to respond to their demands.

The last gathering under the scope of the the Western Balkans Purchasing Initiative, held in Dortmund this June, brought together around 370 entrepreneurs from Germany and the Western Balkans. Participants included 51 German companies and 130 companies from the region, the 15

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majority of which – including 38 Serbian firms – hail from the sectors of metal processing, electrical parts, plastics and auto parts. In the course of only one day, they had around 700 b2b meetings – as many as 200 more than in the previous year. Also contributing to the increasingly successful performances of our companies is the training course “Ready for the German Market”, which is organised by the Chamber of Commerce & Industry of Serbia in cooperation with GIZ and BME.

Along with German support, based on the experience that German companies brought from home and shared with us selflessly, we have introduced dual education to high schools, and we recently also received a law on dual education at university colleges... In the previous school year, around 2,700 high school students underwent preparatory work experience at about 200 companies for one in six occupations – with profiles developed thanks to a German project.

Around 300 companies have also this year opened their doors to about 1,150 new first-year students who are studying these educational profiles.

Alongside the fact that its companies top the lists of foreign investors in Serbia, Germany also invests heavily in training staff in the sphere of non-formal education. Likewise, the Klett School of Dual Education offers high-school graduates and existing employees training as mechatronics specialists according to the German model. All educational programmes are available both to staff who will work within “German” investments and in domestic companies. Support for the development of training centres has also been announced, in order to equip secondary schools as best as possible for the retraining of personnel.

German SMEs are also increasingly interested in Serbia. We also received confirmation of this during Prime Minister Brnabić's recent visit to Berlin

Here in Belgrade, the CCIS organises supplier days for individual foreign companies, including German companies.

This unique service on our market has, in the past two or three years, been utilised by almost a thousand Serbian companies, mostly from the metal and food sectors. For example, companies Teknia, Goma Line, Moretto etc. became suppliers of Eberspächer, and this German group of companies is currently negotiating with another two factories in Serbia.

This autumn we are organising a supplier day event for German company Spectro, from the AMETEK system, and local fruit and vegetable producers had another opportunity to present themselves to Lidl this September. Otherwise, the products of more than a hundred Serbian companies have made it onto the shelves of German retail chains METRO Cash & Carry and Lidl in Serbia, some of which have even become part of their global supply chains.

To what extent could labour shortage prove a challenge in attracting new German investors?

- Serbia offers foreign investors a whole range of reasons to invest in our economy, including the quality of the workforce, with which German investors are happy, despite the lack of some profiles that we are working on remedying together.

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In which areas do the CCIS and AHK Serbia cooperate most closely in terms of improving the business environment?

- Apart from cooperation on the development of dual education, joint activities within the scope of German Supply Initiative and other projects implemented jointly by the CCIS and AHK Serbia, we also have a number of joint legislative initiatives aimed at improving the economic environment and assisting companies in their daily operations. For example, together with other business associations, we have proposed amendments to the Law on Foreign Exchange Operations, in line with the economy's demand for he further liberalisation of capital flows and easing the automation of payments. We are also cooperating on proposals for solutions to the future Law on the Protection of Competition, in order to align this area with EU legislation and establish fair and transparent operations for market participants. We jointly insist on eliminating the problem of retaining haulage vehicles at border crossings during goods export operations, in order to reduce the time and costs of transport for businesspeople and to enable the delivery of goods in accordance with contractual obligations.

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JOVANKA JOVANOVIĆ, GENERAL MANAGER, ROBERT BOSCH D.O.O. (LTD.)

CORPORATE

BOSCH CONNECTS The Physical And Virtual Worlds In the period of just over 14 years that it has existed in Serbia, company Robert Bosch d.o.o. has continuously increased its investment in manufacturing and development, but also its number of employees. In a short period, this company has managed to secure 4th place on the list of the country's top exporters

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ccording to General Manager Jovanka Jovanović, the company's planned new investment cycle will include investment in production, the development of competence centres for the Automotive and Power Tools divisions, as well as the development of IT projects and software applications over the next ten years.

Your factory in the municipality of Pećinci has been recording constant growth in investment and production levels, as well as the number of employees, while you are surely climbing the list of the country's largest exporters. What are your plans for further development?

- We are very satisfied that Bosch Group's revenues in Serbia exceeded 260 million euros in 2018, representing growth of 20 per cent and ranking us 4th among Serbia's 15 largest exporters.

Around 70 million euros has been invested in development to date, with the largest investment in production in the automotive industry. An additional investment of around €30 million is planned by year's end 2019, which exceeds the level of investment originally planned.

The second phase began in mid-2018, with the construction of another 15,000m2 production facility, a new canteen and a new development centre.

We now have 37,000m2 of production capacity, and the new facility will produce motors for wiper systems, including the latest fourth generation.

With the impacts of climate change increasingly evident, Bosch has set ambitious targets for CO2 emissions. Some are linked to next year, some to 2030. Could you tell us more about that?

- Bosch will be the first CO2 neutral industrial company to reach this ambitious goal by 2020. We are proud that the company has also set the same goal for all regional organisations. The company will use four major drivers to ensure that all 400 Bosch locations

worldwide are CO2 neutral by 2020: increasing energy efficiency, increasing the proportion of renewables in its energy supply, buying in more green power, and offset unavoidable carbon emissions.

This way, we will avoid 3.3 million tonnes of CO2 emissions by 2020.

We will invest a billion euros in realising this goal by 2030. In Serbia we're working to purchase energy exclusively from renewable sources or to buy carbon credits in the case that opportunities exist.

The main drivers of your growth and development are innovation, which has led to us growing accustomed to your company continually providing us with new smart products and solutions. Are there enough IT experts in Serbia for your departments dealing with software development?

- Bosch has connected more than 10 million devices using the Internet of Things (IoT) over the last 10 years, which is convincing proof that Bosch is a leader in connecting the physical and virtual worlds. We are witnessing the exceptionally fast development of the IT sector in Serbia, which ensures that demand for IT experts is higher than the availability.

Bosch faces the same challenges in Serbia, which we address – among other things – by providing training for employees. Last year around 65 per cent of employees attended training courses, representing an investment of €840,000, of which 55 per cent was invested in training related to digitalisation and software development.

Programmers in Belgrade are working on solutions for e-commerce, e-services and mobile applications for precision measuring tools. They are also developing software solutions for the future mobility of users related to improving security and efficiency, the greater integration of mobile devices with vehicles, as well as voice-based solutions for interactions between driver and vehicle.

Working on technologically challenging projects in inspiring conditions is a long-term benefit of our associates employed within Robert Bosch d.o.o.

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BUSINESS PARTNER

INTERVIEW

RONALD SEELIGER, PRESIDENT OF THE GERMAN-SERBIAN CHAMBER OF COMMERCE AND CEO OF HEMOFARM GROUP

STRONG

Bonding A

s President of the German-Serbian Chamber of Commerce and CEO of Hemofarm Group, Dr. Ronald Seeliger has the opportunity to gain the most detailed and profound insight into German investments in Serbia. As shown by his experience and communication with current and prospective German investors, Serbia could offer many opportunities for business development, but some of its potentials can only be utilised if the country persists in implementing bold reforms.

Many German companies have been investing repeatedly in Serbia, expanding their production capacities, creating additional jobs and growing year on year. This commitment and these long-term investments are recognised by Serbian society.

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How do trends in the German economy impact on the activities of your members?

- I recently read an interesting remark about the impact of Germany on the economy of Europe as a whole, which goes: when Germany coughs, the rest of Europe gets pneumonia.

At this moment, it is still too early to say whether the current economic situation in Germany is just a temporary slowdown or the beginning of a recession.

What makes us optimistic is certainly an example that illustrates the strength of the German economy and German companies. Hemofarm became a part of Germany's STADA Group in 2006, and since then STADA has invested as much as 300 million euros in the operations of its Serbian company.

Hemofarm hosted a recent major gathering of STADA leaders, when 150 of them came to Belgrade for a couple of days. On that occasion, it was the journalists who asked STADA Group

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GROWTH

The next task for the Serbian economy is to wake up and induce further growth

REFORMS

Stagnant household incomes, private sector job creation and strategic reforms in the public sector all need to be tackled

CEO Goldschmidt whether the current situation in Germany could possibly cause a halt to that company's investments in Hemofarm and other affiliated companies across Europe.

He replied by stating unequivocally that economic stagnation in Germany would not jeopardise STADA's planned investments in Serbia, stressing that those investments were not related to the macroeconomic situation in Germany, but rather to the business results of a particular company. STADA has done well in the previous period, Hemofarm also, so planned investments of 20 million euros, in this and the next year, will be made.

The analysis of fDi Intelligence shows that Serbia, with a score of 11.92, is attracting almost 12 times the amount of Greenfield foreign direct investment than what might be expected given the size of its economy. To what extent do these numbers reflect interest coming from German investors?

- Germany is one of the largest bilateral investors in Serbia and I am proud of this statistic, because it clearly shows not just our interest in this country, but also our tangible actions. German investors have one important characteristic – they view their business operations in Serbia over the long run and invest continuously.

There are currently around 400 companies with German capital doing business in Serbia, and they employ 60,000 Serbian workers. Many German companies have invested repeatedly, expanded production capacities, employed additional workers, and grown year on year. This commitment and long-term investments are probably the main reasons why German investors were chosen as the most attractive in a survey conducted in Serbia a while ago.

SERVICES

Our ‘menu of services’ for German companies coming to Serbia or already operating in the field is wide and well diversified

challenges Serbia is facing are stagnant household incomes, a need for private sector job creation and the structural reform of public enterprises, as well as strategic reforms in the public sector... Not to forget further reforms related to the rule of law and a more intensive fight against corruption,

German companies could become the end-users of the services and innovative solutions of Serbian start-ups

as well as the further strengthening of legal security and transparency in public procurement.

Both businesses and the government are saying that the lack of a competent workforce is becoming a rampant problem. Is the key to remedying this in labour legislation or somewhere else?

- This problem cannot be tackled with only one measure, but rather a full range of different activities. There are different causes in the background, so we need to address all

While many sources recognise the positive changes in Serbia's fiscal position, many – yourself included – advocate for further bold reforms. If you were a member of the government, what would be on your list?

- If I need to summarise my reply to this question, I would say that Serbia has succeeded in overcoming the major macroeconomic imbalances and the next task for the economy is to wake up and induce further growth. Some of the main 19

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of them in order to solve the problem or make the situation better. The so-called brain drain, than an ageing population, changes within the economy, education that doesn't suit market needs – here I've mentioned only a few of the major factors we need to deal with.

However, this is one problem that Europe as a whole – and not only Serbia – is facing at the moment, and it will be interesting to see how it will be solved at the global and national levels.

Your chamber has been very active in matching Serbian SMEs with major German companies, while the Serbian start-up scene also recently became interesting to you.

What modalities of collaboration do you see?

- Over the last couple of years, apart from being recognisable in the sphere of traditional economic branches and sectors, Serbia has also been recognised through its achievements in the entrepreneurship and start-up sphere. Considering the importance of this new scene, AHK decided to deal more intensively with start-ups; our objective is to achieve a win-win situation for Serbian entrepreneurs in this field, investors, but also German companies as the end-users of the services and innovative solutions of start-ups here.

As one of the first steps, we conducted deep research of the start-up scene in Serbia, organised meetings with them and decided to introduce trial memberships for newly established and innovative start-ups.

Moreover, the start-ups usually present their ideas to potential customers repeatedly at so-called pitching events.

The network of German Chambers of Commerce abroad has good experience with a kind of reverse pitching, in which large companies present their needs for innovative solutions to start-ups, who then offer their help in finding such solutions.

This is one of the ideas we are considering introducing.

of workers. Obviously, their needs for consultancy could not be more different. That is the main reason our ‘menu of services’ is wide and diversified, and each case needs to be approached individually.

The best-seller at the moment is a kind of all-round carefree package for new investors. This means that our colleagues take a potential investor to locations and properties all over Serbia, organising talks with mayors or meetings with German companies that are already active in the country in order to familiarise newcomers with the local situation and perspectives.

Pharmaceutical companies are among the most advanced industry players. How does Hemofarm see the rise of the knowledge-based economy in Serbia and its role in it?

- Hemofarm grew from a small, local plant to a global player only because, on this long road, it had been fully aware of the need to embrace change, react promptly and anticipate trends whenever possible.

In these times of the Industry 4.0 revolution, digitalisation and artificial intelligence, it is really important that Hemofarm is a member of a larger, global family. We exchange knowhow, technology and standards with STADA; this is one high-quality exchange we have and profit from to the benefit of all – the company itself, patients and the health sector in general. In short, given that we operate in the pharma business, the knowledge-based economy was deeply rooted in Hemofarm’s operations even before this phenomenon got its name.

Further reforms related to the rule of law and a more intensive fight against corruption, as well as the further strengthening of legal security and transparency in public procurement, are all important

How have the needs of your members evolved over time and what new services does AHK provide for them?

- Our members range from language schools with one employee to large international corporations with thousands 20

This is the 15th special edition on Germany that AHK has collaborated on with publisher aim. What value does this cooperation bring to our mutual readerships?

- I would like to think that this partnership was, and is, of mutual benefit. It is important for AHK to have this kind of reliable partner and long-term support in presenting Germany to the public here in Serbia and in the region. On the other hand, I hope that you've enjoyed cooperating and growing together with us.

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KRUNA GAVOVIĆ, TMS CEE MARKETING AND ACADEMY MANAGER, AND CEO THE LEAN SIX SIGMA COMPANY CEE

CORPORATE

INVESTING IN KNOWLEDGE Always Pays

Acquiring new knowledge and skills through The Lean Six Sigma Company Serbia has for many years proven to be highly convertible, because certified experts have the opportunity to work at top companies and to rate their work under global conditions

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MS CEE has licensed Family Friendly Enterprise, a new service in Serbia that enables employees to live and work according to the best practices of European companies. Their work becomes more pleasant and humane, while the productivity and reputation of companies that have introduced the FFE model are on the rise.

The Lean Six Sigma Company of Rotterdam is a European leader in LSS training, but what is your position in Serbia? Are we ready to change, to work on ourselves, to acquire new knowledge and skills?

- It is my pleasure to announce that The Lean Six Sigma Company in Serbia is on the rise. After the Lean Six Sigma Conference in June in Belgrade, which brought together 150 of the best companis in Serbia, all the LSS training sessions are fully booked until December.

It is very encouraging to see that not just the companies organize training for their staff, but especially that more and more experts invest in their education themselves. Acquiring new knowledge and skills through The Lean Six Sigma Company is recognized as highly convertible because, as we demonstrated practically at the conference, our certified experts get the opportunity to work at top companies and to compensate for their work under global conditions. The average salary of a Black Belt expert ranges from $90,000 to $100,000 a year today.

because the results of applying it are measured solely through the value of savings from the accounting. But there are also intangible savings and benefits that can sometimes be even more important. There are examples that companies saved significant amount of money since the very first LSS project.

But the intangible gains also meant a lot - free time for workers for other jobs, cleaner factory grounds, less environmental pollution, less workload for both engineers and other staff ...

And all this after just one round of trainings with The Lean Six Sigma Company!

Your Family Friendly Enterprise is a relatively new service.

You could say that it is particularly important because nowadays the principle of socially responsible company management has come to the fore, with a focus on work-life balance. Am I right?

- That's right! The concept of a proper work-private life balance was created in Germany twenty years ago. Now, through Family Friendly Enterprise is also available to companies in Serbia. In addition to the financial aspect of work, which is important but often not crucial, the possibility of a dedicated private life and private time is nowadays seen by people as an extremely important aspect of work.

Through Family Friendly Enterprise, available throughTMS CEE as a licensee for the region, companies can introduce this concept quickly and easily into their world and allow their staff to live and work according to the best practices of European companies.

Several thousand workers in Serbia are already living with FFE and can tell you that their work is more pleasant and humane, and managers say that their companies’ productivity and reputation have increased since the introduction of the Family Friendly Enterprise model.

Both work and life are more pleasant and humane with Family Friendly Enterprise

To put it simply, Lean Six Sigma is an efficient project management method, but beneath that it is much more. Can you explain this? How important is LSS for a company?

- There are a large number of management tools and techniques available on today’s market, but Lean Six Sigma stands out

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DARKO BABIĆ, MANAGING DIRECTOR OF DHL EXPRESS SERBIA

The World’s Most INTERNATIONAL COMPANY "I firmly believe that, despite automation and the introduction of artificial intelligence into the world of logistics and service provision, our employees – who are Insanely Customer Centric – will continue to play a key role," says the top man at DHL Express Serbia

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here are few global companies that can boast of having come up with an entirely new area of business and of existing as the leader in the business it deals with for 50 years.

well as the stance that we can do anything and that there are no obstacles that can't be overcome.

DHL has existed in Serbia for almost 30 years, and you've been at the helm of the Serbian company for only a few years less. Which stages in the development of DHL Serbia During its 50 years of operations, DHL has grown to become were the most important, representing turning points or the world's leading logistics company. What changed the the most difficult periods? most during that time?

- I've been employed by DHL for 30 years - Although starting with just three DHL Express today runs and held the position of director for people, a little capital and an excellent a fleet of 260 dedicated 26 years already. Just as DHL's global idea, they endured through all difficult times, crises, monopolies. Today, on all aircraft globally, operating beginnings are linked to three people who gave life to a completely new idea, meridians where it operates as the most 3,200 flights every day, so DHL started in Serbia by operating international company, it is emphasised out of a single transport container at that dedication to the job, devotion to transporting 248 million the airport. The company grew in line work and the ability to survive even shipments annually for with the needs of our clients, which the toughest moments are what have we always knew how to anticipate in sustained DHL throughout all of these 2.6 million customers advance. And we've shown in many 50 years. DHL has changed and transways that we are guardians of tradition when it comes to formed over the course of half a century. What has certainly the company's pioneering spirit. We've operated under the changed the most and had the greatest impact on the develmost varied conditions and I'm proud to say that, despite opment of DHL are continuous technological innovations the challenges we've faced, DHL in Serbia hasn't stopped and solutions that enable us to grow our infrastructure in providing services to its clients, connecting their businesses order to always offer our customers the kind of service that with the world, for even a single day. DHL in Serbia has grown they expect. However, some attributes that existed 50 years and evolved by improving its own infrastructure, developing ago are still a significant driver of our operations, and those employees who've implemented all changes to operations and are a pioneering, innovative spirit, the great passion of our who have, of course, always applied all the innovations that employees in providing an exceptional service to clients, as

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Go Teach is a programme we're implementing at the global level together with nonprofit SOS Children's Villages, through which we also provide assistance to those in need. However, it is important to note that Serbia was one of the first three countries to engage locally in this kind of partnership.

Go Green is a project that implies a holistic approach to contributing primarily to the preservation of the natural environment. It was back in 2007 that those at DHL who act responsibly towards the planet calculated the footprint of all of our pollution and decided to reduce emissions of harmful gasses by 30 per cent by 2020. And we didn't stop there, but rather pledged to reach zero gas emissions by 2050, and One of the results of DHL's greenhouse we are convinced that we will achieve socially responsible this really challenging goal. DP DHL Your company has long since understood the importance of socially responsible operations through the Go plants a million trees around the world each year, thus showing that it cares operations, and you always strive to Green programme is that all about the legacy that we leave behind improve the ways you relate to the community. Corporate social responsibility DHL employees will become for future generations. In the year of anniversaries, by sponsoring Bryan is very diverse in your company.

Go Green Specialists, in such a its Adams' world tour, DHL will plant a - As a global company, we have a global responsibility to the world in which we way that they will be certified tree for every concert ticket sold. And live. We strive to connect people and through specific theoretical Belgrade - as one of the destinations on this worldwide tour - and DHL Serbia ease their lives. With its three CSR programmes, DP DHL shows a clear training and volunteer work on will also participate in this campaign.

It is through education that we can commitment to being an active parthe ground impact the most on raising awareness ticipant in creating a better place to of the importance of preserving the planet, and although live across the entire planet. we sometimes think that someone else is taking care of Go Help is a very important programme that relates that, it is essential for us to know exactly what each of us, to providing help for the vulnerable, i.e. people in need. Asas individuals, can do in contributing to that shared goal. sistance generally isn't difficult to collect, but DP DHL has That's why we transferred our commitment to environmental organised special teams, Disaster Response Teams that protection into the promise that every DP DHL employee deal with the distribution of assistance, helping to ensure will become a Go Green Specialist. assistance reaches those who need it most in a timely manner. we've had to respect as part of the largest global network.

Although this is a time when we are celebrating significant anniversaries, the main focus for us is on ensuring that our business continues to remain as successful for the next 30 years as it has been to date. We devote the greatest attention to our employees and their motivation. They are the ones who – as part of a global network – provide an exceptional quality of service to our clients, making their lives simpler, which is why the users of our services return to us over and over again. I firmly believe that, despite automation and the introduction of artificial intelligence into the world of logistics and service provision, our employees – who are Insanely Customer Centric – will continue to play a key role.

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CORPORATE

INA BULAT, DIRECTOR, MERCK SERBIA

MERCK Is Leading The Way ENVISIONING TOMORROW

When the Human Genome Project was completed in 2003, the cost of generating one human genome sequence stood at some 54 million U.S. dollars.

Twelve years later, the same procedure costs around a thousand dollars. Our work is fuelled by the belief that science is a force for good

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erck is dedicated to some of the most pressing questions of our time, and always has been leading the way for science development. That’s why we’re focusing our most innovative reaserach & development on issues that have world-changing potential, says Merck Serbia Director Ina Bulat, speaking for CorD magazine.

Merck is one of the world’s leading innovative companies today, despite recently celebrating its 350th anniversary. Can you tell us more about the work of the healthcare sector at Merck?

- The work of our healthcare business helps make a difference to millions of lives. We put our patients at the centre of everything we do. Working as one for patients motivates us to always give our best and continuously improve our efforts.

Our work is based on innovations that help to create, improve and prolong lives.

Making a positive difference, and with a holistic approach, we design and develop medicines and intelligent devices that provide ongoing care for patients beyond their treatment. This includes new medicines to treat conditions such as cancer or multiple sclerosis, but also innovative technologies that make life easier for patients. Our goal is to support people at every stage of life – including when it comes to helping create new life. We have helped many women and couples achieve their dream of having a baby. As the leader of the global market in fertility treatments, we do what we do with passion – and we think further ahead.

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Can you tell us what will shape the future of healthcare?

- Precision medicine is set to fundamentally change the delivery of healthcare. We are moving away from a ‘one size fits all’ approach towards prevention and treatment strategies that are tailored to individuals.

Every patient and their disease is unique, which is why many ‘one size fits all’ treatments benefit only a minority. For example, current untargeted drugs are effective in around a quarter of all cancer patients; three out of 10 people with Alzheimer’s disease and just over half of patients with diabetes. We need to change our approach to precision medicine radically. New biotechnologies enable us to understand diseases much better than ever before. At the same time, digital technologies – such as machine learning, artificial intelligence and big data – are opening up new possibilities. When the Human Genome Project was completed in 2003, the cost of generating one human genome sequence stood at some 54 million U.S. dollars. Twelve years later that same procedure costs around a thousand dollars. However, when it comes to the most common diseases, our genetic blueprint can only predict what might happen in the future – with the complex interactions between our genes, lifestyle and environmental factors determining our exact trajectories.

Precision medicine offers unprecedented opportunities to use this increasingly detailed information to prevent, diagnose and treat disease – improving health outcomes for individuals. Its successful delivery relies on several interconnected

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areas – the development of sophisticated tests that enable much earlier, more precise diagnosis of a disease, a range of personalised interventions that can prevent or delay its onset, and a battery of new, molecularly-targeted medicines that can treat an individual’s condition more precisely amd with fewer side effects.

Do you think Serbia is also recognising health as a worthy investment?

- I believe that it is of key importance for the state to understand cooperation with the pharmaceutical industry, which is the driving force behind innovations and development, striving to extend people’s longevity and make their lives healthier. It shouldn’t be overlooked that one of the greatest achievements of this century is actually in the field of medicine. I’m very satisfied with the openness and cooperation that we have in Serbia, because this is the only way we can secure the solutions needed by the citizens of our country.

The Serbian Government recognises the importance of therapies that help people’s lives, among many priorities, especially as these are innovative medicines that citizens cannot afford when confronted by disease. I believe that Serbia – with the presence of the world’s leading innovative companies in healthcare – will support innovations in medicine and that it recognises their importance to human health.

Ensuring better and longer lives for people is our mutual goal. We recently introduced an innovative therapy for multiple sclerosis to the Serbian market that allows the patient to “forget” about the disease and provides conditions closest to an actual cure. Merck continues to invest in the development of MS therapies, offering personalised treatments, and we are looking forward to seeing future developments both globally and in Serbia.

We are present in Serbia, as in all major countries around the world, in the fields of cardiology, diabetes, endocrinology,

oncology, IVF and neurology. The medicines that Merck brings to Serbia are of the highest world standards, manufactured in the same place, from the same substances and by the same technological processes as for the world’s most developed countries. Merck sets the same manufacturing quality and distribution standards in all of its representative offices around the world.

We will continue supporting and advancing the Serbian healthcare system, bringing new therapies to Serbia every year, as well as innovations in existing therapeutic areas. That’s something that our citizens deserve.

You’ve said that Merck’s reputation and focus is based on science. Could you tell us more about Merck’s developments and contributions to science?

- We believe that science is for good, and our work is dedicated to some of the most pressing issues of our time. That’s why Merck awarded the Future Insight Prize – a one million euro research grant – for the first time this July. The Future Insight Prize puts forth a vision for ambitious dream products and is intended to trigger curiosity and creativity worldwide in making this vision a reality. Merck aims to award this grant annually for the next 35 years, in order to incentivise work enabling significant progress towards making this vision a reality by discovering new groundbreaking science or by developing enabling technologies.

More than 6,000 Merck scientists are today working on a variety of research, disease control and new technologies. Our investment in research & development is huge – we invested 2.2 billion euros in 2018 alone. As a vibrant science and technology company, Merck has been pushing the boundaries of what’s possible for more than 350 years. And we will continue to do this in the years ahead - with technologies that can change the rules of the game in entire industries and make a difference to the lives of millions of people every day.

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CLEMENS SACHS, MANAGING DIRECTOR, LEONI WIRING SYSTEMS SOUTHEAST D.O.O.

OUR BUSINESS Is Growing The first Leoni facility in the country opened in Prokuplje 10 years ago, after which this German company decided to continue with further investments in Serbia. Leoni is today the biggest industrial employer in Serbia, with nearly 9,000 employees

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eoni continues to invest in Serbia in large part due to the openness of the Serbian Government and the availability of the workforce, a good work ethic and the level of expertise of people here. After hearing about Leoni’s positive experience in investing in Serbia other German companies deciding to enter the Serbian market and invest in the country.

that at our plant in Prokuplje, where Leoni started in 2009, we today have 240 of our first employees still on board. We started first in Prokuplje, but decided to continue with further investments in Serbia, as listed above, thanks in particular to the following reasons: workforce availability, the great work ethic and level of expertise of people here, as well as the openness of the Serbian Government. Today we can say that we are in line with all of our activities in business which we already produce and in line with activities related to our new factory in Kraljevo, which is under construction.

You are this year celebrating a decade of doing business in Serbia. The first Leoni facility in the country opened in Prokuplje, the second was established in the municipality of At our plant in Prokuplje, where has both jobs for workers with Doljevac, after which a factory was Leoni started in 2009, we today Leoni the lowest level of qualifications opened in Niš and one in Kraljevo is currently under construction. Is all have 240 of our first employees and for prospective engineers who develop new products. Does Serbia of this in line with the company's still on board have enough workers to satisfy the initial plans for Serbia? needs of Leoni?

- Yes, this is a jubilee year for Leoni Serbia. In May we had - I wouldn't say that Leoni has jobs that require the lowthe great pleasure of celebrating the 10th anniversary, est level of qualifications. That even applies to jobs in together with our company’s representatives from the production, where producing wire harnesses requires a headquarters in Germany, employees, local institutions, good qualification and a high level of concentration and business partners and media, and the feedback we received discipline. The wire harness business delivers a product from many guests praised us for how fast everything has with a high probability of failure, so people need to be spebeen progressing. cially trained. On the other hand, higher qualified people, I have to add that we, as a company, are really proud 26

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engineers, are required when it comes to improvements to and development of our products. We, as a company, feel that the labour market in Serbia has changed and nowadays especially higher educated people are offered more career opportunities on the market.

Leoni in Serbia mainly works for BMW and Mercedes Benz, which are both recording production and sales growth. Does this mean that your investment in Serbia is safe and stable?

- I would like to remind readers that Leoni is also producing for Jaguar Land Rover, another premium car company, located in the United Kingdom. We currently produce the highest content for BMW and in the future will produce slightly higher content for Mercedes Benz too. What is good for us, at Leoni Serbia, is that we are producing for the biggest platforms in the customer portfolio of both brands, BMW and Mercedes. So, even if the global car market were to fall, Leoni here in Serbia is protected in producing high-quality products and so we can say that our business is stable.

Kragujevac's Faculty of Civil and Mechanical Engineering in Kraljevo. We already have two generations of 23 scholars.

Eight of them already started working at the company and these young people proved to be very agile, hard working and creative, which is very important in this business. Some of them work in our HR department, some in Finance and IT, while most of them are in Engineering. We started and continue with this programme because we believe it is really important to give an opportunity for young and educated people to start professional careers in their field, so they can stay in the country and plan their future here.

If you manage to implement all plans, Leoni will become the largest employer in Serbia's industrial sector next year. Does this serve as a good recommendation for other German How much progress has been made companies to invest in our country?

We grant scholarships to on the planned establishment of the - Leoni is already the biggest industrial employer in Serbia, with close to the best students from the Leoni Serbia Research & Development Centre? Is it intended to serve 9,000 employees. Based on the fact University of Niš and the the company as a whole, or just the that Leoni has been on the market University of Kragujevac's company's plants in Serbia? here for more than 10 years and has invested over 111 million euros, many Faculty of Civil and Mechanical - Unfortunately, Leoni is not forcing the progress to implement the German companies have contacted Engineering in Kraljevo planned Research&Development us and asked about our impressions Centre, due to the actual labour marand, ultimately, about conditions for ket in Serbia as mentioned above. Currently, the situation business activities in Serbia. We know that some of them on the labour market here is pretty challenging – on one decided to come and to invest in Serbia after hearing hand, there is lack of highly-qualified people, mostly about our positive experiences. engineers, while on the other hand, the competition is also really huge and strong. We believe that the situation You are proud of your scholarship programme for the on the labour market will naturally reach a certain level best students of the University of Niš. How have the of stability and when that happens we will be able to scholarship participants who started working at your reconsider and continue with plans for R&D activities. company proved to be as workers?

So, to conclude, this initiative has not been stopped, but - We grant scholarships to the best students not only is currently on hold. from the University of Niš, but also from the University of 27

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INTERVIEW

MARTIN KNAPP, DIRECTOR OF THE GERMAN-SERBIAN CHAMBER OF COMMERCE

DYNAMIC

Cooperation Serbia is increasingly becoming a country that attracts interest among German companies, either as investors or as businesses interested in integrating domestic suppliers into European value chains.

There has been rising interest recently in Serbia's fastgrowing start-up scene. All of these initiatives are enriching German-Serbian cooperation and creating space for new, exciting jobs that keep young Serbs at home

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artin Knapp assumed the position of new director of the German Chamber of Commerce in Serbia and managing director of the GermanSerbian Business Association way back on 1st September 2013. His job has become increasingly complex and sophisticated over the course of the last six years, as the German-Serbian Chamber of Commerce supports many different initiatives that connect the German and Serbian economies.

Where are the greatest business opportunities for German-Serbian cooperation at present?

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- The best opportunities definitely exist in two areas.

First of all, Serbia is a very interesting location for German industry to invest. Our Chamber takes care of at least one new investor every month. On the other hand, more and more German companies are interested in suppliers from Serbia. Here we try to meet demand via the Western Balkans Purchasing Initiative. Every year, German industrial companies find qualified suppliers from the countries of the Western Balkans through this initiative. The project is financed by the German Ministry of the Economy. This alone shows the importance that the government in Berlin attaches to the issue of sup-

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You noted recently that the development of young companies in Serbia is more than visible, though the pace doesn’t match that of Berlin, for example. To what extent are these trends interesting for German companies?

The German Chamber of Commerce organises net- The Belgrade start-up scene is very similar to that in working among German companies and young Serbian Berlin, even though it is much smaller. For young procompanies that have the opportunity to use their netfessionals, especially from the IT sector, it is definitely works, not only in Germany but alan alternative to emigration. This is so on the global market. How much one more reason to promote these Our Chamber takes care have Serbian companies utilised companies and open up business of at least one new investor opportunities for them all over the this opportunity?

- When we invited representatives every month. On the top of world. Thanks to modern technology, of the Serbian start-up scene to first a modern, innovative company that, more and more German where meetings shortly before the summer is physically located is becoming companies are interested in ever less important. Programs can be break, interest was very lively. This auwritten anywhere where the quality tumn we will launch a series of events suppliers from Serbia of data networks allows unhindered at which our member companies and communication with the rest of the start-ups will get to know each other world. Of course, there must also be a start-up-friendly better. Of course, we don’t yet know how many cooperation environment. It is always about the triangle start-up deals will ultimately emerge. However, we firmly believe investor - potential customer. We see our role mostly in that there is significant potential. We just have to bring identifying and attracting potential customers. the right people together with the right partners. pliers. And it is not only about suppliers in general, but in particular suppliers from this region, which is to be integrated into the European value chains.

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What are the common challenges faced by those new companies on the Serbian market? To what extent are they similar to those faced by mature foreign and domestic firms?

- IT experts in particular are in great demand everywhere,

workers need to be trained to meet the demands of their new jobs, but that is normal. As far as very young people are concerned, the new dual vocational training system was just launched on 1st September. The reason that this hasn’t been noticed so much by the public has to do with the fact that last year there were already more than 4,000 trainees in almost 600 companies trained according to the new system.

Business didn’t even wait for the official kick-off of the new system.

This shows how strong the industry’s need is for well-trained specialists.

However, the success of the dual vocational training system does not only depend on companies. Young people and their parents should also understand that there is an interesting alternative to university studies, or even a supplement to those studies. In Germany, the most sought-after engineers are those who have previously completed an apprenticeship in a technical profession. The Serbian system makes it even easier for students than the German system. At least with four-year study profiles they automatically acquire entrance qualifications for higher education upon the completion of training.

and many people are naturally susWe will launch a series of ceptible to the temptations of large events this autumn at which Based on the experience of the opand well-known employers abroad.

However, these young people should our member companies and erations of existing German compabe aware that working for a Belgrade nies, what incentives are most needSerbian start-ups will get to ed at the level of everyday business start-up can be more enjoyable and creative than working for a large activities in order to spur growth? know each other better international software company.

- Investors actually need the same However, it’s ultimately up to everyone to decide for things at all times and everywhere, regardless of whether themselves. Our vision is that Serbia itself will soon they are international or domestic investors. The stability become so attractive that people from other countries of the business environment is of utmost importance. It will come here to work in these kinds of innovative commust be possible to plan the course of a company’s life. panies. In any case, the quality of life in Serbia would Investors don’t like surprises from the government and support such a development. the administration. There must and will always be legal requirements of all kinds for the benefit of the general Is the best trained Serbian workforce already in Gerpublic, and as long as they are known in good time and many? How do German companies based in Serbia recan be taken into account, this usually doesn’t cause flect on the availability of the workforce? any problems. Legal certainty is also important. Court - That would be a pity. No, at the moment new investors cases must come to a final decision within a reasonable can still find the manpower they need. Of course, these time-frame.

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Exceptional growth in turnover again this year has confirmed the very successful operations of dm drogerie markt in Serbia Belgrade – dm drogerie markt concluded the 2017/18 business year in Serbia with a record turnover of RSD 10.9 billion and growth of 29.3 per cent. After 15 years of successful and responsible operations in the country, dm drogerie markt now has a sales network consisting of 97 retail outlets in 27 cities across Serbia and over 850 employees. dm drogerie markt in Europe last year realised a record turnover of €10.7 billion, with 4.3% growth in turnover compared to the previous business year, thereby proving itself to be the leading drug-store chain on the European market. The dm drogerie markt currently operates in 13 countries of Europe, with a network of over 3,500 retail outlets and over 61,000 employees.

With a range including around 14,000 products, over a thousand of which are produced in Serbia, dm is known as a place to purchase everything in one place, from the segments of beauty products, natural cosmetics and organic foods, but

also personal hygiene, household and baby care products at affordable prices. In addition to this, dm also offers the largest selection of private labels on the Serbian market, with around 4,000 products. These labels have the same quality in all 13 countries where the company operates. The dmBio brand has the widest range of organic food products in Serbia, with over 350 products. Alongside the further development of its private brand range, an additional focus is also placed on brands that are available exclusively at dm outlets.

Furthermore, dm drogerie markt has also proven to be a highly desirable employer, providing

“We've worked intensively in the previous year to innovate our offer of products and services, but also to introduce new brands.

Determination and commitment to the local market resulted in over 12 million purchases being made in the last business year, which confirms the trust that we've gained among our customers. In the coming period, dm drogerie markt in Serbia will continue its dynamic investments in the opening of new outlets and the modernising of existing infrastructure, while numerous initiatives to support the community are also planned,” said Alexandra Olivera Korichi, director of dm drogerie markt Serbia and North Macedonia.

Under the slogan “Durable bag for life!", with a lifetime warranty on a dm cotton shopping bag and the aim of reducing the consumption of plastic carrier bags in everyday shopping, dm has enabled purchases of the dm cotton bag, which owners can replace for free if their existing bag becomes damaged or torn.

Alexandra Olivera Korichi accepts the Đorđe Vajfert National Award for CSR

On 24th May 2019, the Chamber of Commerce & Industry of Serbia awarded dm drogerie markt the Đorđe Vajfert National Award for Corporate Social Responsibility, which is awarded every other year to companies and organisations that have shown the highest commitment to the principles of social responsibility in Serbia. its employees with strong support, levels of earnings that are attractive on the market and a host of additional benefits - two additional salary instalments during the course of the year, free health checks and free German language courses.

During the past financial year, dm donated over RSD 4.5 million through various humanitarian projects.

Alexandra Olivera Korichi and Vesna Stojanović, CEOs of dm Serbia and dm North Macedonia

In an effort to contribute to the development of domestic production and the competitiveness of domestic products on our market, dm drogerie markt has worked with partners to launch the project “dm Inkubator”, as

an additional form of support to Serbian entrepreneurship, which provides Serbian manufacturers with the opportunity – through qualitative mentoring – to develop and market their products via the dm chain of outlets. The project was concluded successfully, with a total of 18 local manufacturers having gained a unique opportunity to market 57 products from the segments of food, care cosmetics and beauty product ranges on the shelves of dm retail outlets across Serbia.

With their participation in this project, domestic manufacturers gained an opportunity to present their products on the domestic market, in the best possible way.

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BUSINESS PARTNER

CORPORATE

VOJVODINA DEVELOPMENT AGENCY – RAV

Germany INVESTOR No.1 The opening of the factory of company ZF (ZF Friedrichshafen AG) - one of the leaders in the production of auto parts - in Pančevo's industrial zone confirms that Germany is the largest investor in Vojvodina, but also that the automotive sector – within which the largest number of German companies operate – is generally one of the most prominent sectors in Vojvodina

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ccording to data from RAV - the Vojvodina Development Agency, German companies rank first in Vojvodina in terms of levels of investment and employee numbers. Speaking about the position and plans of the automotive sector, in which his company operates, is Milan Grujić, one of two general managers of ZF Serbia.

According to information provided by RAV, German companies are ranked first in Vojvodina in terms of investment level and employee numbers. Of 59 German companies, 48 are currently active and have made total investments of €1.4 billion and created 20,000 jobs. Among them are Siemens, Stada, Metro, Fresenius Medical Care, Thyssenkrupp, Henkel, Mehler Vario System, Geze, Mühlbauer, Lidl, Carl Warrlich, Dr. Oetker, Phoenix pib etc.

Automotive parts are produced by Bosch GmbH, IGB Automotive (a subsidiary of IG Bauerhin), DAD Dräxlmaier Automotive (a subsidiary of the Dräxlmaier Group), Norma

Group, ContiTech (Continental AG subsidiary), Continental with its R&D centre developing software solutions for the automotive industry, aforementioned ZF and others.

Testifying to the extent to which the automotive sector is active and involved in both business life and the life of the community is RAV's now traditional autumn day of suppliers for the accompanying automotive industry sector, which will this year be held on 19th November at Novi Sad's Master Centre.

SUPPLIERS' DAY – METAL, PLASTICS, RUBBER 2019 As in previous years, this major B2B event will bring together local and foreign companies from the automotive industry, plastics and rubber sectors, as well as the metal sector. More than 200 participants from around 100 exclusively manufacturing companies are expected to register via the RAV website. Willkommen zum Lieferantentag - Metall, Kunststoff, Gummi 2019.

WILLKOMMEN IN VOJVODINA, WILLKOMMEN IN DER RAV

Vojvodina Development Agency – RAV RAV serves as a "one-stop-shop" for all investment-related enquiries. Contact our experts to learn how you can benefit from investment opportunities in the Vojvodina region.

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Contact: www.rav.org.rs office@rav.org.rs ana.muskinja@rav.org.rs Tel: +381 21 472 32 40; +381 21 472 32 41

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Milan Grujić Managing Director of ZF Serbia Milan Grujić is one of two Managing Directors of ZF in Serbia, responsible for commercial business aspects ZF is a global technology company, a driving force to next generation mobility, innovation and technology leader in the automotive industry that is rapidly changing and providing new and different challenges to all involved.

In order to lead the way and stay ahead, ZF understood the need to develop a globally balanced network, stay close to customers and produce competitively with the ability to expand and speed up.

ZF recognised those potentials in Serbia and Pančevo and at the beginning of 2018 made the decision to venture into this location with its biggest European investment. We were relying strongly on the positively changing economic climate and country’s determination to integrate into the European community, which is reflected in attractive investment opportunities, available resources and infrastructure, and - crucially - understanding, support and cooperation of all partners and cooperates, local, provincial and Serbian government institutions and officials and

the general community.

I believe this same reasoning is driving new investments and growing a strong business community in Pančevo, also in Vojvodina and elsewhere in Serbia, and we see new companies - a lot of them German - learning and trusting the experience and success of those who were here initially, like ZF. Today, just 19 months after the decision was made to choose Serbia as the newest ZF production location, ZF Serbia is an active company operating from a modern production plant covering 25,000m2 in Pančevo's industrial zone with 400 employees and growing. The ZF Pančevo plant officially opened in June 2019, also announcing Phase 2 of the project –plant extension to 55,000m2 and the building of a research & development centre, which I can proudly say are now in the construction phase and ahead of schedule, expected to be in operation in second half of 2020. Over the next two years, 700 new employees will join the company.

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BUSINESS PARTNER

GERMAN ECONOMY

ROBUST

And Resilient

The German economy is recognised for its enduring competitiveness and entrepreneurial growth, which is supported by openness to global commerce, well-protected property rights and a sound regulatory environment 34

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G

ermany has the largest national economy in national output. Germany recorded the highest trade Europe, and the fourth-largest by nominal surplus in the world in 2016, worth $310 billion, making GDP in the world - following the U.S., China it the biggest capital exporter globally. Germany’s top and Japan – and fifth according to GDP per export destinations are the U.S. ($111B), France ($103B), capita. The country accounted for 28% of the euro area China ($95B), the UK ($90.3B) and the Netherlands economy in 2017 according to the IMF. The service sec($84.5B). The top countries of origin of German imports tor contributes around 70% of total are China ($109B), the Netherlands GDP, industry 29.1%, and agriculture ($89.9B), France ($69.1B), the U.S. Germany’s economy 0.9%. Unemployment stood at 3.8% ($61.6B) and Italy ($58.5B). is expected to produce in 2017 – a massive improvement on Germany’s top 10 export goods the recession period rate of 7.7%. are vehicles, machinery, chemical $4.2 trillion in 2019, as Germany is often recognised for goods, electronic products, electrical measured according to nominal equipment, pharmaceuticals, transits manufacturing sector, which is gross domestic product the largest in Europe, and its strong port equipment, basic metals, food export sector. Important sectors products and rubber and plastics. include automotive production, mechanical engineerGermany is also rich in timber, lignite, potash and salt. ing, electrical engineering, chemicals, environmental The increasingly hostile trade war between the U.S. technology, fine mechanics, optics, medical technology, and China, coupled with fears of a ‘no-deal’ Brexit, is biotechnology and genetic engineering, nanotechnology, today causing problems for Germany’s manufacturing aerospace and logistics. sector, while shipments abroad have fallen by 1.3% - the The country is the third largest exporter in the world, most in more than six years. That led to a contraction with goods and services worth 1.21 trillion euros ($1.27 in total economic output – the second over the course trillion) exported in 2016. Exports account for 41% of of the past year.

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500 largest firms also all have operations in Germany.

Germany’s economy is expected to produce $4.2 A total of around 45,000 foreign companies operate trillion in 2019, as measured by nominal gross domestic throughout the country. product. However, according to a SMEs are nevertheless at the recent warning issued by the FedGermany remains core of Germany’s economy, with eration of German Industry (BDI), the European Union’s most 3.6 million enterprises making up a no-deal Brexit could wipe out any prospect of growth in the German politically and economically 99.7% of all companies. They are economy this year. recognised for their rapid realisation influential member Economists suggest that weaker of marketable products, a high degree global trade and upheaval in the auto of specialisation and the ability to industry may push Germany’s economy further into resucceed in taking niche positions in the market, making cession, impacting on the broader euro-area economy. many of them world market leaders. Germany also has Bloomberg reports that German companies, including a relatively new and vibrant start-up scene, especially Henkel and Continental, have blamed a weaker outlook in bigger cities like Berlin. on geopolitical uncertainty and trade. Many firms have Some of the world’s top trade fair locations are in highlighted difficulties in predicting earnings prospects.

Germany. The largest annual international trade fairs and Of the world’s 500 largest stock-market-listed congresses are held in several German cities, including companies measured by revenue in 2017, the Fortune Hanover, Frankfurt, Cologne, Leipzig and Düsseldorf.

Global 500, 29 are headquartered in Germany, while Germany recently became the first major indus53 companies listed on the Fortune Global 2000 index trialised nation to commit to the renewable energy are headquartered in Germany, the Top 10 being Allianz, transition called Energiewende. The country is also Daimler, Volkswagen, Siemens, BMW, Deutsche Telekom, known as the world’s leading producer of wind turBayer, BASF, Munich Re and SAP. Moreover, the world’s bines, while renewables now produce over 27% of all 36

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electricity consumed in Germany. many say Germany profits the most from The country has been flourishing over its membership. Its strong manufacturing the past 12 years, with robust economic base ensures that it has plenty to export growth and record low unemployment to other members of the eurozone and rates. According to the OECD’s economic does so more cheaply. That gives German survey, the German economy has proven companies a competitive advantage that remarkably resilient in past years. During only improves over time, creating prosperthe years of global recession, a strong ity and providing German consumers with manufacturing sector, export and tight more money to spend locally. As a result, budget policy saved Germany from the the domestic market recently became a deeper recession that was felt throughout more significant driver of economic growth, Europe. Economists are pushing the Gerexperts suggest.

By the same token, the German econman government to employ a range of fiscal measures to help the economy traverse omy has a profound impact on the smaller troubled waters. The country’s surplus in European economies. As shown by a 2018 the first half of 2019 study entitled “Die Bewas 45.3 billion euros deutung der deutschen Business freedom ($50 billion), or 2.7% of Wirtschaft für Europa” GDP, while the federal (Importance of the and investment freedom budget surplus stood German Economy remain strong overall in at 17.7 billion euros. for Europe), German Germany. Long-term As noted by anaimport demand alone lysts, business freeguarantees more competitiveness and dom and investment than 4.9 million jobs entrepreneurial growth freedom remain strong in other EU states. overall in Germany. are supported by openness Demand for imports Long-term competifrom the German into global commerce, tiveness and entrepredustry is particularly well-protected property neurial growth are supadvantageous for the ported by openness economies of Central rights and a sound to global commerce, Eastern Europe, which regulatory environment well-protected propare closely intertwined erty rights and a sound with Germany, as well regulatory environment. The current poas for the smaller Western European counlitical coalition agreement suggests that tries neighbouring Germany. In countries a slight loosening of fiscal policy can be such as Czechia, Slovakia, the Netherlands expected through increased public inor Austria, German import demand contribvestment in infrastructure and digital utes between seven and more than eight technologies, greater spending on child per cent of total gross value added. This care and the implementation of a lower represents several hundred thousand jobs income tax rate, media report. Government in each case, the study suggests. spending on subsidies has also reached Yet, as the OECD warns, Germany record levels. will face a number of challenges in the Germany remains the European Unlong run. Potential growth is estimated ion’s most politically and economically to fall over the next 20 years as a result influential member state. of demographic changes, which suggests Germany benefits from its membership that Germany needs to secure the supply in the EU and its adoption of the euro. Like of skilled workers. Social inclusion also many other eurozone members, the power needs to be promoted, with the share of of the euro means interest rates stay low, low-paying jobs having risen considerably which has spurred investment. In fact, over the recent past.

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EDUCATION

STRATEGIC

Internationalisation As Europe's largest country, Germany has found itself in the spotlight in the wake of recent events, such as the ongoing refugee crisis, the European sovereign debt crisis and even the UK's Brexit vote. All of these developments have the potential to slow down (if not reverse) the European integration process – an issue that's particularly concerning to Germany, which has been a significant driver and benefactor of European integration historically

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he rapid ageing of Germany’s population of 82.1 million is another looming concern. Germany’s Federal Statistical Office estimates that the population will fall to a total of 67.6 to 78.6 million by 2060. Even in the best-case-scenario, the declining population would result in a reduced working-age population, which could undermine the government’s ability to fund public services and could weaken the country’s economic foundations.

Given these challenges, it is no surprise that the German government has made the internationalisation of higher education a strategic objective. Internationalisation has various

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benefits – ranging from positive impacts on the quality of research and education to enhancing the global reputation of academic institutions. It also has a number of economic “spill over” effects. It can help alleviate Germany’s skilled labour shortages and stimulate immigration. As illustrated by the German Academic Exchange Service (DAAD), foreign students in Germany yield a considerable economic net gain for the society. This holds true despite high public expenditure on foreign students and the fact that German universities charge virtually no tuition fees, even for international students.

Factors like the absence of tuition fees and a reputation

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for high-quality education - particularly in engineering and the natural sciences - have helped Germany become an increasingly attractive country for mobile students seeking an education abroad. Germany has attracted five per cent of the world’s international students and achieved a rating as the 5th most popular destination country for foreign students after the U.S., UK, Australia and France.

International student arrivals have since increased, while Germany is also an increasingly significant source of outbound international students.

The German government seeks to further increase the country’s international student population to a total of 350,000 students by 2020. A joint position paper issued by the federal and state governments calls for the “strategic internationalisation” of universities, better integration of foreign students and increased funding for transnational partnerships and international marketing. It also advocates expanding the number of degree programmes taught in Eng-

Germany has attracted five per cent of the world’s international students and achieved a rating as the 5th most popular destination country for foreign students after the U.S., UK, Australia and France...

The government seeks to further increase the country’s international student population to a total of 350,000 students by 2020 lish at German universities. This recommendation stems from the fact that mandatory German language requirements for most degree programmes represents a substantial obstacle to enrolling foreign students. The number of English-taught master’s programmes has increased considerably in recent years and currently accounts for approximately ten per cent of all programmes. Undergraduate-level programmes, on the other hand, are still taught almost exclusively in German.

The German government has also adopted immigration policies that support its efforts to internationalise higher education. Implementation of the European “Blue Card” legislation was a major step, as it provides qualified international graduates of German universities with a pathway to permanent residence and access to the labour markets of most EU member states.

According to the OECD, Germany invested 1.2% of its gross domestic product in tertiary education. Given the dominance of public institutions in German higher education, it is not surprising that more than 85 per cent of financing comes from public sources. The German Rectors Conference places total government spending on university education at about €23.3 billion - 85.4% of which 39

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is provided by the governments of individual federal states.

Given that Germany’s 16 Bundesländer states have legislative authority over university education, the role of the federal government in funding higher education has been limited traditionally. In recent years, however, both the federal government and states have sought to expand the federal role in cases of “supra-regional importance”. One example of such increased financial intervention by the federal government is the so-called “Excellence Initiative”, a programme in which the City of Berlin

provided the bulk of the 4.6 billion euros granted to institutions between 2005 and 2017 in order to improve the global competitiveness of German universities.

The funding was allocated to establish new graduate schools and create “clusters of excellence” that connect universities, industry and research institutes.

One of the most significant developments in the further internationalisation of German higher education is the recent mass arrival of Indian students at German campuses. India is - after China - the second largest country of origin for international students worldwide, while the number of mobile Indian students is projected to grow. Between 2014 and 2015, enrolments of Indian students in German higher education institutions grew by a remarkable 24.4%, to a total of 11,655 students, resulting in India overtaking Russia as the second largest country of origin for foreign students studying at German campuses. In light of these trends, some researchers predict that Germany could soon overtake the UK to become the largest market for international education in Europe.

In terms of total numbers of refugees, no other EU country

has been impacted as much as Germany by the current refugee crisis. According to the German Interior Ministry, the country has accepted 890,000 refugees and received 476,649 formal applications for political asylum – the highest annual number of applications in the history of the Federal Republic.

Integrating such large numbers of migrants would present a challenge for any society. The German government recognises that access to education is vital for successful integration, especially given that more than half of current asylum seekers are aged under 25. Approximately 325,000 school-aged migrant children, between the ages of six and 18, are said to have entered Germany in 2014 and 2015. The German states estimated in 2015 that effective schooling of these children would require the recruitment of 20,000 additional teachers, at a cost of €2.3 billion annually. In higher education, €100 million is to be allocated over the next four years to facilitate entry into study programmes. The funds are being used to ramp up financial aid, increase staffing in academic advisory and public information campaigns, as well as to expand the number of available language courses and seats in academic prep courses.

The standard academic aptitude test for foreign students (TestAS) is now free for refugees and is increasingly being offered in Arabic. Since many refugees arrive without academic documents, the test can assist university admission – though gaining entry into a degree programme often remains difficult due to language barriers and bureaucratic obstacles.

In 11 of Germany’s 16 states, children with a migrant background can take classes in their home language in public schools. Around 98,000 children learn in one of 23 mother tongues in the country’s most populous state, North Rhine-Westphalia. Second in line comes Rhineland-Palatinate, where 13,400 students took classes in the language of their family.

Almost 44,000 students took home language classes in Turkish in the last school year, while the Kurdish languages of Kurmanji and Sorani are also taught.

Home language classes were initially offered by schools or consulates, as a way of helping prepare the children of guest workers to “return” to their home countries. That goal, however, has long since been abandoned and school pupils nowadays may be third-generation Germans with only tenuous links to their families’ countries of origin. Source https://wenr.wes.org

In 11 of Germany’s 16 states, children with a migrant background can take classes in their home language in public schools. Around 98,000 children learn in one of 23 mother tongues in the country’s most populous state, North Rhine-Westphalia

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LJILJANA TOPIĆ, DIRECTOR OF GALENIKA PHARMACIA

CORPORATE

EXPANDING

Production and Markets

Galenika Pharmacia emerged through separation from company Galenika Holding seven years ago, with the aim of contributing to the improvement of quality of life and the development of the healthcare system. Although staff are very proud of the company's tradition and experience, they are focused fully on the future and new technologies

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longside the domestic market, Galenika Pharmacia has for years also been supplying the markets of the Federation of Bosnia-Herzegovina, North Macedonia and Montenegro, while its products also reach Nigeria and Iraq and – as of very recently – it can also boast of newly established cooperation with Germany.

Galenika Pharmacia carries a renowned trademark that was created exactly 70 years ago, and to this day it is focused on new technologies in healthcare. Proud of the past, but directed towards the future – is that a good description of your company?

- Following a period of intensive work and development, we succeeded in securing a market leadership position that we are maintaining successfully. We supply all healthcare institutions – from community health centres, pharmacies and pharmaceutical institutions, via private and state hospitals and clinics, to major health centres.

We have divided our operations by sector, so we have a sector for the production of sterile and non-sterile compression gauzes, plasters, adhesive bandages and other bandaging materials, a sector for the distribution of medical devices on the territory of Serbia and surrounding countries, and a sector for the production of first aid kits, automotive pharmacies, as well as first aid kits for employees in emergency situations and during natural disasters. We've placed a special emphasis on launching a facility for the sterilisation of medical equipment and other products that are subjected to sterilisation, as well as the collection and treatment of pharmaceutical, medical and laboratory waste, while we are also working on the expansion of galenic formulation production and para-pharmaceuticals.

You also deal, among other things, with the distribution of medical resources on the territory of Serbia and surrounding countries. Do you plan to conquer the European market?

- Apart from the domestic market, we've also been supplying the markets of the Federation of Bosnia-Herzegovina, North Macedonia and Montenegro for years; we cooperate with healthcare institutions in Nigeria and Iraq, and I can now state exclusively that we have just established cooperation with Germany.

Our brand, quality and reliability, as well as competitive prices, provide us with an advantage over many other companies involved in the same business. Conquering new markets, especially large and demanding ones like Germany's, best testifies to the quality of our products and services, our professionalism and knowhow. We will strive to continue justifying the trust of our long-time customers, but also to acquire new markets and new associates, all in accordance with our corporate slogan “Reliably yours”. It unifies all of our core values.

If a buyer is satisfied with the quality and price of our products, our reliability and professionalism, the end user will also be satisfied, which is our goal

Your company is a member of the German-Serbian Chamber of Commerce. What has this brought you?

- Membership in the German-Serbian Chamber of Commerce requires good business results, which is yet more confirmation for us and our work. Only serious companies can enter such an eminent organisation, which is considered among the most respected in our country. On one hand, this gives us an advantage in negotiating and discussing future cooperation, while on the other hand it brings us new jobs. New partners contact us on their own accord, as they know that they can trust us thanks to our references, but also thanks to the fact that we are a member of the German-Serbian Chamber of Commerce.

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DRESDEN – PHOENIX CITY

“FLORENCE

On The Elbe” T

In Saxony, on the River Elbe, just twenty-odd kilometres from the border with the Czech Republic, is Dresden - “Florence on the Elbe”.

A city of wonders that was literally resurrected after WWII, it has over 50 different museums and is filled with contrasts, Baroque styles but also modern architecture, Dresden isn't only synonymous with culture, but is also a city in which culture is a way of life 42

he emergence of the city itself, and the settling of today’s Saxony, is connected to the 12th century and the Lusatian Serbs/Sorbs, an old West Slavic people who today inhabit the area to the southeast of Berlin towards Poland and the Czech border, all the way to Dresden. The partition of Frankish lands in the ninth century led to the emergence of Germany, the turbulent history of which had a direct impact on events and happenings in Dresden’s history. The city was ruled from the 12th century by the dynasty of the House of Wettin, the lineage of which saw the Albertine branch come to power. The city was first mentioned in records under the name Dresden in 1206.

A city razed to the ground several times, the devastation of the Seven Years’ War (1756 to 1763) was continued by Napoleon in 1813. The peak of this fiery pyre came with the bombing of 13th and 14th February 1945, three months before

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is one of the most beautiful in Europe – are art galleries, the the end of World War II. The sad history of the bombing of Semper Opera House, the Old Town Watchtower designed Dresden by Allied forces destroyed around 80 per cent of by famous architect Karl Friedrich Schinkel and Taschenbuildings, including the most beautiful edifices architecturally, and the point of the bombing remains puzzling to many berg Palace, which has since been converted into a luxury historians to this day. Demolished or damaged at that time, Kempinski hotel. The Zwinger, a palace built between 1710 among other structures, were the city’s most famous buildand 1728, represents the perfect symbiosis of architecture and horticulture, with a park designed for outdoor recepings, including the Lutheran Frauenkirche - Church of Our Lady, the Hofkirche Catholic Cathedral and the Semperoper tions. It was here that Augustus II The Strong organised a opera house. With great efforts and the strong desire of wedding ceremony to mark the marriage of his son to the Dresden citizens, the city and all of its key sights were rebuilt or included in the reconstruction process, ensuring that the city rose from the ashes like the mythical Phoenix and today stands proudly on the same foundations.

The story of Dresden is like the fairytale most closely associated with the name of powerful ruler Friederick Augustus I Strong - the king of Saxony, Lithuania and Poland who ruled during the 18th century. Stories and legends about this powerful ruler suggest that he earned the nickname ‘Strong’ on the basis of his physical appearance, while he loved to travel around Italy and France. According to the nature of aesthetics, the king sent artists for further training all around the world, which is evident at almost every turn.

Like many other Dresden buildings, THE OLD TOWN OF DRESDEN the Church of Our Lady was almost completely demolished during the daughter of the Austrian Emperor. The A city razed to the bombing of 1945. Works on the church’s grand celebration was illuminated by reconstruction continued for many more than 60,000 candles, while it is ground several times, years after that event, and the resalso interesting that no one was ever the devastation of the Seven resident in that palace. toration wasn’t officially completed Dresden’s Old Masters Picture until 2006, which symbolically hapYears’ War (1756 to 1763) was Gallery houses one of the world’s richpened to be precisely 800 years after continued by Napoleon in the founding of the city. The citizens est collections of paintings of great 1813. The peak of this fiery had such a strong desire for as many masters (around 750 displayed works). parts of the old church as possible to pyre came with the bombing It boasts works by Raphael, Giorgione, be preserved that their wishes were Titian, Bernardo Bellotto and Vermeer, of 13th and 14th February 1945, as well as works of great Dutch painters listened to and the result is a church resembling a mosaic. The darker parts three months before the end including Rubens, Jordaens, Rembrandt of this mosaic comprise the remains of many others. of World War II. The sad history andAugustus the original church, while the brighter II the Strong was pasparts are new additions, which enables of the bombing of Dresden by sionate about porcelain, so the gallery one to see clearly how badly the church Allied forces destroyed around of the Dresden Porcelain Collection was damaged. at the Zwinger includes vessels and 80 per cent of buildings, Not far from the church is the figures from the Chinese imperial Song, famous square of the Theaterplatz, including the most beautiful Ming and Kangxi dynasties, as well representing a special cultural quarter as Japanese Imaemon and Kakiemon edifices architecturally of the city. Around this square – which porcelain. He even opened Europe’s 43

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in this part of the city is the ‘Golden Rider’ statue of the mighty King August II. The Dresden fairytale is also reflected in the residential castle of the Royal Palace (Dresden Rezidenzschloss), which was among Germany’s most important Renaissance buildings. Dresden became the home of Saxon kings as of 1485, while the Royal Palace had key architectural significance from 1548-1556, when the court was reconstructed, and as such it was known for centuries as a significant meeting place for princes and kings, as their place of power. In the decades after World War II, the Royal Palace was forced to defend itself vigorously against demolition plans, until reconstruction finally began in 1986. The Royal Palace is today the greatest cultural gem of this part of Europe.

Within the scope of the palace are several museums that preserve the treasure of King August, gifts and the famous, priceless Dresden Green Diamond”. Visitors can enjoy over 380 exhibits, precious stones, jewellery and objects within the exhibition of the Grand Hall (Riesensaal).

The Kupferstich-Kabinett (Cabinet of Prints, Drawings and Photographs) is located in the spacious rooms of the THE FAMOUS SEMPER OPERA castle, while the most attractive rooms Semper, and was completely destroyed include the New Green Vault (Neues Dresden became the home Grünes Gewölbe), the Historic Green during the bombing of 1945, only for its doors to reopen to the public some 40 of Saxon kings as of 1485... Vault (Historische Grünes Gewölbe) years later. Connoisseurs claim that and the Turkish Chamber (Türkische In the decades after WWII, Cammer), which houses the largest and the acoustics and sound in this opera house are better than those of Milan’s the Royal Palace was forced oldest collection of exhibits from the famous La Scala. period of the Ottoman empire. to defend itself vigorously The famous Lutheran Frauenkirche On Augustus Street (AugustusChurch of Our Lady, built from 1726straße) is the aforementioned famous against demolition plans, 1743, is among of the symbolic landProcession of Princes mural that feauntil reconstruction finally tures all of the historical rulers of marks of this capital of Saxony. After began in 1986. The Royal enduring major devastation during the Saxony and is composed of thousands bombing, it became a symbol of the Palace is today the greatest and thousands of tiny porcelain tiles. war, only for its reconstruction – from Dresden also has an extremely rich cultural gem of this part 1994-2005 – to lead to it becoming a offer when it comes to music. Known symbol of reconciliation and national for its music for almost 700 years, of Europe unification. One interesting fact is that don’t be surprised to see people carit was visited regularly by Johann Sebastian Bach, who also rying instruments on the streets, as most young people in personally opened the church in 1726. The church’s interior is Dresden play some musical instrument or other. so spacious that it can accommodate over 3,000 worshippers.

Taking everything into account, it is completely clear why The famous Brühl’s Terrace, better known as the Balcony Goethe loved this city, why Schiller’s “Ode to Joy” originated of Europe, offers magnificent views of the surrounding in the heart of Dresden, and why Dresden is synonymous parks, but also the New City (Neustadt) located on the with culture, as a symbol of rebirth and life that many call opposite side of the river. The most magnificent sculpture the “Dresden Fairy-tale”. first porcelain factory in 1710, in the small town of Meissen near Dresden. Along the side of the Royal Palace is the Fürstenzug [Procession of Princes] mural, which is 109 metres long and almost 10 metres tall and features all the rulers of the Wettin Dynasty, and which is composed of over 23,000 Meissen porcelain tiles.

Also attracting attention is the Semperoper (Semper Opera), which was named after its creator, architect Gottfried

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VOLKSDEUTSCHE

People With A

DANUBIAN MENTALITY E

History records that 500,000 Danubian Germans lived on the territory of the Serbian districts of Srem, Banat and Bačka. The Danubian Germans came to Vojvodina in several waves between the 17th and 19th centuries, where they gradually developed their own culture, identity and customs, which are still present today 46

mbarking from the city of Ulm in flat-bottomed wooden boats, so-called “Ulm boxes”, the first Germans came from distant fiefdoms and duchies to settle parts of Southeast Europe via the Danube. They established their new homes in Romania, Hungary, Vojvodina and parts of Slavonia.

The colonisation of Germans began immediately following the expulsion of the Turks in the 17th century.

Devastated parts of Europe had to be settled under Habsburg rule, and the Austro-Hungarian authorities were skilled at creating states.

According to some preserved statistics, the colonisation of the region we today refer to as Vojvodina was first launched by Emperor Charles VI (1711 - 1740),

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Photo: gerhardsombor.org

same stock and were engaged in agriculture, livestock with his work continued by his daughter Empress Maria farming, trade, food processing and various crafts and light Theresa (1740 - 1780) and completed by her son, Emperor industry. Educated Germans often worked in cooperatives Joseph II (1780 - 1790). For them, Vojvodina represented and organisations created by the Germans themselves in the “ramparts of the defence of Christendom” from the order to provide their communities Turkish Empire.

The ethnic Germans who with the services they needed and to Vo l k s d e u t s c h e ( S e r b i a n : Folksdojčeri; English: German folk) remained in Serbia, Hungary, ease foreign trade. Although they all spoke German dialects (some spoke is a term that was used in the first Romania and Croatia were two or more languages easily), some half of the 20 th century to refer to ethnic Germans who lived beyond reconnected with their culture experienced Magyarization (adoption of the Hungarian culture and language) the borders of German states or after 1989, in schools, prior to 1918, while others developed a were citizens of other countries. It was used to differentiate them from nurseries and theatres, and stronger national identity in the early th Reischdeutsche (“state Germans”), century, considering themselves they maintain their culture 20 who lived within German borders and members of a larger German nation and identity today held German citizenship. that transcended political borders Diversity of peoples, religions and (what is implicitly referred to in Gercultures was standard in the then Hungary. Knowledge of man is “Volk”). During the period of the first Yugoslavia, multiple languages facilitated cooperation in trade, crafts the German minority was still in the process of creating and agriculture. Members of most nations led separate a unique ethno-national group identity. lives in multi-ethnic villages. German settlers succeeded in Contributing to this, to an extent, were the contrasting rising economically and socially. They lived in multi-ethnic attitudes of the Yugoslav authorities towards the German communities with Serbs, Croats, Romanians, Slovaks et minority depending on the part of the country in which al. They adapted to a new way of life and developed a new Germans lived. With Slovenia having previously belonged Swabian (Danubian) identity. to the Austrian part of the Dual Monarchy, during the early Among them were Catholics and Protestants, but years of the Kingdom of the Serbs, Croats and Slovenes, also German-speaking Jews. Some Germans were more the authorities viewed Germans there with greater suspiaffluent, some poorer, but they belonged largely to the cion than was the case with the attitude towards Germans 47

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Around two-thirds of Banat's Geramong the authorities in Vojvodina, Even after abandoning this man inhabitants remained in Banat where the German minority was seen as a counterweight to Hungary's desire part of Europe, Many Germans during the autumn of 1944. The remainder had already been mobilised to reclaim that territory. still considered Serbia, or opted to flee when news arrived The biggest social events in the villages were church fairs, seasonal Romania and Hungary as their that the Red Army and Yugoslav Parwere approaching. The reasons holidays, weddings and pilgrimages. home, often saying: “When I tisans why more people didn't attempt to However, the top place in the life of Danube Swabians was held by working travel to Banat, I travel home” flee included, among other things, fear of the unknown, an inability to discipline, which brought prosperity understand what treatment the Germans – from the to the farmers, as can be observed today in preserved Reich and locals – could expect, disbelief that the war facades and salons. The German language, architecture and was really lost, a desire to retain their property, recollecculture can still be seen in many parts of Vojvodina today, tions that things hadn't been so bad at the end of World where the influence of Danube Swabians has remained.

War I, but also because occupying German authorities Following the end of World War I, some 14 million refuhad prohibited organised evacuations from Banat until gees – including Danube Swabians – arrived in Germany from the last moment, as that was not their priority. the east. The Reich's influence on the Danube Swabians Even after abandoning this part of Europe, Many grew, primarily due to the spread of the national-socialist Germans still considered Serbia, Romania and Hungary ideology coming from Berlin. The greatest westward exoas their home, often saying: “When I travel to Banat, dus of Swabians came in the autumn of 1944, with around I travel home”. According to the latest census, from 200,000 Germans having been expelled from Hungary by 2011, of the half a million Germans who once lived on 1948. The ethnic Germans who remained in Serbia, Hungary, the territory of Vojvodina, only 4,064 members of this Romania and Croatia were reconnected with their culture national minority remain. after 1989, in schools, nurseries and theatres, and they maintain their culture and identity today.

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ACTIVITIES

AHK SERBIA

– leader in connecting foreign and domestic entrepreneurs and investors The German-Serbian Chamber of Commerce (AHK Serbia) represents the interests of its member companies, provides informational support for their operations and advocates the development and improvement German-Serbian trade and cooperation in all economic aspects. One of the tasks of this largest bilateral chamber in Serbia is advisory support to German companies upon entering the Serbian market, as well as to Serbian businesspeople when entering the German market.

AHK Serbia organises over 50 events annually. Around 40 Serbian companies exhibit at trade fairs in Cologne, Munich and Nuremberg.

Over 8,000 visitors attend AHK events.

SURVEY ON CONDITIONS FOR DOING BUSINESS IN SERBIA FOR 2019

AHK Serbia this year again conducted a survey on the economic environment in Serbia among its member companies, which positively assessed the economic climate in Serbia, expressing positive expectations within the scope of their own operations and satisfaction with the labour market, while 88 per cent of participating companies said that they would invest in Serbia again.

During a panel discussion that included the participation of German Ambassador to Serbia Thomas Schib, President of the Fiscal Council of the Republic of Serbia Pavle Petrović and Professor at the University of Belgrade Faculty of Economics Ljubodrag Savić, the need to intensify the fight against corruption was noted, but also the need to strengthen legal security and transparency in public procurement.

the Law on Vocational Training in Serbia having come into force in September 2019, companies wishing to enter the new “Work-BasedLearning“ dual education system and apply for accreditation in the Chamber of Commerce & Industry of Serbia can rely on consultations and numerous services provided by AHK Serbia.

AHK ONLINE PORTAL FOR STUDENT PLACEMENTS

DUAL EDUCATION

The industry of German, as one of the leading economic powers, has resisted numerous challenges over the course of time, thanks precisely to its well-trained workforce and dual education system, which has been implemented in Germany for almost a century. With 49

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ACTIVITIES

The portal for student work placement practise at member companies of the Chamber, www.ahk-praksa.com, was created on the basis of the joint AHK Serbia – University of Belgrade initiative “Model of German Operations to Work Experience”, with the aim of providing for the professional development of students and better connecting them with the labour market.

AHK Serbia President Dr. Ronald Seeliger and University of Belgrade Chancellor Ivanka Popović signed a Cooperation Agreement in March this year aimed at providing professional training for students, better connecting them with the labour market and presenting the work of the Chamber’s member companies. It was announced on this occasion that the Chamber and the University of Belgrade will enable an online platform over the course of this year, through which AHK Serbia member companies, but also other companies with German capital that are not members, will regularly publish information regarding open positions for work experience practise within their companies.

SENIOR EXPERT SERVICE

The core activity of the SES programme is based on mediating expert consultants in various economic and non-economic activities worldwide. This German non-profit organisation, which is subsidised by the German Ministry of International Cooperation, deals with mediation and the organising of engagements of German professional consultants in small and medium-sized companies.

SES consultants are active German retirees, professionals with a wealth of experience who carry out their engagements with great enthusiasm and a strong work ethic. They provide consulting services without financial compensation, with the aim of assisting and promoting the organising of the operations of SMEs, public institutions, associations and educational institutions, both in Serbia and around the world.

The German-Serbian Chamber of Commerce has presented the SES programme in Serbia since 2005. As of year’s end 2018, around 250 SES engagements had been realised in Serbian companies and non-commercial institutions.

EXPORT INITIATIVE PROJECTS

AHK Serbia, under the patronage of the Ministry of Economy and Energy of the Federal Republic of Germany, organised a conference

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this May on the topic: “Energy efficiency in buildings”. Seven German companies presented their production programmes and services in the applicable areas, after which all conference participants held B2B meetings with German companies.

GERMAN INITIATIVE TO IDENTIFY SUPPLIERS IN WESTERN BALKAN COUNTRIES

For the fifth consecutive time, a regional B2B project was held on 6th June 2019 in Dortmund, organised by the German-Serbian Chamber of Commerce, representative of the German economy in the countries of the Western Balkans (AHK), the Chamber of Commerce & Industry of Serbia and the German Association for Materials Management, Import and Logistics (BME eV), with the aim of identifying manufacturers from the required economic areas for German companies in Serbia and the countries of the Western Balkans. The participating companies predominantly hail from the metal processing sector, automotive supply sector, plastics processing and production sector, as well as companies from the electrical engineering and electronics sectors.

FAIRS IN GERMANY

German trade fairs, as the most important promotional mechanisms and sales institutions in Europe and beyond, have always occupied a significant place in economic cooperation between Serbia and Germany.

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ACTIVITIES

Speaking on this occasion, AHK Serbia President Seeliger noted that plenty of space exists for synergy to be established between large, older companies and start-ups, and that huge potential exists in Serbia that needs to be utilised. According to AHK Serbia CEO Martin Knapp, the German-Serbian Chamber of Commerce organises networking between German companies and young Serbian enterprises that have the possibility of using their networks – not only in Germany, but also at the global level.

Research author Christoph Berndt also pointed out the need for the support of larger companies that are more familiar with the market and have access to customers, while start-ups can also help larger companies through product testing, which could be done in such a way that larger companies become clients of start-ups.

AHK MEMBERS DINNER

AHK Serbia represents: • Munich International Fair • Cologne International Fair • Nuremberg International Toy Fair • Leipzig’s Intec and Z trade fairs

PRESENTING THE SERBIAN START-UP SCENE

The fact that Serbia has an extremely vibrant start-up community, with numerous young and innovative companies, compelled AHK Serbia to launch research on the topic of the start-up scene in Serbia, which was presented to the public on 3rd July 2019 at Belgrade’s ICT Hub. The results of research on Serbia’s start-up scene indicate that conditions for the operations of start-up companies in Serbia are good, while the ecosystem of these companies is very interesting and comprises people who are diligent, creative, ambitious and eager to work.

The formal business dinner for representatives of member companies is one of the most popular events among members. The evening opens with an honorary speaker from the domestic economic and political scene providing a short presentation on a current topic, followed by discussions and a cocktail reception in a relaxed atmosphere. In April 2019, AHK Serbia had the honour of hosting Serbian Finance Minister Siniša Mali as its guest speaker, who spoke about the economic policies of the Government of the Republic of Serbia.

WORKING GROUPS

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ACTIVITIES The German-Serbian Chamber of Commerce organises working groups that focus on three areas: human resources; communications and public relation; and energy efficiency and renewable energy sources. Participants in interesting, interactive members’ meetings, which have an average of around 35 participants, present shared topics with expert lecturers in their respective fields, along with exchanges of experience among colleagues from various companies.

SPEED BUSINESS MEETING

This February saw the staging of a Speed Business Meeting attended by over 50 companies – members of AHK Serbia, the French-Serbian Chamber of Commerce (CCIFS), Confindustria Serbia (Association of Italian Businesspeople in Serbia) and the Swiss-Serbian Chamber of Commerce (SSCC) – aimed at making direct acquaintances and promoting cooperation between member companies of these four business communities.

AHK OKTOBERFEST

The German-Serbian Chamber of Commerce brings a German tradition dating back almost 200 years to Serbia each year with the unique AHK Oktoberfest. The 9th Oktoberfest in Belgrade, and the third to be organised by AHK Serbia, was held on 4th and 5th October 2018.

Approximately 1,300 guests from the ranks of member companies, partners and guests from the world of business enjoyed Erdinger 52

beer, various Bavarian specialities and music from Dejan Petrović and his Big Band, as well as competitions in holding multiple beer mugs and drinking beer.

The 4th AHK Oktoberfest will be held on 10th and 11th October 2019, with the support of many sponsors among member companies.

SERBIAN VISIONS

The fourth Serbian Visions Multicongress was held over the weekend of 24th-25th November 2018 at Belgrade’s Radisson Collection Old Mill Hotel. The traditional Serbian Visions event represents a kind of platform for organisations and companies committed to a better future for the country, society and economy in Serbia. The opening

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ACTIVITIES √ 60 different presentation forms: discussions, forums, presentations, workshops, seminars, film screenings and many more √ 60 interesting topics from the fields of human rights, economics, education, culture, health, environmental protection, EU integration and others √ 60 plus reasons to come as a citizen and attend the only multicongress in Serbia!

INTERNATIONAL NETWORKING RECEPTION

In cooperation between the German-Serbian Chamber of Commerce and colleagues from the Belgian-Serbian Business Association, the French-Serbian Chamber of Commerce, the Hellenic Business Association of Serbia, the Croatian Business Club, the Japanese Business Alliance, the Canadian Business Club, the Chamber of Italian-Serbian Businesspeople, the Nordic Business Alliance, the Slovenian Business Club and the Swiss-Serbian Chamber of Commerce, a major event was organised on 24th May 2018 at which representatives of AHK Serbia member companies had an opportunity, in one place and a relaxed atmosphere, to meet members and other chambers of the business community.

ceremony of the fourth Serbian Visions multicongress included the awarding of plaques for the second time: the plaque for the best vision was presented to civil society educational organisation Belgrade Open School, while the plaque for the best social engagement was presented to Stari grad 50+, an organisation engaged in promoting the safe, active and healthy lives of people in their later years. √ 60 two-hour events over the course of one weekend √ 60 participants and event co-organisers: NGOs, professional associations, institutes, institutions, companies, associations, universities etc.

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INTERVIEW

FRANK BAUMANN, DIRECTOR OF GOETHE-INSTITUT BELGRADE

We Strive To

FOCUS ON THE FUTURE “Germany is somehow rather present, as there are so many personal relations, experiences and a very high professional knowledge about what’s going on there – and not only in the cultural sphere” says Frank Baumann, director of the Goethe-Institut in Belgrade

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he Goethe-Institut Belgrade is a visibly prominent institution in the everyday life of Serbian culture. The Goethe-Institut achieves its mission of bringing the culture of Germany, and thus Germany itself, closer to the Serbian people through its attractive programmes of the highest quality. That’s why it was interesting for us to find out from director Frank Baumann about – primarily – the future conceptual direction of Goethe-Institut Belgrade, which he heads, but also his thoughts about some important issues related to Serbian culture.

Autumn marks the start of a new working season. Which of the Goethe-Institut’s events and projects from the previous season would you single out?

- A main attraction was the huge exhibition of contemporary art from Germany, which took place at the Museum of Contemporary Art in Belgrade earlier this year. More than 400 examples of fine art from six decades were exhibited on three floors, with more than 7,000 visitors taking the chance to see this unique exhibition. Second, and no less successful, is the first Films First Young Director’s Academy for Southeast Europe, which is still ongoing. The award-winning feature film debuts of our participants are now starting to enter international festivals. And we are proud to be part of their success. Third, I’d like to mention our documentary film about

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Serbian Roma Hip Hop group Gipsy Mafia. That film was shot in Germany, Zrenjanin, France and Spain, and has been highly rated by audiences and critics alike. It also received a special mention from this year’s BELDOCS jury.

How does the programme of the Goethe-Institut in Serbia differ from those prepared by your Goethe-Institute colleagues in other countries around the world?

- In general, we have similar policies and aims worldwide. It’s a network of 170 branch offices, all offering German language programmes, most with an information department and library, and of course dealing with the planning and implementation of specific cultural programmes. We do this in cooperation with Serbian partners. Serbia is different in the sense that you don’t really have to “present” our country here. Germany is somehow rather present, as there are so many personal relations, experiences and very high professional knowledge about what’s going on there – and not only in the cultural sphere.

How would you evaluate the fact that the Serbian Ministry of Culture and Information favours tradition, such as the bygone Nemanjić culture?

- This is a political question, isn’t it? Nothing speaks against dealing with regional traditions; it’s a way of understanding how things used to be at a certain time in a certain place. It’s

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interesting, perhaps instructive, and therefore useful. Of course, the concept of “nation” isn’t as old as some people would like it to be, just as the idea of dividing a national history into heroes and traitors isn’t really sufficient if you take your audience seriously.

I’m not saying this happened here, because I’m not familiar with the example you mentioned. But I see a certain threat wherever culture and history are presented (and financed) “top-down”.

National traditions on display, the celebration of “outstanding” historical figures and similar historical approaches are, for me, more a method and not an aim. Looking back is of course essential – just thinking about Germany and the darker sides of its history. But we still try to focus on the future. Asking questions: where are we heading, which ways are open to our societies, which way leads to a better future for the majority of people, and which direction is a dead-end road. And what about the planet, how we treat our environment, which mobility systems will work longterm, what is the future of architecture, do we have alternatives to the capitalist exploitation of labour and natural resources, is the dogma of constant growth something we should overcome; and what about our total transparency and big data etc., you name it.

What I want to say is that the Goethe-Institut tries to avoid an overly narrow understanding of the word “culture”. You cannot deal with today’s tricky circumstances of life just through stage performances or academic roundtables. We are currently witnessing a crisis of Western democracies. Populist loudmouths are all over. Culture cannot and should not influence so many people’s minds in the simple, perfidious way that they do, because culture is as complex as reality itself. However, I’m sure that human culture and human values (and this of course includes classic spheres like the traditions of music, language and literature) will remain when all the hate speakers and nationalist agitators have, hopefully, long gone.

By Sonja Ćirić

the fantastic EX YU Rock Encyclopaedia of Petar Janjatović.

How would you assess the activities of the German Language and Literature Department of Belgrade University’s Faculty of Philology?

- We are working on similar tasks and duties. Demand for the German language is obviously higher than the demand for experts on German literature, and the reasons for that are obviously not to be found within the faculty. Nonetheless, I think teachers in Serbia should be at least better paid, in order to make these studies more attractive again. That’s easier said than done, and also nothing that a faculty can achieve. It’s related to the whole society and economic system. The quality of teaching, as far as I can say, has always been at that very high level. It would just be good if all those skills, knowledge and competence could be kept for the benefit of this country and its people.

Well, Germany needs a lot of German teachers as well these days. Quoting Mr Goethe one time, if that’s allowed, “two souls live, alas, in my breast”.

I would presume that the Goethe-Institut, like all other state institutions, has a limited budget. How do you manage to accomplish all that you’ve planned while remaining within the limits of the funds allocated? Perhaps your example could serve as instructive advice to the directors of cultural institutions in Serbia, for whom money represents the biggest problem hindering their operations.

- I’m not sure that money is the biggest problem for my colleagues who hold similar positions. Budgets are always limited, that’s true. But that doesn’t automatically present us with a problem; it’s more of a situation. As the German saying goes, “the blanket is always too short”. The Goethe-Institut is basically financed by the German Ministry of Foreign Affairs, but we are constantly striving to allocate additional budgets sourced from third parties. We are sometimes successful with applications for EU tenders or grants, and sometimes not. We apply for grants from private foundations in Germany, if the calls fit into our programme policy. We apply – together with our French colleagues - for budget allocations from the annual French-German Cultural Fund. And so on. I remember a senior colleague years ago instructing me, as a young trainee, that I “should never, ever skip a promising project just because I was afraid of not being able to finance it”. I still follow his advice from time to time.

The Goethe-Institut tries to avoid an overly narrow understanding of the word “culture”. You cannot deal with today’s tricky circumstances of life just through stage performances or academic round-tables

The international Frankfurt Book Fair is set to start soon and will this year also include Serbia’s participation. Which authors or books would you like to see presented at Serbia’s stand?

- Well, more or less the same as I’d like to find at all other stands – some classics, some surprises, some serious business and some rock ’n’ roll. In our case, the names of Aleksandar Tišma, Danilo Kiš, Ivo Andrić, Ivan Ivanji, Đorđe Lebović, Želimir Žilnik, Jelena Volić, Branko Rosić and Vladimir Arsenijević, among many others. And, yes, not quite new, but still fresh,

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CENTENARY OF THE FOUNDING OF THE BAUHAUS

When Form

FOLLOWS FUNCTION The legendary 'Staatliches Bauhaus' school of art and design (1919- 1933) celebrates the centenary of its establishment this year, and its impact is universal despite the fact that it was only operational for 14 years. The Bauhaus was a hub for all innovations in the fields of fine art, applied art, design and architecture, and its impact was felt, and can still be felt, in all of those fields. The Bauhaus concept - reduced form, simplicity and functionality – influenced all creations – from the designs of book covers to home lighting, furniture, interior decoration etc. The Bauhaus legacy was replaced by postmodernism and other styles, but it is now trendy again around the world

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t was back in 1919 that then young architect Walter Gropius described the period of despair in Germany following the end of World War I as a catastrophe of world history. His response was a bold but surprisingly pragmatic Utopian vision – Bauhaus. With the establishing of this new kind of art school, he succeeded in creating a wonder of a culture with influence that continues to spread to this day.

The Bauhaus, as the new school of applied arts and architecture in the city of Weimar, was founded with the idea of

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combining arts and crafts, but it proved truly revolutionary in the fusing of art and industry. Gropius wrote in his manifesto: “Architects, sculptors, painters, we must all return to crafts!”

From the outset, the Bauhaus proved very interesting as an art school, an academy ready to remain part of real life rather than turning into a haughty academic institution. The Board of Trustees, which consisted of Gropius’s friends, soon expanded to also include Albert Einstein, while the lecturers included the leading fine artists of the time, such as Josef

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BAUHAUS DESSAU FOUNDATION

Albers, Lyonel Feininger, Wassily Kandinsky, Paul Klee, Oskar Schlemmer and Ludwig Mies van der Rohe – the third director of the Bauhaus, who would go on to become one of the legends of the history of architecture.

Distinguished individuals and intellectuals, the creative people that the Bauhaus brought together ensured that teaching there would be extremely unconventional. The Bauhaus thus became much more complex and contradictory than the entertainment studio where works of art emerged spontaneously – as it was described at the time by some individuals. And that isn’t to say that fun was lacking. On the contrary, Bauhaus parties were frequent and part of the schooling process itself, serving to further the idea of ensuring a connection between artists and the wider community. “Tell me how you have fun and I’ll tell you who you are,” said artist Oskar Schlemmer.

For Walter Gropius, building houses was “the ultimate

BAUHAUS 100 YEARS DEZEEN GUIDE ARCHITECTURE DESIGN

goal of all design activities”. As a result, students of his school didn’t only learn theory and practise in school workshops - he also sent them to construction sites, in order for them to put into practise what they’d learned about form, colours and materials. The most important principle was: form follows function.

“Design isn’t just what you see and feel. Design also relates to how something functions.” This might sound like a slogan of the Bauhaus school, but it’s actually a quote of the founder of Apple. Specifically, Steve Jobs strictly adhered to the belief that form should follow function, and that is completely obvious in the world of design and technology to which he belonged.

Respecting this principle, students of this art school

In his manifesto, Bauhaus founder Walter Gropius wrote: “Architects, sculptors, painters, we must all return to crafts!”

STEEL PIPE FURNITURE DESIGNED BY MARCEL BREUER AND LUDWIG MIES VAN DER ROHE NEW BAUHAUS MUSEUM 57

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THE BAUHAUS DESIGN TREND

WALTER GROPIUS

WOMAN WEARING A THEATRICAL MASK BY OSKAR SCHLEMMER AND SEATED ON MARCEL BREUER'S TUBULAR-STEEL CHAIR 58

developed numerous applied art objects, such as furniture or everyday items. In this work it was important to have clean and cold elegance, instead of the playfulness of artistic lines.

Many of the prototypes from those workshops were launched in mass production, but only a small number succeeded in achieving Gropius’s second aim: a price for everyone’s pocket.

Among the most successful examples are certainly the wallpaper produced by the Rasch wallpaper factory in Hanover or the famous black desk lamp designed for company Kandem. Given that many copied it, many were eventually also able to buy it.

The Bauhaus School has become best known for the sketched designs of its architects. In many cities, residential buildings constructed on the basis of these ideas had the primary goal of solving the problem of a lack of living space.

Gropius wanted to solve urbanism problems by building large apartment buildings with many apartments.

Examples of this endeavour are represented by housing estates in Dessau or Berlin. Many new residences were admittedly created in this way, but this simultaneously also led to the anonymity of housing, which later resulted in new social problems. But they were no longer in the focus of the builders of the Bauhaus.

It was in 1925 that the school had to leave Weimar and move to Dessau, because the new conservative government of the state of Thüringen, where Weimar is located, began causing problems for the revolutionary Gropius and his associates.

Gropius himself designed the building of the new school, where professors and students relocated in 1926. The building, with its workshops with glass facades, became the manifestation of the concept of modern architecture.

Over the years, four “Master’s Houses” were built in Dessau,

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THE SCHOOL HAD MANY MAJOR ARTISTS AMONG ITS TEACHERS. THIS PHOTO FROM 1926 FEATURES, FROM LEFT TO RIGHT, JOSEF ALBERS, HINNERK SCHEPER, GEORG MUCHE, LASZLO MOHOLY-NAGY, HERBERT BAYER, JOOST SCHMIDT, WALTER GROPIUS, MARCEL BREUER, WASSILY KANDINSKY, PAUL KLEE, LYONEL FEININGER, GUNTA STÖLZL AND OSKAR SCHLEMMER. HANNES MEYER AND LUDWIG MIES VAN DER ROHE WERE ALSO DIRECTORS OF THE SCHOOL

The Board of Trustees also included Albert Einstein, while lecturers included Josef Albers, Lyonel Feininger, Wassily Kandinsky, Paul Klee, Oskar Schlemmer and Ludwig Mies van der Rohe

which included apartments and study rooms for teachers, while a residential estate with a total of 60 buildings emerged later. It was five years later that the administration of the Bauhaus school was taken over by architect Ludwig Mies van der Rohe, but quickly after that (in 1932) the school was shutdown by local leaders of the National Socialists.

Although the Nazis themselves also emphasised functionality when constructing industrial facilities, they considered the Bauhaus movement suspicious and eventually declared it “Jewish” and “Bolshevik”. The school then relocated briefly to Berlin, but was closed for good after the Nazis took power in 1933.

Many of the professors abandoned Germany. Although the school was gone, its teaching remained very influential – and still is to this day.

The Bauhaus didn’t teach architecture during the first half of the school’s existence, but the influence of the Bauhaus is today mentioned the most precisely when it comes to the design of residential buildings. Many today refer to the Israeli city of Tel Aviv as a true “Bauhaus City”, although not one of its designers was actually a student of this school.

The entire region around Weimar and Dessau, where the Bauhaus tradition is still cultivated, is today known as BauhausLand. In a region where rich historical tradition has been fused successfully with modernism, there are as many as nine buildings listed under UNESCO protection, which is extremely

rare worldwide. The famous Bauhaus Party is held here every year, and this year’s Weimar Summer Arts Festival was also dedicated to the Bauhaus, with the idea of this movement “returning home”.

There’s no doubt that Gropius would like the advertising slogan used today by a department store chain for interior and exterior home decoration: “Bauhaus – Yes, it would be good!”

NIKE HAS RELEASED THEIR NIKE AIR MAX 270 REACT WITH A LEAD COLOURWAY PAYING HOMAGE TO THE ICONIC BAUHAUS SCHOOL 59

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H.E. Thomas Schieb, German Ambassador to Serbia

Opposition To Participate In Fair Elections All democratic elections can only benefit from the experience of OSCE observers and their assessment can increase the legitimacy of an election process as a whole. It is common practise in all OSCE member countries to invite them, and Germany is no exception – Thomas Schieb The German ambassador shares the view that opposition parties should also participate in the upcoming parliamentary elections, because, as he notes, “a healthy democracy needs a strong opposition in parliament, a pluralistic society where dissenting voices and alternative policy ideas can make themselves heard.” On the other hand, notes Ambassador Schieb, elections must be fair and free, a contribution to which could be provided by the involvement of the OSCE mission. Commenting on the selection of former German defence minister Ursula von der Leyen as president of the European Commission, Ambassador Schieb says he's pleased to see her also joining the ranks of European officials who insist on the importance of EU enlargement. The door remains open, he says in this interview for CorD Magazine, adding that the pace of accession negotiations depends on Serbia’s progress with regards to these criteria, especially in the fields of the rule of law, media freedom and the fight against corruption.

Marko Čadež, President of the Chamber of Commerce & Industry of Serbia

Deeper Cooperation To Mutual Satisfaction It has been announced that several more major German investors will confirm their decisions to invest in Serbia by the end of this year. This provides reason to believe that the growing trend of cooperation between the two economies will continue and will deepen Serbia's trade exchange with Germany continued to grow again this year.

After an increase of 12.5% in 2018, when it reached a record total of 4.88 billion euros, that exchange has now exceeded three billion euros, according to the latest data published for the seven months of 2019, which represents 7.2% more than during the same period of last year. “Provided this trend continues, we will end this year with more than 5.2 billion euros in mutual trade,” says Marko Čadež, president of the Chamber of Commerce & Industry of Serbia (CCIS).

It is particularly important for the Serbian economy that exports to the German market, which are now 2.5 times higher than a decade ago, are growing continuously, notes Čadež. “It is certain that we will exceed two billion euros this year.”

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Ronald Seeliger, President of the German-Serbian Chamber of Commerce and the CEO of Hemofarm Group

Strong Bonding Many German companies have been investing repeatedly in Serbia, expanding their production capacities, creating additional jobs and growing year on year. This commitment and these long-term investments are recognised by Serbian society As President of the German-Serbian Chamber of Commerce and CEO of Hemofarm Group, Dr. Ronald Seeliger has the opportunity to gain the most detailed and profound insight into German investments in Serbia.

As shown by his experience and communication with current and prospective German investors, Serbia could offer many opportunities for business development, but some of its potentials can only be utilised if the country persists in implementing bold reforms.

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Martin Knapp, Director of the German-Serbian Chamber of Commerce

Dynamic Cooperation Serbia is increasingly becoming a country that attracts interest among German companies, either as investors or as businesses interested in integrating domestic suppliers into European value chains. There has been rising interest recently in Serbia's fast-growing start-up scene. All of these initiatives are enriching German-Serbian cooperation and creating space for new, exciting jobs that keep young Serbs at home Martin Knapp assumed the position of new director of the German Chamber of Commerce in Serbia and managing director of the German-Serbian Business Association way back on 1st September 2013. His job has become increasingly complex and sophisticated over the course of the last six years, as the German-Serbian Chamber of Commerce supports many different initiatives that connect the German and Serbian economies.

The best opportunities definitely exist in two areas. First of all, Serbia is a very interesting location for German industry to invest. Our Chamber takes care of at least one new investor every month. On the other hand, more and more German companies are interested in suppliers from Serbia. Here we try to meet demand via the Western Balkans Purchasing Initiative. Every year, German industrial companies find qualified suppliers from the countries of the Western Balkans through this initiative. The project is financed by the German Ministry of the Economy.

Frank Baumann, Director of Goethe-Institut Belgrade

We Strive To Focus On The Future “Germany is somehow rather present, as there are so many personal relations, experiences and a very high professional knowledge about what’s going on there – and not only in the cultural sphere” says Frank Baumann, director of the Goethe-Institut in Belgrade The Goethe-Institut Belgrade is a visibly prominent institution in the everyday life of Serbian culture. The Goethe-Institut achieves its mission of bringing the culture of Germany, and thus Germany itself, closer to the Serbian people through its attractive programmes of the highest quality. That's why it was interesting for us to find out from director Frank Baumann about – primarily – the future conceptual direction of Goethe-Institut Belgrade, which he heads, but also his thoughts about some important issues related to Serbian culture.

A main attraction was the huge exhibition of contemporary art from Germany, which took place at the Museum of Contemporary Art in Belgrade earlier this year. More than 400 examples of fine art from six decades were exhibited on three floors, with more than 7,000 visitors taking the chance to see this unique exhibition.

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