In Focus Austria 2017 by Diplomacy&Commerce magazine

Austria 2018

THE CENTRE OF EUROPE AND THE CORE OF ITS SPIRIT H.E. ANDREAS WIEDENHOFF Austrian Ambassador to Croatia

CHRISTOPH LEITL

President of the Austrian Federal Economic Chamber

ŽELIMIR KRAMARIĆ

Vice President of the Croatian Chamber of Commerce

MUSIC SUPERPOWER Austria has given the world many famous classical music composers, including Haydn, Mozart, Schubert, J. Strauss, Mahler, and Bruckner.

04 QUALITY OF LIFE Vienna is the most livable city in the world for the eighth time in a row.

MOZART IS NOT JUST A GREAT COMPOSER Mozartkugel are a fine brand of Austrian chocolates which originated in Salzburg, Mozartâ&#x20AC;&#x2122;s birthplace. In 1890, master confectioner Paul Furst made the first Mozart chocolates by forming small balls of marzipan which he coated in a praline cream and then dipped in warm chocolate.

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WELL, THAT IS IMPERIAL! SchĂśnbrunn Palace, the summer palace of the Habsburgs, has no less than 1,440 rooms.

02 THE SKIING CAPITAL OF THE WORLD

Alpine, or downhill, skiing has been the most popular sport in Austria for over 100 years. Mathias Zdarsky wrote the first handbook of skiing in 1897, invented the first ski bindings worthy of mention, and organized the first slalom race in 1905.

THE TALLEST WATERFALLS

The Krimml Falls (Krimmler Wasserfalle), in the state of Salzburg, are Europe's tallest waterfalls, reaching a height of 380 meters.

SACHER IT IS

The most famous Austrian cake is the Viennese Sachertorte, a rich chocolate cake invented by Chef Franz Sacher for Chancellor Metternich in 1832.

08 ICE CAVES TO REMEMBER The Austrian Eisriesenwelt Caves, called â&#x20AC;&#x153;the world of the ice giants,â&#x20AC;? is the largest accessible ice cave system in the world.

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INTERVIEW

Photo: Darko Tomaš/Cropix

CROATIA IS OUR VALUED PARTNER

H.E. ANDREAS WIEDENHOFF Austrian Ambassador to Croatia

The political, economic, social and cultural ties between our two countries are strong and intense and our billateral realtions are excellent. Croatia's accession to the EU has added another layer to our already very strong relationship and made business interactions even easier 6

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ore than 1,2 milion of Austrians come to Croatia every year and in a certain sense we consider Croatia as our neighbour even if we do not share common borders“, says H.E. Mr. ANDREAS WIEDENHOFF, Austrian Ambassador to Croatia in an interview for Diplomacy&Commerce magazine.

How much did Croatia's accession to the EU contribute to further strengthening of what were already strong ties between the two countries? ― Austria always has strongly supported Croatia's accession to the EU. We have done this for a variety of reasons: First and foremost because we believe

that Croatia should, naturally, become a member of this European family. Croatia is a country very much in the heart of Europe, geographically, culturally and historically. But since politics are always also interests-driven, it is only fair to say that it is in our interest, for instance in the interest of our investors, to have Croatia as a member of the EU. Doing business inside the EU is much easier than with a country outside the EU. What are the priorities of the new Austrian government in regard to Croatia, and, generally speaking, this region? ― If we look at the past 25 years in which Austria had governments composed of a range of coalition partners, we see that Croatia always had a very important place on the map for my country. It has always been a destination of choice for a huge (and increasing) number of Austrian holidaymakers and for Austrian investors. In the light of the current European developments, in which political and economic issues can the two countries act as partners? ― Both, Austria and Croatia are relatively small countries. This makes it potentially difficult to act in the European context because we need to deliver the same administrative output as the bigger Member States. Our comparative advantage, however, is that in both our countries communication lines are short: everybody knows everybody. This can be used to our advantage. Regarding a potential for cooperation I would say that, because of our geographical position on the European continent, we have a joint interest in the so-called Western Balkan countries becoming part of the European Union because these countries are relevant for us in the political field, when it comes to stability, and also in the economic field. How much did the European integration process change Croatia for better, and what other things should the country change and develop? ― Being a member of the European Union means that a country is taking part in a process. That process doesn't stop at the moment a country joins the EU – on the contrary: that is the moment the real process starts. Being part of a process

which transforms a country holds true for all the currently 28 Member States, whether they have joined the integration process early or just recently. We are all working towards a better Europe and for a better self. In the past, you and other ambassadors were very clear about Croatia having to become more tolerant towards LGBT community, and more inclined towards media freedom. How current are these topics today, in your opinion, and do you think that there are new issues that Croatia should pay attention to?

BECAUSE OF OUR GEOGRAPHICAL POSITION ON THE EUROPEAN CONTINENT, AUSTRIA AND CROATIA HAVE A JOINT INTEREST IN THE SOCALLED WESTERN BALKAN COUNTRIES BECOMING PART OF THE EU

vestor are doing the same. In the case of Austrian investors it is certainly Croatia´s easy accessibility as well as a familiar set of market economy rules that makes Croatia an intersting place for investments. How satisfied are Austrian business people with the economic and business environment in Croatia, and, according to them, what can be improved? ― Austrian investors are generally looking for predictability when it comes to tax standards and tax policies. They need a quick and efficient public administration with a low level of bureaucracy and last but not least, they want a justice system and court procedures that are predictable and do not take too much time. It is therefore important that the Croatian government keeps up its efforts when it comes to structural reforms and keeping Croatia on the map of interesting countries for foreign investors.

― This is linked to what I just said regarding the European Union. The EU is not only an economic superpower it is also, and probably above all, a space of shared values. These values have made us successful, including in the economic field. Being a member of the EU means working permanently for a more just, more tolerant, more free Europe. This is an effort every member State has to undertake, not only Croatia.

How strong of an influence does the Croatian diaspora and the community of Burgenland Croats have on shaping of cultural ties between the two countries? ― According to the annual so-called Integration report, there are around 70.000 people living in Austria who consider themseleves as Croats. They have come to Austria either in the 1970s as Gastarbeiters or in the early 1990s as refugees during the war or at other moments, including recently, for instance as students. Many of them stayed on or will stay on and thus act as important bridge builders between the two countries. The same holds true for Austrians who are Burgenland Croats. They have been part of Austria's linguistic and cultural diversity for several hundred years.

How many Austrian investors are operating in Croatia today, and which economic branches do they find the most appealing? ― There are close to 700 investors present in Croatia. They have created more than 30.000 jobs here and they are active in all possible economic branches. Comptetition in the region is high and economic actors are geographically flexible. A country wanting to keep a foreign investor on its territory needs to work on its competitiveness and attractiveness because other countries that might be interesting to the said in-

Before your appointment to Zagreb, you often visited Croatia as a tourist. How much did your taste in the favourite tourist destinations in Croatia change since your appointment? ― As an Ambassador you also go to places where tourists usually don't go because these places are not considered as typical tourist destinations. However, also these more remote parts of Croatia offer a specific beauty which is often unexpected. What all parts of the country, from West to East and from North to South have in common is the kindness of the people.

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INTERVIEW

CHRISTOPH LEITL

President of the Austrian Federal Economic Chamber

OUR COOPERATION IS CONSTANTLY IMPROVING The economic and business relations between Croatia and Austria have always been excellent and keep improving every year

e are looking for further improvements in the Croatian business climate and introduction of dual education. Furthermore we are pleased that HGK has decided to use our model of export promotion, says Mr. Christoph Leitl, President of the Austrian Federal Economic Chamber for Diplomacy&Commerce magazine.

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Four years after Croatia’s EU accession, could you sum up for us how beneficial was this for the strengthening of the business and economic relations between Croatia and Austria? ― The economic and business relations between Croatia and Austria have always been excellent and keep improving every year. The harmonization of Croatia’s legislation with EU regulations prior to Croatia’s EU accession and ever since has been very important for Austrian subsidiaries in Croatia and Austrian enterprises doing business with Croatia, as it provides for a more predictable and stable regulatory framework for business. The strong economic ties between

Austria and Croatia become especially evident when we look at the entirety of bilateral economic relations. The sum of bilateral trade in goods in 2016 totaled 1.9 billion EUR and total bilateral trade in services amounted to 1.6 billion EUR. If you add foreign direct investment (FDI) to this, the economic relations between Croatia and Austria stand at an impressive 7.2 billion EUR. Although Austria has a surplus in goods trade, this is more than compensated for by Croatia’s surplus in services trade. Only with regards to FDI, Austria’s position in Croatia at the moment is stronger than Croatian FDI in Austria. But this year EUROHERC opened an office in Vienna and this, I hope, is only going to

be the first of many Croatian companies to set up a subsidiary in Austria. In these past four years, how much did the business climate in Croatia improve to be more in line with the European Standards? ― Our Advantage Austria office in Zagreb conducts business sentiment surveys among Austrian investors in Croatia on a regular basis. Comparing the surveys from 2013 and 2017 shows interesting results. In 2013 business sentiment was quite subdued, owing to the ongoing recession; therefore business climate was rated as poor by more than 70% of respondents. The areas that were rated worst were payment behaviour, public administration, the legal system and the taxation system together with tax administration. Also slow processes with regard to the issuing of permits and labour legislation in general were rated as poor. Looking at this year’s business sentiment survey, the general mood has improved considerably, mainly because Croatia has found its way out of recession. Furthermore, the previously mentioned areas of concern were rated slightly better, however, there is definitely still quite some room for improvement. In the four years since Croatia’s EU accession, Croatia held two parliamentary elections in short succession, which, unfortunately, slowed down the much needed reforms. I firmly believe that if Croatia manages to implement the structural reforms that have been planned for a long time, then growth would pick up considerably and Croatia would be able to close the gap to EU countries that have been outperforming Croatia.

In that context, what are the main topics that you usually discuss with your counterparts from the Croatian Chamber of Commerce? In which areas is more progress needed, and how much can the cooperation between the two chambers help in this respect?

LOOKING AT THIS YEAR’S BUSINESS SENTIMENT SURVEY, THE GENERAL MOOD HAS IMPROVED CONSIDERABLY, MAINLY BECAUSE CROATIA HAS FOUND ITS WAY OUT OF RECESSION ― It is no coincidence that the Croatian Chamber of Commerce (HGK) and the first economic chambers in Austria were established around the same time over 150 years ago in a similar manner, and so our institutions have traditionally had a very good relationship. Both our organizations are striving to improve the general business conditions for our members. Here at the Austrian Federal Economic Chamber, our priorities for policy improvements are to incentivize investments of the private sector, including digitalization and innovation, to reduce red tape and to increase flexibility in various aspects of labour legislation. As you can see the topics we are dealing with in our respective countries are quite similar and hence this is also what we are discussing with our partners from the HGK on a regular basis.

But in a few areas we have been cooperating more closely recently, namely dual education and export promotion. Regarding dual education we are supporting the HGK as consulting partner for capacity building within the Cap4App Erasmus+ program. This cooperation aims at establishing a dual educational model in Croatia, which is better geared towards the needs of businesses. The aim is to get apprentices to spend more time in companies, which would ideally also lead to a higher retention rates of apprentices once they have finished their education, and thus reduce youth unemployment. Also, the businesses offering apprenticeships should have a stronger voice in curriculum design, selection of apprentices, etc. In Austria this is facilitated through apprenticeship offices established at the local economic chambers. This model works very well and hence could also be interesting for Croatia to not only reduce youth unemployment, but also to meet the needs of Croatian businesses for skilled workers. Regarding export promotion, we are proud that the HGK has decided to develop a trade promotion organisation similar to our ADVANTAGE AUSTRIA model. Therefore, naturally, we have had a lot of contact regarding the set-up and organizational challenges of our model and how it could work for Croatia. In Austria, six out of ten Euros are earned in export and hence a strong network to support our SMEs in their international business is vital. I am sure that once Croatia has set up its organization, Croatian SMEs will strongly benefit from it. Apart from nurturing bilateral relations with your Croatian counterparts, you have also been cooperating under the

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REGARDING DUAL EDUCATION WE ARE SUPPORTING THE HGK AS CONSULTING PARTNER FOR CAPACITY BUILDING WITHIN THE CAP4APP ERASMUS+ PROGRAM AUSTRIA 2018

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people about the prospects and advantages a job in tourism can offer. With our friends from the HGK we are discussing this issue often but we are also exploring various ideas and checking their feasibility. One idea, for instance, is based on the fact that the summer tourism season in Croatia still in many places lasts only from April to October and in Austria, winter tourism usually runs from December through to March. So maybe people who are working in the summer in Croatia would be interested to work in the peak winter season in Austria. So, yes we are discussing various ideas and I am sure that we will come up with something that will benefit everyone - tourism staff as well as the tourism industry in Austria and Croatia!

framework of Eurochambres, which you preside over. What are your main priorities in the following period, and how much influence does this chamber association have in the EU and on the national level? ― EUROCHAMBRES was established in 1958 as a direct response to the creation of the European Economic Community. It is an important companion for European integration and a promoter of the European idea in the business community. The chamber network represents over 20 million businesses in Europe through 45 members (43 national associations of chambers of commerce and industry and two transnational chamber organisations) and a European network of 1700 regional and local chambers. More than 93% of these businesses are small and medium sized enterprises (SMEs). Chambers’ member businesses employ over 120 million people. EUROCHAMBRES is the biggest business organisation for the representation of interests at the European level. It contributes massively to the strengthening of the business location and makes the chamber members fit for global competition, in particular through its commitment to the promotion of education and training, research and development as well as digital infrastructure. Our priorities within the EUROCHAMBERS are to support entrepreneurial spirit by improving access to finance, fighting

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I FIRMLY BELIEVE THAT IF CROATIA MANAGES TO IMPLEMENT THE STRUCTURAL REFORMS, IT WILL GREATLY HELP ITS ADVANCEMENT AMONG THE EU COUNTERPARTS, AND FURTHER FORTIFY OUR STRONG ECONOMIC TIES red tape, and enhancing free trade, to respond to new challenges such as digitization, migration and integration, climate change, innovation, automation, implementation of new technologies. When it comes to people, our task is to bring talent to skills through life-long learning, Erasmus+, apprenticeships, combating youth unemployment, and dual education. Both Croatia and Austria suffer from a workforce shortage in tourism. Have you given any thought to having a joint approach to resolving this issue? ― The shortage of workforce in tourism has a number of reasons hence tackling this problem needs a bundle of measures, among them the creation of attractive work environments but also educating

To what extent can dual education solve this problem? ― Tourism professions are classic VET (vocational education and training) professions and are, to a large extent, taught very successfully in the dual education system in Austria. Many great international careers have started with dual education in tourism in Austria. No doubt, working in tourism can be quite demanding, but it can also be extremely rewarding. In Austria dual education in tourism offers young people an additional path of entry into the profession, with the advantage that from the very beginning they are treated as full members of the team, as they are employed directly by the company providing the education. Also apprentices in tourism very quickly will be able to realize if the profession fits them or not and can take appropriate measures. The education is also very versatile as people can choose to remain in the classic jobs they are being trained for, or pursue paths of higher education, if they find that they want to move their careers into different directions. Dual education in tourism is also a very interesting option because it offers education and jobs in regions where there might not be many other options, for instance in alpine villages. What is vital in order to make the system work, is to educate young people and their parents about the many advantages dual education in tourism has to offer, and of course to keep developing dual education according to the demands and needs of the industry and its staff.

AD ???

EU OPPORTUNITY FOR ANY COMPANY Croatia has 10.7 billion EUR at its disposal in the European structural and investment funds to be spent on the implemenation of the cohesion policy

INTERVIEW

ŽELIMIR KRAMARIĆ

Vice President of the Croatian Chamber of Commerce in charge of the international and EU affairs

raditionally, Austria is one of the most important Croatian partners. This country occupies the 4th place on the list of the biggest Croatian external trade partners.

How much did the work in your department for cooperation with the EU affairs, funds and programmes change since Croatia's accession into the EU? ― In the pre-accession period, the Croatian Chamber of Commerce (CCC) invested huge effort into informing businesses about the changes that were about to happen with the country joining the EU mostly in the external trade, customs and tax aspects. All organizational units at the CCC also got actively involved in boosting their capacities and transferring the know-how about the conditions for doing business and financing opportunities provided by the EU funds for the member states. The Enterprise Europe Network (EEN) played a crucial role in this. There was also a need for some re-organization so we established the Department for EU Affairs, Funds and Programmes as an integral part of the Sector for International and EU Affairs whose main task was to follow EU policies and EU competitions, as well as to coordinate, apply with and

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implement EU projects at the CCC level. In collaboration with other organizational units at the CCC, you have been working on representing the interests of the CCC members in EU bodies. In which areas do businesses need your support the most? Through participation in European associations like EURATEX, ORGALIME, EURELECTRIC and EUROFISH, our Chamber's representatives promote interests of our members at the EU level. Member companies need our support the most in issues relating to the EU regulation which, in certain cases, is partially implemented. The fact that we are in the interim phase also poses challenges for Croatian companies. With that in mind,

IN THE FIRST SIX MONTHS OF THIS YEAR, CROATIAN EXPORT TO THE EU COUNTRIES GREW BY 10%, WHILE IMPORT WENT UP BY 8.9%

our members want our help with interpreting certain stipulations in the EU legislation, with meeting certain requirements or criteria stated in the EU regulation, and with obtaining information about potential business partners in the EU, the conditions for doing business and being active in a certain EU market. Also, our members are increasingly inquiring about support programmes, be it project co-financing with the funds from the EU programmes or funds, or EU financial instruments. In which way did the membership contribute to raising the quality of bilateral cooperation with the EU members? Can you illustrate this on the example of the cooperation with Austria? ― In the first eight months of 2017, Croatia exported EUR 571 million worth of goods to Austria, thus continuing a positive trend, with the exports to Austria recording an 8.1% hike. Austria is also one of the most important investors in Croatia. According to the Croatian Statistical Office, 1,237,969 Austrian tourists visited Croatia in 2016, which is a 10.6% growth relative to 2015. In addition to tourism and greenfield and brownfield investments, the most promising sectors, which Croatian com-

panies can participate in, are metal processing industry, electrical industry, wood processing industry, textile and footwear industry (mostly through additional processing activities) and the food industry (healthy food production). Croatian companies from certain industries (like construction, exterior design, assembly works...) cannot operate freely in Austria as yet, i.e. they do not have the same status as companies from other "older" member states. Namely, Austria uses a limited approach to labour market for companies from certain branches in line with the 2 + 3 + 2 principle, but we are confident that the dialogue at the institutional level will eliminate this problem. To what extent did Croatian companies accept and understand how they could use the EU funds, and what kind of support does the CCC offer in that respect? ― The CCC continuously conducts education and information programmes for its members on the issue of EU tenders and opportunities for the EU co-financing entrepreneurial projects. The CCC has formed the Department for EEN, EU Programmes and SME Support Funds which provides direct information to companies about co-financing opportunities in the EU, as well as other financing opportunities. Given the fact that the CCC itself implements EU projects co-financed by the European Structural and Investment Funds and Union Programmes, such as the Enterprise Europe Network (EEN), companies can participate in activities and services provided by the CCC which are co-financed by the EU.

In which areas is the bilateral cooperation with Austria the most prolific? ― The activities of the two chambers are focused on internationalization, especially of small and medium companies, and providing institutional support when they leave the market, as well as joint participation in EU projects and forging partnerships for their implementation. We have been collaborating with the Austrian Chamber Commerce on the ERASMUS project in the area of dual education system.

THE CCC CONTINUOUSLY CONDUCTS EDUCATION AND INFORMATION PROGRAMMES FOR ITS MEMBERS ON THE ISSUE OF EU TENDERS AND OPPORTUNITIES FOR THE EU CO-FINANCING ENTREPRENEURIAL PROJECTS Since Croatia's accession into the EU, the cooperation with WKO on the federal but also on the regional level, with the provincial chambers on the Austrian side, and county chambers on the Croatian side, is implemented through a series of activities such as setting up business meetings between Croatian and Austrian companies in Croatia and Austria (metal processing industry, IT sector, waste management and green technology, wood processing, textiles, etc.).

Days of Croatia 2017, the biggest presentation of Croatian economy, took place in Graz, Austria, on 25th October. How satisfied are you with this year's participation of Croatian companies? This year's event in Graz, which was held under the auspices of the Croatian Deputy Prime Minister and Minister of Economy, Martina Dalić, is a positive example of the cooperation between Austrian and Croatian institutions. The CCC participated as a co-organizer of the presentation of the Virovitica-Podravina county this year. Apart from showcasing the investment, business and tourist potential and the VIROEXPO trade fair, certain Croatian companies also presented themselves and had concrete talks with a dozen potential partners from the Republic of Austria. Austrians have been consuming Croatian wines more frequently. How much could the consolidation of Croatian wineries under a single brand, with the CCC's support, contribute to that success? ― In September this year, we presented 12 wineries from four wine regions in Croatia at the Am Hof square in Vienna, as a part of the promotion of the Vina Croatia – Vina Mosaica brand organized by the Winegrowing Association of the Croatian Chamber of Commerce. I think that consolidating wineries under the single brand would facilitate their access to these demanding markets which is the reason why we have created the Vina Croatia – Vina Mosaica brand that assembles domicile wineries with the view of helping them with joint appearance on foreign markets. In the first five months of 2017, we exported 718,500 litres of wine, more than in the entire 2016 when we exported a total of 675,000 litres to Austria.

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THE ACTIVITIES OF THE TWO CHAMBERS ARE FOCUSED ON INTERNATIONALIZATION, ESPECIALLY OF SMALL AND MEDIUM COMPANIES, AND PROVIDING INSTITUTIONAL SUPPORT AUSTRIA 2018

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CORPORATE

Austrian Quality Standards in the Heart of Croatia Porsche Inter Auto Croatia has 5 branches in Zagreb, Rijeka, Split and Pula

VEDRAN PRASNIKAR General manager

HRVOJE LAPIÄ&#x2020;

Porsche brand manager 14

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Porsche Inter Auto (formal name: Porsche Inter Auto GmbH & Co KG), a subsidiary of Porsche Holding located in Salzburg, has an extensive network of showrooms for famous brands such as Volkswagen, Volkswagen Commercial Vehicles, Audi, SEAT, Skoda and Porsche. It currenly owns 125 dealerships in Europe and is considered the largest auto-retailer in Europe. Mr. Vedran Pransikar, General Manager of Porsche Inter Auto Croatia, has launched the company in early 1999 as a dealer for Skoda in a small showroom spanning 200 square metres. Now, he leads the company of 320 employees in 5 branches, selling 8,000 new and used cars per year. Mr. Pransikar says that it is a big privilege and a great resonsibility to work under Porsche Holding. He also thinks that Croatia is a country with amazing potential due to its strategic position between Western and Eastern Europe, especially considering the country's infrastructure. The biggest Croatian branch, Porsche Zagreb Jankomir in Zagreb, spans 32.000 square metres. One of the most beautiful

showrooms is located in the Porsche Center Zagreb, the only Porsche showroom and service centre in Croatia. With the hardworking team of 10 (3 in sales and 7 in aftersales), under the watchful eye of Mr. Hrvoje Lapic, Porsche Center Zagreb delivers 100 Porsche cars per year and services 200 vehicles per month in 6 work stations. Mr. Lapic, Brand Manager for Porsche brand in Porsche Center Zagreb, has intro-

duced us to new models which are due to arrive in the 2018. Boxster GTS and Cayenne PHEV are due to arrive in the first half of next year while 911 GT3 RS and Macan II will arrive in the second. Mr. Lapic underlined that the next year was very importnant for Porsche in general, since the company would be celebrating 70 years of Porsche Sportscar, while eagerly awaiting the new 24 LeMans race and 20th overall victory for Porsche.

PORSCHE INTER AUTO CROATIA IN NUMBERS 5 branches 95 service stations 7,385 sold vehicles in 2016 7 brands 320 employees 18 years of experience

PORSCHE HISTORY The Porsche name has become synonymous with sports cars and racecars because that is what company founders Ferdinand Porsche and his son Ferdinand ("Ferry") seeked to build when they first set up shop with 200 workers in 1948. Mr. Porsche Sr, whose engineering experience included working for Daimler-Benz, established an independent design and engineering firm in 1931 and designed the Volkswagen Beetle. He brought a half-century of experience in innovation with him to the new company - from a turn-of-the-century four-wheel drive gasoline/electric hybrid vehicle to the virtually unbeatable Auto Union Grand Prix cars of the 1930s. Mr. Porsche Jr helped his father to develop the new company, and was

INFO:

INDEPENDENT

IN AN AGE WHEN MOST OF ITS COMPETITORS ARE INTO LARGE-SCALE MANUFACTURING, PORSCHE REMAINS A STAUNCHLY — AND PROFITABLY — AN INDEPENDENT MAKER OF HIGH-PERFORMANCE SPORTSCARS

instrumental in designing the first Porsche sportscar, the 356. Though sporting just 40 horsepower from a rear-mounted, slightly souped-up Beetle engine, the first Porsche quickly made its mark with agile handling, as well as attributes almost unheard of among sportscars of the day — comfort and reliability. Porsche introduced its own engines in the mid-1950s, along with more powerful versions of the 356. After the 356, came a true legend among modern day automobiles - the Porsche 911. Ahead of its time when introduced in 1964, the rear-engine 911 evolved over three decades when Porsche introduced a completely new 911 Carrera in 1999. The line includes 911 S (1967), the 911 Turbo (1974 [1976 in the U.S.]), the first 911 Cabriolet (1983) and the first all-wheel drive 911 Carrera 4 (1990). Porsche introduced a series of front-engine models in the 1970s, starting with the four-cylinder 924 (1976) and the unrelated 928 powered by the company’s first V-8 engine (1978). From the 924, sprang the more powerful and sophisticated 944 and 944 Turbo, and finally the 968 in the early ‘90s. Porsche retired both the 968 and 928 in 1995 to focus on development of the rear-engine 911 and mid-engine Boxster.

Porsche Inter Auto, V. Škorpika 21-23, 10000 Zagreb, www.porscheinterauto.hr, info@porscheinterauto.hr

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INTERVIEW

SONJA HOLOCHER- ERTL

Director of ADVANTAGE AUSTRIA, the Austrian Trade Commission in Zagreb

AUSTRIAN INVESTORS STAY DEVOTED TO CROATIA

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After the long years of recession, Austrian investors are becoming more optimistic again. Quite a few are planning to expand their operations with further investments in Croatia in 2018.

lthough the recession impacted negatively on the Austrian-Croatian economic relations, they are on the rebound due to the better economic performance of the country. Investors appreciate Croatia’s EU member status, which translates to higher predictability, higher regulatory security and hence lower cost of doing business, says Sonja Holocher-Ertl, Director of ADVANTAGE AUSTRIA, the Austrian Trade Commission in Zagreb.

How satisfied are Austrian investors with their operations in Croatia? ― We have been conducting investor surveys here in Croatia regularly since 2006. This year’s survey was conducted in May/June, hence already factored in the Agrokor crisis. Despite that, our investors rated the economic situation in Croatia considerably better than in previous years and also their expectations for 2017 have improved. With regard to the business climate, many areas our investors rate as important are also rated as relatively poor, namely the legal system, the fight against corruption and bureaucratic processes, especially with regard to obtaining permits and licenses. Factors which were also rated as very important but received relatively good ratings were quality and motivation of Croatian staff. Regarding their business performance, investors are also more optimistic than in previous years. This is your second term in the office in Croatia. How much did the structure of investments and external trade between Austria and Croatia change in the meantime?

A MAJORITY OF AUSTRIAN INVESTORS IS EXPECTING SALES TO PICK UP, ORDERS TO INCREASE, THEY EXPECT TO KEEP THEIR STAFF LEVELS OR INCREASE THEM, AND ABOUT ONE THIRD IS PLANNING INVESTMENTS

― My first time in Croatia was during the ‘boom’ years, from July 2004 to September 2007. Back then I was the deputy director of ADVANTAGE AUSTRIA Zagreb. I came back 9 years later, in September 2016 as Director of our office. By then, the mood had already begun to improve after the long years of recession. But when I checked the data, it showed how hard and deep the recession had also affected our bilateral trade between 2007 and 2016. In 2016, Austrian exports to Croatia were still 13.2% below the level of 2007 while Croatian exports to Austria were nearly back to 2007 levels, only 1.4% below. In the years 2009, 2013 and 2014 Croatia’s

STRONG FDI

AUSTRIA STILL HAS AN EXTREMELY STRONG FDI POSITION IN CROATIA WITH MORE THAN 650 AUSTRIAN COMPANIES HAVING SUBSIDIARIES IN CROATIA AND SECURING AROUND 30,000 WORKPLACES AUSTRIA 2018

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exports to Austria declined sharply, while in all the other years, they expanded and thus managed to nearly reach 2007 levels. Austrian exports to Croatia declined significantly in 2009 and then kind of flatlined, except for 2015, when they showed a solid growth of nearly 16%. Looking at Austria’s FDI position from 2007, when it was close to 6 billion EURO and comparing it to the current FDI position of 3,8 billion, one could draw the conclusion that Austrian investors have left Croatia in droves. Nothing could be further from the truth. Naturally, over the course of 10 years a few Austrian companies left or reduced their operations, but a great deal of the changes in Austria’s FDI position are due to changes in the ownership structure of the banking sector. But big investors such as Boxmark or VIPnet also kept expanding and new ones have arrived. From the perspective of Austrian investors, what are the biggest benefits of Croatia joining the EU? ― From the investors perspective, joining the EU was a very important step because the adoption of the acquis communautaire and the adaptation of Croatian to EU regulations mean higher predictability, higher legal security and hence lower costs of doing business. Also, our investors in the manufacturing industry often are exporting a very high percentage or even all of their production, so access to the common market for them meant a reduction in administration and therefore costs. Which of Croatia's qualities do you usually single out when promoting the country as a destination for new Austrian investors, and which sectors do you consider the most appealing for investing? ― For investors from Austria the proximity of Croatia and the fact that Croatia is a full EU member is very important. Also infrastructure, especially the road network, in Croatia is very good, and qualified and motivated staff used to be other qualities Croatia offers. Having said that, our investors are also reporting that finding skilled workers and key staff in areas such as IT, is increasingly becoming a challenge. Regarding new investments, I am hearing from quite a few established Austrian investors from various industries, be it metal processing, machinery

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AT ADVANTAGE AUSTRIA WE CATEGORIZE OUR SERVICES IN FOUR MAIN AREAS: INVESTMENT ADVICE, MARKET ENTRY, IN-MARKET SUPPORT AND INTERNATIONAL PROCUREMENT construction, tourism or other services, that they are planning to expand their operations here in Croatia in 2018. With regards to new investors, among others we also have had a few very interesting IT companies set up successfully and had good feedback from them about Croatia as an investment destination. When it comes to more complex investments where, for instance, a number of permits is required, unfortunately we still sometimes receive reports from investors about unexpected delays or complications. In regard to which issues do Austrian companies in Croatia require your help with often? ― At ADVANTAGE AUSTRIA we categorize our services in four main areas: investment advice, market entry, in-market support and international procurement. Austrian

companies most often contact us for market-entry support or in-market support. So for instance, they require information about the market potential and pricing structures, general legal information, or the distribution structure. They need to know about the local competition, the distribution of market shares, or need help in identifying potential business partners. We research the information and, in addition, often organize market visits or set up appointments with potential partners that we have identified for them. Another topic that comes up quite often in our work is the need for help with the submission of bids or tenders. Additionally, we organize trade & business missions on specific topics. This year, for instance we had an Austria showcase on renewable building with wood, we had trade missions on construction, environmental technologies & infrastructure, textile industry, renewable energy and metal processing. Austrian investors also contact us when they have issues with regulatory questions or authorities. We then try to establish a line of communication and try to help to find a solution, often together with our colleagues from the Austrian embassy. For the Austrian subsidiaries in Croatia we regularly organize business breakfasts, mostly on regulatory, tax or legal topics, with an opportunity for networking over a breakfast.

DUAL EDUCATION

VOCATIONAL EDUCATION AND TRAINING – BEST EDUCATION MIX In Austria about 36,000 companies offer apprenticeships and many of them are SMEs

mall companies that can offer practical training only in part of a profession are usually part of an ‘Ausbildungsverbund’ (a joint training system of companies) in order to ensure that their apprentices receive the full spectrum of practical training needed to complete their apprenticeship. High youth unemployment combined with a shortage of skilled labour is an unfortunate phenomenon in many countries, including Croatia. Countries with vocational education and training (VET) systems seem to be less affected by youth unemployment and better able to provide skilled workers to their labour markets. Austria is at the forefront of countries with well-established VET systems. The Austrian VET system provides well-rounded education and training of skilled workers and, as a result, helps to keep youth unemployment low. Key characteristics of Austria’s VET system are that training and education take place directly in a company as well as in vocational schools, which is why it is also described as a dual education system. The students, called ‘apprentices’, enter into an apprenticeship agreement directly with the company. They can start an apprenticeship after 9 years of compulsory education. About 80% of the training and education is delivered in the company and 20% in vocational schools. Classes in the vocational schools are held either on one or two days per week or within a block of classes over several weeks. Depending on the chosen profession, apprenticeships last between two and four years and will always be concluded with a final examination.

A dual education system like the one in Austria has many advantages. Apprentices, upon completion of their apprenticeship, are fully qualified both in theoretical and in practical matters relating to their profession. They can start work (or better keep working) straight away without the need for further initial training. Also the practical training in a business rather than a school usually offers training on modern standard equipment, which schools often cannot offer. This is especially important in technical professions. Another major advantage of the dual system is its flexibility in accommodating a gradual re-de-

CURRENTLY ABOUT 40 PER CENT OF ALL AUSTRIAN TEENAGERS CHOOSE TO DO AN APPRENTICESHIP AND ABOUT 44% OF ALL APPRENTICES CONTINUE TO WORK FOR THE COMPANY WHERE THEY TRAINED

sign of training rules and developing new apprenticeship professions, which makes it possible for the system to respond to the requirements of business and labour markets and deliver training that is adjusted to changing needs. One of the key partners in delivering vocational education and training in Austria are the economic chambers, who act as the link to businesses offering apprenticeships. This ensures that the professions offered within dual education are up-todate to changing business environments and technological developments. In addition, the economic chambers provide practical guidance for the businesses offering apprenticeships. Currently the dual education experts from the Austrian Federal Economic Chamber partner with the Croatian Chamber of Commerce in the EU project Cap4Apps Erasmus+ on dual education in Croatia. Also, through its go-international programme ADVANTAGE AUSTRIA is planning pilot projects for dual education in Croatia whose aim is to help Croatia design a dual education model that meets the specific needs of Croatia while delivering outcomes similar to Austria – low youth unemployment and a skilled workforce - to drive growth in Croatia.

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ADVANTAGE AUSTRIA

LINK BETWEEN AUSTRIAN AND CROATIAN BUSINESSES Advantage Austria Zagreb is the representative office of the Austrian Federal Economic Chamber in Croatia and the Commercial Department of the Austrian Embassy

idely known as the country of Mozart and Lipizzaner horses, the cradle of Psychoanalysis and the home of the Sacher Torte, Austria is a small country, rich in nature, with crystal clear lakes, beautiful mountains and wonderful cities brimming with rich cultural life. Austrians are grateful for this heritage and thankful that this is what Austria is commonly associated with. But there is more: not many know, for instance, that the world’s first interactive 3D underwater maps using high-resolution and precise geographical data are from Austria. So far, more than 120 dive sites in the Red Sea, 7 in the Austrian Attersee, 3 in the German Kreidesee, and over 50 in the Florida Keys have been mapped, and in the near future, more than 30 dive sites in Palau will be charted too. Or that a tun-

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neling method developed in Austria in 1962 is still the worldwide standard in 2017. Who would have thought that the office furniture featured in the last James Bond movie was designed and built by an Austrian company? And hardly anyone

ADVANTAGE AUSTRIA IS THE FOREIGN TRADE DEPARTMENT OF THE AUSTRIAN FEDERAL ECONOMIC CHAMBER WHICH IS THE LEGAL REPRESENTATIVE OF 450,000+ AUSTRIAN COMPANIES

would be aware that the access system and the roof’s structure and glass tiles at Ascot Racecourse in England, where the Queen watches her beloved horses race, were designed and built by Austrian companies.

SURPRISINGLY INGENIOUS

Innovations ‘made in Austria’ are in high demand all over the world. Often the Austrian companies behind these stateof-the-art products and services are not household names to the general global public, but they are key drivers of innovation in industries as diverse as steele and cable, bespoke glazing, automotive and many more. Austria has more than 160 of such ‘Hidden Champions’, companies who succeed through innovation, a strong focus in their strategies, and a global reach.

EXPORT IS AUSTRIA’S GROWTH ENGINE The ingenuity and success of Austrian entrepreneurs is one of the pillars of Austria’s wealth and high living standards. For instance, this is reflected in the fact that Austria’s capital, Vienna, has been ranked top in Mercer’s quality of living survey eight years in a row. Being a small, open economy, exports are vital for Austria’s wealth creation. Exports generate nearly 6 out of 10 Euros of Austria’s GDP, and every second workplace in Austria is secured by exports of goods and services. International trade is therefore the country’s primary source of wealth creation and one of the main pillars of Austria’s economy and society. Austrian companies are exporting to about 220 countries worldwide, and if we use exports per capita as a measure, , Austria with its USD 16,817 per person is the world’s 7th largest exporter. In 2016 Austria’s goods exports reached an all-time high of EUR 133.5 billion, and for 2017 we expect a plus of 4%. In Austria about 55.000 companies directly engage in export, about 90% of which, interestingly, are small or even micro-companies.

WORLDWIDE SUPPORT THROUGH ADVANTAGE AUSTRIA To continue the success story that is Austria’s export industry, Austria’s exporters need to be able to use every opportunity in every corner of the world every day. This requires entrepreneurial courage and the will to innovate. What is also needed is a partner who knows the circumstances and business environment abroad and who can be counted on anytime and anywhere. And this partner is ADVANTAGE AUSTRIA, the Foreign Trade Department of the Austrian Federal Economic Chamber.

The Austrian Federal Economic Chamber is the legal representative of 450,000+ Austrian companies of all sizes and across all sectors. It is a leading force in economic and social policy making on regional, national and even EU level. ADVANTAGE AUSTRIA not only is the Foreign Trade Department of the Austrian Federal Economic Chamber, it is also the official Trade Promotion Organization of the Republic of Austria. With offices on every continent ADVANTAGE AUSTRIA provides services to around 25,000 Austrian businesses each year.

IN 2017 ADVANTAGE AUSTRIA ZAGREB ORGANISED 30 EVENTS IN CROATIA AND LED CROATIAN DELEGATIONS TO 4 MAJOR INDUSTRY EVENTS TO AUSTRIA It offers worldwide support for all Austrian entrepreneurs who want to conduct business abroad. Services offered include tailor made market research, finding suitable business partners in the respective country, support in establishing a business in the foreign market, help in clarifying issues with both business partners as well as authorities and institutions, provision of basic tax and legal information, organisation of networking events, trade & fact finding missions, and many more.

CONNECTING AUSTRIA

AND CROATIA

Between Croatia and Austria lies only a short stretch of Slovenia. So, Austrians tend to count Croatia as one of our neigh-

boring countries, even if geographically this is not entirely correct. ADVANTAGE AUSTRIA Zagreb is the representative office of the Austrian Federal Economic Chamber in Croatia and the Commercial Department of the Austrian Embassy. Established more than 60 years ago, ADVANTAGE AUSTRIA Zagreb has become a vital link between Austrian and Croatian businesses, servicing over 1,000 Austrian and 800 Croatian businesses per year. In 2017 Advantage Austria Zagreb organised 30 events in Croatia and led Croatian delegations to 4 major industry events to Austria. ADVANTAGE AUSTRIA events focus on either providing intelligence for both Austrian and Croatian businesses, or establishing B2B contacts between Croatian and Austrian companies. What all of these events have in common is that they provide a platform for businesses to expand their networks. Focus areas of ADVANTAGE AUSTRIA Zagreb in the three years to come are Infrastructure, IT, Tourism and Education. However, since ADVANTAGE AUSTRIA Zagreb is working across all sectors and industries, it has developed excellent relations with Croatian institutions, organizations and companies across the board, working to the benefit of both Croatia and Austria. The economic relations between Croatia and Austria are excellent and keep improving again, since Croatia has managed to find its way out of the recession. Since 2015 bilateral trade has been picking up and will soon reach the pre-crisis peak of 2 billion EUR per year. Service exports are also developing very well on both sides and Austria is still the 2nd largest investor in Croatia with around 3,8 bn. EUR direct investments since 1993. More than 650 Austrian companies currently have subsidiaries in Croatia, generating jobs for about 30,000 people and actively contributing to Croatia’s economic growth and development.

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Nikica Miloš

ECONOMY

SOCIAL AGREEMENT INSIDE CAPITALISM

Austria, a land with no kangaroos, as those funny T-shirts used to state, is actually very close to Australia in one way: it is also one of the world's wealthiest countries

ctually, Australia is doing slightly better, as the 9th richest country in the world, while our Austria is ranked 14th. It is fine for a country like Qatar, which is full of oil, or Norway, for the same reason, to be in the Top15, but to be there without many natural resources, only through wit and hard work, well, that’s quite an outstanding achievement.

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THE AUSTRIAN TRADE UNION FEDERATION (ÖGB) IS COMPOSED OF CONSTITUENT UNIONS AND HAS A TOTAL MEMBERSHIP OF ABOUT 1.5 MILLION

EVERY MAN'S LAND

Having passed through many phases, the Austrian economy developed in such a way after World War II that it quickly became a role model for the majority of the world’s other countries. If we spoke quite often about so-called “Swedish Socialism” or what is largely viewed as the Scandinavian welfare state (similar in Iceland, Norway, Denmark or Finland), sometimes

the people of Eastern Europe (except Estonians, of course) believe that the Scandinavian model can’t be replicated here, since we are very different culturally, climatically, economically and religiously. And yet, Austria seems quite close to all of us who come from this region, from Lithuania to Poland and from Serbia to Romania. As such, the Austrian vision of economics can, and should, be readily applied. One of the things that made Austria an economic powerhouse was its neutrality. Military budgets were cut, and this neutral country that applied Western capitalism with a strong Social state seemed to be acceptable for both the Soviets and the Americans. It quickly became a hub for the economic development of the Eastern Bloc, even during the Cold War era, and especially afterwards, when Western companies felt the joy and promise of lucrative and empty Eastern markets. And the Austrians, being all too familiar with all of us, were the first to jump aboard the train and invest in Czechia, Hungary, Serbia and Croatia, without the hesitation of, say, British or Belgian companies.

WIT, NOT RESOURCES

But let’s take this story a bit further. If we take a look at the list of the richest of the rich, there are some countries that... erm, shouldn’t be there… if we’re talking about natural resources. Luxembourg? Switzerland? Ireland? Singapore? Denmark? All of them have wit, and aren’t afraid to work hard to tame their inhospitable, or simply tiny, land in order to make it great. Austria is no exception. A landlocked country that decided to cut its social differences (until the 1980s, the largest companies in Austria were generally na-

tionalised, with the state's grip gradually loosened in the following years), with labour movements strongly influencing labour policies and industries. The Austrian Trade Union Federation (ÖGB) is composed of constituent unions and has a total membership of about 1.5 million— more than half of the country’s wage and salary earners. Since 1945, the ÖGB has pursued a moderate, consensus-orientated wage policy, cooperating with in-

VIENNA HAS GROWN INTO A FINANCIAL AND CONSULTING METROPOLIS, ESTABLISHING ITSELF OVER RECENT DECADES AS THE DOOR TO THE EAST dustry, agriculture and the government on a broad range of social and economic issues in what is known as Austria's “social partnership”. Well, while then PM Thatcher was talking about new liberalism and President Reagan was introducing his policies, Austria remained faithful to its slow but steady progress. And it paid off: in 2004 Austria was ranked as the fourth richest country within the European Union, with GDP (PPP) per capita of approximately €27,666, it was only listed behind Luxembourg, Ireland and the Netherlands.

FELIX AUSTRIA, WHAT NOW?

As the easternmost of all capitalist states in Central Europe (the only country

located further eastwards is Finland), Austria was forced to work with Italy, and especially Germany, as its main trading partner. With these two giants as neighbours, Austria suffered a lot as a result of every fluctuation in these two, large, G7-Member economies. Limited cooperation with the then Yugoslavia and other countries could not stabilise the economy in the case that it was hit by huge turmoil. Nowadays, though, with Austria having become surrounded by EU members, and for that matter by strong economies (Slovenia is ranked 35th worldwide, Czechia 40th, Slovakia 46th and Hungary 57th), Austria is more comfortable, while its cooperation with eastern countries that are not members of the EU has only served to further stabilise the country. And what Austria does the most is invest eastwards. Namely, Austria is known for its service sector, which generates the vast majority of the country’s GDP. Vienna has grown into a financial and consulting metropolis, establishing itself over recent decades as the door to the East. Viennese law firms and banks are among the leading corporations when it comes to doing business with new EU member states. This is something that we in Serbia know quite well. As the country generates steady growth of one to three per cent, there is no crisis on the horizon, but no spectacular growth either. Still, that’s very Austrian: don’t change a winning system. Now they’re doing so well that they don’t really need to work too hard or grow spectacularly, though their 45-hour working week is the longest in Europe. But the fact that they have a lot of leisure and social benefits means you can't say it.

WINNING TEAM

AS THE COUNTRY GENERATES STEADY GROWTH OF ONE TO THREE PER CENT, THERE IS NO CRISIS ON THE HORIZON, BUT NO SPECTACULAR GROWTH EITHER. STILL, THAT’S VERY AUSTRIAN: DON’T CHANGE A WINNING SYSTEM AUSTRIA 2018

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A LARGE, COOPERATION

LARGER, THE LARGEST

Tradition meets present times

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ustria was the main investor in Croatia since the times of the Habsburg Empire. The relations between the Empire in Vienna and the Kingdom in ‘Agram’ were always tight, so it doesn’t come as a surprise that even today Austria is the largest foreign investor in Croatia.

FACTS, FACTS, BITTE! Well, not only in Croatia, but in all former ‘Austrian lands’. From

Hungary to Serbia and Slovenia to Ukraine, Austria is either the most involved country in the economic sphere, or at least one of the most involved. The facts corroborate this - there are more than 700 Austrian companies operating in Croatia. Furthermore, the figures show that Austria is also the largest foreign investor in Croatia with more than 7 billion euros invested from 1993 to 2014. The Austrian and Croatian entrepreneurs cooperate mostly in the field

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Nikica Miloš of metal processing, electrical industry, wood processing, textile and footwear industry and food industry, in its healthy food segment. Croatia and Austria are founders and members of The Alps-Adriatic Working Group. The organization’s goals are mutual communication, discussion and coordination of the points of interest of the member states, development of cooperation and exchanges in the Alpine-Adriatic region, strengthening of the Central European cultural identity and participation in the processes of the European cooperation and integration. Main areas of cooperation are sports, tourism, environmental protection, connecting cities, preservation of cultural and recreational spaces, culture and science and European integration.

THE RELIABLE ALLY

Since the beginning of the 1990s, i.e. since Croatia's independence, Austria has played an important role in building a strong Croatian economy. Since the early 1990s, Austria has invested about 6.4 billion euros in Croatia, which represents about a quarter of all foreign investments made in Croatia. The Austrian Federal Economic Chamber (WKÖ) once described the Croatian market as an "extended home market" for Austrian entrepreneurs, which is indicative of Croatia having favourable conditions for Austrian investors to enter its market. This is noticeable especially in the areas of financial services (Erste Bank, Bank Austria, Raiffeisen, Volksbank, Generali, Uniqua), telecommunications (A1) and media (Styria) where Austria has invested heavily in Croatia. The construction indus-

try (STRABAG, Alpine) and wholesale and retail trade (WT, Billa, Palmers, Porsche, OMV, Spar) are supported by Austrian investors. In total, about 700 Austrian companies operate in Croatia, making Austria the strongest foreign investor in Croatia. In addition to entrepreneurial activities and FDIs, foreign trade with Croatia is also an important component of the Croatian-Austrian economic relations. Austria mainly exports to Croatia raw materials such as leather, wood products (chipboard, softwood), industrial products such as winding wire, electrical conductors and body parts, as well as consumer goods such

CROATIA AND AUSTRIA ARE FOUNDERS AND MEMBERS OF THE ALPSADRIATIC WORKING GROUP as mobile phones, televisions and chocolates. Croatia mostly exports to Austria machinery and mechanical equipment, tractors and vehicles, electrical appliances, wood and hardware, shoes, furniture, leather and edible preparations. Croatia's exports are largely re-exports from Croatian plants of Austrian companies. In 2015, the volume of Austrian exports to Croatia amounted to approximately 1.375 billion euros, while Croatian exports to Austria amounted to approximately 540 million euros which all resulted in a trade surplus for Austria in the amount of approximately 835 million euros.

The Croatian-Austrian Chamber of Commerce was founded in 2002 following an initiative by the former Director General of Raiffeisen-Landesbank Steiermark, Georg Doppelhofer who played a leading role in the chamber’s establishment. According to the chamber’s president, Markus Mair, the Chamber of Commerce’s tasks are boosting economic relations between the two countries and facilitating Croatia’s economic path to the European Union.

TOURISM AS A GENERATOR OF WEALTH

Austrian nobility started visiting Croatian coast back in the 1880s. Opatija became a fashionable destination for the Austrian imperial family and Austrian nobility. Soon many luxury hotels and villas were built. The first luxury hotel – the Quarnero Hotel (1884) (today Grand Hotel Kvarner) - was designed by the Viennese architect Franz Wilhelm. The Kronprinzessin Stephanie Hotel was opened in 1885. Crown Princess Stephanie, after whom hotel was named, and her husband Crown Prince Rudolf appeared at the opening. In 1887, Heinrich von Littrow established the Union Yacht Club Quarnero in Opatija which was the first sailing club on the Adriatic. In 1889, Austrian government officially declared Opatija as the first climatic seaside resort on the Adriatic. Even today, the Austrians are among the most frequent visitors of the Croatian coast, while the Croats are frequent visitors of Austrian ski resorts. A total of 1,018,521 Austrian tourists visited Croatia in 2014, and they had 5,403,515 overnight stays. Austrian tourists occupy the 4th place (after Germans, Italians and Slovenians) in the overall number of foreign visitors of Croatia.

FACTS

THE FIGURES SHOW THAT AUSTRIA IS ALSO THE LARGEST FOREIGN INVESTOR IN CROATIA WITH MORE THAN 7 BILLION EUROS INVESTED FROM 1993 TO 2014 AUSTRIA 2018

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AN INTENSIVE FRIENDSHIP SHAPED BY CREATIVITY AND DIALOGUE

Be ready for an even more intensive and mind a provocative outburst of cultural events in 2018 who has not spent time in these premises! In 1992, the first Austrian Embassy was finally opened in Croatia, heralding the onset of a new common stage of intensive cooperation. This address has been a constant companion, starting point and destination, a refuge, a place of constantly changing encounters, a fixed point down the years, for so many people of both countries. The third-oldest Austrian cultural mission abroad has established itself both as an important, pivotal hub of the cultural exchange between Austria and Croatia and a requisite source of information, which has enabled scientific exchange and partnership-based cooperations with artists of both countries.

THERE IS A VERY WIDERANGING INTERESTED AND BOLD PUBLIC IN CROATIA WITH WILLINGNESS TO ENGAGE IN EXPERIMENTAL ART AND CONFRONT AWKWARD THEMES

SUSANNE RANETZKY

Director of the Austrian Cultural Forum

he Austrian Cultural Forum, together with Croatian and other partners, realises up to 180 events in Croatia within a year. It introduces to the public mostly young artists and culture creators from all artistic and cultural fields. What role does the Forum and its programmes play in Croatia's cultural life? ― In order to describe the role and the importance of the Austrian Cultural Forum, allow me to dwell a little into the past of

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the Zagreb Cultural Forum. We plunge into a history that began over 60 years ago, in June 1955 shortly following the signing of the Austrian State Treaty, albeit in a modest form as the “Austrian Reading Hall” in Gundulićeva 3 in Zagreb, and will hopefully remain at this location that has become an institution for long to come. This Reading Hall soon fulfilled the function of a cultural institute, bursting with people, feelings, anecdotes, history and stories. There cannot be anybody of note

What, do you think, are the most important things for establishing mutual cultural and spiritual ties between our two countries? ― A common history and thus also an evolved common past in relation to cultural expression and artistic creativity arguably create the optimal conditions for a strong association of our two countries. Another important factor is the value of personal encounters as part of the common artistic experience, an advantage afforded by the geographic proximity of the two countries.

Which ideas and artistic content are the most popular in the interaction between the Croatian audiences and Austrian artists? ― The cultural creation associated with tradition, creativity and innovation is crucial for Austria’s identity while representing an important contribution to international dialogue. The often overtaxed catchphrase “culture overcomes borders and opens doors” is ultimately true and culture binds people of different origin, religion and worldviews. In our daily work, we engage in a balancing act between traditional and modern cultural forms of expression, which it is necessary to master in order to reach the widest possible audience. Our focus, however, is clearly on conveying the contemporary aspects of the cultural and scientific creativity in Austria with annually selected thematic priorities, with special attention paid to the young creative talents in Austria in dialogue with Croatia’s artists. Could you tell us how does that look in practice when you and your Croatian partners devise programmes for next season? ― Thanks to its longstanding activity, the Austrian Cultural Forum is naturally optimally networked both with Austrian and Croatian artists and creative partner institutes of both countries. The most important element is the communication and the personal contact with partners – together opportunities for collaboration are explored, themes and specific contents formulated and projects prepared, while new partnerships are constantly sought and new encounters facilitated. Important issues to be addressed each

time are: “What do we want to convey (from Austria) in the next season?” and “What is the partner country interested in and what would it like to be involved in shaping?”. Our motto: Culture unites, moves and conveys. Which concrete plans and programmes do you have for 2018, and how would you rate 2017 from your professional perspective?

IN 2018 WE WILL MAKE USE OF OUR NETWORK TO OFFER A DIALOGUE OF CULTURES ALONGSIDE A COLOURFUL PROFUSION OF EVENTS WITH ARTISTS FROM ALL FIELDS OF ART ― Allow me to begin by looking back to the year 2017: the Western Balkans region is extremely important for Austria – both economically and culturally. As part of its focus on the Western Balkans, the Austrian Federal Ministry for Europe, Integration and Foreign Affairs has paid particular attention to this region with annual cultural favoured-country priorities. In 2017, Croatia, as a country closely connected to Austria in ties of friendship, was chosen as the main focus of Austrian culture abroad. In the Croatia-Austria Year of Culture, both countries presented themselves under the motto: “Experiencing culture together” even more intensively than before in the partner countries with an incredible, full programme.

Let me single out some of the Cultural Year 2017 countless events throughout Croatia. First there is the exhibition “Zagreb and Vienna 1900” shown in Zagreb (Klovicevi Dvori Gallery) and in Vienna (Belvedere Vienna). Then, Austria is as partner country at many wellknown festivals in Croatia for example at Zagreb Book Festival, Designweek Zagreb, Tolerance Festival Zagreb , Festival of World Literature, Festival Večeri na Griču etc. And last but not least we celebrated “50 years on stage” with the famous Croatian actor Žarko Potočnjak with the wonderful One-Man –Show “ Zvjezdani Trenuci Josefa Biedera” in the theater Gavella in Zagreb. In 2018. important themes for us are “Women in Society, Culture and the Sciences”; “Creative Austrians: pioneers for tomorrow’s society”; the commemoration of “100 years of the Republic of Austria”. What are the common motives and interests of young artistic creators in Zagreb and Vienna? ― Art is no longer an end in itself – by their contributions and achievements, many young Austrian and Croatian artists are instead attempting to become involved in actively and positively shaping the future, while also turning attention to explosive social, ecological, political, religious and economic issues of our time and seek solutions with artistic approaches. The spectrum ranges from ecological architecture to exhibitions and design concepts for computer tablets for the visually impaired, films against surveillance (art controlling the controllers), media art and the man-machine relationship, with “artivism” against food waste, xenophobia and much more.

PUBLIC

I CAN ASSURE YOU THAT THERE IS A VERY WIDERANGING INTERESTED AND BOLD PUBLIC IN CROATIA WITH WILLINGNESS TO ENGAGE IN EXPERIMENTAL ART AND CONFRONT AWKWARD THEMES AUSTRIA 2018

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Nikica Miloš

CULTURE

WALTZ ME R AMADEUS

ecently we had Falco or Opus in the 1980s - enough for the pop charts – but in the 18th and 19th centuries London was a distant outpost, New York was a freshly liberated colony, and Manchester was a giant textile factory. Seattle? No way! Everything came from Vienna: both Mozart and Strauss, and an endless list of others.

The capital of music, long before Manchester or Seattle. Yes, Austria's prominent trademark was always shaped by its inclination towards music, though not so much recently 28

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THE SOUND OF MUSIC

Yes, this Alpine musical, extremely popular in the English-speaking world, originates from Austria. Let me remind you of the plot: “Set in Austria on the eve of the Anschluss in 1938,

the musical tells the story of Maria, who takes a job as governess to a large family while deciding whether to become a nun…” Et cetera. The 1965 film based on the story won five Academy Awards and now we all know about “Edelweiss”. But Austria was a musical superstar country long before that. We tend to easily conclude that people were so much more sophisticated in olden times, but that is not true. Opera houses, just like theatres, were places where people gathered to hear brand new hits. And Wolfgang Amadeus Mozart, another prominent Austrian, was a genuine hit-maker. And after him came the Strauss family, the Waltz Kings, who were the rulers of the dance floors. And don’t forget that Franz Liszt, despite being Hungarian, was glorified all around the Austrian Empire. And if Johann Strauss Senior, his son and Joseph Strauss were the dictators of fashionable tunes at the time, Liszt was the first concert superstar, as he possessed a refined style and good looks. Things haven’t changed much in the last few centuries, right? Living in such a vast empire, centred towards the South and the East, influenced Austrian music so much, with local themes. Germany and Italy were also musical superpowers at the time, but during the Baroque period Austrian music was influenced by Slavic and Hungarian folk forms. Vienna's status as a cultural centre began to rise in the early 16th century, focused around instruments including the lute. Later, as the whole culture came under the strong influence of Hungarian, Bohemian, Italian and German cultures, a unique identity somewhere in between all these identities emerged, creating an

Austria that was flourishing and multicultural, yet still German-speaking. And many Slovenian and Hungarian motifs entered classical music via Haydn, while one Croatian national song from Burgenland (Gradišće) even became the national anthem of the Austrian Empire – and since 1922 the anthem of Germany. The original Croatian song was “V rano jutro

GREAT INNOVATIONS COME FROM GREAT EMPIRES AND SELDOM FROM SMALL COUNTRIES. AND IT IS NO WONDER THAT AUSTRIA GAVE THE WORLD SO MUCH WHILE IT WAS AT THE PEAK OF ITS GLORY se ja vstanem”, which Haydn changed. To make the fuss even greater, Slovenian composer Davorin Jenko used a variation of the same Austrian-Croat song to compose the Serbian national anthem, “Bože pravde”. So, if you did not know or haven’t noticed, the Serbian and German anthems are essentially the same song, adapted on the basis of an Austrian-Croat song. Nice, isn’t it? Great innovations come from great empires and seldom from small countries. And it is no wonder that Austria gave the world so much while it was at the peak of its glory. Austria gave us one of the most divine artistic styles in the history of art:

the Secession style. Of course, there are different Secession subgroups in the world – perhaps for us the Hungarian one should be the most familiar, and hence most important. But the Viennese Sezessionstil was quite stunning. To remind us all, it was an art movement formed in 1897 by a group of Austrian artists who had resigned from the Association of Austrian Artists, housed in the Vienna Künstlerhaus. This movement included painters, sculptors and architects, including Gustav Klimt. However, members of the movement were not compelled to adopt any single specific style. “To every age its art; to every art its freedom” was the motto. Jugendstil was magnificent, with its animal and floral motifs, with free use of every ornament known to man. And it is stunning even now – the last great European style, they say. Art Deco was intercontinental, and not only European. And it is not just art either: it is also psychology, with Freud and Adler; it is the Vienna School of Fantastic Realism, and Austrian film artists. In the silent movie era, while it was still a great superpower, Austria was one of the leading producers of movies. Hedy Lamar was a stunning beauty, the first to act naked on film. Billy Wilder established Hollywood and Fritz Lang was the father of science fiction. So, Austria was modern before it was fashionable around the globe. Some theorists say that German-speaking countries gave the most in the fields of music, psychology and philosophy, while the English-speaking world gave us a lot of literature and film, Italians and Romance nations gave us visual arts, and the Slavs give us all soul. Austria, as a place somehow in the middle, gave us a bit of everything.

MOVEMENT

THE VIENNESE SEZESSIONSTIL WAS QUITE STUNNING. TO REMIND US ALL, IT WAS AN ART MOVEMENT FORMED IN 1897 BY A GROUP OF AUSTRIAN ARTISTS AUSTRIA 2018

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Nikica Miloš

SPIRIT OF AUSTRIA

THE CORE T OF THE FIRST EUROPEAN UNION Conservative, liberal, paradoxical, beautiful, harmonious

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hose who try to characterise the spirit of a nation based only on ethnicity or language could be baffled by the difference between Canadians and Americans. But these people would be even more baffled when it comes to Germany and Austria. Although they speak German, Austrians formed their identity against a different background that is, on one hand, deeply Germanic, while on the other hand it deeply isn’t. As such, the old capital of Vienna still serves as the informal capital of the vast and rich multicultural world of Mitteleuropa, or Middle Europe.

Every culture has its outposts and every culture has its multicultural outposts. Peter the Great made his famous and magnificent Saint Petersburg, in order to “carve a window into Europe”, and it became the most diverse and cosmopolitan of all Russian cities. Ukraine has Odessa, an imperial city inhabited by dozens of immigrant nations. Serbia has Vojvodina, while Croatia has its Istria. The list goes on and on. And what is specific about these “outposts” is that they are not the “core” or “hard centre” of a culture, but rather a splendid mixture of something genuinely traditional and deeply foreign. And thus the German-speaking world has its vibrant, jolly and multifaceted Austria. The Austrian mentality was deeply derived from its imperial past. Austria and its Habsburgs tried desperately to unify German lands, but the battle was lost definitively in the 19th century, to Prussia, which managed to achieve that unification. In return, Austria concentrated on ruling its vast continental empire, with the Habsburgs ruling such countries as Belgium or Spain. But the crucial difference was the fact that one German-speaking country ruled over such peoples as Italians, Hungarians, Czechs, Poles, Croats, Romanians, Serbs, Ukrainians et al., which have so many differences among them, not to mention the stark differences between them and the Austrians. And that proved to be beneficial when the spirit of Austria emerged. Waltzes ruled the world; Viennese nightlife was as good 150 years ago as London nightlife is today. The Prussians were precise, the Swiss hard-working, the Austrians, enriched with so many contrasting cultures, were jolly. Empress Sissy liked Hungary and popularised the idea of a polycentric Empire. Her favour-

ite places were on the very periphery of the Empire, like Baile Herculane in Romanian Banat, where she went for spa treatment and attempted to learn Romanian national songs and the Romanian language. The mocking suggestion that “a Viennese graveyard is merrier during any night than Zurich on a Saturday night”, already well known, merely demonstrates how Austria was formed: you cannot rule Venice, Prague or Budapest if you are stiff and rigid.

AUSTRIA A COUNTRY THAT DURING MUCH OF ITS EXISTENCE STROVE TO AVOID OVERSEAS COLONIES, AND TO INSTEAD IMPROVE THE LIFE OF ITS CITIZENS IN THE CORE OF THE OLD CONTINENT Then, finally, came the idea of genetic mixing. Many people state with pride that they are Austrians, though anyone with a clear mind could recognise their non-German surnames, especially Czechs and Slovenes. But isn’t that the point? To speak German while knowing your Slavic origins, like Krajsky, Prohaska or Schuschnigg? Just as it is very Austrian to be 100% Germanic. Moreover, something else that is very Austrian is to believe in opposites: during the last presidential elections, the Green candidate, Van de Bellen, of Dutch origin, received some 50% of the vote, as did Freedom Party leader Norbert Hoffer,

traditionally German. The Greens promoted LBGT-friendly traffic lights in Vienna, while their opponent is fiercely conservative. The Austrians may cherish their imperial past, with many of the former nobility carrying their titles with pride, yet Red Vienna is the pride of the Austrian capital, while the city boasts of having the highest living standards and being the most liveable city in the world, equally for rich and poor alike. Some might joke that Austrians are a paradox; that they are like a traditional cookie: “red (leftist) on the outside and brown (conservative) on the inside”. But that didn’t prevent them from giving the world some of its greatest ever scientists and artists. Why is Austria so good for thinkers and artists? Because in such an environment, with so many fusions, you have to question yourself constantly: who am I? Sigmund Freud, Alfred Adler, Oscar Kokoschka, Hundertwasser, Egon Schiele, Alphonse Mucha. Although he was originally from Prague, Franz Kafka lived in Austria, spoke German and had that same very self-questioning Austrian spirit. Some of them are ethnically Jews, some Czechs, some Germans… Well, that is the point. Ethnicity very rarely mattered in the flourishing and neutral Vienna or Austria, a country that during much of its existence strove to avoid overseas colonies, and to instead improve the life of its citizens in the core of the Old Continent. Austrians formed the first European Union, long before the current one. Austria is still in favour of the idea of building culture and identity not only on the basis of genetics, but also on language, common values and the idea of belonging to the same Central European family. That is why this tiny state is still so resilient, and is also still a role model.

THE IDEA

AUSTRIA IS STILL IN FAVOUR OF THE IDEA OF BUILDING CULTURE AND IDENTITY NOT ONLY ON THE BASIS OF GENETICS, BUT ALSO ON LANGUAGE, COMMON VALUES AND THE IDEA OF BELONGING TO THE SAME CENTRAL EUROPEAN FAMILY AUSTRIA 2018

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Nikica Miloš

TOURISM

OH, VIENNA! Imperial Remnants on the Beautiful Blue Danube

e take you to the centre of the Austro-Hungarian Empire – to the “carstvujuščij grad of Viena", as we once called it... We will repeat it once again: there is a big, big difference between ordinary capitals, “regularly beautiful” cities that were built exclusively using their own money, and those cities that were centres of vast empires, and which were desired to express imperial or royal power, bragging with the capital's dignity, built usually with a little help of the sweat of conquered peoples. The first group includes many cities, while the other includes only a privileged few. Among them is the ancestral capital of the Habsburg empire, the black and yellow empire, or, if you will, the K. und K. (Kaiser und König – "The Emperor and the King") monarchy: Vienna. Vienna, in essence, is an exception in the Germanic world: it is too lavish, too cheerful, too elegant and too cosmopolitan. It is too much in the rhythm of the waltz, with too much love for wine, artists, painters, musicians and poets… and it is too multi-ethnic. No wonder that some of the most important villains never liked it. But there were many who didn’t like Vienna: for example, the Swiss, in their parsimony, precision and barren Protestantism. Many older memories of

our fellow citizens, spoken or written, will give us such a good picture of the cheerful capital of Austria, the merriest Germanic city in the world, which only we, Croats and Hungarians call Beč (Bécs). Well, let’s pass through a little history.

THE HOME OF THE GREAT

Vienna was, like half of Europe after all (including Belgrade), founded by the Celts, and they called it Vindomnia. It was strategically located, with the Danube to the east, forests to the north and west, and a small Danube tributary to the south. It was later conquered by the Romans, who used it as a fortress against the Germans, Teutons. But the climate was then cooler and the fledgling armoured Romans were not very com-

DURING THE SECOND SIEGE OF VIENNA IN 1683, A “SOUVENIR” FROM THE TURKS REMAINED – THE STRANGE BEVERAGE THAT KEPT THE TURKS AWAKE AND WAS KNOWN AS “COFFEE”

fortable in the woods of Noricum. We may recall the Roman officer called Maximus, interpreted by Oscar winner Russell Crowe, who in The Gladiator is close to Vindobona (Vienna in Latin) when he exclaims “Roma victor!” (“Rome the victor!”). Vienna was governed by the Babenburg family until 1246, when it was replaced the Habsburg family, which remained in power for a further six and a half centuries!

DIFERENCE

THERE IS A BIG, BIG DIFFERENCE BETWEEN ORDINARY CAPITALS, “REGULARLY BEAUTIFUL” CITIES THAT WERE BUILT EXCLUSIVELY USING THEIR OWN MONEY, AND THOSE CITIES THAT WERE CENTRES OF VAST EMPIRES 32

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The Eastern Habsburg Empire would be fixed on the rivers Sava and Danube, forming a civilisation that was driven by Germanic Catholicism, but which was essentially a stunning mix of peoples and cultures. They say that during the second siege of Vienna in 1683, a “souvenir” from the Turks remained – the strange beverage that kept the Turks awake and was known as “coffee”. Coffee has played a major role in the life of the Viennese since then, particularly in the form known as “melange”, which is actually a mixture of coffee and creamy milk. The frenetic reconstruction of Vienna following its liberation from the Turks, which left a large part of Central Europe as it looks today, left us with Viennese magnificence, and made the recognisable baroque face of this sophisticated city. But this empire’s biggest rise was recorded during the time of Empress Maria Theresa and her son Joseph II, when construction projects included the palaces of Schönbrunn, Hofburg and Belvedere, which became instant landmarks of the imperial

city. Of course, most of the buildings had to be a light amber colour, as that was the favourite colour of Empress Maria Theresa. However, we also have to look beyond the empire to the period of the Austrian Republic, which left some magnificent traces on the face of the city. The era of social democracy after World War I was marked the name “Red Vienna” (“Rotes Wien”), when impressive apartment com-

DURING THE SECOND SIEGE OF VIENNA IN 1683, A “SOUVENIR” FROM THE TURKS REMAINED – THE STRANGE BEVERAGE THAT KEPT THE TURKS AWAKE AND WAS KNOWN AS “COFFEE”

plexes, such as Karl-Marx-Hof, which contained a then unimaginable total of 1,325 apartments, were built. This complex remains one of the attractions of the Austrian capital.

WHAT TO SEE?

St. Stephen’s Square (Stephansplatz) is certainly not part of the imperial legacy, “in the narrow sense” of the word. Gothic in structure, St. Stephen's Cathedral (Stephansdom) is monumental in every respect, both internally and externally. Stained glass windows, altars, pews... It is extremely elegant in that mediaeval, mystical way, in contrast to the baroque and classicism that adorns the other remnants of Vienna’s imperial legacy. It's hard to catch on camera; that's how big it is! On Stephansplatz there are many charming shops and cafes, but, of course, the most striking detail is the carriages, called fiakers. If you're in the money, then riding one is as much of a “must” as a gondola ride in Venice or a retro black cab ride in London - take a ride and

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feel for a moment the bygone world of 85 years ago... When men greeted women by saying “I kiss your hands!”, and where dates were held secret and the hand of a loved one was always sought from her father... Let's go to the promenade along the main street of Vienna, Graben. Walking down the Kohlmarkt ("Coal Market"), where Viennese stand to drink their glasses of wine after work, with a laugh, we reach the impressive Hofburg. Imperial Vienna had its epicentre right here, in the house of Habsburg. Hofburg is actually an entire complex of buildings and gardens, with the two identical buildings of the Natural History (Naturhistorisches) Museum and the Art Museum (Kunsthistorisches). Between them, in the garden, sitting on the throne with dignity, is Maria Theresa (whose name was carried BY THE Serbian city of Subotica until 1918), “looking at her subjects”, including us! Austrians were

tality, intrigue, luxury, conspiracy... This is definitely a jewel of Baroque culture, which you will need a whole day to tour! Learn about the royal family, the beautiful princess Sissi, who loved Hungarians more than Austrians, the baroque Counter-Reformation, which wanted to capture the hearts of believers by splendour... Take a walk to Neptune fountain and the victory monument, Gloriette. Enjoy the greenery and watch people jogging casually. Now let’s go to the other end of town, which is only geographically distant, but contains the logical next step: Belvedere Palace... The construction of the palace complex was ordered during 1714 by Austrian General Prince Eugene of Savoy, following his successful military campaigns against the Ottomans. In 1752, Maria Theresa purchased the building and made the summer residence an “imperial and royal picture gallery”, becoming the “god-

SO, ONCE YOU SEE VIENNA, YOU WILL UNDERSTAND THE TITLE OF THE ARTICLE, WHICH IS AN EXCLAMATION OF ULTRAVOX’S EPONYMOUS NEW WAVE HIT. VIENNA DESERVES EVERY MINUTE AND EVERY SIGH known as lovers of greenery – hence the massive parks full of paths and greenery throughout the city. Among them is the City Park (Stadtpark), which the Danube and Novi Sad is said to be modelled on; because the Austrians wanted more than anything to “clone” all the areas they conquered and transfer all their culture, making these conquered peoples Austrians by culture. In many ways, they succeeded. There is a monument of Johann Strauss in the middle, seemingly “caught” while playing his famous waltz-violin. Needless to say, Schönbrunn Palace (literally: “Beautiful wells”) is under UNESCO protection. The palaces and parks around it definitely represent a “doorway” to a new world, i.e. the old world; the world of imperial dignity and the world of monumen-

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mother” of the building, which has been called the “Belvedere” ever since. The collection was opened to the public in 1781, but what is interesting is that the palace also served as a shelter for the French royal family following that country’s revolution… at least for the survivors... Near the Belvedere there is a church dedicated to Saint Charles, Karlskirche, which is a great baroque building in its own right. You also shouldn’t miss the buildings constructed in the Art Nouveau style, such as the metro and tram stations and in particular the masterpiece of the Viennese secession style known as Sezession House, which has a standing that is on the same level as its Hungarian or Parisian counterparts... that is the level of the mastery of architecture and décor!.

HUNDERTWASSER-HAUS

On the corner of Vienna's Kegelgasse and Löwengasse streets is one of the newer Viennese “miracles”: the famous Hundertwasser House, the counterpart of the Barcelona houses designed by Gaudí. Viennese artist Friedensreich Hundertwasser (1928 - 2000) was a bitter opponent of massively constructed and poorly designed “modern” residential buildings, a fan of vibrancy and a protector of the environment. He felt that such modern buildings could only make a man tired, reducing the creativity and joy of those who live in them, and that they could be an eyesore for those just passing by and taking a glimpse at these modern monstrosities. In short, like Antoni Gaudí, he was a lover of uniqueness and playfulness... The Vienna City government offered him the project to construct the building at the end of the 1970s. Hundertwasser came out with the first redesign of the project, and later – following the enormous success of this house - the money and new projects just poured in... The result is fantastic: individuality that is second to none. Every door and window are different, each apartment has a different colour, façade and décor. Tenants are given complete freedom to redesign anything. The façade is a real “patchwork” of colours, shapes and mosaics. The building also contains trees that grow in small apartments filled with earth! Hundertwasser has always stressed that these trees can provide shade and peace for tenants... and the whole building looks like part of the natural landscape when viewed from the air, as its roof is “covered” by trees. It is occupied by “ordinary residents” like you and I – not some “special” privileged people. Unless we think that living here is a privilege, which, of course, it is. It is a great tourist attraction and tourists literally flock to this place, while the small shops and cafés it contains are packed with visitors. So, once you see Vienna, you will understand the title of the article, which is an exclamation of Ultravox’s eponymous new wave hit. Vienna deserves every minute and every sigh.