InFocus Austria by Diplomacy&Commerce magazine

Austria 2019

AUSTRIA & SERBIA

EXCELLENT AND COMPREHENSIVE RELATIONS H.E. NIKOLAUS LUTTEROTTI

ERIKA TEOMAN BRENNER

Austrian Ambassador to Serbia

Commercial Counsellor, Embassy of Austria

NADA KNEŽEVIĆ Director of Vienna's office of Chamber of Commerce and Industry of Serbia

IN NUMBERS Tourism in Austria brings in around one billion dollars each year.

K RIMMLER WASSERFALLE

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

WEINER SCHNITZEL

The most famous of Austrian dishes is Weiner Schnitzel, which are cutlets of veal, pounded thin, dusted with egg and breadcrumbs, and then fried.

T HE OLDEST ZOO

Vienna has the oldest zoo in the world, founded in 1752.

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03 ALPS

62% of Austria's total land area is covered by the Austrian Alps.

MORE THAN 1000 ROOMS

Schönbrunn Palace, the summer palace of the Habsburgs, has no less than 1,440 rooms.

MOZARTBONBON

ATIONAL N FLAG

A Mozartkugel is a small, round confection made of marzipan, nougat and dark chocolate. It was originally known as the “Mozartbonbon”, and was created by Salzburg confectioner Paul Fürst in 1890 and named after Wolfgang Amadeus Mozart.

The Austrian flag is one of the oldest national flag in the world. It dates from 1191, when Duke Leopold V fought in the Battle of Acre during the Third Crusade.

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BUSINESSES LOOK FOR TRANSPARENCY AND PREDICTABILITY H.E. NIKOLAUS LUTTEROTTI Austrian Ambassador to Serbia

Austria and Serbia have a very good and constructive cooperation in various fields

he Austrian business community is in general very satisfied with doing business in Serbia. We have 400 Austrian companies in Serbia providing jobs for around 18,000 persons and have invested around 2.3 billion Euros. Serbia is an important economic engine for the whole region and has already undertaken a number of important reformsâ&#x20AC;&#x153;, says Austrian Ambassador to Serbia, H.E Nikolaus Lutterotti, emphasizing that over the last

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WE HAVE GOOD AND EFFICIENT COOPERATION FOR EXAMPLE BETWEEN THE MINISTRIES OF INTERIOR AND THE MINISTRIES OF JUSTICE

years Serbia has shown great ambition and determination to embark on reforms of the country so as to move ahead towards EU membership. He also points out that there is a mutual interest of the European Union and the countries in the region for the accession process to be successful. In the interview he talks about bilateral cooperation between Serbia and Austria, the opinion on Kosovo and EU integration.

Do you think that there is a possibility that Priština and Belgrade will overcome the dead-end in current talks?  I sincerely hope so. We strongly support a resumption of the dialogue between Belgrade and Pristina and hope that it will happen soon. We have urged the authorities in Kosovo to abolish the tariffs that they imposed in violation of the rules established by CEFTA. Both sides need to refrain from any acts that further jeopardize the dialogue. We are convinced that both sides tend to gain more from a comprehensive normalization of relations than from the status-quo. The former EU envoy for Kosovo, Wolfgang Petrich said that Brussels should think about organizing a conference, in which both Serbian and Kosovar representatives would participate, and which would go on until a solution was found. Do you think that this is a viable solution?  We support the dialogue between Belgrade and Pristina under the facilitation of the EU High Representative. And we believe that this dialogue should resume as soon as possible, in order to build confidence and to reach an agreement. It is primarily up to the parties to find such a legally binding agreement on a comprehensive normalization of their relations. After all, both parties will have to secure the necessary political support at home. How much does the Kosovo issue deter Serbia from tackling urgent, internal issues, particularly those related to the European integration process? 

Support

Without the comprehensive normalization of the relations between Belgrade and Pristina there will clearly be detrimental effects on the development of both sides. In other words, both sides would gain a lot from a normalization of their relations. It is quite obvious that in Serbia a lot of political energy would become available for other urgent

RECONCILIATION AND PROGRESS IN RESOLVING BILATERAL ISSUES AND CONFLICTS ARE OF MAJOR IMPORTANCE FOR THE STABILITY AND PROSPERITY OF THE REGION reforms after settling the Kosovo issue. This includes reforms that are relevant to advance on the EU integration process. Let me also add that the entire region of the Western Balkans would benefit enormously from a solution and it would send a positive signal for further regional reconciliation and cooperation. How much has Serbia done lately in regard to the rule of law and media freedom?  The EU Commission reports on a six-monthly basis on progress made by Serbia in the area of the rule of law. According to that assessment, that we

share, the picture is a mixed one. We recognize that progress has been made. But we equally hope that efforts with regard to the independence of the judiciary, the fight against corruption, media freedom, the domestic handling of war crimes and the fight against organized crime will be further strengthened. In the context of reforms and economic growth, what would you single out as key changes that the Government should work on and to which the Austrian business community in Serbia had been pointing out?  The Austrian business community is in general very satisfied with doing business in Serbia. We have 400 Austrian companies in Serbia providing jobs for around 18,000 persons and have invested around 2.3 billion Euros. Serbia is an important economic engine for the whole region and has already undertaken a number of important reforms. Where Austrian companies would like to see improvement is regarding the overall setup for doing business in Serbia, namley in the broad area of the rule of law. Our businesses look for transparency and predictability in administrative and regulatory procedures, an independent judiciary, a more effective fight against corruption and a clear and predictable tax administration. The issue of education and vocational training for skilled workforce is also becoming more pressing and Austria has been successfully cooperating with Serbia in the field of dual education. Which topics related to the bilateral cooperation are the most important for you at this moment?

AUSTRIA WILL CERTAINLY CONTINUE TO SUPPORT SERBIA’S EU INTEGRATION PROCESS AND HER REFORM EFFORTS AUSTRIA 2019

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 Our relations are manifold and very intense. Bilateral conomic relations have been developing well over the last years, but we think that there is still room for improvement. Political relations are excellent and I am happy that in addition to our exchanges at the highest politcal level there is a good exchange among different ministries from the Minsters’ level down to the working level. We have good and efficient cooperation for example between the Ministries of Interior and the Ministries of Justice. We will also reinforce the cooperation in the field of Innovation and Technology Development, Public administration and digitalization (e-government). I am confident that there will be even more in the months to come. Cultural and scientific exchange has traditionally been good and intense. The Austrian Cultural Forum at the Austrian Embassy promotes contemporary Austrian art and culture and puts a lot of emphasis on partnerships with local cultural actors, fostering dialogue and aiming at responding to the needs of local professionals and the Serbian audience. The European dimension, however, is equally a very important part of the cultural work of the Austrian Cultural Forum. The local EUNIC cluster, consisting of 18 European Union National Institutes for Culture and Embassies, is jointly carrying out and sup-

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ences in order for these countries to be better acquainted with EU-discussions and decision making processes. We are also interested to involve Serbia and the other countries of the region in the discussions about the future of Europe. The bilateral cooperation that I mentioned before includes very specific support for reforms relevant to the EU integration process. We are active through Twinning projects and will continue to apply for new projects. We will also continue our support for economic development and investments as well as supporting Serbia in the field of vocational training and dual education. Within the Berlin Process, Austria has supported efforts to strengthen the role of civil society and youth and we would like to see the Regional Youth Cooperation Office (RYCO) working smoothly and successfully. Reconciliation and progress in resolving bilateral issues and conflicts are of major importance for the stability and prosperity of the region.

WE HAVE URGED THE AUTHORITIES IN KOSOVO TO ABOLISH THE TARIFFS THAT THEY IMPOSED IN VIOLATION OF THE RULES ESTABLISHED BY CEFTA porting several projects per year such as lectures on public diplomacy or an Artist in residence program that brings artists from all over Europe to Serbia to work together with their local counterparts. What will be the focus of your support to Serbia in the European integration process in the coming period?  Austria will certainly continue to support Serbia’s EU integration process and her reform efforts, both on a bilateral level as well as within the European Union. We believe that it is important that the EU accession process remains a priority of the EU’s political agenda and we will advocate for this. During our presidency we have been working towards more inclusion of Serbia and the other countries of the region into EU meetings and confer-

Do you see Serbia as a country that is at the helm of the EU integration, or are other Western Balkan countries ahead of us?  Serbia is certainly among the frontrunners of the EU accession progress. More than 50% of the negotiating chapters have been opened. The pace of the accession process, however, will be determined by each Member State and by the concrete results achieved in the reforms necessary for EU membership. In the case of Serbia, irreversible progress and implementation of reforms in the area of the rule of law are very important. These are areas that will benefit particularly the citizens of Serbia and would also have a very beneficial impact on the business location of Serbia attracting more investments. Do you think that Serbia fully takes advantage of the Austrian support for its European integration process? How much can Austria’s expertise in this matter benefit Serbia?  As mentioned before we have a very good and constructive cooperation with Serbia in various fields. We are happy to continue and intensify this cooperation where Serbia feels it could benefit from Austrian experiences and expertise.

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EXPORTS FROM SERBIA HAVE CONTINUOUSLY INCREASED ERIKA TEOMAN BRENNER

Commercial Counsellor, Embassy of Austria

Bilateral trade has developed favorably in the last few years and has reached a record high of 1.2 billion Euro

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centage of the Austrian investments in Serbia which can be considered as technologically advanced?  Given the fact that Austrian companies in Serbia are predominantly active in the service sector, we can rightly claim that they are technologically very much advanced. These companies – be it banks, insurance companies or other service providers - are constantly innovating within

ustria is one of the largest investment companies in Serbia, so that our cooperation could be further increased we talked with Erika Teoman Brenner, Commercial Counsellor Embassy of Austria. Some of the interview topics are the perspective of economic cooperation between Serbia and Austria, what does our country mean for the implantation of dual education, and how important it is for the economy. Erika Teoman Brenner says austrian companies - banks, insurance companies or other service providers - are constantly innovating within their respective markets and upgrading their services to customers in line with the most modern technologies.

SERBIA HAS DEFINITELY MADE SIGNIFICANT IMPROVEMENTS IN THE OVERALL BUSINESS CLIMATE THROUGH REFORMS OF THE LABOUR AND CONSTRUCTION LAW

Serbia recorded a surplus in the trade with Austria in January 2019. To what extent are Austrian investors in Serbia contributing to this favourable result?  We are pleased to note that exports from Serbia have continuously increased over the last years, thus narrowing the trade gap between our two countries. This is a good sign for the competitiveness of Serbian producers as well as for the growing internationalization of production chains in Serbia. AS to the impact of Austrian investors, it is difficult to make a valid assessment on the basis of just one month. Since these preliminary data do not give any indication regarding the product groups, we cannot seriously comment on the contribution of Austrian investors to these results.

their respective markets and upgrading their services to customers in line with the most modern technologies. We have also a significant investment in an IT-company in Serbia that develops extremely advanced systems for the European automotive industry. On the other hand, even those investments that originally came to Serbia as “low-tech” manufacturing, are gradually upgraded as we know from our companies. To what extent is Serbian cost effectiveness of labour an attractive value proposition for Austrian investors? How do Austrian companies envisage risks of

How would you estimate today the per-

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shortage of quality labour in Serbia?  If the goal is to set up production in Serbia, or in any other country, a potential investor from Austria takes into consideration the availability of labour and its costs , infrastructure etc. A service sector company, on the other hand, most often targets the domestic market and, therefore, looks at a completely different set of parameters. In this case, it is really important to see if there is demand for that service, what is the income situation of the customers´ groups, what are the trends in customer behaviour etc. Labour shortage is slowly becoming an issue for the companies here, although not to the extent, yet, as in some of the neighbouring countries. It is, therefore, of utmost importance to develop strategies to make certain professions more attractive to people by demonstrating promising carrier opportunities and providing an excellent working environment. Is dual education an adequate response? Are there other measures that may improve this segment of the market?  Dual vocational education is definitely a key element in training skilled people and should be a priority when it comes to reducing the risk of shortage of qualified labour. The main characteristic of dual education is not only the full integration of the young person in the company and the close cooperation of the company with the vocational school, but also the strong commitment of the company, both financially and in terms of human

AUSTRIAN COMPANIES IN SERBIA ARE PREDOMINANTLY ACTIVE IN THE SERVICE SECTOR, WE CAN RIGHTLY CLAIM THAT THEY ARE TECHNOLOGICALLY VERY MUCH ADVANCED AUSTRIA 2019

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resources. This system guarantees that young people get the chance to develop their social as much as their professional skills. Our experience in Austria shows that the majority of these apprentices get employed right upon completion of their apprenticeship training as fully qualified staff member by the same company. This alone should be a very promising perspective for anybody considering to enter a dual vocational training program. Additionally, we are currently working on turning the dual-education system into a three-track education by adding and focusing on digital competencies. Thus, we make sure that young people are prepared for a digitized work environment. Among all the possible measures to deal with a future shortage of labour, I would think that attracting more women to technical professions is probably the most effective and would benefit all parties involved – not least the women, since it means also higher wages for them. What could Serbia learn from your experiences in dual education when we talk about tertiary education?  Apart from the apprenticeship concept, there are colleges for higher vocational education concentrating on engineering, arts and crafts. Students finish these schools normally at the age of 19. The two final years are now classified as short-cycle tertiary education in order to make sure that these schools´ special position in terms of awarding full professional qualification as well as access to university education, is recognized also on an international level. Joint projects are often carried out by these schools working together with the business community, such as diploma projects focusing, for example, on the practical implementation of research and development findings. These schools, along with the apprenticeship system, are considered to be exemplary throughout Europe. We know from many international surveys that foreign investors consider these colleges as one of the most important assets of the Austrian educational system. How do you evaluate the current trend of reforms and changes in the business environment?

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DUAL VOCATIONAL EDUCATION IS DEFINITELY A KEY ELEMENT IN TRAINING SKILLED PEOPLE AND SHOULD BE A PRIORITY WHEN IT COMES TO REDUCING THE RISK OF SHORTAGE OF QUALIFIED LABOUR  Serbia has definitely made significant improvements in the overall business climate through reforms of the labour and construction law. Also, the firm commitment of the Serbian government to follow the EU-path enhances trust and confidence on the part of foreign investors. Apart from the obvious criteria, like costs of infrastructure and labour, they also evaluate very carefully the framework conditions for operating a business. This applies mainly to the rule of law and, more specifically, to transparency and length of administrative and regulatory procedures. Hence, any improvement

in these areas will have a positive impact on potential investors, both domestic and foreign. What do you see as your priorities in the future?  We are very pleased to see that our bilateral trade has developed favorably in the last few years and has reached a record high of 1,2 billion Euro. It is naturally our goal to keep this positive trend and see the trade grow even faster. Towards this end, we organize a series of events and conferences, both in Serbia and in Austria and hope that these will help to strengthen existing business ties and establish new ones between our two countries. A special highlight this year will be our regional conference AUSTRIA CONNECT Southeast Europe 4.0 in cooperation with the prestigious IEDC- Bled School of Management in Slovenia. This event will focus on the challenges of digitalization for companies in the region and the role of executives in this transformation. Top speakers combined with first-hand testimonials of successful Austrian companies in Southeast Europe, and not least the beautiful setting, should lead to an intensive exchange of ideas and information on the part of the participants, which will ultimately result in closer cooperation between the businesses of this region.

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WE HAVE A GREAT POTENTIAL FOR BOLSTERING COOPERATION NADA KNEŽEVIĆ

Director of Vienna's office of Chamber of Commerce and Industry of Serbia

The Austrian market is demanding and competition is stiff, but Serbia has picked up the pace in recent years. Our progress in this market will mostly depend on how fast our private sector will develop and advance since it has great potential

erbian business people, especially those who are already successful in the domestic and ex-Yugoslav markets, are taking a determined step forward in the EU market, mostly the Austrian one, because of the potential for expanding their business to Germany and Switzerland, or the entire German-speaking region. Apart from their products, Serbian companies also offer services, which turned out to be particularly profitable.

Serbia has recently presented its tourism potential in Vienna. What are your impressions of Serbia's ability to establish itself as an attractive destination for Austrian tourists?  This year's international tourism fair in Vienna, Ferien Messe Wien, took place in January. The Fair is the biggest exhibition of this type in Austria, with 155,322 visi-

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tors. The booth at which Serbia presented it tourist potential this year, was jointly organized by the Chamber of Commerce and Industry of Serbia and the Chamber of Commerce of Vojvodina. A group performance of nearly 30 exhibitors entailed the presentation of destinations, tourist centres, organizations and locations in different parts of Serbia. The exhibition

POSITIVE EXPERIENCES OF FOREIGN BUSINESSES IN SERBIA ARE ALSO VERY IMPORTANT AND CAN BE EVEN MORE IMPORTANT THAN ECONOMIC INDICATORS

area was too small to take everyone who showed interested in the tourist potential of Serbia. Serbia’s tourist offer of Serbia is already known in the Austrian market, as are weekend visits and city tours of Belgrade, cruising the Danube from Belgrade to the Iron Gate, hunting tourism in Vojvodina, the EXIT Festival or Kopaonik ski resort. However, there are many things that the Austrian tourists are yet to discover. Great potential lies in wine routes, rural tourism, spa tourism, etc. On average, the Austrians go on vacation three times a year, enjoy food and drink, are interested in cultural heritage and in special, thematic festivals. Most often, they decide to stay in neighbouring countries and the EU, with all other destinations lagging behind in terms of representation. Serbia should use its proximity and good transport connectivity, but it has to

do much more in terms of market presence and promotion because the competition in the Austrian market is stiff. This is not without reason, because the Austrians are among the biggest tourist consumers. In 2016, they spent more than 15 billion euro on vacation, of which nearly 11 billion was spent overseas. If there is understanding for positive impressions that the Serbian exhibitors took from the fair in Vienna this year, I expect that their performance will be even better and more impressive next year.

nies are developing software for Austrian companies, and they maintain information systems not only in Austria but also in other EU countries. Thus, Serbian Telekom operates in Austria through its M:tel company, while Roaming Networks is working on modernizing the network of Austria's largest mobile operator, Telekom Austria A1.

Serbian business people are becoming increasingly active in the Austrian market. Where do they most often search for their niche in this demanding market?  I can tell you from my experience that those Serbian companies, which came to the Austrian market with high quality, well-designed and price competitive products, have managed to accomplish their goals. It takes persistence, time and money to get to know the market and the competition and to establish contacts with potential customers. Success does not come overnight, although it may sometimes look so. There are various success stories - from very small enterprises, such as producers of wicker products or wooden objects for everyday use like wooden cooking spoons or chopping boards to the manufacturers of metal parts and machine tools, chemical products, construction components and systems, and prefabricated houses. In regard to services, Serbian businesses mostly provide services in latest and high-tech IT and design. Serbian compa-

SERBIA’S TOURIST OFFER OF SERBIA IS ALREADY KNOWN IN THE AUSTRIAN MARKET, AS ARE WEEKEND VISITS AND CITY TOURS OF BELGRADE, CRUISING THE DANUBE, THE EXIT FESTIVAL AND OTHER

Considering your good knowledge of the Austrian market and domestic ca-

pacities, which opportunities would you particularly highlight for Serbian products?  Digitization is a major topic in Austria and all important factors are subjected to it. The Austrian economy, as well as the political establishment, are aware of the extent to which digitization will change not only the production processes and business methods but also all other aspects of society. There is a great opportunity for our IT companies in this segment since they are absolutely com-

Tourist potential

petitive, and also due to the fact that the resources that the state of Austria allocates in this segment are extremely high. Food processing and machine building industry also have great potential here. Investments and transfer of technology and knowledge are needed as well since these two large sectors can hardly be built on the basis of their own capacity. There is a big difference in exporting wheat, raw and frozen fruit and sugar to Austria, and attracting Austrian processing companies to produce biscuits and toast bread in Serbia, which will then be exported to the region and beyond. Serbian construction companies are very interested in the Austrian market, but in this area, the problem is the work permits that are necessary for sending workers abroad. Austrian companies are withdrawing from the Austrian market, and moving production to parts of the world with more competitive labour costs. How effective can Serbia be in utilizing this opportunity?  Austrian companies are relocating not only production facilities from their own country but also the facilities that they have abroad. Thus, production facilities from China are being moved to the locations that are closer to the Austrian market, or from central European countries to destinations where there is sufficient workforce. Serbia has utilized this opportunity, and we have companies that relocated from Austria, as well as from China, the Czech Republic and Slovakia. Companies rarely publicly announce relocation in order to avoid negative publicity that comes with taking jobs outside

SERBIA SHOULD USE ITS PROXIMITY AND GOOD TRANSPORT CONNECTIVITY, BUT IT HAS TO DO MUCH MORE IN TERMS OF MARKET PRESENCE AND PROMOTION BECAUSE THE COMPETITION IN THE AUSTRIAN MARKET IS STIFF AUSTRIA 2019

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Austria. Relocation is revealed only after negotiations have ended and agreement has been signed. Since small and medium-sized Austrian companies are increasingly interested in Serbia, and these are the companies that are more careful with their investments, can you tell us what can we do to encourage them to view Serbia as a secure and safe investment destination?  There is a big difference between small and medium-sized enterprises in Austria and Serbia, primarily in terms of categorization. Austrian SMEs have fewer than 250 employees, an annual turnover of up to 50 million euro and a balance sheet worth up to 43 million euro. It should be noted that 99.6% of the Austrian economy is made up of SMEs, and that, at the moment, there are 328,900 registered SMEs that employ around 1.96 million people in total. The turnover generated by these companies last year amounted to about 455 billion euro, and the preliminary value of exports realized by these companies is estimated at approximately 70 billion euro. Investment decisions are made at the company level, in the family, because most of these companies are family-owned through generations. It is true that these companies are more careful in terms of investing, primarily because they invest from their own funds. In this respect, their personal impression of Serbia is very important, as is political and economic stability, the way in which institutions function and the rule of law. Positive experiences of foreign businesses in Serbia are also very

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panies in Austria so someone can come up with a good business idea regarding products or services that could be offered in the Austrian market.

IT IS ALSO IMPORTANT FOR US THAT OUR DEFICIT IN TRADING WITH AUSTRIA HAS BEEN DECREASING OVER THE PAST FEW YEARS important. For this reason, it is necessary that the media and other platforms show good examples from practice as much as possible. This should not only apply to Austrian companies operating in Serbia. It is also very important to popularize information about the success of Serbian com-

What is the current situation in the Austrian economy like, and do you expect that a decline in economic growth in Europe and in Austria could affect the external trade between Serbia and Austria?  Although current indicators predict a slowdown in the economic growth for Austria and Germany, I think that the trade between Austria and Serbia should continue to grow. According to the latest forecasts of the Vienna Institute for International Economic Studies (WIIW), a 4.4% growth for Serbia is forecast, while in 2019, it could reach 3.4% (2.9% in 2020 and 2021). Therefore, the expectations are that Serbia will experience a decline in economic growth in the following period, but the values will continue to be significantly higher than what is predicted for Austria and Germany. Although the statistical data concerning the external trade between Serbia and Austria differ, it is certain that its value has exceeded one billion euro, and that the growth trend from recent years is continuing. It is also important for us that our deficit in trading with Austria has been decreasing over the past few years. In terms of the countries that Serbia exports to the most, Austria is not even among the top 10 countries. What can we do to increase our export and achieve better export to import ratio?  Yes, Austria is not even in the top 10 countries that Serbia exports to the most in terms of the value of trading in goods and services. Still, I would like to underline that, in the last two years, Serbia has made it to the top 30 countries that Austria trades with the most. This is important information, particularly bearing in mind that Austria trades with over 200 countries. The Austrian market is demanding and competition is stiff, but Serbia has picked up the pace in recent years. Our progress in this market will mostly depend on how fast our private sector will develop and advance since it has great potential.

CORPORATE

Serbia to Learn

FROM AUSTRIA JELENA KNEŽEVIĆ

Managing Director LeitnerLeitner

It is of utmost importance to keep the balance between administrative requirements and objectives of the new legislation

eitnerLeitner is one of the leading tax advisory and auditing firms in Central and Eastern Europe which is getting more and more recognized in Serbia due to professionalism and high quality of services, says at the beginning of the interview Jelena Knežević, LeitnerLeitner Managing Director. LeitnerLeitner Serbia was founded in 2011. What are the most common problems for your customers? What should the government do to help companies work? — Our clients are faced with different issues on a daily basis, but many of them arise due to possible misunderstanding in the interpretation and application of national legislation. The Government should continue its efforts in diminishing administrative burden for companies. On one hand, in comparison with a decade ago, digitalization made significant changes allowing companies to save both time and money; now companies for example, fulfil their tax obligations with several clicks, instead of waiting in long lines. On the other hand, Serbia recently adopted a set of laws in order to deal with important matters such as anti-money laundering and protection of personal data. However, these changes, even though generally positive, are sometimes adding administrative burden towards some companies, which may not have sufficient resources or access to all information that may be required as per amended legislation. Therefore, it is of utmost importance to keep the balance between administrative requirements and objectives of new legislation. Your company's headquarters are in Aus-

tria. In your opinion, which business model would be good for Serbia to adopt from Austria? — Serbia has a lot to learn from Austria. As a mature economy in Europe, Austria is following all global trends in terms of investments in start-ups and innovation in general. Serbia recently adopted amendments of Corporate Income Tax Law, with one of the major amendments being tax

RESULT

Digital transformation of traditional industries is a challenge which companies operating in Serbia face as a result of rapid and radical technological changes incentives for companies investing in R&D and innovation, which represents a positive signal for future developments in this area. Dual education is also one of area where Austria is very active supporter of Serbia. What is the perspective of the Serbian market and what will be the main priorities in the business of companies? — According to growth projections for 2019, Serbia will continue annual economic growth of 3.5-4%. The Government announced that attraction of new investments will be top priority in the following period. Currently, there are about more than 60 active infrastructure pro-

jects and 12 new large investments are planned, most of them from German, Italian and Turkish investors. Also, recent amendments in legislation introduced tax reliefs relevant for investment businesses, making Serbian market more attractive and more competitive. This is a good basis for a stronger export growth, increasing the number of domestic products to be sold worldwide in the years to come. Additionally, the main priorities of companies operating in Serbia will be large investments in the high technology industry and production. In the coming period, the investment should be further directed to export-oriented sectors and high technologies. Apart from that, digital transformation of traditional industries is a challenge which companies operating in Serbia are facing as a result of rapid and radical technological changes. What would your advice be to company managers for a successful business? — To always invest in people. Many managers may argue that investment projects and innovation bring success to companies, but in the end, people are that key factor that makes a difference for success of their organizations. LeitnerLeitner is always oriented to professional and personal development of our employees by investing in continuous education in the field of tax, audit, and accounting. As we work in financial services industry, employees and their knowledge are our most valuable resource. We live in a time of constant changes of legislation including tax legislation and therefore it is of crucial importance to constantly be up to date with the latest amendments.

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CORPORATE

We Brought Innovations

INTO THE MARKET DEJAN TURK CEO Vip

We are glad that we are still offering “a different story” to our customers and that we are able to surprise them again and again

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n Vip women and men are equally represented in all positions. The conditions for promotion, earning and training are the same for all. Dejan Turk, CEO Vip mobile, tells us about the specificity of their business and further plans. Vip mobile is known as a company that takes care of individual (private) users who support business users. You participate in a whole series of actions that strengthen entrepreneurship, small and medium-sized enterprises. Which projects are currently most current? What kind of support your customers can count on? — Best interest of our customers is the most important guiding principle of our business, which both private and business custom-

ers have recognized and, as a result, have higher expectations from us. We have set standards in the market by introducing the recognizable unlimited communication within the national traffic and by being the first to provide better conditions for roaming charges. This year, we continue to pay close attention to what our customers have to say and we are the first company to create a special offer for new mothers in 2019 – free subscription for any postpaid tariff for a period of nine months. We believe that family values are crucial, so with the help of Dečja zona app, Bezbedni klinci website and Čuvarkuća service, we are providing an opportunity for parents to live a more peaceful, stress-free life, to ensure the safety of their family, and to protect their children from inappropriate online content. As for the business customers, in addition to the offers by which we support small and medium-sized enterprises, we aim to establish and maintain a strong partnership with them, as well as to improve their business, through various projects. Our business customers are among the first on the market to be presented with innovative smart solutions, such as Vip Mobility Insights, which uses Big Data to help them improve their business and understand the needs of their customers. Also, the Narrowband Internet of Things technology can be applied broadly in Serbia, which is why we are among the first

CONTRIBUTION

Our aim is to give a significant contribution to the digitization process in Serbia by investing in infrastructure, creating competitive tariffs and making smart devices available

operators in the world to enable the use of this technology in the development of IoT solutions that will automate a great number of business processes. Our customers can be absolutely certain that, by taking part in a number of similar cooperations, we are working on improving the business environment in Serbia. How do you assess the company's operations in the past period? Are you satisfied with the financial results and the number of users? — We are glad that we are still offering “a different story” to our customers and that we are able to surprise them again and again. In the previous period, we have achieved excellent results and success in various fields. We have once again brought innovations into the telecommunications market for the benefit of our customers, whose numbers have now exceeded 2.2 million. According to the official reports of our parent company A1 Telekom Austria Group, Vip mobile in 2018 reached a market share of 24% and generated EUR 249m in revenues. Last year was very dynamic for us and the results speak for themselves, owing to the innovative offers we have introduced to the market and the unique campaigns that make us recognizable. Despite continuous investments in the market, services and infrastructure, as well as in mobile frequency licenses, Vip has been able to maintain sustainable growth for several years, which is reflected in a constant increase in the number of customers who place their trust in us, and a steady increase in the market share.

tion by upgrading the network and developing modern solutions and services that we also use in our socially responsible projects, which is one of the most important aspects of our business.

and we felt that it was a natural progression for us. Vip has 1,200 employees and the ratio of men and women is 50-50. We are particularly glad to see that same ratio in the managerial positions.

Vip is known as one of the most gender-sensitive companies. Can you tell us more about your actions in this field? — I strongly believe that gender equality should no longer be a challenge to employers, but something that they should promote and genuinely apply in practice. In Vip, the conditions for career advancement, remuneration and professional development are completely the same for all employees. The empowerment of women is a matter that we take very seriously in our business philosophy. At the end of last year, we were presented with the “Most Gender-Sensitive Company” award by the Association of Business Women of Serbia,

You are also Vice President of the Foreign Investors Council (FIC). Can you tell us your opinion on the business environment in Serbia today? — Serbia is evidently making progress, perhaps not at the speed that we would all want to see, but the progress is constant, which is clear from the economic growth and the gross domestic product. Perhaps even more important fact for all of us in the private sector is that the outlook is positive, as confirmed by the European Commission’s experts. The results suggest that domestic demand in Serbia will see a steady increase, and spurred on by a rise in consumption, investment activities as well, with the support of a continuous inflow of foreign direct investments. Of course, private consumption has seen a rise primarily due to a reduction in unemployment, which has an additional impact on business. Over the past years, Serbia has made considerable investments in the process of digital transformation. I believe that without digitization of the government system, the financial sector, education, as well as of corporate business processes, there can be no progress. Digital transformation is the way for Serbia to keep up with all the other countries in the region and across Europe.

RESULTS

Last year was very dynamic for us and the results speak for themselves, owing to the innovative offers we have introduced to the market and the unique campaigns that make us recognizable

What are your plans for this year in Serbia? Are you planning a new investment or acquisition? — We will continue investing in the market, services and infrastructure, as well as in the mobile frequency licenses, considering that for several years Vip mobile has been able to maintain a sustainable growth, also reflected in a constant increase in customer numbers. Vip’s objective for the coming period will not change: our aim is to give a significant contribution to the digitization process in Serbia by investing in infrastructure, creating competitive tariffs and making smart devices available to a large number of users. In accordance with its role as innovator, Vip initiates projects that will speed up the process of digital transforma-

AUSTRIA 2019

Focus

C OOPERATI O N

MONEY FROM DIASPORA he Serbs in Austria are the second largest ethnic minority group after the Germans. The first Serbian migration wave here began in the early 19th century, while most of them moved to Austria thanks to the migrant worker programme in the 1960s and 1970s. The Serbs are still migrating to Austria due to the wellknown economic factors. Each of us has or knows someone who went to Austria to live. Most of them send money to their families here from time to time. One of my friends who study in Graz

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AUSTRIA 2019

Common history, cultural similarity and geographical proximity contribute to Serbia and Austria's excellent bilateral relations

jokes all the time how she takes money to Austria, instead of bringing it to Serbia. According to the NBS data, in the

39% OF THE AUSTRIAN COMPANIES IN SERBIA ESTIMATE THAT THE COUNTRY NEEDS BETTER INFRASTRUCTURE

first nine months of 2018, the remittances from Austria alone, where close to 120,000 Serbian citizens live, amounted to 216 million euro. In cooperation with the Vienna-based International Centre for the Development of Migration Policy (ICMPD) and with the financial support of the Austrian Development Agency, the Chamber of Commerce and Industry of Serbia is preparing the project called "LinkUp! Serbia - Encouraging Diaspora Investment". The project will assess the business environment for the diaspora's investment in Serbia, with

the Serbs living abroad offered projects in which they can invest. However, the relations between Austria and Serbia do not begin and do not end with the diaspora. Common history, cultural similarity and geographical proximity contribute to Serbia and Austria's excellent bilateral relations. They are bolstered through regular contacts of the highest officials, the developed economic cooperation, the cooperation in the process of our European integration and through the large Serbian community in Austria, as a very important factor. The significance of the relations between Austria and Serbia stems from the fact that Southeastern Europe - and, therefore, Serbia - is in the focus of the Austrian foreign policy. The cooperation between Serbia and Austria is strengthened through a number of regional initiatives such as the Central European Initiative and the Danube Commission. Vienna is an important political and business centre both in Europe and the world, a seat of numerous international organizations and companies, as well as the place where a large Serbian diaspora lives and the place for an even better cooperation thanks to Serbian companies operating in Austria. Serbia and Austria have signed agreements on mutual encouragement and protection of investments and economic, agricultural, industrial, technical and technological cooperation. Another important agreement is the Development Cooperation Agreement. Readmission and cooperation agreements on combatting international illegal drug trafficking and international terrorism are also very important. The most important projects of Aus-

trian support that Serbia jointly implements with the Austrian partners are the incorporation of dual education into the educational system of Serbia with the view of educating students in line with the labour market needs, the support for digitization of especially small and medium-sized enterprises and building a strong and efficient chamber system in service of economy. The Serbian budget is good, indebted-

ACCORDING TO THE NBS DATA, IN THE FIRST NINE MONTHS OF 2018, THE REMITTANCES FROM AUSTRIA ALONE, WHERE CLOSE TO 120,000 SERBIAN CITIZENS LIVE, AMOUNTED TO 216 MILLION EURO ness has declined, the labour market is recovering and investments are growing. However, there is still the issue of the rule of law that needs to be improved. Twothirds of Austrian companies operating in Serbia are very satisfied with the business conditions here and in 2019, they plan to invest even more. According to the Austrian Chamber of Commerce in Serbia, close to 500 Austrian companies invested 2.8 billion euro in Serbia, with the companies based in Vienna alone investing 1.8 billion euro.

Dual education

Of that, 53% would like to see less bureaucracy in Serbia, while 44% would like to see stronger anti-corruption measures. Also, 39% of the companies estimate that the country needs better infrastructure. Austrian companies also said that they were mostly satisfied with the employees' qualifications, but 56% believe that there was a problem of the availability of qualified workforce, whereas as many as 87% of them were interested in participating in dual education, that is, in training interns in line with the dual system education, similar to that that exists in Austria. In 2016 and 2017, 90% of the Austrian companies said that they would invest in Serbia again. Products that Serbia exports to Austria are methanol (methyl alcohol), sodium, acetic acid, sugar, hot rolled strips, rubber, preserved sour cherries, fruit and vegetable juice, frozen raspberry, raspberry juice. We import from Austria medication, copper cylinder logs, metal and metal foundry machinery, public telephone exchanges, goods and passenger vessels, cell phone transmitters (mobile phones), construction hardware, panels, wood chipboards, newspaper papers. The energy sector plays an important role in the economic cooperation between the two countries, keeping in mind a large number of projects being implemented here, including the revitalization of energy facilities. A good example of this is the revitalization of the Zvornik Hydro Power Plant, carried out by an Austrian partner, the Voith Hydro Company. There is also a pronounced interest of Austrian companies in the implementation of top technologies in improving energy efficiency in construction.

THE MOST IMPORTANT PROJECTS OF AUSTRIAN SUPPORT THAT SERBIA JOINTLY IMPLEMENTS WITH THE AUSTRIAN PARTNERS ARE THE INCORPORATION OF DUAL EDUCATION INTO THE EDUCATIONAL SYSTEM OF SERBIA AUSTRIA 2019

Focus

CORPORATE

Reliability and Speed are

OUR SPECIALITIES FILIP BORŠIK

Director of IB Interbilanz Consulting & Audit d.o.o.

We are focused on foreign clients operating in Serbia and the region, namely on companies from the German-speaking region - Austria, Germany and Switzerland

B Interbilanz Consulting & Audit d.o.o. operates under IBD Group GmbH, Vienna. IBD Group was established in Austria and has been providing consulting and auditing services since 1991 in Austria and in other countries. The company has been operating in the Serbian market for more than 15 years. We talked with Filip Boršik, Director of IB Interbilanz Consulting & Audit, about what was it like to do business in our country What services does your office specialize in? — Our Belgrade office provides a wide range of services. We support our clients in strategic tax planning and attend to them continuously. We also represent clients before tax authorities. Furthermore, we assist in opening companies, optimizing taxation of international activities, mergers and restructuring companies. We analyze changes in legislation and their potential impact on our clients and develop proposals for business optimization methods. In addition to tax consulting and auditing, business consulting is also one of the key components of IB Interbilanz’s services. As long-term partners, we support our clients and provide services beyond the borders of Serbia, from the get-go all the way to implementation. We identify key success factors, define the potential for improvement in order to optimize business achievements and make recommendations for concrete actions. We have adapted our bookkeeping services to the specific requirements of our clients and provide valid up-to-date information necessary for quality management of business activities. Our speciality is harmonizing national financial reports with the group reporting system, in accordance with national accounting standards, IFRS or US GAAP, in order to obtain the

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information required for the consolidated financial statements. We also specialize in reliability and speed in providing quality advice regarding specific issues in the field of financial and tax operations. The high quality of our services is ensured through the specialization and professional qualification of our employees, as well as through our company’s commitment to continuous education and training. Who are your key clients? — IB Interbilanz is focused on foreign clients operating in Serbia and the region, namely on companies from the German-speaking region - Austria, Germany and Switzerland. Of course, we have American, French and companies from other countries in our portfolio. We provide the complete range of our services, from accounting to tax and financial reporting, in English and German, which definitely facilitates our clients’ business operations in Serbia. What does it mean for you to be a part of IBD Group? — As I mentioned earlier, our focus is on clients from the German-speaking area, and their standards are very clear and high. Since we are members of IBD Group, we also have to implement these standards, because they guarantee that our clients will get the best possible service and that they

NOVELTIES

Novelties in regulation are frequent and often quite inconsistent with the practice and without a clear strategy on the part of the legislator

will see us as a reliable partner in financial and administrative matters. IBD Group was established in Austria and has been providing consulting and auditing services since 1991 in Austria and other countries. Currently, we are active in 8 countries - in addition to Austria, there is Serbia, Slovenia, Croatia, Hungary, Slovakia, Ukraine, and the Czech Republic, in a total of 12 locations. What novelties in terms of laws that regulate your segment would you like to convey to companies? — Novelties in regulation are frequent and often quite inconsistent with the practice and without a clear strategy on the part of the legislator. The focus is on the Law on the Prevention of Money Laundering and Financing of Terrorism, the Law on Profit Tax, primarily on changes in tax balance and tax depreciation, as well as on the controversial Decree of the Ministry of Finance about commuting costs for workers. The FIC sent a letter to the Ministry regarding the latter. In terms of financial reporting (IFRS), the changes that have been made in other countries have not yet been incorporated into statutory reporting in our country, primarily in IFRS 15 and IFRS 16. What are your further plans regarding the development of your service portfolio? — Our plans are to continue expanding the client base in Serbia and the region, facilitate our partners in Austria and Germany in terms of doing business in Serbia and to be their partner in financial, auditing, tax and administrative matters. In terms of standard services we provide, we are going to focus more on consulting in relation to the IFRS standards, and providing accounting support in the implementation of the ERP solutions, primarily in the implementation of SAP, CFO external services.

INTERNATIONAL CONSULTING AND CLIENT SERVICE BEYOND EXPECTATIONS

IB Interbilanz Consulting & Audit d.o.o. Beograd is a subsidiary of IBD Group GmbH, Vienna. The IBD Group has its roots in Austria and provides consulting and auditing services since 1991 also in other countries. At the moment we are active in 8 countries - besides Serbia, in Slovenia, Croatia, Hungary, Slovakia, Ukraine and Czech Republic – on totally 12 locations. We are present on the Serbian market more than 15 years and provide services in German and English. Our Belgrade office offers a wide range of services: - Accounting – Outsourcing - Payroll -Outsourcing - Tax advisory & transfer pricing studies - Audit & Assurance (Statutory & IFRS) - Business advisory (business planning, CFO services etc.) - Corporate finance (M&A, due diligence, valuation services etc.) - Translations and courier services

Audit | Tax | Advisory Bulevar Mihaila Pupina 115 E/IV 11070 Novi Beograd T: +381 11 655 70 55 • +381 11 655 70 43 E: office@interbilanz.rs · W: www.interbilanz.rs AUSTRIA 2019

member of IBD

Focus

EC O N O MY

BRIDGE BETWEEN THE TWO AREAS

lthough Austria is a landlocked country, its geographic position brings certain advantages as it is perfectly positioned between the countries of Western Europe and the former Soviet satellite countries to the East. Thus, Austria is able to command centre stage in central Europe and is often seen as the bridge between the two areas. Having only been a state in its current form since 1955, Austria has prospered

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Austriaâ&#x20AC;&#x2122;s small but well-developed economy is highly globalized and resilient, sustained by a skilled workforce, competitive manufacturing, and a large services sector

into a society with a highly developed infrastructure, an affluent standard of living, and a driven and accomplished workforce â&#x20AC;&#x201C; excelling especially in the fields of

GDP IS FORECAST TO GROW BY 1.6% IN BOTH 2019 AND 2020

banking, finance, biotechnology and precision engineering. A resilient economy, a strong manufacturing base, a transparent legal system and an ingrained willingness to embrace global trade and investment make doing business in Austria a worthwhile goal to adopt. More than 1,000 multinational companies coordinate their operations in this region from an Austrian base. These numerous and flexible enterprises are an important element of the Austrian economy.

Austria's economic system is 31st freest in the 2019 with higher scores for government spending, fiscal health, government integrity, and labour freedom, offsetting a steep drop in judicial effectiveness.

LARGE SERVICE AND A SOLID INDUSTRIAL SECTOR Gross Domestic Product of Austria grew 2.7% in 2018 compared to last year. Austria is number 27 in the GDP ranking of 196 countries. The country's growth is driven by private consumption and investments, as well as a positive contribution from net exports. While still above their long-term averages, economic sentiment indicators have fallen over the year, adding further weight to the likelihood that economic growth is set to slow down gradually. GDP is forecast to grow by 1.6% in both 2019 and 2020. Austria's economy features a large service sector (63% of total GDP), a solid industrial sector (25%), and a small, but highly developed agricultural sector (1%). In the field of agriculture, Austria is witnessing a strong trend towards organic farming. With an overall share of 22%, organic farms in Austria occupy a leading position among the EU Member States. In terms of raw materials and energy production, Austria has natural resources of iron ore, non-ferrous metals and important minerals. The constant growth of the industrial sector, however, increasingly requires supplementary imports. This is also true of fuel, energy resources, and the electricity-generating industry. The generation of hydroelectric power is constantly being expanded, which makes Austria the leader in the field of hydroelectric power in the European Union. Austria is world-fa-

mous for its arts and crafts, most notably fine hand-crafted items, costumized jewellery, ceramics, and glassware. Tourism is an essential pillar of the Austrian economy. Austria is a mountainous country with one of the largest natural land reserves in central Europe. On the expenditure side, household consumption is the main component of GDP and accounts for 54%, followed by gross fixed capital formation (22%) and government expenditure (20%).

AUSTRIAN BUSINESS CULTURE PRIDES ITSELF ON THE CONCEPT OF SOZIALPARTNERSCHAFT, OR SOCIAL PARTNERSHIP, WHICH PROMOTES COOPERATION AND DIALOGUE IN MATTERS RELATING TO INDUSTRIAL RELATIONS Austria is a very successful exporting nation with strong links to, not only its largest trading partner Germany, but also to the Middle East and Asia. The country is aware that it must trade internationally if it wants to be able to continue to compete globally and maintain its current high standard of living. Net exports of goods and services adds 3% to the GDP as exports accounts for 53% and imports for 50%.

In 2018, the rise in oil prices kept headline inflation above 2%, while core inflation decreased to 1.9%. In 2019 and 2020, increasing wages and strong domestic demand are expected to put pressure on domestic prices, with headline inflation stabilising at 2%, while core inflation is set to increase to 2.1% in both years.

SPECIFIC BUSINESS CULTURE Although doing business in Austria may seem like an attractive prospect, setting up a business can be a slow and complex process. Ensuring that a business is established by following the appropriate regulations is time consuming here. The economy should also be considered when doing business in Austria. Economic restructuring measures have failed to keep pace with neighbouring Germany with the public debt remaining high. To successfully do business in Austria it is paramount that time is dedicated to understanding the culture of Austrian business society. Great value is placed on academic acumen, punctuality and pre-planning before meetings. It is advisable to work with Austrian subsidiary companies in a spirit of cooperation and co-determination to honour the proud Austrian concept of social partnership or Sozialpartnerschaft which promotes cooperation and dialogue in matters relating to industrial relations. Therefore, all industries, trades and professions in Austria have specific umbrella bodies which work together to promote healthy labour relations. The land of imperial castles and waltz is quite traditional and formal and you would do well to understand how these formalities play out in day-to-day business activities. The country is both traditional and openminded.

The leader

THE GENERATION OF HYDROELECTRIC POWER IS CONSTANTLY BEING EXPANDED, WHICH MAKES AUSTRIA THE LEADER IN THE FIELD OF HYDROELECTRIC POWER IN THE EUROPEAN UNION AUSTRIA 2019

Focus

A D VAN TAGE AUSTRIA

AUSTRIA IN BELGRADE

ADVANTAGE AUSTRIA hosted several Austrian delegations, preparing for the B2B meetings with Serbian companies and providing platforms for new contacts

Austrian President Van der Bellen, Smart Traffic

n the year 2018, ADVANTAGE AUSTRIA Belgrade organized a number of events, such as fairs, B2B-meetings between Serbian and Austrian companies, as well as workshops and seminars on legal and tax changes in cooperation with tax advisors in the Austrian law firms, which already have their subsidiaries or branch offices in Serbia. Branch office of the Austrian Economic Chamber of Commerce ADVANTAGE AUSTRIA has the status of a trade department of the Embassy. With over 100 offices in over 70 countries, ADVANTAGE AUSTRIA

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AIMING TO PRESENT AUSTRIAN PRODUCTS ADVANTAGE AUSTRIA ORGANIZES THE MOST INTERESTING SERBIAN FAIRS GROUP STANDS WITH AUSTRIAN COMPANIES

provides a wide range of intelligence and business development services for both Austrian companies and their international business partners. Around 800 employees and 35 consultants around the world can help locate Austrian suppliers and business partners. It organizes about 1.200 events every year to bring business contacts together. Other services provided by ADVANTAGE AUSTRIA offices range from introductions to Austrian companies looking for importers, distributors or agents to providing in-depth information about Austria as a business location and assistance in entering the Austrian market.

EDUfair Education Fair 2018

President of the Eurochambres Christoph Leitl

EDUFAIR At the Education Fair EDUfair, taking place from 9th to 10th March 2018 in Belgrade, Austria was represented for the fourth time with its group stand, at which five Austrian universities presented educational opportunities in Austria to schoolchildren and students from Serbia. EDUfair has been helping young people from Serbia and the region in their choice of education and future careers for 15 years. Addition information about the study programs and scholarships of the Austrian universities, such as University of Applied.

FAIR IN BELGRADE Aiming to present Austrian products ADVANTAGE AUSTRIA organizes the most

Construction Fair in Belgrade, Austrian stand, April 2018

ON THE HIGHLIGHTS OF THE YEAR 2018 WAS THE BUSINESS FORUM SMART TRAFFIC IN SERBIA IN COOPERATION WITH SERBIAN GOVERNMENT, GATHERING 23 AUSTRIAN COMPANIES AND SERBIAN PUBLIC COMPANIES AT THE PALACE OF SERBIA IN BELGRADE

interesting Serbian fairs group stands with Austrian companies such as the Construction Fair or the technical fair "Tehnika" in Belgrade in April and May 2018, the Agricultural Fair in Novi Sad in May 2018 or the Fair Energetica & Ecofair in October 2018. ADVANTAGE AUSTRIA also hosted a few Austrian delegations, preparing for the B2B meetings with Serbian companies and providing platforms for new contacts, such as delegation of Austrian companies in the field of energy and heat technology or delegation of food producers from Austria who visited Serbia to learn more about the current situation on the market and to meet with position partners and distributors. On the other side, the Austrian Federal

WIMI Metall, 19th November 2018ÂŠBugstaller

AUSTRIA 2019

Focus

Economic Chamber almost every month provides online platforms as well as B2B-meetings in the head quarter in Vienna, such as the conferences Urban future, Future of Building, Marketplace Austria or Electrify Austria.

SMART TRAFFIC IN SERBIA On the highlights of the year 2018 was the business forum Smart Traffic in Serbia in cooperation with Serbian government, gathering 23 Austrian companies and Serbian public companies at the Palace of Serbia in Belgrade. The Austrian dele-

Delegation Thermal Technique, April 2018

THE AUSTRIAN FEDERAL ECONOMIC CHAMBER ALMOST EVERY MONTH PROVIDES ONLINE PLATFORMS AS WELL AS B2B-MEETINGS IN THE HEAD QUARTER IN VIENNA Agriculture Fair Austrian stand 16th May 201

gation was led by Austrian President Alexander Van der Bellen and Vice President of the Austrian Federal Economic Chamber. Richard Schenz, who were also able to meet President Aleksandar Vučić and the President of the Serbian Chamber of Commerce and Industry, Marko Čadež, as well as other high - ranking politicians in Serbia.

VISIT OF PRESIDENT SERBIE

President Aleksandar Vučić and Leitl Medaille

B2B delegations Thermal Engineering 2018

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Finally, on the occasion of the visit of President Vučić to Austria, on February 1, 2018, by invitation of Austrian President Van der Bellen, President Vučić and his delegation were also guests of the President of the Austrian Federal Chamber of Commerce Christoph Leitl. On this occasion, Chamber President Christoph Leitl awarded the Great Decoration to President Aleksander Vučić for his merits and contribution to the partnership of Serbia with Austria and the European Union. President Vucic also met with Chancellor Sebastian Kurz and the President of Austria Van der Bellen, as well as with the President of the National Council, Austrian Parliament Wolfgang Sobotka.

CORPORATE

TAPA Standard Guarantees MARIJA DIMITRIJEVIĆ Quality Manager at Gebrüder Weiss Serbia

ue to the desire for better security in its warehouse and premises, the logistics company Gebrüder Weiss Serbia decided to become a member of the TAPA organization, hence, in 2012, the company instigated and successfully implemented a series of technical and organizational measures needed to obtain the TAPA certification. We talked in detail about this standard with Marija Dimitrijević, Quality Manager at Gebrüder Weiss Serbia. The Transported Asset Protection Association (TAPA) is not that known to people who are not engaged in logistics and transport. Could you tell us more about this organization? — TAPA provides companies with the ability to combat crime in transport using a widespread network. The aim is to put together a forum of responsible managers and share professional information for the common benefit. TAPA collects information on incidents and security crimes from global manufacturers, logistics providers, carriers, law enforcement agencies and other interest groups, processes them and transmits the processed information to their members. It has also developed a strategy for reducing losses in international supply chains and has set standards that help reduce the risk of theft or fraud. TAPA has been active in Europe since May 1999. Gebrüder Weiss GmbH has been an associate member of the TAPA organization since January 2005, and a full-fledged member since 2007.

SAFETY OF GOODS Independence, Sustainability, Commitment and Service Excellence are the key values of our company What benefits do customers get from using services of Gebrüder Weiss? How do you stand out from the competition? — By identifying the growing losses and increased number of thefts in warehouses and trucks, we can guarantee clients a high level of safety of their goods. These protection criteria are regularly reviewed by security experts. Our customers can be sure that their goods are well-protected and that Gebrüder Weiss offers an excellent service in terms of safe delivery of goods to a pre-determined destination. Independence, sustainability, commitment and quality of service are the key values of our company.

EXCELLENT SERVICE

Our customers can be sure that their goods are wellprotected and that Gebrüder Weiss offers an excellent service in terms of safe delivery of goods to a predetermined destination

These principles not only support our most important values, but they also include one of our main goals which is customer satisfaction. From the perspective of a logistics company, the customer is satisfied when their goods are in safe hands.

This is also the reason why we are investing all our efforts into providing our clients with a sense of security. TAPA also helps to create awareness of security issues in a company. Employees are trained to deal with strangers and not only in the facility but also in terms of controlling access to the offices. All Gebrüder Weiss sites that are TAPA certified have video surveillance cameras (CCTV), special alarm detectors and lights that ensure face recognition in the dark, precise entry supervision, documented security processes and special training for drivers based on relevant security topics. The company guarantees that no unidentified persons will have access to facilities thus reducing the risk of theft. Thanks to these measures, Gebrüder Weiss stands out from the competition in the market. Beside TAPA, what other certificates does GW have? — In addition to the TAPA certificate, we have the ISO 9001 quality standard and we have been assigned the third level OPS authorization for simplified customs procedures/safety and security (AEO F). The AEO F certificate is issued to a company that meets the criteria for complying with customs regulations, appropriate record keeping, financial solvency and compliance with the relevant safety and security standards. Customers who use our company for transport will get their goods faster due to simplified customs procedures in import and export and faster and easier transit of goods at border crossings.

AUSTRIA 2019

Focus

CORPORATE

We are Committed to

CONSTANTLY INVESTING ZLATOMIR MILOŠEV Financial Director of Wienerberger doo Kanjiža

Plans for new investments are mainly related to automation and digitization in production in line with industry 4.0. requirements

ienerberger has been operating in Serbia for a number of years, and this year, the company expects to achieve even better results. The company currently employs 300 people. We are talking to Wienerberger's Financial Director, Zlatomir Milošev about future plans and investments. What results did Wienerberger Serbia achieve in 2018, and what were the results at the Group level? What are your expectations for this year? On Serbian market, results of 2018 were better compared to year before, but, considering the situation in Kosovo and the higher gas prices, the overall business result was below 2017. The expectations for this year are definitely for us to further development of results through implementing the Group's strategy. At the Group level, Wienerberger delivered an excellent performance in 2018. We generated a 6% increase in revenues to a new record high of EUR 3.3 billion. EBITDA rose significantly by 15% year on year to EUR 469.3 million. This strong growth is

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attributed to the persistent and sustainable implementation of our corporate strategy: first of all, through the improvement of our market position and organic growth generated by innovative products and services. How much have you invested so far in Serbia? Are you planning new investments in Serbia? — Wienerberger is committed to constantly investing in new equipment, which amounts to about one million euros annually. Plans for new investments are mainly related to automation and digitization in production in line with industry 4.0. requirements. How many employees do you have Ser-

STRATEGY

The expectations for this year are definitely for us to continue accomplishing results through implementing the Group's strategy

bia and are you planning on hiring more workers? — We have just over 300 workers in Serbia. The age structure of our staff is such that, in the future, we are going to work on employing more young people who will be able to support the strategic initiatives concerning automation and digitization, both in production and in overall operations. What kind of relations do you have with your suppliers? Could you tell us more about the Wienerberger CBME Supplier Code of Conduct? — Our suppliers are our partners and we have been cooperating for many years with the majority of them. Given that the pressure to reduce costs is increasing, we are committed to market research and to the search for new supply sources. Wienerberger CBME is committed to high standards of integrity and sustainability and fosters a policy of zero tolerance when it comes to unethical business behaviours, such as bribery and corruption. We expect all of our suppliers to comply with similar standards and to keep their business in line with business ethics.

CORPORATE

Always a Step Ahead

OF THE COMPETITION IVAN VUJISIĆ

Sales and Marketing Director of Wienerberger doo Kanjiža

It is our obligation to always have something new for the market, which is what we have been doing every year. Also, we have a lot of other plans

ood business results go together with product innovation. Sales and Marketing Director at Wienerberger, Ivan Vujisić talks about the company's product range and its advantages. Which novelties did you bring to the Serbian building material market? Are you planning on developing new products? — Tondach clay tiles, Continental Plus NATURA, are the winner of the Nova Vizura Award that we were given at the 2018 SEEBBE Construction Fair in Belgrade. The tile has higher resistance and durability associated with natural clay, which, thanks to the application of new technologies, will last for decades. We also have the top quality ancillary equipment and technical support, with the aim of making sure that an entire roof lasts as long as the Tondach tiles. Building in line with the DryFix-free mortar system using our Profi Porotherm clay blocks is something that is quite popular in the market, as are our AKU 25 sound solutions. The best validation of our achievements is the fact that our competition is trying to copy our products, sometimes even their names, but this is the destiny that we, as the market leader, gladly accept. It is our obligation to always have something new for the market, which is what we have been doing every year. Also, we have a lot of other plans.

How much energy can be saved through the use of your building materials? Which Wienerberger's product is the most popular? — In cooperation with independent experts for passive low-energy houses, we have compared numerous concepts of house construction with different building technique systems. It is important to say is that if you use our recommended products in building walls, you can achieve all the energy requirements related to low-energy houses (LEH) without having additional insulation. Our most popular products are definitely Porotherm 25 IZO Profi and Porotherm 38 Profi blocks which meet the current energy standard and do not require additional thermal insulation. Of course, we have products that are of exceptionally high standards made for our e4 concept like Porotherm 50 IZO Profi clay block which is unrivalled. Can you tell us more about your smart clay solutions?

SOMETHING NEW

It is our obligation to always have something new for the market, which is what we have been doing every year

— Special construction solutions using the Porotherm system will ensure a healthy climate, excellent sound protection, and safety, as well as maintain the permanent value of your investment. In addition to thermal insulation, I would also like to mention a sound solution that is our Porotherm 25 AKU block. All you need to do is line it with bricks and you will be protected against noise in line with the required standards. All our other certified wall systems also provide solutions to the most demanding situations. You are getting ready for the 2020 Brick Award. Could you elaborate on this award that you give out and competition terms? — The Wienerberger Brick Award, which we have been giving out since 2004, is an architectural award that is given every two years for outstanding examples of modern and innovative architectural solutions where bricks are used. In 2020, Wienerberger will present the new cycle of competitions for the ninth consecutive time. Architects, critics and architectural journalists can apply with their projects online. In 2018, nearly 600 projects from more than 50 countries were submitted for award consideration. Ceramic products must play a significant role in the project, ranging from clay blocks to facade bricks, tiles or clay pavers. The use of Wienerberger products is not a mandatory requirement for participation.

AUSTRIA 2019

Focus

CORPORATE

The Highest

STANDARD OF SERVICE ZORAN TADIĆ

General Manager, Neofyton

A decade-long partnership between Austrian and Serbian companies is a success

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AUSTRIA 2019

eofyton is a dynamic innovation-oriented company founded in 1992 in Novi Sad. The company's success is based on the representation of leading global companies in the plastics and rubber processing industry - Engel, Piovan, Eurochiller, MB Conveyors, Trio and Sipa - in Serbia, Croatia, Bosnia and Herzegovina, Macedonia, Montenegro, Slovenia, and from 2016, Africa. In 2013, the company opened a representative office in Zagreb. During 2018, Neofyton also participated in international plastics processing fairs in Germany and Nigeria. The company’s goal to deliver the highest standard of service and top quality equipment, all from the same source. The integration of the process-sales and consulting, delivery and commissioning, service and training, as well as the partnership with our clients – are the backbone of our business and development.

ENGEL AUSTRIA – NEOFYTON'S PARTNER Engel Company as one of the leading manufacturers of plastic injection machines and automation provides a complete system of solutions and technology based on innovations and energy efficiency. By designing, implementing, monitoring, automating and maintaining more than 400 plastic injection machines, Neofyton is positioned at the very top of the best vendors of plastics production machines. Professional

PROMOTION

Neofyton partners with Advantage Austria and the Chamber of Commerce of Serbia promote development of dual education model in Serbia

and trained team has proved itself worthy of the clients' trust which provides clients with additional assurance assurance when doing business with Neofyton. Neofyton partners with Advantage Austria and the Chamber of Commerce of Serbia promote development of dual education model in Serbia. Top management of Neofyton has decided to pass on the secret of success to younger generations by involving them in the dual education process in Serbia. Neofyton's General Manager, Zoran Tadić, explains that the plastics processing industry is often treated as invisible, although the companies in this sector employ about 3,000 people and pay 30 million euro annually in taxes. "Dual education is a crucial idea for the development of the entire industry in Serbia, and our sector as well. Just like other sectors of the economy, the plastic processing industry is challenged by a lack of skilled labour, which we pointed out a few years ago, "says General Manger of Neofyton, Zoran Tadić. Mr. Tadic sees education as an opportunity to help young people choose appropriate profession. "Although the vast majority of young people in Serbia and their parents want to complete university education, it is a fact that 85% of the workforce are high school graduates. Therefore they are the driving force behind the development of the economy and the state," Tadić explains.

He adds that, together with the Austrian Chamber of Commerce, Neofyton realized what the real needs of the plastics industry are and thus has been trying to adapt its through generating more interest among young people for new educational profiles, training them fast and ensuring a good quality retraining for senior workers.

DONATION

Together with Austria's Engel and Italy's Piovan, Neofyton donated 100.000 euro to the Polymers Laboratory at the Faculty of Technical Sciences in Novi Sad In partnership with Austria's Engel and Italy's Piovan, and with the support of Advantage Austria, Neofyton donated the Polymers Laboratory of the Department of Production Engineering at the Faculty of Technical Sciences in Novi Sad last year. The value of this donation is around 100,000 euro, and the donation is made under the auspices of Neofyton's dual education project. Neofyton's General Manager, Zoran Tadić explains that the idea about the laboratory came about a few years ago when

he was contemplating how his company could give back to the state after the state and society had invested in their employees through education. "Expectations are that, every year, the afore said Department will produce between 10 to 15 graduate engineers who will be trained to assume duties immediately in the plastics industry. The plan is for this cooperation to be extended every three years by replacing existing equipment with new one. The Faculty's Department of Mechanical Engineering is also cooperating with the Department of Polymers from the Faculty of Technology in Novi Sad," says Neofyton's General Manager, Zoran Tadić. He believes all of that will boost Vojvodina and Serbia's competitiveness and motivate to both domestic and foreign companies to invest further in Serbia by raising our country's competitiveness. BRIDGE BETWEEN SCIENCE AND BUSINESS In 2018, Nefyton organized its first Injection Technology Forum - ITF, where international experts in the field of plastics presented the best practice cases and new business opportunities. In addition, there was a demonstration of machines and networking. Neofyton claims their company is the right place for developing skills and knowledge related to the latest technologies in the plastic processing industry.

Founder of Neofiton Stojan Tadic, Marko Tadic, Zoran Tadić, Rade Doroslovački from Faculty of Technical Sciences in Novi Sad, Marlen Burgštaler from Advantage Austria WKO, Zoran Milosević, Provincial Secretary for Higher Education and Scientific Research Activity, Branka Pilic from Faculty of Technology and Dragisa Vilotić from Faculty of Technical Sciences in Novi Sad.

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INTERV IE W

AUSTRIA AN INNOVATIVE AND CREATIVE NATION JOHANNES IRSCHIK

Director Austrian cultural forum

I am very pleased that many Austrian artists continue to come back to Serbia after their first visit and many joint projects are established and carried out over a longer period of time ince the Austrian Cultural Forum was founded in 2001, parallel to the improvement of our bilateral relations, the cooperation with Austria and Serbian improved and expanded. Director Austrian cultural forum Johannes Irschik talks about further plans and projects.

and venues. Our travelling documentary exhibitions, such as the one about Gustav Klimt, or the one about significant women in the history of Austria or about the most renowned Austrian urbanistic landmarks have reached thousands of people and have received excellent media coverage. For this year we have a new travelling exhibition ready. It is a documentary exhi-

How much the work of the Austrian cultural forum was affected by improvement of our overall bilateral realtions?  After nearly 20 years of continuous work, we have managed to position ourselves on the mental map of cultural stakeholders in Serbia and we are happy that the number of projects that we carry out or take part in continues to rise every year. We are also pleased that we are not only present in the capital of Serbia, but in many other Serbian cities as well.

MOST POPULAR PROJECTS ARE THOSE DESIGNED IN SUCH A MANNER THAT THEY ARE NOT TECHNICALLY DEMANDING BUT STILL RICH IN CONTENT

What type of events that you organize are the most popular?  Our most popular projects are those designed in such a manner that they are not technically demanding but still rich in content and that can easily travel through Serbia and be presented in various cities

bition about the Pozarevac Peace Treaty signed a bit more than 300 years ago which will have its premiere in the City of Pozarevac on 25 April. Austrian cinema has been very successful over the past years and Austrian feature films, short films and documentaries won numerous international awards. The success of Aus-

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trian films presented at numerous film festivals throughout Serbia proves that we have managed to respond to the expectations of the audience in Serbia. Every year we prepare and interesting selection of Austrian films, translate it into Serbian and let it travel to several Serbian cities, sometimes combined with other programs. This year our focus is on recent production of Austrian short films that received both Austrian and international praise. The selection is called “Österreichische Kurzfilmschau” and will start its Serbian tour in Belgrade in the framework of the Expanded Media Triennial. How much it takes to put together a plan of work of the Austrian cultural forum in Serbia. When did you start to plan the program for 2019, how the decisions are made, and how much preparation the logistic may take?  Our annual planning starts in the autumn of the preceding year, when we draft a program overview for the coming year. Detailed programs are then drafted three times a year, several months before the actual event happens. It is therefore important for us to discuss project proposals with Serbian or Austrian Institutions

and individuals well in advance, preferably at least half a year before the project is scheduled to be carried out. The decision whether we can accept a project proposal or not is based on a variety of principles: the quality and artistic value of the proposal, whether we think that the proposal is appealing to Serbian audiences and whether we have sufficient budget at our disposal. Artists and scientists that we support must be Austrian citizens or residents and professionals. The duration of the preparation and logistics of events depend on the scale of the project and the division of labor between us and our partners. Which events would you like to single out in this year’s program?  As already mentioned, this year we have a new travelling exhibition ready as well as a travelling selection of Austrian short movies. Both projects will be presented in a dozen of Serbian cities. Details are always announced on our Facebook Page. Last year we have started working on joint projects with the European Capital of Culture Novi Sad 2021 and we will continue this cooperation also this year. Also expect seeing lots of Austrian musicians at various festivals across the country, ranging from classical music, to electronic music to Reggae. The Austrian Cultural Forum currently presides the EUNIC Srbija Cluster (a network of European Union National Institutes for Culture and Embassies) in which context we carry out several exciting projects, such as a series of debates entitled EUNIC Talks which focus on cultural diplomacy themes, organized in partnership with the University of Arts Belgrade, the Euro-

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pean Day of Languages or the EUNIC AiR project – an initiative supported with the funds by EUNIC Global. EUNIC AiR stand for Artists in Residence and brings artists and other professionals from our respective countries to spend some creative time in Serbia in cooperation with our local partners in different fields (visual arts, creative industries, literature…). How do you choose which Austrian cultural content is going to be exhibited or promoted in Serbia and the region?

I HAVE NOW BEEN IN SERBIA FOR OVER THREE YEARS AND HAVE HAD THE PLEASURE TO WELCOME SEVERAL HUNDRED OF AUSTRIAN ARTISTS AND SCIENTISTS  One of our primary objectives is to present Austria as an innovative and creative nation that is historically diverse and rich in culture and scientific know-how. Therefore, our focus is on the presentation of contemporary Austrian culture as well as exchange between Austrian and Serbian artists and scientists. We benefit from a large network of Serbian partner institutions that approach us with project proposals and together we then decide whether the proposal fits our objectives and budget and is in line with our regulations. At the same time we receive

many interesting proposals from Austrian artists and we try to match them with Serbian institutions or partners in order to help them implementing their projects. According to your knowledge, what are the impressions of Austrian artists who are performing or exhibiting in Serbia?  I have now been in Serbia for over three years and have had the pleasure to welcome several hundred of Austrian artists and scientists. I am very pleased to say that the feedback I received from them was very positive. They not only appreciate the hospitality and openness of their hosts but also the professionalism and enthusiasm of Serbian artists and other cultural stakeholders. I am very pleased that many Austrian artists continue to come back to Serbia after their first visit and many joint projects are established and carried out over a longer period of time. What are the most popular books in the Austrian libraries in Belgrade and Novi Sad?  The two Austrian libraries in Serbia, based at the University Library in Belgrade and the Library of the Matica Srpska in Novi Sad, offer a wide range of books by Austrian writers as well as books about Austrian history and culture to its visitors. In Belgrade works by Elfriede Jelinek, Franz Kafka and Arthur Schnitzler are in high demand, while in Novi Sad Stefan Zweig, Thomas Bernhard, Peter Handke and Felix Mitterer are among the most popular authors. I highly recommend your readers to visit the two Austrian libraries in Serbia!

OUR FOCUS IS ON THE PRESENTATION OF CONTEMPORARY AUSTRIAN CULTURE AS WELL AS EXCHANGE BETWEEN AUSTRIAN AND SERBIAN ARTISTS AND SCIENTISTS AUSTRIA 2019

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C ULTURE

A CUP OF COFFEE IS YOUR ENTRANCE TICKET afés are an e veryday element of city living and in Vienna and they are at the heart of life in the city. At the turn of the 20th century, the Viennese Coffee House used to be the intellectual hub of the city, and to this day, people enjoy the unhurried atmosphere to meet friends, work or hold business meetings. UNESCO declared the traditional Viennese coffee house an intangible cultural

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UNESCO DECLARED THE TRADITIONAL VIENNESE COFFEE HOUSE AN INTANGIBLE CULTURAL HERITAGE IN 2011

Around the year 1900, a visit to a Viennese café was a spectacular experience, newspapers were displayed on custom-made stands, waiters wore tailcoats and ceilings were decorated with elaborate chandeliers heritage in 2011. Today’s coffeehouse culture is booming as more and more people are looking for a place to rejuvenate. Looking at how cafés were an essential part of Viennese life raises interesting questions about how we live and socialize in the modern city today. In Vienna, there were cafés for everyone: artists, intellectuals, the respectable and the not-so-respectable bourgeoisie.

People came to cafés to chat, eat, read, work, play, gamble and discuss. A café is a place where the rigid social hierarchies could loosen up a little bit. The fluid character of this social space stimulated the minds whose intellectual and creative achievements made such a substantial contribution to the development of European modernity at the time. More than 300 years later, the Kaffeehaus is still an institution. The Viennese have developed a whole culture around coffee drinking and elevated it to an all-encompassing attitude of life. As you step inside a Kaffeehaus, you immediately feel at home; the setting is spacious yet intimate, there is plush seating around marble tables, the scrape of traditional Thonet wooden chairs on parquet floors and mirrors reflecting the mood. Take your seat in an era far removed from the modern hustle and bustle. Your entrance ticket is a cup of coffee, just as it has been for generations. Once you have ordered coffee, be it a Kleiner Schwarzer, Kapuziner, Einspänner or Melange – and these are just some of the specialities – sit back and relax. Life happens here and everyone plays their part. The Viennese Kaffeehaus is an extended living room. It is ideal for people who need company to be alone. It is both a stage and a private space. Around the year 1900, a group of authors went down in history as coffee house literati: they not only socialized in a Kaffeehaus but used it as their workplace. Peter Altenberg even wrote the address of his local Kaffeehaus on his business card and had his mail delivered there. Before writers claimed the Kaffeehaus as their

own, composers had also discovered its charms - Johann Strauß, both father and son, introduced new works here, and even Mozart and Beethoven performed in a Kaffeehaus.

INDULGENCE ON THE MENU A particular joy of the Viennese Kaffeehaus lies in its service: the opening times alone, from early morning until midnight, are impressive. And, of course, there is the wait staff. Male waiters are addressed as “Herr Ober“ and reward a prompt order with some banter and Viennese charm. We should also mention the comforta-

THE VIENNESE HAVE DEVELOPED A WHOLE CULTURE AROUND COFFEE DRINKING AND ELEVATED IT TO AN ALLENCOMPASSING ATTITUDE OF LIFE ble seating and of course, the light snacks, sweet or savoury, which make a prolonged stay in a Kaffeehaus very pleasant and satisfying. If you thought Vienna was all about the Schnitzel, think again. Its culinary scene is varied and creative, with a long history that is partly rooted in the numerous crown lands of the former Habsburg Empire. After all, Vienna is the only city in the world that has an entire cuisine named after it.

Cakes and pastries are a special attraction of every Kaffeehaus. Take the Sacher Torte for example, which was even a subject in a legal battle. Imagine a chocolate cake so decadent that it incites a 25-year long legal dispute. It was Vienna’s famous Sachertorte that caused a lengthy dispute between two imperial confectioners. Don’t trust any old confectioner who wants you to believe that his Sachertorte is the real deal. The cake might taste amazing and the chocolate glaze could have the signature silky sheen, but family Sacher keeps its secret recipe under lock and key. It’s no surprise that the Sachers became so protective of their cake. One Viennese pastry maker, in particular, posed a serious threat to their dessert monopoly.

LOOKING FOR SOMETHING DIFFERENT? In Vienna, there is always room for fresh ideas in amongst all of the dyedin-the-wool coffee house tradition. Alternative coffee houses that are a far cry from the typical marble tables, Thonet chairs and liveried waiters are growing like mushrooms in the city. The majority of these coffee shops celebrate the barista’s art with directly sourced, fair-trade coffees, many of which are roasted according to the owners’ individual specifications. Espressomobil follows a completely different business model having reduced the coffee house format to a three-wheeled Italian moped. These mobile coffee shops park up at some of the city’s busiest squares, switch on the coffee machines and serve up premium coffee to take away.

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DID YOU KNOW

VIENNESE WALTZ

nce considered wicked, today it is the very definition of all things Viennese and UNESCO cultural heritage: the Viennese waltz. The people of Vienna love it, the music - made world famous 150 years ago by waltz king Johann Strauss - as well as as the dance of the same name in three-four time, which is a fixed item at every ball.

TR ADI T I ON

LAND OF MUSIC

The Austrian Empire boasted prestigious and prolific music production, while concerts and dancing became important segments of the Viennese life ften heralded as ‘the capital of classical music,’ Vienna is a honeypot for those who consider themselves connoisseurs of Mozart's concertos. This city is a wonderful place for enthusiasts who will delight in a huge number of concerts, as well as those who are clueless about the genre but who want to open their mind to opera and discover the joys of immersing yourself in a dramatic symphony. More famous composers have lived here than in any other city. In Vienna, music is literally in the air - waltzes and operettas feel at home here, and so do made in Vienna musicals which have won over international audiences. Although many of the most reputable names that Vienna is often associated with did not originate from Vienna, such as Mozart and Beethoven, the city

did give birth to many significant composers, including Johann Strauss I and Franz Schubert. The city’s concert halls and stages offer the whole range of sounds; from classical

IN VIENNA, MUSIC IS LITERALLY IN THE AIR - WALTZES AND OPERETTAS FEEL AT HOME HERE, AND SO DO MADE IN VIENNA MUSICALS WHICH HAVE WON OVER INTERNATIONAL AUDIENCES

to progressive, with back-to-back festivals throughout the year. Opera fans will meet international stars here and jazz lovers will find a pulsating jazz scene. Pop and rock concerts provide unforgettable live music experiences. Vienna’s love affair with art and music is passionate and long enduring. Classical music and Vienna are so synonymous today due to the city being an art and music hub throughout the 19th century. During this period, a steady stream of composers, with many famous names included, flocked to the centre of Europe to establish themselves on the Viennese musical scene. This period in musical history is often referred to as the ‘Viennese Classical Period’ due to the ubiquity of classical music that flourished in the city. The Austrian Empire boasted prestigious and prolific music production, while

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concerts and dancing became important segments of the Viennese life. In the 19th century, the music industry experienced a boom in Vienna, with instrument makers, opera houses and sheet music publishing companies blossoming. Mozart was one of Vienna’s most influential residents during the classical era. Born in Salzburg in 1756, this prodigy spent a large proportion of his life in Vienna and composed many of his most coveted works in the city. He first visited Vienna in 1762 when he was invited to perform at the Schonbrunn Palace for the Habsburg family. While in Vienna, Mozart resided at numerous locations, a few of which are open to the public today. He died and was buried in the city’s cemetery. Aside from Mozart, the list of composers who contributed to Vienna's great reputation as a city of music is long and impressive; Strauss, Beethoven, Haydn and Berg all spent time in Austria’s capital. Stadtpark, one of the city’s municipal parks, contains statues and monuments dedicated to Schubert and Strauss, as well as other historical Viennese heroes. Today, the legacy is maintained through a lot of concerts that take place at Vienna’s fine music venues, including the State Opera House, Volksoper and the Wiener Konzerthaus. If you want to catch the best acts, you should definitely buy a ticket for the Summer Night Concert, which takes place annually, at the end of May, on the grounds of Schonbrunn. It’s a fantastic evening featuring leading music ensembles from around Austria performing famous pieces. With an average audience of almost 100,000 people, it is one of the most popular outdoor classical music events in Europe.

CLASSICAL MUSIC AND VIENNA ARE SO SYNONYMOUS TODAY DUE TO THE CITY BEING AN ART AND MUSIC HUB THROUGHOUT THE 19TH CENTURY When in Vienna, by all means, go and see the Vienna Boy's Choir that performs as part of the Vienna Hofmusikkapelle at the Holy Mass in the Hofburg Chapel on Sundays (September to June) and in the MuTh, which is the Choir's new concert hall in the Augarten, opened in 2012. The name MuTh is an abbreviation of "Music

and Theatre" and its stage is home to daring music and theatre productions. It has a superb view, it can take an audience of up to 400 people and it has almost the same performing surface as the Vienna State Opera. MuTh is located right next to the Augartenpalais, where the children that make Vienna Boy's Choir learn, live and sing. The new music centre provides a powerful cultural stimulus in the Augarten. MuTh connects music and theatre, tradition and experiment, great artists and the next generation. The Choir has close to 100 members, all boys who are between the ages of 10 and 14 years, and it comprises four concert choirs. They have close to 300 concerts each year and perform in front of almost half a million spectators around the world. The beginnings of the Choir can be traced to 1498 when Emperor Maximilian I founded the Viennese Court Music Orchestra, of which the Boys' Choir was a part.

Vienna Boys' Choir

THE CHOIR HAS CLOSE TO 100 MEMBERS, ALL BOYS WHO ARE BETWEEN THE AGES OF 10 AND 14 YEARS, AND IT COMPRISES FOUR CONCERT CHOIRS. BEGINNINGS OF THE CHOIR CAN BE TRACED TO 1498 38

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TO URI S M

GOOD THINGS COME IN THREES A vibrant cast of culture, cuisine, and cool in Austrian cities 40

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hoever coined the phrase “Good things come in threes” likely didn’t even appreciate the truth this rings when applied to a round trip through Austria. While long hailed as a premiere destination for its stunning natural settings, which offer a year-round backdrop for outdoor recreation – world-class skiing in the winter, and a host of hiking and lakeside pleasures in the summer – Austria’s enchanting cities are also worth a starring role in this alpine country’s blockbuster visitor offerings. Salzburg,

nicknamed ‘Stage of the World’, with its baroque beauty and musical score which seems to thread through much of its history, delights guests with some 4,500 cultural events annually. Graz, Austria’s second largest city, surprises with its foodie flair, laid-back attitude, and eye-catching architecture making many a self-guided sightseeing tour deviate off script to discover a hidden gem or two. And, combining a young urban feel with a cool alpine vibe, Innsbruck truly lives up to its billing as ‘Jewel of the Alps’ in its enviable location hugged by mountains that beckon exploration and set the scene for this Tirolean capital city.

SALZBURG Salzburg has long been a favourite location of the cinematic world - with of course The Sound of Music its most notable production – and one stroll around this walkable city shows any visitor why. Attractively situated on the banks of the Salzach River, with its Old Town streets and alleyways watched over by the Hohensalzburg Fortress, the largest, fully preserved medie-

val castle in Europe situated on a hill high above the city, it’s no surprise that Salzburg is well-deserving of its nod by UNESCO World Heritage. In summer, the

GRAZ SURPRISES WITH ITS FOODIE FLAIR, LAIDBACK ATTITUDE, AND EYECATCHING ARCHITECTURE MAKING MANY A SELFGUIDED SIGHTSEEING TOUR DEVIATE OFF SCRIPT TO DISCOVER A HIDDEN GEM OR TWO soundtrack to this city rings everywhere – from Mozart’s birth house at No. 9 along one of Salzburg’s most famous pedestrian streets, the Getreidegasse, to the many cultural events that take place during

the summer months. Among the most well-known is the Salzburg Festival, celebrating music and drama, and this year in its 99th installment when the curtain rises on 20 July, 2019. It would be amiss not to also sing the praises of this ‘green’ city with plenty of parks and the natural oasis of local mountains, pastures and forests that surround Salzburg. Whether simply out for a fresh air ramble, a leisurely cycle, or for those with the endurance for a marathon, Salzburg offers plenty of recreational diversion as well. One of the best tips to make the most of your stay is the cost-saving Salzburg Card which offers free admission to a host of city attractions, as well as complimentary use of public transportation and a variety of other discounts.

GRAZ There’s nothing better than being unexpectedly delighted and thoroughly captivated on any travel itinerary. In fact, maybe even left wondering why you hadn’t known of this gem before. In entertainment, it’s sometimes referred to as a ‘sleeper hit’. The southerly Austrian

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city of Graz with its charming laid-back attitude firmly knows that dining al fresco goes hand-in-hand with its sunny Mediterranean-influenced climate; that architecture is best contemplated through the striking coming together of historical heritage and avant-garde new designs; and that culture transcends age with its calendar of events often held at out-of-theordinary locations. Much on the summertime programme also highlights Graz’s well-respected culinary scene - if food is a way to everyone’s heart then it’s hard not to fall in love with this Styrian capital city. From restaurants helmed by internationally-recognised chefs, to local haunts, to enticing sidewalk cafes, to festivals celebrating all things gastronomic, this UNESCO-recognised destination, with its landmark Clock Tower overlooking the city, knows the recipe to the good-life and is happy to take all the time it needs to give visitors a taste.

INNSBRUCK The kind of mountains you well imagine in Austria ring the cool and

chic city of Innsbruck which sits at the heart of the Tirol. As the host city of two Olympic Winter Games, this former imperial capital, once a favourite of Emperor Maximilian I, can definitely be lauded for giving summer the royal treatment as

THE KIND OF MOUNTAINS YOU WELL IMAGINE IN AUSTRIA RING THE COOL AND CHIC CITY OF INNSBRUCK WHICH SITS AT THE HEART OF THE TIROL well. In fact, you couldn’t write a better summertime script if you tried – in the morning, explore this unique and appealing city influenced by not only by nature and a strong tradition, but also by its urban draws and sporting appeal

which includes leisurely recreation as well as many organised events from trail running to mountain biking to urban obstacle courses (cool!) Then, in the afternoon, experience the futuristic vision of the late architect Zaha Hadid on the Hungerburg Funicular which transports visitors from the city center to the Nordkette mountain range in just minutes. From here, easily connect to the mountain cable car system taking guests to its highest point of 2300m from where the 360-degree panoramic views showcase this stunning region dotted with holiday villages. Once back down on the ground, though perhaps with your head still a bit in the clouds from the beauty of all of it, end the day in atmospheric Innsbruck doing some shopping or taking a coffee break along the broad pedestrian ways of Maria Theresien Street, and don’t miss a visit to Innsbruck’s most famous sight – the Golden Roof, tucked away in the Old Town and a reminder of Innsbruck’s rich imperial history. Three amazing cities - all worth a viewing this summer .

Cinematic world

SALZBURG HAS LONG BEEN A FAVOURITE LOCATION OF THE CINEMATIC WORLD - WITH OF COURSE THE SOUND OF MUSIC ITS MOST NOTABLE PRODUCTION – AND ONE STROLL AROUND THIS WALKABLE CITY SHOWS ANY VISITOR WHY 42

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