Diplomacy&Commerce 48

10YEARS OF CROATIAN MEMBERSHIP IN THE EUROPEAN UNION

INFLATION SLOWING DOWN, GDP INCREASING

ELES CROSSED THE BOUNDARIES OF THE KNOWN AND TOOK RESPONSIBILITY AT A CRUCIAL TIME

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THE YEAR OF LIVING DANGEROUSLY

ROBERT ČOBAN Director

In January 1990, I saw the movie “The Year of Living Dangerously” (1982), where Mel Gibson was playing an Australian journalist caught in the whirlwind of civil political turmoil in Indonesia mid-1960s. I, a law student, liked this exciting life of a journalist and a few days later I answered an add of the Večernje Novosti daily, where they were looking for a journalist in their Correspondence Office in Novi Sad

At that moment, it didn’t even occur to me that the country I was living in will very soon experience the real “years of living dangerously”, equally bloody, if not even worse than those in Indonesia 25 years earlier.

I recently complimented the Belgrade daily paper Politika for putting the situation around Subotica in the center of their front page. While there is a real war raging between migrants in the forests around that city, tensions are growing in the city itself. Last week, the luminous inscription “Szabadka” in the Hungarian language and in the colors of the Hungarian flag was broken. Istvan Pastor, the leader of the Hungarian minority party SVM, said that this was a message to Aleksandar Vučić, who received the title of honorary citizen of Subotica and publicly supported the installation of the sign in Hungarian a few days before that. After that, the Mayor of Subotica said that the sign in Serbian language was also recently broken, but that he didn’t want to make a case out of it. Officially, relations between Vučić and Orban, Serbia and Hun-

gary, SNS and SVM, have never been better – but tensions in the field are increasing. I am afraid that while everyone is talking about Kosovo day after day, practically right under the noses of the public in the entire region - a new crisis point is growing in the north of Serbia, in a multi-ethnic environment that is additionally burdened by the migrant drama that we wrote about in the last issue. Namely, investigative journalists report from the field that a combination of certain people from security institutions in Serbia and leaders of various migrant clans is at work. Huge money is being made, “heads are falling” and it seems that Serbia and Hungary, and EU officials preoccupied with negotiations on Kosovo, are turning a blind eye to all this.

Over the past days, the topic in the media were damages on tables with the signs in Hungarian in some other places across Vojvodina as well. If the relations between Serbia and Hungary, and Serbs and Hungarians, are never better – where did this frustration and aggression come from. Is the problem that, thanks to the efforts of the Prosperitati Foundation, some Hungarians in the villages and towns of Vojvodina now live much better than their Serb neighbors who are increasingly commenting that they feel that the state of Hungary invests more in their neighbor Pišta than the state of Serbia is investing in them?

Is it that movies and a TV series are being made about the Oluja and Jasenovac, while not even a short documentary was made about the Raid? Is it that Novi Sad plans to erect a monument to the innocent victims from 1944 (and there certainly was plenty of them), and the list of the victims which was officially posted on the website of the Ministry of Justice of the Republic of

Serbia holds the name of Janos Tot, one of the murderers of the five Jovandić brothers during the Novi Sad Raid in February 1942.

Good inter-ethnic relations in Vojvodina have been highlighted for years as an example in the entire region, but history teaches us that it takes very little for a single spark to burst into flames.

While I’m writing this article, I am on the island of Mali Lošinj in Croatia, where two days ago, the local Novi list daily published a story about a seemingly bizarre clash between fans from Vodnjan and Peroj, two villages in Istria. This story talks about how inter-ethnic conflicts and “the return to the nineties” are possible even in, one might say, “the most civilized part” of the former SFRY and today’s Croatia – Istria.

In Vodnjan, in addition to native Italians, a lot of Roma and Croat refugees from Bosnia and Slavonia have been living here since the 1990s. Montenegrins settled in Peroj three centuries ago, during the Venetian Republic. Two years ago, I was at the cemetery there, which is located behind the Orthodox church in the center of the village, and I saw that there were quotes from Njegoš on every other monument. The conflict over the joint use of the football field - turned into a bloody showdown between football fans. A reminder that such things are possible even “in the heart of the EU” and among “peaceful Istrians”.

Therefore, in order not to repeat “the years of living dangerously”, we need to be particularly careful in “traditionally tolerant regions”, like Vojvodina and Istria.

BOBAN

Magazine Director Croatia and Editor in Chief boban@diplomacy andcommerce.hr

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Inflation slowing down, GDP increasing

The main contributor to the slowdown in inflation is energy prices, despite the fact that the August’s restriction of crude oil supply on the global market in August pushed inflation upwards.

BORIS VUJČIĆ Governor of CNB

CNB Governor Boris Vujčić told Diplomacy&Commerce magazine that care should be taken because the risks to the realization of the projected inflation are still very high. Developments in the Eurozone, whose individual members are among Croatia’s most important foreign trade partners, are currently relatively unfavorable.

How do you comment on GDP growth in Q2; what are the estimates for economic growth in Q3 and for the entire 2023?

Croatia’s GDP posted a relatively strong increase in Q2. Personal consumption and the export of services contributed the most to such trends, which is in line with the continuation of favorable trends in the labor market, i.e., the growth of the number of employees, nominal and real wages, and the strong influx of foreign tourists. On the other hand, the rates of other GDP components were muted. At the three-month level, there was a noticeable drop in goods exports and imports, which could partly be connected to the weakening of external demand, while government consumption and investments also decreased slightly.

According to the latest projections of the Croatian National Bank, expected growth of Croatian economy for the entire 2023 amounts to 2.9%, whereby economic activity might slow down in the second half of the year. Recent indicators for the beginning of Q3 thus show that there was a pronounced decline in industrial production in July, while retail trade remained at the average level from Q2, and at the same time we see a slight decrease in the number of overnight stays by foreign tourists on an annual basis. Simultaneously, unfavorable trends in the leading indicators, i.e. consumer and business confidence, were recorded, with confidence in industry and services particularly deteriorating. However, looking at the year as a whole, a relatively strong growth of real GDP could be achieved for the third year in a row, with all components except goods exports contributing to growth. At the same time, a noticeably stronger increase in economic activity compared to the EU average is expected, which also points to the continued reduction of differences in economic development between Croatia and more developed member countries, after the Croatian GDP per capita, adjusted for differences in price levels, reached 73% of the EU average in 2022.

What are the main positive and negative factors that can affect the economic trends in Croatia in the medium term; do you con-

sider the warnings that further increase in interest rates might cause a recession in Croatia, and in the Eurozone, to be justified?

For a small open economy such as Croatia, events in the external environment largely determine what will happen to domestic economic activity. Developments in the Eurozone, whose individual members are among Croatia’s most important foreign trade partners, are currently relatively unfavorable. The Euro area economy practically stagnated in the first half of 2023, and high-frequency indicators also point to weakness in the current quarter. It seems that the weakening of external demand has already begun to spill over to domestic economic activity to a certain extent. Current projections assume a gradual recovery of the euro area economy towards the end of the year and its slight strengthening in the next year, under the assumption of strengthening of the global economy, but current signals point to the strengthening of negative risks for growth, especially if one takes into account the recent rise in energy prices, the extended duration of the war

in Ukraine as well as the pronounced geopolitical tensions. There is also the risk that the the accumulated effects of the tightening of ECB’s monetary policy will slow down the economic activity of the euro area and Croatia somewhat more strongly than currently expected. However, on the positive side, despite suppressed economic activity, the labor market in the euro area and Croatia is still relatively strong. The unemployment rate is at a record low, and the demand for work remains high. Although there are signs that employment growth is slowing down, and despite the weakening of economic activity, the labor market could remain relatively robust, which, along with a further drop in inflation, will continue to support real wage growth, i.e. the real disposable income of the population. Likewise, Croatia has at its disposal one of the largest amounts of funds from the European Union’s funds, when observing relatively, i.e., according to the share in GDP, the utilization of which will continue to strongly support investment activity in Croatia.

What are the inflation estimates for 2023 and 2024?

After peaking in November 2022, inflation in Croatia has gradually slowed down, albeit at a slower rate than previously expected. The main contributor to the slowdown in inflation is energy prices, despite the fact that the August’s restriction of crude oil supply on the global market in August pushed inflation upwards. In addition, inflation in the prices of food and industrial products is slowing down, thanks to the still significantly lower energy prices compared to the extremely high levels from mid-2022, as well as the reduction in prices of other raw materials on the global market and normalized global supply chains. In contrast, earlier cost growth caused by rising energy and food prices, labor shortages and resulting wage increases, and strong demand for tourism services contribute to maintaining the inflation of prices of services at a high level. Accordingly, after 10.7% last year, the overall inflation could amount to 8.8% in 2023 and then further slow down to 4.7% in 2024.

Inflation might be higher than projected in the event of higher energy prices – which partially materialized in previous months, more pronounced growth in food prices, as well as more pronounced wage growth, especially if profit margins do not shrink and thus absorb some of the wage cost pressures. On the other hand, the risks of lower inflation refer to the weakening of demand, stronger effects of the tightening of monetary policy, and a more pronounced spillover of the drop in energy prices and other raw materials on the consumer prices of goods and services.

ACCORDING TO THE LATEST PROJECTIONS OF THE CROATIAN NATIONAL BANK, EXPECTED GROWTH OF CROATIAN ECONOMY FOR THE ENTIRE 2023 AMOUNTS TO 2.9%, WHEREBY ECONOMIC ACTIVITY MIGHT SLOW DOWN IN THE SECOND HALF OF THE YEAR

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Transformation in favor of the economy

HGK has strategically oriented itself towards five areas of interest to its members: sustainability, green and digital transition, internationalization of business, the future of the workforce and food safety

LUKA BURILOVIĆ

HGK currently offers more than 60 services and products to its members, which, in addition to large and medium-sized members, can also be used by voluntary members to a certain extent, Luka Burilović, President of the Croatian Chamber of Commerce, told Diplomacy&Commerce. In the future, we must focus on creating a long-term regulatory and financial framework for faster, more efficient and greater energy self-sufficiency. These are significant investments that can simultaneously create demand for new industries and jobs, adds Burilović.

HGK went through some form of a reform and manner of functioning. What are the benefits of this reform when it comes to the relationship between the institution and the businessmen?

The transformation that HGK is in is a long-term and by no means easy process, and this is especially relevant when we are talking about a 170-yearold institution. It forces us to get out of our comfort zone, to erase from our heads most of the previous patterns of thinking and working - and to be persistent, creative and armed with knowledge enough to design new

ones. One of the key changes that turn us more strongly towards the market is the introduction of the position of Business Relationship Manager, which represents a much more personal approach to members and enables us to understand the situation and needs on the ground in a timely manner. At the same time, a member of the Chamber has a constant contact/expert whom they can turn to for anything they need. But we are just getting warmed up. We have to be even more agile, even more focused in the activities we do.

In what ways and through which programs does HGK provide support for its members and the economy in the times of crisis that we are living in?

The Chamber offers its members assistance in doing business, professional advice, legal advice, assistance in doing business abroad, help and advice for EU funds, help in finding a foreign partner, organization of targeted visits to foreign fairs, etc. In addition, the Chamber also has some public powers and a conciliation center. New services were

sition in the year of the war in Ukraine and the energy crisis. This is not a trendy topic, but a serious and systematic strengthening of our resistance to future crises and shocks. This year, HGK organizes the fourth consecutive edition of the Let’s Support Sustainability (Podržimo održivo) Conference, which regularly gathers around 300 representatives of the business and public sector, scientific and educational institutions and associations, who get the opportunity to be inspired and learn from some of the world’s biggest authorities on sustainability. We also have an ESG Academy in our country, with which we want to bring this topic closer to the real sector, and from this year, a complete national system for evaluating the sustainable practices of our companies, ESG rating HGK, and we will present awards to the best of them.

Numerous initiatives and conferences were launched to facilitate the transition for businessmen and increase the resilience of the economy. Our work in the Chamber is as important as our involvement in helping any of our members, and even the economy as a whole. This is the only thing that matters and on the basis of which we can further emphasize the purpose of the Chamber, which is to strengthen and promote the resilience of the Croatian economy.

also presented, such as the price index of construction materials, HGK puls macroeconomic analysis review, ESG Academy, and we also participate in several projects that are co-financed from EU funds. Back in 2018, we launched the Digital Chamber Project as an online platform for business support. The Digital Chamber currently has 70,000 users, and it reduces paperwork and saves time and money for entrepreneurs.

Let’s take for example the topic of sustainability and accelerated green tran-

We regularly come out with new analyses, which follow the pulse of global and domestic economy according to key parameters, and provide clear guidelines on how the Croatian economy can make the best use of its potential. This year, we continued to advocate the interests of our members in some key topics. In March, HGK and its Association of Renewable Energy Sources presented a Position Paper, a document that summarizes and analyzes the biggest administrative obstacles in the development of renewable energy sources and offers proposals for solving them. After we pointed out to the problems, significant developments have

President of the Croatian Chamber of Commerce

OUR WORK IN THE CHAMBER IS AS IMPORTANT AS OUR INVOLVEMENT IN HELPING ANY OF OUR MEMBERS, AND EVEN THE ECONOMY AS A WHOLE.

taken place and two regulations have been passed that are extremely important for the business of this sector.

The introduction of the euro and the entry into Schengen this year have changed the Croatian business sector in many ways. What are your experiences and which segment was most affected?

With Croatia’s entry into Schengen and the Eurozone, we have achieved two of the most important foreign policy goals that we set out by joining the European Union. How important this is was seen in the second half of last year, when we were not forced to raise reference interest rates in order not to mitigate the depreciation of domestic currencies.

Schengen simplifies the exchange of goods, the flow of people, makes our border counties more accessible to investors from Schengen countries near Croatia, and our economy more competitive. Logisticians and carriers have a direct benefit from entering Schengen because their business costs are dropping: no more waiting at the Slovenian and Hungarian borders, i.e., that waiting time is now spent driving. It is estimated that the direct benefit of entering Schengen for more than 5,000 international road carriers in Croatia will be over 110 million euros on an annual basis. Along with our citizens who will travel even more easily within the borders of the Union, the biggest winner is certainly tourism, considering that guests from European countries make up our most important and richest market.

International cooperation of the Chamber is one of the key functions, and the transfer of knowledge and experience is very important for progress. With which countries has Croatia recorded the greatest growth in international cooperation and in which areas?

About 15 percent of Croatian companies export, i.e., sell goods and services outside Croatia, and we at HGK are intensively working on ways to increase that number. The single EU market is the most important market for Croatia, and trade with EU member states in 2022 accounts for about 69% of total exports, which increased by 33% compared to 2021. Our largest foreign trade partners from the EU are Italy, Germany, Hungary and Slovenia, with Italy leading the way with a share of about 12% of total exports and an increase of about 23% compared to 2021. Bosnia and Herzegovina, the USA and Serbia are the most important partners outside the EU. Last year, trade with third countries accounted for about 31% of total exports, which, compared to 2021, increased by about 28%.

The processing industry has the greatest influence on the increase in export and import, it achieved an increase in exports by about 22% in 2022, followed

by the production of food products with a share of about 8% in total exports and an increase in exports by about 24% compared to 2021. An important item in Croatian exports is certainly the exchange of services with foreign markets, where we achieved a surplus of 14 billion euros in 2022, mostly with the most important partners, Germany, Austria, Italy and Slovenia. In this segment, for example, revenues from the export of services with Germany increased by 34% compared to 2021, and with Austria by as much as 53% compared to the previous year.

In addition to traditional markets, where there is still room for more stronger positioning of our companies, products and services, the companies are showing increasing interest in stepping into markets that have not been their focus traditionally, such as the USA, the Middle East, South America and Turkey, therefore we adapt our activities primarily to the interests of the members. Exporting is a challenge in itself, and a successful and long-term presence in a market and a sustainable business require planning, preparation and connecting with verified stakeholders and partners in a country. It is an area in which HGK tries to support its

members as much as possible, through the organization of bilateral and multilateral events, participation in internationalization projects such as the European Entrepreneurial Network (EEN) and the opening of representative offices in target markets.

How would you rate the business year coming to an end and what are the greatest challenges for the upcoming period (labor shortage, outflow of people abroad, increase in wages…)?

Today, the Croatian economy is significantly more resilient than ever before. We recovered very quickly from the drop in GDP during the pandemic, partly due to the deleveraging of the economy after 2008 and certainly due to entry into the EU, which our exporters took advantage of very well. Today, Croatia is at the institutional core of the EU, and by 2029 we can use as much as 25 billion euros from EU funds, more than half of which is intended for investments in ‘digital’ and ‘green’. Entry into Schengen and the euro area are additional flywheels for the economy, but like the rest of Europe, we are adjusting to higher energy prices and the re-establishment of supply chains.

About ten years ago, the main concern of businessmen was how to adapt and not fail in the extremely competitive European market, and today the focus is on entering third markets and nearshoring, which is current due to Europe’s need to bring some part of industries back to the continent. Nevertheless, in order for the industry to gain new momentum, a wellthought-out industrial strategy is needed along with the predictability of public policies. The workforce is an extremely important issue, of course. We have one group of activities with which we solve current problems, like in construction sector, for example, where this is very important to us due to reconstruction after the earthquake, but also large infrastructure projects. Of course, I am referring to the import of labor. We need a long-term immigration policy and we need a longterm strategy in cooperation with the education system.

In your opinion, what should be the main course of action of policy makers when it comes to strengthening the competitiveness of the Croatian economy?

We must focus on creating a longterm regulatory and financial framework for faster, more efficient and greater energy self-sufficiency. These are significant investments that can simultaneously create demand for new industries and jobs. That is why it is necessary to significantly simplify the regulatory framework and administrative processes, and this will be the focus of the Croatian Chamber of Commerce in the coming period. At the same time, models should be prepared that will stimulate investments in renewable energy sources and provide tax incentives for companies that will accelerate their path to energy selfsufficiency.

At the same time, we must not forget about our agricultural policy, which, along with further consolidation, must include more innovations and technologies, in order to achieve the highest degree of self-sufficiency and competitiveness. Any increase in domestic agricultural production would not only improve the agricultural trade balance, but also reduce the inflationary pressures occasionally generated by the global agricultural market.

The questions that we must continuously address are where Croatia is on today’s global map, as well as how Croatian companies deal with current challenges in internationalization, how quickly they adapt to new circumstances. How difficult it is to find new market niches in today’s conditions, as well as whether any new ones have opened. One thing is certain. Regardless of how the puzzle of the international business of Croatian companies looks like, promoting trade and investment must be our national priority.

IN ADDITION TO TRADITIONAL MARKETS, THE COMPANIES ARE SHOWING INCREASING INTEREST IN STEPPING INTO MARKETS THAT HAVE NOT BEEN THEIR FOCUS TRADITIONALLY, SUCH AS THE USA, THE MIDDLE EAST, SOUTH AMERICA AND TURKEY

Italy has once again become Croatia’s first commercial partner

ANDREA PERKOV

Director General of the Italian-Croatian Chamber of Commerce, THGK

In Italy, several times a year we make presentations of Croatia and opportunities for investment and partnership business, present sectors of particular importance, and through our informative activities we provide information on tenders and incentives, all to maintain and create better conditions and jobs.

According to the comments of the chamber members, how do you evaluate the current business year, where do you see the biggest problems and how to solve them?

The current year is not easy for anyone, not even our members. We are all faced with high inflation and rising prices, and because of the war in Ukraine, we are also witnessing a lack of raw materials or a rise in their prices. What makes me happy is that our companies manage to maintain themselves, but the problems are quite a lot, and the results will certainly be smaller.

Our Chamber, as well as all other international chambers operating in Croatia, has repeatedly warned about these problems, pointed out, organized, and participated in working groups to improve the situation in the country. Within our system, we strive to provide members with easier business daily, especially through the services and maintenance of our events, which aim to educate, help, speed up business processes, but also find new commercial partners and develop business.

Croatia in the top 5 investment destinations

STEFANIE ZISKA Managing director AHK

What is the Italian-Croatian Chamber undertaking to improve the business climate in Croatia and to make the economic relations between the two countries even better?

The Italian-Croatian Chamber of Commerce for the purpose of improving the business and investment climate in Croatia is extremely active. As an example, I will cite that we are members of the working group with the OECD and we have been working on a proposal to amend the investment law, which is over twenty years old. In addition, daily, we are at the service of companies either from Italy or those who already do business here to facilitate business through services from consulting to obtaining permits, searching for partners or localities for investment to product promotions. We also hold a range of events from fairs to seminars, business matching, courses, etc.

According to the Chamber’s 2023 Economic survey, Croatia has been recognized as one of the top five most attractive investment location among 16 countries in Central and Eastern Europe.

According to the comments of Chamber members, how do you evaluate the current business situation, where do you see the biggest challenges and how to overcome them?

Impressively, over 80% of companies are keen to reinvest in Croatia, indicating a continued commitment to the country’s economic landscape. Potential for German investors lies in the sectors of metal processing and mechanical engineering, electronics/electrical engineering, wood and furniture industry, food and beverage industry, chemicals and pharmaceuticals.

What is AHK undertaking to improve the business climate in Croatia and to make economic relations between the two countries even better?

Germany is Croatia’s most important trade partner. For 20 years, the German-Croatian Chamber represents the economic interests of German companies in the country and acts as a “bridge” for Croatian companies that want to do business in Germany. In Croatia operate roughly 400 German companies that have invested around EUR3.9 billion in Croatia and have created 80.000 jobs.

love to announce the Business Fo-

Although Italy and Croatia have traditionally good relations in all fields, although Italy has once again become Croatia’s first commercial partner with an increase of more than 60%, we believe that there is still space for growth and together with the entire System of Italy under the leadership of the Italian Embassy, we are working on it intensively, so that for, I would love to announce the Business Forum, organized between the two countries, which, in addition to the institutional part, will also have business matching between Italian and Croatian companies.

Nevertheless, companies are grappling with significant challenges. The lack of a professional workforce in almost all sectors, high-energy prices (primarily attributed to the negative repercussions of the Russian aggression against Ukraine), continued inflation and disruption in supply chains and high labor costs are identified as the primary challenges for our members. The slowdown of the construction sector in Germany is even more pronounced, which also affects the decline in demand for Croatian manufacturers.

Other challenges that have remained largely consistent include excessive tax burdens, inefficient public administration, and fight against corruption.

Numerous German companies have recognized the advantages of this country as a production location. Croatia is recognized as growing innovation center in Europe - IT & startups (e-mobility) are booming. In the field of green and digital transformation, there is potential and room for further development. AHK has been committed to sustainability, increasing energy efficiency and the use of renewable energy, as well as climate protection. Digitization is also an extremely important topic - whether in the public sector, at the level of municipalities or in the private sector. Extensive EU financial support is also available for both private and public sector, which can promote cooperation and the transfer of knowledge and technology.

In our talks with the public sector it is crucial to emphasize Government’s commitment to reforms that benefit businesses and importance of taking concrete steps to ensure their effectiveness.

VIŠNJA JEŽIĆ SORIĆ

President of the Franco- Croatian Chamber of Commerce

We believe that the FrancoCroatian Chamber of Commerce and Industry plays an important role in connecting the French business community in Croatia, which we do through various formal and informal events, for Diplomay&Commerce says Višnja Ježić Sorić, President of the Franco- Croatian Chamber of Commerce.

According to comments of members of the Chamber, how would you describe the current business year, what do you see as the biggest problems and how to resolve them?

Based on the comments of the Chamber members and the analysis of the current business environment, the current business year can

be described as challenging, despite the good business results of the previous year and optimistic plans for the future.

The current business environment is indeed shaped by a number of key challenges that reflect the dynamic nature of the global market, and which reflect on all of us, regardless of whether we are individuals and ordinary citizens or companies from different sectors. Emphasized challenges such as inflation, rising costs of energy and raw materials, and the problem of labor shortages really stand out as key factors that have the potential to seriously affect the profitability and sustainability of business. What further complicates the situation is the uncertainty about the limits to which these challenges will go and how long they will last.

Given the aforementioned uncertainties, companies should adapt to the changing environment and consider different scenarios in their strategies in advance. This includes activities such as monitoring changes in the environment, diversifying suppliers and resources to reduce risks, investing in technology to increase business efficiency and actively participating in the development of their workforce and innovation.

What is the Franco-Croatian Chamber doing to improve the business climate in Croatia, and to make the economic relations of the two countries even better?

We believe that the Franco-Croatian Chamber of Commerce and Industry plays an important role in connecting the French business community in Croatia, which we do through various formal and informal events. Of the formal events, we would like to highlight the seminars that we organize in cooperation with the competent ministries, key stakeholders from legislation and the wider business community, as well as our B2B meetings and speed networking events, which we plan to conduct more intensively in the future. Of course, there are also our informal events and gatherings of members, which are, without a doubt, of exceptional importance within our activities. These relaxed gatherings allow us to build deeper relationships, exchange ideas and experiences, and maintain business contacts in a slightly more unconventional and friendly way. They are essential for strengthening mutual understanding and cooperation between our members.

Connecting companies is our most important goal

Improved work of Zagreb City Assembly

Development and progress of the City depends primarily on the behavior of the representatives, not on their political views

JOŠKO KLISOVIĆ President of the Assembly, City of Zagreb

Joško Klisović, President of the Assembly of the City of Zagreb, states for Diplomacy&Commerce that they will work intensively and change things at the City Assembly, be-

I RECENTLY SWITCHED FROM A PROFESSIONAL TO A VOLUNTEER STATUS OF THE PRESIDENT OF THE ASSEMBLY BECAUSE I WANTED TO REMOVE THE ISSUE OF MY SALARY FROM THE AGENDA IN MY OWN PARTY.

cause professional strengthening of clubs of representatives and the provision of all legal, statutory and operational conditions for the establishment of the Secretariat of the Assembly, which would be separate from the executive power, i.e. the Mayor, which is not the case now. He believes that business

people can best contribute to development of the state and society by following the principles of corporate social responsibility and supporting the personal development and education of their employees and young people in general.

You are at the head of the Zagreb City Assembly. What are you most proud of from what has been done since you became in charge, and what would you change in your work?

Change in the Rules of Procedure of the City Assembly is one of the things that I am proud of and which significantly improved the work of the Assembly during my mandate. Deputies are now more focused on the agenda items on which we have to make decisions in order to regulate the situation in the city and ensure a better life for its citizens. Debates are now of higher quality and more concentrated, and the space for manipulation of the procedure for personal political promotion of individual representatives and senseless political calculations without any value for citizens has been reduced.

I also intensified international cooperation, which, in addition to the exchange of useful experiences and ideas and the educa-

tion of representatives, resulted in a donation of half a million HRK for the reconstruction of the European cinema, help in clearing the city of fallen trees and faster repair of the damage caused by the worst storm in the history of Zagreb, new financing opportunities for Zagreb projects through the Development Bank of the Council of Europe, etc. I will continue with initiatives and proposing decisions to the Assembly as before for a better quality of life for citizens.

What are the most common problems you face at work and how do you solve them? How much politics “holds back” development and progress?

A great deal of problems stems from inadequate legal framework in which we operate. In this sense, as I mentioned, the Secretariat of the Assembly should be restored and thus complete the institution of the Assembly for the professional preparation of its legislative

work. Both the ruling party and the opposition are aware of this, but we have not moved much because the competent Ministry of Justice and Administration is not ready to amend the Law on the City of Zagreb in this way. Politics is an integral part of parliamentary work, so our efficiency and speed of decisionmaking, and thus the development and progress of the City, depends primarily on the behavior of the representatives, not on their political views.

You are currently the head of the Assembly of the capital and largest city in Croatia, but you have also been involved in diplomacy. You were deputy to Minister of Foreign and European Affairs Vesna Pusić and a diplomat who lived in New York and Brussels. What is the biggest difference in doing these two jobs?

They certainly have one thing in common – you represent the interests of the citizens of your country and your city. What dif-

fers are the topics you deal with. In the City, communal topics are dominant, while there are none of these in diplomacy. However, the cities are intensively developing the so-called “city diplomacy”, where my experience in diplomacy is extremely beneficial in my work and representation of Zagreb in the European Committee of the Regions.

What would you single out as the most important points of work in diplomacy and how do you rate the work of Croatian diplomacy at the moment in the circumstances as they are? How important is intercity diplomacy?

The greatest successes of our diplomacy are the international recognition of the state and the successful conduct of negotiations within the framework of the conference on the former Yugoslavia, the peaceful reintegration of Podunavlje and the diplomatic preparation of liberation actions in the Homeland War, admission to NATO and the EU, and the development of economic diplomacy. I worked on all these state priorities and I am particularly proud of that. Today’s diplomacy is trying, but it lacks clearly defined foreign policy goals, so as a result, meaningful initiatives are also lacking. Inter-city diplomacy is extremely

PUBLIC-PRIVATE PARTNERSHIP, SPONSORSHIPS AND DONATIONS FOR QUALITY PUBLIC AND NON-GOVERNMENTAL PROJECTS ARE ALWAYS WELCOME.

important, especially in the European context, considering that 85% of the Acquis is implemented at the local level, and the voice of the cities is not heard enough in the preparation and definition of European policies. That is why the European Committee of the Regions was established. In addition, city diplomacy is important in the exchange of experience in managing communal issues and the process of digitization, energy and green transition, and overall modernization, and in the event of an accident, help arrives the fastest from cities with which you have established “diplomatic” cooperation.

Politics, diplomacy, it seems that the natural piece of the puzzle that’s missing is the business. You are currently volunteering at the head of the Assembly. What is the reason for this?

I recently switched from a professional to a volunteer status of the President of the Assembly because I wanted to remove the issue of my salary from the agenda in my own party and return the party’s focus to the discussion of proposals and initiatives for a better life of citizens. Former presidents of the Assembly from SDP also received a salary, but this was not an issue at the time. I found a job in the private sector in a company that showed understanding for my obligations as President of the Assembly.

Connection between business and politics is natural and inevitable. In your opinion, what should the politicians do to improve the economic environment, in addition to passing laws, and how can business people contribute to the development of society and the state without only material interest and profit?

Politicians should primarily ensure a quick solution to the requests of entrepreneurs and thereby improve the business climate. In this sense, I will go with the One-Stop-Shop proposal at the next session of the Assembly. The idea is that entrepreneurs who now go from one city office to another have one place to turn to and where they will get everything they need, OSS will coordinate all competent city offices. Business people can best contribute to the development of the state and so-

ciety by following the principles of corporate social responsibility and supporting the personal development and education of their employees and young people in general. Public-private partnership, sponsorships and donations for quality public and non-governmental projects are always welcome.

Where do you see yourself in 5 years, and how do you see the Croatian society in this period?

I see Croatia in five years as a country that is starting to change the established patterns of behavior that have brought us to such low branches. A country where pre-

election promises are starting to be implemented, where laws are passed according to citizens, not interest groups. A country where institutions work in the public interest according to the principles of good governance, a country led by the progressive left through digital, social and climate transition towards a society based on full respect for human rights and social justice. I will be active, as before, and I will use my work and life experience to contribute to the betterment of our society through the public or private sector.

POLITICIANS SHOULD PRIMARILY ENSURE A QUICK SOLUTION TO THE REQUESTS OF ENTREPRENEURS AND THEREBY IMPROVE THE BUSINESS CLIMATE

H.E. MR. JUAN GONZÁLEZ-BARBA

Spanish Ambassador to the Republic to Croatia

Spain presides over the EU Council until the end of 2023. H.E. Mr. Juan González-Barba, Spanish Ambassador to Croatia, in addition to the topic of the EU presidency and the priorities of official Madrid, explains in which areas there is progress for cooperation between Spain and Croatia. Special attention is paid to the economy and scientific research.

What is your opinion of the relations between Spain and Croatia today, given that both countries are members of the EU and NATO? Are there any open issues?

The decade that Croatia has been member of the EU is the main factor behind the strengthening of bilateral relations in all domains. Politically, the level of visits exchanged has been unprecedented in the last three years: Prime Minister Andrej Plenkovic visited Spain in March 2022, and the Speaker of Sabor did so in May 2022. Prime Minister Pedro Sánchez visited Croatia in October 2021 and again in February 2023. There have been many other visits at Ministerial level in both ways, but the highlight has been undoubtedly the official visit by King Felipe and Queen Letizia in November 2022, the first visit ever of the Spanish monarchs to mark the 30th anniversary of the establishment of diplomatic relations. Queen Letizia returned to Zagreb only half a year later to participate in the Eu-

Excellent relations of allies and friends

As far as trade and investments are concerned, we can both be satisfied with our achievements.

ropean conference on child obesity organized by the WHO and Croatia’s First Lady.

Croatia has joined this year the very core of the EU integration project, with her participation in both the Eurozone and the Schengen area, which has increased our co-operation even further. Two years before, Croatia joined the informal grouping

by the signature of a MoU by the relevant ministers in the presence of the King and Queen of Spain and the President of Croatia and his wife. IFMIF-DONES is carried out within an EU framework, with substantive financing by the Commission, open to the participation of the remaining EU Member States plus some other international partners.

SPAIN AND CROATIA ARE LEADING THE IFMIF-DONES INITIATIVE, FOCUSED ON THE DEVELOPMENT OF ULTRA-RESISTANT MATERIALS NEEDED FOR THE TECHNOLOGICAL APPLICATIONS OF ENERGY LIBERATED BY THE NUCLEAR FUSION PROCESS, ONCE IT IS FULLY MASTERED

called MED-7, now MED-9. Spain organized the informal MED-9 summit in Alicante last December and one of the most published photos of the event was one of European leaders around Prime Minister Plenkovic watching on his mobile the round of penalties of the World Cup match of Croatia vs. Brazil.

It is very remarkable that the main project in our bilateral cooperation should be in the field of scientific research. Spain and Croatia are leading the IFMIF-DONES initiative, focused on the development of ultra-resistant materials needed for the technological applications of energy liberated by the nuclear fusion process, once it is fully mastered. The project was officially launched

People-to-people contacts are worth mentioning, since they constitute the foundations on which official relations are built. Tourism, especially of Spaniards to Croatia, is increasing every year, with numbers approaching 400.000 visitors. These are quite impressive numbers, if one takes into account that most tourists arrive by plane and that Spain is a very popular sun-and-beach destination too. Croatia and Spain have become popular choices for our Erasmus students from our respective countries. I cannot fail to mention to what extent sports, and particularly soccer, has contributed to enhance the awareness and positive image of Croats in the eyes of Spaniards and viceversa.

The economy is a very important aspect when it comes to relations between countries. What do the numbers show when we talk about Spain and Croatia? Where do you see room for improvement of economic co-operation?

As far as trade and investments are concerned, we can both be satisfied with our achievements. Starting from negligible amounts of bilateral trade not so long ago, we have recently managed to surpass the symbolic threshold of 1 billion € of yearly trade exchanges. Likewise, bilateral investments are growing. The main sector of Spanish investments in Croatia is renewable energy through ACCIONA, which is already operating a wind farm and is in the process of building and operating a second one plus a solar plant.

I foresee an increased cooperation and interest, at least as far as Spanish economic operators are concerned, in two specific areas. Firstly, in hightech and AI business developments, where Croatia is proving a very fertile ground for innovation, but also in the renovation of the Croatian railway network, including high-speed trains, where Spain has acquired a proven leadership with the most extensive high-speed railway network in Europe, only second to China in the rest of the world.

Spain presides over the EU until the end of the year. What have you singled out as priorities and to what extent are they implemented in the field? Which area has the most problems?

Prime Minister Sánchez summarized our goals and priorities for the current semester in four main areas: fostering Europe’s reindustrialization within an open strategic autonomy; speeding up the green transition; achieving a greater social and economic justice; and strengthening the European unity. Each area includes a number of dossiers, on two of which (enlargement and war in Ukraine) I will elaborate later. Among the most sensitive and critical, for which a lot of work is being put into, I may single out the reduction of vulnerabilities in essential supplies such as food, energy and health, the adoption of the fit for 55 package, guarantees of the right of workers in the new economic sectors and the reform of the electricity market. Everyone was expecting that Spain would lay special emphasis on the strengthening of relations with Latin America, and indeed one of the first events organized during our Presidency was a summit between the EU and the Latin American and Caribbean countries, held on 17-18th July in Brussels.

Certainly, one of the priorities for everyone is ending the war in Ukraine. What is Madrid doing about it?

I would dare say that this is the question topping the agenda of the Spanish Presidency. Proof of it was the visit that Prime Minister Sánchez payed to Kyiv on July 1st, marking thus the beginning of our Presidency. The Spanish commissioner, High Representative Borrell, is taking since the outset a very determined stance to confront the Russian aggression that elicits ample support among the main political forces in Spain and the majority of Spain’s public opinion. We will continue offering support to the Ukrainian people, including military support, as well as to the many Ukrainian refugees hosted by my country. As EU Presidency, we will strive to keep EU unity in this dossier, which is of the essence, and will strive to achieve an agreement on the start of accession negotiations beneficial for the interests both of Ukraine and the EU.

What is Spain’s position on EU enlargement to the Western Balkans, a region where there are still many unresolved problems?

Spain is fully supporting a renewed impulse to bring the Western Balkan countries into the EU, back to a family where they belong. I have heard some leaders of the region saying that their accession, from a geographical point of view, is not a matter of enlargement but rather of

completion of the European territory. If you look at the map and see how the Western Balkans are already encircled by EU territory, the expression is a very apt summary of what is at stake. The Russian aggression in Ukraine has highlighted even more how much is at stake in the Western Balkans as far as the stability and prosperity of the EU as a whole is concerned, on top of the vital importance that the enlargement has for each country in the region.

Everyone is aware that pending issues are many and some of them quite sensitive, not only within and among the countries of the region and their immediate neighbours, but also regarding the EU governance itself. Institutional reforms and changes in the decision-making process will have to be introduced to avoid a paralysis in the functioning

of an enlarged Union. I am confident that this new sense of urgency will help overcome such hurdles within a reasonable time framework.

Since the outbreak of the war in Ukraine, several wars have also broken out in Africa, and we have also witnessed military coups in several countries. How do you see the global position of Europe in the global distribution of power?

The turmoil and upheavals that Africa is going through are a most unsettling feature of our present. The fact that we as Europeans are logically concentrated on what is happening in Ukraine should not let us deviate from our collective duty, as Europeans and as members of the international community, to help Africa overcome the many-faceted

challenges it is facing. The Agenda 2030 is an already agreed roadmap for the World’s integral human development, with many goals and objectives particularly pertinent to the circumstances prevailing in large parts of Africa. The Agenda’s motto is that no one should be left behind, and indeed much progress in its implementation had been achieved since it was adopted in 2015. The main precondition to move ahead in the many areas where African indicators are lagging is peace and stability, which, alas, has been challenged in those countries where coups have recently been staged or, worse still, where armed conflict has broken out or continued unabated.

How do you see the EU in 10 years and the European Union in general?

Both confidently and persuaded that there is no other option for us Europeans to confront the uncertainties and challenges that the 21 century holds in store. I was the Spanish Secretary of State for the EU when the pandemic broke out and could witness first-hand –in fact, participating in the negotiations to agree on the European response to the unprecedented situation created- the EU’s decisive reaction on the many fronts affected by the health crisis. Just after I left this job, I could follow once more the robust and joint EU response to the Russian aggression in Ukraine, and I expect the EU will continue to raise up to future challenges. Perhaps what is needed at this stage is to develop a strong European identity, complementary to our respective national ones, that could engender a European patriotism based on our common history, geography and values and thus infuse us with a deep sense of belonging at a continental scale.

THE MAIN SECTOR OF SPANISH INVESTMENTS IN CROATIA IS RENEWABLE ENERGY THROUGH ACCIONA

UNESCO WORLD HERITAGE SITES SWITZERLAND

Swiss Tectonic Arena Sardona Winegrowing area of Lavaux

The castles of Bellinzona

Monte San Giorgio

Convent of St. John in Müstair

10 YEARS OF CROATIAN MEMBERSHIP IN THE EUROPEAN UNION

by Vice President for de - mocracy and demography, Dubravka Šuica

It is with great pleasure and immense pride that I take part in this publication of the European Commission Representation in Zagreb, marking a decade of Croatia’s membership in the European Union. This milestone provides us with an opportunity to reflect upon Croatia’s remarkable journey within the EU: the achievements and the invaluable contributions made by Croatia to the EU and by the European Union in Croatia. Having successfully navigated through the demanding accession process, implementing comprehen-

President

sive reforms across a range of sectors, Croatia has been aligned with EU standards for ten years already. In this period, Croatia has demonstrated true and unwavering commitment to the principles and values upon which the European Union is founded. Croatia also showed a great resilience, determination and courage in implementing many reforms. Since becoming a member state in 2013, Croatia has made significant strides in various domains, shaping its path towards progress and prosperity. This has been recognised by the European Commission on

many occasions. Croatia’s commitment to the European project also serves as an inspiration to other countries aspiring to join the EU, including those in our immediate neighbourhood and whom we support vigorously in their endeavour. The EU’s solidarity, cooperation, and financial support have been instrumental in realising Croatia’s vision for a better future. There will be ample space for figures and numbers as we look back on Croatia’s EU membership, both in this publication and elsewhere. Here, I would like to underline just a few of the major

DUBRAVKA ŠUICA Vice

for de - mocracy and demography,

POLITICS

Foreword

accomplishments that have flowed from Croatia’s accession to the European Union. One of the most noteworthy achievements is the economic development of Croatia. Through its integration into the Single Market, Croatia has experienced an increase in trade, investment, and job creation. The number of unemployed people in the country in 2023 has gone back down to that of 1982. The European Union has played a vital role in facilitating this growth, through its various funds and by providing technical support and expertise. The Competitiveness and Cohesion Operational Program has stimulated innovation, entrepreneurship, and regional development, leading to job creation and improved living standards for Croatian citizens. Another area where the country has benefited was the enhanced regional connectivity and infrastructure. Here I have to stress the importance of the EU supported Pelješac bridge which connected the country and together with the country’s accession to Schengen ensured that there are no more borders or showing of pass -ports when travelling from Brussels to Dubrovnik. Other examples include the EU-funded Adriatic Ionian Corridor project or the support available under the European Regional Development Fund to projects such as the Rijeka Port revitalization. This included significant investments to transform the port into a hub of economic activity, boosting trade and creating employment opportunities and incorporating green technologies and innovative solutions. Croatia’s membership in the EU has also brought numerous benefits in the realm of social cohesion and cultural exchange. The European Union has been instrumental in promoting cultural diversity and intercultural dialogue, enriching the fabric of Croatian society. Through initiatives such as the “Europe for Citizens” programme, which supports grassroots activities and fosters citizen participation, Croatian communities have had the opportunity to engage in cross border collaboration, to exchange ideas and to foster a sense of European identity. As the co-chair of the Conference on the future of Europe, the biggest deliberative and participative exercise ever carried out in the world, I must admit that I was particularly proud of the contributions of Croatian participants. They showed passion and commitment in caring about our common European future, confirming how Croatia always belonged to the European Union.

Croatia’s successful participation in the Erasmus+ program is yet another testament to the transformative power of the European Union. By enbling Croatian students, researchers, and educators to study, work, and exchange knowledge across Europe, Erasmus+ has fostered personal growth, intercultural understanding, and academic excellence.

More than 13,000 participants took part in education activities abroad. They broadened their horizons, gained valuable skills, and built life long friendships. They enriched themselves and are now passing on the knowledge and experiences to others in Croatia. The European Union has also been a crucial partner in safeguarding Croatia’s natural heritage and promoting sustainable development. Projects such as the “Natura 2000 Network” have contributed to the preservation of Croatia’s unique ecosystems and biodiversity, ensuring the sustainable use of natural resources for future generations. Furthermore, the EU’s investment in renewable energy and energy efficiency projects has not only reduced Croatia’s carbon footprint but also created opportunities for green jobs and economic growth. As we celebrate Croatia’s decadelong membership, we should acknowledge the European Union’s instrumental role in these achievements. The EU has provided a framework of solidarity, cooperation, and shared values that has facilitated Croatia’s integration, progress, and resilience. It is through joint efforts that we will manage to navigate the demographic change that the whole European Union is faced with. Croatia, like many other EU Member States faces several demographic challenges that require attention and effective solutions. These include population decline and aging. To address this, we are working on ensuring conditions supportive for families that wish to have more children, improving worklife balance, and enhancing care for both children and seniors. Attracting and retaining skilled workers, through com-

petitive job opportunities and favourable immigration policies can contribute in mitigating labour shortages. This should also be coupled by investing in education and healthcare infrastructure. By implementing these measures, we can tackle our demographic challenges and work towards a more vibrant society. Together, we have already built a stronger, more prosperous Croatia in Europe, where the wellbeing of our citizens is at the heart of our collective efforts. And when I say together, I mean the people of Croatia, together with its institutions and the institutions of the EU. The commitment of the Croatian people and their continuous drive for progress has been and will continue to be the key driver of Croatia’s European success. I would also like to recognise and thank the two Heads of the Representation of the European Commission that we have had in Zagreb: Branko Baričević and Ognian Zlatev, as well as all of the staff of the Representation, for their contributions and dedicated work. I extend my heartfelt congratulations to the people of Croatia on this significant milestone. May the next decade of our EU membership be filled with even greater achievements and an everstrengthening partnership between Croatia and the European Union. As Vice President of the European Commission, and as a proud Croatian, I am confident that Croatia will continue to seize the opportunities and overcome the challenges that lie ahead. With the continuous support of the European Union, Croatia will forge a path towards an even brighter future, contributing to the shared goals and aspirations of our Union.

The EU’s solidarity, cooperation, and financial support have been instrumental in realising Croatia’s vision for a better future.

Croatia has demonstrated true and unwavering commitment to the principles and values upon which the European Union is founded

KEY DEVELOPMENTS IN THE TEN YEARS IN THE EU MEMBERSHIP

POLITICS

• Economic growth – Croatia became part of the common European market, with new opportunities for Croatian companies. Over the past decade, Croatia generated economic growth and became a more attractive destination for foreign investment.

• EU funds – Croatia has become a beneficiary of European Union funds, enabling it to finance numerous projects in various sectors such as infrastructure, agriculture, tourism and education.

• Migration and refugee crisis – Croatia was one of the countries on the migration route, leading to many challenges but also opportunities to show solidarity and humanity.

• Brexit – the UK’s departure from the EU had a major impact on Croatia, in particular as regards trade relations, migration and tourism.

• The Presidency of the Council of the European Union, Rijeka as the

European Capital of Culture; the first Presidency since Croatia joined the EU during which Croatia focused on several key topics, including strengthening European cooperation in the fight against climate change, developing economic cooperation and digitalization and reducing inequalities within the EU; Croatia played a key role in the management of the pandemic and played a leading role in the negotiations over the Multiannual Financial Framework 2021-2027.

• COVID-19 – the impact of the pandemic on the economy, society and citizens’ lives.

• Schengen and the euro area – two key EU initiatives with important implications for Croatia, joining a European system without borders that allows free movement of people, use of a common currency, currency stability and financial integration with other EU Member States.

THE BENEFITS OF THE EU MEMBERSHIP MEMBERSHIP IN THE EURO AREA

The introduction of the euro as the official currency took place during the first 10 years of membership and Croatia became one of the 20 countries with a total population of 347 million people using the euro. On July 10th 2020, Croatia entered the ERM II exchange rate mechanism in which it was supposed to participate for two years without major fluctuations in the exchange rate between the Croatian kuna and the euro. A fixed exchange rate of HRK 7.53450 for one euro was set when entering the exchange rate mechanism. In June 2022 the European Commission published its annual convergence report, assessing that Croatia has met all the criteria for joining the euro area and proposed to the Council of the European Union that Croatia adopt the euro as its official currency.

A decision of the Council of the European Union on July 12th 2022 allowed Croatia to adopt the euro from January 1st 2023. The introduction of the euro in Croatia passed without major problems. Double use of the kuna and the euro lasted until January 15th, during which customers could pay in kuna, while the change would be returned in euros.

The goal of the dual currency use was to remove the kuna from the circulation. The process started in December 2022 and by December 31st 2022, 55  % of banknotes and one third of coins had been removed. The ATM conversion process had also gone smoothly, with 70 % of ATMs distributing euro since the first hours of 2023.

The euro has brought many practical benefits to Croatian citizens and businesses. It has facilitated travel and life abroad, increased market transparency and competitiveness, and enabled easier trade. Currency risk has disappeared and simplified price comparisons with other EU Member States. In addition, membership of the euro area brings increased macroeconomic stability and made Croatia more attractive to investors.

EUROPEAN FUNDS AND PROJECTS IN CROATIA

DIVISION INTO CATEGORIES:

1. Preaccession

2. EU funds 2007-2013

3. ESI Funds 2014-2020

• a) EU funds 2021-2027 a) Pelješac bridge In 2017, the European Commission approved EU funding for the construction of the Pelješac Bridge in Croatia, and the bridge was officially opened on 26 July 2022. The construction of the Pelješac Bridge is one of the biggest projects in the European Union and Croatia. The project itself was funded by the European Union’s cohesion policy, which contributed 357 million euros to the project. This bridge connected Dubrovnik-Neretva County via the Adriatic Sea and the Mali Ston Bay with the rest of Croatia,

making the daily lives of Croatian citizens and visitors much easier. The free flow of people and goods has improved access to public services such as commercial services and healthcare. Better connectivity will greatly improve tourism and trade and strengthen the territorial cohesion of Southern Dalmatia with the rest of the country.

• b) Svilaj bridge In September 2021, an international border crossing point and bridge on the Sava river linking the European Union with the countries of the Western Balkans was officially opened. Building the bridge is a joint investment between Croatia and Bosnia and Herzegovina, and the opening ceremony was attended by Ursula von der Leyen, President of

POLITICS

The introduction of the euro as the official currency took place during the first 10 years of membership and Croatia became one of the 20 countries with a total population of 347 million people using the euro.

the European Commission, Andrej Plenković, Prime Minister of the Republic of Croatia, and Zoran Tegeltija, Chairman of the BiH Council of Ministers. In her speech at the opening ceremony, Ursula von der Leyen stated that “The purpose of a bridge is to connect and build bridges between peoples, nations, countries, cultures which is so important for our common future.”

•

c) Railway line Dugo Selo – Križevci

The reconstruction of the railway line at the transport hub between Dugo Selo and Križevci will contribute to the electrification of the line and the construction of a second track. The project is worth 1.517 billion kuna (201 million euros), 85 % from the European Regional Development Fund.

EVENTS ORGANIZED BY THE EUROPEAN COMMISION REPRESENTATION IN CROATIA

POLITICS

JUVENES CONTEST

One of the most successful projects of the European Commission Representation in Croatia is certainly Juvenes Translators. The project brings together secondary school students interested in learning official languages of the European Union. The project aims to encourage young people to actively learn languages and to acquire the knowledge and skills they will benefit from in the translation process. So far, participants in the programme are from different types of secondary schools from all over Croatia. The students have demonstrated their excellent ability to actively use foreign languages when translating from and into different European languages.

BELC – „Building Europe with local stakeholders“ Building Europe with Local Councillors (BELC) was launched by the Europe - an Commission. The aim of the project is to encourage cooperation between European institutions in which European policies are designed and shaped and local stakeholders at the level of national governments (local and regional self-governments) who implement those policies. The outcome of the project is to bring together different European experiences in the implementation process together with learning from good practices.

˝Consumers Dialogue˝ European consumer policy is a comprehensive policy through which the European Union has regulated consumer rights in the EU. This policy protects personal information and ensures consumer protection in the purchasing process. Modern ways of doing business require rapid adaptation of both the business sector and citizens. Dynamic economic changes are addressed by the challenges of digitalization and the green transition, which the European Commission places high on the agenda. It is therefore important to

inform consumers about their rights and obligations in modern ways of shopping.

Remaining activities by the Representation outside Zagreb - (EU Beach CleanUp, InvestEU (Challenges of Europe in Brač)...) The EU Beach CleanUp is a longstanding project of the European Union with a global reach which Croatia has joined. The project aims to raise awareness of the importance of protection of the environment and access to green spaces in order to improve everyday life for citizens of the European Union. The project guidelines are in line with the values and policies advocated by the EU, namely unity, resolve and the green transition. The project aims to encourage citizens to actively participate and act in the process of change, thereby strengthening civic participation in the local community and developing a democratic culture.

Challenges of Europe Conference on Brač - The Challenges of Europe Conference is a traditional event bringing together relevant actors in the chosen field of the conference. The European Commission Representation in Croatia participated in some of the events. At the conferences, we had the opportunity to share first-hand experiences on past successes and to look into the future in a European context. The conference is specific to speakers from the EU but also to speakers from non-EU countries, which provides a global perspective

Euro Conference - In 2023, the European Commission participated in the organization of the conference: Croatia 20th euro area member in the National and University Library in Zagreb. The conference was attended by high-level government officials, as well as by the EP rapporteur for the adoption of the decision on Croatia’s accession to the euro area, Siegfried Muresan, the Managing Director of the European Stability Mechanism, Pierre

Gramegna, European Commissioner for Economy Paolo Gentiloni, and Executive Vice-President of the Commission for Economy Valdis Dombrovskis. The conference discussed the impact of the introduction of the euro as an official means of payment in Croatia, highlighting the many benefits of Croatia’s accession to the common monetary area.

EXPO Dubrovnik - The central event of Dubrovnik-Neretva County organized by the European Commission Representation in Croatia is the EXPO fair. The aim of the most recent EXPO 22 was to promote the European Year of Youth, a project by which the European Commission drew attention to supporting young Europeans who will soon enter the labor market and who have been affected by the consequences of the humanitarian and global health crisis. Dubravka Šuica, Vice-President of the European Commission for Democracy and Demography,

advocated for the launch of the project in the Dubrovnik region and the need to integrate the Croatian south with the rest of the EU.

European Day of Languages - On September 26th each year, the European Day of Languages is celebrated. On that day, the European Union celebrates the linguistic and cultural diversity of the 27 Member States in which 24 official languages are spoken. On the occasion of the European Day of Languages, the European Commission Representation in Croatia organizes an annual event that attracts many citizens. In cooperation with the embassies of the Member States of the European Union in Croatia, citizens have the opportunity to learn basic language phrases in the official languages of the European Union through a short ‘speed dating’ form, thus better connecting with nationals of other Member States and sharing their own experiences.

EU Pub quiz- One of the activities organized by the European Commission Repre entation in Croatia were quizzes. The aim of their organization wass to bring citizens together at a common table in a relaxed atmosphere. In doing so, citizens had the opportunity to become more acquainted with the European Union and its historical, political, economic and cultural significance in a highly popular entertainment form. Participants in the quizzes had a good time and went home with new knowledge, experiences and symbolic awards prepared by the European Commission Representation in Croatia.

Creative Europe - Creative Europe is part of the EU’s cultural policies that encourages cross- border cooperation while spreading European values. The initiative creates a network of artists and encourages the construction and development of different aspects of cultural and creative industries. The initiative supports

the European Capitals of Culture, the European Heritage Label, the European Prizes for Literature, Architecture, Heritage Protection, Cinema and Pop and Rock music. Since 2016, a public financial instrument with 121 million euro has been available. The Europa Nostra (European Prize for Cultural Heritage) programme is also an integral part of the initiative. Each year, the programme awards the cultural heritage prize to institutions of important historical and cultural significance that require restoration and revitalization. The project strves to improve the approach to the historical heritage of Member States. In Croatia, twelve institutions obtained a diploma with the abovementioned status: The Chapel of St. Ivan Trogiranin, ancient Istrian town of Monkodonja, Episcopal palace in the Euphrasian Basilica, Cathedral of the Assumption of the Blessed Virgin Mary, Rab Croatian Apoxyomenos….

ELES crossed the boundaries of the known and took responsibility at

a crucial

time

When creating the project and building the consortium, we always look for the benefits for partners and broader society

M.SC. UROŠ SALOBIR

Director of the Strategic Innovation Department at ELES

For Diplomacy&Commerce magazine M.Sc. Uroš Salobir, Director of the Strategic Innovation Department at ELES, Chair of the Research, Develop-

GREENSWITCH IS ESSENTIAL FOR ELES AND ALL CITIZENS OF SLOVENIA

ment, and Innovation Committee for the European Network of Transmission System Operators for Elec-

tricity ENTSO-E, vice-chairman of the EGVIAfor2zero association, vice-chairman for the Slovenian

Committee of Electric Power Engineers CIGRE-CIRED and the CoChair of the Joint Task Force »Digitalizing the Energy System – Eu Action plan« between ENTSO-E and EU DSO Entity  says that the best answer to all the global and current challenges of electricity risks is cooperation. But not just

collaboration among stakeholders in the energy sector but also partnerships with stakeholders from other sectors on the path of intense electrification. We must collaborate to find the optimal solutions for a successful green transition. This collaboration can result in innovative solutions.

Where does your enthusiasm for innovation come from? How long have you been Chair of the Research, Development, and Innovation Committee ENTSOE, and how much does the new function mean to you?

I never thought that I would end up working in the sphere of research and innovation. After working at ELES for more than 20 years in the operations and asset management division, our CEO, Aleksander Mervar, convinced me to go into research and development. I admit that I underestimated this area at the time. I still don‘t know how our CEO recognized my potential…,which I see today as the best I have given and received from ELES. I sincerely doubt I could have worked better in any other environment. I have been involved in the ENTSO-E work for years now. Before, I was a member of different working groups, but in the last few years, I was more and more involved in the work of the Research, Development, and Innovation Committee. Four years ago, the committee members entrusted me with the role of the committee‘s vice-chair, and at the end of June, I was appointed Chair of the RDIC. Of course, I was truly honored by this appointment, as this is a sign of recognition of the past good work. But, on the other hand, such a function also represents a great responsibility because we are now at a time when operators of transmission systems are making great efforts to transform the European power system into an integrated system that will be able to bring more and more green energy to businesses and households and, finally, contribute towards meeting our de-fossilization goals.

How do you build such successful consortium groups that you achieve the best-rated European international projects with them?

ELES had lengthy preparation for all these projects. We crossed the boundaries of the known and took responsibility at a crucial time. For example, FutureFlow was a research project with four system operators and partners such

as SAP. All these players believed in ELES‘ project idea, entrusted us with its management, and we completed the project excellently… In the NEDO project, on the one hand, we started building successful cooperation with the Japanese partners, who were unknown to us at that time.  On the other hand, we involved many stakeholders from Slovenia, and the project ran in several locations throughout the country. Therefore, it was justifiably called a national project, which made it unique in Europe. We have contributed much to the broader society with these projects and received even more in return. And, no less important, these achievements opened many opportunities for us.

You are successfully breaking the stereotype that 100% stateowned companies cannot be innovative breakthroughs. Do you often receive feedback that you are at the top of those illustrious professionals who succeed in this?

Every company that wants to succeed in the long run has to be innovative. And state-owned companies aren‘t an exception. But, of course, as always, some companies

are more progressive than others. After successfully finishing a few high-profile international projects, decision-makers and other important Slovenian and European stakeholders see ELES in innovation and new technologies differently than in the past. And we are proud of this.

As director of the Strategic Innovation Department at ELES and co-chair of the joint »ENTSO-E / EU DSO Entity« Task Force on Digitalization, which is only part of what you are in charge of, you deal with the issue of GreenSwitch. Explain to our consumers why GreenSwitch is essential for ELES and all citizens of Slovenia.

Distributed renewable sources, increased peak consumption by electric vehicles, and heating have recently become challenging due to the rise in power flows on the distribution and transmission grid. Operators are, therefore, now facing higher investment needs. With partners from Austria, Croatia, and Slovenia, we have balanced the opportunities and risks associated with a modern cross-border approach to grid development and

decided that, due to extraordinary challenges, limited resources, high compatibility, and interconnections, we could be more efficient by solving the problems together in international cross-border collaboration. We proved this already by successfully finishing the stateof-the-art smart grid SINCRO.GRID project. In short, large-scale deployment of renewable generation will depend on efficient deployment of grid capacities. This is where the team of ELES tries to be the best.

Representatives of the GreenSwitch project consortium and the European Executive Agency for Climate, Infrastructure, and the Environment solemnly marked the signing of the grant agreement under the Connecting Europe Facility program in the presence of the European Commission‘s officials. What does the program include, and what is the value of the project?

Well, it all started in 2021 when a group of companies from Austria (Kärnten Netz), Croatia (HEP-ODS, HOPS), and Slovenia (Elektro Celje, Elektro Gorenjska, Elektro Ljubljana, ELES) began preparing a project that will enable a faster green transition of the energy sector, better integration of renewable energy sources and more efficient use of the existing energy infrastructure. As a result, on November 19, 2021, the project was listed on the 5th

FUTUREFLOW WAS A RESEARCH PROJECT WITH FOUR SYSTEM OPERATORS AND PARTNERS SUCH AS SAP

PCI list in the field of smart grids. The project was, therefore, eligible to apply for funds through the EU funding instrument Connecting Europe Facility, and the consortium prepared the proposal. In the evaluation process, the European Commission assessed that GreenSwitch would significantly contribute to solving the challenges associated with the green transition and granted the consortium 50% co-funding of the investment worth 146.2 million euros.

With the project, we will increase the transmission grid‘s controllability, expand the existing network‘s hosting and cross-border capacity, and improve the utilization of existing MV/LV transformers. Successful implementation of the project will also enable up to 10 % lower peak demand using flexibility sources and up to 6 GWh heat production per year from 11 power transformers. And in Slovenia, we will also prepare the grid connection for heavy-duty and fast charging stations at two locations.

Digitization, i.e., the introduction of already established technology, project SINCRO. GRID, into the Slovenian and Croatian power system in an innovative way - compensa-

THE SINCRO.GRID PROJECT WAS INNOVATIVE AS IT WAS THE FIRST EUROPEAN PROJECT THAT INTRODUCED DIGITALIZATION IN ENERGY INFRASTRUCTURE AND, THEREFORE, WAS THE FIRST SMART GRID INFRASTRUCTURE PROJECT

tion devices. , battery energy storage and a system for determining working limits is an important project you are dealing with. What does it precisely foresee, and how is the digitization of the system carried out?

The SINCRO.GRID project was innovative as it was the first European project that introduced digitalization in energy infrastructure and, therefore, was the first smart grid infrastructure project. Project partners innovatively integrated already-established technologies – compensation devices, battery energy storage systems, and the dynamic line rating system – into the Slovenian and Croatian electricity network.

Another important novelty was setting up the ELES–HOPS Virtual Cross-border Control Centre (VCBCC) for coordinated and controlled centralized representation of RES

production and system variables of Slovenian and Croatian HV and MV networks to allow power system optimization in the whole control area. The VCBCC consists of numerous IT and TC solutions that enable data acquisition from RES, improving energy network observability and more accurate estimation/forecasting of renewable energy sources production. Additionally, advanced solutions were implemented at the control centers. These include an IT platform for the integration of prosumers in ancillary services, a communication platform for operational data exchange between transmission and distribution system operators, an upgrade of the metering system to support modern data exchange based on the latest standards and a developed algorithm for the solar production forecasting tool and modernization of the ICT infrastructure.

Installation of these devices and implementation of the Virtual cross-border control center (VCBCC) achieved the goal of voltage profile control and the possibility of voltage regulation in the electricity systems of both Slovenia and Croatia. Furthermore, this innovation by ELES and HOPS also introduced an entirely new form of joint voltage regulation of both transmission systems. As a result, these compensation devices have improved network stability during emergencies. Moreover, their operation‘s effects have already positively impacted the transmission systems of neighboring countries.

ELES invests a lot of attention in the integration of energy systems. One of those is „The Pentlja“. What can you tell us about it, and what are the benefits for the industry you are involved in and the end users?

With the increase of e-mobility, the transport and power systems are increasingly intertwined. It is becoming clear that a sustainable transition to mass e-mobility will only be achieved if we ensure that e-vehicles are powered by energy from renewable sources to the greatest extent possible. Therefore, when, where, and how e-vehicles

will be charged is essential. Although, according to the analysis of experts, private smart charging stations will quantitatively provide 80 percent of all charging, we will need a strong network of fast charging stations that will enable drivers in transit and drivers of cargo and public transport to charge the vehicle in the shortest possible time to continue their journey. The „Pentlja“ offers a long-term solution for providing a reliable, fast charging service to all e-vehicles. The coordinated operation of this power-transport system, which ELES sees as a closely interconnected unity, will be a demanding and responsible process. The „Pentlja“ envisages optimally located fast charging parks. When choosing a suitable location, in addition to proximity to traffic routes and high-voltage transmission lines, other criteria must also be taken into account - from average annual daily traffic, multi-year traffic flows, traffic growth forecasts, spatial and environmental restrictions, and last but not least, proximity to planned parks of renewable energy sources. However, there are few such locations in Slovenia where highways and high-voltage energy grids come together, so by the legislation, they are defined as geographically limited public goods. A few such sites will be directly on the highway, but most will be near highway exits. The „Pentlja“ aims to enable reliable, secure, and low-cost charging service by optimally using the existing power infrastructure and preventing solar power production curtailment.

You stress that digitalization of the Energy Action Plan should be used to boost the breakthrough innovation that will help us solve the most pressing challenges of decarbonization before 2030 and that it is vital to choose the subjects of digitalization based on concepts such as E8. What is the aim of this concept?

Our E8 concept aims to ensure that e-vehicles are charged with energy from renewable energy sources. Today, we are used to the prices of petroleum being the same within a day and for extended periods. Nobody questions whether refueling is more economical in the morning, afternoon, evening, or night. This is not and will not be the case with electricity. The best charging price will be when there is a lot of energy from renewable sources. That‘s why we have to make sure that we make the best use of the sun‘s potential for charg-

ing e-vehicles during abundant sunshine, i.e., between 9 a.m. and 4 p.m. Therefore, even though most users are concerned about how they will charge at home, the biggest challenge is establishing a network of smart charging stations in parking lots in front of work or public parking lots where employees park during working hours. As you mentioned in your question, digitalization is the key. Charging stations must be able to communicate with the aggregators and follow the current price and the solar daily cycle. Anyone who will have the opportunity to connect their car at work to such a smart charging station will have the chance to charge much cheaper since they will be able to take advantage of the abundance of renewable energy.

You cooperate a lot with your Croatian colleagues. In which areas is the most interest in cooperation, and what are the biggest challenges today when discussing strategic innovations?

ELES needs to be actively involved in international cooperation. The Slovenian transmission power network is relatively small and closely connected to the transmission power networks of neighboring countries. The areas of collaboration and strategic innovations span between Renewable energy integration, Resilience to better cope with weather events,

electrification of transport, and defossilisation of heating.

International cooperation brings many advantages - it helps strengthen the transfer of knowledge and experience, optimizes investments,... and I could go on and on. Of course, on the other hand, such cooperation also requires a particular dedication to governance, project management, risktaking, and flexibility.

How would you evaluate the position of the Slovenian energy system concerning the environment, and what are the biggest challenges (lack of energy sources, dependence on energy sources, prices/inflation, war...)? Where is there room for improvement, and how do you see the area of innovation within ELES, given the speed of technology development, in the years ahead? What novelties can we expect?

Directions and trends in Europe are clear - abandoning fossil energy sources and replacing them with renewable energy sources (RES), less reliable and flexible than traditional thermal power plants or large hydropower plants since their production depends on the amount of sun or wind. However, for the transition to a low-carbon electric power industry, it will not be enough to produce most electricity from RES; it will also be necessary to ensure that the sources of flex-

ibility, with which system operators ensure the elimination of second by second, hourly, monthly, or seasonal deficits of renewable electricity, are from low-carbon sources.

All the changes mentioned above strongly impact the operation of transmission and distribution power network system operators. Due to the record increase in applications for the connection of new renewable sources, electric vehicles, and modern heating devices to the power grid, as well as the responsibility for the reliable operation of the power system, in the coming years, we must find new ways to accelerate electrification, while at the same time maintaining a sustainable level of power grid operation costs. At the same time, Slovenia must ensure access to RES from other countries in the region. Many estimations point to the fact that the grid in 2050 should be double the size of today‘s grid. The key challenge here is the complexity of efficient deployment of grid capacity with lengthy procedures for successful new corridor projects. Here, we enter the question of who should be the civil guardian of the power system development in the highly renewable energy system. Is it the grid operators that should fight for civil initiatives fighting against the construction of critically important infrastructure, or is it a new social group that should appear and fight for the intrinsic right of the civilization to decarbonize the power, heating, and transportation system? I firmly believe that utilities and system operators will not have sufficient power to achieve such important targets without the changes within society.

ELES NEEDS TO BE ACTIVELY INVOLVED IN INTERNATIONAL COOPERATION

Our people are our greatest asset

It's in our company's DNA to encourage diversity and inclusion

NIKOLINA ŠKARON, MD Government Affairs & Market Access Manager at AstraZeneca

Therefore through numerous initiatives and concrete actions we are strengthening the culture of Equity, Inclusion and Diversity by role modelling inclusive leadership, fostering diversity and building a trustful work environment where speak-up is encouraged, for Diplomacy&Commere says Nikolina Škaron, MD, government Affairs & Market Access Manager at AstraZeneca.  We are delivering our sustainability strategy through three priorities: access to healthcare, environmental protection, ethics and transparency, says Mrs Škaron.

What would you single out as the basic values and postulates of AstraZeneca, and to what extent is the pharmaceutical industry, in general, adapted to empower women and other groups in terms of representation and internal organization?

From global perspective we at AstraZeneca follow the UN’s Global Sustainable Development Goals and the 5th out of 17 Sustainable Development Goals is related to Gender Equality - Achieve gender equality and empower all women and girls. This being said, it’s in our company’s DNA to encourage diversity and inclusion and every employee plays active role in this process. The initiatives of AstraZeneca Balkans towards building a culture of inclusion and diversity, equality, are not just a one-off activity but a continuous strategic priority for the whole company. We believe that only through constant efforts and actions in this area we can achieve the important goal that is a part of our Sustainable development agenda as well as a key pillar in our Balkans HR Strategy the HR Strategy. The latter contains the following main streamlines: Life-long Learning, Employee Experience, Attracting talents and Diversity & Inclusion. As of today there are more than 200 female colleagues in our Cluster, around 80 ladies having joined just in the past 2 years. Also, more than 65% of the managers in AstraZeneca Balkans are women. What I would like to point too is that the culture of equity, diversity and inclusion consists of many aspects and gender equality is only one of this. We are also a role model for generation mix at work with 55% millennials and 45% gen X. In our cluster we have people from 9 nationalities collaborating and supporting each other on a daily base. For 2022 almost 60 colleagues were having a career development (lateral or vertical) and 74% of them being ladies. 81% of all employees

are with favorable response to the questions in Diversity and Inclusion category within the regular employee satisfaction survey. In AstraZeneca Croatia 11 women had their development this year (out of 21 development opportunity). In AstraZeneca Balkans we are also having employee working group, which is focused on the I&D topics. They are participating on a voluntary base and they are involving our colleagues every year in more than 10 different I&D initiatives like “Power of diversity week”, Girls belong here etc.

As a large company, AstraZeneca organizes and is part of numerous actions and projects. Which ones would you single out for our readers and why are they important?

Globally our plan is to have a negative carbon footprint by 2030. Since the beginning of this year, in Croatia we have been ordering fully electric cars, with the goal by 2025 to have

fully electric fleet. All our colleagues are actively involved in different sustainable development activities. This is also proven by the fact that over 30 causes promoting social responsibility were implemented over the past year and a half on the initiative of our employees in the cluster. Among our other activities in the Cluster are hive adoption, youth smoking prevention program and many others. This year on a global level AstraZeneca has announced a $400 million investment in our global AZ Forest programme, raising our commitment to plant 200 million trees by 2030 and ensure their long-term survival. Our Croatian team is also supporting this cause by planting different areas with trees every year. Last year we planted a thousand trees in Sljemen and thus further strengthened our commitment to environmental protection and sustainability. And we will continue sustainably to upbuild on these initiatives in order to make our environment better and healthier.

“Woman in business” is it still “exotic” or has it become our everyday life?

At AstraZeneca, we recognize that our people are our greatest asset and know what’s possible with a talented and diverse team that believes in what science can do. We believe that the big multinational companies have even higher responsibility and impact on this ambition. In Croatia in general, perception of women in business continues to change in a positive way. This can also be confirmed by the results of SELECTIO women’s index which measures the share of women in the management of companies in the CROBEX index. Namely, for 2023, the SELECTIO index of women is 22.2%, which is 9.36 p.p. more compared to last year. Also, the percentage (33.3%) of companies in the CROBEX index that do not have a single woman in their management, so called zero companies, decreased by 9.57 p.p. compared to last year.

What are your experiences on the road to success?

Growing my career in AstraZeneca, what I can say is that woman in business is everyday life in our company. In AstraZeneca I got the opportunity to work on different positions and projects, to grow and learn. I always have felt empowered and encouraged to develop my career while at the same time I am enjoying being a mother. At AstraZeneca, we are committed to being a great place to work for the benefit of our employees and our business. The company is very dedicated and fosters an environment where everyone feels valued, heard and respected as well as creating conditions for all people to succeed and thrive.

What would you highlight from the plans until the end of the year, which concern the wider population (new innovative drugs, expansion of the list of drugs at the expense of the state, some new research, price increases...)?

We are witnessing a wave of new therapeutic solutions that transform the outlook for patients in a positive direction. The share of the population over the age of 65 is increasing, which is associated with an increase in both chronic and oncological diseases. In partnership with our country’s institutions, we are working towards changing the way of thinking about healthcare to meet society’s expectations. Health care spending, particularly drug therapy, is a public investment, both in the well-being of citizens and in our economic future. Better health leads to prosperity. Healthier people enjoy longer and more productive working lives and spend less on health care. Among AstraZeneca’s top priorities is providing more patients with access to innovative therapies.

THIS YEAR ON A GLOBAL LEVEL ASTRAZENECA HAS ANNOUNCED A $400 MILLION INVESTMENT IN OUR GLOBAL AZ FOREST PROGRAMME, RAISING OUR COMMITMENT TO PLANT 200 MILLION TREES BY 2030 AND ENSURE THEIR LONG-TERM SURVIVAL.

TAJANA KESIĆ ŠAPIĆ Head of Industry Division HGK

The European industry has been in a never more challenging period for some time now; changed geopolitical circumstances, rising energy prices, disruptions in global supply routes and the European Green Agenda are putting European manufacturers and industrialists in front of numerous challenges and dilemmas.

European and Croatian industry sectors are currently facing a drop in demand, higher costs and the question of how to implement the green transition while simultaneously preventing the dissipation of industrial, i.e., technological base, without which we cannot confront climate change. In accordance with the size of domestic economy on the scale of the European Union, the Croatian industry sector is of modest volume, but despite the challenges, the turbulent year of 2022 brought positive results as total revenues and exports grew. Nevertheless, the upcoming period should be viewed with caution, because due to the global decline in demand, there was also a slowdown and decline in production in key European markets.

According to DZS’ indicators, total seasonally and calendar-adjusted industrial production in Croatia in June 2023 increased by 2.0% compared to May 2023, while in June 2023, compared to June 2022, calendar-adjusted industrial production in Croatia increased by 2.4%. If we look at the results for the first 6 months of this year compared to the same time period in 2022, there is a visible drop in industrial production of 0.8%. The following stand out as the main generators of activity in June with double-digit growth in the observed period (June 2023) compared to June 22; Production of basic pharmaceutical products and pharmaceutical preparations 46.8%, Production of finished metal products, except machines and equipment 26.7%, and Production of electrical equipment by 25.8%. Employment is at a high level, but it would be even higher if the labor market could respond to the industry’s needs for workers. With the aim of retaining workers, almost all sectors increased wages last year, which made employers face additional temptations, because qualified labor, along with sustainable management of labor costs, are key elements for maintaining competitiveness.

Time has come for a new industrialization

On the expenditure side, the European industry is also faced with a whole series of European regulations that were introduced in order for the EU to achieve the ambitious goals of green and digital transition. The most strategically important component of the green transition for Croatian companies, and according to the analysis of the Croatian Chamber of Commerce and Apsolon on the readiness of domestic companies for the green transition, is the necessity to increase the share of renewable energy sources.

In order to test the readiness for the new economic paradigm, HGK and Apsolon conducted a new survey on the readiness of Croatian companies for a green transition on a sample of 165 economic subjects. The first survey was conducted in 2021. This year’s survey showed a positive shift in the perception of entrepreneurs compared to 2021, since more than 60% of respondents perceive the green transition positively or extremely positively, while in 2021 almost no one did so. The result is expected if we put it in the context of business expectations and the environment in 2021, which heralded the end of the pandemic and the stabilization of supply chains. The

crisis in Ukraine and a dramatic increase in energy prices were not likely, and the climate agenda was not so much in focus for businessmen as economic recovery after the pandemic.

To that extent, a positive shift can be observed compared to the year 2021, when only 27.1% of respondents started with intense preparations compared to this year, when 52.52% of the respondents stated that they started with the green transition, and 13.67% plan to do so in the next 6 to 12 months. Only 5.04% have no intention of starting the preparations at all, which can also be considered a progress compared to 2021, when more than 10% of respondents chose that option. The above results show that the Croatian, as well as the European industry, is at a turning point. The new and stricter regulatory framework, the security of energy supplies, but also the increasing awareness of climate changes that are not happening “elsewhere”, but here and now, are accelerating the aforementioned changes.

SHARE IN PROCESSING INDUSTRY IN 2022 BY TOTAL REVENUE BY INDUSTRY

Since European industry must make a turn towards green, sustainable and digital business, it is necessary to continuously inform businessmen about current changes in the legislation, challenges of the transition period, but also opportunities that can ensure long-term stability and development for the relatively small Croatian industrial base. In order to get answers to at least some of the questions, the Croatian Chamber of Commerce is organizing the conference “Vrijeme je za industriju” on October 3 in Zagreb, where we want to open a discussion about the need to accept a new economic paradigm and the challenges that await us on the way towards green and digital transition of European industry.

THE EUROPEAN INDUSTRY IS FACING A SERIES OF EUROPEAN REGULATIONS THAT WERE INTRODUCED IN ORDER FOR THE EU TO ACHIEVE AMBITIOUS GOALS OF THE GREEN AND DIGITAL TRANSITION

Service to investors and to the benefit of the local community

Center is pivotal in collecting, managing, and analyzing business zone data in Zagreb County

MARKO IGNJATIĆ

Interim CEO of Zagreb County Entrepreneurship Center

Investing is crucial for financial growth and security, allowing wealth accumulation and a safety net. It yields passive income, diversifies portfolios, and safeguards against uncertainties, for Diplomacy&Commerce says Marko Ignjatić, interim CEO of Zagreb County Entrepreneurship Center. With its favourable location, skilled labour pool, diverse zones, and incentives, Zagreb County beckons investors to Croatia, creating a conducive environment for varied industries.

You are at the helm of the Zagreb County Entrepreneurial Center. Please tell us the Center’s purpose and how it operates.

The Zagreb County Entrepreneurship Center is committed to fostering a customer-focused entrepreneurial ecosystem in Zagreb County. It leads county and local government development efforts, aiming to enhance residents’ quality of life and boost job creation by nurturing small and medium-sized businesses in manufacturing, agriculture, and tourism.

The Center drives diverse entrepreneurship development programs, including Croatia’s Rural Development Program. This initiative strengthens rural areas and agriculture in Zagreb County and nationwide.

Additionally, it acts as a vital communication link with the community and businesses, publishing the County Chronicle, a free informational digest. This publication covers county life, governmental activities, education, healthcare, and success stories of entrepreneurs and farmers who have secured non-repayable funds. It also disseminates public tender and call information for legal entities and residents.

What would you highlight as crucial when asked - why invest?

Despite the risks, the rewards are significant. Setting goals, gauging risk tolerance, and planning longterm is vital for success. Investments also benefit communities, creating

jobs, reducing unemployment, and stabilizing families. They boost local economies, spurring demand for local goods and services, aiding small businesses, and increasing tax revenues for better infrastructure, education, healthcare, and public services. Moreover, they foster educational programs, elevate the workforce, and enhance overall quality of life.

What are the advantages of investing in Zagreb County and the additional benefits investors can expect?

Investing in Zagreb County offers numerous benefits for investors. Its exceptional transportation connectivity, including highways, railways, and airports, provides efficient access to European markets, making it a strategic logistics hub. The proximity to Croatia’s capital, Zagreb, enhances collaboration opportunities. With a

diverse network of entrepreneurial zones across cities and municipalities, investors can choose from various locations for projects of all sizes. Zagreb County’s rapid economic growth and supportive business environment, including incentives, administrative assistance, and expert project support, make it an ideal destination for realizing business ambitions. Leveraging its strategic location and regional support, investors can thrive here.

What sets you apart, and what would you identify as your advantage compared to other regions in Croatia for investment?

For several compelling reasons, Zagreb County, situated in central Croatia, is a prime investment hub. Its strategic location at the nexus of vital transportation networks—roads, rails, air, energy, and infrastructure—

provides swift access to Croatian regions and European markets. The county envelops Zagreb city, fostering seamless collaboration with the capital’s business community.

Within a 50-kilometre radius, Zagreb County benefits from a skilled workforce nurtured by nearby scientific institutions. Highways coursing through the region and proximity to Franjo Tuđman Airport make it an entrepreneur’s dream, with wellplaced zones easing distribution logistics.

Numerous renowned retail chains have set up shop in these zones, affording investors direct access to markets. Zagreb County caters to projects of all sizes, boasting over fifty versatile entrepreneurial zones. Municipalities here offer financial incentives, reduced contributions, and infrastructure support, simplifying business operations.

What needs to be added, and where is there room for improvement regarding the conditions offered to investors?

To enhance Croatia’s appeal to investors, several critical improvements are needed. Streamlining administrative processes and fostering interdepartmental collaboration is crucial. Accelerating permit approvals, possibly with a 60-day deadline, showcases government dedication to supporting investors. Personalized assistance for investors navigating administrative procedures is essential.

Investment in infrastructure, including housing, transportation, and logistics, is vital for smaller communities. Collaboration between local communities and investors is necessary to create suitable conditions for workers relocating from significant cities. Efficient regional and public transportation networks are pivotal for distributing investments. Mobilizing a broader workforce, such as retirees and students, can alleviate labour shortages. Simplifying tax regulations and health insurance can encourage occasional work. These administrative, infrastructure, and regulatory enhancements can realize Croatia’s potential as an attractive investment hub.

WE ACTIVELY ATTRACTS FOREIGN INVESTMENTS THROUGH ITS INVEST INFO CENTER.

Miele wine units offer exceptional storage conditions for your favourite wine

Wine is poetry bottled” said the novelist Robert Louis Stevenson. During the life and times of the great Scot, there were undoubtedly many wine cellars around offering good storage conditions. Nowadays, things have changed and wine units from Miele raise wine storage in modern times to new heights.

Perfect wine storage demands ideal conditions: humidity kept at an ideal level, protection against harmful UV light and ambient odours as well as temperature fidelity and vibration free storage. These conditions are met by Miele freestanding and built-in wine units, comprising wine conditioning units with one up to three zones. All units meet the highest demands on functionality and aesthetics. Popular and exclusive features such as the SommelierSet take the user convenience to the next level.

HUMIDITY AS KEY CRITERION

The correct humidity plays a key role above all when storing wine over an extended period of time. It keeps natural cork moist and hence stable. This prevents wine from oxidising or even leaking from bottles stored horizontally, making a dry or crumbling cork even more fatal. On the other hand, the moisture should not be too high as it otherwise accelerates the formation of mould on labels or in corks. Ideally, the humidity should be between 50 and 80 per cent.

This is why, Miele is further developing wine units with the new generation of models, which are equipped with ActiveHumidity without exception. This feature will not only ensure optimal humidity but will also offer the opportunity to set the relative humidity individually in increments – either via the Miele app or at the unit itself. To prevent the formation of condensate on the inner rear panel, wine units will additionally feature a ‘dry liner’ made from elegant BlackSteel or stainless steel (depending on the model).

GUARANTEEING UV PROTECTION

Protection against UV radiation is as important as humidity. The coloured glass from which the bottles are made does not provide adequate protection to wine. For that reason, all Miele wine conditioning units are equipped with UVblocking glass doors. Similarly, the atmospheric LED lighting is UV-free.

QUIET STORAGE WITHOUT HARMFUL INFLUENCES

The low-vibration compressor contributes towards gentle storage. This motor is particularly smooth-running and quiet. This is important as vibration and shuddering interferes with sedimentation on red wines and can even result in oxidation as a result of corks becoming loose. The chemical composition of the wine can even

change. Low-vibration storage prevents all this and contributes towards preserving flavour and character.

The wooden shelves are highly versatile, offering a secure hold to a variety of bottle sizes. They consist of wooden slats which can be

rearranged at the flick of a wrist. This even accommodates magnum bottles or ones with a long neck.

A constant storage temperature is also a crucial factor: To allow wines to mature in peace, Miele wine units naturally guarantee temperature fidelity – with temperatures between 5°C and 20°C individually selectable to cater for personal preferences. And to prevent unpleasant odours from spoiling the wine experience, an active charcoal filter (Active AirClean) prevents any ingress, thereby ensuring an unalloyed aroma.

PRESENTATION IN STYLE

To celebrate wines in style, the freestanding model with three temperature zones is the product of choice, available with the SommerlierSet, and only to be had from Miele. This consists of a pull-out and removable tray with a non-slip silicone mat, a pull-out glass holder for four glasses, a bottle presenter and an accessory box. In addition to this, there are bottle boxes in which opened bottles can not only be placed but also securely stored.

NEW WINE STORAGE UNITS

With the new generation of freestanding units, Miele will offer a wine storage units not only with two and three but also with only one temperature zone. The new freestanding wine units are expected to be launched in the second quarter of 2024. All models in the current offer can be experienced in our Miele Experience Centres in Zagreb and Split.

For more information about Miele wine units please visit www.miele.hr.

Miele wine units offer exceptional storage conditions to protect and maintain select quality over time

PLEASURE IS ONE THING; THE PRESENTATION OF HIGH-QUALITY OF WINES ANOTHER.

Discover the Hidden Gem of Boka Bay – One&Only Portonovi

As soon as you arrive at One&Only Portonovi, the first One&Only in Europe, you will be greeted with warm Montenegrin hospitality and Mediterranean aesthetics infused with a perfect dose of contemporary elegance.

At the meeting point of the Adriatic Sea and rugged mountain ranges, on the picturesque coastline guarding the medieval towns of Perast and Kotor, awaits a tranquil and relaxing retreat from the bustle of city life.

One&Only Portonovi offers you all the charms of the Adriatic at your fingertips. In our bright and tastefully designed rooms, spacious apartments, and magnificent vil-

las, each day of your vacation will begin with a breath of fresh sea air and panoramic views of Boka Bay. Whether you want to dive into the crystal-clear depths of the Adriatic or enjoy a cocktail on the fine white sand, our private beach is the perfect place for beautiful moments that will become unforgettable memories. In addition to the stunning private beach, you also have access to six pools that you can choose

according to your current mood – from relaxing family pools to a 26-meter indoor pool.

At One&Only Portonovi, we believe that a vacation is for both the body and the soul. Chenot Espace represents the first wellness concept of its kind a transformative journey of detoxing and resetting the body based on the renowned Chenot Method®, combining the latest achievements of Western medicine with the best practices of alternative therapy.

The enchanting ambiance of our restaurants and healthy, delicious dishes perfectly complement the enjoyment of the Adriatic’s beauty. Whether your choice is Japanese fusion specialties from Tapasake, authentic Italian cuisine at Sabia, or traditional Montenegrin fare at La Veranda Montenegrin Steak House, dining at One&Only Portonovi will awaken all your senses.

With 113 rooms, suites, and villas, and 10 Private Homes, One&Only Portonovi provides a re-

ABOUT THE ONE&ONLY BRAND

Created exclusively for the ultra-luxury market, One&Only is conceived as a hallmark of excellence. Located in some of the most beautiful destinations in the world, each award-winning resort offers guests a distinctive style and uniqueness rooted in local culture, genuine hospitality, and unmatched life energy. The exclusive collection includes the recently opened One&Only Portonovi in Montenegro; One&Only Reethi Rah in the Maldives; One&Only Le Saint Geran in Mauritius; One&Only Royal Mirage and One&Only The Palm in Dubai; One&Only Palmilla and One&Only Mandarina in Mexico; One&Only Cape Town in South Africa; Emirates One&Only Wolgan Valley in the Blue Mountains of Australia; One&Only Desaru Coast in Malaysia; One&Only Nyungwe House and One&Only Gorilla‘s Nest in Rwanda. Additional resorts in development include One&Only Kea Island in Greece and One&Only One Za‘abeel in Dubai, as well as One&Only Private Homes communities worldwide. More information about the One&Only brand is available at oneandonlyresorts.com.

laxing ambiance, professional and friendly staff, world-class cuisine, and comfortable accommodations, One&Only Portonovi provides an inspiring environment for all types of corporate events. Our expert team and three spacious venues will create the perfect atmosphere for your meetings and conferences, and our corporate retreat offer brings a range of benefits for you and your team.

Embrace this unique opportunity for your next corporate retreat, available for reservations from September 15th to March 31st 2024, with a minimum two-night stay. As part of this one-of-a-kind experience, unwind and rejuvenate at our Chenot Espace, where relaxation takes center stage, enjoy flexible check-in options, access to our hotel gym, sauna, and indoor pool, along with an array of delightful perks.

One&Only has never been closer, seize the opportunity to provide your team with an unforgettable experience that will boost team spirit to the highest level.

THE ENCHANTING AMBIANCE OF OUR RESTAURANTS AND HEALTHY, DELICIOUS DISHES PERFECTLY COMPLEMENT THE ENJOYMENT OF THE ADRIATIC’S BEAUTY.

Before the purchase, the seller and the buyer can sign a preliminary contract for purchase and sale of real estate.

PETAR PETRIĆ, ATTORNEY-AT-LAW, PETRIĆ & KAJIĆ LAW FIRM LLC

Preliminary contract for purchase and sale of real state – the importance of provisions on price, down-payment and cancellation fees

The preliminary contract defines the real estate that is the subject of purchase and sale, and determines the purchase price, the date of conclusion of the final contract, and the payment of down-payment for the property can be agreed upon.

The question often encountered in practice is: I concluded a precontract on the purchase and sale of real estate, I paid for an apartment that is still under construction, and then when the apartment was finished, the seller (investor, builder) raised the price so much that we could not agree to it. What can we do to make sure that we will get the apartment at the price we gave a down-payment for.

In reality, it happens quite often that the seller calls the buyer and tells them that the price will, unfortunately, be higher by 30 or more percent than the price that was arranged by the Pre-Contract for purchase and sale. If the buyer cannot agree to this price because it’s high, the seller can return double the down payment to the buyer and sell the apartment to someone else at a higher price. This can be done without any violation of contractual provisions if the seller and the buyer signed a classic contract where you agreed on the down-payment, and it was additionally stated that the down-payment is contracted as a cancellation fee. When the seller offers the buyer a contract with such a contractual provision, he can proceed in the specified manner without the risk that he cannot do it without the buyer’s consent and then sell the apartment at a higher price and make additional profit. How is this possible? What can the buyer do to prevent such a scenario which is unfavorable for them.

The buyer can oblige the seller in the preliminary contract on purchase and sale of real estate to sell him the apartment at the agreed

price, by signing a preliminary agreement where the downpayment will not be contracted as a cancellation fee and where there is no back-up exit plan such as conditions for withdrawing from the contract. These are pre-contracts in which there is no possibility for the seller to withdraw from the contract and pay a double down payment to the buyer.

Therefore, if the buyer wants to avoid such a sequence of events, it is important that the preliminary contract does not mention the cancellation fee.

And if the seller nevertheless wants to withdraw from the contract, then the buyer can sue him for damages, that is, he can ask for the conclusion of the contract.

If, on the other hand, both parties in the Pre-Contract agree on the possibility of withdrawing from the contract and a down-payment as a cancellation fee, then they can withdraw from the contract by leaving a down-payment or returning a double down-payment, and that’s all.

It is often not very clear, especially to the buyers, what is the difference between down-payment and cancellation fee and the option to withdraw from the contract.

A down-payment is a specific amount of money or some other thing that one party gives to another, as a rule, when concluding a contract. There is no down payment prescribed by law, and it usually amounts to 10 percent of the contracted price. When a downpayment is contracted as cancellation fee in the pre-contract, if the buyer cancels, the seller keeps the down-payment, and if the seller cancels, the seller must pay double the down-payment to the buyer. If the contract is fulfilled, the party that received the down-payment is obliged to return it or the downpayment is included in the purchase price.

If the party that paid the downpayment is responsible for breach of contract, the other party can request:

• execution of the contract, if possible,

• damage compensation, and calculate the down-payment as part of compensation or return it, or

• be satisfied with the down payment received.

If the party receiving the downpayment is responsible for breach of contract, the other party can request:

• execution of the contract, if possible, or

• damage compensation and return of down-payment, or

• return of double down-payment.

The point of contracting a downpayment in the pre-contract is to increase security for concluding the main contract, but when the downpayment is not contracted as a cancellation fee (when it is contracted as a cancellation fee, this must be pointed out and a provision is made that the parties can withdraw from the contract), then the parties cannot withdraw from entering into a contract while leaving a down payment to the recipient of the down payment, but they can ask for some of the above, i.e. the execution of the contract, conclusion of the contract, or compensation for damages, and of course if they are satisfied with that, then they can be satisfied with the received down payment.

In practice, most pre-contracts that sellers provide for signing have the so-called exit plan, i.e., cancellation fee. Sometimes, it pays more to the seller to pay the initial buyer double the amount of downpayment and sell the already built apartment to the new buyer at a price that is much higher than the price previously agreed with the initial buyer. Even when they return double the down-payment, the seller made a profit in general. The situation on the market is currently such that for new apartments in good locations, buyers often agree to conditions offered by sellers, regardless of all the risks, but they sometimes have to wait for safer and more favorable conditions. We cannot blame the sellers who protect their market interests for such scenarios, but such a situation is currently the reality of the real estate market. Inflation affected all industries, including construction. Labor and material costs have increased, and ultimately, in most cases, the majority of the burden is borne by the customers. What remains is for buyers to seek legal assistance when entering into pre-contracts and contracts for purchase and sale and to reduce or avoid uncertainty and risks before they suffer damages.

LUXURY ASSURED:

JLR ANNOUNCES FIVE-YEAR WARRANTY ACROSS ALL NEW RANGE ROVER, DEFENDER AND DISCOVERY MODELS

Afive-year manufacturer warranty on all new Range Rover, Defender and Discovery models started from 1st September 2023. The initiative will give clients added assurance and peace of mind when with choosing a vehicle from one of JLR’s luxury brands.

• Warranty promise for Range Rover, Defender and Discovery brands extended from three to five years or 150,000 kilometres, whichever comes first, from 1st September

• All Range Rover, Defender and Discovery models are covered, including mild hybrid and plug-in Electric Hybrid examples

• Initiative applies to all models throughout Europe and aims to optimise the ownership experience for clients, bringing the brands into line with Jaguar

• Initiative will also see owners benefit from five years of InControl Remote connectivity from 1st September

The new warranty promise applies to all models throughout Europe and extends the existing three-year warranty to provide protection for up to five years or 150,000 kilometres – whichever comes first.

As a result, clients will be comprehensively protected by the warranty and continue to ben-

efit from the highest quality of service for longer than ever.

In addition, Range Rover, Defender and Discovery clients will also enjoy InControl Remote connectivity for five years or 150,000 kilometres, which provides added convenience and organises assistance in the event of an emergency – in keeping with the modern luxury brand experiences that JLR aims to provide.

Three-year warranties are standard within the automotive industry, so the introduction of a five-year policy ensures Range Rover, Defender and Discovery are going beyond for their clients. All models from each of the brands will be covered by the new five-year warranty, including mild and plug-in Electric Hybrids, from 1st September 2023.

The new warranties mean clients across the JLR house of brands will enjoy the same level of protection, as Jaguar models have benefitted from a fiveyear warranty since 1st July 2022.

The extension of the existing promise aims to improve the service experience of clients and owners during the cover period, while also allowing both private users and commercial operators to transparently calculate maintenance and operating costs over a longer period.

The new five-year warranty will improve the ownership experience and promises to have a positive impact on the residual values of the Range Rover, Defender and Discovery models. This will, in turn, provide benefits when marketing pre-owned examples. In the longer term, higher residual values bring down the cost of ownership by driving more competitive leasing and finance terms.

The extended access to InControl Remote connectivity will also be available from 1st September for all newly registered models. It allows users to interact with their vehicle effortlessly and intuitively, even over long distances. The smartphone app can be used to check the remaining fuel level and state of charge and to see whether doors and windows are closed or open. InControl Remote also optimises roadside assistance and automatically sends an emergency call if necessary.

JLR’S NEW FIVE-YEAR WARRANTY WILL APPLY IN ALL EUROPEAN MARKETS FROM 1ST SEPTEMBER, RAISING SERVICE QUALITY ACROSS THE CONTINENT.

T

he Old Tobacco Factory in Rovinj gathered a record number of visitors who had the opportunity to participate in top lectures and hear everything from leading regional and world experts about the current topics and trends of today, with an inevitable dose of great socializing and fun. Among them were topics about the coexistence of PR people and journalists, controversial entrepreneurs, the influence of artificial intelligence, the trap phenomenon, but also business failures recorded by successful entrepreneurs on their development

path. “Weekend.16 exceeded all expectations! It was fantastic to once again enjoy the incredible atmosphere, the view of the full halls and the satisfied faces of the record 6,000 visitors who enjoyed the last weekend of September. We once again proved that we are a festival – a leader in the exchange of experiences, great energy, friendship and the creation of business collaborations, but also a festival of new ideas,” said Tomo Ricov, program director of the Weekend Media Festival, which this year was also held under the general patronage of Adris Group.

t the Weekend Media festival in Rovinj, a panel titled “From GENERATION Z TO GENERATION SKI” was held. The panel attracted a great deal of attention from those present, and the speakers were the director of the Olympic Center “Jahorina” Dejan Ljevnaić and the president and founder of the Youth Sports Games Zdravko Marić, together with the moderator, director of Color Media Communications Robert Čoban, provided numerous arguments for the necessity of “Gen Z” transformation. in “Gen Ski”.On the same evening, the promotion of the second issue of “Ski YU”, the regional ski magazine, was held in the garden of the most luxurious Grand Park hotel in Rovinj. The party under the slogan “Start skiing at

sea” attracted a large number of Weekend Media Festival participants, communication professionals from the entire region, but also public figures such as actor Gordan Kičić and singer Toni Cetinski. “As I wrote in the editorial for issue 1 – I put on skis for the first time at the age of 35 and have been an avid skier ever since. That means it’s never too late!” said Robert Čoban, director of Color Media Communications, and thanked to the Jahorin Olympic Center for partnership on this joint project. Dejan Ljevnaić, director of OC Jahorina, presented his initiative to create one ski-pass that will be able to be used at all ski resorts in the region and invited all present to enjoy the charms of winter sports in Jahorina again this year.

THE 16TH WEEKEND MEDIA FESTIVAL HAS ENDED

“SKI YU”, MAGAZINE, 2ND ISSUE, PROMOTED AT THE WEEKEND MEDIA FESTIVAL

Volvo cars for easier, better and safier life

FOR LIFE. PERSONAL. SUSTAINABLE. SAFE.

From the very outset Volvo Cars has been a brand for people who care about the world we live in and the people around us. Volvo has made it‘s mission to make life easier, better and safer for everyone. For a better future. Volvo wants to provide you with the freedom to move in a personal, sustainable and safe way.

DEDICATED TO DIPLOMATS

Founded in the distant year 1927, Volvo Cars has built a strong reputation over the years as a world leader in quality, design and safety. Especially in this last area, the Swedish brand has held a downright legendary status for many decades now – due to its many breakthrough achievements, which raised the level and changed our perception of automotive safety.

As a matter of fact, Volvo Cars has been serving the diplomat community already since 1956, today offering one of the most comprehensive diplomat sales programs on the market.

DESIGNED AROUND PEOPLE

The fact is that the advantage of Volvos is not only in what they offer in general, but primarily in how much they manage to adapt to the wishes and needs of individuals. Each Volvo – as the brand itself says – is designed around people.

Let‘s illustrate this: a Volvo Diplomat customer, for example, is able to order a new Volvo, tailored to her or his unique requirements, with a premium level of service and exclusivity guaranteed. Choice can be made between a wide selection of cars and various possibilities, and there is also the option of designing a desired car in the configurator on Volvo website and using Volvo consultants to help make the right decision.

SUVS, A MORE MODERN CHOICE FOR DIPLOMATS

And while every single car from special Volvo Diplomatic Sales program is tailored to unique wishes of diplomats, there are some Volvo models that are becoming more and more desirable among the community, with growing popularity. These are the XC models, a line of exceptional SUVs that represent an alternative to more classical diplomatic cars and offer plenty advantages.

For example, the Volvo XC40 excels in driving experience and cutting-edge technology and brings lightness to journeys, while its somewhat bigger brother Volvo XC60 impresses with perfect technology, highest comfort and equipment adjusted to the lives of diplomats. Finally, there is the Volvo XC90, the most sophisticated Volvo to date that brings refined power and impeccable comfort to diplomatic travel.

In the current special offer, prepared exclusively for members of diplomatic community,

all three XC models are available under particularly favorable conditions:

• XC40 T2 128hp Core AT starting from 27.679 EUR (208.547 HRK)

• XC60 B4 (P) 197hp Core starting from 34.059 EUR (256.617 HRK)

• XC90 B5 (D) Core AT8 AWD starting from 49.709 EUR (374.532 HRK)

RECHARGE, PAYING ATTENTION TO PEOPLE AND NATURE

What has also always been the nature of thinking at Volvo are the cars that carefully look after environment. Just as diplomatic travels are often long, it is important in the long run to know how to preserve natural world.

Volvo Cars aim to be a fully electric car company by 2030, a critical step on the journey towards becoming a climate neutral business by 2040. All of us need to act to make sure the future is more sustainable, and Volvo Cars is proud to help lead the way. The time for an electrified vehicles is now.

Therefore, Volvo Diplomatic offer also always includes cars that are very protective to nature. Today, these are plug-in hybrids XC60 and XC90 Recharge that provide more power and less impact on the environment. As every Volvo, of course, they offer all the elegance and comfort on diplomatic travels. In the special offer created exclusively for diplomats these cars are available:

• XC60 T6 TwE 350hp Core starting from 50.049 EUR (377.095 HRK)

• XC90 T8 TwE 455hp Core 7s AT FWD starting from 57.990 EUR (436.625 HRK)

EX30 - SMALL SUV THAT DOES BIG VOLVO THINGS

Our new fully electric Volvo EX30 is designed to be as safe as you’d expect from us. It is de-

signed to have the smallest CO2 footprint of any Volvo car to date, and to make people’s lives safer, more convenient and more enjoyable through cutting-edge technology and Scandinavian design.

Finally, if performance is your priority, pick the Twin Motor Performance variant in which we pair the NMC battery with an additional second e-motor. This all-wheel drive variant of the EX30 provides 315kW (428hp) and takes you from 0-100 km/h in 3.6 seconds – it’s officially our fastest-accelerating car ever!

Another thing the EX30 does fast is charging. The extended-range Twin Motor variant has a charging capacity of up to 153kW, while the standard-range car has a capacity of 134kW. That means you can charge your battery from 10 to 80 per cent in a little over 25 minutes.

• EX30 51 kWh Single Core starting from 31.264€ (235.558 HRK)

FIND OUT MORE

However, the SUV selection is far from everything – as already mentioned, Volvo offers diplomats the widest possible selection of its vehicles with always the best terms of purchase.

VCAG as Volvo Car Corporation authorized importer for Adria Region, provided for You “concierge” service where in direct contact with our Fleet Manager (Mr. Matija Bilic / matija.bilic@vcag.net ) you will be guided through whole sales process and all assistance needed and possible will be provided. Please do not hesitate to ask any question you feel need clearance, all in purpose making your purchase as lean as possible.

You can read more about all the Volvo cars and the Volvo Cars Diplomatic Sales service on the website volvocars.hr, or if you prefer to contact Volvo directly, write to diplomatic.sales@vcag.net.

Because of so many positive features, proven reliability and a luxurious yet reserved Scandinavian style, Volvo soon became a popular choice among diplomats, too.

NEW AMBASSADORS OF THE REPUBLIC OF BULGARIA, THE KINGDOM OF NORWAY, THE KINGDOM OF BELGIUM, THE REPUBLIC OF KAZAKHSTAN

TThe President of the Republic of Croatia, Zoran Milanović, received the credentials of several newly appointed ambassadors: the Republic of Bulgaria, the Kingdom of Norway, the Kingdom of Belgium, and the Republic of Kazakhstan.

H. E. Iva Nikolaeva Kruleva, Ambassador of the Republic of Bulgaria to the Republic of Croatia, based in Zagreb, presented her credentials to the President of the Republic of Croatia, Zoran Milanović. The ambassador of the Republic of Bulgaria was accompanied by the daughter of the ambassador Andrea Dondur, adviser and deputy ambassador Stoyan Stankuloff, first secretary and consul Violin Markov and adviser for economy and trade Mirella Tasseva.

H. E. Arne Sannes Bjørnstad, Ambassador of the Kingdom of Norway to the Republic of Croatia, based in Zagreb, presented his credentials to the President of the Republic of Croatia, Zoran Milanović. The ambassador of the Kingdom of Norway was accompanied by the wife of the ambassador Hager Jemli Bjørnstad, the first secretary and deputy ambassador Helge Klouman Marstrander and the wife of the first secretary and deputy ambassador Torunn Marstrander.

H. E. William De Baets, Ambassador of the Kingdom of Belgium to the Republic of Croatia, based in Zagreb, presented his credentials to the President of the Republic of Croatia, Zoran Milanović. The ambassador of the Kingdom of Belgium was accompanied by the ambassador’s wife María Jesús Devolx López, advisor and deputy head of the Mission Dirk Michael Breuer and assistant to the ambassador Katrien Schoofs.

H. E. Akylbek Kamaldinov, Ambassador of the Republic of Kazakhstan to the Republic of Croatia, based in Zagreb, presented his credentials to the President of the Republic of Croatia, Zoran Milanović. The ambassador of the Republic of Kazakhstan was accompanied by the ambassador’s wife Olga Kamaldinov and adviser and chargé d’affaires Anar Dutbayeva.

PHOTO: Office of the President of the Republic of Croatia / Tomislav Bušljeta

MARK DAVIS IS THE NEW REGIONAL HEAD OF THE EBRD FOR CENTRAL EUROPE

He leads the EBRD’s operations for Croatia, the Czech Republic, Hungary, Slovakia and Slovenia. He takes over the position from Victoria Zinchuk. Mark Davis held senior positions at the World Bank, Morgan Stanley and Goldman Sachs. “I look forward to leading the Bank’s operations in Central Europe, to help the region continue its transition towards a competitive, sustainable economy, in line with the EU’s wider goals and ambitions. I look forward to helping drive investment to support the private sector and foster innovation,” said Davis, who holds a doctorate in economics from Tulane University in the United States. EBRD is the leading institutional investor in Central Europe. The Bank’s resident office in Zagreb acts as a hub for EBRD operations throughout the region.

DAJANA MRČELA BECAME A MEMBER OF THE ZVIJEZDA MANAGEMENT BOARD

Dajana Mrčela has long-term experience as a member and then president of the Management Board of member companies of the Mepas Group. She spent most of her career in Saponia, a leading Croatian chemical company, where she joined the Management Board in 2006 from the position of Marketing, Sales and Export Director, and for the next five years was the most responsible person for marketing and export in the company. The spectrum of her responsibilities in Saponia Management was expanded in 2011 and, in addition to the previous areas, until 2019 she also managed sales, procurement, logistics and research and development of Saponia from that position in the Management. At the same time, from 2014 she assumed the same responsibilities in the Management of Kandit from Osijek and held them until she left Mepas Group. Dajana Mrčela graduated from the Faculty of Economics in Osijek, where she received her doctorate in 2018. She is the president of the Association of Companies of the Croatian Manufacturing Industry and Activities in Technology (UPiDUT), a member of the Board of Directors of UN Global Compact Croatia and the Board of Directors of HGK. Two years ago, she received the award for business woman of the year from the MBA Croatia association.

PHARMAS COMPLETED THE TAKEOVER OF MABO FARMA FROM MADRID

Mabo Farma is the fastest growing generic company in Spain, whose portfolio includes more than 200 products, mainly prescription drugs, but also overthe-counter (OTC) drugs and nutritional supplements. This pharmaceutical company generates an annual income of around 35 million euros with more than 70 employees. “Entering the Spanish market is the beginning of our five-year strategic plan, the goal of which is to expand to new markets in Western Europe and continue building PharmaS as a strong international player in the field of prescription and non-prescription drugs, as well as nutritional supplements. For our employees, this is an opportunity to gain important international experience. What makes us especially happy is that we will soon see Croatian products on the shelves all over Spain. Also, we hereby demonstrate the strength and strategic importance of the entire pharmaceutical industry in the Republic of Croatia, which generates more than 70% of its revenues through exports to around 60 countries around the world”, said Jerko Jakšić, President of the PharmaSa Management Board”.

Esplanade Zagreb Hotel

Explore Croatia’s storybook capital of Zagreb

At almost 100 years old, the Grande dame of Zagreb and the only member of the prestigious Virtuoso global network – Esplanade is the hotel with more than just a few stories to tell.

The city’s beloved beacon of luxury has stood as a symbol of timeless elegance since it first opened in spring 1925, mere steps from the main railway station. Opulence, utmost comfort and style have been the north star from the start, as the hotel was built for the affluent passengers of the legendary Orient Express train traveling the ParisVenice-Istanbul line.

A magnificent masterpiece of Belle Epoque architecture, Hotel Esplanade features nearly 100 years of history and a thousand tales woven into its nooks and crannies. From scandalous stories, like Croatia’s first striptease during a farewell party thrown by an Italian count, to grand balls with Europe’s luminaries dur-

ing the roaring 1920s and inspiration for contemporary novels, this Zagreb landmark has gracefully carried on the tradition to this day. Its countless awards and accolades bolster its unwavering place on the hospitality pedestal of Croatia and the entire region. It was named the European Hotel Awards’ Historic Hotel of the Year for 2019; it also received World Luxury Travel Awards, known as the Oscars of hospitality and a prestigious Conde Nast Traveller ranked the Esplanade Hotel among the 10 best hotels in Central Europe in 2022.

The dedicated hotel staff love to share stories from the hotel’s rich history, pointing out original details throughout the interiors, like marble accents, the grand staircase and the dazzling Emerald Ballroom with its domed ceiling, known for its incredible acoustics. So incredible, in fact, that at gala events during World War II spies used to eavesdrop on military officials, gathering top-secret intel.

THROUGHOUT ITS LONG AND ILLUSTRIOUS PAST, ESPLANADE HOTEL HAS HOSTED AN IMPRESSIVE ARRAY OF PROMINENT GUESTS AND CELEBRITIES

Throughout its long and illustrious past, Esplanade Hotel has hosted an impressive array of prominent guests and celebrities, from Josephine Baker, Charles Lindbergh, the King of Spain and King Charles and Camilla to Emanuel Macron, Tony Blair, Enrique Iglesias, Kylie Minogue, Robbie Williams, David Beckham, Depeche Mode and The Cure. Esplanade hasn’t wavered in quality or relevance in the 21st century. In addition to its historic grandeur and world-class service, the hotel is equipped with up-to-the-minute amenities, such as the region’s first charging station by Porsche and Tesla, complimentary for guests who arrive with hybrid and electric vehicles.

The food and wine scene of Croatia has been garnering global attention for its top quality. Fittingly, food is a major highlight of a stay at Esplanade, its top-rated chefs consistently pushing culinary boundaries and setting trends. Celebrity chef Ana Grgić Tomić – who was awarded the Trophy Chef of the Year 2022 by Gault&Millau Croatia and La Liste Mediterranean 2023 – heads up the kitchen at Zinfandel’s, the hotel’s elegant restaurant and winner of numerous awards and achievements, famed for its creative contemporary interpreta-

IN BETWEEN ALL THE ROAMING AROUND ZAGREB’S LANDMARKS AND ATTRACTIONS, THERE’S NOTHING BETTER THAN RETREATING INTO ONE OF ESPLANADE’S 208 SUMPTUOUS ROOMS AND SUITES, EACH ONE A SANCTUARY THAT SHOWCASES SUPREME COMFORT, PLUSH PERKS AND AN ARRAY OF LUXE AMENITIES

tions of classic Croatian dishes. Esplanade is also the first hotel in Croatia that joined the Food Waste global initiative by WWF, with the aim of reducing food waste and its impact on the environment. Fittingly, Zinfandel’s became the first restaurant in Croatia to receive the coveted Michelin Green Star, recognition for its special dedication to sustainability. The name of the restaurant pays a nod to zinfandel grape, which was exported from Dalmatia to the USA in the early 19th century. Today, the hotel grows and harvests its very own Zinfandel grapevine in the garden of its Oleander Terrace, donated to Esplanade by Croatia’s renowned winemaker Vlado Krauthaker. While at Esplanade, don’t miss the legendary štrukli, a handmade oven-baked pastry oozing fresh cottage cheese,

a staple of the hotel’s charming Le Bistro - another Zagreb go-to for gastronomic innovation and Esplanade’s cult restaurant, opened in 1986 exuding French-style chic ever since. Le Bistro was the first place in town to pour champagne by the glass, to serve coffee with a chocolate on the side (a habit later picked up by many Croatian cafes) and to introduce Valentine’s to the country with a romantic dish never before seen in Croatia, tiramisu. The menu that Ana Grgić Tomić created for the beloved bistro with its splendid terrace takes food to new heights.

Esplanade Hotel is the ultimate address in Zagreb, a distinguished institution and the iconic epicenter of Zagreb’s social life that has always held a special spot in the heart of Zagreb’s citizens. Locals love the Esplanade to the core; it’s the favorite

setting for family gatherings and milestone celebrations. On a sunny day, there’s nothing more wonderful than a drink on the hotel’s gorgeous Oleander Terrace, once described by Croatia’s famous writer Miroslav Krleža as the place where the Balkans end and Europe begins.

At the exclusive Health Club, guests can unwind with a soothing massage, from chocolate to bamboo and hot stones, and a range of pampering beauty treatments. Elaborate breakfasts are a special treat at Esplanade Hotel, as are drinks and cocktails at the Esplanade 1925 Lounge & Cocktail bar, a classy spot where Richard Gere once shot a Hollywood movie. Throw in the fantastic city views from Esplanade’s public spaces and the rooms, and you have more than plenty of reasons to book your perfect stay.

Japan and China: A Tale of Two Asian Giants

The Dragon and the Rising Sun

culture, leading to the creation of serene Zen gardens and the pursuit of mindfulness in daily life.

China has a complex history with various dynasties, imperial rule, and periods of unity and division. The Chinese Communist Revolution in 1949 reshaped its political landscape. China‘s historical sites include the monumental and breathtaking Great Wall, grand palaces, and the legacies of powerful emperors. The sheer scale of its history is awe-inspiring. Confucian values of respect, hierarchy, and family play a significant role in Chinese society, shaping its moral compass and social structure.

CULTURAL CONTRASTS

Stepping off the plane and into the bustling streets of East Asia was a transformative experience for me as a European. Two of the region‘s most influential nations, Japan and China, captivated me with their rich histories, lively cultures, and tantalizing mysteries.

In the vast tapestry of Asia, Japan and China stand as two colossal yet distinct threads. While they share similarities rooted in their East Asian heritage, each nation weaves its own unique pattern, forging a narrative shaped by culture, economy, history, and daily life. I had the opportunity to visit and explore those two countries in one of my travels and I would like to embark you on a journey with me to explore the captivating similarities and differences that define them.

HISTORICAL HERITAGE

Both nations have ancient histories dating back thousands of years, with dynastic periods that have left lasting legacies. The Silk Road played a crucial role in connecting these two civilizations, facilitating

cultural exchange and trade.

Japan‘s history is marked by periods of feudal rule, samurai culture, isolationism, and a rich tradition of martial arts followed by

a modernization era in the late 19th century. Castles, temples, and samurai districts offer glimpses into Japan‘s storied past. Zen Buddhism has deeply influenced Japanese

Both Japan and China have a deep reverence for tradition and history and a strong sense of cultural identity reflected in their preservation of ancient customs and rituals. Confucianism has historically influenced the social fabric and moral values of both nations. Tea culture is highly regarded in both countries, with the Japanese tea ceremony and Chinese tea traditions being cherished.

Japan‘s culture is characterized by its emphasis on harmony, minimalism, and respect for nature, as seen in Zen Buddhism and ikebana - flower arranging. Japan is a land of precision engineering, where every detail matters. From meticulously manicured gardens to the graceful movements of a tea ceremony, tradition and craftsmanship are deeply ingrained in daily life. Japanese people have a certain reserved elegance, they speak softly, and there‘s a sense of calm and order even in bustling metropolises like Tokyo.

China‘s culture is more diverse due to its vast size and regional variations, with influences from Taoism, Buddhism, and the Confucian concept of hierarchy. This country is a tapestry of diversity, with a myriad of regional cuisines, dialects, and customs. Chinese cities are dynamic and teeming with life. The energy of the streets, the lively chatter, and the constant

BOTH NATIONS HAVE ANCIENT HISTORIES DATING BACK THOUSANDS OF YEARS, WITH DYNASTIC PERIODS THAT HAVE LEFT LASTING LEGACIES.

movement make it an exhilarating experience.

PATHWAYS TO THE DIVINE

Buddhism and Daoism have historically been influential in both nations, with temples, shrines, and rituals reflecting their cultural presence and coexisting with indigenous beliefs and practices. Confucian values, emphasizing moral conduct and social harmony, have left a lasting impact on society in both countries.

Shintoism is Japan‘s indigenous religion, with a strong connection to nature and kami (spirits). Buddhism coexists harmoniously with Shintoism. China‘s religious landscape includes a diverse range of beliefs, including Buddhism, Taoism, and various folk religions. It also has a significant Christian and Muslim minority.

BEYOND STEREOTYPES

East Asian features, such as straight black hair, almond-shaped eyes, and fair to yellowish skin tones, are common in both populations. Japanese tend to have lighter complexions on average and there is a wide range of eye shapes and colors among the population. China‘s vastness leads to greater physical diversity, with variations in skin color, facial features, and body types across different regions.

PATHS TO PROSPERITY

Both Japan and China have robust economies, ranking among the world‘s largest, with a focus on exports, manufacturing and technology. They have extensive global trade networks, contributing significantly to the global supply chain. Innovation and technological advancements are central to their industrial strategies.

Japan is renowned for its precision engineering, with a focus on automotive manufacturing globally recognized, electronics, high-speed rail technology and robotics. China has become a manufacturing and technology giant, with rapid urbanization, a burgeoning middle class, and a thriving e-commerce sector. China‘s industry is vast and diverse, encompassing textiles, electronics, heavy machinery, and the world‘s largest production of steel and consumer goods.

CULINARY ADVENTURES

Both cuisines emphasize the use of rice as a staple, along with noodles and vegetables. The art of tea is an integral part of culinary culture in both countries as well as the use of chopsticks. Japanese chop-

sticks are typically made of wood lacquered for a smooth finish and are generally shorter with a pointed end, decorative patterns and come in various colors. Chinese chopsticks can be made from various materials like wood, bamboo, plastic, metal, and ivory. They are longer, thicker, have a blunt or square end and usually are plain in design.

Japanese cuisine is characterized by its meticulous presentation, with dishes like sushi, sashimi, and kaiseki showcasing the simplicity of ingredients, minimalism and natural flavors with respect for seasonality. Japanese cuisine celebrates the natural flavors of ingredients. Matcha, a finely ground green tea, is integral to Japanese culture, enjoyed in traditional tea ceremonies and modern cafés.

Chinese cuisine is celebrated for its diverse and bold flavors,

regional specialties, and iconic dishes like Peking duck, dim sum, and spicy Sichuan cuisine. Regional specialties offer an endless culinary adventure. The bold flavors and bustling street markets are a testament to the country‘s vastness.

Chinese street food is a sensory overload, with an array of skewers including the ones with a variety of bugs, dumplings, and snacks to tantalize your taste buds.

THE ART OF WRITING AND SPEAKING

Both languages incorporate characters. Japan uses Kanji, adopted from Chinese characters, while China uses simplified and traditional Chinese characters.

Japan uses a combination of logographic and syllabic scripts. Next to Kanji characters, Japanese also features two syllabaries that

are distinct from the Chinese writing system, Katakana - used for foreign words and Hiragana - for native words. The official language is Japanese.

China uses simplified and traditional Chinese characters, depending on the region. The script is logographic, with each character representing a word or concept. Chinese boasts a vast number of dialects and languages, with Mandarin being the official language and most widely spoken. Mandarin Chinese primarily uses characters without a phonetic script.

VALUES AND WAY OF LIFE

Family values hold a prominent place in both cultures, with an emphasis on filial piety and respect for elders. Filial piety is a traditional Confucian value that involves showing deep respect, care, and obedience to one‘s parents and ancestors, obeying their parents‘ wishes, taking care of them when they are old, and working hard to provide them with material comforts. Strong work ethics and discipline are valued in both societies.

Japanese society often prioritizes modesty, conformity, harmony, consensus, and group cohesion, reflected in everyday etiquette and social norms. China‘s culture tends to emphasize individual achievement and competitiveness, with an increasing focus on entrepreneurship and innovation in recent years.

A KALEIDOSCOPE OF CONTRASTS AND COMMONALITIES

As a Westerner from Europe, my journey through Japan and China unveils a mesmerizing tapestry of contrasts and connections. While sharing deep-rooted cultural and historical connections, they stand as distinct and captivating nations with their unique characteristics. Japan‘s precision and tradition stand in contrast to China‘s bold diversity and dynamism. Yet, both nations share a deep respect for their histories and a reverence for the art of living.

These experiences remind me that our world is a mosaic of cultures, each with its unique beauty. Whether savoring sushi in Tokyo or navigating the lively streets of Beijing, we bridge the divide between East and West, finding common threads of humanity that connect us all, regardless of our cultural backgrounds. We discover that diversity enriches our understanding of the world, making every journey a voyage of enlightenment.

FAMILY VALUES HOLD A PROMINENT PLACE IN BOTH CULTURES, WITH AN EMPHASIS ON FILIAL PIETY AND RESPECT FOR ELDERS.

ICONIC CHIVAS REGAL WHISKY

This story begins in 1836 with two brothers named James and John Chivas. The brothers were two of fourteen children born to Robert & Christian Chivas, living on the remote Strathythan farm in the Ellon Parish of Aberdeenshire. At 26 and 22 years old respectively, James and his younger brother John decided it was time to follow their dreams and leave farm life in search of bigger and better opportunities. They left the small crowded Strathythan farm in search of the bright ‘northern’ lights of Old Aberdeen.

At this time there were no train-lines or stagecoach routes across Aberdeenshire, so the young brothers trekked for several days across 20 miles of Scottish countryside to the Granite City. Aberdeen at this time was a city typifying the period of industrial revolution, booming with new people, industries, exotic goods and most importantly new ideas. One of these new ideas was the blending of grain and malt whisky, referred to today as Blended Whisky. Blended Whisky is defined by the Scottish Whisky Association as, ‘A blend of one or more Single Malt Scotch Whiskies with one or more Single Grain Scotch Whiskies.’ The core concept of blending is to create something better than the sum of its parts by harmonizing the complex flavors of the malt and grain whisky, bringing them together and creating a new and superior character.

Arriving in Aberdeen, John began working at a wholesale firm while his older brother James worked in a grocery store, where he later partnered with a gentleman named Charles Stewart. This was no ordinary store however – established

in 1801 it soon gained a reputation of supplying the finest goods, provisions and highest quality whisky to the gentry of Scotland. If you wanted real craftsmanship and goods of the highest quality, this was your one stop shop. This recognition of the reputation and quality of the business soon extended from the gentry of Scotland to Queen

Victoria herself, who awarded James and Charles the first of many royal warrants to supply goods and provisions to her royal summer home, Balmoral Castle.

Since joining the Aberdeen grocery store James had learned and mastered the craft of tea blending. The skills James learnt during this time, coupled with his years of training both his nose and pallet, provided him with superior skill in the blending of whiskies. Now inspired by his royal patronage, James Chivas began pioneering the art of blending whiskies, using the many ageing casks laid down in the shops cellars. He created what we consider today to be the Chivas house style – blending whiskies in a style encompassing smoothness, richness and harmony of flavour.

Charles Stewart left the partnership in 1857 and soon after John joined his brother James at the shop, forming the Chivas Brothers family business. Two years later ‘The 1860 Spirits Act’ permitted the blending of whiskies in warehouses. This confirmed both the Art of Blending as an established technique and Blended Whisky as a category of whisky in its own right. As a result, the demand for Chivas Brothers’ smooth, rich and harmonious style whisky boomed.

When James Chivas died in 1886 the store was passed to his son Alexander Chivas (John having also passed in 1862) who continued to expand the business, assisted by his good friend Alexander Smith. Following the death of Alexander Chivas in 1893, Chivas Brothers was then taken over by Alexander Smith and its new Master Blender Charles Howard.

By 1909, Chivas Brothers had developed a wide reputation for producing luxury goods, which they shipped around the world. The Chivas Brothers had extensive knowledge and expertise on the aging and blending of whiskies and built up extensive stocks of maturing whisky. Following several successful releases across the globe Charles Howard, Chivas Brothers’ Master Blender at the time, wanted to create a new blend that payed tribute to the legacy of the founding brothers, James and John.

Using the name Chivas Regal, Charles created what he believed to be the finest whisky ever made, releasing a 25 year old whisky in 1909. This met the regulatory requirements for bottling and labeling, a feat that hadn’t been accomplished by any other companies or brands at the time, establishing it as the world’s first luxury whisky. The Chivas house style has been passed down by generations of Master Blenders, and is still carefully guarded today by Colin Scott, Chivas Regal’s fifth Master Blender.

Today, the Chivas Regal range now includes Chivas 12, Chivas 18, Chivas 25 and the Global Travel Retail exclusive, Chivas Brothers Blend. In October 2014, Chivas Regal announced the addition of a fifth permanent expression in the Chivas Regal family, Chivas Regal Extra, sitting within the superpremium range, positioned between Chivas 12 and Chivas 18. In February 2016, Colin Scott presented Chivas Regal The Icon (RRP: 3.000 EUR), a perfectly balanced expression that showcases the depth and complexity of his craftsmanship and knowledge, echoing the pioneering James and John Chivas. Chivas Regal The Icon is an ultra prestige blended whisky created with a blend of some of the rarest and oldest whiskies available to Chivas Regal, some from distilleries now lost forever.

Sláinte (Cheers)!

FOR OVER 170 YEARS BROTHERHOOD, GENEROSITY, ENTREPRENEURSHIP, AND INTEGRITY HAVE – AND CONTINUE TO BE – AT HEART OF CHIVAS REGAL.

Launched in 1909, Chivas Regal is the world’s fi rst luxury whisky and is considered to be a timeless classic, renowned for style, substance and exclusivity.

I MPRESS WITH

CHIVAS REGAL 13

T his Chivas Extra 13 blended Scotch whisky selectively matured in Oloroso Sherry Casks is inspired by the Chivas brothers’ 13 King Street Emporium in Aberdeen, where they imported different spirits, exotic spices, and luxury food items from across the globe. Imparting its own unique combination of characteristics onto the Chivas blend, this finish brings new and contrasting flavour notes to the spirit for the first time.

CHIVAS REGAL 12

Only the finest malt and grain whiskies lie within Chivas 12. Within the 12-yearold Scotch whiskies that go into our signature blend you’ll find Strathisla single malt, Strathclyde single grain and more to create a whisky that’s remarkably smooth. Distinctive Speyside flavours of crisp orchard fruits, wild heather and sweet honey can be found in every sip of Chivas 12, with a rich and generous taste that’s synonymous with our house style.

CHIVAS REGAL 18

CHIVAS REGAL XV

Created in 2018 by Master Blender Sandy Hyslop, Chivas XV is a celebratory way to enjoy blended Scotch whisky. This blend is laid down to rest for a minimum of 15 long years – represented by the Roman numerals XV – so that rich flavours are ready for you to enjoy in an instant.Pairing this long maturation with a selective finish* in cognac casks results in a truly luxurious and velvety finish. With notes of rich sultanas and touches of warm cinnamon, this is a blend worth toasting to.

H olding coveted titles such as ‘Best Blended Scotch Whisky’ from the International Wine and Spirits Competition in 2014, Chivas 18 impresses with every sip. This 18-year-old Scotch whisky develops intense flavours within only the finest casks, resulting in a refined whisky with a never-ending flavour experience. Chivas 18 holds an incredible 85 unique flavour notes in every drop. Uniquely rich and complex, this 18-year-old blended Scotch whisky has won both awards and hearts of whisky-lovers across the world.

CHIVAS REGAL ULTIS

C hivas Ultis is the first blended malt whisky from the house of Chivas Regal. Chivas Ultis captures the true essence of Chivas Regal. Blending five of our most precious signature single malt Scotch whiskies from Speyside, the rich and full-bodied flavour of this blended malt whisky reflects the true diversity within the region. Less than 1% of the millions of casks within the Chivas inventory were used to create Chivas Ultis. Each cask was individually hand-selected and nosed to ensure the highest quality within this blend.

CHIVAS REGAL 25

T he world’s first luxury whisky. Taking New York by storm in 1909, this legendary whisky has seen it all. Having survived two World Wars and outlived Prohibition, this 25-year-old Scotch whisky was reborn to be saluted and honoured evermore. Only the rarest 25-year-old Scotch whiskies are blended together for this legendary blend. Every drop is meticulously blended to rekindle the delicate intensities and subtle textures made famous by the original Chivas 25 in the early 1900s.