InFocus Germany

Germany 2019

GERMANY & SERBIA

TRUE AND STABLE PARTNERSHIP H.E. THOMAS SCHIEB

German Ambassador to Serbia

DR RONALD SEELIGER

MARKO ČADEŽ

President of the German-Serbian Chamber of Commerce (AHK Serbia) and Hemofarm CEO

President of the Chamber of Commerce and Industry of Serbia

02 THE GERMAN ZOO

01 THE GERMAN SPRACHE

German remains the language with the most native speakers in Europe – besides Germany having the largest population in the EU, the German language was once the lingua franca of central, eastern and northern Europe.

Berlin’s Zoologischer Garten is the largest zoo in the world – Germany also boasts more than 400 registered zoos.

Including zoological gardens, wildlife parks, aquariums, bird parks, animal reserves, and safari’s, Germany has nearly 700 facilities.

06 INVENTIONS RUN IN THE BLOOD

You can thank the Germans for the light bulb, the calculator, and the automobile, the invention of the clarinet, the pocket watch, television and many more other very useful things!.

05 BIGGER,

BETTER, STRONGER

Germany has the largest population in the EU- the population of Germany is around 80.9 million, with 3.4 million people living in the capital Berlin.

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03 MIX IT UP

Germany is the second most popular expat destination in the world - Most immigrants are from Europe, with the top three foreign nationalities being Turkish, Polish and Italian.

04 THE PEACEFUL LIFE

Germany is rated highly as a place to grow old – life expectancy in Germany is almost 81 years (one year higher than the OEDC average) – 83 for women and 78 for men.

07 THE LAND

OF POETS AND THINKERS

08 THE GERMAN CLOCK Munich is the second most punctual large airport in the world – out of the category of large airports, only Tokyo is more punctual.

Bach, Beethoven and Goethe were all German, alongside composers Händel, Schumann, Mendelssohn, Brahms, Wagner and R. Strauss.

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Germany 2019

TANJA BANKOVIĆ Editor in Chief tanja.bankovic@color.rs ILIJA PETROVIĆ ”INDIGOCHILD” Art director ilija.petrovic@color.rs NATAŠA NEŠIĆ Advertising director natasa.nesic@color.rs JOVANA MARKOVIĆ Advertising manager jovana.markovic@color.rs JELENA RANDJELOVIĆ Advertising manager jelena.randjelovic@color.rs DRAGANA RADOVIĆ Advertising manager dragana.radovic@color.rs RUŽA RISTANOVIĆ Magazine director ruza.ristanovic@color.rs ROBERT ČOBAN Director robert.coban@color.rs

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YOU HAVE TO SIT AND TALK

H.E. Thomas Schieb

German Ambassador to Serbia

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READY FOR A MARATHON

Dr Ronald Seeliger

President of the German-Serbian Chamber of Commerce (AHK Serbia) and Hemofarm CEO

GORAN ZLATKOVIĆ GETTY IMAGES

Marko Čadež

President of the Chamber of Commerce and Industry of Serbia

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MORE SERBIAN SPECIALISTS NEEDED

Martin Knapp

Director of the German-Serbian Chamber of Commerce

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CONTINUITY IS ONE OF THE SECRETS OF SUCCESS

Dragan Simović

General Manager of Gebrüder Weiss Serbia, Member of Managing Board of AHK Serbia, adviser to first deputy PM for international economic cooperation

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INNOVATIONS IN JUBILEE YEAR

Zoran Djurić

SNEŽANA BJELOTOMIĆ

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RIGHT PLACE FOR INVESTMENT

Clemens Sachs and Danijela Ivković

Translation

Germany 2019

Stevan Jovićević

General Manager of Tahograf BG

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WE CONSTANTLY INNOVATE

Gordana Brašić

President of Henkel Serbia, and Head HR for Serbia, Bulgaria and Romania

HAVE FOUND THE AND INTEREST CONSULTANCY 16 WECOMMON 35 SUPPORT

General Manager of Miele Photos

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DIGITIZATION INCREASES EFFICIENCY

Managing Directors, LEONI Wiring Systems Southeast d.o.o.

Tanja Jelić

International Cooperation Consultant at Expositur

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INSPIRING QUALITY

Kruna Gavovic

Marketing manager TMS CEE doo, CEO – The Lean Six Sigma Company CEE doo

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REPRESENTATIVE OF THE INTERESTS OF A NETWORK OF MEMBER COMPANIES

AHK Serbia

THE MARKET RECOGNIZES REAL 45 VALUES Vladimir Marinković

Director of Sunce Marinković d.o.o.

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NEW PRODUCTS FOR A NEW BEGINNG IN 2019

Knauf Serbia

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YOU HAVE TO SIT AND TALK

H.E. THOMAS SCHIEB

German Ambassador to Serbia

hat role do the EU and Germany play in the renewal of the Belgrade-Priština dialogue, given the stronger presence of the United States in the process? Will the format of the dialogue stay the same, or will it be changed? Is the USA going to bring in a new dynamic? These questions are very much debated both in Belgrade and Priština. We took the opportunity to ask H.E. Mr Thomas Schieb, the German Ambassador to Serbia, to give us his overview of the current phase in the dialogue.

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Germany strongly supports the Brusselsbased normalization of the dialogue facilitated by the EU-HR Federica Mogherini, and expects the format of the dialogue to remain unchanged. As said many times, the result needs to be an agreement that is comprehensive – dealing with all open issues – acceptable to both sides, and implementable

THE DIGITAL SUMMIT THAT WILL TAKE PLACE HERE IN BELGRADE ON APRIL 4/5 WILL BE THE NEXT VERY VISIBLE EVENT OF THE BERLIN PROCESS

“The format of the dialogue remains unchanged. Germany strongly supports the Brussels-based normalization dialogue facilitated by the EU-HR Federica Mogherini”, says our interlocutor. “We welcome the progress achieved so far, such as in the fields of freedom of movement and mutual recognition of diplomas, and the telecommunication and justice sector.”

Mr Schiev notes that these results have improved the living standard and living conditions of bothethnic Serbs and Albanians

living in Kosovo. However, he says that “in order to achieve such solutions you have to sit and talk. We hope very much that the dialogue will resume soon. We therefore urge the authorities in Kosovo to abolish the tariffs that were imposed in clear violation of the CEFTA rules. And we encourage both sides to refrain from any acts that further jeopardize the dialogue.” The result of the dialogue needs to be an agreement that is comprehensive – dealing with all open issues – acceptable to both sides and implementable, says the ambassador. Such an agreement should be based on the principle of multi-ethnicity, ensure minority rights and democratic standards, as well as contribute to regional stability.

In that context, how should we view Pristina's decision to disregard EU's appeal to remove fees on goods coming from Serbia, despite the fact that the fee is not line with CEFTA and the spirit of European integration?  As I said, we agree completely with Federica Mogherini that the tariffs established by Kosovo are a breach of the CEFTA and need to be abolished. The German government has communicated this very clearly to Pristina. We encourage both sides to come back to the negotiation table and proceed with the Brussels dialogue.

How does this issue affect the overall pace of Serbia's Eurointegration process?  The German government strongly advocates the EU accession of Serbia and the Western Balkans. The Sofia summit last May has shown unanimity among the EU leaders to reiterate the EU perspective of Serbia and the Balkans. However, the EU accession depends on the reform progress. Of course, the necessary conditions have to be met. These con-

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ditions are well-known. The reforms in the rule of law field are a clear priority. We are talking about justice reform, the fight against corruption, improving the situation of journalists and strong and good laws protecting the citizens. The more these reforms are implemented, the more of the remaining chapters can be opened. We have noted some progress, and I can only encourage the government, parliament and everybody in-

WE HAVE RECENTLY OPENED AN IMPRESSIVE EXHIBITION AT THE MUSEUM FOR MODERN ART IN BELGRADE, WHICH PRESENTS THE WORKS OF OVER 100 GERMAN ARTISTS. I HIGHLY RECOMMEND IT TO ALL LOVERS OF MODERN ART volved in that huge task to keep being committed to this endeavour.

Normalization of relations with Kosovo is another prerequisite for EU accession. In the accession negotiations this is reflected in a specific chapter on the dialogue, Chapter 35.

What are the most visible results of the Berlin Initiative today?  The Berlin Process, launched in 2014 by the Federal Government, has resulted in the Western Balkans deepening their regional cooperation politically, economically and culturally thus fostering the EU perspective for all countries in the region. This has clear positive results. Issues such as connectivity,

security and regional cooperation, including youth-cooperation, are now more important than ever.

Achievement milestones up until now have been: 9 transport connectivity and 2 technical assistance projects; Joint declaration on Regional Cooperation and Good Neighborly Relations on missing persons and on war crimes; and Roadmap to solution to illicit illegal possession, misuse and trading of firearms.

The Digital Summit that will take place here in Belgrade on April 4/5 will be the next very visible event of the Berlin Process.

Already 30 million euro have been allocated for broadband deployment in the WEB. Also, together with France, we want to continue our support for the established Regional Youth Office (RYCO). It is based in Tirana and is modeled after the Franco-Germany Youth Office and seen as a major stakeholder in reconciliation process of post-Yugoslav countries.

What, apart from the European integration, are the most important priorities in bilateral relations between Serbia and Germany?  Our bilateral economic and cultural relations are excellent. Germany is tops the list of Serbia’s trading partners - with the bilateral trade value of EUR 4.8 billion in 2018. Around 400 German companies have created around 55,000 jobs in Serbia and have invested more than EUR 2 billion here since 2000. The German-Serbian Chamber of Commerce (AHK) plays an important role in expanding our economic ties. Apart from the satisfaction from seeing the steadily growing number of companies active in Serbia, this country also seems to have become an interesting location for more complex and higher value-added production. Generating sustainable growth is an

Strong potential for investments

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I CLEARLY SEE THE PERSPECTIVE FOR SUBSTANTIAL FURTHER GERMAN INVESTMENTS AND I WILL ACTIVELY WORK TOWARDS THIS GOAL Germany 2019

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important aspect in our economic relations.

I am confident that we can further perpetuate this positive trend.

There is also a close relationship in the German-Serbian development cooperation, for which Germany has provided more than 1.8 billion euro since 2000. Our priorities are sustainable economic development, environment, and good governance.

Dual training, which Germany supports, is another good example for cooperation in the area of sustainable economic development. It improves the job prospects for young people here in Serbia and enables them to participate in the production of increasingly demanding products.

As far as culture is concerned I can proudly say that, only recently, we have opened an impressive exhibition at the Museum of Modern Art in Belgrade. The exhibition presents the works of over 100 German artists and in that sense, covers 60 years of Germany art history. The exhibition will be opened until the end of March and I highly recommend it to all lovers of modern art . Coming in March, there is also the famous Belgrade Dance Festival with two German shows by Gautier Dance and Frankfurt-Dresden Dance Company, both notable pieces of contemporary dance.

Student exchange programmes between Germany and Serbia are also very popular.

There are many scholarships for studying at German universities. All this is a strong basis for mutual understanding and for further cooperation between our two countries.

After the rules regarding the import of workforce in Germany become more relaxed, what opportunities will open up for Serbian workers?  Germany strongly supports the idea of circular migration, which would allow people to work abroad for a certain period of time and return to their home countries with the improved know-how and experiences.

A new immigration law for skilled workers still needs to be discussed in the German Bundestag; hence we do not know what the final text will look like.

To what extent can the departure of skilled work force affect the decision of German companies to give up on investing in Serbia? What did you find out in talks with investors? What are their most important reasons for and against investing in Serbia? 

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THE GERMAN GOVERNMENT STRONGLY ADVOCATES THE EU ACCESSION OF SERBIA AND THE WESTERN BALKANS According to a survey conducted by the German-Serbian Chamber of Commerce in 2018, 85% of the surveyed companies would invest in Serbia again. This reflects a very positive overall perception. Qualifications and motivation of Serbian employees have again been positively noted. However, companies continue to see room for improvement in some areas, such as anti-corruption, legal safety and public procurement transparency. This also shows the importance of progress in the area of the rule of law for further expansion of our economic relations. We are cooperating closely on this with our Serbian partners.

I clearly see the perspective for substantial further German investments and I will actively work towards this goal.

What is your assessment of the overall economic reforms in Serbia and what are your expectations in this segment?  Serbia has successfully implemented a series of important reforms, which have been widely recognized. Only recently, the International Monetary Fund mission has confirmed strong results of Serbia’s economic programme. Serbia has recorded the fastest growth for over a decade in 2018, with the annual inflation in the lower half of the target band, fiscal performance remaining strong and declining unemployment. This positive trend should be maintained and boosted.

I welcome the commitment by Serbian authorities to making further progress in structural reforms, which should foster private sector-led growth and allow for a faster convergence towards EU income levels. In this context, feedback on how private companies perceive framework conditions of their activities in Serbia and where they see potential for improvement (as e.g. the survey I have just mentioned) can provide a valuable additional input. Germany will certainly continue to support Serbia in its efforts to address remaining challenges, to create the basis for sustainable growth and prepare for the EU internal market.

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READY FOR A MARATHON DR RONALD SEELIGER

President of the German-Serbian Chamber of Commerce (AHK Serbia) and Hemofarm CEO

mprovement of the business conditions is a marathon race not a sprint, and permanent work on advancing business environment is required, says Dr Ronald Seeliger, President of the German-Serbian Chamber of Commerce (AHK Serbia) and Hemofarm CEO.

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What is your assessment of the overall macroeconomic situation in Serbia?  Serbia has succeeded in overcoming the major macroeconomic imbalances and the next task for the economy is to wake up and

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THE AHK IS AT DISPOSAL IF THE SERBIAN SIDE IS INTERESTED IN LOOKING AT MODELS OF DUAL STUDIES WHICH HAVE BEEN AGREED BETWEEN COMPANIES AND UNIVERSITIES IN GERMANY

Some of the main challenges Serbia is facing are stagnant household incomes, a need for private sector job creation and structural reform of public enterprises. As a promoter of the German and Serbian cooperation we are ready to help

induce further growth. We need powerful, inclusive and sustainable economic growth, and subsequently further reforms are necessary in this segment. Some of the main challenges Serbia is facing are stagnant household incomes, a need for private sector job creation and structural reform of public enterprises as well as strategic reforms in the public sector.

Additionally, further reforms are necessary in some ‘non-economic’ areas as well, and these must not be left out of focus. For example, rule of law fully exercised in practice, more intensive fight against corruption,

further strengthening of legal safety and transparency in public procurement, improvement of the tax system and work of the tax administration, as well as the need for higher efficiency of the public administration – these are all challenges that the country will have to deal with in the long term.

In short, the task Serbia is facing now is building muscle in the economic sector simultaneously with the increase of fitness in those other areas.

How strong is the spirit of reform in today's Serbia, and how much effort is Serbia putting in creating business conditions that resemble those in the EU countries?  I say too often that it is very important for Serbia to become a member of the EU, and in order to achieve this, it has to continue conducting structural reforms and changing certain patterns of doing business and behaviour thoroughly and in the long run.

As already mentioned, it needs powerful and sustainable growth precisely for the purpose of faster approximation to the EU standards.

Comparing the business conditions here and in the EU countries, some of them are quite similar, while on the other hand there are also things which are different. For example, what Serbia needs is predictability of business operation, which is again something I have often spoken of. Predictability of business operations i.e. possibility to do business within a clear, precise and expected framework is very important to every businessman and Serbia has to make better progress in this respect.

How willing are German companies to relocate their production to Serbia?  At the moment, as I am informed in my role of AKH President, some companies are thinking about relocating parts of their produc-

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tion to Serbia. But let me be clear, until the final agreement is achieved, every investor simultaneously looks for back-up and places other countries under discussion.

Business people look at several countries at the same time and then they decide where to start their operations. I will tell you something experienced from German practice: as a kind of rule, production is relocated from Germany to other countries because of the lack of workers in Germany. Only in exceptional cases, the companies were already active somewhere else in Eastern Europe before they moved to Serbia.

THE SITUATION WITH KOSOVO FEES HAS TO BE RESOLVED AS SOON AS POSSIBLE. IT HARMS PEOPLE, IT HARMS ECONOMY AND IT DOES NOT BRING ANY GOOD TO POLITICAL RELATIONS IN THE REGION Given that the company you manage operates in an economic segment where technological and product innovation are very important, can you tell us how fast Serbia is moving towards a desired change in the structure of its economy, that is in the direction of a knowledge-based economy?  The transition to a knowledge-based economy does not happen overnight. The first step has already been done with the introduction of dual vocational training. Furthermore, an industrialised country does not only need engineers but also well-trained, qualified people who understand the ideas

A partner and a friend

of the engineers and know how to put them into practice. Speaking of which, education of engineers has a long tradition in Serbia and is quite well by international standards.

With regard to university studies, I would say that more practical training during the studies is for sure needed here in Serbia.

After the introduction of dual education, Serbia has embarked on a vocational studies reform. Is AHK going to participate in this reform?  Germany has vast experience in the field of dual education and AKH has been very active in advocating dual education within the secondary education system in Serbia.

The reason is clear: dual education facilitates special ties between schools and companies, and generates more capable and better trained workforce. This is a field to which we can contribute and offer our assistance, although every state has to have a systematic approach in it.

The so-called dual studies at universities in Germany and elsewhere do not follow a uniform pattern like the dual system of vocational education for youngsters between 14 and 18. For the university students, there are many competing models of dual studies.

Like vocational training, university studies also require as much practical experience as possible. One thing is also certain - the AHK is at disposal if the Serbian side is interested in looking at such models which have been agreed between companies and universities in Germany. We fully support the idea of the dual studies.

You have been CEO of Hemofarm for seven years now. How much has the pharmaceutical market changed in this period, and how is it doing today?  Important changes have occurred on the

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AHK IS A FRIEND, PROMOTER, AND ADVOCATE OF GERMAN AND SERBIAN ECONOMY, AND IN THE SENSE OF COOPERATION WITH THE INSTITUTIONS HERE, WE HAVE BEEN A DEVOTED, BENEVOLENT, AND VALUABLE PARTNER Germany 2019

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Hemofarm has not been able to provide medicines for the citizens of Kosovo, which Hemofarm had done for years before. This is the reason I appeal for the decision makers to cancel the fees as soon as possible.

Thirdly, I would like to add the following: the decision on high fees has negatively affected the creating of the regional economic area as well, to which Germany and AHK invested a great deal of attention over the past years. We heard recently that the waiting on border crossings costs the Balkans one billion of euros each year, and that 80 percent of the time required for transport of goods is spent on border crossings, while only 20 percent is spent on the road. Just imagine the amount of capital being delayed unused! For that reason, as a president of AHK, I speak largely about the Western Balkans regional economic zone and its importance for the counties in this region.

global market over the past several years.

Digitalisation has become priority in every sense: both in manufacturing processes and in sales. We are also witnessing the fact that global pharmaceutical companies trade parts of the companies between themselves, in order to best adapt to the new postulates of the market game and to come out as winners. The following trend is also interesting: the Indian market is getting stronger day by day. These are all factors strategists in our field take into consideration when planning future activities.

STADA, within which Hemofarm operates, is also a competitor in this global competition and we are doing everything in our power to adapt to it in the best possible way. Our goal is that STADA becomes one of the strongest global players in the coming period and to this end we are active in several fields. Europe remains in our focus but of course global performance is certainly one of our priorities. Let me say this: 2018 was the most successful year in STADA’s history so we have a lot to be proud of.

Do German companies feel the effects of the imposed fees in trading with Kosovo?

Do these fees have an impact on your business?  Not only German companies, but each company in Serbia which exports its products to the market of Kosovo is affected by the measures of Pristina. The recently pub-

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SOON WE ARE EXPECTING A NEW ANNUAL AKH ANALYSIS OF THE BUSINESS CONDITIONS IN SERBIA AND IT IS GOING TO PROVIDE US THE FRESHEST INSIGHT INTO THE FRAME OF MIND OF THE GERMAN COMPANIES OPERATING IN SERBIA lished official data have it that at least EUR 90 million less of goods have been sold in Kosovo over the past three months due to the imposing of these enormously large fees to the goods from Serbia. The economy and the companies are suffering losses, the citizens are also suffering huge losses, and this situation is only favourable for smuggling activities.

Being the head of a company that manufactures medicinal products, I am particularly annoyed by this situation. It is not about profit, but about health of people. Namely, the imposing of the high fees has predominantly affected the people of Kosovo, patients before all. Since Kosovo imposed the high fees for the products from Serbia,

What are your expectations from the Serbian Government with regard to facilitating conditions for doing business?  In response to this question, I will remind you that AHK conducts annual surveys on business conditions among its member-companies. The results of the last year’s survey have shown optimism of the companies and a positive evaluation of the business climate in Serbia. In this research, German companies were, for example, satisfied with the productivity and motivation of employees, with their qualifications, academic education and costs of labour.

German companies are actually those that prove it in practice by their reinvestments.

There are Henkel, Continental, Leoni – all of them are the companies that have invested in Serbia again and again, built new factories and plants, hired additional people.

I will also mention the example of Hemofarm, the company I lead. Since 2006, Stada Group, a member of which is Hemofarm, has invested EUR 300 million to modernise its operations, equipment and new plants here in Serbia.

Soon we are expecting a new annual AKH analysis of the business conditions in Serbia and it is going to provide us the freshest insight into the frame of mind of the German companies operating in Serbia. As it has been the practice until now, the information we arrive at will be available both to the Government and to the general public, and I believe it will be of use for further improvement of business aspects.

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WE HAVE FOUND THE COMMON INTEREST MARKO ÄŒADEĹ˝

President of the Chamber of Commerce and Industry of Serbia

Notwithstanding the latest investments, which are currently being implemented, the investments made

by German companies in Serbia have exceeded 2 billion euro, while most of the new investments are also German. With these investments come new technologies and modernization of the Serbian industry

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or years, Germany has been a key economic and first external trade partner to Serbia. The growth trend in trading in goods and services and the influx of German investments continued in 2018 too.

The value of trading in goods and services between the two countries broke a record last year – 5.11 billion euro, while Serbian exports amounted to 2.52 billion euro, which makes Germany the No 1 destination for Serbian exporters. The external trade grew by 12.5% relative to 2017, and amounted to the record-breaking 4.88 billion euro, which is twice as much as the trade value in 2008.

In the last ten years, the Serbian export to Germany grew 2.5 times, to the value of 1.94 billion euro.

Export-oriented German investments have been significantly contributing to the growing export to the German market for years. Last year, almost 2,500 companies from Serbia – about 650 more than five years ago – exported to Germany, with 13 German companies making it to the list of the top 20 exporters to Germany, with a 40% share.

“Notwithstanding the latest investments, which are currently being implemented, the investments made by German companies in Serbia have exceeded 2 billion euro,“ says Marko Čadež, President of the Chamber of Commerce and Industry of Serbia.

German manufacturers have also contributed to substantially improving the structure of our commodity exports in favour of higher processed products. "More than 90 percent of our exports to Germany comes from the sale of industrial products, 51 percent are machines and transport equipment, and almost a third of the goods we export to Germany are final products," our interlocutor adds.

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Regardless of the aforementioned, Serbia is still recording a major deficit in trading with Germany?

 The fact remains that last year’s trade deficit increased considerably; to around one billion euro. However, it is important for the Serbian economy that this was due to the increased import of state-of-the-art equipment, machinery, intermediate goods for the needs of German and other investors in Serbia, and that that brought new technologies and modernization of the Serbian industry. Our desire is to have a more balanced external trade in the coming years. Of course, this balance should be as strong as possible, bearing in mind the huge differences in the capacity of the two economies and the need to import products that we can hardly substitute for a short period of time.

OUT OF CLOSELY 50 COMPLETED, INSTIGATED OR AGREED INVESTMENTS LAST YEAR, MOST ARE GERMAN Unlike trading in goods, Serbia has recorded a surplus in trading in services which, last year, grew by almost a third. In 2018, Germany was the top partner to Serbia in the overall value of trading in services – 885 million euro, and the revenue generated from exporting Serbian services – 590 million euro.

Do you expect that the slowdown of European economies, including Germany's, could have consequences on the external trade and the influx of German investments to Serbia?  The slowdown in global growth always carries great risks for small and external-

ly dependent economies, such as ours: the danger that smaller economic activity, especially in the countries that are our major partners, will cause the reduction in demand for our products and serviced could postpone previously planned investments and limit investment operations of the German companies that are already doing business here.

In terms of Germany, which is the strongest economy in Europe, I am confident that, relying solely on its power, the country will manage to find the right answer to global challenges, as always, and that, despite the slowdown in the global economy in the fourth quarter, it will continue to expand in a stable manner in 2019 too. All the more, since, in 2018, Germany was again the country with the highest surplus in the balance of current payments in the world.

The latest official statistical data came as a pleasant surprise to cautiously pessimistic economic analysts who said that Germany's imports and exports, not only on the annual level but also in December relative to November, increased more than it was expected in this situation.

We often hear German companies talking about a lack of sufficiently qualified workforce in Serbia. What can Serbia do to mitigate this problem that the domestic companies are facing too, apart from implementing dual education?  In last year's survey conducted by AHK, German companies, which operate in Serbia and employ over 55,000 people here, expressed their satisfaction with the productivity and motivation of employees, their qualifications, academic education and labour costs, as well as the quality and availability of local suppliers. 56 percent of the survey participants announced the recruitment of new workers. Dual education was introduced in high schools based on the good experiences

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The brain drain

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FOREIGN, AND ESPECIALLY GERMAN INVESTORS, ARE OUR BIGGEST ALLIES IN REDUCING UNEMPLOYMENT AND PREVENTING THE BRAIN DRAIN Germany 2019

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of German investors which they shared with us, that pointed to a solution to the problem that the entire economy - both foreign and domestic companies – is facing.

The introduction of dual education in high schools was the first big step in harmonizing the educational system with the needs of businesses and rapid technological changes. Today, there is a fitting environment to change the curricula at all levels of education. The Chamber of Commerce and Industry of Serbia participates equally in devising school enrollment plans.

How do you explain the low workforce activity rate, despite the strong demand for workers? What can be achieved through re-training measures considering the unfavourable structure of the unemployed and work inactive persons?  The mismatch between the educational system, on one side, and the needs of the economy and rapid technological changes, on the other, lack of qualifications, knowledge and skills in workers that companies need, the lack of professional orientation and guiding students towards getting jobs that are in demand in the labour market, poor worker mobility in individual countries and in the region, non-compliance with national regulations and standards – these are just some of the problems that all the economies of the region face, along with the high unemployment, especially among young people, lack of adequate workforce, many vacancies, brain drain and delay in investments due to insufficient number of suitable workers. Serbia is already cushioning this through dual education and other education reform activities.

In terms of re-training, this is one of the ways to correct irregularities and shortcomings in the education system in the previous period. But the gist here is to adapt education system to the needs of businesses.

To what extent will the liberalization of the German labour market affect the brain drain in Serbia?  The fact that, according to the latest Eurostat data, the EU needs 3,800,000 additional workers, of which Germany alone needs 1,200,000 high school and university graduates, represents an additional challenge for both Serbia and all Western Balkan economies. It is now certain that, come January 2020, the visa process for the people from the Western Balkans will be simplified, and that many people will try to get a job in

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IN DECEMBER, THE GERMAN AUTOMOTIVE SECTOR AGAIN STARTED THE UPWARD TREND, WHICH IS VERY IMPORTANT FOR US, SINCE THE LARGEST NUMBER OF GERMAN INVESTMENTS IN SERBIA ARE MADE IN THE CAR PARTS INDUSTRY Germany in competition with their EU peers, with many of them actually getting one. As a result, they will have a better salary, and better working and living conditions, as well as greater opportunities for training and further education.

The new EU Member States have already had to deal with this problem immediately after their accession. Regardless of this, borders should not be closed because nobody is entitled to deny this guaranteed right and the opportunity for people to go where they will have better opportunities for their personal and professional advancement. Our only rational response to this is

building a more inclusive environment, including the labour market, conducive to the growth and development of our economies.

Do you think that the German investments in Serbia will be jeopardized if the brain drain becomes very pronounced?  I really don't think that that will happen.

Serbia offers to foreign investors a whole array of reasons to invest in our economy, including the quality of the workforce, with which German investors are satisfied, despite the lack of certain worker profiles, which we are working together to eliminate. Foreign and especially German investors are our biggest allies in reducing unemployment and preventing brain drain. The more of their investments, new factories and new jobs we get, the more work will our companies have more and our people will have more reasons to stay and work here.

Foreign investors will significantly contribute to keeping people here by sharing their experiences, as in the case of dual education, transferring their well-established work and earnings policies to Serbia, opening training centres here, like Siemens did in Kragujevac, and enabling their workers to improve and further educate themselves at local factories, their headquarters in Germany and branch offices around the world.

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MORE SERBIAN SPECIALISTS NEEDED MARTIN KNAPP

Director of the German-Serbian Chamber of Commerce

Investors, who are coming to Serbia today, are bringing more sophisticated production technologies than a few years ago. These companies, of course, need employees with higher qualifications. They are aware that shortage of the skilled labour may soon be an important issue in their decision making

erbian government is oriented towards the economy like few other governments in Southeast Europe, both present and past says Mr Martin Knapp, Director of the German-Serbian Chamber of Commerce. The amounts of the foreign investments in Serbia, as well as the

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presence of German companies in Serbia are speaking for themselves about the attractiveness of the economy. However, in spite of these efforts, some administrative burdens are still proving to be resistant to changes. One of them is for sure the every company has to go for if they want to send

and employee abroad. In times when more and more services in Serbia are becoming digitalised this one seems to be bullet proof, living up to standards of the former socialistic economy. It is one of these obstacles to which Mr Knapp is tirelessly pointing out: “Unfortunately, the dismantling of some old

bureaucratic structures is something we are still waiting for”.

However, in this interview we spoke about some new issues which are coming into focus. Although, the Serbian government was quick to introduce dual education in the secondary education and is moving forward in tackling vocational education at the tertiary level, shortage of the qualified workforce is becoming an issue to which many foreign and domestic companies are pointing out.

It has been frequently mentioned that the lack of skilled labour is the key obstacle to Serbia's economic growth. How often have German companies, operating in Serbia, encountered this problem?  The subject is becoming more and more important. There are several reasons for this. Today, investors are coming to Serbia to produce products with a greater vertical range of manufacture or – with other words – more sophisticated production technologies than it was the case a few years ago.

These companies, of course, need employees with higher qualifications. At the same time, employers in several European countries are recruiting Serbian specialists, so that the skilled work force in the country is further reduced.

You have recently indicated that you expect the Serbian government to undertake measures that could alleviate this problem. What are your expectations when it comes to retraining the workforce? Which job profiles could be the most in demand?  Through a survey among Serbian industrial companies, we discovered that enterprises have very different ideas about continuing education. The willingness to invest in the further training of their employees is

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also varying. Therefore, we expect the same thing to happen as in Germany. The market for continuing training there is largely in the hands of private providers offering courses that meet the needs of companies. The first educational institutions with a German background have already established themselves in Serbia. If you ask which professional profiles our companies are particularly interested in, these are of course the profiles that the industry needs, such as CNC operators, industrial mechanics, electronics engineers, mechatronics engineers and many more.

But there is also a demand for retail merchants or forwarding agents.

On the other hand, what are your expectations regarding the forecasted slowdown of the German economy? Will this slowdown affect the pace of German investment activities in Serbia?  I'm not a prophet. Who knows what dimensions the expected slowdown will take?

However, we must add that part of the shortage of skilled workers does not depend on the good, for the time being, economic situation only, but on the demographic structure in Germany.

THE ABSOLUTE LEVEL OF TAXATION PLAYS A ROLE IN DECIDING WHICH COUNTRY TO INVEST IN. HERE SERBIA, LIKE ANY OTHER COUNTRY, MUST ENSURE THAT IT REMAINS COMPETITIVE

What are your expectations from the ongoing reform of the tax system and tax administration?  The absolute level of taxation plays a role in deciding which country to invest in. Here Serbia, like any other country, must ensure that it remains competitive. Moreover, contrary to what many people believe, most companies have no problem with paying taxes. However, it is very important to be able to plan. What is not acceptable at all are short-term tax increases, which can overturn all calculations.

How much is this problem currently affecting German companies in terms of making the decision to invest here? What are the key reasons for them investing in Serbia, in addition to the workforce?  The problem of the shortage of skilled labour in Germany is the most important reason why German companies are relocating their production abroad. It is well known that Serbia is slowly becoming tight, but the same applies to other European countries as well.

Even in China, the labour force has become significantly more expensive.

How would you rate the development of government services aimed at businesses so far?  One thing must be conceded to the present government. It is oriented towards the economy like few other governments in Southeast Europe, both present and past.

Unfortunately, the dismantling of some old bureaucratic structures is something we are still waiting for. We still have to get money from the bank for every employee who travels on a business trip and then return to the bank what he or she brings back from the trip, just like in good old socialist times...

Most wanted professions

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OUR COMPANIES ARE PARTICULARLY INTERESTED IN CNC OPERATORS, INDUSTRIAL MECHANICS, ELECTRONICS ENGINEERS, MECHATRONICS ENGINEERS AND RETAIL MERCHANTS OR FORWARDING AGENTS Germany 2019

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CORPORATE

Continuity is One of the

SECRETS OF SUCCESS DRAGAN SIMOVIĆ General Manager of Gebrüder Weiss Serbia, Member of Managing Board of AHK Serbia, adviser to first deputy PM for international economic cooperation

GW is constantly investing into the development of their services, while introducing modern logistics solutions and building traffic/transport infrastructure. As a global company, it has a logistics network and connection to regional, European and global logistics networks and markets

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oday, Gebrüder Weiss (GW) is a globally active company, and its development in the transport and logistics sector has been going on for over 500 years. The company’s history also reflects the political and economic development of the Austrian region and other parts of Europe.

How much can Serbia learn from the business principles of family-run companies that have evolved into big international companies like GW? — Gebrüder Weiss is the oldest Austrian freight forwarding company, which has remained family-owned since its inception and is one of the oldest family-owned companies in Europe. The advantage of such companies is the quick communication with the owners and the Board of Directors, unlike in large multinational companies which have a clear organizational structure in which it takes branches a long time to reach the top management.

Serbia can learn how to get involved in the development of required workforce. In Austria, Gebrüder Weiss has been committed to participating in dual education for almost 80 years. At this moment, 233 students are giv-

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en the opportunity to train in 30 locations in several countries, and many students are now employed in our company.

We are proud of the fact that, last year, in Serbia, GW signed a dual education agreement with a Traffic Engineering High School in Zemun, and that we currently have six second-grade students. What impressed us the most was the fact that pupils were responsible, diligent and eager to get to work. In 2019, we

AGREEMENT

We are proud of the fact that, last year, in Serbia, GW signed a dual education agreement with a Traffic Engineering High School in Zemun

applied for another three new students, and in 2020, we are going to apply for six more.

The biggest advantage of dual education is that it is a 'win-win' situation for both young people and employers. Students have a great opportunity for employment after completing quality education, while, on the other hand, companies get qualified and trained workforce Gebrüder Weiss operates in all countries of the region. What are the benefits of cooperating with a company which customers can rely on in any Western Balkan country?

— In addition to its presence in Europe and the Balkans, GW is growing eastward – toward Kazakhstan, Georgia, and Armenia, and the countries on the Silk Road route.

Certainly, it is a great advantage that companies that need our services have one logistics provider that can service them from one

centre. For example, if a multinational company comes to this region, they usually choose Belgrade as a seat. In this way, they globalize their business and they don’t need to have agreements with five different offices in five different countries. On the contrary, they conclude an agreement with a single office and as a result, operate in all territories. This is how they cut costs, save time and resources, and get a superior service.

Strict standards implemented by companies require high-performance logistic solutions.

From procurement through production and delivery to the spare parts market – today, a perfectly functional logistics chain is crucial in the market game. On top of that, if it takes just one company to round off a business in an entire region, everyone is winning.

Does Serbia have favourable conditions for attracting new investors in the automotive industry, and what is the situation with the logistics sector?

— The current government has done a lot in the last couple of years to improve the economic environment. Reforms have taken place, and the state is helping a lot of foreign investors.

Serbia's development agency is also of great assistance to big investors, and there is an increasing number of family-run companies that are coming to Serbia.

For instance, China is no longer interesting as an investment destination, because it ties in the capital for far too long – there is a long way from production to delivery. On the other hand, it is pretty obvious that in this region, and compared to Bulgaria and Romania, Serbia is the best investment destination. There are many factors that have contributed to this, but I would like to underline the quality of the workforce. It is precisely for this reason that Serbia has imposed itself primarily on Germany, which already has a good experience with the Serbian workforce.

The biggest problem that European countries are facing is workforce. Serbia is No. 1 because it has a professional and educated workforce and I think that that is the most important thing in attracting foreign investors; much more important than, let’s say, cheap labour.

You put a great deal of focus on development of your employees. What employee training programmes do you run?

— The company is made of employees, and if you want to progress, you have to invest in your employees who are professional, valuable and loyal. And if you do not have that, your business can fold like a house of cards.

Gebrüder Weiss sees its employees as its biggest capital and puts their satisfaction at the forefront. Investing in our employees is an investment in the future of the company.

Continuity is one of the secrets of Gebrüder Weiss' success. Through continuous professional training and seminars, we ensure a high level of professionalism in our business. We have helped our employees to build a foundation for their careers in our company through education and training programmes. GW views professional training and improvement as a strategic success factor. Employees should be prepared for current and future requirements in the company.

FURTHER GROWTH

In terms of business results, we are extremely pleased with the year behind us, and we expect further growth for this year We also pay a great deal of attention to having a wide range of various types of training which is why, back in 1988, we set up a foundation that finances training programmes. With young people, university graduates and people with a big potential in mind, Gebrüder Weiss has devised a training programme and a programme for boosting one’s potential called OrangeFuture. This training programme was set up in 2004 and since then has been regularly implemented. The programme lasts for one year and during that period, attendees work for several sectors in the company which, subsequently, gives them a wide range of work competencies. This is a life-long learning.

What are the company's further plans in re-

gard to development of its services?

— In February this year, we agreed on a new, 3-million-euro investment in our warehouses in Serbia. So far, GW has invested 17 million euro in Serbia and we are continuing to do so.

We got more business with the arrival of multinational companies here, particularly automotive ones. It's no longer a problem to get a project but to realize it. The big problem is the lack of drivers who are leaving to work abroad. If something does not change, we are going to be left without drivers by 2021. Germany has announced labour liberalization in 2021, and once this happens, we are going to have a problem with transporting goods from

point A to point B. In terms of business results, we are extremely pleased with the year behind us, and we expect further growth for this year.

You are a member of the Steering Committee of the German-Serbian Chamber of Commerce. How important is the cooperation with German companies and what can we learn from it?

— The German-Serbian Chamber of Commerce is not only at service to German companies, but also to Serbian. If a German company intends to invest in Serbia, the first thing it does is get in touch with the German-Serbian Chamber of Commerce which gives it a realistic overview of the current situation in the country. The Chamber also works on propagating the business climate, which is good, and this is best seen from the business environment survey that we conduct every year. The survey has shown that 95% of the surveyed companies would re-invest in Serbia. This is an indicator that Serbia is a good investment destination and that the economic climate is improving.

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CORPORATE

Innovations in

JUBILEE YEAR ZORAN DJURIĆ General Manager of Miele

Although, the Miele Company has a long tradition in most parts of the world, in 2019, we are going to celebrate the 10th anniversary of its official presence in Serbia

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ince its inception, Miele has been focusing on the development of products that are distinguished by their quality, performance and which set the standards of durability, energy efficiency and simplicity of application whether we are talking kitchen appliances, washing machines, floor maintenance devices or other devices from the Miele Professional line.

An important jubilee period is ahead of us, as is launching of the new generation of builtin appliances from the G7000 series, which, after six years, will replace G6000. In addition to technically and technologically superior functions, the new generation also has a very modern design that easily fits into every interior, says Zoran Djuric, General Manager of Miele.

When you were appointed the general manager of Miele Serbia you had a task to establish this brand as completely new in Serbia although it had been present in the country

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for some time already. What benefits did you reap from setting up your own specialized shops? —Although, the Miele Company has a long tradition in most parts of the world, in 2019, we are going to celebrate the 10th anniversary of its official presence in Serbia. In 2009, when Miele Serbia was established wasn't really the best year to position a premium household appliance brand in what was a very sensitive

COMMITMENT

The excellence of Miele's devices is accompanied by the equally important commitment to our customers, as we provide fast delivery, assembly and quality professional after-sales service

Serbian market, especially bearing in mind that the global economic crisis was still at its height and had a significant impact on economic conditions in Serbia too.

2012 was the key year for us since it was then when we opened our first shop in Novi Beograd, in 64a Zoran Djindjic Boulevard. By doing so, we provided our consumers with an opportunity to get properly acquainted with our products and testify to their quality. We actually do not call our sales outlets „stores“, because they are not that in the classical sense of the word. They are rather Miele's "experience" centres. Our idea is to enable our visitors to "experience" our devices as soon as possible and receive expert advice on the basis of which they will make a choice that perfectly suits their needs and will raise the quality of life. All our appliances are active and can be tested. We are especially pleased that our consumers feel very comfortable in our sales outlets, which is confirmed by the fact that they often spend a couple of hours getting acquainted with the products while sipping on coffee made by one of our coffee machines.

Since our first store has set a healthy foundation for spreading awareness about our brand in the Serbian market, plus it has accomplished very good results, it was only logical to open another sales facility in July 2016 in downtown Belgrade, in 2, Balkanska Street. This store has managed to secure „a slice“ of the market "cake" for itself. We want to bring our products as close to customers as possible, so these days, we are busy searching for a location that would be ideal for our third sales facility.

What kind of novelties can we expect from Miele Serbia in the following period??

— An important jubilee period is ahead of us, as is launching of the new generation of built-in appliances from the G7000 series, which, after six years, will replace G6000. Just like every generation before it, the new generation brings a handful of innovations and a host of revolutionary solutions in the field of technology, efficiency and design. One of these solutions was presented at the World Technological Innovation Fair (IFA) in 2018 in Berlin. I am talking about the G7000 dishwasher with a unique PowerDisc function that automatically doses the required amount of detergent depending on the programme, while guaranteeing maximum results, efficiency and ease of use. For example, if the dishes are less dirty, the machine will automatically reduce the amount of detergent used by a quarter.

Another innovative product, which is already available in our market, is the latest

standalone CM 7750 coffee machine with the patented CoffeeSelect function. This appliance allows even greater flexibility and enjoyment. It has three separate containers for different coffee beans. For instance, you can use it to make espresso, or creamy coffee, or decaf coffee.

In addition to technically and technologically superior functions, the new generation also has a very modern design that easily fits into every interior.

This year, Miele celebrates its 120th anniversary. What makes this brand so long-lasting?

— Since its inception, Miele has been focusing on the development of products that are distinguished by their quality, performance and which set the standards of durability, energy efficiency and simplicity of application whether we are talking kitchen appliances, washing machines, floor maintenance devices or other devices from the Miele Professional line.

This is embodied in our guiding idea „Immer Besser – Forever Better“ which is still the company's motto and promise. The excellence of

THE GIFT

In regard to Miele's products, maybe our coffee making machine would be an ideal gift considering that this is an appliance that we use to make a beverage that we all enjoy on a daily basis

Miele's devices is accompanied by the equally important commitment to our customers, as we provide fast delivery, assembly and quality professional after-sales service.

Considering that Miele’s products are often purchased as a gift, could you recommend a Miele product to our readers that you would buy in an instant too?

— When picking a gift we usually choose something that will make the recipient happy and contribute to their satisfaction. Purchasing a household appliance is a rational choice since we are buying an appliance which goal is to perform a concrete task.

In regard to Miele's products, maybe our coffee making machine would be an ideal gift considering that this is an appliance that we use to make a beverage that we all enjoy on a daily basis. Another good choice could be our robot vacuum cleaner, Scout RX2 which you control via the Miele MobileControl application and which Quattro cleaning power guarantees first-class results and satisfaction due to the fact that this vacuum cleaner completely replaces a user in performing this tedious household chore.

You won't go wrong if you choose one of Miele's trademark washing machines which have a 20-year-durability and are made from top-quality materials with state-of-the-art technology and contemporary design. Even the famous Steve Jobs experienced Miele's washing machine and had the following to say:“Miele really thought the process through. They did such a great job designing their washers and dryers. I got more thrill out of them than I have out of any piece of high tech in years.“

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CORPORATE

Right place for

INVESTMENT

CLEMENS SACHS AND DANIJELA IVKOVIĆ Managing Directors, LEONI Wiring Systems Southeast d.o.o.

In 2020, Leoni will open factory in Kraljevo the fourth one in the row in the last decade, since it came to Serbia. The most important date was the start of its first factory in Prokuplje in 2009 from which the success story began

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n 2020, Germany's Leoni will be employing over 10,000 people, which will make this company the biggest employer in the industrial sector in Serbia. The new factory in Kraljevo will employ 5000 by 2023, and will be the biggest contributor to the employment in Leoni. When the factory is completed, Serbia will be the only European country within the Wiring System Division with four production units.

Leoni is a global provider of products, solutions and services for energy and data management in the automotive sector and other industries. It has big plans for Serbia, which was confirmed at the semi-annual meeting of managing directors, held outside Germany for the first time in 10 years, in Niš in late September last year.

The company quoted the availability of workforce, a remarkable work ethic and the level of expertise of people in Serbia, as well as the flexibility and the openness of Serbia,

as the reasons to choose the country as an important destinations of its investments.

We spoke with Clemens Sachs and Danijela Ivković, Managing Directors of LEONI Wiring Systems Southeast d.o.o.

This year, LEONI Serbia marks 10 years since its establishment and launch of operations. With this experience behind you, what message do you have for your fellow investors from Germany? Why should they invest in Serbia?

PLANS

We will try to establish LEONI Serbia Research & Development Center which will be of big importance to our next projects

— Mr. Sachs: I can say from LEONI experience of doing business here, that Serbia is very interesting country to invest in, at first, in point of labor market, then for the support from the Government and also, which is important for our labor business, are people here who have a good mindset and want to develop and to improve the country.

What stages of your decade - long operations in Serbia would you say were crucial for your business?

— Mrs. Ivković: As you may know, we started our business in Serbia in 2009, opening our first plant in Prokuplje. That was the most important moment for our company which made foundation for our further investments in Serbia. After that, followed next very important stages: opening plant in Malošiste (Doljevac Municipality) in 2014; opening plant in Niš in 2017 and start of construction works for our fourth plant, in Kraljevo in 2018.

Kraljevo eagerly awaits the beginning of the construction of your new factory. Considering the pace of the construction work, do you think you'll be able to implement the original plan?

— Mr. Sachs: Our fourth plant, in Kraljevo will be our biggest plant in Serbia with approximately 50.000 m2 production area and 5.000 new working places. According to our current progress, we are fully in line with our planning and we do not see any deviation, meaning that the project is not under risk and is not below the scheduling.

After this factory is finished, are you planning more investments in Serbia?

— Mrs. Ivković: After plant in Kraljevo is finished, we will continue to develop our current business in our existing plants. What we will try to fight for in the near future is to establish LEONI Serbia Research & Development Center which will be of big importance to our next projects.

Business people here often say that they are faced with the lack of quality staff. Why are you so confident that you will be able to find the needed 5,000 workers in Kraljevo by 2023?

INVESTING

From the LEONI standpoint, Serbia is very interesting country to invest in, due to its labor market, the support from the Government and due to people who want to develop the country — Mr. Sachs: I would say, no master is falling from the sky. What we are doing here, which is LEONI philosophy, to make a good selection process, to recruit people who are capable and to give them necessary training that will bring them on a level to work according to our requirements. We have chosen Kraljevo location based on our investigation which shown that there is a potential to found this planned number of people to employ.

Do you think that the projected slowdown of the German economy could jeopardize your plans in Serbia?

— Mr. Sachs: When we are speaking about automotive business in Germany, there is a short decrease, but we are not expecting to have downsizing here in Serbia. Our business here is split in producing for two premium customers, for BMW and for Mercedes Benz which both are showing stable yearly increase, producing more cars.

How many students have applied for your scholarship competition?

— Mrs. Ivković: Last year LEONI Serbia started for the first time its scholarship program.

So far we granted 15 scholarships to best students from Niš University. I am very proud that till now, 6 of them, after graduation, got the opportunity to start their professional career in our company. This year we continue with the program too. The selection process is still ongoing, and I hope, when finished, we will got another, second generation of best sholars that our company will support in their education and that they will later join our big LEONI Serbia team.

What kind of worker profile do you miss the most in Serbia?

— Mr. Sachs: What we are seeing on the labor market in Serbia that more and more people are leaving the country looking for a job. The one trend is that people are leaving Serbia to go abroad to work, and the other is that people are going to the capital Belgrade where they have more opportunities to work than in other parts of Serbia. In our business, we “feel” the consequences of these trends also, specially facing with lack of qualified quality control engineers, production engineers, industrial engineers.

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CORPORATE

Digitization increases

EFFICIENCY STEVAN JOVIĆEVIĆ General Manager of Tahograf BG

We are confident that the practice will show that the full utilization of the new features provided by the "smart tachograph" gives a market advantage to those carriers that decide to use it. Our priority is to provide professional support and clear information on the proper use of analogue and digital tachographs

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igitization is increasingly changing the way we work and run the business. We have talked to Stevan Jovićević, General Manager of the Tahograf BG Company, about what kind of novelties these changes bring in organizing transport.

What does a "smart tachograph" offer to carriers?

— The application of the smart tachograph will begin in the European Union on June 15th, 2019.

It will be mandatory for each newly produced vehicle that is registered in an EU country for the first time to own the latest generation of tachographs, which will ensure new functions to professional drivers and carriers.

The most important functions are focused on more efficient and reliable compliance with the regulations on driver's working hours, in a way that, in real time, the driver will have reliable information about the remaining driving time, their next break, daily or weekly rest, etc.

With the standardized work-time calculation software, drivers will be exempted from parallel logging and through their smartphones and free apps, they will have relevant data on their working hours, while all functions of the tachograph will be displayed in a clear and understandable way.

The tachograph will also have a vehicle monitoring module, which will provide information on the position of the vehicle in cer-

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tain time periods. In this way, the carrier can better plan the efficiency of vehicle operation and increase profitability. The carrier can also receive a variety of other vehicle information via the tachograph, such as, for instance, the engine speed or oil temperature. It is clear that the new generation of tachographs will improve the driver's work, and in return, the carrier's operations.

How willing are the carriers in Serbia to use all the advantages of the smart tachograph in line with the Law on Working Hours and Tachographs? What's the situation like in the region?

— International and domestic carriers, which are registered in the Republic of Serbia, at this moment do not have to use a smart tachograph. Our plan is to hold informative seminars in the coming period, where we will present the advantages of smart tachographs and new features that enable easier compliance

BETTER PLAN

Thanks to the smart tachograph, the carrier can better plan the efficiency of the vehicle and increase profitability

with the mentioned law. We are confident that the practice will show that the full utilization of the new features provided by smart tachographs gives a market advantage to those carriers that decide to use it, since competitiveness, considering the current conditions in the transport sector, is a high priority. The utilization of smart tachographs in the neighbouring countries, that are EU members, officially starts on June 15th. This will also be significant for Serbian carriers that buy new vehicles after that date.

What are your plans and priorities in the coming period?

— The amendments to the Law on Working Hours and Tachographs, made in December 2018, brought about novelties for drivers and carriers alike. Together with its partners, Tahograf BG will hold 8 informative seminars covering several fields, where we will present tools that facilitate the good implementation of the aforementioned law while, at the same time, raise the competitiveness of the carrier. Our contract partners will have the opportunity to ask questions and clarify the dilemmas that relate to driver's working hours, the correct use of analogue and digital tachographs and the tools that facilitate the compliance with the relevant regulation. Our priority is to provide professional support and clear information on how to act.

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CORPORATE

We Constantly

INNOVATE

GORDANA BRAŠIĆ President of Henkel Serbia, and Head HR for Serbia, Bulgaria and Romania

Numerous acknowledgements and rewards, both by consumers and among the Henkel company prove that our business strategy is on the right track. We will stay focused on further development and investments in our production facilities and innovations

H

enkel has been operating in Serbia since 2002 combining modern technology and tradition. We asked Mrs Gordana Brasic, President of Henkel Serbia, and Head HR for Serbia, Bulgaria and Romania, in what way are you continuing to innovate and at the same manage that brands retain the tradition they have.

“Henkel’s brand essence is entrepreneurial spirit, we were created as entrepreneurs and this value allows us to last for more than a 142 years. Since our arrival on the Serbian market on 2002., we have invested more than 200 million euros in numerous projects of modernization and improvement of production technology”, says Brašić. “Our team is bold and trustworthy, we innovate constantly in order to offer our customers additional value with our brands and services. We listen carefully to the needs of our consumers and therefore we manage to maintain a balance between traditional and modern values”, says our interlocutor.

How satisfied are you with the results in 2018, and what are your business expectations for this year?

— Last year was very important for us in terms of investments, since we opened new Somat factory in Kruševac, an investment worth 20 Mio EUR. Thanks to the mentioned investments and constant growth of production in

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our factory in Krusevac, we are exporting our products to more than 36 regional, European and world markets. Our volume of exports in 2018 ranked us among the 15 largest exporters in Serbia. Despite challenging market conditions, our business units were able to maintain and improve positions. Numerous acknowledgements and rewards, both by consumers and among the Henkel company prove that our business strategy is on the right track. We expect the global and local market conditions to remain challenging, however we will strive for the further realization of the plans and global Henkel 2020+ Strategy.

Henkel is very devoted to sustainable business and circular economy, and is one of the founders of the Alliance for the Removal of

EXPORT

Thanks to the investments in Somat factory and constant growth of production in our factory in Krusevac, we are exporting our products to more than 36 regional, European and world markets

Plastic Waste. How important is investing in sustainability?

— Our commitment to leadership in sustainability is anchored in our corporate values so membership in the Alliance is quite a natural and logical move for our company. We are pleased that besides us there are many companies that truly care for the community in which they operate as well as for the benefit of the entire planet. Following Henkel's Sustainability Strategy, Henkel Serbia has achieved significant savings in water and energy consumption, as well as waste generation. Our factory in Kruševac was the first in Serbia to receive ISO 50.001 energy efficiency certificate, as well as the international Gold LEED certificate for leadership in energy design for environmental protection.

What are the further development and investment plans in Serbia, given that Henkel Serbia represents an important part of the company on a global scale?

— We will stay focused on further development and we will continue to invest in our production facilities and innovations, as well as in our employees which are the core value and pillar of our company. Henkel stays committed to being a reliable partner of the community in which it operates, believing that business results are complete only in strong and healthy environment.

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C OOPER AT I O N

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PARTNER NO.1

Germany is a second biggest export market for Serbian products and the largest import partner, while German investors are among the most important foreign investors in our country

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Serbia and Germany have many economic ties, even from the time of the German Empire and the Kingdom of Serbia, and after-WWI Germany and Kingdom of SHS (later Yugoslavia). After the WWII, West Germany and East Germany became different partners, with a lot of cooperation between the relevant stakeholders while the „Gastarbeiters“ were mostly heading north, towards Germany. After the turbulent 1990s and post-2000, Germany has become one of the two leading economic partners of Serbia, alongside Italy.

S

GERMAN FDIS Today, companies from Germany employ more than 55,000 workers in Serbia and their number stands at around 400. In 2018, the value of the external trade between the two countries was almost 5 billion euro (4.9 billion, to be precise). This is a really great increase. To remind, between January and July 2018, the value of the total commodity trade between the two countries amounted to 2.83 billion euro. Serbian exports to Germany stood at 1.15 billion euro, while the imports amounted to 1.68 billion euro. In 2017, the trade in goods between the two countries exceeded the amount of 4 billion euro for the first time and amounted to 4.34 billion euro, representing an increase of 10.3% compared to 2016, when the total external trade was lower by as much as 404.3 million euro and amounted to about 3.94 billion euro.

Earlier, in 2015, the value of the total external trade was 3.5 billion euro, which was a 12.1% increase compared to 2014. So, 1.4 billion in just 3 years is a magnificent improvement. Various programmes, implemented in cooperation with the Government of Serbia, local institutions, the German Development Agency (GIZ), the German Development Bank (KfW), as well as numerous partners, support reforms and changes that are primarily focused on sustainable econom-

the AHK member companies, almost 90% of them are willing to invest again in our country. That is why AHK Serbia is a strong partner in creating a proper business environment and a leader in networking between foreign and domestic business people and investors.

TODAY, COMPANIES FROM GERMANY EMPLOY MORE THAN 55,000 WORKERS IN SERBIA AND THEIR NUMBER STANDS AT AROUND 400

GERMAN LABOUR MARKET

ic development. One good thing for the economy is that Serbia’s debt in the amount of 18.5 million euro, owed to the Paris Club, was written off thanks to the Government of Germany in December 2018, due to good performance and economic results.

According to the survey of the German-Serbian Chamber of Commerce (AHK Serbia) on the economic environment in Serbia, which is taken annually among

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Another thing that we have noticed is the increase in the number of Serbian workers in Germany. This increase was a result of a two-fold approach - individual and organized, through détachement. Détachement is a special form of engagement of skilled labour from Serbia in Germany. On the basis of the Interstate Agreement of the Republic of Serbia, the workers from construction, metalworking and metal processing, installation, insulation, agriculture, forestry, mining, restoration and meat processing industry are entitled to participation in the

Easier export

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THE GOOD NEWS FOR GERMAN COMPANIES WILLING TO INVEST IN MANUFACTURING IN SERBIA IS THAT THEY CAN EXPORT THEIR PRODUCTS TO RUSSIA OR BELARUS IN AN EASIER WAY AND AT LOWER COSTS Germany 2019

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employment quota in the Federal Republic of Germany. The implementation of this Agreement comes under the jurisdiction of the Ministry of Labour, Employment and Social Policy of the Government of the Republic of Serbia.

THE VALUE OF TRADE DEALS Since Serbia has free trade agreements with such unions or countries like Turkey, Eurasian Economic Union or CEFTA, this is good news for German companies willing to invest in manufacturing in Serbia since they can export their products to Russia, Kazakhstan or Belarus (a vast and an emerging market) in an easier way and at lower costs.

One of the rumours is that perhap Volkswagen is willing to invest in a huge factory in Serbia or Bulgaria (not disclosed yet), and if it happens, it could be an investments of 1.4 billion euros, about 5,000 jobs on the 650 engineers, and just over 400,000 square meters of factory space. Bulgaria is a EU-member and it has its disadvantages. Namely, Bulgaria cannot state-sponsor the FDI the way the other can, since the EU laws about that are much stricter. Serbia is not a member and maybe the rules on granting state aid for it will not be so severe. Serbia can also take advantage of the fact that it has an agreement

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on duty-free trade with Russia and the whole Eurasian Union, but the export of cars that are just partly produced in Serbia could be negotiated according to the percentage of the manufacturing done in Serbia.

CONFIRMED, ANNOUNCED OR UNDERGOING INVESTMENT Four German companies, led by ZF from Friedrichshafen, a global leader in drive and chassis technology, in 2018 announced it would invest more than 250 million euros in Serbia and will employ a total of 4,000 workers in Serbia. ZF hails from the German province of Baden-Württemberg, which will open a factory in Pančevo. According to the

ACCORDING TO THE LAST YEAR'S ANNOUNCEMENT BY SERBIAN OFFICIALS, THE ZF WILL INVEST A TOTAL OF 160 MILLION EUROS IN PANCEVO AND EMPLOY MORE THAN 1,000 PEOPLE

last year's announcement by Serbian officials, the ZF will invest a total of 160 million euros in Pancevo and employ more than 1,000 people. As we learn, the Germans will build a complex of 25,000 square meters on a 10.8 hectare site in Pančevo in the industrial-business zone. In the first phase, 540 jobs are expected and later 500 more. In Pančevo, production of electrically driven axles, electric-powered electric motors, transmission electronics and the like are planned.

"Siemens", which has a wind turbine factory in Subotica, announced the opening of another factory in the industrial park in Kragujevac. According to announcements from this company, there will be wagon and tramway parts for the Siemens railway vehicles. The value of this investment is unknown, and it is expected that "Siemens" in Kragujevac will open several hundred new jobs. A large German manufacturer of spare parts for the auto industry "Vorwerk Autotec" will build its own plant in Čačak. The investor plans to hire 1,000 workers and invest about 50 million euros. "Vorwerk Autotec" is a major supplier and manufacturer for "Audi", "Daimler", "Volkswagen", "Porsche", "Chrysler" and BMW. Lidl is also expanding its network in few new towns and cities after the successful launch in 2018.

CORPORATE

Support and

CONSULTANCY TANJA JELIĆ International Cooperation Consultant at Expositur

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Expositur brings together a team of experts and associates with many years of experience in various fields

xpositur provides companies from Serbia with complete support in company inception in the Federal Republic of Germany and their performance in this market.

How much are companies in Serbia familiar with the possibilities and needs of the German market? What activities would you like to single out? Do some of them have a slight advantage over others?

— Construction and metalworking industry are best acquainted with these possibilities.

Even during the economic sanctions, when nobody was allowed to leave the country, qualified workers from Serbia were permitted to leave for Germany to build power plants there. Today, worker profiles that are deficient have some advantage in Germany, however, all the activities and products

that meet European standards have a great chance of succeeding in Germany, provided they have a developed business system in Serbia. Thus, the operations of our companies in Germany could contribute to the prevention of the permanent brain drain, since there is a possibility of a company doing the so-called internal staffing (inside the company) and send off its staff to work to Germany for a certain period of time which would meet the needs of both the workers and companies.

Although all of this sounds rather easy, it requires detailed planning, patience and implementation of required procedures for putting an infrastructure in place and recognizing diplomas and certificates in Germany for which you need a consultant who knows all about that. However, when we consider everything, entering the German market can

be a strategic solution for a company achieving long-term success.

Your team gathers experts from different areas who are critical to the emergence and operation of a successful company in Germany. Is this one of the motives for prospective clients to choose and trust you? Do your clients recognize their company in your work?

— Our biggest advantage is that our experts know the system, the way business is done and the mentality of both countries. The biggest problems arise from small misunderstandings.

Our clients have the habit of saying that we make their life in Germany easier.

I hope that in the future some of our brands, whether fashion, interior decoration, food or other, will recognize the opportunity for entering the German market and expanding their business in that direction.

Expositur is ready to provide the client with all the necessary advice and support before the company is founded in the Federal Republic of Germany in the following areas: accounting and book keeping, business, labor and migration rights and assistance in the formation and interpretation of contracts, marketing and representation of the company within the new market with the help of online marketing.

Expositur includes: • Advising and supporting legal and tax issues related to contracted projects • Project-specific advice on promotion and financing options • Establish contacts with local partners and networks • Organization of project site visits • Coordination of negotiations with public and private partners • Organization of the infrastructure of the German branch of the company • Help in personnel matters

•C ommunication with authorities, chambers of commerce and trade chamber in the Federal Republic of Germany • Accounting •B ranch administration • Balances • Insurance • Marketing •S ervices of using a virtual office and business address in the Federal Republic of Germany.

Expositur Venizelosova 25 11000 Belgrade Serbia Tel: +381 (0) 60 6243062 · +49 (0) 2641 8290842 · +49 (0) 1573 9442021 e-mail:info@expositur.eu www.expositur.eu

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CORPORATE

Inspiring

QUALITY

KRUNA GAVOVIC Marketing manager TMS CEE doo, CEO – The Lean Six Sigma Company CEE doo

TMS CEE achieved continuous and robust growth for several years now, with the last year as the best so far. Participation on major energy and infrastructure projects, development of new and sometimes exclusive services, like “Family Friendly Enterprise”, and GDPR services helped the company to excel

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MS (Technical & Management Service) is a regional brand and Cooperation partner of TÜV SÜD for the area of Central and Eastern Europe. Office in Serbia is responsible for other markets in the region including Macedonia, Montenegro and the Serbian Republic. We spoke with Kruna Gavovic, Marketing manager TMS CEE doo, CEO – The Lean Six Sigma Company CEE doo about the current trends in the market.

What is the current position of TMS CEE? — TMS CEE achieved continuous and robust growth for several years now, with the last year as the best so far.

Participation on major energy and infrastructure projects, development of new and sometimes exclusive services, like “Family Friendly Enterprise”, Corporate security and other services, helped in this achievement.

You have two roles – within TMS CEE and The Lean Six Sigma Company CEE? Which one has the priority for you?

— My role as a Marketing manager of TMS CEE is exciting and a challenging one, because

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the complexity of the processes and the demanded level of service quality are so high that each word and detail count in my position.

But our partnership with the most prominent EU company for Lean Six Sigma – The Lean Six Sigma Company from Rotterdam, Netherlands, is also demanding – it required raising the visibility and gaining the momentum, which we achieved in the last period.

Therefore, there is no priority role, my tasks are clear and it is not impossible to perform two roles when clear vision, proudness by roles and motivation exist, as here is the case.

EFFECTS

Unlike the ubiquitous ISO 9001 standard, Lean Six Sigma brings the economically measurable effects and is strongly connected with gains in money by bookkeepingrecorded way

How is the future for Lean Six Sigma on this market?

— Lean Six Sigma got into the focus after the 2007/8 crisis, by presenting a proven way of raising the efficiency and effectivity of the organizations. Unlike the ubiquitous ISO 9001 standard, Lean Six Sigma brings the economically measurable effects and is strongly connected with gains in money by bookkeeping-recorded way.

Therefore, the usage on our market, which is not money-saturated, can be only more needed than in the opposite markets.

We now have the team of world-class Master Black Belts available for our clients to bring them the experiences from the applying Lean Six Sigma concept in a number of the relevant world companies, using the proven and accredited concept from Netherlands and other economically mature markets.

What is positive is that not only the production companies use LSS now, but also the service organizations, in finance, logistics, IT, retail and other areas.

LSS has the high growth rate globally and I am confident about its future on our markets also.

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E C O N O MY

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MITTELSTAND IS THE KEY 38

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Despite other countries falling into recession, Germany has managed to grow its economy, create jobs, and reduce its national debt. It is true that euro was one of the factors that contributed a lot to German (and Dutch) success, but there is another magic world: Mittelstand

remember one day in the 1990s in Serbia when I was surprised to find out that one of my long-lasting acquaintances was wealthy. How come?

Mafia stuff of smuggling? Nothing of the kind! He was producing plastic coffee spoons. He opened the first factory in the isolated and sanctioned country and – boom! He did something that no-one actually came up with.

I

MITTELSTAND So, this is pretty much the German secret.

Small to medium-sized enterprises specializing in essential but easily overlooked products deserve much of the credit for the robust German economy. The Mittelstand is an economic model comprising middle class and family-owned businesses. Similarly, when I studied in Brazil, I was a guest of an enormously (for European standards) rich family, who had a swimming pool, large villa, barbed wire fences and CC TV monitoring of all the corners of the house. When I asked what they were doing for money, the answer was: we make nails, fasteners, needles and metal office items. That is the German secret, although the two aforementioned examples

were not German at all. However, they do show us how everything can be resolved by SMEs. Even I grew up in a rather well-to-do family of – pottery makers. And prior to 1992, that was a big thing!

MITTELSTAND PRODUCES OFTEN OVERLOOKED PRODUCTS AND IT FOCUSES ON FINDING ITS OWN MARKET NICHE With an estimated 99 percent of businesses that employ nearly 80 percent of the workforce, the Mittelstand is the backbone of the German economy. So how does the Mittelstand differ from any other market system? The Mittelstand “commonly refers to small and medium-sized enterprises in German-speaking countries, especially in Germany, Austria and Switzerland.” It is largely a conservative model, relying on rejecting acquisitions and mergers with big

companies, opting rather to establish longtime cooperation. The latest English publication on the Mittelstand firms by Prof. Bernd Venohr, Prof. Jeffrey Fear and Dr. Alessa Witt highlights that: "These companies are predominantly run by classic “owner-entrepreneurial families” (Unternehmerfamilien) seeking to sustain the business by instituting a core ideology of longevity, conservative long-term financing, and operating practices."

FACTS AND FIGURES The Mittelstand is quite opposite to the concept of shareholders in big companies that own the complete processing line. The two categories of 'classic' and 'upper' Mittelstand firms in Germany account for 68% of Germany's exports. In comparison, Germany's larger corporations generate 32% of Germany's exports. According to an article published in the journal, Die Deutsche Wirtschaft (The German Economy), the most important medium-sized enterprises—using absolute figures—are in North Rhine Westphalia (over 22%), followed by Bavaria (21%), and Baden-Württemberg (17%). The lowest ranking performers are Bremen, Saarland, and Mecklenburg-Vorpommern, each with

Invented for life www.bosch.rs As an international leader in technology and services, Bosch is committed to improving quality of life. 410,000 associates in the four business sectors Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology work on innovative and connected solutions every day. Our products spark enthusiasm, improve quality of life, and help conserve natural resources.

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an approximate share of 1%. However, when an assessment is done based on the size of population, the states of Hamburg and Bremen lead with 185 and 182 large medium-sized enterprises per 1 million inhabitants, respectively. The larger states of Bavaria and Baden-Württemberg follow close behind with 163 and 159 major medium-sized enterprises, respectively.

HOW TO ACHIEVE IT? The Mittelstand model is most specifically defined in the 2015 publication "The Best of German Mittelstand", which summarizes the distinct management model that "dovetails strategy, leadership and governance principles, with core processes in a unique blend,

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IT equipment

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THE FOCUS IS ON "INDUSTRY 4.0” WHICH PROPELS THE GERMAN MITTELSTAND IN PRODUCING HIGHCLASS IT EQUIPMENT 40

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WITH AN ESTIMATED 99 PERCENT OF BUSINESSES THAT EMPLOY NEARLY 80 PERCENT OF THE WORKFORCE, THE MITTELSTAND IS THE BACKBONE OF THE GERMAN ECONOMY

creating a finely tuned process." The idea is to find your market niche, to start the business with your family and achieve perfection in what you are doing. Now, the focus is on "Industry 4.0” which propels the German Mittelstand in producing high-class IT equipment.

WHAT IF? It is noticeable that in every country where the large multi-national companies rule, the local population is just a cheap workforce while the countries remain on the low end of development, despite the large FDIs or low unemployment. Hence, it is important for each person to be able to be their own boss. Otherwise the results will be weak, as noticeable in Serbia and Georgia, for instance.

Lepenički Bulevar br.39, 34 000 Kragujevac Tel: +381 34 330 870, 301 485 Fax: +381 34 301 485 E-mail: office@suncemarinkovic.com

The company SUNCE was founded on the 23rd august 1929 as a small family workshop for steel joinery, gates and fences. The founder Aleksandar Marinković was a well known craftsman whose gates beautify the city of Kragujevac even today. The company was named after the symbol of the sun on the stone bridge in the centre of Kragujevac that was made in Marinković’s workshop.

The craftsmanship and their values were passed like true family treasures to Aleksandar Marinković’s inheritors, his son Ljubiša and grandsons Dušan an Vladimir who continued the family business and tradition and now lead the company with over 100 employees.

Due to its eight decade long work and quality, SUNCE proudly takes a leader role in the joinery industry as a most successful company. There are over 20 highly qualified managers and over 80 competent craftsmen. They all stand behind the excellence of SUNCE products.

Sunce Marinkovic

www.suncemarinkovic.com

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A HK SER BI A

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REPRESENTATIVE OF THE INTERESTS OF A NETWORK OF MEMBER COMPANIES

In 2018, AHK Serbia organized over 50 events. 41 Serbian companies exhibited at fairs in Cologne, Munich and Nuremberg. Over 8,000 visitors attended the AHK events in 2018

Business Conditions Survey

ince the founding of the then Delegation of the German Economy in Serbia and the German-Serbian Economic Association in 2001 until the official establishment of the Chamber on April 14th, 2016, AHK Serbia represents the interests of member companies, provides information support to their business, and advocates the development and improvement of the German- Serbian trade and cooperation in all economic aspects. One of the tasks of the largest bilateral chamber in Serbia is advisory support to German companies when

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entering the Serbian market, as well as support to Serbian business people when entering the German market.

GERMANY IS ONE OF THE MOST IMPORTANT AND MOST RELIABLE ECONOMIC PARTNERS OF SERBIA

SURVEY ON BUSINESS CONDITIONS IN SERBIA IN 2018 For the 13th consecutive time, the German-Serbian Chamber of Commerce (AHK Serbia) conducted a study on the economic environment in Serbia among its member companies. German and Serbian companies, members of the German-Serbian Chamber of Commerce, positively assessed the economic climate in Serbia, expressed positive expectations regarding their own business and their satisfaction with the labour market.

Also, 85% of the surveyed companies would

Dual education

invest in Serbia again. As in previous years, the survey participants underlined the need for a more intensive fight against corruption, as well as bolstering legal safety and transparency in public procurement.

At present, there are close to four hundred German companies with more than 45,000 employees operating in Serbia, which undoubtedly indicates that Germany is one of the most important and most reliable economic partners of Serbia.

DUAL EDUCATION The German industry, as one of the leading economic powers in the world, has overcome a number of challenges over time thanks to a well-trained workforce and a dual education system that has been implemented in Germany for nearly a century.

That's why AHK Serbia is investing efforts to educate and better inform business people about their responsibilities in the process of introducing dual education in Serbia.

According to the new Law on Vocational Training in Serbia, which comes into

Dairy industry delegation trip. Study trip to Bavaria - hydro-energy

force in September 2019, the development of a digital instrument for accreditation of training companies is a very important element in guaranteeing consistently high quality in the vocational education system in Serbia. After numerous discussions and working meetings, together with the Austrian Chamber of Commerce, the Serbian Chamber of Commerce, the Ministry of Education and Economy, as well as represent-

AHK SERBIA IS INVESTING EFFORTS TO EDUCATE AND BETTER INFORM BUSINESS PEOPLE ABOUT THEIR RESPONSIBILITIES IN THE PROCESS OF INTRODUCING DUAL EDUCATION IN SERBIA

Biomass and biogas conference

atives of vocational schools, it was finally time to solve this issue. Accreditation indicators and relevant guidelines as a source of information for companies, developed under the guidance of our colleague from AHK Serbia, Oliver Herrlen, were made available as the final version in mid-December 2018. All participants unanimously agreed they had established a significant and balanced instrument for quality assurance in the field of "Dual VET Serbia". However, no tests were done in realistic situations. After a short survey, KĂźhne und Nagel has kindly opened its doors to some twenty people and allowed them to check new instruments.

After testing, minor corrections were made, which means that the instruments and described guidelines were finally ready for use from mid-January 2019.

Companies that want to enter the new dual system called Worked-Based Learning and apply for accreditation in the Serbian Chamber of Commerce can rely on consultations and numerous services provided by AHK Serbia.

Biomass and biogas conference

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German Purchasing Initiative - Frankfurt

EXPORT INITIATIVE PROJECTS GERMAN ENERGY SOLUTIONS INITIATIVE Within the framework of the export initiative projects of on the topic of energy efficiency and renewable energy sources, and under the auspices of the German Ministry of Economy and Energy, AHK Serbia organized a trip for a business delegation from Germany with a focus on biomass and biogas that lasted from 19th to 23rd March, 2018. An expert conference "Biomass and Biogas" was organized as a part of this project, at which seven German companies presented their services and the know-how to numerous Serbian companies and institutions.

BAYERN - FIT FOR PARTNERSHIP (BFP) PROGRAMME In cooperation with Bayern International, and under the auspices of the Bavarian Ministry of Economy, the German-Serbian Chamber of Commerce organized business trips focused on specific sectors, with the goal of establishing business contacts, ex-

COMPANIES THAT WANT TO ENTER THE NEW DUAL SYSTEM CALLED WORKEDBASED LEARNING CAN RELY ON CONSULTATIONS AND NUMEROUS SERVICES PROVIDED BY AHK SERBIA changing the know-how and experiences between business enterprises, educating participants, as well as developing the business cooperation between Bavarian and Serbian companies and institutions. In 2018, AHK Serbia organized two events under the BFP program: a study tour to Bavaria dedicated to hydro energy with a focus on small hydropower plants and to milk and dairy industry, organized together with the Delegation of the German Economy in Macedonia.

Visit of business delegation from Baden-Württemberg

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German Purchasing Initiative - Frankfurt

GERMAN PURCHASING INITIATIVE IN WESTERN BALKANS The fourth regional B2B project was held on June 19th, 2018 in Frankfurt, organized by the German-Serbian Chamber of Commerce, the representatives of the German economy in the countries of the Western Balkans (AHK) and the German Association for Supply Chain Management, Procurement and Logistics (BME eV), with the aim of helping German companies find manufacturers from the required economic branches in Serbia and the Western Balkan countries. The companies that took part were predominantly from the metal processing sector, the automotive industry, the plastics processing sector and the manufacturing sector, as well as the electrical and electronics companies.

VISIT OF A BUSINESS DELEGATION FROM THE GERMAN FEDERAL STATE OF BADEN-WÜRTTEMBERG The Prime Minister of the German Federal State of Baden-Württemberg, Mr. Winfried

Visit of business delegation from Baden-Württemberg

REAL VALUES VLADIMIR MARINKOVIĆ Director of Sunce Marinković d.o.o.

Sunce Marinković pays equal attention to domestic and foreign markets such as the Swiss, German, Norwegian, Australian, French and British where it successfully operates. The company’s success is based on investing in people, cutting-edge equipment and software

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his year, the Sunce Marinković Company is celebrating its 90th anniversary, a jubilee that only a handful of companies in Serbia can boast. Since 1929, when it was founded as a small family metalworking workshop, Sunce Marinković has grown into a leader in the production of energy efficient aluminium and PVC windows with a strong market position, both in the country and abroad. Ljubiša Marinković, the director of this extremely successful company, has even bigger plans for the near future. He wants to position the company as a respectable producer in its branch in Europe too.

The grandfather of today's owners, Aleksandar Marinković, also a renowned metalworker and a top-notch craftsman whose fences are a testament to a long tradition and exceptional quality to this day, founded Sunce Marinković. The company got its name from the sign of the sun that is hanging on the stone bridge in Kragujevac that the Marinković workshop had made. Today, the company's name is recognized not only in Serbia, but also abroad. The metalworking trades and the true values that make one company prominent have been passed on from generation to generation. Aleksandar Marinković's successor today successfully runs a company that employs a highly qualified workforce, engineers and managers.

Which principles, established 90 years ago when the company was founded, have you remained loyal to this day?

— When Aleksandar Marinkovic took the exam for his guild membership letter in 1929, he probably did not realize that his business endeavour will continue to shine for a long time; 90 years long, to be exact. Grandpa Aleksandar was a top master. We have definitely inherited from him our dislike for improvisation in the business. My father always taught my brother Dušan and myself that "the scales must be precise at all times". Whatever we do, we always have to bear in mind that all parties in the business should be satisfied.

We would like our legacy for the future generations to be the following – whatever you do, blaze a trail, leave your mark and build long-term relationships.

OUR MARK

We would like our legacy for the future generations to be the following – whatever you do, blaze a trail, leave your mark and build long-term relationships

What are your key markets today?

— Regardless of how important foreign revenue and positioning on developed markets are, we, in business, just like in football, seek to win and be strong on home turf too. Furthermore, we have managed to position the third of our capacities in very demanding markets such as the Swiss, German, Norwegian, Australian, French and British.

In which way should we be modern and in which traditional in order to survive in both domestic and foreign markets?

— Being modern often doesn’t have a very positive connotation in our language, because by definition, it is opposed to traditional (conservative) values. In fact, in our company, top-notch values are running a prudent business and learning. This means that the company survives by investing in people, cutting-edge equipment and software. In other words, here, at Sunce Marinković, "modern" values are actually upgraded traditional values.

What is your development vision for the future?

— To transform Sunce Marinković into the most respectable manufacturer of doors and windows, and a supportive partner to architects and contractors in Europe by 2030.

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CORPORATE

The Market Recognizes

Conference Western Balkans 2030

HR Working Group with Tomić Sindjelic Groza Law Firm

Kretschmann, visited Serbia as a member of the delegation of high officials and representatives of German companies from that federal province from 16th to 20th April, 2018.

On April 17th, 2018, AHK Serbia organized numerous B2B meetings between German and Serbian companies.

THE WESTERN BALKANS IN 2030 – VISIONS. WISHES. REALITIES. CONFERENCE Political, economic and social perspectives in the Western Balkan countries were regional topics covered by the conference that was organized by the German-Serbian Chamber of Commerce (AHK Serbia) in cooperation with the Committee of the German Committee on Eastern European Economic Relations (OA), that took place on 26th and 27th September, 2018, under the title Western Balkans 2030 – Visions. Wishes. Realities. in Belgrade. State Secretary at the Ministry of Trade, Stevan Nikčević, the German Ambassador to Serbia, H.E. Mr. Thomas Schieb, President of the German-Serbian Chamber of Commerce, Dr. Ronald Seeliger,

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and the Chairman of the Working Group of the German Committee on Eastern European Economic Relations (OA), Janusz Kulik, opened the two-day conference in Belgrade.

The conference participants talked about how Europe and the Western Balkan countries would look like in 2030, how the Western Balkan countries implemented their European integration process, the effects of the Berlin Process, social, political and digital transformation, and other interesting topics.

AHK MEMBERS DINNER Business dinner for representatives of

BUSINESS DINNER FOR REPRESENTATIVES OF MEMBER COMPANIES IS ONE OF THE MOST POPULAR EVENTS ORGANIZED BY AHK

Martin Knapp, Conference Western Balkans 2030

Speed Business Meeting

member companies is one of the most popular events organized by AHK. The honorary speaker from the local economic and political scene opens an event with a short presentation on one of the current topics, followed by a discussion and a cocktail party in a relaxed atmosphere. During 2018, AHK Serbia had the honour to host the famous writer, journalist, translator and diplomat, Mr. Ivan Ivanji, who was a guest speaker on the topic "An Extra on the Big Stage”.

WORKING GROUPS The German-Serbian Chamber of Commerce organizes working groups which focus on three areas: human resources, communications and public relations, and energy efficiency and renewable energy sources. At the interesting interactive meetings between the members, which had 35 participants on average, the members present common topics with presentations of experts from the given fields and exchange their experiences with their peers from different companies.

AHK Sommerfest

AHK Seminar

Football tournament, First place - Hemofarm

SPEED BUSINESS MEETING Speed business meetings are interesting events which AHK Serbia organizes for its members in collaboration with other chambers of commerce and business associations in Serbia. Through a unique concept of short B2B meetings, members meet with representatives of member companies from different organizations, establish and strengthen business relationships and initiate potential collaboration.

AHK WELCOME AHK Serbia holds a welcome breakfast for all newcomers. At a brief presentation Deputy Director, Doris Danilović, usually presents the work and services to the new members, namely the activities and events that the Chamber organizes, the benefits derived from the membership, as well as the possibilities of promotion and support in the business. After the presentation, the participants will get acquainted with the newcomers at a joint informal breakfast.

WORKSHOPS & SEMINARS

AHK SERBIA HOLDS A WELCOME BREAKFAST FOR ALL NEWCOMERS

AHK Welcome

and competing in sports amidst the strong competition of teams from member companies. Socializing between the players and those who come to cheer, as well as having a lot of fun are all integral parts of the tournament.

AHK SUMMER PARTY In cooperation with its members, AHK Serbia organizes numerous seminars and workshops on current topics. Additional education and provision of information enable employees in member companies to improve their existing knowledge, get acquainted with the novelties in their line of business and thus improve their companies’ operations. In this way, the members/co-organizers of the seminars are given the opportunity to promote the company's values and their own competencies.

AHK FOOTBALL TOURNAMENT WE ARE NURTURING THE SPIRIT OF SPORT! The AHK Serbia football tournament is a great opportunity for both team-building

At the traditional AHK summer party held in the pleasant ambience of the Brener restaurant, the guests, members of the companies, members of the diplomatic corps and numerous partners and friends of the Chamber enjoyed the performance of the famous Belgrade band Stubovi Pop Kulture, cocktails and delicious meals.

AHK OKTOBERFEST The German-Serbian Chamber of Commerce nurtures a 200-year-old German tradition by holding the AHK Oktoberfest each year. The 9th Oktoberfest in Belgrade, and the third that was organized by AHK Serbia, was held on 4th and 5th October, 2018. Around 1,300 guests from company members, partners and business execu-

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Oktoberfest

tives enjoyed Erdinger Beer, diverse Bavarian cuisine and music by Dejan Petrović and his Big Band, as well as competitions in mug-holding and beer drinking.

The 3rd AHK Oktoberfest was organized with the support of many sponsors that are the Chamber members, and this year it also had a humanitarian character. The guests donated money to the Zvončica Association of Parents of Children with Malignant and Other Rare Diseases.

SERBIAN VISIONS The fourth multi-congress Serbian Visions was held during 24th and 25th November, at the Old Mill, a Radisson collection hotel.

This traditional event presents a sort of platform for organizations and companies dedicated to creating a better future for the country, society and economy in Serbia. This year, 60 different two-hour events attracted about 3,000 visitors. Participants of Serbian Visions presented their organizations, projects, ideas, visions, themes and solutions that they advocate.

At the opening ceremony of the fourth multi-congress, plaques were awarded for

the second consecutive time - the plaque for the best vision was given to the educational organization of the civil society Belgrade Open School, while the plaque for the best social engagement was given to an organization engaged in promoting safe, active and healthy lifestyle for senior citizens called Stari Grad 50+.

THE GERMAN-SERBIAN CHAMBER OF COMMERCE NURTURES A 200-YEAROLD GERMAN TRADITION

BY HOLDING THE AHK OKTOBERFEST EACH YEAR

INTERNATIONAL NETWORKING COCKTAIL In cooperation with the German-Serbian Chamber of Commerce, the Belgian-Ser-

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Serbian Visions

bian Business Association, the French-Serbian Chamber of Commerce, the Hellenic Business Association of Serbia, the Croatian Business Club, the Japanese Business Alliance, the Canadian Business Club, the Italian-Serbian Chamber of Commerce, the Nordic Business Alliance, the Slovenian Business Club and the Swiss-Serbian Chamber of Commerce, a big event was organized on 24th May, 2018, at which the members of AHK Serbia had the opportunity to meet the members and the business community from other chambers in one place and in a relaxed atmosphere. The goal of such an event was to provide our members with a better platform for networking and exchange of experiences, as well as to improve the business environment.

CHRISTMAS CELEBRATION At our traditional Christmas celebration, we gather members, associates and friends to sum up our impressions of the passing year together and round off the annual operative cycle. AHK’s Christmas celebration is an informal gathering of guests in an elegant ambience and festive atmosphere.

AHK Christmas Celebration

NEW BEGINNG IN 2019 KNAUF SERBIA

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istening to market requirements for the high quality facades Knauf has invested into a completely new production facility within Knauf Zemun factory. This investment has brought refreshment in the local market when it comes to new production technologies for façade plasters and colors, primers and mosaic plasters. The capacity of the new facility is 7.500 tons of pasty products per year. In cooperation with Knauf Development Center form Iphofen, Germany we have created

façade products which are certified by ETA. This most respectable European document for façade system testing confirms compatibility, efficiency, resistance and certainty of façade products. Knauf partners and installers have already approved new products and its quality is confirmed with zero claims since the beginning of production.

Expanding the Perfect Surfaces portfolio Knauf Zemun has made a new finishing compound for March 2019 called Biofinish Plus. As a result of a solid market research, this prod-

uct was made to meet the requirements of the most demanding professionals. The existing product Biofinish has already conquered Serbian and local markets, and became a respectful brand among installers. Its Plus variant will have additional characteristics, such as machine application and hardness. The new product will contribute further sales growth and increase of market share. With application of Finish Grund primer Knauf Zemun has made a complete system offer in the finishing compound products market.

INTERNATIONAL CONSULTING AND CLIENT SERVICE BEYOND EXPECTATIONS

IB Interbilanz Consulting & Audit d.o.o. Beograd is a subsidiary of IBD Group GmbH, Vienna. The IBD Group has its roots in Austria and provides consulting and auditing services since 1991 also in other countries. At the moment we are active in 8 countries besides Serbia, in Slovenia, Croatia, Hungary, Slovakia, Ukraine and Czech Republic – on totally 12 locations.

We are present on the Serbian market more than 15 years and provide services in German and English. Our Belgrade office offers a wide range of services: - Accounting – Outsourcing - Payroll -Outsourcing - Tax advisory & transfer pricing studies - Audit & Assurance (Statutory & IFRS) - Business advisory (business planning, CFO services etc.)

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CORPORATE

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THE BEST OR NOTHING Text

MINA VUČIĆ Life is too short to drive the Speed Limit any car fans find themselves lost in the never-ending horizons of the German highways, as life is too short to drive the speed limit, isn’t it? When it comes to the auto moto industry, it tends to be recognized as a separate culture in Germany, where exteriors define the first impressions. Love at first sights results in being a quite common experience, as people purchase expensive, well-defined driving devices, designed to perfection. From BMW to Mercedes and Audi, the top positions on the list of prestigious vehicles is awarded to indeed, Germans.

It is well known that Germany is the cradle of the modern day car industry. But

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believe it or not, it all began in 1885, when Karl Benz set high expectations and initiated a worldwide automobile revolution. He invented the first car in the world, appearing like a horse carriage however driven by the first ever motor engine, unfortunately crashing down the same year during a public demonstration. Soon Benz created a more

IN 1935, OPEL CROSSED 100,000 VEHICLE PRODUCTIONS IN A YEAR!

developed model, running on gasoline, and successfully went for commercial production in 1887. Even Benz’s wife managed to travelled 65 miles in the car, drawing the publics attention as sales increased throughout Germany and France. If you didn’t know already, the logo of the company represents air, land, and water. The Mercedes part of the name was called after Emil Jellinek’s daughter Mercedes in 1901. Jellinek was an automobile entrepreneur at the time who worked with the company.

It was in the early 1900s, when several, now-a-day famous German car manufacturers came into existence. Who would have known that the brands of most of the cars we

than their contemporaries. Another fun fact is that is was the first to produce left-handed cars, also known as the Audi Type K. The next in line came the famous Volkswagen, founded in 1937 by the Nazi regime, it targeted a specific audience, as it produced vehicles of families and common people. Famous works which many of us have heard of today include Beetle, Amarok, and Thing. In can be said that in the postwar era, this company led the auto revolution in West Germany, having its engineering achievements widely acclaimed.

The BMW motors were first produced and

THE DESIGN OF THE BMW HEADQUARTERS BUILDING IMITATES THE FOURCYLINDER ENGINES, WHICH IS WHAT MADE THE COMPANY SO GREAT

see on the streets have been with us for over a century now! In 1906, while the Benz Sons dominated the market, Opel produced its first car. It became the first German car manufacturer maker to set up a mass production assembly line. In 1935, they crossed 100,000 vehicle productions in a year! And don’t forget, we are talking about the 1900’s here.

Soon after, Audi was established. In 1910, it became the first German car company to exclusively focus on vehicles with powerful, more developed engines. Its earliest models Sport-Phaeton and Type B and subsequent six cylinder models had more powerful engines

used in 1916 to meet the demand of the WW1 airplane engines. It entered the automobile market in 1928, and was the first German car maker to go for sport and ultra-luxury car segment, owning Rolls Royce and Mini brands, which are among the costliest car brands in the world. It was also the first to produce a fully electric car in 1972. Though the car was impractical as it used 12 batteries and could drive 19 miles, it was definitely a feat of engineering that paved the way for future car makers. BMW is proven and wellknown to be a forward-thinking company that never settles on just blowing our minds once or twice a decade. They are currently developing the next line of cars for both consumer and luxury markets including 328

Hommage, m9 and Gina which is an entirely fabric skinned concept car, changing shape to match environmental conditions surrounding the vehicle, including temperature and speed. Researchers in Germany have successfully built and tested a car that you can steer with just your thoughts! This technological breakthrough is by far one of the most amazing ones yet, however the car won’t be ready for “real world tests” for several years.

Apparently, the learning curve is pretty high when you try to drive with your mind!

Although famous for their cars, the Germans know how to perfectly showcase them in the brightest light. The BMW headquarters are located in Munich Germany, and within it is a homage to the company’s history. The design of the building imitates the four-cylinder engines, which is what made the company so great. The building next to it is shaped like a combustion chamber of a gas engine. The buildings are so unique and prominent that the brand was asked to remove the BMW branding during the 1972 Summer Olympics to prevent the perception of product placement!

Another bombing German automobile company is the immortal Porsche series, whose Headquarters are locate in Stuttgart.

Known as amongst some of the finest cars in the world, it has crafted a niche as a racing car king, with more than 190 cars built for racing events alone in 2006.

From the 24 Hour Nürnburgring race in June (one of Germany’s largest motorsport events) to the American Le Mans Series with races in Long Beach, Houston, and St. Petersburg, Russia – Porsche always delivers in the racing department.

Without a doubt, Germany is one of the leading automobile heavens in the world. It is a country that has produced many firsts, and leave a love at first sight feel for every driver who gets the chance to experience their rides. Fahren wir los!

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RESEARCHERS IN GERMANY HAVE SUCCESSFULLY BUILT AND TESTED A CAR THAT YOU CAN STEER WITH JUST YOUR THOUGHTS! Germany 2019

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MINA VUČIĆ Celebrating 209 years of Oktoberfest!

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ho wouldn’t love to spend an active weekend drinking beer, eating specialties, and dancing under the German sky. If you are up for Oktoberfest this year, you are in a for a treat ladies and gentlemen! From colourful parades and fairground rides to getting lost among traditional Bavarian gear, this place is like no other. Over the past decade Oktoberfest has attracted an average of six million visitors a year, who throughout their stay, consume almost seven million litters of beer and munch their way through thousands of grilled sausages, chicken, giant pretzels and for the extreme food lovers- wild oxen.

209 years ago, the first Oktoberfest took place to honour the marriage of Prince Ludwig and Therese of Saxe-Hildburghausen, - now that’s what we call a wedding party! Believe it or not, due to so much beer consumption Adidas Germany has released a limited addition of vomit-proof sneaker, inspired by the Oktoberfest, in the obvious reason of many people feeling quite sick after the large beer consumption! Since 1950, the festival has only started after the official gun salute and the mayor shouting O’ zapft is! (“It’s tapped!”) and offering the first mug to the Minister-President of the State of Bavaria.

Only after that, can the festival begin.

Looking at the records many would be quite astonished. The beer record took place in 2011 when people drank 7.5 million litters!

Shortly after that came the 6.9 million in 2014. The Germans specifically brew the beer for the event, making it extra strong. One mug is equivalent to 8 shots of Schnapps, making the beer have at least 6% of alcohol! It is no coincidence, that Bavaria has the finest beer in the world. Since the 16th century strong regulations have been placed in brewing beer and reserve the high quality through the careful choice of ingredients.

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OVER 700,000 WHOLE ROAST CHICKENS ARE CONSUMED EACH OKTOBERFEST, AND OVER 60 THOUSAND SAUSAGES ARE EATEN Take a look at this, one of the oldest laws concerning food and drink are actually the Bavarian Purity Requirements, created by Duke William IV in 1516. He stated only water, hops, and barley should be used to brew Bavarian

beer. A little bit more of history, Albert Einstein once earned a living as an electrician of sorts, helping set up the beer tents in 1896!

Although Oktoberfest is all about beer tasting, spilling, and drinking contests, there are many more splendid things to come. We should not forget all the great foodies out there, especially on a party day, when over 140 restaurants are present. Imagine your appetite being in full speed, and all you see in front of you are piles of delicious sausages, juicy sauces, potato side-dishes and fresh fish, who would resist? The sausage selection is from heaven, also known as Wurst. From Bratwurst, Weisswurst, and even Bierwurst, all of these created from a mixture of veal, port and minced beef, combined with spices, ginger, lemon and parsley… feeling hungry

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already? Next on your list should definitely be the roasted pork knuckles, around 60 thousand of them are consumed every Fest.

If there is one thing you cannot miss out, it’s this saucy creation. Schweinshaxe mit Sauerkraut: the roasted ham hock marinated in a mix of seeds and garlic. The crisp skin is served with mustard, pickles and horseradish. Over 700,000 whole roast chickens are consumed each Oktoberfest, and over 60 thousand sausages are eaten. 127 cows and 59 calves were consumed at the 2017 celebration. Germany is one of the countries with the greatest selection of dairy products, so if you’re going to the festival, you could try the Harzer Käse, a sour milk cheese flavoured with caraway, easily recognizable for its strong smell and flavour.

Since 1950, each Oktoberfest begins with a parade of extravagantly decorated

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ALBERT EINSTEIN ONCE EARNED A LIVING AS AN ELECTRICIAN OF SORTS, HELPING SET UP THE BEER TENTS IN 1896! horses pulling kegs, as well as carriages full of waiters, staff and tent owners. Locals line up for their beer hunt as early as 6 am! Here is a place where the German clock efficiency takes its ultimate test as experienced bartenders only need about 1.5 seconds to fill a litter of beer. Today, Oktoberfest brings an annual tourism/economic impact of $1.53 billion dollars to Munich, employing over 13

thousand workers! There are 36 beer tents on the event, Hofbräu-Festhalle being the biggest, having the capacity of 11,000 people, and selling a litre of beer for approximately $13, which is a 1,081% price increase since 1950, no wonder the German economy is doing well. Funny fact, over 120 thousand beer mugs were confiscated from souvenir hunter in 2017, and over 4055 lost and found items were encountered. Additionally, the name is quite misleading as the event starts in September!

From barrels brimming with beer and boots made for drinking to Bavarian pretzels, aromatic sausages and pork knuckles, Oktoberfest has it all! For over two centuries now, this celebration brings more than six million people to Munich for a couple of weeks. Planning on starting off autumn in a summer manner? Then this unforgettable event is definitely for you. O’ zapft is!

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KNIGHTS, PRINCESSES, AND CASTLES Text

MINA VUČIĆ Where History comes to Life 56

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ermany has more touristic activities and places than any other country in Europe – it’s a cultured place, with 6,200 museums, 820 theatres, 130 professional orchestras and 8,800 libraries.

Such numerous amounts of cultural heritage, exhibition halls and art galleries fill this nation with glorifying pride and beauty, having more people go to exhibitions than to football matches. On top of everything which this magnificent country has to offer, one thing that’s particular is the incredible amount of medieval castles this nation owns.

In our days, Castles are the emblematic icons of magnificence and mythical tales.

Beside their dazzling look and antiquity, they disclose an old vivid and truthful fable. The

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castles in Germany take us back to the 9th and 10th centuries, as royal families and residences embraced the nations necessity to protect the country from invasions. These amazing buildings typify tactical and solid rocky constructions, built by kings and emperors to guard the nation’s territories in warfare, are now top tourist attractions in the country, bringing a slight adrenaline rush to its visitors, as they are placed in a speedy time-machine.

Visitors can notice the medieval architecture, seen at the beginning of the Renaissance Area, having a mixture of towers, fortified walls and beautifully decorated interior and exterior designs. The positions of these great constructions are usually found in high peaks of mountains and valleys, nearby rivers and lakes, as the ancestors needed

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full-surveillance of the surrounding territory.

One of the youngest yet the most outstanding castles in the country but also in the world is the Neuschwanstein Castle,

THERE ARE OVER 20,000 CASTLES FOUND IN THE SPLENDID LANDSCAPE OF GERMANY located in the Bavarian Alps near the town of Füsen. Neuschwanstein means “New Swan Stone”. The name of the castle derives from one of Wagner’s opera’s character, the Swan

Knight. It was build in honor of King Ludwig II, who unfortunately got to sleep only 11 nights in the castle, by an architect Eduard Riedel, and a theatrical set designer Christian Jank, between 1869 and 1886. The construction was inspired by the 13th Century Romanesque style, being shielded by pieces of granite and running warm water on all its floors, as well as beautiful images inspired

by Wagnerian operas such as “Tanhäuser” and “Lohengrin”. Fourteen carpenters worked for more than four years to make the woodwork in the bedroom. Additionally, there is no throne in the castle, as the Throne Hall was not completed before Ludwig’s death. Believe it or not, Disneyland’s Sleeping Beauty Castle, was built as an imitation of it, after the inspiration trip Walt Disney took in Germany. In the summer, the castle

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receives as many as 6,000 visitors per day.

That is a huge number, especially for such a small town such as Schwangau. The castle is one of the most photographed buildings in the world, even if photography is not permitted inside of the castle.

Next in line for its incredible beauty and age is the Heidelberg Castle, situated in the height of 92 meters above the city of Heidelberg. As a symbol of German romanticism the castle attracts yearly countless tourists from all over the world and is one of the must-see German destinations. What is interesting about this structure, is that it holds many different formations, signifying the chronological history of the German architecture periods. This castle embodied the supreme outstanding building of the Holy Roman Empire. Going all the way back to 1300, the first part of the castle was built, however this magnificent construction was demolished numerous times by war attacks, lightning, and fires. All in all, it is a great representation of the Renaissance and gothic architectural styles, surrounded by gardens and beautiful nature, it obtains a marvelous view over the Heidelberg city and the Nectar River. Visiting this panoramic gigantic structure, you get to experience the sight of many other astonishing figures such as the seven meters high “The Heidelberg Tun”, better known as “World’s Largest Wine Barrel” built in 1751, holding an amount of 220,000 liters of wine. As well as the Apothecary Museum revealing a nice story of the history of medicine, with rare 1000 medications and many

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THE HEIDELBERG CASTLE OWNS THE “WORLD’S LARGEST WINE BARREL” BUILT IN 1751, HOLDING AN AMOUNT OF 220,000 LITERS OF WINE

interesting treatment collections, all very unique and interesting to be seen, and nowadays, this enigmatic castle attracts several million tourists each year.

Last but not least we have the Burhausen Castle, who’s complex extends over a length of more than one kilometer, making it the longest in the world. The castle itself dates back to 1025, and has been occupied by civilizations since at least the Bronze Age. The castle complex today includes the main gothic castle structure, a gothic-style chapel, several museums, including a torture museum and a collection of gothic art, one inner and five outer courtyards, and modern apartments whose exterior architecture conforms to the original castle style. The tourists and visitors which want to take a tour around the castle are up to discover a very pleasant place with large lawns and gorgeous gardens. The castle today, with its six courtyards and medieval architecture, offers a pleasant place to stroll and enjoy impressive views of the town as well as rivers and lakes on the side. A definite must see!

There are over 20,000 castles found in the splendid landscape of Germany. Going back from being 1 century to 10 centuries of age, many of these monuments play a large role in tourism in the country. Being renovated into museums, cultural art centers and historical monuments, for everyone who lives in a modernized part of the world, taking this time machine into a space of fantasy, wild fights of imagination, and fairytales is definitely an unforgettable feeling.

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