Germany 2021 by Diplomacy&Commerce magazine

Germany - 2021 -

GERMANY & SERBIA

BILATERAL AND ECONOMIC RELATIONS ARE FLOURISHING H.E. THOMAS SCHIEB

UDO EICHLINGER

FRANK ALETTER

Ambassador of Germany to Serbia

President of the German-Serbian Chamber of Commerce in Serbia (AHK Serbia)

Director of the German-Serbian Chamber of Commerce (AHK Serbia)

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Germany 2021

TANJA BANKOVIĆ Editor in Chief

tanja.bankovic@color.rs

ILIJA PETROVIĆ INDIGOCHILD Art director

indigochild.ilija@gmail.com

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 VELJOVIĆ Magazine director

ruza.ristanovic@color.rs

ROBERT ČOBAN Director

robert.coban@color.rs

Photos

GORAN ZLATKOVIĆ GETTY IMAGES Translation

SNEŽANA BJELOTOMIĆ Print

ZLATNA KNJIGA Jagodina, Bagrdanski put bb

PROMISING RELATIONSHIP IN A YEAR FULL OF JUBILEES

Ruža Veljović

Branka Perić Šljivić

Director of Diplomacy &Commerce magazine

OUR BILATERAL AND ECONOMIC RELATIONS ARE FLOURISHING H.E. Thomas Schieb

Ambassador of Germany to Serbia

SERBIA CONTINUES TO BE IN HIGH DEMAND AMONG FOREIGN PARTNERS

Udo Eichlinger

President of the GermanSerbian Chamber of Commerce in Serbia (AHK Serbia) and CEO of Siemens d.o.o. Beograd and Siemens Mobility

OUR ECONOMIC, 16 TRADE AND INVESTMENT TIES ARE

CONSTANTLY REINFORCED Marko Čadež

President of the Chamber of Commerce and Industry of Serbia

GERMANY WILL CONTINUE TO INVEST IN SERBIA Frank Aletter

Director of the German-Serbian Chamber of Commerce (AHK Serbia)

#GERMANY #NO.1 INVESTOR #VOJVODINA #RAV

Vojvodina Development Agency

WE HAVE QUICKLY ADAPTED TO THE NEW CONDITIONS

Director of Perić Trans Company

SUCCESSFUL 30 CONSTRUCTION WITH PERI Peri company

Filip Boršik

CEO of Interbilanz Consulting & Audit

FRANKFURT. THE 42 FINANCIAL CENTRE OF THE CONTINENT German economy

TWO DECADES 44 OF GERMAN INVESTMENTS IN SERBIA Investments

QUALITY AND TRADITION OF 34 RESPONSIBILITY 48 QUALITY FOR HEALTHY LIFE ON THE PLANET THE 30-YEAR-LONG 52 JOURNEY OF LOOKING AHEAD HOPE FOR EVEN 35 WEGREATER SUCCESS A GOLDEN EXAMPLE WE HAVE MANAGED 54 OF RESPONSIBLE BUSINESS 36 TO OVERCOME ALL THE CHALLENGES ADAPTABILITY 56 AND FLEXIBLE STRATEGIES ARE CRUACIAL FOR THE FUTURE NEW GENERATION 37 ACCOUNTING TIM Co.

Bojan Simović

Managing Director of Hörmann Serbia d.o.o.

JPM Jankovic Popovic & Mitic

Jelena Knežević

Partner, LeitnerLeitner Serbia

dm drogerie markt

Gordana Brašić

President of Henkel Serbia and Head of HR Sub-cluster South

Dušan Čolović

Ivana Janković

Director of the Unija accounting firm

GERMANY IS ONE 38 OF THE MOST IMPORTANT ECONOMIC PARTNERS OF SERBIA

Economic cooperation

WE SUPPORT 41 COMPANIES IN THE MOST CHALLENGING TIMES

Sales and Delivery Director in METRO Cash & Carry Serbia

50 YEARS OF THE 62 GOETHE INSTITUTE IN SERBIA Frank Baumann

Director of the Goethe Institute

AHK SERBIA - THE 64 BIGGEST BILATERAL CHAMBER IN SERBIA AHK activities

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02 PERFECT SERVE

01 THE DENSITY = RUHR!

Ruhr Area is one of the most developed and densely populated areas in the world: 2,800 people/km2 and 5m people in just 4,435 km2. Bochum, Essen, Duisburg and Dortmund are the biggest cities of this modern “metropolis”.

Germany is the first country in the world, in which Fanta orange will be offered as a soda syrup, allowing consumers to prepare their own drink at home, simply by adding carbonated water.

06 BREAD AND SAUSAGES, BITTE!

There are over 300 different kinds of bread in Germany and over 1,000 kinds of sausages in Germany. So, the choice of menu is only natural.

05 NO LIMIT! 4

65% of the highways in Germany (Autobahn) have no speed limit. That is why many cars are still produced with such power. And every question of limiting the speed is a hot topic here.

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03 THE ROYAL TANNENBAUMS

The Christmas tree (Tannenbaum) tradition came from Germany. It was brought to the UK by Prince Albert and to Russia by Peter the Great, while it was taken to the Americas by German immigrants.

04 THE 5 LARGEST TH

ECONOMY

Germany is the EU’s largest economy. With a GDP of 3,666 trillion euro, and lies fourth place in the world behind the China, USA, India and Japan.

08 THE PRINTED WORD The first printed book was in German. Germany is one of the world’s leading book nations. Publishing around 94,000 titles every year. The first magazine ever seen was launched in 1663 in Germany.

07 THE LAND OF POETS AND THINKERS

The Land of Poets and Thinkers–Bach, Beethoven and Goethe were all German, alongside composers Händel, Schumann, Mendelssohn, Brahms, Wagner and R. Strauss

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INTRO

PROMISING RELATIONSHIP IN A YEAR FULL OF JUBILEES The first 20 years of investments have passed and the next 20 are expected to be even more dynamic

erbia is the most desirable investment destination in the region, according to German business people, and German companies are the most desirable employers in Serbia, according to polls. It all started in early 2001, when German companies, following the October 5th political changes, started investing heavily in Serbia. After 20 years, Serbs and Germans understand each other better economically. Many advertisements are promoting "the German quality", while people in Serbia are adopting the German way of thinking and spending. Germany remains an important partner of Serbia on its road to EU accession. German companies in Serbia employ over 67,000 people, and the German government has implemented projects worth two billion euro in Serbia in the last 20 years, together with its institutions KfW and GIZ. What you are holding in your hands, dear readers, is the sixth special edition of our InFocus issue dedicated to Germany. Five years ago, around this time, we excitedly put together the first issue and the launch party for Diplomacy&Commerce magazine and a supplement that was entirely dedicated to bilateral and economic cooperation between Serbia and Germany.

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There are two important reasons why we chose Germany as the first country to cover. The first reason was that the German-Serbian Chamber of Commerce was the first business association which Color Media Communications joined, and the second, equally important reason is that we wanted to put one of the most important foreign policy and trade partners of Serbia in the first issue. 60 issues later, we are celebrating our 5th birthday, the German-Serbian Chamber of Commerce (AHK Serbia) is marking five years of its official establishment, and the Delegation of the German Economy is celebrating 20 years of investing in Serbia. This is a year of jubilees and great occasions to celebrate. Unfortunately, due to the COVID-19 epidemic, we cannot celebrate the jubilee the way we would want to and you are used to - with all of you, giving out D&C awards to companies, organizations and individuals. But that's why we have prepared for you an edition full of interesting stories, an overview of German investments from the year 2000 until today, interviews with over 20 leading figures from the German economy, articles about tradition and culture, and interesting facts about the economy, tourism and history of this beautiful country. Together with the magazine’s found-

er, Robert Čoban, we would like to express our deepest gratitude to our dearest partners and important interlocutors who appear in this edition - Marko Čadež, President of the Chamber of Commerce and Industry of Serbia who selflessly supported us all these years and highlighted Germany’s importance for the development of Serbia, the German Ambassador to Serbia, H.E. Thomas Schieb, who is always willing to talk about the importance of relations between our two countries, the entire German-Serbian Chamber of Commerce (AHK Serbia) together with the Chamber’s newly elected President and Director, Mr. Udo Eichlinger and Mr. Frank Aletter respectively, who were kind enough to share with us their views on bilateral and economic relations, and the staff of both the Embassy and the Chamber - Milica, Doris, Marija and Milica - without whom this issue would not be as interesting. Dear readers, we wish you a myriad of great moments while reading our magazine, but first and foremost, we wish you good health and a good year ahead. All the best!

RUŽA VELJOVIĆ

Director of Diplomacy&Commerce magazine

INTERVIEW

OUR BILATERAL AND ECONOMIC RELATIONS ARE FLOURISHING H.E. THOMAS SCHIEB

Ambassador of Germany to Serbia

When I started as German ambassador in 2018, the number of jobs created by German companies was 48,000. Today, 2 ½ years later, this number is around 68,000. It is also very positive that the quality of created jobs has changed – German companies offer more and more job opportunities for a highly qualified workforce, like engineers and IT experts

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n the last 20 years, the German government, together with its institutions KfW and GIZ, has implemented projects worth two billion euro in Serbia. German companies have an exceptional influence on the entrepreneurial spirit and work habits, as well as on the development of dual education in our country. For the jubilee issue of InFocus Germany, we spoke with the German Ambassador in Serbia, H.E. Thomas Schieb, about further cooperation between the two countries.

intends to put more focus on the so-called green agenda, i.e. investing in climate protection and air pollution measurements as well as water- and wastewater infrastructure as well as in renewable energy and energy efficiency of buildings. As one of the pioneers in green engineering solutions and the energy transition (we call it “Energiewende”), Germany has the know-how as well as climate and environmental friendly solutions to offer. These sectors have a huge potential for enhanced cooperation.

Economic relations between Germany and Serbia are at an exceptional level, which is a good basis for further improvement of the overall relations. In which segments can the cooperation between our two countries become even better?

THE TRADE HAS BEEN GROWING CONSTANTLY, EVEN DURING THE PANDEMIC, AND THE LEVEL OF ACTIVITIES OF GERMAN BUSINESSES IN SERBIA HAS EXPONENTIALLY INCREASED

Our bilateral and economic relations are flourishing indeed. This is true for our bilateral trade as well as for investments of German companies. The trade has been growing constantly, even during the pandemic, and the level of activities of German businesses in Serbia has exponentially increased. Today, we count more than 2.5 billion euros of total investments since the year 2000. When I started as the German ambassador in 2018, the number of jobs created by German companies was 48,000. Today, 2 ½ years later, this number is around 68,000. It is also very positive that the quality of created jobs has changed – German companies offer more and more job opportunities for a highly qualified workforce, like engineers and IT experts. A number of companies established state-of-the-art R&D centres. Such investments might create fewer jobs than those in more labour intensive sectors. However, they show the companies’ intention to stay long-term. It is good that the Serbian government

Germany strongly supports Serbia in the European accession process. What determines how fast a candidate country will join the EU and what should be the priority of the Serbian Government in that context? Serbia is as a fellow European country, which should become member of the EU sooner rather than later. Once a candidate country has adopted the complete legal framework of the EU, the so-called Acquis Communautaire, it is ready for accession. This includes the country fully aligning itself with foreign policy positions of the EU, and overcoming unresolved disputes with its neighbours, i.e. with Kosovo. Whereas some parts (so-called chapters) of the Acquis are rather technical in

nature, others touch upon core principles of the EU, i.e. those related to the rule of law. Since there has been a lack of progress in the field of rule of law, particularly in improving media freedom and independence of the judiciary as well as in the fight against corruption, there was very little progress in terms of EU accession last year. Substantial progress is necessary in all these fields. What do you think about the relations between the EU and the new U.S. administration, helmed by President Joe Biden. Which direction will they take? President Biden expressed his determination and willingness to cooperate and engage with international partners and multilateral organizations. It is excellent to see the US back in the WHO, to mention just one prominent example. In times of a raging global pandemic, we need worldwide cooperation and inspired leadership on both sides of the Atlantic more than ever. I am convinced that we will see new impetus for the trans-Atlantic relations, both on the EU and bilateral levels. The dialogue between Belgrade and Priština is a very important topic as it is part of the European integration process to and also important for the entire region of the WB. What direction will the related initiatives take to move the entire region closer towards the EU? Normalisation of relations between Serbia and Kosovo would be extremely positive for many reasons. It would help unleash the full economic potential not only of the parties but the whole region and the people of the region would benefit enormously. It would also be a huge step forward on the path towards EU membership. Once a new government is in place

FOCUS ON 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 GERMANY 2021

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in Priština, we expect the dialogue under the auspices of EU Special Representative Lajčák to resume with new momentum. It goes without saying that both parties need to have a constructive attitude to make progress. In the last 20 years, the German government, together with its institutions Kf W and GIZ, has implemented projects worth two billion euro in Serbia. What will be the focus this year and in the years to come? Our development cooperation follows a more long-term perspective, rather than focusing on short-term impacts. Hence, our overarching goal is to support Serbia on its European path. In the next years, we will focus on the provision of vocational training and the creation of jobs for young people in particular, the expansion of renewable energy sources, like wind and solar energy, and the provision of expertise in the area of rule of law. Improvements in the rule of law are, as I said earlier, particularly important for progress towards EU membership. Additionally, we support the Roma community by helping to rehabilitate basic infrastructure, such as water and sewage grids in informal settlements or through awareness-raising and educational programmes. German companies have an exceptional influence on the entrepreneurial spirit and work habits, as well as on the development of dual education in our country. What else can we learn from the Germans and vice versa? As an ambassador, it’s not my job to lecture. My advice would be, to Germans as to Serbians alike, to find out themselves what they can learn from each other. This is why the German embassy is supporting and facilitating exchange between the German and Serbian people on many levels.

I AM IMPRESSED BY THE SERBIAN ABILITY TO MAKE DO IN A RAPIDLY CHANGING ENVIRONMENT. GERMANS HAVE A TENDENCY TO PLAN EVERYTHING WELL IN ADVANCE What one country might learn from another, what an individual can learn from his or her friends and neighbors, is best discovered in direct communication. I hope, that, once the pandemic is defeated, many Serbs will visit Germany and many Germans will travel to Serbia again to experience what the other country has to offer. One additional remark… I am impressed by the Serbian ability to make do in a rapidly changing environment. Germans have a tendency to plan everything

well in advance. However, sometimes a bit more flexibility might be useful. The 30th anniversary of the German reunification was marked on 3rd October 2020. Have any planned celebration activities been postponed for this year and how did Germany mark this jubilee? In Germany, the Day of German Unity celebration ceremony had to be re-arranged at short notice. Instead of thousands of people celebrating the 30th anniversary, as in normal times, a modest outdoor exhibition with a limited number of guests took place in Potsdam. I very much regret that we were not able to celebrate 30 years of German unity last year here Belgrade, in the way we had planned. We were looking forward to including the festivities in a series of cultural events called “German Weeks”. If the situation with the coronavirus allows it, we will hold the German Weeks this autumn, and also open the doors of our brand new embassy building in Knez Miloš Street to the public. 

FRIENDLY AND WELCOMING What do you like most in Serbia and Belgrade in particular? — The hospitality I have been experiencing since coming to Serbia is exceptional and the people are very friendly and welcoming. I very much like the humour and the talent for improvisation that we Germans sometimes lack. Belgrade is such a lively, interesting city. My wife and I are very much looking forward to enjoying the uniquely vibrant cultural scene again, once the pandemic is conquered. Given the impressive progress of the vaccination campaign in Serbia, the prospects for this are not so bad. However, for the time being, extreme caution and complying with the distance and hygiene rules are of pivotal importance.

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INTERVIEW

SERBIA CONTINUES TO BE IN HIGH DEMAND AMONG FOREIGN PARTNERS UDO EICHLINGER

President of the German-Serbian Chamber of Commerce in Serbia (AHK Serbia) and CEO of Siemens d.o.o. Beograd and Siemens Mobility

We are and will remain a stable partner of the Serbian business community, with the aim of improving the business climate in the country and supporting economic reforms as well as the efforts of the Serbian government to implement these reforms 12

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his year, the German-Serbian Chamber of Commerce (AHK Serbia) marks 5 years of its official establishment, while German investors, represented by the then Delegation of the German Businesses in Serbia and the German-Serbian Business Association, are celebrating 20 years of their activities in Serbia. In this year's edition of InFocus Germany, AHK Serbia’s president, Udo Eichlinger, talks about German investments, business environment, dual education project, workforce supply, digitalization, and predictions for 2021.

You have been a member of AHK’s Managing Board for a long time. How would you rate relations between Germany and Serbia today? Germany has been one of Serbia's most important economic partners for years. On the other side, the reaction of the German business community in Serbia confirms the continuous positive development of German-Serbian economic relations. German investors have been present in Serbia for two decades and currently about 400 German companies employ about 67,000 workers. Germany has so far invested around 2 billion euros in Serbia, is the country's largest bilateral trade partner, and the total trade exchange until November 2020 amounted to 4.8 billion euros. Even besides the current situation with Corona virus, Serbia continues to be

in high demand among foreign partners. According to many forecasts, Serbia continues to be the economic engine of the Western Balkans. As President of the German-Serbian Chamber of Commerce, the largest bilateral chamber in Serbia, I will continue to focus on strong and efficient representation of member companies' interests visà-vis state institutions as well as in the public sphere. What were the consequences of the pandemic in 2020 on the operations of German companies in Serbia and on companies in general in Germany? Due to the challenges surrounding the coronavirus, the world has changed significantly. Our habits, plans and freedom of movement have been restricted or rearranged over the past year. The Coronavirus crisis has shown how sensitive our

WE HAVE POSITIONED SERBIA AS A SUPPLIER MARKET FOR GERMANY, AS PART OF THE WESTERN BALKANS PURCHASING INITIATIVE

supply chains are. Asia, for example, was considered a major risk factor. Due to disrupted supply chains, interest grew in industrialized countries such as Serbia, Northern Macedonia, Bosnia & Herzegovina, Romania. In the past years, we have observed that German companies are specifically looking for suppliers from Serbia. We as Chamber have positioned Serbia as a supplier market for Germany as part of the Western Balkans Purchasing Initiative. Serbian companies are reliable, flexible and deliver high-quality goods and services at competitive prices. Serbia has a large number of IT and software developers working on innovative solutions. German and Serbian companies can benefit from this. In order for Serbia to win over investors, what does the country need to do in terms of improving its business environment and making it even more attractive for investors? The Serbian government restructured the area of vocational education in 2018. Here, it has oriented itself to the model of dual training. However, there is still work to be done - in particular, the acceptance of general training needs to be increased and more qualification offers are needed in companies, or further training offers for experienced employees. It is noteworthy that the latest investments are not so much in personnel-in-

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of digitalization for society and economy. Does Serbia have appropriate workforce to meet the expectations of German investors, both in terms of high school and university graduates?

tensive areas, but rather in technically demanding processes. In addition to medium-sized companies, investors also include global corporations with strict compliance requirements. Here, a regular exchange between the private and public sectors can certainly contribute to a sustainable improvement in the areas of legal security and the environment. Considering your experience from the industry you come from and as a CEO of Siemens, how would you assess the progress of digitalization in Serbia? With the fourth industrial revolution, digitalization became a major catalyst for innovation, modernization, economic growth, competitiveness, and socioeconomic progress and development in total. Digitalization and automation are now more urgent and important than ever for companies, as well as for the countries. The world of today needs technology which transforms everyday life, and Siemens as a company focused on industry, infrastructure and transport, has set a digitalization as a pylon of subsistence for the benefit of customers and society, as well for further development, because

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EVER SINCE I HAVE BEEN LIVING IN SERBIA, I HAVE MET GREAT EXPERTS ALMOST IN EVERY SEGMENT OF THE INDUSTRY no industrial company in the world, no matter its size, will be able to sidestep digitalization. Serbian Government has recognized the importance of digitalization which has contributed to significant development in this area in the past few years, and has acknowledged the importance of investing in this as a great capital of economic stability and growth in the future. Digitalization, as one of the priorities, transforms the everyday work in public sector and raises its economy, transparency, and quality of work. In order to keep up with digitalization, large systems, small and medium enterprises, experts are needed to guide through the whole process, step by step, experts that Serbia already has in enough quantity to use the potential and benefits

Absolutely! Even though we have been witnessing in the past so called “brain drain”, we see that the Government of Serbia has applied measures to increase output of all relevant technical schools and Universities. Both companies and countries are aware that the race for talents has started, and in my opinion the Government of Serbia does the right steps and “walk the talk” in this regard. Ever since I have been living in Serbia, I have met great experts almost in every segment of the Industry. From CEOs to factory workers. This is the topic I have thought a lot, being a Manager in the company myself. Serbian education system gives an amazing breadth and sense of responsibility and dedication trough schooling. What sets apart an average Serbian employer from the ones from other countries I have worked in is this ability of thinking outside the box, being flexible and finding the solution which may not be obvious at the first glance. The key is how employer is going to establish the business bond. With the good compensation package, life/work balance, and respect towards the knowledge these people have and are willing to show, you have a winning combination for thriving. I am witnessing that every day trough work and would for sure advocate for every German company to come and see for itself. How important is it to complete the process of implementing the dual education system in Serbia and how much do German companies and AHK members support and participate in this process? An important step towards reducing the unemployment rate, especially among younger people, is the introduction of dual vocational training based on the German, Austrian and Swiss models. The law on dual vocational training was passed in the Serbian parliament in November 2017 and has been successfully implemented since the 2019/2020 school year. The German-Serbian Chamber of Commerce has accompanied this process with the aim of supporting the local economy with the qualification of young people.

Now, about 4,500 students are taught in 80 schools, in 52 cities and municipalities, in about 600 companies, so that today dual education is represented in 10% of the total secondary vocational education with an increasing trend. In 2014, Siemens recognized the importance of dual education and initiated the introduction of this type of schooling at the Ivan Sarić Technical School in Subotica. We see dual education as a very important area in which we have been investing and promoting for years with the intention of providing our own contribution to the education of young people and of course, a channel for finding our employees. What are your predictions in 2021 when it comes to economic cooperation be-

tween our two countries? How can this cooperation expand further? As I have already mentioned, the Federal Republic of Germany ranks first among Serbia's most important supplier countries. The main import products from Germany are machinery, cars and car parts, electrical engineering and plastics. How-

GERMANY IS ALSO ONE OF THE MAIN CONSUMERS OF SERBIAN PRODUCTS

ever, Germany is also one of the main consumers of Serbian products, with the most important role also played by products from the mechanical engineering and electrical engineering sectors, as well as from the chemical sector. Apart from the consequences of the Corona pandemic, the growth forecasts for 2021 are not bad at all. Economists and economic institutions predict positive growth in Serbia's GDP in 2021, which should at least match the successes achieved in 2018 and 2019 with growth of around 4.4 percent. In 2019, the trade volume between Germany and Serbia was 5.2 billion euros; the 2020 figures are not yet available. However, we expect Germany to remain the most important trading partner for Serbia in terms of imports and exports. 

GERMANY WILL CONTINUE TO INVEST Can Serbia achieve the same results as in 2020 regarding GDP growth? — In this year, Serbia is expected to return to its pre-crisis level. The decisive factor will be how the Balkan state masters all coronavirus waves, efficiency of vaccination, as well as the way in which the Serbian Government will manage to overcome them. The ramp-up of international supply relations will also be important and these depend on the economic situation in the EU. However, it is certain that German companies will continue to invest in Serbia.

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INTERVIEW

OUR ECONOMIC, TRADE AND INVESTMENT TIES ARE CONSTANTLY REINFORCED MARKO ČADEŽ

President of the Chamber of Commerce and Industry of Serbia

Our trump card in the race for investors are the people which is something that German companies especially appreciate as seen in previous surveys, that is a competitive, trained, skilled workforce and top experts and engineers recognized globally

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ive years ago, Marko Čadež, the President of the Chamber of Commerce and Industry of Serbia, gave his predictions regarding the development of German-Serbian relations in the first edition of INFocus Germany and forcasted only growth. Five years later, we talked with him about further development of relations between the two countries, the growth of German investments, implementation of initiatives for the Western Balkan common market, successfully implemented dual education project, nearshoring and what was in store for Serbia this year in terms of EU accession.

Germany is still Serbia's most important trade partner, with the trading between the two countries amounting to over 5.2 billion euro. To what extent will GDP growth in 2020 affect the continuation of cooperation and recovery after the crisis and pandemic? It is extremely important for Serbia that our economic, trade and investment ties with Germany, as our main economic partner, continue to grow stronger during the pandemic. Over 11,000 Serbian companies did business with German partners last year – both imported from Serbia and Germany alike. Trading in goods and services has continued. The total external trade in goods and services last year exceeded 6.5 billion euro. We were especially pleased to see that the coronavirus did not stop foreign investments in Serbia, that German companies here invested in expanding their capacities and announcing further investments in the past year, and that negotiations with potential investors, for whom we are competing with the neighbouring EU countries, have continued. The fact that, despite the pandemic, we have managed to save workers and companies, production and export capacities, macroeconomic stability and economic base for the planned growth of 5-6% this year, has additionally solidified our position and made the Serbian economy a more reliable partner for potential German investors. Our recovery and further growth will depend on domestic and international developments, and how quickly the EU, i.e. the economies of our largest external trade partners, especially Germany, will recover. Serbia is becoming increasingly interest-

ing for investors from Germany and the opportunities are growing, for instance, in the IT and environmental protection sectors. What economic segments have good potential? Industries with the greatest development and export potential are the food industry (food for future), the production of technologically advanced machines and devices, the automotive industry, ICT technologies and creative industries, such as the film industry. We are talking about investments in high-tech sectors which, in addition to creating new jobs, will bring the latest technologies to Serbia, contribute to raising the technological level of our economy, create more added value products, enable our companies to join their supply chains and employ highly educated people. We are increasingly directing our investment incentive policy towards them, which is also part of our New Industrial Policy and Smart Specialization Strategy.

OVER 11,000 SERBIAN COMPANIES DID BUSINESS WITH GERMAN PARTNERS LAST YEAR – BOTH IMPORTED FROM SERBIA AND GERMANY ALIKE To attract high-tech companies, which are nowadays frequently deciding to open their research and development facilities in addition to factories in Serbia, as did Germany's Continental, Draexlmaier or ZF Friedrichshafen, in addition to ease of starting a business, having a good regulatory framework and fostering strategic commitment to development and application of artificial intelligence, we have two other trump cards - people and a set of tax incentives for companies willing to invest in research, development and innovation. Many German companies are considering investing in Serbia as part of their strategies to shorten the supply chain (so-called nearshoring). What can Serbia offer them? First of all, security and stability, which have been sustained even in the most dif-

ficult circumstances during that pandemic and is something that very few investment destinations in the world can boast of, and better medium- and long-term prospects than most comparable economies. Also, our borders are open for business people from all over the world, who could enter Serbia during the pandemic with fewer formalities than other passengers. For us, this means greater chances and greater attractiveness for the international business community, which, in the coming period, will search for safe, stimulating and investment destinations closer to home more than ever before, which guarantee safer supply, better conditions for doing business, greater predictability and profit. Investors that decide to relocate their production plants from very remote destinations to Serbia and spend their capital here, can count on simpler procedures for setting up a company, obtaining building permits faster and doing business easier and cheaper than anywhere else in the region. They will also have lower operating costs here than in competing locations and will be entitled to a whole set of financial incentives - tax and customs reliefs, state subsidies, incentives from local governments, functional infrastructure, and the shortest routes for transporting goods through European corridors. Thanks to free trade agreements, producers in Serbia can export to the market of almost 1.4 billion consumers worldwide duty-free. In Serbia, investors can also rely on the local economy, i.e. reliable domestic companies which can join supply chains of multinational companies and meet the standards of the most complex markets and the most demanding customers. We have further boosted the quality and availability of workforce by incorporating dual education in our school system – both in high schools and colleges. Ultimately, there is no better recommendation to future investors than the experience of almost a thousand German companies already operating here. How important for Serbia is forming a single market in the Western Balkans and would that bring a larger influx of FDI? I believe that there is nothing that could contribute to the improvement of the business climate, the recovery and growth of our economies and the greater influx of foreign investments in both Serbia and

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have you come with that?

the Western Balkans like economic integrations in this region. Establishing a common, regional market without barriers and the Western Balkans as a single investment destination will reduce costs and make business more efficient, only one paper will be needed to accompany goods moving through all six economies, waiting time for trucks at borders will be drastcially reduced, exchange of workers and experts without having to produce work permits will be facilitated and tourists will be able to travel around the region freely. Other benefits include the WB countries harmonizing regulations and practice in all areas important for business with each other and with EU standards and working according to the same rules. This will allow the companies operating here to cut their costs, be more productive and competitive, produce, export and invest more, and make the WB even more attractive to the international business community. This is why it is important that the new action plan for

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ESTABLISHING A COMMON, REGIONAL MARKET WITHOUT BARRIERS AND THE WESTERN BALKANS AS A SINGLE INVESTMENT DESTINATION WILL REDUCE COSTS AND MAKE BUSINESS MORE EFFICIENT the common regional market, which was adopted in Sofia this autumn, at the WB Summit under the auspices of the Berlin Process, and which officially started to be implemented on January 1, is implemented more consistently. In 2018, the Government of Serbia restructured vocational education, which is now based on a dual model. How far

Business people are actively participating in devising the enrollment policy and curricula for dual educational profiles. They have also joined the National Council for Higher Education and the councils of educational institutions. About 4,000 students have so far graduated from their high schools in line with the dual model, 70 percent of them work jobs they studied for, and in addition to working in about 900 companies, 6,900 students are currently studying for 47 educational profiles. Almost half or 3,289 students in 415 companies are preparing for dual occupations, i.e. profiles that have been developed with the support of German partners. We are grateful to the German government and partner organizations, such as GIZ and the German-Serbian Chamber of Commerce (AHK), for their support so far in the development of dual education. It is especially important for us to continue the current cooperation on improving regulation and to continue stimulating German companies to participate in dual education in Serbia. Also, financial and expert support is important for the development of dual education in Serbia and the region, which can be realized through the Regional Challenge Fund, which the German Development Bank (KfW) has founded in cooperation with the Western Balkan Six Chamber Investment Forum (WB6 CIF). What awaits Serbia this year? It is important to bring the virus under control as soon as possible, not to prolong the crisis, to continue and accelerate the pace of vaccination and create conditions for normal business, planned growth and reforms on our way to the EU accession. At the same time, we need to fight for people's lives and health, which is the most important thing for the economy, and we do not want to prevent people from working and earning, while adhering to epidemiological measures. It is important that, as part of the European economy, we monitor the situation at the international level and, if necessary, respond with appropriate support to businesses. We also need to turn to new tools to support companies and to new business models that will create new value so we can operate better in the post-COVID period. 

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INTERVIEW

GERMANY WILL CONTINUE TO INVEST IN SERBIA FRANK ALETTER

Director of the German-Serbian Chamber of Commerce (AHK Serbia)

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GERMANY 2021

There are more and more investments that are taking place at a higher technical level and that is what propels a country to the next level, GDP-wise. Serbia also needs to ensure that there is enough available workforce with the right skills and that they are trained and educated for the future so we can elevate FDIs in the region

or the jubilee issue of InFocus Germany, we spoke with Director of the German-Serbian Chamber of Commerce (AHK Serbia) Frank Aletter, who has over ten years of experience in the system of German chambers of trade and industry. “The German Chamber network worldwide, with 130 offices in 92 countries, promotes trade and investments between Germany and the relevant countries, including Serbia. So, my expectations are that the good foundation and good relations between Germany and Serbia will grow in the next years, while I am in Serbia”, concluded Mr. Aletter.

German investors employ more than 67,000 people and German companies have an exceptional influence on the business spirit in Serbia. How important is the cooperation between our two countries in each segment? There is a variety of things to be mentioned here. Maybe we can first talk about the topic of FDI. During recent years, we have seen quite a strong involvement of German companies in investing in Serbia, which also brought knowledge transfer and created jobs. The reason for that is that there are competent and skilled people here, and of course, because of the relationship between Serbia and the EU. That is certainly one area we are specifically focusing on, and if you look at the SEE region, Serbia is quite a strong player. Then, we have Serbian companies, operating also for quite a long time, which have certain goods or products that fit into the German supply chain. Since the coronavirus pandemic has started, we have had discussions on the topic of so-called “nearshoring”. In simple terms, nearshoring means diversifying the supply chain for German companies, who are closer looking into finding more suppliers in this area. The third one is the general trade – namely, import and export of products, including primary goods since Serbia is quite well positioned when it comes to the agricultural sector. Then there are, of course, German companies in the semi-finished product sector for which Serbia is an interesting market. Also, Serbia’s GDP growth is beneficial for both business sides. What will happen with the Western Balkans Purchasing Initiative in 2021, and is the aim?

The Western Balkan Purchasing Initiative was launched six or seven years ago. We have been working on it continuously together with our colleagues from German chambers in the area but also with the German Association for Procurement and Supply. The idea is, as I mentioned, to tap into this topic, where German companies are looking into diversifying their supply chain and matching purchasers and suppliers. The overall aim is to strengthen the business relationship and support the development in different areas and countries. The initiative contributes to job creation and stabilization of whole areas, including rural areas that are going through change. In Germany, we also have complete areas changing and we need to identify or define their new role. This is what we are tapping into and we want to promote that idea with this initiative. So, as you said, we are not only focusing on Serbia, but also on the Western Balkan region, since we believe that the WB countries offer quite a good range of very interesting solutions, which is what we have seen over the past six or seven years.

enough available workforce with the right skills and that they are trained and educated for the future so we can elevate FDIs in the region. That's one part. The other part, which also doesn't apply only to Serbia, is something that many countries need to look into - sustainable economic development. Topics like the environment, the efficient use of water, fostering a clean energy approach and reducing CO2 emissions will become increasingly important. Through its Green Deal approach, the EU vouched to become carbon-neutral by 2050. Since the EU is one of the dominant trading partners of Serbia, this is something Serbia also needs to look into. That's where we can use the good relationship between our countries and we can foster cooperation in science and research, and of course, in business areas that both countries would benefit from. Plus, of course, we have 350 member companies, both German and Serbian.

WE CAN FOSTER COOPERATION IN SCIENCE AND RESEARCH, AND OF COURSE, IN BUSINESS AREAS THAT BOTH COUNTRIES WOULD BENEFIT FROM

I think it's a quite difficult to answer that question and if I knew the answer, I probably wouldn't be here. Let me address two points. If you look, in particular, into the German-Serbian trade relations, we only had a trade decrease of 2% in 2020, i.e. from 5.2 billion euro in 2019 to 5 billion last year. So, our trade proved to be quite stable. The trade deficit has been quite limited or smaller. All in all, this is actually a quite healthy trade relationship. Our partners in Germany, so-called Industrie und Handelskammer, have been conducting surveys and research on future developments. Last year, the GDP declined by 5%, which is still a better result for Germany compared to the 2008 financial crisis. Our only hope is, and we have discussed this idea with our partners, that, when it comes to measures, we should base them on free trade and movement of goods. We also hope that global development will revert to the pre-pandemic level. If you read the German newspapers, you’ll see that everybody is stunned about the Serbian approach regarding vaccination. I would like to congratulate the Serbian government for carrying out the vaccination process smoothly. In my opinion, vaccination is the key to overcoming the pandemic at the end.

What can Serbian government do to make the business environment more attractive and in which sectors do you see an opportunity to improve cooperation? Off the top of my head, I can think of several areas that can be improved but let’s talk about two points. If you look at the development of Serbia or the Western Balkan region, German investors regard it as a positive thing. The investments, were you need a full spectrum of workforce, are not so common any more. There are more and more investments that are taking place at a higher technical level and that is what propels a country to the next level, GDPwise. We see that with the German investments and that is going to continue. Serbia also needs to ensure that there is

What is your forecast regarding overcoming the consequences of the coronavirus pandemic on the German economy but also on German companies in Serbia?

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Focus

You mentioned the 2008 financial crisis. Did we gain some kind of know-how that we can use today and what have we learned? Compared to 2008, Germany has now been allocating funds with the view of strengthening certain economic sectors and has more flexible labour regulations. All of this seems to have worked in 2008 and last year. If we look at Serbia and worldwide, the situation is a bit different now, as is the foundation. Germany’s approach is somewhat more challenging. So, balancing the health interests of each and every person together with economic interests, which, in the end, also relates to nature, forms a future perspective. All of this wasn’t needed in 2008. It was a different scenario back then. The route that Serbia has taken is hopefully also a good one. However, it’s always tricky for the persons who are in charge to balance out these interests. The former Delegation of the German businesses today known as AHK Serbia, is celebrating 20 years of operations in Serbia this year and AHK five years since its founding. How important is a stable business environment? As we know, it's always quite important for investors to have a stable framework that they can rely on. That starts with issues like, for instance, property law, i.e. investing somewhere that you can get your return on investment out of the country too. These are the basics that are more or less covered here in Serbia. Furthermore, it’s also quite important that you have a standardized system or a standardized framework, as well as technical certificates and testing centres and that you have carried out standardization of certain products. When you want to compete and compare to others, you have to compare apples with apples and not apples with oranges. Another important thing is for a country to have a more or less reliable industrial or economic policy that

THE WESTERN BALKAN PURCHASING INITIATIVE CONTRIBUTES TO JOB CREATION AND STABILIZATION OF WHOLE AREAS doesn’t change frequently. These are the factors that are very, very important for investors. Also, there is something we touched on quickly at the beginning which is the right kind of workforce, who is skilled and trained. There are German companies which offer dual vocational training and have a system in place for developing certain work skills. Because of a more general approach, you can grow the workforce. But, as I said earlier, the basics have to be put in place. This is something that German companies are looking for.

There has always been a chase for talent and all partners need to participate in developing that talent. Which organizations and institutions does the Chamber cooperate with the most in Serbia and which projects are planned for the next period? We cooperate, as you mentioned, with the Serbian Chamber of Commerce quite closely on a wide variety of topics. The Chamber is a natural partner to us. On several occasions, we have also talked with organizations from certain sectors depending on having organized meetings between specific companies from a certain sector - for example, in the energy field or energy efficiency, in particular, or the circular economy, meaning wastewater and waste treatment. These companies are open, can provide the right infrastructure and we have a continuous working relationship with them. Sometimes we establish new contacts if there's a new sector of specific interest. 

IMPRESSIONS OF BELGRADE What are your impressions of Belgrade and Serbia? — I’ve been here for four weeks and I’m really enjoying it. Belgrade is an old city with lots of history but it is also quite open compared to other countries that are still in lockdown which makes a huge difference. Belgrade is also a beautiful city and I must say the weather, with the blue sky, is very nice. The city’s location, on the Danube and Sava, is just fantastic. So, I do enjoy being here.

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CORPORATE

#GERMANY #NO.1 INVESTOR #VOJVODINA #RAV Most German companies in Vojvodina operate in the automotive sector

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ermany ranks first both in terms of the total amount of investments made by German companies and in terms of the number of people they employ in Vojvodina. Currently, 54 companies are active here, which have invested 1.48 billion euro, which is 14% of the total foreign investments in the Province. They employ 22,174 people, which is 23% of the total number of employees in all foreign companies in Vojvodina.

IN NUMBERS

German companies have invested 1.48 billion Euro, and 54 companies are employing 22,174 people Most German companies in Vojvodina operate in the automotive sector. They include Bosch GmbH, IGB Automotive (parent company IG Bauerhin), DAD Dräxlmaier Automotive, Norma Group, ContiTech (Continental AG), ZF, BMTS, Knott Autoflex, SD Hirsch Automotive and others. In the agribusiness sector, we have Mamminger Konserven-SRB, Dr. Oetker, KWS Serbia, Sano (Bernhard Waldinger GmbH), followed by companies from the construction industry like Henkel, Thyssenkrupp, TCS, Geze; electronics industry Dunkermotoren, Mühlbauer, B + B Sensor Solutions (B + B Thermo-Technik GmbH), Continental Automotive, Siemens, ebm-papst; IT companies Codecentric and Frobas, as well as Frezenius Medical Care (medical equipment) and Hemofarm (Stada), Linde Gas (Linden Aktiengesellschaft), textile company Mehler, etc. #WHY IS GERMANY THE NO.1 INVESTOR IN VOJVODINA? There are several important reasons for this: the optimal ratio between cost, productivity, and quality of the workforce, competitive operating expenses, favorable tax system, generous incentives, an ideal geographic location for JIT/JIS pro-

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This is a map of Vojvodina with marked German investments. If we were to mark every single German investment in Vojvodina, we would not be able to see the map at all. German companies have been 'anchoring' themselves in Vojvodina for two decades

duction and to cost-effectively distribute aftermarket products to the region, duty-free access to over 1 billion consumers. Vojvodina has the highest percentage of skilled and highly skilled labor in Ser-

bia, a multilingual education system, and Novi Sad is a specific center of university education, which has been established as the center of the information technology industry. 

FDI IN VOJVODINA BY COUNTRY OF ORIGIN AND THEIR INVESTMENT AMOUNT No.

Country of origin

The investment amount in million EUR

Number of employees

Number of companies

1st

Germany

1,482

22,174

Italy

1,033

14,560

3rd

USA

1,023

6,836

France

848

7,361

5th

Slovenia

817

2,810

Statistical data of the Vojvodina Development Agency

#1 FAST DIAL - VOJVODINA DEVELOPMENT AGENCY – RAV As a regional investment promotion agency, established by the Provincial Government, RAV provides a comprehensive package of advisory and assistance services to companies looking to establish their business in the region of Vojvodina. Due to its close association with various state and provincial government institutions and extensive network of local partners from the private sector, academic institutions and business associations - RAV represents trusted source for obtaining the most reliable information needed for making an informed investment decision.

#ANNOUNCEMENT OF RAV EVENTS IN 2021 If event-organizing will be allowed, we hope that our paths will cross at the following events:

TRADE FAIRS: · EXPO REAL, Munich, 11-13 October 2021 · EXPO 2020, Dubai, 1 October 2021 – 31 March 2022

SUPPLIERS’ DAYS: · Agribusiness 2021 (B2B meetings) – last week in March If our paths do not cross at these events, call or write to us. We have all slowed down a bit in these difficult times, but we are still moving in the same direction. Good luck and keep the wind in your sails!

SASHA CIORINGA, General Manager of Continental Automotive Serbia „I am very proud that excellent results of our Research & Development center in Novi Sad where currently about 600 engineers develop innovative technologies for the automotive industry, attracted new investments for Serbia. There is a real added value for the economy when the innovative work of our

engineers transforms into a real product labeled “Made in Serbia“. With attractive projects in the fields of electronics for vehicle cockpits or systems for automated driving, our company has grown in Serbia to one of the country’s biggest engineering employers in only three years of existence”.

MR. MILAN GRUJIC, Managing Director ZF Serbia, Second Vice President of AHK Board “Innovative future vision and ambitious expansion plans made ZF the biggest Greenfield and one of the most important investments in Serbia. ZF understood how the investment climate in Serbia is developing and changing for the better: the economic and political situation is stable, infrastructure adequate and there is good potential for a qualified workforce. One crucial factor is constant and professional

institutional support and unconditional understanding for investors, and it is available from local, provincial, and country’s government. With all that in mind, ZF made a bold move to come to Pancevo, and it was the right one. When we look back on 3 years and progress of local operation here and 800 active employees, we can be satisfied that we recognized and chased this opportunity”.

GERMANY 2021

Focus

REW ENERGY

GERMANY TOPS GLOBAL LEAGUE TABLE FOR RENEWABLE ENERGY

ermany is a world leader in renewable energy and in the first half of 2020 it produced enough electricity to power every household in the country for a year. The country has also set an ambitious target to get 65% of their electricity from renewables by 2030. For a relatively cloudy country of over 80 million people, Germa-

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GERMANY 2021

ny is looking forward to a seriously bright future with solar energy! Clean energy contributed 12.74% of the German energy mix at the end of 2020. Germany was also one of the world’s largest coal producers and could in principle supply all its domestic electricity from coal. However, Germany instead pursued ‘Energiewende’ prioritizing wind and solar

energy to combat climate change. For Germany, 2020 was a banner year in the production of renewable energy. Clean energy sources—wind farms and solar arrays as well as hydroelectric and biogas plants—ratcheted their share of power consumption up to 46 percent, nearly equaling that of coal, gas, oil, and nuclear power combined.

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CORPORATE

WE HAVE QUICKLY ADAPTED TO THE NEW CONDITIONS

The coronavirus pandemic has created great challenges for the entire economy, including the transport sector

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BRANKA PERIĆ ŠLJIVIĆ

Director of Perić Trans Company

he Perić Trans Company was founded in the difficult decade of the 1990s. Thanks to the strong commitment of the company owners and the quality of service, the company has been in business for 30 years now. However, the transport sector was particularly affected during the coronavirus pandemic. We spoke with the director of Perić Trans, Branka Perić Šljivić about the company’s response to the crisis caused by the coronavirus and other challenges the company has encountered during the three decades of successful operations.

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The Perić Trans Company is engaged in an economic activity that has been particularly affected by the coronavirus pandemic. How did you overcome all the challenges and what are the problems that your sector is currently facing? — Our sector is one of the industries that are most at risk, while, at the same time, have vital importance for the functioning of society and the recovery of the national economy because it is the lifeblood of

CHALLENGES

We are proud of all our employees who have been bravely fighting against all the challenges we face every day

any economy. The impact of strict measures to combat the spread of the COVID-19 pandemic was complex, but also negative for us. On the one hand, the need for the transport of goods, which is of key importance, grew, but in general, the demand for transport services declined. Given that we have faced various challenges in previous years, we have quickly adapted to the new conditions for doing business, instructed our employees in regard to protection measures and created a work strategy that was sustainable and efficient. It was very important for our clients that we were able to continue to service them even in the most difficult conditions and meet their requirements. We are proud of all our employees who have been bravely fighting against all the challenges we face every day, and there has been a multitude of them. We are especially grateful to the drivers who have been doing their job in extremely difficult conditions for the past year. Transportation to the UK represents a significant portion of our business, and Brexit has caused difficulties for us in terms of our vehicles being retained for a number of hours due to huge bureaucratic regulations. Completing additional documentation for vehicles heading to the UK has also caused us to reorganize our business. The emergence of a new British strain of the coronavirus has resulted in new measures, and the latest measure introduced by the Republic of Germany, which pertains to

professional drivers, stipulates that they are obligated to register and submit a negative test to COVID-19 at the border, which, in turn, has resulted in major delays in transporting goods to Germany. Furthermore, our drivers are forced to wait outside for several hours every day, in bad weather, in order to do the test. By doing so, they are exposed to a higher risk of infection, which is certainly worrying. You have an impressive fleet of vehicles, and in addition to national, you provide international transport services as well. Which countries do you cover and what type and level of services can your customers expect? — We are focused on services relating to the cold chain, namely, transporting goods in controlled conditions - food and pharmaceutical products by refrigerator trucks, as well as transporting liquid food by food tanks and various goods by trucks in ambient conditions. We are focused on providing transport to Western Europe, mainly Austria, Italy, Germany, the Benelux countries, Great Britain, Poland, France, Spain and Greece. We have satellite tracking for all our vehicles, so our customers can be constantly up to date where their goods are at any given moment. Our refrigerator trucks are equipped with the latest smart telematics, which allows us to constantly monitor the operation of their refrigeration parts. Our company is constantly investing in the quality of services we provide to our clients, and we possess quality certificates such as HACCP, ISO 9001, IFS, GDP and PHARMA CERTIFICATE.

we are today. Every day, we strive to solidify our position in the market together. We want Perić Trans to be a brand recognizable for its values, which are persistence and perseverance in implementing plans, as well as responsibility and the desire to respect everything we agreed with our clients. Our family and employee’s commitment contributes to achieving that goal. As a socially responsible company, you donated 3 million dinars towards medical equipment for the gravely ill patients suffering from the COVID-19 virus. Tell us a little more about it. — In order to support medical facilities and staff, we joined in the mutual fight against the coronavirus and donated 3 million dinars to the State Health Insurance Fund. We also appealed to other companies to join in and send as much help as they could. You are a woman in what is considered to be “a man’s job”. What is the current situation in Serbia like in terms of availability of workforce in general and good driv-

UP TO DATE

We have satellite tracking for all our vehicles, so our customers can be constantly up to date where their goods are at any given moment

ers, in particular? How, as a society, can we contribute to the popularization of the transport business among the young generations of both genders? — Work, effort and knowledge are important in any job, which, regardless of gender, play a key role. Thus, in my case, by focusing on work and effort I achieved the expected results. I think that Serbia has a lot of good workforce, and that working conditions and the working environment are some of the important factors in finding them. The fluctuation of workers in the road transport sector is extremely large. The lack of professional drivers has been quite noticeable in recent years not only in Serbia but throughout Europe. With the advent of social networks and various applications, communication between people has reached the highest level, and so drivers have various groups in which they can exchange experiences and give their positive or negative opinions about employers. Very often they succumb to misinformation and often change employers, hoping for a better salary or better working conditions in another company. I think that the transport industry has experienced an expansion in the last few years, not only in Serbia, but also in Europe, and this is one of the reasons for the lack of drivers on the labour market. There are many companies in our sector which employ an impressive number of young people who are willing to fight the challenges that our industry brings. 

In addition to transport, you also sell and rent construction machinery. What are the company’s results in this segment? — Since our company is focused on renting and selling new and used construction machines, we have a large variety of construction machines in stock, and we are able to satisfy even the most demanding inquiries. Next year, the company will celebrate its 30th anniversary. What guides you in your business and what would you single out as the biggest challenge so far? — One of the biggest challenges is certainly the development of our company and surviving on the market for such a long time. Considering that our company was founded in 1992, we have gone through various stages of development to become what

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CORPORATE

SUCCESSFUL CONSTRUCTION WITH PERI

PERI has one of the widest ranges of formwork systems in the world, not to mention a wealth of expertise in the formwork business most challenging structures. Simultaneously, the competition and cost pressure we now face from construction companies calls for increasingly efficient building operations in order to cope with rising construction volumes in the face of increasingly demanding schedules. The comprehensive engineering services of PERI Engineering play a decisive role in the effective interplay of formwork and scaffolding technology.

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SOLUTIONS FOR INDUSTRIAL APPLICATIONS

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ERI is one of the world's leading suppliers of formwork and scaffolding systems, civil engineering solutions and leading 3D construction printing supplier. Since its foundation in 1969, the PERI headquarters in Weißenhorn, Germany, has been steering the fortunes of the globally operating family business. More than 2,000 engineers around the world work for us in over 60 branches. Under the claim of providing the best service to the customer, our employees tackle the daily challenges around the construction process together with contractors, tradesmen, scaffolders and architects. FORMWORK SOLUTIONS

PERI has one of the widest ranges of formwork systems in the world, not to mention a wealth of expertise in the formwork business. PERI, a family-owned company, has been in the market for 50 years and has always been a trendsetter when it comes to formwork technology. What has made us so successful is that in everything we do, we always think first and foremost about the benefits for our customers.

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GERMANY 2021

SCAFFOLDING SOLUTIONS

At PERI, we have many years of experience in the scaffolding business and are among the innovation leaders in the industry. PERI provide scaffolding technolo-

BENEFITS

We always think first and foremost about the benefits for our customers gy and services for building construction, civil engineering and industrial construction engineering. PERI engineers the world over are working hard to come up with efficient and cost-effective solutions for falsework, working scaffold, safety scaffold and access applications. CIVIL ENGINEERING SOLUTIONS

From a civil engineering point of view, infrastructure projects such as bridges, retaining walls and tunnels, but also high-rise buildings and towers are the

Especially industrial projects require a very large amount of scaffolding for a long time. Therefore, efficient planning and execution is very important. At PERI, we therefore offer you comprehensive and integrated solutions throughout the entire project lifecycle. This increases the transparency of your project and the planning, quality and efficiency can be better predicted, determined and controlled. PROJECT PLANNING, CONSULTING AND ORGANIZATION

Our experts support you throughout the entire construction process. The focus is always on process optimization, safety and cost-effectiveness of execution. For your project success. 

Our new colleagues are highly motivated to work, develop & invent new products and be a part of the new future of Brose and Serbia

Photo: CorD magazine

CORPORATE

SERBIA HAS A GREAT FUTURE

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ROMAN STRAKOŠ

GM of Brose Group Serbia

ne year ago, the Brose Company launched their operations in Serbia, a major project during the greatest global crisis caused by the coronavirus. We talked with Mr. Roman Strakoš, GM of the Brose Group Serbia, about the company’s plans and implementation of future projects. In March 2020, the Brose Company started to develop its complex in Serbia. How far have you come with the construction? — That is very interesting question. We are very exact in our planning and plan execution. Of course, we thoroughly evaluate all possibilities, just like other companies, and if it made sense to continue or postpone our activities due to Covid-19. I have to say that our owner and Managing Board’s commitment was very clear, i.e. to continue as we originally planned and if possible, expedite our activities. I can say that we have experienced almost no delays as a result of our fine tuning of planning with our contractor. Next 4 months will be crucial for installation of our technology, production line releases and moving into our new facility. Our deadline is 1st July when we want to send our clients the first parts produced inour brand new plant. This means that 16 months will pass from the groundbreaking to delivering the first parts produced in the new factory. Many companies have been focusing on saving their business, while you, on the

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GERMANY 2021

contrary, have been working on business development and hired new workers. How did you approach your company’s business during the crisis? — Right from the beginning, our original plan was very ambitious and despite the obstacles we were able to manage all tasks in direction of construction – i.e. our construction specialist had to work remotely due to travel restrictions of, sending our new employees for training abroad, setting up the organization and hiring from 1 to 170 employees. From my perspective, this was an outstanding performance of the whole

PLAN

Our original plan was very ambitious and despite the obstacles we were able to manage all tasks in direction of construction Brose Serbia team and our associates from abroad. In 2020, we rethought our original plans and focused on eliminated risks. As a result of this, we welcomed specialists from other Brose locations, and right now, we have representatives of 11 nations in our Serbian team. We have also been using remote support via VR or AR. Brose is very focused on socially responsible work, both in healthcare and education, as well as in supporting young peo-

ple. What CSR projects and campaigns are you especially proud of? — I would like to single out Brose’s donation in the shape of a robot that handles PCR Testing to the Public Health Institute in Pančevo. This new device not only increases the capacity of sample analyzing and speeds up testing process, but also reduces the risk of medical staff getting infected. We have a few other local projects to implement in Pančevo, but this is just at the beginning. We will let you know about these projects soon. Brose is a worldwide company. What are your plans when it comes to business development in Serbia? — Yes, we are, and also we are very strict planners. Our company does very precise long-term planning that covers the next 5 to 10 years. Currently, our approach is more or less conservative. This and the next year will be the most important milestones for the company’s future, in terms of hiring, training, production line installations, employee and customer satisfaction and of course, producing top-quality products and providing a superb service. If we do this successfully, we will focus on supporting the development of our local suppliers, CO2 emission reduction (we already made the first step by participating in the Tree for Belgrade campaign) and much more. In general, I can say that Serbia has a great future and I do see it as the Balkan Tiger. I am also very happy to see all our new colleagues who are highly motivated to work, develop & invent new products and be a part of the new future of Brose and Serbia. 

CORPORATE

QUALITY AND RESPONSIBILITY FOR HEALTHY LIFE ON THE PLANET All our products will be produced using green energy

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of the world, but also thanks to the high degree of professionalism of our distributors, our company has been recognized as a desirable and reliable partner in creating and implementing ideas.

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BOJAN SIMOVIĆ

Managing Director of Hörmann Serbia d.o.o.

örmann's title as the leader in the production of industrial and garage doors, in addition to unrivalled product quality and investment in long-term partnerships, also rests on the ongoing fight to prevent climate change. We talked to the Managing Director of Hörmann Serbia, Bojan Simović, about this fight, as well as the company’s results and future plans. Hörmann has been operating in Serbia for more than a decade. Are you satisfied with the results achieved so far? — Hörmann is a global giant in the production of industrial and garage doors, and we have managed to secure a leading position in the Serbian market in the last ten years, thanks to the quality of our products, but also the trust we have carefully won over with domestic customers. Despite all the difficulties, our company still recorded growth last year. In addition to safety and security, as the basic values of our products, we pay a lot of

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GERMANY 2021

attention to innovation. Our product range for smart home systems has satisfied even the most demanding customers in the domestic market.

GROWTH

Despite all the difficulties, our company still recorded growth last year You have raised the collaboration with the construction industry and architects to a higher level and they have recognized you as their long-term partner. — Cooperation with architects is the foundation of our business. We have developed a special range for architects, which significantly facilitates their work, just so that they can fully dedicate themselves to the development of their ideas. On the other hand, despite all the problems caused by the ongoing pandemic, the construction industry is recording significant growth, which greatly contributes to the economic growth of Serbia too. Thanks to the quality of our products, which is identical to those in Germany, other European countries and the rest

The situation with the COVID pandemic has greatly changed all business segments. How did it affect your business and what is your view of the market’s future? — This situation demonstrated how important it was to quickly adapt the work processes to new circumstances. We are aware that the market will inevitably transform, and that the losses that the global economy will suffer will certainly be great. Digitalization will be implemented in almost all business spheres more and more, but human nature and needs will remain basically the same. Certain economic branches will not disappear, but will only undergo reorganization. Despite the increasing digitalization, people will remain the basis of all processes. What are your company plans in 2021? — This year will be dedicated to the fight against climate change in our company. In early March, we will launch a campaign for the complete reduction of carbon dioxide in the production processes in our factories, so that all our products will be produced using green energy and as such, when used, will not have an adverse effect on climate. The fight for a healthier environment must not be done in phases and cannot be symbolic - rather, it must be continuous and start immediately. We are aware of that and that is why our commitment to preserving the environment has been a very important aspect of our business for several years. We want to raise customer awareness that when choosing Hörmann’s products, they not only choose the ease and comfort of living but also contribute to a healthier life on this planet. 

CORPORATE

WE HOPE FOR EVEN GREATER SUCCESS

CLICK ON ICON

Our consistently implemented high standards have also helped us achieve success and growth in the CEE and SEE

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JELENA KNEŽEVIĆ

Partner, LeitnerLeitner Serbia

think that in 2021 we will see the full extent of the damage done by the pandemic. I am especially proud that the LeitnerLeitner team has successfully overcome all challenges that have been put in front of us – from a legislative perspective and frequent changes of regulation to challenges related to the pandemic and normal course of doing business. How did the crisis affect the Serbian economy and LeitnerLeitner Serbia? — Serbia has an excellent geostrategic position and bilateral relationships with numerous countries. These benefits must be utilized in the recovery of our economy in the upcoming period. One of LeitnerLeitner's main corporate strengths is caring for our employees, clients and the community. Faced with the challenges imposed by the coronavirus, my team has demonstrated strength and flexibility in action during this difficult time. Our approach rests on our commitment to the safety of our employees and ensuring that the company continues to respond, operate and support our clients daily. As a result, we have adapted to all the changes in a very short period, serviced clients without any delays and even acquired new ones. This year you are celebrating 10 years of business in Serbia. What has contributed

to this continuity and what are you especially proud of? — A decade of doing business is certainly a great success for us and the positive outcome of this is the fact that our clients see us as a reliable partner. The keys to having a competitive edge in business are competence, reliability and speed – principles that LeitnerLeitner has been practising for over 60 years. Our team’s outstanding technical skills and top quality of LeitnerLeitner services are the company’s key success factors in Serbia.

ENVIRONMENT

Companies that care about their talent create an environment in which every employee is given the opportunity to learn, develop and unleash their full potential We also have an interdisciplinary and dynamic approach so that we can explore all possibilities and find the best course of action for each client. Our staff’s expertise and integrity play a decisive role in the process. Also, we cultivate close personal and tried-and-tested professional relations with several renowned consultancies. In this way, we can eliminate country-specific risks and find the best possible solution, even in complex situations. In which direction are you going to develop your business in the next period? — Our plans for the next period are very op-

timistic as we hope for even greater success and for the company to continue growing in Serbia, as well as possible expansion to a region where LeitnerLeitner is not represented yet. We are constantly investing in training our employees and we hire young talented people who are willing to learn and grow together with us. We nurture the professionals in our firm and give employees the space they need to grow into superb advisors. LeitnerLeitner Academy’s comprehensive training system gives every staff member a broad general training from their first day with the company. You have recently been made a partner at LeitnerLeitner. What did LeitnerLeitner bring to you, and how did you contribute to the company? — It has been a great pleasure for me to be at the helm of LeitnerLeitner in Serbia for the past six years and to have a very successful period behind us, both in terms of the company’s development and the market brand, as well as in term of developing our employees. LeitnerLeitner has contributed to both my professional and personal development, since I, as a manager, had to overcome constant challenges while following professional standards and position the company as a reliable partner in the market. Indepth analysis and a proactive approach are the values I instilled in my team and that’s something I am proud of. If you are asking me what do I love the most about my job, I would say the possibility to create added value, work with talented and created people who share the same vision and are dedicated to the company’s mission and professional growth as each project presents unique challenges. 

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CORPORATE

WE HAVE MANAGED TO OVERCOME ALL THE CHALLENGES We are grateful to our teams for their commitment and willingness to do more together to achieve good results

CLICK ON ICON

What results did Henkel achieve in the very challenging year that was 2020 in Serbia? — All parameters show that we can be satisfied with the achieved results. We are grateful to our teams for their commitment and willingness to do more together to achieve good results. We have managed to overcome all challenges, and export over 90 percent of our production output. Thanks to increased production and accomplished results, we ranked 7th among the largest exporters in Serbia in 2020.

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GORDANA BRAŠIĆ

President of Henkel Serbia and Head of HR Sub-cluster South

RANKING

Thanks to increased production and accomplished results, we ranked 7th among the largest exporters in Serbia in 2020

How did the coronavirus pandemic affect your business in 2020? What were the biggest challenges and how did you overcome them? — Henkel Serbia is a large system consisting of various types of business, separate locations and numerous brands, some of which were categorized as strategically important during the pandemic. The biggest challenge was to quickly and safely reorganize our operations, to protect our factory workers and organize remote work for those employees whose nature of the job allows remote work, and then to ensure business continuity and supply both on the Serbian market and 40 markets worldwide. We succeeded in all this thanks to the good cooperation of our crisis team and the understanding and support of the employees.

You managed to give your support to the health care system in Serbia. Could you tell us a bit more about your donations and CSR projects? — Helping the community in emergencies is part of our commitment to social responsibility. During the pandemic, thanks to our solidarity programme, we were able to help the frontline medical staff in solving a global problem. In cooperation with the Novak Djoković Foundation, we gave five ventilators and five clinical monitors to the General Hospital in Kruševac. We also donated hygiene products and protective equipment. In addition to this hospital, we donated products to the Gerontology Centre in Belgrade, the Pulmonology Clinic in Belgrade and the Health Centre in Indjija. We also helped our senior citizens with the lowest incomes by donating goods to the Red Cross in Belgrade and Kruševac. The total value of these donations exceeds 480,000

ccording to all parameters, the year 2020 was very challenging for the entire society, and especially for the economy. We asked Gordana Brašić, President of Henkel Serbia and Head of HR Sub-cluster South, how Henkel coped with these conditions, whether the company had achieved satisfactory results and what the plans for the next period.

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GERMANY 2021

euro. We are especially proud that, in 2020, we continued to implement our corporate volunteering programme - the Make an Impact on Tomorrow Initiative, in which employees independently apply for a project to help the local community and volunteer to take part in it, while the company gives them necessary resources to do so. In 2020, a total of 16 projects, worth more than 57,000 euro, were submitted. Although we had to change our plans due to the pandemic and give up on realizing some of our ideas, all our business sectors found a way to continue to help the community. Thus, the business unit Laundry & Home Care implemented the project called "I love the river, do you?", Thanks to which 650kg of waste was removed from Lake Ćelije, Gradsko Jezero (Town Lake) in Bela Crkva, Zavojsko Jezero (Zavojsko Lake) and Ada Ciganlija. The Adhesive Technologies business unit continued to assist the Novak Djokovic Foundation in building and adapting kindergartens throughout Serbia, and the Beauty Care business unit also got involved in resolving the problem of waste in our rivers and lakes and in cooperation with Delhaize Serbia, cleaned Zaovinsko Lake on the Tara Mountain. What are Henkel's plans for the Serbian market in 2021? — Last year, despite all the challenges, we managed to build and put into operation a new factory in Kruševac, which is a valuable investment thanks to which we expect that our company's contribution to the GDP of Serbia in 2021 will amount to 0.35 percent. Given our expert team, efficiency in implementing plans and the ability to implement state-of-the-art technologies under the auspices of Industry 4.0, our Kruševac production plant has been recognized as one of the best in the entire system and we expect Henkel Group to invest further in developing produciton locations in Serbia. 

CORPORATE

NEW GENERATION ACCOUNTING

CLICK ON ICON

Currently, the Unija Group has about 300 employees and our goal is to become the largest accounting service provider in the region

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IVANA JANKOVIĆ

Director of the Unija accounting firm

“W

e have learned how to be there for our clients, to meet all their requirements much faster and to inform them of any changes that occur. The pandemic-induced crisis has brought greater flexibility and adaptability but also greater responsibility,” says Ivana Janković, director of the Unija accounting firm. In which countries do you operate, and what are the differences between countries in relation to the region? — We operate in 14 countries, and our main focus is on the countries in which we operate directly, such as Slovenia, Macedonia, Bosnia and Herzegovina, Montenegro, Croatia and Serbia. The similarity between all countries was aptly demonstrated during the pandemic, and that is that all of them devised state aid packages for businesses and individuals. The research we conducted in Slovenia showed that the process of founding a company is equally complicated and requires a lot of documentation in all countries. But in matters of a legal nature, countries differ, although the laws we use are very similar, which is a mitigating tendency. Montenegro, for example, has proven to be a leading country in terms of optimizing taxes and other costs and is also the most cost-effective for starting a business at the moment. How do you assess the new measures devised by the Government of Serbia?

— Most of our clients applied for financial assistance from the first package of measures and the procedure was quite simple. Of course, this required additional time and training of our employees so that they could answer all the related questions as soon as possible. Overall, I would say that state aid is a positive thing. I expect new measures to give the same or similar results. In February, we conducted a mini-survey on whether our clients would apply for assistance from the next aid package with the same zeal as they did for the first package. We think that fewer clients will use the benefits from the second aid package. There are two reasons for that - the fear that the number of employees will decrease and the second, the bigger reason, is the impossibility of paying out the dividend by the end of 2021. Unija regularly checks relevant regulation, our clients are properly informed, and our employees attend training sessions so that we are ready to respond to all client requests.

years have now proven to be very successful. Since we transferred all the work from the office to work to home in just one day, we managed to continue working without any interruptions and did not have to change we do our work thanks to our Unija smart accounting and paperless system.

RESULTS

What results did you achieve in 2020 and what are your goals and plans for this year? — In 2020, we managed to expand our business beyond our core activities. In Croatia and Serbia, we merged with one of the largest accounting firms - Data Link. In Macedonia, we merged with Marand, one of the leading accounting companies that have been operating for over 15 years and in Slovenia, we merged an IT company following which we got 15 new IT experts. Now, we can demonstrate to our clients what we mean when we say next-generation accounting. The plans for 2020 were very ambitious and we did manage to achieve them, while our plans for 2021 are even more ambitious. In addition to IT solutions, we plan to find an internal solution for the HR department, as well as for marketing services. As for our financial goals, in 2020, we managed to achieve most of the budgeted plans in almost all countries. I hope that 2021 will bring better results to everyone and restore faith in the business itself. 

We have managed to save jobs, keep satisfied customers and during the pandemic, help clients with our free professional advice What were the biggest challenges in the previous year for you and your clients? — Remote work was the biggest challenge, which entailed longer working hours, productivity issues, a new online format of holding meetings and balancing work and private life. These experiences have also changed our business because now we are all used to the fact that it is easier to schedule an online meeting with a client than to have them come to our office. The good thing was that all the IT solutions we had been working on in previous

What services did clients need the most during the pandemic? — We all tried to be at the service of our clients, but our payroll department proved to be the biggest help. At the group level, we have decided not to charge for certain services and advice. We held two free webinars on the topic of state benefits, we held a presentation for both our clients and companies that were unable to pay for our services, and we made all the information available in one place. Circumstances have resulted in our employees gaining much more experience, learning to work remotely and become much more flexible, thus adapting more quickly to the changes that are coming.

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COOPERATION

GERMANY IS ONE OF THE MOST IMPORTANT ECONOMIC PARTNERS OF SERBIA

Since 2010, Germany's total investments in the Republic of Serbia amount to 1.77 billion euro

Focus

GERMANY 2021

ermany is one of the most important economic partners of Serbia and one of the largest investors in the country, which is evident from the large number of new jobs these investments created for Serbian workers. Germany ranked 5th among the countries that were the biggest investors in Serbia in 2019. Based on the data collated by the Ministry of Finance of the Republic of Serbia, 11,270 business entities in Serbia do business with the Federal Republic of Germany. Out of that, 1,085 export to Germany, 8,612 only import from Germany and about 1,573 both export and import. Currently, 775 companies are registered in Serbia which majority owners are German citizens. The largest number of them, as many as 154, are registered in the manufacturing industry, followed by wholesale and retail trade and motor vehicles repair (150 of them), while 118 German companies in Serbia are engaged in expert, scientific, innovative and technical activities. 78 German companies are engaged in ICT and close to 50 in the construction sector.

In 2020, the total external trade in goods between the Republic of Serbia and the Federal Republic of Germany amounted to 5.3 billion euros. Out of that, Serbia's export to Germany amounted to 2.2 billion, while the import amounted to 3.1 billion euros. The import to export ratio in the observed period was 70.4 percent. In terms of trading in services, Germany is the second largest partner of Serbia in that segment. In the first ten months of 2020, the total value of the services traded between the two countries amounted to 831 million euros, of which Serbia's revenues amounted to 545 million euros, and expenditures to 286 million euros. Data from 2019 show that the total ex-

11,270 BUSINESS ENTITIES IN SERBIA DO BUSINESS WITH THE FEDERAL REPUBLIC OF GERMANY

ternal trade between Serbia and Germany amounted to 5.29 billion euros. Exports increased by 7.9% and totalled 2.21 billion euros, while imports totalled 3.08 billion euros and dropped by 0.8% compared to 2018. The total trade in services in 2019 amounted to 1.26 billion euros, of which the revenues of the Republic of Serbia amounted to 837 million euros, and expenditures to 423 million euros. According to the methodology used by the National Bank of Serbia, the total net investments of residents of the Federal Republic of Germany in the Republic of Serbia, in the period from 2010 to the first three quarters of 2020, totalled 1.77 billion euros. Last year, Serbia mostly exported the following products to Germany - ignition cable sets and other sets for vehicles, machine parts, alternating current generators with power over 750kVA, frozen raspberries, direct current motors with power up to 37.5W, medication, washing and cleaning detergents, rail vehicles parts, motor vehicle parts and accessories and electric heating resistors.

39 GERMANY 2021

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Serbia mostly imported these products from Germany last year – CT-unclassified goods in storage, CT-unclassified goods in free zones, medication for retail sale, refined copper wire, used diesel cars, plates, aluminum alloy sheets for beverage cans, machines and devices with special functions, DC motors up to 37.5W, products for boosting the immune system prepared in metered doses for retail sale and plastic products.

THE POTENTIAL OF THE SERBIAN ECONOMY Serbian products that have the biggest potential for export to Germany are nickel, bridge cranes on fixed poles, portable houses, veneer sheets, fiberboard, slippers, bathtubs, chanterelles, raspberries and cranberries. Furniture and furniture parts also have

great potential for export to Germany. In 2019, Germany imported 1.87 billion euros worth of seats and chairs (except those under the customs tariff heading 9402) and 199 million euros worth of furniture parts. In terms of plastic products, the most interesting products for export from this

SERBIAN BRANDY HAS A GREAT EXPORT POTENTIAL BECAUSE IN 2019 ALONE, GERMANY IMPORTED 283 MILLION EUROS WORTH OF THIS PRODUCT

group are floor coverings and wallpaper made of plastic and dishes and other household plastic products. In 2019, Germany imported 600.1 million and 394.6 million euros respectively of these products. In regard to edible fruits and nuts, fresh and dried fruits and mixtures of nuts or dried fruits have recorded an increase in terms of export to Germany. Maize, sunflower oil and other vegetable fats have been identified as promising in regard to exporting to Germany. There is also a great potential for the export of canned vegetables, frozen vegetables and canned mushrooms. The same can be said for industrial plants, flour and seed, as well as non-electric household appliances and various types of brandy. In 2019, Germany imported 283 million euros worth of Serbian brandy. 

FURNITURE IMPORT In 2019, Germany imported 1.87 billion euros worth of seats and chairs and 199 million euros worth of furniture parts

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GERMANY 2021

CORPORATE

WE SUPPORT COMPANIES IN THE MOST CHALLENGING TIMES We provide our clients with a wide range of services, from accounting services, payroll, tax and business consulting, to auditing and sustainable development strategies

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FILIP BORŠIK

CEO of Interbilanz Consulting & Audit

”T

he pandemic is ongoing and the crisis it has induced is affecting every single country. As a result, this year, most businesses will be focusing on keeping afloat. We are here to help them with that,” says Filip Boršik, CEO of Interbilanz Consulting & Audit. To what extent has the corona slowed the economy in countries which you are doing business? — COVID-19's effect on the economy, and thus on the economies of CEE countries, is drastic. Unpredictability of the pandemic resulted in frequent changes in economic circumstances, therefore budget revisions have become a common thing at both state and company levels. Unpredictability and uncertainty are the biggest challenges, and we can almost label them as an "economic virus" that affects all businesses and individuals and citizens. However, not all industries have been affected equally of the crisis, and this also depends on the distinctiveness of individual industries. The business entities that are successful in anticipating and amortization of these unpredictable effects will emerge

from the crisis with milder consequences, but more importantly, further empowered for future business challenges. Unfortunately, the others will have to undergo drastic reorganizations, restructurings, and some will even face liquidations.

VALUE

Dedication to each individual client is our greatest value, and it’s also a reference for future partnerships In which areas do you support your clients, and what are your biggest challenges? — We provide our clients with a wide range of services, from accounting services, payroll, tax and business consulting, to auditing and sustainable development strategies. We strive to provide tailor-made services to our clients, which take into consideration particularities of their business, so we could analyse the changes in the legislation together and see how this could affect their current and future business operations. IB Interbilanz employees are highly qualified experts and are capable of overcoming every business and global challenge, such

as the ongoing pandemic. IB Interbilanz insists on the continuos employee training and professional development in which we invest, so we could provide quality services and answer to every request and challenge our clients are faced with. What will be the biggest challenges for your clients in this year? — The companies that manage to stabilize and rationalize their operations, i.e. those that find a way to generate alternative sources of income, stand a better chance to emerge from the current crisis operationally and financially stronger. To succeed in this, they must change their way of thinking; old, rigid systems will not survive. More capable managers are entering the scene capable of doing this and that is what will make the biggest difference. Are you satisfied your company's results in 2020 and what are your plans for this year? — IB Interbilanz had a very difficult year, but it was a good one. We are fully committed to helping clients in these difficult times through tax and financial consulting, to get through this turbulent period. Since we have clients from the sectors and industries most affected by this crisis, it has not been easy. In addition to providing our standard services, we have been focusing on anticipating the shocks brought on by the pandemic. IB Interbilanz has also given its best in taking care of its employees and their families. I am proud how well we are dealing with this period that is turbulent for entire humanity. 

41 GERMANY 2021

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ECONOMY

FRANKFURT. THE FINANCIAL CENTRE OF THE CONTINENT

As an international meeting place for executives from the financial industry, commerce and politics, Frankfurt offers excellent facilities for high end congress and conference management and can certainly be considered the international benchmark for the sector ll the big names of the German and international banking sector aare represented in Frankfurt. Hundreds of commercial banks, the European Central Bank, the German stock exchange (Deutsche Börse AG), the German central bank (Bundesbank) and branches of foreign central banks underline the city’s status as the most important financial centre on the

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GERMANY 2021

European mainland and one of the most important in the world. As the home of the European Central Bank (ECB), Frankfurt is the financial capital of the Eurozone. The bank makes monetary policy decisions for an economic area that is home to around 330 million people and anchors the euro into the global financial system. Many central and national banks from all over

the world base their German or European representatives in the city and are joined by other organisations such as the European Systemic Risk Board (ESRB), the Bundesbank, the German Federal Financial Supervisory Authority (BaFin), the Federal Agency for Financial Market Stabilisation (Soffin) and the European Insurance and Occupational Pensions Authority (EIOPA).

MONEY RULES THE WORLD. ALSO FROM FRANKFURT Frankfurt is the corporate headquarters of most of the major German financial institutions, including Deutsche Bank, Commerzbank, DZ-Bank and the Hesse-Thuringia State Bank (Helaba) as well as the KfW and DEKA banking groups. Naturally, the world’s largest banks are also represented in Frankfurt - from Goldman Sachs, JP Morgan, Citibank, Banco Santander, Crédit Suisse, BNP Paribas, ING and Banco do Brasil to Sberbank, the largest bank in Russia. These are supplemented by global commercial law firms and auditing companies, such as PWC, KPMG or Ernst & Young. Banking associations, for example the Association of Foreign Banks Representatives, the German Funds Association (BVI), the German Equities Institute (DAI), the German Association for Financial Analysis and Asset Management (DVFA), and the Association of Foreign Banks in Germany (VAB) are based in the financial metropolis on the River Main. Finally, Frankfurt is also home to the German stock exchange, Deutsche Börse AG, which ranks

as one of the largest in the world alongside New York, London and Tokyo.

PERFECT CONDITIONS: THE INFRASTRUCTURE OF SUCCESS The city is also a leader in the sectors of financial research and education. Renowned universities such as the Goethe University and the Frankfurt School of Finance & Management but also institutions such as the House of Finance, the Institute for Law and Finance and the E-Finance-Lab offer a wide range of degree courses and corresponding scope for scientific work.

THE CITY'S TIES TO FINANCE DATE ALL THE WAY BACK TO THE MIDDLE AGES, WHEN FRANKFURT'S CENTRAL LOCATION MADE IT A MERCANTILE HOT SPOT

It is against this backdrop that Frankfurt offers an excellent selection of event venues and buildings, including the Congress Center, the Frankfurt Festhalle and 10 varied trade fair halls on the Messe Frankfurt trade fair site, all of which provide perfect settings for congresses, symposia and other sector events; Euro Finance Week, the Frankfurt Finance Summit and Frankfurt International Banking Evening are just three of the most important. In addition, Frankfurt will host the 68th CFA (Chartered Financial Analyst) Institute Annual Conference in 2015. The city also offers an attractive supporting programme for every event with opportunities for visits and guided tours around buildings such as the German stock exchange, Deutsche Bank or the Money Museum of the Bundesbank. As an international meeting place for executives from the financial industry, commerce and politics, Frankfurt offers excellent facilities for high end congress and conference management and can certainly be considered the international benchmark for the sector. 

43 GERMANY 2021

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INVESTMENTS

TWO DECADES OF GERMAN INVESTMENTS IN SERBIA CLICK ON ICON

When we talk about the period from 2000 onwards, especially at the beginning of the 2000s, investments of Germany companies primarily were significant acquisitions

ome of these were the acquisitions of companies from the chemical and pharmaceutical industry, and the most familiar ones were Stada, Henkel, Messer, Fresenius. In some places, there was the beginning of production activity, but in smaller numbers.

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GERMANY 2021

When we look at the trend of German companies’ investments in Serbia, it’s interesting that there was a small number of these before 2010, especially when it comes to manufacturing companies coming from Germany, but from that moment, and especially as of 2012, the number of companies grew exponentially. Today,

we are talking about several hundreds of German companies that employ around 70,000 people in Serbia. If we compare just the beginning of the last two decades and today’s German investments, it’s obvious that at the start of the 2000s most investments had lower added value, but they had a large vol-

ume of employment – examples for this are the investments made by Gramer, Leoni, Draxlmaier, Falke and others. Today, investments in Serbia are being made by names like ZF, Contintenal, BROSE, BOSCH, MTU, Vorwerk & Sohn, which bring extremely high investments, advanced technologies and products. As for industries, then as well as now, the most represented is the automotive industry, followed by the electronics industry, the machinery and equipment manufacturing sector, chemical and pharmaceutical industry and many others. Today, in every sense, not only in terms

of German investments, but this mostly refers to them as well, projects in the automotive industry and industries that are closely related to the automotive industry, such as the electronics and machinery industry, rubber and plastic industry and the like, are predominant. What especially reflects how satisfied the representatives of German companies are with the conditions and business operations in Serbia, and what can predict the trends in the future in a way, is the data from the survey conducted by the German-Serbian Chamber of Commerce (AHK) which states that 88% of investors

from Germany are willing to choose Serbia again as their investment location, based on their previous experience of investing and conducting operations in our country.

INVESTMENTS AND BIGGEST INVESTMENT PROJECTS FROM 2000 ONWARDS Starting from 2010 and ending with the second quarter of 2020, inflows from investments of German residents in the Republic of Serbia amounted to about EUR 1.7 billion, which ranked Germany 5th on the list of countries with the largest investments in Serbia in the given period.

NET FINANCIAL LIABILITIES, IN CASH, BASED ON INVESTMENTS OF THE REPUBLIC OF GERMANY IN SERBIA (in million EUR) 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

I-VI 2020

Total

103.5

198.7

93.1

83.5

36.5

72.4

179.6

185.4

263.3

335.8

123.6

1,675.4

BIGGEST INVESTMENTS OF GERMAN COMPANIES IN SERBIA – RAS INVESTMENT BASE Note: RAS records are kept according to the country of origin of the company making investments, based on RAS’ survey on direct foreign investments (DFI) by companies and reports made by companies themselves on the value of investment. Due to the lack of legislation on company reporting on the amount of investment, the following data can only be taken as indicative values. In this regard, and for the above reasons, RAS records do not include investments of all companies, or all investments by individual companies.

OVERVIEW OF BIGGEST INVESTMENTS OF GERMAN COMPANIES IN SERBIA (Planned) (Planned) Amount of Number of work investments (mln €) places as at 31/10/2020

Company name

Sector

Municipality

Stada

Pharmaceutical industry

Several municipalities

698.0

2,913

Lidl

Retail

Several municipalities

205.0

2,413

Henkel Merima

Chemical industry

Several municipalities

250.0

529

Automotive industry

Pančevo

195.0

663 (1,281)

Metro Cash&Carry

Retail

Several municipalities

142.0

1,189

Messer Group

Chemical industry

Several municipalities

119.0

339

BOSCH

Automotive industry

Pećinci

91.0

2,234

Siemens AG

Electricity and electronics

Kragujevac, Subotica

60.0

1,716

Leoni AG

Automotive industry

Several municipalities

150.0

10,424

10.

Continental

Automotive industry

Subotica

190.0

1,630

11.

Linde AG

Oil and Gas

Bečej

40.0

12.

Phiwa Walther Group

Real Estate

Several municipalities

40.0

13.

Knauf

Construction industry

Several municipalities

37.0

199

14.

KWS SAAT AG

Food and drink, agriculture

Bečej

30.0

15.

Dr.Oetker

Food and drink, agriculture

Pećincki

30.0

211

16.

Kromberg & Schubert

Automotive industry

Kruševac

25.9

1,306 (2,500)

17.

Retail

Several municipalities

19.0

1,125

18.

Dräxlmaier DAD

Automotive industry

Zrenjanin

16.0

4,420

19.

Fresenius Medical Care

Medical equipment/ Pharmaceutical industry

Vršac

15.4

1,150

GERMANY 2021

Focus

(Planned) (Planned) Amount of Number of work investments (mln €) places as at 31/10/2020

Company name

Sector

Municipality

20.

Bauerhin

Automotive industry

Inđija

14.2

1,681

21.

Falke

Textile industry

Leskovac

13.4

789

22.

Deutsche Post DHL

Transport and logistics

Several municipalities

12.0

169

23.

NORMA Group

Automotive industry

Subotica

20.4

1,397

24.

Xella Group

Construction industry

Lazarevac

11.0

25.

Grammer

Automotive industry

Aleksinac

10.0

1,429 (1,531)

26.

Meggle

Food and drink, agriculture

Kragujevac

10.0

159

27.

Gruner

Electricity and electronics

Vlasotince

10.7

607 (630)

28.

Sano - Moderne Tierernährung GmbH

Food and drink, agriculture

Novi Sad

7.0

29.

EMKA Beschlagteile GmbH & Co

Automotive industry

Mionica

5.0

203

30.

Geze

Construction industry

Zrenjanin

4.3

166

31.

Muehlbauer

Electricity and electronics

Stara Pazova

4.0

140

32.

Eaton Electrical Group

Electricity and electronics

Sremska Mitrovica

3.8

795

33.

Wurth International AG

Metallurgy and metalworking

Belgrade

3.0

251

34.

Mehler Vario System

Textile industry

Zrenjanin

3.0

276

35.

Stihl

Machinery and equipment

Belgrade

2.8

36.

Carl Warrlich GmbH & Energotrade / Flammat

Energy

Bela Crkva

1.5

37.

Sato

Machinery and equipment

Kraljevo

1.0

38.

Cleantek

Pharmaceutical industry

Zrenjanin

1.0

39.

LMB

Electrical industry

Niš

0.8

112

40.

IMP Holding Gmbh / JIE Engineering

Energy

Belgrade

0.5

41.

Poly-Verbund-Premix

Plastics and Rubber

Titel

0.2

42.

Zesium Mobile

ICT

Novi Sad

43.

Photon Optronics

Niš

44.

DB Schenker

Transport and logistics

Belgrade

45.

Atair

Textile industry

Ivanjica

471

46.

Vorwerk

Automotive industry

Čačak

43.0

334 (1,000)

49.

Wieland

Automotive industry

Čačak

50.

IPAN BPM

International business services

Belgrade

1.9

358

51.

Brose

Automotive industry

Pančevo

180.3

110 (1,100)

52.

MTU Maintenance Serbia

Aviation industry

Stara Pazova

100.9

2 (440)

32.

Boysen

Automotive industry

Subotica

55.5

11 (400)

54.

Auto-Kabel

Automotive industry

Mionica

0.7

280

55.

Koenig Metall

Automotive industry

Ivanjica

11.0

64 (246)

56.

A2000 Industirja-Elektronika

Electricity and electronics

Svilajnac

0.7

0 (30)

57.

Hatiba

Metallurgy and metalworking

Knjaževac

1.2

58.

GPK

Rubber and plastics

Zrenjanin

3.0

59.

B+B Sensor Solutions

Electricity and electronics

Subotica

1.0

60.

Vossloch-Schwabe GmbH

Electricity and electronics

Svilajnac

20.0

433

Source: RAS, CROSO · www.ras.gov.rs/en

Focus

GERMANY 2021

CORPORATE

TRADITION OF QUALITY TIM Co. was always big enough to handle them successfully, and small enough to perform them better than anyone els

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Serbian company TIM Co. was established in 1993, as a company engaged in the service of medical equipment. Since year 2000, company begins to represent foreign manufacturers of medical equipment and just to mention some of them with whom we have outstanding cooperation over the past years: HOLOGIC (USA), KAVO (Germany), CODONICS (USA), PLANILUX (Germany), and BARCO (Belgium). From the second half of 2013, Tim Co. established a new department which is responsible for the placement of digital X-ray systems for use in various industrial and security applications. TIM Co. made exclusive contracts for representing the following companies in the field of industrial (NDT) and security applications. Especially, we would like to emphasize very successfully cooperation with the companies which represent the world’s top in the field of security and NDT equipment: • ICM Teledyne (Belgium), leading designer, developer and manufacturer of cut-

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PARTNER

Reliable partner of the leading world-renowned producers of industrial and security applications ting edge portable digital X-ray systems. ICM Teledyne produce flat panel-based radiography and X Ray Generators inspection systems for the Security, NDT and Science and Art sectors. • Nikon Metrolog y Europe NV, a world-leading developer that offers a broad

range of cutting-edge X-ray and CT products designed to support all of industrial inspection needs. They develop specialized systems for use in areas such as aerospace, automotive, electronics, metrology applications and many more. Whether your component is measured in micrometers or meters, there’s an Nikon system that fits. Various tasks were set for TIM Co., and TIM Co. was always big enough to handle them successfully, and small enough to perform them better than anyone else. TIM Co. will continue to serve as a reliable partner of the leading world-renowned producers of industrial and security applications, as well as security and safety equipment, as well as to successfully continue to perform all tasks and goals. 

TIM CO d.o.o. Jovana Rajića 5c, 11000 Belgrade • +381 11 28 36 786 • 28 36 787 Cell: +381 63 356 037 • www.timco.co.rs • srecko@timco.rs

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GERMANY 2021

ECONOMY

GERMAN ELECTRIC-CAR SALES TRIPLE IN 2020

Sales of full-electric vehicles in Germany increased three-fold to 194,163 units in 2020 50

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GERMANY 2021

lectric-vehicle sales in Germany will surpass California’s for the first time this year, with a range of government incentives propelling Europe’s biggest auto market ahead of Tesla Inc.’s home state. Customers in Germany bought 98,370 fully electric cars in the first nine months, roughly a third more than what Cali-

fornia sold, according to a report from Berlin-based Schmidt Automotive Research. State-funded subsidies of as much as 9,000 euros ($10,900) per battery-powered vehicle have boosted Germany’s electric-car fleet to twice the size of Norway’s, which still reigns as the country with the highest per-capita EV penetration.

Germany overtaking California is a boon for local automakers Volkswagen AG, Daimler AG and BMW AG as they seek to catch up with Tesla. Germany last month said it will extend cash bonuses for purchasing EVs until 2025, expand the country’s charging network and make payments for topping up batteries easier.

51 GERMANY 2021

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CORPORATE

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THE 30-YEAR-LONG JOURNEY OF LOOKING AHEAD JPM Jankovic Popovic & Mitic is one of the oldest members of the German-Serbian Chamber of Commerce and, at the same time, the oldest full-service commercial law firm in Serbia

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n an interview for the jubilee issue of InFocus Germany, we spoke with JPM Jankovic Popovic & Mitic Law Firm, namely with the firm’s three founders Nikola Janković, Nenad Popović, Miloš Mitić and Dr Jelena Gazivoda, who became a Senior Partner and one of the firm’s top executives in the 2000s. Why is this year so special for you? Nenad Popović: This year, we are proud to celebrate the 30th anniversary of our partnership and legal practice. If we were to draw a timeline of our history, it would start back in 1991. Since good ideas don’t just 'come to you’, the years before our partnership defined the course of our future business. How did you decide to join forces and form this partnership?

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GERMANY 2021

SUCCESSFUL

JMP developed and defined so much of what we today know as making law a successful business Nikola Janković: We were young lawyers working in the challenging economy in the country that was gradually falling apart. We felt the change and the whiff of market economy steadily taking over, and we wanted to participate in the formation of the new economy and legal market. Rules were quite different to what we were prepared for, during our studies. Most of all, we wanted to create a modern multi-prac-

tice law firm resembling Western law firms we saw in legal magazines and movies. We knew that this was not easy, but being young and having high aspirations, we embarked on what today is a 30-year-long journey of continuously looking ahead. So, there was a shared goal? Miloš Mitić: JMP developed and defined so much of what we today know about making law a successful business. Most importantly, with it came the unmistakable evolution of our three different characters sharing one vision. We wanted to help businesses achieve their goals by bringing the added value, rather than be only a cost to our clients. You started during the challenging decade of the 1990s and made it all the way? Nenad Popović: We now see that the whole

endeavour was a huge effort, especially in the first ten, more than challenging years throwing hell and high water at us. Doing business with international sanctions, hyperinflation, war and even bombing of our country was not without considerable personal risk and usually extraordinary out-ofthe-box solutions where required. Guided by the true spirit of partnership, we have successfully navigated rough waters of the first 10 years and have entered a much more stable period while becoming what we were hoping to be - a modern Serbian law firm delivering the highest quality of service to the legal market in Serbia and the SEE region and recognized as such by our clients and peers. Is it hard to always align three opinions and make the right decisions? Nikola Janković: We have always communicated from three different angles, and it gave us a unique and broad perspective of each client’s needs, not to mention a perfect understanding of specific business approaches used in each case. It is our adaptability, knowledge and competence that made it possible to make a successful combination of discipline and an exceptional set of legal business skills, which we have developed over many years so that we can build teams and specialize in diverse practice areas.

clients entering Yugoslav, and later on, Serbian and CEE markets. Our service was recognized by the quality equal to big international law firms. Were your main clients some of these companies? Miloš Mitić: We opened the market and led the biggest international companies through the economy ‘earthquakes’ and the privatization in Serbia and the region. Our first big successful transaction was acquiring the local technical gas producer Tehnogas on behalf of the Messer Griesheim Group from Germany. The other big transactions soon followed, like the establishment of the first two foreign banks in Serbia after the Second World War, the first hostile takeover, the first EUR 1 billion transaction, and many more.

What does that mean in practice? Miloš Mitić: Choosing the right people with expert knowledge in every major industry got us extremely well organized in both practice groups and multi-disciplinary teams with specialist lawyers. The way to make all these highly skilled people speak the same language was to share one communication model - 'care' of people and clients. This model is a common language across all practice areas, of which we have 20 in total. It facilitates common understanding, open discussions, knowledge-sharing and deep market intelligence.

We keep our attitude essential and uncomplicated, perpetuate tradition of trust and reliability, still guided by the true spirit of partnership

We see a trend of smaller and boutique law firms developing. Still, you manage to maintain a different format. Nikola Janković: The working process is as old as we can remember and developing practices is what makes JPM unique. We have managed to create optimum synergy through an inventive approach, to the level that has not been feasible on the largescale legal practice in Serbia and the region before. We built strong partnerships, offered tailored legal advice to international

You mentioned both Serbia and CEE region as your markets. Nenad Popović: Parallel and equally successful was our growth in the wider international landscape. We have extended our geographical reach through memberships in Lex Mundi (the world’s premier network of independent law firms) and our own regional TLA network, which positioned us as a one-stop-shop for the clients requiring multi-jurisdictional legal service.

TRUE SPIRIT

What did the 2000s bring you, the era of fast technology and developing new industries? Nenad Popović: Our team grew and our lawyers, although being strong individuals, are also great team players, fast, available, specialized in terms of practice area and industry. We have been bold in reshaping internally. With a growing partnership, we become even more JPM than before. One of our colleagues, Dr Jelena Gazivoda, a lawyer who “grew” with the office and brought another managing perspective, expertise and a new angle of looking at the future of our business, came on board our management team. Furthermore, with the implementation of the latest legal technology solutions, we can streamline work processes and collaborate more closely with clients, who come from every industrial and corporate sector: energy, banking, transport, manufacturing and telecommunications. Now, we are expanding our services to growing industries, such as renewable energy, IT and life sciences, using innovative solutions and a pro-active approach. How important are awards to you? We know that JPM has been one of the highest-ranked offices for years. Jelena Gazivoda: Recognition of our clients and peers which continuously makes us one of the highest ranking law firms among the leading law firms by independent guides such as Chambers & Partners, Legal 500, and IFLR1000, are our greatest inspiration. They pave the way for new solutions in the most complex legal issues, and we can see that expertise and experience lead to the biggest success. Looking at the future, what do you see? Jelena Gazivoda: Growing to the 35+ lawyers in our team, we have embraced changes and remained devoted to the pioneering approach. Our regional presence and international success will still be supported by investing in further development and new people. Dedication offers exceptional results and looking at the young members of our team today, we know that our business will continue to grow at a charging pace, flexible and agile, especially in the challenging times we always look forward to. We keep our attitude essential and uncomplicated and perpetuate the tradition of trust and reliability, which have always been exercised by individuals for individuals, still guided by the true spirit of partnership. 

53 GERMANY 2021

Focus

CORPORATE

A GOLDEN EXAMPLE OF RESPONSIBLE BUSINESS Diverse rewards for dm in the pandemic era

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he largest drugstore chain in Europe - dm drogerie markt, a retailer of food, drinks, household, and personal care items, was founded in 1973 in Germany. This Austrian-German company has been operating in the Serbian market for over 17 years and has always been focused on supporting the community, which has been especially evident in the past year. In the era of the Coronavirus pandemic, they have become an example of support when it comes to employees, the environment, as well as the whole community. Thanks to such an approach, the company won numerous awards right in the year of the pandemic. Based on a comprehensive assessment of activities related to relations with employees and customers, the Chamber of Human Resources Managers awarded dm the gold award "Best in Serbia 2020", but also the recognition for "Best Response to the Coronavirus Pandemic". The company has received these awards owing to its through approach to employees in this period, where dm took a number of measures that included the payment of Covid bonuses in the amount of RSD 18,000 with a regular September salary, necessary health care, systematic examination and free Covid testing and numerous training workshops. Dm was recognised as a leader in several corporate segments. According to the research of youth preferences, conducted by the Belgrade Youth Fair in cooperation with the Employer Branding Agency, the dm company took first place in the category of the Most Desirable Employer in the field of retail. The survey was conducted in Decem-

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GERMANY 2021

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ber 2020 and included 2,870 respondents from all regions of Serbia. However, this is not the first time that dm has been awarded similar recognition since it was in the top 15 companies on the list of most desirable employers in Serbia in July last year, taking first place among retail chains, as part of the "TalentX" survey conducted by a specialized portal Jobs Infostud.

LEADER

dm was recognised as a leader in several corporate segments Guided by a mission to always be at the top of the ladder and to follow all the trends that are in front of them, dm continuously acts in the spirit of the times and applies innovations in every segment of business. Thanks to that, the company also received the recognition "Top 50 - the best online things" in the Instagram category, which is awarded by the PC Press editorial office. Known for its constant aspiration to be socially responsible, dm also carried out

various humanitarian activities in the previous year. For the second year in a row, they gave Black Friday a new meaning by directing five percent of the traffic on that day to humanitarian purposes. A total of three million dinars were collected for a donation to the soup kitchens of the Serbian Red Cross. In addition, the company donated two medical respirators worth 36,000 euros to the Institute of Public Health "Milan Jovanovic Batut" in order to contribute to the fight against the Coronavirus, as well as to facilitate the recovery of chronic patients who are treated in health institutions across Serbia. Having participated in a great number of humanitarian activities in the previous year, dm continues its charitable work based on a corporate philosophy that focuses on the human being. The company says that they are looking forward to providing help to those who need it the most whenever they can, so as the next activity in that regard, dm has a donation to the Safe House in Belgrade on Women's Day. With the aim of contributing to the empowerment and support of women, the company directed goods and products to this organization in the amount of RSD 500,000. 

CORPORATE

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ADAPTABILITY AND FLEXIBLE STRATEGIES ARE CRUACIAL FOR THE FUTURE

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After several years of growth, in 2020 HoReCa sector saw a significant decline due to pandemic imposed measures

DUŠAN ČOLOVIĆ

Sales and Delivery Director in METRO Cash & Carry Serbia

fter one year of the COVID-19 pandemic it is obvious that economies are changed to an extent where going fully back to the ways before is not very likely. Social distancing requirements – remote work and comprehensive digitalization became a new norm. Our new daily habits, altered out of necessity, have gradually started to affect all aspects of economy, including trade and wholesale – the main topic of our recent

conversation with Dušan Čolović, Sales and Delivery Director in METRO Cash & Carry Serbia. Mr Čolović believes that new market trends and habits have developed when it comes to retail, wholesale and hospitality. After several years of growth, in 2020 HoReCa sector saw a significant decline due to pandemic imposed measures. Some aspects of it though, like fast-food businesses, are showing signs of vitality. Food delivery from restaurants shows significant growth. When it comes to Trader sector, Mr Čolović points out that pandemic didn’t make such a significant impact, but shift is noticeable from Traditional Trade channels (mainly small independent trader shops) to Mod-

ern Trade, as well an increase in the influence of local retail chains. There is also a visible growth in online shopping, as well in larger store formats – customers recognizing better choice of assortment and price, and safer, more comfortable shopping during the pandemic. In the end Mr. Čolović says that METRO is a good example of how wholesalers realistically reflect changing dynamics in Trade and HoReCa sectors, due to its core business with both, but also prove high adaptability thanks to strong services and assortments aimed at end customers. “Adaptability and flexible business strategies will be some of the lessons learned in this pandemic”, concludes Mr. Čolović. 

55 GERMANY 2021

Focus

by Žikica Milošević

FOCUS

TRADITION OF FAMILY-RUN COMPANIES Many a little makes a mickle

he Germans are known as cautious, conservative, hardworking, family people. When all these characteristics are inserted into an equation where the economy is a result, we get strong family companies - the so-called Mittelstand.

WHAT MAKES A FAMILY COMPANY? Mittelstand is difficult to understand if you try to do so literally in Germany and the German tradition, which extends to the traditionally German-speaking area (Switzerland and Austria). In essence, they are small and medium-sized enterprises,

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GERMANY 2021

mainly family-owned. Generally, they have up to 500 employees and revenues of up to 50 million euros. Almost 99% of all German companies come under this category. The Germans did not wait for the state

FAMILY COMPANIES IN GERMANY ARE INNOVATIVE, CONSERVATIVE, HUMAN AND PATIENT

to do the job them, especially after the tragic Second World War. They took matters into their hands and created the West German economic miracle. The Germans rolled up their sleeves, at the family level, and created companies that the state "watered" to grow. The main characteristics of family companies are the following - family ownership or family corporate culture, generations of the same family working for the company, long-term focus, independence from the state and other firms, business dexterity, emotional attachment to the firm, workforce investments, flexibility, lean-model hierarchy, innovation

stemming from independence, customer focus, social responsibility and strong regional ties. One definition says: "These companies are mostly run by classic owner-entrepreneur families (Unternehmerfamilien) who want to sustain their business by introducing a basic ideology of longevity, conservative long-term financing and operating practices." These companies are the "backbone of the German economy," as the Germans proudly point out.

EVEN SMALLER FAMILY COMPANIES It is interesting to see how this system develops since it is quite liberal and constantly changing. The structure of family companies is changing into increasingly smaller family-run companies, even companies that have only members of the closest family or a single employee working for them. These are mostly startups that are springing up in innovative Germany, which is becoming the embodiment of the European dream. The most interesting thing is that often these startups remain at that level, i.e. do not develop into big companies. The importance of family business-

es is also evident from the fact that more than 160,000 small and medium-sized enterprises with about 4.3 million employees have their association called BVMW (the Federal Association of SMEs).

MITTLESTAND COMPANIES ARE A SYMBOL OF EVERYTHING THAT THE WORLD SHOULD AND COULD HAVE, TO BE BETTER AND WEALTHIER HOW DO FAMILY COMPANIES COMPETE? Mittelstand companies are “highly focused, achieving unprecedented efficiency by designing a business model with razor-sharp attention and learning to do one thing really well”. Then, to compensate for this, they diversify internationally and enjoy large economies of scale,” say Giro-

tra and Netessine in their analysis. Mittelstand companies benefit from the old German apprenticeship system, which provides highly skilled workers. Also, there is a "spirit of cooperation that mainly exists between employers and employees“. For Germans, stability is more important than high wages. These companies are competing hard in exports because they can achieve top-notch quality in certain niches. They are typically privately owned and are often based in small rural communities, in which they usually stay. No centralization! Most importantly, family businesses in Germany have patience. They are in no hurry. Real revenue cannot be generated in a hurry. Therefore, Mittelstand's emphasis is on long-term profitability which stands in opposition to public corporations in many countries (including German public corporations) that face quarterly or annual pressure to meet expectations. The same goes for large corporations. Family companies in Germany are innovative, conservative, human and patient. They are a symbol of everything that the world should and could have, to be better and wealthier. 

57 GERMANY 2021

Focus

ECONOMY

GERMANY’S ECONOMIC RESPONSE TO THE CORONAVIRUS CRISIS Making a Protective Shield

ebruary 2020 was an idyllic month if we do not count Lombardy and China. The economy seemed to be thriving and the virus was endemic and limited to just a few areas in the world. It looked like it would pass, like the bird or swine flu, just like all viruses in the 21st century did. And then in March, everything changed.

CAUSES OF THE CRISIS Suddenly, the whole of Europe went

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GERMANY 2021

into lockdown, like never before. That is, like never before in the past 100 years, when, quite aptly, a Spanish flu pandemic occurred. But in Germany, problems have been showing up on the horizon even before. Namely, there was already a "German slowdown" that appeared in 2019 and early 2020. After several quarters with reduced production in the manufacturing sector, the COVID-19 crisis hit the German economy with unprecedented strength. The simultaneity of multiple supply and demand shocks are likely

to be unique compared to previous economic crises.

THE FALL OF ALL FALLS Federal-level lockdown in Germany, coupled with school and service sector closure, contact restrictions and event cancellations, was introduced in March and phased out in May 2020. The number of COVID-19 active cases, which rose to a maximum of 72,000 in early April, has since has fallen and remained well below the 10,000 case threshold since the end of

May. Even today, it is not very stable. After another peak, new restrictions were put in place. Economic activities began to have a prolonged character, and even the proverbially stingy Germans, who always have money saved, had to think about the government's response and measures to combat the consequences of the corona crisis, regardless of the EU package that was voted at the end of the year.

THE RESPONSE The German government has quickly and decisively set up a protective shield for citizens, jobs and the economy in order to be prepared for all the social and economic effects of the coronavirus crisis. The German government has been putting together, even as we speak, an aid package of historical, unprecedented proportions. The measures contained in this protective shield are aimed at protecting human health and jobs, supporting companies and maintaining social cohesion. To finance this package, the Federation will take out loans totalling about 156 billion euro. To that end, the federal cabinet approved a budget review. Given the fiscal conservatism of the Germans and the re-

luctance to spend, this is an epochal move. The federation has set up a 50-billion-euro-direct assistance programme (Soforthilfe) to support small businesses, freelancers and the self-employed. These funds will be used to provide oneoff grants to cover operating costs over three months. Grants do not have to be repaid and entail as little bureaucracy as possible. This federal programme complements other programmes already adopted by the German federal states (Bundesländer). For this reason, the authorities will be responsible for handling all applications to ensure uniform procedures.

ALL OF THIS WAS NECESSARY FOR GERMANY TO REMAIN THE EMBODIMENT OF THE "EUROPEAN DREAM", AS WELL AS EXPECTED FROM "THE SOBER NATION"

The direct assistance program envisages the following grants: self-employed persons and companies with up to five employees will receive up to 9,000 euro, and self-employed persons and companies with up to 10 employees will receive up to 15,000 euros. The self-employed are given easier access to basic income (Grundsicherung) to ensure that they can support themselves and pay for housing. The German government has established the Economic Stabilization Fund, which is specifically aimed at large companies and is equipped to provide large assistance. The Fund complements liquidity assistance programmes already adopted as part of KfW's special programmes. The Fund includes 100 billion euro for capital measures, 400 billion euro for guarantees, and up to 100 billion euro for refinancing existing KfW special programmes, according to data from the Federal Ministry of Finance. So when you save, you save. When you spend, you spend meaningfully. Everything is analyzed and a good answer is devised. All of this was necessary for Germany to remain the embodiment of the "European dream", as well as expected from "the clear-headed nation". 

59 GERMANY 2021

Focus

TRADITION

LEDERHOSE AND DIRNDL

ederhose and Dirndl have become synonymous with Oktoberfest celebrations, but their origins are quite humble. Lederhosen were once the traditional outfit for fieldworkers (think denim overalls), and the Dirndl was the typical uniform for housemaids. Almost everyone attending Oktoberfest in Munich dresses in traditional Bavarian outfits (trachten), so consider taking part yourself. Dressing in authentic clothing will help you blend

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GERMANY 2021

in better, feel less like a tourist, and makes the whole Oktoberfest experience a lot more fun. Although over 85% of Oktoberfest visitors are German-speaking, as an American or forigener you can still feel the part by dressing up like a local. This clothing guide will ensure you know how to dress for Oktoberfest in Munich. Even outside of the Oktoberfest celebrations, we have been surprised to see how many people tend to dress up to go out around Munich no matter what time of year it is. As they say, When In Rome…

61 GERMANY 2021

Focus

INTERVIEW

50 YEARS OF THE GOETHE INSTITUTE IN SERBIA FRANK BAUMANN

Director of the Goethe Institute

With cultural exchange comes invaluable added value

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he Goethe Institute is a reliable and useful organization for learning the German language, getting education and for Serbia and Germany engaging in cultural affairs. We talked with the Director of the Goethe Institute, Frank Baumann, about the work that the Institute has been doing for the past fifty years since its establishment in Serbia and the cultural cooperation between our two countries.

The Belgrade-based Goethe Institute was formed in 1970. What are the results of half a century of cooperation so far? Fifty years is a long time, but cultural relations between Serbia and Germany are, of course, much older. For instance, the correspondence between Vuk Karadžić and Johann Wolfgang Goethe, dates back from 1823. Since 1970, our Belgrade office had a chance to witness significant changes in both countries - from the multiethnic, socialist Yugoslavia to modern, independent Serbia, from West Germany’s half nation

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GERMANY 2021

to a united country in the heart of Europe – there have been long and winding roads here and there. On the operational level, as a cultural institution, it’s all about the exchange, language and knowledge. It’s about people and societies, people wanting to see this world and their place in it,

IN TERMS OF ANNUAL PRODUCTION OF NEW BOOKS, GERMANY RANKS 6TH AMONG 87 COUNTRIES how they want to live, how we organize our common spaces, in Serbia, Germany, Europe and everywhere. The Goethe Institute has gained good reputation as we are viewed as a reliable, open, useful, easily accessible and financially independent organization for language, education and

cultural affairs between Serbia and Germany. You should also ask this our Serbian partners both from civil society and from the state sector, with whom we have been cooperating for a long time. Last but not least, there are our clients, like numerous students of language and library users. I hope that their replies will not fundamentally differ. You can always do better, of course, or to quote a German phrase, “standing still means taking a step back”. We are looking into the future with hope that cultural relations between our countries will continue to be good in the next 50 years too. During the 2020 pandemic, the Ministry of Foreign Affairs of the Federal Republic of Germany and the Goethe Institute in Serbia decided to launch a fund for short-term international assistance to artistic institutions that contribute to the strengthening of a pluralistic society. Which projects have been implemented and which organizations have received assistance with the support of this fund?

I’m glad you took notice of this initiative. That’s the so-called Covid Relief Fund, a joint initiative to be implemented by the Goethe Institute worldwide. The aim is to help organizations in selected countries to invest, for instance, in streaming technology and similar projects directly related to pandemic-induced challenges. We have received quite a few applications following our public call for submission of application. A jury in Germany finally selected 9 proposals from Serbia that will receive this grant. That was a very good ratio for us if you consider that the average support amounts to just under 20,000 euro. The quality of the Serbian applications was convincing enough for the jury. The good news is that I have reason to believe the Relief Fund will be extended also in 2021, and a new call will be launched hopefully quite soon. In which segments of art has the cooperation been the most intensive so far and what are your plans for 2021? Feature films from Germany have had their audience in Serbia. Every year, we showcase their highlights at our festival called GoetheFEST. Stage productions are also popular. During 53 years of the BITEF festival, German artists performed every single year. Artists, musicians, writers and curators are usually very interested to come to Serbia in a professional capacity. Our guests bring something with them, but at the same time, they are eager to take something home – new contacts, insights, new perspectives, plans for future projects and engagements. In this way, invaluable added value is created through cultural exchange. Joseph Beuys is the legendary artist from Düsseldorf, whose 100th birthday is celebrated this year all over the world. Beuys influenced generations of “activist artists”. Following the invitation from the well-known art historian Biljana Tomić, former director of the legendary gallery in SKC, Joseph Beuys came to Belgrade for the first time in 1974. Beuys was very important to the Yugoslav progressive art scene. The year before, the “group of six”, assembled around Marina Abramović, met Joseph Beuys in the Richard de Marco gallery in Edinburgh, where Zoran Popović filmed a performance by Beuys to incorporate it into his new work. This piece got a lot of attention in Belgrade, and as a result of the subsequent visit, there was a long-term artistic exchange between

Yugoslavia and Düsseldorf. At the heyday of the Düsseldorf Academy, which, beside Beuys, other famous names like Günther Uecker, Jörg Immendorff, Markus Lüpertz, Gerhard Richter, Bernd and Hilla Becher and even Klaus Rinke are associated with, there were many students from the former Yugoslavia. Klaus Rinke was in Belgrade with his master class as early as 1980 and performed at the entrance to the Museum of Contemporary Art ("I'll wait until they let me in"). Today, it gives me great joy to say that Klaus Rinke confirmed that he would come to Belgrade, to prove that Beuys, he and all the rest are still of important relevance, if all goes well and travelling is possible again for an artist in his 80s. One of your activities is to support the learning of the German language. How interested are people in Serbia to learn it?

GERMAN IS THE SECOND MOST IMPORTANT LANGUAGE IN SCIENCE They are very much interested. That’s why we are offering language classes and exams for all levels. Allow me to give you five reasons to learn the German language in Serbia today. First, it’s definitely about the attractive study and work opportunities in Germany and not only for those people who are highly skilled workers. Germany also awards a large number of scholarships for studying in Germany. There are special work holiday visas for young Serbs, and there are special provisions for a work permit for certain professions. There are also agreements on school and student exchange between Germany and Serbia. Second, consider German in the context of business - your communication in German with your German-speaking business partners leads to better business relationships and thus better opportunities for effective communication, and thus to success. Third, German is the second most important language in science. With its contribution to research and development, Germany ranks third in the world and awards research grants also to Serbian scientists. Fourth is the communication. Developments in the media, infor-

mation and communication technology make multilingual communication necessary. In terms of annual production of new books, Germany ranks 6th among 87 countries. A fair knowledge of German therefore opens up wide access to information. Finally, there is cultural understanding, as well as enjoying literature, music, art and philosophy: German is still the language of Goethe, Kafka, Mozart, Bach and Beethoven and some other clever minds. As the director of the Goethe Institute in Belgrade since 2017, what is your opinion about the current cultural scene in Serbia? All I can say is that we have a huge network of wonderful partner institutions all over Serbia, with whom we have been cooperating for years, if not for decades - museums, libraries, cinemas, cultural centres, schools, festivals, civil society representatives, state institutions, the media, from the smallest galleries to international brands. Most important thing is that the cultural scene finds a way out of this terrible situation caused by the pandemic. What comes afterwards, when people gather again in big numbers to enjoy the culture of all kinds, from all around, that’s what moves the scene not only in Serbia. Without an audience, without personal exchange, without feeling other experiences, opinions and reactions, we will all remain in our digital bubbles, which is a dead-end road for prosperity, democracy and common sense. What do you like about the Serbian culture and the spirit of the Serbian people, worth telling your friends in Germany about? I would recommend everybody to come to Serbia, to discover the country and its friendly people by travelling around, by bus or car, hiking or cycling, exploring the country from Fruška Gora to Mokra Gora and from the banks of the Drina river in fertile Macva to the hills of Stara Planina and beyond. We should not forget the old Belgrade, the only metropolis on the Western Balkans, Novi Sad and ancient Niš. Stop on your way at a roadside café, check the meat dishes, ajvar and kajmak, try some palačinke sa eurokrem, forget about driving and have some rakija made from kajsija (apricot) or šljiva (plum)… Take your time ("samo polako"). When in Serbia, do as the Serbs do! 

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ACTIVITIES

AHK SERBIA - THE BIGGEST BILATERAL CHAMBER IN SERBIA German investors, represented by the then Delegation of the German Economy in Serbia and the German-Serbian Business Association, and today AHK Serbia, are celebrating 20 years of operations in Serbia this year

he German-Serbian Chamber of Commerce (AHK Serbia) represents the interests of member companies, provides information support for their businesses and advocates for the development and improvement of German-Serbian trade and cooperation in all economic aspects. One of the tasks of AHK Serbia is giving advisory support to German companies when entering the Serbian market, as well as to Serbian businesses when entering the German market.

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This year, AHK Serbia celebrates its jubilee - 5 years since its official establishment

NEW BOARD OF DIRECTORS OF AHK SERBIA In late September 2020, AHK Serbia members held their regular annual assembly meeting. The new Board of Directors, with a two-year term, consists of Udo Eichlinger, Chairman of the Board of Directors and Director of Siemens Serbia, Vice-Chairwoman Dijana Peškir from Stihl and Vice-Chairman Milan Grujić from

ZF Serbia, as well as five members - Ronald Seeliger (Hemofarm), Ivan Smiljković (ProCreditBank Serbia), Bojan Predojević (Profine), Christian Braunig (Confida Consulting) and Dragan Simović (M&M Militzer & Munch). The Deputy Treasurer is Dirk Bantel (Vossloh-Schwabe Serbia) with a still valid mandate.

NEW DIRECTOR OF GERMANSERBIAN CHAMBER OF COMMERCE (AHK SERBIA) APPOINTED The Board of Directors of the Ger-

New Board of Directors of AHK Serbia

New director of German-Serbian Chamber of Commerce (AHK Serbia) appointed

The WB Purchasing Initiative

man-Serbian Chamber of Commerce appointed Frank Aletter to the position of Director and Executive Member of the Board of Directors of AHK Serbia starting on February 1, 2021. On the occasion, Mr Aletter said: "Our long tradition and sustainable operations make us a stable partner of Serbia, whose focus has always been and will be on improving bilateral economic relations between Serbia and Germany."

INITIATIVE FOR FINDING SUPPLIERS IN THE WB COUNTRIES The regional B2B project "German Initiative for Finding Suppliers in the Western Balkans" has been implemented for the sixth consecutive year. This year's regional B2B project was held online from September 8th to 22nd. Over 30 German companies participated in the project, including 154 companies from the WB region. 52

Dual education

'Biomass and Biogas' online conference

Serbian companies presented their business to potential German partners, and a total of 340 B2B meetings were held. The event was realized under the auspices of the Ministry of Economy and Energy of the Federal Republic of Germany and the Programme for the Development of Foreign Markets for Small and Medium-Sized Enterprises of the Federal Republic of Germany.

'BIOMASS AND BIOGAS' ONLINE CONFERENCE Under the auspices of the Ministry of Economy and Energy of the Federal Republic of Germany and in partnership with the German company Energiewächter GmbH, in September 2020, AHK Serbia organized an online conference called "Biomass and Biogas in Serbia" to connect successful German companies with Serbian companies to share technology and experienc-

AHK's online portal for student internships

es. "Biomass is the only energy source that ensures energy independence and provides the possibility of sustainable development of local communities. Therefore, decision-makers, entrepreneurs and local communities should show their interest,“ it was said at the conference.

DUAL EDUCATION In January 2021, AHK Serbia held a webinar called „Dual Education: Perspectives for 2021 & Financial Support from the German Development Bank (Kf W) project 'Regional Challenge Fund (RCF)“. The guest lecturers were representatives of the Centre for Education, Dual Education and Education Policy of the Chamber of Commerce and Industry of Serbia, the German Development Bank (KfW), as well as representatives of member companies of AHK of Serbia.

Senior Expert Services (SES)

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Working groups

A new AHK working group for CSR formed

AHK'S ONLINE PORTAL FOR STUDENT INTERNSHIPS The web portal dedicated to students interning in the Chamber's member companies (www.ahk-praksa.com ) was created following the initiative "From the German Business Model to Work Experience" launched by AHK Serbia and the University of Belgrade to help students improve their work skills and fostering a better connection between students and the labour market. This is an online platform on which members of AHK Serbia, but also other companies with German capital that are not necessarily AHK members, will regularly publish available internship positions in their companies. SENIOR EXPERT SERVICES (SES) This German non-profit organization, subsidized by the German Ministry for International Cooperation, is engaged in mediating and organizing the hiring of German professional consultants to advise SMEs. SES consultants are active German retirees, experts with abundant experience who perform their advisory roles with great enthusiasm and work ethic. They provide consulting services without financial compensation, to help and facilitate the good organization of business in SMEs, public institutions, associations and educational institutions, both in Serbia and worldwide. The German-Serbian Chamber of Commerce has been representing the SES programme in Serbia since 2005, and as of 2018, about 250 German SES experts have been engaged in the programme.

Seminars & webinars

Focus

WORKING GROUPS The German-Serbian Chamber of Commerce also has working groups that focus on three areas: human resources, communications & public relations and energy efficiency & renewable energy sources. At interesting interactive meetings, which usually have around 35 participants, working group members discuss common topics, experts from a particular field give lectures and business people from different companies exchange their experiences.

manitarian organizations, as well as business associations, in order to boost the role of civil society in Serbia and create a better economic environment. The only multi-congress in Serbia covered a wide range of topics: human rights, economy, EU integration, security, innovation, education, culture, environmental protection and other segments that make up the vision for a better future of Serbia, which were presented through 30 events of the co-organizers of this multicongress.

A NEW AHK WORKING GROUP FOR CSR FORMED Reputation is the most important in the business of a modern company, which is expected not only to ensure financial performance but also to make a positive contribution to social development. Today, everything is considered important for a good corporate reputation - from the staff and product quality to financial performance and corporate culture. AHK Serbia has recognized the importance of corporate social responsibility and corporate philanthropy and this year established a Working Group for CSR / Sustainable Development, which has so far organized three online meetings, with the support of the Serbian Philanthropic Forum.

SEMINARS & WEBINARS In cooperation with its members, AHK Serbia, organizes numerous seminars and workshops on current topics. Additional education and information help employees in member companies to improve their know-how and get acquainted with innovations in the field of their business activities and thus improve the business of their companies. Last year, we organized a large number of webinars in cooperation with our members, experts, partners, relevant institutions and other chambers in the country and abroad.

SERBIAN VISIONS From February 1st to 5th, AHK Serbia held the sixth consecutive multicongress 'Serbian Visions' but this year, for the first time, it was held online. 'Serbian Visions' assembled non-governmental and hu-

International Coffee Break

GERMANY 2021

sixth consecutive multicongress 'Serbian Visions'

INTERNATIONAL COFFEE BREAK Together with other foreign chambers, during the Kopaonik Business Forum in March 2020, AHK hosted a networking cocktail. The goal of International Coffee Break events is to provide our members with a better platform for networking and sharing experiences, as well as to improve the business environment. 

CULTURE

REVIVED CULTURAL POWER

Economy has spurred the awaken creativity

ver time, Germany lost its "shy" approach to self-promotion and became a true cultural superpower. The strongest football clubs are just the tip of the iceberg, as are the strongest industry and the largest number of immigrants. Nowadays pop-bestsellers are made in Germany, but also the best-rated series in the history of television.

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INTERESTING FACT: Did you know that after World War I, Germany, during the Weimar Republic, was an experimental training ground for the latest and boldest achievements in film, poetry and theatre but also in the then-popular music, vaudeville and cabaret? The whole world watched Berlin, Fritz Lang and the iconic German expressionist films, read the same kind of poetry and dreamed of coming to avant-garde cabaret. Now, that time has returned. BABYLON BERLIN Today, the best series, perhaps even in the history of television, dominates TV screens worldwide, it is German and it is called ‘Babylon Berlin’. This is one of those rare TV series that got 100% positive reviews on Rotten Tomatoes. It takes place in Berlin during the 1920s and the

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GERMANY IS BACK IN FASHION. IT IS REDISCOVERING ITSELF! Weimar Republic, and it depicts the same period also shown in another magnificent series "Peaky Blinders", but also in the Serbian TV series "Shadows over the Balkans" (“Senke nad Balkanom”). This was a time when skilful, unscrupulous, smart people fought together for wealth and power, and when democracy was struggling to survive against attacks from the extreme left, and even worse, from the extreme right that will eventually win and lead to the Second World Mad-

ness. The people at the bottom of society, the police, the refugees and the traumas of the First World War are all the elements of the era described perfectly to draw in the viewers. Strangely enough, the producers even wondered if the series would be able to have some success in the rest of the world because it is German. The truth is that the spirit of the era could never be emulated and felt if actors from any other country, other than Germany, were hired. In the series, quite a few of the German actors use the Berlin dialect or a local accent with a charming “Ick” instead of “ich” and “jut” instead of “gut”. As a result, many countries have bought the series, even those with English as their mother tongue. Critics say the following: "Babylon Berlin's humour and humanity pair nicely with its hypnotic visuals, resulting in a show that dazzles

within its oversaturated genre." Babylon Berlin is also the most-watched non-English series ever in history of Sky TV. As Carolin Ströbele from Die Zeit says: "After Das Boot, we now have an even better series in German and we have proved yet again that we are angst champions."

ALICE MERTON AND THE POP CAPITAL OF EUROPE Once upon a time, existing or future world stars came to Berlin to get inspiration for their career U-turn including David Bowie, Depeche Mode, Nick Cave and Lou Reed. They all saw Berlin as a place where their career would cross their style. The Beatles had Hamburg, as did The Sisters of Mercy. But today, bands come to Berlin or Germany to have their big break. They no longer go there just for inspiration. Berlin is the pop-rock capital of Europe and the

TODAY, THE BEST SERIES, PERHAPS EVEN IN THE HISTORY OF TELEVISION, DOMINATES TV SCREENS WORLDWIDE, IT IS GERMAN AND IT IS CALLED ‘BABYLON BERLIN’ world. The current big pop stars like Alice Merton also come from Germany, but bands that have merged in other parts of the world, such as the Serbian band Sixth June or the Swiss-German Lebanon Hannover, are located in Berlin and have their

base there. Just as London or New York used to be a hub of world music, today that is Berlin. If you are releasing a song, Berlin is the place to be. Just like Lebanon Hannover had a hit song called "Du Scrollst", you can have a world hit again even if it is in the German language like it was 1927 again.

AND A STEP FURTHER… The same goes for other arts: if you are a painter or sculptor, you have to come to Berlin to have a big break, just like you used to in Paris. If you are a publisher or writer, the peak of your career will be a performance or promotion at the largest and most important fair - Frankfurter Buchmesse. In popular culture, Boss will never go out of fashion, nor will Lagerfeld. Germany is back in fashion. It is re-discovering itself! 

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FOCUS

DISCREET (AND QUIET) HEROES Germany remains a reliable partner of Serbia even in most difficult times

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Messer Tehnogas

rom adversity, heroes are born”, says a Serbian proverb, which is valid for the whole world. The year 2020 was not easy, with the whole world, including Serbia, going through a crisis. In addition to uncertainty and the pandemic caused by an unknown virus, Serbia also had to contend with a lack of medication, medical equipment, services, and oxygen, which was and still is necessary to save lives. Moreover, lives, we realized that, are the basic, that must be preserved because everything else depends primarily on it. But companies came to the rescue by donating equipment, goods and services worth more than 1.7 million euro. They included large and small, well-known and lesser-known companies. All these companies are our quiet heroes who share one common thing - they all are members of the German-Serbian Chamber of Commerce (AHK Serbia). They have been discreetly helping Serbia, without much publicity, and came to rescue in many instances - they produced and donated visors, provided free transport for donations, worked in three shifts and without annual leave, so to keep oxygen supply going, donated hygiene products throughout Serbia and so on – each time more than the previous time.

“F

In order to support institutions and health workers in Serbia in the fight against the COVID-19 pandemic, in 2020, the discreet heroes, as we called them, members of the German-Serbian Chamber of Commerce donated aid in the shape of specialized medical equipment and money for its procurement, various goods, food and hygiene packages, but also provided services to companies like transportation and distribution services for humanitarian purpose. We will mention some of them here - B. Braun, Generali Osiguranje Serbia, Hemofarm, Robert Bosch, the Perić Trans Company, Konstruktor Consulting, Klett, Telenor, Henkel, Nelt, Siemens, GP Građevinar, Messer, Merck, Bayer, Ametek, Transfera d.o.o,. Inmold, Stim -Import and many others. In order to give them overdue praise, we wrote stories about these discreet heroes and their heroism.

MESSER TEHNOGAS Oxygen for life

Messer Tehnogas AD was at the forefront of the fight against the coronavirus as a producer and distributor of liquid and gaseous medical oxygen required for the treatment of the most difficult patients. To meet the growing needs for oxygen, the

Messer Tehnogas

company has invested significant funds additional tanks for medical oxygen have been installed in the Clinical Centre of Serbia, VMC Karaburma and the Military Hospital in Niš, while in the Zemun Clinical Centre, three supply substations have been upgraded and the central medical oxygen supply installation adapted. In the makeshift hospital in Stark Arena, oxygen installations were distributed to reach 230 beds, once the patients were already submitted, another tank was added in the Dragisa Mišović Hospital. A central oxygen distribution installation was put up at the OB Vršac, followed by two oxygen tanks in the COVID hospitals in Batajnica and Kruševac. Thousands of seamless bottles for compressed gases were procured or repurposed, and the company’s production switched from one- to threeshift operation, in all locations. The company’s logistics department made deliveries 24/7. In July, August, November, December and until mid-January, Messergas did not stop for weekends and national holidays. Even today, through having continuous communication and in mutual agreement with the Government of Serbia’s Crisis Task Force, the company carries out regular and reliable distribution of medical gases to all the relevant institutions in our country.

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TRANSFERS

In action with and without partners In 2020, Transfera provided assistance both on its own and in partnership with other companies. In March, the company regularly donated protective masks to the Maternal and Child Health Institute, as well as disinfectants, medical materials and equipment. The company also financially helped the State Health Insurance Fund. In cooperation with the Chinese company Mei Ta, Transfera delivered protective masks from China, as part of the donation, to the Centre for the Protection of Infants, Children and Youth in Zvečanska Street in Belgrade and the Gerontology Centre Belgrade. Dr. Oetker and Transfera together donated to the SOS Children's Village and the Village’s branches in Kraljevo, Niš and Belgrade, as well as to the Dr. Milorad Pavlović Children's Village in Sremska Kamenica. Furthermore, Transfera has supplied the Clinical Centre of Vojvodina, the Lung Diseases Health Institute in Sremska Kamenica (Vojvodina), Red Cross in Belgrade and the Clinical Centre in Niš with Dr. Oetker's products.

NELT GROUP

Donations to fight the coronavirus The companies that operate under Nelt Group have donated over EUR 350,000 to help the countries in which they operate in the fight against the COVID-19 virus. Nelt in Serbia donated EUR 240,000 to the State Health Insurance Fund towards the

purchase of 10 ventilators for the gravely ill patients suffering from the COVID-19 virus, while Neoplanta donated products worth EUR 50,000 as part of an aid package for 173,000 people of Belgrade, over 65 years of age, who have the lowest pensions. 30,000 mini packs of Sebamed baby soap were donated to customers at Dr. Max and Benu pharmacies, as part of the nationwide campaign conducted by Nelt’s Sector for the Distribution of Drugs, Medical Devices, Food Supplements and Cosmetics. Neregelia and Montenomaks C&L, Nelt’s companies in Montenegro, donated EUR 20,000 to the National Coordination Body for Infectious Diseases. Also, the company donated EUR 20,000 to healthcare facilities in North Macedonia and Bosnia and Herzegovina each.

PERIĆ TRANS COMPANY

Aware of the importance of social responsibility As part of the community in which they

ALL THESE COMPANIES ARE OUR QUIET HEROES WHO SHARE ONE COMMON THING - THEY ALL ARE MEMBERS OF THE GERMAN-SERBIAN CHAMBER OF COMMERCE (AHK SERBIA)

Dr Oetker and Transfera

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GERMANY 2021

operate, the Perić Trans Company is cognizant of the importance of the need to promote true values and social responsibility. In March 2020, the company joined the fight against the coronavirus by donating 3 million dinars to the State Health Insurance Institute in support of medical facilities and workers. In this way, Perić Trans Company appealed to other companies to respond and provide assistance to the best of their ability. With the desire to help renovate the church property destroyed in the earthquake in the area of Glina and Petrinja in Croatia, Perić Trans Company donated EUR 3,000 EUR to the Serbian Orthodox Church Zagreb-Ljubljana Metropolitanate and EUR 7,500 EUR to the Gornji Karlovac Diocese.

HENKEL SERBIA

Committed to social responsibility During the pandemic, thanks to the solidarity programme, Henkel was able to help the frontline medical staff in solving a global problem. In cooperation with the Novak Djoković Foundation, Henkel donated five ventilators and five clinical monitors to the General Hospital in Kruševac. The company also donated hygiene products and protective equipment. In addition to this hospital, the products were donated to the Gerontology Centre in Belgrade, the Pulmonology Clinic in Belgrade and the Health Centre in Indjija. Henkel also helped senior citizens with the lowest incomes by donating goods to Red Cross in Belgrade and Kruševac. The total value of these donations exceeded EUR 480,000.

Henkel

Generali Serbia

GENERALI SERBIA

Helping is one of our core values Generali Osiguranje donated a disinfection tunnel to KBC Bežanijska Kosa and an ECG device each to KBC Zemun and the General Hospital in Šabac, thus once again demonstrating its readiness to support medical facilities in Serbia. In 2020, Generali donated EUR 100,000 to the Government of the Republic of Serbia towards boosting the capacity of the country’s healthcare system in overcoming the COVID-19 epidemic and the Vatreno Oko COVID laboratory for the purchase of laboratory supplies and equipment, hygiene and disinfection products, office supplies and furniture, the financial compensation for the employees and development of research and educational potential. The donation came from the Extraordinary International Fund of the Generali Group, which was established to overcome emergencies caused by the COVID-19 pandemic which is available in all the countries in which Generali operates.

B. BRAUN ADRIA

Helping in the fight against the pandemic At the onset of the pandemic, B. Braun was focused on providing the necessary quantities of drugs and medical supplies. The company delivered quantities of drugs re-

GERMANY REMAINS A RELIABLE PARTNER OF SERBIA EVEN IN MOST DIFFICULT TIMES. THEY DONATED EQUIPMENT, GOODS AND SERVICES WORTH MORE THAN 1.7 MILLION EURO quired for the proper functioning of health care facilities at the very beginning of the pandemic and delivered available quantities to the most vulnerable hospitals. Production and delivery are still under great pressure because the pandemic is ongoing, but with a great effort, B. Braun manages to secure a regular supply of medicines and materials used by COVID patients. All of B. Braun’s employees understand the importance of the company's role and are fully committed to ensuring uninterrupted deliveries of medicines and equipment for the regular functioning of health care institutions. In addition to helping many associations to donate equipment, the company has also donated infusion pumps which are used in gravely ill patients, and by doing so, improved care of intensive care patients. B. Braun’s employees are fully committed to carry-

B.Braun Adria

ing out their tasks and contributing to the fight against COVID-19 in Serbia.

HEMOFARM

To Serbia with Love In addition to securing the supply of medicines in Serbia, the regional pharmaceutical leader, Hemofarm, and its parent company, STADA, also delivered substantial humanitarian aid to Serbia, in the value of almost 400,000 euros. Namely, the donation included 110 monitors for patient monitoring, without which the doctors who are continuing the battle against the coronavirus would not be able to work. The message reading: “To Serbia with Love”, inscribed on the lorry with the shipment of this important medical equipment, sums up the sentiment of all six thousand employees of our parent company, STADA, and of all the employees of Hemofarm, who continued working seven days a week even in these hard times, in order to secure the supply of medicines. In addition to the 110 monitors donated to Serbia, Hemofarm and STADA also secured donations to the other countries where their manufacturing sites are situated – 10 monitors to Montenegro and 30 monitors to BIH. With its maximum contribution in the battle against coronavirus and in defending people’s health, Hemofarm has been breaking its production records from the very start of the pandemic. 

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TOURISM

NEAREST GERMANY Low cost, high class

ong ago, people from Serbia could board on a low-cost flight from Belgrade to Memmingen, the perfect hub for layovers and the perfect location for targeted vacations. The part of Germany called Allgäu and the nearby Lake Constance are gems of Germany's tourist of-

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fer. And no, we are not going to mention the already famous Neuschwanstein Castle.

MEMMINGEN A small town of Memmingen used to have a military airport used by the U.S. Army up until the 1990s. When the Amer-

icans wanted to relocate their troops further to the east, the agile citizens of Memmingen jumped on the bandwaggon called low-cost airlines and set up centres for WizzAir and RyanAir at the airport of this small town which is the size of Sombor. Some people decided to stay in the area and see the beauties

that are Lake Constance or nearby Munich, Liechtenstein or the Alps, as well as the Allgäu region. Memmingen is a classic German that that reminds you of scenes from Hermann Hesse's “Narcissus and Chrysostom“ - the Middle Ages combined with the contemporary look, small workshops, harmonious ar-

THE PART OF GERMANY CALLED ALLGÄU AND THE NEARBY LAKE CONSTANCE ARE GEMS OF GERMANY'S TOURIST OFFER

chitecture, attention to detail, photo albums, Easter decorations, bunnies and sausages and pastries, typical of Bavaria. Perfectly preserved or reconstructed facades of old, historic buildings. You don't need to go on any further to have a great weekend in Germany. But let's move on anyway.

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LAKE CONSTANCE Very few people from the Balkans are aware of what a tourist gem Lake Constance is. Only in some domestic comedies could we get a peek into what that location meant before the Second World War - and it was a kind of a German sea but in the Alps. And what kind it is! The Riviera is dotted with beautiful medieval towns which are beneficial to health because of negative ions coming from the lake and the Alps. It wasn't so popular for sunbathing and swimming. Nightlife here, for ladies in heavy dresses and gentlemen in tailcoats, was important, so the climate on Lake Constance in the summer was ideal, well, for summer vacations. Lindau or the "city of lin-

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VERY FEW PEOPLE FROM THE BALKANS ARE AWARE WHAT A TOURIST GEM LAKE CONSTANCE IS den" is perhaps the most beautiful gem of Lake Constance, as Germany shares it with Switzerland and Austria. It is located on an island, to which you can get by train. You will disembark at an old but renovated station in the Old Town. The Germans have perhaps the best trains in the world, and if you buy a Bayern-Tick-

et, 5 people can travel in the same train all day all over Bavaria, or, in the case of the Wochenende-Ticket, 5 people can travel all over Germany all weekend (ICE trains are not included). Therefore, it is not surprising that Germans are in love with weekend trips around their country. It is cheaper for them and foreigners to travel all over Germany, than for us to travel all over Serbia. In any case, the town looks idyllic. Each building looks like a cake, and everything is neatly organized. Houses look like rows of cakes in a pastry shop. The cafes are outdoors and mostly packed. The Italian language is heard everywhere. This is proof that the Italians are the most frequent guests of the Al-

pine regions, and that in this part of Europe, there is a custom that we would call "get to know thy neighbour". Houses from the 12th or 14th century take us back to the time of minesweepers and old craftsmen, knights and ladies. Each house has a sign and a description. The most spectacular of them is the Old Town House, which has many paintings on the facade - typical for this part of the world. They are perfectly preserved and can be found everywhere. Another thing that makes you smile and draws you into Balašević's nostalgia for a time you haven't even experienced is signs that hang from the walls of houses, the so-called "roommates" (Zimmer). These are, in fact, old companies. In the past, people were

AT DUSK, IN THE HARBOUR, FLOWERS ARE EVERYWHERE. GERMANY IS THE MOST BEAUTIFUL IN APRIL not literate, so the inscription "baker" or "blacksmith" did not mean anything to them. Craftsmen used to hang metal "roommates" in the shape of a pretzel or a hammer to explain what was the particular craftsman doing. There were companies without words. At dusk, in the harbour, flowers are

everywhere. Germany is the most beautiful in April, perhaps. The wind from the Alps gently sweeps by people who are sitting and drinking beer and wine in picturesque cafes with views of Mangturm, an old fairytale tower, and a lighthouse with a Bavarian lion. Boats are swaying on the water. In the distance, on the other side of Lake Constance, you can see the snow-covered Alps. You feel as if you have returned to your childhood. Perhaps for the Balkan people, work and emigration are the first words they associate with Germany. Although that is quite true, it is also wrong. Germany is a beautiful country that has wonderful areas, like this one. They are high class and very close to us. 

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CORPORATE

AMS OSIGURANJE: INSURE YOUR HOME TODAY!

ave you considered insuring your house or apartment? Protect yourself from financial losses in the event of numerous risks today. AMS Osiguranje gives you with the opportunity to quickly and easily, with the help of professional staff, insure your home from fire, water spills from installations, broken windows, burglary and other risks in accordance with your insurance policy terms and conditions. In case any of the previously mentioned risks materializing, the costs and consequences can be great, and everything you have been investng a lot of effort and money in over the years can disappear in an instant. With AMS Osiguranje's household insurance policy you do not have to bear the costs of the damage yourself. Our household insurance covers the damage caused to your house or apartment, as well as all

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GERMANY 2021

things and valuables in your home. At the same time, you are covered against the costs of the damage that an accident in your home or an apartment can cause to

QUICKLY & EASILY

AMS Osiguranje has made it possible to purchase a household insurance policy quickly, easily and easily online on webshop.ams.co.rs your neighbours. The household insurance premium is determined depending on the size and age of the property you are insuring, and we offer you the most favourable

prices and conditions on our market. AMS Osiguranje has made it possible to purchase a household insurance policy quickly, easily and easily online on webshop.ams.co.rs By purchasing our household insurance policy, you not only save your money, but also take care of the safety of your property in the right way. We would also like to remind you that you can insure your vehicle from various types of damages by purchasing a casco insurance policy from AMS Osiguranje. You can pay the premium in 12 monthly instalments, and we also grant an additional discount for payment in full. We are waiting for you in 16, Ruzveltova Street in Belgrade or in one of over 250 of our branches throughout Serbia. For more information about AMS Osiguranje's services call 0800-009-009 or visit www.ams.co.rs. 

Germany 2021

Articles inside

50 YEARS OF THE GOETHE INSTITUTE IN SERBIA

THE 30-YEAR-LONG JOURNEY OF LOOKING AHEAD

TRADITION OF QUALITY

WE HOPE FOR EVEN GREATER SUCCESS

PROMISING RELATIONSHIP IN A YEAR FULL OF JUBILEES

SUCCESSFUL CONSTRUCTION WITH PERI

WE HAVE QUICKLY ADAPTED TO THE NEW CONDITIONS

GERMANY WILL CONTINUE TO INVEST IN SERBIA