InFocus Greece

Greece 2018

GREECE & CROATIA

GOOD AND DEEP RELATIONS H.E. Stavros Tsiepas

Ambassador of the Hellenic Republic to Croatia

Christos Farmakis

Constantinos Mihalos

First Counsellor for Economic and Commercial Affairs at Greek Embassy in the Republic of Croatia

President of the Athens Chamber of Commerce and Industry and President of the Union of Hellenic Chambers

01 THE LAND OF CAVES Greece counts some 7,000 (limestone) caves, forming 24,000 km of underground galleries. This fact is overshadowed by beaches but still it is spectacular!

04 TAKING THE BULL BY ITS HORNS

The saying “taking the bull by its horns� comes from the Greek myth of Hercules saving Crete from a raging bull by seizing its horns.

05 MYTHICAL CULTURE

Ancient Greek history, culture, mythology and literature has widely influenced modern Western culture. They have inspired many Hollywood films, from the earliest to the latest blockbusters, as well as Japanese and Dinsey animations.

06 ARCHAEOLOGICAL HEAVEN

Greece has more archaeological museums than any other country in the world. Maybe because it is so rich in archeological findings.

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02 THE NON-

ROLLING STONES An old Greek legend says that when God created the world, he sifted all the soil onto the earth through a strainer. After every country had good soil, he tossed the stones left in the strainer over his shoulder and created Greece.

03 TOURISM AND AIRPORT

Greece has more international airports than most countries because so many foreign tourists want to visit. Also, the number of islands contributed to that.

07 WE HAVE GREEK NAMES!

Numerous modern Western given names come from Greek, such as Alexander (Alexandros => protector of man), Andrew (Andreas => manly), Dennis (Dionysios => follower of Dionysius), George (Georgios => farmer), Helen (=> sunshine)...

08 BIG BLUE

EVERYWHERE

Many Greek structures such as doors, windowsills, furniture, and church domes are painted a turquoise blue, especially in the Cyclades Islands. It is used because of an ancient belief that this shade of blue keeps evil away.

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INTERVIEW

H.E. Stavros Tsiepas

Ambassador of the Hellenic Republic to Croatia

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The bilateral relations, based on the principle of good neighbourly relations, are very good, and have been cultivated by frequent bilateral contacts in the past years

G

reece and Croatia have established diplomatic relations in 1992, but they definitely became even closer since Croatia’s accession to the European Union in 2013, says H.E. Stavros Tsiepas, Ambassador of the Hellenic Republic to Croatia.

How would you assess the bilateral relations between Greece and Croatia?

— They are very good and are deepening every year, politically, economically and culturally. In the segment of culture, for example, the two countries will stage museum exhibitions in both capitals on the occasion of Croatia's undertaking the Presidency of the Council of the EU, in the first half of 2020.

Our political relations have undoubtedly been further strengthened since Croatia’s accession to NATO and the European Union but also through our effective cooperation in many regional forums and organizations, such as the Southeast European Cooperation Process (SEECP), the Black Sea Economic Cooperation Organization (BSEC), the EU Strategy for the Adriatic and Ionian (EUSAIR) and the Quadrilateral Scheme of Cooperation Between Greece, Croatia, Bulgaria and Romania. From an economic point of view, there is significant potential for growth in various sectors and mutual interest in expanding our cooperation, as recently validated by the signing of a Memorandum of Understanding (MOU) between the Athens Chamber of Commerce and Industry and the Croatian Chamber of Economy in Zagreb. Last but not least, in the field of cultural cooperation, the Ministries of Culture of our two countries are working active-

ly on exchanging archaeological exhibitions which will take place in both capitals during the first Croatian Presidency of the European Union Council in 2020.

How much has Croatia's accession to the EU contributed to boosting these relations?

— The fact that it now belongs to the same European family has not only given a common vision and scope, but has facilitated people-to-people contacts and business cooperation, particularly in the context of EU programmes. In this respect, Greece has clearly stated that it is willing to

GREECE HAS CLEARLY STATED THAT IT IS WILLING TO PROVIDE CROATIA WITH THE VALUABLE KNOWHOW AND TECHNICAL ASSISTANCE, GIVEN ITS HIGH TRACK-RECORDS OF EU ABSORPTION FUNDS provide Croatia with the valuable knowhow and technical assistance, given its high track-records of EU absorption funds.

Now that Croatia has important accession funds at its disposal, this will also provide opportunities for cooperation, given that, as it appears from official EU documents, Greece has one of the highest records of absorption of EU funds.

What are the key international issues

on which the two countries are cooperating?

— The priorities of the cooperation between Greece and Croatia, both as South-East European countries and members of the EU and NATO, is the enlargement of the European Union and the Euro-Atlantic integration of all Western Balkan countries, which will secure consolidated stability and democracy and will boost the economic well-being of all the peoples of the region.

The key international isssues the two countries cooperate on are the political, economic and security situtation in the EU, NATO and in the region of Southeastern Europe, especially in relation to the EU enlargement in the Western Balkans.

More specifically, the two countries are members of the EU and NATO and at the EU level, together with Romania and Bulgaria they participate in the so-called Quadrilateral Cooperation for Southeastern Europe. At the regional level: a. Our countries also cooperate closely in tackling current global issues and challenges that might affect our neighbourhood, like, for instance, in the framework of the Centre for Security Cooperation (RACVIAC) for SE Europe, based in Rakitje. b. Both countries are members of the South-East European Cooperation Process (SEECP), which, as defined in its Charter, has the following main objectives: enhancement of political and security cooperation; fostering economic cooperation; enlargement of cooperation in the fields of human dimension, democracy, justice and combating illegal activities. The SEECP has 13 participants from the SEE region, which are also participants in the Regional Cooperation Council (RCC) Board.

COOPERATION

THE TWO COUNTRIES COOPERATE AT THE EU LEVEL, COUNCIL OF THE EU AND WORKING GROUPS AND AT THE FRONTEX LEVEL GREECE 2018

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How much can Greece and Croatia contribute to improving security through the process of co-operation in Southeast Europe?

— Both countries participate in RACVIAC, an international security coooperation organization with members coming from all over SE Europe and observers from North America and other European countries.

Greece currently holds currently the Presidency of the Multinational Advisory Group (MAG) of RACVIAC (starting from 1st November 2018 and lasting one year). Greece and Croatia also actively participate in the SEECP process which has boosting security cooperation as one of its main goals.

Most of the problems facing our countries nowadays transcend state borders: issues like climate change, refugee and migrant flows, terrorism, transnational organized criminal networks that profit from human trafficking, drug smuggling, contraband trade in small arms and light weapons, to name but a few, are all issues that cannot be adequately addressed by each state's authorities and agencies, regardless of their resources and training.

Such issues require international attention and concerted efforts by all affected so as to be tackled in a most effective manner. In this context, regional formats of cooperation, like RACVIAC, or like the above-mentioned SEECP process, have proven to offer significant added value.

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What is your position on Croatia's inclusion into the Schengen zone?

— Cooperation, both at the bilateral and at EU level, can take place in the context of Croatia's preparation to fully apply the Schengen acquis. The various EU bodies and Council groups, including FRONTEX, give ample opportunity for that.

We should note that when Croatia satisfies the relevant criteria and is able to fully apply the Schengen acquis, upon recommendation by the Commission, the Council of the EU will make the final decision regarding the full-fledged membership of Croatia in the Schengen area. An expansion of the Schengen area in Southeast Europe will definitely improve various exchanges, including tourist exchanges, and the general cooperation on security.

What new perspectives has the cooper-

COOPERATION CAN TAKE PLACE IN THE CONTEXT OF CROATIA'S PREPARATION OF CROATIA TO FULLY APPLY THE SCHENGEN ACQUIS

ation between the two countries within the Adriatic-Ionian Initiative opened up?

— The Adriatic and Ionian Initiative (AII) (established at the Summit on Development and Security on the Adriatic and Ionian Seas, held in Ancona (Italy) on 19th/20th May 2000) counts eight members today: Albania, Bosnia and Herzegovina, Croatia, Greece, Italy, Montenegro, Serbia and Slovenia. As the Ancona Declaration states, the purpose of the initiative is to strengthen regional cooperation in order to promote political and economic stability, thus creating a solid base for the process of European integration. The goal of facilitating the EU enlargement in the Western Balkans was set from the very moment this institution was established. To this end, Greece is cooperating with all members, including Croatia, in order to enhance the goals of the initiative.

What is your assessment of the cooperation between the two countries when it comes to the migrant crisis?

— The two countries cooperate at the EU level, Council of the EU and working groups and at the Frontex level. However, this cooperation is not always direct, since our two countries do not share common borders. Thus cooperation with neighbouring countries in the region becomes of utmost importance.

Progressive thinking. Innovation. Hard work.

Goldair Handling is the first private ground handling company, operating in a liberalized Greek market of ground handling services since 1999, following the abolition of monopoly.

Goldair Handling offers a complete range of passenger services, ramp and cargo. Specifically, it provides check-in passenger services, ticketing, baggage handling, cargo and mail transportation. Furthermore, Goldair Handling has four luxuriously furnished lounges at “El. Venizelos” Athens Airport, “N.Kazantzakis” Heraklion Airport & Mykonos Airport, for first class, business class & commercial interest passengers and provides PRM services by our dedicated team.

Today Goldair Handling operates in 26 airports in Greece, maintaining its presence in two major airports abroad, through Louis-Goldair Services

Goldair Handling S.A. Athens International Airport “El.Venizelos” Building 24, 1st floor, Administration, office B44A Tel: +30 210 3543889 www.goldair-handling.gr

(LGS) in Larnaca and Paphos and Goldair Handling Bulgaria in Sofia, Burgas and Varna.

Moreover, Goldair Handling has expanded its provision of consulting Ground Handling Services to Ethiopia (passenger-ramp-cargo-trainingcommercial SGHA Agreements-business development) to International Cargo & Aviation Services (ICAS) at Addis Ababa Bole airport.

Goldair Handling is the first ground handling company, which systematically certifies the services of participating in IATA-ISAGO inspection program, since 2009. Finally, it is one of the handling companies and founding members of «ground.net», which in cooperation with other European handling companies, offers a wide network of airline services, sales activities, marketing and exchanging of know-how and education.

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INTERVIEW

MUTUAL INTEREST IN EXPANDING BILATERAL ECONOMIC COOPERATION

Croatia's accession to the EU has opened new perspectives for cooperation between Greece and Croatia for this region as well

Christos Farmakis

First Counsellor for Economic and Commercial Affairs at Greek Embassy in the Republic of Croatia

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here are growth opportunities and I do not see any particular obstacles for the development of our bilateral commercial relations,” says Christos Farmakis, First Counsellor for Economic and Commercial Affairs at Greek Embassy in the Republic of Croatia.

What opportunties can the connections in the Adriatic-Ionian region create and what connections between Greece and Croatia in this community would you like to single out as particularly promising?

— The Adriatic / Ionian region still lacks modern infrastructure and one important reason for this is the difficult morphology that characterizes it. The role of European funds, as well as funding from other international organizations, will make a decisive contribution to the upgrading of transport infrastructures. For companies from both countries, for the time being, it's easier to establish contacts and do business.

Greek and Croatian foreign policy share common interests concerning cooperation in the context of the EU, the Mediterranean and the SEEuropean Region.

More specifically, there is a keen interest in cooperation in the framework of the EU Strategy for the Adriatic and Ionian Region (EUSAIR), which is one of the four EU macro-regional strategies. The EUSAIR covers eight countries: four EU Member States (Croatia, Greece, Italy, Slovenia) and four non-EU countries (Albania, Bosnia and Herzegovina, Montenegro, Serbia) and it aims to promote economic and social prosperity and growth in the region by improving its attractiveness, competitiveness and connectivity. The 1st Forum of EUSAIR was organised in Dubrovnik (Croatia) in May

2016 and the 2nd took place in Ioannina (Greece) in May 2017.

The Trans-Adriatic Gas Pipeline project has been talked about for years now, but it seems that, now more than ever, the changing geopolitical trends are exerting a great pressure on energy issues. How do you see the future of this gas pipeline?

— The Ionian Adriatic Pipeline (IAP) is a natural gas pipeline which will be connected to the Trans Adriatic Pipeline (TAP) in Fier in Albania and to the Croatian natural gas network in Split via through Montenegro and Bosnia and Herzegovina. The

GREEK AND CROATIAN FOREIGN POLICY SHARE COMMON INTERESTS CONCERNING COOPERATION IN THE EU, THE MEDITERRANEAN AND THE SEEUROPEAN REGION Ionian Adriatic Pipeline (IAP) is a very important project which will increase energy security for the region. The announcement of the Azerbaijani State Oil Company (SOCAR), on July 27th, about the formation of a new corporate entity that will oversee the future development of the Ionian-Adriatic Pipeline (IAP) project was a very important moment for this project.

However, the most important obstacle for this rather costly project is its economic performance because some countries

are not able to absorb large quantities of natural gas.

The Trans Adriatic Pipeline (TAP), worth 4.5 billion euro, is one of the priority energy projects for the European Union (EU) because it diversifies supply sources and increases energy security.

This pipeline will start Greece and will end in Italy, via Albania and the Adriatic Sea. It will be a 3,500-kilometre long gas value chain stretching from the Caspian Sea to Europe. It is expected to become operative in 2020.

There is also a transport connection that the Adriatic-Ionian motorway provides.

How can that boost the trade between the two countries?

— The construction of the Adriatic-Ionian motorway, known as the Blue Corridor project, is planned to begin before 2020.

The motorway should stretch along the eastern shore of the Adriatic and Ionian seas, crossing Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, Albania and Greece. It will radically change the whole region and bring our countries closer while promoting economic growth and facilitating transport of goods and, above all, increasing the tourist influx in the region.

What are the key factors that impede the Greek-Croatian trade, which remains below the optimal level despite the good bilateral relations?

— There is mutual interest in expanding the bilateral economic cooperation, which has significant potential for further growth.

Croatia’s accession to the EU on 1st July, 2013 has created a favourable framework that allows the further expansion and deepening of the bilateral economic co-

BLUE CORRIDOR

THE CONSTRUCTION OF THE ADRIATICIONIAN MOTORWAY, KNOWN AS THE BLUE CORRIDOR PROJECT, IS PLANNED TO BEGIN BEFORE 2020 GREECE 2018

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Croatia. I will mention just a handful: Coca Cola Hellenic Bottling Company, Aluninco, Alumil, Marina Stores (Lalizas), Anterra Doo (AUTOHELLAS/Hertz), Chipita, Dolphin Capital Investors and as of recently, Intralot which has signed a 10-year contract with Croatian State Lottery. Goldair Handling (a leading supplier of ground handling services in South East Europe) has received the licence to operate in some Croatian airports. Also, there are other important Greek firms with international experience that are interested in operating in Croatia, such as Intacom-Telecom, Ellaktor Group (Aktor / Hllektor), Linakis Digital, Enviroment Plan, Asprofos s.a, Mistras s.a., etc.

operation, mainly in the fields of energy, tourism, infrastructure, and the use of European funds (where Greece has a lot of experience). Both governments are interested in further development of economic relations and that was the subject of the very fruitful discussions that the Greek Secretary General for the International Economic Relations, Mr. Ioannis Brachos had last October in Zagreb.

Bilateral trade has been mostly stable in the last 3 years. According to our statistics, the value of the bilateral trade amounted to 130.7 million euro in 2017, with the value of Greek exports amounting to 79.1 million euro and the value of Croatian exports to Greece to 51.6 million euro.

There are growth opportunities and I do not see any particular obstacles for development of our bilateral commercial relations. What we need is to increase communication between Greek and Croatian businesses, providing them with the necessary information on both markets. This is very important and is one of the tasks of the Office of Economic and Commercial Affairs at the Embassy of Greece in Zagreb.

We believe that the chambers of economy can give a strong contribution toward that aim. I would like to me remind you that a memorandum of cooperation

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THE VALUE OF THE BILATERAL TRADE AMOUNTED TO 130.7 MILLION EURO IN 2017, WITH THE VALUE OF GREEK EXPORTS AMOUNTING TO 79.1 MILLION EURO AND THE VALUE OF CROATIAN EXPORTS TO GREECE TO 51.6 MILLION EURO was signed in Zagreb last October between the Athens Chamber of Commerce and the Croatian Chamber of Economy. On this occasion a successful economic forum and B2B meetings were held with the participation of the members of the Greek delegation and Croatian business people.

How big is the Greek business community in Croatia and how do they see the business perspectives in this area?

— Several Greek companies operate in

Is there any possibility for renewing cooperation between the Croatian shipbuilding industry and the Greek shipowners?

— European shipyards have been gradually losing their market share in shipbuilding volume, from 25% in 1990 to less than 3% in 2015, mainly due to low cost competition from Asia. This has created many problems in this segment, not only for Croatia but also for Greeceo, and many of these problems are not solved yet. Beyond that, I believe that there is a potential for cooperation because it is estimated that Greek ship-owners create an annual demand of about €8 billion in marine equipment, of which €6 billion concern construction of new ships (through shipyards) and the remaining €2 billion relate to direct expenditure by shipping companies for repairs and fleet maintenance (spare parts, etc.).

There has been talk about establishing shipping routes connecting the ports on the west coast of Greece and the Croatian ports of Dubrovnik, Split and Rijeka.

Can this result in a synergistic effect in tourism?

— These decisions are made exclusively by companies on the basis of purely economic criteria. I believe that, in the future, the development of infrastructure and tourism in the whole region will create appropriate conditions for establishing shipping route connections between ports on the west coast of Greece and the Croatian ports. This could be feasible even today but would require a policy of incentives from Croatian ports, particularly related to costs and other facilities.

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INTERVIEW

CHAMBER SUPPORT

The Athens Chamber of Commerce and Industry supports the bolstering of the economic cooperation between Greece and Croatia

Constantinos Mihalos

President of the Athens Chamber of Commerce and Industry and President of the Union of Hellenic Chambers

A

fter a long period of uncertainty and intense challenges, Greece is currently shaping the terms of a new era, following the crisis. The country's exit from austerity support programmes last August signaled a substantial and symbolic start for the country.

The Greek economy is now fiscally balanced. The growth has been steadily positive, exports are booming, while significant economic indicators such as economic climate, consumer confidence, business expectations in industry, trade and services are improving. The prospects for further acceleration of the growth of the Greek economy are supported by a series of reforms that have been implemented in recent years. These reforms aim at enhancing the competitiveness of the Greek economy, improving the investment environment, reforming the labour market, product and service markets, etc.

Outwardness is a key pillar of the strategy for the growth of the Greek economy in the coming years, combined with the utilization of its comparative advantages.

In this endeavour, we consider strengthening of the economic cooperation with neighbouring countries, such as Croatia, as extremely important, due to our geographic proximity, the friendship and mutual understanding.

The bilateral political relations between

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Greece and Croatia, which are already governed by the principle of good neighbourly relations, are further enhanced by Croatia's accession to the European Union, and are also cultivated with frequent contacts at all levels. The economic relations between the two countries are developing on this basis. The value of the trade between Greece and Croatia amounted to 130.7 million euro in 2017, with Greek exports amounting to 79.1 million euro

THE GREEK ECONOMY IS NOW FISCALLY BALANCED. THE GROWTH HAS BEEN STEADILY POSITIVE, EXPORTS ARE BOOMING, WHILE SIGNIFICANT ECONOMIC INDICATORS ARE IMPROVING and Croatian exports to Greece reaching 51.6 million euro. At the same time, a significant number of Greek businesses are active in Croatia, with investments in tourism infrastructure, pharmaceuticals, soft drinks, building materials, food, commercial real estate development and services provision.

There is, however, considerable scope and opportunities for bolstering the economic cooperation between the two countries, with an active role for both Greek and Croatian companies. Opportunities can be found in a number of areas, particularly in energy, tourism and infrastructure.

There is already an active interest in widening the existing cooperation, on the part of both business communities. This was confirmed during the business mission organized by the Athens Chamber of Commerce and Industry in Croatia last October.

The signing of a Memorandum of Understanding, between the ACCI and the Croatian Chamber of Economy, reflects the mutual willingness of both bodies for a closer cooperation, with the aim of facilitating networking and encouraging bilateral business initiatives.

I am confident that Greek businesses are ready to use the positive framework that has been cultivated and to seek productive, mutually beneficial collaborations.

As the Central Association of Chambers of Greece and as ACCI, we will continue to support in every way the efforts on further rapprochement between the business communities of Greece and Croatia, in the belief that the strengthening of the cooperation between them can generate substantial benefits for the enterprises themselves, but also for the economies of the two countries.

INTERVIEW

MORE ROOM FOR INTENSIFYING COOPERATION Croatia and Greece are friendly countries both sharing the same values and recognizing the importance of continuous cooperation, being active members of EU and NATO Ines Obradović

Head of Bilateral and Multilateral Division of the International and EU Affairs Sector at the Croatian Chamber of Economy

D

espite the excellent bilateral relations between Croatia and Greece, the economic relations between the two countries are not at a satisfactory level, says Ines Obradović, Head of Bilateral and Multilateral Division of the International and EU Affairs Sector at the Croatian Chamber of Economy.

female suits, outfits, blazers, jackets, dresses, skirts, and trousers.

In the first nine months of 2018, the value of the trade between the two countries amounted to 124.1 million euro, which is an increase of 11% compared to the same period in 2017. Exports declined by 4.1%, while there was growth of imports from Greece by 20.7%.

What is the current volume of external trade between Croatia and Greece?

— The total value of Croatia's trade with Greece in 2017 amounted to 144.5 million euro. Croatia exported 60 million euro worth of goods to Greece which, compared to 2016, is a 13.5% growth. At the same time, our country imported goods worth 84.6 million euro from Greece which is, compared to previous year, a 13% decline.

The most important export products are - sugar from sugar cane or sugar beet, chemically pure sucrose, iron waste and scrap, waste ingots suitable for refining, socks, nitrogen-based fertilizers (mineral or chemical) and medicine.

The most important import products are - footwear, citrus fruits (fresh or dried),

ACCORDING TO THE CROATIAN BUREAU OF STATISTICS, IN 2017, 33,521 GREEK TOURISTS VISITED THE REPUBLIC OF CROATIA, WHICH IS A SLIGHT INCREASE COMPARED TO 2016, REPRESENTING ONLY 0.2% OF THE TOTAL NUMBER OF FOREIGN TOURISTS

The most important export products in the first six months of 2018 were - iron waste and scrap (15.4%); nitrogen fertilizers, mineral or chemical (7.2%); socks (6%); cigars, cigarillos and cigarettes (5.7%) and sweatshirts, ski clothes and swimwear (4.7%).

The most important import products in the first six months of 2018 were - footwear (19.6%); water steam turbines and other steam turbines (6.3%) and citrus fruits, fresh or dry (3%).

In what way did Croatia's accession into the EU affect the trade between the two countries and its structure?

— Since Croatia's accession to the EU we have recorded a substantial growth of external trade between the two countries. To be more precise, in 2013, there was an increase of 36.4% in relation to 2012, and in 2014, a 33.1% growth compared to 2013.

Looking at the external trade over the past ten years, we can see that the total annual trade between the two countries peaked in 2014 when it amounted to 207.6 million euro. Since 2015, annual trade has recorded lower values.

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In terms of the structure of the foreign trade, up until 2017, petroleum oil and oil derived from bituminous minerals dominated both in export and import. In 2017, the most dominant export product was sugar and the most dominant import product was footwear.

What is the volume of the Greek investments in Croatia and did they contribute to a higher foreign trade between the two countries? If they did, which products and services were especially affected by this?

— According to the data from the Croatian National Bank, no significant Greek investments were made in Croatia, to be more exact the total Greek investments in Croatia during the period from 1993 to the second quarter of 2018 amounted to 35 million euro. The Greek investments were mostly made in construction of buildings, while the biggest investments were made in 2014 – almost 24 million euro – in the aforementioned construction segment In which areas are Croatian products particularly competitive in the Greek market? How many of these products are high added value ones, such as export of ships?

— As evident in the structure of commodity trade, current export products that are certainly competitive in the Greek market are sugar, iron waste and scrap, socks, nitrogen fertilizers and medicine.

Exports of yachts and other leisure or sporting vessels in 2017 amounted to 1.1 million euro, which is a 1.9% share in Croatia's total export to Greece. For comparison, in 2015, export of vessels, including

INVESTMENT

THE TOTAL GREEK INVESTMENTS IN CROATIA DURING THE PERIOD FROM 1993 TO THE SECOND QUARTER OF 2017 AMOUNTED TO 35 MILLION EURO 14

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warships and lifeboats, amounted to 4.5 million euro (6.4% of total exports). What this tell us is that we can be competitive in the export of ships / boats, but this potential is not fully accomplished.

We believe that many other high value added products can be competitive in this market and our Chamber will continue implementing activities aimed at promoting Croatian products in Greece.

IN 2017, 33,521 GREEK TOURISTS VISITED THE REPUBLIC OF CROATIA In which segments can the Chamber help the most with improving the economic relations between Croatia and Greece?

— Croatian Chamber of Economy within its scope of work organizes and conducts activities aimed at enhancement of business relations between Croatian and Greek companies. Therefor, in October this year, in collaboration with the Athens Chamber of Commerce and Industry, the Croatian Chamber of Economy organized the Croatian-Greek Economic Forum. Many business meetings were held at the Forum with the representatives of 26 Croatian and 13 Greek companies and institutions from the fields of agriculture, food and beverage industry, construction industry, energy and environmental protection, transport and furniture industry. Also, the Croatian Chamber of Economy and the Athens Chamber of Commerce and Industry signed a Memorandum of Understanding. The goal of this Memorandum

is to strengthen the mutual cooperation between the two chambers, as well as the relations between Croatian and Greek companies through organizing various conferences, seminars, visits of business delegations, economic forums, trade fairs and other forms of promotion that will help companies find new business partners.

The following areas could be the subject of cooperation between Croatia and Greece - agriculture, food and beverage industry, energy, renewable energy sources, wind farms, hydro power plants, environmental protection, infrastructure, IT sector, tourism and wood processing industry.

Are you satisfied with the number of Greek tourists in Croatia? How much is the Chamber involved in the promotion of Croatian tourism?

— According to the Croatian Bureau of Statistics, in 2017, 33,521 Greek tourists visited the Republic of Croatia, which is a slight increase compared to 2016, representing only 0.2% of the total number of foreign tourists. Greek tourists had 66,552 overnight stays, which is a decrease of 1.4% compared to 2016. These figures put Greece at the bottom of the list of EU countries in terms of the number of foreign tourists visiting the Republic of Croatia. However, we should take into account that Greece, like us, is a Mediterranean country of similar climate and traditionally also a significant tourist destination, so we should not expect a drastic increase in the number of Greek tourists. However, the Croatian Chamber of Economy promotes Croatian tourism through numerous events, and we hope that these relatively modest indicators will increase in the very near future.

ECONOMY

POST-CRISIS MANAGEMENT Could life ever be same again?

B

russels, we have a problem! In the world where the euro is fiscally positioned in such a way that it cannot protect smaller EU members and those in crisis, saving and fixing an economy, even the one as prosperous as the Greek, can be a very slow and painful process.

We can go into endless discussions whether or not “OXI” was supposed to be upheld in the referendum, whether the bailout programme was good at all or

where would it lead, or would the re-introduction drachma improve the situation.

Yannis Varoufakis has resigned, leaving his buddy and the Greek Prime Minister Tsipras to fight alone, while explaining why the present north-centric Europe does not function, as evidenced in the case of Italy and the growing dissatisfaction there. Now, we are in the post-crisis management phase that has been yielding results, more or less. Let's examine how Greece fared in all of this.

BAILOUT PROGRAMME AND ITS CONSEQENCES Let’s talk a little bit about official reports or facts and figures, as they say.

There was a 25% drop in Greece's GDP, connected with the bailout programmes.

This had a critical effect: the debt-to-GDP ratio, the key factor in defining the severity of the crisis, jumped from its 2009 level of 127% to about 170%, solely due to the GDP drop (i.e. the same happened to the

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debt). Such a level is considered unsustainable. In its 2013 report, the IMF admitted that it had underestimated the effects of extensive tax hikes and budget cuts on the country’s GDP and issued an informal apology. When a budget is cut down to such a degree, it can hardly have a positive influence. And yet, it seems that Yannis Varoufakis somehow oversaw that the crisis would blow up to such proportions and that the solution was not that easy, as in the case of Ireland, Spain or even Portugal. “Greece will exit bailout in August, but the cruel reality is that an easier rate of repayment subjugates the country until

WE SHOULD NOT WAIT FOR OTHERS TO MAKE THEIR MOVE, BECAUSE OTHERS HAVE THEIR OWN, BAD IDEAS OF HOW TO “SAVE” YOU. YOU HAVE TO DO SOMETHING ON YOUR OWN

2060”, Varoufakis said. A gloomy prospect, isn’t it? Still, eight years after the official bankruptcy, Greece has still not recovered, although it was, once again, declared "a normal country" in August.

European officials, however, were not delighted with the idea of giving in to the Greeks, adamant that they "must win by their own methods", if we were to believe numerous analyses, including the one done by Varoufakis, which is clearly seen in the example of Italy.

The Greeks had direct and quite explosive remarks about Wolfgang Schäuble, angry at the fact that aus-

THE PLAN

GREECE WANTS TO ENCOURAGE THE USE OF CREDIT AND DEBIT CARDS SO THAT CASH FLOWS BECOME MORE TRANSPARENT AND TO REDUCE CORRUPTION AND TAX EVASION 16

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terity measures mean they would not recover for many decades. Then there is Germany, which was forgiven after WWII, but is unforgiving towards others.The PIIGS members are doing better - Portugal, Spain and Ireland have all bounced back. However, there is one crucial exception, apart from Greece, and that is Italy. By appointing Matteo Salvini as the new alternative nationalist leader, Italy is currently, along with the Czech Republic, the only country which would vote LEAVE in a hypothetical EU-membership referendum. Its population believes they got nothing from the EU, and deffinitely lost a lot from introducing euro as currency. When they tried to augment the budget defficit to increase the wages of the poorest and the pensioners, they got a slap on the wrist by Pierre Moscovici and the EU central, thus further increasing the possibility of “Italexit”. And that could be really serious! If any attempt to make things better is met with “stop and don't destabilise the euro”, while we can clearly notice that the Germans are doing much better than the Italians in the current constellation, it could have tragic effects. Of course, we are all hoping that that would not be the case.

However, if Italy takes the same road as Greece did, the recovery is going to be slow indeed. If it decides to be stubborn,

FOLLOWING THE SIMILAR ACTIONS BY THE UK AND GERMANY, THE GREEK GOVERNMENT HAS FORCED SWISS BANKS TO REVEAL INFORMATION ON THE BACK ACCOUNTS OF GREEK CITIZENS it will destroy the eurozone as it is at the moment. According to Varoufakis, the eurozone is such that it takes back the money from European periphery and directs it to Germany and other northern EU members. The estimates show that “unfortunately, all the happy talk about impending “debt relief” and a “clean exit” from Greece’s third bailout obscures an uglier truth: The country’s debt bondage is being extended to 2060."

TAX EVASION AND HOW TO BATTLE IT? Of course, no time should be wasted waiting for a slow solution, in line with the EU rules and the aforementioned,

despised Wolfgang Schäuble. The mentality should be changed too and one of the better ways of doing it is fighting tax evasion. Following the similar actions by the UK and Germany, the Greek government has forced Swiss banks to reveal information on the back accounts of Greek citizens. This is of crucial importance to find out who is taking money out of the country and evading taxes. Also, Greece wants to encourage the use of credit and debit cards so that cash flows become more transparent and to reduce corruption and tax evasion, i.e. the share of shadow economy.

Also, some other concrete measures have been made. In January 2017, "taxpayers were only granted tax-allowances or deductions when payments were made electronically, with a "paper trail" of the transactions that the government could easily audit. This was expected to reduce the problem of businesses taking payments but not issuing an invoice”. Furthermore, companies were forced to install e-payment devices. The results show that “the greater use of cards was one of the factors that had already achieved significant increases in VAT collection in 2016". And that certainly can’t be bad, to quote The Beatles.

We should not wait for others to make their move, because others have their own, bad ideas of how to “save” you. You have to do something on your own.

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ECONOMIC COOPERATION

MEDITERRANEAN SISTERS Hit by crisis, but not giving up

B

oth of our countries have been hit hard by economic crisis, but they turned out to be quite resilient to it. Unfortunately, one thing is “not getting crashed by crisis” and entirely different “recovering swiftly”. The latter is the thing that both of us have to do in the near future. The sooner the better!

LIKE SIBLINGS There are actually no problems, if we don't count the different views of the Balkan policies, which are, despite the fact

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that both countries are NATO members, drastically different. But the similarities are quite striking - both countries lie mainly on the Balkan peninsula (Greece almost with its entire territory, while Croatian Balkans stretch from Novi Zagreb southwards), and we both have “a million” of islands. Southern mentality prevails in many aspects, tourism is the main growing factor and the two countries are main rivals in the business of attracting tourists. The film “Mamma Mia!” is a good illustration of this - Part 1 was shot in Skiathos, Greece, while Part 2 was filmed in Lastovo, Croatia. They

are so similar that the viewers could barely see the difference.

BACK TO BASICS The relations between Croatia and Greece have been regarded as excellent with a strong economic, tourist and political cooperation between the two countries, further enhanced by Croatia's accession to the European Union in 2013.

Croatia and Greece have been cooperating in tourism with a significant tourist exchange. Approximately 16,000 Croa-

tians visited Greece in 2012 and in 2006, 7,000 Greeks visited Croatia, an increase from 2005 when 5,000 Greeks visited Croatia. In 2012, the Commercial and Consular Attaché of the Embassy of the Croatia in Athens, Ana-Marija Muselimović confirmed that all relevant agreements regulating economic cooperation and transport between Greece and Croatia had been signed and were in force, as well as that the trade between the two countries was capable of further growth. The main segment of trading between Croatia and Greece is based on the number of orders for ships to be built by Croatian shipyards for Greek shipowners. That is, at least, what the official data says. The following is our own overview.

ECONOMIC CRISIS AND ITS AFTERMATH The global economic crisis did not thread lightly on any of the two countries.

Their economies were violently shaken, especially the Greek one. The road to recovery was long and arduous. During 2017, the value of the trade betwen the two countries amounted to 145 million euro, and in the first six months of this year, it recorded a 23% increase, which is a big encouragement, bearing in mind the good news that Greece has stopped implementing the strict austerity measures and continued with the milder ones. A good indicator is the Croatian exports to Greece which rose by 13 percent in 2017 relative to 2016.

However, there is a strong imbalance in investments - namely, Greek investors have invested EUR 33.8 million in Croatia, mostly in construction, and it is quite wor-

rying to see that there hasn't been one serious Croatian investment in Greece.

This imbalance has to be corrected which is something that the Croatian Chamber of Economy is working on.

GREEK-CROATIAN BUSINESS FORUM The Greek-Croatian Business Forum was created to that very end, i.e. creating a platform that will facilitate business people in entering new markets. The Forum is the place where the Croatian Chamber of Economy and the Athens Chamber of Commerce and Industry singed a memorandum of understanding.

“Greece's economy has stabilized, we are conducting structural reforms, and the main emphasis is on investments.

Before we turn to the world, we need to bolster the relations in the region, first

IT SEEMS THAT DARK CLOUDS ARE MOVING AWAY FROM THE SUNNY SOUTH. LET'S HOPE THAT IS TRUE politically, then economically. We are not going to see the results straight away, but we need to create a solid foundation that we are going to build on, "said Ioannis Brachos, Secretary General of the Department for International Cooperation and Economic Relations of the Greek Ministry of Foreign Affairs.

The Greek Ambassador to Croatia,

H.E. Mr. Stavros Tsiepas had the same message. He said that in order to have an even better regional cooperation, the „empty EU space“ that currently exists between Croatia and Greece has to be filled soon. He also wished for „all regional countries that are not EU members, to become one as soon as possible“, adding that Croatia and Greece had to help the most with that. „In terms of the economic cooperation between Greece and Croatia, I can say that it is solid but there is room for improvement. Greek companies are definitely interested in the Croatian market“, Mr. Tsiepas said.

Stavros Georgakis, a member of the Executive Board of the Athens Chamber of Commerce and Industry, underlined that many investment opportunities were opening up in the recovered Greece and that the Greek market was ascending.

In 2017, the economic growth in Greece stood at 1.4 percent. The value of Croatia's exports to Greece last year amounted to 60 million euro, while Greece's import from Croatia stood at 84.6 million euro.

The most important Greek export products in trading with Croatia are footwear, citrus fruits and clothing, while Croatia exports to Greece mainly sugar, iron scrap, socks, fertilizers and medicines.

The areas with the greatest potential for better cooperation are agriculture, food and beverage industry, energy, environmental protection, shipbuilding, construction and transport infrastructure. There is also tourism, of course, as well as Croatian and Greek business partners jointly entering third markets.

It seems that dark clouds are moving away from the sunny south. Let's hope that is true.

HEADLINE

DURING 2017, THE VALUE OF THE TRADE BETWEN THE TWO COUNTRIES AMOUNTED TO 145 MILLION EURO GREECE 2018

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CORPORATE

Complete

CUSTOMER SERVICE ALEXANDROS I. FOURLAS BoD Vice Chairman, Goldair Handling S.A.

Goldair Handling is one of the leading ground handling service providers in South East Europe, offering a full range of passenger, ramp, aircraft, cargo and mail services

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„W

e had been observing the Croatian market for many years, and the conditions to come to this market became right for us in 2017,“ says Alexandros I. Fourlas, BoD Vice Chairman of Goldair Handling S.A.

What is the potential of the regional market in terms of your services?

— Goldair Handling is one of the leading ground handling service providers in South East Europe, offering a full range of passenger, ramp, aircraft, cargo and mail services. Today, Goldair Handling operates in 26 airports in Greece, 3 airports in Bulgaria through its subsidiary Goldair Handling Bulgaria and 2 airports in Cyprus through the affiliated Louis-Goldair Services (LGS).

Moreover, our company provides ground handling consulting services to a number of clients, e.g. in Ethiopia and Oman. This year, 2018, was the year of unique growth for Goldair Handling: we are serving over 148,000 flights (8.4% growth) and 34 million passengers and we had a total of 4,500 employees in the summer.

IN NUMBERS

Goldair Handling operates in 26 airports in Greece, 3 airports in Bulgaria and 2 airports in Cyprus

PROMISING POTENTIAL We are developing in the markets with stable economies and institutions, growing tourism and transport sectors, and legal frameworks which support investments and employment. We seek to expand our presence in S.E. Europe, utilising our strategic position in tourist markets which are interlinked. In this way we are adding value to our stakeholders: airlines, airports, government authorities, local economies and the people.

We are convinced that Croatia is a unique place to establish our presence next. It has three fast developing airports - Zagreb, Split and Dubrovnik - all of which are of a substantial size with more than 2.5 million passengers annually. The airlines flying to these airports are present in S.E. Europe and there are opportunities for synergies. The modernisation and expansion of the airports along with significant tourist and business development of the respective cities are expected to generate even larger traffic in the next decade. This is going to benefit all airport stakeholders and the country itself.

Moreover, all three airports - Zagreb, Split and Dubrovnik -need to provide access to private ground handlers in 2019, in line with the EU framework, the Croatian regulation and the government’s strategy.

How do new development trends in local and regional airports affect the demand for your services?

— In the last few years, the aviation industry has been going through significant, continuous changes involving the introduction of new technologies, innovative solutions and improvement of service levels. These changes are a result of regulation, environmental footprint reduction and a continuous drive for improvement and productivity enhancement. While always aiming to be on top of these trends, we: • Constantly invest in new technologies (equipment, GPS systems, integrated HR management and real time allocation systems, integrated Quality Management software etc.), • Follow up closely industry changes and inovations (self baggage drop-off, e-gates, etc.) and constantly update our operational procedures and training programs for this purpose, • Invest in more enviromentally-friendy

ground handling equipement, to meet the ever increasing upgrade of airport services, in line with our Corporate & Social Responsibility programme, • Continuoulsy upgrade our services (e.g. design, management and operation of luxurious airport lounges).

What are the specifics of the Croatian market? What is your position in it?

— We have evaluated the sustainable growth of the airports and the interest of the Croatian Authorities and the government to attract private investments.

We studied the legal framework & regulations, and held numerous meetings to

DEVELOPING

We are developing in the markets with stable economies and institutions, growing tourism and transport sectors, and legal frameworks which support investments and employment understand the business environment, key issues and prerequisites for ground handling. We built a strong team of experts to complement our experienced business development team and in June 2018, we obtained CCAA’s approvals for ground handling services in the three airports.

Next step is to be granted access to these airports, and to base our people and equipment there. This will allow us to: • invest in specialised machinery, equipment and business systems, • hire local people and train them for safety, security & operations.

We are working closely with the airports, the Ministry of Sea, Transport & Infrastructure and CCAA for the purpose of ensuring access permission. This is probably the most critical goal for us in Croatia.

We hope that, with their support, we will be able to launch operations in the first couple of months of 2019.

What are the main driving forces behind your services in Croatia - tourism, business development or other market developments?

— It is of vital importance that the country systematically builds its international profile as a stable and reliable business & investment location, highlighting its unique advantages and attractions. We want to endorse Croatia’s efforts by bringing in investments, the specialized knowhow, an international network of partners and the proven reputation for offering high quality services, thereby supporting the airports’ attractiveness. Tourism is a very dynamic sector in the economy which drives airport traffic now and in the future, together with an attractive business environment. Also, it is important to note that airports will open access to the private sector, which will lead to higher airport traffic and employment. Hence, the introduction of a competitive market environment benefits everyone.

How much did Goldair Handling invest in Croatia, and what are your plans for the future?

— The company's investments to date involve the establishment of a Croatian legal entity, the preparation of certified operation manuals and procedures, and numerous working hours.

The next phase (beginning of 2019) will involve the investment of between 3 and 4 million euro in specialized equipment, IT systems & infrastructure, as well as the hiring of 45-60 staff. These figures are rather basic and they will be increased in next 2-3 years onwards.

Human capital is a key factor in providing quality of ground handling services.

— How do you ensure that your staff is able to meet daily challenges?

Our people are our strength. Without them we would not be where we are today and with them we will advance even further. The careful selection of our employees – partners is guaranteed as early as the first interview stage. Our people strategy is in line with the top-end industry and regulatory requirements and puts emphasis on life-long training and constant development of individual skills, to ensure the high quality of our services. This is further shown through numerous airline awards and excellent results we have achieved in continuous audits of our operational readiness carried out by airline companies and international organizations.

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CORPORATE

Healthy and Sustainable

COMPANY GROWTH DANIEL DRENŠKI Country Manager Hertz Croatia

We are certainly among the leading car rental companies in the region

I

n an interview for InFocus Greece, Country Manager Hertz Croatia, Daniel Drenški says that the company renews its extensive fleet of vehicles every 6 months because quality and customer safety come first.

What are the key features of the Croatian market in terms of competition and the type of services that you provide?

— The specificity of the car rental market in Croatia lies in its link to tourism, hence the business is mostly seasonal. We offer short- and long-term rentals, rental of cargo and luxury vehicles, and a rental service with a driver. We provide our customers, whether private or business, with the highest level of service quality at the best prices.

How well is Hertz Croatia positioned relative to other regional markets?

— Our individual strength, in combination with the fact that we operate under the Autohellas Group, and our experience and a

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wide international network ensure sustainable and healthy growth of our company.

We are certainly among the leading car rental companies in the region.

Tell us something about your fleet and how often do you renew it?

— We have a fleet of 1,600 vehicles and we renew it every 6 months.

IN NUMBERS

Hertz Croatia has a fleet of 1,600 vehicles How flexible are you in terms of the needs of business sector?

— We offer business solutions such as managing the fleet and a possibility of reserving our vehicles in over 150 countries. Every element of our rental system is geared towards providing the required services

and continous support, as well as dispensing advice to business clients. Our focus in on close cooperation based on partnership that surpasses existing business framework.

How much did digitization change your operations?

— Digitization has certainly brought about many positive changes and facilitated the process of reserving vehicles for our customers, as well as reducing a better part of the paperwork and thus simplifying our business as well.

What are your plans for 2019?

— Our plans for 2019 are optimistic. We expect to see an increase in our rent-acar fleet, and expanding our offer to other cities in Croatia, both in terms of tourist and business rentals. We want to take advantage of new market potentials and we are confident that we will become even more successful in the ever growing competition of the major rental companies.

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TRADITION

DEMOCRACY FOREVER Because they invented it, that's why

T

he word “democracy” even sounds Greek. Regardless of a crisis that this country might find itself in, it is very easy to imagine masses of people in the streets demanding democracy, and the reason for this is that it was the Greeks that actually invented the term.

Or Athenians, to be more precise. The Greeks also invented a whole series of different governance styles or at least, they practiced them. They had the Greek poleis, autocracy and military junta, based on the brotherhood of warriors and slaves like in the film ‘300’ (“This is Spartaaa!” is a shout even used by Novak Djokovic and Gerard Butler nowadays), which all may sound romantic, but it actually was not. There was also theocracy reflected in the thousand years of Byzantine rule where, just like an-

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ywhere else in medieval times, everything was resolved by an emperor, patriarch and head of the army. However, there is one noticeable difference – all other neighbouring countries, from Persia, which was multi-ethnic, a big accomplishment back then, to Egypt and further on - were classical

THERE IS NO BETTER GOVERNANCE SYSTEM OUT THERE AND IT IS UP TO YOU TO PICK WHAT KIND OF DEMOCRACY SUITS YOU THE BEST. AND WE HAVE TRIED MANY OF THEM

states with one ruler that was not elected and the rest were his subjects. Regardless of how faulty the Athenian democracy was, they were the first who came up with the idea that a ruler can be elected, a notion that was so shocking to their neighbours at the time. Or the notion that the ruler can be removed from the power through ostracism and even banished from town…

DEMOS + KRATEIN You might wonder why did we use the word “faulty” to describe the Athenian democracy? Even Plato, in his masterpiece “Republic”, in which he talks about the perfect governance system, did not even think to have “the unimportant ones”, meaning slaves, women and foreigners (non-Athenians), participating in the gov-

ernment. Oftentimes, contemporary analysts, like Karl Popper, an advocate of the open society theory, fall into a trap of criticizing societies from the past from the current perspective. Luckily, not all of them are capable of interpreting the Athenian society as undemocratic. The operative words here being “relative to that time”.

The term “democracy” was invented in ancient Athens in 5th century BCE. The term itself is derived from the words demos – people and kratein – rule. The ancient Greeks used the word democracy to describe the governance of many as opposed to the governance of the few.

The Athenian state is not really considered a good example of a system that corresponds to today’s notion of democratic rule. Still, many don’t see Athens as true democracy considering that only a small segment of the population was allowed to vote, while women, slaves and foreigners were not (referring to our good old Popper again).

Only around 16% of the total population had the right to vote, but please bear in mind that, unless you were a member of some northern barbaric tribe, nobody ever had the right to vote. Sorry, we stand corrected. One person had that right. In Athens, decisions were made as a result of voting, instead by elected representatives, as it is the case in modern day democracies. Many say that the oligarchy ruled in ancient Greece.

In time, the meaning of the term democracy has changed, with notable changes to the definition happening from 18th century onward, namely when various states started implementing various “democratic” systems.

Modern democracy can be defined as a

governance system where the ultimate political power or sovereignty belongs to the people either directly or through elected representatives. We now have many kinds of democracy - a liberal democracy, which has been vocally advocated by The Economist for 150 years, something called non-liberal democracy, which is Viktor Orban’s favourite and social democracy,

REGARDLESS OF HOW FAULTY THE ATHENIAN DEMOCRACY WAS, THEY WERE THE FIRST WHO CAME UP WITH THE IDEA THAT A RULER CAN BE ELECTED, A NOTION THAT WAS SO SHOCKING TO THEIR NEIGHBOURS AT THE TIME which functions on Viking principles of the egalitarian nature of the warriors, that is widespread in Scandinavia (logically), and many others. Even the German Democratic Republic was proud to have the word “democratic” in its name only because it was an electoral state. During my studies in Spain, I tried to explain to my Western friends why the GDR dared to use the words “democratic republic” in its name.

If we look at the parliaments of today's states, they are dominated by lawyers, economists and the like, all loyal members of their parties and voted for in differ-

ent locations in the country. Is this democratic? Yes, it is. But in socialism, we also wanted all social strata to be represented. For example, all workers in a factory used to gather to choose their representatives. The same was true for all farmers, all doctors, and so on. Of course, they were loyal to the Party, of which there was only one, but more attention was paid to social strata than to the colours of the flag.

LET'S TAKE TO THE STREETS It is precisely because of the profoundly Greek nature of democracy that we can always imagine people demonstrating in the streets in Greek cities. Let's imagine how strikes can paralyze the country, regardless of their horrible consequences, particularly in summer. Let’s imagine rebellion, because the Greeks are rebellious and even if they have no influence on decisions made by authorities, they still want their voices to be heard. This is also the reason why the Capitol Hill and the Vienna Parliament and many other buildings, like the Bolshoi Theatre, were built to resemble the Acropolis. Although, the Acropolis was the place of worship, the symbolic Greek architecture and its culture, became a trademark of democracy, because it was the Greek that invented it, despite its flaws. There is no better governance system out there and it is up to you to pick what kind of democracy suits you the best - liberal, non-liberal, socialist like in the DDR or the SFRY, or a direct democracy, exercised the Althing in Iceland, where the warriors gather to make decisions. We did try having other systems too, but they have all always collapsed in a weird manner.

DEMOCRACY

THE TERM “DEMOCRACY” WAS INVENTED IN ANCIENT ATHENS IN 5th CENTURY BCE. THE TERM ITSELF IS DERIVED FROM THE WORDS DEMOS – PEOPLE AND KRATEIN – RULE GREECE 2018

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CULTURE

FETA + OUZO The combination of your dreams

O

uzo, goes by a different name here and in Bulgaria - Mastika.

The Greeks call it ούζο, and by definition it is actually “a dry anise-flavoured aperitif that is widely consumed in Greece, Cyprus, Lebanon, Bulgaria and Israel.” Its taste is similar to other anise liquors like rakı, pastis and sambuca. Ouzo was derived from another drink called tsipouro, and people often mix these two as being the same. Even at the risk of making the Greeks angry, mistaking the first one for the second is not such a big deal if you have never tried either. They say that the monks from Athos made tsipouro in the 14th century, and that, in the end, a version of tsipouro was named ouzo. Re-

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gardless… Ouzo is often criticized as being too sweet and generally liked by women (instead of being heroically bitter or hot like our rakija, whiskey etc.). It is ideally

FETA GOES WELL WITH OUZO AND IT HAS A REFRESHING EFFECT DURING HOT. EAT IT IN WINTER TOO, BECAUSE IT IS HIGH IN CALORIES AND WILL WARM YOU UP

consumed both in summer and winter. In summer, it refreshes you when all other alcoholic drinks make you sweat, and in winter, in warms you up. Ouzo magically transforms from a clear drink into a cloudy and non-transparent one, resembling milk, when added water. I think I could literally watch this process for hours. I mean, for hours!

HISTORY OR SEVERAL VERSIONS OF IT Here a few historical details. The modern ouzo distillation “largely took off in the beginning of the 19th century following Greek independence. The first

ouzo distillery was founded in Tyrnavos in 1856 by Nikolaos Katsaros, giving birth to the famous ouzo Tyrnavou”. When absinthe fell into disfavour in the early 20th century, ouzo was one of the products whose popularity rose to fill the gap; it was once called "a substitute for absinthe without the wormwood". The name ouzo makes for a really fun wordplay in the Croatian language - “Ja bih uz'o jedan uzo”. Literally, it means “I would have an ouzo”. Also, in Italian, uso means “use”.

Maybe the word originally comes from Italian? The origin of the name "ouzo" is disputed. A popular derivation is from the Italian "uso Massalia"—for use in Marseille— and stamped on selected silkworm cocoons exported from Tyrnavos in the 19th century. An anecdote says that this designation came to stand for "superior quality", which the spirit distilled as ouzo was thought to possess. Of course, the Greeks were so proud of it and protected its name. On October 25th, 2006, Greece won the right to label ouzo as an exclusively Greek product. The European Union now recognizes ouzo, as well as the Greek drinks tsipouro and tsikoudia, as products with a Protected Designation of Origin, which prohibits European makers other than Greece and Cyprus from using the name.

FETA

During the 1990s war, various countries were sending humanitarian aid here, including Greece and Denmark. Often times, the humanitarian packages included feta, a hard, salty cheese originating from Greece. Maybe this sad period in the history of our country contributed somehow to the popularity of the feta

cheese, or maybe it is holidaying in Greece from the year 2000 onward, when Greece became popular destination for regional and East European tourists as our standard of living has risen and the region got politically calmed down. Anyhow, many dairies in Croatia started to produce feta which became a staple in the Croatian

OUZO MAGICALLY TRANSFORMS FROM A CLEAR DRINK INTO A CLOUDY AND NONTRANSPARENT ONE WHEN ADDED WATER. IN SUMMER, IT REFRESHES YOU WHEN ALL OTHER ALCOHOLIC DRINKS MAKE YOU SWEAT, AND IN WINTER, IN WARMS YOU UP cuisine too. Just like with ouzo, the Greeks were also adamant to protect the word feta with success. Since 2002, feta has been a protected designation of origin product in the European Union. According to the relevant EU legislation, only those cheeses produced in a traditional way in particular areas of Greece, which are made from sheep's milk, or from a mixture of sheep's and up to 30% of goat's milk from the same area, can be called feta. And this is when the dispute with the aforementioned Denmark started since feta is considered almost a national

cheese there too. After a long legal battle with Denmark, which produced a cheese under the same name using chemically blanched cow's milk, the term "feta" has been a protected designation of origin (PDO) since October 2002, which limits the name "feta" within the European Union to brined cheese made exclusively of sheep's or sheep's and goat's milk in Greece. And everybody else who, up to that point had been producing Feta, had to remove the word itself from the packaging. Of course, in lieu of feta, new names were conjured up but to no avail – everybody still calls this kind of cheese feta.

Just like with many things in the Balkans, the feta cheese is consumed in all other, neighbouring countries, under different names and variations. When you live on a territory that is so culturally mixed, there is no such thing as “original”.

IDEAL MEZZE Anyhow, feta makes for an ideal appetizer. And it is salty enough to make you drink something. Although, traditionally, original feta is supposed to be made only from sheep’s milk, many people have distaste for it, hence feta is now available in several different variations, both here and in Denmark. Feta is an ideal addition to salads, because it gives the much needed aroma to tasteless plants. It goes fantastically well with ouzo and it has a refreshing effect during hot summer days. It is also great to consume in winter, because it is high in calories and will warm you up. If you take it with ouzo, you will feel as if you are still in Greece, long after you have returned from your Greek holiday.

EFFECT

FETA GOES WELL WITH OUZO AND IT HAS A REFRESHING EFFECT DURING HOT. EAT IT IN WINTER TOO, BECAUSE IT IS HIGH IN CALORIES AND WILL WARM YOU UP GREECE 2018

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TOURISM

GREEK G ISLANDS The archipelago of dreams

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reece is a country of a thousand islands, just like Finland is a country of a thousand lakes.

If you decide to visit a different Greek island every year, you are definitely going to fail. And let’s not even talk about the rest of the coastline or the entire Greece.

Greece has close to 6,000 islands, a quite impressive number which is almost 5 times the number of islands that the no.

2 holiday destination, Croatia has – 1,244.

These two countries are heaven for people who like a rugged coastline. And ferries…

And hidden beaches… Out of the men-

tioned number, only 227 islands are populated, while the rest are very small, uninhabited islands. This is a truly unique phenomenon for the European continent – says the Visit Greece website and we fully agree. Of all inhabited islands, only 78 have the population of over 100. The Greek islands are traditionally grouped into the following eight clusters: the Argo-Saronic Islands in the Saronic gulf near Athens; the Cyclades, a large but dense collection occupying the central part of the Aegean Sea; the North Aegean islands, a loose grouping off the west coast of Turkey; the Dodecanese, another loose collection in the

southeast between Crete and Turkey; the Sporades, a small tight group off the coast of Euboea; and the Ionian Islands, chiefly located to the west of the mainland in the Ionian Sea. Crete with its surrounding islets and Euboea are traditionally excluded from this grouping.

WHY ISLANDS? The simple answer might lie in the fact that islanders have a completely different mentality. People say that the weirdest food recipes come from Sardinia, which is an island. Islanders also have a closed-up personality but are also quite forthcoming, paradoxically enough. How so, you might

THERE IS A SAYING THAT GOES “IF YOU REMEMBER YOU’VE BEEN ON IOS, THEN YOU HAVE NOT BEEN THERE AT ALL”, BECAUSE BEING THERE SEEMS LIKE A VISION ask? Well, they have been preserving their customs far away from the prying eyes of foreigners and foreign influence, and yet their livelihood depends on sailing, i.e. travelling to foreign countries and being submitted to foreign influences. They say that the originality and slight “weirdness” of the British, Irish, Japanese and Icelanders, to mention just a few, are the result of exactly that – the fact that islanders are just different. On the other hand, you

can imagine how different are the cosmopolitan Thessalonians, with their Jewish, Turkish, Aromanian and Slavic fellow citizens who have been living with them for centuries, compared to the Greeks living on the islands who have not experienced much of foreign influence.

And then, there are natural attractions like beaches. The Greek Archipelago takes up 7,500km of the country’s total 16,000km coastline, offering a highly diversified landscape: beaches stretching over many kilometres, sheltered bays and coves, sandy beaches with sand-dunes, pebble beaches, coastal caves with steep rocks and dark colored sand typical of volcanic soil and coastal wetlands. Bitna je i kultura. Some of the oldest European civilizations developed on the Greek islands (Cycladic, Minoan civilizations, etc.), so therefore the islands have unique archeological sites, a distinctive architectural heritage and the fascinating local traditions of a centuries-old and multifaceted civilization.

WHO IS THE MOST POPULAR? The Greeks say that people who come to Greece are pretty unusual. Those who come from afar, go the distance when in Greece. For example, if the Danish or Dutch tourists arrive here by car or a camper van, they usually go to the furthest destinations like Rhodes, Crete or Peloponnese. Those who don’t travel great distances, like the tourists from Croatia or Bulgaria, usually pick the destinations that are nearest to them – Thassos, the Olympic region, Corfu and other Ionian islands, or Parga.

The most popular Greek destinations among the Croatian tourists are definite-

FILM

SKOPELOS GAINED A WORLDWIDE POPULARITY AFTER THE FIRST MAMMA MIA! FILM WHICH WAS FILMED THERE GREECE 2018

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ly Thassos in the Aegean Sea, which is also called a little green oasis in the Aegean region, but also the Ionian islands of Kefalonia, Corfu, Zakynthos or Lefkada. The history of the Ionian islands is a bit different to the history of other Greek islands (well, not all of them), because these islands had experienced a strong Venetian / Italian influence since they were located in the zone that was of interest to the Venetian Republic. Later, the British took over the seven of the Ionian islands as a “guardian colony” and subsequently, gave over the islands, in “good faith”, to the new Greek Republic. By doing so, they bolstered the Republic’s position while leaving a small but indelible trace on these islands.

But, let’s explore further!

Perhaps the most beautiful cluster of islands, and least known to Croatians, is the Cyclades. Apart from, of course, Santorini and Mykonos, which have positioned themselves long time ago as elite tourist destinations, there is also Amorgos. This is the easternmost island of the Cyclades island group, and the nearest island to the neighboring Dodecanese island group in Greece.

Do you like the colour blue and Luc Besson? If you do, then you have probably seen Amorgos already with its whitewashed houses and windmills, similar to those in Mykonos. The island was featured in Luc Besson's film The Big Blue.

Agia Anna and the monastery of Panagia Hozoviotissa can also be seen in the film.

If you love the Dodecanese and colourful islands, in contrast to the dominant whiteness of other islands, then you should definitely visit Symi. The island has become

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DO YOU LIKE THE COLOUR BLUE AND LUC BESSON? IF YOU DO, THEN YOU HAVE PROBABLY SEEN AMORGOS ALREADY BECAUSE THE ISLAND WAS FEATURED IN LUC BESSON'S FILM THE BIG BLUE a haven for tourists from abroad, especially the British and Italians, and as a typical characteristic we can list the houses in vibrant colours of yellow, orange and blue.

Of course, there is Ios. It is often referred to as the "the youth island” or "the party

island" or the Ibiza of the eastern Mediterranean. There is a saying that goes “if you remember you’ve been on Ios, then you have not been there at all”, because being there seems like a vision.

Tourists on Ios usually go to the beach at four o’clock in the afternoon (well, as of recently, that is not completely true since there are a few family-style apartments and hotels under construction). Everybody’s is fast asleep for the most of the day after a long night of partying which is something that this island is famous for. Pitty, because Ios does have beautiful beaches too. Back in 1970, hippies discovered the Mylopotas beach and ever since then, Ios has been a favourite destination of young people. Of course, if you are interested in the ancient Greek culture, than Rhodes would be more your cup of tea (they say that the Greeks might rebuild the Colossus of Rhodes, but nothing is happening as yet). Plus, you should also visit the island of Crete, the centre of the Minoan civilization. If we are talking about Ionian islands, Lefkada is, unfortunately, the least discovered one. This island is known for its fantastic beaches. Andros and Euboea, with the latter marketed in Croatia as Evvia, are typical summer resorts for Athenians just like Skopelos which gained a worldwide popularity after the first Mamma Mia! film that was filmed there. The sequel was filmed on the Croatian island of Vis. To be honest, the people of Vis are also tired of the invasion of tourists who have just discovered the island. But that’s typical of today! And films contribute a lot to it…

Just like books, back in the day.

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