In Focus Italy by Diplomacy&Commerce magazine

Italy 2019

ITALY & SERBIA

140 YEARS OF FRIENDSHIP SINIÅ A MALI

H.E. CARLO LO CASCIO

GIORGIO AMBROGIO MARCHEGIANI

Minister of Finance in the Serbian government

Italian Ambassador to Serbia

President of the ItalianSerbian Chamber of Commerce and CEO DDOR insurance part of UNIPOL Group

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Dear readers, dear friends, For the fourth time, in front of you is special publication dedicated to the bilateral collaboration between Italy and Serbia, proudly prepared together with our member, Diplomacy&Commerce. It is my pleasure to thank all those who have contributed to the success of this edition, especialy to our members, Italian Embasy in Belgrade, Institutions and partners, with witch the Chamber has been fostering a good collaboration for years. Mirjana Kojić The Secretary-General CCIS

Dear readers, In the year when Italy and Serbia are celebrating 140 years since the establishment of diplomatic relations and a decade of strategic partnership, we have prepared for you the fourth annual publication ‘In Focus Italy’, where you can learn more about the overall bilateral relations between the two countries through interviews with senior Italian and Serbian officials. To illustrate just how developed the cooperation in all segments between the two countries is, let’s just mention the fact that Italy is one of the most important external trade partners of our country. In this issue, the representatives of Italian companies operating in Serbia present their activities, comment on the business climate, and give suggestions on how to further improve investment environment. We have also tried to bring closer to you the Italian culture, tradition, tourism and other interesting things that you may not know about Italy but from a different angle. We hope you enjoy the content we have prepared for you. Tanja Banković Editor-in-Chief

COUNTING ON ITALY THE LIMIT FOR OUR 06 WEAS OURARESINCERE 18 SKY'S FRIEND RELATIONSHIP SINIŠA MALI

Minister of Finance in the Serbian government

WILL BE SERBIA’S 10 ITALY AMBASSADOR TO THE EU H.E. CARLO LO CASCIO

Italian Ambassador to Serbia

“THE DOOR IS OPEN” AND THERE IS AN INTEREST FOR SERBIA GIORGIO AMBROGIO MARCHEGIANI President of the Italian-Serbian Chamber of Commerce and CEO DDOR insurance part of UNIPOL Group

TANJA BANKOVIĆ Editor in Chief

MATTHIAS CLAIVAZ

First Secretary, Head of Economic, Trade and Scientific Cooperation Unit, Embassy of Italy in Belgrade

HAVE ALWAYS BEEN 22 WEALONGSIDE ITALIAN COMPANIES MIRJANA KOJIĆ

The Secretary General CCIS

EXPERIENCES OF ITALIAN CUSTOMS ARE IMPORTANT TO US

MILOŠ TOMIĆ

Acting Director General of the Customs Administration

NATAŠA NEŠIĆ

Advertising director

Culture

Tourism

GORAN ZLATKOVIĆ Translation

ILIJA PETROVIĆ INDIGOCHILD”

JELENA RANDJELOVIĆ

ROBERT ČOBAN

Art director

Education

Photos

RUŽA RISTANOVIĆ

Advertising manager

UNIVERSITY 40 THEOF THEFIRSTWESTERN WORLD FOR NEW 42 LABORATORY DESIGN IDEAS REAL MOTIVE POWER 48 THEOF ITALY

Advertising manager

JOVANA MARKOVIĆ Advertising manager

CCIS Activities

DRAGANA RADOVIĆ

SANJA ŠOJIĆ Journalist

TAILOR-MADE ACTIVITIES 32 TO THE NEEDS OF ASSOCIATES

Magazine director

Director

Special thanks to

MIRJANA KOJIĆ

SNEŽANA BJELOTOMIĆ

Embassy of Italy

ZLATNA KNJIGA Jagodina

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02 CALCIO

Soccer is Italy's most popular sport, and the famous San Siro Stadium in Milan holds 85,000 people. Calcio means soccer in Italian. Inter, Milan, Lazio, Roma and Juventus are just some of the Italian soccer teams that are favored by Italians. Italy has won the World Cup four times, making the country's team second only to Brazil's number of wins.

01 OPERA

The world's first operas were composed in Italy at the end of the sixteenth century. Opera reached the height of popularity in the nineteenth century, when the works of Gioacchino Rossini, Giacomo Puccini, and Giuseppe Verdi became very popular.

06 ESPRESSO

No wonder why Italians love caffeine, the espresso machine is an Italian invention built by Angelo Moriondo in 1884.

05 FONTANA DI TREVI

No trip to Rome is complete without a visit to the Fontana di Trevi, or Trevi Fountain. Located in the Quirinale district of Rome, the Trevi Fountain is known as one of the most stunning fountains in the world. Every year tourists throw approximately 1.1 million euros into the Trevi Fountain in Rome.

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03 TOP OF EUROPE

The highest peak in Europe is in Italy. Monte Bianco (White Mountain) is 15,771 feet high and is part of the Alps.

04 WINE

Unsurprisingly, Italy is the world's largest exporter of wine. However, it is the second largest producer of wine after France. There is a free 24-hour red wine fountain in central Italy. It was built in 2016 by a local winery in the village of Caldari di Ortona.

07 SECRET OF THE FLAG

The colors of the Italian flag - green, white, and red - have a special meaning. Green represents hope, white represents faith, and red signs charity. Another interpretation is that the green represents the Italian landscape, white represents the snow-capped Alps, and red represents the bloodshed that brought about the independence of Italy.

08 CHEESE

Parmesan cheese originated in the area around Parma, Italy. Italians also created many other cheeses, including gorgonzola, mozzarella, provolone, and ricotta.

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WE ARE COUNTING ON ITALY AS OUR SINCERE FRIEND SINIŠA MALI

Minister of Finance in the Serbian government

Italy is certainly one of the leading economic partners of our country and is one of the most important export markets for Serbian goods

n this interview, the Serbian Minister of Finance, Siniša Mali talks about the business environment in Serbia, the European integration process and the importance of Italian investments for our country. He points out that the Italian investments are extremely important for our economic growth and hope that they will be more of them. "Official figures corroborate this. In the period from 2008 to 2018, Serbia's export to Italy increased 2.6 times and import 1.4 times. The export to import ratio jumped

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from 51% to 97%. Italy has been doing business in Serbia for many years now. There are over 400 companies here owned by the Italians, and about 1,300 in which the Italians have an ownership share. Cumulatively, they employ more than 26,000 workers," Minister Mali says in the interview for InFocus Italy. In May this year, the Finance Ministry delegation met with the International Monetary Fund (IMF) delegation, led by Jan Kees Martijn. Could you tell us what was concluded and agreed?

 The most important thing is that Serbia's excellent economic results have been validated, which we have achieved through serious and courageous reforms. The IMF and the World Bank have estimated that our GDP will increase by 20% over the next four years. The goal is to achieve an increase of 7%, as this means a better living standard for Serbian citizens. During its visit, the IMF confirmed the projected GDP growth rate of 3.5% for this year and 4% for the next year. Also, we talked with the IMF delegation about the

and a detailed presentation of structural reforms that should contribute to boosting the competitiveness of the national economy, increasing economic growth and development, creating new jobs and creating conditions for a better life of all Serbian citizens.

future indexation of pensions, which is only part of the new fiscal rules that we have been working on. By the next meeting with the IMF mission, which is due to take place in late September or early October, we are most likely to adopt the Swiss model for the pension indexation, because it is the best and most suitable for our elderly fellow citizens. This model implies that pensions are adjusted in relation to the level of inflation and salaries in the private sector, in the 50:50 ratio. We also discussed with the IMF the reform of civil servant salaries, and I expect that the reform will have been fully implemented by mid-next year. Development of capital market was also one of the discussed topics. By the end of this year, we expect to adopt several key laws regarding market and development financing, because, by doing so, we are trying to create bigger opportunities for strengthening our economy. Another topic that we discussed was reforming the Tax Administration, as well as the new Capital Investment Commission, which was recently established, and is a very important subject for the further development of Serbia.

When is online fiscalization going to happen? How big of a cost will that be for shops?  Fiscalization is one of the Ministry of Finance's priorities, which is the reason why we are working hard on preparing the draft version of the Law on Cash Registers and relevant by-laws. We are currently analyz-

ITALIAN COMPANIES ARE ONE OF THE BIGGEST EMPLOYERS IN SERBIA ing different models in order to find the best possible solution. Our aim is to ensure the implementation of modern technical solutions that will enable the competent authorities to monitor the generated turnover through the fiscal cash register online, and in real time. Among other things, this is required for a more resolute fight against the shadow economy.

Could you tell us something about the Economic Reform Programme (ERP) that will cover the period by the year 2021? What can we expect from it?  This is a strategic document covering the 2019-2021 period, which helps us, as a candidate for EU membership, to prepare for the participation in the process of economic and fiscal supervision of EU member states. The aim is to reduce the development gap between the domestic and European economy. The programme contains a medium-term macroeconomic framework, as well as a fiscal framework that includes ancillary fiscal policy measures

Enterprises

What has been done so far on combating shadow economy, and what is yet to be done?  The aforementioned online fiscalization is just one way to stop the shadow economy, which we have been fighting against for decades. We need to provide better super-

vision and adequate penalties, but also the relevant measures should not be too repressive because that gives only short-term results in, which is not enough. Reducing the shadow economy, in the long run, can only be accomplished through planning and implementing systemic solutions. The programme we have created may be too ambitious, but we will try to reduce the turnover generated by the shadow economy by about 200 million euro in the next year and to transition 11,000 workers and 9,000 companies from operating in the shadow economy to legal business. Above all, we are going to work unburdening the economy, by reducing the tax burden on salaries, which is going to boost the growth and creation of new jobs. We will do our best to make Serbia a country in which legally doing business is the only right, easiest and most cost-effective option and where the conditions and rules are the same for all. The new EU budgeting system, covering the period until the year 2027, creates the opportunity for the non-EU countries to have access to EU funds. How important is that for us?  I am extremely pleased with my recent visit to Brussels, where one of the topics discussed was access to EU funds for non-member countries. I talked about this with EU Commissioner for Budget and Human Resources, Günther Oettinger, who gave us his absolute support for our EU accession efforts and especially praised the excellent results of our economic reforms. The 2018 growth rate is the highest we have had in the last ten years. is a great indicator of these results. As I mentioned earlier, the goal is to achieve even better results and having access to EU funds could contribute to it. These funds could help us to invest heavily in infrastructure, education and health care.

IN ADDITION TO HEALTH CARE, ITALY HAS AN EXCELLENT MODEL FOR THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES, WHICH WE WOULD ALSO LIKE TO EMULATE AND CAN COOPERATE MORE ON ITALY 2019

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our plans to relieve the economy, which, with the construction of a road network in Serbia, i.e. capital investments, should contribute to Serbia's business appeal. Together with the Health Minister, you went on a working visit to the Italian region of Veneto late last year. During the visit, you exchange experiences and good practices with your Italian counterparts, especially in terms of organization and functioning of the health care system. How did this visit go?  We had the opportunity to get acquainted with the way the health care system works in the Italian region of Veneto, which was a valuable experience for us because they have the perfect system we are aiming for. They have made great advancements in the application of health information technologies, which leads to shorter waiting lists. All in all, their system is very efficient, while improving our health care system is one of the priorities of the Government of Serbia. What do you think about the World Bank's estimate at that Serbia can achieve a 7% economic growth annually?  As I mentioned at the beginning of this interview, I am absolutely convinced that we can do even better, that our economy can grow more than before and that the World Bank's forecasts are achievable. Fiscal consolidation and stable public finances are the prerequisites for focusing on growth and we have that now. We are working together with the World Bank and the IMF, on identifying the areas in which growth is possible, as well as on implementing the reforms that will contribute to this. One of the great examples is the IT sector in Serbia. This year, we have allocated 100 million euro for investments in science and technology parks and institutes, but we are also working on boosting economic growth. Investments are crucial for growth since they lead to an increase in the attractiveness and competitiveness of the domestic economy which attracts domestic and foreign investments. As a result, there is higher public spending, that is, higher salaries and pensions. We have been doing our best to try to get as close as possible to EU-level income as soon as possible, which requires faster growth rates. You recently presented Serbia's economic results to the members of the Italian-Serbian Chamber of Commerce. How important are Italian investments for our eco-

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nomic growth?  Italian investments are extremely important for our economic growth and we hope that they will be even more of them. Italy is certainly one of the leading economic partners of our country and is one of the most important export markets for Serbian goods. Official figures corroborate this. In the period from 2008 to 2018, Serbia's export to Italy increased 2.6 times and import 1.4 times. The export to import ratio jumped from 51% to 97%. Italy has been doing business in Serbia for many years now. There are over 400 companies here owned by the Italians, and about 1,300 in which the Italians have an ownership share. Cumulatively, they employ more than 26,000 workers. Italian companies are one of the biggest employers in Serbia. I presented the Italian-Serbian Chamber of Commerce

Apart from health care, in which segments can our two countries further improve cooperation?  The experiences of other countries are always valuable, especially of those countries that keep pace with new technologies and improving the quality of life of their citizens. In addition to health care, Italy has an excellent model for the development of small and medium-sized enterprises, which we would also like to emulate and can cooperate more on. In this sense, they have a perfect model for learning about entrepreneurship and entrepreneurial spirit. Also, we can learn a lot from them by applying valuable experiences in agriculture and modern technologies that are used in this segment.

WE HAVE BOARDED 'THE TRAIN' THAT LEADS TO THE EU, WHICH CARRIES NUMEROUS REFORMS AND CHANGES THAT SHOULD IMPROVE THE LIFE OF SERBIAN CITIZENS

How important is Italy's support for Serbia's accession to the EU?  We are counting on Italy as a sincere friend of Serbia and we value their sincere input and support on our path to the European Union. We have boarded 'the train' that leads to the EU, which carries numerous reforms and changes that should improve the life of Serbian citizens. The support of our friends is crucial on this trajectory because only by improving the legislative framework and having a business climate, we can create an environment in which our children will have a safe and dignified future.

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ITALY WILL BE SERBIA’S AMBASSADOR TO THE EU H.E. CARLO LO CASCIO Italian Ambassador to Serbia

Our bilateral trade exchange has been growing steadily in recent years and we have been able to reinforce our position as a key economic partner of Serbia

taly and Serbia celebrate 140 years since the establishment of diplomatic relations and 10 years of the strategic partnership between Rome and Belgrade. In 2018, bilateral trade reached a record figure of 4.04 billion euros, confirming Italy as the second largest trading partner of Serbia. About all this and other things, the Ambassador of Italy to Belgrade, Carlo Lo Cascio, spoke in InFocus Italy.

Serbia is the first European country that the current Italian Prime Minister visited this year and the first in the region he has

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visited since assuming the office of the Prime Minister. How important is this to our already good relationships?  The visit of Prime Minister Giuseppe Conte in Belgrade, on March 6th, confirmed the priority Italy attaches to its relationship with Serbia. More than simply „good neighborhood“, it’s a strategic partnership that is 10 years old in 2019, after 140 years of bilateral diplomatic relations between Italy and Serbia. Prime Minister’s visit was much more than an overall celebratory moment of the political, economic and cultural ties binding our two Countries, as it implied a

fresh „re-start" of very concrete and fruitful cooperation within the framework of our solid friendship. One of his main statements was „Italy will be Serbia’s Ambassador to the EU“, meaning that we will persevere to fully support Serbia in its European path, while also continuing to encourage Belgrade to adopt and implement reforms in the interest of Serbian citizens and foreign investors and in order to speed up the accession process to the EU. Don’t forget that the visit of the Italian Prime Minister was also the first one this year of a Head of Government of EU Member State in Serbia before the European elections. In more general terms, I think that Prime Minister Conte’s visit sent a clear message to Serbia and the whole region: “we do care a lot about the Western Balkans and their European integration process and we will continue to work for that”.

SERBIA HAS A LOT TO OFFER TO OUR COMPANIES

In 2018, bilateral trade reached a record figure of 4.04 billion euros, confirming Italy as the second largest trading partner of Serbia. Can our cooperation be further improved and in which segment?  We are very proud of such a remarkable achievement! Our bilateral trade exchange has been growing steadily in recent years and we have been able to reinforce our position as a key economic partner of Serbia. It shows how much our Countries can do together. We should not stop now, as - I believe - there is still a lot of room for growth. It must also be said that year by year, the Serbian economy gets more integrated into the European market, and as a consequence, our bilateral ties benefit from that. As for the specific sectors, I think that we should continue to invest both in our traditional field of collaboration, such as manufacturing and agriculture, and in new developing sectors, namely renewable energies and IT. Our business community is already working in this direction, with the full support of the Italian Government. Italy was the Partner Country of the 86th Agricultural Fair in Novi Sad, marking 140 years since the establishment of diplomatic relations and 10 years of the strategic partnership between Rome and Belgrade. What kind of initiatives does Italy plan for this year?  The Italian participation as Partner Country to in the Novi Sad’s Fair has been indeed one of the most relevant events of our programme for commemorating these two important diplomatic anniversaries. But it was not the only one! At the beginning of the year, the Italian Embassy, together with the Italian Cultural Institute, the Italian Trade Agency and all the other Italian stakeholders/actors in Serbia, presented a rich programme of cul-

tural and economic events, that is now being implemented. We started in March with the “Italian Design Day”, followed by the beautiful exhibition „Bernini and the Roman baroque“ at the National Museum in Belgrade. We continued with concerts, scientific seminars and business forums. During the month of May, we hosted, together with the Yugoslav Cineteque, the Italian Film Festival. We also decided to organise initiatives outside of the capital, in Subotica, where we have an honorary consulate, as well as in Novi Sad, Sabac, Nis and Subotica. We will keep on going in autumn with the Italian cuisine week and many other events until the end of the year.

MANY ITALIAN COMPANIES CAME AND INVESTED IN SERBIA LONG BEFORE OTHER INTERNATIONAL PARTNERS On the occasion of the fair in Novi Sad, 30 Italian companies came to Serbia. What is the potential for cooperation between Italy and Serbia in agriculture?  Italian companies have traditionally been very active at the Agricultural Fair, also thanks to the fact that Italy has been organizing a national pavillon in Novi Sad for seven years in a row. This year our Deputy Minister for Agriculture, Mr. Franco Manzato, took part in the opening day together with Minister Branislav Nedimovic, showing Italy’s full support to the further development of the agricutural sector in Serbia and to all our companies that wish to work and invest in the Balkan region. It was definitely a great success! Our companies were very pleased with the outcome of the event. During the

Fair Italian companies and institutions also hosted several seminars on innovative technologies in agriculture, circular economy and green chemestry, agricultural machinery and hazelnut plantations. These are precisely the sectors in which Italian and Serbian companies can work together to exchange know-how and better their respective productions. Small and medium enterprises, that form the core of the agribusiness both in Italy and Serbia, should invest in technology and look at agriculture 4.0 as the key for their future success. About 600 Italian companies operating in Serbia, employing more than 26,000 workers, making it the second largest foreign employer in our country. Why does Italy invest so much in the Balkans? What are the advantages for Italy in a strategic partnership with Serbia?  As I like to say, many Italian companies came and invested in Serbia long before other international partners. I think that we developed a special relationship, built on mutual trust, but above all on the excellent economic results that we were able to achieve together in terms of production and employment. Serbia has a lot to offer to our companies. First of all, there is a geografical aspect: the Balkans have traditionally been an important market for Italy and the Serbian economy‘s growth is attracting other investors to come. But there is also a cultural aspect that helped us forging ties with our Serbian friends. Our companies have always developed a strong local management, while also being very attentive to the social dynamics in the municipalities where they work. The outcome of this collaboration has been mutually beneficial and there is no doubt that we will continue to integrate our value chains and contribute to the stabilty of the entire region.

Continue to invest

I THINK THAT WE SHOULD CONTINUE TO INVEST BOTH IN OUR TRADITIONAL FIELD OF COLLABORATION, SUCH AS MANUFACTURING AND AGRICULTURE AND IN NEW DEVELOPING SECTORS, NAMELY RENEWABLE ENERGIES AND IT ITALY 2019

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To what extent did the Serbian reforms influence the inflow of Italian investors into the country?  Let me put it this way: more reforms lead to more transparency and better governance. They will further improve stability bringing new investors. This is not only valid for Italian companies, but it is also about the business environment in general. Serbian authorities are successfully attracting more FDIs, they have been doing a great job in consilidating the public finances and controlling inflation, as confirmed by international financial institutions. Their efforts should now be concentrated on privatizazions and the further improvement of the fiscal sector, the judiciary and the public administration efficency in general. All these sectors are also taken into account in the EU accession negotiations, the alignment of the Serbian legislation to the European one would, therefore, bring a twofold benefit: moving the Country forward on its European path and reinforce the business environment. We know that the issue of Kosovo is the main condition in the EU negotiations with Serbia, but we have seen some of the negative pressures of Pristina such as imposing taxes, hostile rhetoric and transforming Kosovo's safe forces into the army. What is Italy's position on this issue?  We attach great importance to the EU-facilitated Dialogue between Belgrade and Pristina. Stability of the Western Balkans is of the utmost importance for the whole European Continent, and a legally binding agreement on normalization between the sides is an essential element for that stability to be fully achieved and maintained in the long run. Therefore, in our view, there is no alternative to Dialogue and normalisation. This is why we have reiterated our convinced call for an immediate and unconditional suspension of the 100% tax imposed by Pristina on products imported from Serbia, which constitutes a barrier for the continuation of the Dialogue. We have appreciated Serbia’s responsible attitude in the current crisis, as Prime Minister Conte emphasized in his public statements in Belgrade. We wish this path could be maintained as Serbia continues to be a key factor of stability in the region. There are still efforts in place to resume talks between the two sides. We hope this could happen soon, thus enabling progress in the normalization of relations between Belgrade and Pristina, which is necessary also to ensure advance-

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ments in Serbia’s European path. We should not forget that Dialogue needs to be framed within the accession process: both are linked and interdependent. What is the political position of Italy regarding the European path of Serbia bearing in mind the position of Italy towards the European institutions? 

ITALIAN COMPANIES HAVE TRADITIONALLY BEEN VERY ACTIVE AT THE AGRICULTURAL FAIR, ALSO THANKS TO THE FACT THAT ITALY HAS BEEN ORGANIZING A NATIONAL PAVILION IN NOVI SAD FOR SEVEN YEARS IN A ROW

We are well aware of the various challenges ahead for all of us: for the European Union, for most of its member states, for the Balkan region as a whole and Serbia itself. That is why we thought there could be no better time for the Head of the Italian Government to come to Belgrade. In his talks with President Vucic and Prime Minister Brnabic, Prime Minister Conte reaffirmed the staunch support of Italy to the process of integrating Serbia into the EU, while renewing our call to do more on the reforms side, in the interest primarily of the Serbian citizens. In addition to that, he reiterated our full support to President Vucic’s efforts to achieve a compromise solution with Pristina. More recently, during his meeting with President Vucic on 8th May, our Deputy Prime Minister Salvini recalled Italy’s firm position in favor of Serbia’s accession to the EU. As Minister Salvini said a few days ago: “That Serbia should become a part of the European Union is something that is geographically, socially and culturally interesting”. In our view, the reform process within the EU could go along with the integration process. And it would still make sense to enlarge the EU in order to appropriately include some nations very close to us.

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“THE DOOR IS OPEN” AND THERE IS AN INTEREST FOR SERBIA GIORGIO AMBROGIO MARCHEGIANI

President of the Italian-Serbian Chamber of Commerce and CEO DDOR insurance part of UNIPOL Group

ur historic presence in Serbia is strong and very rooted. The bilateral relations are at a very high level, characterized by intensive political and institutional dialogue and strategic partnerships. This shows commitment to the continuous improvement of economic cooperation since Italy is a leading Serbia trading and investment partner”, says the beginning of the conversation for InFocus Italy Giorgio Ambrogio Marchegiani, President of the Italian-Serbian Chamber of Commerce and CEO DDOR insurance part of UNIPOL Group.

“O

How do you asses overall economic cooperation between our two countries?  I can underline the importance of close cooperation between all factors of the so-called ”Sistema Italia” working for a common goal – improving the economic exchange between Serbia and Italy. Let me also stress once more that the economic activity is supported by a very strong institutional cooperation: in Belgrade Italian institutions are present to support the Republic of Serbia in evolving the legal setting, which is the base for the economic activity. Last year was an important year for Serbia and its economic re-

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Italian entrepreneurs were among the first to come to Serbia and believe in this country as a market and manufacturing base, even when conditions in the country weren’t so simple

lations with Italy: Italy confirmed its position as Serbia’s most important commercial partner with a trade exchange of 4,03 billion euros; we had also some reinvestments: the opening of new plants of Italian companies already present in Serbia. Even better results are expected in this year, which is a significant year of jubilee for bilateral relations: 140 years since the establishment of diplomatic relations between Serbia and Italy and the 10th anniversary of the establishment of a strategic partnership. Italy and Serbia have already demonstrated good cooperation in many areas. Which industry branches would you consider particularly important?  As we know, Italian companies from the automotive, textile, footwear industry, mechanical sector, wood and furniture have already been present in Serbia for decades. Italian banks and insurance companies have a leading presence in the Serbian market, too. In recent years, more and more Italian ICT companies in Serbia have grown-up. These companies are not only looking for the skilled labor force, but they are also developing new products and innovative technologies. I think that focus should be also on the sectors that show the most potential in the future as agri-foods- organic production, technological innovation and materials connected with the renewable energy and energy efficiency industry. Thanks to its experience in this field, Italy can transfer its knowhow to Serbia, thereby helping support the industrialization and raising Serbia's market capacity, also in the sectors of biology, green chemistry and environmental protection. To what extent have Serbian reforms influenced the flow of Italian investors coming to the country?

Partner of Serbia

 Serbia has taken important steps to implement the reforms necessary for attracting foreign and domestic investors. The attractiveness of the location, logistics advantages, availability of skilled workforce, and very good support of the Government of the Republic of Serbia and the local community, including the Chamber of commerce, are the main reasons why Italian investors decided to come and wide their business in Serbia. If we look back, Italian entrepreneurs were among the first to come to Serbia and believe in this country as a market and man-

WE SEEK TO CONSOLIDATE A NETWORK COMPRISING PUBLIC BODIES, IN SUPPORT OF ITALIAN INTEREST IN SERBIA ufacturing base, even when conditions in the country weren’t so simple. During the last years, the Government dedicates efforts to overcome some weaknesses of the country and now we see results. Increasing business services, improved transparency of relations with the public administration, particularly in taxation, a gradual improvement of the legal system, are evolutions that are welcomed by companies. Furthermore, macroeconomic stabilization and improvements of the business environment contributed to sustained FDI growth, mainly directed to export-oriented sectors. Digitalization is starting to take effect in the country and now most of the transactions and administrative tasks you can easily finish online. For companies this is crucial.

What can Serbia apply from the experiences of Italian industrial companies?  Italy is a country of excellence not only concerning the artistic and historical heritage but also its industrial sector. The Italian productive system relies on many export-oriented SMEs. Around 50% of Italian exports originate from SMEs (only 16% in Germany). One aspect of the Italian production system that fascinates foreigners is the existence of industrial clusters: small and medium-sized businesses focused on specific manufacturing activities, which interact in a restricted area like an “ecosystem”. This model started in the ‘70s has evolved into a completely different one in which there are hierarchical relationships between leading companies and subcontractors. Industrial districts are a phenomenon of Italy but are interesting also for creating sustainable development in Serbia for two reasons. The first is that around an “anchor” company, often an FDI, can grow a group of smaller companies and create a district specialized in a specific type of product. These smaller companies over time diversify their customers and become a supplier to more companies, even exporting to other countries. This is being the model in the automotive business for example. The second reason has to do with the development of local enterprises and the creation of a – currently missing - local entrepreneurial base, independent from FDIs. In fact, the companies in a “district” can be smaller – are usually a supplier of a certain phase of a process or a certain component of a product. So, they require less investment and can be more easily started by local entrepreneurs. If we look in the past, Italy has found in this organizational model a peculiar trait of its economy and a relevant source of socioeconomic development and growth, and this can happen also in Serbia.

ITALY CONFIRMED ITS POSITION AS THE MOST IMPORTANT COMMERCIAL PARTNER OF SERBIA WITH A TRADE EXCHANGE OF 4.03 BILLION EUROS ITALY 2019

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public bodies, in support of Italian interest in Serbia. What could Serbia do as a country to attract as many Italian investors as possible?  Today, thanks to its proximity to Italy, Serbia, continues to play an important role in relations between Europe, Asia and the Mediterranean. Not only for Italian investors but for the investments overall, strengthening institutions, strengthening investments, the judiciary system and improving the application of the rule of law, investing to create a skilled workforce and good infrastructure are of key importance for attracting FDI. In order to be effective, internationalization efforts must focus on medium to long term period, that is, it must be sustainable. Serbia should focus on investing in education, training and infrastructure. One of the key topics for investors to ensure that the State creates conditions to stop emigration and stimulate the internal market. Investors are part of this policy, but they need a clear framework and commitment by the Government. In my opinion, another important effort that Serbia should do is the improvement of customs procedures in order to speed up the flow of goods.

How many Italian companies are satisfied with the business conditions in Serbia?  Investments of the Italian companies in Serbia give a great impetus to the overall economic development, as well as to the bilateral relations of the two countries. More than 600 Italian companies (over 1800 with the participation of Italian capital) operate in Serbia, employing more than 26,000 workers (without counting the indirect effect), which makes it the first or the second largest foreign employer in our country. This number itself confirms that most investors in Serbia are very satisfied and that they have found their business fruitful in the country. Observing specific cases, we see that at the beginning, they sometimes meet difficulties in understanding the working culture, the general economic environment, some administrative procedures. But the type of difficulties are such that a good Italian entrepreneur immediately understand how to overcome and solve them In this process, of course, the support from

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INVESTMENTS OF THE ITALIAN COMPANIES IN SERBIA GIVE A GREAT IMPETUS TO THE OVERALL ECONOMIC DEVELOPMENT, AS WELL AS TO THE BILATERAL RELATIONS OF THE TWO COUNTRIES peers (other Italian companies) , from the local institutions, like PKS, and from the “Sistema Italia” - our institutions including the Embassy, the Italian Serbian Chamber of Commerce and Italian Trade Agency. We are trying to help them in the successful realization of their businesses. With the companies already present on the market, we seek to consolidate a network comprising

In the near future, could we expect some new investment, perhaps the arrival of any new Italian company on the Serbian market?  The answer is “Yes”. In fact in this phase, clearly “the door is open” and there is an ongoing interest for Serbia of many types of Italian companies. As the Italian economy transforms in Italy, its investments abroad follow this trend and now potentially large, medium and even small enterprises are interested. Serbia is an investment destination that provides many opportunities. Apart from promoting the interests of Italian companies in Serbia, in their internationalization, "Sistema Italia" in Serbia, of which the Serbian Italian Chamber is part, is dedicated to bringing high-quality investments, goods and services in Serbia. In that sense, in order to create opportunities for concrete actions in the near future, we are planning activities, starting from fairs, business missions and country presentations and we are very positive that more new Italian companies will come to Serbia as well as probably some reinvestments of companies that are already doing business in this beautiful country.

CORPORATE

Italy the Nicest

PLACE IN EUROPE

Proud of the result in Serbia based on the constant attention to quality and and industrial cost

ANNINO DE VENEZIA General Manager AUNDE SRB

few years ago, Annino De Venezia, General Manager AUNDE, came with his family to Serbia for work. We talked with him about his life in Serbia, about what he misses of Italy, as well as his plans for the future.

You arrived in Serbia in 2015 with your wife and one year later your son was born in Belgrade. How different is life in Serbia respect in Italy? — Italy is a big country and very famous for a wide variety of food. I am from South Italy and can say that food for me represents a “way of life”. I like almost everything. When we arrived in Serbia, we met an interesting culture of food mostly based on meat and vegetables. We adapted ourselves to the Serbian food, although we keep both our Italian and Russian traditions. My wife says to me we miss the southern typical cakes: cannoli, baba’, delicious, zeppole di San Giuseppe, struffoli, etc. I add that I miss also the “mozzarella di buffalo”, so-called “White Gold of South Italy”. But in Serbia, we found a wide spread of good food. We visited a lot of Monasteries of Orthodox tradition that opened our eyes to a very lovely place where we like to bring also some members of our families. Should I summarize I would

say that Italy offers you in a few hours of “distance”: sea beach, mountains and lakes or wood places with a lot of things you cannot find in other Countries in Europe. Italy is a special Country and this is not because I am Italian. It is the nicest place in Europe. My Serbian friends who visited Italy are now in love with my country.

Why did the Aunde Group decide to invest in Serbia? — The first reason was the big project we shared with FIAT: the 500L. We started by producing the covers of this car model in 2015.

3 YEARS

In less than three years we doubled the size of the facility in Jagodina and we hired about 750 employee I was assisted by some Italian managers and technicians and after a very hard period of six months, I had the only chance to create a good team that now, after some changes, is the one that works day by day with me.

Are you satisfied with the results in Serbia so far? — Firstly I am proud of the result based on the

constant attention to the quality and industrial cost. Basically, any General Manager knows very well that is mandatory to have a good team of managers and technicians working with him. But is not enough. Any managers, included the General Manager, must remind all the time that the treasury of a Company is the Human Resources of white and blue collars. I repeat this concept to my staff to encourage them to work all together like a strong team because all of us have a common interest: the Company’s life. In less than three years we doubled the size of the facility in Jagodina and we hired about 750 employees. AUNDE SRB turnover jumped from about 6 million to 24 million euros last year. This is what AUNDE SRB represents: a strong manufacturing Plant in Central Serbia.

A new facility of the Italian factory Aunde, in which 370 people are employed, opened in May 2017. Are you planning new investments or hiring more workers? — AUNDE is Worldwide Group, with more than 100 facilities around the World. AUNDE Group is one of the leaders in the Textile manufacturing field. We are ambitious and expect to have more projects in the future due to the very strong Italian R&D Department at our Italian Head Quarter. Italian team invents and proposes new textiles and new products to our Customers. The Serbian Plant is a manufacturing actor of the main scene. Any new automotive projects mean about 150 new people. ITALY 2019

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SKY'S THE LIMIT FOR OUR RELATIONSHIP MATTHIAS CLAIVAZ

First Secretary, Head of Economic, Trade and Scientific Cooperation Unit, Embassy of Italy in Belgrade

Both Italy and Serbia have a large number of SMEs, that represent the core of our economies

atthias Claivaz, First Secretary Embassy of Italy in Belgrade, talked about potentials in agriculture, our economic cooperation and the International Agricultural Fair in Novi Sad.

Italy is the Partner Country of the International Agricultural Fair in Novi Sad. How satisfied are you with the organizations? Has the Fair met your expectations and those of the Italian exhibitors?  The Agricultural Fair in Novi Sad was a success, not only for our exhibitors but also for the Serbian and regional agricultural sector in general. I want to congratulate all the people involved for their incredible job. As regards the Italian participation, our presence was indeed remarkable, thanks to the excellent organization of our Foreign Trade Agency - ICE. We were there with 30 exhibitors, in a national pavilion of over 400 square meters. The presence of the representatives of Veneto Region and of Verona’s Fair (famous for VinItaly) was also very significant. Italy’s role as a Partner Country was enriched by the organization four seminars: the opening one on innovative technologies in agriculture; the second on circular economy (together with the Italian National Research Council - CNR); the third on the cultivation of

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hazelnuts (by Agriser/Ferrero) and finally one presentation by Unacoma, the Italian association of agricultural machinery manufacturers. Unacoma presented to the Serbian businessmen the Italian Fair “Agrilevante”, the most important event dedicated to agricultural machines and technologies in the entire Mediterranean basin, that will be held in Bari in October.

SERBIAN AGRICULTURAL EXPORTS TO ITALY GREW BY 27%, WHILE ITALIAN EXPORTS TO SERBIA INCREASED BY 4% Did the exhibitors from Italy have concrete results? What would you consider to be particularly significant?  Both the Italian Ministry of Agriculture, represented in Novi Sad by the Undersecretary of State for Agriculture, Mr. Franco Manzato, and all the Italian companies were very satisfied at the end of the Fair. It should not come as a surprise, since there were more than 1500 exhibitors and 140,000 visitors!

After only a few weeks, we are already receiving the first positive feedbacks. An Italian company just found a distributor for the Balkan region and many others confirmed their participation for next year. We are especially pleased by the fact that two important Italian fairs like Verona’s and Bari’s were promoted in Novi Sad. The goal is to encourage the participation of Serbian producers and farmers to Italian events. We want to reach a mature partnership and balanced trade flows and we can only do that if we encourage our businessmen to meet in Italy and Serbia. The value of foreign trade between Italy and Serbia is 4 billion euros. Is this close to the estimated maximum, given the volume of investments and the size of the Italian investment companies, or has it more potential to expand the scope of work of companies that are already present on the market?  The sky is the limit. The Serbian economy will grow this year and the next one at a very good rate. Perhaps the European economy will slow down a bit, but in general there is plenty of reasons to be optimistic. Many important economic sectors are being developed in Serbia and Italy will certainly contribute in terms of investments, goods and

technology. In 2018 many Italian companies invested in the manufacturing sector and continue to do so in the first semester of 2019, opening new factories or expanding their production. Moreover, we hope to improve the result of our bilateral trade in the agricultural sector, in 2018 Serbian agricultural exports to Italy grew by 27%, while Italian exports to Serbia increased by 4%. Speaking of the agribusiness, I believe that, also thanks to the available IPARD II funds, more Serbian companies will have the chance to buy our state of the art agricultural technologies. Italy is famous for having small and medium producers also in agriculture, therefore we developed machineries that suit well for the Serbian market. You recently had a meeting with the Chamber of Commerce and Industry of Serbia. What is your cooperation with them? What was agreed at that meeting?  We have always had great cooperation with the PKS, thanks also to the work of the other components of the so-called ’’Sistema Italia’’ in Serbia (Italian Foreign Trade Agency, Italian Serbian Chamber of Commerce and Confindustria Serbia). We recently hosted ad the Italian Embassy, with more than 70 companies, an informal meeting with the President of PKS, Mr. Marko Čadež. We agreed on enhancing even more our bilateral cooperation, through the co-organization of business-related events, such as B2Bs, Country presentations and sectoral missions from and to Italy. Serbian and Italian companies can also count on the Office of PKS in Trieste, which is constantly working to promote bilateral projects. What was the establishment of Confindustria Serbia six years ago in economic cooperation? Do you feel the Italian spirit in Serbian business culture?

Machinery

 Confindustria Serbia, together with the Italian-Serbian Chamber of Commerce and the Italian Foreign Trade Agency (ICE), are very important components of the Italian presence in Serbia, since they give direct support to Italian investors in Serbia, but also to Serbian companies that wish to work with Italian partners. I do believe that the Italian entrepreneurial spirit is very much appreciated here in Serbia, because our businessmen have shown the capacity to integrate the Serbian market also on the cultural level.

SERBIAN AND ITALIAN COMPANIES CAN ALSO COUNT ON THE OFFICE OF PKS IN TRIESTE, WHICH IS CONSTANTLY WORKING TO PROMOTE BILATERAL PROJECTS That is why the Italian Embassy, together with Confindustria Serbia and many private companies, is working hard to foster the collaboration with schools and universities, by allowing many Serbian students to get trained in our companies, in different cities of Serbia. What does an integrated Western Balkans region mean for Italian businesses?  It means a lot: first of all common growth, then no artificial trade barriers and more transparency. The European single market represents - still today - the perfect example of how economic integration brings positive results to all, producers and consumers

alike. Only a free and open European market can guarantee growth opportunities for our SMEs. Both Italy and Serbia have a large number of SMEs, that represent the core of our economies. These realities cannot cope with too much bureaucracy and should be given the means to reach as many partners and consumers as possible. Big multinational companies will always find a way to invest and export, but our national economies cannot rely only on them. That is why Italy strongly supports, also through EIB financial instruments, new measures to reinforce SME’s contribution to the creation of a solid economic framework in the Balkan region. What do Italian companies think of Serbia’s EU path?  Italy enjoys a strong presence in South-eastern Europe, being for the many Balkan States the first or the second trading partner. Therefore, Italian companies already look at Serbia and the neighbouring countries as a welcoming and ideal place to do business. In this regard, Serbia is already seen as a European market. It is only natural that the accession process continues, in order to formalize something that on the business level is already taking place. More specifically, there is no doubt that the harmonization of the Serbian legislation to the EU rules-based framework will lead to the opening of the market and provide more transparency for the business environment. European integration means also infrastructural integration that can improve connections and transports. Finally, when Serbia will be a full Member State, it will have access to the structural funds that can boost further growth and important public investments. All that highlights how much EU accession can be an opportunity also for Serbian and Italian companies.

ITALY IS FAMOUS FOR HAVING SMALL AND MEDIUM PRODUCERS ALSO IN AGRICULTURE, THEREFORE WE DEVELOPED MACHINERIES THAT SUIT WELL FOR THE SERBIAN MARKET ITALY 2019

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Generali Srbija, General Sponsor

OF 86 INTERNATIONAL AGRICULTURAL FAIR th

Latest technology used in the field of agricultural insurance – an application for assessment of damage to crops and fruits and the use of drones - presented

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or the eighth consecutive year, Generali Osiguranje (Generali Insurance) is a partner to the Novi Sad Fair and the general sponsor of the International Agricultural Fair. At Generali Osiguranje’s official booth, located in the Novi Sad auditorium, agricultural producers and the Fair’s visitors had the opportunity to get to know more about the agricultural insurance products (livestock, machinery and agricultural holdings) and other products that aim at providing financial protection to the farmers themselves, their families and their production. At the official opening of the Agricultural Fair, Chairman of Generali Osiguranje’s Managing Board, Dragan Filipović said:” Considering that Serbia is an agrarian country, we are trying to give farmers peace of mind every year by introducing new services and agricultural insurance products. However, Serbia is still facing a problem of 85% of agricultural farms not being insured, and we, together, as

an industry, with the help of the state, need to apply ourselves more in raising awareness about the importance of insurance.” Generali Osiguranje also says that the Agricultural Fair is an extremely important event for networking and sharing the experiences between the state institutions, agricultural producers, food industry, insurance companies and banks. For the company itself, the Fair is an opportunity to present the latest technology in

AWARENESS

The fact that only about 12% of farmers have insured their crops suggests that there is insufficiently developed awareness in Serbia about the need for agricultural insurance

the domestic insurance market, namely the application for assessment of damage to crops and fruits, the use of drones and others. The basic features of the application are more precise and efficient assessment and processing of damage to crops and fruits, defining the location of the land plots that suffered damage, checking the type of crops and size of the plot, monitoring the status of damage processing and editing damage on the electronic map of Serbia. The main benefits of using drones are the significant increase in the transparency, speed and precision of determining the condition of crops and fruits prior to insurance and after the damage has occurred, as well as a significant reduction in the insurance costs. About 15% of plant production and only 5% of the livestock are insured in Serbia, which is far below the average of the economically developed countries. One of the reasons for this is the traditional distrust of farmers in financial institutions. Generali Osiguranje Srbija wants to assist farmers in eliminating these prejudices. Generali Osiguranje's agricultural insurance portfolio (crops+livestock) currently comprises of over 10,000 insurance policies annually, with 85% being crop insurance. The company's market share in agricultural insurance is roughly around 35%. The estimates have shown that only between 12% and 15% of agricultural arable land and only between 5% and 10% are insured. As far as the most damaging occurrences go, Generali would like to underline the fact that, due to the global warming, climate extremes are becoming more pronounced in recent years with frequent occurrence of natural disasters with catastrophic consequences. All in all, as the environment in which agricultural activity is being performed is becoming increasingly unpredictable, insurance arises as an adequate solution. This has also been recognized by the state authorities who have been supporting agricultural producers in terms of acquiring insurance by providing substantial subsidies. The decree on increasing subsidies for insured agricultural production from 40% to 70% should result in an increase in the number of insured farmers, especially in MoraviÄ?ki, Zlatiborski and Kolubarski regions. Agriculture is the dominant economic activity in Serbia. The estimate shows that around 1.3 million people are engaged in agricultural production in Serbia, and the share of agriculture in the countryâ&#x20AC;&#x2122;s GDP was 6.5% in 2016. Agricultural production is executed on about 3.5 million hectares of land. The structure of

plant production is diverse, with the most frequent being crop production, but also fruit and vegetable growing and viticulture. Only about 12% of the agricultural land under crops is insured, which is far below the average in the EU and other developed countries. In the last few years, the state has been subsidizing the agricultural insurance premium with amounts varying from year to year and which currently amounts to 40%, except for the Area 3 of the administrative districts Moravica, Kolubara and Zlatibor, where the subsidies stand at 70% (for the first time ever, these three districts are treated separately and the subsidies for those territories now stand at 70%). These measures have led to a certain increase in the agricultural insurance market, especially in the case of natural persons, while a significant penetration of insurance is expected from the increase in subsidies for the three districts. The estimates have also shown that there are close to 600,000 agricultural holdings in the country, of which about 300,000 are registered, and that their average size is about 4 hectares. In recent years, there has been a tendency towards farm consolidation, primar-

IN NUMBERS

Generali Osiguranje's agricultural insurance portfolio (crops+livestock) currently comprises of over 10,000 insurance policies annually, with 85% being crop insurance

ily due to the professionalization and increase in the intensity of production. The fact that only about 12% of farmers have insured their crops suggests that there is insufficiently developed awareness in Serbia about the need for agricultural insurance, or there is the impression that agricultural producers do not have the right information about the benefits they can have from insurance when their production is exposed to meteorological challenges. Furthermore, farmers in Serbia have distrusted financial institutions for many years, and the goal should be to eliminate these prejudices, educate agricultural producers and build a long-term relationship based on mutual trust. Considering the aforementioned factors, the market for this type of insurance requires active sales, supported by education and promotion. Familiarizing producers with benefits of insurance policies and state subsidies, especially in areas where the return is 70%, as well as with climatic changes that contribute to increased frequency of climatic extremes that further jeopardize their production. Here, we should especially bear in mind the fact that over 85% of crops in Serbia are not insured and that represents a priority target group. The dominant product in our company and in the overall market is the insurance against basic risks (hail, fire and lightning strikes) which makes about 80% of the total premium. In addition, we offer insurance against the additional risk from storms, spring snow, winter frost and to seeds, in addition to insurance of fruit yield from quantitative and qualitative loss. Generali Osiguranje is the only insurer in Serbia and the region that provides insurance against drought (for maize, soy and sugar beet).

ITALY 2019

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WE HAVE ALWAYS BEEN ALONGSIDE ITALIAN COMPANIES MIRJANA KOJIĆ

The Secretary General CCIS

The main objective of the Italian-Serbian Chamber of Commerce is to promote exchange and trade between Italy and Serbia

he Chamber is a strong association with approximately 180 members. What I have tried to change is the way in which it is managed, by promoting greater attention to members’ needs, greater transparency in management and more active governance. Mirjana Kojić was appointed Secretary-General, with the intention of giving a greater degree of tangibility and a greater level of service to members, increasing the members and developing relations between Italy and Serbia in a new phase that started in parallel with European Union accession negotiations.

What are the objectives of the Chamber and what does its work consist of?  The main objective of the Italian-Serbian Chamber of Commerce is to act as a point of reference between Italian and Serbian business. We support Italian companies that want to enter the Serbian market, and vice versa, we support Serbian companies and businessmen who are interested in widening their business in the Italian market Our work translates into two main areas of action, we are part of Assocamerestero,

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which is the Association of the Italian Chambers of Commerce abroad, and we participate to the events organized by the network. This allows us and our associates to take advantage of Assocamerestero’s articulated system and initiatives. On the other hand, the ISCC conducts its own activities, often in collaboration with its members and partners. We strive to involve the largest number of Italian and Serbian companies in our membership network, also to contribute the exchange between our two countries. Em-

DESPITE THE FACT THAT THERE ARE MANY PROS IN INVESTING IN SERBIA, THERE IS STILL WORK TO BE DONE IN ORDER TO ACHIEVE EUROPEAN UNION STANDARDS AND TO ADAPT THE LEGISLATIVE FRAMEWORK

blematic examples of our initiatives are the Roadshow Serbia/Italy, B2B meetings, Business Missions, Made in Italy in Serbia fair and many others. Our concern is always to keep the associative base informed on the topics of interest. Which are the new channels of the cooperation Italy-Serbia and what are the plans to improve it?  First of all, it is necessary to highlight the excellent intergovernmental, diplomatic and commercial relations between Italy and Serbia, which are now characterized by a long-standing tradition. These relations facilitate the entrance of companies in the respective market of interest. The new channels to improve cooperation between the two countries are represented by the regional level: going beyond the intergovernmental relations and the Assocamerestero network, our Chamber resumed the collaboration with several Italian Regions, trade associations and foreign centres for internationalisation, both in the context of European Union’s projects but also through own initiatives; the objective of these bodies is to promote their own

Region in neighbouring foreign countries, also organising presentations, missions and delegations to enhance their visibility and to increase opportunities for collaboration. Which are the positive and negative effects of working in the Republic of Serbia?  There are plenty of benefits in working in Serbia. In the first place, the country is in a very stable economic situation. According to the 2018 Eurostat data, Serbia’s general growth trend remains vibrant. In the first quarter of 2019, real GDP increased by 2.3% in comparison to the corresponding period of 2018. Also if vulnerable to risks, these statistics and the Word Bank forecasts are encouraging: by 2023 Serbia should be the leading economy among the candidate Balkan countries. Details just provided confirm the efficiency and the synergy that the “Sistema Italia” develops for the benefits of the Italian companies that invest in the Serbian market. Secondly, companies can take advantage of extremely competitive production costs and fixed costs. The presence of important Italian companies as well as the enlargement of their production, confirm the excellent relations between the two countries. Despite the fact that there are many pros in investing in Serbia, there is still work to be done in order to achieve European Union standards and to adapt the legislative framework. Can you tell us about collaborations with public institutions and bodies?  As an association, we are also representing institutional body and, according to the type of activity, we closely cooperate with local authorities, with the Serbian Chamber of Commerce, with the Regional Chambers of Commerce and with municipalities. The purpose is to point out to the competent institutions

the issues that our associates and partners encounter in their work and to provide solutions to these eventual problems. Thanks to a survey carried out among our members, the necessity for extensive cooperation with local institutions has emerged. To be more precise, companies have this need to extend their knowledge and to be informed on the regular base what are the major changes in regulations, bylaws, especially in labour and financial policy and

OUR CONCERN IS ALWAYS TO KEEP THE ASSOCIATIVE BASE INFORMED ON THE TOPICS OF INTEREST procedures. This demand has been converted into valuable initiatives of the Chamber: the “Business Breakfast” with the Minister of Labour, Zoran Đordjević, and the one with the Minister of Finance, Siniša Mali. Participants had the opportunity to ask questions directly to the Ministers and to present them the issues they face every day related to the Labour Law, the safety at work, the activities of the Labour Inspectorate, tax policy, etc. All these activities are organized according to the necessities and requests of the associates, and since they have been extremely successful, they will undoubtedly be part of the Activity Plan also for the next years. Which sectors offer the most interesting business opportunities for foreign companies?  The most interesting sectors that represent investment opportunities for foreign com-

panies, besides the agricultural and automotive ones, are definitely renewable energy and the ICT. The Serbian energy sector is completely different from the Italian one. Infrastructure and plants are almost totally owned by the State and managed by public enterprises. As a consequence of a long period of carelessness and lack of investments, installations are often obsolete and in need of modernisation. This is the main reason why this sector could constitute an investment opportunity for foreign investors. On the contrary, to some extent, there is already an Italian presence in this sector on the market. For example, Fintel Energija AD acted as a pioneer introducing in the Balkans the first wind farms in 2016 and renewable energy sources in general. Their most ambitious project is the construction of the largest wind farm on the European continent, the Maestrale Ring project. ICT is one of the most promising sectors in Serbian industry, having an impact of more than 10% on the GDP. Serbian companies mainly produce software for a wide range of sectors, from agriculture to medicine, transport services and online games. Foreign companies also rely on local firms to manage call centres and lines of assistance to clients. Alkemy See D.O.O., one of our associates, recently acquired 51% of the shared capital of Kreativa New Formula, one of the main independent agencies working in the digital in Serbia. Some big corporations, such as Intel, IBM and Microsoft established developing centres in Serbia. Moreover, Google is contributing to this growth with a programme designed to help the community of developers and programmers and to assist the start-ups. What Serbia needs now is the high-quality know-how that big companies can provide and consistent investments in an expanding sector of the market.

New channels

OUR CHAMBER RESUMED THE COLLABORATION WITH SEVERAL ITALIAN REGIONS, TRADE ASSOCIATIONS AND FOREIGN CENTRES FOR INTERNATIONALISATION ITALY 2019

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Special Offers for

DIPLOMATS

Embassies, consulates, diplomats, honorary consuls, international organizations and their members are entitled to get special offers

tar Import, the General distributor of Mercedes-Benz in Serbia, has developed and presented attractive offers for the diplomatic segment of its customer base. Offers are created to suit special needs and requirements of those customers, as well as to offer them the core values of the Mercedes-Benz brand - comfort, quality and safety. Embassies, consulates, diplomats, honorary consuls, international organizations and their members are entitled to get special offers for diplomats. In the case of private car sales for diplomats, relevant discounts can also be provided and depending on the model and status, different discounts can be applied. The biggest discount can be given in case of buying an official ambassadors car with flag holders. All further and more detailed information is available on website: www.mercedes-benz. rs, section Diplomatic sales, or you can come personally to the Mercedes-Benz Showroom at the address of Omladinskih Brigada 33. The variety of models is also an advantage when it comes to the brand MercedesBenz. The models of the E-Class family are the most relevant ones for diplomats in their

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work, as they meet the requirements of adequate representation. Modern C-Class brings the best combination of elegant and modern design. Traditionally, the S-Class is the most common choice for the diplomatic segment due to its extraordinary interior and sophisticated design. The new generation of the multifunctional V-Class, which offers 6-8 seats, makes it perfect as a vehicle for dip-

SPECIAL OFFER

The biggest discount can be given in case of buying an official ambassadors car with flag holders lomatic delegations. Optimal luxury seats in the rear, enhanced range between seats, available back massage option, climate control and elegant details such as the new diamond radiator grille, make the V-Class the best choice when it comes to comfort and elegance in the van segment.

Besides our wide product range, constant effort to meet all customers’ demands and to ensure premium service is our top priority. Sales staff are providing all support and professional assistance throughout the entire purchase process, following clients need and inputs. Star Import is the general distributor for Mercedes-Benz vehicles not only for the Republic of Serbia, but also for Montenegro, Bosnia and Hercegovina and Albania. Therefore, together with our partners in Podgorica, Sarajevo and Tirana, special deals for diplomatic corps are offered also in these countries. Covering four different markets in the region of Balkan, leads to a well-built service network, which makes it a great advantage for our customers. Mercedes-Benz core values – modern design, latest generation of safety systems and impressive quality of our vehicles, combined with first-class customer service and very attractive custom-made offers are showing the best results. There is no doubt that when the aim is to have quality, elegance and safety in one vehicle – the answer can only be what our brand claim says: “Mercedes-Benz. The Best of nothing.”

CORPORATE

Investment Climate

IN SERBIA

It is extremely important that Serbia continues its progress in the OECD categorization, which implies not only reforms of internal legislation, in particular in guaranteeing equal treatment and return on invested capital to domestic and foreign investors, but also a clearer situation in the part of basic prerogatives of state authorities and legal framework, such as territorial integrity, security and the functioning of the judical system

VLATKO SEKULOVIÄ&#x2020; Attorney at Law

s an investment destination, Serbia belongs to a group of countries that are trying to attract foreign investors by providing significant incentives. The rules under which the EU Member States and those in the process of the EU accession must adhere to in terms of planning and allocation of incentives must be in line with the state assistance rules determined by the European Union. In this context, countries can define incentive models that will put more emphasis on some of the components that are assessed when awarding subsidies, such as the number of created new jobs, locations, technologies used, etc. However, each of them is in competition with each other, which of course, benefits investors, both foreign and domestic, because they have the option of choice, while countries, as investment destinations, are competing for limited global capital. Bearing in mind that we are talking about the global market, the countries of South East Europe are not only in competition with other countries in the region but in some industries, especially where production is "virtual", they are competing against faraway destinations. In addition to this factor, which investors take into consideration when deciding on the investment location, they also take into account other factors.

The basic factor influencing the decision of large investors is the country's credit rating, i.e. the risk factor for a given country. The basic rating is determined by the Organization for Economic Co-operation and Development (OECD), based on the Marshall Plan, which currently has 36 members. This organization is conceived as part of efforts to rebuild the European economy after the World War II catastrophe, during which the complete European market was completely destroyed.

CREDIT RATING

The basic factor influencing the decision of large investors is the country's credit rating, i.e. the risk factor for a given country Considering the numerous functions that this organization originally had, some of which eventually disappeared or were taken over by the European Economic Community, one function remained in the focus of the OECD a country's risk assessment. Based on a complex methodology, the OECD Credit Committees classify countries in categories from 1 to 7, as well as uncategorized, depending on the estimated risk that one country represents. For instance, Slovenia and the USA are uncategorized countries, while Syria and Mali

belong to Category 7. At this moment, Serbia is classified as Category 5, along with Macedonia and Turkey, with Croatia being classified as Category 4, Bulgaria and Romania Category 3 respectively. Poland and Hungary are also uncategorized. What this means is that Serbia is at the very beginning when assessing risk and making investment decisions, especially when it comes to large investors, and in that respect, is ranked worse than its main competitors Bulgaria and Romania. A higher country risk simply means that capital investments in a particular country are more expensive than in some other countries with a lower risk. Bearing in mind the importance of the OECD Credit Committeeâ&#x20AC;&#x2122;s assessment for the ranking done by private rating agencies such as Moody's, Standard & Poor's, and Fitch, it is clear that the country's credit risk is one of the factors that significantly influence the decision of a certain a group of investors, such as Volkswagen, which is then reflected on the overall investment climate and impacts the decisions of other smaller investors. In that sense, it is extremely important that Serbia continues its progress in the OECD categorization which implies not only the reforms of internal legislation, especially in guaranteeing equal treatment and return on invested capital to both domestic and foreign investors, but also a clearer situation in the part of basic prerogatives of the state authorities and the legal framework, such as territorial integrity, security and the functioning of the judicial system. ITALY 2019

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EXPERIENCES OF ITALIAN CUSTOMS ARE IMPORTANT TO US

Photo: Goran Srdanov

MILOŠ TOMIĆ

Acting Director General of the Customs Administration

Serbia mostly exports to Italy cars, iron products, footwear, socks and tires all Italian companies in Serbia are export-oriented and this was one of the topics to talk about with the Acting Director General of the Customs Administration, Miloš Tomić, and about import and export procedures, legal regulations, as well as the cooperation with the Italian counterparts.

What are the biggest obstacles to the import customs procedure?  The Customs Administration fully understands that business companies in the EU have forgotten what customs clearance means because they have had no borders, but do have free flow of goods for a long time, and this does not mean that we can abolish the customs procedures. In terms of our customs clearance procedure, there are certain documents that still need to be obtained for import, while a special license or certificate is required for some goods. Sometimes there are misunderstandings or inadvertent omissions which subsequently prolong the procedure. Therefore, everybody interested in cooperation has to thoroughly analyze the conditions under which their business ideas can be realized in the most efficient way possible. What measures does the state plan to un-

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dertake in order to facilitate the flow of goods and services?  In order to improve the relations with the business community, the Customs Administration continues to issue approvals for the implementation of simplified customs procedures to companies that operate conscientiously and in accordance with the law, which enabled their more efficient and more economical operations. We started to implement simplified procedures back in the autumn of 2010, and so far, the number of companies implementing these procedures has been constantly growing. In 2014, we introduced the status of Authorized Eco-

WE STARTED TO IMPLEMENT SIMPLIFIED PROCEDURES BACK IN THE AUTUMN OF 2010, AND SO FAR, THE NUMBER OF COMPANIES IMPLEMENTING THESE PROCEDURES HAS BEEN CONSTANTLY GROWING

nomic Operator, thus creating a partnership between the private and public sectors. Three years ago, the Customs Administration automated transit, thus enabling goods from the European Union, the EFTA countries, Turkey and North Macedonia to be transported through Serbia based on an electronic declaration, which means that borders have virtually ceased to exist for the transit of goods. We still need to implement an automated import and export system on the principles of electronic, i.e. paperless business, which will make this segment of customs operations fully harmonized with EU standards. The preparatory phase for the introduction of automation into customs procedures will be completed in September 2019, while the plan for full automation is to come to life in 2023. What is the cooperation between our Customs Administration and Italian customs authorities like? Do we have some common projects?  The Customs Administration of Serbia is continuously developing good cooperation with the Italian Customs and Monopoly Agency based on the Stabilization and Association Agreement, as well as the Agreement on Mutual Administrative Assistance in Prevention, Investigation and Suppression of

Customs Offenses, signed by the two governments in November 2010. At the end of June 2012, the Memorandum of Understanding, signed by the Customs Administration of the Ministry of Finance of the Republic of Serbia and the Italian Customs and Monopoly Agency, came into force and as such, takes a significant place in the bilateral cooperation, as it refers to operational cooperation. The document highlights the following: strengthening of customs controls, improvement of the customs system of risk management, exchange of experiences, best practices and information in order to achieve a more optimal environment for control of the implementation of regulations and trade facilitation, in addition to granting benefits to companies whose business operations comply with the law. The Serbian Customs Administration has successful cooperation with its Italian counterparts also through the exchange of intelligence, the information on goods, customs procedures and participants in them, as well as through the exchange of documentation. The exchange of information primarily relates to the verification of shipments of goods of legal entities and natural persons in the context of involvement in specific customs offences, as well as following on suspicion of smuggling. From 2008 to date, 6 projects have been implemented through which systemic electronic exchange of data (SEED) in the Western Balkans has been developed. The leading institution on all projects was the Italian Customs Administration, which implemented the last 4 projects through multi-beneficiary IPA projects. In addition to the SEED, the INES+ application for the protection of intellectual property rights was created as a result of these projects. The application provides users with an insight into one of the European customs systems, while at the same time, it enables the complete electronic operations between the Customs Administration and legal representatives of holders of intellectual property rights in Serbia. The experiences and methodology of the Italian Customs contributed to the establishment of a better and more efficient cooperation between the Serbian Customs Administration and the Tax Administration with other state authorities and the business community in preventing tax evasion and fraud in international trade thanks to the twinning project realized in cooperation with the Tax Administration of the Republic of Serbia and the Italian Customs and Monopoly Agency as a twinning partner. A project worth 1.4 million euro was implemented from August

for the transport of goods, yarn, as well as passenger cars.

Photo: Miodrag Mitja Bogdanović

THE NEW CUSTOMS LAW, WHICH CAME INTO FORCE IN DECEMBER 2018, AND WHICH IMPLEMENTATION BEGINS ON JUNE 17TH THIS YEAR, IS HARMONIZED (AROUND 98% OF IT) WITH THE EU CUSTOMS LAW 2011 to February 2013 and was funded by the EU under the IPA 2008 programme. According to the customs statistics, which products are the most represented in the external trade between Italy and Serbia in 2018?  Italy is one of the biggest trading partners of Serbia, as evidenced by the fact that the value of the total external trade between our two countries in 2018 stood at over 3.6 billion euro. If we look at the period starting with the introduction of the simplified procedures in October 2010 to the present, the external trade has increased more than double. In terms of representation of goods in common trade we mostly export to Italy cars, iron products, footwear, socks and tires, and import mostly leather, motor vehicles

What role does the Serbian Customs Administration play in Serbia moving towards the EU membership? To what extent have we harmonized our legislation with the EU's one and what else is left to do?  The Serbian Customs Administration plays a significant role in Serbia's path towards the EU. Namely, we actively participate in the work relating to several negotiation chapters, bearing in mind the fiscal, protective and security role that the customs service has in the society from which a number of competencies stem. The negotiation chapter 29 - Customs Union – is by far the most important for the Customs Administration of Serbia. In 2014, Serbia and the EU successfully completed the phase of the analytical review of legislation, the so-called screening, in relation to this chapter. Based on the screening report, basic assessments and recommendations of the EC that the Serbian legislation is, for the most part, in line with EU Acquis in the segment of the customs union, the negotiations in this chapter were opened in 2017. Our legislation is almost completely harmonized with the EU regulation. The new Customs Law, which came into force in December 2018, and which implementation begins on June 17th this year, is harmonized (around 98% of it) with the Union Customs Code of the EU and is based on the improvement and simplification of all customs procedures for the purpose of facilitating external trade. Among other things, it envisages a fully electronic environment, as well as new forms of customs simplification. What should Italian companies pay attention to, when exporting goods to Serbia?  The basic recommendation to Italian companies would be to be well-informed because if they are, everything is easy. They can always contact the Chamber of Commerce and Industry of Serbia or the Italian - Serbian Chamber of Commerce in Belgrade which provide support to business people in order to contribute to the development of external trade between our two markets. They can find out in advance what documents they need for the goods they intend to export and what are the specificities of customs procedures that await them. With such an approach, every business venture will run smoothly and without any delay.

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CORPORATE

The Largest Exporter is

THE TRANSPORTATION SECTOR It is of utmost importance for the business operations of any transportation company an attorney to grant professional support in all segments of professional and legal activities, primarily in those that are related to labor relationships and company law; therefore, it may be concluded that the economic law in its entirety represents the work field for the GRBA Law Office

DUŠICA GRBA Attorney-at-Law

ušica Grba's law office started its work in 2008, with a vision of specialization and highest standards of expertise in the area of commercial law, in order to achieve maximum results, and provided the best possible and optimal solutions to the clients. Dušica Grba graduated in 1998 at the Law Faculty of the University of Belgrade with an average grade of 9.31. She was a scholar of the Government of the Republic of Ser-

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bia and a scholarship holder "JUGOPETROL". She is the winner of the Best Student Student Award ("University without a Party", 1998). She completed her postgraduate studies in the direction of international business law. In 2001 she passed the bar exam. From the In 2008, he was a member of the Bar Association of Belgrade, and since 2015 he is a full member of the AEA (European Association of Lawyers). In 2015 she was a representative of the Association "Justinian Lawyers" for the territory of the Republic of Serbia. He is a member of the Chamber of Italian-Serbian businessmen since 2015.

TRANSPORT

Road freight transport represents a specific thematic field that has been regularized by numerous regulations, therefore it is of utmost importance to be well acquainted not only with the whole set of laws

Your office is specialized in international road freight transport and special area of economic activity. Can you tell us more about this? — Road freight transport represents a very specific thematic field that has been regularized by numerous regulations, therefore it is of utmost importance to be well acquainted not only with the whole set of laws, (customs regulations, traffic safety regulations, regulations stipulating licence issuance at competent Ministry, also the system of permits exchanged with other countries, etc.) but also to possess the background knowledge in business operations performed by transportation companies, as well as the technical characteristics of the vehicles....The Grba Law Office has been engaged in this thematic field for many years, therefore it is with great pride for me to point out the fact that I am also the, as well as of the ‘International Transport and Logistics’ Economic Chamber and of the ‘International Transport’ Business Association that includes more than 1,100 transportation company members. Regardless of official statistic presentations, THE LARGEST EXPORTER IN THE REPUBLIC OF SERBIA IS THE SERBIAN TRANSPORTATION SECTOR that secures the annual income of more than one billion Euros; this economic branch has also the significance of the spill-over effect as it secures more than 30,000 jobs, as well as a large number of ancillary activities (in insurance, sale and service of freight motor vehicles – towing and towed vehicles, fuel consumption, toll paid for the benefit of the ‘Serbian Roads’ Public Enterprise, etc.) Certainly, it is of utmost importance for the business operations of any transportation company an attorney to grant professional support in all segments of professional and legal activities, primarily in those that are related to labor relationships and company law; therefore, it may be concluded that the economic law in its entirety represents the work field for the GRBA Law Office.

with numerous companies that have been incorporated with the Italian share in capital, yet my greatest pride is certainly my co-operation with the FALC EAST doo Knjaževac that continues for almost a decade...Namely, this company is not only a worldwide leader in footwear manufacturing, it is also a company that deals business according to corporate social responsibility principles – they are very active in the local community with their donations and sponsorships, and Ms. Salina Ferretti is a person that inspires me from the moment I had met her – she is a wonderful person who has a whole empire, yet this fact does not impede her to work on the 24/7 basis – I often receive e-mails from Ms. Ferretti at 02 am or at 05 am... in this manner she encourages me to be the best possible version of myself.

BEST SOLUTION

Nevertheless, in my regard, the legal system is molded by practice, and if there is good will, the best solution shall certainly be achieved

Where do you see the space for change in the Serbian legal system? — Even when perfection is reached, there always remains something that could be improved... Nevertheless, in my regard, the legal system is molded by practice, and if there is good will, the best solution shall certainly be achieved. Again I shall return to the transportation sector and point out the role, as well as the efforts made by our Minister Ms. Zorana Mihajlović who has given personal contributions for this economic field to be optimized and to advance to a higher level. Her responsible attitude and professionalism have given hope to transportation companies as they are not alone in their battle against related problems; Ms. Mihajlović with her active attitude aims at improving the business environment for the purpose of increasing competitiveness of Serbian transportation economics, reducing losses on grounds of prolonged stay of vehicles at border crossing points and internal customs offices, infrastructure development, decrease in charges, facilitation of administrative procedures through digitalization, promotion of young people with regard to advantages of the professional freight vehicle driver job …I shall make use of this opportunity to say ‘Thank You' once again not only on my own behalf but also as the attorney of the ‘International Transport’ Business Association.

What problems and challenges are foreign clients facing when they come to our country? — In my opinion, there shall be no obstacles with regard to launching business operations; problems shall be encountered at any later stage in terms of existing practical disparities – at courts, tax administration, inspection monitoring – as all these elements generate legal insecurity in internal business dealings. What is your cooperation with Italian companies in Serbia? — In Serbia, I have established co-operation ITALY 2019

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C OOPERATION

140 YEARS OF FRIENDSHIP

Our relationships are good, have lasted for a long time and over time, they become even more solid, especially in the economic segment

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e are marking an important jubilee this year - 140 years since the establishment of diplomatic relations between Italy and Serbia, as well as 10 years since the establishment of a strategic partnership between Rome and Belgrade. In this period, the relations between Italy and Serbia have deepened and reached their peak in economic terms. Namely, Italy and Serbia have excellent bilateral relations, based on a joint declaration on strategic partnership signed on November 13th, 2009. From that year onwards, the highest instances have been closely monitoring the development of the bilateral relations and at regular in-

terstate summits held both in Italy in Serbia, with the participation of ministerial delegations and under the joint leadership of the prime ministers from both countries. Italy is one of the main partners of Serbia in the process of European integration and is the largest foreign investor in Serbia and the second largest external trade partner. Our two countries are connected by the complementarity of economic structures, traditional business relations and geographically gravitating towards each other. In the past, the cooperation was characterized a balanced trade, substantial contracts in the segment of joint investments and production cooperation, as well as a

high level of cooperation in banking, financial, transport and tourist services. Another validation of the fact that the relations between the two countries have never been better became apparent when the current Italian PM visited Serbia as the first foreign country this year and the first regional country he came to following his appointment as the prime minister. There are about 600 Italian companies operating in Serbia. They employ more than 26,000 workers, which makes them the second largest foreign employer in the country. According to the latest available data from the State Statistical Office from 2018, the value of the total external trade in goods with Italy amounted to EUR 4,034.4 million. Last year was a record-breaking one in the history of our relations because, during this period, the total trade between the two countries exceeded the figure of EUR 4 billion. The total value of Serbian export to Italy in 2018 amounted to EUR 1,986,5 million, while, in the same period, the total value of Italian export to Serbia amounted to EUR 2,047.9 million, which means that the export to import ratio stood at 97%. Based on data from the Ministry of Finance of the Republic of Serbia - Customs Administration, almost 12,000 business entities in Serbia are doing business with Italy. The number of commercial entities, which import from Italy, stands at 8,794, and the number of commercial entities that export to Italy stands at 1,566, while the number of entities engaged in external trade in both directions is 1,049, which puts the total number of commercial entities that do business with Italy at 11,916. The number of Italian companies that have ownership in Serbia stands at 1849, and there are 139 business entities from Italy that own property in the Republic of Serbia. Potential for improving cooperation

Record-breaking year

SERBIA WAS THE FIRST EUROPEAN COUNTRY THAT THE CURRENT ITALIAN PRIME MINISTER VISITED THIS YEAR AND THE FIRST IN THE REGION HE HAS VISITED SINCE HIS APPOINTMENT Industrial cooperation with Italy is a segment of cooperation that saw substantial contracts being implemented in the past period (automotive industry, agricultural machinery, food processing equipment, etc.). In terms of production, the partnership with Fiat is especially important as a powerful driving force behind the cooperation between Serbian and Italian companies in the field of component manufacturing. Two Italian banks (Intesa, Unicredit) have a strong presence in the banking and financial cooperation. The insurance company Delta Osiguranje was acquired by Italy's Assicurazioni Generali while DDOR NOVI SAD has

become part of the Fondaria Group. The production of footwear and textiles also has a high potential, as evidenced by numerous examples of successful cooperation between domestic companies and Italian partners. Italian companies have shown a strong interest in the exploitation of alternative energy sources (biomass, wind and solar energy) because Italy will abolish its production bonuses, as well as due to the fact that the Republic of Serbia has adopted stimulative prices for the purchase of energy produced from alternative energy sources. The Republic of Serbia and the Republic of Italy signed an agreement on January 1st, 2013, which envisages delivery of the electricity produced from alternative sources to the Italian market. This sector shows a great development perspective due to, inter alia, the EU Member States are obligated to generate 20% of their energy from alternative energy sources by 2020. Apart from the aforementioned segments, there is a lot of potential in agriculture. 28 Italian companies and 2 organizations for the promotion of Italy have participated in the recent International Agricultural Fair in Novi Sad. Italy was also the sponsor country of this year's fair.

LAST YEAR WAS A RECORDBREAKING ONE IN THE HISTORY OF OUR RELATIONS BECAUSE, DURING THIS PERIOD, THE TOTAL TRADE BETWEEN THE TWO COUNTRIES EXCEEDED THE FIGURE OF EUR 4 BILLION ITALY 2019

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C CI S ACT I VITIES

TAILOR-MADE ACTIVITIES TO THE NEEDS OF ASSOCIATES

In order to promote exchanges and new professional contacts, as to offer recommendations on the topical current economic issues, the Chamber of Commerce sets up several tailored business activities in collaboration with his associates, partner institutions and associations: plentiful seminars, chamber evenings, International Networking Cocktails among the bilateral Chambers, as well as events planned with the associate’s cooperation

hanks to the long and fruitful collaboration with Italian and local partners, ISCC business and companies associates, as well as local institutions, on assisting the individual companies requests, organizes several activities in order to provide at its members a specialized support on the definition of a strategic approach for the placement and programming of their business in Serbia, along with a wide range of personalized commercial, promotional and marketing assistance services: Market research, Speed Business Meeting, Visits to trade fairs, Incoming – outgoing missions.

HAVE A BREAKFAST WITH THE MINISTER Being always updated on legislative

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amendments, current dispositions and regulations, ongoing international projects. Does it seem too complicated? It's easier than you think. Take a break with us and have a breakfast with the Minister! In order to increase our sustenance to the issues of ISCC's associates in their business sectors, and becoming a bridge of dialogue, several focused activities have been realized in collaboration with the local institutions, along with meetings organised with the Italian and local business communities, in cooperation with the “Sistema Italia”, supported by the Italian Embassy. One of our brand-new initiatives revealed to be a resounding success was organized on September 2018, with the Minister of Labour, Zoran Djordjevic, and his collaborators, which greatly benefited from the presence of ISCC

associate’s companies. An innovative and interactive way to discuss on current issues, that has involved the kind participation of the Ambassador of Italy, H.E. Carlo Lo Cascio, and of the First Secretary of the Embassy, dr. Matthias Claivaz. Also, on April 2019, Delta Holding, the headquarter of our associate, was the setting of the Business Breakfast organized by ISCC with the Finance Minister, Siniša Mali, and the collaborators from the Ministry and the Revenue Agency.

DECEMBER DRESSES FOR A GALA AND OPENS THE DOORS OF THE ITALIAN EMBASSY Following the established tradition, on December, the Chamber organizes a Gala Evening at the Italian Embassy and, at the presence of his associates, partners and

the Highest levels, points out detailed information about the outcomes achieved and assigns the annual “G.M. Leonardi” Award to company that distinguished itself in the development of economic and commercial relations between our countries. For the 9th edition, ISCC has rewarded Fintel Energija A.D, a pioneer in the production of electricity from renewable sources in the Balkans, and one the most important investor in this sector in Serbia.

WE WANT TO CELEBRATE YOUR SUCCESS! A Special Award has been assigned by the Italian-Serbian Chamber of Commerce to the founder and president of Calzedonia S.p.a., Sandro Veronesi. The opening of the 5th company’s establishment in Serbia confirmed his contribution in the enhancement

of the relations between our countries, and his attention on the investment projects and new employment in Serbia.

PARTICIPATION AT FAIRS The 85th Novi Sad International Agricultural Trade Fair and the 40th Belgrade Tourism Fair were the two esteemed contexts where the ISCC had the occasion to present itself, its services and activities at plentiful visitors. The excellent commercial tie between Italy and Serbia, particularly in the agri-food sector, was confirmed by the presence of 20 Italian companies at the “Italian Pavillion”, organized by the ICE and inaugurated by the Minister of Agriculture, Branislav Nedimovic, and the Italian Ambassador, H. E. Carlo Lo Cascio. At the 40th Belgrade Tourism Fair, ISCC was hosted in the DDORs stand together with the Benu Phar-

macies and the Faculty of Economy of Belgrade. In an exhibition space of 118 sqm were organized various promotional activities and a prize competition for a journey in the wonderful Tuscany!

THE KEY FOR YOUR BUSINESS IS NOT SPENDING TIME, BUT INVESTING IN IT: FOCUS ON ITALY! Finally, the 3rd edition of « In Focus: Italy » has seen the light, thanks to the ISCCs partner Color Media Communications and the steady support of the Italian Embassy in Belgrade. It represents one of the most comprehensive publications dedicated to the “Italian way of life”, his culture, tourism and history, not forgetting the promotion of bilateral cooperation and friendly relations between our countries. As an exclusive sup-

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plement of Diplomacy & Commerce magazine, it will be distributed to the economic, diplomatic, institutional and business participants that will be hosted by the Italian Embassy on the National Day of Italy. The online edition will be posted on the Diplomacy & Commerce website and will be distributed through the network of 12.000 addresses as a newsletter. Another opportunity for visibility for your business!

CATALOGUE OF MEMBERS The Catalogue of Members is an annual publication in which companies associated to the Chamber are presented, in the form of advertising or simply with business data. The objective of the Catalogue is to promote ISCC’s associates and to increase their visibility in Serbia, in Italy and inside the Chamber’s network, thanks to the distribution of the Catalogue during all the events.

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THE SERBIAN PATH TOWARDS THE EUROPEAN UNION WORKING MEETING WITH THE EU DELEGATES The Representatives of the EU Delegations in Serbia were the honour guests of a working meeting organized by the ISCC, in collaboration with the colleagues of the German-Serbian Chamber of Commerce, the Swiss-Serbian Chamber of Commerce and the Slovenian Business Club. After the opening greetings of the ISCCs Secretary General, Mirjana Kojic, the Deputy Head of the EU Delegation in Serbia, Mateja NorčičŠtamcar, and Yngve Engstroem, Head of the Cooperation Sector of the EU Delegation in the Republic of Serbia, highlighted Serbia’s significant progress towards the EU, and the EU funds opportunities for the country funding. A support designed to improve the business and investment conditions.

EUROPEAN PROJECTS

During 2018, the ISCC was one of the partners of the European Project “IT’S TIME”. Approved as part of the Erasmus+ Programme, the initiative was planned in order to create a virtual platform and to promote professional exchange among young people from 18 to 25 years old: two Italian students were selected in order to conduct researches and analysis of the Serbian socio-economic context.

BUSINESS COCKTAIL Is it possible to create new business contacts and share useful professional experiences at the same time? Yes, it is! The ISCC, in collaboration with other 11 chamber associations, promotes informal meetings among their respective representatives and associates, in order to support networking and to strengthen cooperation between the chamber’s members. Events like the «International Networking Cocktail» respond to the ISCCs

aim of increasing the business network contacts with the local community of its own associates, who can benefit from the sharing of the professional opinions and experiences among them. The best partnership often stars out with a friendship!

KOPAONIK BUSINESS FORUM For the first time, the ISCC has supported its members in the prestigious context of the Kopaonik Business Forum, organized by the Serbian Association of Economists and recognized as the “Serbian Davos”. The ISCC and other 6 bilateral associations organized a Business Cocktail in the suggestive atmosphere offered by the Forest Bar of the Hotel Grand & Spa Kopaonik. An informal setting within which it was possible to further business relations and discussions, in order to facilitate and increase closer cooperation, partnership and contacts more advanced among ISCCs associates and companies from participants from neighbouring countries.

LA DOLCE VITA. TASTE A NEW STRATEGIC BUSINESS VISION! Now at its 2nd edition, “La Dolce Vita” gave to the ISCC associates the chance to gain a new strategic business vision, which aims to create new relationships in an informal environment and to combine quality and comfort, skilled craftsmanship and know-how with an international perspective. The square of the Hotel Radisson Blu in Belgrade was the setting of several exhibitions of Italian firms operating in Serbia, from automotive to insurance, banking, wood and furniture, as well as food and Ho.Re.Ca. The brand “Falanghina del Sannio” made its own exhibition, within the project "OCM - Wine", and offered the tasting of its product to all those present.

NOVI SAD MEETS ITALY. WHEN THE TASTE CALLS, ITALY RESPONDS! Within the National Cuisine Festival “Danubius Food Planet”, which was held from 11thMay to 3rd June 2018 in Novi Sad, Italy presented itself offering the audience its own artistic program and Italian specialities. The ISCC provided its support to the event organized by the Color Press Group – Ninamedia, in collaboration with the Embassy of Italy in Belgrade, the Italian Institute of Culture from Subotica and the “Palazzo Bianco” restaurant. At Novi Sad’s citizens presence, the Secretary General of the ISCC, Mirjana Kojić, invited the gathered people to taste Italian and Sicilian dishes, prepared by the Chefs of the Novi Sad restaurant “Palazzo Bianco”, and showed her gratitude to the organizers and to the partners for the invitation at the event.

THE THIRD WEEEK OF ITALIAN CUISINE. IMMERSE YOURSELF IN THE EXTRAORDINARY ITALIAN TASTE! Promoting the Italian regional variety, its culture and traditions, enhancing each one of the distinguishing Italian features. These are the objectives of a unique event promoted by the Italian Government, in collaboration with Sistema Italia: the "Third Week of Italian Cuisine in the World - The Extraordinary Italian Taste". ISCC gave his constant contribution to the event, organizing at the Hotel Metropol in Belgrade the 2nd edition of "Made in Italy In Serbia“ in collaboration with Bianco e Rosso and PortaItalia, dedicated to the food sector and Ho.Re.Ca. The ISCC also supported the Restaurants that joined the initiative preparing special menus for

the occasion. The event was the occasion for ISCC to organize B2B meetings between Italian exhibitors and Serbian operators, revealed to be a great success. Emblematic examples are the Falanghina del Sannio wine and the Canuti pasta. Several companies that took part in the event managed to enter the Serbian market selling high-quality Italian products. Two thematic seminars were also supported and organised: "Territory, quality, food, health", with experts from the Italian Ministry of Agriculture, the CNR, the Serbian Ministry of Agriculture and with the contribution of AgriSer, and “The wines of the Veneto Region”, a seminar set with an “entrepreneurial” approach. The participants had the chance to taste 7 different high-quality Venetian wines, suggested by Dr. Pier Claudio De Martin, President of "Unione Consorzi Vini Veneti".

ITALIAN DESIGN DAY The design of the word. The designers have the floor! An edition developed under the theme of the relationship between the Italian language and the world of designers.The Embassy of Italy and the Institute of Culture in Belgrade presented the conference of the architect Matteo Fantoni (Studio Fantoni of Milan), together with the architect Zoran Djukanovic, of the Faculty of Architecture of the University of Belgrade, met for an exchange of experiences and for a discussion on the theme of the relationship between design and sustainability. The project was supported by the company Aunde, DDOR Insurance Gruppo Unipol and ISCC, which during the event distributed the "Map of the Italian Design in Serbia". On the same occasion was inaugurated the exhibition “Ten words”,works of 30 Italian designers.

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DISCOVERING THE HRs REVOLUTION With the ISCCs support was held "The Revolution in HRs Sector” seminar, organized by our ELITE Academy associate. The event was the occasion for the representatives of the “Italian Academy for the Selection and Training of Personnel”, Miša Pavićević and Alessandro Bertoldi, to present their activities and to stress the importance of methodologies and tools to select company personnel. The most relevant novelty is the PSYTECH test, an appraisal system to assess all the human aspects of the employees in the company environment. An exciting and revolutionary topic in the field of Human Resources!

THE IMPORTANCE OF BEING A MEDIATOR What is mediation? Which is the role of

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the mediator in dispute resolution? What are mediation’s advantages? At these and others crucial questions responded “Mediation: a novelty in dispute resolution and arbitration”, an interesting event that caught the attention of a many guests. The working breakfast, held by our Chamber in collaboration with the Law Office Tomić Sinđelić Groza (TSG), gave to the participants the unique opportunity to understand the arbitration procedure thanks to the precious contributions of the TSG’s Attorney and Managing Partner, Ljubica Tomic, the director of ADR Partners and member of JAMS International, Lawyer Blažo Nedić, and the founder and director of ADR Center Global, Dr. Leonardo D'Urso, special guest from Italy

TO BETTER NETWORKING BE “NETWORKED”

ISCC has participated at the established activities of Assocamerestero’s network. “Who is Who” and “Business Atlas” were the contexts in which our Chamber has been presented to the international readers of “Economy Magazine”, a useful framework for the creation of innovative networks in the country.

ALWAYS CONNECTED In addition to the Web portal www.ccis. rs and the Social Networks (Facebook & LinkedIn), the Chamber takes care of informing his members, Italian and local partners on the activities of the Chamber and its members, as well as on the topics of business and culture relevant for cooperation between the countries. A monthly Newsletter - 11 publications per year - is sent to over 2000 recipients!

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EC ONOMY

SLOWLY REGAINING PACE

Better-than-expected external environment could imply a stronger export-led rebound

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he Italian economy has progressed from being one of the weakest economies in Europe following World War II to being one of the most powerful. Its strengths are its metallurgical and engineering industries, and its weaknesses are a lack of raw materials and energy sources. More than four-fifths of Italy's energy requirements are imported. Nonetheless, the chemical sector also flourishes, and textiles constitute one of Italy's largest industries. A strong entrepreneurial bias, combined with liberal trade policies following the war, enabled manufacturing exports to expand at a phenomenal rate, but a cumbersome bureaucracy and insufficient planning hindered an even eco-

nomic development throughout the country. Services, particularly tourism, are also very important. At the end of the 20th century, Italy, seeking balance with other EU nations, brought its high inflation under control and adopted more conservative fiscal policies, includ-

CONSUMER PRICE INFLATION IS SET TO DECELERATE THIS YEAR AND PICK UP MODERATELY IN 2020

ing sweeping privatization. Today, the economy shows signs of bottoming out real GDP growth went into reverse in the second half of 2018 and the economy slipped into a mild contraction. For the year as a whole, real output expanded by 0.9%, supported by domestic demand, while net exports weighed on real GDP growth. For the 2019 year as a whole, real GDP growth is expected to remain sluggish at 0.1%. In 2020, which has two additional working days, real GDP is forecast to expand by 0.7%. The forecast scenario is based on a no-policy-change assumption and does not incorporate the effects of hikes in indirect taxes envisaged for 2020 in the government plans. External demand and private consumption to underpin a return to growth Aggregate domestic demand are unlikely to lend much support to growth in 2019, as a drop in investment demand will largely offset the positive impact from moderate consumer spending. Capital spending is expected to bear the brunt of policy uncertainty both at the domestic and international levels. However, the re-introduction of investment-related tax incentives that were canceled at the end of last year is likely to slow the decline in business investment. Private consumption growth should be helped by the positive impact of lower inflation on real disposable incomes and the introduction of the citizenship income. However, a deteriorating labor market is set to dampen consumer spending, and declining consumer confidence suggests that some of the expected rises in incomes could be diverted to savings. Assuming that global growth picks up in the second half of 2019, exports are set to become a major growth driver over the forecast period and Italian exporters are expected to limit their losses in market shares. Risks to the growth outlook remain pre-

dominantly negative, as trade tensions continue to cloud the global outlook and higher-than-expected oil prices could curb consumers' purchasing power. In addition, financial markets remain very sensitive to policy changes and any possible related increases in sovereign yields could affect sentiment and private-sector funding conditions. By contrast, a better-than-expected external environment could imply a stronger export-led rebound.

IN 2019, THE GENERAL GOVERNMENT DEFICIT IS EXPECTED TO INCREASE TO 2.5% OF GDP, MAINLY DUE TO THE SLOWDOWN IN ECONOMIC GROWTH Labor market to weaken considerably The labor market is unlikely to escape the impact of sluggish economic activity, as indicated by firms' subdued employment expectations. Employment growth is expected to grind to halt in 2019. The unemployment rate is forecast to climb close to 11% this year, as the new citizenship income scheme is likely to induce more people to officially register as unemployed and thus be counted in the labor force. Consumer price inflation remains muted. After having risen by 1.2% in 2018, consumer prices are set to increase by only 0.9% this year, partly due to lower energy prices, and by 1.1% in 2020. Core inflation, at 0.5% in March 2019, is forecast to rise above 1% by the end of 2020. Italy's economy slipped into a mild contraction in the second half of last year, as

the slowdown of global trade and weak manufacturing spread to the domestic economy. This weakness is set to give way to a muted recovery, as growth is likely to rebound moderately on the back of firming external demand and higher social transfers. Subdued economic growth and fiscal loosening are expected to affect public finances, with both government deficit and debt projected to increase substantially over the forecast horizon. Consumer price inflation is set to decelerate this year and pick up moderately in 2020. Following extraordinary costs to support the banking sector in 2017, the general government headline deficit declined from 2.4% to 2.1% of GDP in 2018, supported by rising revenues. Government spending for the compensation of employees slightly increased due to a moderate increase in public wages, while public investment spending declined markedly. In 2019, the general government deficit is expected to increase to 2.5% of GDP, mainly due to the slowdown in economic growth. In 2020, the government deficit is projected to reach 3.5% of GDP, under a no-policy-change assumption. This forecast does not consider the increase in VAT rates legislated as a safeguard clause, given past repeals and government announcements. The delayed impact of the new tax regimes implemented in 2019, higher funds for public investment and additional spending for the citizenship income and the early retirement scheme are expected to be only marginally offset by strengthened provisions against tax evasion and temporary revenues from a new tax amnesty. Renewed tensions on sovereign yields constitute a risk to these fiscal projections. Conversely, the possible activation of the VAT safeguard clause in 2020 and potential underspending for the new measures would lead to a better fiscal outlook.

Expectation

ASSUMING THAT GLOBAL GROWTH PICKS UP IN THE SECOND HALF OF 2019, EXPORTS ARE SET TO BECOME A MAJOR GROWTH DRIVER OVER THE FORECAST PERIOD ITALY 2019

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THE FIRST UNIVERSITY OF THE WESTERN WORLD The University of Bologna: from its foundation to the Bologna Process

taly is often associated with its food and its touristic destinations but historically has always played a prominent role in the fields of culture and education. The University of Bologna, considered to be the first university of the Western world, represents one of the most emblematic examples. The institution that today we call "University" took form during the eleventh century in the emilian city, when the masters of grammar, rhetoric, and logic started to deal with law. 1088 may well be accepted as the conventional date to indicate the period in which a free and independent teaching from ecclesiastical schools began in Bologna. At the time, there was a great need of order, and since the classical ancient and the early medieval models were not applicable anymore, it started one of the most important experiences of the Civil law, the Scientia juris. In this context, and during the investiture conflict, the study of the Justinian Law, milestone of the Empire's identity, became fundamental. The University of Bologna is one of the most prestigious Italian universities, commonly ranking in the first places of national rankings.

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It is possible to draw a parallel between this novelty and a more recent event that occurred in Bologna, and that can be seen as another Copernican revolution: the Bologna Process. It was intergovernmental cooperation between European countries in the field of education, which began in 1998, after the signing of the Declaration of Sorbonne by the Ministers of Education of Italy, France, Germany, and the United Kingdom. Its aim was to harmonize the architecture of the European higher education system and the following debate led to the agreement and

THE INSTITUTION THAT TODAY WE CALL "UNIVERSITY" TOOK FORM DURING THE ELEVENTH CENTURY IN THE EMILIAN CITY, WHEN THE MASTERS OF GRAMMAR, RHETORIC, AND LOGIC STARTED TO DEAL WITH LAW

subscription of the Bologna Declaration in 1999 by 29 ministers (that subsequently became 45). The overall common goal of Bologna was to create, by 2010, a European space for higher education in order to improve the employability and mobility of European citizens and to increase the international competitiveness of European higher education. More specifically, the Bologna objectives regarded actions relating to the adoption of a system of easily comparable degrees, the introduction of a system based on three main cycles (bachelor, master, doctorate), the establishment of a system of credits called the "European Credit Transfer and Accumulation System" (ECTS) and the promotion of mobility of students and teachers by removing obstacles to the effective exercise to free movement. Today, the Bologna Process has grown to encompass the wider European Area of Higher Education (EHEA). This now includes 48 European countries, plus the European Commission, and several members and advisory partners, representatives of public authorities, higher education institutions, associations, quality assurance agencies, international organizations and other stakeholders.

ARTLINK YOUNG TALENTS’ FESTIVAL Anna Tifu, Italian violinist will open the ArtLink Young Talents’ Festival with ArtLink Camerata Balcanica on June 12 in National Museum and the most famous Italian Bassonist Giorgio Mandolesi will perform on June 29 at The Residence of Princess Ljubica. The artists will give master classes for young artists in Italian Institute for Culture.

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C ULTURE

LABORATORY FOR NEW DESIGN IDEAS

This is the story of a productive process that has its roots in ancient Rome when an “archaic design” was the added value of the sumptuous Domus of the patricians

talian style”. Two simple words are able to evoke, all over the world, the idea of a unique brand. The fame of which this expression has enjoyed in the last decades has made so that it assumed the characteristics of a unique mark, characterized by quality and creativity typical of Italian crafts and industrial excellence. The development of the “Made in Italy” helped to create in the collective imagination a well-defined idea of the

“I

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prestigious “Sistema Italia”, able to reflect its traditional knowledge and distinctive abilities in goods production, and of the sophisticated “Italian living”, that becomes a synonym of refinement and quality, highly requested in foreign markets. The products benefiting to a greater extent from the “country effect” are those belonging to the textile, clothing, accessories, furniture and food sectors, or the socalled three “F” of the “Made in Italy”: Fashion, Furniture and Food & Beverages. In the Italian

literature, they are defined as the "Four A", because also "Auto" (cars and mechanical automation) is included.

TRADITION, BUT ALSO INNOVATION This is the story of a productive process that has its roots in ancient Rome when an "archaic design" was the added value of the sumptuous Domus of the patricians. Pompeii and Herculaneum are emblematic examples that witness the house as the place to enrich. Being the owner of valuable objects (jewels, pots, tricliniums, and combs) represented a social distinguishing factor. In the 13th century, when the Craft guilds became the heartbeat of the

FROM THE 1960S, ITALY ASSERTED ITSELF AS A WORLD-LEADING LABORATORY FOR NEW DESIGN IDEAS

Italian economic development. While in Florence 26 guilds represented the botteghe of craftsmen like shoemakers, and tanners, the harbors of the four Maritime Republics became the core of a flourishing international trade of raw materials and precious, which contributed to spreading the Italian artisanal reputation all over Europe. The new age of creativity, favored by the Renaissance and its arts, consolidated the Italian identity, esteemed and researched because recognized as a “master”. Albeit being late in the process of national unification and industrialisation, from the beginning of the twentieth century Italy started to make the rules in industrial design, defining a model capable to balance the taste for classical elegance and modern creativity in several sectors, adding value to high quality products, advancing innovation in terms of design, comfort, and giving new purpose to goods that traditionally Italy excels at producing. After the brief influence of French Art Deco, futurism and “the return to order” of Novecento Italiano characterized the years following the WW-I. The attention to the industrial of the first and the inclination towards classicism of the second were the backgrounds in which Rational Architecture arose. FIAT and Olivetti pushed the importance of aesthetics forward. Milan quickly became the centre of Italian Design: a sparkling environment where a crucial role in teaching design was played by the Polytechnic University and where the incidence of generations of designers and architects (Giò Ponti, Emilio Lancia, Giovanni Muzio) were promoted by the circulation of

THE HISTORY OF ITALIAN DESIGN, STILL TODAY, DOES NOT FEAR COMPETITORS BUT ONLY IMITATORS specialized magazines such as Domus (1928) and Casabella (1933). The deriving growth in consumption and industrial output, together with the rapid evolution of technologies and production techniques, considerably influenced Italian industrial design. The increasing buying power enabled the public to shift from acquiring essential goods to demanding more advanced and refined

products, in order to satisfy the expanding upper-level market. The economic miracle consecrated Bel Design on an international level, thanks to exhibitions curated by designers of the caliber of Sottsass, Galmanini, Portaluppi. The attention of the designers shifted from the urban context to the object itself, which becomes bearer of meanings: the streets filled with Vespe by Piaggio, Lambrette by Innocenti, and FIAT’s 500; Italian houses were full of appliances that, in the execution of the main functions, did not fail to fascinate the consumer through innovative shapes and colors. From the 1960s, Italy asserted itself as a world-leading laboratory for new design ideas. The “proletarian” mindset diminished as the industrial production focused its attention to the satisfaction of the buyers, rather than increasing

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their needs. The term bel design represented the mainstream commercial design that experimented new shapes and materials, such as the plastic revolution led by Kartell and designers including Joe Colombo, M. Zanuso, R. Sapper and M. Bellini. Years went by and the sophisticated combination of sought-after fabrics and lines that echoed Roman, Renaissance and Baroque splendors produced by Fontana Sisters, were followed by the glamorous parades of Ferragamo, Gucci, Prada, Versace, and their silks, brocades, leathers and other tech and innovative materials. The history of Italian design, still today, does not fear competitors but only imitators.

THE NUMBERS OF MADE IN ITALY The sector known with the acronym “TMA” (Tessile, Moda and Accessories) is in steady growth. The turnover of Italian companies reached 95.7 billion euros in 2018 (+0.9% in comparison with 2017). Exports grew by 2.6% (63.4 billion euros) and imports of 3.1% (35.1

IN THE INTERNATIONAL TRADE BALANCE RANKING, THE ITALIAN WOOD FURNITURE INDUSTRY HOLDS SECOND PLACE THANKS TO A SURPLUS OF ALMOST 10 BILLION OF USD billion). These are the estimates given by the first report drawn up by Confindustria Moda, “Lo Stato Della Moda”, that shows the Italian economic data of the sector: on a total of 1,004 examined goods of the TMA, Italy is first in 372 products. With 24.2 billion euros, the TMA is the fourth industrial sector for added value. Exports reach peaks of 96.7% for Luxottica, 92.5% for Zegna, 87.9% for Ferragamo, the first ranked in a Top-15 of the sector including big names like Armani (84.1%), Prada (86.2%)

and Calzedonia S.p.a. (51%). In the international trade balance ranking, the Italian wood furniture industry holds second place thanks to a surplus of almost 10 billion of USD, behind China (85.3 billion) but ahead of its Polish, Mexican, Vietnamese and German competitors. Furthermore, Italy is the top European exporter in this sector and the leader in the use of recycled wood to produce a chipboard. "2018 is the year of the rescue, that consecrates the agri-food as the driving sector of the country, with a growth of 3.5%", claims the president of Federalimentare, Scordamaglia. Almost all the industries in the sector show good performances, between 4 and 3% of the increase. Among the first places are the production, processing, and preservation of meat and dairy products, followed by the classics known all over the world (wine, sparkling wine, pasta, oil, etc.), which confirm that good food doesn’t lie. Ferrero rises with annual revenues of 8.1 billion euros, followed by Barilla (3.5 million) and groups such as Parmalat, Cremonini, Veronesi, and Lavazza.

Bel design

THE TERM "BEL DESIGN" REPRESENTED THE MAINSTREAM COMMERCIAL DESIGN THAT EXPERIMENTED NEW SHAPES AND MATERIALS, SUCH AS THE PLASTIC REVOLUTION LED 44

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DID YOU KNOW

HISTORY OF PASTA veryone knows that pasta is a large part of Italian culture. The pasta history is also one of the food facts in Italy that is worth knowing. Many of the finest pasta dishes have been created and perfected in Italy. What you may not know is that the use of pasta in Italy dates back to ancient history. Historians have been able to place people using pasta dishes in Italy as far back as the 4th century BCE. Interesting facts of Italy donâ&#x20AC;&#x2122;t get much more ancient than that. The prevalence of pasta dishes in the country is something that has endured for a long time. The cuisine of Italy is one of the most recognizable aspects of the country so it seems appropriate that pasta has been in use for so long.

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PHENOMENON OF FROZEN SWEETS

hen talking about ice cream, it's impossible not to think of Italy. With a wide variety of flavors, artisan Italian gelato is a simple, sweet and refreshing treat that's ideal for those hot summer days. But do you know its origin and why Italian ice cream is so famous and appetizing? Even the serving of gelato is different from that of ice cream, as it should be consumed while softer in consistency, more along the lines of soft-serve ice cream. Fans

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Gelato distinguished itself by maintaining its popularity from the moment it appeared in Renaissance Italy, to the modern days when gelato can be eaten all over the world

ITALY HAS MORE THAN 5,000 GELATO SHOPS, 15, 000 GELATO SELLERS, AND 55% OF ALL ICE CREAM IS PRODUCED BY THEM

of ice cream are often surprised at just how flavorful gelato can be and the ultimate chocoholic might find themselves in love with one of the vibrantly colored fruit flavors. It was in Italy that the ancestors of ice cream and gelato turned into more than just regional treats. Cool creamy desserts become so ubiquitous and so many more flavors and options are available it is hard to resist the temptation to skip lunch and just have a big bowl of them instead.

Gelato, with its light texture – it is made with milk rather than cream like ice cream– and more intense flavor, is known as a true symbol of the Italian culinary tradition, so it is not that surprising to know many believe, in part rightly, the Bel Paese is its birthplace. Italians enjoy their gelato at various times of day, but typically after dinner while taking a walk, a “passeggiata.” Gelato's also wildly popular with tourists. It is one of the bestloved Italian exports in the world: everyone knows it comes from Italy, but not many may be aware it is a product with a long history, intertwined with the very history of Italian cuisine. Legends tell that Italians used to consume gelato regularly from the 15th and 16th centuries, and they especially embraced it after Florentine architect Bernardo Buontalenti managed to create advanced ice cream refrigeration technique in 1565. A Tradition of producing milk based ice creams was carried to continental Europe after the wedding of Catherine de' Medici and King Henry II of France. From that moment, Gelato was slowly reaching all four corners of the world. Another very important moment in the Gelato history happened in 1686 when Si-

Gelato University

cilian fisherman Francesco Procopio dei Coltelli managed to perfect the first ice cream making machine. Just as with pizza, it is the Neapolitans to be credited with creating the first true ice creams, which appeared in an 18th- century cookbook. Once dairy had been introduced, each nationality put their own stamp on ice cream, with Italy creating the flavor explosion known as gelato.

LEGENDS TELL THAT ITALIANS USED TO CONSUME GELATO REGULARLY FROM THE 15TH AND 16TH CENTURIES These advances in technology-enabled gelato to slowly become more and more available to the common people, which finally happened in the 1920s and 1930s when gelato started being sold by the street vendors. From the 1950s on, gelato starts to become a flagship of the Made in Italy, with

most innovations taking place here. Thanks to better technology that made gelato safer and easier to produce, gelato makers were able to concentrate on the creative side of their trade, with more and more flavors being invented. Today, gelato is a worldwide known type of ice cream, and one of the rare ones that are still massively produced by individual ice cream vendors. Birthplace of Gelato, IItaly has more than 5,000 gelato shops, 15,000 gelato sellers, and 55% of all ice cream is produced by them. Gelato masters have taught their art to their children, and they have continued the legacy following their traditional recipe. In Italy, the production of ice cream is taken so seriously that there are even professional schools, like the "Carpigiano Gelato University" in Bologna that offers courses and awards degrees in various countries around the world. Oh, and if you want to know more about how to make gelato, you can even visit Il Gelato Museum, where you can see the first handmade ice cream laboratories. After this little tour of the history and tradition behind Italian ice cream, it's time to enjoy summer with a real gelato.

IN ITALY, THE PRODUCTION OF ICE CREAM IS TAKEN SO SERIOUSLY THAT THERE ARE EVEN PROFESSIONAL SCHOOLS, LIKE THE "CARPIGIANO GELATO UNIVERSITY" IN BOLOGNA ITALY 2019

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THE REAL MOTIVE POWER OF ITALY

The greatest number of presences confirmed to be Veneto, Trentino-Alto Adige, Tuscany, Emilia-Romagna and Lombar 48

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he fact that Italy is one of the most ancient tourist destinations is not a secret. Who has never wished to do a gondola ride in Venice, to eat a real Neapolitan pizza or to get lost in the beautiful hills of the Tuscan countryside? Until the Middle Age, merchants traveled because of necessity, pilgrims went to Rome in order to obtain indulgence, while scholars, writers, and architects moved to complete their formation and to look for new inspirations.

In other words, people used to travel only for work or study purposes. For more than three centuries Italy has been at the core of a unique phenomenon in the cultural European history: the Grand Tour, educational journey, cultural and human experience essential for the continental ĂŠlites. This phenomenon has anchored itself in the common imagination and, in a certain sense, has survived until the present day. In the early Eighties, when mass tourism was still limited to

FOR MORE THAN THREE CENTURIES, ITALY HAS BEEN THE CORE OF A UNIQUE PHENOMENON IN EUROPEAN CULTURAL HISTORY

a few international destinations, Italy was second only to the United States in terms of its impact on global tourist spending. Today the country is at the fifth place in the world: a statistic that might seem modest but that, given the relatively small territorial dimensions compared to the larger States, confirms the high attractiveness of Italy. According to ISTAT (National Statistics Institute) latest data, 123 million of tourists were welcomed in Italy during the year, half of which were foreigners.

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THE REASONS But what are the reasons for this attractiveness? Firstly has to be mentioned the stimulating heterogeneity of landscapes and of natural and anthropologic environments. Travelers can choose between bathing sites, mountain destinations, art cities, and traditional villages. The best ski resorts are located in the renowned localities of Madonna di Campiglio (Trentino-Alto Adige), Cortina (Veneto), Vialattea (Piedmont and France) and Dolomiti Superski (Trentino-Alto Adige), which is the largest interconnected ski area in Italy with more than 1,200 km of slopes out of the 6,700 km national total. Trentino-Alto Adige, the most mountainous region of the country, probably is the master for skiing destinations during the winter and for hiking during the summer: apart from Trento and Bolzano, the two main cities, prominent examples are Brunico, San Candido, Riva del Garda, Canazei, Merano, Corvara in Badia and La Villa. Valle d’Aosta, the smallest Italian region located between France and Switzerland, is dotted with majestic peaks, among which we find the highest mountains of the Alps, such as Cervino, Monte Rosa, Gran Paradiso, and His Royal Highness Mont Blanc. On the other hand, the “Bel Paese” is probably more often associated to the summer holidays: everybody, at least once in their life, should visit the beauties of Capri, the beaches in Puglia and Sardinian cliffs. The most visited Italian seaside resorts are Rimini (Emilia-Romagna), Jesolo, Caorle (Veneto), Lignano Sabbiadoro (Friuli Venezia Giulia) and Riccione (Emilia-Romagna). Secondly, Italy can boast of a huge artistic and natural heritage, with no equals in the world: with 54 of the 1.092 UNESCO World Heritage sites, it is the first country for places recognized as

IN ITALY, BUT WHERE EXACTLY?

THE REAL IMPACT OF TOURISM ON GDP FOR ITALY IS 13%, A VALUE ABOVE THE AVERAGE OF EU COUNTRIES AND THE WORLD ECONOMY AS A WHOLE World Heritage. In addition, it is necessary to cite the gastronomic and culinary tradition of each region, which attracts every year countless visitors. Italian food can range from meat to fish, passing through pasta and delicious vegetables that can be found only in the peninsula.

The most recent statistics showed that the regions with the greatest number of presences confirmed to be Veneto (with 16,5% of the total presences in the Italian structures providing accommodation), Trentino-Alto Adige (11,9%), Tuscany (10,9%), Emilia-Romagna (9,5%) and Lombardy (9,4%). With regard to the most visited municipalities, at the first place, there is Rome (with 6,4% of presences on the national total), at the second Milan (2,8%) and at the third Venice (2,8%). Besides the common touristic destinations, there are municipalities that, even if small in size and population, register a relevant number of presences, because they gravitate around poles of great attraction: this is the case of Jesolo, Caorle and Rosolina, all located very close to Venice. The first southern Italian municipality to appear in the ranking is Naples, at 16th place with more than 3 million presences per year, only the 0,8% of the national total.

THE IMPACT OF TOURISM ON ITALIAN GDP In Italy, more than 5% of GDP and 6% of employment (almost 1.5 million jobs) were attributable to tourism (World Trade and Tourism Council data). In both cases, the country was above the OECD average; not only, but also in comparison with other large tourist destinations, the burden of tourism in Italy was greater in most cases. The WTTC, taking a step forward, estimated the overall impact of tourism, which also includes “indirect” and “induced” effects. According to these estimates, the real impact of tourism on GDP for Italy is 13%, a value above the average of EU countries and the world economy as a whole.

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